EXHIBIT A Performance Requirement Summary.docx

EXHIBIT A

PERFORMANCE REQUIREMENTS SUMMARY

1. GENERAL. The Performance Requirements Summary (PRS) in this Exhibit will be used to measure performance of services for the purposes of determining the continuation of services under this contract and any re-performance and/or equitable adjustment reductions for non- or unsatisfactory performance. The rights of the Government and remedies described in this Exhibit are in addition to all other rights and remedies set forth in this contract. Specifically, the Government reserves its rights under FAR 52.212-4(a), Contract Terms and Condition – Commercial Items (Inspection/Acceptance). Any equitable adjustment reductions pursuant to the PRS shall reflect the reduced value of services performed under this contract. The contractor shall not be relieved of full performance of the services hereunder and may be terminated for cause based upon inadequate performance of services even if equitable adjustment reductions were previously taken for inadequate performance. The Government may modify the type and frequency of inspections and methods of surveillance as it deems necessary. Requirements not included in the PRS remain subject to separate quality assurance evaluations and all FAR 52.212-4(a) remedies.

2. Explanation of the Performance Requirement Summary. The services contained on the PRS Table are those required services for which the Government may require re-performance of nonconforming services at no increase in contract price. If re-performance will not correct the defects or is not possible, the government may seek an equitable price reduction or adequate consideration for acceptance of nonconforming services. Due to the interrelated requirements of hospital housekeeping services, many tasks will have direct impact on the overall acceptability of a single service. Therefore, the PRS was developed to cover required services rather than individual performance of tasks. Each listed required service will pass or fail based on the acceptability of the tasks which comprise that service.

3. PRS Table Overview. The PRS table contained herein as Section 9 provides the following information:

3.1. Column 1 lists the PWS requirements or “performance objectives” considered most critical to satisfactory contract performance.

3.2. Column 2 contains the PWS reference(s) by paragraph number (this includes all subsequent subparagraphs) that describes the required service.

3.3. Column 3 provides the Acceptable Quality Level (AQL) for each PWS requirement. The AQL is the defect rate in the population of services above which the contractor’s quality control is considered unsatisfactory. The AQL does not represent a threshold above which payment reductions are taken. Equitable adjustment reductions or adequate consideration may be taken for all defects (with credit for rework to the extent appropriate) irrespective of whether the AQL was exceeded or not.

3.3.1. The AQLs are based on levels of performance required for a clean MTF. Since proper housekeeping services are required for infection control, the AQLs used to evaluate the Contractor's performance of each work requirement are small. Deficiency levels which exceed the AQL are unacceptable and may trigger actions in Paragraph 8.

3.4. Column 4 sets forth the primary surveillance method to be used by the Government for the required service listed in Column 1.

3.5. Column 5 specifies the PRS incentives and disincentives.

4. Inspection Methods. The Government may use a variety of surveillance methods to evaluate the contractor’s performance. The Government may unilaterally change the type and frequency of inspections as it deems necessary. Both scheduled and unscheduled surveillance will be used to review either total or part of the work performed by the contractor. For the purposes of this contract, the word “sampling” is synonymous with the word “inspection.”

4.1. Random Sampling. Random sampling is a method of reviewing contractor performance in a lot to determine the quality of the lot against a standard. Random sampling will be the primary method of surveillance for this contract. Random sampling consisting of one or more but not all services selected at random from the lot and examined for one or more quality characteristics. Results are compared to performance standards to check conformance.

4.1.1. The American National Standard Institute Sampling Procedures and Tables for Inspection by Attributes (ANSI/ASQC Z1.4) will be used to determine the number of inspections and the number of allowable defects for each service per month. Contract performance will be measured each month by comparing the recorded defects to the number of allowable defects as determined by the AQL.

5. Measuring Performance. The Government will use the PRS in the contract as the primary tool to measure contract performance. Defects are the contractor’s failure to meet contract provisions, requirements and standards.

6. Criteria for Acceptance/Rejection. The contractor shall have work complete and ready for inspection in accordance with all terms of the contract. Government inspections will be made according to the surveillance methods listed, to compare contractor’s performance to contract standards and requirements. When Government inspectors are unable to contact the contractor to notify the contractor of inspection results, acceptance or rejection of work will be made on the basis of the initial inspection and the provision for re-inspection and credit for re-performance under paragraph 7 below, will not be exercised by the Government.

6.1. Acceptance. Performance of a listed service will be accepted when the number of defects found during contract surveillance does not exceed the number of defects allowed as specified in the AQL, Column 3 of the PRS Table.

6.2. Rejection. When the contractor’s performance does not meet contract requirements or is not performed in accordance with the approved work plan, or is not performed in accordance with the standard specification or was not performed within the allowed time frame or is not completed in its entirety, it will be considered to be defective and will be rejected. Following the issuance of a Contract Discrepancy Report (CDR) by the KO the contractor shall explain, in writing, why performance was unacceptable and how re-occurrence of the problem will be prevented in the future. The Government will evaluate the Contractor's explanation, assess its validity, and determine whether it is acceptable.

7. Re-performance of Services. If any of the services do not conform to contract requirements, the Government will require the contractor to re-perform the services in conformity with contract requirements, at no additional cost to the Government. When the defects in services cannot be corrected due to circumstances, the Government may (1) require the contractor to take necessary action to ensure that future performance conforms to contract requirements and (2) reduce the payment to reflect the reduced value of the services performed. The Government may exercise appropriate contractual remedy should the contractor fail to promptly take the necessary action to ensure future performance is in conformity with contract requirements.

7.1. The Contractor shall be required to correct/eliminate any defects in Type I or II Services within 30 minutes from receipt of Inspection Discrepancy Notification or Customer Complaint Record. The contractor shall correct/eliminate any deficiencies in Type III, IV, V and VI Services in 2 hours, with the exception of floor care, which must be corrected/eliminated prior to the next scheduled service. Notification begins when pertinent documents (e.g., Customer Complaint Record or Inspection Discrepancy Notification) are issued to the contractor. Time of notification and correction of all applicable deficiencies shall be entered on all Government documents and retained in the contract file. The Government will re-inspect work designated for re-performance. The KO may seek an equitable adjustment or adequate consideration for non-compliance upon validation.

8. Implementation of Reduction Procedures for Acceptance of Nonconforming Services. When the contractor fails to meet contract requirements of those services listed on the PRS Table; e.g. the number of recorded defects exceeds the number of allowable defects (AQL’s); performance will be deemed defective. The contractor may be subject to an equitable adjustment reduction. The equitable adjustment reduction for nonconforming services will be calculated as follows:

Multiply the square feet of the area involved by the established equitable adjustment price per square foot for that area. The established equitable adjustment price per square foot is located in the applicable CLIN description. For example, 500 square feet (unsatisfactory area) x 0.04 (equitable adjustment price per square foot) = $20.00.

If the unsatisfactory area was scheduled to be cleaned each shift and the area was unsatisfactory for each shift, the reduction would be as follows:

1500 square feet x 0.04 = $60.00

The KO may reduce the contractor’s payment by $20.00 or $60.00, whichever applies.

9. The Performance Requirements Summary. The PRS Table is below.

PERFORMANCE REQUIREMENTS SUMMARY

Paragraph

Disincentives

5.6., 5.12., 5.13., 5.14

5.7., 5.12., 5.13., 5.14.

5.8., 5.12., 5.13., 5.14.

5.9., 5.12., 5.13., 5.14.

5.10. ,

5.12. , 5.13.

5.11., 5.12., 5.13.