Government View for Post Award Contract Administration

1. Government View for Post Award Contract Administration NCMA Annual Conference 10 Mar 10 Maj Michael Belko Commander, 66th Contracting Squadron Hanscom AFB, MA

2. Post Award • FAR allows for delegation of contract administration IAW agency procedures (FAR 42.202) • DFARS details agency procedures (DFARS 242.202) • DoD activities shall not retain contract administration that requires performance at or near contractor facilities (with many exceptions) • Base, post, camp and station contracts on a military installation are normally the responsibility of the installation or tenant commander • However, duties may be delegated to DCMA

3. Contract Administration • FAR 42.302 lists 70 contract administration functions that may be delegated by the Contracting Officer (CO) • CO may retain any of these functions except for: • Negotiating forward pricing rate agreements • Establishing final indirect cost rates and billing rates • Determining adequacy of disclosure statement or compliance with Cost Accounting Standards (FAR 31)

4. Contract Administration (Cont’d) • 70 contract administration functions include: • Contract Management • Financial Services • Engineering Support Services • Property Management • Quality Assurance and Product Acceptance • Software Acquisition Management • Small Business • Specialized Safety

5. PCO/ACO Interaction • Delegation of administration is determined pre-award • Administrative Contracting Officer (ACO), or DCMA staff, can provide input to solicitations, identify performance risks, assist with selection of capable contractors • Early involvement with ACO/DCMA will better enable evaluation of post award contract performance • ACO/DCMA can provide input to PCO for contract structure to ensure ease of administration

6. To Delegate or Not… • Delegation of contract administration is dependent upon: • Uniqueness of organization, requirement, contract • Location of the work to be performed • Inherent nature of the work • DFARS requirements

7. Examples • Large weapon system/aircraft platform contracts are usually administered via DCMA with the Administrative Contracting Officer (ACO) located in the contractor’s facility • ACO performs all administrative functions with assistance from Procuring Contracting Officer (PCO) when necessary • Relationship includes strong interaction and coordination between ACO and PCO • ACO is able to provide daily administration and be the Government eyes and ears at the contractor facility • ACO develops professional relationships with contractor to enhance cooperation, ease resolution of issues and gain better understanding of requirements and their execution

8. Examples (Cont’d) • Historically, the Government purchasing organization has retained administration of Federally Funded Research & Development Center (FFRDC) contracts for the following reasons • FFRDCs are extremely unique (FAR 35) • FFRDC contracts have many programs whose sponsorship is varied throughout the Government • DCMA does not have vast experience administering FFRDC contracts • Many benefits to retaining administration • ACO is usually located at FFRDC to provide daily administration and be the Government eyes and ears • Sensitivity of programs • If the FFRDC is associated with a university, it is subject to different cost principles (OMB Cir A-21 vs FAR 31) • Magnitude of GFE/GFP/GFI

9. Examples (Cont’d) • The Government purchasing organization has retained administration of installation, base, camp purchases IAW DFARS 242.202 • Some popular examples: • HAFB Civil Engineering Services • Base Civil Engineers know requirements and base infrastructure • Services are provided at HAFB • Program Management certifies invoices with verification of receipt of services from CE (via Wide Area Work Flow) • Able to provide daily administration because of co-location • PASS/ETASS/Advisory & Assistance Services for HAFB • A&AS support is specific to program, requirements are unique • Services are provided at HAFB • Program Management certifies invoices with verification of receipt of services from program managers (via Wide Area Work Flow) • Able to provide daily administration because of co-location

10. If contract administration is delegated, PCO still retains responsibility for execution of the contract Award modifications if necessary Negotiate changes as necessary Maintain official contract file Closeout activities Acceptance as required Manage incentive/award fee Provide direction to contractor Notify contractor of performance issues PCO Responsibilities

11. DCMA Defense Contract Management Agency Post Award Contract Administration Presented By: Mrs. Izzie Mooney DCMA Customer Liaison Representative Izzie.Mooney@DCMA.MIL 10 March 2010

12. Overview Mission and Vision Organization Why do Contract Administration Things you may want to know What we can’t do Making Contact and Website Info Summary

13. Mission and Vision Mission: We provide Contract Administration Services to the Department of Defense Acquisition Enterprise and its partners to ensure delivery of quality products and services to the warfighter; on time and on cost. Vision: DoD’s leading experts in Quality Assurance; Cost, Schedule, and Supply Chain Predictability; and Contract Administration; enabling our partners to achieve contract objectives.

14. Department of Defense Secretary of Defense Under Secretary of Defense (Acquisition, Technology, & Logistics) Army Chairman Joint Chiefs of Staff Navy Air Force Marine Corps DCMA Historical Perspective – Service PROs/DCAS to DLA (1990) to DCMA (2000)

15. Product Aligned Agency DCMA 6350 Walker Lane Alexandria, VA 22310-3241 December 2007 DIRECTOR (D) Senior Enlisted Advisor Chief of Staff General Counsel (GC) Reserve Affairs (DR) Office of Independent Assessment (DM) Aircraft Operations (AO) Executive Director Financial & Business Operations (FB) Executive Director Information Technology (IT) Executive Director Human Resources (HR) Executive Director Contracts (AQ) Executive Director Operations Mgmt & Customer Relations (OC) Executive Director Space & Missile Systems Division Director International Division Commander Special Programs Division Director Aeronautical Systems Division Director Naval Sea Systems Division Director Ground Systems & Munitions Division Director

16. Types of *CMOs • Geographic Area • Commodity/ products line • Major Facility (*Contract Management Offices)

17. Why do Contract Administration? The purpose of contract administration is to ensure the Government receives the supplies and services we are paying the contractor to provide. We need to ensure: The supplies delivered meet applicable technical requirements/specifications; The services provided meet contractual requirements; The contractor complies with the terms and conditions of the contract.

18. DoD Functional Specialists…

19. Focus Areas Contract Receipt & Review Contractor/Contract Surveillance Contractor Payment Contract Closeout

20. DCMA Support Things You May Want to Know…

21. DCMA Administered by…

22. Inspection and Acceptance Indicates Low Risk.

23. 52.246-2  Inspection of Supplies- FP • As prescribed in 46.302, insert the following clause: • (c) The Government has the right to inspect and test all supplies called for by the contract, to the extent practicable, at all places and times, including the period of manufacture, and in any event before acceptance. The Government shall perform inspections and tests in a manner that will not unduly delay the work.The Government assumes no contractual obligation to perform any inspection and test for the benefit of the Contractor unless specifically set forth elsewhere in this contract. (Gets your foot in the door….)

24. Alternative Release Procedures Use of Alternative Release Procedures (ARP) on low risk items DFARS 246.471 Defines the ARP Criteria (b) Alternative Procedures--Contract Release for Shipment. (1) The contract administration office may authorize, in writing, the contractor to release supplies for shipment when— (i) The stamping or signing of the shipping papers by a representative of the contract administration office interferes with the operation of the Government contract quality assurance program or takes too much of the Government representative's time; (ii) There is sufficient continuity of production to permit the Government to establish a systematic and continuing evaluation of the contractor's control of quality; and (iii) The contractor has a record of satisfactory quality, including that pertaining to preparation for shipment.

25. WAWF

26. Wide Area Workflow • The goal of WAWF is to support the DoD's goal of moving to a electronic acquisition process. • What Does WAWF Do? • Eliminateslost or misplaced documents - all documents are stored in one place…The Web • Provides accuracyof documents - current problems such as unmatched disbursements, duplicate payments, and payment delays are alleviated • Providessecure & auditable transactions - a user name and password must be used in order to use the benefits of WAWF • EnablesTimely & Accurate Payments - What normally took 10 days can now be accomplished in 1 day, if not minutes • Decreases Interest Penalties - since WAWF decreases processing time, the system will greatly reduce the number of Prompt Payment Act (PPA) violations

27. Role of ACO • DCMA facilitatespayment • Works with DCAA and DFAS • DFAS pays, DCAA audits • DCMA • Approves Final “Public Vouchers” • Cost, Time & Material, and Labor Hour contracts • Approves & Manages Various Financing Payments • Progress, Performance Based, and Advanced Payments • Resolves Problems & Issues with • Contractors/DFAS • Has POCs & DCMA Liaisons at DFAS

28. Contract Closeout (ACO Roles con’t) • Track/Monitor Mechanization Of Contract Administration Services (MOCAS) Data • Determine if Physically Complete • Resolve Admin/Pay Issues • Notify PCO of Actions, i.e. additional funds

29. ACOs can and do modify contracts Administrative changes: errors; computations not requiring extra funds; and code or address changes Novation/Change of name agreements Deobligating excess funds after contract completion An ACO contract modification starts with an “A” versus a PCO’s modification starting with a “P”

30. What DCMA can’t do… Closeout Only/Property Only - No closeout of contracts/property unless we administered Past-Performance Grading - We will provide data (e.g. shipping delinquency rate) to the contracting officer in past performance evaluations, but we can’t “grade” one contractor over another We can’t become a “Job Shop” - DCMA directs the daily activities of our employees - We must have a measure of independence to act as a legitimate, unbiased third party - Generally we don’t “co-locate” our workers with you We can’t help you with Post, Camp, & Station - We don’t have the expertise

31. How to Find Us Customers Links

32. Locating a DCMA CMT Member Where are you ??? • When I need you…

33. How to Find Us: https://home.dcma.mil/dcma-pi/customer.htm 1. Click on Customer 2. Click on CMT Locator

34. How to Find Us- Search by Contract Number Type in contract Number

35. How to Find Us- Search by Contract Number CMT Member

36. How to Find Us- Search by CAGE Type in CAGE

37. How to Find Us- Search by CAGE CMT Members

38. How to Find More About Us Directory CMT Finder/CAS Directory Customer Liaisons E-Tools Access Policy & CMOs

39. E-Tools/eBusiness External Web Access Management (EWAM) 2.0 allows external users to apply for access to DCMA eTools applications. EWAM 2.0 supports three Organization Types (Contractors, DoD, and Non-DoD agencies)

40. Feedback on Support • DCMA wants your feedback on our services • Quick on-line survey Access to the Survey

41. SUMMARY • DCMA is made up of different functional specialists to address DoD’s contractual and program needs (i.e.: Small Business; Engineers; Contracts; Quality; …) • Offices located World – Wide • Focus performance management defined by our customers at no additional cost on ACAT I/II/III Weapon Systems • Provides Insight/ Oversight and lessons learned information from “cradle to grave” acquisition

42. To learn more about DCMA – http://www.dcma.mil/ QUESTIONS ?

43. Post Award NCMA Annual Conference10 Mar 10Marianna Murphy, CPADirector of Business Operations

44. Who We Are Jacobs Engineering Group - • Engineering, scientific, design-build, construction management, and technical services firm • 55,000 employees; $11B annual revenue; Fortune 500 company traded on NYSE; headquartered in Pasadena, CA • Jacobs Engineering Group serves diverse industries: Oil & Gas Buildings & Infrastructure Aerospace & Defense Automotive & Industrial Pharmaceuticals & Biotechnology Chemicals & Polymers Jacobs Technology Inc - • The Aerospace and Defense arm of Jacobs Engineering • Provides advanced technology engineering services to government and industry • ~10,000 employees; headquartered in Tullahoma, TN • 20 major operating segments; over 50 office locations

45. Post Award Orientation The post-award orientation is beneficial to both parties; it is not one-sided. • The Federal Acquisition Regulation (FAR) states: • A post-award orientation aids both Government and contractor • personnel to - • Achieve a clear and mutual understanding of all contract • requirements • 2) Identify and resolve potential problems

46. Post Award Orientation The FAR does not mandate the performance of a post-award orientation, however, it does lean toward the performance of a post-award orientation, in one form or another, by listing 12 indications when it might be considered. By understanding the use of the post-award Orientation: • Contract professionals can better serve their customers • Increase the likelihood of stronger contract performance by both parties

47. Post Award Orientation Post Award Orientation brings the parties together reinforcing the importance of: • Requirements and deliverables • Emphasizing decisions that have already been agreed upon • Better understanding by each party of: • Their roles • Their responsibilities • Their relationships in the performance of the contract In summary: • Review the contract • Discuss the contract • Agree to the contract • Act on the contract

48. Post Award Orientation Preparing for Post Award Orientation: • Read, Read, Read Your Contract • Develop a Check List Review: • Contract Number • Contract Name Address • CAGE CODE • Issued, Administered and Payment By Blocks • Period of Performance – Option Periods • Point of Contact Information – PCO, PM • Payment Instructions • Invoicing Instructions • Review Contract Type: • Fixed Price • Fixed Price Labor Hour • Time and Material • Cost Reimbursable • Any combination of the above

49. Post Award Orientation Preparing for Post Award Orientation: • Develop in-scope and out-of-scope listings: • List of items that the government and contractor consider within and outside the scope of the contract • Useful for establishing and managing expectations • Useful for containing contract cost growth • Verify and validate the requirements stated in the contract to ensure that the project, when completed according to therequirement statement, will meet the needs of both parties.

50. Post Award Orientation Preparing for Post Award Orientation: • Summarize Contract Requirements • Deliverables: Description, Contract Reference, Delivery Date, Work Breakdown Structure Element • Review and Note areas of clarity on any Special Contract Requirements identified in the contract • Examples: OCI, Financial Conflict of Interest, Overtime Clause, Travel, Insurance Clause Implementations • Review General Provisions (Limitation of Cost) and any Special Provisions Identified • Small Business Subcontracting • Government Property • Labor – (Davis-Bacon Act, Work Hours Act, Equal Opportunity Program) • Security- DD 254; Special Security Handling, Disposition of Classified Material