NPSBN_Section_J-6_Quality_Assurance_Surveillance_Plan_AMEND_008.pdf

Solicitation No. D15PS00295 – Section J, Attachment J-6 Quality Assurance Surveillance Plan

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Table of Contents

1 Purpose of the Quality Assurance Surveillance Plan

2 Roles and Responsibilities: Government Personnel

2.1 Contracting Officer

2.2 Contracting Officer’s Representative

3 Performance Requirements

4 Surveillance Matrix

4.1 QASP Identification Number

4.2 Purpose

4.3 Performance Standard

4.4 Acceptable Performance Level

4.5 Method of Surveillance

4.6 Measures and Metrics

4.7 Performance Target

4.8 Calculation and Formulas

4.9 Statement of Objectives Reference

5 Performance Rating

5.1 Performance Rating Definitions

5.2 Remedies for Non-Conformance

5.3 Disincentive Payments

5.4 Performance Assessment Report

5.5 Corrective Action Report

6 Forms

6.1 Corrective Action Report

6.2 Customer Complaint Record

6.3 Performance Assessment Report

7 Signatures

List of Tables

Table 1 Performance Rating Definitions Table 2 Total Maximum Disincentive Payments by State/Territory Across FOC Performance Years Table 3 Progressive Scale for Disincentive Payments Table 4 Performance Remediation Triggers

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1 Purpose of the Quality Assurance Surveillance Plan

The Contractor shall provide a Quality Assurance Surveillance Plan (QASP) that defines what the Government and the Contractor must do to ensure the Contractor has performed in accordance with the performance metrics/standards as agreed upon in the contract. Additionally, the QASP is intended to provide a plan to assess the performance of the Contractor in meeting the First Responder Network Authority’s (FirstNet) Statement of Objectives (SOO), as defined in Section C. The Contractor is responsible for management and quality control actions required to meet the terms of the contract.

The Government reserves the right to perform, with the Contractor, quality assurance (QA) and surveillance in order to verify contract performance standards are achieved and maintained throughout the life of the contract. The Government reserves the right to independently conduct these reviews with full Contractor participation and cooperation.

The proposed QASP should leverage industry best practices, technology enhancements, and professional expertise. The plan should employ standard business practices and processes and minimize risk while improving quality of service.

The QASP is intended to establish procedures pertaining to the assessment/inspection process that may be conducted. The QASP should address the following questions:

What will be monitored?

How will monitoring take place?

Who will conduct the monitoring?

How will monitoring efforts and results be documented?

Section F, Deliverables and Performance, requests Offerors to include a list of reports and/or other deliverables that will document contractual compliance and Contractor performance. Documented results from the QASP should be formally reported to the Government via deliverables detailed in Section F, Deliverables and Performance, as they are finalized at contract award.

The QASP shall include, at a minimum, a surveillance matrix that clearly states the method(s) of surveillance to be used. The QASP must address how the Contractor will measure, assess, manage, and report on the quality of its performance.

The QASP is a “living document” that will be incorporated into the resulting contract, and the Government may review and revise it on a quarterly basis in coordination with the Contractor. Updates will ensure that the QASP remains a valid, useful, and enforceable document. Copies of the original QASP and revisions will be retained in the contract file.

2 Roles and Responsibilities: Government Personnel

The personnel described below shall oversee and coordinate surveillance activities. For specific appointees for the following roles, see Section G, Contract Administration Data.

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2.1 Contracting Officer

The Contracting Officer (CO) shall ensure performance of all contractually required actions, ensure compliance with the contract terms and conditions, and safeguard the interests of the Government in the contractual agreement. The CO shall also ensure that the Contractor receives impartial, fair, and equitable treatment under this contract. The CO is ultimately responsible for the final determination of the adequacy of the Contractor’s performance.

2.2 Contracting Officer’s Representative

The Contracting Officer’s Representative (COR) is responsible for providing continuous technical oversight of the Contractor’s performance. The COR will use the QASP to conduct the oversight/surveillance process. The COR shall maintain a QA file that accurately documents the Contractor’s actual performance. The purpose is to ensure the Contractor meets the performance metrics/standards contained in the contract. The COR is responsible for reporting any performance issues and/or problems to the CO immediately. The COR is required to provide an annual performance assessment to the CO that may be utilized in documenting past performance. The QASP is a primary tool for analyzing Contractor performance. The COR is not empowered to make any contractual commitments or to authorize any contractual change on FirstNet’s behalf. The CO will designate a COR at time of award.

3 Performance Requirements

Performance requirements define desired services and the level of service required under the contract to successfully meet the performance objective. The Government will perform surveillance to determine if the Contractor exceeds, meets, or does not meet these requirements. The Offeror shall provide as part of its proposal a QASP, including but not limited to a QASP surveillance matrix.

The Contractor shall ensure that all aspects of contractual performance are monitored, including but not limited to the following:

Network performance

Device usage, operation, and performance

Application usage, operation, and performance

Sales and marketing performance and forecasting

Customer care, including customer satisfaction, issue resolution, activation, etc.

Business metrics, including financial reports validating sustainability, revenues from spectrum monetization, and user fees

Interfaces with state-deployed Radio Access Networks and performance therein

Product planning and roadmap

4 Surveillance Matrix

The Contractor shall organize and document the proposed QASP surveillance matrix in accordance with the format defined in Section J, Attachment J-9, QASP Surveillance Matrix Template. The Contractor’s proposed QASP surveillance matrix should include metrics that address each objective described in the SOO and the respective performance standards.

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The COR uses the methods contained in Section 4.5, Method of Surveillance, to ensure the Contractor complies with contract performance metrics/standards. The COR is responsible for a wide range of surveillance requirements that effectively measure and assess the Contractor’s performance.

The following descriptions detail the sections of the QASP surveillance matrix.

4.1 QASP Identification Number

The QASP Surveillance Matrix (Section J, Attachment J-9) lists each performance metric or standard using a unique identifier.

4.2 Purpose

For each QASP element, the QASP Surveillance Matrix (Section J, Attachment J-9) describes the intended purpose of the QASP element.

4.3 Performance Standard

The QASP Surveillance Matrix (Section J, Attachment J-9) includes brief summary descriptions of the indicators that will be used to monitor each QASP element.

4.4 Acceptable Performance Level

The Government will use Acceptable Performance Levels (APLs) to determine the Contractor’s performance. Each QASP element should include an APL in the form of a quantifiable, measurable metric.

4.5 Method of Surveillance

The QASP Surveillance Matrix (Section J, Attachment J-9) includes the method of surveillance for each QASP element. The method of surveillance defines how, when, and what will be monitored and assessed in measuring performance. Acceptable surveillance methods include periodic, 100 percent inspection, inspection of reports, technical inspection, and customer complaint surveillance.

4.5.1 Periodic

Periodic surveillance/inspection is defined as sampling that occurs less than 100 percent of the time or that may be conducted on a statistically random basis. Periodic surveillance can be accomplished weekly, monthly, or quarterly and will be determined by the Government.

4.5.2 100% Inspection

The 100 percent inspection method is designed to evaluate all outputs of a contract requirement. This method requires a total inspection of the Contractor’s performance.

4.5.3 Inspection of Reports

All reports shall be reviewed upon receipt by the COR or as otherwise designated. The COR will report any deficiencies in each document.

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4.5.4 Technical Inspection

Technical surveillance/inspection will be performed as specified on the project schedule by observing the work being done. For example, the Government reserves the right to observe any applicable testing.

4.5.5 Customer Complaint Surveillance

The customer complaint surveillance is initiated when the COR receives a programmatic or contractual-related complaint from a Public Safety Entity (PSE) regarding Contractor service. The COR will obtain the complaint in writing, document the complaint using the Customer Complaint Record (CCR) form, available in Section 6.2, Customer Complaint Record, and conduct an investigation to determine its validity. If the complaint is deemed valid, the COR will take action as outlined in Section 5.2, Remedies for Non-Conformance.

4.6 Measures and Metrics

The QASP Surveillance Matrix includes detailed descriptions of how each QASP element will be measured.

4.7 Performance Target

Each QASP element will be measured against the performance ratings described in Section 5.1, Performance Rating Definitions. The QASP Surveillance Matrix lists the appropriate performance rating based on the measure described in Section 4.6, Measures and Metrics.

4.8 Calculation and Formulas

The QASP Surveillance Matrix includes detailed descriptions of how the measures described in Section 4.6, Measures and Metrics are calculated.

4.9 Statement of Objectives Reference

For each QASP element, the QASP Surveillance Matrix lists the corresponding objectives (as defined in Section C, SOO) that the metric/standard addresses.

5 Performance Rating

Based upon the performance metrics/standards and APLs defined in the Offeror’s proposed QASP, the COR will measure the Contractor’s performance using the following performance rating methodology.

5.1 Performance Rating Definitions

In evaluating the Contractor’s performance, the performance ratings outlined in Table 1 Performance Rating Definitions will be used.

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Table 1 Performance Rating Definitions

Performance Rating Criteria Blue – Excellent/ Outstanding

Performance exceeds performance metrics/standards and benefits FirstNet.

The QASP element being assessed was accomplished with no problems and Contractor actions were highly effective.

Green – Good Performance meets the metrics/standards. The performance contains minor problems for which corrective actions taken by the Contractor were satisfactory.

Yellow – Marginal Performance does not meet some metrics/standards. The performance reflects a serious problem for which the Contractor has not yet identified corrective actions. The Contractor’s proposed actions appear marginally effective or were not fully implemented.

Red – Unsatisfactory Performance does not meet most metrics/standards and corrective action is not likely to be completed in a timely manner. The performance contains serious problem(s) for which the Contractor’s corrective actions appear or were ineffective.

5.2 Remedies for Non-Conformance

If inspections indicate unacceptable performance and/or deficiencies, the COR will notify the Contractor’s program manager and task manager of the deficiencies for correction. This will normally be in writing unless circumstances necessitate verbal communication. Regardless, the COR will document the discussion and place it in the COR contract file. The Contractor shall be given an agreed-upon time frame (depending on the discrepancy identified) after notification to correct the unacceptable performance or deficiency. If the performance or deficiency is not corrected within the required time frame, the COR will notify the CO for action, which may include remedies. If the Contractor disagrees with the noted discrepancy and an agreement cannot be reached, the CO will be notified to assist with a final determination.

5.3 Disincentive Payments

Upon the Contractor’s failure to meet performance metrics associated with the adoption and use of the Nationwide Public Safety Broadband Network (NPSBN) by public safety users, FirstNet will assess the Contractor with a disincentive payment.

5.3.1 Public Safety Device Connection Targets

The Offeror shall propose public safety device connection targets (connection targets), which represent the Offeror’s anticipated number of public safety device connections (device connections) for law enforcement, fire, emergency medical services, and other public safety users by each of the 56 states and territories over the life of the contract, as detailed in Section L, Instructions, Conditions, and Notices to Offerors or Respondents. For the purposes of this disincentive mechanism, FirstNet defines a device connection as a device on a post-paid contract with an eligible NPSBN user that has been generating billable revenue for three consecutive months. Each device connection will be assigned to the state or territory based on the registered billing address of that device connection. The connection targets will serve as the basis for the disincentive mechanism structure further described below.

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5.3.2 Disincentive Payment Calculation and Timing

The Contractor is subject to disincentive payments beginning at the start of the first Government fiscal year following Final Operational Capability (FOC) (i.e., the FOC performance year). These payments may continue over the remaining period of performance based on achievement measured against the Contractor’s proposed connection targets. The date of initial device activation on the NPSBN shall determine in which FOC performance year a device shall be considered for disincentive payment calculations. FirstNet reserves the right to an audit, at FirstNet’s sole discretion, to ensure device connections on the network are (1) devices that match the aforementioned definition, (2) in use by a defined user group, (3) and accurate in quantity. In addition to complying with all applicable federal and state data retention requirements—including applicable Federal Communications Commission rules and policies—regarding the NPSBN, for purposes of ensuring FirstNet’s audit rights, the Contractor is required to retain all applicable data required to perform the audit for a period of four (4) years.

5.3.3 Adjustment for Government Fiscal Year after FOC

The Contractor’s proposed connection targets in the Public Safety Device Connections Template (Section J, Attachment J-24) will be adjusted using a weighted average methodology to align with the Government fiscal year, for purposes of this disincentive mechanism. The weighted average connection targets are calculated by taking the sum of the proposed connection targets in the Public Safety Device Connections Template for each year and multiplying it by the number of calendar days of the Government fiscal year covered by those forecasts, and then dividing the resulting sum by 365 days. For example, if the actual task order date for a state or territory is June 1, 2017, and the proposed FOC date is May 31, 2022, the start of the first Government fiscal year following FOC is Oct 1, 2022, then connections targets for the first Government fiscal year following FOC are calculated as:

Connections targets for the Government fiscal year 2023 = [(connections targets for period ending May 31, 2023 x 243 days/365 days) + (connections targets for period ending May 31, 2024 x 122 days/365 days)]. The resulting sum will be rounded up to the nearest whole number.

This will be repeated on an annual basis for each state and territory for purposes of calculating the total disincentive payments for the life of the IDIQ contract.

5.3.4 User Groups

PSEs are defined in the Middle Class Tax Relief and Job Creation Act of 2012 (the Act); however, for the purpose of this disincentive mechanism, FirstNet further delineates PSEs into two user groups: a primary user group and extended primary user group. FirstNet prefers device connections from the primary user group, which consists of law enforcement, fire, and emergency medical services users. The Contractor is also encouraged to drive customer adoption and use of the NPSBN through the extended primary user group, which consists of all other public safety users, as defined in the Act. The Contractor will be subject to disincentive payments upon failure to achieve 100 percent of the proposed connection targets for either user group.

5.3.5 Maximum Disincentive Payments

The maximum value of disincentive payments, subject to the Contractor’s performance against its proposed connection targets, is spread across each FOC performance year as shown in Table 2 Total Maximum Disincentive Payments by State/Territory Across FOC Performance Years. The total maximum disincentive payments per state and territory is calculated by dividing the total annual maximum

Page J-6 – 6.1 Amendment 008 disincentive payment into two categories—population and state and territory—each of which contains 50 percent of the total annual maximum disincentive payment amount. The population category is distributed to each of the 56 states and territories based on the state or territory’s population as a percentage of the total population for all 56 states and territories. The state and territory category is equally distributed among all 56 states and territories with each state and territory receiving the same weight. The aggregate value from the population and state and territory categories comprises the annual maximum disincentive payment for the state or territory. For FOC performance years beyond Year 20, an annual inflation factor of 1.9% will be applied on annual basis.

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Table 2 Total Maximum Disincentive Payments by State/Territory Across FOC Performance Years

FOC Performance Year 1 2 3 4 5 6 7 8 9 10

Annual disincentive payment 124,704,388$ 127,073,771$ 129,488,173$ 131,948,448$ 134,455,469$ 137,010,123$ 139,613,315$ 142,265,968$ 144,969,021$ 147,723,433$

Alabama 2,066,062$ 2,105,318$ 2,145,319$ 2,186,080$ 2,227,615$ 2,269,940$ 2,313,069$ 2,357,017$ 2,401,800$ 2,447,435$

Alaska 1,254,985$ 1,278,830$ 1,303,128$ 1,327,887$ 1,353,117$ 1,378,826$ 1,405,024$ 1,431,720$ 1,458,922$ 1,486,642$

American Samoa 1,124,497$ 1,145,863$ 1,167,634$ 1,189,819$ 1,212,426$ 1,235,462$ 1,258,936$ 1,282,855$ 1,307,230$ 1,332,067$

Arizona 2,387,400$ 2,432,760$ 2,478,983$ 2,526,084$ 2,574,079$ 2,622,987$ 2,672,823$ 2,723,607$ 2,775,356$ 2,828,087$

Arkansas 1,694,592$ 1,726,789$ 1,759,598$ 1,793,031$ 1,827,098$ 1,861,813$ 1,897,188$ 1,933,234$ 1,969,966$ 2,007,395$

California 8,538,371$ 8,700,601$ 8,865,912$ 9,034,364$ 9,206,017$ 9,380,932$ 9,559,169$ 9,740,793$ 9,925,869$ 10,114,460$

Colorado 2,115,781$ 2,155,981$ 2,196,945$ 2,238,687$ 2,281,222$ 2,324,565$ 2,368,732$ 2,413,738$ 2,459,599$ 2,506,331$

Connecticut 1,825,771$ 1,860,461$ 1,895,810$ 1,931,830$ 1,968,535$ 2,005,937$ 2,044,050$ 2,082,887$ 2,122,462$ 2,162,788$

Delaware 1,292,396$ 1,316,951$ 1,341,973$ 1,367,471$ 1,393,453$ 1,419,928$ 1,446,907$ 1,474,398$ 1,502,412$ 1,530,958$

District of Columbia 1,233,359$ 1,256,793$ 1,280,672$ 1,305,005$ 1,329,800$ 1,355,066$ 1,380,812$ 1,407,048$ 1,433,782$ 1,461,023$

Florida 4,860,647$ 4,952,999$ 5,047,106$ 5,143,002$ 5,240,719$ 5,340,292$ 5,441,758$ 5,545,151$ 5,650,509$ 5,757,869$

Georgia 3,044,240$ 3,102,081$ 3,161,020$ 3,221,080$ 3,282,280$ 3,344,643$ 3,408,192$ 3,472,947$ 3,538,933$ 3,606,173$

Guam 1,145,193$ 1,166,952$ 1,189,124$ 1,211,717$ 1,234,740$ 1,258,200$ 1,282,106$ 1,306,466$ 1,331,288$ 1,356,583$

Hawaii 1,384,548$ 1,410,855$ 1,437,661$ 1,464,976$ 1,492,811$ 1,521,174$ 1,550,077$ 1,579,528$ 1,609,539$ 1,640,121$

Idaho 1,425,861$ 1,452,952$ 1,480,558$ 1,508,689$ 1,537,354$ 1,566,563$ 1,596,328$ 1,626,658$ 1,657,565$ 1,689,059$

Illinois 3,670,655$ 3,740,397$ 3,811,465$ 3,883,883$ 3,957,676$ 4,032,872$ 4,109,497$ 4,187,577$ 4,267,141$ 4,348,217$

Indiana 2,405,693$ 2,451,401$ 2,497,978$ 2,545,439$ 2,593,803$ 2,643,085$ 2,693,304$ 2,744,476$ 2,796,622$ 2,849,757$

Iowa 1,720,589$ 1,753,280$ 1,786,593$ 1,820,538$ 1,855,128$ 1,890,375$ 1,926,293$ 1,962,892$ 2,000,187$ 2,038,191$

Kansas 1,682,076$ 1,714,035$ 1,746,602$ 1,779,787$ 1,813,603$ 1,848,062$ 1,883,175$ 1,918,955$ 1,955,415$ 1,992,568$

Kentucky 1,978,294$ 2,015,882$ 2,054,184$ 2,093,213$ 2,132,984$ 2,173,511$ 2,214,807$ 2,256,889$ 2,299,770$ 2,343,465$

Louisiana 2,016,961$ 2,055,283$ 2,094,333$ 2,134,126$ 2,174,674$ 2,215,993$ 2,258,097$ 2,301,000$ 2,344,719$ 2,389,269$

Maine 1,378,182$ 1,404,368$ 1,431,051$ 1,458,241$ 1,485,947$ 1,514,180$ 1,542,950$ 1,572,266$ 1,602,139$ 1,632,580$

Maryland 2,264,136$ 2,307,155$ 2,350,990$ 2,395,659$ 2,441,177$ 2,487,559$ 2,534,823$ 2,582,984$ 2,632,061$ 2,682,070$

Massachusetts 2,418,414$ 2,464,364$ 2,511,187$ 2,558,900$ 2,607,519$ 2,657,062$ 2,707,546$ 2,758,989$ 2,811,410$ 2,864,827$

Michigan 3,083,301$ 3,141,884$ 3,201,580$ 3,262,410$ 3,324,396$ 3,387,559$ 3,451,923$ 3,517,509$ 3,584,342$ 3,652,445$

Minnesota 2,170,536$ 2,211,777$ 2,253,800$ 2,296,623$ 2,340,258$ 2,384,723$ 2,430,033$ 2,476,204$ 2,523,252$ 2,571,193$

Mississippi 1,704,832$ 1,737,224$ 1,770,231$ 1,803,866$ 1,838,139$ 1,873,064$ 1,908,652$ 1,944,917$ 1,981,870$ 2,019,525$

Missouri 2,307,062$ 2,350,896$ 2,395,563$ 2,441,078$ 2,487,459$ 2,534,721$ 2,582,880$ 2,631,955$ 2,681,962$ 2,732,919$

Montana 1,310,628$ 1,335,530$ 1,360,905$ 1,386,763$ 1,413,111$ 1,439,960$ 1,467,320$ 1,495,199$ 1,523,607$ 1,552,556$

Nebraska 1,477,433$ 1,505,504$ 1,534,109$ 1,563,257$ 1,592,959$ 1,623,225$ 1,654,066$ 1,685,493$ 1,717,518$ 1,750,151$

Nevada 1,651,668$ 1,683,050$ 1,715,028$ 1,747,613$ 1,780,818$ 1,814,654$ 1,849,132$ 1,884,266$ 1,920,067$ 1,956,548$

New Hampshire 1,375,812$ 1,401,953$ 1,428,590$ 1,455,733$ 1,483,392$ 1,511,577$ 1,540,297$ 1,569,562$ 1,599,384$ 1,629,772$

New Jersey 2,865,710$ 2,920,158$ 2,975,641$ 3,032,179$ 3,089,790$ 3,148,496$ 3,208,317$ 3,269,275$ 3,331,392$ 3,394,688$

New Mexico 1,523,839$ 1,552,792$ 1,582,295$ 1,612,358$ 1,642,993$ 1,674,210$ 1,706,020$ 1,738,435$ 1,771,465$ 1,805,123$

New York 4,975,605$ 5,070,142$ 5,166,475$ 5,264,638$ 5,364,666$ 5,466,594$ 5,570,460$ 5,676,298$ 5,784,148$ 5,894,047$

North Carolina 3,013,912$ 3,071,176$ 3,129,528$ 3,188,989$ 3,249,580$ 3,311,322$ 3,374,237$ 3,438,348$ 3,503,676$ 3,570,246$

North Dakota 1,247,484$ 1,271,186$ 1,295,338$ 1,319,950$ 1,345,029$ 1,370,584$ 1,396,625$ 1,423,161$ 1,450,201$ 1,477,755$

Northern Mariana Islands 1,124,161$ 1,145,520$ 1,167,285$ 1,189,464$ 1,212,063$ 1,235,093$ 1,258,559$ 1,282,472$ 1,306,839$ 1,331,669$

Ohio 3,412,727$ 3,477,569$ 3,543,643$ 3,610,972$ 3,679,581$ 3,749,493$ 3,820,733$ 3,893,327$ 3,967,300$ 4,042,679$

Oklahoma 1,861,099$ 1,896,460$ 1,932,493$ 1,969,210$ 2,006,625$ 2,044,751$ 2,083,601$ 2,123,190$ 2,163,530$ 2,204,637$

Oregon 1,876,988$ 1,912,651$ 1,948,991$ 1,986,022$ 2,023,757$ 2,062,208$ 2,101,390$ 2,141,316$ 2,182,001$ 2,223,460$

Pennsylvania 3,645,093$ 3,714,350$ 3,784,923$ 3,856,836$ 3,930,116$ 4,004,788$ 4,080,879$ 4,158,416$ 4,237,426$ 4,317,937$

Puerto Rico 1,856,004$ 1,891,268$ 1,927,203$ 1,963,819$ 2,001,132$ 2,039,153$ 2,077,897$ 2,117,377$ 2,157,608$ 2,198,602$

Rhode Island 1,323,215$ 1,348,356$ 1,373,975$ 1,400,080$ 1,426,682$ 1,453,789$ 1,481,411$ 1,509,558$ 1,538,239$ 1,567,466$

South Carolina 2,035,295$ 2,073,966$ 2,113,371$ 2,153,525$ 2,194,442$ 2,236,137$ 2,278,623$ 2,321,917$ 2,366,033$ 2,410,988$

South Dakota 1,275,703$ 1,299,941$ 1,324,640$ 1,349,808$ 1,375,455$ 1,401,588$ 1,428,219$ 1,455,355$ 1,483,007$ 1,511,184$

Tennessee 2,378,249$ 2,423,436$ 2,469,481$ 2,516,401$ 2,564,213$ 2,612,933$ 2,662,579$ 2,713,168$ 2,764,718$ 2,817,248$

Texas 6,125,095$ 6,241,472$ 6,360,060$ 6,480,901$ 6,604,038$ 6,729,515$ 6,857,375$ 6,987,666$ 7,120,431$ 7,255,719$

Utah 1,664,291$ 1,695,913$ 1,728,135$ 1,760,970$ 1,794,428$ 1,828,522$ 1,863,264$ 1,898,666$ 1,934,741$ 1,971,501$

Vermont 1,238,146$ 1,261,671$ 1,285,643$ 1,310,070$ 1,334,961$ 1,360,325$ 1,386,172$ 1,412,509$ 1,439,346$ 1,466,694$

Virgin Islands 1,134,639$ 1,156,197$ 1,178,165$ 1,200,550$ 1,223,361$ 1,246,605$ 1,270,290$ 1,294,426$ 1,319,020$ 1,344,081$

Virginia 2,708,085$ 2,759,538$ 2,811,969$ 2,865,397$ 2,919,839$ 2,975,316$ 3,031,847$ 3,089,453$ 3,148,152$ 3,207,967$

Washington 2,453,674$ 2,500,293$ 2,547,799$ 2,596,207$ 2,645,535$ 2,695,800$ 2,747,021$ 2,799,214$ 2,852,399$ 2,906,595$

West Virginia 1,482,745$ 1,510,917$ 1,539,625$ 1,568,877$ 1,598,686$ 1,629,061$ 1,660,013$ 1,691,554$ 1,723,693$ 1,756,443$

Wisconsin 2,246,883$ 2,289,574$ 2,333,076$ 2,377,404$ 2,422,575$ 2,468,604$ 2,515,507$ 2,563,302$ 2,612,004$ 2,661,632$

Wyoming 1,225,766$ 1,249,056$ 1,272,788$ 1,296,971$ 1,321,613$ 1,346,724$ 1,372,312$ 1,398,385$ 1,424,955$ 1,452,029$

Total 124,704,388$ 127,073,771$ 129,488,173$ 131,948,448$ 134,455,469$ 137,010,123$ 139,613,315$ 142,265,968$ 144,969,021$ 147,723,433$

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FOC Performance Year 11 12 13 14 15 16 17 18 19 20

Annual disincentive payment 150,530,178$ 153,390,251$ 156,304,666$ 159,274,455$ 162,300,670$ 165,384,382$ 168,526,686$ 171,728,693$ 174,991,538$ 178,316,377$

Alabama 2,493,936$ 2,541,321$ 2,589,606$ 2,638,808$ 2,688,946$ 2,740,036$ 2,792,096$ 2,845,146$ 2,899,204$ 2,954,289$

Alaska 1,514,888$ 1,543,671$ 1,573,001$ 1,602,888$ 1,633,342$ 1,664,376$ 1,695,999$ 1,728,223$ 1,761,059$ 1,794,519$

American Samoa 1,357,376$ 1,383,166$ 1,409,447$ 1,436,226$ 1,463,514$ 1,491,321$ 1,519,656$ 1,548,530$ 1,577,952$ 1,607,933$

Arizona 2,881,821$ 2,936,576$ 2,992,370$ 3,049,226$ 3,107,161$ 3,166,197$ 3,226,355$ 3,287,655$ 3,350,121$ 3,413,773$

Arkansas 2,045,536$ 2,084,401$ 2,124,004$ 2,164,360$ 2,205,483$ 2,247,387$ 2,290,088$ 2,333,600$ 2,377,938$ 2,423,119$

California 10,306,635$ 10,502,461$ 10,702,008$ 10,905,346$ 11,112,547$ 11,323,686$ 11,538,836$ 11,758,074$ 11,981,477$ 12,209,125$

Colorado 2,553,951$ 2,602,476$ 2,651,923$ 2,702,310$ 2,753,654$ 2,805,973$ 2,859,287$ 2,913,613$ 2,968,972$ 3,025,382$

Connecticut 2,203,881$ 2,245,755$ 2,288,424$ 2,331,904$ 2,376,211$ 2,421,359$ 2,467,364$ 2,514,244$ 2,562,015$ 2,610,693$

Delaware 1,560,046$ 1,589,687$ 1,619,891$ 1,650,669$ 1,682,031$ 1,713,990$ 1,746,556$ 1,779,740$ 1,813,555$ 1,848,013$

District of Columbia 1,488,783$ 1,517,070$ 1,545,894$ 1,575,266$ 1,605,196$ 1,635,695$ 1,666,773$ 1,698,442$ 1,730,712$ 1,763,596$

Florida 5,867,268$ 5,978,746$ 6,092,342$ 6,208,097$ 6,326,051$ 6,446,246$ 6,568,724$ 6,693,530$ 6,820,707$ 6,950,301$

Georgia 3,674,690$ 3,744,509$ 3,815,655$ 3,888,152$ 3,962,027$ 4,037,306$ 4,114,015$ 4,192,181$ 4,271,832$ 4,352,997$

Guam 1,382,358$ 1,408,623$ 1,435,387$ 1,462,659$ 1,490,450$ 1,518,768$ 1,547,625$ 1,577,030$ 1,606,993$ 1,637,526$

Hawaii 1,671,283$ 1,703,037$ 1,735,395$ 1,768,367$ 1,801,966$ 1,836,204$ 1,871,092$ 1,906,642$ 1,942,869$ 1,979,783$

Idaho 1,721,151$ 1,753,853$ 1,787,176$ 1,821,132$ 1,855,734$ 1,890,993$ 1,926,922$ 1,963,533$ 2,000,840$ 2,038,856$

Illinois 4,430,833$ 4,515,019$ 4,600,804$ 4,688,220$ 4,777,296$ 4,868,064$ 4,960,558$ 5,054,808$ 5,150,850$ 5,248,716$

Indiana 2,903,903$ 2,959,077$ 3,015,299$ 3,072,590$ 3,130,969$ 3,190,458$ 3,251,076$ 3,312,847$ 3,375,791$ 3,439,931$

Iowa 2,076,916$ 2,116,378$ 2,156,589$ 2,197,564$ 2,239,318$ 2,281,865$ 2,325,220$ 2,369,399$ 2,414,418$ 2,460,292$

Kansas 2,030,427$ 2,069,005$ 2,108,316$ 2,148,374$ 2,189,193$ 2,230,788$ 2,273,173$ 2,316,363$ 2,360,374$ 2,405,221$

Kentucky 2,387,991$ 2,433,363$ 2,479,597$ 2,526,709$ 2,574,717$ 2,623,636$ 2,673,485$ 2,724,282$ 2,776,043$ 2,828,788$

Louisiana 2,434,665$ 2,480,924$ 2,528,061$ 2,576,095$ 2,625,040$ 2,674,916$ 2,725,740$ 2,777,529$ 2,830,302$ 2,884,077$

Maine 1,663,599$ 1,695,207$ 1,727,416$ 1,760,237$ 1,793,681$ 1,827,761$ 1,862,489$ 1,897,876$ 1,933,936$ 1,970,680$

Maryland 2,733,030$ 2,784,957$ 2,837,871$ 2,891,791$ 2,946,735$ 3,002,723$ 3,059,775$ 3,117,910$ 3,177,151$ 3,237,517$

Massachusetts 2,919,258$ 2,974,724$ 3,031,244$ 3,088,838$ 3,147,526$ 3,207,329$ 3,268,268$ 3,330,365$ 3,393,642$ 3,458,121$

Michigan 3,721,841$ 3,792,556$ 3,864,615$ 3,938,042$ 4,012,865$ 4,089,110$ 4,166,803$ 4,245,972$ 4,326,645$ 4,408,852$

Minnesota 2,620,046$ 2,669,827$ 2,720,554$ 2,772,244$ 2,824,917$ 2,878,590$ 2,933,283$ 2,989,016$ 3,045,807$ 3,103,677$

Mississippi 2,057,896$ 2,096,996$ 2,136,839$ 2,177,439$ 2,218,811$ 2,260,968$ 2,303,926$ 2,347,701$ 2,392,307$ 2,437,761$

Missouri 2,784,845$ 2,837,757$ 2,891,674$ 2,946,616$ 3,002,602$ 3,059,651$ 3,117,785$ 3,177,023$ 3,237,386$ 3,298,896$

Montana 1,582,054$ 1,612,113$ 1,642,744$ 1,673,956$ 1,705,761$ 1,738,170$ 1,771,196$ 1,804,848$ 1,839,140$ 1,874,084$

Nebraska 1,783,403$ 1,817,288$ 1,851,817$ 1,887,001$ 1,922,854$ 1,959,388$ 1,996,617$ 2,034,552$ 2,073,209$ 2,112,600$

Nevada 1,993,722$ 2,031,603$ 2,070,203$ 2,109,537$ 2,149,619$ 2,190,461$ 2,232,080$ 2,274,490$ 2,317,705$ 2,361,741$

New Hampshire 1,660,738$ 1,692,292$ 1,724,445$ 1,757,210$ 1,790,597$ 1,824,618$ 1,859,286$ 1,894,612$ 1,930,610$ 1,967,292$

New Jersey 3,459,187$ 3,524,912$ 3,591,885$ 3,660,131$ 3,729,673$ 3,800,537$ 3,872,747$ 3,946,330$ 4,021,310$ 4,097,715$

New Mexico 1,839,420$ 1,874,369$ 1,909,982$ 1,946,272$ 1,983,251$ 2,020,933$ 2,059,330$ 2,098,458$ 2,138,328$ 2,178,956$

New York 6,006,034$ 6,120,148$ 6,236,431$ 6,354,923$ 6,475,667$ 6,598,705$ 6,724,080$ 6,851,837$ 6,982,022$ 7,114,681$

North Carolina 3,638,081$ 3,707,204$ 3,777,641$ 3,849,417$ 3,922,555$ 3,997,084$ 4,073,029$ 4,150,416$ 4,229,274$ 4,309,630$

North Dakota 1,505,832$ 1,534,443$ 1,563,598$ 1,593,306$ 1,623,579$ 1,654,427$ 1,685,861$ 1,717,892$ 1,750,532$ 1,783,792$

Northern Mariana Islands 1,356,971$ 1,382,753$ 1,409,025$ 1,435,797$ 1,463,077$ 1,490,876$ 1,519,202$ 1,548,067$ 1,577,480$ 1,607,452$

Ohio 4,119,490$ 4,197,760$ 4,277,517$ 4,358,790$ 4,441,607$ 4,525,998$ 4,611,992$ 4,699,620$ 4,788,912$ 4,879,902$

Oklahoma 2,246,525$ 2,289,209$ 2,332,704$ 2,377,026$ 2,422,189$ 2,468,211$ 2,515,107$ 2,562,894$ 2,611,589$ 2,661,209$

Oregon 2,265,705$ 2,308,754$ 2,352,620$ 2,397,320$ 2,442,869$ 2,489,283$ 2,536,580$ 2,584,775$ 2,633,885$ 2,683,929$

Pennsylvania 4,399,978$ 4,483,577$ 4,568,765$ 4,655,572$ 4,744,028$ 4,834,164$ 4,926,013$ 5,019,608$ 5,114,980$ 5,212,165$

Puerto Rico 2,240,376$ 2,282,943$ 2,326,319$ 2,370,519$ 2,415,559$ 2,461,454$ 2,508,222$ 2,555,878$ 2,604,440$ 2,653,924$

Rhode Island 1,597,248$ 1,627,595$ 1,658,520$ 1,690,032$ 1,722,142$ 1,754,863$ 1,788,205$ 1,822,181$ 1,856,803$ 1,892,082$

South Carolina 2,456,797$ 2,503,476$ 2,551,042$ 2,599,512$ 2,648,902$ 2,699,232$ 2,750,517$ 2,802,777$ 2,856,030$ 2,910,294$

South Dakota 1,539,896$ 1,569,154$ 1,598,968$ 1,629,349$ 1,660,306$ 1,691,852$ 1,723,997$ 1,756,753$ 1,790,131$ 1,824,144$

Tennessee 2,870,775$ 2,925,320$ 2,980,901$ 3,037,538$ 3,095,252$ 3,154,061$ 3,213,988$ 3,275,054$ 3,337,280$ 3,400,689$

Texas 7,393,578$ 7,534,056$ 7,677,203$ 7,823,070$ 7,971,708$ 8,123,171$ 8,277,511$ 8,434,784$ 8,595,045$ 8,758,350$

Utah 2,008,959$ 2,047,129$ 2,086,025$ 2,125,659$ 2,166,047$ 2,207,202$ 2,249,139$ 2,291,872$ 2,335,418$ 2,379,791$

Vermont 1,494,561$ 1,522,958$ 1,551,894$ 1,581,380$ 1,611,426$ 1,642,043$ 1,673,242$ 1,705,034$ 1,737,429$ 1,770,441$

Virgin Islands 1,369,619$ 1,395,641$ 1,422,158$ 1,449,179$ 1,476,714$ 1,504,771$ 1,533,362$ 1,562,496$ 1,592,183$ 1,622,435$

Virginia 3,268,918$ 3,331,028$ 3,394,317$ 3,458,809$ 3,524,527$ 3,591,493$ 3,659,731$ 3,729,266$ 3,800,122$ 3,872,324$

Washington 2,961,820$ 3,018,094$ 3,075,438$ 3,133,872$ 3,193,415$ 3,254,090$ 3,315,918$ 3,378,920$ 3,443,120$ 3,508,539$

West Virginia 1,789,816$ 1,823,822$ 1,858,475$ 1,893,786$ 1,929,768$ 1,966,433$ 2,003,796$ 2,041,868$ 2,080,663$ 2,120,196$

Wisconsin 2,712,203$ 2,763,735$ 2,816,246$ 2,869,755$ 2,924,280$ 2,979,842$ 3,036,459$ 3,094,151$ 3,152,940$ 3,212,846$

Wyoming 1,479,617$ 1,507,730$ 1,536,377$ 1,565,568$ 1,595,314$ 1,625,625$ 1,656,512$ 1,687,986$ 1,720,057$ 1,752,738$

Total 150,530,178$ 153,390,251$ 156,304,666$ 159,274,455$ 162,300,670$ 165,384,382$ 168,526,686$ 171,728,693$ 174,991,538$ 178,316,377$

Page J-6 – 9

5.3.5.1 Disincentive Payment Calculation

The Contractor’s connection targets at the state/territory level will be used to evaluate actual performance and determine the level of disincentive payment required to FirstNet, when performance falls below targets in any given year. The disincentive payment will be calculated to reflect FirstNet’s preference of public safety connections from the primary user group over the extended primary user group (see description in Section 5.3.4, User Groups). Specifically, the annual maximum disincentive payment for each state or territory will be split and applied based on the achievement of primary user group connection targets (65 percent of the annual maximum disincentive payments) and the achievement of extended user group connection targets (35 percent of the annual maximum disincentive payments). The Contractor is liable for disincentive payments upon failure to achieve 100 percent of either target, in a given year. Percentage points will be rounded to the nearest full percentage. For clarity, percentages will be rounded up for any percentage above 0.5 percent.

FirstNet will use a progressive scale to calculate the disincentive payment. To encourage focus and effort on high levels of public safety adoption, FirstNet will use a progressive scale to calculate the disincentive payment. For each percentage point below 100 percent achievement of the proposed connection target in each state/territory and year, FirstNet will apply increasingly higher disincentive payment. With this structure, the Contractor incurs a larger disincentive payment per percentage point as target achievement approaches the 70 percent floor. Refer to Table 3 Progressive Scale for Disincentive Payments for further details on FirstNet’s scale to measure disincentive payments. For performance achieved at or above 100 percent of the proposed connection targets for either user group, no monetary mechanisms will be applied.

Table 3 Progressive Scale for Disincentive Payments

User Group Connection Target Achieved

Disincentive Payment

Performance Remediation Action

100% 0%

No action

99% 1%

98% 2%

97% 3%

96% 5%

95% 6%

94% 8%

93% 9%

92% 11%

91% 13%

90% 15%

89% 17%

The Contractor develops and implements a corrective action plan to increase public safety adoption to 100%

88% 19%

87% 21%

86% 24%

85% 27%

84% 30%

83% 33%

82% 36%

81% 40%

80% 44%

Page J-6 – 10

User Group Connection Target Achieved

Disincentive Payment

Performance Remediation Action

79% 48% FirstNet may exercise its rights (in accordance with laws and regulations) and request the Contractor to provide discounted pricing to meet targets

78% 52%

77% 57%

76% 62%

75% 67%

74% 73%

73% 79%

72% 86%

71% 93%

70% 100%

<70% 100% FirstNet may exercise its rights (in accordance with laws and regulations) to either own or contract out functions responsible for driving public safety adoption at the Contractor’s cost

5.3.5.2 Reporting and Payment

The Contractor must provide a quarterly device connections (see Section F, Deliverables and Performance) report to FirstNet throughout the government fiscal year for the period of performance.

The report, at minimum, should consist of the following: gross activations, gross deactivations, net connections, total connections, quarterly churn, and reasons for churn (e.g., voluntary churn, involuntary churn), as well as be able to break down the aforementioned data by primary user group and extended primary user group by device type and monthly data usage at a state/territory level.

FirstNet will charge the applicable disincentive payment to the Contractor based on the total net device connections at the end of each Government fiscal year relative to the Offeror’s proposed connection targets (as detailed in Section J, Attachment J-24, Public Safety Device Connections Template), the disincentives in Table 2 Total Maximum Disincentive Payments by State/Territory Across FOC Performance Years, and the calculations in Table 3 Progressive Scale for Disincentive Payments. Any disincentive payments should be made by the Contractor to FirstNet no later than January 31 of the following Government fiscal year.

5.3.5.3 Performance Remediation

Public safety adoption and use of the NPSBN are primary FirstNet programmatic objectives. It is important that the Contractor maintain and grow public safety adoption throughout the life of the contract. Should the Contractor’s performance fail to meet or maintain connection targets, appropriate actions may be exercised at FirstNet’s discretion, in addition to the disincentive payment program described above.

Table 4 Performance Remediation Triggers identifies additional performance remediation triggers should the Contractor’s total missed connection targets (primary user group and extended primary user group) surpass 10 percent of the forecasted connection target in any state/territory and year.

Remediation is triggered if either of the following is met:

Page J-6 – 11

Total missed connections targets exceed 10 percent in three or more quarters over a period of six consecutive quarters for either the primary user group or extended primary user group

Total missed connections targets exceed 10 percent in two consecutive quarters for either the primary user group or extended primary user group

Table 4 Performance Remediation Triggers

Performance remediation will cease or reduce as the Contractor achieves two consecutive quarters of performance at a trigger level lower than its current level of performance in line with the performance shortfall described in Table 4 Performance Remediation Triggers.

5.4 Performance Assessment Report

Performance Assessment Reports (PARs), available in Section 6.3, Performance Assessment Report, will be used to report all minor discrepancies and will be generated by the COR and sent to the Contractor for corrective action with a copy sent to the CO. The Contractor will be given ten (10) business days to correct PARs unless another date is mutually agreed upon. If three minor discrepancies are found during one month of performance, the Contractor shall submit a corrective action plan to the COR with a copy sent to the CO.

5.5 Corrective Action Report

When there is a deficiency and the COR determines that formal written communication is required, the COR will prepare a Corrective Action Report (CAR) and present it to the Contractor’s program manager and task manager. A CAR template is available in Section 6.1, Corrective Action Report. The CAR will identify the performance problem along with the proposed resolution and the scheduled date for correction. The Contractor shall be required to acknowledge receipt of the CAR in writing. The CAR will specify if the Contractor is required to prepare a corrective action plan to document how the Contractor shall correct the unacceptable performance and avoid a recurrence. The CAR will also state how long after receipt the Contractor has to present this corrective action plan to the COR. The Government will review the Contractor’s corrective action plan to determine acceptability. The Contractor shall provide a weekly status of the corrective action until all performance problems have been satisfactorily resolved.

Any CAR will become a part of the supporting documentation; the Government will use any corrective

Trigger Cause Performance Remediation Action

1 Contractor misses 10% to 20% of its connection targets in three of six consecutive quarters or two consecutive quarters

Contractor develops and implements a corrective action plan to increase public safety adoption to 100%

2 Contractor misses 20% to 30% of its connection targets in three of six consecutive quarters or two consecutive quarters

FirstNet may exercise its rights (in accordance with laws and regulations) and request the Contractor to provide discounted pricing to meet targets

3 Contractor misses 30% or more of its connection targets in three of six consecutive quarters or two consecutive quarters

FirstNet may exercise its rights (in accordance with laws and regulations ) to either own or contract out functions responsible for driving public safety adoption at the Contractor’s cost

Page J-6 – 12 action documentation as part of an overall evaluation of Contractor performance when determining present or future contractual actions.

6 Forms

Examples of forms for the PAR, CAR, and CCR can be found in this section. The specific format or content of these forms may be modified at a later date to better capture information required to achieve the objectives described above.

Page J-6 – 13

6.1 Corrective Action Report

CORRECTIVE ACTION REPORT

(If more space is needed, use reverse and identify by number)

1. CONTRACTOR

2. CONTRACT NUMBER

3. TYPE OF SERVICES

4. FUNCTIONAL AREA

5. SUSPENSE DATE

6. CONTROL NUMBER

7. DEFICIENCY MAJOR MINOR

FINDING:

FINDING IMPACT:

Please respond with a written corrective action plan that details the corrective action of the cited deficiency, the cause of the deficiency, and actions taken to prevent recurrence by the suspense date cited in Block 5. If no date was entered in Block 5, the Contractor is not required to provide a response.

8. QUALITY ASSURANCE PERSONNEL (COR)

TYPED NAME AND GRADE

SIGNATURE AND DATE

9. ISSUING AUTHORITY

TYPED NAME AND GRADE

SIGNATURE AND DATE

10. COR RESPONSE TO CONTRACTOR CORRECTIVE ACTION AND ACTION TAKEN TO PREVENT

RECURRENCE

11. COR DETERMINATION

ACCEPTED REJECTED

12. CLOSE DATE

Page J-6 – 14

6.2 Customer Complaint Record

CUSTOMER COMPLAINT RECORD

DATE/TIME OF COMPLAINT

SOURCE OF COMPLAINT

ORGANIZATION

LOCATION

INDIVIDUAL

PHONE

NUMBER

NATURE OF COMPLAINT

CONTRACT REFERENCE

VALIDATION

DATE/TIME CONTRACTOR INFORMED OF COMPLAINT

ACTION TAKEN BY CONTRACTOR

RECEIVED/VALIDATED BY

Page J-6 – 15

6.3 Performance Assessment Report

PERFORMANCE ASSESSMENT REPORT

(If more space is needed, use reverse and identify by number)

1. CONTRACT/TASK ORDER

NUMBER

2. CONTRACTOR

3. TYPE OF SERVICES

4. QUALITY ASSURANCE PERSONNEL (COR) SIGNATURE AND

DATE

5. COR PHONE

6. SUSPENSE

DATE

I. PERFORMANCE

7. DEFICIENCY

(CHECK ALL BOXES THAT APPLY)

NEW

REPEAT

NO DEFICIENCY NOTED

8. SERVICES SUMMARY OR (STATEMENT OF

WORK) PARAGRAPH ITEM REVIEWED

9. BRIEF DESCRIPTION OF DEFICIENCY (IF

DEFICIENCY BOX WAS CHECKED)

10. DETAILED PERFORMANCE ASSESSMENT

II. CONTRACTOR VALIDATION

11. CONTRACTOR REPRESENTATIVE

CONCUR NON-CONCUR

12. CORRECTIVE ACTION ESTIMATED

COMPLETION DATE

13. CONTRACTOR REPRESENTATIVE CORRECTIVE ACTION AND PREVENTION OF RECURRENCE OR

REASON FOR NON-CONCURRENCE OF COR-CITED DEFICIENCY

III. ACTION CORRECTED

14. CONCUR NON-CONCUR COR SIGNATURE AND DATE

15. COR REMARKS (REQUIRED)

6. CONTRACTOR REPRESENTATIVE REMARKS

Page J-6 – 16

7 Signatures

Contracting Officer

Date:

Contracting Officer’s Representative

Alternate Contracting Officer’s Representative