J85 Performance Plan.pdf

File No: FD2030-10-26763

PERFORMANCE PLAN

Remanufacture of J85-GE-5/21 and MISTR Components

Purchase Request: FD2030-10-26763

30 September 2010

Prepared by: 421 Supply Chain Management (SCMS)/GUMDA

Oklahoma City Air Logistics Center

Tinker Air Force Base, Oklahoma

TERESA TYRONE DATE

QUALITY ASSURANCE PERSONNEL COORDINATOR

MELINDA A INFANTE DATE

PROCUREMENT CONTRACTING OFFICER

ADMINISTRATIVE CONTRACTING OFFICER DATE

CONTRACTOR DATE

Signature does not signify agreement with the content of this document rather it indicates the contractor’s cognizance of this document and its content.

1. Objective: The contract resulting from Purchase Request FD2030-10-26763 is for the remanufacture of J85-GE -5/21 MISTR Components contract requirements. Contractor's service will provide all labor, materials, tools, equipment, parts, transportation, etc. required to fulfill the attached Performance Work Statement (PWS). In addition to the services described in the

Performance Work Statement the Contractor is expected to be a partner with the OC-ALC/GKG and the 848 Supply Chain Management Group/421 Supply Chain Management Squadron in continuously improving the quality and value of services provided under this requirement.

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. Upon award of the contract, the Contractor will become a member of this team.

3.1. Procurement Contracting Officer (PCO) and/or Administrative Contracting Officer

(ACO) Responsibilities:

1. Lead Authority on Performance Plan.

2. Keeps current the list of Quality Assurance Personnel (QAR) assigned to the contract, indicating their areas of responsibilities and limitation of authority and ensures that the

Contractor is notified in writing of such.

3. Provides training for QAR IAW AFI 63-124 paragraph 1.7.

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. Participates as a member of MFT

3.2. DCMA QAR 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 PCO/ACO in determination of what portion of the contract has not been performed.

4. Ensures discrepancy reports are accurate and reported properly.

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

6. 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.

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

8. Maintains a contract file in accordance with (IAW) the Performance Plan and requests

PCO/ACO disposition at the completion of the contract.

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

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

11. Participates as a member of the MFT.

3.3. QAP Coordinator (QAPC) Responsibilities:

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

2. Is the lead authority on development for the Service Summary and Performance 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.

The required performance objectives can be found in the Service Summary in table 4.1 below and the attached 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 shall be aware that the absence of any contract requirement from the service summary does not detract from its enforceability nor limit the rights or remedies of the Government under any other provision of the contract.

Table 4.1 Services Summary

Sampling Method for SS-1 & SS-2

(Customer Complaint): See paragraph 4.2.2 of the Performance Plan.

Sampling Method for SS-1, and SS-2 (Periodic Inspection/Quarterly): On a Quarterly basis, the QAR will follow the quality assurance procedures per the contract inspection clause by periodically reviewing the output in order to document contractor performance.

Inspection Procedures for SS-1, and SS-2 (Periodic Inspection/Quarterly): The QAR will track on a quarterly 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.

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.

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.

Reference Performance

Objective

PWS

Paragraph

Performance Threshold Frequency Method of

Surveillance

SS-1 The Contractor shall meet the required delivery schedule

1.7.2.2 Excellent = Meets all scheduled

deliveries with 10% exceeding schedule

Satisfactory = Meets 90% of all scheduled deliveries

Unsatisfactory = Meets < 90% of all scheduled deliveries

Quarterly Customer

Complaints, Periodic Inspection

SS-2 Quality, all parts identified as serviceable shall be delivered to the Government defect free

1.9.1 Excellent = Defect rate< 0.5%

Satisfactory = Defect rate 1.0%

Unsatisfactory = Defect rate

>1.0%

Quarterly Customer

Complaints, Periodic inspection

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 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. 1) Periodic Inspection of process or output. 2) Customer

Complaint/Observation.

4.2.1 Periodic Inspection. The type of surveillance based upon selecting samples for evaluation on other than 100% inspection or on a statistically random basis.

4.2.2. Customer Complaint. The requirements 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 4.1 will be followed.

4.3. Standard. The Contractor must correct each discrepancy through reperformance. 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. 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 isn’t possible, the CO 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 QAP/COTR 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.

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 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 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. 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.

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.

5.4.2. 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. Deviations. 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.

7. Revisions to this Performance 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.

REVISION PP CHANGE ACTIVITY DATE