6 Generally accepted definition: • Contract Administration is a system that ensures contractors perform in accordance with the terms, conditions, and specifications of the contract
7 Possibilities Hand it off: Contract outDCMA (DoD)Keep it and do Contract Administration yourself (Cradle to Grave)
8 Contract Administration Top Level Considerations:DeliveryVendor Invoicing and PaymentCloseoutArchive
9 Where to Start Read the Contact Goods or Services or both? What is to be Delivered?When is it to be Delivered?Firm-Fixed Price or Cost Reimbursement?Determine approach & establish a plan
10 Guidelines for the FEDs For the Federal Workforce Guidance is in the FAR:Title 48: Federal Acquisition Regulations System PART 42—CONTRACT ADMINISTRATION AND AUDIT SERVICES Subpart 42.3—Contract Administration Office Functions42.301 General.When a contract is assigned for administration under Subpart 42.2, the contract administration office (CAO) shall perform contract administration functions in accordance with 48 CFR Chapter I, the contract terms, and, unless otherwise agreed to in an interagency agreement (see ), the applicable regulations of the servicing agency. [63 FR 9063, Feb. 23, 1998]42.302 Contract administration functions.
11 Kickoff MeetingRegardless of the size of your Acquisition, you should hold a kickoff meeting. Goal of the meeting is:Achieve clear and mutual understanding of all contact requirementsEnsure common understanding of expected process and deliverablesIdentify and resolve potential problems
12 Buyer and Seller: Contract Administration Ensure that all contractual obligations are met through communication among all necessary parties; manage contract disputes through negotiation/resolution and review lessons learned throughout performance and at contract completion.Communicate Contract AuthorizationPlan Contract AdministrationManage Contract performance *Review Contract CompletionNCMA World Congress 2008 – Session #310
13 Manage Contract Performance ***Delivery Phase***Dealing with the Problems/Issues that arise during the Performance of the Contract
14 Monitoring Progress Involves regular review and analysis of: Monthly Status ReportsPlanned vs. Actual costsPlanned vs. Actual performanceAccuracy of Contractor reports
15 Past PerformanceOne of your responsibilities is to not only manage but document the contractor’s performance.This is relevant information for future source selection purposes and risk analysis effortsIf embraced, it could significantly improve source selection and contract management.
16 Contract Delivery Delivery requirements are specified in the contract: Time and place of deliveryQuantity to be deliveredMethod of deliveryIndividual or office with the authority to receive and accept the deliverables
17 Contract Modification Definition: A contract’s terms and conditions such as it’s Statement of Work, Period of Performance, quantity, or price, are modified in writing.Contracting Officer is the only person authorized to make any contract modification.
18 Unilateral Modification Unilateral Modifications are used to:Make a change authorized by contract clausesMake an administrative changeIssue a change orderIssue a Termination Notice
19 Bilateral Modifications Bilateral Modifications include:Cost Overrun ModificationExtend the period of performance for completion of contract requirementsDefine letter contractsIncorporate any other agreements of the contracting parties
20 Examples of Contract Administration Areas of Concern Notification to Unsuccessful OfferorsDebriefing of Unsuccessful OfferorsProtestsCOTR Appointments & CorrespondenceBondsPost-Award Orientation ConferencesMaterial Deficiencies
21 Examples of Contract Administration Areas of Concern ClaimsFederal Procurement Data System ReportsCOTR RecommendationsPerformance / Surveillance ReportsDeliverable / Status ReportsPost Award CorrespondenceRevenue and Debt Collection
22 Examples of Contract Administration Areas of Concern Termination ActionsSoftware Licensing AgreementsLabor DisputesProperty issuesModifications / NegotiationsInvoices & Payments*Freedom of Information Requests
23 Examples of Contract Administration Areas of Concern Assignment of ClaimsNovationsChange of Name AgreementsSuspensions and DebarmentsCongressional InquiriesDuty Free Entry of Goods
24 More… Subcontracting Certificate of Confidentiality and Non-Disclosure Security Clauses & IssuesEVEN MORE>>>Under FAR (a) 70 Activities listedUnder FAR (b) 11 Activities listed
25 By Contract Type Firm-Fixed Price Cost Reimbursement DeliverablesContractor PaymentsCost ReimbursementProvisional and Actual Audits of Contractors Books (determination of RATES)Labor / Time Keeping AuditsGrants / Other TransactionsSpecial Rules on Expenditures
26 Vendor Invoicing and Payment AuthorizationProcess?Separate Pay Office?Funding:Advance PaymentsProgress PaymentsPerformance Based PaymentsLoan GuaranteesInterim Payments
27 Back to the Life Cycle O.K. all issues have been dealt with… Everything has been deliveredThe contractor has been paidNOW WHAT?
28 Contract CloseoutDefinition: Contract is officially ended. There is no longer a contractual relationship between the Government and the contractor.The contractor has completed all deliverables.The CO or COTR has signed off on the deliverables.
29 Close Out Close out if Physically complete*: (1)(i) The contractor has completed the required deliveries and the Government has inspected and accepted the supplies;(ii) The contractor has performed all services and the Government has accepted these services; and(iii) All option provisions, if any, have expired; or(2) The Government has given the contractor a notice of complete contract termination.(b) Rental, use, and storage agreements are considered to be physically completed when—(1) The Government has given the contractor a notice of complete contract termination; or(2) The contract period has expired.* FAR
30 Close Out Release of Claims Reporting of Royalties Patents & Copyrights InfringementsProperty Issues – final inventoriesAudit Settlements
31 Final Phase Archive Documentation Hold on to it – a required time period** For the Feds: See FAR 4.805