Exhibit C - Lusaka.docx

EXHIBIT C

QUALITY ASSURANCE AND SURVEILLANCE PLAN

1 General

This plan is designed to provide an effective surveillance method to promote effective contractor performance. The Quality Assurance and Surveillance Plan (QASP) provides a method for the Contracting Officer's Representative (COR) to monitor contractor performance, advise the contractor of unsatisfactory performance, and notify the Contracting Officer of continued unsatisfactory performance. The Contractor, not the Government, is responsible for management and quality control to meet the terms of the contract. The role of the Government is to monitor contractor performance to ensure that contract standards are achieved.

1.1 Failure to Provide Services

As with any time-and-materials contract, the Contractor may only bill for hours worked. For an unmanned post, not only is the contractor prohibited from billing for such services, but also the Government may assess a further deduction, as shown in the first category of the matrix displayed below, due to the serious breach of security created by the unmanned post.

1.2 Deduction for Unacceptable Performance

The deductions described in the matrix below are for billed services not performed in accordance with acceptable quality performance standards resulting in:

(1) the degradation in value of those services, and,

(2) the anticipated loss of administrative time and cost in dealing with performance deficiencies.

This contract may also contain line items for vehicles and communications equipment. These line items are paid at a fixed monthly rate. The matrix reflects the deductions for unacceptable services under these line items. These deductions reflect a pro rata deduction from the monthly rate.

2 Computation of Government Deduct Rate

The deduct value is based on the estimated cost for the Government to provide that service in the absence of a contract employee or the additional administrative time for the Government. For certain deficiencies, the specified deduct value is the loaded labor rate paid to the Embassy Regional Security Officer (RSO). This rate may be assessed in as little as quarter hour increments. The Government cost for this purpose is:

The Government reserves the unilateral right to modify the contract for the purpose of changing this rate. Changes will occur only to reflect changes in the cost on which the hourly rate is based.

3 Policy

The acceptable quality and deduct guidelines do not imply that the Contractor may knowingly perform in a defective manner. Defective performance may cause the Government to incur additional expenses with regard to the services, or cause the Government to withhold payment for services not properly or satisfactorily performed. When the Contracting Officer or COR observes deficient performance, as identified in the following items, the Government shall invoke the deduct value for that deficiency.

CONTRACT GOALS AND PERFORMANCE STANDARDS

C.7, Exhibit A

Exhibit B

(See Note #1)

Lack of Vehicles (See Note #2)

Mobile Patrol (failure to make rounds) Section B, C.5.2.2, Exhibit A

Exhibit D

Note (1):

Desired Outcome: Supervisor Inspection; no failure to make complete inspection of all posts.

Negative incentive for not meeting performance standard: Deduction is determined as the ratio of the number of unsatisfactory round(s) to the required number of rounds per shift times the deduct value. The deduct determination expressed in formula format:

(Number of Unsatisfactory Rounds/Number of Required Rounds per Shift) x (Government Deduct Rate) x (Hours per shift)

Note (2):

A deduction only applies when Contractor furnished and listed on Exhibit D