Attachment_3_-_Surveillance_Activity_Checklist_(SAC).docx

NAE SAC

Attachment 3

Surveillance Activity Checklist (SAC)

NAVAL AVIATION ENTERPRISE (NAE) SUPPORT SERVICES

1.0 INTRODUCTION

1.1. Purpose. In accordance with FAR 46.103 the purpose of the Surveillance Atcitty Checklist (SAC) is to identify the methods and procedures the Government will use to evaluate contractor performance while concurrently determining the contractor is meeting the mission essential elements of the Statement of Work (SOW). The SAC is designed to provide an effective surveillance method by monitoring contractor performance for each listed performance objective in the Performance Requirements Summary (See Section 7).

1.1.1 .The SAC provides a systematic method to evaluate the services the Contractor is required to perform as specified in the SOW and the contract proposal.

1.1.2. The SAC is developed by the requiring activity. It is designed to provide direction to personnel performing contractor surveillance activities. Personnel surveying the contract terms and conditions and SOW requirements will periodically review the SAC throughout the life of the contract.

2.0 ROLES AND RESPONSIBILITIES.

2.1. Government. The role of the Government in quality assurance is to ensure the Contractor is performing in accordance with the contract requirements and that contract standards are achieved.

2.2. Contracting Officer. The Contracting Officer (KO) is responsible for safeguarding the interests of the United States Government in contractual relationships. Only the KO is authorized to bind the Government and then, only to the extent of the authority entrusted to them through the issuance of a warrant.

2.2.1. The KO designates authority for inspection and/or acceptance responsibilities to the Contracting Officer Representative (COR) – or delegates authority to another certified acquisition professional - in accordance with the FAR/DFARS. This documented authority allows the COR, or other certified acquisition professionals, to act on the KO’s behalf.

2.2.2. The KO informs the Contractor of the names, duties, and limitations of authority for all quality assurance personnel assigned to the contract.

2.3. Contracting Officer Representative (COR). The COR when designated:

2.3.1. The COR develops and creates the SAC

2.3.2. The COR serves as the eyes and ears for the KO at the Contractor’s site.

2.3.3. The COR monitors contractor performance to ensure contract requirements are met for: Performance, Cost, and Schedule.

2.3.4. The COR ensures that contract quality requirements, provisions, standards, and thresholds are defined, practical, enforceable, necessary, and verifiable.

2.3.5. The COR evaluates and documents contractor performance in accordance with this SAC and the SOW.

2.3.6. The COR notifies the KO of any significant performance deficiencies using a Contractor Discrepancy Report with supporting documentation.

2.3.7. The COR maintains surveillance documentation.

2.3.8. The COR recommends improvements to the SAC and SOW throughout the life of the contract.

2.3.9 The COR is not empowered to make any contractual commitments or to authorize any changes on the Government’s behalf. Any changes that the contractor deems may affect contract price, terms or conditions shall be referred to the PCO for action.

3.0 DESCRIPTION OF SERVICES

3.1. Scope of Work. This Statement of Work (SOW) shall provide NAE requirements for technical, analytical, and managerial support and includes the full spectrum of services to support the NAE strategic objectives and initiatives including, but not limited to support for:

1. Contributions in the revision and implementation of an overarching NAE Strategic Plan.

1. Acceleration of the Enterprise through its transformation lifecycle by providing clear recommendations for enhancement of key value chain elements – operations, maintenance, training, workforce distribution, and certain aspects of the acquisition process– which, if executed, will lead to measurable improvements in results.

1. Reducing any gaps between current production levels and entitlement for USN and USMC Units Ready for Tasking to support operational requirements with acceptable risk across all warfare areas and PESTO pillars.

1. Limiting or reversing the growth in the cost of producing readiness.

1. Application of disciplined actions and cost, risk, schedule and performance tools to drive product line improvements to increase readiness and/or achieve best possible cost.

1. Implementation, with the Government, of a comprehensive, integrated, set of cross-functional methods for the planning and management of PESTO processes for the NAE

1. Implementation, with the Government, of best practice resource management processes including standardized processes for tracking cost reduction initiatives to the “bottom line”.

1. Implementation, with the Government, of best practice resource management processes for comparing value achieved versus actual and planned costs.

1. Implementation of linked hierarchical resource management measurements for the NAE.

1. The development and implementation of total force goals, including diversity and resource allocation of military, civil service, and Contractor members.

1. The development and implementation of future readiness goals.

1. Contributions in the development and implementation of a Strategic Communications Plan for the NAE.

1. The development and implementation of formal processes across the NAE to include data/metric collection, analysis and dissemination.

4.0 QUALITY REQUIREMENTS

4.1. Quality Control Program. The Contractor, not the Government, is responsible for management and quality control actions to meet the terms of the contract. Details of these controls will be documented in the contractor’s Quality Control Plan.

4.2. Level of Performance Evaluation. The Contractor will be evaluated in the following six areas: (1) excellent staffing stability and resource planning; (2) consistent delivery of high quality services and deliverables; (3) timeliness of products and services; (4) positive business relations, customer satisfaction, and timely and open communication / Task Order coordination with supporting vendors; (5) timely, accurate and complete program reporting; and (6) services are completed within negotiated price. Government customers / Integrated Product Team (IPT) Leads supported by contractor personnel will provide an independent performance evaluation monthly, in accordance with the Performance Metrics Survey (PMR), Enclosure 1. The monthly PMRs will also be utilized to complete the annual Contractor Performance Assessment Reports (CPAR). Any discrepancies will be brought to the attention of the KO.

4.3. Timely Feedback to Contractor: Timely feedback to the Contractor on unacceptable performance will be provided by the COR and documented in writing. Prompt feedback is essential so that the Contractor can develop and implement a corrective action plan. The Contractor's corrective action must be reported to the Contracting Officer for tracking purposes.

5.0 SURVEILLANCE

The COR will perform monthly surveillance based on the quality and effectiveness of the Contractor’s data deliverables as well as the services provided. Regardless of the surveillance method, the COR shall always contact the Contractor's quality manager or on-site representative when a defect is identified and inform the manager of the specifics of the problem. The COR, when designated, shall be responsible for monitoring the Contractor’s performance in meeting specific performance standards. The COR(s) assigned to perform surveillance of the Contractor’s performance manages a Surveillance Folder for their assigned contract requirements. The folder has the following divisions:

5.0.1. COR appointment letter, KO letter of designation, and Training Record.

5.0.2. SOW and other pertinent parts of the contract.

5.0.3. Surveillance Plan.

5.0.4. Surveillance Reports / Performance Metrics Surveys

5.0.5. Other applicable documentation, such as: (1) Customer and user comments and (2) Data and technical reports.

5.1. Surveillance methods. The COR, with potential input from the Technical Point of Contact (TPOC)/Alternate Technical Point of Contact (ATPOC)/User, must use at least 1 of the surveillance methods listed below in the administration of this SAC.

a. PLANNED - DIRECT OBSERVATION. (Can be performed periodically or through 100% surveillance.)

b. PERIODIC INSPECTION. (Uses a comprehensive evaluation of selected outputs. Inspections may be scheduled [Daily, Weekly, Monthly, Quarterly, or annually] or unscheduled, as required.)

c. PERIODIC SAMPLING. (Variation of random sampling. However, sample is only taken when a deficiency is suspected. Good follow-up to MIS analysis. Sample results are applicable only for the specific work inspected. Since sample is not entirely random, it cannot be applied to total activity performance.)

d. RANDOM SAMPLING. (Designed to evaluate the outputs of the award requirement by randomly selecting and inspecting a statistically significant sample. Highly recommended for large quantity repetitive activities with objective and measurable quality attributes.)

e. USER SURVEY. (Combines elements of validated user complaints and random sampling. Random survey is conducted to solicit user satisfaction. Appropriate for high quantity activities that have historically been satisfactory. May also generate periodic and 100% inspections.)

f. VALIDATED USER/CUSTOMER COMPLAINTS. (Relies on the user of the service to identify deficiencies. Complaints are then investigated and validated. Highly applicable to services provided in quantity and where quality is highly subjective.)

g. 100% INSPECTION. (Evaluates all outputs. Most applicable to small quantity, but highly important services. May be used where there are written deliverables and stringent requirements such as tasks required by law, safety, or security.)

5.2. Unacceptable Performance. If the number of complaints/defects exceeds the performance threshold for any performance objective, the COR will determine the possible cause of this unacceptable performance. Government-caused complaints/defects will not be counted against the Contractor. The same applies to any other requirement of the contract when Government-caused complaints/defects are the cause of unacceptable contractor performance. If the Contractor’s performance is judged unacceptable for any requirement by the COR, the COR will document the discrepancy as a non-conformance and inform the Contracting Officer (if needed) for resolution. Significant (major non-conformance) performance deficiencies must be submitted to the Contracting Officer using a Contractor Discrepancy Report and include supporting documentation.

6.0 DOCUMENTATION REQUIREMENTS

A copy of the Monthly Activity Report shall be provided to the KO and COR. Issues and concerns that cannot be resolved at the working level, or which impact contractual requirements, shall be reported to the KO for resolution and contractual action.

6.1. Contract Deliverables. Delivery requirements include:

CDRL

NUMBER

Paragraph

FREQUENCY

6.2. Contract Manpower Reporting Application. The COR is responsible for validating the Contractor’s input into the Enterprise-Wide Contract Manpower Reporting Application (ECMRA) website at https://doncmra.nmci.navy.mil. The COR is to obtain a user name and password, and validate that the contractor has completely filled in required contractor information at the ECMRA web site by November 30 of the first year of the contract and annually by November 30 thereafter for the duration of the contract, or sooner if the contract is closed out. The COR shall perform this validation during the month of November each year. The COR shall report the CMRA results in the November Monthly COR Report (due in December of each year) to the KO each year. Discrepancy Reports are as required.

7.0 PERFORMANCE REQUIREMENTS SUMMARY (PRS)

7.1. Overview. The PRS details and identifies the contractor requirements by performance objectives that relate directly to mission essential elements from the SOW. The performance threshold describes the minimum acceptable levels of service required for each contractor requirement. These thresholds define minimum acceptance standards critical to mission success. Various methods of surveillance exist to monitor performance; see Section 5.1.

7.2. Performance Evaluation. Performance of a service will be evaluated to determine whether or not it meets the performance threshold. Revising and resubmitting the documentation at no cost to the Government is the preferred method for correcting unacceptable performance. The Contractor shall provide the Government a written response as to why the performance threshold was not met, how performance will be returned to acceptable levels, and how recurrence of the cause will be prevented in the future.

7.3. Performance Objectives, Indicators, Thresholds, and Surveillance Methods. The services required by the Contractor are summarized into performance objectives and indicators, along with the minimum standards that relate directly to mission essential items. The performance threshold briefly describes the minimum acceptable levels of quality or service required for each requirement. These thresholds are critical to mission success.

Performance Requirements Summary (PRS)

(Satisfactory Performance) Method of Surveillance Minimum Level of Performance Standard

PRS #1 (SOW 4.0)

Excellent staffing stability and resource planning across the effort defined in this contract.

1) Management of personnel (retention, replacements, etc.) does not negatively impact quality or timeliness of products and services across the program

2) The Contractor maintains an updated Staffing Plan and obtains Government approval prior to adding personnel to the contract or changing performance locations of existing personnel.

1) Task Order Executive Steering Group Meeting

2) CFT Lead / Local TPOCs / Customer Feedback

3) 100% inspection of Monthly Activity Report (CDRL A004) and Invoices

1) No more than one (1) valid complaint during the contract performance period

2) Government approval of additional personnel obtained 100% of the time.

PRS #2 (SOW 4.0)

Consistent delivery of high quality services and deliverables.

1) Deliverables were delivered accurate, complete and incorporated all pertinent data with no (or minor) adjustments required by the Government.

2) Consistent quality services delivered throughout period of performance.

1) Inspection of CDRLs by COR (with CFT Leads / Local TPOCs input).

2) Customer Feedback

1) No more than one (1) instance where major adjustments to deliverables is required by the Government.

2) All errors / omissions identified by the Government were corrected within five (5) business days.

PRS #3 (SOW 4.0)

Timely delivery of products and services.

2) Customer Feedback

1) No more than two (2) instances where deliverables were submitted late.

PRS #4 (SOW 4.0)

Positive business relations, customer satisfaction and timely and open communication / coordination with supporting vendors.

1) The Contractor was responsive to Government concerns and promptly applied corrective action to performance issues.

2) The Contractor provided timely notifications of issues and/or items requiring Government action.

3) The Contractor coordinated all applicable tasking across supporting vendors.

1) CFT Leads / Local TPOCs / Customer Feedback

2) 100% inspection of Monthly Activity Report (CDRL A004).

1) No more than one (1) valid complaint during the contract performance period.

2) No more than one (1) untimely corrective action or untimely notifications within the contract performance period.

PRS #5 (SOW 4.0) Timely, accurate, and complete program reporting.

1) Monthly Activity Reports is delivered on time and meets all SOW content requirements.

2) 100% timely delivery of Monthly Activity Report.

PRS #6 (SOW 4.0)

Services are completed within negotiated / funded price.

1) Monthly Activity Report and invoices reflects that reported expenditures (including subcontractor expenditures) are current and are tracking monthly within the overall funded Task Order CPFF CLIN amounts and resources are executing within approved allocations.

1) Task Order Executive Steering Group Meeting

1) 100% Inspection of Monthly Activity Report and invoices by COR (with CFT Leads/TPOCs input).

1) A corrective plan is established for monthly costs that vary higher than the average monthly amount to maintain expenditures at a rate that does not exceed funded Task Order CPFF CLIN amounts. Exception would be if government and vendor agree on alternate expenditure rate (reduced or accelerated); however not to exceed total Task Order CPFF funded amount.