Figure 6-4 Typical Payment Calculation When Random Sampling for Extracpolated Deductions is Used

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RSED
PAYMENT
WORK REQUIREMENTS
CALCULATION
RESPONSE CLASSIF- COST
QUALITY
TIME
ICATION
ACCTNG WORK
a.
Price for work requirement
\$3600
\$600
\$600
\$7,200
b.
Population
600
600
600
600
\$6
\$1
\$1
c.
Price per service (a/b)
\$12
d.
No. of services sampled
60
60
60
60
e.
No. in sample rejected
6
5
4
2
f.
Observed defect rate (e/d)
10.00%
8.33%
6.66%
3.33;
g.
Adjustment factor *
1.31%
1.17%
0.90%
1.38%
h.
Defect rate (f-g) **
7.02%
8.62%
5.49%
2.43%
i.
Extrapolated defects
32
14
51
(b x h as whole number)
42
3
j.
Defects obs. out&side sample
2
2
2
7
7
k.
0
Rework by contractor
N/A
0
l.
Rework by Govt. or Others
0
4
N/A
25
m.
Net no. services to deduct
51
35
10
at scheduled price (i-k-l)***
\$306.00 \$35.00
\$25.00  \$120.00
n.
Extrapolated deduction
(c x m)
o.
Deduct Govt. rework
Actual cost **** or
\$0.00 \$0.00 \$0.00 \$138.00
\$0.00  \$0.00
\$0.00
\$0.00
at scheduled price (c x l)
\$0.00
IDs ct rewk [10%xcx(e+j-1)]
\$0.70
\$0.70
\$4.80
p.
ID'S Govt. rewk (20% x 0)
\$0.00 \$0.00
\$0.00  \$27.60
q.
+ \$2.70 + \$32.40
r.
Other adjustment *****
\$0.00 + \$2.70
\$577.00 \$6946.80
s.
Total payment
\$3289.20 \$567.00
(a-n-o--r)
Total payment for routine service calls = \$ 11,380.00
*
Adjustment factor from Appendix F, Table 3.
**
Defect rate for comparison with MADR.
*** Cannot be less than zero.
**** Actual cost are the amounts paid to Government personnel (wages
retirement, and fringe benefits) plus materials or the actual costs
of other means by which the work is accomplished.
***** Calculation of other adjustments is shown at 6-681
FIGURE 6-4 TYPICAL PAYMENT CALCULATION WHEN RANDOM SAMPLING
FOR EXTRAPOLATED DEDUCTIONS IS USED
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