W911SA-15-R-0014_Attachment3_Exhibit1a_PRSDescription.docx

ATTACHMENT 07: EXHIBIT 1A PRS PART 1 DESCRIPTION

EXHIBIT 3 ATTACHMENT 1A

PRS PART 1 DESCRIPTION

63RD LOGISTICS READINESS SUPPORT

PERFORMANCE REQUIREMENTS SUMMARY (PRS) (Part 1)

1. GENERAL. The Performance Requirements Summaries in this section will be used to measure performance of services for the purposes of determining the continuation of service under this contract and any applicable payment reductions. The rights of the Government and remedies described in this section are in addition to all other rights and remedies set forth in this solicitation. The Government reserves its right under the "Inspection of Services" and "Termination for Default" clauses of this contract. The Government has the right to inspect all services called for by the contract, to the extent practicable at all times and places during the term of the contract. Any reductions pursuant to the PRS shall reflect the reduced value of service performed under this contract. The Contractor shall not be relieved of full performance of the services hereunder and the contract may be terminated for default based upon inadequate performance of services even if a reduction was previously taken for inadequate performance.

1.1 INDIVIDUAL TASKS AND OTHER SERVICES. Requirements not included in the PRS remain subject to separate quality assurance evaluations under the "Inspection of Services" clause of this contract. The absence from the PRS of any contract requirement, however, shall not detract from its enforceability or limit the rights or remedies of the Government under any provision of this contract.

1.2 EXPLANTION OF THE PRS. The purpose of the PRS is to list the contract requirements considered most critical to acceptable contract performance and to show the Acceptable Level of Performance (ALP), maximum allowable degree of deviation from perfect performance for each requirement that shall be allowed before contract performance is considered unacceptable. EXHIBIT 1B Performance Requirements Summary (PRS) (Part 2 Description) sets forth the performance standards, the method of surveillance the Government will use to evaluate the Contractor’s performance in meeting the contract requirements and the Consequences of Failure to Meet Performance Standard where applicable. EXHIBIT 1A Performance Requirements Summary (PRS) (Part 1) defines the procedure the Government will use in reducing the Contractor’s monthly payment if acceptable performance is not rendered by the Contractor. Due to the interrelated requirements of the logistics activity, many tasks will have direct impact on the overall acceptability of a single required service. Therefore, the PRS has been developed, where possible, to cover required services rather than the individual performance of tasks. Each listed service will pass or fail based on the acceptability of the tasks, which comprise that service.

2. EXHIBIT 1B PERFORMANCE REQUIREMENTS SUMMARY (Part 2). The PRS Table included in this section will provide the following information:

2.1 COLUMN A. Column A lists the PRS Number for reference.

2.2 COLUMN B. Column B lists the Performance Work Statement (PWS) paragraph which details the requirements for each listed service.

2.3 COLUMN C. Column C Performance Standard, states the required standard that will be used to measure performance for each service.

2.4 COLUMN D. Column D lists the Acceptable Level of Performance which is the maximum allowable degree of deviation from the requirement that may occur for each listed service before a contract discrepancy report will be issued. The Contractor may also receive less than 100% of the maximum payment for the listed service.

2.5 COLUMN E. Column E lists the Method of Surveillance the Government will use to evaluate the Contractor‘s performance of each listed service.

2.6 COLUMN F. Column F sets forth the Consequences of Failure to Meet Performance Standard, where applicable, that will be used to complete past performance reports and/or to calculate the amount of payment reduction for failure to meet the performance standard.

2.7 COLUMN G. Column G, Workload Indicator(s), lists the contract requirements by service outputs which breakdown the contract in areas considered necessary for acceptable contract performance. All outputs are to be per RSC; do not combine the RSC data.

3. INSPECTION METHODS. The Government may use a variety of surveillance methods to evaluate the Contractor‘s performance. The Government may change the type and frequency of inspections as it deems necessary. Both scheduled and unscheduled surveillance will be used to look at the total or parts of performance. Valid customer complaints will not be added to the defective samples found under random or 100% sampling for the purposes of reductions in contract payment. The methods of surveillance that may be used are listed at Paragraphs 3.1 - 3.4 below and described in Performance Work Statement Part 2, Definitions/Acronyms. For the purpose of this contract, the word "sampling" is synonymous with the word "inspection".

3.1 ONE HUNDRED PERCENT (100%) INSPECTION

3.2. RANDOM SAMPLING

3.3 PERIODIC SAMPLING

3.4 CUSTOMER FEEDBACK

4. PERFORMANCE EVALUATIONS. The Contractor shall have work complete and ready for inspection in accordance with all terms of the contract. The Government will perform quality assurance inspections to measure overall performance and determine contract payment. Government inspections will be made according to the appropriate surveillance methods, to compare Contractor‘s performance to contract requirements and standards. Each work location as identified in Exhibit 5 will be evaluated as a separate entity. The Contractor’s records and records of quality control inspections shall be kept and made available to the Government throughout the contract performance period. The Alternate Contracting Officer Representative (ACOR) is inspecting the work as it is being accomplished but is frequently inspecting prior months work after the invoice has been received, reviewed, approved and forwarded for payment. Reduction in payment will be calculated using the monthly invoice amount for the month the work was accomplished. The payment reduction will be taken from the monthly invoice for the month during which the Contract Discrepancy Report (CDR) is closed.

5. MEASURING PERFORMANCE. The Government will use the PRS in this contract to measure contract performance. Each work location as identified in Exhibit 5 will be evaluated as a separate entity. The Military Standard 105E and Tables will be used to determine the number of inspections and the number of allowable defects each month. Contract performance will be measured each month by comparing the number of recorded defects to the number of allowable defects as determined by the ALP per work location. Defects are the Contractor‘s failure to meet contract performance standards. One defect constitutes failure of one inspection of one service listed on the PRS during an evaluation period.

5.1 PERFORMANCE TOLERANCE FOR RANDOM SAMPLING. When the method of surveillance of a service listed on the PRS is random sampling, tables in Military Standard 105E will be used to determine the number of samples to be inspected and the number of allowable defects for when each service should be accepted or rejected each month.

5.2 PERFORMANCE TOLERANCE FOR PERIODIC SAMPLING. When the method of surveillance of a service listed on the PRS is periodic sampling the following procedure will be used to determine when that service should be accepted or rejected. The ALP will be multiplied by the sample size to determine the number of allowable defects. One additional defect will be the point at which the service will be rendered defective.

5.3 ACCEPTABLE PERFORMANCE. Services listed on the PRS will be acceptable when the number of recorded defects does not exceed the number of allowable defects, whether random sampling, periodic sampling, 100% Inspection, or Customer Feedback inspection methods were used.

5.4 UNACCEPTABLE PERFORMANCE. Services listed on the PRS will be unacceptable and rated defective when the number of recorded defects exceeds the allowable number of defects, whether random sampling, periodic sampling, 100% Inspection, or Customer Feedback inspection methods were used. Once a defect has been identified it remains a defect, regardless if it has been corrected.

5.4.1 Response to Concerns Noted by the Government: When the COR brings concerns to the Contractor, the Contractor shall respond in the format required by the COR.

5.4.2 Contract Discrepancy Report (CDR). When a PRS service is defective, the Government will issue the Contractor a CDR. The Contractor shall reply in writing by the suspense date explaining why performance was unacceptable, how the discrepancy was or will be corrected, and how recurrence of the problem will be prevented in the future. The Contracting Officer will evaluate the Contractor‘s response and determine if it is acceptable or if other remedies; e.g., reduction in payment, or contract termination are appropriate.

5.4.3 Customer Complaint. When a Customer is dissatisfied with the quality of a required service the Alternate Contracting Officer Representative (ACOR) will forward the Customer Complaint to the Contractor for response. The Contractor will reply in writing by the suspense date explaining why performance was unacceptable, how the discrepancy was or will be corrected, and how recurrence of the problem will be prevented in the future. The number of Customer Complaints received during a given evaluation period will be compared to the ALP to determine if the performance standard was met.

5.4.4 Incidental Observations. When a deficiency is identified by scheduled, other than scheduled inspection, or customer complaint the Alternate Contracting Officer Representative (ACOR) will forward the Incidental Observation to the Contractor for response. The Contractor shall reply in writing by the suspense date explaining why performance was unacceptable, how the discrepancy was or will be corrected, and how recurrence of the problem will be prevented in the future. Discrepancies identified on Incidental Observations will not be added to the defective samples found under random sampling for the purposes of reductions in contract payment. However, if the discrepancy is not corrected by the time a scheduled inspection is conducted and it is found to be defective within selected samples, it will be counted as a defect for purposes of reduction in contract payment.

6. ACKNOWLEDGE DEFECTS. The Contractor will acknowledge defective work identified during inspections conducted by the Alternate Contracting Officer Representative (ACOR). The Contractor will provide a list of names of contract employees authorized to acknowledge defective work. The Contractor’s signature on the inspection results will signify acknowledgement of the items marked as defective.

7. RE-PERFORMANCE. The Contractor may be required to re-perform or perform late any or all defective work. Where the Government so elects, the Contractor shall be notified promptly after inspection that specified defective work will be re-performed or performed late and completed within the re-performance period specified by the Government. The Contractor’s signature on the inspection results will signify acknowledgement of items marked for re-performance. In such cases, the Government will re-inspect work designated for re-performance or late performance. The Contractor shall not be required or entitled to re-perform, perform late, or otherwise correct defective work for the purpose of avoiding a defect for the day of evaluation or a reduction in payment. Re-performance of defective work will be accomplished at no cost to the Government. RE-INSPECTION FEE. The Government will assess a re-inspection fee for the second and any subsequent inspection(s) at a flat rate of $80.00 per inspection. This fee will not be assessed for the first regularly scheduled inspection.

7.1 CONDITIONS OF RE-PERFORMANCE. Re-performed work shall comply with the same requirements as initial work. The requirement for re-performing defective work will not alleviate the Contractor from responsibility to perform all other work IAW the terms of the contract. The Contractor‘s original inspection results will not be modified when work is re-performed IAW the contract. The Contractor may be held liable for any damages sustained by the Government; e.g., costs associated with re-inspection.

8. CONTRACTOR PAYMENT. The Contractor will receive the maximum monthly contract payment when contract requirements have been met and each PRS service is performed within the established ALP; e.g., number of recorded defects does not exceed the number allowed.

8.1 PAYMENT REDUCTIONS. When the Contractor fails to meet contract requirements of those services listed on EXHIBIT 1B Performance Requirements Summary (PRS) (Part 2); e.g., the number of recorded defects exceeds the number of allowable defects (ALP); performance will be deemed defective. The Contractor will be subject to Consequences of Failure to Meet Performance Standard stated in column F of Exhibit 1b Performance Requirements Summary (PRS) Part 2. There will be no credit for re-performance. Payment for services not conforming to the specified ALP will be calculated as described below.

8.1.1 Determining PRS Reductions when Random or Monthly Sampling is the method of Surveillance. The following will be used to determine a reduction in contract payment for unacceptable service:

For services for which random or monthly sampling is the method of surveillance a reduction in payment will be calculated using the Reduction in Payment (RIP) found in Consequences of Failure to Meet Performance Standard stated in column F of Exhibit 1b Performance Requirements Summary (PRS) Part 2. RIPs will be determined using the monthly invoice for the period being surveilled. Example: Lot size is 450 units with a resulting sample size of 50 units. 10 defects were found by Government surveillance. The Master Table for Single Sampling Plans for Normal Inspection indicates the reject level of 8 defective samples. The payment computation would be as follows:

a. Using the Contractor’s monthly invoice for the period sampled determine the per defective rate. Monthly invoice $14,280.00; RIP of 0.1% equals $14.28

b. The total number of defects: 10

c. Compute the percentage of defects found unacceptable by dividing the number of defects by the Sample Size; 20%

d. Multiply the percentage of defects found unacceptable times the Lot Size (450 x 20%): 90

e. Take the amount from (a) above, $14.28 times the total found in (d) 90: this will be the amount of the Payment Reduction: $1,285.20

8.1.2 Determining PRS Reductions when 100% Inspection is the method of Surveillance. The following will be used to determine a reduction in contract payment for unacceptable service:

For services for which 100% Inspection is the method of surveillance a reduction in payment will be calculated using the Contractor’s monthly invoice for the period sampled to times the RIP times the number of defects. Example: Lot size and sample size is 50. 10 defects were found by Government surveillance. The payment computation would be as follows:

a. Using the Contractor’s monthly invoice for the period sampled determine the per defective rate. Monthly invoice $14,280.00; RIP of 0.1% equals $14.28

b. Total number of defects: 10

c. Multiply the amount from (a) above, $14.28 times total from (b) 10: this will be the amount of the Payment Reduction: $142.80