contract administration.ppt
TRANSCRIPT
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F.M. “Fil” Tellez, Sr. Contracts Mgr.NISH National Operations - AbilityOne Program Support and Special Projects
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Greetings from the Great SouthwestAwesomeInspiringBreath-takingChallengingOverwhelmingUnforgivingDauntingTreacherous
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Top Ten Tips1. Its Always About the Relationship!2. READ Your Solicitation/Contract!3. Never Assume!4. Communicate with the Right Authority!5. Document, Document, Document!
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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!
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1 - It’s the RelationshipCommittee for Purchase Federal GovernmentNISHNon 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”
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RelationshipCommittee for Purchase
Administer the ProgramEstablish the contract priceAuthorize NPA participation
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RelationshipFederal Government
Contracting OfficerCOR (PM?)COTRQAEOther
“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.”
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RelationshipFederal Acquisition Regulation, Part 11.102-4 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.
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RelationshipFederal Acquisition Regulation, Part 11.602-2 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!
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RelationshipNISHNPA
“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.”
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RelationshipNISH
Program AdministrativeProject 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.”
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RelationshipNISH
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
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RelationshipNISH
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
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RelationshipNISH
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
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It’s the RelationshipPrivate Non Profit Agency (NPA)
Business and Rehabilitation Mission“No Money, No Mission!”
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RelationshipNon Profit Agency
Business Technical Price Administrative Regulatory Compliance Customer Satisfaction
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RelationshipNon 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.”
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RelationshipChallenging 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
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“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
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“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!
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Acquisition Team Members
FAR BasedAcquisitionTeam
Other Stakeholders?
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Process OrientationFederal Federal
GovernmentGovernmentNISHNISHNon Profit AgencyNon Profit AgencyCommittee for
Purchase
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2 - READ Your Solicitation/ContractPrinciples of Contract FormationChanges, REAs and ClaimsSuccess or Failure
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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 youyou will be held responsible for any obligations and responsibilities contained in the contract … at the fair market price achieved by negotiation - Your Your failure to have read the full solicitation, its terms, failure to have read the full solicitation, its terms, conditions and specification is no viable defense conditions and specification is no viable defense from being held to those accountabilities!from being held to those accountabilities!”
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READ Your Solicitation/ContractPrinciples of Contract Formation
• Offer• Acceptance• Consideration
The SolicitationYour ProposalThe Bargain
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READ Your Solicitation/ContractGuidelines
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.
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FAR 15.204-1 Uniform Contract Format, Table FAR 15.204-1 Uniform Contract Format, Table 15-115-1
“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.
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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.
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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
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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
Uniform Contract Format; FAR Part 15
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READ Your Solicitation/ContractWhat 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?
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READ Your Solicitation/ContractChanges, 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!
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READ Your Solicitation/ContractChanges, 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• ????
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3 - Never AssumeClarify AmbiguityGet in Writing from Contracting OfficerProceed Accordingly
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Never AssumeDuty 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.
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Never AssumeDuty 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.”
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4 - Communicate OftenProfessionally and with RespectWith the Proper AuthorityConfirm ResponseGet it in writing
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Communicate With the Proper Authority
• Contracting Officer• Contracting Officer’s Representative• Contracting Officer’s Technical Representative• Quality Representative/Inspector
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5 - DocumentIn God We TrustAll Others Bring Data !!!!
Telecom notes Emails Letters Memos
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6 - Bargain in Good Faith and Fair DealingDuty 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.”
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Good Faith and Fair DealingGovernments Duty to Cooperate
“An implied duty of a contracting party to cooperate with the other party to facilitate the performance of the contract.”
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7 – Require Fair, Equitable and Impartial TreatmentFAR Part 1.602-2, Responsibility of
Contracting OfficerFairEquitableImpartial
IF you doubt the behavior, question it!
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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
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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
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9 - Talking and ListeningKnow 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!
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10 – Be Responsive and ResponsibleKnow your deadlines and due datesthen achieve them!
For Proposal Submittal
Pre-proposal conferencePricing inputs
Labor Supplies/Materials/Equipment Other
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Responsive and ResponsibleFor Inspection Findings, Changes and
Modifications
Reclama/Rebuttal/Alternative FindingREAsClaimsAppeals
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Top Ten TipsBenchmarked on industry, federal and
AbilityOne Program experienceLearned 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!
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Maintaining Your Contract
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Begin with the end in mind!Know what your supposed to accomplishKnow at what price and budget you’ve agreed to
performTrack 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
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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 factsWe make excusesArgue irrelevant issues
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2006 Edition Rev 2010
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 moneyGet frustratedBlame the government
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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 …Your answer should be yes to all the above …Or you have some homework to accomplish!Or you have some homework to accomplish!
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Have I read my contract, thoroughly?All parts and sectionThe PWS/Statement of Work/Specification
Do I know what it all means?If any questions, have I asked for
clarifications?From your managementFrom the government
Your answer should be yes to all the above …Your answer should be yes to all the above …Or you have some homework to accomplish!Or you have some homework to accomplish!
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Resources AvailableNISHFederal Acquisition Regulations
Full text of clauses in your contractsProvisions, processes, practices and guidance
Code of Federal Regulations – AbilityOne Program
Committee Procedures and PolicyPricing Memorandum Number 3, PricingOperations Memorandum Number 19, DisputesOperations Memorandum Number 21, Subcontracts
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Other Important ResourcesFederal Acquisition Regulations
Acquisition Central.govPortal entry to all federal agency rules and regs
DFARS for DoD Agencies All Civilian Agency FAR Supplements
AO1 Program Information, Committee Memoranda, Process and ProceduresAbilityOne.gov
NISH Process and Procedures and InformationNISH.org
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“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
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Your Contract as a GuideAbilityOne contracts are sole source
negotiated contractsGenerally they are Firm Fixed PriceThey are priced in accordance with Pricing
Memorandum Number 3 (PR3)PR3 says we use FAR Part 15 as the basis for
negotiating our priceTherefore, the federal agency may have
issued a uniform contract format (UCF) instrument
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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
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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
Uniform Contract Format; FAR Part 15
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Contract AwardAward is generally a Base Year plus Four
renewable Follow on Year (FOY) PeriodsContract is renewable every yearEach FOY carries same price, etc. as Base Year
unless Government makes changesEvery Five Years we re-establish a New Base Year
AbilityOne contracts are mandatory source AbilityOne contracts are mandatory source contracts which means purchase of product or contracts which means purchase of product or service can only be made from AbilityOne service can only be made from AbilityOne qualified Non Profit Agency!qualified Non Profit Agency!
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Now What?Contract Award
Same requirements?No changes?Everything you agreed to?
Post Award ActionsDeliverables
Quality Control Plan Notices to government of Supervisory personnel Other
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Contract Management Checklist – Post AwardReports or plans due to governmentApproval processesKey personnel provisions and reportingSubcontract administration (if any)Government quality assurance, inspection and
acceptance provisions and authorized personnelContractor quality control requirementsInvoicing and payment provisionsInsurance and liability requirementsWage rates and required postings
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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
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Who will you be dealing with?Government contract personnel
Contracting OfficerContract AdministratorContracting Officer’s Representative (COR)Contracting Officer’s Technical Representative
(COTR)Quality Assurance Evaluators (QAE, Inspectors, etc.)
Your NPA contract personnelCommunication Matrix
List of who talks to who at what levels within government and your agency - Good idea!
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Labor Law ProvisionsWage Rates and Fringe Benefits
Service Contract Act Davis Bacon ActOther 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?
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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
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REMEMBER -Top Ten Tips1. Its Always About the Relationship!2. READ Your Solicitation/Contract!3. Never Assume!4. Communicate with the Right Authority!5. Document, Document, Document!
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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!
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Q&AYour Issues or Concerns
Purchase Orders ? G&A and Allowable Costs ?
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Adios and Good Luck!
F.M. “Fil” Tellez703.626.3108
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