QASP3MAY123PGS.docx

ATTACHMENT 3

Quality Assurance Surveillance Plan (QASP)

FOR

Repair of TF33 2nd 3rd & 4th Stage Low Speed Turbine Blades 03 May 2012

76 PMXG/OBD-Propulsion Business Area Flight Oklahoma Air Logistics Center Tinker Air Force Base, Oklahoma

Objective: The contractor shall provide all labor, tools, equipment, test equipment, material, parts, quality control, transportation, inspection manuals, personal protective equipment and clothing including reflective clothing (belt, vest, etc), hearing and eye protection including prescription safety glasses, safety harnesses, fall protection equipment, lifting equipment and any incidentals necessary to provide repair services of the 76 Maintenance Wing (MXW) government owned TF33 2nd, 3rd and 4th Stage Turbine Blades.

1.1. In addition to the services described in the Performance Work Statement (PWS) the contractor is expected to be a partner with the base community in continuously improving the quality of programs and services offered to customers. This QASP has been developed to evaluate contractor actions while implementing the PWS.

1.2. It is designed to provide an effective surveillance method of monitoring contractor performance for each item listed objective on the Service Summary (SS) in the PWS. The QASP provides a systematic method to evaluate the services the contractor is required to furnish. 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 role of the Contracting Officer Representative (COR) is to ensure contract standards are achieved.

2. Quality Control: (If Applicable) The Quality Control Program is the driver for service quality. The contractor shall develop a comprehensive program of inspections and monitoring actions. The first major step to ensuring a “self-correcting” contract is to ensure that the quality control program, approved at the beginning of the contract, provides the measures needed to lead the contractor to success. Once when the quality control program is approved, careful application of the process and standards presented in the remainder of this document will ensure a robust quality assurance program.

3. Responsibilities:

3.1. Goals of the Multi-Functional Team: The Multi-Functional Team (MFT) goals are to manage this contract and to provide an avenue to collectively work together to create a strong working relationship between the using agency, contracting and the contractor and provide the highest level of contract performance and customer service.

3.2. Multi-Functional Team Members and their Responsibilities: The membership, goals and responsibilities of the MFT are outlined below, upon award of the contract; the contractor shall become a member of this team.

3.3 Procurement Contracting Officer (PCO) Responsibilities:

1. Advise the MFT on Surveillance Plan development.

2. Appoints a Contracting Officer Representative (COR) via a COR Designation Memorandum, indicating their areas of responsibilities and limitation of authority and ensures that the COR, Contractor and Quality Assurance Program Coordinator (QAPC) are notified in writing of such.

3. Provides Contract Specific Training for any COR appointed by the PCO.

4. Maintains suitable records reflecting decisions regarding the acceptability of the requirements as well as actions to correct defects.

5. Requests re-performance and/or reduction of price of contract when services are not performed or do not meet contract requirements.

6. Determines that the amount withheld constitutes a reasonable estimate of the Contractor's potential liability.

7. Ensures that the withholdings represent an amount commensurate with the reasonable value of such services.

8. Ensures past performance inputs are prepared documenting any performance issues.

9. Includes in the contract file documentation identifying nonperformance and actions taken.

10. Keeps communication lines open with the Contractor regarding performance issues.

11. Terminates the COR Designation in writing, when appropriate, and forwards copies of COR Termination to the COR, COR Supervisor and QAPC and notifies the Contractor..

12. Participates as a member of the MFT.

3.4 COR Responsibilities:

1. Ensures supplies or services rendered by Contractor meet contract requirements.

2. Notifies the PCO/ACO and the Contractor of any performance deficiencies in writing or by e-mail.

3. Assists with contract/order closeout.

4. Ensures discrepancy reports are accurate and reported properly.

5. Completes DoD Standard COR training and the Contract Specific Training prior to contract start date and/or Refresher Training IAW the DOD standard for certification of a COR.

6. Identifies areas that warrant a change in assessment method, frequency, or performance threshold and provides suggestions about the surveillance plan to the PCO.

7. Maintains accurate documentation of Contractor assessment activities as required by the surveillance plan and reports the results of Contractor assessment activities to the ACO/PCO.

8. Works with the Contractor and the PCO/ACO to resolve issues.

9. Maintains a file* in accordance with (IAW) the Surveillance Plan and requests PCO/ACO disposition at the completion of the contract or termination of COR appointment (if applicable).

10. Submits all requests for corrective action to the PCO/ACO.

11. Inspects and accepts Contractor services at the completion of each contract payment period, usually monthly. The COR will certify services actually received, unless the PCO/ACO retains the authority for acceptance.

12. Participates as a member of the MFT.

3.5 Quality Assurance Program Coordinator (QAPC) Responsibilities:

1. Will assist the Contracting Officer and/or Contracting Officer Designee in providing Contract Specific Training per paragraphs 1.4.1 – 1.4.6 of AFFARS MP 5301.602-2(d) and/or Refresher Training regardless of provider.

2. Will perform training for COR Management on the use of the Contracting Officer Representative Tracking (CORT) Tool, upon request.

3. Supports the MFT in the development of contract requirements specifically to ensure that requirements are clearly stated and enforceable.

4. Offers advice on development for the Service Summary and Surveillance Plan.

5. Participates as a member of the MFT.

3.6 Contracting Officer Representative (COR) Management (i.e. Supervisor) Responsibilities:

1. Upon request from PCO, prepares COR nomination package

2. Ensure prospective COR understands importance of performing their designated functions.

3. Ensure the COR will be afforded the necessary resources (time, supplies, equipment

4. And opportunity) to perform their designated functions.

5. Ensure that performance of the designated functions will be addressed as part of the

6. COR’s annual performance appraisal.

7. Solicit input on performance of COR duties from the PCO.

8. Ensure COR completes required training prior to award or prior to their designation as

9. A COR if appointed after contract award.

10. Identifies mission essential services (i.e. Functional Commander only responsibility) Participates as a member of the MFT.

3.7 DCMA COR Responsibilities:

1. Ensures supplies or services rendered by Contractor meet contract requirements.

2. Identifies areas that warrant a change in assessment method, frequency, or performance threshold and provides suggestions about the performance plan to PCO.

3. Maintains accurate documentation of Contractor assessment activities as required by the performance plan and reports the results of Contractor assessment activities to the ACO/PCO.

4. Serves as primary coordinator for Contract Administrator, ACO & PCO.

5. Submits all requests for corrective action to the PCO/ACO.

6. Inspects and accepts Contractor services at the completion of each contract payment period, usually monthly. The COR will certify services actually received.

7. Participates as a member of the MFT.

3.8. DCMA Industrial Specialist (IS) Responsibilities:

1. Assists PCO/ACO in determination of what portion of the contract has been performed.

2. Notifies the PCO/ACO and the Contractor of any performance deficiencies in writing or by e-mail.

3. Maintains a contract file in accordance with the Performance Plan and request PCO/ACO disposition at the completion of the contract.

4. Participates as a member of the MFT.

3.9. Defense Contract Management Agency (DCMA):

1. Performs contract administration as defined in Federal Acquisition Regulation (FAR) Part 42 and DCMA Guidebook as needed and as authorized by the PCO.

2. Performs inspections and acceptance on all Contract Line Items (CLINs) that are inspection/acceptance at origin IAW the FAR clause and the DCMA Guidebook.

3. Initiates and monitors corrective actions given to the Contractor during the performance of the contract.

4. Keeps PCO informed of the corrective actions that pertain to the contract.

5. Notifies, when necessary, the PCO of any potential delays and any Contractor performance that poses risks to the completion and quality of the contract.

6. Participates as member of the MFT.

Performance Assessment.

The following Service Summary Guides reflect the performance evaluation required by the PWS.

4. Surveillance of SS Items: All tasks required under the PWS will be inspected in accordance with methods of surveillance and surveillance procedures.

Service Summary:

The Contractor shall prepare a report within 30 Calendar days after entering MRB pool detailing the non-conformance to include PN, NSN, and Serial Number (SN).

A “Certificate of Conformance” shall be provided by the Contractor to the COR for each part repaired.

PWS 1.5.1.1

1.5.1.3 1.5.1.10

SS-4

The Contractor shall provide the transportation information IAW Appendix B.

4.1. Procedures.

The government COR will periodically perform inspections to ensure Contractor compliance with the appropriate paragraphs of the PWS and will record the results of inspections, noting the date and time. If inspection indicates a performance threshold is not met, the COR will notify the Contractor and the contracting officer of the deficiency for correction. The Contractor shall be given a reasonable time after notification to correct the unacceptable performance if such correction is possible. The length of time allowed to correct the problem will depend upon the requirement and the deficiency, and the Contractor will be notified by the PCO of the time allowed for correction when the deficiency is reported to the Contractor. The COR shall not consider the services complete until all deficiencies have been corrected. Deficiencies not corrected or estimated dates of completion that are not acceptable to the COR will be forwarded to the PCO for action.

4.2. Methods of Surveillance. 1) Customer Complaint/Observation.

4.2.1 Customer Complaint.

Any customer observing unacceptable services, either incomplete or not performed, for any of the above performance objectives should immediately contact the COR. The COR must evaluate the complaints on a case-by-case basis. If any government action or lack of action caused unacceptable performance, the complaint is not valid. The COR will document the invalid complaint and keep for their records. If the complaint is not a result of any Government action, the procedures in 4.1 will be followed.

4.2.2 Customer Complaint Procedures.

The COR will furnish written instructions to each organization receiving the contractor’s service at the beginning of contract award. The COR will email or fax a copy of a completed and a blank Customer Complaint Record and instructions to the organization receiving the service, describing how to complete the customer complaint record. The instructions will include the name and phone number of the COR assigned to the contract. The record will be returned to the COR.

4.3. Standard. The Contractor must correct each discrepancy through reperformance. Recurring discrepancies are not permitted for any of the performance objectives. Recurring discrepancies during the reporting period which bring the performance threshold below the acceptable level will be recorded and reported to the PCO for appropriate action in accordance with FAR 52.212-4, Contract Terms and Conditions-Commercial Items (Oct 2008). Additionally if the same discrepancy(ies) occur repeatedly throughout different reporting periods, this will reflect upon the Contractor's performance. The COR will annotate the unacceptable performance and notify the PCO in order to address the problem areas with the Contractor.

4.3.1. COR Follow-up. Upon notification from the service provider that the defect has been corrected, the COR will re-inspect the area that caused the defect. The COR will verify corrective and preventative actions of the service provider to prevent recurrence. Defects will not be closed until the COR verifies that the actions taken will be sufficient to prevent recurrence.

4.4. Surveillance of Non-Service Summary Items. All other tasks required under the PWS may be inspected on a periodic basis by the COR at a frequency determined by the PCO/ACO.

4.5. Remedies for Non-Conformance. If inspections indicate unacceptable performance, the COR will notify the Contractor of the deficiencies for correction. The Contractor shall be given an appropriate time frame (depending on the discrepancy identified) after notification to correct the unacceptable performance. If deficiencies are not corrected within the required time frame, the COR should notify the PCO for action. If the Contractor disagrees with the noted discrepancy and an agreement cannot be reached, the PCO shall be notified for a final decision.

5. Performance Management

5.1 Market Research. Market research will be used as a tool throughout the life of the contract to remain current with the most efficient and effective assessment methods and techniques of the commercial marketplace.

5.2 MFT Meetings. Meetings will be scheduled as necessary. The MFT will manage the contract for the life of the contract. This team is a partnership between the government and the Contractor to ensure the best possible service is provided for the life of the contract.

5.2.1 Contract Performance Review.

All performance assessment data will be reviewed at these meetings. If performance improvement is necessary a plan of action will be created.

5.2.2 Contract Performance Improvements.

The goal of the MFT is to give all members a vested interest in maintaining the highest quality service to our customers and the ability to propose/initiate improvements. The success of the contract is a combined effort of all MFT members.

5.3 Contract Performance Assessment Reporting System (CPARS). CPARS will be updated at least annually documenting contractor performance for this specific contract. More frequent updates may be made as required to document a significant improvement or degradation of the level of contract performance. The Assessing Official (AO) or Assessing Official Representative (AO Rep) will be the COR and will prepare the CPAR. The contractor will have input prior to this CPAR being finalized. The contractor will select their personnel to serve as Contractor Representatives (CR) to review and comment on the CPAR. The CPAR will be sent to the Reviewing Official (RO) if there is significant disagreement on the CPAR's ratings between the AO and the CR or if the AO chooses to revise the assessment as a result of the CR's comments. The RO is a senior level manager who is at least one level above the AO as determined by the respective MAJOM/DRU procedures.

5.4 Disputes. Attempts will be made to resolve all disputes arising under this plan using the Alternate Dispute Resolution (ADR) as outlined in FAR 33.214 IAW FAR Clause 52.233-1. The objective is to increase the opportunity for mutually agreeable resolutions to disputes that are relatively inexpensive and expeditious. If no resolution can be made under ADR, the parties shall resort to the process set forth in the Disputes Clause FAR 52.233-1.

5.5. Surveillance Documentation Procedures:

5.5.1. Summary of Documentation Procedures: The government COR will perform inspections to ensure contractor compliance with the appropriate paragraphs of the PWS and will record the results of inspection, noting the date and time of inspection. If inspection indicates unacceptable performance, the COR will notify the contractor and the CO of the deficiencies for correction. The Contractor shall be given a reasonable time after notification to correct the unacceptable performance if such correction is possible. The length of time allowed to correct the problem will depend upon the requirement and the deficiency, and the Contractor will be notified by the CO of the time allowed for correction when the deficiency is reported to the Contractor. The COR will document minor contract discrepancy and observations on the PAR or Customer Complaint Form. When the deficiency is major, the COR will use a Corrective Action Report (CAR). At the discretion of the Contractor Performance Assessment Report (CPAR) Assessing Official, the CAR may be included in the CPAR (if applicable). The COR will not consider the services complete until all deficiencies have been corrected. Deficiencies not corrected or estimated dates of completion that are not acceptable to the COR will be forwarded to the CO for action.

Surveillance of Non-SS Items. The Government reserves the right to inspect and test all services required by the contract to the extent practicable at all times and places during the term of the contract in accordance with the contract inspection clause.

The COR will inspect and accept contractor services at the completion of each contract payment period, usually monthly. The COR will certify services

5.5.2. PAR, CAR, and CC Notification Procedures: Upon validation of the deficiency, the COR will email the applicable form to the contractor within one (1) working day. The COR will submit all PAR, CAR and CC forms to the ACO/CO, FC/FD, Chief COR, Customer and Contractor.

5.5.3. Remedies for Non-Conformance: If inspections indicate unacceptable performance, the COR will notify the ACO/CO and the Contractors POC of the deficiencies for correction. The contractor shall be given an appropriate time frame (depending on the discrepancy identified) after notification to correct the unacceptable performance. If deficiencies are not corrected within the required time frame, the COR should notify the CO for action. If the contractor disagrees with the noted discrepancy and an agreement cannot be reached, the CO shall be notified for a final decision.

5.5.4. Contractor Response Time: The contractor shall provide written response addressing the root cause, corrective action and preventive action(s). The contractor will be given 2 working days to answer a submitted CAR, PAR and CC.

5.5.5. Contractor Correction: The contractor will be allowed to correct a negative trend based on the complexity of the deficiency. The contractor will be asked the status of the negative PAR or CAR on a weekly basis.

5.5.6. COR Follow-up: Upon notification from the service provider that the defect has been corrected, the COR will re-inspect the area that caused the defect. The COR will verify corrective and preventative actions of the service provider to prevent recurrence. Defects will not be closed until the COR verifies that the actions taken will be sufficient to prevent recurrence

5.5.7. PAR Procedures: All Positive Trends and all Minor Deficiencies will be documented on a PAR form. The PAR form will be generated by the COR. When the COR identifies a minor finding, the COR will document the finding and notify the ACO/CO, FC/FD, Chief COR and Contractor. However, if the same minor finding is repeatedly identified within 3 months, it may be an indication that a systemic problem is occurring or has occurred because the Contractor has not taken proper steps to prevent recurrence.

5.5.8. CAR Procedures: All Major Findings will be documented by the COR on a CAR form and sent via email to the ACO/CO, FC/FD, Chief COR, Customer and Contractor. All Major Findings will be documented by the COR on a Corrective Action Report (CAR) and sent via email to the 76MXW/OBWK Chief QAE office. The Chief COR will review and approve all CAR reports and return the forms to the COR with the assigned Control Number. A CAR will be submitted by the COR if the following occurs.

1. Contractor fails to meet the Performance Threshold and the Minor Findings exceed the AQL.

1. Contractor fails to provide adequate corrective action to preclude reoccurrence of Government identified findings.

1. Contractor fails to provide corrective action to deficiencies identified by the contractor within a prescribed suspense period.

1. Contractor fails to adhere to security and/or safety regulations that results in a security or safety incident.

5.5.9. Customer Complaint Procedures: The COR will furnish written instructions to each organization receiving the contractor’s service at the beginning of contract award. The COR will email or fax a copy of a completed and a blank Customer Complaint Record and instructions to the organization receiving the service, describing how to complete the customer complaint record. The instructions will include the name and phone number of the COR assigned to the contract. The record will be returned to the COR.

5.5.10. Customer Complaint Validation: When a complaint is received, the COR will validate the complaint by checking the PWS and if necessary physically inspect the site. Upon validation the COR will then annotate the deficiency on a PAR Form and attach the CC to the PAR. The COR will forward the PAR and attached CC to the ACO/CO, Customer, and, Contractor. The COR will evaluate the complaint on a case-by case basis. If the deficiency requires immediate correction, a phone call to the Contractor may be necessary to ensure compliance. Any government action nor lack of action that caused the unacceptable performance, the complaint is not valid. ALL Major Deficiencies will be automatically annotated on a CAR Form.

5.5.11. Performance Threshold Procedures: The Performance Threshold on all contracts is stated in the following paragraph (a.) unless otherwise specified in the QASP.

(1.) The standard Performance Threshold is Three Minors of like nature within any Three Month period will result in the elevation to One Major finding and the submission of One CAR. In this case the CAR will define the current finding and reference the supporting CC’s.

If any of the following occurs the COR will submit a Major finding on a CAR form.

1. If the same discrepancy(s) occur repeatedly throughout different reporting periods, this will reflect upon the contractor's performance. The COR will annotate the unacceptable performance and notify the CO in order to address the problem areas with the contractor in a MFT meeting if applicable.

1. Failure to provide adequate corrective action to preclude reoccurrence of Government identified findings.

1. Failure to provide corrective action to deficiencies identified by the contractor within a prescribed suspense period.

1. Any failure to adhere to security and/or safety regulations that results in a security or safety incident.

6. Performance Management

6.1. Market Research: Market research will be used as a tool throughout the life of the contract to remain current with the most efficient and effective assessment methods and techniques of the commercial marketplace.

6.2. Multi-functional Team Meetings: The MFT will manage the contract for the life of the contract. This team will form a partnership between the government and the contractor to ensure the best possible service if provided for the life of the contract.

6.2.1. All performance assessment data will be reviewed at these meetings. If performance improvement is necessary a plan of action will be created. The MFT will continually review data and procedures to improve efficiency. The MFT will meet as a minimum annually or more often if necessary.

6.2.2. The goal of the MFT is to give all members, government and contractor, a vested interest in maintaining the highest quality service to our customers and the ability to propose/initiate improvements. The success of the contract is a combined effort and all MFT members.

6.3. (If applicable) Contract Performance Assessment Reporting System (CPARS): See PMAP dated September 8, 2010.

6.4. Disputes: Attempts will be made to resolve all disputes arising under this plan using the Alternate Dispute Resolution (ADR) as outlined in FAR 33.214 IAW FAR clause 52.233-1. The objective is to increase the opportunity mutually agreeable resolutions to disputes that are relatively inexpensive and expeditious. If no resolution can be made under ADR, the parties shall resort to the Disputes Clause 52.233-1.

6.5. Revisions to this QASP: Revisions to this QASP are the joint responsibility of the FD/FC, CO and COR. The COR reviews the PWS and QASP annually and will provide proposed changes through the FC/FD to the MFT for review. This is a living document that can be changed at any time.

6.6. Deviation of Format: The newest version of 63-124, dated 01 AUG 05, is effect. Paragraph 1.8 of AFI 63-124 allows the MFT to deviate from the PBSA documents or formats identified in paragraphs 1.4.1 through 1.4.5 as long as the alternatives meet the spirit and intent of the requirements of the paragraph(s) they are replacing. The MFT concurs that the PWS and QASP fully comply with the above instructions.

6.7. INITIAL PERFORMANCE REVIEW: The MFT initial evaluation of contractor performance will take place within 30 days after the contractor assumes full performance responsibilities (i.e. after completion of transition/mobilization) to ensure the contractor has successfully started performance, completed transition, is fully operational, and is within the estimated cost, schedule, and performance parameters of the contract. The Services Designated Official (SDO) may waive the initial evaluation for contractors that have continued performance under a successor contract award (i.e. prior incumbent) or for contractors which have otherwise demonstrated full compliance with contract start-up.

6.7.1. INITIAL PERFORMANCE REVIEW CRITERIA. The MFT will report the results of the initial performance review to the SDO. The report will include an assessment of schedule, management, technical and cost performance (i.e. cost performance will be reported only if other than Firm Fixed Price). Negative variations in cost, schedule, staffing, and/or performance will be reported with an assessment of the root causes and corrective action plan.

6.7.1.1 SCHEDULE: The assessment will include a discussion of the contractor’s adherence to the required delivery schedule and should address the contractor’s efforts during the assessment period that contributes to or affect the schedule variance, as applicable.

6.7.1.2 MANAGEMENT: The assessment will include a discussion of the integration and coordination of all activity needed to execute the contract, specifically the timeliness, completeness and quality of problem identification, corrective action plans, proposal submittals, the contractor’s history of reasonable and cooperative behavior (to include timely identification of issues in controversy), customer satisfaction, timely award and management of subcontracts including progress on small business subcontracting goals, and the contractor’s performance in selecting, retaining, supporting, and replacing, when necessary, key personnel, as applicable.

6.7.1.3 TECHNICAL. The assessment will include a discussion of the contractor’s conformance to contract requirements, specifications and standards of good workmanship (i.e. commonly accepted technical, professional, environmental, or safety and health standards), as applicable.

6.7.1.4 COST. The assessment will include a discussion of the contractor’s effectiveness in forecasting, managing, and controlling contract cost, as applicable.

6.7.2. ASSESSMENT VALUES.

6.7.2.1. GREEN—No issues.

6.7.2.2. YELLOW—Issue(s) but contractor has an adequate mitigation or corrective action plan in place.

6.7.2.3. RED—Issue(s) with inadequate or no contractor’s mitigation or corrective action plan. Any “RED” assessment will include the government proposed actions with respect to the failing contractor.

7. Deviations. This requirement has been determined a Non-Performance Based Acquisition. A Determination and Finding (D&F) has been approved and is located in the contract file. IAW Air Force Instruction 63-124, deviations from Performance-Based Services Acquisition documents or formats by the MFT meet the spirit and intent of the requirements they replace.

8. Revisions to this QASP. Revisions are the joint responsibility of the ACO, PCO and COR. This document can be changed at any time following coordination with the MFT.