Quantcast Attachment J-E. Statistically Extrapolated Surveillance Techniques

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3-590 Attachment J-E. Statistically Extrapolated Surveillance Techniques.
This attachment must contain at a minimum all the information required by
the contractor so he understands how the Government plans to assess his work
and take deductions to the payment due when statistically extrapolated
inspection techniques are employed by the Government in accordance with the
"Consequences of Contractor's Failure to Perform Required Services Clause."
The sample sizes and the adjustment factors which will be employed by the
Government are disclosed to the contractor in advance of bidding or
negotiations.  The underlying policy for giving the contractor this
information is to permit the contractor to have the opportunity of assessing
the degree of risk he will be undertaking if he is successful in obtaining
the contract.
The Government does not warrant that any particular "confidence" level will
be achieved in the statistical sampling. Instead, the contractor is
afforded the opportunity to consult with his own experts prior to bidding,
assess the degree of risk he will be undertaking, and bid accordingly.  The
contractor is therefore in effect agreeing to the validity of the
statistical methods by choosing to bid or enter into negotiations for the
contract.  When this policy of full disclosure is followed, the contractor
does not have a legally valid basis for later complaining that the
statistical methods are unfair or unreliable.
The attachment must include the following:
(1) A short description of random sampling for extrapolated deductions
(RSED) and random sampling without extrapolated deductions (RSWED),
(2)  An An example of payment calculations using statistical surveillance
Sample size tables for normal sampling level and minimum sampling
(4)  A table of adjustment factors to be used in calculating the defect
rate based on the observed defect rate.
A typical text for inclusion in Attachment J-E is shown in Appendix D of
this Manual.
3-610 General. Facility support contracts areprepared in one of two
formats, the uniform contract format or the construction Specification
Institute (CSI) format.  (The CSI format, with some modification, is the
format NAVFACENGCOM uses for construction contracts.)
The CSI format is used when the wage rates are governed exclusively by the
Davis-Bacon Act, which determines labor rates for various construction trade


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