1. Contract Management: Key Role Past Performance Reporting Plays in the Acquisition Lifecycle
Julia B. Wise
Senior Procurement Policy Analyst
Office of Federal Procurement Policy
Office of Management and Budget

2. Scope - Government Coverage
US Procurement System
Scope - Government Coverage
112 Departments & agencies around the world
3,400 Contracting Offices
The People
30,000 Contracting Officers (FAR 1.602)
Contracting Officer’s Representatives (FAR 1.604)
Program Managers
300,000 purchase card holders
The FAR System governs the "acquisition process" by which the government purchases (acquires) goods and services. The process consists of three phases: (1) need recognition and acquisition planning, (2) contract formation, and (3) contract administration. The FAR System regulates the activities of government personnel in carrying out that process. The FAR System is codified at Title 48, Chapter 1 of the United States Code of Federal Regulations.
OFPP Memorandum on FAC-COR:

3. Contract Objective
Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. (FAR Part 2)
Obtain the best value for the government in procuring quality goods and services at a reasonable price in a timely manner
Seek to maximize full and open competition
Promote small business participation in government contracting
Obtain innovative goods and services
Obtain quality performance and supplies to ensure the customer’s needs are met and the taxpayers dollars are spent wisely.

4. OFPP Past Performance Initiative
Past performance information is relevant information, for future source selection purposes, regarding a contractor’s actions under previously awarded contracts. (FAR ).
Since 2009, OFPP has taken several actions to increase the number and quality of past performance submissions available to source selection officials, including:
• emphasizing reporting requirements through memos to agency officials;
• assessing and reporting on the level of compliance and quality of evaluations;
• directing the development of a compliance tracking tool;
• setting performance targets for certain agencies;
• directing the consolidation of systems for entering past performance information; and
• developing government-wide past performance guidance.
It includes, for example, the contractor’s record of conforming to contract requirements and to standards of good workmanship; the contractor’s record of forecasting and controlling costs; the contractor’s adherence to contract schedules, including the administrative aspects of performance; the contractor’s history of reasonable and cooperative behavior and commitment to customer satisfaction; the contractor’s record of integrity and business ethics, and generally, the contractor’s business-like concern for the interest of the customer

5. Acquisition Team Key Acquisition Team Players
Contracting Officer and Contract Specialist
COR - Technical Community
Quality Assurance
Budget/ Finance Officer
Legal Counsel
Program Manager or Project Manager
Customer /End-user
Designed for Use by:
Contracting Officers
Program and Procurement Analysts
Senior Procurement Executives
Congress, state, and local governments
System Administrators
Media, research groups, marketing groups, students, and commercial businesses
All other interested public parties

6. Pre-Award Process in Requiring Activity/Program Office
Google,
Check FPDS,
PPIRS, FAPIIS
Prepare acquisition package: SOW/SOO/PWS Draft Evaluation Criteria/ Plan
Define the Requirement
Develop Funding and Requisition Document
Prepare Independent Government Cost Estimate
Conduct Market
Research
KEY: SOW – Statement of Work SOO – Statement of Objective PWS – Performance Work Statement

7. Pre-Award Process in the Contracting Office
Receive Procurement Package
Assign CO/Buyer
Buyer Reviews
Validate Market Research
Finalize Acquisition Strategy/Plan
Issue RFQ/RFP
Management Review
Legal Review
Draft RFQ/RFP
Receive Offer/Compliance Review
Technical Evaluation of Offer/Price
Determine
LPTA/ Best Value
Procurement Management Review
Contract Performance
Debrief Offeror
Award
Legal Review

8. Award: Source Selection Process
Technical Proposal
Including PPI and
Cost proposal
Individual Evaluations of proposals based on solicitation criteria
RFP/RFQ Issued
RFP/RFQ Offer Received
Source Selection Panel Caucus
Contract Award
Award Decision
Debriefings
SSA Briefing
Comments Strengths Weaknesses
Deficiencies Merit & Confidence Ratings
Consensus Strengths Weaknesses
Deficiencies Merit & Confidence Ratings Cost Issues
KEY: RFP – Request for Proposal RFQ – Request for Quote SSA – Source Selection Authority
LPTA – Lowest Price Technically Acceptable

9. Post-Award: Contract Management Process
Quality Surveillance Plan - used to monitor Contract Performance
Prepare the
Contract File
Kick-Off Post-Award Conference or Meeting
Document Contract Performance
Modification Issued – within scope changes
Contract Closeout
Invoice Payments

10. Contract Management
Objective: Achieve the contract objective and outcomes.
What is it? The art and science of formulating, executing, administering and closing a contract transaction between the government and the contractor.
Who participates? The government and contractor participate in the contract management process.
What governs the process? Contract regulations that govern this process (FAR Part 42, Contract Administration and Audit Services)

11. Contract Management Best Practices Tips
Good Solicitation + Sound Contract Award = Good Contract Management
Starts with acquisition planning – the beginning dictates the end results
Plan for good contract management – develop a contract administration plan that measures the contractor's performance and supports payment
Start with a post-award conference .
Recommendations:
Know what you buying.
Establish an Acquisition Team or Integrated Project Team that can supplement your expertise.
Develop a Clear and Concise Clear Requirements with performance metrics.
Hold frequent meetings with contractors (subcontractors, if necessary) and document performance results
Designate a P/PM and COR upfront before the solicitation is issued.
Hold contractors accountable and manage the contract to success
involves activities performed by government officials after contract award to determine how well the government and the contractor performed to meet the contract requirements.
encompasses dealings between the government and the contractor from contract award until the work has been completed and accepted or the contract terminated, payment has been made, and disputes have been resolved.
constitutes that primary part of the procurement process that assures the government gets what it paid for.
focus on obtaining quality supplies and services on time and within budget.
Usually eliminate or minimize problems at:
During the solicitation phase
Time of award
During contract performance
Documents unique Terms and Conditions as well as any statutory requirements
Provides best value for the taxpayers’ dollars
Improves customers’ satisfaction
PBA, is where we state the outcome and the contract is responsible and accountable to provide that out Use watch example. Supports PMA.

12. What requires past performance evaluation?
1994 Federal Acquisition Streamlining Act (FASA) dated October 13, 1994 (Public Law )
It is appropriate and relevant that a contracting official consider a contractor’s past performance as an indicator that the offeror will successfully perform a contract to be awarded.
Federal Acquisition Regulation (FAR) (c)(iii)
FAR Part 42., Contract Administration and Audit Services
FAR 42.15, Past Performance Information
FAR is available at
The purpose of the FAR is to provide "uniform policies and procedures for acquisition."[1] Among its guiding principles is to have an acquisition system that satisfies customer's needs in terms of cost, quality, and timeliness; minimize administrative operating costs; conduct business with integrity, fairness, and openness; and fulfill other public policy objectives.[2]
Agencies are required to:
submit an electronic record of contractor performance in the Past Performance Information Retrieval System (PPIRS) - single, government-wide repository for contractor performance information on all actions over $150,000 (other thresholds exist for construction and A&E actions)
establish internal procedures for collecting and reporting past performance information to PPIRS
identify agency officials responsible for preparing interim and final performance evaluations; and
consider the achievement of small business goals in performance evaluations when the contract includes a Small Business Subcontracting Plan.

13. Mission and Business Plan Procurement/Contracting
Acquisition Roles
Mission and Business Plan
Budget
Acquisition Plan
Procurement/Contracting
Managing and Measuring Results
Program manager, requiring officials, contract specialist, contracting officer, logistics, others as needed. Program manager and requiring officials primary in this step
All with contracting officer representative and program office leading
Add budget officer, financial management
All of the above and add cost/price analyst as needed. Contracting officer primary in this step.
All with contracting officer leading

14. Where is Past Performance/Integrity information reported?
The Contract Performance Assessment Reporting System (CPARS) is a web-enabled system used to document contractor and grantee performance information as required by Federal Regulations.
Completed CPARS reports are transmitted to the Past Performance Information Retrieval System (PPIRS) where they are used to support future acquisitions.
CPARS includes Best Practices and a Quality Checklist that help agencies write quarterly evaluation reports.
The Past Performance Information Retrieval System (PPIRS) is a web-enabled, enterprise application that provides timely and pertinent contractor past performance information to the Department of Defense and Federal acquisition community for use in making source selection decisions.
The Federal Awardee Performance and Integrity Information System (FAPIIS) is a web-enabled application used to collect certain information on contractor and grantee performance. FAPIIS information is publicly available at
The Federal Awardee Performance and Integrity Information System (FAPIIS) is a web-enabled application used to collect contractor and grantee performance information including
Terminations for Cause or Default,
Defective Cost and Pricing Data,
Determinations of Non-Responsibility,
Terminations for Material Failure to Comply (grants), Recipient Not Qualified Determinations (grants),
Department of Defense (DoD) Determinations of Contractor Fault, and Administrative Agreements.
FAPIIS also includes contractor self-reported Criminal Convictions, Civil Proceedings, Administrative Proceedings, and settlements.

15. What are the Benefits of Past Performance Information
Validates statements made in proposal
Integral to best value source selection
Motivates contractors to strive for excellence
Recognizes good performance
Reduces risk and oversight
Confirms that government obtained the outcomes awarded.
Contractor can eventually be paid for services and supplies delivered.
Why evaluate past performance?
The main purpose of the past performance evaluation is to appropriately consider each offeror’s demonstrated record of performance in supplying products and services that meet users’ needs including cost and schedule. (MP5315.3, paragraph 5.5.3)
Why evaluate past performance? To aid the government’s decision process and award contracts to those companies that consistently produce and deliver quality products, on time and within cost!

16. Recent GAO Report: Past Performance Reporting
Rate of Compliance with Past Performance Reporting Requirement as of April 2013 and April for Top 10 Agencies Based on Number of Compliance Rate due
Agency
April 2013
April 2014
Defense
76%
83%
Treasury 47 71
Interior 15 51
Homeland Security 34 45
Justice 21 29
Agriculture 13 27
Veterans Affairs 4 25
Health and Human Services 10 24
State 3
General Services Administration
Other agencies 32
Total federal government
32%
49%
Source: Past Performance Information Retrieval System | GAO

17. Questions