Monitoring ProTech Service Contracts - PowerPoint Presentation

Slide1

Monitoring

ProTech Service Contracts

Slide2

DEFINITION

2

Contract Monitoring

[ noun, verb,

kon

-trakt

mon

-

i

-

ter-ing

]

Contract monitoring is a regular process of evaluating contractor performance based on measurable service deliverables, and verifying compliance with the standards, terms and conditions in the contract.

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BASIC OBJECTIVES

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1. To get what the government needs

2. When it needs it

3. At a fair and reasonable price

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PURPOSES OF MONITORING PROTECH ORDERS

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Improve

ProTech

program performance

Identify potential problems

Evaluate agency performance controls

Assure that financial documentation is adequate and accurate

Identify program and/or financial problems as early as possible

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EXAMPLES OF FAIR OPPORTUNITY EXCEPTIONS

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Three major goals –

To achieve clear and mutual understanding of the contractual requirements

To understand what the contractor is planning to do

To answer contractor questions and resolve potential problems

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COR

PROTECH CONTRACTING OFFICER’S REPRESENTATIVE ROLE

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Know the contract requirements

Determine monitoring techniques to be used

Develop a work plan

Monitor performance

Keep the Contracting Officer (CO) advised

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ETHICS & STANDARDS OF CONDUCT

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• Treat contractors impartially (FAR 3.101-1)

• Do not accept gratuities

• Do not discuss employment opportunities with contractors

• Avoid conflicts of interest

• Safeguard source selection or proprietary information.

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THE COR WORK PLAN

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A baseline for project management and scheduling

A simple tool for tracking contract progress

An aid for the post award orientation conference

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ELEMENTS OF A COR WORK PLAN

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Administrative items (e.g., contract number, dollar amount, type of contract)

Historical factors

Monitoring techniques

Documentation of the contractor’s performance

Areas of concern or conflict

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EXAMPLE COR WORK PLAN OUTLINE

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Contract

Number and Title:

Criticality Designator:

Contract Amount: $ (base year); total of $ for all 5 years

Contract Type:

Date of Award:

Responsibilities under Contract (as detailed in designation letter)

Determining the adequacy of contractor performance

Representing the government in directing work

Ensuring compliance of work with requirements

Advising the CO.

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EXAMPLE COR WORK PLAN OUTLINE

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Government Points of Contact

Contract Administrator:

Responsible for:

Day-to-day inspection and monitoring

Documenting inspections

Following through on deficiencies.

Contractor:

Location of Files

–

Contractor’s Scope of Work

To provide all management, supervision, labor, materials, supplies, and equipment (except as specified)

To plan, schedule, coordinate, and ensure effective performance of:

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EXAMPLE COR WORK PLAN OUTLINE

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Place of Performance:

Contractor Reporting Requirements

Annual Daily/Periodic Schedule submitted five workdays prior to start date and then annually

Daily Work Report (GSA Form 64 or equivalent), submitted daily to the COR

Quality Control Program, submitted five workdays prior to start date

Resumes of initial and replacement supervisors.

Contractor Milestones

Previous Contracts

(This is a first-time contractor. There is no information on file for this contractor.)

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EXAMPLE COR WORK PLAN OUTLINE

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Potential Problem Areas

All supplies, materials, and equipment used by the contractor must conform to specifications and must, on request, be identified; possible problems could be avoided by requesting a listing prior to the start date and prior to any substitutions.

Space for locker rooms for contractor personnel, for storage of equipment and supplies, and for use as the contractor’s onsite office is to be government-furnished; this space should be identified and inspected prior to the start date.

Contract does not specify which official will determine when the contractor’s personnel will be diverted for snow removal or emergency conditions; when given, these instructions should be in writing to avoid disputes over deductions.

The contractor is to have the opportunity to re-perform deficient services and ensure future services before deductions are taken; however, no time limit for remedial action is specified.

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EXAMPLE COR WORK PLAN OUTLINE

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Monitoring

Contractor technical and schedule techniques to be used:

Making onsite visits and personal observations

Contacting the quality assurance specialist

Reviewing progress or status reports.

Documentation

The contractor’s performance will be documented in the contract file using:

Monitoring Report.

Action Requirements

Attend post award preliminary briefing on (Date) with CO to discuss roles and responsibilities for post award conference with contractor, scheduled for (Date).

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STEPS IN MONITORING CONTRACTS

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DETERMINE WHAT NEEDS TO BE MONITORED

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Contractor technical and schedule compliance

Costs (in cost-type contracts)

The financial condition of a contractor

The contractor’s statutory compliance

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SELECT THE TECHNIQUES USED FOR MONITORING

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Monitoring techniques include:

Conducting meetings

Making onsite visits and other personal observations

Reviewing contractor reports

Reviewing tracking and management systems

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DETERMINE HOW TO DOCUMENT MONITORING ACTIONS

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Meeting Minutes

Correspondence

Letter

Email

Surveillance reports

Technical Analysis

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DOCUMENTING PERFORMANCE ISSUES

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A description of the performance problems

Discussion of mitigating or extenuating circumstances, if any

Indexed file or related documents documenting performance problems

An analysis of the impact that the contractor’s performance problems have had on:

Overall cost

Delays in obtaining needed services

Mission accomplishment.

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GFP

GOVERNMENT-FURNISHED PROPERTY

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Supervise the initial transfer of government property

Monitor the contractor’s use of government property

Monitor the disposition of government property

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TRANSFER OF GOVERNMENT PROPERTY

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Establish an inventory list of the property being delivered

Set up management requirements

Inspect government-provided equipment

Document transfer

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USE OF GOVERNMENT PROPERTY

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Ensure the contractor maintains an adequate property management system

Perform periodic property audits

Record any notification from the contractor that the government-furnished equipment is in need of repair

Report of any shortages, losses, damage, destruction, or misuse of GFP to the CO

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DISPOSITION OF GOVERNMENT PROPERTY

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When the contract is completed, the government may:

Request that the contractor deliver government property back to the government

Request that the contractor deliver government property to another government contract site

Dispose of the property.

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DISPOSITION OF GOVERNMENT PROPERTY

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When disposing of property, the government may choose one of the following options (listed in preferred priority order):

Allow the contractor to purchase or retain the government property at cost

Return the property to the suppliers

Use the property within the government

Donate the property to eligible entities (e.g., schools, charitable organizations)

Sell the property

Donate the property to other public agencies (e.g., state and local

governments)

Abandon the property.

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DOCUMENTING DELAYED PERFORMANCE

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Identify the existence of a delay

Substantiate the evidence of the delay

Substantiate the costs associated with the delay

Determine if the delay was excusable (i.e., beyond the contractors control and without its fault or negligence)

Potential alternatives and resolution recommendations

Pros and cons of each listed alternative or resolution

Notify the Contracting Officer

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

1

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PROBLEM

OPTIONS

COMMENT

Late delivery

(The

CO has determined that

the deliverable has been

or will be delivered late

and that the delay is

non-excusable.)

Reschedule the delivery date

in exchange for consideration (i.e., something of value in return from the contractor).

Appropriate when (1) no liquidated damages clause was included in

the original contract, (2) there is a

reasonable probability of delivery

by the new delivery date, and (3)

the requiring activity can accept the new date.

Reduce or suspend progress

payments under FAR 52.232-

16(c)(2). For advance payments, see FAR 52.232.12(k).

Appropriate when (1) progress

payments are being made and (2)

performance of the contract is

endangered by the contractor’s failure to make progress.

1

The COR/COTR Answer Book,

Third Edition

Bob Boyd, CFCM

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

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Late delivery

(cont.)

Accept late delivery and

impose liquidated damages.

Appropriate when (1) the contract

provides for liquidated damages and (2) there is a reasonable probability of delivery by a date the requiring activity can accept.

Send a cure notice (ten days

or more prior to the contract’s

delivery date) or a show cause

notice (immediately upon expiration of the delivery period).

Appropriate when there is little

probability of delivery by a date that the requiring activity can accept, or the contractor has not offered adequate consideration.

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

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The deliverable has not been accepted and does not conform to the contract’s requirements

. (The

CO has determined that the deliverable has not been implicitly or explicitly accepted and does not conform to the contract’s requirements.)

Accept the deliverable without

consideration.

Appropriate when the nonconformance is minor and obtaining consideration is not in the government’s interests (see FAR 46.407(f)).

Accept the deliverable in

exchange for consideration.

Appropriate when the requiring

activity can tolerate non-conformance (see FAR 46

407(c))

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

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The deliverable has not been accepted and does not conform to the contract’s requirements

(cont.)

Accept the deliverable and

invoke a warranty to have the

deliverable improved to meet

specifications after acceptance.

Appropriate when there is an express or implied warranty and immediate acceptance will benefit the requiring activity.

Reject the deliverable and

obtain correction or replacement at no cost to the government. Tell the payment office to withhold payment until an acceptable deliverable has been furnished.

Appropriate when there is a reasonable expectation that a satisfactory replacement will be provided by the delivery date in the contract, or for consideration, within a reasonable time thereafter.

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

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The deliverable has

not

been accepted and does not conform to the contract’s requirements

. (cont.)

Reject the deliverable and send a cure or show cause notice.

Appropriate when there is little

expectation of receiving an acceptable product within a reasonable time.

The deliverable

has

been accepted but does not conform to the contract’s requirements

(The CO has determined that the

government has a reasonably strong case for revoking acceptance

based on the terms and conditions of the contract.)

Invoke an express warranty.

Appropriate if an express warranty

applies.

Invoke an implied warranty

Appropriate if an implied warranty

applies.

Demand that the deliverable be replaced or corrected or that the price be adjusted downward.

Appropriate if there is a latent defect in the deliverable or if acceptance was based on fraud or gross mistake

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

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Other breaches

(The CO has exhausted all efforts at informal resolution of the problem.)

Invoke whatever remedy (if any) is established in the applicable clause

Possible solutions for contractor

breaches:

• Liquidated damages (per FAR

52.219-16) for failing to comply

with the subcontracting plan

• Liquidated damages and withholding for unpaid wages (under FAR 52.222-4, “Contracting

Work Hours and Safety Standards

Act Overtime Compensation”)

• Cancellation, suspension, or

termination of the contract (under FAR 52.222-26, “Equal

Opportunity”)

Suspend or reduce progress

payments under FAR 52.232-16(c)(2). For advance payments, see FAR 52.232.12(k).

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DECISION TABLE FOR SELECTING A CONTRACT REMEDY

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Other breaches. (The CO has exhausted all efforts at informal resolution of the problem.)

(cont.)

• Withholding of payments and

contract termination (under FAR

52.222-41, “Service Contract Act

of 1965, As Amended”)

• Suspension of contract payments,

termination for default, and

suspension or debasement (under FAR 52.223-6, “Drug-Free

Workplace”).

Send a cure notice 10 days or more prior to the contract’s delivery date.

Appropriate when the breach is of

sufficient magnitude to warrant termination for default.

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PAYMENT

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Partial payment - based on acceptance of a particular part of contract performance

Prompt payment - the government pays the contractor prior to the invoice payment date

Prompt payment discount - an invoice payment reduction voluntarily offered to the government by the contractor for prompt payment that is made prior to the due date stated on the invoice

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PERFORMANCE EVALUATION REPORTING

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Reporting Requirements - Contractor Performance Assessment Reporting System (CPARS)

Report Content

Reporting Procedures:

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For additional questions contact

protech.services@noaa.gov

For POC information visit

http://www.protechservices.noaa.gov/contacts.php