Attach_1_PRS.doc

HSCG84-13-Q-B11051

Attachment 1

Performance Requirements Summary

Waterborne Transportation Services

U.S. Coast Guard

Marine Safety Office

San Francisco, California Performance Requirement Summary

1. Quality Assurance: The Contractor shall ensure quality control and supervision with corrective action as necessary to meet the requirements of this contract. The Government will perform quality assurance monitoring of all contract requirements. The performance requirement summary below lists specific tasks and performance standards that the government will employ. This section is intended to provide the contractor with an incentive to maintain the contract requirements.

2. Deduction Threshold: The Contractor must perform in accordance with the contract requirements at all times. As an added incentive to perform certain particularly important tasks, performance-based deductions may be taken when contractor performance drops below an acceptable level. If the contractor fails to meet the contract requirements specified in Section 7.1, and if the quantity of failures during any month is greater than the Acceptable Quality Level (“AQL”), then there will be a deduction from the Contractor’s monthly payment based upon this unacceptable level of performance.

3. Performance Based Deduction Formula:

Safety & Equipment

Example of Deduction Amount to Contractor Payments:

a. Assume the maximum possible monthly payment for performing in accordance with the contract requirements is $10,000.00.

b. Assume that the AQL for performing round trips is 100%.

c. Section 1. of the PWS states that transportation shall be round trip. Assume the contractor made 12 trips per month.

d. The AQL of 100%, multiplied by 12 trips per month, is 12 trips per month. Therefore, if the Contractor fails to provide round trips 100% of the time there may be a performance-based deduction.

e. Assume that, during a given month-long period, the Contractor fails to provide round trips on 2 occasions. This means that the Contractor has failed to perform in 6% (2 divided into 12) of the required monthly performances. This failure rate is less than the AQL of 100%, and therefore there will be a performance-based deduction from the Contractor’s monthly payment.

f. The weight given for performing round trips in the Table above is 25%.

g. The deduction in the Contractor’s monthly payment will be: the (maximum possible monthly payment) multiplied by the (weight of the specific work item) multiplied by the (Contractor’s actual failure rate). In this example, the deduction is ($10,000.00) x (25%) x (6%) = $150.00

h. Therefore, during this month, the Coast Guard would deduct $150.00 from the Contractor’s monthly payment.

4. Performance-based deductions may be cumulative. If the Contractor’s performance falls below the AQL for more than one work requirement listed in the table above, then the Coast Guard may take more than one deduction from the Contractor’s monthly payment.