Contract Management: Key Role Past Performance Reporting Plays in the

Acquisition Lifecycle

Julia B. WiseSenior Procurement Policy AnalystOffice of Federal Procurement PolicyOffice of Management and Budget

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US Procurement System

Scope - Government Coverage112 Departments & agencies around the world

3,400 Contracting Offices

The People

30,000 Contracting Officers (FAR 1.602) Contracting Officer’s Representatives (FAR 1.604)

Program Managers300,000 purchase card holders 2

Contract Objective

Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. (FAR Part 2)

Obtain the best value for the government in procuring quality goods and services at a reasonable price in a timely manner

Seek to maximize full and open competition

Promote small business participation in government contracting

Obtain innovative goods and services

Obtain quality performance and supplies to ensure the customer’s needs are met and the taxpayers dollars are spent wisely. 3

OFPP Past Performance InitiativePast performance information is relevant information, for future source selection purposes, regarding a contractor’s actions under previously awarded contracts. (FAR 42.1501).

Since 2009, OFPP has taken several actions to increase the number and quality of past performance submissions available to source selection officials, including:

• emphasizing reporting requirements through memos to agency officials;

• assessing and reporting on the level of compliance and quality of evaluations;

• directing the development of a compliance tracking tool;

• setting performance targets for certain agencies;

• directing the consolidation of systems for entering past performance information; and

• developing government-wide past performance guidance.

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Acquisition Team

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Key Acquisition

Team Players

Contracting Officer and

Contract Specialist COR -

Technical Community

Quality Assurance

Budget/ Finance Officer

Legal Counsel

Program Manager or Project Manager

Customer /End-user

For Official Use Only

Pre-Award Process in Requiring Activity/Program Office

Develop Funding and Requisition Document

Define the Requirement

Prepare Independent

Government Cost

Estimate

Prepare acquisition

package: SOW/SOO/PWS Draft Evaluation Criteria/ Plan

KEY: SOW – Statement of Work SOO – Statement of Objective PWS – Performance Work Statement

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Conduct Market Research

Google,Check FPDS, PPIRS, FAPIIS

For Official Use Only

Pre-Award Process in the Contracting Office

Assign CO/Buyer

Validate Market Research

Finalize Acquisition Strategy/Plan

Buyer Reviews

Issue RFQ/RFP

Management Review Draft RFQ/RFPLegal Review

Receive Offer/Compliance

Review

Determine

LPTA/ Best Value

Procurement Management Review

Technical Evaluation of Offer/Price

Contract Performance Award Legal Review

Debrief Offeror

Receive Procurement Package

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For Official Use Only

Award: Source Selection Process

RFP/RFQ Issued

Individual Evaluations of proposals based on solicitation criteria

Source Selection Panel Caucus

RFP/RFQ Offer Received

Award Decision SSA Briefing

Contract Award Debriefings

Comments Strengths Weaknesses Deficiencies Merit & Confidence Ratings

Consensus Strengths Weaknesses Deficiencies Merit & Confidence Ratings Cost Issues

KEY: RFP – Request for Proposal RFQ – Request for Quote SSA – Source Selection Authority

LPTA – Lowest Price Technically Acceptable

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Technical Proposal Including PPI and

Cost proposal

Post-Award: Contract Management Process

Quality Surveillance Plan - used to

monitor Contract Performance

Document Contract

Performance

Kick-Off Post-Award Conference or Meeting

Invoice Payments

Modification Issued – within scope changesContract

Closeout

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Prepare the Contract File

Contract Management

Objective: Achieve the contract objective and outcomes.

What is it? The art and science of formulating, executing, administering and closing a contract transaction between the government and the contractor.

Who participates? The government and contractor participate in the contract management process.

What governs the process? Contract regulations that govern this process (FAR Part 42, Contract Administration and Audit Services)

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Contract Management Best Practices Tips

Good Solicitation + Sound Contract Award = Good Contract Management Starts with acquisition planning – the beginning dictates the end results Plan for good contract management – develop a contract administration

plan that measures the contractor's performance and supports payment Start with a post-award conference .Recommendations: • Know what you buying.• Establish an Acquisition Team or Integrated Project Team that can

supplement your expertise.• Develop a Clear and Concise Clear Requirements with performance

metrics. • Hold frequent meetings with contractors (subcontractors, if necessary)

and document performance results• Designate a P/PM and COR upfront before the solicitation is issued. • Hold contractors accountable and manage the contract to success

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What requires past performance evaluation?

1994 Federal Acquisition Streamlining Act (FASA) dated October 13, 1994 (Public Law 103-355)

It is appropriate and relevant that a contracting official consider a contractor’s past performance as an indicator that the offeror will successfully perform a contract to be awarded.

Federal Acquisition Regulation (FAR) 15.304(c)(iii)

FAR Part 42., Contract Administration and Audit Services

FAR 42.15, Past Performance Information

FAR is available at www.acquisition.gov/far

Acquisition Roles

Mission and

Business Plan

Budget

Acquisition Plan

Procurement/Contracting

Managing and

Measuring Results

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Program manager, requiring officials, contract specialist, contracting officer, logistics, others as needed. Program manager and requiring officials primary in this step

Add budget officer, financial management

All of the above and add cost/price analyst as needed. Contracting officer primary in this step.

All with contracting officer leading

All with contracting officer representative and program office leading

Where is Past Performance/Integrity information reported?

• The Contract Performance Assessment Reporting System (CPARS) is a web-enabled system used to document contractor and grantee performance information as required by Federal Regulations. • Completed CPARS reports are transmitted to the Past Performance Information

Retrieval System (PPIRS) where they are used to support future acquisitions. • CPARS includes Best Practices and a Quality Checklist that help agencies write

quarterly evaluation reports.

• The Past Performance Information Retrieval System (PPIRS) is a web-enabled, enterprise application that provides timely and pertinent contractor past performance information to the Department of Defense and Federal acquisition community for use in making source selection decisions.

• The Federal Awardee Performance and Integrity Information System (FAPIIS) is a web-enabled application used to collect certain information on contractor and grantee performance. FAPIIS information is publicly available at www.fapiis.gov.

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What are the Benefits of Past Performance Information

Validates statements made in proposal

Integral to best value source selection

Motivates contractors to strive for excellence

Recognizes good performance

Reduces risk and oversight

Confirms that government obtained the outcomes awarded.

Contractor can eventually be paid for services and supplies delivered.

Why evaluate past performance?Why evaluate past performance?

Recent GAO Report: Past Performance Reporting

Agency April 2013 April 2014

Defense 76% 83%

Treasury 47 71

Interior 15 51

Homeland Security 34 45

Justice 21 29

Agriculture 13 27

Veterans Affairs 4 25

Health and Human Services 10 24

State 3 15

General Services Administration 3 13

Other agencies 32 47

Total federal government 32% 49%

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Source: Past Performance Information Retrieval System | GAO-14-707

Rate of Compliance with Past Performance Reporting Requirement as of April 2013 and April 2014 for Top 10 Agencies Based on Number of Compliance Rate due

Questions

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