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K EEP THE E ND IN M IND AT THE B EGINNING Contract Management, Administration and Compliance VAGP 2012 Spring Conference Francine C. Barnes Toya Peterson.

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Presentation on theme: "K EEP THE E ND IN M IND AT THE B EGINNING Contract Management, Administration and Compliance VAGP 2012 Spring Conference Francine C. Barnes Toya Peterson."— Presentation transcript:

1 K EEP THE E ND IN M IND AT THE B EGINNING Contract Management, Administration and Compliance VAGP 2012 Spring Conference Francine C. Barnes Toya Peterson March 22-23, 012 1

2 K EEP THE E ND IN M IND AT THE B EGINNING Course Objectives Contract Process Contract Management Contract Administration Contract Compliance Provide tips and strategies to prepare effective contracts 2

3 C ONTRACTING P ROCESS Objectives of the Contracting Process To obtain goods and services within the budgeted cost in accordance with the project schedule and the contract performance requirements and/or specifications 3


5 C ONTRACTING P ROCESS Procurement Planning Determining what to procure and when Solicitation Planning Documenting product requirements and identifying potential sources Solicitation Develop and issue invitation for bids or request for proposals 5

6 C ONTRACTING P ROCESS Source Selection Award solicitation in accordance with award clause Contract Administration Manage the contractual relationship with the contractor Contract Close Out or Termination Completion and settlement of the contract including resolution of any open item 6

7 C ONTRACT M ANAGEMENT Definition of Contract Management The art and science of managing a contractual agreement throughout the contracting process 7

8 R ESULTS O F N EGLECTED C ONTRACT M ANAGEMENT End user frustration because of poor contract performance in timeliness & quality Lack of contractor accountability Agency acceptance of poor quality Increased costs; and Under or overpayment to a contractor 8

9 9 End User or Contract Owner Contract Officer Contract Administrators and Contract Monitors Contract Management Team

10 R OLES AND R ESPONSIBILITIES Owner of the contract Overall responsibility for meeting project and contract objectives Cost Schedule Performance 10

11 R OLES AND R ESPONSIBILITIES Contract Officer Responsible for providing procurement support throughout the contracting process Authority comes from the Virginia Public Procurement Act 11

12 R OLES AND R ESPONSIBILITIES Contract Officer Prepare solicitation and addendum for posting and distribution with input from end user Receive and evaluate bids and proposals Award contract 12

13 R OLES AND R ESPONSIBILITIES Contract Officer Communicate duties & responsibilities to the Contract Administrator Mediates with contractor and Contract Administrator if performance is unsatisfactory 13

14 R OLES AND R ESPONSIBILITIES Contract Officer is the only one Authorized to make binding changes and modifications to a contract (including exercising contract renewal options) 14

15 R OLES AND R ESPONSIBILITIES Contract Administrator Manages the contractual relationship with the contractor in accordance with the contract specifications, scope of work and performance requirements 15

16 R OLES AND R ESPONSIBILITIES Contract Administrator Review the contract award package upon receipt Retain a file copy of contract Distribute contract copy to Contract Monitor Coordinate delivery of goods and services in accordance with contract Verify receipt and condition of goods and services immediately 16

17 R OLES AND R ESPONSIBILITIES Contract Administrator Contact Contract Officer for ANY changes or modifications to contract Report contractors persistent/serious service delivery failures to Contract Officer Review invoices for accuracy, approve partial or full payments, & pay promptly Track payments against contract progress 17

18 R OLES AND R ESPONSIBILITIES Contract Administrator Ensure expenditures do not exceed the total contract cost Maintain an open line of communication with the Contract Officer and the Contractor Communicate need for contract renewal to Contract Officer Provide input in development of future solicitations 18

19 R OLES AND R ESPONSIBILITIES Contract Monitor Understand specific tasks of contract requirements Review contract award package and receive clear direction from Contract Administrator Schedule the delivery of goods and performance of services with contractor Timely inspect the condition of goods received and quality of work performed Document and report the contractors failures to the Contract Administrator Provide input in development of future solicitations 19

20 20 CONTRACT ADMINISTRATOR CONTRACT START-UP DUTIES Review designation letter Sign and return to Contract Officer Identify contract requirements Identify and consult with contract team members Communicate roles and responsibilities

21 CONTRACT ADMINISTRATOR Conduct implementation meeting Coordinate other start-up activities as needed Create a file/binder to retain all contract information 21 CONTRACT START-UP DUTIES

22 C ONTRACT M ANAGEMENT T EAM A Successful Team Has effective communication Defined project expectations Accountability of all team members Dedication from contract management team 22

23 M EASUREMENT OF T EAMS S UCCESS Solicitations effectively convey requirements Early involvement to resolve contract issues No merit to protest and claims received Contractor performance tracked through proper documentation Expenditures within budget 23

24 G UIDING P RINCIPLES OF C ONFLICT R ESOLUTION Think Before Reacting Listen Actively Assure a Fair Process Attack the Problem 24

25 G UIDING P RINCIPLES OF C ONTRACT R ESOLUTION Accept Responsibility Use Direct Communication Look for Interest Focus on the Future Options for Mutual Gain 25

26 I DENTIFYING C ONTRACT R ISKS Eliminate the possibility of differing interpretations of the intent of contract Avoid using ambiguous phrases 26

27 T YPES O F C ONTRACT R ISKS Proposal Surety and Liability Contractual Schedule Performance Price 27

28 S AMPLE A MBIGUOUS P HRASES The repair is to be warranted for a minimum of 12 months. The trailer to be furnished to conform to the latest specifications. Equipment is to be delivered to the Main Headquarters. Any exceptions to these specifications must be listed in a letter attached to this bid. 28

29 S AMPLE U N A MBIGUOUS P HRASES All repairs shall be warranted for a minimum of 12 months from date repair is accepted by the department. The trailer must conform to Section 110 of the 2008 Edition of the National Equipment Motor Co publication or latest specifications. 29

30 S AMPLE U N A MBIGUOUS P HRASES Equipment must be delivered to Main Headquarters, 111 E Main Street, Richmond, VA on or before March 1, There can be no exceptions ….this is a mandatory requirement of an IFB. 30

31 E THICS & C ONTRACT A DMINISTRATION As government procurement- related employees we are all responsible to perform all duties on an ethically manner. 31


33 E THICS IN C ONTRACT A DMINISTRATION Your Ethical Performance May Also Touch: Immediate Family Members – spouse, children, parents, brothers, sisters, and any other person living in the same household as the employee lives Official Responsibility – anyone having the administration or operating authority, whether intermediate of final to initiate, approve, disapprove or otherwise affect a procurement transaction or any claim resulting there from Procurement Transaction – all functions that pertain to the obtaining of any goods, services or construction, including the description of requirements, selection and solicitation of sources, preparation and award, and all phrases of contract administration 33

34 C ODE OF V IRGINIA Penalty for Violation Any person convicted of a willful violation of any provision of this article shall be guilty of Class 1 misdemeanor. Upon conviction, any public employee, in addition to any other fine or penalty provided by law, shall forfeit his employment. 34

35 S AMPLE E THICS V IOLATION A contract administrator of a landscaping contract has a daughter that is on the youth softball team. The coach is the contractor awarded the landscaping contract. The contract administrator was collecting donations to raise money for the youth softball team to go Disney World. The contractor donated $2,000 to the youth softball team. 35

36 S AMPLE E THICS V IOLATION The same contract administrator needed to purchase a television and a DVD player for the conference room at the local office. The contractor of the landscaping contract was contacted to provide the television and DVD player. The contractor purchased the items from Best Buy for $2,100 and provided the items to the agency for $2,

37 S AMPLE V ENDOR R EQUIREMENT A qualified firm that is approved, authorized or licensed by roofing system manufacturers product and that is eligible to receive manufacturers warranty if the repair components were being placed as a new roofing system. Installer Certificates: Signed by roofing system manufacturer certifying that Installer is approved, authorized, or licensed by manufacturer to install similar EPDM roofing systems. 37

38 38

39 From: Your Managers Manager Sent: Tuesday, April 17, :06 AM To: Mr. Well Established Contract Administrator P.E. Cc: Your Boss Subject: Coe Trailer Issue Mr. Well Established Contract Administrator P.E.– Senator Frank Wagner called me regarding a dispute the district is in with Coe Co from Virginia Beach. His understanding is that Mr. Coes company manufactured a trailer for us, we paid for it and then it fell apart. We asked Mr. Coe to repair and he did not do this so we have called the bond. Mr. Coe has stated to the Senator that we overloaded the trailer and that is what broke it. Can you give me background on this please. The Senator is also sending me some information. 39

40 VDOT EQ ID R08601 – 16 Ton Tilt-Bed Trailer 40

41 Trailer loaded with 30,486 Lb. Front End Loader 41

42 Trailer Bowing under weight of 30,486 Lb. load Level across center 42

43 Extent of bowing 43

44 (1 ½ X 4) tubing, spaced at 24 center, is too small to handle 16 ton load limit. Insufficient welds throughout trailer (incomplete and without penetration) 44

45 Insufficient tubing is not supporting the decking 45

46 When tilted for loading\unloading, the side channel is digging into the tire sidewall. The channel has bowed as far as to the top of the rim. 46

47 There are plates welded between the frame and the hinge pins that are not completely welded and are without proper penetration of the weld. This is ALL that holds the bed to the frame! (shown on opposite side in next photo) 47

48 The hinge pin is not secure in the hinges. It has slid three inches to one side against the frame. 48

49 Tubing that the cushioning cylinder is attached to is not welded completely. 49

50 50

51 General : The 16-ton tilt-bed trailer shall conform to the following specifications. Delivery : Unit must be delivered and accepted before June 15, VDOT reserves the right to reject any unit delivered after June 15, Capacity : Trailer must be capable of hauling a 32,000 lb., load at 50 miles per hour. Platform : The tilting platform shall be 8 wide and not less than 20 long with 7 fold-down approach plate. Overall length of trailer is to be approximately 25. The rear of the platform must tilt all the way to the ground and permit loading of equipment without use of skids. Steel side channels to be approximately 8 deep. Deck is to be 2 oak. Platform lock is to be horizontal type. Lock must adjust itself for wear and hold tilt platform tight and rattle free. To have minimum of three lashing rings per side. To have single platform cushioning cylinder. 16-Ton Tilt-Bed Trailer Specification 51

52 16-T ON T ILT -B ED T RAILER S PECIFICATION Hitch : Towing eye is to be standard 3 inside diameter and full adjustable. An adjustable screw type tongue stand is to be supplied. Tongue must be equipped with a pair of ½ Grade 30 safety chains complete with grab hook with safety lock. Suspension : The trailer shall be equipped with spring suspension and two 16,000 lb., tandem axles with a total of eight wheels in a tandem arrangement. Axle spacing to be not less than 44. Radial tires are to be correct for trailer GVW. Spoke or disc wheels to be furnished. To have wheel oil seals. 52

53 16-T ON T ILT -B ED T RAILER S PECIFICATION Electrical System : Dual stop and taillights, side marker lights, license plate light, and turn signals to be supplied. Amber reflectors front and red reflectors rear and sides are required. Sealed modular wiring harness with rubber grommet mounted seal beam lights to be furnished. Miscellaneous : Trailer to weigh approximately 7,000 lbs. A license plate bracket is to be supplied. Warranty : The trailer is to be warranted for a minimum of 12 months from the date the unit is placed in service by the Virginia Department of Transportation (VDOT). Warranty is to include all items covered under the manufacturers standard warranty. Any forms required for updating warranty start dates are to be delivered to VDOT at the time the units are delivered. 53

54 16-T ON T ILT -B ED T RAILER S PECIFICATION Safety : Trailer to be furnished to conform to the (National Traffic and Motor Safety Act of 1966) Federal Motor Vehicle Safety Standards with amendments as of date of delivery and the Motor Vehicle Code of Virginia. Delivery : Equipment is to be delivered to the District Headquarter locations listed in the Request for Quote (RFQ). Unit to be fully assembled and ready to operate before being accepted by the Department. Current Model : To be standard proven model of manufacturers latest current production with additional features outlined herein. Unit not to be materially modified or augmented. 54

55 Can two 16 ton axles haul a 32,000 lb load at 50 miles per hour? Or would two 16 ton axles accommodate a trailer load, the weight of the trailer including the trailer tongue and the haul a total not to exceed 32,000 lbs? To build a trailer capable of hauling a 32,000 lb. load and weighing approximately 7,000 lbs would require a gross vehicle weight of 39,000 and two 19.5 ton axles? Please provide a copy of the certificate of origin for the referenced trailer or any other paper work delivered with the trailer that states the trailer towing or hauling capacity. ASK PROBING QUESTIONS 55

56 In May 2006, an award was made to buy a 16 ton trailer per AMD specification dated April 6, The Company delivered the trailer on September 22, 2006 and the trailer is not capable of hauling a 32,000 pound load at 50 miles per hour. The trailer suffered structural damage when the district loaded 30,486 pounds on the trailer. The Company stated that the trailer specified in the 16 Ton Tilt Bed Trailer Specification dated April 6, 2006 could not be built to haul 32,000 lbs. INFORMATION GATHERING 56

57 T IPS FOR IMPROVING C ONTRACT M ANAGEMENT, A DMINISTRATION AND C OMPLIANCE Avoid using ambiguous terms Identify risk at planning stage Meet with vendor community Establish contract management team early 57

58 T IPS FOR IMPROVING C ONTRACT M ANAGEMENT, A DMINISTRATION AND C OMPLIANCE Maintain open mind when gathering information Seek legal counsel input When documenting compliance issues use direct quotes from solicitation or contract to strength position 58

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