3_-_Shuttle-PRS.DOC

PERFORMANCE REQUIREMENTS SUMMARY

FOR

SHUTTLE SERVICE SERVICE

BETWEEN

U.S. COAST GUARD

COAST GUARD ISLAND

ALAMEDA CALIFORNIA

AND

RONALD V. DELLUMS FEDERAL BUILDING

1301 CLAY STREET

OAKLAND CALIFORNIA

AND

MASS TRANSIT FACILITY

LAKE MERRITT BAY AREA RAPID TRANSIT STATION

OAKLAND CALIFORNIA

DECEMBER 2015

1.

Contractor shall ensure quality control and supervision with corrective action, as necessary, to meet the requirements of this contract. Government will perform quality assurance monitoring of all contract requirements. The Performance Requirements Summary Chart below lists specific tasks, performance standards, and surveillance methods that Government will employ. This section is intended to provide Contractor with an incentive to maintain contract requirements.

Performance Requirements Summary Chart

Verified complaints, and/or Documentation

Verified complaints, and/or Documentation

Observations

2.

Contractor shall perform in accordance with 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 Contractor fails to meet the contract requirements specified, and if the quantity of failures during any month is greater than the Acceptable Quality Level (AQL), then there may be a deduction from Contractor’s monthly payments based upon this unacceptable level of performance.

Example of a Performance-Based Deduction:

Assume the Contractor’s monthly invoice presented for performing in accordance with contract requirements is $15,000. The AQL for arriving and departing scheduled stops is 3%, and the weighted factor for this requirement is 20%.

Paragraph 7.2 of the Performance Work Statement requires Contractor to depart each scheduled shuttle stop no later than five (5) minutes past the scheduled departure time.

Assume that there were twenty (20) scheduled trips per day; there were 20 trips during one month when Contractor did not depart from the designated shuttle stops within the required five (5) minutes; and there were twenty (20) working days in that month. The AQL for this period would have been 12 delayed departures (3% of 400 trips). Since there were 20 trips during one month where Contractor failed to meet the requirements out of a possible four hundred (400) trips (20 per day x 20 days), the failure rate would be 5% for that month.

Therefore, since Contractor failed to provide the acceptable departure times in more than the AQL of 3%, there may be a performance-based deduction from Contractor’s monthly payment.

The deduction from Contractor’s monthly payment will be Contractor’s invoiced amount, multiplied by the weight of the specific work item or items, multiplied by Contractor’s actual failure rate.

The weight for arriving and departing within 5 minutes is 20%. In this example, the deduction is $150.00. ($15,000 x 20% x 5% = $150). Therefore, Government would deduct $150 from Contractor’s monthly payment.

Deductions shall not be deemed to waive or limit any right of Government.

EXHIBIT 1