Contract Administration
Briefing for NCMA Lone Star Chapter
Presented by Richard Furlong, C.P.M., Fellow
Nov. 13, 2008
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Acquisition Situation
So…
 You’ve determined what you needed
 Did your Market Research
 Came up with some money
 Solicited your requirement
 Negotiated with Offerors
 And made an Award!
Now What?
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Procurement Life Cycle
Define Requirements
 Pre-Award
 Award
 Post-Award
Contract Administration
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Post Award
Sometimes broken out to mean only issues
dealing with:
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Post Award Conferences
Modifications
Funding
Reporting (FPDS, Metrics)
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Contract Administration
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Generally accepted definition:
• Contract Administration is a system that
ensures contractors perform in accordance
with the terms, conditions, and specifications
of the contract
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Possibilities
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Hand it off:
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Contract out
DCMA (DoD)
Keep it and do Contract Administration
yourself (Cradle to Grave)
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Contract Administration
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Top Level Considerations:
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Delivery
Vendor Invoicing and Payment
Closeout
Archive
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Where to Start
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Read the Contact
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Goods or Services or both?
What is to be Delivered?
 When is it to be Delivered?
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Firm-Fixed Price or Cost Reimbursement?
Determine approach & establish a plan
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Guidelines for the FEDs
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For the Federal Workforce Guidance is in the FAR:
Title 48: Federal Acquisition Regulations System
PART 42—CONTRACT ADMINISTRATION AND AUDIT SERVICES
Subpart 42.3—Contract Administration Office Functions
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42.301 General.
When a contract is assigned for administration under Subpart 42.2,
the contract administration office (CAO) shall perform contract
administration functions in accordance with 48 CFR Chapter I, the
contract terms, and, unless otherwise agreed to in an interagency
agreement (see 42.002), the applicable regulations of the servicing
agency. [63 FR 9063, Feb. 23, 1998]
42.302 Contract administration functions.
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Kickoff Meeting
Regardless of the size of your Acquisition,
you should hold a kickoff meeting. Goal of
the meeting is:
 Achieve clear and mutual understanding of
all contact requirements
 Ensure common understanding of
expected process and deliverables
 Identify and resolve potential problems
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Buyer and Seller:
Contract Administration
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Ensure that all contractual obligations are met
through communication among all necessary
parties; manage contract disputes through
negotiation/resolution and review lessons
learned throughout performance and at contract
completion.
Communicate Contract Authorization
Plan Contract Administration
Manage Contract performance *
Review Contract Completion

NCMA World Congress 2008 – Session #310
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Manage Contract Performance
***Delivery Phase***
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Dealing with the Problems/Issues that
arise during the Performance of the
Contract
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Monitoring Progress
Involves regular review and analysis of:
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Monthly Status Reports
Planned vs. Actual costs
Planned vs. Actual performance
Accuracy of Contractor reports
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Past Performance
One of your responsibilities is to not only
manage but document the contractor’s
performance.
 This is relevant information for future
source selection purposes and risk analysis
efforts
 If embraced, it could significantly improve
source selection and contract
management.
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Contract Delivery
Delivery requirements are specified in the
contract:
 Time and place of delivery
 Quantity to be delivered
 Method of delivery
 Individual or office with the authority to
receive and accept the deliverables
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Contract Modification
Definition: A contract’s terms and conditions
such as it’s Statement of Work, Period of
Performance, quantity, or price, are
modified in writing.
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Contracting Officer is the only person
authorized to make any contract
modification.
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Unilateral Modification
Unilateral Modifications are used to:
 Make a change authorized by contract
clauses
 Make an administrative change
 Issue a change order
 Issue a Termination Notice
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Bilateral Modifications
Bilateral Modifications include:
 Cost Overrun Modification
 Extend the period of performance for
completion of contract requirements
 Define letter contracts
 Incorporate any other agreements of the
contracting parties
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Examples of
Contract Administration
Areas of Concern
Notification to Unsuccessful Offerors
Debriefing of Unsuccessful Offerors
 Protests
 COTR Appointments & Correspondence
 Bonds
 Post-Award Orientation Conferences
 Material Deficiencies
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Examples of
Contract Administration
Areas of Concern
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Claims
Federal Procurement Data System Reports
COTR Recommendations
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Performance / Surveillance Reports
Deliverable / Status Reports
Post Award Correspondence
Revenue and Debt Collection
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Examples of
Contract Administration
Areas of Concern
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Termination Actions
Software Licensing Agreements
Labor Disputes
Property issues
Modifications / Negotiations
Invoices & Payments*
Freedom of Information Requests
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Examples of
Contract Administration
Areas of Concern
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Assignment of Claims
Novations
Change of Name Agreements
Suspensions and Debarments
Congressional Inquiries
Duty Free Entry of Goods
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More…
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Subcontracting
Certificate of Confidentiality and NonDisclosure
Security Clauses & Issues
EVEN MORE>>>
• Under FAR 42.302(a) 70 Activities listed
• Under FAR 42.302(b) 11 Activities listed
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By Contract Type
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Firm-Fixed Price
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Cost Reimbursement
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Deliverables
Contractor Payments
Provisional and Actual Audits of Contractors
Books (determination of RATES)
Labor / Time Keeping Audits
Grants / Other Transactions
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Special Rules on Expenditures
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Vendor Invoicing and Payment
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Authorization
Process?
Separate Pay Office?
Funding:
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Advance Payments
Progress Payments
Performance Based Payments
Loan Guarantees
Interim Payments
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Back to the Life Cycle
O.K. all issues have been dealt with…
Everything has been delivered
The contractor has been paid
NOW WHAT?
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Contract Closeout
Definition: Contract is officially ended.
There is no longer a contractual
relationship between the Government and
the contractor.
 The contractor has completed all
deliverables.
 The CO or COTR has signed off on the
deliverables.
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Close Out
Close out if Physically complete*:
 (1)(i) The contractor has completed the required
deliveries and the Government has inspected and
accepted the supplies;
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(ii) The contractor has performed all services and the
Government has accepted these services; and
(iii) All option provisions, if any, have expired; or
(2) The Government has given the contractor a notice of
complete contract termination.
(b) Rental, use, and storage agreements are considered
to be physically completed when—
(1) The Government has given the contractor a notice of
complete contract termination; or
(2) The contract period has expired.
* FAR 4.804-4
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Close Out
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Release of Claims
Reporting of Royalties
Patents & Copyrights Infringements
Property Issues – final inventories
Audit Settlements
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Final Phase
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Archive
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Documentation
Hold on to it – a required time period*
* For the Feds: See FAR 4.805
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Questions
Document, document, document…
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