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 TECHNICAL EXHIBIT 1
PERFORMANCE REQUIREMENTS SUMMARY FOR EXAMPLE CONTRACT
The purpose of this exhibit is to:
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List the contract requirements considered most critical to acceptable
contract performance. (NOTE: NAVFACENGCOM contracts are based on
procedures based in Mo-327. MIL-STD-105D is not used in NAVFACENGCOM
contracts.)
!
Show the maximum allowable degree of deviation (Acceptable Quality
Level or AQL) from performance for each requirement that shall be
allowed by the Government before contract performance is considered
unsatisfactory.
!
Show the percentage of the major elements of the contract price that
each listed contract requirement represents.
!
Explain the Quality Assurance methods the Government will use to
evaluate the contractor's performance in meeting the contract
requirements.
!
Define the procedure the Government shall use in reducing the
contractor's monthly payment if satisfactory performance is not
rendered by the contractor.
The Government's primary Quality Assurance procedures are based on
random sampling of the recurring critical output products of the contract
using the concepts of random number sampling. Some contract requirements will
be reviewed periodically (i.e., monthly, quarterly, semiannually).
The criteria for acceptable and unacceptable performance are as follows:
For Areas Surveilled by Sampling. Criteria are derived from MIL-STD105D
based on the lot size, sample size, and AQL for each contract requirement.
When the number of defects in the contractor's performance discovered by the
COR exceeds the unacceptable criterion level, the contractor shall be required
to complete a Contract Discrepancy Report (CDR). The CDR will require the
contractor to explain in writing why performance was unacceptable, how
performance will be returned to acceptable levels, and how recurrence of the
problems will be prevented in the future. In accordance with the Inspection
of Services clause, the Contractor will not be paid for services not rendered
in accordance with the Inspection of Services clause, or the standards set
forth in this contract.
Other Requirements. The criterion for nonsampled requirements is the
level of performance deemed acceptable to the Government. The use of the
Contract Discrepancy Report as described above applies to these requirements
as well.
Monthly payments to the contractor will be reduced for unsatisfactory
performance using the following methods:
B-21
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