Exhibit_C_-_Performance_Requiremnts_Summary.pdf

EXHIBIT C

PERFORMANCE REQUIREMENTS SUMMARY

1. PURPOSE: The purpose of this exhibit is to:

1.1 List the contract requirements considered most critical to acceptable contract performance (required service).

These requirements are not to be construed as the only performance indicators to be utilized by the Contracting Officer in determining satisfactory performance of the contract. As Contract Discrepancy Reports (CDRs) are issued for other than performance indicators listed here, the criticalness of CDRs will be determined by the Contracting Officer and a corresponding deduction for nonperformance will be assessed.

1.2 Summarize or establish the standard for perfect performance required by the contract for each required service (standard).

1.3 Establish the maximum allowable degree of deviation from perfect performance for each requirement (Acceptable Quality Level-AQL) that shall be allowed by the Government before contract performance is considered unsatisfactory.

1.4 Explain the quality assurance method the Government will use for each required service to evaluate the Contractor's performance in meeting the contract requirements (Method of Surveillance).

1.5 Show the value or percentage of the contract price that each listed required service represents.

1.6 Define the procedure the Government will use in reducing the Contractor's weekly payment if satisfactory performance is not rendered by the Contractor.

2. QUALITY ASSURANCE METHODS: The Government's primary quality assurance procedures (method of surveillance) are based on random sampling of the critical output products (required service) of the contract using the concepts of ASQC Z1.4. Some contract requirements will, however, be surveilled by using Government or Contractor reports, by periodically reviewing the Contractor's work (i.e., monthly, quarterly, semi-annually), by using other methods of surveillance (planned sampling or 100% inspection), or by using a combination of these methods.

3. ACCEPTANCE CRITERIA: The criteria for acceptable and unacceptable performance under this contract shall be as follows:

3.1 Required Services Surveilled by Random Sampling: Criteria shall be as derived from ASQC Z1.4 based on the lot size, sample size, and acceptable quality level (AQL) for each required service. When the number of defects in the Contractor's performance discovered by the Quality Assurance Evaluation (QAE) exceeds the acceptable level, the Contractor shall be required to complete a CDR. The CDR requires the Contractor to explain in writing why performance was unacceptable, how performance shall be returned to acceptable levels, and how recurrence of the problem shall be prevented in the future.

3.2 Required Services Surveilled by Other than Random Sampling: The criteria for non-sampled requirement were established based upon the level of performance deemed acceptable to the Government. The use of the CDR as described above applies to these requirements as well.

4. DEDUCTIONS: All work not in compliance with the contract requirements is subject to deductions. Payments to the Contractor will be reduced for documented defects using the following methods.

4.1 Each month, the Contractor's performance will be compared to contract standards and acceptable quality levels using the Government's Quality Assurance Surveillance Plan (QASP).

4.2 When the Contractor's performance level as determined by the number of defects and acceptable quality levels warrants a deduction and the poor performance is not caused by reasons beyond the control of the Contractor, the amount of money to be withheld or permanently deducted from the amount otherwise payable to the Contractor will be computed as follows:

4.2.1 Defect Deduct. For performance measured by random sampling, the deduction is equal to the total price for service for that quarter times the percent of the sample found defective. For performance measured by other than random sampling, the deduction is equal to the total price for service for that quarter times the percent of the entire lot found defective. Examples of defect deducts are as follows:

Example 1:

IF: Timeliness of Response is unsatisfactory (AQL of 1% is exceeded), AND: Method of surveillance is 100% Inspection, AND: Cost for service, i.e., total of applicable unit prices for that quarter, is $ 2000

AND: Value of response time is 20%, AND: Lot size is 10, (10 cleanings)

AND: Number of defects is 2, (Exceeded specified response time)

THEN: Deduction from the amount payable is computed:

Cost for service for this quarter $ 2,000

X Value of required service .20

Subtotal $ 400

X Percent of lot defective .20 (2/10)

Deduction is $ 80

Example 2:

IF: Quality of ductwork cleaning is unsatisfactory (AQL of 1% is exceeded), AND: Method of surveillance is 100% Inspection, AND: Cost for service, i.e., total of applicable unit prices for that quarter, is $ 2000

AND: Value of quality is 50%, AND: Lot size is 10, (10 cleanings)

AND: Number of defects is 2, (Cleaning was not performed as specified)

THEN: Deduction from the amount payable is computed:

Cost for service for this quarter $ 2,000

X Value of required service .50

Subtotal $ 1000

X Percent of lot defective .20 (2/10)

Deduction is $ 200

5. PHASE-IN PERIOD: At the beginning of performance under a contract (not option periods), it is sometimes necessary to have a phase-in period. During the phase-in period, there may be a different acceptable quality level (AQL), or the percentage of total contract price for a particular function may be different for certain required services during the phase-in period. The figures to be used during the phase-in period are indicated in parentheses in the Performance Requirements Summary Table.

6. QUALITY AND TIMELINESS: Certain required services under this contract may be subject to evaluation for both quality of service and timeliness of service. Note that the acceptable quality level (AQL) for quality of service may be different than the AQL for timeliness of service. The figures to be used for AQL for quality of service and timeliness of service are indicated in the Performance Requirements Summary Table.

7. OTHER RIGHTS: The rights of the Government and remedies described in the Performance Requirements Summary are in addition to all other rights and remedies set forth in this solicitation. Any deductions pursuant to the PRS shall reflect the reduced value of services performed under the present contract. The Contractor shall not be relieved of full performance of the services hereunder and may be terminated for default based upon inadequate performance of service even if a deduction was previously taken for inadequate performance. The Government may modify the type and frequency of inspection of items surveyed based on the Contractor's performance.

8. EXPECTED PERFORMANCE: The enumeration of critical services and allowable degrees of deviation from perfect performance in the Performance Requirements Summary are not intended and should in no way be construed to indicate that the Government has bargained for anything less than satisfactory performance of all required services by the Contractor.

9. REPERFORMANCE: The Government reserves the right to require the Contractor to reperform any or all defective work, or perform late any incomplete or nonperformance disclosed by Government inspection or customer complaint. The Contractor will be given 5 days to reperform work evaluated as unsatisfactory when applicable.

PERFORMANCE REQUIREMENTS SUMMARY TABLE

Value of Surveillance

REQUIRED SERVICE STANDARD METHOD AQL SERVICE

1. Provide COR and building P.O.C. notification and respond to perform as specified. (timeliness)

Para.

1.11.2

Random Sampling (1%) 5%

2. Perform cleaning and maintenance of ductwork and fans as specified.

(quality)

Para. 5.1 Random Sampling (1%) 30%

3. Clean and/or replace grease filters, provide cleaning ports, and replace cleaning port covers (quality)

Para. 5.1.2 5.1.4 5.1.5

Random Sampling (1%) 10%

4. Inspect fire extinguishing system and fire damper system Para.

5.3

Random Sampling (1%) 30%

5. Perform record keeping and reporting as specified.

(quality and timeliness)

Para. 5.5 Random Sampling (1%) 5%