Attachment_3_Deductions.docx

CRITERIA FOR DEDUCTIONS

Price Deductions Ref: FAR 52.212-4(a) Where security guard services are concerned, there is no way for the Government to obtain reperformance of non-provided or unacceptable work by the contractor’s employees. Therefore, the Government shall remedy the contractor’s non-performance or unacceptable performance through price deductions.

The Government may either accept in part or decline altogether deficient services rendered by the contractor. Following are criteria for deductions that the Government may take as a result of deficient performance.

Deduction for Failure to Provide Equipment, Materials, and Uniforms

In the event the Contractor fails to provide uniforms or equipment as approved by the CO, the CO will make an equitable adjustment in the contract price for the period of deficient performance. In determining the amount of the adjustment, the CO will use as a basis the amount it would cost the government to obtain the item(s) which the contractor failed to provide through rental, lease, or purchase. If the item is able to be rented or leased, the Government will deduct the rental/lease cost on a per shift basis when deficiencies occur. If the item is not readily available for rent or lease and must be purchased, the Government will deduct the full cost of the purchased item for the initial violation. Additional deductions will not be made for subsequent violations involving the same item, by the same employee. This will be the basis for adjusting payments regardless of whether the Government does in fact supply the item.

Deduction for Deficient Equipment, Uniforms, Appearance, etc.

In the event a contract employee is provided with defective equipment, defective uniforms, or his/her appearance is unsatisfactory, the COR or his/her designee(s) shall, in writing, call attention to the Contractor of the deficiency and request the deficiency be corrected within such time as the COR or his designee(s) deems reasonable. If the Contractor does not correct the deficiency within the specified time, the CO shall deduct the costs of providing the service from the Contractor’s next monthly payment until the deficiency is corrected and evidence is provided to the CO or COR proving the deficiency no longer exists by the Contractor.

Deduction for Loss, Damage, Destruction, or Unauthorized Use of Government Property

In the event any contractor employee loses, damages, destructs, or makes unauthorized use of Government property that causes the Government to incur costs to replace, repair or otherwise make whole the affected property, the Government shall notify the

Contractor in writing of the nature of the damage, the costs associated with replacement, repair, etc., and the proposed deduction amount. The Contractor shall have 10 days to respond to the notice of intended deduction. The deduction, if assessed, will be taken from the next monthly payment.

Deduction for Failure to Provide Operable Vehicle In the event the contractor fails to provide vehicle(s) or the vehicle(s) provided is inoperable for any period of time, the Government shall deduct an equitable price from the contract, based on the estimated annual costs to the contractor to provide the vehicle(s). The contractor shall be responsible for furnishing vehicle operation costs to the CO or COR upon the Governments request.

Deduction Schedule

The deduction rate for failure to provide required level of service shall be the established hourly rate contained in SOW Section 7 Training and Attachment J Exhibit III Guard Post Orders (Assignment) Record and Duties.

Deficiency DEDUCTION

1. Guard working without valid Basic Training and 100% of the Productive Certification, CPR/AED/First Aid Training and rate for each hour employee Certification, Firearms Training and Qualification Certification, and a preliminary favorable background suitability determination from OPM and USGS.

2. Failure to provide required relief breaks Productive hourly rate, pro-rated for amount of relief not provided.

services required to man post.

4. Failure to provide uniforms or equipment Based on actual cost of purchase, lease, or rental pro-rated for time period in question

5. Failure to provide vehicle(s) performance Based on pro-rated share of contractor’s actual costs