# Presentation: 216739

## Contract Management Area One Contracting TrainingMarch 22, 2007

- Lisa, Tim, Gerald

## Termination/Cancellation Policy

- Contract Reviews
- Contract Violations
- Terminations
- Cancellations
- Cost recovery
- Documentation

## Why?

- Active 1996 Farm Bill Contracts
- Utah O&E Review
- No TA after 2007

## Why?

- Unspent Obligations
- 11.4M in 2005 and prior with ZERO paid

## Why?

- Late Rates
- “Great Job, Utah!”
- Are we following contract review policy?

## Contract Reviews

- UT 300-07-01
- 440 CPM 512.55

## No substantive changes from previous manual version. 

Tentative deployment of ProTracts Contract Review module in early 2007.

- Tentative deployment of ProTracts Contract Review module in early 2007.

## Contract Reviews

## UT 300-07-01

- Review contract implementation annually (CPM 512.55)
- ASTC-FOs certify by 9/1/07, that FO’s have completed the review and have completed Quality Assurance activities performed by Non-NRCS’rs
-  If on schedule and contract provisions **are** being followed, DCs will document contract status. CPA-13 not required.
- If provisions **are not** being followed, the NRCS rep will conduct further review with the participant and document on CPA-13.
- ALL contract reviews will be signed by the NRCS representative.
- When the NRCS representative is a person other than the DC, _both the reviewing representative and DC will sign Form NRCS-CPA-13_. A copy will be provided to the participant, and the original will be placed in the contract folder.

## Quality Assurance Reviews

- DCs will review at least **ten percent (10%) **of all Non–NRCS contract status reviews. ASTC-FOs shall report completion, deficiencies noted, and actions taken to the State Conservationist.
- Contract items with concerns (*e.g., practice completed and paid by the Farm Service Agency but not shown as paid in ProTracts, etc.)* will be forwarded with the memo certifying completion of the review of all ProTracts contracts. Included contract number, contract item number, and reason for concern.

## Quality Assurance Reviews

**ProTracts Data**.  If data is not correct, such as cost/unit, or incorrect cost-share rate, a modification will be done to correct the data (*e.g., if the cost/unit migrated incorrectly from the Farm Service Agency, a modification will be done to correct the cost/unit to match the official cost list, etc.).*
**Correct Status in ProTracts**. If all contract items have been completed, then ProTracts will show a status of “completed” for the contract*. “Completed” status is determined by all contract items being certified complete, not by contract expiration. *
**Applicable CCC-1200** is in the contract folder, signed, and dated. *Please refer to Utah Bulletin 300-07-02 for obtaining CCC-1200s “after-the fact.”* NOTE – THIS BULLETIN HAS BEEN RESCINDED

## Quality Assurance Reviews

- Elements that will be annually reviewed _**with participants**_ include the following:
- Success of practices and systems completed.
- Operation and maintenance of practices and systems completed.
- Location and condition of all portable equipment purchased with CPC assistance.
- Confirmation that at least the benchmark level of treatment is maintained (CSP only).
- Status of practices not completed.
- Reasons for lack of progress.
- Need for revision of the conservation plan schedule of operations.
- Description of any potential violations of the CPC.
- Agreement on practices and a statement of technical assistance required to implement all required management and structural practices as required by the ranking and CCC1200 the next fiscal year.
- Confirmation that participants still control all land under contract.

## Contract Non-compliance and Violations

- No changes from prior CPC
- 440 CPM 512.70

## EQIP Contract Non-compliance and Violations

**7 CFR 1466.26(a)(1) Contract violations and termination:**
- ....give the participant a reasonable time to correct the violation....
- If a participant continues in violation, NRCS may terminate the EQIP contract.
- Notwithstanding....a contract termination shall be effective immediately upon a determination by NRCS that the participant has submitted false information or filed a false claim, or engaged in any act, scheme, or device

## EQIP Contract Non-compliance and Violations

- If NRCS terminates, participant will forfeit all rights for future payments and shall refund all or part of the payments received, plus interest
- NRCS may require only partial refund of the payments received if a previously installed practice can function independently, is not adversely affected and the participant agrees to O&M the installed practice for the lifespan of the practice.
- If termination, participant shall pay liquidated damages. NRCS will have the option to waive the liquidated damages, depending upon the circumstances of the case.
- NRCS may reduce the amount of money owed by the participant by a proportion that reflects the good faith effort of the participant to comply with the contract or the hardships beyond the participant’s control that have prevented compliance with the contract.

## WHIP Contract Non-compliance and Violations

**517.57  Canceling and Terminating Contracts**
**	****B.  Cost Recovery**
- NRCS may terminate a contract and require the participant to refund all or part of any assistance earned under that contract, plus interest, as well as require the participant to forfeit all rights for future payment under the contract**, **_***but not liquidated damages.***_

## Violations.....

- Falsely certify as LRP/BF
- Falsely certified land ownership/control
- Failure to implement/no good faith attempt
- Other examples?

## Documentation

- Annual Contract Reviews/Status Reviews
- Assistance Notes
- Letter to participant
- Cause of violation
- Basis for determination (regulatory/contractual)
- Reasonable time period to correct
- Adverse actions that may be taken (cancel, terminate, recovery, damages)

## Cancellations and Terminations

- 440 CPM 512.57
- UT 300-07-06 (revised)

- Sample Letter

## UT 300-07-06

- In FY2007, NRCS Utah will cancel, terminate, or modify all inactive contracts, contracts behind schedule, and contracts in violation.
- Requests to waive cost recovery must be supported by clear and compelling evidence of either a good faith effort to apply the terms and conditions of the contract, or hardships beyond the control of the participant.

## Procedures for canceling/terminating contracts:

- DCs) will submit all documentation to ASTC-P through the APS and ASTC-FO.
- Concurrence from the ASTC-FO will be denoted by signature at the bottom of the DC transmittal letter.
**(NEW)** For total contract obligations of $5,000.00 and under and where no cost-recovery is required, _**cancellations**_ will be completed at the area level by the ASTC- FO including informing the participants  in writing, with copies to the DC and ASTC -P.
- Note: All _**terminations**_ must be concurred by the State Conservationist.
- STC will, in writing, inform the participant of all other contract cancellations and terminations, with copies to the DC and ASTC-FO.
- District Conservationist will **enter cancelled /terminated** along with the date on the contract and **update the contract status** in Protracts.
**(NEW)** To ensure accountability and tracking the DC, APS, ASTC-FO, and Resource Conservationist - Program will record all actions taken, as appropriate, on the spreadsheet located on the state office shared drive (S:\NRCS\440 - PGM – Programs).

## When cancellation is requested by participant:

- Letter from DC to ASTC-Programs stating:
- Participant name and address
- Contract number
- Summary of practices installed to date, cost-share paid
- Amount of “slippage”
- Recommended recovery
- Copy of the CCC-1200 Appendix signed and dated by the participant.
- Letter from the participant to the DC requesting cancellation,reason for cancellation, and information on availability of any successors in interest.
- ASTC – FO’s concurrence and signature

## When termination is initiated by NRCS:

- Letter from DC to ASTC-Programs stating
- Participant name and address
- Contract number
- Date of termination
- Reason for termination
- Summary of practices installed including cost-share paid
- “Slippage”
- Recovery costs
- CCC-1200 Appendix (copy), signed and dated
- LTP-013 Status Review (signed by participant)
- ASTC – FO’s concurrence and signature

## Future Trainings? Your ideas....

- Assignments and Transfers
- Eligibility
- Protracts
- Ranking Tool Training (slated for May/June)
- Should we resume monthly updates?

**THE END**