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 Example: The cost for emptying containers of non-hazardous waste in the
administration area at a particular Naval Station is estimated as $20,800
per month. (See Figure 3-5)
% COST OF WORK REQUIREMENT
WEIGHT
WORK REQUIREMENT
$18,720.00
90%
Empty containers in
accordance with schedule
10%
$2,080.00
Pickup refuse adjacent
to containers
$20,800.00
100%
(c) Standard of Performance. As shown in the PRS in Figure 3-5, each
contract has a number of associated work requirement. As an
example, consider Item No. 1 in the PRS (Figure 3-5). There are two work
requirements "A" and "B" associated with this contract requirement as shown
in column (3) of the PRS. The standard of performance for each work
requirement is summarized in a column (5) of the PRS by referring to a
paragraph in section C of the PWS as shown at 3-535.
(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 maximum allowable defect rate (MADR) is the
measure used to evaluate the contractor's quality control. The MADR is the
defect rate in a population of services above which the contractor's quality
control is consideredunsatisfactory. The MADR for each work requirement is
specified in the PRS.
Careful consideration should be given in deciding on the MADR. The MADR is
a part of the contract and cannot be changed during the term of the contract
without a contract modification. Prior to establishing the MADR, the
importance of the service, the population or the number of occurrences of
the service, and the number of defects which can be tolerated must be
considered. The population must be known or estimated before a MADR can be
rationally specified. As discussed at 3-340, the "unit" must be correctly
chosen. As anexample, the unit for emptying containers is not the number
of containers but rather the number of pickups per month.
Examples of the determination of MADR are as follows:
TOLERABLE
DEFECTS/
MADR
MONTH
WORK REQUIREMENT
POPULATION UNITS
%
Garbage Collection
3900
Pickup6
10
0.25 % say
300 containers,
0.3 %
13 pickups a month.
300 x 13 = 3900
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