Presented by: James Concannon, MSA FAC C Level III Contracting Officer

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1 Presented by: James Concannon, MSA FAC C Level III Contracting Officer

2 The primary document that establishes policies and procedures for acquisition by all Executive Agencies. It is the over-riding authority for almost all Federal Procurement A Contracting Officer s and all his representative s authority is derived from it. 2

3 A person with the delegated AUTHORITY to enter into, administer, and/or terminate contracts and make related determinations and findings (FAR ) In order to be a Contracting Officer, you must meet certain qualifications and be issued a warrant that identifies the scope and limits of your authority. 3

4 Sign contracts Obligate Government Funds Commit Government Property Authorize Contract Deviations Direct Changes Suspend or Terminate Performance Recoup Funds from Contractor Suspend Payment to Contractor Ensure that Contractors receive impartial, fair and equitable treatment. - Comply with: - Code of Federal Regulation (CFR); - Federal Acquisition Regulation (FAR); - Executive Orders (E.O.) ; - Other applicable governmental laws and regulations. 4

5 An authorized representative of the Contracting Officer responsible for the management and monitoring of the contract. Prepares documents for the CO to review and sign, has limited authority to amange the contract 5

6 Manages, performs, and administers contracting functions for supplies, services, and construction. Uses automated contracting systems to prepare, process, and analyze transactions and products. Acts as business advisor, buyer, negotiator, administrator 6

7 A Purchasing Agent is a Contracting Officer, with delegated authority to make small purchases for supplies and non-personal services. May have a Government Purchase Card, usually with a $25k limit A small purchase is $150,000 (Simplified Acquisition Threshold, or SAT) or less on the open market and can be larger on a GSA schedule contract. Must be set aside for small business 7

8 Sign contracts Obligate Government Funds Commit Government Property Authorize Contract Deviations Direct Changes Suspend or Terminate Performance Recoup Funds from Contractor Suspend Payment to Contractor Ensure that Contractors receive impartial, fair and equitable treatment. - Comply with: - Code of Federal Regulation (CFR); - Federal Acquisition Regulation (FAR); - Executive Orders (E.O.) ; - Other applicable governmental laws and regulations. 8

9 A person who is delegated SPECIFIC AUTHORITY, in writing, from the Contracting Officer to oversee a particular contract. Are the eyes and ears of the CO, usually working on the job site 9

10 Ensure that requirements are clearly specified and defined Ensure that quality standards are provided and met Provide for a detailed Independent Government Estimate (IGE) Monitor the Contractor s technical progress Interpret the Scope of Work Perform technical evaluations Perform technical inspection and acceptance Assist the Contracting Officer in the resolution of technical problems 10

11 The business ethics of all who are charged with administration and expenditure of public funds must be above reproach at all times. It is important that everyone who is engaged in procurements and related duties adhere to and be guided by the agency s policies and instructions on personnel conduct. Must take a yearly Ethics course 11

12 A contract is a means of communication It includes five elements - offer, acceptance, consideration, legal substance and competent parties May be oral or written Must have a Meeting of the Minds 12

13 FAR Subject 4.8 Government contract files Priorities and allocations Quality assurance surveillance plans for services Interagency agreements for contract administration support Contract audit services Contract administration services Contract administration office functions Corporate Administrative Contracting Officer Production surveillance and reporting Single-agency assignments of Government contract quality assurance Transportation assistance. 13

14 1. Knowledge of the need for effective and efficient contract administration. 2. Knowledge of the activities available to provide contract administration services. 3. Knowledge of the offices (e.g., property and transportation) that commonly support various aspects of contract administration. 4. Ability to identify, read, and understand contract clauses that affect contract administration planning (e.g., clauses that specify the responsibilities of contractor or Government in contract performance). 5. Ability to communicate orally and in writing concerning contract administration requirements. 14

15 Knowledge of the need for effective and efficient contract administration. Knowledge of the activities available to provide contract administration services. Knowledge of the offices (e.g., property and transportation) that commonly support various aspects of contract administration. Ability to identify, read, and understand contract clauses that affect contract administration planning (e.g., clauses that specify the responsibilities of contractor or Government in contract performance). Ability to communicate orally and in writing concerning contract administration requirements. 15

16 What does a Contract Administrator need to know and be able to do? (cont d) Ability to encourage and facilitate cooperation among the various people and activities involved in contract administration. Ability to make sound, well-informed decisions in preparing contract administration plans. Ability to identify key contract performance indicators of the contractor s overall customer service. Ability to conscientiously plan the details of contract administration. Ability to maintain the honesty and integrity of the acquisition process. 7/1/2015 Federally Employed Women Conference

17 What does a Contract Administrator need to know and be able to do? (cont d) Must have good writing and oral communication skills Must learn to write unilateral and bilateral modifications that are quasilegal in nature Must at times be forceful, be able to stand confrontations, and be able to tell people no Must be resourceful, creative, and a problem solver Must be able to analyze cost proposals, compare them to an IGE, and negotiate a price for a change order Must be able to more or less run the day-to-day activities for the Contracting Officer. 7/1/2015 Federally Employed Women Conference

18 18

19 INPUT: with technical and other support personnel. 1. contract surveillance. 2. administration functions (if any) will be delegated. 3. administration as applicable. 4. administration plan. 5. authorized and necessary) to represent the Contracting Officer in administering contract requirements. 6. personnel authorized to represent the Contracting Officer in administering contract requirements. 19

20 Consider key factors that may affect the need for contract surveillance, including: The criticality (i.e., importance to the Government) of the supplies or services. Generally, contracts are designated as: A. Critical contracts, including: -DX-rated contracts under the Defense Priorities and Allocations System (DPAS); -Contracts negotiated under unusual and compelling urgency; and -Contracts for major systems. 20

21 Determine the required level of contract surveillance. B. Other contracts for items needed to: -Maintain a Government or contractor production or repair line; -Preclude out-of-stock conditions; or -Meet user needs for non-stock items. C. All other contracts. Contract requirements for reporting production progress and performance. The contract performance schedule. The contractor's production plan. The contractor's history of contract performance 7/1/2015 Federally Employed Women Conference

22 Determine the required level of contract surveillance. The contractor's experience with the contract supplies or services. The contractor's financial capability. Any special circumstances identified by the contracting office. Contracts at or below the simplified acquisition threshold should not normally require production surveillance. 7/1/2015 Federally Employed Women Conference

23 Consider: Agency and contracting activity policy on the delegation of contract administration; The FAR requirements that: Agencies must avoid duplicate audits, reviews, inspections, and examinations of contractors by more than one agency; and The requesting activity must reimburse the servicing agency for services rendered; The list at FAR (a) of functions normally delegated; 23

24 Determine what contract administration functions (if any) will be delegated. The list of functions that must be delegated when applicable: -Forward pricing rate agreement negotiation; -Indirect cost final and billing rate determinations; and -Cost Accounting Standards administration; The list at FAR (b) of functions that may be specifically delegated; Any additional delegations authorized by prior agreement with the contract administration office (CAO), provided that: 7/1/2015 Federally Employed Women Conference

25 Determine what contract administration functions (if any) will be delegated. The required CAO resources are available; -The head of the contracting activity or designee has approved the delegation of any authority to issue orders under provisioning procedures in existing contracts or under basic ordering agreements for items and services identified in the schedule; and -The delegation does not require the CAO to undertake new or follow-on acquisitions; 7/1/2015 Federally Employed Women Conference

26 Determine what contract administration functions (if any) will be delegated. Prior coordination with the contract administration office (when required); The need for special surveillance of a major system acquisition; The need for specialized support services at a contractor or subcontractor facility; and The resources available at the contract administration office (CAO). 7/1/2015 Federally Employed Women Conference

27 As provided in agency procedures, delegate contract administration or specialized support services, either through interagency agreements or by direct request to the cognizant CAO identified in the Federal Directory of Contract Administration Services Components. The delegation should include: 7/1/2015 Federally Employed Women Conference

28 Delegate contract administration as applicable. The name and address of the CAO designated to perform the administration (this information also must be entered in the contract); Any special instructions, including any: -Functions in FAR (a) withheld; -Specific authorization to perform functions listed in FAR (b); or -Additional delegation in accordance with a prior agreement and any necessary approval; A copy of the contract to be administered; and Copies of all contracting agency regulations or directives: -Referenced in the contract; or -Otherwise necessary for contract administration (unless previously provided). 7/1/2015 Federally Employed Women Conference

29 Delegate contract administration as applicable. A CAO or a contracting office retaining contract administration, may request support from the CAO cognizant of the contractor location where performance of specific contract administration functions is required. The request must: Be in writing; Clearly state the specific functions to be performed; and Be accompanied by a copy of pertinent contractual and other necessary documents. Subcontract administration support may be requested as long as the request conforms to FAR requirements and good business practice. 7/1/2015 Federally Employed Women Conference

30 The plan should be designed to facilitate effective and efficient contract administration considering: The required level of contract surveillance; Contract terms and conditions related to administration; Contractor performance milestones; Government performance milestones (e.g., for providing Government furnished property or responding to contractor plans and other required submissions); 30

31 Develop a contract administration plan. Contractor reporting procedures; Contract quality requirements; Name, position, and authority of contract administration team members; and Milestones for any reports required from contract administration team members. Documentation of the plan should meet the requirements of the agency, activity, and good business practice. 7/1/2015 Federally Employed Women Conference

32 Contracting and contract administration offices typically include a wide variety of full-time specialists who represent the Contracting Officer in contractor system reviews and other contract administration activities. These specialists may include: 32

33 Identify qualified personnel (as authorized and necessary) to represent the Contracting Officer in administering contract requirements. Quality Assurance Representatives (QARs); Software specialists; Property specialists; and Others. When authorized by the contract and necessary for effective and efficient contract administration, the Contracting Officer may also appoint technical representatives for specific contracts. The representatives may be known by a variety of names, including; 7/1/2015 Federally Employed Women Conference

34 Contracting Officer Representative (COR) Technical representative: designations must follow agency and activity guidelines. Generally: The cognizant Contracting Officer must assure that each representative possesses the necessary technical qualifications. Technical representatives must undergo training on their responsibilities and authority as a representative of the Contracting Officer. 7/1/2015 Federally Employed Women Conference

35 Contracting Officer Representative (COR) The delegation must include a copy of the applicable portions of the contract and other necessary guidance. The delegation remains in effect throughout the life of the contract unless canceled or modified by the cognizant Contracting Officer. 7/1/2015 Federally Employed Women Conference

36 Notices should be complete and accurate, with information such as: Name; Position; Authority in representing the Contracting Officer; and Applicable contract clauses. 36

37 Provides that no Government Officer or employee shall authorize or create any obligation, or make any expenditure, in excess of the funds available, or in advance of being appropriated. Violations of the act can lead to disciplanary action, including repayment of the misspent funds, dismissal from employment, and even inprisonment 37

38 Steps in Contract Administration Planning Contract Administration Planning Review the Contract File Identify Previous Issues and Problems Meet to Discuss Performance Monitoring Determine the Extent of Performance Monitoring Delegate Contract Administration Functions The Contract Administration Plan Provide Notices and Instructions Provide Formal Notice to Contractor 38

39 Postaward Orientation Planning Determine the Need for one Determine the Type of Orientation Planning Orientations Acquisition Team Planning Conduct the Orientation It Never Hurts to Ask Dumb Questions Prepare Postaward Orientation Report /Meeting Minutes Actions to Resolve Disagreements on Key Issues Identify the Need for Contract Modifications Document the Contract File Provide Information to Interested Parties Obtain Executed Contractual Documents, Bonds, or Insurance 39

40 Successful Performance Monitoring Respond to Contractor Requests (RFIs, Field Requests Use Technical and Other Support Personnel (May be hired contractors) Obtain Data on Contractor Performance Lessons Learned Pay Dividends (PPIPRS) Inform Others of Contract Status 40

41 Verify and Document Known or Predictable Performance Problems Determine Impact of Problem on Requirement Suspension or Stoppage of Work Performance Delays Resolve Contractor Performance Problems Document Contracting Officer s Final Decision Invoke Formal Remedy Inform Requiring Activity and Other Interested Parties 41

42 Consider Contractor Requests for Modifications Consider Government Requests for Modifications Determine Impact of Change on Scope Estimate Impact of Change (IGE) Determine Appropriate Consideration (negotiate) Provide Notice of Rejection Determine Type of Contract Modification Implement Contract Modifications for Supplemental Agreements Implement Contract Modifications for Unilateral Changes IM implement Contract Modifications for Other Administrative Changes Use your Clauses Implement Contract Modifications for Novation Agreements and Name Changes... 42

43 Inspect Invoice or Voucher and Notify Contractor of Any Defects Identify Terms and Conditions Pertinent to Payment Obtain Documents and Determinations Pertinent to Payment Performance-Based Payments Identify Withholdings, Deductions, or Other Corrections Determine if Assignee is Protected From Deductions or Withholdings Determine Amount Due Contractor Notify Contractor of Differences Between Invoiced or Vouchered Amounts and Amounts to be Paid Notify Contractor of Final Decision on Paying Lesser Amount (Retainage) Forward Invoice or Voucher. 43

44 Verify Contract is Physically Complete Obtain Forms, Reports, and Clearances Required at Closeout Check for return of Government Furnished Property Verify Other Terms and Conditions Have Been Met Settle Any Outstanding Issues (Punchlist) Verify No Outstanding Claims or Disputes Make Final Payment or Collect Overpayment From Contractor Identify and Recommend Deobligation of Excess Funds Prepare Contract Completion Statement and Store Files 44

45 Congratulations, you ve just earned 3 CLPs for completing this course! Jim Concannon 45

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