QUALITY_ASSURANCE_SURVEILLANCE_PLAN.pdf

ATTACHMENT 3

QUALITY ASSURANCE SURVEILLANCE PLAN

QUALITY ASSURANCE SURVEILLANCE PLAN (QASP): This plan will be used to assure the Government that the work specified under this contract is completed satisfactorily. This plan is included for information purposes only and will not be made part of any resulting contract. Payment Analysis will be conducted by using a

100 % sampling method. Each complete or partial mowing and fertilization requested by the Government will be assessed as either satisfactory or unsatisfactory.

DEFINITIONS:

Acceptable Quality Level (AQL): The AQL is a predetermined value selected and used by the Government

Quality Assurance Inspector (QAI) to distinguish between satisfactory and unsatisfactory performance. For example, an AQL of 65% means that the Contractor needs to have 65% or more of the bid items mowed under a single mowing scored as satisfactory by the Government’s QAI. An AQL of 75% would require 75% or more of the bid items mowed under a single mowing to be scored as satisfactory by the Government’s QAI. By meeting or exceeding these Government established AQL’s, the Contractor will receive full payment for services invoiced as long as no other deductions such as those from re-inspection fees are applied to the

Contractor’s invoice. The Government has the right to unilaterally change the AQL at any time.

Reject Level: The reject level is the level of service that does not meet or exceed the Government’s established AQL. For example, if the Government sets the AQL at 70% and the Government’s QAI determines that the overall mowing scored at 69% or less, then the Contractor’s overall mowing service is considered unsatisfactory and thus deductions would be made to the Contractor’s invoice for the mowing.

Unsatisfactory ratings will require a Contractor Deficiency Report (CDR) that identify corrective actions and/or payment deductions. The Contractor is responsible for improving their Quality Control program to ensure that future mowing services are satisfactory.

Performance Threshold: This is the percentage that must be achieved on each Government inspection of each bid item ordered from the bid schedule in order for the inspection to be considered satisfactory. For example, a performance threshold of 95% means that the individual inspection of the item must meet or exceed 95% in order for the Contractor to receive a satisfactory rating on the individual bid item inspected.

Contract Deficiency Report (CDR): Notification of unsatisfactory performance shall be in the form of a

Contractor's Deficiency Report issued by the COR or his representative to the Contractor.

Deductions: Deductions are made from the Contractor’s invoice for each mowing whenever the overall service is unsatisfactory and/or when Government re-inspection fees are required.

PAYMENT ANALYSIS EXPLANATIONS & EXAMPLES:

Mowing services are monitored with 100% inspection by the Government QAI. This means that Government inspections will be done on each and every mowing item ordered off of the bid schedule for each letter issued.

The performance threshold for each bid item ordered by the Government, provided by the Contractor and inspected by the Government is set at 95%. This means that each individual bid item inspected by the QAI must score 95% to be considered satisfactory.

The Government QAI will inspect each bid item after the Contractor notifies the QAI that the item serviced/mowed is complete and ready for inspection. The Government QAI will inspect the serviced/mowed item to ensure that the contract standards identified in the contract Performance Work Statement (PWS) and identified on the contract Performance Requirements Summary (PRS) are met or exceeded. The Government QAI will randomly sample and inspect a representative number of points for every bid item location mowed to determine if the 95% performance threshold was achieved on that particular bid item. If the performance threshold was not achieved, then the QAI will notify the Contractor’s superintendent of the reject and give the Contractor an opportunity to re-perform. If the Contractor chooses to re-perform the work then the QAI will inspect another time. The Contractor at a minimum will have a re-inspection deduction applied to their invoice. If the Contractor chooses not to re-perform, then the Government will deduct from their invoice for the unsatisfactory performance. See payment analysis deduction examples provided below.

Example #1:

The Contractor is issued a contract from the Government authorizing a complete mowing that includes 39 bid items from the bid schedule. The period of performance is 15 workdays. The Government AQL is set at 80% and the performance threshold is 95%. The Government QAI showed that 8 of the 39 bid items inspected scored below 95% and thus received an unsatisfactory score. The Contractor was given the opportunity to re-perform the work but chose not to re-perform. The Contractor invoices for the full mowing amount of $37,025. What amount should the Government deduct from the Contractor’s payment to comply with the terms of the contract and the QASP?

What is the Government adjusted invoice/payment amount?

To receive full payment for performance, the Contractor needed 80% of all mowed items to be satisfactory. In this example, the Contractor achieved satisfactory scores on ((39-8)/39) x100 or 79.5% of the mowed bid items. Thus, the Contractor fell below the Government established AQL meaning that a deduction will be made from their invoice. The deduction is determined by taking the number of unsatisfactory items divided by the total number of bid items from the mowing and multiplying this to one half of the full invoice/payment amount. This is done before any other deductions such as re-inspection fees are deducted from the full invoice/payment amount.

The performance deduction because of the unsatisfactory QAI scoring is (8/39) x (1/2) x $37,025 = $3,794.44

No re-inspection fees are applied because the contractor chose not to re-perform.

So, the total invoice/payment deduction is $3,794.44

The total adjusted payment to the Contractor for the mowing is $37,025.00 - $3,794.44 = $33,230.56

Example #2:

The Contractor is issued a contract from the Government authorizing a complete mowing that includes 39 bid items from the bid schedule. The period of performance is 15 workdays. The Government AQL is set at 80% and the performance threshold is 95%. The Government QAI showed that 8 of the 39 bid items inspected scored below

95% and thus received an unsatisfactory score. The Contractor was given the opportunity to re-perform the work and did so in all 8 areas that were unsatisfactory. The Government QAI re-inspected all 8 areas and scored them as satisfactory. The contract re-inspection fee is $100/inspection. The Contractor invoices for the full mowing amount of $37,025. What amount should the Government deduct from the Contractor’s payment to comply with the terms of the contract and the QASP? What is the Government adjusted invoice/payment amount?

Since the contractor re-performed the work, all bid item areas received a satisfactory score by the Government QAI meaning that the Government’s established AQL of 80% was exceeded. So, there is no performance deduction in this example.

The Government QAI re-inspection deduction for 8 re-inspections is ($100/inspection) x 8 inspections = $800

So, the total invoice/payment deduction is $800.00.

The total adjusted payment to the Contractor for the mowing is $37,025.00 - $800.00 = $36,225.00

In Summary, there are two types of invoice/payment deductions that the Government can apply to the Canyon Lake Mowing Services Contractor’s Invoices/Payments which are:

1) Performance Deductions (# unsatisfactory items / # total mowing bid items) x 0.5 x full mowing payment amount)

2) Re-inspection Fees at a rate of $100/re-inspection