Post Award Contract Administration

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Government View for Post
Award Contract Administration
NCMA Annual Conference
10 Mar 10
Maj Michael Belko
Commander, 66th Contracting Squadron
Hanscom AFB, MA
Post Award
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FAR allows for delegation of contract administration
IAW agency procedures (FAR 42.202)
DFARS details agency procedures (DFARS 242.202)
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DoD activities shall not retain contract administration that
requires performance at or near contractor facilities (with
many exceptions)
Base, post, camp and station contracts on a military
installation are normally the responsibility of the installation
or tenant commander

However, duties may be delegated to DCMA
Contract Administration
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FAR 42.302 lists 70 contract administration
functions that may be delegated by the
Contracting Officer (CO)

CO may retain any of these functions except for:
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Negotiating forward pricing rate agreements
Establishing final indirect cost rates and billing rates
Determining adequacy of disclosure statement or
compliance with Cost Accounting Standards (FAR 31)
Contract Administration (Cont’d)
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70 contract administration functions include:
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Contract Management
Financial Services
Engineering Support Services
Property Management
Quality Assurance and Product Acceptance
Software Acquisition Management
Small Business
Specialized Safety
PCO/ACO Interaction
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Delegation of administration is determined preaward
Administrative Contracting Officer (ACO), or
DCMA staff, can provide input to solicitations,
identify performance risks, assist with selection
of capable contractors
Early involvement with ACO/DCMA will better
enable evaluation of post award contract
performance
ACO/DCMA can provide input to PCO for
contract structure to ensure ease of administration
To Delegate or Not…

Delegation of contract administration is
dependent upon:
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Uniqueness of organization, requirement,
contract
Location of the work to be performed
Inherent nature of the work
DFARS requirements
Examples

Large weapon system/aircraft platform contracts are
usually administered via DCMA with the Administrative
Contracting Officer (ACO) located in the contractor’s
facility
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ACO performs all administrative functions with assistance from
Procuring Contracting Officer (PCO) when necessary
Relationship includes strong interaction and coordination
between ACO and PCO
ACO is able to provide daily administration and be the
Government eyes and ears at the contractor facility
ACO develops professional relationships with contractor to
enhance cooperation, ease resolution of issues and gain better
understanding of requirements and their execution
Examples (Cont’d)

Historically, the Government purchasing organization has retained
administration of Federally Funded Research & Development Center
(FFRDC) contracts for the following reasons

FFRDCs are extremely unique (FAR 35)
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FFRDC contracts have many programs whose sponsorship is
varied throughout the Government

DCMA does not have vast experience administering FFRDC
contracts
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Many benefits to retaining administration
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ACO is usually located at FFRDC to provide daily administration
and be the Government eyes and ears
Sensitivity of programs
If the FFRDC is associated with a university, it is subject to
different cost principles (OMB Cir A-21 vs FAR 31)
Magnitude of GFE/GFP/GFI
Examples (Cont’d)
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The Government purchasing organization has retained administration
of installation, base, camp purchases IAW DFARS 242.202
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Some popular examples:
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HAFB Civil Engineering Services
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Base Civil Engineers know requirements and base infrastructure
Services are provided at HAFB
Program Management certifies invoices with verification of receipt of
services from CE (via Wide Area Work Flow)
Able to provide daily administration because of co-location
PASS/ETASS/Advisory & Assistance Services for HAFB
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A&AS support is specific to program, requirements are unique
Services are provided at HAFB
Program Management certifies invoices with verification of receipt of
services from program managers (via Wide Area Work Flow)
Able to provide daily administration because of co-location
PCO Responsibilities

If contract administration is delegated, PCO still retains
responsibility for execution of the contract
 Award modifications if necessary
 Negotiate changes as necessary
 Maintain official contract file
 Closeout activities
 Acceptance as required
 Manage incentive/award fee
 Provide direction to contractor
 Notify contractor of performance issues
DCMA
Defense Contract Management Agency
Post Award Contract Administration
Presented By:
Mrs. Izzie Mooney
DCMA Customer Liaison Representative
Izzie.Mooney@DCMA.MIL
10 March 2010
Overview
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Mission and Vision
Organization
Why do Contract Administration
Things you may want to know
What we can’t do
Making Contact and Website Info
Summary
12
Mission and Vision
Mission:
We provide Contract Administration Services to
the Department of Defense Acquisition
Enterprise and its partners to ensure
delivery of quality products and services to
the warfighter; on time and on cost.
Vision:
DoD’s leading experts in Quality Assurance;
Cost, Schedule, and Supply Chain
Predictability; and Contract
Administration; enabling our partners to
achieve contract objectives.
13
Department of Defense
Secretary
of
Defense
Under Secretary
of
Defense
(Acquisition,
Technology, &
Logistics)
DCMA
Army
Chairman
Joint Chiefs of
Staff
Navy
Air Force
Marine
Corps
Historical Perspective – Service PROs/DCAS to DLA (1990) to DCMA (2000)
Product Aligned Agency
DCMA
6350 Walker Lane
Alexandria, VA 22310-3241
December 2007
DIRECTOR (D)
Chief of Staff
Senior Enlisted Advisor
Aircraft Operations (AO)
Executive Director
Reserve Affairs (DR)
Financial & Business
Operations (FB)
Executive Director
Aeronautical
Systems
Division
Director
Information Technology
(IT)
Executive Director
Naval Sea Systems
Division
Director
Office of Independent
Assessment (DM)
Human Resources (HR)
Executive Director
Ground Systems &
Munitions Division
Director
Space & Missile
Systems Division
Director
General Counsel (GC)
Contracts (AQ)
Executive Director
Operations Mgmt &
Customer Relations (OC)
Executive Director
International Division
Commander
Special
Programs Division
Director
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Types of *CMOs
Geographic Area
Major Facility
*
( Contract Management Offices)
Why do Contract Administration?
• The purpose of contract administration is to
ensure the Government receives the supplies
and services we are paying the contractor to
provide.
• We need to ensure:
• The supplies delivered meet applicable
technical requirements/specifications;
• The services provided meet contractual
requirements;
• The contractor complies with the terms and
conditions of the contract.
DoD Functional Specialists…
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Focus Areas
Contract Receipt
& Review
Contractor/Contract
Surveillance
Contractor Payment
Contract
Closeout
DCMA Support
Things You May
Want to Know…
DCMA Administered by…
Inspection and Acceptance
Indicates Low Risk.
52.246-2 Inspection of Supplies- FP
• As prescribed in 46.302, insert the following clause:
• (c) The Government has the right to inspect and test all
supplies called for by the contract, to the extent
practicable, at all places and times, including the period
of manufacture, and in any event before acceptance. The
Government shall perform inspections and tests in a
manner that will not unduly delay the work. The
Government assumes no contractual obligation to
perform any inspection and test for the benefit of the
Contractor unless specifically set forth elsewhere in this
contract.
(Gets your foot in the door….)
Alternative Release Procedures
Use of Alternative Release Procedures (ARP) on low risk
items
DFARS 246.471 Defines the ARP Criteria
(b) Alternative Procedures--Contract Release for Shipment.
(1) The contract administration office may authorize, in writing,
the contractor to release supplies for shipment when—
(i) The stamping or signing of the shipping papers by a
representative of the contract administration office interferes with
the operation of the Government contract quality assurance
program or takes too much of the Government representative's
time;
(ii) There is sufficient continuity of production to permit
the Government to establish a systematic and continuing
evaluation of the contractor's control of quality; and
(iii) The contractor has a record of satisfactory quality,
including that pertaining to preparation for shipment.
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WAWF
Wide Area Workflow
• The
goal of WAWF is to support the DoD's goal
of moving to a electronic acquisition process.
•What Does WAWF Do?
•Eliminates lost or misplaced documents - all documents are stored in one
place…The Web
•Provides accuracy of documents - current problems such as unmatched
disbursements, duplicate payments, and payment delays are alleviated
•Provides secure & auditable transactions - a user name and password must
be used in order to use the benefits of WAWF
•Enables Timely & Accurate Payments - What normally took 10 days can now
be accomplished in 1 day, if not minutes
•Decreases Interest Penalties - since WAWF decreases processing time, the
system will greatly reduce the number of Prompt Payment Act (PPA)
violations
Role of ACO
• DCMA facilitates payment
• Works with DCAA and DFAS
• DFAS pays, DCAA audits
• DCMA
– Approves Final “Public Vouchers”
• Cost, Time & Material, and Labor Hour contracts
– Approves & Manages Various Financing
Payments
• Progress, Performance Based, and Advanced Payments
– Resolves Problems & Issues with
• Contractors/DFAS
• Has POCs & DCMA Liaisons at DFAS
Contract Closeout (ACO Roles con’t)
• Track/Monitor Mechanization Of Contract
Administration Services (MOCAS) Data
• Determine if Physically Complete
• Resolve Admin/Pay Issues
• Notify PCO of Actions, i.e. additional funds
ACOs can and do modify contracts
• Administrative changes: errors; computations not
requiring extra funds; and code or address
changes
• Novation/Change of name agreements
• Deobligating excess funds after contract
completion
• An ACO contract modification starts with an “A”
versus a PCO’s modification starting with a “P”
What DCMA can’t do…
Closeout Only/Property Only
- No closeout of contracts/property unless we administered
Past-Performance Grading
- We will provide data (e.g. shipping delinquency rate) to the
contracting officer in past performance evaluations, but we can’t “grade”
one contractor over another
We can’t become a “Job Shop”
- DCMA directs the daily activities of our employees
- We must have a measure of independence to act as a legitimate,
unbiased third party
- Generally we don’t “co-locate” our workers with you
We can’t help you with Post, Camp, & Station
- We don’t have the expertise
How to Find Us
Customers Links
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Locating a DCMA CMT Member
Where are you ???
When I need you…
How to Find Us:
https://home.dcma.mil/dcma-pi/customer.htm
1. Click on Customer
2. Click on CMT Locator
How to Find Us- Search by
Contract Number
Type in contract Number
How to Find Us- Search by
Contract Number
CMT Member
How to Find Us- Search by CAGE
Type in CAGE
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How to Find Us- Search by CAGE
CMT Members
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How to Find More About Us
Directory
CMT Finder/CAS Directory
Customer Liaisons
Policy & CMOs
E-Tools Access
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E-Tools/eBusiness
External Web Access Management (EWAM) 2.0 allows
external users to apply for access to DCMA eTools
applications. EWAM 2.0 supports three Organization Types
(Contractors, DoD, and Non-DoD agencies)
APPLICATIONS
REPORTS
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Feedback on Support
• DCMA wants your feedback on our services
• Quick on-line survey
Access to the Survey
SUMMARY
• DCMA is made up of different functional
specialists to address DoD’s contractual and
program needs (i.e.: Small Business; Engineers;
Contracts; Quality; …)
• Offices located World – Wide
• Focus performance management defined by our
customers at no additional cost on ACAT I/II/III
Weapon Systems
• Provides Insight/ Oversight and lessons learned
information from “cradle to grave” acquisition
To learn more about DCMA –
http://www.dcma.mil/
QUESTIONS ?
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Post Award
NCMA Annual Conference
10 Mar 10
Marianna Murphy, CPA
Director of Business Operations
Who We Are
Jacobs Engineering Group  Engineering, scientific, design-build, construction
management, and technical services firm
 55,000 employees; $11B annual revenue; Fortune 500
company traded on NYSE; headquartered in Pasadena, CA
 Jacobs Engineering Group serves diverse industries:
Oil & Gas
Aerospace & Defense
Pharmaceuticals & Biotechnology
Buildings & Infrastructure
Automotive & Industrial
Chemicals & Polymers
Jacobs Technology Inc  The Aerospace and Defense arm of Jacobs Engineering
 Provides advanced technology engineering services to
government and industry
 ~10,000 employees; headquartered in Tullahoma, TN
 20 major operating segments; over 50 office locations
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Post Award Orientation
The post-award orientation is beneficial to both parties;
it is not one-sided.
The Federal Acquisition Regulation (FAR) states:
A post-award orientation aids both Government and contracto
personnel to 1)
Achieve a clear and mutual understanding of all contract
requirements
2) Identify and resolve potential problems
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Post Award Orientation
The FAR does not mandate
the performance of a post-award orientation,
however,
it does lean toward the performance of a post-award
orientation, in one form or another, by listing 12
indications when it might be considered.
By understanding the use of the post-award Orientation:
Contract professionals can better serve their customers
Increase the likelihood of stronger contract performance by
both parties
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Post Award Orientation
Post Award Orientation brings the parties together reinforcing the
importance of:
Requirements and deliverables
Emphasizing decisions that have already been agreed upon
Better understanding by each party of:
 Their roles
 Their responsibilities
 Their relationships in the performance of the contract
In summary:
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Review the contract
Discuss the contract
Agree to the contract
Act on the contract
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Post Award Orientation
Preparing for Post Award Orientation:
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Read, Read, Read Your Contract
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Develop a Check List Review:
1.
2.
3.
4.
5.
6.
7.
8.
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Contract Number
Contract Name Address
CAGE CODE
Issued, Administered and Payment By Blocks
Period of Performance – Option Periods
Point of Contact Information – PCO, PM
Payment Instructions
Invoicing Instructions
Review Contract Type:
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Fixed Price
Fixed Price Labor Hour
Time and Material
Cost Reimbursable
Any combination of the above
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Post Award Orientation
Preparing for Post Award Orientation:
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Develop in-scope and out-of-scope listings:
 List of items that the government and contractor consider
within and outside the scope of the contract
 Useful for establishing and managing expectations
 Useful for containing contract cost growth
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Verify and validate the requirements stated in the contract to ensure that
the project, when completed according to the requirement statement, will
meet the needs of both parties.
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Post Award Orientation
Preparing for Post Award Orientation:
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Summarize Contract Requirements
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Deliverables: Description, Contract Reference, Delivery Date, Work
Breakdown Structure Element
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Review and Note areas of clarity on any Special Contract Requirements
identified in the contract
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Examples: OCI, Financial Conflict of Interest, Overtime Clause, Travel,
Insurance Clause Implementations
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Review General Provisions (Limitation of Cost) and any Special Provisions
Identified
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Small Business Subcontracting
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Government Property
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Labor – (Davis-Bacon Act, Work Hours Act, Equal Opportunity Program)
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Security- DD 254; Special Security Handling, Disposition of Classified
Material
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Post Award Orientation
Preparing for Post Award Orientation:
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Contract Clauses
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Review in detail the applicable FAR and DFAR clauses incorporated
into the contract
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Cognizant if clauses need to be incorporated that had not been as
part
of initial award
Examples
FAR 52.228-3 Workers Compensation Insurance Basic Defense Act (DBA)
FAR 52.228-4 Workers Compensation and War Hazard Insurance
DFAR 252.228-7000 Reimbursement of War Hazard Losses
DFAR 252.228-7003 Capture and Detention
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Post Award Orientation
Post Award Meeting
Key things to consider:
 Identify all parties by a sign-in sheet
 Keeping good notes
 Identify specific concerns or controversy and any
resolution(s)
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Post Award Orientation
Remember
The purpose of a post-award orientation
is not
to renegotiate a contract
but to
bring both parties together
and review key contract concerns that are important
to a successful contract performance
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Thank You
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