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 Independent Government Estimate - An independent government estimate (IGE) is
an estimate prepared based on the requirements specified in the contract.
Job Analysis - Job analysis is an evaluation of a jab as it is being done
in-house or by a contractor to determine what actually results.
Level of Surveillance - Random sampling (RSED or RSWED) has two levels of
surveillance, referred to as the normal sampling level and the minimum
sampling level. "Normal" does not imply that the normal sampling level is
usuallyused.
Liquidated Damages - Liquidated damages represent an advance contractual
agreement as to the damages me party will suffer if the other fails to
perform. The liquidated damages referred to in "Consequences of
contractor's Failure to Perform Required Services Clause" are to compensate
the Government for additional administrative expenses incurred, by the
Government, as a result of the defects, and represents an amount additional
to the price of the defects. When random sampling for extrapolated
deductions (RSED) or random sampling without extrapolated deductions (RSWED)
is used, liquidated damages for additional administrative costs incurred by
the Government will be applied only to defects actually identified during the
sampling process.
Maximum Allowable Defect Rate - The Maximum Allowable Defect Rate (MADR) is
the defect rate for the population above which the contractor's quality
control for a particular work requirement is unsatisfactory. MADR does not
represent a threshold above which deductions are taken. Deductions to the
contract price are taken for all defects (with credit for rework to the
extent appropriate) irrespective of whether the MADR is exceeded or not.
Navy Acquisition Procedures Supplement - The Navy Acquisition Procedures
Supplement (NAPS) establishes for the Department of the Navy uniform policies
and procedures implementing and supplementing the Federal Acquisition
Regulation (FAR) and the Department of Defense Federal Acquisition Regulation
Supplement (DFARS). The NAPS applies to all Department of the Navy
activities that purchase or contract for supplies, services, and construction
using appropriated funds.
Observed Defect Rate- The observed defect rate (ODR) is the ratio of the sum
of the defects identified in a sample of the population divided by the sample
size expressed as a percentage. When 100 percent inspection is used the
observed defect rate corresponds to the defect rate in the population. When
random sampling for extrapolated deductions (RSED) or random sampling without
extrapolated deductions (RSWED) is used, the ODR is the ratio of the number
of defects identified in the sample divided by the sample size expressed as a
percentage. When RESD or RSWED is used the defect rate in the population is
determined by deducting and adjustment factor from the observed defect rate.
when planned sampling is used, the ODR represents only the defect rate in the
sample. The extrapolation of the ODR to the entire population for the
purpose of determining the contractor's quality control or for taking
deductions to the contract price is not allowed. The defect rate for
v a l i d a t e d - complaints is expressed as the actual number of defects
documented. Alternatively, the ODR may be stated as a whole number (e.g., 4
B-4
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