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 EXAMPLE PAYMENT CALCULATION WHEN RSED IS USED
WORK REQUIREMENTS
TIMELY
QUALITY COMPLETE
DOCUMENTATION
COMPLETION WORK
SERVICES
15%
10%
75%
a.
Price for work requirement
$10,500.00
$52,500.00
$7,000.00
b.
Number svs during billing pd
$ 1,000.00
$ 1,000.00
$1,000.00
c.
Price per service (a/b)
$
10.50
$
52.50
$ 7.00
d.
Number of services sampled
178
178
178
(as desired by Gov't)
e. Observed unsats in sample
12
10
3
f. Observed Defect Rate (e/d)
6.74%
.62%
1.68%
g. Adjustment Factor *
1.17%
1.09%
.64%
h. Defect Rate (f-g)
5.57%
4.53%
1.04%
i. Number of extrapolated svs
(b x h as whole number)
55
45
10
j. Observed unsats outside sample
7
6
12
k. Svs satisfactorily reworked by
Contractor (at the Govt's option)
N/A
12
0
l. Svs reworked by Gov't or others
N/A
0
0
m. Total number of svs to be deducted at
Schedule of Deductions Price
(i - k - l)
55
33
10
n. Extrapolated Deductions (c x m)
$ 577.50
$ 1,732.50
$ 70.00
o. Deductions for cost of Gov't rework
$
0
$
0
$
0
p. Liquidated Damages for Contractor
rework **
( % x c x (e + j - l))***
$
19.95
$
84.00
$ 10.50
q. Liquidated Damages for Govt rework **
( % x o)***
$
0
$
0
$
0
r. Total payment deductions
(n + o + p + q)
$ 597.45
$ 1,816.50
$ 80.50
* From the attached "Adjustment Factors for Random Sampling" table.
** Calculated in accordance with the "CONSEQUENCES OF CONTRACTOR'S
FAILURE TO PERFORM REQUIRED SERVICES" clause, Section E.
*** The administrative penalties percentages are to be determined on a
case-by-case basis.
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