19R5002_--_Solicitation_DRAFT_--_posted_to_FBO_29JAN2019.pdf

DRAFT

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(Hour)

PAGE(S)

until local time

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X G F 83 - 86

87 - 91 H 92 megan.k.frost2.civ@mail.mil

RATING PAGE OF PAGES

7. ISSUED BY

(Date)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

Previous Edition is Unusable 33-134 STANDARD FORM 33 (REV. 9-97)

Prescribed by GSA FAR (48 CFR) 53.214(c)

1 92

(If other than Item 7)

15A. NAME 16. NAME AND TITLE OF PERSON AUTHORIZED TO

AND

ADDRESS

SIGN OFFER (Type or print)

OF

OFFEROR

AMENDMENT NO. DATE

15B. TELEPHONE NO (Include area code) 17. SIGNATURE15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE.

18. OFFER DATE

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

2. CONTRACT NO.

W52P1J 8. ADDRESS OFFER TO

See Item 7

9. Sealed offers in original and 1 copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and see Section L of solicitation conditions contained in this solicitation.

10. FOR INFORMATION

CALL:

A. NAME (NO COLLECT CALLS)

MEGAN K. FROST 309-782-1471

11. TABLE OF CONTENTS

SOLICITATION/ CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/ COSTS

1 - 6 7 - 34

X I CONTRACT CLAUSES

DESCRIPTION/ SPECS./ WORK STATEMENT X

PACKAGING AND MARKING

J LIST OF ATTACHMENTS

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

35 - 46 47 - 49

X K

REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

CONTRACT ADMINISTRATION DATA X

SPECIAL CONTRACT REQUIREMENTS

OFFER (Must be fully completed by offeror) X M

L INSTRS., CONDS., AND NOTICES TO OFFERORS

EVALUATION FACTORS FOR AWARD

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments

AMENDMENT NO. DATE

to the SOLICITATION for offerors and related documents numbered and dated):

FACILITY

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period

SOLICITATION, OFFER AND AWARD

X

(X) SEC. DESCRIPTION (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

EMAIL:TEL: (Signature of Contracting Officer)

CODE CODE

B. TELEPHONE (Include area code) C. E-MAIL ADDRESS

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

10 U.S.C. 2304(c)( ) 41 U.S.C. 253(c)( ) (4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

PART IV - REPRESENTATIONS AND INSTRUCTIONS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

50 - 81

PART II - CONTRACT CLAUSES

ARMY CONTRACTING COMMAND ROCK ISLAND

3055 RODMAN AVENUE

ROCK ISLAND IL 61299-8000

FAX:

TEL:

FAX:

TEL:

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

6. REQUISITION/PURCHASE NO.5. DATE ISSUED4. TYPE OF SOLICITATION

SEALED BID (IFB)

NEGOTIATED (RFP)

[ X ]

3. SOLICITATION NO.

W52P1J19R5002

Section A - Solicitation/Contract Form

SOLICITATION SUMMARY

1. The U.S. Army Contracting Command – Rock Island requests a proposal for the Operation, Maintenance and Repair of Heating, Ventilation, Air Conditioning (HVAC) and Refrigeration equipment on the Rock Island Arsenal (RIA), Rock Island, IL.

This work includes operations, predictive maintenance, preventive maintenance, repairs, alterations, and minor construction to real property facilities and installed equipment. Also included is Direct Digital Controls (DDC) operations and water treatment consultant. The proposed award will be for one six month base period, four subsequent 12 month option years, and one subsequent six month option period.

All work is to be done in accordance with (IAW) the Performance Work Statement (PWS) PR 2019-0004 dated 27 September 2018.

2. Contractor questions regarding the solicitation and work contained in the PWS are due to the POC no later than 4:00pm CT, DATE MONTH 2019, in order to assure that all Contractor questions can be answered and posted for all Contractors' knowledge prior to solicitation closing.

3. The closing date and time for receipt of offers is 4:00pm CT, DATE MONTH 2019.

4. The general work required is included in the PWS, Attachment 0001. In addition to the PWS, each Attachment may include, when required, Performance Requirement Summary (PRS), Contract Data Requirements List (CDRL) and supporting Data Item Descriptions (DID), Technical Exhibits (TE), and any other essential data or information. Attachments will not be posted to the website but will be provided on fbo.gov as explicit access documents.

5. The Performance Work Statement (PWS), Performance Requirement Summary (PRS), Technical Exhibits, CDRLs, and DIDs are posted on fbo.gov as explicit access only documents.

6. Explicit access documents may be obtained by having an active Joint Certification Program (JCP) account.

You can obtain an active account by visiting:

https://public.logisticsinformationservice.dla.mil/jcp/search.aspx and submitting the necessary documents.

Once your account is active, you may request access to documents in FedBizOpps (www.fbo.gov).

**PLEASE NOTE, THE PERSON APPROVED FOR YOUR BUSINESS IN JCP, MUST BE THE

PERSON WHO REQUESTS ACCESS IN FBO OR YOUR WILL BE DENIED.**

7. The proposed award will be for one six month base period, four subsequent 12 month option years, and one subsequent six month option period. Also included is an option for a six month extension option, in the event that Federal Acquisition Regulation (FAR) 52.217-8, Option to Extend Services, is exercised in option period five. All Contract Line Item Numbers (CLIN) will be firm fixed price with the exception of unscheduled PWOs and DMOs. This contract will include the following potential periods:

Potential Periods Start Date End Date Number of Months

Base Period 31 May 2019 30 November 2019 6 Option Year One 01 December 2019 30 November 2020 12 Option Year Two 01 December 2020 30 November 2021 12 Option Year Three 01 December 2021 30 November 2022 12 Option Year Four 01 December 2022 30 November 2023 12 Option Period Five 01 December 2023 31 May 2024 6 Six Month Extension Option 01 June 2024 30 November 2024 6

8. Unscheduled services are unanticipated and unpredictable Demand Maintenance Orders (DMOs) and Performance Work Orders (PWOs) are not available for firm fixed pricing. For evaluation purposes, a ceiling amount is provided in the Excel pricing sheet. This ceiling is not a guarantee of dollars to be awarded during any performance year.

9. Prices should be provided in the Excel pricing sheet provided as Attachment 0007.

10. A pre-construction site visit is scheduled for 9:00am CT, DATE MONTH 2019, in the Public Works Conference Room, Public Workds Conference Room Basement, Bldg 102.

Site Visit attendance is not mandatory, but highly encouraged. RESERVATIONS FOR THIS SITE VISIT ARE MANDATORY FOR ALL ATTENDEES. Please email megan.k.frost2.civ@mail.mil for reservations.

**VERY IMPORTANT!!!**

ALL ATTENDEES WITHOUT BADGE ACCESS MUST COMPLETE AND RETURN THE "ACCESS

CONTROL RECORDS CHECK REQUEST FORM: LOCATED AT

http://www.usagria.army.mil/ACCESSREQUESTS/Process.aspx NLT 72 HOURS PRIOR TO THE SITE VISIT AND RETURN THE FORM TO usarmy.ria.imcom.mbx.usag-access-request@mail.mil and megan.k.frost2.civ@mail.mil.

CONTRACTORS NOT RETURNING THIS FORM 72 HOURS PRIOR TO THE SITE VISIT WILL

NOT BE ABLE TO ATTEND THE SITE VISIT.

PLEASE NOTE: ALL ATTENDEES MUST ACCESS THE ISLAND THROUGH THE MOLINE GATE

AND STOP AT BUILDING 23, VISITOR CENTER CONTROL CENTER, TO GAIN ACCESS TO THE

ISLAND UNLESS YOU HAVE AN EXISTING BADGE TO GAIN ACCESS.

11. Offerors should visit the site and take steps necessary to ascertain the nature and location of the work, and the general and local conditions that can affect the work or the cost there of. Failure to do so will not relieve offerors from responsibility for estimating properly the difficulty or cost of successfully performing the work. Please see clause 52.236-27 for information regarding the site visit.

12. The Government intends to award one contract pursuant to this solicitation. The award will be made to the offeror whose proposal offers the best overall value to the Government based on the integrated assessment of non price and price evaluation factors. The evaluation factors include: technical/risk, past performance, small business utilization, and price.

13. Notice to potential offerors: In order to align with current requirements of DoD Federal Acquisition Regulation Supplement (DFARS) 201.304 and Army Federal Acquisition Regulation Supplement (AFARS) 5101.304, there has been a change to the format of ACC-RI solicitations (and resultant contracts). This notice is to inform you of that format change and to advise you to review the entire solicitation thoroughly.

14. Offerors are cautioned to ensure their proposals are fully complete, including all fill-ins and blanks in the RFP. Any offeror submitting a proposal agrees by submission that their proposal and the prices contained therein will be valid for 90 days after receipt of proposals.

15. This solicitation is issued Subject to Availability of Funds. This solicitation is currently unfunded. Funds will be certified, subject to availability of funds (see FAR 52.232-18).

16. Please note that funding constraints require the Government to incorporate DFARS clause 252.232-7007, “Limitation of Government’s Obligation” (Apr 2014) to allow for incremental funding of the contract as necessary.

17. Evaluation of offers shall be IAW the evaluation guidelines and specific evaluation procedures in Section M of this solicitation. All offerors shall submit their proposals and any proposal revisions, if required, in strict accordance with the instructions set forth in the solicitation and any issued amendments. The Government must be able to access information along with any submitted changes within proposals readily and easily and will not be responsible for not being able to sight necessary information that was not submitted IAW the instructions set forth in the solicitation.

18. Offerors are cautioned to read Section L, Proposal Instructions, carefully to ensure that any proposal submitted in response hereto includes all technical, past performance, small business participation, and price information required by the solicitation. Failure to provide the required supporting documentation may result in your offer being rejected.

19. Offerors are cautioned to ensure their proposals are fully complete, including all fill-ins and blanks in the solicitation.

20. The NAICS code for this solicitation is 238220.

21. Terms of the solicitation and specifications remain unchanged unless a formal amendment to the solicitation is issued.

22. Proposal is to be submitted in U. S. Dollars.

23. The Government may choose to use Digital Signatures generated from a Common Access Card. This has the same legal affect and binding authority as a hand signature.

24. All Contractors who provide goods/services tro the Department of Defense (DOD) shall be registered in the System for Award Management (SAM) database prior to contract award resulting from this solicitation.

SAM replaces CCR/FedReg, and ORCA. Contractors may obtain information on registration and annual confirmation requirements via the SAM accessed through https://www.sam.gov/SAM/ or by calling 866-606-8220.

25. Clauses and provisions from the Federal Acquisition Regulation (FAR) and supplements thereto are incorporated into this document by reference and in full text. Those incorporated by reference have the same force and effect as if they were given in full text.

26. The prevailing wage determinations will be incorporated each performance year of the resultant contract and will be in effect for that entire performance year. The most recent applicable wage determinations are:

DB Wage Decision: IL1800001 Date: 09/07/2018 http://www.wdol.gov/dba Attachment 0002

SCA Wage Determination No. 2005-2175 Revision No. 13 Date of Revision: 6/13/2012 http://www.wdol.gov/sca Attachment 0003

27. This RFP should not be discussed with any Government employee except the Procuring Contracting Officer, Ms. Molly Lewis, or her representative, Megan Frost. Failure to adhere to this restriction may be grounds to declare your firm ineligible for consideration of any award resulting from this competitive acquisition.

28. The Government representative for this RFP is Megan Frost. Any formal communications such as a request for clarifications, discussions, and/or information concerning this solicitation should be submitted to Ms. Frost in writing electronically at megan.k.frost2.civ@mail.mil. Please indicate the RFP number, W52P1J19R5002, in the subject line.

29. NOTICE OF BEST VALUE CRITERIA - All offerors are hereby notified that award of this acquisition will not be based on price alone but on a hybrid of Lowest Price Technically Acceptable (LPTA) IAW FAR 15.101-2 and trade off analysis between price and the nonprice factor(s) stated elsewhere in this document.

Award will be made on an all or none basis. An award will be made to the Offeror whose proposal is determined to be the lowest price technically acceptable to the Government.

Award will be made using formal source selection procedures IAW FAR 15.1 and the Army Source Selection Manual. See Section L and Section M for additional information.

30. The Government reserves the right to: limit the competitive range for the purpose of efficiency, award to other than the offeror with the lowest price, award without discussions.

Section B - Supplies or Services and Prices

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0001 1 Job

Base Period - General Contract Admin

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0002 1 Job

Base Period - Chiller Operations

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0003 1 Job

Base Period - HVAC Scheduled Operations

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0004 1 Job

Base Period - Scheduled PM

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0005 1 Job

Base Period - Predictive PM

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0006 1 Job

Base Period - Unscheduled Work DMO

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0007 1 Job

Base Period - Unscheduled Work PWO

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0008 1 Job

Base Period - Contractor Man Hour Report

FFP

SIX Month Base Period = 31 May 2019 - 30 November 2019

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0101 1 Job

Option Yr 1 - Contract Admin

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0102 1 Job

Option Yr 1 - Chiller Operations

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0103 1 Job

Option Yr 1 - HVAC Scheduled Operation

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0104 1 Job

Option Yr 1 - Scheduled PM

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0105 1 Job

Option Yr 1 - Predictive PM

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0106 1 Job

Option Yr 1 - Unscheduled Work DMO

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0107 1 Job

Option Yr 1 - Unscheduled Work PWO

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0108 1 Job

Option Yr 1 - Contractor Man Hour Report

FFP

Option Year One = 01 December 2019 - 30 November 2020 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0201 1 Job Option Yr 2 - Contractor Admin

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

0202 1 Job Option Yr 2 - Chiller Operations

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0203 1 Job

Option Yr 2 - HVAC Scheduled Operations

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0204 1 Job

Option Yr 2 - HVAC Scheduled PM

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0205 1 Job

Option Yr 2 - Predictive PM

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0206 1 Job

Option Yr 2 - Unscheduled Work DMO

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0207 1 Job

Option Yr 2 - Unscheduled Work PWO

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0208 1 Job

Option Yr 2 - Contractor Man Hour Report

FFP

Option Year Two = 01 December 2020 - 30 November 2021 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0301 1 Job

Option Yr 3 - Contractor Admin

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0302 1 Job

Option Yr 3 - Chiller Operations

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

0303 1 Job Option Yr 3 - HVAC Scheduled Operations

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

0304 1 Job Option Yr 3 - HVAC Scheduled PM

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0305 1 Job

Option Yr 3 - Predictive PM

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0306 1 Job

Option Yr 3 - Unscheduled Work DMO

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0307 1 Job

Option Yr 3 - Unscheduled Work PWO

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0308 1 Job

Option Yr 3 - Contractor Man Hour Report

FFP

Option Year Three = 01 December 2021 - 30 November 2022 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

0401 1 Job Option Yr 4 - Contractor Admin

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

0402 1 Job Option Yr 4 - Chiller Operations

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0403 1 Job

Option Yr 4 - HVAC Scheduled Operations

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0404 1 Job

Option Yr 4 - HVAC Scheduled PM

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0405 1 Job

Option Yr 4 - Predictive PM

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0406 1 Job

Option Yr 4 - Unscheduled Work DMO

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

0407 1 Job Option Yr 4 - Unscheduled Work PWO

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

0408 1 Job Option Yr 4 - Contractor Man Hour Report

FFP

Option Year Four = 01 December 2022 - 30 November 2023 = 12 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0501 1 Job

Option Period 5 - Contractor Admin

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0502 1 Job

Option Period 5 - Chiller Operations

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0503 1 Job

Option Period 5 - HVAC Scheduled Operat.

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0504 1 Job

Option Period 5 - HVAC Scheduled PM

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

0505 1 Job Option Period 5 - Predictive PM

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

0506 1 Job Option Period 5 - Unscheduled Work DMO

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0508 1 Job

Option Period 5 - Contract Man Hr Report

FFP

SIX Month Option Period 5 = 01 December 2023 - 31 May 2024

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0601 1 Job

6 Month Option - Contractor Admin

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months

HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0602 1 Job

6 Month Option - Chiller Operations

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0603 1 Job

6 Month Option - HVAC Scheduled Operats.

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0604 1 Job

6 Month Option - HVAC Scheduled PM

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0605 1 Job

6 Month Option - Predictive PM

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0606 1 Job

6 Month Option - Unscheduled Work DMO

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

PSC CD: S216

NET AMT

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0607 1 Job

6 Month Option - Unscheduled Work PWO

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

FOB: Destination

0608 1 Job 6 Month Option - Contract Man Hr Report

FFP

Six Month Option Period IAW FAR 52.217-8, Option to Extend Services

01 June 2024 - 30 November = 6 months HVAC Mechanical Services

In Accordance With Performance Work Statement and Attachements

Section E - Inspection and Acceptance

SECTION E NARRATIVE

INSPECTION AND ACCEPTANCE SITES.

The inspection and acceptance site for all effort to be provided under this contract shall be Rock Island Arsenal, Rock Island, IL, and any other location where work may be performed, including subcontractor locations. All off-site work must be pre-approved in wirting by Contracting Officer Representative and Procurement Contracting Officer. The Contractor shall assure that appropriate Government access authority is provided for subcontractor locations. The Contractor shall not be relieved of any responsibility to meet contractual requirements under the contract by virtue of Government quality assurance actions at any site.

GOVERNMENT INSPECTION OF SUBCONTRACTORS OR VENDORS.

The Government reserves the right to inspect supplies and services not manufactured or performed by the Contractor. Government inspection shall not constitute acceptance, nor shall it in any way replace Contractor inspection or other acceptable supplies/services. When inspection of subcontractors is performed by the Government, such inspection shall not be used by the Contractor as evidence of effective inspection by the subcontractors. The Contractor shall provide assistance, as necessary, in coordinating Government inspection of subcontractors or vendors.

All documents and data associated with vendors or subcontractors applying to this contract shall be available for review by the Contracting Officer or his representative(s) to determine compliance with the requirements of the contract. Copies of purchasing documents required for Government surveillance purposes shall be furnished by the Contractor as requested by the Contracting Officer or his representative(s).

INSPECTION AND ACCEPTANCE PROCEDURES.

The Government will have the right to conduct surveillance of the Contractor's performance (including services rendered and any documentation or written material in support thereof) under this contract. The Contracting Officer will conduct such surveillance of the Contractor's performance under the contract as determined appropriate and necessary. The Contracting Officer shall exercise these responsibilities through his staff and in connection with any related agencies necessary to insure that the standards set forth herein are met.

The requirements set forth in this contract shall be the criteria by which the Contractor's performance will be inspected. These requirements may either be in full text or incorporated by reference (regulations, technical manuals, etc.).

Government surveillance personnel will monitor the Contractor's performance by physical inspection, review of reports/documentation, and validated customer complaints.

When deficiencies are found by Government surveillance personnel, the Contractor will be so advised verbally or in writing. As directed by the Contracting Officer or his authorized representative(s), the Contractor shall promptly take the necessary action to correct the deficiency and/or take necessary action to ensure against any future deficiency.

CONTRACTOR QUALITY CONTROL.

The Contractor shall establish a written Quality Control Plan (QCP) and shall submit the Plan for approval by the Government. (Note: Any deviation from the Quality Control Plan submitted as part of the contractor’s technical proposal shall be fully explained.) The plan, as approved by the Government, shall be implemented and functional at completion of the transition period specified in the contract.

The Contractor's Quality Control Plan shall be constructed in such a manner that the inspection for each attachment is addressed independently of each other allowing for ease of inspection and updating of the plan as required. The plan shall provide that all supplies and services, whether processed by the Contractor or procured from subcontractors or vendors are inspected and/or tested to verify conformance to contract requirements. The plan shall include, as a minimum, the following:

a. An inspection system covering all work tasks and services stated in the contract to include supplies.

It shall specify areas to be inspected/tested on either a scheduled or unscheduled basis; the manner in which inspections/tests are to be conducted; the position title of the individuals who shall to the inspections/tests; and acceptance/rejection criteria. Sampling inspection procedures, if used, will be subject to approval by the Government.

b. A method of documenting, evaluating, and enforcing the results of the inspections/tests that are conducted. The Contractor shall maintain adequate records of all inspections/tests to indicate, as a minimum, the nature (when, where, what) and number of observations made; the name of the person conducting the tests/inspections; the number, location, and type of deficiencies found;

approval/rejection status; and the corrective action taken for deficiencies.

c. A method of identifying deficiencies in the quality of services performed before the level of performance becomes unacceptable. Process control procedures and quality data analysis techniques shall be utilized by the Contractor.

d. Corrective action procedures for deficiencies and measures to prevent recurrence of such deficiencies. The Quality Control Plan itself shall be evaluated for adequacy and changed, if required, by the Contractor as part of all normal corrective action evaluations by the Contractor.

e. Procedures for assuring that the latest applicable drawings, specifications, and other technical instructions required by the contract, to include plans developed by the Contractor are used for accomplishing the required tasks/services and the associated inspections/tests.

f. A customer complaint/feedback system for all areas specified by the Government in the contract and any other areas determined essential by the Contractor. The Contractor shall establish a documented system providing for direct access by the Government customer to the Contractor. The complaint/feedback system shall include the Contractor's procedures for evaluating and responding to complaints by the customer.

g. A calibration system for meters, gauges (fixed or independent), and other measuring and testing equipment. The calibration system shall be in accordance with MIL-STD-45662, Calibration System Requirements. Contractor measuring and testing equipment shall be made available to Government representatives upon request, as shall be Contractor operators if required.

h. A list of Contractor personnel, including telephone number(s) authorized to interface daily with Government personnel concerning deficiencies in work or services performed.

After initial approval of the Contractor's Quality Control Plan by the Government, the Contractor shall notify in writing through the COR to the Contracting Officer of any proposed changes to the Plan. No changes shall be implemented without written approval by the Contracting Officer. Evaluation and verification inspection of the plan will be accomplished by the Government at any time during contract performance to determine the adequacy of and compliance with the procedures of the plan. The Government will not unduly delay work. Plan inadequacies will be reported in writing by the Government to the Contractor for correction. After correction, the plan shall be resubmitted through the COR to the Contracting Officer for evaluation/approval. All corrective actions shall be documented by the Contractor. Lack of response or inadequate corrections by the Contractor may result in an equitable adjustment in contract price in favor of the Government as determined by the Contracting Officer.

The Contractor shall review the plan in its entirety once a year, as a minimum, to ensure that the plan is current and complete. Any changes to the plan as a result of this review shall be submitted in writing to the Contracting Officer for review and approval.

PERFORMANCE EVALUATION MEETINGS.

The Contractor shall meet with the COR weekly during the transition period and during the first month of contract performance. Meetings will be held thereafter as required to discuss performance, but at least once every 30 calendar days. Meetings may be initiated by the COR or by the Contractor. Mutual effort shall be made to resolve any and all problems identified. The Contractor shall prepare and furnish to the COR copies of written minutes of their meetings which shall be signed by the COR and the contractor.

PERFORMANCE REQUIRMENTS SUMMARIES (PRS).

The purpose of the PRS is to:

a. List those contract requirements and standards which are considered most critical to performance of the contract.

b. Show the maximum allowable degree of deviation that the Government will allow before performance will be considered unsatisfactory.

c. Explain how the Government intends to conduct surveillance of the Contractor's performance.

d. Provide workload data for contract proposal and performance purposes.

The format of the PRS is as follows:

a. Required Service. This column lists the major work performance requirements. It does not list all performance requirements of the contract. In other words, the PRSs are not all-inclusive, but rather lists major work performance requirements. The Contractor shall perform all requirements stated in or referred to in the contract regardless of whether they are listed in the PRSs.

b. Paragraph Number/Standard. This column lists the paragraph number of the statements of work where the work performance requirements are found. This column also lists the major standards for the required service.

c. Maximum Allowable Degree of Deviation from Requirement. This column lists the service lot and the lot size of each required service. It also lists the acceptable quality level (AQL). The AQL does not allow the Contractor to knowingly and intentionally offer defective services. The AQL is the maximum number or percent of defects or defectives that is considered satisfactory for each service lot before the Government will reject the lot. If the service complies with the contractual requirements, then that service will be considered acceptable. If the service does not comply with the contractual requirements, then that service will be considered to be unacceptable and will be counted when determining whether the AQL has been exceeded. Regardless of whether a service lot is deemed acceptable or unacceptable, all services that fail to comply with contract requirements shall be reperformed within 24 hours by the Contractor as directed by the COR/KO, until they comply with contract requirements.

d. Normal Method of Surveillance. This column reflects the Government's normal method(s) of surveying each required service. The Government may unilaterally alter its method, level, and frequency of surveillance at any time. Altering the method, level, and frequency of surveillance will not entitle the Contractor to an equitable adjustment of the contract terms, estimated costs, or fees. The following are the primary, normal methods of surveillance to be used by the Government.

e. Planned sampling is designed to inspect some part, but not all, of the services being performed. Work process outputs are selected in accordance with subjective criteria established in the Government surveillance plan. Because the observations are not selected randomly, comparisons of quality cannot be made between the lot sample and the entire lot as is done under random sampling.

f. Random sampling allows the Government to monitor a small sample size and compare those results to the entire population of the lot. Random sampling will be conducted in accordance with ANSI/ASQC Z1.4.

g. One hundred (100) percent inspection provides for the inspection of all services.

h. Validated customer complaints method is initiated by the receipt of customer complaints. If the complaint is validated, it will result in a required service being classified unacceptable.

i. Procedures Evaluation (PE) is an inspection method that verifies that the Contractor is complying with written procedures and what the procedures are accomplishing their intended purpose; the procedures to be evaluated include plans submitted to the Government and documents (i.e. standing operating procedures, desk procedures, etc.) used internally by the Contractor.

j. Unit Description. This column describes workload units to be bid/purchased for each required service.

k. Yearly Projected Workload. This column cites the number of units to be bid/purchased for each required service. This workload applies for the first contract year and each succeeding contract year; it is the yearly workload for the contract.

l. Optional Yearly Additional Units. This column cites potential units that are to be bid on a per unit and per year basis. Units may be purchased as needed by the Government on an individual unit basis when the yearly projected workload (see (7) above) is exceeded.

NOTE: The noted workload data supports each required service and will be used for bidding purposes by the Contractor as well as for proposal analysis by the Government. Detailed workload data is available for review at Rock Island Arsenal.

PERFORMANCE CRITERIA.

Acceptable and unacceptable contract performance will be determined as follows: The Contract Performance Specialist (CPS) will use the Lot Size, Sample Size, and Acceptable Quality Level (AQL) to determine the maximum number or percentage of defects/defectives that can be identified before a Contractor's performance is considered to be unsatisfactory. When the percentage or number of the defects/defectives identified in the Contractor's performance exceeds the allowable number/percentage of defects/defectives for a particular required service lot, the Contractor shall be required to respond to a Contract Discrepancy Report (CDR). The CDR will require the contractor to explain, in writing, why performance was unsatisfactory, how performance shall be returned to acceptable levels, and how a recurrent of the problem shall be prevented in the future. In accordance with the Government Actions Section of the CDR, the Contractor may not be paid for that portion of performance determined to be unsatisfactory.

PAYMENT DEDUCTION.

Contractor performance will be compared to contract requirements and AQLs using the Government qualityassurance surveillance plan. If the performance in any required service lot is unsatisfactory, and poor performance is clearly the fault of the Contractor, monthly payments to the Contractor may be reduced by the Contracting Officer. Deductions may also be taken by the Government for defective individual services not satisfactorily performed and/or reperformed by the Contractor based on such factors to include but not limited to criticality, recurrences, and administrative costs to the Government; deductions will be made based on the example given for requirements not surveyed by random sampling. The amount of money to be permanently deducted for unsatisfactory performance will be computed as follows based on the method of surveillance used by the Government.

CALCULATION EXAMPLES

EXAMPLE 1:

Work found unsatisfactory and not reperformed by anyone, or work not performed at all: 10% of service value of observed defects for administrative costs plus cost of service value lost.

Payment Analysis Requirement = One Service Unit Surveillance = 100 Percent Inspection CLIN Value($) = $10,000.00 Population = 50 units Defects = 10 units

1. Cost of Service = $10,000.00/50 units

= $200.00 per unit

2. Service Value Lost = Number of Defects x Cost of Service = 10 x $200.00 = $2,000.00

3. Admin. Cost = Administrative Deduction % x Service Value

= 10% x $2,000.00 = $200.00

4. Deduction = Administrative Cost = Service Value Lost = $200.00 + $2,000.00 = $2,200.00

EXAMPLE 2:

Work found unsatisfactory and reperformed by the contractor: 10% of service value of observed defects for administrative costs.

Payment Analysis Requirement = One Service Unit Surveillance = 100 Percent Inspection CLIN Value($) = $10,000.00 Population = 50 units Defects = 10 units

1. Cost of Service = $10,000.00/50 units = $200.00 per unit

2. Service Value Lost = Number of Defects x Cost of Service = 10 x $200.00 = $2,000.00

3. Admin. Cost = Administrative Deduction % x Service Value = 10% x $2,000.00 = $200.00

4. Deduction = Administrative Cost = $200.00

EXAMPLE 3:

Work found unsatisfactory and reperformed by the Government: 20% of service value of observed defects for administrative costs plus cost of service (Government cost to reperform).

Payment Analysis Requirement = One Service Unit Surveillance = 100 Percent Inspection CLIN Value($) = $10,000.00 Population = 50 units Defects = 10 units Units Govt. Cost = $2,500.00

1. Cost of Service = $10,000.00/50 units = $200.00 per unit

2. Service Value Lost = Number of Defects x Cost of Service = 10 x $200.00 = $2,000.00

3. Admin. Cost = Administrative Deduction % x Service Value = 20% x $2,000.00 = $400.00

4. Government Cost = $2,500.00

5. Deduction = Administrative Cost + Govt. Cost to Reperform = $400.00 + $2,500.00 = $2,900.00

EXAMPLE 4:

Work found unsatisfactory and reperformed by another contractor: 20% of service value of observed defects for administrative costs plus the contract price for the additional contractor.

Payment Analysis Requirement = One Service Unit Surveillance = 100 Percent Inspection CLIN Value($) = $10,000.00 Population = 50 units Defects = 10 units Units Govt. Cost = $2,800.00

2. Service Value Lost = Number of Defects x Cost of Service

= 10 x $200.00 = $2,000.00

3. Admin. Cost = Administrative Deduction % x Service Value = 20% x $2,000.00 = $400.00

4. Deduction = Administrative Cost + New Cont. Cost to Reperform

= $400.00 + $2,800.00 = $3,200.00

EXAMPLE 5:

Work found unsatisfactory and not reperformed by anyone, or work not performed at all: 10% of service value of sample defects for administrative costs, plus cost of service value lost (observed and projected defects).

Deduction Projection Analysis

Requirement = One Service Unit Table 1 & ll-A Surveillance = Random Sampling Normal Inspection CLIN Value($) = $10,000.00 Sample Size Code Letter = D Population (lot size) = 50 Units Sample Size - 8 AQL = 1.5% Reject No. = 1 Defects = 2 Units

1. Cost of Service = $10,000.00/50 units = $200.00 per unit

2. Observed Defect Rate (ODR) = Number of Defects/Sample Size = 2/8 = .25 = 25%

3. Un-inspected Units = Lot Size - Sample Size = 50 - 8 = 42

4. Projected Defects = Un-inspected Units x ODR = 42 x .25 = 10.5 (round down to nearest whole number) = 10

5. Total Defects = Observed Defects + Projected Defects = 2 + 10 = 12

6. Service Value Lost = Number of Defects x Cost of Service = 12 x $200.00 = $2,400.00

7. Admin. Cost = Administrative Deduction % x Service Value = Observed Defects = 10% x $400.00 = $40.00

8. Deduction Projection = Administrative Cost + Service Value Lost = $40.00 + $2,400.00 = $2,440.00

EXAMPLE 6:

Work found unsatisfactory and observed defects re-performed by the contractor: 10% of service value of sample defects for administrative costs, plus cost of service value lost for projected defects.

Deduction Projection Analysis

Requirement = One Service Unit Table 1 & ll-A Surveillance = Random Sampling Normal Inspection CLIN Value($) = $10,000.00 Sample Size Code Letter = D Population (lot size) = 50 Units Sample Size - 8 AQL = 1.5% Reject No. = 1 Defects = 2 Units

= $200.00 per unit

2. Observed Defect Rate (ODR) = Number of Defects/Sample Size = 2/8 = .25 = 25%

3. Un-inspected Units = Lot Size - Sample Size = 50 - 8 = 42

4. Projected Defects = Un-inspected Units x ODR = 42 x .25 = 10.5 (round down to nearest whole number) = 10

5. Projected Service Value Lost = Projected Number of Defects x Cost of Service = 10 x $200.00 = $2,000.00

6. Admin. Cost = Administrative Deduction % x Service Value = Observed Defects = 10% x $400.00 = $40.00

7. Deduction Projection = Administrative Cost + Service Value Lost = $40.00 + $2,000.00 = $2,040.00

EXAMPLE 7:

Work found unsatisfactory and observed defects re-performed by the Government: 20% of service value of sample defects for administrative costs, plus Government cost to re-perform, and plus the cost of service value lost for projected defects.

Deduction Projection Analysis

Requirement = One Service Unit Table 1 & ll-A Surveillance = Random Sampling Normal Inspection CLIN Value($) = $10,000.00 Sample Size Code Letter = D Population (lot size) = 50 Units Sample Size - 8 AQL = 1.5% Reject No. = 1 Defects = 2 Units Govt. Cost = $500.00

1. Cost of Service = $10,000.00/50 units = $200.00 per unit

2. Observed Defect Rate (ODR) = Number of Defects/Sample Size = 2/8 = .25 = 25%

3. Un-inspected Units = Lot Size - Sample Size = 50 - 8 = 42

4. Projected Defects = Un-inspected Units x ODR = 42 x .25 = 10.5 (round down to nearest whole number) = 10

5. Total Defects = Observed Defects + Projected Defects = 2 + 10 = 12

6. Projected Service Value Lost = Projected Number of Defects x Cost of Service = 10 x…