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

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

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

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

Contract Administration

Generally accepted definition: • Contract Administration is a system that ensures contractors perform in accordance with the terms, conditions, and specifications of the contract

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

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

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

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 Functions 42.301   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 42.002), the applicable regulations of the servicing agency. [63 FR 9063, Feb. 23, 1998] 42.302   Contract administration functions.

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 Ensure common understanding of expected process and deliverables Identify and resolve potential problems

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

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

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

Past Performance One 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 efforts If embraced, it could significantly improve source selection and contract management.

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

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.

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

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

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

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

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

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

More… Subcontracting Certificate of Confidentiality and Non-Disclosure Security Clauses & Issues EVEN MORE>>> Under FAR 42.302(a) 70 Activities listed Under FAR 42.302(b) 11 Activities listed

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

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

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

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 CO or COTR has signed off on the deliverables.

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 4.804-4

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

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

Questions Document, document, document…