Presentation by

1
Post Competition Accountability-Getting Ready
for the Review and IVV

• Presentation by
• Robert Knauer, CPCM
• DOT (M64) Washington, DC
• Email Robert.Knauer_at_dot.gov

2
Topics

• Post Competition Accountability (PCA)
• COMMUNICATIONS KEY PLAYERS
• What is PCA
• WHAT ARE THE RULESThe FAR CIRCULAR-
• WHATS REQUIRED BY THE CIRCULAR
• DISTINCTIONS
• DIFFERENCES WITH CONTRACT vs. LOO
• PCA Guidebook Guidance for Post Competition
  Assessment-
• A Guide for Upcoming Reviews (there are MANY)
• http//www.dot.gov/ost/m60/fairact/
• Section I..Conducting the Competition
• Section II.Implementing the Performance Decision
• Section IIIMonitoring Performance
• Section IVPost Competition Review
• Section V.Independent Verification Validation

3
Early Communication Needed

• Continuing Government Activity (CGA) under LOO
• Performance Assessment/Surveillance Required
• Contract Administration/Contracting Officers
  Representative (COTR/COR) duty
• Contractor (Industry)
• Perform services per the written contract
• Meet all Acceptable Performance Levels (APL) in
  PRS (Exhibit to the PWS or RFP)
• Contract Officer/Contract Administrator
• Interact with Contractor CGA (LOO) MEO SP
• Resolve contractual issues, negotiate
  revisions/changes, issue modifications
• Functional Operations Representative

4
Real Early Communication

• Pre-Award (all prospective bidders/offerors)
• Site Visit
• QAs
• Based on the solicitation (IFB or RFP)
• Post-Award Conference (FAR Part 42)
• Walk through of contract or Letter of Obligation
  with all parties (Contract for Vendors/ LOO for
  Government )
• Meet and greet with top-level personnel involved
• Transition Period for both (LOO or Contract)
• Contracting Office, CGA, and Contractor
  involvement

5
On-going Communication After Award

• Daily communication/interaction between the
  Contract Office, COTR and Site Manager (Govt.
  or MEO)
• Weekly SITREPs to monitor performance against APL
  as required (big problem)
• Monthly APL reports from Contractor CGA to the
  Contract Officer (CO)
• Discussions with (Contractor/LOO Manager) and
  get-well plans may be needed
• Conflict Resolution is duty of CO, COTR, MEO
  Mgr., Functional leadership of the organization

6
On-going Communication

• Quarterly on-site meetings with Service Providers
  should be held with Contractor CGA (LOO)
• Quarterly meeting should be held w/COTR,
  Functional Program Director, Contracting Officer,
  Contract Administrators (Govt. Only)
• Discuss Lessons Learned/What Works
  Best/Resolution
• Performance Work Statement (PWS matrix) tied to
  spreadsheet tracking

7
Where are we Heading?

• Strategic Alliances and Partnerships
• ATO/MEO teaming with Contractors much like FAA
  did
• Industry Primes with Sub-contractors or teaming
  partners
• Proposal Requirements and Tracking of
• Increased Communication Documentation
• Policy and Procedure focus on both Pre-and-Post
  Award Issues for Contracts and LOO.
• Contractor Performance Assessment Reporting
  System (CPARS) for Contracts and the MEO
• More COTR Training
• COTR File Documentation
• Competition File Maintenance

8
Bottom Line

• Constant Communication is the
• key to working and interacting
• with both the Contractor and the MEO SP (Under
  the LOO for MEO)
• Like a marriage

9
CIRCULAR REQUIREMENTS

• New OMB Circular Neither Requires Nor Prohibits
  Post Award Reviews for CGA, but it is
  required for contracts!
• The FAR recommends performance reviews for
  contracts, so why not use the Post-Award
  Performance Review Process as part of the PCA
  Review and IVV (for the LOO) even if not
  required. (Make use of a good tool).
• Does PCA Review serve as a PAR? NO, but the PAR
  can serve to supplement the PCA Review.
• Nature and Approach of Reviews Will Change over
  time

10

• Best Practices Lessons Learned posted at SHARE
  A-76!
• Execute Tracking of all Competitions via a data
  base.
• Submit Competitive Sourcing Quarterly Reports
• Monitoring Performance, Regardless of service
  provider
• 1. Monitor performance for all performance
  periods stated in the solicitation
• 2. Implement the quality assurance surveillance
  plan
• 3. Retain solicitation/other documentation from
  the competitions in competition file
• 4. Maintain the currency of the contract file iaw
  FAR Subpart 4.8
• 5. Record the actual cost of performance by
  performance period
• 6. Monitor, collect, and report performance
  information, consistent with FAR Subpart
• 42.15, for purposes of past performance
  evaluation in a follow-on competition. To
• record the actual cost of performance for a
  specific performance period, the agency
• shall adjust actual costs for scope, inflation,
  and wage rate adjustments made during
• a specific performance period. The agency shall
  compare the actual costs to the
• costs recorded on SCF Lines 6 and 7 when the
  performance decision was made.

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What the PCA looks at

• Post Competition Accountability Review
• Reviews Performance if Government Wins and an MEO
  is implemented IAW the LOO.
• MEO compliance (LOO, Staffing, PWS, QA, Costs)
• Reviews Performance of All Winners both MEO LOO
  Contract
• It Assures Accountability to the Taxpayer!
• CO can use the PCA process as part of his/her
  Enforcement Mechanism for continued poor
  performance.

12
PCA Performance Review

• Added as a Performance Safety Check by OMB
• Circular Now Emphasizes Performance
  Accountability as does the OFPP nominee in his
  comments to Congress.
• Types of Monitoring are NOT Specified, nor should
  they be.
• Each outcome is different and unique.
• QASP provides recommendations for surveillance.
• A Good Management Practice
• Helps Withstand Any Audits and ease Inquiries
  responses
• It is Audit-Like Independence should be Required

13
How are Performance Reviews Handled?

• Government MEO
• IAW with Post Competition Accountability
  Guidebook (many)
• Workload is analyzed
• Adjustments must be accounted for (via
  MOD/Deviations)
• Cost (Budget Estimate vs. Actual Execution)
  within 5 annually
• Performance is documented
• Corrective action taken
• Recommendations should be made for future
  improvement
• Commercial Contractor
• Workload analyzed (per the contract)
• Adjustments (Contract MOD) necessary and
  explained per the contract file?
• Are Costs (Invoices) proper, justified and
  properly paid?
• Performance is documented and corrective action
  taken, as needed
• Recommendations for improvement discussed, as
  needed

14
A PCA Review is.

• Mandatory after 1 year full performance
• Optional thereafter, but still a good practice
• Products a Draft and Final Management Report
  with Recommendations
• Draft Report due 30 days after PCA start
• Final Report to Requiring Activity (CSO/CO) in 60
  days
• Contract Performance Assessments are always
  ongoing, so why not PCA?

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PCA Guidance

• OMB Circular A76 (very light)
• PCA Guidebooks- should be clear about the process
  used, yet flexible enough to apply.
• Many examples abound throughout Agencies and
  Consulting firms

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Objective of PCA Review IVV

• Verify MEO Implemented (staffing)
• Verify Performance of Outputs
• Verify Budgeted Expense against Actual Expense
  (cost)
• Verify Quality per Standards
• Workload
• Verify Competition File Documentation

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MEO Assertion

• Prior to the PCA Review, the Agency Must Assert
  that the Service Provider (MEO) or Contractor is
  Ready for the Review whereas contractors should
  always to be ready including
• Workload Information
• Cost Data, if not an FFP contract.
• Performance Data is Available (automated or
  manual)
• Contract or Competition file contains all MODS
• If Management says it is ready, the PCA Review
  should begin
• If Assertion Not Made, PCA Review Will Not be
  Performed
• Implications are many

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A PCA Review Looks at

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

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Guidance for a Successful Review

• All Adjustments are documented (Deviations/Modific
  ations to MEO, Processes, and Cost Estimate)
• Modification -Changes in Workload or Mission- is
  an additive cost adjustment to be made
• Deviation- Avoidance of Mission Failure -
  non-additive cost adjustment

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MOD/Deviation Guidance

• 3rd Party Perspective
• Ask the Question Would a CO have reasonably
  granted a MOD to another contractor under similar
  circumstances? The answer should be Yes
• General Process
• Site Manager for Service Provider Submits Request
• Requiring Activity Approves or Denies the Request
• Timely -- Proactive vs. Reactive because business
  must continue doing the work

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Workload Guidance

• Closely Monitor Workload
• COTR/COR/PM/SP Management all involved
• Track all workload as identified in the PWS
• Good source Use Crosswalk (help track changes to
  FTE count)
• Adjust Resources as Needed- Accomplish Workload,
  and keep track of resources (PM)
• Request Modification
• Keep the Competition File Updated

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Add a Column for Tracking Workload and FTE
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Workload Documentation

• Workload Data for Performance Period 1
• Use PWS Break-out
• Show (Track) workload monthly, if possible.
• List Changes in Workload/Services Performed
• Whats New or added
• What jobs, if any have been deleted
• Helps keep PWS and workload up to date
• Copy of original technical and cost proposals
• Copy of all modifications to
• Contract file
• Letter of Obligation

24
Cost Guidance

• Include and Fully Document All Adjustments
  Requests
• Labor Costs
• unburdened
• Fully loaded
• Non-Labor Costs
• Material, ODC

25
Required Cost Documentation

• Labor Costs (MEO) Line 1 SCF
• Unburdened/Fully burdened
• Overtime/Special Pay/Premiums, etc.
• Monthly breakout, if possible
• Non-Labor Costs Line 2 3
• Material/Supply costs-Travel, training,
  equipment, etc.
• Other attributable costs--
• Subcontract costs (can be very large!)
• Actual Invoices (Commercial)
• With supporting documentation
• Outstanding claims, if any
• Cost adjustments/modifications
• adjustments for inflation and pay
• OH will be compared at 12 (a wash)

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Performance Guidance

• Closely Track Performance Frequently (should be
  monthly, if possible by the COTR or COR)
• Analyze for Compliance -the (AQL or APL) for
  tasks.
• 
  5 95
• Use the AQL or APL in PWS exactly, unless
  adjusted!
• Consider Use of Adjustment Requests
• Rely on Internal Data Base Sources of Information

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Performance Documentation

• Measure against AQL/APL
• Monthly or per your Quality Assurance Plan by
  COTR
• Measure Outcomes Against PWS
• Document Results of QA Reviews
• Issue Cure Orders and Get-Well Plans
• TERMINATION? An MEO just like a contract can be
  terminated for default per the Circular.
  Authority vests with the CO.

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Performance Continued

• Effectiveness of Service Provider
  
• (both Commercial MEO SP) requires
  Administrative Mgmt Oversight (its a
  problematic issue)
• When Deficiencies Discovered
• Fully Document the Get-Well Plan
• Track Progress, and ensure corrections made
• Document corrections
• Agency Performance Accomplished Using
• PWS IAW the LOO as their Contract with MEO SP
• Contract with commercial SP

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Benefits of Reviews

• Service Provider (Commercial MEO SP)
• Helps Pass the PCA Performance Review
• Puts MEO in a Good Position to Pursue becoming a
  High Performing Organization
• Agency Should Experience an Advantage During Any
  Re-competition
• Management (Government)
• Helps Reflect True Costs Actual Performance
• Helps Ingrain Better Accountability to Taxpayers
• Provides Better Process Direction and
  Productivity Payoffs

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Please Fill out the Survey

• http//www.assess.biz/survey_form.asp?m673s1801
  
• Will be posted at the LNL PMA website
• Only has 12 simple questions to answer
• Statistics will be compiled for OMB and DOT
• Survey Form is anonymous unless you want to
  indicate your name.