F.M. “Fil” Tellez, Sr. Contracts Mgr.NISH National Operations - AbilityOne Program Support and Special Projects

Critical Factors in Contract Administration 1

Greetings from the Great SouthwestAwesomeInspiringBreath-takingChallengingOverwhelmingUnforgivingDauntingTreacherous

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Top Ten Tips1. Its Always About the Relationship!2. READ Your Solicitation/Contract!3. Never Assume!4. Communicate with the Right Authority!5. Document, Document, Document!

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Top Ten Tips 6. Bargain in Good Faith, Be Reasonable and

Be Aware! 7. Require FAIR, EQUITABLE and IMPARTIAL

Treatment! 8. Focus on Issues not Emotions! 9. Know When to Talk and When to Listen!10. Be Responsive and Responsible!

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1 - It’s the RelationshipCommittee for Purchase Federal GovernmentNISHNon Profit Agency

“Cooperative. collaborative and mutually beneficial relationships must exist to fulfill our respective missions to deliver quality services and products and create employment for people with severe disabilities”

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RelationshipCommittee for Purchase

Administer the ProgramEstablish the contract priceAuthorize NPA participation

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RelationshipFederal Government

Contracting OfficerCOR (PM?)COTRQAEOther

“Federal Agencies are our customers; they hold the gold and empower our program. These federal agency “personalities” also administer federal contracts and have an impact on whether we have a successful outcome from the contract relationship.”

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RelationshipFederal Acquisition Regulation, Part 11.102-4  Role of the Acquisition Team.(d) The System will foster cooperative

relationships between the Government and its contractors consistent with its overriding responsibility to the taxpayers.

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RelationshipFederal Acquisition Regulation, Part 11.602-2  Responsibilities.(b) Ensure that contractors receive impartial,

fair, and equitable treatment; and (c) Request and consider the advice of specialists

in audit, law, engineering, information security, transportation, and other fields, as appropriate.

And… seek out NISH and the Committee for Purchase as specialists in AbilityOne Program rules, regulations and policy!

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RelationshipNISHNPA

“NISH and it’s associate NPAs are teammates and partners working towards the common goal of employment for people with severe disabilities while supporting our customer’s mission to provide support services and/or products in fulfilling their respective mission via the contract relationships formed under authority of the AbilityOne Program.”

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RelationshipNISH

Program AdministrativeProject Management“Liaison”

“NISH is a teammate and partner and serves the best interest of the Program accomplishment in support of the NPA and federal government agency need for AbilityOne Program support.”

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RelationshipNISH

Assist Committee Qualify NPAs to Participate in AbilityOne Program Marketing and Sales – Find/Match Education to NPAs and Government Agencies Represent NPAs before Committee Provide Technical Support and Assistance to all

parties participating

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RelationshipNISH

Assist NPAs Qualify for AbilityOne Program Find Viable AbilityOne Projects Develop the FMP Recommendation Comply with Regulatory Requirements Solve Problems Educate Customers and NPA Staff

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RelationshipNISH

Assist Federal Agencies Determine viable contract opportunities for

placement with AbilityOne Program Find qualified NPAs to produce on their contracts Assist in development of the FMP Recommendation Ensure contract compliance and quality

performance outcomes Facilitate problem solving Educate federal agency personnel in AbilityOne

Program rules, regulations and policy

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It’s the RelationshipPrivate Non Profit Agency (NPA)

Business and Rehabilitation Mission“No Money, No Mission!”

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RelationshipNon Profit Agency

Business Technical Price Administrative Regulatory Compliance Customer Satisfaction

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RelationshipNon Profit Agency

Rehabilitation, Technical and Administrative Employee Placement Training/Coaching Productivity Measurement Compliance and Reporting

“NPAs are where the rubber meets the road – you make AbilityOne happen and ensure valued federal agency customers receive quality products and services within budget requirements and to contract standards, terms, conditions and clauses.”

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RelationshipChallenging Business, Rehabilitation,

Technical, Administrative and Compliance Factors

Complex, critical balance Coordination and Relationship between staff

functions Rehab issues transparent to “customer” Fulfill contract requirements with requirements

stated in contract

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“It is the Relationship”“The Acquisition Team is where the rubber meets the road – you all, working together make AbilityOne happen!”

Front Line Supervision Management Tech and Contract Support Federal Personnel

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“It is the Relationship” Know your role, and that of others Read your contract Understand the requirements Seek guidance Be professional and responsible Smile and be supportive Never say NO but determine HOW!

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Acquisition Team Members

FAR BasedAcquisitionTeam

Other Stakeholders?

Process OrientationFederal Federal

GovernmentGovernmentNISHNISHNon Profit AgencyNon Profit AgencyCommittee for

Purchase

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2 - READ Your Solicitation/ContractPrinciples of Contract FormationChanges, REAs and ClaimsSuccess or Failure

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Imperative and Absolute!“Failure to read your solicitation thoroughly may

lead to your acceptance of responsibilities that you didn’t consider in your price proposal. Once your contract is awarded youyou will be held responsible for any obligations and responsibilities contained in the contract … at the fair market price achieved by negotiation - Your Your failure to have read the full solicitation, its terms, failure to have read the full solicitation, its terms, conditions and specification is no viable defense conditions and specification is no viable defense from being held to those accountabilities!from being held to those accountabilities!”

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READ Your Solicitation/ContractPrinciples of Contract Formation

• Offer• Acceptance• Consideration

The SolicitationYour ProposalThe Bargain

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READ Your Solicitation/ContractGuidelines

Federal Acquisition Regulation• Uniform Contract Format• FAR Part 15• Use as an index

15.204-1  Uniform contract format. (a) Contracting officers shall prepare

solicitations and resulting contracts using the uniform contract format outlined in Table 15-1 of this subsection.

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FAR 15.204-1 Uniform Contract Format, Table FAR 15.204-1 Uniform Contract Format, Table 15-115-1

“This format should be the one consistently utilized for negotiated fixed price type contracts envisioned under the AbilityOne Program.”

PR3; J. Price Negotiations - Price negotiations shall be

conducted in a manner consistent with FAR 15.405. E. Fixed Price Contracts - AbilityOne contracts are

generally fixed price contracts subject to the Committee's authority to change prices as market conditions warrant.

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Caveat!There are other formats that you will see utilized

such as SF 1449 formats as ‘commercial item purchase’ formats.

A review of FAR Part 2, definitions reveals that in most cases your service or product does not meet the qualifications of a commercial item.

BUT… if the format is utilized insist that only the special conditions (clauses) listed in Subpart 12.4—Unique Requirements Regarding Terms and Conditions for Commercial Items are contained in your instrument.

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Part 1 The Schedule

Section A Solicitation/contract form

Section B Supplies or services and prices/costs

Section C Description/specifications/statement of work

Section D Packaging and marking

Section E Inspection and acceptance

Section F Deliveries or performance

Section G Contract administration data

Section H Special contract requirements

Uniform Contract Format; FAR Part 15

Part II—Contract Clauses

Section I Contract clauses

Part III—List of Documents, Exhibits, and Other Attachments

Section J List of attachments

Part IV—Representations and Instructions (solicitation)

Section K Representations, certifications, and other statements of offerors or respondents

Section L Instructions, conditions, and notices to offerors or respondents

Section M Evaluation factors for award

Uniform Contract Format; FAR Part 15

READ Your Solicitation/ContractWhat you Agree too is what you’ll be held

Accountable for!Is the solicitation complete ?Are the specifications clear, accurate and up to date ?Are the terms reasonable and enforceable ?Is the requirement doable within budget constraints ?Is “it” clear?Do you understand it?Does it make sense?Can you do it?

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READ Your Solicitation/ContractChanges, REAs and Claims

• Original Baseline – Prove it! Technical Price Other

If you don’t know where you started, you won’t know where you are or where you’ll end up!

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READ Your Solicitation/ContractChanges, REAs and Claims

• Change or Issue in controversy• Submit REA, seek local resolution• If denied, convert to formal Claim• Seek local resolution and settlement• Appeal to Service Board of Contract Appeal if

denied by CO• ????

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3 - Never AssumeClarify AmbiguityGet in Writing from Contracting OfficerProceed Accordingly

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Never AssumeDuty to Seek Clarification

“The duty of an offeror to request the guidance of the contracting officer when a patent ambiguity, obvious omission or drastic conflict is found in the contract language.

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Never AssumeDuty to Seek Clarification

“The offeror’s or contractor’s failure to seek clarification in such circumstances is a valid Government defense to a claim for equitable adjustment because of ambiguous specifications.”

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4 - Communicate OftenProfessionally and with RespectWith the Proper AuthorityConfirm ResponseGet it in writing

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Communicate With the Proper Authority

• Contracting Officer• Contracting Officer’s Representative• Contracting Officer’s Technical Representative• Quality Representative/Inspector

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5 - DocumentIn God We TrustAll Others Bring Data !!!!

Telecom notes Emails Letters Memos

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6 - Bargain in Good Faith and Fair DealingDuty of Good Faith and Fair Dealing

“An implied obligation of the all contracting parties to treat each other fairly during the performance and enforcement of a contract… honesty in the conduct or transaction concerned.”

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Good Faith and Fair DealingGovernments Duty to Cooperate

“An implied duty of a contracting party to cooperate with the other party to facilitate the performance of the contract.”

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7 – Require Fair, Equitable and Impartial TreatmentFAR Part 1.602-2, Responsibility of

Contracting OfficerFairEquitableImpartial

IF you doubt the behavior, question it!

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8 - Issues, Not Emotions!We fail to succeed because;

Don’t read our contracts Lack knowledge of our rights Don’t really know what we want We get emotional Argue irrelevant issues

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Issues, Not Emotions!We fail to succeed because;

We don’t support our case with data, we argue emotions … because! We don’t know our contract, its terms and

conditions Rely on poor counsel

And even then … Don’t press for timely resolution Fail to follow up

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9 - Talking and ListeningKnow when to talk and when to listen

o Silence is golden!o Stop talking once you’ve reached agreement or

made your point or achieved your goal!o Be good listener – knowledge is power and you

hear better when you’re not talking!

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10 – Be Responsive and ResponsibleKnow your deadlines and due datesthen achieve them!

For Proposal Submittal

Pre-proposal conferencePricing inputs

Labor Supplies/Materials/Equipment Other

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Responsive and ResponsibleFor Inspection Findings, Changes and

Modifications

Reclama/Rebuttal/Alternative FindingREAsClaimsAppeals

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Top Ten TipsBenchmarked on industry, federal and

AbilityOne Program experienceLearned over time from success and failure in

product, services delivery, construction and some specialized industries

Simple “discovery” from which you can build your own do’s and don’ts

And of them all, Relationship Management is KEY!

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Maintaining Your Contract

Begin with the end in mind!Know what your supposed to accomplishKnow at what price and budget you’ve agreed to

performTrack your performance to budget

To maintain boundaries for your supervision To know what your expending and why To identify where you may be spending more or less labor To discover if you are making or loosing money To correct inappropriate expenditures To complete your contract on time within budget and

without unauthorized changes

We fail to succeed because;Don’t read our contracts

We are unfamiliar with Federal Procurement rules, regulations, processes and procedures

Lack knowledge of our rights and government responsibilities

We resort to emotions not factsWe make excusesArgue irrelevant issues

2006 Edition Rev 2010

We fail to succeed because;Don’t track performance and price

Can’t respond effectively to negative performance findings

Don’t really know how we’re doing or whether we’re right

Don’t know if we’re making or loosing moneyGet frustratedBlame the government

Questions?Do I have the people ready to do the work?Are my people trained to do the work?Do I have sufficient tools to do the work?Is my supervision ready to manage the work?Am I well trained and knowledgeable

regarding federal contract rules and regulations?

Your answer should be yes to all the above …Your answer should be yes to all the above …Or you have some homework to accomplish!Or you have some homework to accomplish!

Have I read my contract, thoroughly?All parts and sectionThe PWS/Statement of Work/Specification

Do I know what it all means?If any questions, have I asked for

clarifications?From your managementFrom the government

Your answer should be yes to all the above …Your answer should be yes to all the above …Or you have some homework to accomplish!Or you have some homework to accomplish!

Resources AvailableNISHFederal Acquisition Regulations

Full text of clauses in your contractsProvisions, processes, practices and guidance

Code of Federal Regulations – AbilityOne Program

Committee Procedures and PolicyPricing Memorandum Number 3, PricingOperations Memorandum Number 19, DisputesOperations Memorandum Number 21, Subcontracts

Other Important ResourcesFederal Acquisition Regulations

Acquisition Central.govPortal entry to all federal agency rules and regs

DFARS for DoD Agencies All Civilian Agency FAR Supplements

AO1 Program Information, Committee Memoranda, Process and ProceduresAbilityOne.gov

NISH Process and Procedures and InformationNISH.org

“The Government Contracts Reference Book-

A Comprehensive Guide to the Language of Procurement”

Second Edition Authors: Ralph C. Nash,Jr., Steven L.

Schooner, Karen O’Brien Published by: GWU (703) 578-8822

Your Contract as a GuideAbilityOne contracts are sole source

negotiated contractsGenerally they are Firm Fixed PriceThey are priced in accordance with Pricing

Memorandum Number 3 (PR3)PR3 says we use FAR Part 15 as the basis for

negotiating our priceTherefore, the federal agency may have

issued a uniform contract format (UCF) instrument

Part 1 The Schedule

Section A Solicitation/contract form

Section B Supplies or services and prices/costs

Section C Description/specifications/statement of work

Section D Packaging and marking

Section E Inspection and acceptance

Section F Deliveries or performance

Section G Contract administration data

Section H Special contract requirements

Uniform Contract Format; FAR Part 15

Part II—Contract Clauses

Section I Contract clauses

Part III—List of Documents, Exhibits, and Other Attachments

Section J List of attachments

Part IV—Representations and Instructions (solicitation)

Section K Representations, certifications, and other statements of offerors or respondents

Section L Instructions, conditions, and notices to offerors or respondents

Section M Evaluation factors for award

Uniform Contract Format; FAR Part 15

Contract AwardAward is generally a Base Year plus Four

renewable Follow on Year (FOY) PeriodsContract is renewable every yearEach FOY carries same price, etc. as Base Year

unless Government makes changesEvery Five Years we re-establish a New Base Year

AbilityOne contracts are mandatory source AbilityOne contracts are mandatory source contracts which means purchase of product or contracts which means purchase of product or service can only be made from AbilityOne service can only be made from AbilityOne qualified Non Profit Agency!qualified Non Profit Agency!

Now What?Contract Award

Same requirements?No changes?Everything you agreed to?

Post Award ActionsDeliverables

Quality Control Plan Notices to government of Supervisory personnel Other

Contract Management Checklist – Post AwardReports or plans due to governmentApproval processesKey personnel provisions and reportingSubcontract administration (if any)Government quality assurance, inspection and

acceptance provisions and authorized personnelContractor quality control requirementsInvoicing and payment provisionsInsurance and liability requirementsWage rates and required postings

Specific Quality Issues and Payment Invoicing Contract Administration

Inspection and Acceptance provisions and clauses Your Quality Control Plan Their Quality Assurance Surveillance Plan Quality Evaluators AQL

What you and government determined as acceptable performance

Payment terms Instructions for invoice submittal Copies of government acceptance of work (DD 250,

other) Invoice submittal address POC for non-payment issues

Who will you be dealing with?Government contract personnel

Contracting OfficerContract AdministratorContracting Officer’s Representative (COR)Contracting Officer’s Technical Representative

(COTR)Quality Assurance Evaluators (QAE, Inspectors, etc.)

Your NPA contract personnelCommunication Matrix

List of who talks to who at what levels within government and your agency - Good idea!

Labor Law ProvisionsWage Rates and Fringe Benefits

Service Contract Act Davis Bacon ActOther labor law provisions

Make Certain you are following the wage and fringe benefit provision applicable to you contract

Do you have special certificate that enables you to pay commensurate wages based on productivity?

Have you posted the necessary forms where employees can read them?

What Else?For anything you’re not certain of …

Seek support and understanding From written resource materials From your contract From NISH From Training available through NISH

REMEMBER -Top Ten Tips1. Its Always About the Relationship!2. READ Your Solicitation/Contract!3. Never Assume!4. Communicate with the Right Authority!5. Document, Document, Document!

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REMEMBER - Top Ten Tips 6. Bargain in Good Faith, Be Reasonable

and Be Aware! 7. Require FAIR, EQUITABLE and IMPARTIAL

Treatment! 8. Focus on Issues not Emotions! 9. Know When to Talk and When to Listen!10. Be Responsive and Responsible!

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Q&AYour Issues or Concerns

Purchase Orders ? G&A and Allowable Costs ?

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Adios and Good Luck!

F.M. “Fil” Tellez703.626.3108

ftellez@nish.org

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