Some probable causes of defective contractor
production may be due to any of the following:
1. The cause of the problem lies with the
l Delivery of government-provided
materials or equipment is deficient.
l Government employees (civilian or
military) are disrupting the contractors efforts.
l Subcontractor support is not effective (if
contracted by the government).
2. The cause of the problem lies with the
l The contractor does not have enough
people on the work site.
l There are not enough properly trained
people on the work site.
l Supervision by the contractors inadequate.
l The contractors quality control staff is not
identifying problem areas.
O The contractor is not using the proper
materials or equipment to accomplish the job.
l The contractor is not using the proper work
methods to produce the required product.
During the contract, the QAE retains a copy of all
QAE schedules, evaluation worksheets, and checklists.
At the end of the contract period, the QAE forwards
these records for inclusion in the contract file. A
specific service becomes unsatisfactory during a
surveillance period. You should forward a copy of the
inspection documentation supporting the contract
discrepancy to the contract manager and the ROIC for
action. You must keep the contractor appraised of
surveillance results involving discrepancies. One
method is to provide the contractors representative
with a copy of the evaluation worksheet. The
contractors representative should initial the original
evaluation worksheet, showing that he or she has
received a copy.
Surveillance Results and Discrepancies
At the end of each month, the QAE should assess
the results for the evaluation worksheets, checklists, and
other documents to figure out the contractors complete
If the contractor has performed
excellently with few defects noted, the QAE may
suggest that the contract manager inform the contractor
of satisfactory performance. The QAE may
recommend a reduced level of surveillance.
Poor performance by a contractor requires much
more, particularly in documentation and QAE effort. If
a contractor has displayed poor performance, take the
1. The QAE learns that the government created
any of the discrepancies. These discrepancies should
not count against the contractors performance. When
the government has caused the contractor to perform
deficiently, the QAE prepares a letter to the responsible
organization requesting corrective action. The QAE
sends the letter to the responsible organization through
the contract manager.
2. The government did not cause the discrepancy,
The QAE tells the contractors site manager, in person,
when the discrepancies occurred and asks the contractor
to correct the problem. The QAE notes on the
evaluation worksheet the date and time of the
deficiency. The QAE has a contractors representative
initial the entry on the worksheet.
3. When the contractor is responsible for failing to
meet the limits of satisfactory performance, the
contracting officer issues a Contract Discrepancy
Report (CDR) to the contractor. If the failure is serious
enough, issue the CDR at the time of unacceptable
performance instead of at the end of the month.
4. If the contractor does not achieve satisfactory
performance of that service by the end of the next
month, the contracting officer then calls in the
contractor for a personal review of the problems at a
5. Depending on the contractors complete
performance, the government may issue a show cause
letter that requires EFD approval.
6. Deduct funds for all documented defects. The
QAE checks the contractors performance and
documents instances of noncompliance. However,
only the OIC can take formal action against the
contractor for unsatisfactory performance. This section
presents the normal steps required by contract