Exhibit_D,_Performance_Requirement_Summary.pdf

EXHIBIT D

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 Of-ficer 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 (Accepta-ble Quality Level-AQL) that shall be allowed by the Government before contract performance is considered unsatis-factory.

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

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

1.6 Define the procedure the Government will use in reducing the Contractor's monthly payment if satisfactory per-formance 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 Con-tractor reports, by periodically reviewing the Contractor's work (i.e., monthly, quarterly, semi-annually), or by using other methods of surveillance (planned sampling or 100% inspection).

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 de-scribed above applies to these requirements as well.

4. DEDUCTIONS: All work not in compliance with the contract requirements is subject to deductions plus an ad-ministrative cost. Monthly 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 monthly amount otherwise payable to the Con-tractor will be computed as follows:

4.2.1 Defect Deduct: For areas measured by random sampling, the deduction is equal to the monthly line item price times the percentage of the function represented by the required service times the percent of the sample found defec-tive. For areas measured by other than random sampling, the deduction is equal to the monthly line item price times the percentage of the function represented by the required service times the percent of the entire lot found defective.

Examples of defect deducts are as follows:

Example 1:

If: Quality or timeliness of required service is unsatisfactory (AQL of 4% is ex-ceeded), And: Method of surveillance is random sampling, And: Contract line item price is $10,000 per month, And: Percent of total monthly Price of required service is 10%, (413 machines with

41 repair orders)

And: Lot size is 41, And: Sample size is 13, And: Number of defects in the sample is 2, Then: Deduction from the monthly amount payable is computed:

Contract price per month is $10,000 Times percent of contract line item 10% Equals $1,000 Times deduct percentage .55 Equals $550 Times percent of sample defective .15 (2/13) Deduction is $84.62

Example 2:

If: Timeliness of required service is unsatisfactory (AQL of 4% is exceeded), And: Method of surveillance is random sampling, And: Contract price is $10,000 per month, And: Contract line item percentage 100%, 413 machines, And: Percent of total monthly price of required service is 55%, And: Lot size is 413, And: The sample size is 50

And: Number of defects is 6, Then: Deduction from the monthly amount payable is computed:

Contract price per month is $10,000 Times deduct percentage .55 Equals $5,500 Times percent of sample defective .12 (6/50) Deduction is $660

4.2.2 Administrative Costs: When machines are not repaired or replaced in accordance with paragraphs 1.3.2 or installed in accordance with paragraph 1.2 as determined by the Government inspector's initial investigation, addi-tional investigations will be needed. The Government inspector will need to perform an additional investigation at the end of the next duty day following the initial investigation, and may need to perform weekly follow-up investi-gations thereafter until the machine is repaired, replaced, or installed. A deduction will be taken for the administra-tive costs for each additional investigation. This deduction is in addition to the defect deduction and will be based on actual administrative costs incurred. The hourly rates used will be updated to current levels at each option year.

An example of a deduction for administrative costs is as follows:

Inspector's Transportation Costs 1 hour x $2.30/hour = $2.30 Inspector’s Labor 2 hours x $15.45/hour = $30.90 Clerk Typist’s Labor 1 hour x $9.25/hour = $9.25 Inspector Supervisor’s Labor 15 minutes x $19.70/hour = $4.93 C/ED Review 15 minutes x $23.00/hour = $5.75 DPW Review 15 minutes x $50.00/hour = $12.50 MICC Contract Administrator’s Labor 1 hour x $11.34/hour = $11.34 Total Deductions $74.67

5. PHASE-IN/PHASE-OUT PERIOD: During the first two and last two months of performance under this contract, the percentage of total monthly contract price is different for certain required services due to the phase-in/phase-out period. The figures to be used during these phase-in/phase-out periods are indicated in the Performance Require-ments 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. Specifically, the Government reserves its rights under the Inspection of Services and Termination for Default clauses. 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 per-formance of service even if a deduction was previously taken for inadequate performance. The Government may modify the type and frequency of inspection of items not surveyed by random sampling.

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 ser-vices by the Contractor.

9. REPERFORMANCE: The Government reserved the right to require the Contractor to reperform any or all de-fective work, or perform late any incomplete or nonperformance disclosed by Government inspection or customer complaint. Rework or completion of incomplete or nonperformed work discovered during Government inspection does not relieve the Contractor of required completion time as stated within the contract. If the completion time AQL on the PRS is exceeded during that performance period, the Contractor is still subject to a contract price de-duction. Acceptable reperformed work will be counted towards meeting the AQL for the specific period in which the inspection was made. Refusal by the Contractor to reperform any or all defective work, or perform late any in-complete or nonperformance may be reason for action under the Termination for Default clause.

PERFORMANCE REQUIREMENTS SUMMARY TABLE

PHASE-IN TRANSITION PERIOD ONLY

Required Service Para.

No. Standard AQL Method Price %

Install washers and dry-ers.

5.2.1 5.2.2

All machines are installed and fully operational within one duty day of their scheduled installa-tion.

4.0 100% In-spection

90% CLIN

Maintain and repair ma-chines listed on Service Order Logs. Relocate as required by modification.

5.4.1 5.4.2 5.4.3

Machines are repaired or replaced by the end of the next duty day upon receipt of the Service Order Log.

Machines are added or removed as required by modifications within seven days of contract modification.

4.0 Random Sampling

10% CLIN

Times per-centage of machines in repair lot

ALL EXCEPT PHASE-IN AND PHASE-OUT TRANSITION PERIODS

No.

Standard AQL Method Price %

Repair or replace ma-chines listed on Service Order Logs (Quality and

Timeliness).

5.4.1 5.4.2 5.4.3

Machines are repaired or re-placed by the end of the next duty day upon receipt of the re-pair worksheet. No more than 1 machine per building is inopera-ble at the same time for more than one day. All documentation and invoicing is properly submit-ted.

4.0 Random Sampling

75% CLIN

Times percent-age of ma-chines in repair lot

Remove and install ma-chines as required by modification of the con-tract (Timeliness).

5.4.1 5.4.2 5.4.3

Machines are installed or re-moved as applicable within sev-en working days of contract modification. All documentation and invoicing is properly submit-ted.

4.0 Random Sampling

25% CLIN

Times percent-age of ma-chines installed or removed

PHASE-OUT TRANSITION PERIOD ONLY

No.

Standard AQL Method Price %

Remove washers and dryers (Timeliness)

5.5.1 5.5.2

All machines are removed within one duty day of the scheduled removal. All noti-fications of removal and in-voicing completed as re-quired.

4.0 100% Inspec-tion

90% CLIN

Prior to removal, main-tain and repair all out-going contractor owned machines (Quality).

5.4.1 5.4.2 5.4.3

Machines maintained and repaired in accordance with paragraphs 5.4.1, 5.4.2, &

5.4.2.

4.0 Random Sam-

pling

10% CLIN

Times per-centage of machines in repair lot