Utilities Privatization Contract Transfer Briefing

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Utilities PrivatizationContract Transfer Briefing
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Overview

• DoD Supplemental Guidance
• Issues for Discussion
• Required Reading

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DoD Supplemental Guidance

• Calls for the Procuring Contracting Officer (PCO)
  to transfer contract administration to an
  Administration Contracting Officer (ACO) as
  outlined in FAR 42.202
• ACOs will be given
• DoD Privatized Utilities Contract Administration
  Guide
• Utilities Privatization Service Contract Price
  Redetermination Guidance Manual
• Transfer procedures will include this on-site
  contract transfer briefing with Government and
  contractor personnel

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Issues for Discussions

• ACO, Contracting Officers Technical
  Representative (COTR), and contractor designated
  representative responsibilities
• Specific and unique aspects of the contract
• Terms and Conditions Price Redetermination
  period
• Transition period
• Operations and Maintenance schedules
• Renewal and Replacement schedules
• Capital investment and improvement schedules
• Required submittals

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Issues for Discussion (cont)

• Billing method/invoicing procedures
• Outage reports
• Meter reading reports
• System efficiency reports
• Recovery plans
• Excavation permits
• Controlled access of vehicles
• Building coordinators
• Real estate easement/right-of-way
• Joint inventory requirement
• Bill of Sale

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Issues for Discussion (cont)

• Secure area access
• Performance metrics
• Points of demarcation
• Service call procedures/response times
• Service Interruption/ Contingency Plan
• Digging permit process
• New service connections
• Five-year Capital Improvement Plan
• Contract inspection and oversight and
  construction standards

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Responsibilities

• Administrative Contracting Officer (ACO)
• Establish the Contract Management Team
• Clarify requirements or terms in response to
  questions from contractor
• Negotiate contract changes and price with
  contractor
• Ensure contract requirements are met

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Responsibilities

• ACO (cont)
• Resolve disputes
• Terminate contract, if necessary, for either
  default or convenience
• Modify contract to reflect changes in
  requirements or terms and to reflect changes to
  contract price
• Ensure prompt payments

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Responsibilities

• ACO (cont)
• Provide written evaluation of contract
  performance to contractor, highlighting contract
  requirements inadequately executed during
  evaluation period
• Record and maintain contractor performance
  information to meet requirements of FAR 42.15,
  Contractor Performance Information
• Close out contract when complete

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Responsibilities

• Contracting Officer Representative (COR)/
  Contracting Officer Technical Representative
  (COTR)/Quality Assurance Evaluator (QAE)
• Act as contractors point of contact for
  technical issues
• Coordinate with BCE for activities requiring
  utilities support
• Review and coordinate contractor actions that
  impact Installation, mission, systems or
  projects, e.g., outage requests, construction,
  maintenance, etc.

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Responsibilities

• COR/COTR/QAE (cont)
• Coordinate digging permits submitted by
  contractor
• Notify contractor of base actions that impact
  contractors system or require contractors
  support
• Coordinate and submit valid customer complaints
  and outages to the contractor via the ACO for
  correction
• Prepare Quality Assurance Surveillance Plan
  (QASP)

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Responsibilities

• COR/COTR/QAE (cont)
• Incorporate contractors service practices and
  standards into QASP from contractors plans
• Service Interruption/Contingency Plan
• Quality Management Plan
• Capital Upgrades and Renewals and Replacements
  Plan
• Update/maintain the QASP as necessary resulting
  from contract changes
• Observe and document contractor performance in
  accordance with the QASP

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Responsibilities

• COR/COTR/QAE (cont)
• Observe contractors operation and maintenance
  (OM) procedures and practices to ensure
  established service practices and standards are
  followed
• Review contractors records to ensure
  coordination with installation organizations for
• Routine, urgent, and emergency service requests
• Service curtailments
• Digging permits
• New construction standards
• Clear zone restrictions

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Responsibilities

• COR/COTR/QAE (cont)
• Record unscheduled outages and power quality
  fluctuations
• Review contractors monthly submittals for
  accuracy and completeness
• Monitor contractors performance to verify
  performance in accordance with the terms of the
  contract

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Responsibilities

• COR/COTR/QAE (cont)
• Review contractors monthly invoice
• Verify and track major maintenance and capital
  improvements to the system
• Report contractor performance to the ACO

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Responsibilities

• Civil Engineer
• Budget and program for utilities privatization
  contract
• Coordinate new connections and disconnections to
  the utility system
• Communicate mission changes that impact utility
  system

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Aspects of the Contract

• Government transferred ownership of the utility
  system to the contractor - he owns it!
• We entered into a service contract with the same
  contractor to maintain system infrastructure and
  provide utility service to the installation
• Utility service contract does not include the
  purchase of the utility commodity

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Terms and Conditions

• Section C of the contract describes the work
• Major parts include
• C.3, Requirement
• C.6, Right of Access
• C.7, Service Interruption/Contingency Plan
• C.8, Routine, Urgent, and Emergency Repair
  Response
• C.9, Coordination of Work
• C.10, Environmental Compliance
• C.11, Upgrades and Renewals and Replacements
• C.13, Transition Plan
• J-Sections include base-specific terms and
  conditions

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Price Redetermination Period

• FAR 52.216-5 Price Redetermination Prospective
  (Oct 1997) (RFP para. I.7.1) applies to this
  contract
• The first period shall extend from the date of
  the contract to two years after the initial date
  of contract performance, and the second and each
  succeeding period shall extend for 36 months from
  the end of the last preceding period
• See DESCs Utilities Privatization Service
  Contract Price Redetermination Guidance Manual,
  May 05 for details on price redetermination

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Transition Period

• RFP Section C.13 covers the contractors
  Transition Plan and Transition Period procedures
• For this contract, the Transition Period is from
  _______ to _________
• Briefer go through Section C.13 paragraph by
  paragraph

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OM Schedules

• Schedule L-1 of the contractors proposal shows
  the OM charge and how it relates to the Fixed
  Monthly Charge
• Contractors Quality Management Plan (QMP) shows
  performance standards and/or specifications that
  the Contractor will comply with for construction,
  operation, maintenance, management,
  environmental, disaster recovery, and safety
• QMP address all applicable federal, state,
  interstate, and local laws/regulations, the most
  current version of any base-specific requirements
  defined in the utility-specific attachments
  (Section J), and best engineering and management
  practices

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RR Schedules

• Schedule L-1 of the contractors proposal shows
  the RR charge and how it relates to the Fixed
  Monthly Charge
• Schedule L-2 shows the complete 50 year Renewal
  and Replacement schedule
• Contractor submitted a Capital Upgrades and
  Renewals and Replacements Plan with his proposal,
  which is now part of the contract
• RFP Para C.11.2.1, Renewals and Replacements,
  offers good description of what RR is

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Capital Investment and Improvement Schedules

• Contractor submitted a Capital Upgrades and
  Renewals and Replacements Plan with his proposal,
  which is now part of the contract
• Plan is specified in para C.11.2, and is a 5-year
  plan
• Plan must be revised, updated, and resubmitted
  each year to cover the next five years
• Also see paragraph C11.2.2 for Initial Capital
  Upgrades

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Required Submittals

• DESCs DoD Privatized Utilities Contract
  Administration Guide, dated 22 Apr 05, Table 1,
  under Submittals, Invoicing and Payments, lists
  all submittals required by the contract, the
  reference requiring it, who does the review, and
  the frequency of the review
• Specific monthly submittals listed in Section
  J.x.6, include
• Outage Reports
• Meter Reading Reports
• System Efficiency Reports

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Billing Method/Invoicing Procedures

• See Section G.2, Submission and Payment of
  Invoices
• Government pays contractor for utility service
  through a Fixed Monthly Charge
• Utility services will be billed according to the
  Sub-CLIN items in Schedule B-2 or Schedule B-3 on
  a monthly basis.
• The contractor shall prepare and send one
  original invoice and four copies to the
  Installation for payment by the 25th of each
  month for the previous months billing period.
  Invoices shall be sent to the recipient and
  address identified in the utility-specific
  attachments (Section J).

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Recovery Plans

• Contractors submitted a Service
  Interruption/Contingency Plan, IAW Section C.7 of
  the RFP, which covers
• Cause of interruptions
• Detailed contingency plan of action (including
  Government notifications)
• Estimated time for reestablishment of temporary
  service
• Estimated time for reestablishment of permanent
  service
• PCO approves the Service Interruption/Contingency
  Plan prior to implementation
• ACO approves any subsequent revisions, prior to
  implementation

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Excavation Permits

• RFP Para C.9.5 covers Excavation Permits
• Contractor shall obtain written excavation permit
  from the Contracting Officer or designated
  representative before commencing any digging or
  excavation on the installation
• Excavation permit will contain requirements
  normally applied to similar excavation work on
  the installation
• Contracting Officer or designated representative
  will notify the contractor as to reasonable time
  periods for applying for an excavation permit

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Controlled Access of Vehicles

• RFP Section C.6 covers Right of Access to the
  base
• Markings on the contractors property, including
  vehicles, for the purpose of identifying it as
  the contractors property are covered in para
  C.5.3
• Briefer go over base-specific instructions for
  obtaining passes and base-specific access
  requirements

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Building Coordinators

• Briefer include list of Building Coordinators
  here

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Real Estate Easement/Right of Way

• Contract Section 4.6 is the section that governs
  Right of Access to the Utility System, and
  includes
• Access
• Condition of the Premises
• Alteration of the Premises
• Access for Restoration
• Other Grants of Access
• Restoration of Premises
• Briefer If contract contains a Right of Way,
  go over it in detail here

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Joint Inventory Requirement

• Contractors Operational Transition Plan includes
  a detailed plan, schedule, and checklist for the
  joint inventory of personal property transferring
  from the Government to the Contractor
• IAW para C.13.6.4, the joint inventory will be
  completed prior to the contract start date
  (during the Transition Period)
• Operative word is JOINT!!

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Bill of Sale

• Attachment J42 is the Bill of Sale
• Final Bill of Sale will be amended to reflect the
  results of the joint inventory

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Secure Area Access

• Briefer go over base-specific Secure Area Access
  requirements here

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Performance Metrics

• DESCs DoD Privatized Utilities Contract
  Administration Guide, dated 22 Apr 05, Tables 2A
  and 2B under Surveillance Approach Common to All
  Utilities, list
• Required Services
• Performance Objectives
• Performance Requirements
• Performance Thresholds
• Tables 3A, 3B, and 3C in same Guide provide a
  Surveillance Calendar with
• Frequency
• Methods
• Tools

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Points of Demarcation

• Briefer go over base-specific Points of
  Demarcation the system here

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Service Call Procedures/Response Times

• RFP Section C.8 covers Routine, Urgent, and
  Emergency Repair Response, including
• Notification Procedures
• Emergency, Urgent, and Routine Service Requests
• Action
  Emer Urgent Routine
• Knowledgeable Rep on Site 1
  hr 24 hrs
• Repair Crews Respond
  2 hrs 5 days
• Condition Eliminated or Downgraded 24 hrs
  5 days 30 days
• RFP Section C.9 covers Coordination of Work

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Service Interruption/Contingency Plan

• Contractors submitted a Service
  Interruption/Contingency Plan, IAW Section C.7 of
  the RFP, which covers
• Cause of interruptions
• Detailed contingency plan of action (including
  Government notifications)
• Estimated time for reestablishment of temporary
  service
• Estimated time for reestablishment of permanent
  service
• PCO approves the Service Interruption/Contingency
  Plan prior to implementation
• ACO approves any subsequent revisions, prior to
  implementation

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Digging Permit Process

• Briefer go over the base-specific process for
  the contractor to obtain a digging permit
• See Section C.9.5, Excavation Permits

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New Service Connections

• C.11.2.5 Connections and Disconnections, covers
  New Service Connections
• Capital Upgrades and Renewals and Replacements
  Plan includes a list of anticipated new service
  connections, including preliminary design and
  estimated construction costs
• The Government will provide list of new service
  requirements and anticipated disconnections

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Five Year Capital Improvement Plan

• Contractor submitted a Capital Upgrades and
  Renewals and Replacements Plan with his proposal,
  which is now part of the contract (specified in
  para C.11.2)
• Plan must be revised, updated, and resubmitted
  each year to cover the next five years
• Also see paragraph C11.2.2 for Initial Capital
  Upgrades
• Briefer go over specifics of the plan

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Contract Inspection Oversightand Construction
Standards

• Contractors QMP defines operations and
  maintenance policies and procedures that
  implement all defined standards
• RFP Section L.6.2, Subfactor 2 Quality
  Management Plan, outlines details of QMP
• Contractors approach to quality service
• Table L-1, Service Standards Criteria, shows
  applicable criteria for all 4 systems

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Required Reading

• The Contract
• Contractors Submittals
• Operational Transition Plan
• Quality Management Plan
• Service Interruption/Contingency Plan
• Capital Upgrades and Renewals and Replacements
  Plan
• DESCs DoD Privatized Utilities Contract
  Administration Guide, dated 22 Apr 05
• DESCs Utilities Privatization Service Contract
  Price Redetermination Guidance Manual, May 05

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