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OCT 03 Private Sector Contracting ACEC Briefing

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					                   Mississippi Valley
U.S. Army Corps
                       Division
of Engineers




              MVD’s PRIVATE SECTOR
             CONTRACTING PROGRAM




                                  Terry S. Smith
                                 October 21, 2003
                   Mississippi Valley
U.S. Army Corps
                       Division
of Engineers



                  PROCESS

   •HQUSACE provides Integrated
    Command Guidance and monitors
   •MVD establishes Division and District
    target goals and monitors

   •Districts develop plan and execute
                       Mississippi Valley
U.S. Army Corps
                           Division
of Engineers

                      PROGRAM
 •POLICY - Maintain a balanced program of in-
  house and contract work on all phases of the
  Civil Works program.
 •Planning, Engineering, and Design Phases -
  In-house work sufficient to maintain
  technical expertise to
      • Define Work
      • Manage Work
      • Review the Work of Architect-Engineer
        Contractors
                        Mississippi Valley
U.S. Army Corps
                            Division
of Engineers


                    PSC GOALS

    •Command Guidance for MSC’s Floor = 30%
    •MVD
         FY 01 – 35%
         FY 02 – 40%
         FY 03 – 40%
         FY 04 – 40%
                                                        Mississippi Valley
U.S. Army Corps
                                                            Division
of Engineers

                                                        PRIVATE SECTOR CONTRACTING
                                                               Fiscal Year 2003

                       60
                                                                                                                   ACTUAL
                                                                                                                   FORECAST


                       50                               48.8
                                                                      MVD GOAL 40%
                                                               44.8

                                                 39.9                                        40.0
                       40          38.2
                                                                      HQS FLOOR 30%                  36.7                  37.0
                                                                                      35.0                          34.8
         PERCENT (%)




                                                                                                            33.0
                                                                              30.3
                       30   28.7
                                          27.0



                                                                       20.5
                       20




                       10




                       0
                             St. Paul     Rock Island   St. Louis      Memphis        Vicksburg     New Orleans       MVD
                                      Mississippi Valley
U.S. Army Corps
                                          Division
of Engineers


                                        MVD's PSC HISTORY


                 45.0
                                                                 41.6
                                                                        39.0
                 40.0          37.9
                                                    36.3
                                      35.5
                                                                               34.8
                 35.0

                 30.0
   PERCENT (%)




                        25.9

                 25.0

                 20.0

                 15.0

                 10.0

                  5.0

                  0.0
                        97     98      99            00          01     02     03

                                              FISCAL YEAR (FY)
                                                 Mississippi Valley
U.S. Army Corps
                                                     Division
of Engineers
                                                    AE CONTRACTING

            80,000,000

                                   FY   99
                                   FY   00
            70,000,000             FY   01
                                   FY   02
                                   FY   03

            60,000,000



            50,000,000
  Funding




            40,000,000



            30,000,000



            20,000,000



            10,000,000



                    0
                         ST PAUL   ROCK ISLAND   ST LOUIS    MEMPHIS   VICKSBURG   NEW ORLEANS   MVD
                                    Mississippi Valley
U.S. Army Corps
                                        Division
of Engineers
                                           Private Sector Contracting
                                                 1999 Thru 2003
                  $225,000,000


                  $200,000,000


                  $175,000,000


                  $150,000,000


                  $125,000,000
        Dollars




                  $100,000,000


                   $75,000,000


                   $50,000,000
                                                                                Total

                   $25,000,000                                                  In House

                                                                                A/E
                           $0
                             1999   2000                     2001        2002           2003
                                                           Fiscal Year
                         Mississippi Valley
U.S. Army Corps
                             Division
of Engineers




                  USACE Policy Update
                   •SF 330
                   •ER 715-1-21
                     Mississippi Valley
U.S. Army Corps
                         Division
of Engineers


                       SF 330
• Published in Federal Register, September 25, 2003
• Merges SFs 254/255 into one form.
• Deletes duplicate information.
• Expands essential information about a firm’s
  qualifications, experience, disciplines, and
  technology.
• Facilitate electronic usage.
• Estimated implementation (March or April 2004)
                         Mississippi Valley
U.S. Army Corps
                             Division
of Engineers


                      ER 715-1-21
            Electronic Contract Solicitations

       •ECS is an electronic process for advertising and
        distributing contract solicitation documents.

       •ECS is a component of electronic commerce
        developed to lower purchasing costs, reduce cycle
        time, and improve customer service by leveraging
        the the Internet and other information technologies.
                              Mississippi Valley
U.S. Army Corps
                                  Division
of Engineers
                               Vicksburg District Home Page


                         Vicksburg Consolidated Contracting Office
                                                                                 !!!!ALERT!!!!
                                                                              NEW MANDATORY
                  Advertised Solicitations
                                                                             PROCEDURES New
                  Other Opportunities                                         procedures being
                                                                           implemented for U.S.
                  Presolicitations                                        Army Corps of Engineer
                  Results of Bid Openings
                                                                          solicitations will require
                                                                         that all potential offerors,
                  Contract Award Notices                                  plan rooms and printing
                                                                           companies register in
                  Proposed Work
                                                                            CCR and FedTeDS in
                                                                               order to view or
                  Central Contractor Registration (CCR)                    download solicitations
                                                                            from the web site or
                  Emergency Response Contracts                                  obtain CDs of
                                                                           solicitations. A link to
                                                                            CCR and FedTeDS is
                  Suspension of the Price Adj. for Small Disadvantaged
                  Business                                                        provided at
                                                                          http://tsn.wes.army.mil.
                                                                           These new procedures
                                                                         should be in place by the
                                                                         second quarter of FY04."
                        Mississippi Valley
U.S. Army Corps
                            Division
of Engineers



    A/E Responsibility Management Program
                    AERMP

     AERMP is a formal process for holding A/E firms
     accountable for their work and recovering damages to the
     Government caused by A/E firms.

                          EP 715-1-7
                         31 July 2002
                        Mississippi Valley
U.S. Army Corps
                            Division
of Engineers




                  Goals of the AERMP

       •Maintain and Improve the Quality of A/E Services
        and Products.
       •Hold A/E Firms responsible for their work and to
        Recover damages
                         Mississippi Valley
U.S. Army Corps
                             Division
of Engineers




                  A/E Liability for Damages

   • Did the firm make an Error or Omission?

   • Did the Error or Omission result from the firm’s
     negligence, or from a breach of contractual duty?
   • Has the Government suffered damages as a result of
     the error of omission?
                                      Mississippi Valley
U.S. Army Corps
                                          Division
of Engineers


                         A/E Liability Process

       • Notification and Corrective Design
            •     A/E firm notified
            •     Request Corrective Design
            •     Financial Responsible

       • Corrective Design by the Government
       • Implementation of Corrective design
            •     Limits on Construction Activities

       • Documentation of Deficiency.
                                      Mississippi Valley
U.S. Army Corps
                                          Division
of Engineers


                         A/E Liability Process

  • Determination of Damages
        •    Damages are additional costs to the Government that has occurred
        •    Or, Will incur in the future

  • Investigation of Liability
        •    Define the Errors or Omissions
        •    Findings-of-Fact

  • Letter of Intent, Negotiation by AERC, Demand Letter
  • Negotiation and “Contracting Officer’s Decision” (COD)
  • Settlement
                         Mississippi Valley
U.S. Army Corps
                             Division
of Engineers


                        REPORTING
   Customers and Partners will be regularly apprised of the
   status of A/E liability actions on their projects.


       •Districts will submit a quarterly report to
        their MSC on the status of all A/E liability
        cases.
       •MSC will submit an annual report to
        HQUSACE
                   Mississippi Valley
U.S. Army Corps
                       Division
of Engineers



                  A-E LIABILITY


                    •FY 03 – 1
                    •FY 02 – 0
                    •FY 01 – 0
                    •FY 00 – 1
                     Mississippi Valley
U.S. Army Corps
                         Division
of Engineers




            Questions ??

				
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