Contracting Officer’s Representative Course PowerPoint Presentation

Contracting Officer’s Representative Course PowerPoint Presentation

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Slide1

Contracting Officer’s Representative Course

ACQI7222DVersion 3.1

These slides contain course materials published by the Defense Acquisition University as

the

Contracting

Officer’s Representative Course and Contracting Officer’s Representatives in a Contingency Environment.

Slide2

Instructor Introduction

1

Contracting Officer's Representative Course

Slide3

2

Contracting Officer's Representative Course

Why are we here?

What are the ‘take aways’?

Can I use this at my desk, in ‘my world’?

Slide4

3

Contracting Officer's Representative Course

Presentation is designed for

soon-to-be or newly-

appointed CORs

Students are

encouraged to participate

Classroom discussionsare on a non-attributionbasis

Slide5

Upon completion of this course you will be able to:Recognize the duties, limitations and authority of the COR

Identify key laws and regulations that address fraud, waste and abuse and ethical considerations in federal contractingRecognize COR responsibilities in acquisition mission support planning

Course Learning Outcomes

4

Contracting Officer's Representative Course

Slide6

Recognize the COR responsibilities in the contract award processGiven a contract action, identify the delegated technical functions for which the COR is responsible

Describe the administrative duties of the COR as outlined in the delegation letterIdentify when proposed changes under the contract are needed so that the best interests of the government are protected

Course Learning Outcomes (cont.)

5

Contracting Officer's Representative Course

Slide7

Recognize the COR’s role in tracking contract expendituresRecognize the COR’s role in tracking the contract schedule

Recognize the importance of the COR as a representative of the Contracting Officer during performance of the contractCourse Learning Outcomes (cont.)

6

Contracting Officer's Representative Course

Slide8

Describe the COR’s role in inspecting and accepting goods and servicesIdentify the CORs participation in contract closeout

Identify major requirements for timely invoice review and paymentsIdentify control and disposition requirements for government furnished or leased assets

Course Learning Outcomes (cont.)

7

Contracting Officer's Representative Course

Slide9

Identify the unique characteristics of a construction contractIdentify the unique characteristics of contracts in major systems and R&D acquisitions

Identify ethical, cultural, and contractual issues faced by the COR in a contingency environmentCourse Learning Outcomes (cont.)

8

Contracting Officer's Representative Course

Slide10

Course Schedule

9

Contracting Officer's Representative Course

Day 1

Course Overview & Introductions

Module 1—What is a COR?

Who Has the Authority?

Module 2—What Do I Need to Know about Ethics and Integrity?

Ethical Case Studies

Module 3—How Do I Contribute to Planning the Acquisition?

Loose Lips Sink Ships CaseDay 2Module 4—How Am I Involved in Awarding the Contract? Finding Base Support CaseModule 5—What’s My Role in Managing the Contract?Uniform Contract Format Knowledge CheckModule 6—What If I Need to Modify the Contract?Taking the PlungeModule 7—What If the Contract is Changed by Mistake?

Money for WafersIt’s a Calamity

Slide11

Day 3

Module 8—What Can I Say and What Should I Document?

Is It Knight or Day? Case

Module 9—How Do I Monitor Performance?

The Grass Isn’t Greener Case

Day 4Module 9—How Do I Monitor Performance? (cont.)

Module 10—How Do I Handle Issues with a Contractor?Terminations Knowledge CheckModule 11—Are There Special Considerations for Service Contracts?Smoothing Over the Situation Case

Module 12—Are There Special Considerations for Construction Contracts?

Galley

Module 13—Are There Special Considerations for R&D Contracts?

Test ReviewDay 5Module 14—Role of COR in a Contingency Environment?Final Exam/AssessmentEvaluationsGraduationCourse Schedule (cont.)

10

Contracting Officer's Representative Course

Slide12

Administration

11

Contracting Officer's Representative Course

Class Time

Lunch

Breaks

Group Project

Special Needs

Homework

Slide13

Restrooms

Area restaurants

Sodas and snacks

Parking

Dress code: business casual

Electronic devices silencedEmail

ComputersAdministration (cont.)

12

Contracting Officer's Representative Course

Slide14

Assessment will be given on the last day

50 Questions: Multiple Choice and True/False Must achieve 80% to pass the courseRetake permittedClass participation in discussions and exercises is required

Passing the Course

13

Contracting Officer's Representative Course

Slide15

Non-attribution

Academic IntegrityCopying, sharing or exchanging of quiz information before, during or after

COR 222 &206 is an integrity issue!

GS Policies

14

Contracting Officer's Representative Course

Slide16

Certificate for Attendance

15

Contracting Officer's Representative Course

A GS certificate for 40 CPE hours of training hours will be given

Slide17

Introductions

16

Contracting Officer's Representative Course

What’s your job?

Are you or have

you been a COR?

When I retire I want to…?

Types of contracts

you have handled?

Slide18

17

MODULE 1

What is a COR?

Slide19

Upon completion of this module, you will be able to:Given a contract for which you are the COR, identify the documents required by regulation and policy to be maintained in the COR file

Describe the duties of the COR as outlined in the delegation letter

Module 1 Learning Outcomes

18

Contracting Officer's Representative Course

Module 1

Slide20

A Government employee

A technical expertQualified by trainingSpecifically designated in writing

Responsible for specific contract administration functions

What is a COR?

19

Contracting Officer's Representative Course

Module 1

Slide21

What is a COR?

The COR’s key roles are to:

observe

document and

Communicate contractor performance to the contracting officer (CO) and contractor

20

Contracting Officer's Representative Course

Module 1

Slide22

COR has specific delegated authority

Source of COR authority is the CO per contractAuthority specified in Designation Letterscope and limitations of authority delegated

expect them to be different for different contracts and organizations

COR Authority

21

Contracting Officer's Representative Course

Module 1

Slide23

22

Contracting Officer's Representative Course

Module 1

Where Does the COR Fit?

BUSINESS

PLANNING

. . . MARKETING

The Contracting Process

Market

Research

Selection

Award

PROPOSAL PREPARATION

NEGOTIATION

CONTRACT ADMINISTRATION

Kick off

Contract/System

Compliance

Performance

Monitoring

Contract

Modifications

Completion

/

Payment /

Closeout

. . . SUBCONTRACTING . . . DELIVERY & COMPLIANCE . . . CHANGES, . .

.

. . INVOICING . . . SCHEDULING

MONITORING

ACCEPTANCE

CLAIMS

& DISPUTES

CLOSEOUT &

COLLECTION

Acq Planning

RFP

Competitive

or

Sole Source

Evaluation/

Negotiation

Note:

shaded

represents contractors activities during each Phase

Pre-Award and Solicitation

Evaluation and Award

Requirements

Determination

Slide24

Know the contract

Work with your contractorsProvide technical direction and guidance

Liaison on technical matters between the CO and the contractor

Support the mission and recommend changes

Monitor and evaluate performance

Ensure satisfactory, timely, delivery within the financial constraints of the contractCOR Duties

23

Contracting Officer's Representative Course

Module 1

Slide25

Promise or authorize more work

Get involved with subcontractorsModify the contractDisclose source selection information

Divulge budget information

Grant deviations or waivers of contract terms and conditions

COR No-No’s

24

Contracting Officer's Representative Course

Module 1

Slide26

New COR must be appointed by the CO in writing

Separate designation made for each contractCOR must resign in writingCOR cannot delegate responsibilities to his or her replacement or to subordinates

COR Designation/Appointment

25

Contracting Officer's Representative Course

Module 1

Slide27

Acknowledge acceptance of the duties by signing and returning the letter to CO

COR Designation Acceptance

26

Contracting Officer's Representative Course

Module 1

Slide28

COR letter of designation

All documentation of actions taken such as:

Copy of the contract and all modifications

Copy of acceptance documents and invoices

Copies of all correspondence

Memorandums for record of actions/issues

Performance work statement (PWS)/statement of work (SOW) with attachmentsQuality assurance surveillance plan

Performance assessments (negative and positive)

Weather reports (for construction contracts)

COR file is retained for 3 years

COR Files Must Contain27Contracting Officer's Representative Course

Module 1

Slide29

A new organization is joining your organization and you need to increase contract services

Review invoices for acceptanceThe contractor is working on site and finds old drums of solvents

Change contractor work schedule

Release of Government property to the contractor

Conduct surveillance to determine contractor performance

Change Government inspection scheduleOrder overtime for the contractorConduct inspection and acceptance

Examples of AuthorityWho Has It and Why?

28

Contracting Officer's Representative Course

Module 1

Slide30

MODULE 2

What Do I Need to Know About Ethics and Integrity?

29

Slide31

Upon completion of this module, you will be able to:Identify how potential organizational conflicts of interest can affect contract management

Identify how a COR reports suspected incidents of fraud, waste and abuse and unethical conductModule 2 Learning Outcomes

30

Contracting Officer's Representative Course

Module 2

Slide32

Avoid even the appearance of anything less than complete integrity, objectivity, and impartiality

Legislation and policies can’t force ethical behavior

The Standard

Contracting Officer's Representative Course

31

Module 2

Slide33

DO

Place Loyalty to the Constitution, the Laws, and Ethical Principles above Private GainAct Impartially to all Groups, Persons, and Organizations

Give an Honest Effort in the Performance of your Duties

Protect and Conserve Federal Property

Disclose Fraud, Waste, Abuse, and Corruption

Fulfill Obligations as Citizens and Pay your TaxesComply with Equal Opportunity Laws

Employees’ ResponsibilitiesUnder Executive Order 12674 (as amended)

32

Contracting Officer's Representative Course

Module 2

Slide34

DO NOT

Use Nonpublic Information to Benefit Yourself or AssociatesSolicit or Accept Gifts from Parties Doing Business With or Seeking Official Action from DOD

Make Unauthorized Commitments or Promises

Use Federal Property for Unauthorized Purposes

Take Jobs or Hold Financial Interests that Conflict with our Government Responsibilities.

Take Actions that even Appear to be Illegal or UnethicalEmployees’ Responsibilities Under

Executive Order 12674 (as amended)

33

Contracting Officer's Representative Course

Module 2

Slide35

Definition: a relationship founded on trust or confidence relied upon by one person in the integrity and fidelity of another.

Fiduciary Relationship

34

Contracting Officer's Representative Course

Module 2

Slide36

Answer:

A dishonest and deliberate course of action which results in the obtaining of money, property or an advantage to which the recipient would not normally be entitled.Example: Could include falsifying records and books of accounts, kickbacks, or concealing a foreign-made item to appear as a domestic product.

What is Fraud?

Contracting Officer's Representative Course

35

Module 2

Slide37

Unauthorized product substitution

Errors in cost reportingPotential defective pricing

Incorrect performance payment requests

Weak discipline in charging of labor hours

Use of erroneous overhead rates

Frequent discovery of errorsWatch for Indicators

36

Contracting Officer's Representative Course

Module 2

Slide38

Procurement Integrity Act provides that a person may not knowingly obtain “source selection information” or “contractor bid or proposal information” before contract award, other than as provided by law

Ban applies to everyone, including federal employees and contractor employees

Prohibits certain Government officials from accepting employment

Procurement Integrity Act

37

Contracting Officer's Representative Course

Module 2

Slide39

If an individual improperly discloses or obtains Source Selection Information (SSI) or Contractor Bid and Proposal Information (CBPI)

In exchange for anything of value, orIn order to obtain for himself, or give to anyone else, a competitive advantage in the award of a federal contract

The maximum penalty is:

Five years in prison,

Civil penalty of $50,000 for each violation andAdverse personnel action (e.g., termination)

Disclosing or ObtainingSource Selection Information

38

Contracting Officer's Representative Course

Module 2

Slide40

Organizational conflict refers to a situation in which a person may be unable to:

Provide impartial advice or assistance to the Government

Person’s objectivity in performing a contract may be impaired; or

The person has an unfair competitive advantage due to involvement in other activities or relationships

Organizational Conflict of Interest

Contracting Officer's Representative Course

39

Module 2

Slide41

December 2007, Federal Acquisition Regulation change took effect that requires contractors to:

establish a code of business ethics and conduct applies to all contracts valued at more than $5 million or for which the period of performance is 120 days or more

provide a copy to all employees working on the Government contract, and promote compliance with the code among the contractor’s employees

promote business ethics and early discovery of improper conduct in the performance of Government contracts

institute ongoing business ethics training for its employees

establish an internal control system to facilitate timely discovery of improper conduct in connection with the performance of Government contracts and ensure that corrective actions are promptly taken Ethics Rules for Contractors

40

Contracting Officer's Representative Course

Module 2

Slide42

Case Studies of Ethical Failures

Contracting Officer's Representative Course

See Module 2, Participant Guide

Read the cases and consider the circumstances that led to the ethical failures

Source: “Encyclopedia of Ethical Failure” Department of Defense, Office of General Counsel, Standards of Conduct Office, June 2006

41

Module 2

Slide43

MODULE 3

How Do I Contribute to

Planning the Acquisition?

42

Slide44

Upon completion of this module, you will be able to:Identify market research actions of the COR

Identify the process for developing an independent Government cost estimateList the requirements for preparing a statement of work or statement of objectivesRecognize the role of the COR in the overall strategic planning of an acquisition

Recognize the various types of funds and fiscal controls applied to contracts

Identify the elements of a Purchase Request

Module 3 Learning Outcomes

43Contracting Officer's Representative Course

Module 3

Slide45

Identify and define the requirement

Acquisition planningMarket research

Develop the requirements documents

Government furnished property

The independent Government cost estimate

FundingTechnical evaluation criteriaThe purchase request

The COR’s Role inMission Support Planning

44

Contracting Officer's Representative Course

Module 3

Slide46

FAR 7.102(a) Agencies shall perform acquisition planning and conduct market research for all acquisitions…

Acquisition Planning

45

Contracting Officer's Representative Course

Module 3

Slide47

Anticipate problems

Save time in the futureSave moneyStay on schedule (milestones)

Communicate to higher management

Generate commitment

Ensure compliance with FAR Part 7

Purpose of Acquisition Planning

46

Contracting Officer's Representative Course

Module 3

Slide48

Market research shall be conducted before:

Developing something newSoliciting over SAT ($150K)

Market Research Policy

Contracting Officer's Representative Course

Module 3

47

Slide49

Strategic and Tactical Market Research

Contracting Officer's Representative Course

What are they?

Market

Research

Market Surveillance

Ongoing Familiarity With a Market

Trade Shows

Research Reports

Trade Journals

Symposia Proceedings

Internet

Professional Organizations

Other sources

Market Investigation

Collect, Evaluate & Analyze

Specific Information to meet Agency Needs

Identify potential sources

Survey Manufacturers

Analyze Responses

Terms

and conditions

Product Available

Proceed with

Commercial

Buy

Components

Non-commercial

Purpose

Revise Requirement?

New Development?

Existing Documents?

Module 3

48

Slide50

You need to understand the rules and limitations regarding obligating funds so as to avoid any personal liability on your behalf or on the CO’s behalf.

Working as a team involves looking out for all parties on that team.

Financial

Contracting Officer's Representative Course

Module 3

49

Slide51

Appropriation Act (Purpose) [Title 31, U.S. Code, Sec 1301]

Requires funds to be used only for the purposes and programs for which the appropriation was made—otherwise considered misappropriated funds.AKA “The Purpose Statute”

Bona Fide Need Rule (Time)

Requires funds to be used only for needs or services in the year of the appropriations obligation period.

Anti-Deficiency Act (Amount) [Title 31, U.S. Code, Sec 1341 & 1517 ]

Prohibits making or authorizing an obligation in excess of the amount available.Forbids obligation to pay money from the US Treasury in advance of an appropriation. Requires agency to fix responsibility for violations of the Act.Amount, Time & Purpose

Contracting Officer's Representative Course

Module 3

50

Slide52

Major Appropriation Categories

Contracting Officer's Representative Course

APPN CAT

FUNDINGPOLICY

OBLIGATION PERIOD

O&M

SCOPE OF WORK EFFORT

Development, Test & Eval, Equipment & Software for T&E, and Operations at R&D Facilities

Incremental

3 Years

5 Years - SCN

Civilian Salaries, Travel, Fuel, Supplies, Minor Const<$750K, Replenishment

Spares,

Equipment

& Software <$250K

Annual

1 Year

1 Year

5 Years

2 Years

Annual

Full

Full

Military Pay & Allowances, PCS Moves, Retired Pay Accrual

Major Construction Projects >$750K

Hardware, Production Labor,, Initial Spares, Equipment and Software> = $250K

MILPERS

MILCON

RDT&E

PROC

SCN

RDT& E = Research, Development, Test & Evaluation, PROC = Procurement, O&M = Operation and Maintenance, MILPERS = Military Personnel,

MILCON = Military Construction, SCN = Ship Building & Conversion Navy

Module 3

51

Slide53

When developing requirements:

Use market researchPromote full and open competition

Limit use of restrictive provisions

Look for commercial solutions

Limit use of specifications and instead focus on function, performance and physical characteristics

Developing Requirements

Contracting Officer's Representative Course

Module 3

52

Slide54

The CO and the contractor need a concise description of what the customer needs

COR should consider:The intended use for the product or service

How often it will be used or quantity of item needed

The competitive climate

Resources and research available on the product or service

Statutes, rules, policies or legislative action that might impactCurrent environment, constraints or frameworkControls available to ensure successful performanceItems to be physically delivered, i.e., deliverables (design, report, prototype, software)Priorities

RisksDeveloping the Requirements Document

Contracting Officer's Representative Course

Module 3

53

Slide55

What is a specification?

Types (See FAR 11.002(a)(2)(i)) DesignPerformance Functional

Most specifications mingle the “types” together

Specifications

54

Contracting Officer's Representative Course

Module 3

Slide56

Describe in precise detail the materials to be employed and the manner in which the work is to be performed (how to do it!)

“where the Government does specify a certain design, it has long been established that the risk that the design is unsuited for the intended purpose is allocated to the Government, based on a theory of implied warranty”

(Comp Gen B-270762)

Design Specifications

Contracting Officer's Representative Course

Module 3

55

Slide57

Sets forth an objective or standard to be achieved, the contractor is expected to exercise ingenuity in achieving that objective or standard, selecting the means and assuming corresponding responsibility

Preferred for service contracts

Performance Specifications

Contracting Officer's Representative Course

Module 3

56

Slide58

Describes work to be performed in terms of end purpose or the Government’s ultimate objective

May be described as a “subset” of performance specificationsPreferred for supply contracts

Functional Specifications

57

Contracting Officer's Representative Course

Module 3

Slide59

DoD specifications—

MIL-STD-961; DoD 4120.24-M

Government (Other than DoD) Specifications—

GSA Handbook

on the FPMR 101-29

Commercial Item Descriptions—DoD 4120.24-M and GSA Handbook on the FPMR 101-29.Non-Government (Commercial) Specifications—Applicable National or International Technical, Professional, or Industry Standards Body (e.g.

American National Standards Institute (ANSI), American Society of Mechanical Engineers (AMSE), International Electrotechnical Convention (IEC), International Organization for Standardization (ISO), etc.)

Where to Find Specifications

58

Contracting Officer's Representative Course

Module 3

Slide60

“Performance work statement (PWS)” means a statement of work for performance-based acquisitions that describes the required results

in clear, specific and objective terms with measurable outcomes

Performance Work Statement (PWS)

59

Contracting Officer's Representative Course

Module 3

Slide61

“Statement of objectives (SOO)” means a Government-prepared document incorporated into the solicitation that states the overall performance objectives. It is used in solicitations when the Government intends to provide the maximum flexibility to each offeror to propose an innovative approach.

Statement of Objectives (SOO)

Contracting Officer's Representative Course

Module 3

60

Slide62

“Statement of Work (SOW)” means the portion of the contract that describes the work to be done through the use of specifications, minimum requirements, quantities, performance dates,

time and place of performance and quality

Statement of Work

Contracting Officer's Representative Course

Module 3

61

Slide63

Be SMART:

Specific, Measurable, Accountable, Reasonable, Time-basedTipsOrganize paragraphs—logical, sequenced and numbered

Keep sentences short and concise—don’t use bullets

Detail obligations, expectations and deliverables

Tie deliverables to contractor payments

Deliverables are key to measuring successful work requirement outcomesSOW Do’s

62

Contracting Officer's Representative Course

Module 3

Slide64

Contradictory terms or statements = confusion

Ambiguity = project delays, amendments,cost overruns and less desirable outcomes

Too many acronyms = confusion and difficult reading

SOW Don’ts

63

Contracting Officer's Representative Course

Module 3

Slide65

Estimate of resources and cost a prudent contractor will incur in the performance of a contract for complex requirements or non-commercial items

An unbiased realistic cost estimate Ensure that the final contract price is both fair and reasonable, achieving both a best value and a shared risk contract between Government and suppliers

Independent Government

Cost Estimate

64

Contracting Officer's Representative CourseModule 3

Slide66

Does this estimate agree or conflict with your market research?Well-documented IGCEs provide essential program knowledge needed to evaluate and negotiate contract proposals

Poor IGCEs can sub-optimize a program, waste resources, and may lead to contractor failure or defaultIGCE is considered confidential information that should not be discussed or shared with the contractor or with potential offerors

Independent Government

Cost Estimate (cont.)

65

Contracting Officer's Representative Course

Module 3

Slide67

Components of Contract Price

Contracting Officer's Representative Course

Cost

Contract Price

=

+

Profit

Direct Cost

Indirect Cost

Overhead

Cost of

Money

ODC

Direct Labor

Direct Material

G&A

Subcontracts

Raw

Materials

Purchased

Parts

Commercial

Items

Interdivisional

Transfers

Module 3

66

Slide68

Direct cost: Any cost that is specifically identified with a particular final cost objective or contract. This includes labor, materials and other direct costs

Material Cost: any material cost that can be identified specifically with a final cost objective or contractLabor Cost: the cost of labor directly applied to producing the requirement Other Direct Cost: cost directly applied to the contract that is not defined as material or labor costs,

e.g., travel, consultants, supplies

IGCE Cost Terms

67

Contracting Officer's Representative Course

Module 3

Slide69

Indirect cost: Any cost not directly identified with a single final cost objective but identified with two or more final cost objectives. Also referred to as overhead or burden

General and administrative: including a company's general and executive office, executive compensation, the cost of staff services such as legal, accounting, financial, administrative, and similar expenses

Overhead: Indirect costs related to support of specific operations, such as material overhead, site overhead and labor overhead

Facilities Capital Cost of Money (FCCOM): An imputed cost related to the cost of contractor capital committed to facilities

IGCE Cost Terms (cont.)

68

Contracting Officer's Representative Course

Slide70

Profit: The amount realized by a contractor after the costs of performance (both direct and indirect) are deducted from the amount to be paid under the terms of the contract

IGCE Cost Terms (cont.)

69

Contracting Officer's Representative Course

Slide71

Sample Loaded Labor Rate

Contracting Officer's Representative Course

Cost Elements

Labor Estimate Rate

Direct Labor (Guard) $20.00

Overhead Fringe $ 9.00 45%Overhead Facilities $12.00 60%

Overhead Bench

$ 4.00

20%

Subtotal $45.00 G&A $ 9.00 20%Subtotal $54.00 Profit $ 8.10 15%Hourly Sell Rate $62.10

Module 3

70

Slide72

All property owned by or leased to the Government or acquired by the Government under the terms of the contract. It includes:

Government Furnished Property (GFP) Contractor Acquired Property (CAP)FAR Part 45 provides guidance

Government shall have all GFP inventoried and status provided in the solicitation

Government Furnished Property

71

Contracting Officer's Representative Course

Module 3

Slide73

GFP provided to the contractor in a timely manner

GFP is suitable for its intended use

Government’s Duty

72

Contracting Officer's Representative Course

Module 3

Slide74

The purchase request establishes the baseline for the contractual action

Preparing the purchase request is critical to the success of an acquisitionThe purchase request

is an official request for action

authorizes the contracting process to begin

is coordinated and signed by a responsible official of the initiating officeis the detailed submission of the specific requirements packages;

forms the core information of the solicitation document and resulting contractprovides funding and financial officer certification as to the availability of fundsPurchase Request

73

Contracting Officer's Representative Course

Module 3

Slide75

Requirements Documents, SOO, SOW,PWS

Quality Assurance Surveillance Plan

Funding Certification

Contract Data Requirements List (CDRL) (DD Form 1423)

DD Form 254 (DOD Contract Security Classification Specification)

Government Furnished Property

Acquisition Strategy/Acquisition Plan or update of Acquisition PlanDD Form 2579 (Small Business Coordination Record)

Sole Source Justification (Justification Review Document and J&A coordination)

Independent Government Estimate

Patents List

Deliverable List Award Fee Plan/Incentive Fee PlanSynopsis TextSource Selection Plan/Evaluation FactorsSource ListElements of the Purchase Request

Contracting Officer's Representative Course

Module 3

74

Slide76

Mission Support Planning

Acquisition PlanningMarket ResearchRequirementsIGCEPurchase Request

Summary

75

Contracting Officer's Representative Course

Module 3

Slide77

Exercise in Student Guide Module 3

Identify the major issues in this case.Did Mr. Sperry act properly by contacting the contractors at Power Surge and Bolt?

Should Mr. Sperry have used the information provided by Power Surge and Bolt in the purchase request? Were there potential problems with using both contractor’s information?

How could Mr. Sperry have developed the requirements document?

Loose Lips Sink Ships

76

Contracting Officer's Representative Course

Module 3

Slide78

MODULE 4

How Am I Involved in

Awarding the Contract?

77

Slide79

Upon completion of this module, you will be able to:Identify the COR responsibilities in the source selection evaluation

List the COR responsibilities in related to site surveys and pre-award surveysIdentify appropriate technical evaluation factorsList the considerations in determining incentive and award plans

Recognize how contract types impact COR responsibilities

Identify the various methods of contracting for a supply or service

Module 4 Learning Outcomes

78Contracting Officer's Representative Course

Module 4

Slide80

Micro-purchase $

3,500

Contingencies (CONUS) $

20,000

Contingencies (OCONUS) $ 30,000

Construction $ 2,000

Simplified Acquisition Threshold $ 150,000

Contingencies (CONUS) $

350,000

Contingencies (OCONUS) $

1,500,000Commercial Items $ 7,000,000

Commercial Items (Contingency) $

13,000,000

Large-purchase $ 150,000 +

Cost or Pricing Data $

750,000

Subcontracting Plans $ 650,000

Some DOD Dollar Thresholds

79

Contracting Officer's Representative Course

Module 4

Slide81

Any special law from Congress

Agency InventoriesPrison Industries (DoD only if equal in price)

Blind and Severely Handicapped

Supply Schedules (DoD not mandatory)

Set aside for HUB

Set aside for 8 (a)Set aside for small and small disadvantaged businessesFull and Open Competition

OTF&OCOrder of Preference (FAR Part 8)

80

Contracting Officer's Representative Course

Module 4

Slide82

Government Commercial Purchase Card (GCPC)

Purchase Order (PO)Blanket Purchase Agreements (BPA)

Federal Supply Schedule (FSS)

Government Wide Agency Contract (GWAC)

Small Disadvantaged Minority Business (8a) Contracts

Contracts with Businesses in Historically Under Utilized Business Zones (HUBZones)How Can My Organization Buy Quickly?

81

Contracting Officer's Representative Course

Module 4

Slide83

May I Request a Particular Contractor?

Full and Open Competition After Exclusion of SourcesFull and Open Competition

Other than Full and Open Competition

82

Contracting Officer's Representative Course

Module 4

Module 4

Slide84

Full & Open Competition

Competition In

Contracting Act

of 1984

83

Contracting Officer's Representative Course

FAR Part 6

Module 4

Slide85

Set aside for small business concerns

(Public Law 97-219)Section 8(a) (Public Law 100-656)Set aside for HUBZones (HUBZone

Act of 1997)

Full and Open After

Exclusion of Sources

84

Contracting Officer's Representative Course

Module 4

Slide86

Only One Responsible Source

Unusual and Compelling UrgencyIndustrial Mobilization

International Agreement

Authorized or Required by Statute

National Security

Public Interest Most Require a Justification and Approval (J&A)Other Than Full and

Open Competition

85

Contracting Officer's Representative Course

Module 4

Slide87

Small Business Administration Preferences:

Small Businesses8(a) Program—Socially and Economically DisadvantagedWomen-owned small businesses

Veteran-owned small business

Service-Disabled veteran owned small business

Historically under utilized (HUB) zone small business

Historically black colleges and universitiesSmall Business

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Affect how the COR monitors the contract

Some methods require more surveillance than others

Buying Choices…

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Slide89

Orders against Federal Supply Schedules (FAR 8.4)

Commercial Contracts (FAR 12)Request for Quote (FAR 13)Invitation for Bid (FAR 14)

Request for Proposal (FAR 15)

Simplified Acquisitions, Quote or Request for Offer (FAR 13)

Invitation for Bid (FAR 14)

Request for Proposal (FAR 15)Methods of Contracting

88

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Slide90

Pre-Award Contracting Process

89

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Proposal

Revisions

(Final

Proposal

Revision)

Market

Research

Customers

Needs

Tradeoff Process

Plan the

Approach

Begin

Requirements &

Criteria

Evaluate

Determine

Competitive

Range

Evaluate

Revised

Proposals

Cost

Technical

Cost

Technical

Compare

Proposal

Ratings

Lessons

Learned

Debrief

Contract

Proposals

Evaluation

Factors

Source

Selection

Plan

&

Decision/

Documentation

RFP

DRAFT

RFP

DRAFT

SOO

SOO

Bidders

Conference

Slide91

Architect and Engineering

ConstructionResearch and DevelopmentSupplies

Services

Utilities

Information Technology

The Subject Matter of the Contract

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Slide92

Contract Type Family Characteristics

91

Contracting Officer's Representative Course

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Cost

Fixed Price

Contractor Promise:

Risk to Contractors:

Risk to Government:

Cash Flow:

Performance Payment:

Administration:

Fee/Profit:

Best Effort Shall Deliver

Low High

High Low

As Incurred On Delivery

None Milestone Met

Max Gov’t Min Gov’t

Surveillance Surveillance

Fee limitations No limit

Slide93

Families of Contracts

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COST REIMBURSEMENT

FIXED PRICE

Cost

Cost Sharing

Cost Plus Incentive Fee

Cost Plus Award Fee

Cost Plus Fixed Fee

Time & Material

Labor Hour

Firm Fixed Price

Fixed Price w/ Economic

Price Adjustments

Fixed Price Incentive

Fixed Price w/ Prospective

Price Redetermination

Fixed Ceiling Price

Firm Fixed Price Level of Effort

Indefinite Delivery/Indefinite Quantity

Definite Quantity

Requirements

Slide94

Used when not possible to estimate the extent, duration and cost of the work to any reasonable degree of confidence

Fixed hourly labor rate (fully loaded)Overhead, G&A, Profit

Materials at cost or catalog price

Includes all material indirect costs

Requires surveillanceNo positive cost control or labor efficiency incentives

Use only if no other contract type possible, and only if the contract includes a ceiling price that the contractor exceeds at its own riskTime and Materials and

Labor Hour Contracts

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Indefinite delivery/indefinite delivery contracts may be set up for recurring needs, products or services to save time

If multiple awards, compete the requirement among those firms having one of these contractsConsider the Federal Supply Schedules

Some are Government-wide Acquisition Contracts

Must understand interagency acquisition rules

Using Existing Contracts

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Award fee can be an added incentive on any type contract

Establish separate fee consisting of:Base Fee (0–3%)

Award fee pool which contractor may earn

Amount of fee to be paid is judgmental

decision is made in accordance with criteria in award fee plan

Fee determination is a unilateral Government decision that cannot be protested under the Disputes ActYou May Be Assigned as a Monitor on an Award Fee Contract

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Methods of Acquisition & Contract Types

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4.1.

96

Defense

Acquisition

Procedures

Competitive

Non-

Competitive

Methods of

Contracting

Conditions

for

Use

Solicitation

Type

Contractor

Response

Nature

of

Review

Award

Decision

Contract

Type

Source

Selection

(FAR Part 15)

- May need discussions

- Trade-offs on Price

Negotiation

(Non-

Competitive)

- Only one source

- Approved J&A

RFP

RFP

Proposal

Proposal

All Factors,

“Best Value”

Eval Criteria

Fair &

Reasonable

Price

LPTA

Trade-Off

None

All

All

Simplified

Acquisition

Procedures

(FAR Part 13)

Under $150k Non-

Commercial

Under$7.0 M

Commercial

Use appropriate

procedures for acquisition

RFQ

RFP

Accepts

Offer

Proposal

Fair &

Reasonable

Price

All Factors

Low

Price

LPTA

Trade Off

FFP

FP(EPA)

T&M *

Sealed Bid

(FAR Part 14)

- Sufficient Time

- Competition Exists

- Award on Price

- No Discussions Req’d

IFB

Bid

Responsive

&

Responsible

Low

Price

FFP

FP(EPA)

Slide98

Why is the COR concerned about writing evaluation factors for award and selecting the contractor?

Evaluation factors define who will be selected

Who is selected defines probability of successful outcome

Evaluation Factors

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Slide99

What category would you be using?

What method of acquisition would you be using?Are there small business considerations?

What contract type would we consider using?

Is it commercial or non-commercial?

What evaluation criteria would you recommend?

Exercise: Finding Base Support

98

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Slide100

Module 5

What is My Role in

Managing the Contract?

99

Slide101

Upon completion of this module, you will be able to:Recognize the basic information (period of performance, PWS, contract value) found in a contract to include the uniform contract format

Identify methods of tracking contract obligations using Accounting Classification Reference Numbers (ACRNS) and CLINs in the contractAnalyze contract schedule compliance, to include all SOW requirements and Contract Deliverables Requirements List (CDRL) requirements

Discuss when and why schedule compliance must be brought to the attention of the CO

Module 5 Learning Outcomes

100

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Slide102

Read and know the contract

Have or develop technical expertise Manage relationships

Monitor and document performance

Manage property

Inspect and accept deliverables

Recommend changes or remediesReview/approve reports and invoicesOverview: COR Responsibilities

101

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Slide103

Who is the contracting officer (CO)?

The CO is the one who designated you as CORRefer to your designation letter to see generally and specifically what s/he wants you to do

The CO is entrusting you to oversee the contract

Take time to get to know the CO and develop some ground rules for how and when you will interact

Start with Your Contracting Officer

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Slide104

Contract type

CeilingDeliverables

Subcontracting requirements

GFP requirements

Invoicing requirements

Security requirementsReports and special clausesFacts that need to be known first

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Slide105

Uniform Contract Format

Standard Commercial Contract FormatStreamlined Commercial Contract Format

Delivery Orders/Task Orders

Contract Formats

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Slide106

Let’s take out our contract samples and see what we can learn about contracts in general and specifics for this contract!

Can you find the different Parts?

Exercise

105

Contracting Officer's Representative Course

Contract Samples

Module 5

Slide107

Part I-The Schedule

Solicitation/Contract Form

Supplies or Services and Prices/Costs

Description/Specifications/Statement of Work

Packaging and Marking

Inspection and Acceptance

Deliveries or PerformanceContract Administration DataSpecial Contract Requirements

Part II-Contract Clauses

Contract Clauses

Uniform Contract Format

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Part III-List of Documents, Exhibits, and Other Attachments

List of Attachments

Part IV-Representations and Instructions*

Representations, Certifications, and Other Statements of Offerors or Respondents

Instructions, Conditions, and Notices to Offerors or Respondents

Evaluation Factors for Award* Part IV is used in the solicitation but is not part of the contract

Uniform Contract Format

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While the contractor’s technical proposal is one consideration for the award decision—it is not automatically part of the resultant contract

Two options exist:Formally incorporate the contractor’s proposal into the final contract as a Section J Attachment

Include any specific details that are of importance from the proposal in the resultant contract either by special clause or update to the SOW

Attach proposal to contract with a caveat that it is not a Government endorsement of contractor’s way of doing work

FYI: The Contractor’s Proposal

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Slide110

This format is used for buying commercial items or services

CF uses as its contract award form Standard Form 1449, Solicitation/Contract/Order for Commercial Items It is a streamlined contract document

You’ll still find CLINs, delivery dates, funding, clauses and statements of work

Commercial Format (CF)

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Slide111

Purchase Order

Blanket Purchase Agreement (BPA)Basic AgreementBasic Ordering Agreement (BOA)

Letter Contracts

Understand Other Types of “Contracts”

110

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Slide112

Delivery orders (DO) are orders for supplies written against an IDIQ (requirements, ID, DQ) contract

Task orders (TO) are orders for services written against an ID, DQ, requirements contract“DO or TO” monitors may be assigned to individual orders

Delivery Orders/Task Orders

111

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Slide113

FAR 52.215-8 Order of Precedence tells us how to resolve any inconsistency in the contract by giving “precedence” in the following order:

The Schedule (excluding the specifications)—

Sections A –H

Representations and other instructions—

Sections K–M

Contract clauses—Section IOther documents, exhibits, and attachments—Section J

The specificationsWhat if theContract is Contradictory?

112

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Module 5

Slide114

UCF: Test Yourself

113

Contracting Officer's Representative Course

Module 5

Match the section in the Uniform Contract Format with its correct title:

Section A ____ 1. List of Attachments

Section B ____ 2. Packaging and Marking

Section C ____ 3. Special Contract Requirements

Section D ____ 4. Inspection and Acceptance

Section E ____ 5. Supplies/Services and Prices/Costs

Section F ____ 6. Contract Clauses

Section G ____ 7. Description/Specifications/Statement of Work

Section

H ____

8. Contract Administration Data

Section I

____ 9. Contract Formation (e.g., SF 33/SF 26)

Section J

____

10. Delivery date and performance

Slide115

UCF: Test Yourself

114

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Module 5

Match the section in the Uniform Contract Format with its correct title:

Section A

9

1. List of Attachments

Section B

5 2. Packaging and MarkingSection C

7 3. Special Contract Requirements

Section D

2

4. Inspection and Acceptance

Section E

4

5. Supplies/Services and Prices/Costs

Section F

10

6. Contract Clauses

Section G

8

7. Description/Specifications/SOW

Section H

3

8. Contract Administration Data

Section I

6

9. Contract Form (e.g., SF 33/SF 26)

Section J

1

10. Deliveries or Performance

Slide116

MODULE 6

What if the Contract

Needs to Be Changed?

115

Slide117

Upon completion of this module, you will be able to:Identify COR responsibilities supporting the planning and submission of contract changes needed to negotiate a modification

Determine if a change is within the scope of the contractDefine the COR’s role in the resolution of issues under the contract and his/her role in monitoring corrective actionsRecognize how the COR’s responsibility for providing cost estimates assists COs in negotiating proposed changes in scope of work under the contract

Module 6 Learning Outcomes

116

Contracting Officer's Representative Course

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Slide118

Modification

ANY WRITTEN CHANGE

IN THE TERMS AND

CONDITIONS OF A

CONTRACT

Can also be simply

adding funding orexercising an option

117

Contracting Officer's Representative Course

CONTRACT

Module 6

Slide119

A contract is a living document and changes with every modification

It is important that you keep your copy of the contract current with the latest modificationsSome contract modifications are issued with replacement pages; others may require you to do some pen-and-ink or cut-and-paste to update your copy

Keeping Your Contract Current

118

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Slide120

Examples of when a contract must be modified:

Adding or removing fundingChanging a delivery date or period of performance (POP)

Changing any of the terms and conditions in any part of the contract (including attachments)

Changing what you need or where you need it

Correcting a mistake

Exercising an optionSuspending the work or partially terminating itAdding additional workWhen Does a Contract

Need to Be Modified?

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Slide121

The answer is NO!

only the CO can modify the contract it is done in writing with the issuance of a modification

The COR can assist the CO in some significant ways:

Identify the need for the change, as soon as possible

Provide documentation to support the modification

Provide a technical evaluation, if requiredSupport any negotiationsMonitor the contract as modifiedThe COR shall not encourage the contractor to perform any change prior to official direction from the CO

Can the COR Modify the Contract?

120

Contracting Officer's Representative Course

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Slide122

What is to be done under the contract?

What are the deliverables?Who is going to do it?

When is it going to be done?

How will it be done?

How will you know when it is done?

How much will it cost?What is the intent of the original contract?How to Determine What is in “Scope”

121

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Slide123

Will changes to the requirements result in:

Increase in the contract requirement: increased effort that results in an increase in the price of the contract

Decrease in the contract requirement:

effort that has not been completed is deleted, resulting in a decrease in contract price

Substitutions: work, technology or brands are deleted and added resulting in a debit and credit to the contract price

Changes to Contract Requirements

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Slide124

When analyzing the proposed change consider whether:

Function of the item or service has changed

Basic contract purpose has changed

Dollar value of the change is proportionate to the price of the original contract

Competitive factors are still the same

Specifications or SOW changes are extensiveReasonably contemplated by the partiesCumulative effect of all changes on the contract

Tips for Staying “In Scope”

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Slide125

Air-A-Plane Corp. v. U.S., 408 F.2d 1030 (1969)

“The basic standard… is whether the modified job was essentially the same work as the parties bargained for when the contract was awarded.  Plaintiff has no right to complain if the project it ultimately constructed was essentially the same as the one it contracted to construct.  Conversely, there is a cardinal change if the ordered deviations altered the nature of the thing to be constructed. 

Each case must be analyzed on its own facts and in light of its own circumstances, giving just consideration to the magnitude and quality of the changes ordered and their cumulative effect upon the project as a whole.”

Case Law on Scope

124

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Slide126

Change beyond scope of contemplated work

Contractor can decline the changeRequires a justification and approval for sole source if added to an existing contract.

May require a new contract award

Cardinal Change

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Slide127

A modification that is

signed only by the CO:Administrative Changes

Incremental Funding

Change Orders

(non commercial only) (negotiated after contract modification)

Make changes authorized by clauses other than Changes Clause e.g. Options, Suspension of Work Unilateral Contract Modifications

126

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Slide128

Written modification signed by CO, directing contractor to make a change without prior agreement

Authorized by the Changes ClauseContractor must continue performance, as changed

Creates undefinitized Government liability; contractor is entitled to equitable adjustment

Definitization schedule must be established

Change Order

127

Contracting Officer's Representative Course

Module 6

Slide129

128

Supplies

Changes to drawings, design or specifications

Method of shipping or packing

Place of delivery

Changes Clause

Contracting Officer's Representative Course

Services

Description of services to be performed

Time of performance (hours of day or days of week)

Place of performance

FAR 52.243-1 (-2,-3,-4)

Limitations to things that can be changed with no prior approval under Changes Clause

:

Module 6

Slide130

Gives the Government flexibility—with documented rationale, it does not have to be exercised

Exercising option:May be done by unilateral modification

Contractor is notified of the Government’s intent to exercise the option

May be exercised only by modification by CO

Fulfills an existing need, already priced in the contract

Funds are availableExercise is advantageous to Government—market research is requiredOption

129

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Slide131

Prior to award—make known the need for options

When exercising the option, the COR assists the CO in the drafting the required determination and finding (D&F):Assess the available options

Determine the continuing need and if in best interests of Government

Complete market research on current pricing

COR Role in Options

130

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Slide132

52.217-8 Option to Extend Services

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within ? [insert the period of time within which the Contracting Officer may exercise the option].

Option to Extend Services

131

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Module 6

Slide133

Contract modification based on prior agreement of parties regarding the change

Incorporates equitable adjustment to contract cost or schedule adjustment as a result of the changeSupplemental agreements often involve the contractor submitting a proposal and detailed negotiations

Bilateral Contract Modifications:

Supplemental Agreements

132

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Slide134

A documented analysis prepared by the

COR based on completion of a review of the contractor’s proposal for a modificationUsed by the CO to support negotiations and documentation of the change to the contract

Assesses the benefit and impact of the change on the outcome desired by the Government

Technical Evaluation

133

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Slide135

Each party must give something to get something in return

Modifications must be supported by new considerationTypically contractor receives more money, Government receives more “stuff”

Consideration doesn’t have to be monetary, it could be:

Improved warranties

Expedited delivery

Product quality or performance improvements Additional products and services [where legally permissible] Improved reliability, maintainability, or supportability

Mutual “Consideration”for Modifications

134

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Slide136

Delays and Suspension of Work

Novation Agreements/Name ChangeValue Engineering Change Proposal

Acceleration

Indemnification

Other Types of Modifications

135

Contracting Officer's Representative Course

Module 6

Slide137

Modifications are intended to address conditions that arise or information that is not known at the time of contract award

The CO is the only individual authorized to modify a contract—this is done in writingThe proposed modification must be in scope of the original contract

The COR is usually the first to know when a modification is necessary

Summary

136

Contracting Officer's Representative Course

Module 6

Slide138

Exercise

137

Contracting Officer's Representative Course

Module 6

Slide139

MODULE 7

What if the Contract

is Changed by Mistake?

138

Slide140

Upon completion of this module, you will be able to:Identify when proposed changes under the contract are needed

Identify the common causes of constructive change
Identify the duty to provide technical clarification to the Contractor without creating an unauthorized obligation or constructive change to the contract

Module 7 Learning Outcomes

139

Contracting Officer's Representative Course

Module 7

Slide141

Constructive Change:

Oral or written act or failure to act by an authorized Government official (in position of authority) construed by contractor as having same effect as a written change order (existing contract)Unauthorized Commitment: An agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government (both existing or no contract)

Terminology

140

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Module 7

Slide142

Must involve:

Change in performance beyond minimum contract requirements, andWord or deed by Government representative which when acted on by the contractor requires effort that is not a necessary part of the contract

Constructive Change

141

Contracting Officer's Representative Course

Module 7

Slide143

Inadequate or defective requirements documents

Improperly interpreted specificationsOverly strict inspection

Failure to recognize Government-caused delays

Improper technical direction

Common Causes of

Constructive Changes

142

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Module 7

Slide144

Careful preparation of the initial contracts by removing ambiguities and inconsistencies

Clearly know what the contract requires—what does the contract say, not what it ought to sayKeep good records—documentation can eliminate misunderstanding

Always act in good faith and follow the correct procedures

How to Avoid Constructive Changes

143

Contracting Officer's Representative Course

Module 7

Slide145

Establishing Your Authority

144

Contracting Officer's Representative Course

Module 7

STATEMENT of LIMITATION of AUTHORITY

You are hereby notified that I

DO NOT

have the authority

to direct you in any way to alter your contractual obligation.

Further, if the Government, as a result of the information obtained from today’s discussion DOES

desire to alter your requirements, changes will be issued in writing and signed by

the contracting officer. You should take no action on any change unless and until you receive such a contract modification.

You are hereby notified that I

DO NOT

have the authority to

direct you in any way to alter

your contractual obligation.

STATEMENT of LIMIT

Slide146

The COR plays a vital role in the resolution of a constructive change:

Provides all pertinent existing documentation to COIdentifies the actual changes to the contract that have occurred

Prepares a technical analysis/evaluation, if the contractor submits a proposal based on the change

Assists the CO in negotiations

Educates the contractor regarding the proper notification and handling of changes

CORs Role in Resolution

145

Contracting Officer's Representative Course

Module 7

Slide147

FAR Clause 52.243-7 Notification of Changes:

Clause requires contractor to notify the CO promptly when someone, other than the CO,has directed a change to the contract as writtenUsed on contracts over $1M

Good idea to periodically remind the contractor of its risk and responsibility

Notification of Changes

146

Contracting Officer's Representative Course

Module 7

Slide148

An unauthorized commitment requires ratification for contractor to receive payment

Ratification: The act of approving an unauthorized commitment by an official who has the actual authority to do so

Unauthorized Commitment

147

Contracting Officer's Representative Course

Module 7

Slide149

Individual creating unauthorized commitment will submit a statement detailing:

Why normal procedures were not followed

Did Government have a bona fide need for service/good?

Did or will the Government receive benefit?

Was money available at the time of the action?

Ratification Process

148

Contracting Officer's Representative Course

Module 7

Slide150

Senior leader advises CO:

Concurrence that commitment should be ratifiedSteps to be taken to prevent recurrence

Complete purchase description and funding for the ratification

Description of disciplinary action taken or reasons why none was taken

Ratification Process

149

Contracting Officer's Representative Course

Module 7

Slide151

CO completes D&F stating:

Commitment was not made to evade normal statutes/regulationsResult of urgent requirement or mistake of fact by Government personnel

Contractor “reasonably” relied on apparent authority

Contractor has no other remedy to obtain relief

Contract would otherwise be proper, i.e., funds available, legitimate requirement.

Price was fair and reasonableCO recommendation to ratifying official

Determination and Finding (D&F)150

Contracting Officer's Representative Course

Module 7

Slide152

Regularly brief to all personnel on acquisition processes

CO is responsible for contracts and modificationsProcess is designed to protect interests of the Government

Make sure contractors know you do not have contractual authority

If action is not ratified, the individual responsible may be held personally accountable for restitution to the contractor!

Summary

151

Contracting Officer's Representative Course

Module 7

Slide153

152

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Module 7

Exercise

Slide154

153

Contracting Officer's Representative Course

Module 7

Exercise

Slide155

MODULE 8

What Can I Say and

What Should I Document?

154

Slide156

Upon completion of this module, you will be able to:Identify the communications necessary among all interested parties to the contract as frequently as needed to ensure the services provided meet the established standards

Distinguish between formal and informal communication and its effect on giving technical direction Identify the communications necessary among all parties to ensure the services provided meet the terms and conditions in the contract

Module 8 Learning Outcomes

155

Contracting Officer's Representative Course

Module 8

Slide157

Formal versus informal communication

Understanding guidance and technical DirectionLimitations on communications

Overview

156

Contracting Officer's Representative Course

Module 8

Slide158

When you observe or anticipate the failure of the contractor or Government to meet their respective contractual obligations

When you know the contract needs to be changedWhen the contractor is failing to make satisfactory progress or there are quality issues

When there are issues with the invoices

If you anticipate cost growth

When Must You Talk to the CO?

157

Contracting Officer's Representative Course

Module 8

Slide159

The CO is first in your chain-of-command when it comes to issues relating to your functions and duties as a COR

Your supervisor may not direct you to take actions that are not within the scope of your COR authority or that impact the contract

FYI: Communicating with Your Boss

158

Contracting Officer's Representative Course

Module 8

Slide160

Occurs between Government and contracting individuals (CO, COR, HCA) who are authorized to represent the contracting parties

Usually in writing, but oral communication is also acceptable, i.e., briefings, meetingsOral communication should be documented for the contract file

Formal Communications

159

Contracting Officer's Representative Course

Module 8

Slide161

Formal Communication No-No’s

The COR shall never change:

pricing, cost, or fee

quantities

quality

scope of the contractlabor mixterms and conditions

The COR shall NOT:make commitments or promises (oral or written) to any contractorissue instructions (oral or written) to a contractor to start or stop workauthorize additional GFPapprove overtimedirect the subcontractorsaccept non-conforming deliverables

160

Contracting Officer's Representative Course

Module 8

Slide162

Occurs between any Government employee without contractual authority and any contractor employee

Encouraged and expected in performance of oversight responsibilities

Source: Boyd, Bob, “The COR/COTR Answer Book”, Management Concepts, Vienna VA, 2003

Informal Communication

161

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Slide163

One of the primary functions of the COR may involve the issuance of technical guidance to the contractor

Statements of work are frequently inexact, resulting in the need for technical instructions or clarifications as the work progresses

If there is disagreement, contact the CO

Giving Technical Direction

162

Contracting Officer's Representative Course

Module 8

Slide164

Your guidance should only address or clarify the Government’s “intent” and document any deficiency in performance caused by a difference in interpretation

How Should You Give “Guidance”?

163

Contracting Officer's Representative Course

Module 8

Slide165

Prime Versus Subcontractors Communication

Prime has contract performance liability

If the sub “fails” it is up to the prime to resolve

There is no “privity” between the Government and the subcontractors. When it comes to subs, for you this means no:

Communications

Technical direction

Approval of subs164

Contracting Officer's Representative Course

Government

Privity of Contract

Contract Law applies

Prime

Privity of Contract

FAR applies

Subcontractor

No contractual or direct relationship

Module 8

Slide166

You may not recognize a contractor employee’s superior performance, i.e., don’t include them in your quarterly awards program; that means no “coins”, certificates etc. that come directly from you

FYI: Communicating Good Deeds

165

Contracting Officer's Representative Course

Module 8

Slide167

Know the limitations on your authority

Communicate with the CO and the contractorDiscuss performance problems as they arise

Understand marking and safeguarding rules

Most important is contemporaneous….

DOCUMENTATION, DOCUMENTATION, DOCUMENTATIONThe Bottom Line on Communication

166

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Module 8

Slide168

167

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Module 8

Exercise

Slide169

MODULE 9

How Do I Monitor Performance?

168

Slide170

Upon completion of this module, you will be able to:Given a contract action, identify the delegated technical functions for which the COR is responsible

Verify that the Government obligations in the contract are completeList the contents of a Quality Assurance Surveillance Plan (QASP)/Performance Assessment Plan (PAR)Identify factors to be assessed when documenting a contractor’s performance

Define the role and authority of CORs regarding past performance

Identify the contracting expenditures, funding issues, overruns, requests for travel and overtime that will be discussed with the Contracting Officer

Describe a CORs responsibilities in inspecting and accepting supplies and services

Module 9 Learning Outcomes169

Contracting Officer's Representative CourseModule 9

Slide171

Compare the inspection clauses for fixed type and cost reimbursement contracts for supplies, services and constructionExplain the primary purpose of Government inspection

Identify documentation requirements when performing inspection and acceptanceList the exceptions to final acceptanceReview invoices and compare to the progress report

Perform a site visit and compare to the progress report

Discuss with the contractor any ambiguities or discrepancies

Module 9 Learning Outcomes (cont.)

170Contracting Officer's Representative Course

Module 9

Slide172

Post Award Conference

Contract monitoringProgress reportsPerformance assessment

Security

Safety and compliance

Property

Inspection, acceptance and paymentPast performance documentationWrapping up the contract

COR Monitoring Overview171

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Varies with complexity, considering

Type of contractComplexity of work

Scope of work

Contractor’s experience

Contractor performance

Contracting environmentSupplies vs. services

How Much Contract Monitoring?

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Monitoring may involve:

Review of progress reportsSecurity and safety reviews

Property administration

Inspection and acceptance

Meetings with contractor personnel

Site visitsRandom samplingTimecard checks

Monitoring/Surveillance Activities

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The contractor has primary responsibility for ensuring the quality and timeliness of its goods or services in meeting contract performance standards

Your job will be to assess the contractor’s performance to ensure it conforms to contract performance requirementsUnsatisfactory performance may jeopardize a project or may directly impact an organization’s ability to perform its mission.

Practice insight...not oversight!

Your role is to validate the contractor’s quality system, not duplicate it.

Quality and Surveillance

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Are “we” on the same page..

“We” the Government team“We” the Government and contractorReview contract requirements

Decide how to resolve problems

Identify and resolve oversight

Start with Post Award Orientation

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Topics

Communication practicesRoles and responsibilitiesContract administration/monitoring processes and plans

Delivery, acceptance, and payment

Process to mitigate risks

Post Award Orientation

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Vary in form from a single page memo or letter to several hundred pages of detail by task with supporting graphs and tables

Summarize progress since preceding report, so earlier reports are summarized, subsumed and superseded by the new report

Focus is on:

Project status

Measurement of achievements against objectivesProblems encountered

Work completedWork remainingEvaluation

What is a Progress Report?177

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The progress report should be checked for the following:

Will the contractor meet the delivery dates; do you foresee a problem?

Are the expenditures in line with the work performed; with the work planned?

How does the percentage of work completed compare to the funds expended?

How to Check a Progress Report

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How does the status of the deliverables (reports, designs, texts) compare to the progress report?

Review invoices and compare to the progress reportPerform a site visit and compare to the progress report

Discuss with the contractor any ambiguities or discrepancies

How to Check a Progress Report

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Receive and log the deliverablesConduct a preliminary review

Confirm the list of reviewers and distribute Based on specific area of expertise, reviewers provide commentsReview Process

180

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COR may arrange a comment review meeting with the reviewers to consolidate the comments

CO and COR discuss the consolidated comments and determine if the deliverable should be accepted or rejected. COR prepares either a letter of deliverable acceptance or a rejection indicating the required corrections and next steps

Documentation is placed in COR file

Review Process (cont.)

181

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Slide183

The contract data requirements list (CDRL) is a list of authorized data requirements for a specific acquisition including reports

It is comprised of DD Form 1423 which contains data requirements and delivery informationProvides a standardized method of clearly and unambiguously delineating the Government's minimum essential data needs in one place

Key to Reporting is in the CDRL

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Performance Assessment

The contractor’s performance should be assessed on an ongoing basis throughout the contract on both a formal and informal basis.

It must also be done at contract completion, i.e., documenting past performance.

183

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Cost control

Timeliness (schedule/delivery)QualityBusiness relations

Management of key personnel

Customer satisfaction

Compliance (e.g., OSHA, EPA, DOL)

Assessment Factors Overview

184

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Tends to be a “subjective” analysis

Encompasses matters such as the contractor’s:ResponsivenessProfessionalismCooperativeness

Business Relations

185

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Slide187

Are technical experts highly qualified and effective in performing the required services?

Do they meet the skill level stated in the contractAre an appropriate number of personnel assigned to the project?

Do delivered products reflect skill and standardization required by the customer?

Management of Key Personnel

186

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Satisfy your customer in terms of cost,

quality and timeliness of the delivered product or service

Percent of product that meets customer expectations

Time to answer customer complaints

Number of customer complaints

Customer Satisfaction

187

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Be aware of any security requirements that apply: facility, storage, personnel

Review contract security clauses and DD 254 Contract Security Classification SpecificationProcess clearance and visit requests promptly

Report any violations

Security Monitoring

188

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Safety & Compliance Monitoring

Examples of areas

OSHA

EPA

Labor laws

LicensingHAZMAT

189

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Government property is defined in FAR 52.245-1(a) as

all property owned or leased by the Government. Government property includes both Government-furnished (GFP) and contractor-acquired property (CAP).

Government Property

190

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“Any property in the possession of,

or directly acquired by, the Government and subsequently furnished to the contractor for performance of a contract.

Contractor acquired property that is subsequently delivered to the Government for use on the same or another contract is considered GFP.”

Government Furnished Property

191

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“Any property acquired, fabricated,

or otherwise provided by the contractor for performing a contract, and to which the Government has title. Although the Government may have title, CAP has not yet been delivered.”

Contractor Acquired Property

192

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Slide194

Government property includes the following five classifications:

MaterialSpecial toolingSpecial testing equipmentEquipmentReal property

Government Property

193

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They can either be GFP or CAP

Slide195

FAR 45.102 Policy

Contracting officers shall provide property to contractors only when it is clearly demonstrated:

To be in the Government's best interest

That the overall benefit to the acquisition significantly outweighs the increased cost of administration, including ultimate property disposal

That providing the property does not substantially increase the Government's assumption of risk

That Government requirements cannot otherwise be met

Government Property Requirement

194

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Administer the terms and conditions of the contract as they apply to Government property (GFP and CAP) including the requirements of FAR 45 and the clauses at FAR 52.245-1, -22 and -9.

Oversee the contractor’s management of Government property through the contractor’s property management system, including reviewing the processes in the applicable clause.

Perform the necessary Governmental screening prior to directing disposition of Government property

Provide instructions to the contractor for disposition

Verifies preparation, shipment, transfer or disposal of excess and surplus Government property.

Government Property Administration

by the COR195

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The Government generally assumes the risk of loss of Government property while in the contractor’s possession:

Liability for the Loss, Damage, Destruction or Theft of Government Property

196

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Fire

Flood

Storm

Theft

Accident

Module 9

Slide198

Government property may be disposed of through numerous processes:

It may be scrapped through an approved scrap procedureIt may be purchased at acquisition cost (CAP only)It may be transferred, donated, sold or directed to be destroyed, or even abandoned

Must be done in accordance with applicable regulations

Federal Property Administrative Services Act of 1949

The Federal Management Regulations and the

FAR Subpart 45.6Disposition of Government Property

197

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The process is different depending on contract type

The process is different for supplies, services and constructionThe process is different for commercial and

non-commercial contracts

The process starts at contract award and does not end until contract closeout

Inspection, Acceptance and Payment

198

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Government has the right to inspect all materials and workmanship at any time or place where work on a contract is being performed

Basis of inspection clausesInspections may:Occur at any time prior to acceptance

Be announced or unannounced

Not unduly delay work

Not include directions that would change the contract

Government Right to Inspect

199

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Slide201

52.246-1 Contractor Inspection Requirements

52.246-2 Inspection of Supplies-Fixed Price 52.246-3  Inspection of Supplies—Cost-Reimbursement

52.246-4 Inspection of Services-Fixed Price

52.246-5   Inspection of Services—Cost-Reimbursement

52.246-6  Inspection—Time-and-Material and Labor-Hour

52.246-12 Inspection of Construction

Inspection Clauses200

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Types of quality requirements

Commercial ItemsInspection by the contractorStandard inspection requirements

Higher-level contract quality requirements

Quality

201

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Assumption that Government will rely on contractor’s assurances that tendered items conform to the requirements of the contract

Acceptance is not conclusiveBuyer can revoke if:

rejection was given within reasonable time after defect was discovered

before substantial changes occur in condition of the item

Acceptance of Commercial Items

202

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Slide204

“Acceptance” means the act of an authorized representative of the Government by which the Government, for itself or as agent of another, assumes ownership of existing identified supplies tendered or approves specific services rendered as partial or complete performance of the contract. (FAR 46.101)

“Conditional acceptance” means acceptance of supplies or services that do not conform to contract quality requirements, or are otherwise incomplete, that the contractor is required to correct or otherwise complete by a specified date.

(FAR 46.101)

“Patent defect” means any defect which exists at the time of acceptance and is not a latent defect. (FAR 46.101)

“Latent defect” is a defect that is hidden from the knowledge and sight of the Government and that could not be discovered before acceptance by ordinary and reasonable care or by reasonable inspection. (FAR 2.101)

Acceptance FAR 46.5

203

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Exceptions to final acceptance:

Latent defectsFraud Gross mistakes amounting to fraud

Exceptions to Acceptance

204

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Slide206

Not readily noticeable

upon a reasonable inspection

at the time of acceptance

Latent Defects

205

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Slide207

DD Form 250 is a Government multipurpose report used as:

Acceptance of equipment/data by the Government The contractor's invoice for payment A packing list for shipping and receiving

Evidence of Government quality inspection

DD 250 acceptance authority (signer) is designated in Section E—Inspection and Acceptance

DD250

206

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A promise or affirmation given by the contractor/supplier/manufacturer to the Government/user/purchaser regarding the nature, usefulness, condition, or performance of the subject matter of the contract.

Warranty

207

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Goods must be fit for the ordinary purposes for which such goods are normally used

Unless stated otherwise in merchants contract for sale of goods, this warranty is incorporated

Warranty of Merchantability

208

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Slide210

Special protection for a buyer who relies on the sellers expertise in selecting suitable goods

Properly written performance statement in the SOW helps to better identify this warranty

Warranty of Fitness for

a Particular Purpose

209

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Slide211

May be specifically excluded by calling buyer’s attention, in understandable language to exclusion of warranties

Excluded when buyer has examined goods, sample, model as fully as s/he wanted to, or when buyer refused to examine goodsBy agreement

Exclusion of Implied Warranties

210

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Slide212

Any promise or affirmation of facts that become part of the bargain

Description of goods that is part of the basis for the bargainAny sample or model that is part of the basis for the bargain

Express Warranties

211

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Slide213

Ensure that payment is made only to contractors who perform according to contract terms and conditions

Generally due within 30 days of receipt of “proper” invoice or interest is due contractorGovernment has 7 days from receipt to notify contractor if invoice is improper

Payment

212

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Slide214

Comparing progress reports with invoices

Reviewing timecardsUsing inspection reports to verify actual usage (e.g., equipment on the site)

Maintaining an invoice log

Notifying CO of discrepancies as soon as possible

Invoice Review and Approval

213

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Slide215

OT must be specifically allowed on the contract

Only the CO can authorize the use of OTCOR review of contractor overtime may include:Is the OT necessary?

If the OT is necessary, can additional funds be obtained to fund the OT?

What About Overtime (OT)?

214

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Slide216

The CO with the help of the COR ensures the following actions have been accomplished:

Services have been renderedArticles have been delivered and accepted

Payments and collections have been made

Disposition of property and classified information

Releases from liabilities, obligations, claims have been obtained from the contractor

Assignments of refunds and credits have been executed by the contractorAdministrative actions have been accomplishedExcess funds have been de-obligated Contract file is properly documented

Closeout Actions

215

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216

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Exercise

Slide218

217

MODULE 10

How Do I Handle “Issues”

With a Contractor?

Slide219

Upon completion of this module, you will be able to:Identify how a COR deals with non-compliance or poor performance

Define the COR’s role in the resolution of issues under the contract and his/her role in monitoring corrective actionsModule 10 Learning Outcomes

218

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1st Most Preferable—require the contractor to correct the non-complying/deficient items or services

2nd Accept defective items—useful only if deficiencies are minorCOR cannot accept any deficient items—only CO

3rd Least Preferred—reject non-complying item and terminate contract

COR cannot terminate a contract

Dealing with Non-Compliance

219

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Slide221

Silence on the part of the Government could be interpreted by the contractor as acceptance by the Government of substandard products or services

FYI: Silence is NOT Golden

220

Contracting Officer's Representative Course

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Slide222

Invoke contract clause

Stop Work, Cure Notice, Show Cause, Liquidated Damages, Warranty, TerminationWithhold or reduce award and incentive fees

Inspection clauses

Reject work or allow re-work

Suspend progress payments

Decline to extend term do not exercise option or award termRemedies Specifically in Contract

221

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Slide223

Failure to meet performance deadlines

Repeated safety violationsRepeated incidents of poor quality work

Complaints from site workers

Prolonged delays

Persistent complaints regarding Government employees or inspectors

Complaints from subcontractorsCOR’s Warning Signs for Claims

222

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Slide224

Any procedure or combination of procedures voluntarily used to resolve issues in controversy without the need to resort to litigation

Alternative Dispute Resolution

223

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Slide225

Types of Terminations

224

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NON-COMMERCIAL TERMINATIONS:

CONVENIENCE (T4C)

DEFAULT (T4D)

COMMERCIAL TERMINATIONS:

CONVENIENCE (T4C)

CAUSE

(

Similar to a Default)Module 10

Slide226

Insufficient funding

Requirement no longer existMajor change in the requirement that is beyond the contractor’s expertise

When to Consider Termination

for Convenience

225

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Slide227

Government, by written notice, may terminate the contract for the contractor’s failure to perform the following:

Deliver supplies or perform services within a specified timeMake progress that endangers contract performancePerform any other provisions of the contract

Termination for Default (T4D)

226

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Slide228

Cure Notice

TERMINATION FOR DEFAULT

IS IMPROPER IF THE REQUIRED

NOTICE AND OPPORTUNITY

TO CURE IS NOT GIVEN

TO THE CONTRACTOR

227

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CURE NOTICE

MUST

PROVIDE FOR

A 10 DAY CURE

Slide229

Show Cause

Should use the show

cause as a means of

discovering any

excusable cause of the contractor’s

failure to perform

228

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LESS THAN

10 DAYS

REMAINING FOR DELIVERY

Module 10

Slide230

When there is still a need for part of the contract, it can be partially terminated (if the terminated portion is severable)

The contractor may request an equitable adjustment to the price of the items remaining on the continuing portion of the contract due to:Loss of volume discounts,

Increase in overhead rates applicable to non-terminated units, and

Unabsorbed setup or starting load costs

Neither the overhead costs that would have been absorbed by the terminated units nor the anticipatory profits can be recognized

Partial Terminations

229

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Slide231

Termination is an extreme remedy

Both Government and contractor will be detrimentally impactedEntire project placed at risk

When to think twice about terminating

Substantial performance has been achieved

“Unclean hands” of the GovernmentLogistical problems

Unique services“Best Interest of theGovernment” Considerations

230

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Slide232

231

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Module 10

Exercise

Slide233

232

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Module 10

Exercise

Slide234

233

MODULE 11

Are There Special Considerations

for Service Contracts?

Slide235

Upon completion of this module, you will be able to:List the contents of a Quality Assurance Surveillance Plan (QASP/Performance Assessment Plan (PAP)

In performance based contracts, identify techniques for verifying performance of work IAW the Government’s QASPRecognize the requirement to safeguard data with restrictive markings

Module 11 Learning Outcomes

234

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Slide236

Distinguish between personal and non-personal services and act accordingly with contractor personnelEvaluate the contractor’s compliance with safety, labor, Service Contract Act, environmental law, and regulatory requirements

Identify the communications necessary among all interested parties to the contract as frequently as needed to ensure the services provided meet the established standards

Module 11 Learning Outcomes (cont.)

235

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Slide237

Service Contract Act

236

Contracting Officer's Representative Course

SERVICE CONTRACT

ACT of 1965

Dept. of Labor

Requires all Govt. contracts

Over $2,500 provide

prevailing wage and fringe

benefits determined by DOL.

Module 11

Slide238

Functions that are so intimately related to public interest as to mandate performance by Government employees, such as:

Direction/control of Federal employeesDetermination of budget policy, guidance and strategy Resource allocation or program management duties

Approval of contractual documents or administering contracts

Obligating congressional authorized funding

Only Government officials can legally perform “inherently Governmental functions”

Inherently Governmental Functions

237

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Slide239

Personal Services

Contractor personnel appear to be Government employeesUsually involve continuous direct supervision and control by the GovernmentAgencies may not award personal services contracts unless specifically authorized by law

Personal vs. Non-Personal Services

238

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Slide240

Personal services: an employer-employee relationship through practice or appearance. Examples of things to avoid:

Determining who should perform contract tasks or how they should be done Pressuring/influencing contractor to use “favorite” employees, or insist on particular personnel actions

Use Government and contractor personnel interchangeably

Supervising contractor employees

Rating individual contractor employee performanceRequire “out of scope” work or “inherently Governmental functions.” Required services are specified in the contract—there are no “and other duties as assigned.”

Keep an Arms Length Relationship

239

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Slide241

Advisory and assistance services (A&AS) or CAAS

Federally Funded Research and Development Corporations (FFRDC)Intergovernmental Personnel Act (IPA)

Understanding Different

Types of Support

240

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Module 11

Slide242

Can be used to:

Obtain outside points of view to avoid too limited judgment on critical issues

Obtain advice regarding developments in industry, university, or foundation research

Obtain the opinions, special knowledge, or skills of noted experts

Enhance the understanding of, and develop alternative solutions to, complex issues

Support and improve the operation of organizations

Ensure the more efficient or effective operation of managerial or hardware systemsApplications

241

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Slide243

Federally Funded Research and Development Centers IAW FAR 35.017

Employs private sector resources to accomplish tasks integral to the mission and operation of the sponsoring agencyHas beyond normal access to Government and supplier data

What is an FFRDC?

242

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Slide244

Performance-based means structuring all aspects of an acquisition

around the purpose of the work to be performed with the contract requirements set forth in clear, specific, and objective terms with measurable outcomes as opposed to either the manner by which the work is to be performed or broad and imprecise statements of work.

Performance-Based Acquisition

243

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Slide245

FAR 37.6 defines the mandatory elements as follows:

A performance work statement (PWS)Measurable performance standards and the method of assessing contractor performance against performance standards

Use of performance incentives when appropriate

Elements of a

Performance-Based Acquisition

244

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Slide246

Service Acquisition Process

245

Contracting Officer's Representative Course

Conduct Historical Analysis

Define Stakeholder & Customer needs

2. Review Current Strategy

3. Market Research

Analyze Market

Identify suppliers

Develop Requirements Roadmap

Draft

PWS

and QASP

4. Requirements Definition

Business Strategy

Source Selection Strategy

5. Acquisition Strategy

Select Right Contractor

Award Contract

Roll out strategy

6. Execute Strategy

Build & Manage Relationship

Assess Performance

7. Performance Management

Mission

Requirement

Leadership Support

Build the Team

1. Form the Team

Mission

Results

SB

Users

Tech

Legal

PEOs

PCO

Buyers

QA Reps

CORs

Resource Mgt

Proj. Mgr

Stakeholders

Acquisition

Team

Module 11

Slide247

Helps you identify:

Who’s buying this service?Both in the Government and private industry

Who’s providing this service?

To Government and private industry

How is the service being purchased?

Types of contracts, incentives, how they are structuredHow are the contractors delivering the service?Address performance results, measures/metrics, customer satisfaction, cost and value assessments

Market Research246

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Slide248

Define Your Tolerance for Variation

An AQL states the maximal % of nonconforming items. However, the contractor is still expected to meet the performance standard.

Is there an allowable range of performance associated with each performance standard?

Perfection comes at a price

What should you address to determine if an AQL is appropriate?Will it still achieve our performance objective?

Easily understood?Clearly delineated?

247

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Module 11

Requirements Roadmap Worksheet

Objective

Standards

AQL

Incentive

Assessment

Slide249

Quality Assurance Surveillance Plan

248

Contracting Officer's Representative Course

Module 11

The

QASP

is based on the premise that the contractor, not the Government, is responsible for managing and ensuring that quality controls meet the terms of the contract.

Contractor develops quality control plan for its internal use to ensure that it performs and delivers quality service. Often, the quality control plan is part of the contractor’s original proposal, and, in many cases, is incorporated into the contract

.

Slide250

100% Inspection

Expensive and time consumingInspection of Services clausePeriodic Inspection

Planned and limited inspections

Less time consuming

Random Sampling

Assumes acceptable performance if specific number of inspections are acceptableAppropriate for frequently occurring taskshttp://www.sqconline.com/mil-std-105.html

Methods of Assessment

249

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Module 11

Slide251

Trend analysis

Monitor contractors ongoing performanceJoint Government and contractor data base is very effective way to monitor

Customer feedback

Actual user feedback

Can be very subjective Users don’t know the contract requirements

Negative is plentiful, positive is limitedHow will you collect the informationThird party auditsIndependent reviews by a third partyGovernment inspections standard for commercial services

Methods of Assessment

250

Contracting Officer's Representative Course

Module 11

Slide252

Two contract types which entail monetary incentives

Award feeIncentive fee

Incentive fee contracts contain objectively measurable performance criteria

Incentive is earned when performance exceeds criteria

Both performance and cost control can be incentivized

Award fee contracts contain a separate award fee pool used to motivate performanceRequires an award fee plan that describes the performance areas to be incentivizedRelies on subjective measures

Administratively burdensomeAnother monetary “incentive” commonly found in PBA contracts is a deduction for not meeting PWS performance standardsMonetary Incentives

251

Contracting Officer's Representative Course

Module 11

Slide253

MODULE 12

Are There Special Considerations for Construction Contracts?

252

Slide254

Upon completion of this module, you will be able to:Analyze the inspection clauses for fixed-price type and cost reimbursement type contracts used in construction

Account for safety, security, labor, environmental law, and regulatory requirements the contractor must comply with

Module 12 Learning Outcomes

253

Contracting Officer's Representative Course

Module 12

Slide255

Employees paid at least once a week

Wage determination made by DOLPosted on job site in a prominent locationBasic hourly rates and fringe benefits

COR interviews employees—SF Form 1445

Construction—Davis Bacon Act

254

Contracting Officer's Representative Course

Module 12

Slide256

Review contractors certified payrolls

Check work sites for required postings Conduct labor standard Interviews

Compare payrolls and onsite interviews

Resolve discrepancies/violations

COR Compliance Checking

255

Contracting Officer's Representative Course

Module 12

Slide257

The Miller Act requires contractors to furnish performance and payment bonds for construction contracts over $150,000

A bond is a written instrument between the contractor and a third-party surety to assure fulfillment of the contractor’s obligation to the Government and to suppliers of labor and material for a given project

Required in the amount of 100 percent of the original contract price in construction contracts

Performance and Payments Bonds

256

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Module 12

Slide258

Compensation for harm to Government

Untimely performanceActual cost to the GovernmentMust not be a penalty!!

Daily rate

Cost to administer the contract and perform additional inspections

Cost to rent substitute propertyUse if impact of delay is significant

Construction—Liquidated Damages

257

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Module 12

Slide259

Subsurface or latent physical conditions

Differ materially from those indicated in the contractUnknown physical conditions at the siteDiffer materially from those:

Ordinarily encountered

Generally recognized inherent to work of the character provided in the contract

Contractor must provide written notice to CO

Construction—Differing Site Conditions

258

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Module 12

Slide260

Allows CO to suspend performance—for a “reasonable” period of time

If unreasonable contractor may be entitled to certain costs attributed to delayCOR must maintain adequate records

May reveal contractor contributed to suspension

Or, not damaged by the suspension

Or, suspension was reasonable To determine amount of costs if found to be unreasonable

Construction—Suspension of Work

259

Contracting Officer's Representative Course

Module 12

Slide261

Read and Complete the Exercise in Module 12

Galley Job Exercise

260

Contracting Officer's Representative Course

Module 12

Slide262

261

MODULE 13

Are There Special Considerations for Research and Development and Major Systems Contracts?

Slide263

Upon completion of this module, you will be able to:Define EVM and cost performance reporting

Define the major actions required to evaluate the contractor’s engineering efforts and management systemsList what you can and cannot discuss with the contractor concerning drawings, specifications and performance parameters

Module 13 Learning Outcomes

262

Contracting Officer's Representative Course

Module 13

Slide264

Contractor has unfair competitive advantage, if:

contractor prepared the SOW—if so, may not be able to compete for the follow-on effortSee FAR 9.5 for examples Can compete for follow-on effort, if

Sole source

Developed and designed the system

More than one contractor involved in preparing the SOW

See the CO legal or advisor for guidanceOrganizational Conflict of Interest

263

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Module 13

Slide265

Earned Value Management (EVM)

EVM requires an integrated management system (IMS) that coordinates work scope, schedule, and cost goals; and objectively measures progress toward these goals

Required on cost or incentive contracts, subcontracts, and intra-Government agreements valued at or over $20M

DFARS 252.234.7002 requires ANSI-EIA 748 compliance for contracts > $20M and EVMS validation for contracts > $50M

EVM provides the project manager and COR with the tools to effectively measure and monitor technical, cost, and schedule performance

264

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Module 13

Slide266

Why does the Government need data?

To compete contracts among suppliersEnsure logistic supportDocument the results of research

Must protect from unauthorized disclosure or use

To avoid jeopardizing contractor’s commercial position

Especially for privately financed data

Data Rights

265

Contracting Officer's Representative Course

Module 13

Slide267

266

Module 14

Role of COR in a Contingency

Slide268

Upon completion of this module, you will be able to:Identify cultural taboos in a contingency environment

Identify the process for reporting bribery, kickbacks and other illegal actsGiven a contingency scenario, evaluate contractor’s compliance with performance terms and conditions

Module 14 Learning Outcomes

267

Contracting Officer's Representative Course

Module 14

Slide269

Per 10 USC 101 (a)(13), contingency operation means a military operation that—

(A) is designated by the Secretary of Defense as an operation in which members of the armed forces are or may become involved in:military actions,

operations, or

hostilities against an enemy of the United States or against an opposing military force; or

(results in the call or order to, or retention on, active duty of members of the uniformed services under section 688, 12301 (a), 12302, 12304, 12305, or 12406 of this title, chapter 15 of this title, or any other provision of law during a war or during a national emergency declared by the B) President or Congress.

Definition of Contingency Operation

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Contracting Officer's Representative Course

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Cultural differences

Gifts and bribesWorking with contractorsSynchronized pre-deployment and operational tracker (SPOT)

Trafficking in persons

Contingency Environment

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Contracting Officer's Representative Course

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The COR role doesn’t change in a contingency environment. You still:

Are a Government appointed representativePerform duties in accordance with your appointment letter

Monitor contract performance

Provide CO with documentation on compliance/non-compliance

Observe, document, and communicate

You cannot change the contractRole of COR in a Contingency

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Contracting Officer's Representative Course

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Slide272

Religion

PoliticsHighly personal questionsSaying “no”

Geography

Ethnic jokes

Conversational Taboos

271

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Slide273

A gift is anything of value, including cash and investment interests. You may not accept a gift because of your official position or because the source of the gift is prohibited.

The following are not gifts:Modest items of food, refreshments, but not a meal

Greeting cards and items with little intrinsic value intended only for presentation

Commercial discounts available to the public or to all Government personnel

Anything for which you pay market value

Gifts and Bribes

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Slide274

CORs must understand a bribe occurs when someone directly or indirectly gives, offers, or promises anything of value to any public official, former public official, or person selected to be a public official due to their position

Giving or accepting a bribe is a crime punishable by fine, imprisonment, or both

Gifts and Bribes

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Contracting Officer's Representative Course

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Slide275

There are many cultures where bribes, gratuities, or exchanges of gifts are common business practice

If confronted with this situation, the COR must:

Explain that the US military does not conduct business in this manner

Notify his/her superior

Write a memo for record documenting what transpired

It is possible that the contractor will insist that you accept a gift. In this case, COR must:Reiterate that this is not how the US military conducts businessInform the contractor that the gift will in no way affect contracting decisions

If a contractor is insistent and there is no diplomatic way to avoid accepting the gift, the COR should:Accept the gift on behalf of the US militaryImmediately notify his/her superiors Consult with legal advisorTurn the gift” over to finance or other authority as directed by command for safekeeping

Write a memo for record documenting what transpired

Gifts and Bribes

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Contracting Officer's Representative CourseModule 14

Slide276

You would have financial interest in a contract or other matter that affects the contractor in situations such as these:

You own stock in a company that is bidding on a contract (or that is likely to be a subcontractor)You have a pension with, or deferred compensation from, your former employer, a contractor that is participating in an acquisition with your agency

You moonlight for a company that gets a contract with your agency

Your spouse works for a contractor and his/her salary would be affected if the company is awarded (or loses) a contract with your agency

Your position as a COR prohibits you from working on Government matters that could affect your financial interests

You may be required to file an annual Confidential Financial Disclosure Report.Conflict of Interest

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Slide277

Working with acquisitions, you need to know what the PIA is and the penalties for violating it.

The key provisions of the PIA include:A ban on obtaining or disclosing contractor bid or acquisition informationA one-year ban on accepting compensation from certain contractors after leaving Federal employment

A requirement for acquisition officials to report employment contacts with a contractor

Procurement Integrity Act (PIA)

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Slide278

Thank you for your participation!

Answer the final exam questions and return the exam to the instructor

Please complete the participant evaluation.

Check with your instructor for information about

related courses.

277


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