Quality_Assurance_Surveillance_Plan.pdf

QUALITY ASSURANCE SURVEILLANCE

PLAN (QASP)

420 SCMS Logistic and Data Services

Purchase Request FD2030-17-01117 Original

18 April 2017

420th Supply Chain Management Squadron/GUNAA Air Force Sustainment Center (AFSC)

Tinker Air Force Base, Oklahoma

1. Objective. The purpose of this effort is to acquire logistics services to provide logistics analyses and reports to support Depot Level Reparable (DLRs) Spares and Air Force- (AF-) Managed Consumables and to further develop, test, transition, and refine innovative, non-forecast-based, inventory stockage methodologies for highly variable demand and sporadic demand items and to support Air Force implementation of such methodologies in current legacy systems as well as possible future advanced planning systems. This requirement supports all AF-managed items maintained at Hill Air Force Base (AFB), Tinker AFB, and Robins AFB. In support of DLR Spares and AF-Managed Consumables required tasks may include: Analyzing, researching, reporting, information gathering, tracking, organizing, developing, coordinating, and reviewing data. Additionally, this effort involves estimating changes in backorders and the resulting issues and stockage effective measures that result from changes in AF operations or policies. Traditional methods for managing items with infrequent or highly variable demand often suffer from extremely high forecast error, and, as a result, generate excess inventory and poor customer service. Under the Sporadic Demand and Highly Variable Demand Inventory Models, the Air Force is pursuing the development and implementation of advanced inventory management methods that specifically address these challenging demand patterns, based on optimization and risk management techniques, not forecasting. The methods enable a three-way trade-off among customer wait time, inventory value, and procurement and repair workload, providing a more optimal solution to meet business objectives. These advanced methods are mathematically intensive and require a modeling and simulation capability to simulate performance using randomized and historical replay based on five or more years of demand history, as well as dynamic levels updates. The Air Force requires the services of subject matter experts to further develop, test, transition, and refine these innovative methodologies for highly variable and sporadic demand items to improve the Air Force’s inventory performance.

2. Goals of the Multi-functional Team (MFT). The goals of this team are to provide the highest levels of contract performance and customer satisfaction.

3. MFT Members and their Responsibilities. The membership, goals, and responsibilities of the MFT are outlined below.

3.1. Procuring Contracting Officer (PCO) Responsibilities:

a. Advises the MFT on QASP development.

b. Appoints a Contracting Officer’s Representative (COR) via a COR Designation

Memorandum, indicating the COR’s areas of responsibility and limitations of authority and ensures that the COR, Contractor, and Quality Assurance Program Coordinator (QAPC) are notified in writing of such.

c. Provides Contract Specific Training for any CORs appointed by the PCO.

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

e. Requests re-performance or a reduction of contract price when services are not performed, or do not meet contract requirements.

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

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

h. Ensures past performance inputs are prepared, documenting any performance issues.

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

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

k. Terminates the COR designation in writing, when appropriate, and forwards a copy of the

COR Termination Memorandum to the COR, COR Supervisor, and QAPC, and notifies the Contractor.

l. Participates as a member of the MFT.

3.2. COR Responsibilities:

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

b. Notifies the PCO and the Contractor of any performance deficiencies in writing, e-mail acceptable.

c. Assists with contract closeout.

d. Ensures discrepancy reports are accurate and reported properly.

e. Prior to contract start date, completes Department of Defense (DoD) Standard COR

Training, or Refresher Training, and the Contract Specific Training in accordance with the DoD standard for COR certification.

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

g. Maintains accurate documentation of Contractor assessment activities as required by the QASP and reports the results of Contractor assessment activities to the PCO.

h. Works with the Contractor and the PCO to resolve issues.

i. Maintains a COR file* in accordance with the QASP and requests PCO disposition at the completion of the contract, or in the event of COR appointment termination (if applicable).

j. Submits all requests for corrective action to the PCO.

k. 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 retains the authority for acceptance.

l. Ensures the Contractor complies with the requirements of Federal Acquisition Regulation Clause 52.222-50(c), (d), and (f), Combating Trafficking in Persons.

m. Participates as a member of the MFT.

*File should include a copy of the contract and all modifications (unless readily available electronically); a copy of COR Designation Memorandum; correspondence between the COR and the Contractor; copies of correspondence to or from PCO; minutes of all meetings; copies of all invoices submitted and paid; and all other documentation of actions taken by the COR.

3.3. Quality Assurance Program Coordinator (QAPC) Responsibilities:

a. Assists the PCO in providing Contract Specific Training, per Paragraphs 1.5.1 – 1.5.6 of Air Force Federal Acquisition Regulation Supplement Mandatory Procedure 5301.602- 2(d) and in providing COR Refresher Training, upon request.

b. Provides training for COR management.

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

d. Offers advice on development for the Services Summary and QASP.

e. Participates as a member of the MFT.

3.4. COR Management (i.e., Supervisor) Responsibilities:

a. Upon request from the PCO, prepares COR nomination package.

b. Ensures prospective COR understands the importance of performing his designated functions.

c. Ensures COR will be afforded the necessary resources (time, supplies, equipment, and opportunity) to perform his designated functions.

d. Ensures that performance of the designated functions will be addressed as part of the

COR’s annual performance appraisal.

e. Solicits input on performance of COR duties from the PCO.

f. Ensures COR completes required training prior to award, or prior to his designation as a

COR if appointed after contract award.

g. Identifies mission essential services (Functional Commander only responsibility)

h. Completes training offered by the QAPC.

i. Participates as a member of the MFT.

4. Performance Assessment. The required Performance Objectives can be found in the Services Summary in the PWS. The Contractor service requirements are summarized into Performance Objectives that relate directly to the mission essential items. The Performance Threshold describes the minimum acceptable levels of service for each requirement. The Contractor should be made aware that the absence of any contract requirement from the Services Summary does not detract from its enforceability, nor limit the rights or remedies of the Government under any other provision of the contract.

Methods of Surveillance:

Performance Objective PWS Paragraph Performance Threshold Method of Surveillance

SS #1 - The Contractor shall prepare and provide Microsoft PowerPoint bar charts that show the RBL level changes for the current quarter and for the three previous quarters for all three centers.

1.4.2.1.1

*An error is defined as a rejected data submittal which is returned to the contractor for rework due to non-compliance with contract requirements.

No more than three (3) *errors per quarter and late no more than one (1)

100% Inspection and Customer Complaint.

time per performance period.

SS #2 - The Contractor shall perform data pulls of all RBL levels to be pushed. After RBL re-computes, but before RBL pushes, the Contractor shall prepare a report for review by the 448 SCMW to show the level changes by base and by depot.

1.4.2.1.2

No more than three (3) *errors per quarter and late no more than one (1) time per performance period.

100% Inspection and Customer Complaint.

SS #3 – The Contractor shall generate an annual Demand Forecast Accuracy cost analysis by simulating the impact changes in demand rates had on the D200 computation.

1.4.2.2

No more than three (3) *errors and late no more than five (5) working days per performance period.

100% Inspection and Customer Complaint.

Performance Objective PWS Paragraph Performance Threshold Method of Surveillance

SS #4 - The Contractor shall identify Insurance/Numeric Stockage Objective items with buy and repair requirements, utilizing an Automated Budget Compilation System (ABCS) flat file provided by the Government.

1.4.2.3

No more than three (3) *errors and late no more than five (5) working days per performance period.

100% Inspection and Customer Complaint.

SS #5 - The Contractor shall extract and stratify ABSC buy and repair requirements by pulling information from the Interrogation Requirements Information System (IRIS)

1.4.2.4

No more than three (3) *errors per report and late no more than one (1) time per performance period.

website of D200F Past and Future Program data and shall consolidate the information into a Microsoft Excel report to provide a snapshot of the programmatic changes between cycles as well as FY to FY for Trend Analysis.

SS #6 – The Contractor shall develop, maintain and deliver an Monthly Status Report (MSR) to summarize the progress and status of each tasking accomplished each month, including a trip report, if applicable, and, before delivery to the Government, shall subject the MSR to quality control measures to ensure accuracy of the information contained therein.

1.13 and 1.14

No more than three (3) *errors per month and late no more than one (1) time per performance period.

100% Inspection and Customer Complaint.

SS #7 – The Contractor shall produce and provide annual trade-off curves for determining inventory levels for all items meeting established sporadic demand criteria. Trade-off curves should be built within the requirements of the PWS and present trade-off decisions between inventory investment, customer performance and buy and/or repair workload.

1.4.2.5.1

All data provided with no *errors and late no more than one (1) time per performance period and never more than 15 working days late.

100% Inspection and Customer Complaint.

SS #8 – The Contractor shall produce and provide quarterly levels file for all items meeting established sporadic demand criteria. The file should include the minimum and maximum buy and repair levels (4 levels) per NSN. The file should be provided in Microsoft Excel, comma-separated values (.csv) or delimited text file (.txt) format.

1.4.2.5.1

All data provided with no *errors and late no more than one (1) time per performance period and never more than five (5) working days late.

SS #9 - The Contractor shall produce and provide an annual analysis report for sporadic demand items that discusses modeling changes, trade-off curve analysis, and parameter selection, as well as inventory performance.

1.4.2.5.1

All data provided with no more than three (3) *errors and late no more than one (1) time per performance period and never more than 2 working days late.

100% Inspection and Customer Complaint.

SS #10 - The Contractor shall produce and provide annual trade-off curves for determining inventory levels for all items meeting established highly variable demand criteria. Trade-off curves should be built within the requirements of this PWS and present trade-off decisions between inventory investment, customer performance and buy and/or repair workload.

1.4.2.5.2

All data provided with no *errors and late no more than one (1) time per performance period and never more than 15 working days late.

100% Inspection and Customer Complaint.

SS #11 - The Contractor shall produce and provide quarterly levels file for all items meeting established highly variable demand criteria. The file should include the minimum and maximum buy and repair levels (4 levels) per NSN. The file should be provided in Microsoft Excel, comma-separated values (.csv) or delimited text file (.txt) format.

1.4.2.5.2

All data provided with no *errors and late no more than one (1) time per performance period and never more than 5 working days late.

100% Inspection and Customer Complaint.

SS #12 - The Contractor shall produce and provide annual analysis report for highly variable demand items that discusses modeling changes, trade-off curve analysis, and parameter selection, as well as inventory performance.

1.4.2.5.2

All data provided with no more than three (3) *errors and late no more than one (1) time per performance period and never more than 2 working days late.

SS #13 - The Contractor shall provide a list and description of input data requirements for the sporadic demand inventory model. The list shall document data source systems, data fields required with a descriptions for each field, time periods of extraction and any business rules and/or filters applied to the data.

1.4.2.5.1

All data provided with no more than three (3) *errors and late no more than one (1) time per performance period and never more than 2 working days late.

100% Inspection and Customer Complaint.

SS #14 - The Contractor shall provide a list and description of input data requirements for the highly variable demand inventory model. The list shall document data source systems, data fields required with a descriptions for each field, time periods of extraction and any business rules and/or filters applied to the data.

1.4.2.5.2

All data provided with no more than three (3) *errors and late no more than one (1) time per performance period and never more than 2 working days late.

100% Inspection and Customer Complaint.

SS #15 – The Contractor shall develop and provide meeting agendas and briefing charts for annual kick-off meetings.

1.6.1

No more than three (3) *errors and late no more than one (1) time per performance period and never more than 1 working day late.

100% Inspection and Customer Complaint.

SS #16 – The Contractor shall track action items associated with kick-off meetings and provide meeting minutes that summarize the topics and issues discussed during the meeting. Action items captured during the meeting shall be documented in the meeting minutes and sent to all meeting attendees.

1.6.1

No more than three (3) *errors and late no more than one (1) time per performance period and never more than 5 working days late.

Notes:

1A. Sampling Method for SS-1, SS-2, SS-3, SS-4, SS-5, SS-6, SS-7, SS-8, SS-9, SS-10, SS-11, SS-12, SS-13, SS-14, SS- 15 and SS-16 (Customer Complaint): N/A

1B. Inspection Procedures for SS-1, SS-2, SS-3, SS-4, SS-5, SS-6, SS-7, SS-8, SS-9, SS-10, SS-11, SS-12, SS-13, SS-14, SS-15 and SS-16 (Customer Compliant): See Section 4.2.1 of the QASP and the follow-up procedures as shown under Section 4.1. Documentation will be kept on file and made available to the PCO upon request.

2A. Sampling Method for SS-1, SS-2, SS-3, SS-4, SS-5, SS-6, SS-7, SS-8, SS-9, SS-10, SS-11, SS-12, SS-13, SS-14, SS- 15 and SS-16 (100% Inspection): All Microsoft PowerPoint bar charts, reports, Demand Forecast Accuracy cost analyses, Microsoft Excel reports, and MSRs will be reviewed upon receipt. The reviewer will report any flaws in the documents and will categorize the flaws (Editorial, Format, or Substance). The reviewer will report on the timeliness of the submittals.

1B. Inspection Procedures for SS-1 - SS-16 (100% Inspection): See Section 4.2.2 of the QASP and the follow-up procedures as shown under Section 4.1. Documentation will be kept on file and made available to the PCO upon request.

4.1. Procedures. The 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 PCO of the deficiency for correction. The Contractor will 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 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 PCO for action.

Performance of the contracted services will occur offsite at Contractor location(s), but may require some performance at Tinker AFB, Wright-Patterson, and other Government facilities.

The COR will certify services actually received under this contract in accordance with its terms and conditions, unless the PCO retains authority for acceptance. Format is at the discretion of the COR.

Upon notification from the Contractor that an identified defect has been corrected, the COR will re-inspect the area/task associated with the defect, customer complaint, or Correction Action Report that was issued by the Government. The COR will verify the root cause and that corrective and preventative actions submitted by the Contractor are effective and will prevent reoccurrence.

4.1.1. Corrective Action Report (CAR). A CAR shall be used by the COR to document contract requirement findings and subsequent corrective actions to be taken. A computer-generated CAR may be used, provided the information on the CAR remains the same. See attached CAR and instructions for filling out.

4.1.2. Definitions of Major Findings & Minor Findings.

4.1.2.1. Major Findings. Major findings are contract non-conformances which are considered critical or major. In accordance with Federal Acquisition Regulation (FAR) 46.101, a major non-conformance means a non-conformance, other than critical, that is likely to result in failure or to reduce the usability of the services for their intended purpose. A critical non-conformance means a non-conformance that is likely to result in a hazardous or unsafe condition for individuals using, maintaining, or depending upon the services, or is likely to prevent performance of a vital agency mission. If at any time the COR identifies a condition as having a significant adverse effect on the quality of the activity, such as those stated below, the COR will document his findings and will notify the PCO immediately in writing (email is acceptable).

a. Contractor failure to meet a Performance Threshold.

b. Contractor failure to provide adequate corrective action to preclude reoccurrence of

Government identified findings.

c. Contractor failure to provide corrective action to deficiencies identified by the

Contractor within a prescribed suspense period.

d. Any failure by the Contractor to adhere to security and/or safety regulations that results in a security or safety incident.

4.1.2.2. Minor Finding. In accordance with FAR 46.101, a minor non-conformance means a non-conformance that is not likely to materially reduce the usability of the services for their intended purpose, or is a departure from established standards, having little bearing on the effective use or operation of the services. When the COR identifies a minor finding, the COR will document the findings, but is not required to notify the PCO. However, if the same minor finding is repeatedly identified, it may be an indication that a major finding is occurring, or has occurred, because the Contractor has not taken proper steps to prevent recurrence. In this case, the COR will notify the PCO in writing (email is acceptable).

4.2. Methods of Surveillance. 1.) Customer Complaint/Observation; and 2.) 100% Inspection.

4.2.1. Customer Complaint/Observation. The requiring organization will furnish written instructions or customer training to each organization receiving the Contractor's services. 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 his records. If the complaint is not a result of any Government action, the procedures in Paragraph 4.1 will be followed.

4.2.2. 100% Inspection. All deliverables (reports, etc.) will be inspected 100% for errors and omissions.

4.3. Standard. The Contractor must correct each discrepancy through re-performance.

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.

Additionally, if the same discrepancy (ies) occurs repeatedly throughout different reporting periods, this will reflect upon the Contractor's performance. The COR will annotate the unacceptable performance and will notify the PCO in order to address the problem areas with the Contractor. In those instances where re-performance is not possible, the PCO may deduct payment in accordance with the Inspection of Services clause.

4.4. Surveillance of Non-Service Summary Items. The Government reserves the right to inspect and test 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.

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

4.6 Positive and Negative Incentives. In accordance with the results of the COR’s surveillance documentation, areas warranting a change in assessment method, frequency, or performance threshold will be changed in either a positive or negative manner throughout the life of the contract, if warranted.

4.7. Combating Trafficking in Persons. In accordance with Defense Federal Acquisition Regulation Supplement Procedures, Guidance, and Information 222.17, the COR shall pursue, as appropriate, the following methods of monitoring the Contractor’s performance regarding trafficking in persons such that non-compliances with FAR clause 52.222-50 are brought to the immediate attention of the PCO:

a. Keep the lines of communication open with the Contractor. At the Post-Award conference (Kick-Off Meeting), remind the Contractor of his contractual responsibilities to notify the Government if the Contractor receives notification of any alleged violations to this policy, or if actions have been taken against the Contractor employees, subcontractors or subcontractor employees pursuant to the clause.

b. When appropriate, encourage the Contractor to complete Human Trafficking Awareness Training.

c. Encourage the Contractor to take steps to investigate and to eliminate slavery and human trafficking in his supply chains and to publish information for consumer awareness.

d. Periodically access the Department of State’s Trafficking in Person website, http://www.state.gov/g/tip, for updates and to view the latest reports.

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.

http://www.state.gov/g/tip

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

5.3. 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. The objective is to arrive at mutually agreeable resolutions that are relatively inexpensive and expeditious. If no resolution can be made under ADR, the PCO shall be notified for a final decision.

5.4. Initial Contract Performance Review (Kick-Off Meeting). The MFT’s initial evaluation of Contractor performance will take place within 30 days after the Contractor assumes full performance responsibilities (i.e., after completion of transition or 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 that have otherwise demonstrated full compliance with contract start-up. A separate initial contract performance review is not required if it would duplicate other existing reviews.

5.4.1. Initial Contract 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, staffing, and cost performance (i.e., cost performance will be reported only if other than Firm-Fixed-Price). Negative variations in cost, schedule, staffing, or performance will be reported with an assessment of the root causes and corrective action plan.

5.4.1.1. Schedule. The assessment will include a discussion of the Contractor’s adherence to the required delivery schedule, milestones, and administrative requirements and should address the Contractor’s efforts during the assessment period that contribute to or affect the schedule variance, as applicable.

5.4.1.2. Management/Performance. The assessment will include a discussion of the integration and coordination of all activities 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.

5.4.1.3. 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.

5.4.1.4. Cost. The assessment will include a discussion of the Contractor’s effectiveness in forecasting, managing, and controlling contract cost, as applicable.

5.4.1.5. Staffing. The assessment will include a discussion of Contractor’s performance in selecting, retaining, supporting, and replacing, when necessary, key personnel, as applicable.

5.4.1.6. Special Interest Items. Special interest items are to be included in the initial performance report when significant modifications to the contract have been made since contract award.

5.4.2. Assessment Values.

5.4.2.1. GREEN – No issues.

5.4.2.2. YELLOW – Issue(s), but Contractor has an adequate mitigation or corrective action plan in place.

5.4.2.3. RED – Issue(s) with inadequate or no Contractor’s mitigation or corrective action plan.

Any “RED” assessment will include the Government’s proposed actions with respect to the failing Contractor.

6. Revisions to this Surveillance Plan. Revisions are the joint responsibility of the PCO and COR. This document can be changed at any time following coordination with the MFT.

REVISION QASP CHANGE ACTIVITY DATE

Original 420 SCMS Logistic and Data Services

18 Apr 2017

Corrective Action

Report (CAR) Templa