Critical Factors in Contract Administration

Document Sample
Critical Factors in Contract Administration Powered By Docstoc
					F.M. “Fil” Tellez, Sr. Contracts Mgr.
NISH National Operations - AbilityOne Program
Support and Special Projects


             Critical Factors in Contract Administration   1
Greetings
from the
Great
Southwest
Awesome
Inspiring
Breath-taking
Challenging
Overwhelming
Unforgiving
Daunting
Treacherous

            Critical Factors in Contract Administration   2
Top Ten Tips
1. Its Always About the Relationship!
2. READ Your Solicitation/Contract!
3. Never Assume!
4. Communicate with the Right Authority!
5. Document, Document, Document!




              Critical Factors in Contract Administration   3
Top Ten Tips
 6. Bargain in Good Faith, Be Reasonable and Be Aware!
 7. Require FAIR, EQUITABLE and IMPARTIAL
     Treatment!
 8. Focus on Issues not Emotions!
 9. Know When to Talk and When to Listen!
10. Be Responsive and Responsible!




              Critical Factors in Contract Administration   4
1 - It’s the Relationship
 Committee for Purchase
 Federal Government
 NISH
 Non Profit Agency

 “Cooperative. collaborative and mutually beneficial
 relationships must exist to fulfill our respective
 missions to deliver quality services and products and
 create employment for people with severe disabilities”

              Critical Factors in Contract Administration   5
Relationship
 Committee for Purchase
    Administer the Program
    Establish the contract price
    Authorize NPA participation




               Critical Factors in Contract Administration   6
Relationship
 Federal Government
    Contracting Officer
    COR (PM?)
    COTR
    QAE
    Other

  “Federal Agencies are our customers; they hold the gold
    and empower our program. These federal agency
    “personalities” also administer federal contracts and
    have an impact on whether we have a successful
    outcome from the contract relationship.”
               Critical Factors in Contract Administration   7
Relationship
 Federal Acquisition Regulation, Part 1
1.102-4 Role of the Acquisition Team.
(d) The System will foster cooperative relationships
between the Government and its contractors consistent
with its overriding responsibility to the taxpayers.




              Critical Factors in Contract Administration   8
Relationship
 Federal Acquisition Regulation, Part 1
1.602-2 Responsibilities.
(b) Ensure that contractors receive impartial, fair, and
equitable treatment; and
(c) Request and consider the advice of specialists in
audit, law, engineering, information security,
transportation, and other fields, as appropriate.
 And… seek out NISH and the Committee for Purchase
  as specialists in AbilityOne Program rules, regulations
  and policy!
               Critical Factors in Contract Administration   9
Relationship
 NISH
 NPA

  “NISH and it’s associate NPAs are teammates and partners
    working towards the common goal of employment for
    people with severe disabilities while supporting our
    customer’s mission to provide support services and/or
    products in fulfilling their respective mission via the
    contract relationships formed under authority of the
    AbilityOne Program.”

              Critical Factors in Contract Administration     10
Relationship
 NISH
   Program Administrative
   Project Management
   “Liaison”


  “NISH is a teammate and partner and serves the best
    interest of the Program accomplishment in support of
    the NPA and federal government agency need for
    AbilityOne Program support.”


              Critical Factors in Contract Administration   11
Relationship
 NISH
   Assist Committee
       Qualify NPAs to Participate in AbilityOne Program
       Marketing and Sales – Find/Match
       Education to NPAs and Government Agencies
       Represent NPAs before Committee
       Provide Technical Support and Assistance to all parties
        participating




                  Critical Factors in Contract Administration     12
Relationship
 NISH
   Assist NPAs
       Qualify for AbilityOne Program
       Find Viable AbilityOne Projects
       Develop the FMP Recommendation
       Comply with Regulatory Requirements
       Solve Problems
       Educate Customers and NPA Staff




                Critical Factors in Contract Administration   13
Relationship
 NISH
   Assist Federal Agencies
       Determine viable contract opportunities for placement with
        AbilityOne Program
       Find qualified NPAs to produce on their contracts
       Assist in development of the FMP Recommendation
       Ensure contract compliance and quality performance
        outcomes
       Facilitate problem solving
       Educate federal agency personnel in AbilityOne Program
        rules, regulations and policy

                  Critical Factors in Contract Administration        14
It’s the Relationship
 Private Non Profit Agency (NPA)
    Business and Rehabilitation Mission
    “No Money, No Mission!”




               Critical Factors in Contract Administration   15
Relationship
 Non Profit Agency
   Business
       Technical
       Price
       Administrative
       Regulatory Compliance
       Customer Satisfaction




                Critical Factors in Contract Administration   16
Relationship
 Non Profit Agency
   Rehabilitation, Technical and Administrative
       Employee Placement
       Training/Coaching
       Productivity Measurement
       Compliance and Reporting

  “NPAs are where the rubber meets the road – you make
    AbilityOne happen and ensure valued federal agency
    customers receive quality products and services within
    budget requirements and to contract standards, terms,
    conditions and clauses.”
                Critical Factors in Contract Administration   17
Relationship
 Challenging Business, Rehabilitation, Technical,
 Administrative and Compliance Factors
       Complex, critical balance
       Coordination and Relationship between staff functions
       Rehab issues transparent to “customer”
       Fulfill contract requirements with requirements stated in
        contract




                  Critical Factors in Contract Administration       18
“It is the Relationship”
  “The Acquisition Team is where the
   rubber meets the road – you all,
   working together make AbilityOne
   happen!”
   Front Line Supervision
   Management
   Tech and Contract Support
   Federal Personnel
          Critical Factors in Contract Administration   19
“It is the Relationship”
   Know your role, and that of others
   Read your contract
   Understand the requirements
   Seek guidance
   Be professional and responsible
   Smile and be supportive
   Never say NO but determine HOW!

           Critical Factors in Contract Administration   20
Acquisition Team Members
FAR Based
Acquisition
                       Fed Agency
Team


               NISH
                                    AO1
              Region
                                          Other
                                          Stakeholders?

                          NPA




                                                    Page 21
Process Orientation
 Federal Government
 NISH
 Non Profit Agency
 Committee for
 Purchase




                  Critical Factors in Contract Administration   22
2 - READ Your Solicitation/Contract
 Principles of Contract Formation
 Changes, REAs and Claims
 Success or Failure




               Critical Factors in Contract Administration   23
 Imperative and Absolute!
“Failure to read your solicitation thoroughly may lead to
your acceptance of responsibilities that you didn’t
consider in your price proposal. Once your contract is
awarded you will be held responsible for any obligations
and responsibilities contained in the contract … at the
fair market price achieved by negotiation - Your failure
to have read the full solicitation, its terms, conditions
and specification is no viable defense from being held to
those accountabilities!”
               Critical Factors in Contract Administration   24
READ Your Solicitation/Contract
 Principles of Contract Formation
   • Offer
   • Acceptance
   • Consideration


   The Solicitation
   Your Proposal
   The Bargain




               Critical Factors in Contract Administration   25
READ Your Solicitation/Contract
 Guidelines
    Federal Acquisition Regulation
     •   Uniform Contract Format
     •   FAR Part 15
     •   Use as an index


 15.204-1 Uniform contract format.
    (a) Contracting officers shall prepare solicitations and
     resulting contracts using the uniform contract format
     outlined in Table 15-1 of this subsection.

                  Critical Factors in Contract Administration   26
 FAR 15.204-1 Uniform Contract Format, Table 15-1
“This format should be the one consistently utilized
for negotiated fixed price type contracts envisioned
under the AbilityOne Program.”
 PR3;
   J. Price Negotiations - Price negotiations shall be
    conducted in a manner consistent with FAR 15.405.
   E. Fixed Price Contracts - AbilityOne contracts are
    generally fixed price contracts subject to the
    Committee's authority to change prices as market
    conditions warrant.
               Critical Factors in Contract Administration   27
Caveat!
 There are other formats that you will see utilized such as
  SF 1449 formats as ‘commercial item purchase’ formats.
 A review of FAR Part 2, definitions reveals that in most
  cases your service or product does not meet the
  qualifications of a commercial item.
 BUT… if the format is utilized insist that only the special
  conditions (clauses) listed in Subpart 12.4—Unique
  Requirements Regarding Terms and Conditions for
  Commercial Items are contained in your instrument.



                Critical Factors in Contract Administration     28
            Uniform Contract Format; FAR Part 15
Part 1         The Schedule

Section A      Solicitation/contract form

Section B      Supplies or services and prices/costs

Section C      Description/specifications/statement of work

Section D      Packaging and marking

Section E      Inspection and acceptance

Section F      Deliveries or performance

Section G      Contract administration data

Section H      Special contract requirements
            Uniform Contract Format; FAR Part 15
Part II—Contract Clauses
Section I                             Contract clauses
Part III—List of Documents, Exhibits, and Other Attachments


Section J                             List of attachments
Part IV—Representations and Instructions (solicitation)
Section K                             Representations, certifications, and
                                      other statements of offerors or
                                      respondents


Section L                             Instructions, conditions, and notices to
                                      offerors or respondents


Section M                             Evaluation factors for award
READ Your Solicitation/Contract
 What you Agree too is what you’ll be held Accountable
 for!
   Is the solicitation complete ?
   Are the specifications clear, accurate and up to date ?
   Are the terms reasonable and enforceable ?
   Is the requirement doable within budget constraints ?
   Is “it” clear?
   Do you understand it?
   Does it make sense?
   Can you do it?
                 Critical Factors in Contract Administration   31
READ Your Solicitation/Contract
 Changes, REAs and Claims
   • Original Baseline – Prove it!
        Technical
        Price
        Other

    If you don’t know where you started, you won’t know
     where you are or where you’ll end up!




                     Critical Factors in Contract Administration   32
READ Your Solicitation/Contract
 Changes, REAs and Claims

  • Change or Issue in controversy
  • Submit REA, seek local resolution
  • If denied, convert to formal Claim
  • Seek local resolution and settlement
  • Appeal to Service Board of Contract Appeal if denied by
    CO
  • ????




               Critical Factors in Contract Administration    33
3 - Never Assume
 Clarify Ambiguity
 Get in Writing from Contracting Officer
 Proceed Accordingly




              Critical Factors in Contract Administration   34
Never Assume
 Duty to Seek Clarification

“The duty of an offeror to request the guidance of the
  contracting officer when a patent ambiguity, obvious
  omission or drastic conflict is found in the contract
  language.




               Critical Factors in Contract Administration   35
Never Assume
 Duty to Seek Clarification

“The offeror’s or contractor’s failure to seek clarification
  in such circumstances is a valid Government defense
  to a claim for equitable adjustment because of
  ambiguous specifications.”




                Critical Factors in Contract Administration    36
4 - Communicate
 Often
 Professionally and with Respect
 With the Proper Authority
 Confirm Response
 Get it in writing




               Critical Factors in Contract Administration   37
Communicate
 With the Proper Authority
  • Contracting Officer
  • Contracting Officer’s Representative
  • Contracting Officer’s Technical Representative
  • Quality Representative/Inspector




               Critical Factors in Contract Administration   38
5 - Document
 In God We Trust
 All Others Bring Data !!!!

   Telecom notes
   Emails
   Letters
   Memos




               Critical Factors in Contract Administration   39
6 - Bargain in Good Faith and
Fair Dealing
 Duty of Good Faith and Fair Dealing


 “An implied obligation of the all contracting parties to
 treat each other fairly during the performance and
 enforcement of a contract… honesty in the conduct or
 transaction concerned.”




              Critical Factors in Contract Administration   40
Good Faith and Fair Dealing
 Governments Duty to Cooperate


   “An implied duty of a contracting party to
    cooperate with the other party to facilitate
    the performance of the contract.”




             Critical Factors in Contract Administration   41
7 – Require Fair, Equitable and Impartial
Treatment
 FAR Part 1.602-2, Responsibility of Contracting Officer
    Fair
    Equitable
    Impartial



   IF you doubt the behavior, question it!




               Critical Factors in Contract Administration   42
8 - Issues, Not Emotions!
 We fail to succeed because;


 Don’t read our contracts
 Lack knowledge of our rights
 Don’t really know what we want
 We get emotional
 Argue irrelevant issues



               Critical Factors in Contract Administration   43
Issues, Not Emotions!
 We fail to succeed because;


 We don’t support our case with data, we argue
  emotions … because!
    We don’t know our contract, its terms and conditions
    Rely on poor counsel
 And even then …
    Don’t press for timely resolution
    Fail to follow up


                Critical Factors in Contract Administration   44
9 - Talking and Listening
 Know when to talk and when to listen
   o Silence is golden!
   o Stop talking once you’ve reached agreement or made
     your point or achieved your goal!
   o Be good listener – knowledge is power and you hear
     better when you’re not talking!




               Critical Factors in Contract Administration   45
10 – Be Responsive and Responsible
 Know your deadlines and due dates
then achieve them!

 For Proposal Submittal

   Pre-proposal conference
   Pricing inputs
        Labor

        Supplies/Materials/Equipment

        Other




                Critical Factors in Contract Administration   46
Responsive and Responsible
 For Inspection Findings, Changes and Modifications

   Reclama/Rebuttal/Alternative Finding
   REAs
   Claims
   Appeals




              Critical Factors in Contract Administration   47
Top Ten Tips
 Benchmarked on industry, federal and AbilityOne
  Program experience
 Learned over time from success and failure in product,
  services delivery, construction and some specialized
  industries
 Simple “discovery” from which you can build your own
  do’s and don’ts
 And of them all, Relationship Management is KEY!



              Critical Factors in Contract Administration   48
Maintaining Your Contract
 Begin with the end in mind!
    Know what your supposed to accomplish
    Know at what price and budget you’ve agreed to perform
    Track your performance to budget
       To maintain boundaries for your supervision
       To know what your expending and why
       To identify where you may be spending more or less labor
       To discover if you are making or loosing money
       To correct inappropriate expenditures
       To complete your contract on time within budget and without
        unauthorized changes
We fail to succeed because;
 Don’t read our contracts
   We are unfamiliar with Federal Procurement rules,
    regulations, processes and procedures
   Lack knowledge of our rights and government
    responsibilities
   We resort to emotions not facts
   We make excuses
   Argue irrelevant issues
We fail to succeed because;
 Don’t track performance and price
   Can’t respond effectively to negative performance
    findings
   Don’t really know how we’re doing or whether we’re
    right
   Don’t know if we’re making or loosing money
   Get frustrated
   Blame the government

                                                 2006 Edition Rev 2010
Questions?
 Do I have the people ready to do the work?
 Are my people trained to do the work?
 Do I have sufficient tools to do the work?
 Is my supervision ready to manage the work?
 Am I well trained and knowledgeable regarding
 federal contract rules and regulations?

 Your answer should be yes to all the above …
 Or you have some homework to accomplish!
 Have I read my contract, thoroughly?
   All parts and section
   The PWS/Statement of Work/Specification
 Do I know what it all means?
 If any questions, have I asked for clarifications?
    From your management
    From the government

    Your answer should be yes to all the above …
    Or you have some homework to accomplish!
Resources Available
 NISH
 Federal Acquisition Regulations
    Full text of clauses in your contracts
    Provisions, processes, practices and guidance
 Code of Federal Regulations – AbilityOne Program
 Committee Procedures and Policy
    Pricing Memorandum Number 3, Pricing
    Operations Memorandum Number 19, Disputes
    Operations Memorandum Number 21, Subcontracts
Other Important Resources
 Federal Acquisition Regulations
    Acquisition Central.gov
    Portal entry to all federal agency rules and regs
        DFARS for DoD Agencies
        All Civilian Agency FAR Supplements
 AO1 Program Information, Committee Memoranda,
  Process and Procedures
    AbilityOne.gov
 NISH Process and Procedures and Information
   NISH.org
Basic Terminology
             “The Government
         Contracts Reference Book-
   A Comprehensive Guide to the Language of
                Procurement”
   Second Edition
   Authors: Ralph C. Nash,Jr., Steven L. Schooner, Karen
     O’Brien
   Published by: GWU (703) 578-8822
Your Contract as a Guide
 AbilityOne contracts are sole source negotiated
  contracts
 Generally they are Firm Fixed Price
 They are priced in accordance with Pricing
  Memorandum Number 3 (PR3)
 PR3 says we use FAR Part 15 as the basis for negotiating
  our price
 Therefore, the federal agency may have issued a
  uniform contract format (UCF) instrument
            Uniform Contract Format; FAR Part 15
Part 1         The Schedule

Section A      Solicitation/contract form

Section B      Supplies or services and prices/costs

Section C      Description/specifications/statement of work

Section D      Packaging and marking

Section E      Inspection and acceptance

Section F      Deliveries or performance

Section G      Contract administration data

Section H      Special contract requirements
            Uniform Contract Format; FAR Part 15
Part II—Contract Clauses
Section I                             Contract clauses
Part III—List of Documents, Exhibits, and Other Attachments


Section J                             List of attachments
Part IV—Representations and Instructions (solicitation)
Section K                             Representations, certifications, and
                                      other statements of offerors or
                                      respondents


Section L                             Instructions, conditions, and notices to
                                      offerors or respondents


Section M                             Evaluation factors for award
Contract Award
 Award is generally a Base Year plus Four renewable
  Follow on Year (FOY) Periods
 Contract is renewable every year
 Each FOY carries same price, etc. as Base Year unless
  Government makes changes
 Every Five Years we re-establish a New Base Year

 AbilityOne contracts are mandatory source contracts
 which means purchase of product or service can only
 be made from AbilityOne qualified Non Profit Agency!
Now What?
 Contract Award
    Same requirements?
    No changes?
    Everything you agreed to?
 Post Award Actions
    Deliverables
       Quality Control Plan
       Notices to government of Supervisory personnel
       Other
Contract Management
Checklist – Post Award
Reports or plans due to government
Approval processes
Key personnel provisions and reporting
Subcontract administration (if any)
Government quality assurance, inspection and
 acceptance provisions and authorized personnel
Contractor quality control requirements
Invoicing and payment provisions
Insurance and liability requirements
Wage rates and required postings
Specific Quality Issues and Payment Invoicing
 Contract Administration
   Inspection and Acceptance provisions and clauses
       Your Quality Control Plan
       Their Quality Assurance Surveillance Plan
       Quality Evaluators
       AQL
         What you and government determined as acceptable
          performance
   Payment terms
       Instructions for invoice submittal
       Copies of government acceptance of work (DD 250, other)
       Invoice submittal address
       POC for non-payment issues
Who will you be dealing with?
Government contract personnel
   Contracting Officer
   Contract Administrator
   Contracting Officer’s Representative (COR)
   Contracting Officer’s Technical Representative (COTR)
   Quality Assurance Evaluators (QAE, Inspectors, etc.)
Your NPA contract personnel
Communication Matrix
   List of who talks to who at what levels within
    government and your agency - Good idea!
Labor Law Provisions
Wage Rates and Fringe Benefits
  Service Contract Act
  Davis Bacon Act
  Other labor law provisions


   Make Certain you are following the wage and fringe
    benefit provision applicable to you contract
   Do you have special certificate that enables you to pay
    commensurate wages based on productivity?
   Have you posted the necessary forms where employees
    can read them?
What Else?
 For anything you’re not certain of …
    Seek support and understanding
       From written resource materials
       From your contract
       From NISH
       From Training available through NISH
REMEMBER -Top Ten Tips
1. Its Always About the Relationship!
2. READ Your Solicitation/Contract!
3. Never Assume!
4. Communicate with the Right Authority!
5. Document, Document, Document!




              Critical Factors in Contract Administration   69
REMEMBER - Top Ten Tips
 6. Bargain in Good Faith, Be Reasonable and Be
     Aware!
 7. Require FAIR, EQUITABLE and IMPARTIAL
     Treatment!
 8. Focus on Issues not Emotions!
 9. Know When to Talk and When to Listen!
10. Be Responsive and Responsible!




             Critical Factors in Contract Administration   70
Q&A
 Your Issues or Concerns
    Purchase Orders ?
    G&A and Allowable Costs ?




              Critical Factors in Contract Administration   71
Adios and Good Luck!

       F.M. “Fil” Tellez
         703.626.3108
       ftellez@nish.org


       Critical Factors in Contract Administration   72

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:6/13/2012
language:
pages:72