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Mission Performance Assessment

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Mission Performance Assessment * The Government now relies more than ever on the use of past performance data to assist in making award decisions. – PowerPoint PPT presentation

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Title: Mission Performance Assessment


1
  • Mission Performance Assessment

2
Lesson Objectives
  • Given a contracting scenario and performance
    metrics, justify actions for monitoring a
    contractors performance.
  • Given a contracting scenario, prepare a plan for
    conducting a post-award orientation conference pg
    5-6
  • Given a scenario, select a surveillance method
    for assessing a contractors performance that
    includes all business factors
  • Given a scenario on a contractors performance,
    justify an acceptable Government remedy.
  • Discuss the characteristics of three types of
    Government contract termination convenience,
    cause and default
  • Discuss characteristics and impacts of payments
    to contractors.

3
Post Award OrientationOverview
  • Purpose
  • Types of Orientation
  • When to Use
  • Planning Conducting a Post Award Conference
  • Outcomes

4
Post Award Orientation
Rules and Agenda
Contract Award
Government-only
Document
Performance
Post Award Orientation
5
Post Award Orientation
  • Is it necessary?
  • Considerations
  • Type of orientation
  • Document the outcomes
  • DD 1484

6
Exercise 5.1
Graded Group Assessment Post Award
Orientations Graded Assessment Workbook Page 37
thru 41 10 points 1-Hour
7
Exercise 5.1
EACH TABLE WILL ADDRESS THE SCENARIO
CORRESPONDING TO THEIR TABLE NUMBER OR AS
DETERMINED BY THE INSTRUCTOR DETERMINE WHETHER A
POST AWARD ORIENTATION CONFERENCE IS WARRANTED
AND WHY. IF YOU WILL HOLD A POST AWARD
CONFERENCE, DEVELOP AN AGENDA TO ADDRESS THE
MAJOR ISSUES TO BE COVERED USING A DD FORM 1484.
8
Brief-Out Process
  • We will brief out Post-Award results in table
    sequence
  • Briefly discuss your scenario
  • Type of Conference (Telephone, VTC, In person,
    Letter and etc)
  • Identify agenda items and what issues you would
    want to discuss and why
  • Limit brief to 5 minutes

9
5.2 Assessment Factors
10
Discussion Questions
  • Why Assess?
  • What are some performance factors to assess?
  • Why is on-time delivery important?
  • What are some indicators of Quality performance?
  • Who are the players in performance assessment?

11
Why Assess? To Determine
  • How well we are doing? (Contractor Government)
  • If we are meeting our goals
  • If our customers are satisfied
  • If our processes are working
  • If and where improvements are necessary

12
Assessment Factors Overview
  • Cost Control
  • Timeliness (Schedule/Delivery)
  • Quality
  • Business Relations
  • Management of Key Personnel
  • Customer satisfaction Compliance (e.g. OSHA,
    EPA, DOL, Sm. Business subcontracting goals)

13
Schedule/Delivery P. 5-9
  • Did contractor meet contractual delivery
    requirements?
  • Is there a reward for early delivery?
  • Is there a penalty for late delivery?
  • Is the contractor on schedule to meet contractual
    requirements?

14
Product/Service Quality P. 5-10
  • Does product/service meet requirements?
  • Conforms/Adheres to
  • Specifications
  • Standards-FAR 37.603
  • PWS/SOW/SOO-FAR 37.602
  • Quality Assurance Plan-FAR 37.604

15
Business Relations P. 5-11
  • Tends to be a subjective analysis
  • Encompasses matters such as the contractors
  • Responsiveness
  • Professionalism
  • Cooperativeness

16
Management of Key Personnel P. 5-11
  • Were technical experts highly qualified and
    effective in performing the required services?
  • Were an appropriate number of personnel assigned
    to the project?
  • Did delivered products reflect skill and
    standardization required by the customer?

17
Customer Satisfaction P. 5-12
  • Our guiding principle is to satisfy our customer
    in terms of cost, quality and timeliness of the
    delivered product or service.

18
Compliance P. 5-12
  • Examples of areas
  • OSHA
  • EPA
  • Labor laws

19
Assessment Roles
  • Contracting Officer
  • Contracting Officer Representative

20
Assessing EAS Alloys Performance
  • How much Government oversight is needed?
  • Is there a formal plan?
  • What assessment factors will you use why?
  • Who would perform the assessment?
  • How will you know if EAS performance is or is
    not satisfactory?

21
Assessing Services Contracts
  • Why bother?
  • In FY 2002, 54 percent of DoD spending for goods
    services was spent on service contracts
  • From FY 1992 to FY 2002, DoD contracts for goods
    and services increased from 121.4 billion to
    170.8 billion, an increase of 41 percent
  • However, the cost of procurement of services
    alone increased from 61.7 billion to 92.9
    billion, an increase of 51 percent
  • (DoD IG Report 2004-015, October 30,2003) 
  • FY 2005 DoD services totaled 269 billion

22
Using PBA
  • The current goals for the use of
    performance-based acquisitions are
  • FY 2004 35 percent of dollars awarded
  • FYs 2005 to 2007 50 percent of dollars awarded
  • Whats the implication?
  • We must know how to set up these types of
    contracts and make sure were in a position to
    evaluate the contractors performance

23
Performance Based Acquisitions (PBA)
  • Definition
  • Policy

24
Quality Assurance Surveillance Plan
  • Quality Assurance Surveillance Plan
  • Required
  • Living document
  • Methods of assessment
  • FAR 37.602, 11.002, 37.604, 46.4

25
Performance Work Statement
  • There is no standard template or outline for a
    PWS.
  • The FAR only requires that agencies--
  • Describe requirements in terms of results rather
    than process.
  • Use measurable performance standards and quality
    assurance surveillance plans.
  • Provide for reductions of fees or price.
  • Include performance incentives where appropriate.

26
Exercise 5.2 Quality Assurance Surveillance Plan
  • Support Services for PEO Combat Support Combat
    Support Services
  • Complete the Chart for the QASP on 5-33 by
    determining the appropriate surveillance method
  • Scan Pages 5-16 thru 5-32 to accomplish.
  • 60 minutes

27
5.3 Select the Appropriate Remedy
28
Remedies Covered in Contract
  • Invoke contract clause (s) (ex. Stop Work, Cure
    Notice, Show Cause, Liquidated Damages,
    Termination)
  • Withhold/reduce award/incentive fees
  • Reject work or allow re-work
  • Decline to extend term (award term contracting)

29
TerminationsHomework Review
Termination For Convenience (T4C)
Termination For Default (T4D) Termination For
Cause
30
Inside the FAR
  • What Part of the FAR addresses terminations?
  • FAR Part 49
  • Pursuant to FAR 49.104 what are the duties of the
    prime contractor in regard to the subcontracts
    upon receipt of a termination notice?
  • FAR 49104(b) Terminate all subcontracts related
    to the terminated portion of the prime contract.
  • Pursuant to FAR 49.607, how much time has to be
    remaining in the contract delivery schedule to
    issue a Cure Notice?
  • FAR 49.607(a) If the time remaining in the
    contract delivery schedule is not sufficient to
    permit a realistic cure period of 10 days or
    more, the Cure Notice should not be issued.

31
Termination For Convenience (T4C)Student Guide
  • Unilateral government right
  • Notice of termination must be in writing
  • No justification is required
  • May be partial or complete
  • Contractor is compensated for
  • In-process and completed work
  • Profit for completed and partially completed work
  • Negotiate a settlement agreement

32
Termination Responsibilities
  • The contracting officer shall terminate
    contracts, whether for default or convenience,
    only when it is in the Governments interest.
  • When the price of the undelivered balance of the
    contract is less than 5,000, the contract should
    not normally be terminated for convenience but
    should be permitted to run to completion.

33
Termination For Default (T4D) or CauseStudent
Guide
  • Government may terminate for default if
    Contractor fails to
  • Make timely delivery
  • Perform any Other contract provision (material
    breach)
  • Make progress thereby endangers performance
    (anticipatory repudiation)
  • Government pays contract price for completed
    supplies
  • Government may obtain reprocurement costs per FAR
    49.402-6(c)
  • Steps
  • Cure Notice
  • Show Cause

34
T4D Cure NoticeStudent Guide
  • Cure Notice
  • Delinquency notice that must be issued by the
    Government prior to a T4D
  • Provides for a 10 day cure period
  • Failure to issue a cure notice can make the
    termination invalid

35
T4D Show Cause NoticeStudent Guide
  • Show Cause Notice
  • Preliminary written notice given to the
    contractor when a T4D appears to be appropriate
  • Indicates the contractual liabilities of default
  • Asks for contractors response to show cause why
    the contract should not be T4D
  • Considerations
  • Urgency of need
  • Availability of other sources
  • Contractor excuses for failure
  • Effect on Contractor and industrial base

36
Remedies Not Covered
  • Informal resolution between parties
  • Modify the contract
  • File claim
  • Seek Alternative Disputes Resolution
  • Decline to exercise option
  • Legal recourse
  • Document in past performance database

37
Additional Considerations
  • Strict compliance
  • Warranties (FAR 46.7)
  • Commercial non-commercial
  • Express Implied (FAR 46.706)
  • Liquidated damages

38
Unauthorized Commitment (UC)
  • An agreement that is not binding solely because
    the government representative who made it lacked
    the authority to enter into that agreement on
    behalf of the government
  • FAR 1.602-3(a)

39
Ratification
  • The act of approving an unauthorized commitment
    by an official who has the authority to do so
    (e.g., CO)
  • FAR 1.602-3(a)

40
Prevent Ratifications
  • Brief to all personnel (e-mail, Commanders Call,
    etc.)
  • CO is responsible for contracts with all firms
    wanting to sell goods and services to
    installation
  • Designed to protect interests of the Government
  • Make sure vendors know you do not have
    contractual or purchasing authority (if not a CO)
  • Do not give advance contracting information to
    any contractor
  • If action is not ratified, the individual
    responsible for the UC may be held personally
    accountable for restitution to the vendor

41
Exercise 5.3
  • Read the Scenarios Page 5-82 thru 5-84.
  • Working in groups, address the problems and
    develop an appropriate remedy to the situation.
  • Each Table will complete the scenario
    corresponding to their table number
  • 30 minutes

42
5.4 Invoices and Payments
43
Acceptance
  • Performance issues resolved
  • Performance satisfactory/delivery complete
  • SF 1449
  • DD 250

44
Invoices Payment (Handout)
  • Payment Basics
  • Prompt Payment Act
  • Contract Financing Payments
  • Commercial Delivery Payments
  • Commercial Advance Payments
  • Commercial Interim Payments
  • Noncommercial Payment Methods

45
Order of Preference Contract Financing
  • FAR 32.106
  • Private financing
  • Customary contract financing other than loan
    guarantees and certain advance payments (32.113)
  • Loan guarantees
  • Unusual contract financing (32.114) HCA
    approval
  • Advanced payments (see exceptions in 32.404(b))

46
Regulatory Requirements
  • SAP Threshold Unless agency regulations state
    otherwise, contract financing shall not be
    provided for purchases under authority of FAR
    Part 13.
  • Prompt Payment Act FAR 32.9
  • Requires timely payment
  • Standards
  • Commercial Contract Financing
  • Commercial Delivery Payments FAR 32.001
  • Commercial Advanced Payments made before any
    performance
  • Commercial Interim Payments any payment not a
    commercial advance or delivery payment (not
    subject to interest)

47
Noncommercial Payment Methods
  • Advance Payments FAR 32.102(a) advances of
    money by the Government to a prime contractor
    before, in anticipation of, and for the purpose
    of complete performance under one or more
    contracts. Can be made to primes for advancement
    to subcontractors
  • Progress Payments FAR 32.102(b)
  • Performance Based Payments FAR 32.10
    preferred

48
Prompt Payment Act
  • Invoice
  • Interim Payments
  • Government pays interest for late payments
  • CO and COR should make voucher/invoice review and
    approval a priority

49
Payment Policy
DOD FMR, VOL 5, CHAP 33, PARA 3302
  • Law
  • Certifying Officers pecuniarily liable
    (monetary penalty) for erroneous payments
  • DOD Accountable Officials also pecuniarily liable

50
Accounting Officials
GENERAL RESPONSIBILITIES DOD FMR, VOL 5, CHAP 33,
PARA 330301
  • Ensure controls to minimize erroneous payments
  • Comply with regs/policies/procedures
  • Support COs via timely/accurate data to ensure
    proper payments
  • Request advice from CO regarding AO
    responsibilities
  • Timely response to inquiries regarding erroneous
    payments

51
Personal Liability
DOD FMR VOL 5, CHAP 33, PARA 3307
  • ACCOUNTABLE OFFICIALS SHALL BE PECUNIARILY
    LIABLE FOR ERRONEOUS PAYMENTS THAT RESULT FROM
    INFORMATION, DATA, OR SERVICE THEY NEGLIGENTLY
    PROVIDE TO A CERTIFYING OFFICER FOR THE FULL
    AMOUNT OF THE ERRONEOUS PAYMENT UP TO ONE MONTHS
    COMPENSATION.

52
Policy DOD FMR
  • PROVIDES FOR
  • Random pre- post payment reviews by designated
    review officials
  • (Vol 5, Chap 33, Para 3308)

53
Policy FAR Part 32.9
  • Payment due based on receipt of a proper invoice
    satisfactory performance
  • Generally due within 30 days of invoice date or
    government acceptance otherwise interest is due
    contractor
  • Government has 7 days from receipt to notify the
    contractor if invoice is improper
  • Prompt Payment clause is in all contracts

54
Policy -- GSA
  • HOWEVER
  • GSA currently requires your invoices to be
    processed within 5 days (including certification
    by CO)

55
Proper Invoice?
  • Contractor name/address
  • Date
  • Contract/Task Order number
  • Description/Qty/Unit/Extension
  • Shipment no. date of shipment
  • Name/address to remit payment
  • Name/title/phone of person to contact if
    defective invoice
  • Any other info required by contract
  • FAR 32.905(e)

56
Typical Invoice Problems
  • Inflated/unrealistic labor hours
  • Unsupported ODCs (poor description, cant tie to
    specific task)
  • Unsupported travel costs
  • Unauthorized overtime charges
  • Incorrect/unrealistic labor category
  • Management hours disproportionate to worker
    bee hours
  • Duplicate invoice, or wrong invoice
  • Math errors
  • Other pitfalls e.g., competing workload
    demands, contractor UNDERcharges for something

57
Additional Typical Problems
  • Wrong contract/task order number
  • Wrong price (proposed vs negotiated)
  • Wrong CLIN, P/N, S/N
  • No POC for defective invoices
  • No date
  • Incorrect/missing shipment info
  • No remittance address
  • Negotiated prompt pay discounts not offered

58
  • Wide Area Workflow Receipt Acceptance

(Shared Data Warehouse)
59
Collecting Past Performance Information
  • Relevant performance information
  • Fair
  • Narrative accompany rating

60
Using Past Performance Information
  • Award decision
  • Source Selection

61
Exercise 5.4
  • Performance-Based Payments
  • Read pages 5-92 thru 5-97
  • Address the questions on page 5-97 and be
    prepared to brief the class
  • 45 Minutes

62
Role of the COR in Contract Performance Assessment
63
  • Read
  • The
  • Contract!

64
COR/COTR/QAE
  • Duties/Responsibilities
  • Criteria
  • Cancellation of Appointments

65
COR Authority
  • COR has specific delegated authority
  • Source of COR authority is the contracting
    officer per contract
  • Appointment Memorandum
  • (scope and limitations of authority delegated)

66
COR Appointment
  • Separate delegation made for each contract
  • COR must resign in writing
  • COR cannot delegate responsibilities to his or
    her replacement
  • New COR must be appointed by the contracting
    officer in writing

67
DFARS 201.602-2
LIMITATIONS
TASKS
LETTER OF DESIGNATION
AUTHORITY
ADMINISTRATION
68
COR Acceptance
Acknowledge acceptance of the duties by signing
and returning the letter to contracting.
69
Special Agent
CORs can only act in a special transaction or
for a particular purpose or class of work.
70
COR is the eyes and ears of the Contracting
Officer.
Expert in the area of the contracted effort.
Non contracting person assigned duties under the
contract. Has the main role in technical and
monitoring aspects of the SOW/PWS of the
contract. COR may be the certifying officer for
payment of contractors invoices
71
  • COR must
  • Be a Govt. employee
  • Be a technical expert
  • Be qualified by training
  • Be designated in writing
  • Maintain a COR file

72
COR Has a Surveillance Plan Keeps Good Records
  • FILES MUST CONTAIN
  • Copy of the Contract
  • COR Appointment Memorandum
  • Copy of Invoices, DD 250s, SF 1034
  • Contract Modifications
  • Copies of all Correspondence
  • Memorandums for Record of Actions Issues
  • PWS/SOW with attachments
  • Quality Assurance Plan
  • Negative Assessments
  • Weather Reports
  • Retain COR File for 3 Years

73
Once the COR files are closed out, take the
files to the contracting officer for holding in
the official contract file
COR FILES
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