# Presentation: 398090

## Lisa, Tim, Gerald

- Contract Modification Procedures and PolicyArea 1 Contracting TrainingThursday March 22, 2007

## Topics

- Contract Modification Policy
- In-Scope
- Cost Overruns
- Minor Modification
- Completing Mods
- Approving Mods

## Streamlining Contract Payments Training Module 

- Contract History Training Module

- New Forms Training Module

- Assigning  Payments Training Module

- For future and frequent reference!

## Policy

- 440 CPM 512.50

## Contract Modifications

- Require an NRCS Approving Official and participant signature.
- Documented on either the Revision of Conservation Plan/Schedule of Operations (Form NRCS-CPA-1156), or the Transfer Agreement (Form NRCS-CPA-152).
- These forms are signed electronically by the NRCS Approving Official, and signed manually by participants.

## Cost Overrun Modifications

- Contract modifications that exceed the lesser of 20 percent of the current contract obligation or $10,000 will require approval of the ASTC-P.
- ALL COR’s, where fund balance is >_____ require approval of ASTC-P.
- Approving Official will notify the ASTC-P.
- The contract basis for modification will include narrative justification for the increased cost.

## Minor Changes

- do not increase or decrease obligation by more than $1,000
- do not require approval by a NRCS Approving Official
- do not require participant signature.
- do not require documentation in the contract folder. Recorded in the history module in ProTracts and reflected on the printed Form NRCS-CPA-1156.

## Within-Scope Mods

- Original intent of the contract on the original land.
- To treat the original resource concern according to the ranking criteria for which contract approval was based.
- The original conservation practice is not technically feasible to be installed. NRCS will only provide cost share assistance up to the amount of the least cost option to treat the resource concerns.
- The practice may be deleted if no substitute practice is feasible.
- A practice is no longer necessary to address the resource concern originally identified.

## Prohibited Changes

- Change to the AERT after contract approval.
- Change or modify a cancelled, terminated, or expired contract.
- Change contract cost-share program.
-  Change contract number.
- Change contract state and county.
- Change contract fiscal year.

## Prohibited Changes, cont.

- Change resource concerns.
- Change the cost list linked to a contract to the current year cost list.
- Change in contract items to avoid loss of payments due to violation of HELC/WC provisions. The contract must be completed as scheduled without payment.
- Change or modify a contract item, or component that is certified and approved for payment.

## Documentation

- Cancel a contract
- DC writes “canceled” and date on all contract documents in the folder, and changes the contract status to cancelled in ProTracts.

## Documentation

- Terminate a contract
- DC writes “terminated” and date on all contract documents in the folder, and changes the contract status to terminated in ProTracts.
- This requires formal documentation with appeal rights provided to the participant.

## Documentation

- Add a participant		CPA-152
- Delete a participant		CPA-152
- Change payment shares	CPA-152

## Documentation, using Form 1156

- Change expiration date
- Change contract land units or legal description
- Change acres under contract
- Change CSP eligible acres
- Change CSP contract tier
- Change CSP contract years
- Add a practice/contract item
- Change contract item TA fund code
- Delete a practice/contract item
- Add land units to a practice

## Documentation, using Form 1156

- Remove land units from a practice
- Change contract item benchmark indicator
- Decrease component cost-share rate
- Increase component cost-share rate (LRP/BF only)
- Increase component unit cost
- Change cost share method/type (FY04-06)

## Slide 16

## Completing Contract Mods

- Through ProTracts modification module.
- After contract changes have been entered, Form NRCS-CPA-1156 will be printed for signatures.
- Changes will be identified on the form along with an explanation of the basis for the modification.
- Basis for mod will be selected from choice list with additional narrative information added by the planner on the modification approval screen in ProTracts.
- ProTracts will assign a number to the contract modification or minor contract change and update the status and changes to each of the contract items.

## Approving Mods

- The participant and NRCS Official will sign contract mod.
- Participant signatures on 1156 or 152 must match those designated on 1202.
- The effective date of a contract modification is the date it is signed by the NRCS Approving Official.
- Significant increases in contract obligations will be monitored to ensure compliance.

## No Signatures Required

- Scheduling changes within the original length of the contract.
- Increasing/decreasing planned amount of practice when the payment amount per CIN is not increased by more than $1,000.
- Add/delete a component from a planned practice.
- Change in contract servicing office.
- Edit crop types or acres, or livestock type.
- Add a vendor code to a participant.

## Signatures Required

- Losing control of land = mod to delete contract acreage.
- Extending or reducing the contract period (if mutually beneficial)
- Substituting a new contract item within a CPC. Must certify on 1156 that ranking score was not adversely impacted.
- >$1,000 increase (per practice) contract cost resulting from quantity variations

## Signatures Required, cont.

- Destroying a practice established under the contract or any existing practice for which maintenance is specified.
- Changing contract information such as adding a participant or adjusting shares.
- Reapplying a conservation treatment that failed at no-fault of the participant.
- Adding TSP services to a contract.
- Changing the method of cost-sharing or adding a payment cap for a practice.
- Change in CSP tier or contract length.

## Slide 22