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E.6
FAC 5252.246-9303, CONSEQUENCES OF CONTRACTOR'S FAILURE
TO PERFORM REQUIRED SERVICES (MAR 1996)
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NOTE:
Insert the following clause in all firm fixed-price and firm
fixed-price/indefinite
quantity
solicitations
and
contracts
for
facilities support services.
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The  Contractor  shall  perform  all  the  contract  requirements.
The
Government will apply one or more of the surveillance methods mentioned
below  and  will  deduct  an  amount  from  the  Contractor's  invoice  or
otherwise withhold payment for unsatisfactory or nonperformed work.  The
Government reserves the right to change surveillance methods at any time
during the contract without notice to the Contractor.
a.  STATISTICALLY EXTRAPOLATED SURVEILLANCE METHOD. The Government may
apply a statistically extrapolated surveillance method (Random Sampling
for Extrapolated Deductions) to any contract requirement to determine
Contractor compliance.  The defect rate will then be extrapolated to the
monthly population to determine the number of unsatisfactorily performed
work occurences.
The monthly population is the total number of work
occurences that are required to be performed during the month.
OTHER SURVEILLANCE METHODS.
b.
The Government may apply other
surveillance methods to determine Contractor compliance.  These include,
but  are  not  limited  to,  100%  inspection,  random  sampling  without
extrapolated deductions, and planned sampling as primary surveillance
methods; and incidental inspections and validated customer complaints as
supplemental  surveillance  methods.
When  using  these  surveillance
methods, deductions may be taken for all observed defects.
c.  PROCEDURES.
In the case of unsatisfactory or nonperformed work,
the Government:
(1)  may give the Contractor written notice of deficiencies prior
to deducting for unsatisfactory or nonperformed work and/or assessing
liquidated damages.  Such written notice shall not be a prerequisite for
withholding payment for nonperformed work.  The Government may specify,
as provided for below, that liquidated damages can be assessed against
the  Contractor.
Such  liquidated  damages  are  to  compensate  the
Government for administrative costs and other expenses resulting from
the unsatisfactory or nonperformed work.
(2)  may, at its option, allow the Contractor an opportunity to
reperform the unsatisfactory or nonperformed work, at no additional cost
to the Government.  In the case of daily work, corrective action must be
completed within _____ hours of notice to the Contractor.  In the case
of other work, corrective action must be completed within _____ hours of





 


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