Exhibit E-2 Section E - Es QASP attachments.docx

QUALITY ASSURANCE SURVEILLANCE PLAN FOR

FACILITIES OPERATIONS AND SUPPORT SERVICES

This document is for the use of the COR and the Contracting Officer. It is not a part of any contractual arrangement and is provided for information only. It is not to be considered definitive and may be changed by the Contracting Officer without discussion at any time.

PURPOSE

The purpose of this exhibit is to explain the quality assurance methods the Government will use to evaluate the Contractor's performance in meeting the contract requirements.

The Quality Assurance Surveillance Plan (QASP) is FOR THE USE OF THE CONTRACTING OFFICER'S TECHNICAL REPRESENTATIVE (COR) AND THE CONTRACTING OFFICER. It is provided for INFORMATIONAL PURPOSES only, to demonstrate to the Contractor how the Government will monitor contract performance. It is a supplement to the solicitation and contract and shall not be considered a part of the solicitation nor of any resulting contract. The Government reserves the right to change or rectify procedures contained in this plan at any time -- including modifying the type and frequency of items surveilled.

NOTE: The right of the Government and remedies described in this section are in addition to all other rights and remedies set forth in this solicitation. Specifically, the Government reserves its rights under the Inspection of Services and Default or Termination clauses. Any deductions pursuant to the Performance Requirements Summary (PRS) shall reflect the reduced value of services to be performed under the contract. The contractor shall not be relieved of full performance of the services hereunder and may be terminated for default based upon inadequate performance of services, even if a deduction was previously taken for any inadequate performance.

TABLE OF CONTENTS

Exhibit E-2

1. INTRODUCTION

a. This Quality Assurance Surveillance Plan (QASP) has been developed in conjunction with OFPP Guide "A Guide to Best Practices for Performance-Based Service Contracting" (information purposes only) and OFPP “Seven Steps to Performance-Based Services Acquisition” (both available at www.acqnet.gov/Library/OFPP/BestPractises/pbsc). It is designed to provide the Contracting Officer's Technical Representative (COR) an effective and systematic surveillance method for each listed service on the Performance Requirements Summary (PRS) in the Student Support Services contract.

b. The QASP provides a systematic method to evaluate the services the Contractor is required to furnish. It does not detail how the Contractor accomplishes the work. The plan uses a combination of OFPP Pamphlet 4 surveillance methods to adequately assure the Government of the Contractor's performance, while keeping the cost of surveillance within the requirements of OMB Circular A-76.

c. This QASP is based on the premise that the Contractor, and not the Government, is responsible for management and quality control actions to meet the terms of the contract. The Acceptable Quality Levels (AQLs) recognize that the Contractor is not a perfect manager and that unforeseen and uncontrollable problems do occur. Good management and use of an adequate quality control plan will allow the Contractor to operate within the allowable AQLs. COR/Inspectors/Monitors are to be objective, fair, and consistent in evaluating Contractor performance against the contract standards.

d. The Government's primary quality assurance procedures are based upon random sampling of the recurring critical services of the contract, using the concepts of OFPP Pamphlet 4. Portions of the statement of work not covered by the PRS will be reviewed periodically (i.e., daily, weekly, monthly, quarterly) in accordance with FAR clause 52.246-4, Inspection of Services--Fixed Price; see Section E. Formal customer complaints are an integral part of the Government surveillance plan. Customer complaints can and will highlight service problems. When random sampling indicates unsatisfactory performance, documented customer complaints can be used to support invoice reductions.

2. COR/INSPECTOR EVALUATION SCHEDULE

a. The COR will develop a monthly surveillance schedule (Atch 2), based on this surveillance plan's requirements. This monthly schedule shows where and what the COR/Inspector is monitoring at all times. The monthly schedule will be completed not later than the last workday of the preceding month. Copies of the schedule shall be sent to the Contract Administrator. After it is filled in, the schedule shall be marked "FOR OFFICIAL USE ONLY" and must not be shown to the Contractor.

b. Contract surveillance must cover all hours of operation. Random observations are scheduled at night, on weekends and holidays when services are performed during these periods. Select the areas and times for random sampling using the procedures in the sampling guides. Annotate the selected inspection items/times on the schedule. When the sampling concept does not allow for specific selection of inspection items/times during the preceding month, show on the schedule the date and time the random sample selection will be accomplished.

c. Program any periodic surveillance into the schedule so as not to interfere with the sampling requirements.

d. Changes to the monthly surveillance schedule will be posted weekly and copies sent to the Contract Administrator. Include documentation of the reasons for the changes.

3. ACTUAL SURVEILLANCE

a. Doing surveillance means using the surveillance plan called for in the monthly schedule. Actual surveillance should be comparable to the monthly schedule.

b. It is essential that the exact number of inspections in a random sample be accomplished. It is also essential that the exact number of periodic checklist inspections be done for an effective quality assurance system. A complete audit trail must exist from the monthly schedule, to observing the COR/Inspector perform sampling, to completion of the surveillance checklist.

c. If less than the required number of inspections are made or inspections are made outside the randomly selected sample, the ability to project from random sample results to lot results is destroyed. If this should occur, consider the missed inspections acceptable. This will increase the Government's risk of accepting a defective lot.

NOTE: If random sampling is the method of surveillance covering a seven day service and surveillance is limited to five days, consider splitting the service into two separate PRS line items: the weekday service covered by random sampling and the weekend service covered by customer complaint.

d. In either case, only those defectives recorded by the COR during scheduled surveillance may be used to determine the level of contract performance. Errors found in services not scheduled for observation should be brought to the Contractor's attention but not used to count as a defect for determining if the AQL has been met.

e. It may be necessary to overdraw the random sample by 10 percent or more to create a pool of randomly selected potential replacement samples since some original samples selected may not be surveilled, or additional samples may be needed due to changes in the lot size. If replacement samples are used they must be used in the order drawn for the time remaining in the month.

4. RANDOM SAMPLING SURVEILLANCE

a. When random sampling is the method of surveillance, record the results of the inspection on the tally checklist (Atch.7). These documents then become the official record of the Contractor's performance.

b. For areas surveilled by sampling, criteria are derived from OFPP Pamphlet 4 based on the lot size (number of times an event takes place per month), sample size, and AQL for each contract requirement. When the number of defects in the Contractor's performance discovered by the COR/Inspector exceeds the allowable number defects, the Contractor's performance will be considered unsatisfactory. When a surveillance observation results in an unacceptable rating recorded on the front of the checklist, the specific reason for the unacceptable performance must be recorded on the back of the tally checklist.

c. The Contractor is required to immediately correct, if possible, all defectives detected during surveillance by the COR. Any defectives corrected by the Contractor shall still count as defectives, as the sample also represents performance in the uninspected portion of the lot.

d. During the month the COR may receive customer complaints about the quality of the service or may observe unacceptable performance by the Contractor other than during a sample observation. These complaints and observations will be noted and should reinforce the accuracy of the sample results, but they will not be counted as a defective. Only defectives discovered during sample observations will be counted when sampling is the method of surveillance. Only one surveillance method may be used during an inspection period to cause less than maximum payment for the listed service.

e. If the number of defectives recorded on the tally checklist exceeds the AQL, the COR will determine the possible cause of this unacceptable performance. If any Government action or lack of action caused unacceptable performance, these defectives shall not be counted. Any determination as to the reasons for the defectives will not be shared with the Contractor as the Contractor must manage the corrective actions as deemed necessary to deliver the contract requirements.

f. When the Government has caused the Contractor to perform in an unsatisfactory manner, the COR prepares a letter to the responsible organization, requesting corrective action be taken. The COR sends this letter to the organization through the Contracting Officer.

5. INFORM CONTRACT MANAGER

As a rule, the COR will contact the Contractor's manager or on-site representative and inform the manager of what was wrong. Allow the Contractor to correct the problem, if possible. There is no need to do this in writing. However, whenever possible, have the manager initial the entry on the tally or surveillance activity checklist. When the Contractor does not initial the checklist, the COR must note on the back of the checklist where the defective is recorded, the time and method of notification, and the COR's initials.

6. CONTRACT DISCREPANCY REPORT (CDR)

a. If performance in any area is judged unsatisfactory, the Contractor is required to respond to a Contract Discrepancy Report (CDR) (Atch 5). Normally CDRs are issued at the end of the month. But, if the failure is serious enough, the CDR will be issued at the time of the unsatisfactory performance.

b. Not later than the third workday of the month following the surveillance, the COR initiates the CDR and sends it, with the checklist recording the unacceptable performance, to the Contracting Officer. (The COR checks the Contractor's performance and documents any non-compliance. But only the Contracting Officer may take formal action against the Contractor for unsatisfactory performance.) The Contracting Officer will evaluate the CDR and, if appropriate, sign and send it to the Contractor.

c. The Contractor shall reply in writing, giving the reason(s) for unsatisfactory performance, the corrective action(s) to be taken to prevent recurrence, and the completion date of the corrective action(s).

d. When completed and signed, the CDR, along with the surveillance checklist and any other appropriate forms, reports, etc., becomes the documentation supporting payment, nonpayment, or other necessary action.

e. When a CDR is issued for a specific service, the Contracting Officer reduces the month's payment by an amount up to the percentages indicated in the Performance Requirements Summary. Since the Contractor is required (under the INSPECTION OF SERVICES Clause) to maintain an effective inspection system, the Contractor shall be presumed to have actual knowledge of work not performed, and written notice will not be a prerequisite to withholding payment for unperformed services. Payment reductions will not be delayed until the Contractor responds to the CDR.

f. If the Contractor does not achieve satisfactory performance in the specific service by the end of the next month, the Contracting Officer issues another CDR and reduces payment to the Contractor by the appropriate amount. When the Contractor's performance is unsatisfactory and a formal action is indicated, the COR and the Contract Administrator meet to determine what action is appropriate for the specific circumstances.

g. If a decision is reached not to take a monetary reduction, the reasons are documented. The Contracting Officer must indicate agreement with the decision by signing the CDR or other decision documentation.

7. OTHER SURVEILLANCE METHODS

For areas not surveilled by sampling, the Government reserves the right to use the Inspection of Services Clause in conjunction with the Statement of Work (see Section E). There are some contractual requirements of a general nature that do not properly fit under the random sampling concept. These are surveilled by customer complaint or by checklists (daily, monthly, etc.). Services surveilled by methods other than sampling shall have the surveillance results documented on the appropriate surveillance activity checklist or customer complaint form. The recording of defectives or unacceptable services are the same as described above.

8. SURVEILLANCE BY CUSTOMER COMPLAINT

a. Certain contract requirements can best be monitored by the individual or activity receiving the service, or customer complaints may be used to supplement other surveillance information.

b. At the start of the contract, the COR shall instruct customers responsible for submitting complaints on the proper method to complete the customer complaint record (Atch 1) and on the requirements of the contract that pertain to them. Normally, each customer complaint is brought, either in person or by telephone, to the person checking contract performance (the COR). Customers shall be required to submit the form during the daily shift when the discrepancy was discovered. A written copy of the specific contract requirements will be provided to the individual or activity supervisor. Several complaint forms shall be provided the customer at the end of the instruction period.

c. Once each quarter, the COR will contact each customer involved to assure that there is an understanding of the contract requirements by all appropriate personnel and that there are sufficient forms available. The contact shall be scheduled on the COTR schedule.

d. When a complaint is received, the COR will investigate, validate the complaint, and notify the Contractor of the defect.

e. The COR will retain and file the complaint form. At the end of each month all validated complaints will be counted to determine if performance is satisfactory or unsatisfactory based on the criteria in the AQL column of the Performance Requirements Summary.

9. REDUCED INSPECTIONS

a. When the Contractor's quality control plan works, good performance results. If the COR's surveillance shows consistently good performance, the amount of surveillance can be decreased.

b. Inspection can be reduced when the following conditions have been met for any required service: (1) The preceding four lots (that is, the last four months) have been acceptable.

(2) The number of defects in each of the preceding four lots is 50 percent or less of the acceptance number. For example, with an Acceptable Quality Level (AQL) of 6.5 percent and a sample size of 32, the acceptance number is 5. If two or less defects were found in each of the last four lots, reduced inspection could be used.

(3) The normal sample size was used in the last inspection. (4) The Contracting Officer approves of reduced inspections.

c. Reduced inspections decrease the sample size. In addition, the acceptance and rejection numbers change. See OFPP Pamphlet 4 for proper procedures.

d. Inspection will be returned to normal the next month under the following conditions:

(1) When the number of defects exceeds the acceptance number under the reduced sampling or, (2) The appropriate Assistant Director and the Contracting Officer deem it necessary to return to normal inspection.

e. If during the first month of the return to normal inspection the number of defects found is again 50 percent or less of the acceptance level, a return to reduced inspection may be done the next month. If the number of defects found exceeds 50 percent, then normal sampling must be accomplished until four consecutive months of 50 percent or less of acceptance level defects are found.

10. PAYMENT REDUCTIONS FOR UNSATISFACTORY PERFORMANCE

a. Each month, Contractor performance will be compared to contract standards and acceptable quality levels using the performance requirements summary. Through the Inspection of Services clause, the Government can deduct from a Contractor's payment an amount equal to the services not provided.

b. If performance of required service is unsatisfactory, and the unsatisfactory performance is clearly the fault of the Contractor, an amount of money up to the percentage stated in column eight of the Performance Requirement Summary may be deducted from the monthly invoice.

(1) As an example, suppose the Delivery Order showed the monthly contract price for services as shown below. The percentage cost of the required service is found by looking at the Performance Requirements Summary. In the example below the percentage cost of quality completed work is 10 percent. This is multiplied by $100,000 to obtain the maximum amount of pay.

(2) If completed work was unsatisfactory during the month (that is, did not meet performance values), and the percent of the sample found good was 80 percent, $8,000 would be paid in lieu of the $10,000 payment normally due the Contractor.

(3) The payment amount is reduced because the Contractor failed to provide reliable, uniform services within the assigned performance requirements. Although some completed work may have met the standard during the month, the acceptable quality level was not met and at least 20 percent of the observations were defective.

Hence, the total quality performance requirement has not been achieved; as a consequence, the service received is unsatisfactory.

c. Example of unsatisfactory performance sampling deduction:

If: Quality of completed work is unsatisfactory (exceeded AQL of 6.5 percent) and: Contract price is $100,000 for this month

$ 10,000

d. For areas not surveilled by sampling the percentage of the monthly contract price indicated in the eighth column of the Performance Requirements Summary will be reduced as above, except the defects are divided by the total lot, which is described in the sixth column.

Example:

If: Contractor personnel in violation of safety requirements (zero defects allowed)

(1) When areas are not surveilled by sampling, a defect will not be counted when the service can be reperformed, but the Contractor may be liable for the Government's reinspection costs.

NOTE: For these areas that are surveilled on a less than monthly basis, the deduction will be taken from the month's invoice when that area was reviewed and found unsatisfactory.

e. In the case of nonperformed work, the Government shall deduct from the Contractor's invoice all billings associated with such nonperformed work at the rates set out in Section B or required by other provisions of this contract. (All fractions of half hours shall count as a full half hour.) To compensate the Government for administrative costs and other expenses resulting from the nonperformance, the Government will also deduct an additional ten (10) percent of the rate set forth in Section B for such work.

f. The taking of deductions shall not be deemed to waive or limit any right of the Government under the DEFAULT & TERMINATION CLAUSES included in Section I, or the INSPECTION OF SERVICES clause, Section E. Depending on the Contractor's overall performance (for example, repeated instances of nonperformance or unsatisfactory performance), the Government may issue a Cure Notice or a Show Cause letter or terminate the contract.

11. REVISIONS TO QASP

Revisions to this surveillance plan are the joint responsibility of the COR and the Contracting Officer.

12. SURVEILLANCE TERMS

a. Acceptable Quality Level (AQL) - The allowable leeway from a standard that can occur before the Government will reject the specific service. The number of defects in a lot (or the maximum percent defective in a lot) that, for purposes of sampling, may occur before the Government will effect the price computation system in accordance with the Performance Requirements Summary and the INSPECTION OF SERVICES Clause. An AQL does not allow the Contractor to knowingly offer defective service, but implies that the Government recognizes that defective performance sometimes happens unintentionally. As long as the percent of defective performance does not exceed the AQL, the service will not be rejected by the Government. The Contractor, however, must reperform the defective service when possible. The AQL limits reduced payment to circumstances in which defective performance results in a measurable reduction in the value of services rendered.

b. Contract Discrepancy Report (CDR) - Form initiated by the COR when any service is judged unsatisfactory. A formal, written documentation of Contractor non-conformance or lack of performance of contract work.

c. COR/Inspector Evaluation Schedule - The work sheet that shows what inspections are to be performed on which days of the week/month. It is determined by the COR/Inspector before the start of each inspection period and provided to the Contract Administrator only. It is never revealed to the Contractor.

d. Contractor - Both the prime Contractor and any subcontractors. The Contractor shall be responsible for all compliance with the provisions of this contract, including those services provided by the Contractor's subcontractors.

e. Contractor Representative - A supervisor or manager assigned in accordance with CONTRACTOR CONTRACT MANAGER Clause in Section H.

f. Cure Notice - A dated notice stating the Contractor's failure to comply with the specifications and a deadline to comply with the stated specification. Usually, ten days is the stated time to conform with the notice or face default.

g. Customer Complaints - One of the criteria used to monitor the Contractor's performance.

h. Defective Service - A unit of service which contains one or more defects or nonconformance with specified requirements.

Officer.

i. Delivery Order - A formal order for services placed against this contract and signed by the Contracting

j. Facility - A separate individual building, structure, or other item of real property improvement, each item of which is subject to separate reporting and recording.

k. Lot - The total number of product or service outputs in a surveillance period from which a sample is to be drawn and inspected to determine performance in accordance with the standard, as defined in the AQL column of the Performance Requirements Summary.

l. Percent of Sample Found Defective - Determined by dividing the number of defects by the sample size when the reject number has been equaled or exceeded. The resulting number is used to make an equitable reduction to the contract price for non-performance by the Contractor.

m. Performance Requirements Summary (PRS) - A condensed listing of the tasks, standards, AQLs, surveillance methods, and relative value of the services or products required by the PWS. The PRS identifies the key service outputs of the contract that will be evaluated by the Government to assure contract performance standards are met by the Contractor. The PRS usually appears as Technical Exhibit 1 of the PWS.

n. Quality Assurance (QA) - The actions taken by the Government to assure services meet the requirements of the Performance Work Statement. The procedures used by the Government to inspect the Contractor's Quality Control program and provide control over the quality of services received to ensure satisfactory performance.

o. Quality Assurance Surveillance Plan (QASP) - An organized written document prepared and used by the Government for Quality Assurance surveillance of the Contractor's performance. The document contains the Government's specific methods, sampling guides, checklists, decision tables, etc. used in determining whether the Contractor provided service meets quantity, quality, timeliness, effectiveness, and/or total cost standards.

p. Quality Control (QC) - The Contractor's inspection system which covers all the services to be performed under this contract (i.e., his method for identifying deficiencies in the quality of services performed before the level of performance becomes unacceptable). The actions that a Contractor takes to control the production of products or services so that they will meet the requirements stated in the contract.

q. Random sampling - A sampling method in which each service output in a lot has an equal chance of being selected for inspection. By this method of surveillance, a few individual items, selected at random, are examined and a conclusion drawn about the entire lot.

r. Receiving Report - The receiving document, initiated by the Contractor or Contractor employee(s), indicating that services have been performed.

s. Recurring Services - Those services which are identified in this contract as being performed on a recurring, periodic or standing basis.

t. Rework - Work which, in the judgment of the Contracting Officer or the COR, is not of an acceptable quality level, and must be corrected or reperformed at no additional cost to the Government.

u. Sample - One or more service outputs drawn from a lot. The number of outputs in the sample is the sample size.

v. Sampling - The generic term for various methods of selecting service outputs to be inspected under a Quality Assurance system.

w. Sampling Guide - The part of the surveillance plan which contains all the information needed to perform a random sample.

x. Surveillance Activity Checklist - The work sheets used to record the results of inspections done by methods other than random sampling. (See Tally Checklist.)

y. Tally Checklist - The work sheets used to record the results of random sample inspections.

z. Using Activity - That agency/division requesting services that would be responsible for payment.

13. CONTRACT ADMINISTRATOR'S SURVEILLANCE PLAN. (Filed separately)

CUSTOMER COMPLAINT RECORD

Nature of Complaint: Date: Time:

Source of Complaint: Date & Time Contractor Notified: Organization:

Name of Person:

Contract Requirement: Date: Time:

Is complaint valid? YES NO

Corrective action by Contractor:

Is corrective action adequate: YES NO

Received & validated by:

COR:

Facilities and Operations Support Services QASP-Attachment Page 1 of 1

QASP-Attachment 2

FTC-ADM-74 (9/90)

COR/INSPECTOR QUALITY ASSURANCE SCHEDULE

DAYS

DAY

Week Total

Month Total

LOT SIZE NORMAL SAMPLE SIZE REDUCED SAMPLE SIZE

QASP-Attachment 3

ACCEPTABLE QUALITY LEVELS (NORMAL INSPECTIONS)

Ac-Accept Re-Reject

Facilities Operations and Support Services QASP-Attachment 4

FTC-ADM-67 (5/90)

CONTRACT DISCREPANCY REPORT

6. DISCREPANCY OR PROBLEM: (Describe in Detail: include reference to SOW/Directive:attach continuation sheet if necessary.)

9. CONTRACTOR RESPONSE AS TO CAUSE, CORRECTIVE ACTION AND ACTIONS TO PREVENT RECURRENCE: ATTACH CONTINUATION SHEET IF NECESSARY. (Cite applicable Q.C.program procedures or new Q.C. program procedures.)

11. GOVERNMENT EVALUATION (Acceptance, partial acceptance, rejection, attach continuation sheet if necessary.)

12. GOVERNMENT ACTIONS (Payment deduction, cure notice, show cause, other)

13 CLOSE OUT

CONTRACTOR NOTIFIED

COR

CONTRACTING

OFFICER

ORIGINAL - CONTRACTOR COPY - COR COPY - PROCUREMENT

Facilities and Operations Support Services QASP-Attachment 5

SAMPLING GUIDE

SERVICE REQUIREMENT: _(From Column 1 of the PRS)_

1. Acceptable Quality Level (AQL): % (From AQL Column of the PRS)

2. Lot Size

(From Lot Size Column of the PRS)

3. Sample Size: (From Atch 3, Sample Size Chart)

4. Sampling Procedures: (Explain here in detail how you will select the samples)

5. Inspection Procedures: (Detail how you will inspect after the samples are drawn)

6. Performance Criteria: (From Atch 4, Acceptable Quality Level Chart)

a. Performance is acceptable when or less defects are discovered per month.

b. Performance is unacceptable when or more defects are discovered per month.

QASP–Attachment 6

TALLY CHECKLIST

WEEK OF:

DATE OF

R.S. NO./

INSPECTION

STANDARD

FINDINGS

INITIAL

student SUPI

QASP-

PaQe 1 of

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