Attachment 2 RFQ 693JF725Q00007 QASP Insurance.pdf

RFQ 693JF725Q00007

Quality Assurance Surveillance Plan

Insurance Verification on Title XI Vessels

The Maritime Administration’s Office of Marine Financing

Federal Ship Financing Program

TABLE OF CONTENTS

1 Introduction

1.1 Purpose

1.2 Performance Management Approach

1.3 Performance Management Strategy

2 Roles and Responsibilities

2.1 The Contracting Officer

2.2 The Contracting Officer’s Representative

3 Identification of Required Performance Standards/Quality Levels

4 Methodologies to Monitor Performance

4.1 Surveillance Techniques

4.2 Customer Feedback

4.3 Acceptable Quality Levels

5 Quality Assurance Documentation

5.1 The Performance Management Feedback Loop

5.2 Monitoring Forms

6 Analysis of Quality Assurance Assessment

6.1 Determining Performance

6.2 Reporting

Attachment 1: Performance Requirements Summary

Exhibit A: ………………………………………………………………………………………………..…6

QUALITY ASSURANCE SURVEILLANCE PLAN

1 Introduction

This quality assurance surveillance plan (QASP) is pursuant to the requirements listed in the performance work statement (PWS) entitled Maritime Administration Insurance Verification on Tile XI Vessels. This plan sets forth the procedures and guidelines the Maritime Administration’s (MARAD) Office of Marine Financing (OMF) will use in ensuring the required performance standards or services levels are achieved by business awarded the contract (the “Contractor”).

1.1 Purpose

1.1.1 The purpose of this QASP is to describe the systematic methods used to monitor performance and to identify the required documentation and the resources to be employed. This QASP provides a means for evaluating whether the Contractor is meeting the performance standards/quality levels identified in the PWS and the Contractor’s quality control plan (QCP), and to ensure that the government pays only for the level of services received.

1.1.2 This QASP defines the roles and responsibilities of all members of the integrated project team (IPT), identifies the performance objectives, defines the methodologies used to monitor and evaluate the Contractor’s performance, describes quality assurance documentation requirements, and describes the analysis of quality assurance monitoring results.

1.2 Performance Management Approach

1.2.1 The PWS structures the acquisition around “what” service or quality level is required, as opposed to “how” the Contractor should perform the work (i.e., results, not compliance). This QASP will define the performance management approach employed to monitor and manage the Contractor’s performance to ensure the expected outcomes or performance objectives communicated in the PWS are achieved.

Performance management rests on developing a capability to review and analyze information generated through performance assessment. The ability to make decisions based on the analysis of performance data is the cornerstone of performance management; this analysis yields information that indicates whether expected outcomes for the project are being achieved by the Contractor.

1.2.2 Performance management represents a significant shift from the more traditional quality assurance (QA) concepts in several ways. Performance management focuses on assessing whether outcomes are being achieved and to what extent. This approach migrates away from scrutiny of compliance with the processes and practices used to achieve the outcome. A performance-based approach enables the Contractor to play a large role in how the work is performed, as long as the proposed processes are within the stated constraints. The only exceptions to process reviews are those required by law (federal, state, and local) and compelling business situations, such as safety and health. A “results” focus provides the Contractor flexibility to continuously improve and innovate over the course of the contract as long as the critical outcomes expected are being achieved and/or the desired performance levels are being met.

1.3 Performance Management Strategy

1.3.1 The Contractor is responsible for the quality control (QC) of all work performed. The Contractor measures that quality through the QCP. QC is work output, not workers, and therefore includes all work performed under this contract regardless of whether the work is performed by Contractor employees or by subcontractors. The QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance requirements in the PWS. The Contractor will develop and implement a performance management system with processes to assess and report its performance to the designated government representative. The QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance requirements in the PWS. This QASP enables the government to take advantage of the

QCP.

1.3.2 The government representative(s) will monitor performance and review performance reports furnished by the Contractor to determine how the Contractor is performing against communicated performance objectives. The government will make determinations regarding incentives based on performance measurement metric data and notify the Contractor of those decisions. The Contractor will be responsible for making required changes in processes and practices to ensure performance is managed effectively.

2 Roles and Responsibilities

2.1 The Contracting Officer (CO)

The CO is responsible for monitoring contract compliance, contract administration, and cost control and for resolving any differences between the observations documented by the COR and the Contractor. The CO will designate one contracting officer’s representative (COR) as the government authority for performance management.

2.2 The Contracting Officer’s Representative (COR)

The COR is designated in writing by the CO to act as his or her authorized representative to assist in administering a contract. COR limitations are contained in the written appointment letter. The COR is responsible for technical administration of the project and ensures proper government surveillance of the Contractor’s performance. The COR is not empowered to make any contractual commitments or to authorize any contractual changes on the government’s behalf. Any changes that the Contractor deems may affect contract price, terms, or conditions shall be referred to the CO for action. The COR will have the responsibility for monitoring quality assurance (QA) under the QAP and completing forms used to document the inspection and evaluation of the Contractor’s work performance. Government surveillance may occur under the inspection of services clause for any service relating to the contract.

3 Identification of Required Performance Standards/Quality Levels

The required performance standards and/or quality levels are included in the PWS and in Attachment 1, Performance Requirements Summary. If the Contractor meets the required service or performance level, it will be paid the monthly amount agreed on in the contract.

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

In an effort to minimize the performance management burden, simplified surveillance methods shall be used by the government to evaluate Contractor performance when appropriate. The primary methods of surveillance are:

100% Inspection – The COR, in consultation with the program manager – the OMF Director, will review the generated documentation. The COR will track the delivery of the contracted deliverables other outlined tasks and enter summary results into the Surveillance Activity Checklist and report this to the CO at the end of each contract year.

4.2 Customer Feedback

The Contractor is expected to establish and maintain professional communication between its employees and customers. The primary objective of this communication is customer satisfaction. Customer satisfaction is the most significant external indicator of the success and effectiveness of all services provided and can be measured through customer complaints.

Performance management drives the Contractor to be customer focused through initially and internally addressing customer complaints and investigating the issues and/or problems but the customer always has the option to communicate complaints to the COR, as opposed to the Contractor.

Customer complaints, to be considered valid, must set forth clearly, in writing, the detailed nature of the complaint and must be forwarded to the COR. The COR will accept those customer complaints and investigate.

Customer feedback may also be obtained either from the results of formal customer satisfaction surveys or from random customer complaints.

4.3 Acceptable Quality Levels

The acceptable quality levels (AQL) included in Attachment 1, Performance Requirements Summary Table, for Contractor performance are structured to allow the Contractor to manage how the work is performed.

5 Quality Assurance Documentation

5.1 The Performance Management Feedback Loop

The performance management feedback loop begins with the communication of expected outcomes.

Performance standards are expressed in the PWS and are assessed using the performance monitoring techniques shown in Attachment 1.

5.2 Monitoring Forms

The COR for OMF will execute its QA surveillance. The COR will maintain a log in an Excel spreadsheet format that outlines each task and whether nor not the Contractor satisfied that contractual requirement for reporting at the end of the year to the CO. This log will identify by year:

PWS Outlined Task Date and time (for each entry) Outlined Hours or Occurrences Contractual Requirement Satisfied (Yes or No) Comments

5.2.1 The COR will retain a copy of all completed logs.

6 ANALYSIS OF QUALITY ASSURANCE ASSESSMENT

6.1 Determining Performance

6.1.1 Government shall use the monitoring methods cited to determine whether the performance standards/service levels/AQLs have been met. If the Contractor failed to meet the minimum requirements, it may be asked to develop a corrective action plan to show how and by what date it intends to bring performance up to the required levels.

6.2 Reporting

6.2.1 At the end of each Contract Year the COR will submit to the CO a written report summarizing the Contractor’s performance as measured by the requirements defined in Attachment 1.

Attachment 1: Performance Requirements Summary

Required Services (Tasks)

Performance

Standards

Acceptable Quality Levels

Methods of Surveillance

(Impact on Contractor Payments)

Reviewing the Certificates of Insurance for all Title XI Vessels

All outlined deliverables in Exhibit A are delivered when specified.

All deliverables are accurate or quickly resolved.

100%.

The COR notes instances of non-conforming items and provides CO with written notification.

Deduction of prorated amount of yearly contract amount based on the number of financings in portfolio for every verification not completed to the standards set in Exhibit A.

Reviewing Certificates of Entry for all Title XI Vessels

No standard.

Simply Attend if needed.

100%

The COR notes instances of non-conforming items and provides CO with written notification.

No Deduction.

Providing Reports on Vessel’s Status

No standard.

Simply Attend if needed.

100%

The COR notes instances of non-conforming items and provides CO with written notification.

Deduction of prorated amount of yearly contract amount based on the number of financings in portfolio.

Provide Recommendations to Further Marine Insurance Compliance

All outlined deliverables in Exhibit A are delivered when specified.

All deliverables are accurate or quickly resolved.

100%

The COR notes instances of non-conforming items and provides CO with written notification.

No Deduction.

Exhibit A: Performance Requirements for Insurance Reviewers

Reviewing the Certificate of Insurance:

A. Whether insurance meets the requirements of the Title XI Loan Documentation.

1. Was obtained Insurance from Approved Underwriters?

2. Was American Marine Insurance Considered First?

3. Was Renewal of Insurance Completed before Expiration of Previous Policy? If not, were

Regulatory Procedures Followed to Correct?

4. Is the Policy under the Latest American Institute of Marine Underwriter’s Form or

Equivalent Approved by MARAD?

5. Is Coverage of the Minimum Set forth by MARAD?

6. Are Deductibles Limited to the Amount in the Loan Documentation?

7. Is the Underwriter of the Type Approved by MARAD?

8. Is MARAD listed as “Co-Assured”?

9. Is MARAD listed as “Loss Payee”?

10. Is the NEW YORK SUABLE CLAUSE incorporated?

11. Is U.S.A. SERVICE OF SUITE CLAUSE (MARINE) incorporated?

12. Are Registered Agents listed?

13. …and, as per MAR-770, any other MARAD Requirements.

B. Whether Insurance is current.

C. Whether payments for insurance are current.