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1 Contract Administration Briefing for NCMA Lone Star Chapter Presented by Richard Furlong, C.P.M., Fellow Nov. 13, 2008.

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Presentation on theme: "1 Contract Administration Briefing for NCMA Lone Star Chapter Presented by Richard Furlong, C.P.M., Fellow Nov. 13, 2008."— Presentation transcript:

1 1 Contract Administration Briefing for NCMA Lone Star Chapter Presented by Richard Furlong, C.P.M., Fellow Nov. 13, 2008

2 2 Acquisition Situation So… Youve determined what you needed Youve determined what you needed Did your Market Research Did your Market Research Came up with some money Came up with some money Solicited your requirement Solicited your requirement Negotiated with Offerors Negotiated with Offerors And made an Award! And made an Award! Now What?

3 3 Procurement Life Cycle Define Requirements Define Requirements Pre-Award Pre-Award Award Award Post-Award Post-Award Contract Administration Contract Administration

4 4 Post Award Sometimes broken out to mean only issues dealing with: Post Award Conferences Post Award Conferences Modifications Modifications Funding Funding Reporting (FPDS, Metrics) Reporting (FPDS, Metrics)

5 5 Contract Administration

6 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 7 Possibilities Hand it off: Hand it off: Contract out Contract out DCMA (DoD) DCMA (DoD) Keep it and do Contract Administration yourself (Cradle to Grave) Keep it and do Contract Administration yourself (Cradle to Grave)

8 8 Contract Administration Top Level Considerations: Top Level Considerations: Delivery Delivery Vendor Invoicing and Payment Vendor Invoicing and Payment Closeout Closeout Archive Archive

9 9 Where to Start Read the Contact Read the Contact Goods or Services or both? Goods or Services or both? What is to be Delivered? What is to be Delivered? When is it to be Delivered? When is it to be Delivered? Firm-Fixed Price or Cost Reimbursement? Firm-Fixed Price or Cost Reimbursement? Determine approach & establish a plan Determine approach & establish a plan

10 10 Guidelines for the FEDs For the Federal Workforce Guidance is in the FAR: For the Federal Workforce Guidance is in the FAR: Title 48: Federal Acquisition Regulations System PART 42CONTRACT ADMINISTRATION AND AUDIT SERVICES Subpart 42.3Contract Administration Office Functions PART 42CONTRACT ADMINISTRATION AND AUDIT SERVICES Subpart 42.3Contract Administration Office Functions PART 42CONTRACT ADMINISTRATION AND AUDIT SERVICES Subpart 42.3Contract Administration Office Functions General 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] Contract administration functions Contract administration functions.

11 11 Kickoff Meeting Regardless 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 requirements Achieve clear and mutual understanding of all contact requirements Ensure common understanding of expected process and deliverables Ensure common understanding of expected process and deliverables Identify and resolve potential problems Identify and resolve potential problems

12 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 Authorization Plan Contract Administration Manage Contract performance * Review Contract Completion NCMA World Congress 2008 – Session #310

13 13 Manage Contract Performance ***Delivery Phase*** Dealing with the Problems/Issues that arise during the Performance of the Contract Dealing with the Problems/Issues that arise during the Performance of the Contract

14 14 Monitoring Progress Involves regular review and analysis of: Monthly Status Reports Monthly Status Reports Planned vs. Actual costs Planned vs. Actual costs Planned vs. Actual performance Planned vs. Actual performance Accuracy of Contractor reports Accuracy of Contractor reports

15 15 Past Performance One of your responsibilities is to not only manage but document the contractors performance. This is relevant information for future source selection purposes and risk analysis efforts This is relevant information for future source selection purposes and risk analysis efforts If embraced, it could significantly improve source selection and contract management. If embraced, it could significantly improve source selection and contract management.

16 16 Contract Delivery Delivery requirements are specified in the contract: Time and place of delivery Time and place of delivery Quantity to be delivered Quantity to be delivered Method of delivery Method of delivery Individual or office with the authority to receive and accept the deliverables Individual or office with the authority to receive and accept the deliverables

17 17 Contract Modification Definition: A contracts terms and conditions such as its 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. Contracting Officer is the only person authorized to make any contract modification.

18 18 Unilateral Modification Unilateral Modifications are used to: Make a change authorized by contract clauses Make a change authorized by contract clauses Make an administrative change Make an administrative change Issue a change order Issue a change order Issue a Termination Notice Issue a Termination Notice

19 19 Bilateral Modifications Bilateral Modifications include: Cost Overrun Modification Cost Overrun Modification Extend the period of performance for completion of contract requirements Extend the period of performance for completion of contract requirements Define letter contracts Define letter contracts Incorporate any other agreements of the contracting parties Incorporate any other agreements of the contracting parties

20 20 Examples of Contract Administration Areas of Concern Notification to Unsuccessful Offerors Debriefing of Unsuccessful Offerors Protests Protests COTR Appointments & Correspondence COTR Appointments & Correspondence Bonds Bonds Post-Award Orientation Conferences Post-Award Orientation Conferences Material Deficiencies Material Deficiencies

21 21 Examples of Contract Administration Areas of Concern Claims Claims Federal Procurement Data System Reports Federal Procurement Data System Reports COTR Recommendations COTR Recommendations Performance / Surveillance Reports Performance / Surveillance Reports Deliverable / Status Reports Deliverable / Status Reports Post Award Correspondence Post Award Correspondence Revenue and Debt Collection Revenue and Debt Collection

22 22 Examples of Contract Administration Areas of Concern Termination Actions Termination Actions Software Licensing Agreements Software Licensing Agreements Labor Disputes Labor Disputes Property issues Property issues Modifications / Negotiations Modifications / Negotiations Invoices & Payments* Invoices & Payments* Freedom of Information Requests Freedom of Information Requests

23 23 Examples of Contract Administration Areas of Concern Assignment of Claims Assignment of Claims Novations Novations Change of Name Agreements Change of Name Agreements Suspensions and Debarments Suspensions and Debarments Congressional Inquiries Congressional Inquiries Duty Free Entry of Goods Duty Free Entry of Goods

24 24 More… Subcontracting Subcontracting Certificate of Confidentiality and Non- Disclosure Security Clauses & Issues Security Clauses & Issues EVEN MORE>>> Under FAR (a) 70 Activities listed Under FAR (b) 11 Activities listed

25 25 By Contract Type Firm-Fixed Price Firm-Fixed Price Deliverables Deliverables Contractor Payments Contractor Payments Cost Reimbursement Cost Reimbursement Provisional and Actual Audits of Contractors Books (determination of RATES) Provisional and Actual Audits of Contractors Books (determination of RATES) Labor / Time Keeping Audits Labor / Time Keeping Audits Grants / Other Transactions Grants / Other Transactions Special Rules on Expenditures Special Rules on Expenditures

26 26 Vendor Invoicing and Payment Authorization Authorization Process? Process? Separate Pay Office? Separate Pay Office? Funding: Funding: Advance Payments Advance Payments Progress Payments Progress Payments Performance Based Payments Performance Based Payments Loan Guarantees Loan Guarantees Interim Payments Interim Payments

27 27 Back to the Life Cycle O.K. all issues have been dealt with… Everything has been delivered The contractor has been paid NOW WHAT?

28 28 Contract Closeout Definition: Contract is officially ended. There is no longer a contractual relationship between the Government and the contractor. The contractor has completed all deliverables. The contractor has completed all deliverables. The CO or COTR has signed off on the deliverables. The CO or COTR has signed off on the deliverables.

29 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; (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 (ii) The contractor has performed all services and the Government has accepted these services; and (iii) All option provisions, if any, have expired; or (iii) All option provisions, if any, have expired; or (2) The Government has given the contractor a notice of complete contract termination. (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 (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 (1) The Government has given the contractor a notice of complete contract termination; or (2) The contract period has expired. (2) The contract period has expired. * FAR

30 30 Close Out Release of Claims Release of Claims Reporting of Royalties Reporting of Royalties Patents & Copyrights Infringements Patents & Copyrights Infringements Property Issues – final inventories Property Issues – final inventories Audit Settlements Audit Settlements

31 31 Final Phase Archive Archive Documentation Documentation Hold on to it – a required time period* Hold on to it – a required time period* * For the Feds: See FAR 4.805

32 32 Questions Document, document, document…


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