Contracting Overview Things needed in a contract What’s being agreed to? When changes are needed Followup / status reviews (And why!)

Program Specific Follow program rules Who’s eligible? Limitations? What form to use? Contract length? Some things are universal

Contract Components GM Contract form with signatures Special provisions and supplements, as needed Plan/Schedule of Operations Plan maps Explanation of violations and procedures to be followed.

Signatures Program participant(s) SCIMS (they are who they say they are!) Evidence of Authority for Entities Power of Attorney (if applicable) NRCS Legally binding

Participant agrees to: Participate in program for specified term Implement the conservation plan Comply with terms & conditions in contract, appendix, addenda Pay liquidated damages as per appendix, if applicable GM

NRCS agrees to: Establish cost share rate Provide authorized technical assistance Make payment When work passes checkout And participant furnishes certifications & itemized statements of costs GM

Agreed-to Items Work to be done Participant is responsible Measurable components Government money to be paid Follow the Plan: what & when Operation and Maintenance for the program life of the practice GM 180 Part

Why Measurable Components? Clearly identifies what’s being done Can adjust quantities (estimated vs designed) Can tell if it’s done & ready for payment Can compare billed items to contract for quality assurance Keeps us out of trouble! Streamline FO operations

Cost Share Definitions =Actual cost not to exceed the average cost =Actual cost not to exceed a specified maximum cost =Average cost (AC times % cost share equals producer payment) =Flat rate (no percentage applied) AA AM AC FR GM

Explain the money part Example: 60% cost share on an acre of waterway If the cost list says: Earthwork ACRE $1800 AM …then the participant will get 60% of what it cost to build the practice ONLY IF the cost to build was less than or equal to $1800!

Overbuilding NRCS pays on what was designed. Least cost alternative to achieve NRCS standards on the resource concerns. Additional costs borne by the participant EQIP Manual g

Make sure the participant(s) know what they’re agreeing to!

ProTracts can help: Checks program rules Fills in contract terms Puts electronic signatures in the right place

Spending Adjustment? Minor changes to quantities Money is available in the contract No formal modification procedure is required See specific program manual for more details GM

It’s OK to do a modification Substituting, adding, or deleting a practice Cost overruns (not enough money budgeted in the contract) Scheduling changes Changing participant(s) or land Adding TSP $$ Repairing a failure GM

Following up Make sure there are no violations of the contract Determine the need for contract modification

Status Reviews Completed annually for the life of the contract Assistance notes are fine for routine documentation See matrix