Contract Administration CSP by uzh51292

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									Contract Administration
         CSP




   USDA is an equal opportunity provider and employer.
 If you can smile
when things go
wrong, you
probably have
thought of
someone else you
can blame it on.


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Conservation Program Contracting

 CPM   part 512
  Policy for installing conservation treatment
  under Conservation Program Contracts
  administered through ProTracts
  Subpart F – Contract Administration




                                                  3
Conservation Security Program
 CPM   part 518
  Program specific policy
  Subpart K – Contract Administration




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      Contract Administration
 Contract   Modifications
   Improvement Modifications
   Maintenance Modifications
Land Transfers
   With Successor
   Without Successor
Canceling vs. Terminating
Cost Recovery
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      Contract Modifications
 518.100   A (1)
   Due to the unique nature of CSP…
   CPM, Part 518, Subpart K will contain the primary
   guidance for CSP contract modifications.




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         Modification Process
1.   Requested by participant
2.   Developed in ProTracts
3.   Signed by participant
4.   Approved by NRCS




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   CSP Modification Approval
 NB   300-7-19
   CSP modifications which change any CSP
   contract obligation, either positive or negative,
   regardless of the amount, must be approved by
   the State Conservationist or Assistant State
   Conservationist as delegated.
     Enforced with ProTracts Permissions
     Necessary for accountability


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    Maintenance Modifications
 518.102   – Generally limited to changes
 that do not involve Contract Items
   Contract Transfers
   Changes in Participant Information
      Payment shares
      Banking information
   Cancel and Terminate
 Tobe completed prior to the next annual
 payment cycle to ensure proper payment      9
       Decreases in Obligations
 NB 300-7-19
 Potential contract violations
   Must be elevated to StC for a determination on
     contract termination and/or cost recovery




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       Deleting Contract Items
 518.100   D (7)
   The participant agrees to maintain at least the level
    of stewardship identified in the benchmark
    inventory for the entire contract period. A
    participant is expected to carry out all scheduled
    conservation treatment. There must be valid
    reasons not adverse to the Government's interest
    and conservation objectives for deleting any
    contract item. Each modification must include
    sound justification for the deletion;

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                       Statute
 Public   Law 107-171
   2002 Farm Bill
      Defines the CSP purpose as the “conservation and
      improvement of the quality of soil, water, air, energy,
      plant and animal life,…”




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                    Regulation
7   CFR Part 1469
  Amendment to Interim Final Rule
       1469.21 (a) “Among other provisions, the participant
       agrees to maintain at least the level of stewardship
       identified in the benchmark inventory for the portion of
       land being enrolled for the entire contract period, as
       appropriate, and implement and maintain any new
       practices or activities required in the contract.”



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                    Regulation
7   CFR Part 1469
  Amendment to Interim Final Rule
       1469.21 (e) (3) (i) Participant required to—“Implement
       and maintain the practices as identified and scheduled in
       the conservation stewardship plan, …”




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    Caution on Deleting Items
 Requirements     of Statute, Regulation and
 Policy
  Maintain at least benchmark level of treatment
  Implement and maintain as scheduled

 Therefore,requests to allow reduced level
 of treatment is not allowed

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       Request to waive policy
 518.1 C Authority to Waive
 Administrative Procedures
  (1) The NRCS Director, Financial Assistance
    Programs Division, may waive any administrative
    procedural provision in this manual:
   (i) Unless prohibited by statute or regulation; and
   (ii) If the waiver is justified and will not defeat the
    purposes of the CSP, or any other conservation
    program administered by USDA.

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         Waiver Not Justified
 Requests    to waive policy and allow
 reduced level of treatment is:
   counter to the purpose of the statue and
   prohibited by regulation




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Contract Improvement Modifications
 518.101
    Tier Transitions
    Adding Land
    Adding Enhancements
 Only during announced request period
 NRCS will make no assurance to
  participants of the potential to add contract
  improvements by modification

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        Increases in Obligations
 NB   300-7-19
   Increases in Obligations are Contract
   Improvement Modifications
     Only allowed during an announced contract
         improvement modification period
        Cannot accommodate uncontrolled obligations




                                                       19
     Contract Administration
 ContractModifications
 Land Transfers
 Canceling vs. Terminating
 Cost Recovery




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              Loss of Control
 518.103
   Land will be considered “transferred” if the
    participant loses control of the acreages for any
    reason.




                                                        21
Transfer of Land Under Contract
 518.103
   With Successor in Interest
     Contract must remain intact to be transferred
     NRCS must be notified within 60 days of transfer
     Transferee must be eligible




                                                         22
Transfer of Land Under Contract
 518.103
   With Successor in Interest without existing
   contract
     Contract must remain intact
     Transferee must be eligible
     Add new participant to existing contract
     Remove payment shares of original participant
     Print NRCS-CPA-152

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  Transfer of Land Under Contract
 518.103
   With Successor in Interest with existing contract
      All of the land must be transferred
      Transferred land must meet transferee’s tier
      Terminate the transferred contract
      Modify the transferee's (existing) contract to add the transferred
      land and original required conservation treatments




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        Conditions of Transfer
 All of the conditions of the transferee’s
  contract will apply
    Tier
    Contract length
    Variable payment rate
    Payment limitations


                                              25
Transfer of Land Under Contract
 518.103
   Without Successor in Interest
     Contract Violation and subject to forfeiture of
      payments, refund of payments received and liquidated
      damages




                                                             26
     Contract Administration
 ContractModifications
 Land Transfers
 Canceling vs. Terminating
 Cost Recovery




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     Termination vs. Cancellation

 512.57
 Termination      is NRCS action
   Adverse to participant
 Cancellation is at participant’s request
   Hardship
      Natural disaster
      Major illness
      Death
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             Termination
 For Cause
 By NRCS
 Includes Consideration of Cost Recovery




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         Cause to Terminate
 Participant or Land becomes ineligible
 Transfer of Land or Loss of Control
 Failure to correct violations
 Failed to meet terms and conditions
 Threat to health or safety of NRCS
 Fraud, scheme or device



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  Ineligible Participant or Land
 HEL/WC    violations
 Enrolled land into other program




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Failure to correct potential violations

 Practices  and activities must meet or
  exceed applicable standards or
  instructions
 Must maintain applied practices and
  activities




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     Failed to install or maintain
         practices/activities
 Items  may not be deleted to avoid non-
 compliance with contract requirements
   Needed to meet contract objectives
   May have effected ranking/selection
   Established Benchmark level of treatment (CSP)




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 Threat to health or safety of NRCS

 Mustallow access to the land under
 contract for monitoring progress




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    Misrepresentation of Facts
 Scheme   and Device
 Fraud
 Falsification   of certification for LR/B
  participation
 Falsification of tenant/landlord interest
 Falsification of Ag Operation Delineation



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   Termination Letter (512.91 L)

 Reason
   Regulatory basis
   Failure to correct within reasonable time
 Consequences
   Adverse actions to be taken
       Termination
       Cost Recovery
       Liquidated Damages
       Forfeit of future payments
 Appeal    rights                              36
     What must NRCS do prior to
           termination?
 Determine   there is a problem
    Annual Contract Review
 Let participant know there is a problem
    Formal Status Review (NRCS-CPA-13)
 Give them a chance to correct the problem
    Agreement Covering Non-compliance with
   Provisions of Contract (NRCS-CPA-153)

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    How do you determine there is a
         potential violation?
   Quality Assurance
     GM 450 part 407
          Documentation, Certification and Spot Checking
       GM 340 part 404
          Oversight & Evaluation
       NPPH
          Step 9 = Evaluate the Plan
       State Quality Assurance Plan
     National Food Security Act Manual
     Conservation Program Manual
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            Annual Reviews
                   vs.
            Contract Reviews
 512.55
   Evaluation of Contract Implementation




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               Annual Reviews

 Does   not require participant
   NRCS-CPA-13 not required
     Schedule
     Success of applied practices
     O&M




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How do you notify participant of the
       potential violation?
 Contract   Review
   If Annual Review indicates that the provisions of
    the contract are not being followed
         Not on schedule
         Failed practice
         Lack of O&M
   Conduct a Formal Contract (Status) Review with
    the Participant
      NRCS-CPA-13 provided to participant
      NRCS-CPA-153 signed by participant with reasonable
      timeframe to comply                                   41
 How do you give them a chance to
  correct the potential violation?

 NRCS-CPA-153
  Details of non-compliance
  Document all actions that need to be taken
  Reasonable Timeframe to comply
  Signature


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             Failure to Remedy
 Proceed     with Termination
   Termination Notification Letter (512.91L)
      Reason
         Regulatory basis
         Reasonable time to correct not met
      Consequences
         Adverse actions to be taken
             Termination
             Cost Recovery
             Liquidated Damages
             Forfeit of future payments
      Appeal rights
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     Contract Administration
 ContractModifications
 Land Transfers
 Canceling vs. Terminating
 Cost Recovery




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               Cost Recovery
 Generally   seek recovery of costs when
 terminated
   Refer to CPC Appendix for applicability
   Includes
     Liquidated Damages (Cost of NRCS TA)
        Not a penalty
     Refund of FA


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    Assessment of Damages
 STC   may reduce the amount of money
 owed
   All or Part
     If requested by participant
     With justification
         Supported by substantial evidence
     If acting in good faith
  Must be granted consistently
     Within the state and among states
         Inconsistency causes appeals
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          Liquidated Damages
 Recovery    of NRCS administrative and
  technical services
 Up to 20% of total FA funds obligated
    National model is general guidance
      StC may consider full amount allowed by the specific
       program contract appendix
      StC may follow table in CPM 512.58 for applicable
       programs
      StC may reduce amount in part or in full
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                Guidance
 All contract violations must be handled
  using guidance in specific program
  regulations
    Statute
    Rule
    CPC Appendix
    Manual
    NB’s and other policy guidance
                                            48
     Contract Administration
 ContractModifications
 Land Transfers
 Canceling vs. Terminating
 Cost Recovery




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 Some days all
you can do is
smile and wait for
some kind soul to
come pull you out
of the bind you’ve
gotten yourself
into.

               50
              Equal Opportunity
"The U.S. Department of Agriculture (USDA) prohibits discrimination
in all its programs and activities on the basis of race, color, national
origin, age, disability, and where applicable, sex, marital status,
familial status, parental status, religion, sexual orientation, genetic
information, political beliefs, reprisal, or because all or a part of an
individual's income is derived from any public assistance program.
(Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of
program information (Braille, large print, audiotape, etc.) should
contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination write to USDA, Director, Office of
Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C.
20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD).
USDA is an equal opportunity provider and employer."
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