Managing Federal Government Contracts

The Answer Book

Charles D. Solloway

• Publisher: Berrett-Koehler Publishers
• Year: 2013
• ISBN:
  9781567263978
• Edition: 1
• Topic: Business
• Subtopic: Investments & Securities
• Index: Business

You've Got Questions – We've Got Answers
Questions can arise at any point in the process of working with government contracts. Now, you have an accessible resource you can trust for authoritative answers. Managing Federal Government Contracts: The Answer Book covers the contract management process from planning to closeout and all the steps in between. Using the regulations and legislation as a basis, author Charles Solloway draws on his many years of experience to craft answers that will help you address the issues you face every day.
This book provides answers to the questions most commonly asked by government program and contracting personnel, contracting officer's representatives, contractor employees, inspectors, and all those involved in government contract management. The question-and-answer format makes getting the information you need quick and efficient. Examples of forms and templates drawn from actual contract work are included to make your work easier. Along with the basics on the roles of the various contract team members and the different aspects associated with eachcontract type, this resource covers:
• Partnering issues
• Data use for efficient contract management
• Remedial actions and how to properly initiate them
• The government's role with subcontractors
Don't let your questions go unanswered. Get Managing Federal Government Contracts: The Answer Book.

CHAPTER
1

BASIC INFORMATION
FOR CONTRACT
MANAGERS

This chapter is devoted to questions and answers that involve the basics of contract management, and it defines the key players involved in the contract management process. This information is essential for those new to the field and can serve as a reminder for the rest of us.

1 What is known as the vision for the federal acquisition system?

Part 1 of the Federal Acquisition Regulation (FAR) describes this vision for the acquisition system:

•Participants in the process should work together as a team and be empowered to make decisions within their areas of responsibility. They should keep in mind that the system exists to serve the customer.

•The acquisition team includes representatives of the technical, supply, and procurement communities; the customers they serve; and the contractors that provide supplies and services.

It is important to keep the team approach in mind when involved in contract management or any other aspect of federal government acquisition.

2 What is contract management and how does it differ from contract administration?

Once a contract is awarded, it is monitored by both government and contractor personnel to determine compliance with the terms and conditions of the contract and to identify any remedial or other actions that should be taken. These contract management actions might include increases or decreases in cost or price, changes in terms and conditions, the execution of contract provisions that allow the ordering of additional supplies or services, and even termination of the contract. They might also include any steps needed to close out the contract once the contract requirements have been satisfied.

For the most part, contract administration and contract management are used as synonyms. Among some professionals, however, contract administration is viewed as simply monitoring performance and reacting when noncompliance occurs. Those professionals might view contract management as a proactive process whereby potential problems are identified early and management actions are taken to avoid or minimize contract noncompliance.

3 Who is involved in contract management?

From the government side, the contracting officer is definitely a key player, because only a duly constituted and appropriately assigned contracting officer has the authority to obligate the government in contractual matters.

Other government personnel involved in contract management can include the project or program managers who have overall responsibility for the contract requirement being procured, contract specialists, legal counsel, contracting officer’s representatives (CORs), contracting officer technical representatives (COTRs), quality assurance representatives (QARs), property administrators, small business advisors, and any of a host of other government functional specialists. All of these persons may advise and make recommendations to the contracting officer in matters involving contract performance.

From the contractor side, those involved in contract management include anyone who might be given real or implied authority for this purpose by the business owner(s) or corporation executives.

4 Is the contractor solely responsible for contract compliance?

No. The courts have consistently held that the government has a duty to cooperate in the fulfillment of the contract. This does not mean that the government cannot insist upon scrupulous compliance with the contract. But it does mean that the government must comply with any promises that it makes in the contract, such as the timely furnishing of government property, the sharing of needed information, and the timely inspection or review of contractor submissions.

The government is required to perform contract management functions without unduly impeding the contractor. For example, the courts have held the government monetarily liable for inspections that were too stringent and for unwarranted nitpicking during the course of the contract. What is “too stringent” or “nitpicking” is often in the eye of the beholder, but certainly nothing is gained by either party when it occurs—and it can ultimately cost time and money for everyone involved.

5 Is there only one contracting officer for a contract?

There may be one or more than one. The contracting officer who awarded the contract, sometimes known as the principal contracting officer or procuring contracting officer (PCO), may delegate some or all of his or her contract management responsibilities to an administrative contracting officer (ACO). For example, a PCO could delegate all other contract monitoring functions to an ACO while retaining the sole right to issue contract changes. If a contract is terminated, the authority to reach a termination settlement may be delegated to a termination contracting officer (TCO), a contracting professional who specializes in that arena.

In the majority of cases, however, there is only one contracting officer—the PCO who performs both procuring and administrative functions.

6 What happens if the contracting officer retires or is otherwise no longer available?

The agency involved appoints a successor contracting officer.

7 Are contract administration offices established for providing contract management services to procuring contracting officers?

Yes. The Federal Directory of Contract Administrative Services Components identifies elements that are assigned contract administrative responsibilities for specific geographic areas and contractor plants. This directory is maintained by the Defense Contract Management Agency (DCMA) and can be accessed through www.dcma.mil. The components listed are most often called contract administration offices, and they may be used by any agency pursuant to an inter-agency agreement.

8 May an administrative contracting officer who has been delegated responsibility by a procuring contracting officer further assign administrative functions to a contract administration office?

Yes. FAR Part 42 permits this.

9 How does the contracting officer function as a team member in contract management?

The federal courts and federal regulations have always placed great emphasis on the independence of the contracting officer. Although contracting officers have a responsibility to seek out expert opinion, the decisions that they make must be their own. It is in seeking out expert opinion, making prudent business decisions, and working toward customer goals that the contracting officer functions within the team environment envisioned in the FAR.

While working within the team, the contracting officer is nonetheless held accountable for the following:

•Following laws and regulations

•Safeguarding government interests

•Treating contractors fairly.

10 Where can one go for additional guidance on contract management?

Government contracting is a complex and often changing business arena. To better understand and remain abreast of contract management requirements, government acquisition professionals and their private-sector counterparts normally rely on the following:

•The FAR

•Agency supplements to the FAR

•Agency manuals and guides on contract management

•The advice and counsel of agency or company personnel known to be expert in contract management matters

•Training courses offered by the government and private providers, such as the Defense Acquisition University, the VA University, Management Concepts Incorporated, and others

•Decisions of the boards of contract appeals or the federal courts regarding contractor claims (These decisions serve as precedent for the contracting officer and other acquisition team members when making future decisions involving comparable circumstances. A number of commercial publications that summarize and discuss many of these decisions are available.)

•Private publications such as this book and newsletters like the Federal Acquisition Report (published by Management Concepts Press).

11 Are there contractor equivalents of the contracting officer and the government project officer?

There is frequently a contractor employee who is given these types of responsibilities. This person may be called a contract manager, a project manager, a business manager, or by some other title. Generally, the responsibilities of such a person include the following:

•Serving as the primary point of contact with the government and as the middleman between contractor employees and the government

•Keeping records pertaining to the contract, including correspondence with the government and records of meetings with the customer

•Troubleshooting when contract issues arise

•Overseeing contractor compliance with the terms and conditions of the contract and associated factors such as Department of Labor and Environmental Protection Agency requirements

•Requesting contract changes, as appropriate, and negotiating any equitable adjustments made necessary by government-approved or government-initiated changes

•Any other assigned contract responsibilities.

Just as the contracting officer must consider both the interests of the government and the fair treatment of the contractor, the contractor’s contract manager must consider both the interests of the government and the interests of his or her employer.

12 What is the role of the project office or program office in contract management?

Contracts are normally entered into in support of a specific project or program or functional area. (For example, a contract might be for a new weapons system, a study of infectious diseases, or support of an agency’s information technology operations.) The project or program office acts as the sponsoring activity for the particular contract effort and is largely responsible for t...