Getting Ready for the Post Award Review

1
Getting Ready for the Post Award Review

• Presentation to DLA A-76 Conference
• October 26, 2005
• Williamsburg, VA

2
The New A-76

• New OMB Circular Neither Requires Nor Prohibits
  Post Award Review
• DLA Has Determined It Will Retain Post-Award
  Performance Reviews
• The Nature and Approach of These Reviews Will
  Change

3
Key Distinction

• Post MEO Review
• Only Review Performance if Government Win
• Post Award Performance Review
• Review Performance of All Winners
• Assures Accountability

4
Post Award Performance Review

• Performance Accountability Emphasized in New
  Circular
• Type of Monitoring Not Specified
• Good Management Practice/Decisions
• Help Withstand Audits, Reviews, Inquiries
• Audit-Like Independence Required

5
Post Performance Review

• Government MEO
• Workload
• Adjustments (Mods/Deviations)
• Cost (Budget Execution)
• Performance
• Commercial Contractor
• Workload
• Adjustments (Contract Modifications)
• Cost (Invoices)
• Performance

6
Post Performance Review

• Mandatory after 1 year full performance
• Commence 15-18 months after transition.
• Optional thereafter
• Products Draft and Final Management Reports
  w/Recommendations
• Draft Report 30 days after commencement
• Final Report to Requiring Activity

7
Action Pending

• Post Performance Accountability Review Handbook

8
Review Objectives

• Verify if Activity Operated Within Budgeted
  (adjusted IHCE/Contract) Costs
• Verify if Activity Met Quality and Workload
  Standards in PWS

9
Management Assertion

• Prior to the Post Award Review, the Requiring
  Activity Must Assert that the Service Provider is
  Ready for Review
• Workload Information Ready
• Cost Data Ready
• Performance Data is Available and Ready
• Modification File is Complete
• If Assertion is Made, the Post Award Review Will
  Commence
• If Assertion Cannot be Made, Post Award Review
  Will Not be Performed
• Implications . . . . .

10
Review Approach

• Workload Changes
• Actual vs. Projected Costs
• Performance (against APLs)

11
Guidance for a Successful Review

• Document All Adjustments (Deviations/Modification
  s to MEO Management Plan and Cost Estimate)
• Modification Changes in Workload or Mission
  -- additive cost adjustment
• Deviation Avoidance of Mission Failure --
  non-additive cost adjustment

12
Deviations/Modifications Guidance

• 3rd Party Perspective
• Would a KO reasonably grant a mod to another
  contractor under similar circumstances?
• Yes o No
• General Process
• Site Manager Submits Request
• Requiring Activity Approves or Denies
• Timely -- Proactive vs Reactive

13
Workload Guidance

• Closely Monitor Workload
• Track all workload identified in the PWS
• Good source Crosswalk
• Adjust Resources as Needed to Accomplish Workload
• Request Contract Modification
• Do it Often!

14
PWS Workload
Work Standard
Calc. FTEs
15
Workload Guidance

• Closely Monitor Workload
• Track all workload identified in the PWS
• Good source MEO Crosswalk
• Adjust Resources as Needed to Accomplish Workload
• Request Contract Modification
• Do it Often!

( or -)
16
Workload Documentation

• Workload Data for PP1
• Use PWS Break-out
• Show workload monthly, if possible.
• List Changes in Workload/Services Performed
• New or added
• Functions deleted
• Copy of original technical and cost proposals
• Copy of all modifications to
• Contract
• Letter of Obligation

17
Cost Guidance
All

• Include and Fully Document Adjustment
  (Mods/Deviation) Requests
• Labor Costs
• Unloaded
• Loaded
• Non Labor Costs

18
Cost Documentation

• Labor Costs (MEO)
• Unloaded/Unloaded
• Overtime/Special Pay/Premiums, etc.
• Monthly breakout, if possible
• Non Labor Costs
• Material/Supply costs
• Other attributable costs
• Subcontract costs
• Travel, training, equipment, etc.
• Actual Invoices (Commercial)
• With supporting documentation
• Outstanding claims
• Cost adjustments/modifications

19
Performance Guidance

• Closely Track Performance and Frequently
  (monthly when possible)
• Pay Attention to All APLs.
• Use the APLs in PWS exactly!
• Consider Use of Adjustment Requests
• Rely on Internal Data Sources

20
Performance Documentation

• Performance Outcomes Against All APLs
• Monthly, if appropriate and if possible
• Results of Quality Assurance Reviews
• Performance Outcomes Against PWS non-APL
  Requirements
• Sampled TBD
• Cure Orders and Get-Well Plans

21
Other Guidance

• Review Perspective Effectiveness of Service
  Provider (Commercial/MEO) and Administration/Manag
  ement Oversight
• If a Deficiency is Discovered
• Fully Document Get-Well Plan
• Track Progress
• Use the PWS Contract

22
Benefits of this Approach

• Service Provider
• Pass the Post Award Performance Review
• Be in a Good Position to Pursue HPO (MEO only)
• Experience a Big Advantage During Any
  Recompetition
• Management (Government)
• True Cost and Performance
• Establish Accountability
• Future Direction and Payoff

23
Questions?