PROJECT MANAGEMENT Project Termination

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PROJECT MANAGEMENTProject Termination
edlund.carl_at_epa.gov
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Key Topics

• Project Completion
• Confirmation with client that objectives met
• File review and correction
• Process considers
• legal,
• technical,
• administrative,
• client,
• your own organizations future

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Key Topics

• Control of Finances
• Ways to ensure payment
• accurate/timely invoices,
• personal contacts,
• discounts for early payment
• Contract terms areas of greatest importance to a
  supplier
• Indemnification,
• Insurance,
• Payment terms

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Key Topics

• Sources
• Private Sector
• Financing
• Public Sector
• Foreign
• Verification of Finances

Why is it important to verify finances?
To avoid a lein on the project or property or
your business!
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Key Topics

• Checklist for Project Management
• AE Contract Provisions
• Deliverables defined
• Responsibilities of Client and Contractor
• Payment
• Termination
• Insurance, Liability, Indemnification
• Timetable

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HOMEWORK 3Preparation of a Proposal

• Situation
• Spilled
• 250 gal H2SO4 ,
• 4,000 gal gasoline
• Recovered 2,000 gal mixed
• Discharged to King River 50 gal?
• In ground 2,2000 gal?
• GAG and SEA unhappy
• ERU needs assessment, cost proposal

ASAP
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HOMEWORK 3Preparation of a Proposal

• To adequately respond you need to
• first know the client, and
• second understand the scope of work
• Critical aspects to selling a proposal
• Timeliness,
• simplicity,
• understanding of scope,
• sensitivity to cost,
• presentation of alternatives,
• unique qualifications

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General Terminology

• Contract
• Agreement between two or more parties written
• Mutually binding
• Legally enforceable

Is it worth a trillion a year? Model for State,
local, private sector
Why study federal government contracting??
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General Terminology

• Acquisition (government term)
• Goods or services obtained through contract
• appropriated
• Acquisition Contracting
• Purchasing (Not the kind of contracts well
  discuss)
• Small (2,500 - 25,000)
• Very Small (lt2,500)

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Federal Contracting Authority

• TWO DRIVING PRINCIPLES
• 1. Stewardship of Appropriated Funds
• Full and open Competition
• 2. Procurement Above Reproach
• Minimize
• Fraud
• Waste
• Abuse

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Federal Contracting Authority

• PL 93-400 Federal Procurement Policy Act
• Goal full and open competition to the extent
  possible
• Use of competitive procedures where practical
• Sealed bids are best
• Competitive proposals if sealed bids are not
  possible
• Non-competitive relationships are least desirable
  e.g. sole source contracts
• Single Uniform regulation Federal Acquisition
  Regulations- FAR

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Federal Acquisition Regulations

• All federal procurements, all agencies
• Maintained by GSA, DoD, NASA, and EPA
• Procurement Authority issued by GSA to each
  agency, subsequent delegations within each

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Federal Acquisition Regulations Different people
you want to get to know

• Contracting Officer (CO)
• Authority to issue and cancel contracts
• Personal signature
• Contracting Specialist (CS)
• Administers the contract.
• Works directly for the CO
• Contracting Officers Technical Representative
  (COTR)
• Evaluates technical specifications and
  deliverables,
• Monitors work progress

Why do these people work in different offices ?
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Federal Acquisition Regulations

• Specifications are for things
• Technical attributes
• Clear language
• Avoid trademark or commercial description
• Statement of Work (SOW) is for services
• Task oriented
• Meaningful measures
• May be ambiguous e.g. research

Performance-Based verses Specifications-Based
Contracts a growing trend ?
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Contract Types

• Sealed Bid Contracts
• FFP - Firm Fixed Price
• Maximum risk for contractor
• Minimum contract administration
• FPE - Fixed Price with Economic Price Adjustments
  
• Contingencies related to economy
• Reduces contractor risk .. but
• FPI - Fixed Price Incentive
• Profit adjustment
• Shared risks/benefits
• Performance incentive

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Contract Types

• Negotiated Contracts
• CPFF - Cost Plus Fixed Fee
• Frequently used for RD and environmental
  assessments
• FF range 5 to 15 percent
• CPIF - Cost Plus Incentive Fee
• Fee based on negotiated formula
• General services use this
• CPAF - Cost Plus Award Fee
• Subjective evaluation of fee
• Partial payment

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Contract Types

• Negotiated Contracts
• T M - Time and Materials
• Frequent for A E and environmental services
• Hourly rates
• Materials at cost
• T M Indefinite Delivery T/M
• Flexibility for scheduling and levels of effort
• Bounds set on agency obligations
• SSC - Sole Source Contracts
• Uniquely qualified contractor .. Unique product
  or service
• Limited component of overall project
• Misery to administer

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Contract Types

• Negotiated Contracts
• CC - Cost Plus Percent of Cost
• A no - no why?
• Letter Contracts
• No bidding/competition at all
• Time of war, national emergency

Q Which form of contracting is most wanted by
contractors, and why?
A Sealed bid FFP! This has the most potential
for profit.
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Balancing Stewardship and Integrity
HIGH
FFP
FPI
FPE
CPFF CPAF CPIF
TM
SSC
INTEGRITY
REPROACH
CC
LOW
HIGH
LOW
STEWARDSHIP
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Soliciting for Contracts

• Commerce Business Daily
• Prime vehicle but other advertising is also done
• www.cbdweb.com
• Types of announcements
• Sources Sought
• Notice of Intent
• Pre-solicitation Notice
• Timing
• 15 days before solicitation
• at least 30 day notice period

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Soliciting for Contracts

• Sealed Bid Process
• Basic
• Two Step
• Negotiated Contracts
• RFP/RFQ

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Bid Protests

• Timing
• w/I 10 days
• Made to
• Awarding Agency
• GAO
• Courts

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SIKES
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SIKES

• HISTORY
• 1940s sand pit mining
• 1950s Girl Scout camp at Tank Lake tragedy.
• 1960s Sikes family homesteads the land
• Sikes enterprises
• deer leases
• dumping

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SIKES

• 1967
• Riverdale Community telegram to LBJ
• Texas Dept of Water Resources issues / retracts
  water permit.
• Sikes dump closed
• 1982
• Floods
• sampling shows widespread toxics

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SIKES

• 1983 SITE ADDED TO NPL
• Sikes family temporarily relocated after fight
• TDWR EPA start the RI/FS
• 1986 RI/FS COMPLETED
• 80,000 cubic yds contaminated soils,
• 80,000 cubic yds contaminated sludges
• 13,000,000 gallons contaminated water

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SIKES

• OPTIONS
• 0.4 M No Action
• 23.4 M L/F sludges and soils on site
• 56.0 M L/F sludges off site, soils on site
• 53.4 M Incinerate only sludges on site
• 111.3 M Incinerate sludges on site L/F soils
  off site
• 92.9 M Incinerate sludges and soils on site

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SIKES

• PUBLIC COMMENT PERIOD 7/30/86 TO 8/20/86
• PUBLIC MEETING 130 PEOPLE 8/7/86
• PRINCIPAL CONCERNS
• Import waste from other sites?
• Killer inversions?
• Test innovative, cost saving, technologies?
• Guarantee permanence?
• Property devaluation?

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SIKES

• Record of Decision (9/86)
• Incinerate soils and sludges on site (est. 93
  million)
• Temporary incinerator, on quickly off quickly.
  Estimated operation 1988 - 1990.
• Only Sikes waste.
• Public fully informed of each step.

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SIKES

• REMEDIAL DESIGN 10/86 TO 10/89
• 139 M allocated 150 of ROD
• 2 step bidding process
• 5 technically qualified contractors
• SOLICITATION 10/89

problem !
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SIKES

• Single bid submitted
• 134 million close, but under, 139 million
  allocated.
• Self insured and bonded
• Extremely competent firm with international
  reputation
• Other qualified bidders
• Lacked insurance
• Did not lodge a protest but were unhappy!

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SIKESDifferent, Conflicting, InterestsPARTY
DESIRE

• Elected Reps
• Agency Leaders
• Community
• State Agency
• Bidding contractor
• Other contractors
• Insurers

• Need results!
• Want results
• Restless _at_ delay
• 10 matching
• Over 500K invested
• Bummed by insurers
• Spooked by newness

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SIKESAS PROJECT MANAGER, SHOULD YOU PROCEED?

• Option A Proceed because
• Fair and square bidding.
• Just about everyone wants results.
• Well get sued if we dont.
• Option B Retract and re-do solicitation
• May be savings in cost then again ..
• Right thing to do
• Well get sued if we dont
• Option C ?
• Partial award? Give to USACE? Move to different
  occupation? Others?

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SIKES

• MARCH 1990 RESOLICITATION
• Phase A- construction of berms, incinerator,
  water treatment, access roads, clearing, etc.
• Phase B- Operation of cleanup equipment, removal.
• SUCCESSFUL RESPONSES
• 4 different firms, joint ventures
• Bids ranged from 92 to 99 million

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SIKES

• OCTOBER ,1990-
• Mobilization to field
• JANUARY, 1992-
• 32 million Phase A completed,
• APRIL, 1992-
• Trial Burn successful, operations started.
• JANUARY, 1995-
• Phase B completed 85 vs 60 million but volume
  was 360,000 vs 160,000 cu yds

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SIKES

• Re-solicitation for Bids
• Delayed project one year
• Complied with FAR
• Saved 24 to 41 million
• Sikes cleanup
• 1 billion pounds of contaminated soil detoxified
• 3 billion pounds of water cleansed
• All for .30 a pound a bargain?

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Socioeconomic Programs

• Small Business
• Set-asides
• Competitiveness demonstration
• Labor Surplus Area Set-aside
• Minority and Woman's Business Enterprise
  MBE/WBE
• Davis-Bacon Act

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AE Contracts

• Special Problems lead to 1972 Brookes Act
• Qualifications Based Selection
• Fair price industry standard
• Announced in CBD
• Panel selection

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Contract Modifications

• Administrative vs Substantive
• Unilateral vs Bilateral
• The Changes Clauses
• Computation and negotiation difficult

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Contract Termination

• Near termination remedies
• stop payment
• reduce price
• assess damages
• Termination for default
• Termination for Convenience

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Ethics in Contracting

• BASIC DRIVING FACTORS
• 1. ABOVE REPROACH
• 2. STEWARDSHIP