QASP.doc

QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

Raytheon Strategic Contract– Multiple NSNs

FD2030-15-00003

28 April 2015 424st Supply Chain Management Squadron (SCMS)/GUME

Air Force Sustainment Center (AFSC) Tinker Air Force Base, Oklahoma

1. Objective: The contract resulting from Purchase Request FD2030-15-00003 is for the repair of multiple NSNs. The objective of this effort is to perform services in accordance with the repair requirements as specified of page 1 of the Performance Work Statement (PWS). The contractor shall provide all labor, materials, tools, equipment, parts, transportation, etc. required to fulfill the requirements of the Performance Work Statement (PWS).

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. Procurement Contracting Officer (PCO) and/or Administrative Contracting Officer (ACO) Responsibilities:

1. Advise the MFT on Surveillance Plan development.

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

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

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

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

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

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

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

10. Participates as a member of the MFT.

3.2. DCMA QAR Responsibilities:

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

2. Assists with contract/order closeout.

3. Ensures discrepancy reports are accurate and reported properly.

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

5. 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.

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

7. Maintains a file in accordance with (IAW) the Surveillance Plan and requests PCO/ACO disposition at the completion of the contract.

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

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

10. Participates as a member of the MFT.

3.3. Quality Assurance Program Coordinator (QAPC) Responsibilities:

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

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

3. Participates as a member of the MFT.

3.4. Defense Contract Management Agency (DCMA)/ACO-Specific Responsibilities:

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.

4. Performance Assessment.

Contractor performance shall be measured and assessed, using the Performance Requirements listed in Table 2-1. The Contractor service requirements are summarized into performance requirements that relate directly to the mission essential items. The performance threshold requirements describe the minimum acceptable levels of service for each requirement. In the event the performance requirement is not met, the Contractor shall be given time after notification to correct the unacceptable performance, if such correction is possible. The Contractor shall immediately take corrective action in accordance with the performance threshold(s). In cases where the Contractor fails to implement corrective action, the PCO will take appropriate measures.

Service Summary (SS) Requirements: The Contractor shall ensure the performance and threshold requirements are achieved as identified in Table 2-1.

Surveillance Methods: The PMS, DCMA Quality Assurance Representatives (QAR) and PCO will exercise surveillance over the performance requirements. The absence of any contract requirement from the SS shall not detract from this enforceability nor limit the rights or remedies of the Government under any other provision of the contract. The Contractor shall support the PMS, DCMA QAR, and PCO surveillance methods as identified below:

a. Periodic Inspection of Process or Output

b. 100 Percent Inspection of Output

c. Customer Observation or Complaint.

The Government will use the methods contained in the Quality Assurance Surveillance Plan (QASP) to evaluate the Contractor’s performance for the listed program objectives. The PMS, DCMA QAR, and/or PCO will monitor Contractor performance to determine if it meets the contract thresholds as set forth in the performance measures and this PWS.

Requirements Surveillance Method

Urgent Requests – respond within 5 business days

Routine Requests – respond within 10 business days Customer Observation or Complaint.

GFM.

Periodic Inspection of Process or Output

Sampling Method for SS-1 (Customer Complaint): N/A

Inspection Procedures for SS-1 (Customer Compliant): See Section 4.2.1 of the Surveillance Plan 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.

Sampling Method for SS-3, SS-4 and SS-5 (Periodic, Monthly): On a monthly basis, the QAR will follow the quality assurance procedures per the contract inspection clause by periodically reviewing the output which may include review of contract deliverables etc. in order to document contractor performance.

Inspection Procedures for SS-3, SS-4 and SS-5 (Periodic, Monthly): The QAR will track on a monthly basis the results associated with his/her performance of the quality assurance procedures per the contract inspection clause in order to verify if the performance threshold has been met. Documentation will be kept on file to show when surveillance was performed and made available to the PCO upon request.

Contractor Performance Evaluation: The Contractor shall understand that the evaluation of performance will occur when the PMS evaluates the service of the Contractor to determine whether or not it meets the performance measures of the contract.

a. SS-1 through SS-5: The Contractor's failure to meet the requirement for this item shall result in the possibility of an unsatisfactory or marginal under the Contractor Performance Assessment Review (CPAR).

4.1 Procedures.

The government QAR 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 QAR 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 QAR 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 QAR will be forwarded to the PCO for action. Performance of the contracted services will occur on site at the contractor’s facility.

The QAR will certify services actually received under this contract in accordance with its terms and conditions. Format is at the discretion of the QAR.

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

4.1.1. Corrective Action Report (CAR) A CAR shall be used by the QAR 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.

Major Findings. Major findings are contract non-conformances which are considered critical or major. IAW FAR 46.101, a major non-conformance means a non-conformance, other than critical, that is likely to result in failure or 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 QAR identifies a condition as having a significant adverse effect on the quality of the activity, such as those stated below, the QAR shall document their findings and notify the Contracting Officer immediately in writing (email is acceptable).

A. Contractor failure to meet a Performance Threshold.

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

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

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

Minor Finding. IAW 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 QAR identifies a minor finding, the QAR shall document the findings, but is not required to notify the Contracting Officer. 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 QAR shall notify the Contracting Officer in writing (email is acceptable).

4.2. Methods of Surveillance. a) Periodic Inspection of Process or Output, b) 100 Percent Inspection of Output and c) Customer Observation or Complaint

4.2.1. Customer Complaint/Observation.

The requiring organization will furnish written instructions and/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 QAR. The QAR 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 QAR will document the invalid complaint and keep for their 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.

4.2.3. Periodic Inspection. This type of surveillance is based upon selecting samples for evaluation on other than 100% inspection on a statistically random basis.

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 QAR will annotate the unacceptable performance and 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 IAW 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 IAW the contract inspection clause.

4.5. Remedies for Non-Conformance. If inspections indicate unacceptable performance, the

QAR 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 QAR 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.

4.6 Positive and Negative Incentives. IAW the results of the QAR 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.

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. 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 our customers and the ability to propose/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 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 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. Separate initial contract performance is not required when they would duplicate reviews.

5.4.1. 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, staffing 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.

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 contributes 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 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.

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.

5.1.1.5 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 proposed actions with respect to the failing contractor.

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

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CORRECTIVE ACTION REPORT (CAR)

(If more space is needed, use reverse and identify by number)

1. CONTRACTOR

2. CONTRACT NUMBER

3. TYPE OF SERVICES

4. FUNCTIONAL AREA

5. SUSPENSE DATE

6. CONTROL NUMBER

7. DEFICIENCY FORMCHECKBOX

MAJOR FORMCHECKBOX

MINOR

FINDING:

FINDING IMPACT:

Please respond with a written corrective action plan that details the corrective action of the cited deficiency, the cause of the deficiency, and actions taken to prevent recurrence by Suspense Date in Block 5. If date was not entered in Block 5, the contractor is not required to provide a response.

8. CONTRACTING OFFICER REPRESENTATIVE (COR)

TYPED NAME AND GRADE

SIGNATURE AND DATE

9. ISSUING AUTHORITY

TYPED NAME AND GRADE

SIGNATURE AND DATE

10. COR RESPONSE TO CONTRACTOR CORRECTIVE ACTION AND ACTION TAKEN TO PREVENT RECURRENCE

11. COR DETERMINATION

FORMCHECKBOX

ACCEPTED FORMCHECKBOX

REJECTED

12. CLOSE DATE

Corrective Action Report (CAR) Template, Feb 05 (SAF/AQCP)

CORRECTIVE ACTION REPORT (CAR)

Continuation Sheet

(Number to correspond with applicable Item Number on reverse)

Corrective Action Report (CAR) Template, Feb 05 (SAF/AQCP)

Corrective Action Report (CAR) Instructions

Block 1. Enter Contractor Name.

Block 2. Enter Contract Number.

Block 3. Enter Contract Name or Type of Services.

Block 4. Enter Functional Area of the Contract.

Block 5. Enter the assigned suspense date given the contractor to provide a response to the CAR. A date must be entered for a Major CAR. A date is optional at the discretion of the Contracting Officer Representative (COR) initiating the CAR if the finding is Minor.

Block 6. All CARs will be tracked with a Control Number. The functional commander/functional director is the Issuing Authority for his/her contract Quality Assurance Evaluators (CORs) generating CARs. By providing the control number to the COR originating the CAR, the Issuing Authority demonstrates concurrence with the finding. The control number will be made up of the first two letters of the name of the site or contract, the last two digits of the calendar year, and a three digit number starting with 001 and progressing upward throughout the calendar year (e.g., WP04-001).

Block 7.

1. Check the block that indicates whether the identified deficiency is assigned as a Major or Minor finding. See Quality Assurance Surveillance Plan (QASP), paragraph 6.1.4, for the definitions of Major and Minor findings and associated explanations.

2. Finding: Clearly state the details of the finding followed by a reference to the stated contractual requirement. The reference must state the portion of the contract, part, section, paragraph and subparagraph and must make a complete brief quotation of the contract reference.

3. State the impact that the finding has or could have on the accomplishment of the mission that the contract provides.

4. When determining how long to give the contractor to respond to the identified finding, the normal is 10 working days. The suspense date should reflect this unless the finding requires a greater amount of time to come to solution. Major findings require a contractor response. Minor findings may require a contractor response at the discretion of the COR initiating the CAR and/or the Issuing Authority.

Blocks 8 and 9. Contract CORs initiating a CAR must sign in Block 8 and the Issuing Authority signs in Block 9. Each annotates the date at the time of signature.

Block 10. Upon review of the contractor’s reply, the originator of the CAR will enter comments regarding acceptance or rejection of the contractor’s response. This block may also contain any comments regarding follow-on inspections conducted or needed at a later date to validate that the finding has not reoccurred.

Block 11. The COR selects Accept or Reject after reviewing the contractor’s response.

Block 12. The COR enters a close date after advising the Issuing Authority that the contractor’s response is acceptable and the Issuing Authority concurs. The Issuing Authority will then forward the closed CAR to the contractor and report accordingly in the monthly Certificate Of Service (COS) or other applicable contracting officer services report. This routing remains the same if the contractor response is unacceptable and the CAR remains open until an acceptable response is received except that the Issuing Authority forwards the open CAR back to the contractor for additional information.

Continuation Sheet. The Continuation Sheet is to be used to expand on any information that will not fit in the applicable numbered block.