Contract Administration CSP

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Contract AdministrationCSP
USDA is an equal opportunity provider and
employer.
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If you can smile when things go wrong, you
probably have thought of someone else you can
blame it on.
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Conservation Program Contracting

• CPM part 512
• Policy for installing conservation treatment
  under Conservation Program Contracts administered
  through ProTracts
• Subpart F Contract Administration

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Conservation Security Program

• CPM part 518
• Program specific policy
• Subpart K Contract Administration

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Contract Administration

• Contract Modifications
• Improvement Modifications
• Maintenance Modifications
• Land Transfers
• With Successor
• Without Successor
• Canceling vs. Terminating
• Cost Recovery

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Contract Modifications

• 518.100 A (1)
• Due to the unique nature of CSP
• CPM, Part 518, Subpart K will contain the
  primary guidance for CSP contract modifications.

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Modification Process

• Requested by participant
• Developed in ProTracts
• Signed by participant
• Approved by NRCS

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CSP Modification Approval

• NB 300-7-19
• CSP modifications which change any CSP contract
  obligation, either positive or negative,
  regardless of the amount, must be approved by the
  State Conservationist or Assistant State
  Conservationist as delegated.
• Enforced with ProTracts Permissions
• Necessary for accountability

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Maintenance Modifications

• 518.102 Generally limited to changes that do
  not involve Contract Items
• Contract Transfers
• Changes in Participant Information
• Payment shares
• Banking information
• Cancel and Terminate
• To be completed prior to the next annual payment
  cycle to ensure proper payment

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Decreases in Obligations

• NB 300-7-19
• Potential contract violations
• Must be elevated to StC for a determination on
  contract termination and/or cost recovery

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Deleting Contract Items

• 518.100 D (7)
• The participant agrees to maintain at least the
  level of stewardship identified in the benchmark
  inventory for the entire contract period. A
  participant is expected to carry out all
  scheduled conservation treatment.  There must be
  valid reasons not adverse to the Government's
  interest and conservation objectives for deleting
  any contract item.  Each modification must
  include sound justification for the deletion

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Statute

• Public Law 107-171
• 2002 Farm Bill
• Defines the CSP purpose as the conservation and
  improvement of the quality of soil, water, air,
  energy, plant and animal life,

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Regulation

• 7 CFR Part 1469
• Amendment to Interim Final Rule
• 1469.21 (a) Among other provisions, the
  participant agrees to maintain at least the level
  of stewardship identified in the benchmark
  inventory for the portion of land being enrolled
  for the entire contract period, as appropriate,
  and implement and maintain any new practices or
  activities required in the contract.

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Regulation

• 7 CFR Part 1469
• Amendment to Interim Final Rule
• 1469.21 (e) (3) (i) Participant required
  toImplement and maintain the practices as
  identified and scheduled in the conservation
  stewardship plan,

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Caution on Deleting Items

• Requirements of Statute, Regulation and Policy
• Maintain at least benchmark level of treatment
• Implement and maintain as scheduled
• Therefore, requests to allow reduced level of
  treatment is not allowed

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Request to waive policy

• 518.1 C   Authority to Waive Administrative
  Procedures
• (1)  The NRCS Director, Financial Assistance
  Programs Division, may waive any administrative
  procedural provision in this manual
• (i)  Unless prohibited by statute or regulation
  and
• (ii)  If the waiver is justified and will not
  defeat the purposes of the CSP, or any other
  conservation program administered by USDA.

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Waiver Not Justified

• Requests to waive policy and allow reduced level
  of treatment is
• counter to the purpose of the statue and
• prohibited by regulation

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Contract Improvement Modifications

• 518.101
• Tier Transitions
• Adding Land
• Adding Enhancements
• Only during announced request period
• NRCS will make no assurance to participants of
  the potential to add contract improvements by
  modification

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Increases in Obligations

• NB 300-7-19
• Increases in Obligations are Contract Improvement
  Modifications
• Only allowed during an announced contract
  improvement modification period
• Cannot accommodate uncontrolled obligations

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Contract Administration

• Contract Modifications
• Land Transfers
• Canceling vs. Terminating
• Cost Recovery

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Loss of Control

• 518.103
• Land will be considered transferred if the
  participant loses control of the acreages for any
  reason.

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Transfer of Land Under Contract

• 518.103
• With Successor in Interest
• Contract must remain intact to be transferred
• NRCS must be notified within 60 days of transfer
• Transferee must be eligible

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Transfer of Land Under Contract

• 518.103
• With Successor in Interest without existing
  contract
• Contract must remain intact
• Transferee must be eligible
• Add new participant to existing contract
• Remove payment shares of original participant
• Print NRCS-CPA-152

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Transfer of Land Under Contract

• 518.103
• With Successor in Interest with existing contract
• All of the land must be transferred
• Transferred land must meet transferees tier
• Terminate the transferred contract
• Modify the transferee's (existing) contract to
  add the transferred land and original required
  conservation treatments

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Conditions of Transfer

• All of the conditions of the transferees
  contract will apply
• Tier
• Contract length
• Variable payment rate
• Payment limitations

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Transfer of Land Under Contract

• 518.103
• Without Successor in Interest
• Contract Violation and subject to forfeiture of
  payments, refund of payments received and
  liquidated damages

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Contract Administration

• Contract Modifications
• Land Transfers
• Canceling vs. Terminating
• Cost Recovery

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Termination vs. Cancellation

• 512.57
• Termination is NRCS action
• Adverse to participant
• Cancellation is at participants request
• Hardship
• Natural disaster
• Major illness
• Death

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Termination

• For Cause
• By NRCS
• Includes Consideration of Cost Recovery

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Cause to Terminate

• Participant or Land becomes ineligible
• Transfer of Land or Loss of Control
• Failure to correct violations
• Failed to meet terms and conditions
• Threat to health or safety of NRCS
• Fraud, scheme or device

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Ineligible Participant or Land

• HEL/WC violations
• Enrolled land into other program

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Failure to correct potential violations

• Practices and activities must meet or exceed
  applicable standards or instructions
• Must maintain applied practices and activities

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Failed to install or maintain practices/activities

• Items may not be deleted to avoid non-compliance
  with contract requirements
• Needed to meet contract objectives
• May have effected ranking/selection
• Established Benchmark level of treatment (CSP)

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Threat to health or safety of NRCS

• Must allow access to the land under contract for
  monitoring progress

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Misrepresentation of Facts

• Scheme and Device
• Fraud
• Falsification of certification for LR/B
  participation
• Falsification of tenant/landlord interest
• Falsification of Ag Operation Delineation

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Termination Letter (512.91 L)
Not the first Step!

• Reason
• Regulatory basis
• Failure to correct within reasonable time
• Consequences
• Adverse actions to be taken
• Termination
• Cost Recovery
• Liquidated Damages
• Forfeit of future payments
• Appeal rights

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What must NRCS do prior to termination?

• Determine there is a problem
• Annual Contract Review
• Let participant know there is a problem
• Formal Status Review (NRCS-CPA-13)
• Give them a chance to correct the problem
• Agreement Covering Non-compliance with Provisions
  of Contract (NRCS-CPA-153)

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How do you determine there is a potential
violation?

• Quality Assurance
• GM 450 part 407
• Documentation, Certification and Spot Checking
• GM 340 part 404
• Oversight Evaluation
• NPPH
• Step 9 Evaluate the Plan
• State Quality Assurance Plan
• National Food Security Act Manual
• Conservation Program Manual

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Annual Reviews vs. Contract Reviews

• 512.55
• Evaluation of Contract Implementation

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Annual Reviews

• Does not require participant
• NRCS-CPA-13 not required
• Schedule
• Success of applied practices
• OM

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How do you notify participant of the potential
violation?

• Contract Review
• If Annual Review indicates that the provisions of
  the contract are not being followed
• Not on schedule
• Failed practice
• Lack of OM
• Conduct a Formal Contract (Status) Review with
  the Participant
• NRCS-CPA-13 provided to participant
• NRCS-CPA-153 signed by participant with
  reasonable timeframe to comply

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How do you give them a chance to correct the
potential violation?

• NRCS-CPA-153
• Details of non-compliance
• Document all actions that need to be taken
• Reasonable Timeframe to comply
• Signature

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Failure to Remedy

• Proceed with Termination
• Termination Notification Letter (512.91L)
• Reason
• Regulatory basis
• Reasonable time to correct not met
• Consequences
• Adverse actions to be taken
• Termination
• Cost Recovery
• Liquidated Damages
• Forfeit of future payments
• Appeal rights

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Contract Administration

• Contract Modifications
• Land Transfers
• Canceling vs. Terminating
• Cost Recovery

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Cost Recovery

• Generally seek recovery of costs when terminated
• Refer to CPC Appendix for applicability
• Includes
• Liquidated Damages (Cost of NRCS TA)
• Not a penalty
• Refund of FA

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Assessment of Damages

• STC may reduce the amount of money owed
• All or Part
• If requested by participant
• With justification
• Supported by substantial evidence
• If acting in good faith
• Must be granted consistently
• Within the state and among states
• Inconsistency causes appeals

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Liquidated Damages

• Recovery of NRCS administrative and technical
  services
• Up to 20 of total FA funds obligated
• National model is general guidance
• StC may consider full amount allowed by the
  specific program contract appendix
• StC may follow table in CPM 512.58 for applicable
  programs
• StC may reduce amount in part or in full

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Guidance

• All contract violations must be handled using
  guidance in specific program regulations
• Statute
• Rule
• CPC Appendix
• Manual
• NBs and other policy guidance

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Contract Administration

• Contract Modifications
• Land Transfers
• Canceling vs. Terminating
• Cost Recovery

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Some days all you can do is smile and wait for
some kind soul to come pull you out of the bind
youve gotten yourself into.
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Equal Opportunity
"The U.S. Department of Agriculture (USDA)
prohibits discrimination in all its programs and
activities on the basis of race, color, national
origin, age, disability, and where applicable,
sex, marital status, familial status, parental
status, religion, sexual orientation, genetic
information, political beliefs, reprisal, or
because all or a part of an individual's income
is derived from any public assistance program.
(Not all prohibited bases apply to all programs.)
Persons with disabilities who require alternative
means for communication of program information
(Braille, large print, audiotape, etc.) should
contact USDA's TARGET Center at [phone]
(voice and TDD). To file a complaint of
discrimination write to USDA, Director, Office of
Civil Rights, 1400 Independence Avenue, S.W.,
Washington, D.C. 20250-9410 or call (800)
795-3272 (voice) or [phone] (TDD). USDA is
an equal opportunity provider and employer."