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NCMA Philadelphia Lunch & Learn What Does the Contract Say? E. Jean Labadini, Senior Advisor November 25, 2014.

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Presentation on theme: "NCMA Philadelphia Lunch & Learn What Does the Contract Say? E. Jean Labadini, Senior Advisor November 25, 2014."— Presentation transcript:

1 NCMA Philadelphia Lunch & Learn What Does the Contract Say? E. Jean Labadini, Senior Advisor November 25, 2014

2  This session will highlight the importance of knowing, understanding and sharing the regulatory requirements and special provisions contained in prime contracts and subcontracts. In most organizations, industry/government contract administrators are responsible for communicating requirements, and changes to those requirements, to other functions. Not doing so, or not doing it well, could have direct impact on compliance tests of business systems. So, what’s in your contract? NCMA Philadelphia Lunch & Learn – What Does the Contract Say?

3  Objective Raise awareness that the contract is a key input to a business system status assessment

4 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  What does the Contract say?  What do the Regulations say? (FAR/DFARS/DEARS etc)  What does your Policy say?  What does your Database look like?  What does Experience say?  What does your Customer say?  What do You say?

5 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  Determining whether or not your business is subject to a system review is easy, right?  It is when you know what you’re looking for…  What does the Contract say?

6 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  In the case of your Purchasing System, the Government’s “right of entry” if you will, is contained in the Subcontracts Clause , specifically, paragraph (i) which reads “The Government reserves the right to review the Contractor’s purchasing system as set forth in FAR Subpart 44.3.”  Many people refer to the clause as the Advance Notification and Consent Clause without realizing the implications  The Contractor Purchasing System Administration clause is not inserted in a contract unless it also contains

7 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  What do you think would happen if you walked away knowing nothing more than what I just said?  What do the Regulations say?

8 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  Well, you might miss the fact that has an Alternate that provides that it be included in contracts that contain Contractor Counterfeit Electronic Part Detection and Avoidance System even if the contract does not contain the -2.

9 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  What does your Policy say?  How are you communicating contract requirements to other functional elements of your company/organization?  Are requirements hard coded in a management system? Prime contract number/Subcontract number, DPAS Rating?  Are mandatory flow down clauses identified?  Are you communicating changes to the contract terms when a modification has been issued?  What are you doing if your prime was competitively awarded, then modified to add new work subject to requirements for certified cost or pricing data?  If you are not in the contracts organization, how are you being notified of contract requirements, and any changes to those requirements? Can you rely on that process?

10 Safety Precautions for Ammunition and Explosives. As prescribed in , use the following clause: SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES (MAY 1994) (g) Subcontractors. (1) The Contractor shall insert this clause, including this paragraph (g), in every subcontract that involves ammunition or explosives. (i) The clause shall include a provision allowing authorized Government safety representatives to evaluate subcontractor safety programs, implementation, and facilities as the Government determines necessary. (ii) NOTE: The Government Contracting Officer or authorized representative shall notify the prime Contractor of all findings concerning subcontractor safety and compliance with the manual. The Contracting Officer or authorized representative may furnish copies to the subcontractor. The Contractor in turn shall communicate directly with the subcontractor, substituting its name for references to “the Government”. The Contractor and higher tier subcontractors shall also include provisions to allow direction to cease performance of the subcontract if a serious uncorrected or recurring safety deficiency potentially causes an imminent hazard to DoD personnel, property, or contract performance. (2) The Contractor agrees to ensure that the subcontractor complies with all contract safety requirements. The Contractor will determine the best method for verifying the adequacy of the subcontractor's compliance. (3) The Contractor shall ensure that the subcontractor understands and agrees to the Government's right to access to the subcontractor's facilities, personnel, and safety program documentation to perform safety surveys. The Government performs these safety surveys of subcontractor facilities solely to prevent the occurrence of any mishap which would endanger the safety of DoD personnel or otherwise adversely impact upon the Government's contractual interests. (4) The Contractor shall notify the Contracting Officer or authorized representative before issuing any subcontract when it involves ammunition or explosives. If the proposed subcontract represents a change in the place of performance, the Contractor shall request approval for such change in accordance with the clause of this contract entitled “Change in Place of Performance--Ammunition and Explosives”. NCMA Philadelphia Lunch & Learn – What Does the Contract Say?

11 Safeguarding Sensitive Conventional Arms, Ammunition, and Explosives. As prescribed in , use the following clause: SAFEGUARDING SENSITIVE CONVENTIONAL ARMS, AMMUNITION, AND EXPLOSIVES (SEP 1999) (e) The Contractor shall notify the cognizant DSS field office of any subcontract involving AA&E within 10 days after award of the subcontract. (f) The Contractor shall ensure that the requirements of this clause are included in all subcontracts, at every tier (1) For the development, production, manufacture, or purchase of AA&E; or (2) When AA&E will be provided to the subcontractor as Government-furnished property. NCMA Philadelphia Lunch & Learn – What Does the Contract Say?

12  In this case, what does your Database look like?

13 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?

14  In this case…What does Experience say?

15 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  Inn  In this case, the contract did not include or …What does the Customer say?

16 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?

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18  Objective Raise awareness that the contract is a key input to a business system status assessment

19 NCMA Philadelphia Lunch & Learn – What Does the Contract Say?  Questions?


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