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PDREP Image Icon   Red/Yellow/Green (RYG)

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To gain access to RYG  you will be required to submit a User Access Request Form.

RYG Icon (Traffic light)Red/Yellow/Green (RYG) is a Navy/Air Force automated tool designed to help reduce the risk of receiving nonconforming products and late shipments. RYG classifies the risk degree by assigning a color to a contractor's historical quality and delivery performance in individual Federal Stock Classifications (FSCs). Red is high risk, Yellow is moderate risk, and Green is low risk. A Neutral label is applied to either the quality/delivery classification under the following conditions: The contractor is a first time offeror for the FSC; there is no quality/delivery history available for the FSC, or available quality/delivery history for the FSC is outside the RYG evaluation time frame.

RYG provides procedures to assist the Contracting Officer in source selection. It does not eliminate the requirement to determine responsibility by the standards in FAR 9.104, and is not sufficient by itself in determining responsibility. RYG solicitations state that the procurement is part of the Navy/Air Force RYG Program and that the award decision includes an evaluation of the offeror's past quality and delivery performance.

RYG Methodologies: This easy-to-use tool employs two methodologies in source selection to help determine the "best value" for the government:

  • Technical Evaluation Adjustment (TEA) A TEA is the Government's cost of additional quality assurance and procurement action(s) needed to reduce the risk of receiving nonconforming products and late deliveries. When added to a Red or Yellow offeror's price, a TEA may displace low offerors in favor of an offeror with a better product quality and delivery history.

  • Greatest Value/Best Buy (GV/BB) The RYG GV/BB plan includes price and RYG classification as part of the evaluation factors. GV/BB is especially useful in high dollar value/large purchase procurements, where the differences in offerors' prices are large enough to render TEAs ineffective.

  • RYG Classification. Once a month, quality and delivery history records are evaluated and predefined criteria is used to develop Red, Yellow, Green, or Neutral classifications for each contractors' FSC on which there is information in the Product Data Reporting and Evaluation Program (PDREP) database. Contractors are provided electronic access and written notification on their classifications when changing to Red or Yellow. Notifications provide summaries of the data used to develop classification(s) when there is a Red or Yellow classification present, and a status sheet only for Green classifications. Contractors have three weeks to challenge the data before a Red or Yellow classification is released to participating contracting officers for use in source selection. If a contractor's challenge is credent and not resolved in the three week hold period, the challenged data will not be used and the classification is not released to contracting offices until resolution is reached.

    Image of people talking at workRYG System. The RYG system is a WEB application that offers speed and ease. Typing the FSC, CAGE code, and price of each offer produces an adjusted price by adding the appropriate TEA for Red or Yellow classifications.

    RYG Program Control. The Office of Assistant Secretary of the Navy is the program sponsor. The Contracting Management Office of the Naval Supply Systems Command is the program manager. The Naval Sea Logistics Center Detachment Portsmouth is the program administrator, and will address initial contractor concerns. They can be reached at (603) 431-9460 ext. 465 or DSN 684-1690/1712. RYG program questions should be directed to the RYG Program Manager at NAVSUP in Mechanicsburg, PA at (717) 605-7498 or DSN 430-7498.

    RED ClassificationTraffic Light with just the red light illuminated.

    • Open Bulletin classified "RED"
    • Open critical GIDEP report
    • 3 or more open major GIDEP reports within 3 years  
    • > 2 defective lots with an ADR of > 9%
    •  >9 points total for PQDRs in the time frame
    • Latest Pre-Award Survey with a recommendation of "NO AWARD" with no corrective actions provided
    • Latest open Survey that was conducted has "UNACCEPTABLE" ratable factors
    • Last 2 Test Reports are unsatisfactory
    • Assessed Delivery Rate less than 65%Traffic Light with just the yellow light illuminated.


    YELLOW Classification

    • Open Bulletin classified "YELLOW"
    • 1-2 open major GIDEP reports
    • > 3 open minor GIDEP reports within 3 years
    • > 2 defective lots with ADR of > 3.6 % and < 9%; or 1 defective lot and an ADR > 3.6%; or > 2 defective lots with an ADR of > 9% and last 3 consecutive lots acceptable
    • 5-9 points total for PQDRs in the time frame
    • Latest Pre-Award Survey where Quality and the overall recommendation are in conflict
    • Latest Open Survey that was conducted in last 3years that has "Accept With Corrections" ratable factors
    • Last Test Report in 3 years is unsatisfactory
    • 65-89% on-time delivery
    • Assessed Delivery Rate <65% and only 1 late delivery
    • Assessed Delivery Rate <65% and last 3 deliveries on time

    Traffic Light with just the green light illuminated.GREEN Classification

    • An ADR of < 3.6%
    • > 2 defective lots with an ADR > 3.6% and < 9% and last 3 consecutive lots acceptable
    • Only 1 defective lot and an ADR > 3.6% and last 3 consecutive lots acceptable
    • Latest Pre-Award Survey recommended "AWARD"
    • A "No Award" Pre-Award Survey with acceptable corrective actions
    • Latest Survey has all "Acceptable" factors
    • Last Test Report is satisfactory
    • > 90% on-time delivery
    • Assessed Delivery Rate between 65% and 89% and last 3 deliveries on time
    • Contract performance data with no quality classification

    Assessed Defect Rate (ADR). Assessed Defect Rate (ADR) is based on Material Inspection Records. ADR factors the criticality of the defect into the overall reject rate. Critical = 1.0, Major = 0.5, Minor = 0.14.

    Primary and Secondary documents. Quality history documents are either primary or secondary in terms of usage. A weighting formula is used when both primary and secondary documents are involved in the classification. Primary documents are Material Inspection Records (MIRs), Product Quality Deficiency Reports (PQDRs), Product Oriented Surveys, Quality Systems Review, and Special Surveys. Secondary documents are Bulletins, GIDEP Alerts, Pre-Award Surveys, and Test Reports.

    Product Quality Deficiency Reports (PQDRs). PQDRs are assigned point values based on Category and type. Category I = 5 points, Category II Action = 2 points, and Category II Information = 1 point. (Category II PQDRs with an associated defect MIR are not used for classification.)

    Delivery Classifications. Delivery performance classifications are separate from quality performance classifications and are assigned Red, Yellow, Green, or Neutral classifications by individual FSCs. There is a five-day grace period factored into the delivery.

    RYG Recognition Awards.  The RYG Award Program is approved by the RYG Continuous Improvement Council.  Nominations for  an award may be made by anyone within the RYG community.  Naval Sea Logistics Center Detachment Portsmouth, together with the NAVSUP Program Manager, will make final selections for recognition.  After selections have been made the Director, NAVSEALOGCENDET Portsmouth, or a top Navy or Air Force official, will present a copy of the award to the recipient at the annual Quality and Procurement Conference.  The original certificate and letter of commendation will be sent to the individual via the senior official at his/her activity.  Recognition will also be published in the NAVSEALOGCENDET newsletter.  A Recognition Award may be given to any person who is a significant contributor or consistent supporter of the program.   Click here for nomination form

     

     


    Send questions/comments to:
    Customer Support Desk
    Voice Phone: (603) 431-9460 ext. 486    DSN 684-1690 ext. 486

    Naval Sea Logistics Center Detachment Portsmouth
    80 Daniel St., Suite 400
    Portsmouth, NH 03801

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    Last Updated: September 28, 2004
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