F.M. Fil Tellez, Sr. Contracts Mgr.

NISH National Operations - AbilityOne Program Support and Special Projects

Critical Factors in Contract Administration

Greetings from the Great Southwest

Awesome Inspiring Breath-taking Challenging Overwhelming Unforgiving Daunting Treacherous
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Top Ten Tips

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

Critical Factors in Contract Administration

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!

Critical Factors in Contract Administration

1 - Its the Relationship

Committee for Purchase
Federal Government NISH Non 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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Relationship
Committee for Purchase Administer the Program Establish the contract price Authorize NPA participation

Critical Factors in Contract Administration

Relationship
Federal Government Contracting Officer COR (PM?) COTR QAE Other
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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Relationship
Federal Acquisition Regulation, Part 1

1.102-4 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.

Critical Factors in Contract Administration

Relationship
Federal Acquisition Regulation, Part 1

1.602-2 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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Relationship
NISH
NPA
NISH and its associate NPAs are teammates and partners working towards the common goal of employment for people with severe disabilities while supporting our customers 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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Relationship
NISH Program Administrative Project 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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Relationship
NISH 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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Relationship
NISH 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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Relationship
NISH 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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Its the Relationship

Private Non Profit Agency (NPA) Business and Rehabilitation Mission No Money, No Mission!

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Relationship
Non Profit Agency Business

Technical Price Administrative Regulatory Compliance Customer Satisfaction

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Relationship
Non 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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Relationship
Challenging 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 Based Acquisition Team
Fed Agency

NISH Region

AO1

Other Stakeholders?
NPA

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Process Orientation
Federal Government

NISH
Non Profit Agency Committee for Purchase
Federal Government

NISH as CNA

Non Profit Agency

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2 - READ Your Solicitation/Contract

Principles of Contract Formation
Changes, REAs and Claims Success or Failure

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 Imperative and Absolute!

Failure to read your solicitation thoroughly may lead to your acceptance of responsibilities that you didnt consider in your price proposal. Once your contract is awarded you will be held responsible for any obligations and responsibilities contained in the contract at the fair market price achieved by negotiation - Your failure to have read the full solicitation, its terms, conditions and specification is no viable defense from being held to those accountabilities!
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READ Your Solicitation/Contract

Principles of Contract Formation Offer Acceptance Consideration
The Solicitation Your Proposal

The Bargain

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READ Your Solicitation/Contract

Guidelines 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 15-1 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 12.4Unique Requirements Regarding Terms and Conditions for Commercial Items are contained in your instrument.

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Uniform Contract Format; FAR Part 15

Part 1 Section A Section B Section C Section D The Schedule Solicitation/contract form Supplies or services and prices/costs Description/specifications/statement of work Packaging and marking

Section E
Section F Section G

Inspection and acceptance

Deliveries or performance Contract administration data

Section H

Special contract requirements

Uniform Contract Format; FAR Part 15

Part IIContract Clauses Section I Contract clauses

Part IIIList of Documents, Exhibits, and Other Attachments Section J List of attachments

Part IVRepresentations and Instructions (solicitation)

Section K Representations, certifications, and other statements of offerors or respondents Instructions, conditions, and notices to offerors or respondents Evaluation factors for award

Section L

Section M

READ Your Solicitation/Contract

What you Agree too is what youll 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/Contract

Changes, REAs and Claims Original Baseline Prove it!

Technical Price Other

If you dont know where you started, you wont know

where you are or where youll end up!

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READ Your Solicitation/Contract

Changes, 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 Assume
Clarify Ambiguity
Get in Writing from Contracting Officer Proceed Accordingly

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Never Assume
Duty 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 Assume
Duty to Seek Clarification

The offerors or contractors 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
Often
Professionally and with Respect With the Proper Authority Confirm Response Get it in writing

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Communicate
With the Proper Authority Contracting Officer Contracting Officers Representative Contracting Officers Technical Representative Quality Representative/Inspector

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5 - Document
In God We Trust
All Others Bring Data !!!!
Telecom notes Emails Letters Memos

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6 - Bargain in Good Faith and Fair Dealing

Duty 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 Dealing

Governments 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 Treatment

FAR Part 1.602-2, Responsibility of Contracting Officer Fair Equitable Impartial

IF you doubt the behavior, question it!

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8 - Issues, Not Emotions!

We fail to succeed because;
Dont read our contracts Lack knowledge of our rights Dont really know what we want We get emotional Argue irrelevant issues

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Issues, Not Emotions!

We fail to succeed because;
We dont support our case with data, we argue

emotions because!
We dont know our contract, its terms and conditions Rely on poor counsel

And even then Dont press for timely resolution Fail to follow up
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9 - Talking and Listening

Know when to talk and when to listen o Silence is golden! o Stop talking once youve reached agreement or made your point or achieved your goal! o Be good listener knowledge is power and you hear better when youre not talking!

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10 Be Responsive and Responsible

Know your deadlines and due dates

then achieve them!

For Proposal Submittal
Pre-proposal conference Pricing inputs Labor Supplies/Materials/Equipment Other

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Responsive and Responsible

For Inspection Findings, Changes and Modifications
Reclama/Rebuttal/Alternative Finding REAs Claims Appeals

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Top Ten Tips

Benchmarked on industry, federal and AbilityOne

Program experience Learned over time from success and failure in product, services delivery, construction and some specialized industries Simple discovery from which you can build your own dos and donts 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 accomplish Know at what price and budget youve agreed to perform Track 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;

Dont 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 facts We make excuses Argue irrelevant issues

We fail to succeed because;

Dont track performance and price Cant respond effectively to negative performance findings Dont really know how were doing or whether were right Dont know if were making or loosing money Get frustrated Blame the government

2006 Edition Rev 2010

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 Or you have some homework to accomplish!

 Have I read my contract, thoroughly? All parts and section The PWS/Statement of Work/Specification Do I know what it all means?
If any questions, have I asked for clarifications? From your management From the government
Your answer should be yes to all the above Or you have some homework to accomplish!

Resources Available
NISH
Federal Acquisition Regulations Full text of clauses in your contracts Provisions, processes, practices and guidance Code of Federal Regulations AbilityOne Program Committee Procedures and Policy Pricing Memorandum Number 3, Pricing Operations Memorandum Number 19, Disputes Operations Memorandum Number 21, Subcontracts

Other Important Resources

Federal Acquisition Regulations Acquisition Central.gov Portal entry to all federal agency rules and regs

DFARS for DoD Agencies All Civilian Agency FAR Supplements

AO1 Program Information, Committee Memoranda,

Process and Procedures

AbilityOne.gov

NISH Process and Procedures and Information NISH.org

Basic Terminology
The Government Contracts Reference BookA Comprehensive Guide to the Language of Procurement
Second Edition Authors: Ralph C. Nash,Jr., Steven L. Schooner, Karen OBrien Published by: GWU (703) 578-8822

Your Contract as a Guide

AbilityOne contracts are sole source negotiated

contracts Generally they are Firm Fixed Price They are priced in accordance with Pricing Memorandum Number 3 (PR3) PR3 says we use FAR Part 15 as the basis for negotiating our price Therefore, the federal agency may have issued a uniform contract format (UCF) instrument

Uniform Contract Format; FAR Part 15

Part 1 Section A Section B Section C Section D The Schedule Solicitation/contract form Supplies or services and prices/costs Description/specifications/statement of work Packaging and marking

Section E
Section F Section G

Inspection and acceptance

Deliveries or performance Contract administration data

Section H

Special contract requirements

Uniform Contract Format; FAR Part 15

Part IIContract Clauses Section I Contract clauses

Part IIIList of Documents, Exhibits, and Other Attachments Section J List of attachments

Part IVRepresentations and Instructions (solicitation)

Section K Representations, certifications, and other statements of offerors or respondents Instructions, conditions, and notices to offerors or respondents Evaluation factors for award

Section L

Section M

Contract Award
Award is generally a Base Year plus Four renewable

Follow on Year (FOY) Periods Contract is renewable every year Each FOY carries same price, etc. as Base Year unless Government makes changes Every Five Years we re-establish a New Base Year

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

Now What?
Contract Award Same requirements? No changes? Everything you agreed to? Post Award Actions Deliverables

Quality Control Plan Notices to government of Supervisory personnel Other

Contract Management Checklist Post Award

Reports or plans due to government
Approval processes Key personnel provisions and reporting Subcontract administration (if any) Government quality assurance, inspection and

acceptance provisions and authorized personnel Contractor quality control requirements Invoicing and payment provisions Insurance and liability requirements Wage 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 Officer Contract Administrator Contracting Officers Representative (COR) Contracting Officers Technical Representative (COTR) Quality Assurance Evaluators (QAE, Inspectors, etc.) Your NPA contract personnel Communication Matrix List of who talks to who at what levels within government and your agency - Good idea!

Labor Law Provisions

Wage Rates and Fringe Benefits Service Contract Act Davis Bacon Act Other 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 youre not certain of Seek support and understanding
From written resource materials From your contract From NISH From Training available through NISH

REMEMBER -Top Ten Tips

1. 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&A
Your Issues or Concerns Purchase Orders ? G&A and Allowable Costs ?

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Adios and Good Luck!

F.M. Fil Tellez 703.626.3108 ftellez@nish.org

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