2005 Ship Manager Services Contracts

2005 Ship Manager Services Contracts

2

Agenda

Thursday, August 18, 2005 Introductions Technical Requirements

RMS – Purpose and Schedule Business Requirements

Contracts Provisions Commercial Purchasing Procedures Ship Manager Performance Evaluation Assessment

System (SM-PEAS) Award Term Incentive Option Procedures (ATIOP)

OIF Friday, August 19, 2005

FedBid Demo (Open to all) 8:30am EIS Demo (Open to all) 9:30am VOA – Contract Administration (MARAD only)

10:30am SM-PEAS/QASP (MARAD only) 11:00am Company meetings with MARAD personnel

(starting at 8:30am – based on sign-up

3

Protest Notice

On Monday, August 15, 2005, American Overseas Marine Corporation (AMSEA) filed a protest with the Government Accountability Office (GAO) challenging the contract awards made for RRF Ship Manager Services

On Tuesday, August 16, 2005, the Head of the Contracting Activity authorized continued performance on the contracts notwithstanding the protest

On Tuesday, August 16, 2005, all awardees were notified of the protest

MARAD is awaiting a redacted version of the protest to provide to all awardees

4

Administrative Matters

Question & Answer Sheets Sign-up for Meetings with MARAD

Personnel Name Tags Cafeteria/Snack Bar Restrooms Breaks Building Access

5

Introduction

Introductory Remarks Jim Caponiti, Associate Administrator for

National Security Bill Cahill, Acting Director, Office of Ship

Operations Introductions

Introductions of Government and Industry Personnel

6

Purpose of the Post-Award Briefing

The Good News – YOU WON! Discussion of Contractual Requirements Discussion of MARAD’s Performance

Expectations Significant Differences between the 2000

and 2005 Ship Manager Services Contracts Performance Based Award Term Incentive Options

Time and/or Ships SM-PEAS and QASP Electronic Invoicing System (EIS) Electronic Management/Administration of 2005

Contracts through the Virtual Office of Acquisition (VOA)

7

Confusion

Contract Period of Performance Award/Anniversary Date: 27 July 2005 Base period of performance for all Ship Groups

except for SG-6 and SG-11: 27 July 2005 – 26 July 2009 Two 3-year Award Term Incentive Options

Ship Group 6 Award Date/Anniversary Date: 27 July 2005 Base period of Performance: 27 July 2005 – 26 July

2006 Two 1-year Options (Not Incentive Options)

Ship Group 11 Award/Anniversary Date: 27 July 2005 Base period of Performance: 27 July 2005 – 26 July

2007 Eight 1-year Options (Not Incentive Options)

8

Technical RequirementsTechnical Requirements

Deliverables J-4 contains the list of deliverables

Revised per Modification 001 (to be issued)

RMS – difficulties; send regular email for now. Verbal notifications continue as scheduled.

Authority to change deliverables remains with PCO.

9


Joint Material Condition Survey & Security Validation

Within 25 days after NTP SM shall provide a material condition survey and security validation report to the COTR

At turnover meeting MARAD shall provide a printout of all deficiencies per vessel

The SM Port Engineer and MARAD COTR shall conduct a joint material condition survey.

Copy to MAR-611 of Joint MC survey. A baseline assessment of security shall be

established and may be done concurrently. Use MA-58

10


Inventory Validations Due within 60 days of NTP

Joint Inventory Validation Report - MA-1013A

Spare/Repair Part validation Randomly selected 10% of NS5/PC-

SAL mission essential spare parts Accountable Property Outfitting Lists Technical Documentation

11


Layberth Security Assessment Within 30 days of NTP The SM is required to assess the

layberth security and provide recommendations for improvement to MARAD If no improvement is

recommended, advise the Regional Office accordingly

Regions are to provide copies to RMS and Business Plan

12

Technical Requirements

GOAL 1: Ship-centric maintenance program

13

REGULATORY COMPLIANCE Maintain and operate vessels in

accordance with CFRs, inspected by USCG, classed by ABS.

Voluntary compliance with SOLAS excepted as noted in writing by MARAD.

Voluntary compliance with ISM except as noted in writing by MARAD. YOUR safety management plan is the ship’s safety management plan.


14


Alternate Compliance Program Enroll all ships in ACP unless waived

in writing by MAR-611

15


Maintain machinery in ABS PM/CM Program (ROS vessels only)

Maintain all machinery in an ABS approved PM/CM program unless waived in writing by MAR-611.

Include in Business Plan all open and inspect requirements to support the SM prepared PM/CM program approved by ABS.

16


ISM: DOC and SMC DOC provided at NTP Apply for interim Vessel Safety

Management Certificate ABS fees reimbursable. DOC internal

audit fees are not reimbursable

17


Readiness Notify MARAD (COTR, SOMO, MAR-

611) fastest means possible (phone followed by email) anytime anything happens which would put a vessel into C3 or C4. (C.2.2.5.1)

MARAD provides Readiness Report to USTRANSCOM. Ship Managers desiring access may request it at www.marad.dot.gov/rstars.

18


Existing Ship Documents MARAD will provide/has provided

copies of VMAs, (ship specific P4Ps for non-ROS,) Activation Plan, Activation Specification, Operations Plan, Deactivation Plan and Deactivation Specification at NTP or shortly thereafter to SM.

SMs will use these to formulate ship specific Phase M and Phase O plans and Business Plan

19


Existing ship documents – Phase M and Phase O Maintenance Plans continued

SMs will use these to formulate ship specific Phase M and Phase O plans and Business Plan.

C 2.3 to 2.3.1.4 CDRL M-0006, M-0007, M-0008.

CDRLs are guidelines. CDRLS state: data begets data.

Remember it.

20


Maintenance Activations 2005 SM contracts

No change from Phase M SM per diem. Provide cost estimate for maintenance

activation and/or sea trial in Phase M PM Plan and Business plan

Do not include Repair estimates as part of the maintenance activation. Provide repair estimates as separate costs in RMS.

21


Corrective Maintenance All repair work required shall be

accomplished in a US ship repair facility unless the work is for emergency, or mission essential repairs, or for pre-positioned ships which are deployed overseas, or for any vessel forward deployed outside of the United States.

22


Corrective Maintenance and Repairs Subject to availability of funds/Business

Plan From identification to remedy of

unsatisfactory condition Enter into RMS – clear and concise SOW

that includes cost estimate, planned performance period, & impact to readiness.

Deferrable/Non-deferrable. Track priority work items – if funds

become available we need to quickly access.

C2, C3, or C4.

23


Up-grades and Recapitalization Propose long term projects

24


Verification of OnBoard Documentation Standard Administrative Filing

Cabinet Can be completed concurrently with

the joint material condition survey List of Content, see Section C.4.2.7 NS5/PC-SAL (Part of turnover inventory

validation) Validation of documentation tracked by

NS 5/PC-SAL Drawings and Technical Manuals Due within 60 days of NTP

25


Severe Weather Plan Required for outported vessels within

60 days of NTP Each RRF vessel has a current one

(Request from regions as necessary) Each NDRF site has its own plan, which

covers RRF-10 and RRF-20 vessels USCG approved severe weather plans

for any layberth location will be provided to the incoming SM for review

26


Notification of US Coast Guard Within 5 days of NTP Region will notify USCG COTP that it is

the designated operator for a specific RRF vessel

27


Testing Services 2005 SM Contracts -Continuation

of Technical Ordering Officer Letter Fleetwide Water Chemistry Program

and Lube Oil Analysis Program MARAD will issue delegation of

technical ordering officer letters upon completion of training

Submit names to MAR-611 of your nominees as ordering officers for the Fleetwide Water Chemistry Program.

28


Business Plan SMs are responsible for developing

the business plan Current Year

Budget Year (current yr plus 1) Four more years

For accurate cost estimates, For preventative and corrective

maintenance For regulatory surveys and inspections For required resources and justifications, For making recommendations with

respect to future activities/upgrades to the vessels

29

Business Plan See C2.5 and 2.6 for components

of Business plan Emergent work Broad-based categories –

enhanced over time Maintain RMS data. Maintain historical data by

equipment, system, or space. Append as necessary.

30


GOAL 2: Support of core activities Logistics Activation Operations Deactivations

31


Logistics Account for all GFP PC-SAL/RMS Auditable records Report anything missing –

technical manuals, ship drawings Acquisition of spare parts

Ordering something not required – check first

32


Logistics and the Business Plan Integrate into annual Business

Plan requirements for acquisition of spare parts

See C-3.1 for details

33


Consumables 2005 SM Contract

Consumables are GFP at Turnover. Regions may task SM to supply

them as required on a reimbursable basis

34


Activations (excluding Maintenance Activations)

Per diem changes on X-day. For example if vessel is a 5 day

vessel, 5 days before it is required to be Ready For Sea the per diem changes. (notice/no-notice)

Incorporate cost change into Business Plan.

35


Activation Plan Is a deliverable. Standard Activation/Deactivation

Cost estimates. Cross-check costs into Business

Plan Notice Activations may have

unique requirements which must also be added to the Business Plan.

36


Activation SITREP 2005 SM Contract

C3.2.7.1.1 status reports - CDRL A-0002.

Special reports due in RMS - CDRL A-0003

C-3.2.7.1.7 Lessons Learned after major operations - CDRL-A-0008.

37


Activation Support includes Crew lists Task order accounting Crew questionnaire Crew vetting Storing and provisioning Directing work of all sub-

contractors

38

Nautical Charts and Pubs MARAD is transitioning to

Electronic Charts. See modification 0001 (to be

issued)

Slop Chest Slop chest – not reimbursable.

39


Operations Separate briefing on OIF 05-07 later

today Emphasis on crew and officer

orientations See Section C5.10 to end on FOS crews

CASREP system its use/importance Training in SOTRS and MERCOMMS

Operational Reporting Include MARAD even when MSC doesn’t

Ops Center – special reporting times.

40


Phase O – Sea Speed for MSC Missions 1993 SM Contract

No formal Requirement 2000 SM Contract

TE-7 lists by vessel 2005 being Revised by MAR-611

New TE-7 will be provided SMs should make recommendations

regarding TE-7 when appropriate.

41


GOAL 3: Support Safety, Environment, and Security

42


SM Safety Manual/System Part of SM’s ISM Certification Within 90 days of NTP SM must provide 2 copies

of SM’s Safety Manual to MARAD for review Master - Final Authority

No safety manual relieves the Master of his authority or responsibility for the safety of the vessel, its passengers and cargo

MARAD provides safety guidance TE-1 Section 18.

43


Safety Recognition 2005 SM Contract

Selected offerors intend to apply their commercial safety plan, which includes a monetary recognition of outstanding or sustained safety or environmental performance given to the crew for a defined period of no injuries/no spills

This is not a reimbursable item MARAD personnel may continue to

recognize outstanding crew performance through letters of appreciation, the Administrator’s annual award, or vessel plaques/ceremonies

44


Mariner Health Quarterly reporting by email Any part your want password

protected, give password to Jean Barile

Next safety meeting will focus on mariner health issues. Will be held this winter.

For reoccurring incidents: check function of your safety plan

45


Mooring Plan Deliverable. C4.1.13 Obtain from Region or MAR-612

46

Environmental Protection Develop all necessary plans,

procedures and policies to promote environmental protection.

Report any spill of any size. Failure to comply with environmental

regulations is a major performance issue. For questions - Ask in a timely manner.

Minimize retention of HAZMAT. Dispose of IAW CFRs, State and local

regs.

47


Security Plan Due within 90 days of NTP Region will provide USCG approved

security plan. Review and re-submit to USCG. Incorporate annual assessment. Reviewed and valid; or reviewed and changed. Procedures for Threats to Vessel Security Drills Call back lists

Detailed in Contract Section C-4.3.4.3

48


Security Watches for Outported Ships Internal Security

Provide resources, programs, procedures to provide routine internal security for ROS vessels 24/7

Routine involves responding to vessel alarms, maintain operational shipboard equipment; and the prevention of unauthorized personnel from vessel entry

The vessel must be manned 24/7 by someone who can properly respond to a fire, security breach, or equipment failure. See C-4.3.2

49


Security Obtain Facility Clearance Control/dispose of classified

materials properly Review Vessel Security Plan Notify MARAD of Vessel Security

officer and Company security officer – contact #s.

Heightened security –reimbursable.

50


Security - continued Brief Crew on security Train crew in required force

protection and general awareness

Provide Second Seaman’s War Risk Insurance coverage 365 days. Special requirements for exclusion zones.

51


GOAL 4: Ability to adequately crew the ship with qualified marine personnel.

52


Shoreside staffing President’s data – NTP

deliverable. Have not seen this. Due to MAR-610.

Emergency POC.

53


Management POC Required within 7 days of NTP

Not intended for daily contact/restricted contact

Additional corporate information (names/addresses) due within 30 days of NTP to MAR-611.

This information must be kept up-to-date

54


Port Engineering Services MARAD approval of a specific

port engineer is not required or requested.

Services differ by contract. Single PE Multiple PEs Assistant PE Administrative Assistant Combinations

Need names/contact numbers

55


Port Engineering Team 2005 SM Contract

On-Site Facility Required Near the pier/close proximity to the berth

(trailer or equivalent) within 2 hours of vessel C.5.1.6.1

Multiple Port Engineers may share one facility

A Port Engineer may have a temporary office on the ship. Be forewarned it may be removed during activation/operation. (see change in Mod 0001)

There is no specific geographic requirement for Port Engineers of Non-ROS vessels

56


Employee Removal MARAD is NOT the employer of the Port

Engineer, ROS or FOS crewmembers However, MARAD can and will comment

upon performance Due to the unique representational authority

of the Master, who represents you and the owner, MARAD reserves the right to approve in advance or request removal of the Master through the Director, Office of Ship Operations.

57


ROS Crewmembers ROS crews are employees of SM SM may provide newspapers,

magazines, recreational videos, cable TV at its own expense

58


ROS Crews – Vacation and Sick Leave Vacation pay of 1.5 days/month or 18/year

is factored into per diem Sick leave is 1 for 30 (max 12 days per year)

included in the per diem and is between the SM and its employee.

ROS leave not used at end of contract is lost. SMs receive no reimbursement for it.

Gapped Billets A crewmember has permanently left the

vessel MARAD is owed adjustment for gapped

billets

59


ROS Crew Time and Attendance Maintain auditable Records

For Gapped Billets For absences

60


ROS - Overtime Emergencies

Overtime is generally authorized in any phase in case of emergencies

SM must notify MARAD within 48 hours of the emergency occurrence and report the amount of overtime incurred and the justification

PHASE M Overtime is generally NOT authorized and

must be approved in advance and be clearly justfied.

61


ROS Subsistence 2005 SM Contract

Fixed Price No additional reimbursements to be paid Subsistence, if paid for weekends and

holidays, is included in the ROS Fixed Price CLIN

No additional reimbursement for ROS Crew subsistence will be paid by MARAD except for incidences of loss of hotel service or temporary duty assignments

62


ROS – Clerical Support Under the 2005 SM contract,

complete support for each group was priced into the fixed price CLIN

Where clerical support was proposed in your proposal - it is expected.

Additional personnel may be approved/reimbursed for specific tasks only, after review and approval by MARAD

63


ROS Telephones, Cell Phones & Pagers 3 phone lines per ROS vessel It is NOT the responsibility of the SM

to provide cellular phone and pages for Government personnel during vessel visits

64


ROS Non-P4P Consumables The following items are at the SM’s

expense: Office supplies, forms, postage, FEDEX or UPS Ship Phone Charges beyond the three, Crew

Entertainment, Linen service, Steward’s cleaning Gear and supplies, batteries for flashlights, paper

goods, galley degreasers, ear plugs, hard hats, goggles, rubber gloves

ROS special clothing, vessel hats with logo.* *There may be Special occasions which are an

exception to this. Follow COTR direction.

65


ROS Expendables and Non-Expendables SM replaces initial quantity provided

as GFP These are reimbursable. There are no expendable allowance

lists currently available.

66


ROS & Spare Parts Phase M

ROS Crewmembers shall make use of the shipboard inventory of spare parts for all unscheduled maintenance and repairs

SM must obtain MARAD’s authorization to obtain spare/repair parts from outside sources when the same parts are available onboard the vessel

SM may require order parts as part of the specification for Industrial assistance work. Conversely, if a SM has a vendor coming, it may order ahead of time, a replacement part for that which is onboard and will be used by the vendor.

See TE-5 for guidance

67


ROS CLIN – Crew Ratings Offerors proposed all ROS positions

fully burdened. Should changes become necessary,

they must be coordinated with HQ (MAR-611/MAR-380) to ensure accurate crew pricing.

Any changes to original proposal requires a detailed justification and PCO approval BEFORE it occurs.

68


GOAL 5: Comply with Government and Company business policies, procedures and practices

Commercial Procurement Procedures and J2 (will return to this in a minute.)

69


Quality Assurance and Management Plan

Your deliverable. Due within 90 days of NTP Contract ref C-6.7.2.1 This is not the QASP which is the

Government plan for Quality Assurance Surveillance.

70


Goal 6: Effectively manage and control costs

71


Invoicing Section G.25 through G.29

SMs are responsible for verifying the validity and accuracy of ALL vendor invoices

MARAD will reclaim overpayments from SMs

Repeated invoice inconsistencies and errors are a reflection of poor quality processes and will impact the SM’s performance evaluations

There will be an electronic invoicing demonstration tomorrow.

72


Business Plan SMs are responsible for developing

the business plan Current Year

Budget Year (current yr plus 1) Four more years

for accurate cost estimates, For preventative and corrective

maintenance For regulatory surveys and inspections For required resources and justifications, for making recommendations with

respect to future activities/upgrades to the vessels

73


Medical – Invoice Review Service 2005 SM Contract requires

SMs must provide a third party to assist with reviewing and validating costs submitted on medical invoices

SMs must provide a copy of the service agreement to the ACO

SMs were encouraged to obtain a service working on a percentage of savings basis

This is a reimbursable item

74

Technical Requirements & Deliverables RRF Management System (RMS)

Capabilities Data Integration Strategic Planning Budget Development Business Planning Program & Project Management Historical maintenance & cost data Maintenance management capability, including

maintenance & machinery history Automated tracking process towards

measurable goals for RRF strategic objectives & business processes

Single Point of data entry & seamless interfaces with various support systems

75

Technical Requirements & Deliverables

RRF Management System (RMS) Replaces the following legacy systems:

MARAD Automated Vessel Information System (MAAVIS)

Maintenance and Repair Tracking System (MARTS)

PC-SAL Project Administration System (PAS) Maritime Logistics Support System (MLSS)

Desired Future Interfaces: Electronic Invoicing System Free Balance (MARAD’s Financial System) IDEAS-PD (MARAD’s Electronic Contract Writing

System)

76

Technical Requirements & Deliverables

RRF Management System (RMS) use under the contract: Submittal medium for many

deliverables (see J-4) Development of RRF Business Plan

77Maritime Administration

August 18, 2005

Ready Reserve Force (RRF)Management System

(RMS)

78

RMS Background

10/00 – 10/02 Business Process Review 11/02 – 11/03 Alternatives Analysis 11/03 – 11/04 Pre-Procurement Phase 11/04 Contract Award to NS Nautical

System for COTS Program 12/04 – 04/05 Data Analysis, Conversion and

Software Configuration 04/05 – 05/05 Installation and Initial Training

Headquarters and 3 Regions 9 Ship Managers 36 ROS Ships

06/05 – Follow-on Support

79

B - Breakbulk O - Tanker R - RO/RO T - TACS A - TAVBL - LASH OP - OPDS S - SEABEE TP - Troop

Readiness: 4 (ROS), 5 (ROS), 10, 20, days from notice to activate

Extended OperationsB-5- CAPE JACOB-Saipan OP-5 - CHESAPEAKE -Diego GarciaOP-5 - PETERSBURG-Guam

Tsuneishi, JapanO-10 - ALATNA O-10 - CHATTAHOOCHEE O-10 - NODAWAY

Beaumont/Port of Orange, TXR-5 - CAPE VICTORY R-5 - CAPE VINCENT L-5 - CAPE FLORIDA

Beaumont Reserve Fleet, TXL-10 - CAPE FAREWELL L-10 - CAPE FLATTERY OP-10 - POTOMAC T-20 - EQUALITY STATE

Norfolk, VAS-5 - CAPE MAY

Suisun Bay Reserve Fleet, CAT-20-BEAVER STATE

T-20-GREEN MT STATE

Long Beach, CAR-5 - CAPE INSCRIPTION R-5 - CAPE ISABEL

Houston, TXR-5 - CAPE TAYLOR R-5 - CAPE TEXAS R-5 - CAPE TRINITY T-4 - DIAMOND STATE

New Orleans, LAR-5 - CAPE KENNEDY R-5 - CAPE KNOX

Alameda, CAB-5 - CAPE GIBSON B-5 - CAPE GIRARDEAU L-10 - CAPE FEAR R-5 - ADM CALLAGHAN R-5 - CAPE ORLANDO R-10 - COMET R-10 - METEOR S-5 - CAPE MOHICAN T-5 - GEM STATE T-4 - GRAND CANYON ST T-5 - KEYSTONE STATE

Portsmouth, VAR-5 - CAPE RACE R-5 - CAPE RAY R-5 - CAPE RISE

San Francisco, CAR-5 - CAPE HENRY R-5 - CAPE HORN R-5 - CAPE HUDSON

Baltimore, MDA-5 - WRIGHT R-5 - CAPE WASHINGTON R-5 - CAPE WRATH

San Diego, CAA-5 – CURTISS

James River Reserve Fleet, VA

Charleston, SCR-5 - CAPE DECISION R-5 - CAPE DIAMOND R-5 - CAPE DOMINGO R-5 - CAPE DOUGLAS R-5 - CAPE DUCATO R-5 - CAPE EDMONT

Tacoma, WAR-5 - CAPE INTREPIDR-5 - CAPE ISLAND

Wilmington, NC R-10 - CAPE LAMBERT R-10 - CAPE LOBOS

•RRF SHIPS CONVERTED TO NS5

Newport News, VAT-5 - CORNHUSKER STATE T-5 - FLICKERTAIL STATE T-10 - GOPHER STATE

t

Non RRF School Ships

EMPIRE STATE ENTERPRISEGOLDEN BEAR STATE OF MAINE STATE OF MICHIGAN TEXAS CLIPPER II

tt

NATIONAL DEFENSE RESERVE FLEET ANCHORAGES

80

RMS Components

NS5•M&R•Logistics•Budget•Purchasing

Other Core Functions•Common IT Configuration•Shipboard Networks•Replication and Communications•SeaWave Satellite Communications

81

RMS Team

RMS Operations & Policy (ROP)

Group

OCIO ABS Stanley Associates

Channing Jones - Chair

Donna Seymour - CIO

Gerry Nielsen

Jon Hall – System Administrator

Jay Fleming (HQ)

Bruce Pollock

Vince Truett – OCIO representative

Art Fritz (SAR)

Wendy Benoit

Bentley Howell (CR)

Simon Tao (WR)

82

Fleet Concept

MARAD CENTRAL

KEYSTONECAPE Rs, CAPE Ks,

CAPE Vs

CAPE R PECAPE RAY, CAPE RACE,

CAPE RISE

CAPE RACE CECAPE RACE

SAR43 SHIPS +

83

RMS Challenges

Install new databases at SMs Complete RO-RO communications/replication

upgrades prior to activation Provide additional training to all users Ensure rapid response to Help Desk requests Convert remaining CONUS ships to NS5/RMS by 30

September Redesign vendor database Restructure configuration hierarchy Build financial interfaces / Incorporate program

enhancements Incorporate shore-based spares in database Convert PREPO ships and school ships

84

Business Requirements

Contract provisions Section E.2, Performance Quality Control

Failure to meet minimum quality standards may result in the following:

Re-Performance by the Ship Manager Re-performance by the Government (costs

charged to the SM) Reduction in per diem Partial Termination for default Termination for Default

85


Contract provisions Section F.3, Notice to Proceed (NTP)

Issued for all but four Ships on 28 July 2005 Some turnovers are dependent on vessel

operational status and/or participation in exercises

86


Contract provisions G.2 Type of Contract

Firm-Fixed Price Service Contract with Cost-Reimbursable Line Items

Subject to Economic Price Adjustment (EPA) Service Contract Act (SCA) Fair Labor Standard Act (FLSA) Multi-year (except SG-6) with Cancellation Ceilings Award-term incentive options (except SG-6 and SG-

11) Incrementally funded

87


Contract provisions G.2 Type of Contract

Base performance period was priced inclusive of escalation (both fixed price and ROS crew wages)

Adjustment for incentive option periods will be made based on CBAs (ROS crew wages) and Consumer Price Index (other fixed price)

Incentive Option – Additional Vessels Proposed based on Base Year 4 for “generic” vessel Per diem rate to be escalated based on the year in which

the option, if any, is exercised

88


Contract provisions G.3 Directions by Government Personnel

Contracting Officer Technical Representative (COTR) Responsible for monitoring the technical aspects of the

contract Responsible for final inspection and acceptance of

designated reports Responsible for review and approval recommendation of

designated invoices May be assisted by an Assistant COTR (ACOTR) Copy of appointment letters to be provided to pertinent

Ship Managers The COTR can NOT:

Make commitments or obligate the Government for any changes, which affect the contract price, terms or conditions

Direct Subcontractors

89


Contract provisions G.6(c) Understanding Government Authorities

Director of Acquisition appoints the Procuring Contracting Officer (PCO), Rilla A. Gaither

The PCO delegates specific authorities to the Administrative Contracting Officers (ACO), but retains the authority to solicit, award and modify the basic terms and conditions of the contract

The Chiefs of Contracting Office (COCO) appoint qualified ACOs and may perform all duties of the ACO

ACO has the authority to appoint COTRs and ACOTRs

90


Contract provisions G.7. Claims and Litigation

The SM is considered the agent of the U.S. within the meaning of the Suits in Admiralty Act (SIAA), the Public Vessels Act, and the Admiralty Extension Act for all third-party tort actions in admiralty cognizable under the Jones Act, General Maritime Law, or the Clarification Act, inclusive of claims for maintenance and cure

The SM is NOT an agent of the U.S. under the Contract Disputes Act

The SM is NOT an agent of the U.S. for non-admiralty actions, particularly employer/employee disputes

The SM is NOT an agent of the U.S. when the SM acquires products or services as a prime contractor from a subcontractor under the procedures set forth in Attachment J-2 – there is NO privity of contract between the subcontractor and the Maritime Administration

91


Contract provisions G.7.4. Indemnification

The SM agrees to indemnify and hold the U.S., MARAD, and its employees and agents harmless from any damages, loss, or injury resulting either directly or indirectly from

Acts of Gross Negligence, Willful Misconduct or Violations of Law or Regulations of the Senior Management of the SM or

Acts of Gross Negligence, Willful Misconduct, or Violations of Law or Regulations performed by employees, servants, contractors, subcontractors, suppliers or agents of the SM and which occurred with the Privity or Knowledge of Senior Management of the SM

All third-party actions not in admiralty All maritime liens by third parties Damage caused by a subcontractor or its agents or

employees during the performance of the work

92


Contract provisions G.11 Task Orders – Reimbursable

Any reimbursable supplies/services to be furnished by the SM will be authorized via Task Order

Prior to issuance, SM must provide a written specification, or a clear/concise Statement of Work, cost & time estimate for review

TO is considered issued when posted electronically

It is the SM’s responsibility to track all funds expended under reimbursable TO’s, specifically status of purchase order(s) issued, funds obligated, expended and closed-out

93


Contract provisions G.14 Types of Invoices

All invoices to be submitted electronically via the MARAD Electronic Invoicing System (EIS) at https://www.marad.dot.gov/EIS/

User accounts must be set up via request to the PCO

EIS Website contains an Instructional Manual EIS Demonstration to be provided on 19 August

https://www.marad.dot.gov/EIS/

94


Electronic Invoicing System (EIS) Anticipate integration into VOA Being revised to allow for broader access beyond

Ship Managers Some minor changes from previous system

Allows qualified SM’s to submit fixed price and reimbursable invoices electronically with summary information

Allows for supporting documentation upload Allows SMs to track invoice approval process SMs are responsible for retaining invoices and

supporting documentation Qualified SM’s

Must have DCAA approved process, i.e. invoices must be generated within the SM’s accounting system

Certifications have been provided to new SMs and those not previously approved to allow for conditional approval until a DCAA audit can be performed

95


Contract provisions G.17 & J-2 Commercial Purchasing System

SMs must submit commercial purchasing procedures to the PCO within 90 days of NTP

Procedures will be audited by the Defense Contract Audit Agency (DCAA); however final approval rests with MARAD

SMs with approved commercial purchasing procedures (by MARAD or other Government entity) must still submit procedures; however prior approval will apply if consistent with J-2 requirements

96


J-2 Ship Manager Subcontract Purchasing Policies Commercial Purchasing System (CPS) Review:

IAW FAR 44.303 and emphasis on: “Best Value” Practices Acquisition of quality products & services at fair and

reasonable prices Minimization of acquisition lead-times and administrative

cost of purchasing Use of self-assessment to support continuous

improvements in purchasing Ability to segregate and track costs Maintenance of complete subcontract documentation Use of electronic commerce to the maximum extent

practicable Procedures for assessing and tracking successful past

performance records for vendors Procedures for inclusion of appropriate, current flow-down

clauses

97


J-2 Ship Manager Subcontract Purchasing Policies Maintenance of CPS

At least every 3 years MARAD will determine whether a purchasing system review is necessary

MARAD conducts annual cost incurred financial audits Interim audits may be ordered if deemed necessary

If deficiencies are noted during contract performance, the advance notification/consent thresholds may be lowered

If the deficiency is not corrected, MARAD may withdraw the CPS approval to protect the Government’s interests

98


J-2 Ship Manager Subcontract Purchasing Policies Consent to subcontract requirements

Clear analysis of the award decision Copy of proposals & abstract of proposals Copy of proposed subcontract Summary of negotiations Bonding and insurance information Specific funding requirements Milestone schedule

Solicitation review Specification review is always required regardless of the level

of subcontract review Solicitation package must include

Solicitation Documentation of specification review (by COTR/ACOTR) Source List Detailed Estimate Basis for determination of liquidated damages, bonding,

insurance etc.

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J-2 Ship Manager Subcontract Purchasing Policies Mission Essential and Emergency Repairs (Foreign &

Domestic) Definitions for “mission essential” and “emergency”

are provided in J-2 Notify the ACO and COTR/ACOTR as soon as possible Minimum requirements:

Define the intended work in as much detail as possible Develop an estimate and initial “not-to-exceed” value Make all attempts possible to obtain competition Obtain fixed price rates for subcontracted labor,

burdened material Recommend project start and completion dates Obtain verbal authorization from the ACO as soon as

possible

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J-2 Ship Manager Subcontract Purchasing Policies Ship Manager Responsibilities & Cautions

SM may solicit “subject to the availability of funds” however, SM shall not sign a contract or incur a legal obligation without a funded TO

SM must notify the ACO in writing when 75% of the funds provided on the TO have been expended

SM must report the total number and dollars of subcontracts awarded by preference category/type of business

SM is responsible for complete subcontract file documentation SM is responsible for the verification and accuracy of all

subcontractor invoices SM is responsible for resolving subcontract disputes (remember

– the SM is NOT an agent of the Government for subcontracting purposes)

A subcontract shall not include terms that bind the Government to the results of arbitration, judicial determination or voluntary settlement between the prime contractor (SM) and the subcontractor

SM must include appropriate flow-down clauses SM is responsible for verifying that proposed subcontractors are

not suspended and/or debarred SM is responsible for evaluating subcontractor performance

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Award Term Incentive Option Plan (ATIOP)

ATIOP provides for the evaluation of both technical and price performance

Serves as the basis for any award term & additional vessel option decision

May be unilaterally revised by the Government The Government has the unilateral right not to exercise

the Award Term Incentive Option if The SM has failed to earn an award term by the end of the

third year of contract performance The SM, after earning the first award term, fails to earn an

award term in any succeeding year of contract performance

Services are no longer needed Option exercise would be inconsistent with FAR Subpart

17.2 Failure to exercise an award term option based on the

reasons above Is NOT a Termination for Convenience or a Termination for

Default Does not entitle the SM to any termination settlement or

other compensation

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Currently being revised for consistency with the QASP and SM-PEAS

MARAD will consider the following in making the option exercise determination: SM’s performance in terms of the criteria stated in

the ATIOP Results from Contract Administrative Reviews

(CARs) Information contained in SM-PEAS

Option exercise is at the sole discretion of the Government

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The determination to exercise an incentive option is contingent upon the SM maintaining excellent levels of ongoing

performance in all areas of the contract SM exhibiting continuous improvements in

performance SM exhibiting reduction of costs SM exhibiting efficient/effective use of

Government resources

Award term incentives are designed to reinforce the importance of overall superior contract performance

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Evaluation Process Initial performance evaluation will be completed at

the end of the 9th month of performance of the base year

This evaluation period will be scored but not counted in the Award Term Decision Point

This is considered a “wake-up” period for the SM Government will identify areas of performance

impacting the SM’s ability to obtain an award term/vessel incentive option

MARAD will complete a performance evaluation every 6 months thereafter, following the initial 9-month evaluation, which will be scored and considered in the award term incentive determination

To determine whether to grant the initial or subsequent award term incentive option, MARAD will consider the four (4) most recent evaluations

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Evaluation Process Each evaluation will be worth 1,000 points To earn the first award term incentive option, the

SM Must have accumulated a minimum of 3,100 points

(max possible is 4,000 points) Must have no more than 1 individual evaluation

receiving a score of less than 700 out of 1,000 points The PCO will notify the SM no more than 90 days

and no less than 60 days prior to the end of the performance period

If the SM decides not to accept the incentive option (vessel or term), the SM must notify the PCO in writing no later than 240 days prior to the start of the applicable award term period

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Evaluation Process Evaluation Criteria

Quality of Service Cost Control Timeliness of Performance Contractor Business Relations

Evaluation Performance Elements Responsive and High-Quality of Fleet Maintenance

Requirements Successful Performance and Support of Core RRF

Requirements Adherence to Sound Safety, Security and Environmental

Standards and Practices with No Adverse Impact on Personnel, Environment and Property

Adequacy of Vessel Crewing with Qualified Marine Personnel Compliance with Government and Company Business

Policies, Procedures and Practices Effective Management and Control of Costs

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NOTE: The SM does not “earn” an award term incentive

option or additional vessel option solely by meeting the criteria in the ATIOP

MARAD will consider results from CARs, and information contained in SM-PEAS

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Ship Manager Performance Evaluation and Appraisal System (SM-PEAS)

SM-PEAS composition: Quality Assurance and Surveillance Plan –

Performance Elements Performance Inspection Report (QASP-PE-PIR)

Ship Manager Performance Appraisal Report (SMPA)

Contract Quality Deficiency Report (CQDR) Ship Manager Performance Recognition

Report (SMBZ)

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SM-PEAS FAR 42.1502 requires the CO to conduct interim

and final evaluations on active contracts SM-PEAS was designed to achieve standardization

in documenting performance Web-based quality assurance surveillance and

performance evaluation system Access to specific modules is based on user access

rights QASP module will be available September 2005 Remaining modules are under development and

will be available by December 2005 SM-PEAS to be integrated into the Virtual Office of

Acquisition (VOA)

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QASP-PE PIR (Quality Assurance & Surveillance Plan – Performance Elements Performance Inspection Report) Reports can be created at any time Provides qualitative and quantitative evaluation of

the SM’s performance relative to 6 specific performance goals:

Responsive & high quality of fleet maintenance requirements

Successful performance and support of core RRF Requirements

Adherence to sound safety security & environmental standards

Adequacy of crewing vessels with qualified marine personnel

Compliance with Government and company business practices

Effective management and control of costs

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QASP-PE PIR Each performance goals has from 1-5 Performance

Elements (PEs) that must be assigned specific ratings:

Exceeds Standards Meets Standards Unsatisfactory

Each QASP-PE-PIR has an associated check-off list for a specific PE

Check-off lists consist of a varying number of quality assurance related performance measures to assist the evaluator to document finding and inspection results

Upon completion of the inspection report it will be released to the SM in the system

The Inspection Report is provided to the SM as a courtesy only

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The QASP-PE-PIR reports are cumulative in nature and become an integral part of the Ship Manager Performance Appraisal (SMPA) report

The SMPA become a major element in the Award Term determination

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Benefits of the new improved SM-PEAS: Web based system allows for access from

anywhere Release of performance reports through the

system Measurement of quality performance standards is

consistent with regulatory requirements More transparency for all users, both on the

Government and the industry side Consistency across evaluators and regions

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QASP Performance Elements: PMP Execution Regulatory Body Classification/Certification Readiness of Vessel Quality/Completeness of Business Plan Logistics Quality of Vessel Activation and Deactivation Quality of Ship Operations – Phase O Environmental Safety Security Contract Manning Levels and Quality Quality Assurance Acquisition Procedures Acquisition Operations Deliverables Effective Management and Control of Costs