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 (population) of the contract requirement in the month. If the service is
scheduled, the number of occurrences is calculated on the basis of the
schedule in the performance work statement. If the service is unscheduled,
the population is the number of occurrences for the month.
If the contract requirement is included in the indefinite quantity part of
the contract, the unit price for the contract requirement is shown as an
item in the schedule of indefinite quantity work.
The price of the work requirement is determined by multiplying the
percentage weight in the PRS by the unit price of the associated contract
requirement as shown in the typical payment calculations at 6-680.
6-620 Deductions for Nonperformed or Unsatisfactory Work. Defects are
tabulated by the QAE based on 100 percent inspection, planned sampling,
random sampling, validated customer complaints, and incidental inspections
of the contract requirements shown in the PRS.
When defects are based on 100 percent inspection, planned sampling, random
sampling without extrapolated deductions (RSWED), validated customer
complaints, or incidental inspections, deductions to the contract price are
made for the total number of defects observed during surveillance.
When RSED is used, deductions for defects are based upon the number of
defects found in the random sample. After an adjustment in the observed
defect rate is made, the defect rate is applied to the total population to
determine the number of defects in the total population. This process is
called extrapolation. Only those defects observed in the random sample are
taken into account in extrapolating the defect rate. Validated customer
am-plaints are not included in the calculation for deductions. It is
Presumed that defects noted outside the random sample are reflected by
defects found in the random sample. On rare occasions, the sample may not
predict as many defects as found through other inspections and validated
customer complaints. However, over the contract term this will average out.
6-630 Payment for Rework by The Contractor. Rework by the contractor is
the preferred way of resolving defects, and payment must be made for those
defects which have been satisfactorily reworked. In general, work
requirements involving the timeliness element cannot be reworked. Rework of
a service found to be defective in the sample does not remove the service
from the basis of extrapolation. When random sampling is used, defects are
established within a given sample and the results extrapolated for the
entire population of services to determine the number of defects. This
means that only a limited number of the defects for which deductions are
taken are individually identified to the contractor. As a result, the
contractor is responsible for identifying the additional defects if he
wishes to rework them. Credit is given for defects reworked, both within
and without the sample, up to the maximum number of defects for which
deductions were originally taken.
6-640 Deductions for Rework by Government or Others. When nonperformed
or unsatisfactory work is reworked by Government personnel or by another
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