Chapter 5

Doing Surveillance

5-1. -- Surveillance Methods.

This chapter tells how to do surveillance once the plan is written.  It tells how to build a monthly schedule, how to use the surveillance plan, and what to do when there is poor contractor performance.  This chapter applies to Quality Assurance Evaluators (QAEs) and contract administrators.

5-2. -- Building a Schedule.

A surveillance plan is organized to facilitate use by the QAE.  The QAE is responsible for developing a monthly schedule for activities, based on the surveillance plan’s requirements.  Complete the Quality Assurance Evaluator Schedule by the last workday of the preceding month and send a copy to the contract administrator and the functional area chief for their information and review.  Each QAE builds a schedule by filling in the blocks on the schedule.  Specific instructions for filling out the schedule are provided below.

a.       Quality Assurance Evaluator Schedule.  An example of a surveillance schedule is shown in figure 5-1.  The left-hand side of the schedule divides the sheet into days of the week.  This example shows only a 7-day schedule.  The QAE must make up enough sheets to include each day of the moth.  Along the top of the schedule, insert the items to be checked during the month.  Along the bottom of the schedule, indicate the number of observations to be made during the month (that is, how often a MIS is checked, how many samples will be taken, how often a surveillance checklist will be used).

b.       Filling In And Updating the Schedule.  To fill in the inspection schedule, the QAE refers to the sampling guide for each service being monitored.  The sampling guide is used with the random number table to determine the inspections (observations) to be made during the month (see chapter 4, paragraph 4-4).

(1)     Contract surveillance must cover all hours of operation.  Random observations are scheduled at night, on weekends and holidays when services are performed during these periods.  Areas that are monitored on a set schedule (for example, VIMS standards and analysis reports) are included in the monthly schedule.  This monthly schedule shows where and what the QAE is monitoring at all times.

(2)     Post any changes to the schedule weekly and send copies to the contract administrator and to the functional area chief.  Document and explain the reasons for each change.  Actual surveillance activity recorded on the surveillance checklist must be comparable to the monthly schedule.

(3)     As updated, one must be able to conduct a complete audit trail from the monthly schedule, to observing the QAE perform sampling, to completion of the surveillance checklist.

(a)      There must also be a correlation between contractor performance versus standards, AQLs, checklists and action taken by the contract administrator.  The sample in figure 5-1 shows the schedule for one week.  The QAE completes the blank forms, indicating week of (Monday through Sunday), and enters the time, observation, and check (if pertaining to a checklist), in the blocks corresponding to the item and day.

(b)     After it is completed and filled in, this form is “For Official Use Only” and must not be shown to the contractor.

Figure 5-1. -- QAE Surveillance Schedule

5-3. -- Doing Surveillance.

Doing surveillance involves using the surveillance plan called for in the monthly schedule.  Use the following procedure to record observations and take action when the contractor’s defects exceed the allowable number.

a.       Recording Observations.  Monthly tally and surveillance checklists are used for each sampling guide and less frequently checked services.  They are used to tally information on scheduled observations and defects noted.  Each observation in the sample is recorded on the checklists, and the documents then become a formal government record for later reference.

(1)     When random sampling guides are used, the tally of observations and defects at the end of each month are compared to the acceptable number of defects appearing in the sampling guide.

(2)     The contractor is told each time an error is found during scheduled observations and asked to initial the observation recorded on the checklist.

(3)     Errors found in services not scheduled for observation should be brought to the contractor’s attention but not used to count as a defect for determining if the AQL has been met.

(4)     Checks done with a surveillance activity checklist are likewise recorded.

b.       Potential Unsatisfactory Performance.  If the sampling guide or surveillance activity checklist indicates that the number of defects is too high, the QAE goes to the decision table for that service indicator.

(1)     The QAE must locate the specific service that is unsatisfactory.  The table will identify the possible causes of the unsatisfactory performance and list a number of questions which, if answered, will probably pinpoint the source of the problem.

(2)     The decision table helps the QAE identify the problem so that, among other things, a meaningful evaluation can be made of the contractor’s explanation and corrective action.  For example, if the contract specifies a maximum out-of-commission rate for vehicles of 8 percent, and the rate was 10 percent, examination may reveal the excess was caused by excessive vehicle down for parts (VDP).  This could have been caused by the government’s inability to provide timely parts support.

(3)     In such a situation, the contractor may not be at fault.  If, on the other hand, the excessive VDP was created because the contractor ordered the parts on a routine priority rather than priority, it might be the contractor’s fault.  The decision tables will assist the QAE in making such a determination.

c.       Documenting Unsatisfactory Performance.  If performance in any area is judged unsatisfactory, the contractor is required to respond to a Contract Discrepancy Report (CDR).  See sample in Figure 5-2.

(1)     The QAE prepares the form and sends it to the contracting officer, who signs and sends it to the contractor.

(2)     When completed and signed, the report, along with the tally checklist or surveillance activity checklist become the documentation supporting payment, nonpayment, or other necessary action.

5-4. -- Taking Action.

The QAE may check the contractor’s performance and document any non-compliance, but only the contracting officer may take formal action against the contractor for unsatisfactory performance.

Figure 5-2. -- Contract Discrepancy Report