Exhibit_1-_Performance_Requirements_Summary_.docx

PERFORMANCE REQUIREMENTS SUMMARY

1. PERFORMANCE REQUIREMENTS SUMMARY (PRS). The PRS charts at the end of this exhibit:

1.1. List those SOW requirements (column 1) which are paid for on the basis of a payment computation system specified in paragraph 4 of this technical exhibit. The absence from this Performance Requirements Summary (PRS) of any contract requirement, however, shall not detract from its enforceability or limit the rights or remedies of the Government under any other provision of the contract, including the clauses entitled "Inspection of Services" and "Default."

1.2. Define the standard of performance for each listed service (column 2).

1.3. Set forth the maximum allowable deviation from perfect performance for each listed service. Performance Requirement (column 3), that may occur before the Government will invoke the payment computation formula resulting in a payment of less than 100% of the maximum payment for the listed service.

1.4. Define the lot used as the basis for surveillance or for payment computation purposes (column 5).

1.5. Set forth the primary surveillance methods the Government will use to evaluate the contractor's performance in meeting the contract requirements (column 6).

1.6. Set forth the percentage of the contract price that each listed contract requirement represents (column 7).

2. GOVERNMENT QUALITY ASSURANCE. Contractor performance will be compared to the contract standards and performance requirements using the Quality Assurance Surveillance Plan (QASP).

2.1. The Government may use a variety of surveillance methods to evaluate the contractor's performance. Only one method will be used at a time to evaluate the contractor's performance. Only one method will be used at a time to evaluate a listed service during an inspection period for payment computation purposes. This does not diminish the authority of the Government under the Inspection of Services Clause. The methods of surveillance that may be used are:

2.1.1. Random sampling of recurring service outputs using selective sampling.

2.1.2. Periodic surveillance of output items (daily, weekly, monthly, quarterly, semiannually, or annually) as determined necessary to assure a sufficient evaluation of contractor performance.

2.1.3. Customer complaints.

2.1.4. 100% Inspection.

3. CRITERIA FOR EVALUATING PERFORMANCE. Performance of a listed service will be accepted and paid for at the maximum payment percentage specified in column 5 of the PRS when the number of defectives found by the COR during contract surveillance does not exceed the number of defectives allowed by the Performance Requirement in column three. When the Performance Requirement is exceeded, the contractor shall complete Block 9 and 10 of a Contract Discrepancy Report (CDR). The contractor shall explain in writing why performance was unacceptable, how performance will be returned to acceptable levels, and how recurrence of the problem will be prevented in the future. The Contracting Officer will evaluate the contractor's explanation and determine if full payment, partial payment, or the contract termination process is applicable. The contractor's payment for services rendered will be calculated as stated in paragraph four. The Government specifically reserves the right to make a temporary partial payment for services performed, calculated as stated in paragraph 4, prior to receipt and evaluation of the contractor's response to a CDR.

3.1. DETERMINING THE NUMBER OF DEFECTIVES THAT WILL CAUSE LESS THAN

MAXIMUM PAYMENT.

3.1.1. When the method of surveillance of a service is random sampling, the performance requirement indicates the number of defectives that when exceeded will result in the contractor receiving less than maximum payment.

3.1.2. When the method of surveillance is not random sampling, the number of defectives that will cause less than a maximum payment will be determined by multiplying the percentage in block 7 by the monthly payment due the end of the inspection period if the period is quarterly, annually, or weekly.

3.2. ACCEPTANCE OF REPERFORMANCE OR LATE PERFORMANCE.

3.2.1. The services required by this contract are of such a nature that defective or incomplete performance disclosed by Government inspection is not subject to correction by reperformance or late performance, and the contractor shall not be required or entitled to reperform, perform late, or otherwise correct defective services for the purpose of improving an existing inspection rating or avoiding a reduction in the full contract price.

4. EXAMPLES OF PAYMENT COMPUTATIONS.

5.1. For services surveilled by random sampling:

5.3.1. If the monthly contract cost if $250,000.00 and the surveillance is quarterly, then the contractor's payment is computed as follows. Assume a Performance Requirement of 1%, and a defective percentage of 10% is discovered during scheduled surveillance. Also assume the percent of the total contract line item price for the service is 4%.

JSOMTC PERFORMANCE REQUIREMENTS SUMMARY