Contract Management: Key Role Past Performance Reporting Plays in the Acquisition Lifecycle - PowerPoint Presentation

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Contract Management: Key Role Past Performance Reporting Plays in the Acquisition Lifecycle

Julia B. WiseSenior Procurement Policy AnalystOffice of Federal Procurement PolicyOffice of Management and Budget

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US Procurement System

Scope - Government Coverage

112 Departments & agencies around the world

3,400 Contracting Offices

The People30,000 Contracting Officers (FAR 1.602) Contracting Officer’s Representatives (FAR 1.604)Program Managers300,000 purchase card holders

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Contract Objective

Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. (FAR Part 2)Obtain the best value for the government in procuring quality

goods and

services at a reasonable price in a timely

mannerSeek to maximize full and open competitionPromote small business participation in government contractingObtain innovative goods and services Obtain quality performance and supplies to ensure the customer’s needs are met and the taxpayers dollars are spent wisely. 3

OFPP Past Performance Initiative

Past performance information is relevant information, for future source selection purposes, regarding a contractor’s actions under previously awarded contracts. (FAR 42.1501).

Since

2009, OFPP has taken several actions to increase the number and quality of past performance submissions available to source selection officials, including:

• emphasizing reporting requirements through memos to agency officials; • assessing and reporting on the level of compliance and quality of evaluations; • directing the development of a compliance tracking tool; • setting performance targets for certain agencies; • directing the consolidation of systems for entering past performance information; and • developing government-wide past performance guidance. 4

Acquisition Team

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Pre-Award Process in Requiring Activity/Program Office

Develop Funding and Requisition Document

Define the Requirement

Prepare Independent Government Cost Estimate

Prepare acquisition package: SOW/SOO/PWS Draft Evaluation Criteria/ Plan

KEY: SOW – Statement of Work SOO – Statement of Objective PWS – Performance Work Statement

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Conduct Market

Research

Google,

Check FPDS,

PPIRS, FAPIIS

Pre-Award Process in the Contracting Office

Assign CO/Buyer

Validate Market Research

Finalize Acquisition Strategy/Plan

Buyer Reviews

Issue RFQ/RFP

Management Review

Draft RFQ/RFP

Legal Review

Receive Offer/Compliance Review

Determine

LPTA/ Best Value

Procurement Management Review

Technical Evaluation of Offer/Price

Contract Performance

Award

Legal Review

Debrief Offeror

Receive Procurement Package

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Award: Source

Selection Process

RFP/RFQ Issued

Individual Evaluations of proposals based on solicitation criteria

Source Selection Panel Caucus

RFP/RFQ Offer Received

Award Decision

SSA Briefing

Contract Award

Debriefings

Comments Strengths Weaknesses

Deficiencies Merit & Confidence Ratings

Consensus Strengths Weaknesses

Deficiencies Merit & Confidence Ratings Cost Issues

KEY: RFP – Request for Proposal RFQ – Request for Quote SSA – Source Selection Authority

LPTA – Lowest Price Technically Acceptable

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Technical

Proposal

Including

PPI

and

Cost proposa

l

Post-Award: Contract Management Process

Quality Surveillance Plan - used to monitor

Contract Performance

Document Contract Performance

Kick-Off Post-Award Conference or Meeting

Invoice Payments

Modification Issued – within scope changes

Contract Closeout

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Prepare the

Contract

File

Contract Management

Objective: Achieve the contract objective and outcomes. What is it?

The art and science of formulating, executing, administering and closing a contract transaction between the government and the contractor.

Who participates

? The government and contractor participate in the contract management process.What governs the process? Contract regulations that govern this process (FAR Part 42, Contract Administration and Audit Services)10

Contract Management Best Practices Tips

Good Solicitation + Sound Contract Award = Good Contract Management

Starts with acquisition planning – the beginning dictates the end results

Plan for good contract management – develop

a contract administration plan that measures the contractor's performance and supports paymentStart with a post-award conference .Recommendations: Know what you buying.Establish an Acquisition Team or Integrated Project Team that can supplement your expertise.Develop a Clear and Concise Clear Requirements with performance metrics. Hold frequent meetings with contractors (subcontractors, if necessary) and document performance resultsDesignate a P/PM and COR upfront before the solicitation is issued. Hold contractors accountable and manage the contract to success11

12What requires past performance evaluation?

1994 Federal Acquisition Streamlining Act (FASA) dated October 13, 1994 (Public Law 103-355)It is appropriate and relevant that a contracting official consider a contractor’s past performance as an indicator that the offeror will successfully perform a contract to be awarded.

Federal Acquisition Regulation (FAR) 15.304(c)(iii

)

FAR Part 42., Contract Administration and Audit ServicesFAR 42.15, Past Performance Information FAR is available at www.acquisition.gov/far

Acquisition Roles

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Program manager, requiring officials, contract specialist, contracting officer, logistics, others as needed. Program manager and requiring officials primary in this step

Add budget officer, financial management

All of the above and add cost/price analyst as needed. Contracting officer primary in this step.All with contracting officer leadingAll with contracting officer representative and program office leading

Where is Past Performance/Integrity information reported?

The Contract Performance Assessment Reporting System (CPARS)

is a web-enabled system used to document contractor and grantee performance information as required by Federal Regulations.

Completed CPARS reports are transmitted to the Past Performance Information Retrieval System (PPIRS) where they are used to support future acquisitions.

CPARS includes Best Practices and a Quality Checklist that help agencies write quarterly evaluation reports.The Past Performance Information Retrieval System (PPIRS) is a web-enabled, enterprise application that provides timely and pertinent contractor past performance information to the Department of Defense and Federal acquisition community for use in making source selection decisions. The Federal Awardee Performance and Integrity Information System (FAPIIS) is a web-enabled application used to collect certain information on contractor and grantee performance. FAPIIS information is publicly available at www.fapiis.gov. 14

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What are the Benefits of Past Performance Information Validates

statements made in proposal

Integral to best value source selection

Motivates contractors to strive for excellenceRecognizes good performanceReduces risk and oversightConfirms that government obtained the outcomes awarded.Contractor can eventually be paid for services and supplies delivered. Why evaluate past performance?

Recent GAO Report: Past Performance Reporting

Agency

April 2013

April 2014

Defense76%83%Treasury4771Interior1551

Homeland Security

34

45

Justice

21

29

Agriculture

13

27

Veterans Affairs

4

25

Health and Human Services

10

24

State

3

15

General Services Administration

3

13

Other agencies3247Total federal government32%

49%16

Source: Past Performance Information Retrieval System | GAO-14-707Rate of Compliance with Past Performance Reporting Requirement as of April 2013 and April 2014 for Top 10 Agencies Based on Number of Compliance Rate due

Questions 17