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The Contract Requirements listed in the attached PRS represent specific tasks which are to be performed under the
contract. The cost of a Contract Requirement includes the costs of all the labor, equipment, materials, fringe
benefits, overhead and profit associated with that particular Contract Requirement. Items such as "Maintenance
Management" are therefore not listed as Contract Requirements as such functions are considered to be included in
the scope of the individual Contract Requirements.
The Performance Requirements associated with each Contract Requirement are as shown in the PRS and include:
a. Work Requirements. A series of work requirements associated with each particular Contract
Requirement are listed in column 3 of the PRS. The Work Requirements are typically specified in terms of
timeliness of performance, the quality of the work, and the preparation of documentation associated with a
particular Contract Requirement.
b. Weight. The value of each Work Requirement is specified as a percentage of the Contract
Requirement with which it is associated in column 4 of the PRS. The percentages are based on judgment, taking
into account both the costs incurred by the Contractor in carrying out a particular Work Requirement, and the
detriment to the Government if the Work Requirement is not satisfied.
c. Standard of Performance. The Standard of Performance for each Work Requirement is summarized
in column (5) of the PRS by referring to applicable schedules in Section J specifying timeframes for completion and
the paragraph in Section C of the Performance Work Statement.
d. Maximum Allowable Defect Rate (MADR). The Contractor is responsible for maintaining an
effective Quality Control (QC) Program during the course of the contract. The MADR is the measure used to
evaluate the Contractor's quality control on a monthly basis. The MADR is the defect rate which if exceeded
indicates that the Contractor's quality control is unsatisfactory. The MADR for each Work Requirement is
specified in column 6 of the PRS. MADR does not control the level of performance at which deductions are taken
for nonperformance or unsatisfactory work. Deductions are taken for all defects (with allowance for rework as
appropriate) even if the MADR is not exceeded.


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