QUIZ 9

Define and list the two principal objectives of contract administration planning

...

Identify excusable delays in contract administration

...

Identify the policies and procedures pertaining to Quality Assurance

...

Identify the policies and procedures relating to acceptance

...

Identify the policies and procedures relating to ontract quality requirements

...

Identify the policies and procedures relating to warranties

...

Identify the policies and procedures relating to Government contract quality assuranc

...

Identify the process and procedures for preparing for and conducting a post-award conference

...

Select the appropriate action(s) to achieve customer satisfaction using metrics.

...

Acquisition planning, a contract, other related documents,any contractor inquiries

...1. Determine if post award orientation is necessary. 4. Plan the post award orientation conference. 5. Conduct the post award conference report. 6. Participate in post award subcontractor conference (s) (when appropriate) 7. Document the contract file.

A contract and contract with technical and other support personnel

...1. Determine the required level of contact surveillance. 2. Determine what contract administration functions (if any) will be delegated. 3. Delegate contract administration as applicable. 4. Develop a contract administration plan. 5. Identify qualified personnel (as authorized and necessary) to represent the Contracting Officer in administering contract requirements. 6. Notify the contractor of personnel authorized to represent the Contracting Officer in administering contract requirements. Level

Requests and Feedback on Contractor Performance

...A considerable amount of time in administering a contract is dedicated to responding to contractor's request for either an approval or some other Government action. The contracting officer must correctly identify the contract clause (if any) that authorizes the request and appropriate response. There are clauses that contain instructions for the contractor and the Government and specific time restraints for certain actions.

Quality assurance

...A planned and systematic pattern of all actions necessary to provide adequate confidence that adequate technical requirements are established, products and services conform to established technical requirements, and satisfactory performance is achieved.

Determine the Type of Orientation

...A post-award orientation may be conducted in a face-to-face conference, by a letter, or by a teleconference. Any combination of these formats is acceptable. The ACO makes the final choice. Usually a post-award orientation is held as a face-to-face orientation conference when the contractor does not have a clear understanding of the scope of the contract, the technical requirements of the contract or any other rights and obligations of the parties in any area. Generally, a letter can be used as an alternative to a formal post-award conference when only minor details need to be conveyed to the contractor and the contractor has had CO 3301-DL 29 previous experience in producing the items or providing the services, or the procurement is not particularly complex. The letter should identify the Government representative responsible for administering the contract and cite any unusual or significant contract requirements. A teleconference is usually sufficient when there has been good prior experience with the contractor and matters for discussions are relatively straightforward, or there is no anticipation of problems for good reasons. A post-award orientation also may represent a combination of these methods. For instance, there may be an uncomplicated procurement with a new contractor. A letter may be sent to convey a few important points, and then followed up with a telephone conference to establish a personal working relationship.

Quality program

...A program that is developed, planned, and managed to carry out,cost-effectively, all efforts to affect the quality of materials and services from concept exploration and definition through demonstration and validation, engineering and manufacturing development, production and deployment, and operations and support. Testing - Means examining and testing supplies or services (including, whe

Quality audit

...A systematic examination of the acts and decisions with respect to quality, in order to independently verify or evaluate the operational requirements of thequality program or the specification or contract requirement of the product or service.

Conditional acceptance

...Acceptance of supplies or services that do not conform to contract quality requirements, or are otherwise incomplete, that the contractor is required to correct or otherwise complete by a specified date

Reporting Non-responsibility Determinations

...Agencies must report nonresponsibility determinations to the debarment official when there is evidence that the contractor cannot be trusted to perform any work. In particular, the contracting office should report evidence of negative performance collected from other customers of the contractor, a lack of integrity or failure to observe business ethics, and any evidence that the offeror is a front for a debarred or suspended business entity. Include the following in the report: o Description of the performance problem. o Discussion of mitigating or extenuating circumstances. o Indexed file of related documents. o Any known relationships between the contractor and other entities that have had similar problems. o Analysis of the impact that the contractor's performance problems have had on overall cost, delays in obtaining needed supplies or services, mission accomplishment and competition. o Provide any additional data requested by the Debarment official in accordance with agency policies and guidelines. Refer to FAR 9.406-3 and DFARS 209.406

Develop a Contract Administration Plan

...Although the FAR does not require the preparation of a formal contract administration plan, the CO is responsible for ensuring that the parties have complied with all terms and conditions of the contract. A formal contract administration plan is essential when the contract involves large dollar amounts or complex technical requirements. Such contracts typically place many duties and responsibilities on both parties. Such a plan should be implemented immediately after award. The plan should provide for an appropriate level of surveillance or monitoring of contractor performance, and timely and proper performance of the Government's responsibilities. Each agency has its own specific requirement for contract administration plans. Although finalized at contract award, the contract administration plan needs to be a flexible, living document to fulfill its purpose in providing a baseline for project management and scheduling. An effective plan is a simple way of tracking the extent of contract completion, and can be an invaluable tool in your preparation for the post award orientation conference. As contract performance progresses, it may be necessary to shift responsibilities or add tasks that could not have been anticipated at the time of award. Over the life of the contract, therefore, a contract administration plan may require periodic updates or changes.

Rating Past Performance

...As stated in FAR 42.1502, regardless of the date of contract award, at the time the work under the contract is completed, agencies shall prepare an evaluation of contractor performance for each contract in excess of $100,000.1 Exceptions to this are contracts awarded under FAR Subparts 8.6 and 8.7. In addition, interim evaluations should be prepared as specified by the agencies to provide current information for source selection purposes for a contract with a period of performance, including options, exceeding one year. This evaluation is generally for the entity, division, or unit that performed the contract. The content and format of performance evaluations shall be established in accordance with agency procedures and should be tailored to the size, content, and complexity of the contractual requirements

Access and Retention

...As stated in FAR 42.1503, retain copies of the evaluation, contractor response, and review comments (if any). Mark this information with the legend "Source Selection Information." Only release the evaluation to other Government personnel and the contractor whose performance is being evaluated. Past performance information shall not be retained to provide source selection information for longer than three years after completion of contract performance

Contractor Feedback

...As stated in FAR 42.1503, the contractor should be provided copies of the agency evaluation of the performance as soon as practicable after completing the evaluation. The contractor should be allowed at least 30 days to comment on the evaluation. If the parties disagree about the evaluation, refer the evaluation to a level above the contracting office. However, the contracting agency makes the final decision.

Government Policy on Performance Monitoring

...As stated in FAR 46.102, it is a Government-wide policy that requires agencies to ensure that deliverables provided by contractors meet contract requirements, and that procedures are in place for assuring that contract requirements are met before the acceptance of deliverables. Also, no contract precludes the Government from performing appropriate inspection and acceptance measures and from using another agency's inspection and acceptance services when it is more practical or beneficial to the Government.

Functions that cannot be delegated by the PCO

...Award, agree to, or execute a contract. Authorize work outside the scope of the contract. Authorize a constructive change. Obligate, in any way, the payment of money by the Government. Give direction to the contractor, except as provided in the contract, or as modified. Resolve any dispute concerning a question of law or fact arising under the contract. Re-delegate any assigned duties unless specifically authorized to do so. Cause the contractor to incur costs not specifically covered by the contract with the expectation that such costs will be reimbursed by the Government.

General Indicators of Past Performance

...Below are some general indicators of ast performance. o Quality of product or service can be viewed in terms of how well the contractor has complied with contract requirements, and whether it conformed to standards of good workmanship. o Timeliness of performance can be measured in terms of how well the contractor adhered to contract schedules and its responsiveness to technical direction. 1 The DoD has a FAR deviation regarding the evaluation of past performance information on contracts. Agencies are required to comply with the following table and not required to evaluate all contracts in excess of $100,000 (Exceptions under FAR Subparts 8.6 and 8.7 remain in effect). 2 The DoD contract thresholds for PPI collection are based on a DoD class deviation to the FAR and apply to the original face value or, where modifications occur, to the "as-modified" face value of contracts. For "as modified," if a contract's original face value was less than the applicable threshold, but subsequently the contract was modified and the "new" face value is greater than the threshold, then an assessment (or assessments) should be made, starting with the first anniversary that the contract's face value exceeded the threshold. If the contract threshold is expected to exceed the collection threshold by exercise of option, modification or order, it may be advisable to initiate the PPI collection process prior to the value of the contract exceeding the threshold. 3 Only required if there is a disagreement between the assessing official and the contractor. 4 Or equivalent individual responsible for program, project, or task/job order. 5 For contracts under the $5,000,000 threshold, buying activities should continue to accumulate contractor information data as required by service or agency level guidance. (An example of such performance information collection system is "Red/Yellow/Green".) Business Sector Dollar Threshold 2 Reviewing Official 3 Systems (includes new development and major modifications) >$5,000,000 One level above the program manager4 Services >$1,000,000 One level above the assessing official Operations Support Fuels >$5,000,0005 One level above the assessing official Information Technology >$1,000,000 One level above the assessing official Construction >$500,000 One level above the assessing official Architect - Engineering > $25,000 One level above the assessing official Science & Technology All. No threshold. One level above the assessing official CO 3301-DL 33 o Cost control can be evaluated by examining to see if the contractor, among other things, operated at or below budget, submitted reasonably priced change proposals, or provided current, accurate, and complete billings. o Business practices indicate how well the contractor worked with the contracting officer and technical representatives. o Customer satisfaction measures the interface with the ultimate end user of the product or service.

PPI Evaluation and Report Thresholds

...Business Sector Dollar Threshold 2 Reviewing Official 3 Systems (includes new development and major modifications) >$5,000,000 One level above the program manager4 Services >$1,000,000 One level above the assessing official Operations Support Fuels >$5,000,0005 One level above the assessing official Information Technology >$1,000,000 One level above the assessing official Construction >$500,000 One level above the assessing official Architect - Engineering > $25,000 One level above the assessing official Science & Technology All. No threshold. One level above the assessing official

Sample Past Performance Report Comments/Ratings

...Category Comments Quality "Deliverable items exceed quality standards." Timeliness "All scheduled delivery times were met." Cost Control "Cost management excellent - 2% under run." Business Relations "Not responsive to change procedures." Customer Satisfaction "Survey showed over 95% customer satisfaction." Key Personnel "Key personnel remained on the project until contract completion."

Identify Contract Terms and Conditions Related to administration

...Classify and outline all major tasks that arise from the terms and conditions of the contract. The process may be enhanced by dividing it into four parts: 1. Administration preliminaries (e.g., delegations of responsibility and the postaward orientation conference). 2. Contract performance (e.g., monitoring payment provisions). 3. Inspection and acceptance. 4. Post-contract activity (e.g., duties under warranty provisions, contract close-out). After you have reviewed your contract and identified major tasks for your checklist, go through some of the items listed in the following chart of common contract administration functions to see if there are others you wish to include.

Terms and Conditions - Commercial Items

...Commercial Items. The Government must not rely on inspection by the contractor if the contracting office determines that the Government has a need to test what is being acquired before delivery or to pass judgment on the adequacy of the contractor's internal work processes. When required, standard Government clauses specify the type of inspection system that the contractor is to maintain for the performance of the contract. Some of the contract clauses include: o FAR 52.246-1, Contractor Inspection Requirements, relies on the contractor's own internal inspection procedures and industry standards. o FAR 52.246-2, Inspection Supplies—Fixed Price, requires a contractor to establish and maintain an inspection system undefined except that it must be CO 3301-DL 18 acceptable to the Government. This standard clause can be the only inspection clause in a contract, or it can be the foundation upon which other Government inspection specifications are based. It contains the Government's basic rights of inspection. o FAR 52.246-11,

Identify Previous Issues and Problems -

...Consideration must be given to the amount of time and effort that will be necessary to ensure successful contract performance. This depends on such factors as: o Type of contract. o Past experiences with this type of requirement. o Past experience with the contractor. o Type of specifications. o Type of requirement. o Warranty provisions. o Urgency of the requirement. An important source of information for identifying potential problem areas is a contractor's performance history in the contract file.

Post-award Orientation Conference

...Contract administration planning from the PCO and CAO perspective is to ensure that each individual understands his/her roles and duties necessary for successful contract completion. After the contract is awarded, the CAO receives the contract from the PCO and is tasked with establishing a post-award orientation conference to foster this understanding. As stated in FAR 42.501, a postaward orientation aids both the Government and contractor personnel to: o Achieve a clear and mutual understanding of contract requirements. o Identify and resolve potential problems. It is not, however, a substitute for the contractor to fully understanding the work requirements at the time offers are submitted, nor is it to be used to alter the final agreement arrived at in any negotiations leading to contract award. Post-award orientation is encouraged to assist small business, small disadvantaged, and women-owned small business concerns. While cognizant Government or contractor personnel may request the Contracting Officer to arrange a post-award orientation, it is up to the contracting officer to decide whether a post-award orientation, in any form, is necessary. When a post-award orientation is conducted, it should be conducted promptly after the contract award to achieve maximum results. To help you plan for a post-award orientation, use the DD Form 1484 as a checklist. This form will also serve as your documentation to the file when the orientation conference is completed. A list of the forms is found at DFARS 253.303. A planned, CO 3301-DL 27 structured discussion between the Government and the contractor, a post-award orientation focuses on issues, such as: o Understanding the technical aspects of the contract. o Identifying and resolving oversights. o Preventing problems. o Averting misunderstandings. o Determining how to solve problems that may occur later. o Reaching agreement on common issues.

FAR 52.246-1,

...Contractor Inspection Requirements, relies on the contractor's own internal inspection procedures and industry standards

Customer Satisfaction

...Customer satisfaction is often considered the ultimate etric. Was the customer satisfied with the product or service (i.e., cost, schedule, and performance)? If not, there was a breakdown in the acquisition process especially if all the other metrics looked good. Your metric toolbox should include feedback to determine customer satisfaction. Customer feedback can take many forms from formal surveys to telephone calls placed by the contracting officer. As with other metrics, the method of obtaining feedback will depend on the complexity and nature of the acquisition.

Actions to Resolve Disagreements on Key Issues

...Each contractual problem is different, and no single approach can be used to resolve every disagreement that may arise. In general, four steps may be used to resolve points of disagreements on key issues. Step 1 - Fact-Find and Document the contractor's position. If the problem requires joint contractor/Government problem solving, set up a separate meeting with only those who need to be in attendance as soon as possible. Take appropriate action to resolve the problem and seek technical or legal advice when necessary. Step 2 - Select the best solution to the problem and seek agreement on it. Identify if the contracting officer should issue a unilateral modification. This action would be the Government's solution to an impasse with a contractor. If a contract change seems necessary, it must clearly define the extent of proposed change and be implemented promptly. The contracting officer must complete and sign a contract modification (SF30) in all cases. Document the contract file by including in the conference report, as well as all other material, correspondence or follow up actions from the Post-award Orientation in the contract file. In the event of any subsequent disagreements with the contractor, this material can be used to reconstruct facts and events as they occurred. A well-documented contract file will identify and verify the Government's initial position on any performance problems that were anticipated during the orientation or in the early steps of implementation. Step 3 - Provide information on the contract to interested parties. Provide any documentation to members of the contract administration team as well as the contractor when that information affects their role in contract performance. The Contracting Officer also may receive requests for information from other interested parties, such as other companies that have proposed but were evaluated and determined to be unsuccessful offerors. Release of any information is subject to the requirement of the Freedom of Information Act (FOIA). Step 4 - Obtain executed contractual documents, bonds or insurance. Since bonds and certificates of insurance must be executed before performance begins, the deadline for submission should be stated in the contract. It is usually within 10 days after the award. When bonds and certificates are required, request them immediately, normally in the letter accompanying contract award. Reference the contract clause that requires the submission and establish a time for receipt, if the contract does not provide a date.

Inspection

...Examining and testing supplies or services to determine whether they conform to contract requirements (FAR 2.101).

First Article Testing

...First Article Testing (FAT) means testing and evaluating the first article for conformance with specified contract requirements before or in the initial stage of production. The Contracting Officer is also responsible for performing duties related to First Article Testing. In accordance with FAR 9.307, before the contractor sends the first article report to the Government activity accountable for approval at the address designated in the contract, the CAO shall furnish that activity with as much advance notification as is possible of the shipment. The CAO should also advise that activity of the contractual requirements for testing and approval; call attention to the notice requirement in the First Article Testing Clauses, FAR 52.209-3 and FAR 52.209-4; and request that the activity inform the CAO of the completion date for the test or evaluation

Obtaining Past Performance Data

...Generally, the contracting officer or the COR will use metric data as detailed in the contract administrative plan and record narrative information on such matters as the contractor's: 1. Record of conforming to contract requirements and to standards of good workmanship. 2. Record of forecasting and controlling costs. 3. Adherence to contract schedules, including the administrative aspects of performance. 4. History of reasonable and cooperative behavior and commitment to customer satisfaction. 5. Business-like concern in general for the interest of the customer.

Review Other Available Indicators of Past Performance

...Normally, records of past performance within the contracting office will be sufficient for planning efforts. If the contracting office has not had any previous experience with the contractor, the contract professional may want to look for other indicators of past performance. The contract file itself is the best place to look for other indicators. Past performance or responsibility determination data in the contract file may contain information from other Government offices, and/or a contractor's commercial clients. Therefore, it is imperative that contract professionals keep information provided by both Government and nongovernment personnel strictly confidential. According to FAR 42.1503, agency evaluations of contractor performance prepared under this subpart shall be provided to the contractor as soon as practicable after completion of the evaluation. Contractors are given at least 30 days to respond or provide additional information. The completed evaluation shall be presented to Government personnel, and the contractor whose performance is being examined. A copy of the annual or final past performance evaluation shall be provided to the contractor as soon as it is finalized. The Government needs to monitor only timely delivery or performance and inspect the delivered items or work performed. In coordinating a surveillance method for a contract, according to FAR 42.1104, the contract administration office should make use of and rely on the contractor's inspection system, data management system, or production control system. The goal of contract monitoring is to unveil actual or potential default situations and the need for Government action. The contract professional needs to be proactive, and act promptly and carefully to initiate immediate improvements while preserving the Government's right to future remedies available under the contract. Although Government action may supplement─ but not supplant the contractor's own efforts to solve performance problems─ the Contract Professional needs to be aware of what Government action will be required as early as possible.

FAR 52.246-11

...Higher-Level Contract Quality Requirement (Government Specification) requires a contractor to comply with a specific Government inspection system or quality control system or quality program. The Government can only require the contractor to submit data for monitoring purposes as specified in the initial contract. Any required data must be specifically authorized within the schedule, specification, or by a contract clause. Therefore, it is important to determine, upfront, what type of inspection system is required by the contract to decide whether you want to rely solely on it for monitoring a contractor's performance. A contract is basically an instrument that allocates and defines risks and responsibilities between the contracting parties. Its terms and conditions set forth each party's obligations, as well as each party's rights if the other should fail to carry out its obligations. The contract professional should understand how the standard and unique terms and conditions, as stated in the contract, affect the contractor's risks. Once the contract professional can identify the risk and understand what the contractor might do to protect their interest, then the appropriate monitoring level necessary to protect the Government's interests can be established. Select the most appropriate monitoring method(s). Numerous techniques and procedures exist for determining whether satisfactory delivery or contract completion will take place. They include reliance on the contractor's inspection system, 100 percent inspection, sample inspection, inspection by exception, monitoring production or delivery schedules, and monitoring schedules devised by Government personnel to measure contract performance.

Excusable Delays

...If the contractor claims that a pending or actual delay is excusable, investigate and resolve the issue of whether the delay is excusable under the applicable contract clause. For example, for a commercial item under FAR 52.212-4, the contractor is not responsible for delays caused by an occurrence beyond its reasonable control, such as: o Acts of God or the public enemy. o Acts of the Government in either its sovereign or contractual capacity. o Fires. o Floods. o Epidemics. o Excusable Delays. o Quarantine restrictions. o Strikes, unusually severe weather. o Delays of common carriers. If there is a need to stop work while the problem is being resolved, the Contracting Officer will follow the procedures for stop-work orders or suspension of work as discussed in FAR 52.242-14 through FAR 52.242-16.

Feedback on Contractor Performance

...In addition to monitoring the actions of Government officials, the CAO must obtain sufficient data to verify satisfactory performance by the contractor. The COR/COTR must be able to recognize any evidence of potential performance problems by either the contractor or the Government. Daily logs or progress reports required by a contract administration plan or the contract often provide early warning indicators of potential changes, delays, or other problems in contractor performance. Government officials or the contractor may provide reports. The required submission of written data from a contractor must be covered by a contract requirement. Since the information needs of different contracts vary widely, there are no standard FAR clauses addressing content requirements for progress reports. CORs/COTRs may initiate written reports identifying potential or actual delays in performance. They should be advised to provide such reports in sufficient time for necessary action by the contracting office and with a specific recommendation for action. The required submission of written data from a contractor must be covered by a contract. However, some well-timed questions may produce valuable oral information. If the requested information is not simple enough to be answered by a brief question-andanswer session, it probably should have had a contract submission requirement to fulfill that need.

Delegation of Contract Administration

...In assigning a contract for administration by a CAO, the Contracting Office may specifically delegate functions in addition to the 70 normal functions. These additional 11 functions, listed in FAR 42.302, can be performed when and to the magnitude precisely authorized by the contracting office. These functions, unless specifically assigned, cannot be performed by the CAO. The contracting office also may withhold any of the FAR-specified functions when either the Contracting Officer determines the contracting office can better handle the performance of the function(s), or it is required by agency regulations or interagency cross-servicing agreements. Any decision to withhold administrative functions should be made after consulting with the CAO. As stated in DFARS 242.301, the contract professional should coordinate contract administration requirements with the U.S. country team or the commander of the unified or specified command for policy and procedure guidance for administration duties performed outside the United States.

Documenting the File

...In order to track the contractor's performance for later use as past performance data, to record how the contractor and the Government are meeting/not meeting the contract clauses and requirements and to have a record to use in a possible future protest/claim, the contracting officer will document the contract file concerning: 1. Monitoring activities. 2. Evidence of actual or potential performance problems, constructive changes, or other breaches. 3. Any actions taken to resolve potential performance problems, constructive changes, or other breaches.

FAR 52.246-2,

...Inspection Supplies—Fixed Price, requires a contractor to establish and maintain an inspection system undefined except that it must be 18 acceptable to the Government. This standard clause can be the only inspection clause in a contract, or it can be the foundation upon which other Government inspection specifications are based. It contains the Government's basic rights of inspection.

Latent defect

...Means a defect that exists at the time of acceptance but cannot be discovered by a reasonable inspection

Testing

...Means examining and testing supplies or services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether they conform to contract requirements

Monitoring and Documenting Contractor Performance through Metrics

...Metrics are measures used to indicate progress or achievement, and should be considered and developed as part of your contract administrative plan. The variety, level, and quantity of metrics you need to develop for monitoring the contractor's performance will depend on the acquisition. There is no one size that fits all when it comes to metrics. Simple acquisitions may have only a few metrics related to cost, schedule, or performance. The more complex the acquisition, the more complex and numerous the metrics needed to monitor performance. Agency requirements will often dictate specific metrics and their format. Properly administered, metrics can form the documented basis of current contractor performance and establish a baseline for formally rating contractor past performance.

Developing a Metrics Toolbox

...Not all data is a metric. However, sometimes data is just that, data. To be considered a metric, data must be correlated, organized, and useful in determining progress or achievement. A good metric will have the following attributes: o The data elements are available and repeatable. o There is agreement as to what the metric is indicating. o Extended over time, trend analysis can be performed. o The metric drives the right management action. The metrics in your toolbox will change over time depending on the phase of the acquisition and the usefulness of the particular metric in monitoring performance. The metrics in use must be communicated to all stakeholders, such as buying activity, customer, and the contractor.

Evaluate/Rate Past Performance

...Once all the data has been assembled, past performance is evaluated based on the methodology spelled out in the solicitation. Past performance may be rated overall (as a single factor) or there may be several sub factors with different weights. Ratings are not precise, rather they are necessarily subjective. There should be sufficient documentation to support the rating.

Monitoring Requirements

...Performance monitoring not only considers the contractor's performance but it also ensures that Government technical and other support personnel do not authorize the contractor to perform unintended changes to the contract that generally result from either a specific action or a failure to act.

Production Progress Reports

...Production progress reports are generally required unless the work is performed under a Federal Supply Schedule (FSS), a construction contract, or a facilities contract. In FAR 52.242-2, Production Progress Reports, it states that delays in furnishing production reports allow the Contracting Officer to withhold from payment an amount not exceeding $25,000 or 5% of the total contract amount, whichever is less. Some production contracts require a phased schedule for reporting progress. There is no standard format, but these schedules are often characterized by reporting associated with various stages of the production cycle, such as purchasing, tooling, component manufacture and shipping.

Progress Report Reviews and Actions

...Progress reports are long-term monitoring reviews used by the CAO to observe a contractor's performance. The CAO has to review the contractor's progress reports, and then has to provide comments to the contracting officer within four working days. If the report states that the contractor's performance is on-schedule and the CAO agrees, the CAO does not have to add comments. In other cases, the CAO has to include comments and recommend corrective actions. The fact that a monthly progress report is required from the contractor and/or the COR/COTR, does not relieve the contractor of the obligation to report anticipated or actual delays to the COR/COTR or the contracting office as soon as such delays are recognized. Once an initial analysis is made and reported, the contractor does not need to repeat the analysis in regularly scheduled progress reports, but progress toward correction must be tracked if correction was indicated in the analysis.

Reporting Negative Performance Information

...Report evidence of significant or recurring performance problems, such as: o Willful failure to perform in accordance with the terms of one or more contracts. o A history of failure to perform or of unsatisfactory performance of one or more contracts. o Violations of the Drug-Free Workplace Act of 1988. o Intentionally affixing a label bearing a "Made in America" inscription to a product sold in or shipped to the United States, when the product was not made in the United States. o Commission of unfair trade practices.

Research and Development (R&D), Scientific and Technical Reports

...Since the primary purpose of Research and Development (R&D) contracts is to advance scientific and technical knowledge, they represent some unique monitoring problems. The Government must monitor technical progress closely. Therefore, progress reports are often required from the contractor and may include: o Number and names of key personnel working on the project during the reporting period. o Direction of the work. o Negative results of work or experimentation. o Problems encountered. o Efforts taken to resolve problems in terms of costs, schedules, and technical objectives.

Sources of Past Performance Information

...Solicit input for the evaluations from the technical office, contracting office, and where appropriate, end users of the product or service, as stated in FAR 42.15. Information about a contractor's past performance can come from a variety of sources: o Reference checks are accomplished by developing a questionnaire that reflects the evaluation rating system that will be used to evaluate offerors using face-to-face interviews, responses returned by mail, telephone interviews, or a combination of these techniques. o Contractor performance evaluations on previous contracts are obtained from agency files or other Federal agencies. o Quality certifications. o Defense Logistics Agency and Defense Contract Audit Agency databases, state and local government offices, and nongovernmental sources as well.

Tailor the Assignment of Functions and CAO Support

...Some of the Contract Administrator functions may not even be applicable to the contract involved, such as monitoring industrial labor relations matters on a contract for commercial products, or maintaining surveillance of flight operations on a contract that does not involve aircraft. There are also functions that are dependent on events that occur during contract performance. For example, the contracting office may have the responsibility of negotiating supplemental agreements and/or changing contract delivery schedules. However, if no change in contract delivery schedules is required during contract performance, then this function will not be performed. The CAO also has the authority to request supporting contract administration from another CAO for any function that has been assigned by the CO. The CAO can even reassign the contract when another office is in a better position to perform administrative functions. The CO may recall a contract or function previously assigned for administration when warranted by a change in circumstances, and approved by a higher level.

Determine Which Contract Administration Functions Will Be Delegated

...The Contracting Officer is the official authorized to enter into, administer, and terminate contracts. The CO also can make related determinations and findings. A single CO may be responsible for delegating duties to specialized contracting officers as stated below. CO 3301-DL 21 o Termination Contracting Officer (TCO) - The official authorized to perform postaward actions limited to the termination of contracts. o Administrative Contracting Officer (ACO) - The official authorized to perform any post-award contractual action assigned by the CO. Some agencies have set up separate offices called a Contract Administrative Office (CAO) to handle postaward, functions as prescribed by that agency. An Administrative Contracting Officer would be assigned to the CAO. For purposes of clarity, all text references to a "Contracting Officer" refer to the Procurement Contracting Officer (PCO), that is, the CO responsible for all duties, regardless of whether those duties have been delegated to other Contracting Officers. The PCO can be the ACO in a cradle-to-grave situation. The term "cradle-to-grave" simply means the contracting office responsible for the pre-award and award will also be responsible for the administration of the contract. There are some advantages in doing this. For instance, if the same Contract Professionals were involved throughout the contracting process, they would be very familiar with the history of the contract and all of its intricacies. On the other hand, there is the option of having the contract administration done by an Administrative Contracting Officer located at a Contract Administration Office. One advantage of the delegation of administration is that the contracting personnel have an in-depth experience in the administration phase, and have experts to assist in areas such as property administration. However, there are certain functions that cannot be delegated, and must remain the responsibility of the PCO.

Contract Administration Decision

...The Contracting Officer (CO) determines how contract administration will be handled. The CO must determine whether to: o Retain the contract and perform all applicable contract administration functions. o Retain the contract and perform administrative functions with the assistance of other Government personnel. o Assign the contract to a Contract Administration Office (CAO). o Assign the contract to a CAO with specific limitations and/or specific additions.

The Criticality

...The Contracting Officer is required to assign a designator, prior to award, based on the criticality of the requirement for all contracts. Criticality refers to the degree of overall importance that a contract has to the Government and will be indicated on the contract. The criticality designators indicate where to concentrate surveillance efforts. These designators become particularly important when contract administration resources are spread thin. You may choose either "A", "B" or "C". The criterion for each of these designators is shown in the following chart.

Problem Resolution

...The Contracting Officer should attempt to reach an informal resolution before invoking formal procedures, i.e., a cure or show cause notice. The informal remedies available are: 14 o An informal agreement on a corrective resolution. o A memorandum of concern to request a written plan from the contractor for correcting performance, including: Statement of the problem. Need for corrective action. Response time, and Place for contractor to sign acknowledging receipt. A contract modification (with consideration if applicable)

Team Concept

...The Contracting Officer usually heads up the contract administration team. Contract Administrators and Contract Professionals generally assist the Contracting Officer in performing this role. At FAR 2.101, the definition of a contracting officer, "...includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer." The FAR is silent on designating these authorized representatives as Contracting Officer's Representatives (CORs) or Contracting Officer's Technical Representatives (COTRs). However, generally when the contract is complex and various personnel are responsible for specified tasks there is a COR assigned to the contract. It also is silent on how technical and non-technical representatives are to be addressed, as well as when or how they should be officially designated. The result is that these issues are covered by individual agency supplements to the FAR, and generally reflect organizational structure. The Contracting Officer's Representative (COR), also known in some agencies as the Contracting Officer's Technical Representative (COTR), serves as the eyes and ears of the CO and usually does not have contracting authority. A COR is appointed by the PCO via a letter that contains instructions and outlines specific responsibilities in relation to the contractual document. Usually, this occurs when contract administration functions are retained and not assigned to a CAO, but Contracting Officer's follow agency's regulations. The COR, as defined by DFARS 202.101, is the individual that the contracting officer has designated and authorized to perform specific technical or administrative functions. A COR/COTR is usually a person with technical expertise in the area of the contracted effort that possesses the necessary background to monitor technical aspects of contract performance. Typical primary responsibilities of a COR/COTR include: o Monitoring performance. o Evaluating work as it progresses. o Exercising appropriate technical direction within the scope of the contract. o Inspecting and accepting completed work for the Government. The roles and authorities of these team players depend on the size of the Government organization and the complexity of the contract. Some typical responsibilities of key contract administration personnel are: o Contracting Officer - The contracting officer is principally responsible for the existing business relationship between the Government and a contractor including analyzing costs and interpreting and implementing contractual terms and conditions. o Project Inspectors - Project inspectors can report to a Contract Administrator, Contracting Officer, or COR/COTR depending on the contract administration plan for each project. Their responsibilities include monitoring and inspection duties, such as reviewing the contractor's progress reports, inspecting all work performed by the contractor for contract compliance, maintaining a list of subcontractors on the project, and if required, submitting periodic or daily reports to the contracting officer or COR/COTR. CO 3301-DL 26 Although they may not be specifically designated, the Contracting Officer may request that other Government officials become involved in contract administration functions as necessary. The following list of individuals may provide input as requested and may be available to perform various tasks. o Program or requiring activity personnel. o Administrative support personnel. o Legal counsel. o Cost and price analysts. o Quality assurance specialists. o Property control administrators o Small Business Administration. As mentioned previously, the delegation of contract administration responsibilities to key team members should be made in writing. While signed by the Contracting Officer, the designee should countersign the letter of delegation and a copy of the completed letter should be placed in the contract file. When a contract is assigned to DCMA for administration, a copy of the contract—agency-specific provisions or clauses—and other related documentation is provided to the ACO.

Contract Non-conformance

...The Government has the absolute right to insist uponstrict adherence to the contractual requirements. No matter how slight a defect, the Government is entitled to reject an item if it does not conform to all the specifications, as stated in the contract. Normally, the Government will reject a product that does not conform to the contract requirements when that nonconformance adversely affects safety, health, reliability, durability, performance, interchangeability, or any other basic objective of the requirement. The contracting officer shall ordinarily reject supplies/services when nonconformance is critical or major. However, there may be circumstances when acceptance of such non-conformity is in the best interests of the Government. Any time a nonconforming supply or service is being considered for acceptance, approval must be authorized by the requiring activity (customer). These circumstances include reasons of economy or urgency. As stated in FAR 46.407, determinations of non-conformance will be based upon: o Advice from the technical activity that it is safe and will perform its intended purpose. o Information regarding nature and extent of the nonconformance. o A contract adjustment. The contracting officer shall obtain concurrence of the responsible technical activity and the responsible health official when health factors are involved. The contracting officer also should hold periodic site meetings with requiring activity and end users to obtain, as well as provide, pertinent information on a contract's status. These meetings help foster a team approach to contract administration. Periodic meetings Categories Characteristics Critical Non-conformance o A nonconformance that is likely to result in hazardous or unsafe conditions for individuals using, maintaining, or depending upon the supplies or services. o Or is likely to prevent performance of a vital agency mission. Major Non-conformance o A non-conformance, other than critical, that is likely to result in failure of the supplies or services. o Or to reduce materially the usability of the supplies or services for their intended purpose. Minor Non-conformance o A non-conformance that is not likely to reduce materially the usability of the supplies or services for their intended purpose, o Or is a departure from established standards having little bearing on the effective use or operation of the supplies or services. CO 3301-DL 13 can be held onsite with the contractor and Government technical personnel who have contract administration responsibility. The goal is not only to identify potential change situations, but also to obtain monitoring data through observations. Onsite meetings allow the Government and contractor personnel to identify, as well as resolve, technical problems at the operating level.

Acceptance

...The act of an authorized representative of the Government by which the Government assumes ownership of existing identified supplies or approves specific services rendered as partial or complete performance of a contract.

Post-award Conference Report

...The chairperson is responsible for preparing the report for the post-award orientation conference that serves as documentation for the contract file or the post-award conference report. When documenting this information in the report, any convenient format may be used, providing it contains all the information necessary to document the events of the meeting. The contracting officer, the COR/COTR, the contractor, and others as appropriate, should receive copies of the report. A copy should be included in the contract file.

Quality

...The composite of material attributes, including performance features and characteristics of a product or service, to satisfy a given need.

FAR Part 8 Required Sources of Supplies and Services

...The contracting officer must resolve problems resulting from the shipment, receiving, inspection, and acceptance of deliverables from FAR 8 sources. These sources include: o Federal Supply Schedule contractors. o Federal Prison Industries, Inc. o Javits-Wagner-O'Day Act (JWOD) participating nonprofit agencies. In solving issues involving FAR 8 sources, the contracting office will follow the procedures in FAR Part 8 as listed below: o Federal Supply Schedule item inspection and acceptance (FAR 8.405-3). o Disputes regarding price, quality, character, or suitability of supplies produced by Federal Prison Industries, Inc. (FAR 8.605(c). o JWOD agency compliance with orders (FAR 8.705-4). o JWOD agency shipping (FAR 8.708). o JWOD agency quality of merchandise (FAR 8.710). o Quality complaints about JWOD supplies or services (FAR 8.711). o Specification changes for JWOD items (FAR 8.712). o JWOD agency addresses (FAR 8.714).

Review the Contractor's Performance History

...The data included in the contractor's past performance file is considered confidential and not available to non- Government personnel. Such files should include the following information: o Past or previous contracts awarded and dollar amounts. o Items/services purchased. o Key personnel involved with the contract. o Delivery/performance results, and o Contractor-provided past performance information. The Contractor's Performance History file represents a history of the contractor's performance over a period of time on individual contracts, if one exists, plus other information on the contractor's past performance from other sources. This information may be provided by both Government and non-Government sources. If the Contracting Office has had previous experience with the contractor, past performance problem areas would be documented within this file. These areas will CO 3301-DL 20 require special attention on a current contract to ensure past performance deficiencies do not continue and are not demonstrated in future work. Deficiencies in a contractor's performance could include: o Missed delivery dates. o Shortfalls in technical performance capabilities. o Financial difficulties.

Recording and Sharing Information -

...The following are some general procedures for recording and sharing of past performance information. The agency shall have a system: CO 3301-DL 35 o Evaluations shall be provided to the contractor as soon a practicable after completion of the evaluation. o Data is classified "source selection information". o Departments and agencies shall share information with other agencies and departments when requested to support future award decisions.

Determine Potential Impact -

...The key to effective, innovative problem-solving techniques is not merely to search for textbook or regulatory solutions. Proactive problem-solving techniques involve: o Careful thought. o A sense of practicality. o A positive approach (whenever possible). The contracting officer should consult regulatory guidance to ascertain what may be required as a function of contractual terms and conditions. A performance problem is any known, unknown, or predictable situation that may endanger or disrupt the efficient execution of a contract's terms and conditions, regardless of whether the situation was or may be caused by the contractor, the Government, or both. When a performance problem occurs, the potential impact on cost, delivery, and other requirements must be determined. When an actual or potential performance problem is identified and it is not just a simple matter of clarifying a contract's requirement, a determination must be made concerning the problem's significance. The overriding issue is the extent of damage the Government will incur if the problem is not resolved. The amount of time and effort required to resolve the problem has a direct relationship to the problem's significance to the end-user's requirements. Factors that should be considered are: o Delivery. o Price. o Quantity. o Quality. When a serious problem surfaces, one of the first issues to consider is whether the contractor should continue performance. From the evidence gathered, the contracting officer should be able to determine the seriousness of the problem, in addition to the amount of time correction of the problem will take. Another consideration the Contracting Officer should take into account is whether it will be more costly to the Government to pay additional money and suspend/stop the work until the correction is completed, or pay for the correction to be made later.

Acceptance

...The place of acceptance is specified in the contract, as stated in FAR 46.503. If the quality assurance: If QA Then acceptance is ordinarily at Occurs at source of origin Source Occurs at destination Destination There may be occasions when the Government does not inspect and accept the supplies and/or services in a timely manner. In such instances, implied acceptance has occurred. In other words, implied acceptance occurs when the Government fails to notify the contractor of its rejection within a reasonable time after delivery or completion. The length of time that is reasonable depends upon the nature of the supplies, the difficulty of inspection, and the impact of the delay upon the contractor. Acceptance also is conditioned upon latent and/or patent defects. The following definitions are provided: o Latent defects are defects that existed at the time of Government acceptance but could not be discovered by a reasonable inspection (FAR 2.101). o Patent defects are defects that existed at the time of acceptance and could have been discovered by a reasonable inspection (FAR 46.101). Supplies and/or services should not be accepted when they do not conform in all aspects of the contract requirement. FAR 46.101 states that non-conforming supplies or services can be classified in the three categories below: CO 3301-DL 12 Contract Non-conformance - The Government has the absolute right to insist upon strict adherence to the contractual requirements. No matter how slight a defect, the Government is entitled to reject an item if it does not conform to all the specifications, as stated in the contract. Normally, the Government will reject a product that does not conform to the contract requirements when that nonconformance adversely affects safety, health, reliability, durability, performance, interchangeability, or any other basic objective of the requirement. The contracting officer shall ordinarily reject supplies/services when nonconformance is critical or major. However, there may be circumstances when acceptance of such non-conformity is in the best interests of the Government. Any time a nonconforming supply or service is being considered for acceptance, approval must be authorized by the requiring activity (customer). These circumstances include reasons of economy or urgency. As stated in FAR 46.407, determinations of non-conformance will be based upon: o Advice from the technical activity that it is safe and will perform its intended purpose. o Information regarding nature and extent of the nonconformance. o A contract adjustment. The contracting officer shall obtain concurrence of the responsible technical activity and the responsible health official when health factors are involved. The contracting officer also should hold periodic site meetings with requiring activity and end users to obtain, as well as provide, pertinent information on a contract's status. These meetings help foster a team approach to contract administration. Periodic meetings

Contractor Performance Report

...The sample contractor performance report suggests that each rating area be assigned one of six ratings. Agencies may develop their own. Rating Score Sample Statement Unsatisfactory 0 Nonconformance; control problems compromised contract completion. Poor 1 Responses to administrative requirements were marginally effective. Fair 2 Excessive work-around required to meet schedule. Good 3 Approach to service and technical issues were timely and adequate. Excellent 4 No quality, cost control or administrative problems. Excellent plus + Exceptional performance in all rated areas. (Excellent plus, or its equivalent, should be reserved for truly exceptional actions.)

Inspection

...The specific inspection clause in the contract contains requirements for the contractor based upon the approval of the Government. There are four basic types of inspection requirements. 1. Government Reliance on Inspection by the Contractor (Non-commercial). FAR 52.246-1, Contractor Inspection Requirements, is the standard clause used to identify this quality level. The clause is required for use for supplies or services when the contract amount does not exceed the simplified acquisition threshold, unless the contracting officer decides that some form of Government inspection and testing is necessary, per FAR 46.301. The clause does allow some specialized Government inspection and testing, but relies on the contractor for overall inspection. 2. Government Reliance on Inspection by the Contractor (Commercial). FAR 52.212-4, Contract Terms and Conditions-Commercial Items, includes inspection and acceptance for commercial items/supplies. It states that the contractor will only tender those items or services that conform to the requirements of the contract. It further elaborates that the Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. 3. Standard Inspection Requirement. The standard inspection clause, FAR 52.246-2, Inspection of Supplies—Fixed-Price, requires that the contractor establish and maintain an inspection system not otherwise defined, except that it must be CO 3301-DL 7 acceptable to the Government. The standard inspection clause can be the only inspection clause in a contract, or it can be the foundation for other Government inspection specifications. The FAR specifies other clauses for use with different contract types and in specific situations. With minor adjustments in wording for contract type and applications, these are basically the same as the standard inspection clause. 4. Higher-Level Quality Control Requirement. FAR 52.246-11, Higher-Level Contract Quality Requirement (Government Specification), is the clause used when the technical requirements of a contract mandate closer control of work processes or attention to such factors as planning. This type of clause requires the contractor to comply with Government inspection or quality assurance procedures, if such are described in the contract. An example of a higher-level quality control standard is ISO 9000, as stated in FAR 46.202-4.

Contract Administration Planning

...The two principal objectives of contract administration planning are: 1. To establish a system that reinforces the performance of both parties' (both buyer and seller) responsibilities. 2. To provide means for the early recognition of performance problems either before or when they occur. How the contract will be administered is an acquisition planning phase consideration, with the finalization of a plan occurring after the contract has been awarded. The results of contract planning are reflected in the contract administration plan. Not all contracts require a formal contract administration plan. The requirements for contract administration plans are based on individual agency's policies and procedures. For commercial items or services, little contract administration will be needed, and therefore, the plan should be simple and straightforward. Large and complex acquisitions and non commercial contracts will require more detailed plans, and contract administration will require a considerable effort by both the Government and the contractor. The specific nature and extent of contract administration varies from contract to contract. It can range from the minimum acceptance of a delivery and payment to the contractor, to extensive involvement by program, audit and procurement personnel throughout the contract term. Factors influencing the degree of contract administration include: o The nature of the work. o Type of contract awarded. o The experience and commitment of the personnel involved. Failure to read and understand a contract frequently results in contract administration problems. When contract administration monitoring or surveillance systems are planned, they must be designed to ensure that the Government and a contractor can live up to their promises and fulfill responsibilities. The primary concern of the contract professional during contract planning is avoiding problems and setting up systems to mitigate the risk to both the Government and the contractor when problems surface. The key to effective contract management is a flexible contract administration plan. The steps in planning for contract administration are:

Government contract quality assurance

...The various functions, including inspection, performed by the Government to determine whether a contractor has fulfilled the contract obligations pertaining to quality and quantity.

Reference

...There is no universal format that must be followed in preparing a contract administration plan. At a minimum, it should cover all issues necessary to ensure that all parties understand their roles and suspense dates for assigned tasks. It should be kept as simple and precise as possible. A sample format is shown below, listing possible tasks included in a contract administration plan (if applicable).

International Organization for Standardization (ISO) 9000

...There may be acontract requirement for the contractor to adhere to ISO 9000 for its quality control. The CAO must ensure that the COR/COTR is familiar with ISO 9000 relative to any requests and/or approvals that may be required. ISO 9000 is a method for ensuring quality control that was founded in 1946 by the International Organization for Standardization (ISO). In order to meet the trend of increasing quality expectations worldwide, American National Standards Institute (ANSI) approved in 1987—and revised in August 1994, a series of quality management and quality assurance standards: Q9000-9004. The ISO 9000 and Q9000 standards provide guidelines for selection and use of the remaining standards. The ISO 9004 standard applies to internal quality management and ISO 9001, 9002, and 9003 apply to external quality assurance. In some agencies, the ISO 9000 is used in lieu of agency standards, (i.e., DoD allows the use of ISO 9000 for new contracts and follow on efforts in lieu of MIL-I/Q standards). The intent is to allow contractors maximum flexibility in establishing efficient and effective quality programs that meet contractual requirements. In order for a company to become ISO certified, it must go through the registration process of application, document review, assessment, registration, and surveillance. A company's quality system will be evaluated for conformance to one of the ISO standards (ISO 9001, ISO 9002, or ISO 9003) by a quality system registrar who is an accredited, independent third party. In the United States, registrars are generally accredited by the Registrar Accreditation Board (RAB), a subsidiary of the American Society for Quality Control (ASQC). Once approved, the registration is generally valid for three years. Periodic surveillance audits are performed to ensure continued compliance with the quality system.

Typical Contract Administration Plan Format

...Title of the contract, related identifiers, and criticality designator. Identity of the contractor and key contractor personnel. Location of files on the contract and the contractor. Brief description of the work to be performed. Place of performance and/or delivery points. Reporting requirements. The contractor's milestones for such critical events as: - First article testing and reporting. - Performance or delivery. - Submission of progress reports. - Submission of invoices/vouchers and other data related to payment. Identity of the CO's Representative (COR/COTR). Tasks to be performed by Government personnel and milestones for each task for such functions as: - Monitoring the contractor's quality assurance program. - Furnishing Government property and monitoring its use. - Reviewing and responding to contractor reports/requests. - Receiving, inspecting, and accepting the work. - Certifying costs incurred or physical progress for payment purposes. - Monitoring compliance with the small business subcontracting plan. Tasks delegated to each COR/COTR (including any limits on their authority). Potential problem areas.

Performance Monitoring Terms

...Under a contract, both parties are obligated to perform in accordance with the terms and conditions as stated in the contract. Not all contracts, however, are performed according to their terms and conditions or within required time frames. Poor performance or late deliveries may cause costly delays to the Government. Thus, the Government monitors contract performance to ensure that the required supplies or services are delivered on time.

Planning and Conducting a Post-award Conference

...When conducting a conference, the contracting officer is responsible for: o Establishing the time and place of the conference. The conference should be held as soon as possible after contract award. o Preparing the agenda, when necessary. o Providing a copy of the agenda to the contractor and obtaining a response. o Notifying the appropriate Government representatives who will have a significant role interacting with the contractor during performance of the contract and the contractor. o Designating or acting as the chairperson for the orientation conference. o Unless a contract change is contemplated, the chairperson shall emphasize that the contract remains unchanged, unless a modification is issued reflecting such a change. o Conducting a preliminary meeting of Government personnel. o It may be useful to hold a preliminary meeting with appropriate Government personnel to ensure that the Government's expectations are clearly expressed and understood. The preliminary meeting will also establish the methodology for handling potential problems that are identified. The contracting officer must make all final decisions affecting contract terms and conditions.

Level of Contract Surveillance

...When the Contracting Office receives a contract for administration, the contract professional first reviews the contract file. To familiarize yourself with the contract clauses and requirements, your first step in contract administration is to review the pre-award file documentation, especially when another contracting office awarded the contract. For instance, there may be questions regarding the interpretation of an agency specific contract clause or the minutes from the preproposal meeting that may include some pertinent information regarding specific requirements. Some other contract file areas of prime importance are: o The assignment of contract administration functions. o Criticality designator and security requirements. o Production surveillance requirements and reporting. o Supporting contract administration requirements. o Other special contract requirements (when applicable). After completing a review of the contract file, all critical areas bearing on performance and monitoring should be identified. With this knowledge, the contracting professional can determine how critical the requirement is to the Government and how much time and effort are needed to ensure successful contract administration. CO 3301-DL 17 The contractor is responsible for timely contract performance. The Government will maintain surveillance of contractor performance as necessary to protect its interest. When the contracting office retains a contract for administration, the Contracting Officer administering the contract determines the extent of surveillance. To determine the extent of performance monitoring, the Contracting Officer will: 1. Meet with the requiring activity to discuss performance monitoring. The Contracting Officer should meet with the requiring activity to discuss requirements for contract administration. This discussion should include sharing any acquisition history concerning the contractor and the required supplies or services. The contract professional will focus the discussion regarding contract monitoring on the requiring activity's priorities, ensure the Government is working as a team, and foster understanding of the priorities and potential problem areas. 2. Assess factors that indicate the appropriate monitoring level. The Contract Administration Office will determine the monitoring level. Many factors, as stated in FAR 42.1104, are involved in determining how much monitoring is necessary for the contract. Some of these factors to consider are the criticality of the requirement as assigned by the Contracting Officer, the contract performance schedule and the contractors' history of contract performance. Most customary commercial practices may not require contract administration in the acquisition of a commercial item. However, the Government reserves the right to inspect or test the commercial item as tendered for acceptance and to require its repair or replacement (or re-performance if a service) at no increase in contract price. When acquiring commercial items, the Government relies on the contractor's existing quality assurance systems as a substitute for Government inspection and testing before delivery, unless customary market practices for what is being acquired include in-process inspection. If such inspection is customary, the Government's inspection must be consistent with commercial practices. However, the Government will never waive its right to inspect and accept an item if it will prejudice its other rights under the acceptance paragraph in FAR 52.212-4

Determining the Need

...With the factors in FAR 42.502 in mind, the Contract Administrator must identify and review specific key contract requirements and milestones. These requirements and milestones most likely have been identified in the contract administration plan. These requirements and milestones have been pulled from the Statement of Work, requirements documents, source selection information if applicable, purchase request and other memoranda and information in the file. The success of a post-award conference rests on the assessment by the Contract Administrator to identify key issues/concerns that could possibly affect contract performance. Hence, the contract administration plan is quite important in identifying possible problems. PostCO 3301-DL 28 award orientations are most vital when potential risks to the contractor or the Government has not been addressed within the contract itself. A post-award conference identifies these risks and considers ways of reducing anticipated problems during contract performance. Some common questions to ask in determining the need for a post-award conference include: o Is this the contractor's first Government contract? o Has the contractor had little or no previous experience with this type of product or service? o If the contractor has had previous Government contracts, were an unusual number of problems associated with them? o Is any aspect of this contract urgent or critical to the Government? o Does the contract type require a relatively high degree of administration? There may be a need for a general briefing on one or more aspects of the contract administration. The post-award goals of any contract are to assure that supplies or services are: o Delivered or performed when and where specified in the contract. o Acceptable in terms of conforming to the contract's specification or statement of work. o Furnished in compliance with other terms and conditions of the contract. Compliance with other terms and conditions includes requirements, such as: o Security classifications and requirements. o Record-retention requirements. o Service contract act requirements. o Federal and state labor requirements. o Federal policies on nondiscrimination because of age. When the decision is made to hold a conference or conduct some other form of a post-award orientation, there must be additional documentation included in the contract file.

Contract administration planning

...is an important process and must be performed by the ACO once the contract is assigned to CAO. It involves setting up systems and procedures to ensure compliance with a contract's terms and conditions during performance. The goal of the contract administration planning is to identify: 1. What must be done. 2. When it must take place. 3. Who must do it. 4. How it is to be accomplished. 5. Where it is to be accomplished. After the contract administration planning is completed, you should start preparing for the post-award meeting.

Critical nonconformance

...means a nonconformance that is likely to result in hazardous or unsafe conditions for individual using, maintaining, or depending upon the supplies or services; or is likely to prevent performance of a vital agency mission.

Minor nonconformance

...means a nonconformance that is not likely to materially reduce the usability of the supplies or services for their intended purpose, or is a departure from established standards having little bearing on the effective use or operation of the supplies or services.

Major nonconformance

...means a nonconformance, other than critical, that is likely to result in failure of the supplies or services, or to materially reduce the usability of the supplies or services for their intended purpose.

Off-the-shelf item

...means an item produced and placed in stock by a contractor, or stocked by a distributor, before receiving orders or contracts for its sale. The item may be commercial or produced to military or Federal specifications or description.

Patent defect

...means any defect which exists at the time of acceptance and is not a latent defect. Quality - The composite of material attributes, including performance features and characteristics of

Contract quality requirements

...technical requirements in the contract relating to the quality of the product or service and those contract clauses prescribing inspection;, and other quality controls incumbent on the contractor, to assure that the product or service conforms to the contractual requirements.

Given a contracting scenario, evaluate contractor performance.

h

Identify administration roles and responsibilities including those of the Administrative Contracting Officer (ACO), and the procedures for contractmonitoring and acceptance

h

Breaches of Contract

identification of performance problems. Various problems can occur and some of these problems involve one party potentially breaking a promise, technically referred to as a breach. A breach of contract is a failure, without legal excuse, to perform any promise that forms the whole or part of a contract. A breach occurs when: o A party to a contract fails to perform, either in whole or in part. o Gives notice beforehand that it will not perform the contract when the time for performance arrives (constructive breach). o A party makes performance impossible for itself or the other party. Every breach of contract gives the injured party the right to pursue and collect damages. The party harmed by a breach may sometimes, in addition to pursuing and collecting damages, be excused from its performance responsibilities. The Government can be guilty of a breach when it issues a unilateral change to a contract that is outside the scope of the contract or fails to disclose pertinent site information for onsite work. The contractor can be guilty of a breach when it abandons contract performance or commits a fraudulent act in connection with a contract. To avoid breach of contract, the contracting officer should: o Verify and record evidence of actual or potential performance problems, constructive changes, or other breaches by first correctly identifying the terms and conditions at issue, if any. o Contact the contractor to obtain an understanding of the problem, and only contact those individuals necessary to verify evidence. o Make sure the information provided identifies both the symptoms and causes of any potential problems. o Identify and obtain corrections to any Government report (progress reports, inspection reports, etc.) and inform the requiring activity. There may be a need to conduct fact-finding with the officials involved in a problem to identify its symptoms and cause. Methods the Contracting Officer may use to gather these facts include: o Discussions with the contractor. o Personal observations at the work site. o Discussions with a COR/COTR. o Discussions with quality assurance personnel. In order to verify and document evidence of actual or potential performance problems, constructive changes, or other breaches, the Contracting Officer will perform fact-finding as stated above. CO 3301-DL 11 Information from the COR/COTR and the quality assurance personnel provide valuable indicators of any actual or potential performance problems and/or constructive changes. The data supporting the inspection and acceptance methods utilized in the contract are provided in respective reports, (i.e., inspection, acceptance, scheduling, and approval submittals).