Exhibit 4 Performance Plan.doc

FA4528-11-R-0001

EXHIBIT 4

PERFORMANCE PLAN

FOR

CONTRACTOR OPERATED CIVIL ENGINEER SUPPLY STORE

(COCESS)

At Minot AFB North Dakota

1 February 2011

Coordination and Review: See Signature Page – 14

TABLE OF CONTENTS

1.0 PURPOSE………………………………………………………………….…..…. 3

2.0 MULTI-FUNCTIONAL TEAM MEMBERS & RESPONSIBILITIES.…….. 3

3.0 SERVICE SUMMARY (SS) & METHOD OF ASSESSMENT………………… 4-5

4.0 UNACCEPTABLE PERFORMANCE REMEDIES……………………………. 6

5.0 CERTIFICATION/ACCEPTANCE OF SERVICES……………………………..6

6.0 PERFORMANCE MANAGEMENT…………….…………………………….…. 6-8

7.0 CONTRACTOR’S QUALITY CONTROL PLAN……………………………

8.0 MANAGEMENT AND OVERSIGHT OF ACQUISITION OF SERVICE

PROCESS (MOASP )……………………………………………………..………... 8-9

APPENDIX A CUSTOMER COMPLAINT RECORD ……………………………… 10

APPENDIX B

SERVICE SUMMARY ………………………..………………………... 11

APPENDIX C

SURVEILLANCE ACTIVITY CHECKLIST ………………………..12

APPENDIX D

QUALITY ASSURANCE SCHEDULE ……………………………….13

MULTI-FUNCTIONAL TEAM SIGNATURE PAGE.………………………..………….14

1.0 PURPOSE

1.1 This performance plan has been developed to provide an effective and systematic method to evaluate contractor provided services as required by the terms and conditions of the contract. This performance plan implements the requirements of Air Force Instruction 63-124, Performance Based Service Acquisitions (PBSA), with respect to the Government’s quality assurance requirements.

1.2 This performance plan is based on the premise that the Contractor is responsible for contract management and quality control actions necessary to meet the terms of the contract, not the Government. The Government’s objective in having the service provided is to survey activities to provide sufficient assurance to justify acceptance/rejection of the Contractor’s COCESS. Based on quality data trends, the frequency and methods of Government surveillance may be changed. Failure to provide quality services could result in termination of the contract and other monetary repercussions. Results that the multi-functional team is striving to achieve in managing the acquisition is to assure the Contractor obtains an acceptable level of performance, meets the stated qualifications, and are available to provide services according to Air Force needs. A contract to provide the service is the best means of achieving this objective and results.

1.3 The Contractor is encouraged to manage costs and resources effectively while meeting government expectations. The Quality Assurance Personnel (QAP) shall inspect by watching actual task performance, physically checking an attribute of the completed task, checking a management information report, investigating customer complaints, conferring with facility managers, or otherwise inspecting the task or its results to determine whether or not performance meets the standards contained in this Performance Plan. The QAP will use the contractor’s work schedule or modified version thereof, to record surveillance results. This performance plan provides the government with an objective and recordable means for reducing the Contractor’s profits for repeated non-performance. Conversely, Contractors have an incentive to utilize their resources in a cost effective manner to increase profit.

1.4 This performance plan describes the method(s) used to evaluate contractor provided services in meeting performance objectives and performance thresholds. The QAP will use various inspection assessment methods to evaluate the contractor’s performance. The assessment procedures identified in this performance plan, with active application of the contractor’s quality control procedures are intended to ensure acceptable contractor performance.

1.5 The role of Government quality assurance is to ensure contract standards are achieved. In conducting assessments, QAP’s are to be objective, fair, and consistent in evaluating contractor performance against the performance standards.

1.6 This performance plan is a living document and shall be revised or modified by members of the multi-functional team as circumstances warrant, throughout the life of the contract, to ensure adequate oversight of contractor performance is maintained.

2.0 MULTI-FUNCTIONAL TEAM MEMBERS AND RESPONSIBILITES

(Reference AFI 63-124, paragraph 2.8 for responsibilities)

Contracting Officer (CO)

Contract Administrator (CA)

Quality Assurance Program Coordinator (QAPC)

Functional Commander/Director (FC/FD)

Quality Assurance Personnel (QAP)

Contractor (For partnering purposes only, the contractor has a limited role.)

3.0 Service Summary (SS): The contract service requirements are summarized in performance objectives that relate directly to mission essential items. The performance threshold briefly describes the minimally acceptable levels of service required for each requirement. The SS and the contractor’s Quality Control Plan provide information on contract requirements, the expected level of contractor performance and the expected method of government surveillance and confirmation of services provided. These thresholds are critical to mission success. Procedures as set forth in the FAR 52.212-4 (a), Contract Terms and Conditions - Commercial Items, Inspection/Acceptance, will be used to remedy all deficiencies.

The SS cites the key performance objectives and the associated thresholds that must be attained, over which the Government shall exercise surveillance. The absence of any contract requirement from the SS shall not detract from its enforceability nor limit the rights or remedies of the Government under any other provision of the contract.

Threshold Method of

Surveillance

(Daily)

Monthly Compilation

Note*: For additional references, refer to items with - (Relates to performance objective SS #X) Subparagraphs are included in any reference to main paragraph heading.

3.1 Assessment Schedule.

3.1.1 The QAP will develop a monthly surveillance schedule based on this performance plan’s requirements. A locally devised form may be used. The schedule shall be completed no later than 7 calendar days before the beginning of the period it covers. Copies of the surveillance schedule shall be provided to the FD/FC and the Contracting Officer, before the start of the surveillance period. Surveillance schedules, when completed, shall be marked “For Official Use Only”, and shall not be shown to the contractor.

3.1.2 Changes to the surveillance schedule shall be posted promptly. Copies of the changed schedule shall be sent to the FD/FC and the Contracting Officer. The QAP shall document the reason(s) for changes of the surveillance schedule, and maintain the documentation in the QAP files with the corresponding changed surveillance schedule.

3.2 Assessment of Service Summary (SS) Items.

3.2.1 It is essential for the QAP’s to conduct surveillance in accordance with the projected surveillance schedule for an effective quality assurance program. Mission requirements may require deviations from the surveillance schedule. Surveillance should be performed as close to the schedule as is practicable. The QAP shall document the surveillance as it is conducted.

3.2.2 The QAP shall conduct surveillance of the contractor’s performance by determining whether or not the performance meets the standards contained in the contract, the SOW, and the SS items.

3.2.2.1 Quality Assurance. The government shall inspect and evaluate the contractor’s performance to ensure services are received in accordance with requirements set forth in this contract. The QAP shall inspect by watching actual task performance, physically checking an attribute of the completed task, checking a management information report, investigating customer complaints, conferring with facility managers, or otherwise inspecting the task or its results to determine whether or not performance meets the standards contained in the SOW. The QAP will use the contractor’s work schedule or modified version thereof, to record surveillance results. Results of the surveillance then become the official Air Force record of the Contractor’s performance. When a performance threshold has not been met or contractor performance has not been accomplished, the QAP will initiate and provide the Contracting Officer a Contract Discrepancy Report (CDR) for issuance to the contractor. The contractor shall respond to the CDR IAW instructions provided and return it to the Contracting Officer within 10 calendar days of receipt.

3.3 Surveillance Methods.

3.3.1 Periodic Surveillances. The QAP will review the daily log sheet to determine whether items are being delivered within the appropriate time frames for SS 2. This method is also used for SS 5 and requires the QAP to review the contractor’s quote for single items in excess of $2,500.00 and any approvals that may be necessary from contracting. Periodic surveillances will be conducted on a scheduled basis (daily or weekly) and may be adjusted, based on quality trends.

If the performance threshold is not attained for the performance objective of SS items 3 and 4 in any one month period the Contracting Officer may take action IAW Section 5 titled “Unacceptable Performance”.

3.3.2 Customer Complaint. The QAP will receive and investigate complaints. The QAP shall be responsible for initially validating customer complaints. The Contracting Officer shall make final determination of the customer complaint(s) in cases of disagreement with the QAP and the Contractor.

Exceeding the performance threshold for performance objective of SS-1, 7 and 8 in any one month period the Contracting Officer may take action IAQ Section 5 titled “Unacceptable Performance”.

3.3.3 One Hundred Percent Inspection. This method requires the QAP to review the Delinquent COCESS Item Sheet daily and to ensure required quarterly reports are submitted within ten days after the reporting period per SS items 3 and 4. If the performance threshold is not attained for the performance objective of SS items 3 and 4 in any one month period the Contracting Officer may take action IAW Section 5 titled “Unacceptable Performance”.

3.4 Periodic Progress Meetings. The multi-functional team shall conduct periodic progress meetings, not less than quarterly, to review the contractor’s performance. At these meetings the Contracting Officer will inform the contractor of how the Government views the contractor’s performance and the contractor will inform the Government of problems, if any, being experienced. The contractor will also notify the Contracting Officer, in writing, of any work being performed, if any, that the contractor considers over and above the requirements of the contract. Appropriate action shall be taken to resolve any outstanding issues.

4.0 REMEDIES FOR UNACCEPTABLE PERFORMANCE

4.1.1 In accordance with the contract Inspection of Services clause, if any of the services do not conform to contract requirements; the Government may require the Contractor to perform the services again in conformity with contract requirements, at no increase in contract amount. This includes but is not limited to termination of Contractor personnel and recruitment of substitute personnel that are equally qualified within established timeframes. When the defects in services cannot be corrected by re-performance, the Government may:

4.1.1.1 Require the Contractor to take necessary action to ensure that future performance conforms to contract requirements; and

4.1.1.2 Reduce the contract price to reflect the reduced value of the services performed. This may include a reduction in the number of paid hours to reflect the total non-performance period.

4.1.2 If the Contractor fails to promptly perform the services again or to take the necessary action to ensure future performance is in conformity with contract requirements, the Government may:

4.1.2.1 By contract or otherwise, perform the services and charge to the Contractor any cost incurred by the Government that is directly related to the performance of such service; or

4.1.2.2 Decrease the invoice as stated in the PWS related to performance; or

4.1.2.3 Terminate the contract.

5.0 CERTIFICATION/ACCEPTANCE OF SERVICES

5.1 The QAP will certify receipt of contractor services via the Wide Area Workflow (WAWF) website. Certification of services shall be accomplished on the first workday following the completion of the contract payment period, to avoid payment of interest penalties.

5.2 QAPs are responsible for obtaining, scheduling, and completing WAWF training from the base Accounting and Finance Office.

6.0 PERFORMANCE MANAGEMENT This section identifies the use of performance measurement information to effectively obtain a positive change in organizational culture, systems, and processes, by helping to set agreed upon performance goals and sharing results of performance in pursuing those goals.

6.1 Market Research. On-going market research is conducted to ensure the contract requirements remain current with commercial standards, practices and industry performance evaluation methods.

6.2 QAP Records Review. The contract administrator will review the QAP’s quality assurance files no less than quarterly to ensure completeness and to ensure surveillance is properly conducted and documented, and contractor performance is within acceptable levels. This review will be documented and acknowledged by the CO and QAPC. As a minimum, the file will contain the following:

6.2.1 A copy of the contract, including delivery orders and modifications

6.2.2 Government Statement of Work (SOW)

6.2.3 Nonconformance Reports (Corrective Action Report)

6.2.4 Government Performance Plan

6.2.5 Contractor Quality Control Plan (QCP)

6.2.6 Contract-related correspondence

6.2.7 Surveillance Schedules

6.2.8 Surveillance Records, Customer Complaint Record

6.2.9 QAP Appointment Letters

6.2.10 QAP Phase I and Phase II Training Documentation

6.2.11 QAP Delegation of Duties Letter from the Contracting Officer

6.2.12 Receiving Reports/Acceptance of Services

6.3 Performance Feedback. On a quarterly basis, the QAP will complete a narrative summary of contractor performance and forward it to the CO that includes the following assessment elements. The QAP will also keep the FC informed of all performance assessments. This information is strictly a tool to support annual Contractor ratings in CPARS and provide a snapshot view of contractor’s performance.

Performance

Element Description

6.3.1 Performance Ratings. Contractor ratings and criteria are described below:

Performance

Rating Criteria

7.0 CONTRACTOR’S QUALITY CONTROL PLAN

7.1 CONTRACTOR QUALITY CONTROL PLAN (QCP). The contractor shall develop and maintain a quality control program to ensure the COCESS operations are performed in accordance with commonly accepted commercial practices and services identified in this Performance Plan. The contractor shall develop and implement procedures to identify, prevent, and ensure non-performance and continual repeat of defective service does not occur. A written Quality Control Plan shall be submitted to the Contracting Officer for review, feedback and approval. The plan shall be submitted no later than the pre-performance conference. The plan shall specifically address the contractor’s strategy to provide quality workmanship, continual process improvement and for correcting deficiencies as required.

8.0 MANAGEMENT AND OVERSIGHT OF ACQUISITION OF SERVICE PROCESS (MOASP)

8.1 Assumption of Workload Review. All services acquisitions with a value in excess of the Simplified Acquisition Threshold (SAT) will be reviewed by the appropriate designated official within 30 days of the contractor’s full assumption of contract workload (for example, end of transition, phase-in, or similar event). The purpose of the review is to determine if the contractor successfully completed transition, is fully operational, and is within other performance parameters required by the contract. The designated official for this contract, the Contracting Squadron Commander or DBO shall conduct and document the assumption of workload review and report any negative information concerning contract execution.

8.2 Annual Performance Review. All services with a value in excess of the Simplified Acquisition Threshold (SAT) will be reviewed annually. This review is to be conducted not later than 30 days prior to issuing the notification of the Government’s intent to fund the follow-on year. The designated official for this contract, the Contracting Squadron Commander or DBO shall conduct and document the assumption of workload review and report any negative variations in cost, schedule and/or other significant performance measures required by the contract. If significant variations exist, include an explanation of the causes for the variance and an assessment of the contractor’s corrective action plan.

8.3 Any significant changes in anticipated cost/price, schedule, or performance expectations are subject to a special review at the direction of the designated official.

8.4 KEYS The Contractor shall establish and implement methods of making sure all keys/combinations issued to the Contractor by the Government are not lost or misplaced and are not used by unauthorized persons. The Contractor shall not duplicate any keys issued by the Government. The Contractor shall immediately report to the QAP or CO any occurrences of lost or duplicated keys. In the event keys, other than master keys, are lost or duplicated, the Contractor may be required, upon written direction of the CO, to re-key or replace the affected lock or locks without cost to the Government. Reimbursement shall be accomplished by deducting the cost of such from the monthly payment due the Contractor. In the event a master key is lost or duplicated, the government shall replace all locks and keys for that system, and the total cost will be deducted from the monthly payment due the Contractor.

Appendix A – Customer Complaint Record

SOURCE OF COMPLAINT

ORGANIZATION

BUILDING NUMBER

INDIVIDUAL

PHONE NUMBER

NATURE OF COMPLAINT

CONTRACT REFERENCE

VALIDATION

DATE/TIME CONTRACTOR INFORMED OF COMPLAINT

ACTION TAKEN BY CONTRACTOR

RECEIVED/VALIDATED BY

Customer Complaint Record Template, Feb 05 (SAF/AQCP)

COMPLAINANT – 1

Appendix B – Service Summary

Threshold Method of

Surveillance

(Daily)

Appendix C – Surveillance Activity Checklist

FA4528-11-D-XXXX

(SDS-1)

Provide Quality Customer Service in store and online Customer Complaint

(SDS-2)

Provide Adequate Store Stock Items for Immediate Issue/Purchase Periodic Inspection (Daily)

(SDS-3)

Provide on-time delivery within original ADD 100% Inspection

(SDS-4)

Submit Accurate Reports and Required Documentation On Time 100% Inspection

(SDS-5)

Sell all Merchandise at Fair and Reasonable Prices 100% Inspection

(Weekly)

(SDS-6)

Provide Merchandise as Specified or a Mutually Agreed-to-Substitute 100% Inspection

(SDS-7)

All Features and Functions of the On-line System Provide the Required Results Customer Complaint

(SDS-8)

Regulatory Compliance with Environmental, Safety, and Health Requirements Customer Complaint Periodic Inspection (Weekly)

(SDS-9)

Deliver Merchandise to Material Control Warehouse or Other Designated Area 100% Inspection

Appendix D – Quality Assurance Schedule

QUALITY ASSURANCE SCHEDULE

CONTRACT NO:

FA4528-11-D-XXXX

TOTAL

(SDS-1)

Provide quality customer service in store and online

(SDS-2)

Provide adequate store stock items for immediate issue/purchase

(SDS-3)

Provide on-time delivery within original ADD

(SDS-4)

Submit accurate reports and required documen- tion on time

(SDS-5)

Sell all merchan- dise at fair and reasonable prices

(SDS-6)

Provide merchan-dise as specified or mutually agreed-to-substitute

(SDS-7)

All features and functions of the on-line system provid-ing the required results

(SDS-8) Regulatory compliance with environmental, safety, and health requirements

(SDS-9)

Deliver merchan-dise to Material Control Ware-house or other designated area

MULTI-FUNCTIONAL TEAM

SIGNATURE PAGE

Contracting Officer

Contract Administrator

Quality Assurance Program Coordinator (QAPC)

Functional Director (FD)

Quality Assurance Personnel (Primary)

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