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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