Contract management overview
This presentation is the property of its rightful owner.
Sponsored Links
1 / 45

CONTRACT MANAGEMENT OVERVIEW PowerPoint PPT Presentation


  • 134 Views
  • Uploaded on
  • Presentation posted in: General

CONTRACT MANAGEMENT OVERVIEW. Presented by : Mr. Chip Summers (703) 805-5151. Contract Management. Contracting Environment Acquisition Planning Selecting the Source Contract Administration. Go to end of briefing. Contracting Environment. Contracting Activities Sequence

Download Presentation

CONTRACT MANAGEMENT OVERVIEW

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Contract management overview

CONTRACT MANAGEMENTOVERVIEW

Presented by:

Mr. Chip Summers

(703) 805-5151


Contract management

Contract Management

  • Contracting Environment

  • Acquisition Planning

  • Selecting the Source

  • Contract Administration

Go to end of briefing


Contracting environment

Contracting Environment

  • Contracting Activities Sequence

  • Flow of Authority

  • Oversight and Guidance

  • Guiding Principles


Contracting environment contracting activities sequence

Contracting EnvironmentContracting Activities Sequence

Requirements

Acquisition Plan

Acquisition Package

Solicitation

Source Selection/Negotiation

Award

Contract Administration

Delivery/Acceptance

Contract Closeout


Contract management overview

Contracting Environment

Flow of Authority

CONSTITUTION

CONGRESS

Head of

Agency

Senior Procurement

Executive

Head of Contracting Activity

Contracting Officer


Contracting environment oversight and guidance

Executive Branch

ASPA (1947)

ASPR

DAR (1978)

Congress

GAO

Protests

Decisions

Stay Provisions

Laws

FPASA (1949)

FPR

President

Executive Orders

Audits

OMB

OFPP

A-11

A-76 Policies

FAR (1984)

DFARS

Service Supplements

to FAR/DFARS

Buying Activity

Supplements

FASA (1994)

FARA (1995)

Clinger-Cohen (1996)

Courts

Army

Navy

Air Force

Claims

DoD

Protests

Directives

5000 Series

Source Selection Guidance

Defense Acquisition Deskbook

Guidebooks

ASBCA

Claims

Contracting EnvironmentOversight and Guidance

OMB-Office of Mgt & Budget, OFPP-Office of Federal Procurement Policy, ASBCA- Armed Services Board of Contract Appeals, ASPA- Armed Services Procurement Act, ASPR- Armed Services Procurement Regulation, DAR-Defense Acquisition Regulation FAR- Federal Acquisition Regulation, DFARS- Defense Federal Acquisition Regulation Supplement, FPASA- Federal Property & Administrative Services Act, FPR- Federal Procurement Regulation, FASA- Federal Acquisition Streamlining Act, GAO- General Accounting Office


Contracting environment guiding principles

Contracting EnvironmentGuiding Principles

In exercising initiative, Government members of the Acquisition Team may assume if a specific strategy, practice, policy or procedure is in the best interests of the Government and is not addressed in the FAR nor prohibited by law (statute or case law), Executive order or other regulation, that the strategy, practice, policy or procedure is a permissible exercise of authority.

FAR 1.102(d)


Contract management overview

Acquisition Planning

(FAR Part 7)

Market Research

Commercial Items

Competition

Contracting Methods

Socio-Economic Programs

Contract Types


What is it

Market

Research

Acquisition Planning

Market Research (FAR Part 10)

What Is It?

  • Market Surveillance

  • Ongoing Familiarity With a Market

    • Trade Shows

    • Research Reports

    • Trade Journals

    • Symposia Proceedings

  • Market Investigation

  • Collect, Evaluate & Analyze

  • Specific Information to meet

  • Agency Needs

    • Identify potential sources

    • Survey Manufacturers

    • Analyze Responses

  • Product Available

  • Proceed with

  • Commercial Buy

  • Revise Requirement?

  • New Development?


Contract management overview

Acquisition Planning

Commercial Items (FAR Part 12)

  • Clear Preference for Commercial Items

  • Certain Laws Not Applicable

  • Contract Type

    • FFP or FP(EPA)


Contract management overview

Acquisition Planning

Competition

  • “Acquisition managers shall take all necessary actions to promote a competitive environment….”

    (DODD 5000.1)

  • “The program manager shall, throughout the acquisition process, promote full and open competition and sustain effective competition between alternative major system concepts and sources, as long as it is economically beneficial and practicable to do so.”

    (FAR 34.005-1)

  • “... contracting Officers shall promote & provide for full and open competition in soliciting offers and awarding Government contracts.”

    (FAR. 6.101)


Acquisition planning competition hierarchy

Acquisition PlanningCompetition - Hierarchy

  • Full & Open Competition

  • Full & Open After Exclusion

    • Set Asides

    • Alternate Source

  • Other Than Full & Open Competition

    • Only One Available Source

    • Unusual or Compelling Urgency

    • Maintain Mobilization Capability

    • International Agreement

    • Authorized or Required by Statute

    • National Security

    • Public Interest


Acquisition planning methods of contracting

Acquisition PlanningMethods of Contracting

  • Micro Purchases

    • <$2,500

    • no competition necessary

    • the Government-wide commercial credit card - preferred method for purchase and payment

  • Simplified Acquisition Procedures

    • $2,500 - $100,000

    • Electronic Commerce is preferred means

    • Reserved for small business

    • Can use for commercial item < $5M


Contract management overview

Acquisition PlanningMethods of Contracting

Sealed Bidding

requirements are easily understood

expect competition

no discussion required

review responsiveness and responsibility

Contracting by Negotiation

competitive

non-competitive

opportunity for discussions

best value consideration


Acquisition planning methods of contracting alternatives

Acquisition PlanningMethods of Contracting - Alternatives

  • Federal Supply Schedule (FSS)

  • Blanket Purchase Agreements (BPA)

  • Multiple Award Schedule (MAS)

  • Government Wide Agency Contracts (GWAC)

  • Other Transaction Authority (OTA)


Contract management overview

Acquisition Planning

Socio-Economic Programs

www.sba.gov

  • Small Business:

  • Independently owned

  • and operated

  • Not dominant in its

  • field

  • Meets size standards

  • in Part 19.102

Small Businesses

All Contractors

  • Small Disadvantage

  • Business:

  • Small business

  • At least 51% owned &

  • managed by person or

  • persons who are

  • socially & economically

  • disadvantaged

SDB’s

8A’s

HUB Zone

Firms

  • 8A Contractor:

  • SDB

  • Approved for partici-

  • pation in 8A program

  • by SBA

  • HUB Zone Firm:

  • SBC in

  • historically under-

  • utilized business zone

  • 35% Employees

  • reside in zone


Acquisition planning contract types characteristics

Acquisition PlanningContract Types - Characteristics

Fixed Price

  • Cost

PromiseBest EffortDeliver

Risk to ContractorLowHigh

Risk to GovernmentHigh?

Cash FlowCost IncurredOn Delivery

Progress Payments ----Yes

Performance Based Payments ----Preferred

AdministrationHighLow

Fee/ProfitPeriodicOn Delivery


Contract management overview

Acquisition Planning

Contract Types - Major Systems Continuum

User Needs &

Technology Opportunities

TYPICAL CONTRACT TYPE CHANNEL

Pre-Systems Systems Acquisition Sustainment

Acquisitions

B

A

C

CPFF

FFP (LOE)

FPI FFP

FPI

FFP

CPFF CPAF CPIF

FOC

IOC

Concept

Refinement

Technology

Development

System Development

& Demonstration

Production and

Deployment

Operations &

Support

Concept

Decision

Design Readiness

Review

FRP Decision

Review

LRIP/IOT&E

ILL DEFINED RQMT ... WELL ... DEFINED RQMT

CE

PDRR

EMD

PRODUCTION or

DEPLOYMENT

WORK STATEMENT TYPE CHANNEL


Acquisition planning contract types

Acquisition PlanningContract Types

CPFF

CPAF

CPIF

Max

Fee

Max Fee

Award Fee Pool

100/0 Share

Fixed

Fee

Share Ratio

Target

Fee

Base

Fee

Min Fee

Base Fee (0-3%)

Estimated Cost

Estimated Cost

Target Cost

FFP

FPIF

Target

Profit

0/100 Share

Multiple

Incentive

Share Ratio

Profit

(PTA)

Ceiling

Price

Cost

Target Cost


Acquisition planning contract types incentives

Acquisition PlanningContract Types - Incentives

  • Cost

  • Schedule

  • Performance

  • Multiple Incentives


Selecting the source

Selecting the Source

  • Pre-Solicitation Process

  • Uniform Contract Format

  • Source Selection Policies

  • Post-Solicitation Process

  • New Contract/New Work

    • Traditional Approach

    • Alpha/One Pass Approach


Selecting the source pre solicitation process

Selecting the SourcePre-Solicitation Process

Request for Proposal

Solicitation

Preparation

Requirement

Market Research

Acquisition

Strategy &

Plan

Source

Selection

Strategy

Draft Request

for

Proposal

FedBizOpps:

Advisory Multi-Step

DRFP Release

Reading

Room

Finalize

RFP

RFP Release

Briefing to

SSA

Advertise RFP

Release

RFP Release

to Industry


Selecting the source uniform contract format

Selecting the SourceUniform Contract Format

Part I The Schedule

A Solicitation/Contract Form

BSupplies or Services & Prices or Costs

CSpecification/SOW/SOO/ORD

DPackaging & Marking

EInspection & Acceptance

FDeliveries or Performance

GContract Administration Data

H Special Contract Requirements

Part II Contract Clauses

IContract Clauses

Part III List of Documents, Exhibits, & Other Attachments

JList of Attachments

Part IV Representations & Instructions

KRepresentations, Certifications, & Other Statements

LInstructions, Conditions, & Notices to Offerors or Quoters

MEvaluation Factors for Award


Selecting the source source selection policies

Selecting the SourceSource SelectionPolicies

  • Minimize Complexity of the Solicitation, Evaluation, and Selection Decision

  • Ensure Impartial Evaluation of Proposals

  • Select Source/Sources with Best Value to the Gov’t

  • All contractors and prospective contractors shall be treated fairly and impartially but need not be treated the same.

    FAR 15.002,15.101-1,1.102-2


Selecting the source post solicitation process

Advisory Multi

Step Process/RFP

Release

Receipt of

Proposals/

Presentations

Competitive

Range

Determination

Initial Eval

Clarifications

Limited

Communications

Face-to-Face

Discussions/

Negotiations

Receive & Analyze

Field Surveys

(if requested)

Prepare for discussions

with

Remaining Offerors

Request Final

Proposal

Revision

Receive &

Analyze

Final Proposal

Brief

SSAC

Brief

SSA

Contract Award

(Distribution)

SSA

Decision

Selecting the SourcePost-Solicitation Process

(No Discussions)


Source selection organization

SOURCE SELECTIONOrganization

Who

Responsibilities

DECIDE

SOURCE

SELECTION

AUTHORITY

(SSA)

COMPARE

SOURCE

SELECTION ADVISORY

COUNCIL

(SSAC)

EVALUATE

PRAG

SOURCE SELECTION

EVALUATION BOARD

(SSEB)


Contract management overview

SOURCE SELECTION

Protest

Interested

Parties

Agency

(PCO)

Court of Appeals

for Fed Circuit

GAO

Court of

Federal

Claims


Selecting the source traditional approach non competitive

Legend

Contractor

and

Government

Contractor

Government

Selecting the SourceTraditional Approach (Non-Competitive)

Tech

Eval

Pre-Negotiation

Objectives

Pricing

Negotiations

Proposal

Field

Pricing

DCAA

Audit

Price

Negotiation

Memorandum

Reviews

Write

Contract

PCO

Signs

Distribution

Contractor

Signs


Selecting the source alpha one pass

Selecting the SourceAlpha /One Pass


Selecting the source alpha one pass1

Selecting the SourceAlpha/One Pass

Relies on a Team Approach

  • To concurrently develop a scope of work

  • Price that scope of work

  • Prepare a contract to execute that scope of work


Selecting the source alpha one pass sole source

Legend

Contractor and

Government

Separately

Contractor

and

Government

Government

Selecting the SourceAlpha/One Pass (Sole Source)

Requirement

Acquisition

Strategy

Processes

Team Members

Acquisition

Plan

Model

Contract

Distribution

Contractor

and

Government

Sign

Reviews

Technical

& Cost

Agreements


Selecting the source alpha one pass keys to success

Selecting the SourceAlpha/One Pass – Keys to Success

  • Management Commitment

  • Trust

  • Honesty

  • Empowerment


Contract administration

Contract Administration

  • DCMA

    • Locations

    • Functions

  • Modifications

    • Constructive Change

  • Disputes

  • Alternative Dispute Resolution

  • Termination for Convenience

  • Termination for Default

  • Contract Closeout


Contract management overview

Contract Administration

Defense Contract Management Agency

Districts East & West

67+ CMOs

Boston

DCMD

East

Los Angeles

DCMD

West

International

Major CMOs


Contract administration functions

FAR 42.302 Lists 70 “normal” Functions

10 additional functions are frequently delegated

Most Functions Fall into 1 of 7 Categories

Contract Administration

Pricing/Negotiations

Program Integration

Property Management

Quality Assurance

Engineering Surveillance

Production Surveillance

Contract AdministrationFunctions


Contract administration contract modification

Contract AdministrationContract Modification

Change Order

Administrative

Supplemental Agreement


Contract administration contract modification constructive change

Contract AdministrationContract Modification- Constructive Change

  • Oral or written act or failure to act by authorized Government official construed by contractor as having same effect as a written change order

  • Must involve:

    • Change in performance beyond minimum contract requirements, and

    • Word or deed by Government representative which requirescontractor effort that is not a necessary part of the contract

  • Requires Ratification


Contract administration disputes appeal process

Contract AdministrationDisputes Appeal Process

U.S. SUPREME COURT

Court of Appeals

for the Federal Circuit

Armed Services (Agency)

Board of Contract Appeals

Court of Federal Claims

Alternative Appeal Route Filed

Within 90 Days of Receipt of

C.O. Decision

Alternative Appeal Route Filed

Within 12 Months of Receipt of

C.O. Decision

(Administrative)

(Judicial)

Contractor Appeal of

Contracting Officer’s

Final Decision

* Use of Alternate Dispute Resolution (ADR) is Preferred


Contract administration alternative dispute resolution

Contract AdministrationAlternative Dispute Resolution

Any procedure or combination of procedures voluntarily used to resolve issues in controversy without the need to resort to litigation.


Contract administration alternative dispute resolution contract tool

Contract AdministrationAlternative Dispute Resolution - Contract Tool

  • No Perfect Contracts; Unforeseen Problems Occur

  • Litigation Takes Too Long; Costs Too Much

  • Collaborative (21st Century) versus Adversarial (1980s)

  • Structured Conflict Management Clears Obstacles; Enables Joint Mission Success


Contract administration alternative dispute resolution methods

Contract AdministrationAlternative Dispute Resolution - Methods

Arbitration: Impartial third party issues final binding decision.

Mediation: Neutral third party serves as an advisor to determine mutual interests and defines best and worst alternatives to a negotiated agreement. May also be called Conciliation.

Minitrials: Each party makes presentations to a panel comprised of senior executives from each side and a neutral party. Panel attempts to work out an equitable agreement.

Fact-finding: Impartial third party examines the issues and submits a report with recommended settlement.

Partnering: Agreement between the parties that describes how they will work together to keep issues from becoming adversarial.


Contract administration termination for convenience

Contract AdministrationTermination For Convenience

  • Unilateral Government Right

  • Notice of Termination Must Be in Writing

  • No Justification is Required

  • May Be Partial or Complete


Contract administration termination for default

Contract AdministrationTermination For Default

  • Government May Terminate for Default if Contractor Fails To:

    • Make Timely Delivery

    • Perform Any Other Contract Provision

    • Make Progress & Thereby Endangers Performance

  • Government Pays Contract Price for Completed Supplies

  • Government May Obtain Reprocurement Costs


Contract administration contract close out

Contract AdministrationContract Close Out

  • Must assess physical completion to undertake close-out

  • Physical completion occurs when:

    • All required deliveries are completed, inspected and accepted

    • All options have expired

    • Government has given the contractor a notice of termination


Contract administration contract close out1

Contract AdministrationContract Close Out

  • Close out includes

    • disposition of classified material

    • disposition of Government property

    • final patent & royalty reports are cleared

    • a plant clearance report is received

    • interim or disallowed costs are settled

    • price revisions are complete

    • subcontracts are settled by the Prime


  • Login