# Presentation: 398078

## Presentation by 
Robert Knauer, CPCM
DOT (M64) Washington, DC
Email: Robert.Knauer@dot.gov

- Robert Knauer, CPCM
- DOT (M64) Washington, DC
- Email: Robert.Knauer@dot.gov

**Post Competition Accountability-****Getting Ready for the Review and IV&V**

## Topics:

**Post Competition Accountability (PCA)**
**COMMUNICATIONS & KEY PLAYERS**
**What is PCA**
**WHAT ARE THE RULES—The FAR & CIRCULAR-**
**WHAT’S 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 III...Monitoring Performance
- Section IV...Post Competition Review
- Section V....Independent Verification & Validation

## Continuing Government Activity (CGA) under LOO
Performance Assessment/Surveillance Required
Contract Administration/Contracting Officer’s 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

- Performance Assessment/Surveillance Required
- Contract Administration/Contracting Officer’s 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**

**Early Communication Needed**

## Pre-Award (all prospective bidders/offerors)
Site Visit
Q&A’s
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

- Site Visit
- Q&A’s
- 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

**Real Early Communication**

##              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**

## 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 **

## 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

- 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

**Where are we Heading?**

**Notes:**
CPARS – Ensure reporting and documentation of past performance information
COR Training – DLA Training Center COR class and additional Acquisition classes – Federal Contracting Basics, Operating Practices in Contract Administration

## 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

- key to working and interacting
- with both the Contractor and the MEO SP (Under the LOO for MEO)
- Like a marriage

**Bottom Line:**

## 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 IV&V (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

- The FAR recommends performance reviews _for contracts_, so why not use the Post-Award Performance Review Process as part of the PCA Review and IV&V (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

**CIRCULAR REQUIREMENTS**

## 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. 

Option Years of Performance and Follow-on Competition.
 Terminations based on Failure/Not a failure to perform.

**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.
**Option Years of Performance and Follow-on Competition.**
-  **Terminations based on Failure/Not a failure to perform.**

##    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.

- 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.

**What the PCA looks at**

## 
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

- 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

**PCA Performance Review**

## 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

- 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

**How are Performance Reviews Handled?**

## 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?

- 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?

**A PCA Review is....**

## 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

- PCA Guidebooks- should be clear about the process used, yet flexible enough to apply.
- Many examples abound throughout Agencies and Consulting firms

**PCA Guidance**

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

**Verify Performance of Outputs**
**Verify Budgeted Expense against Actual Expense (cost)**
**Verify Quality per Standards **
**Workload **
**Verify Competition File Documentation**

**Objective of PCA Review IV&V**

## 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

**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

**MEO Assertion**

## Workload Changes

Actual vs. Projected (estimated) Costs

Actual Performance (against APLs)

- Actual vs. Projected (estimated) Costs
- Actual Performance (against APLs)

**A PCA Review Looks at:**

## All Adjustments are documented (Deviations/Modifications 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

**Modification** -Changes in Workload or Mission-  is an additive cost adjustment to be made
**Deviation**- Avoidance of Mission Failure -    non-additive cost adjustment

**Guidance for a Successful Review**

## 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

**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

**MOD/Deviation 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

**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**

**Workload Guidance**

## Add a Column for Tracking Workload and FTE 

**Add a Column for Tracking Workload and FTE**** **

## Workload Data for Performance Period 1
Use PWS Break-out
Show (Track) workload monthly, if possible.

List Changes in Workload/Services Performed
What’s 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 

- Use PWS Break-out
- Show (Track) workload monthly, if possible.
**List Changes in Workload/Services Performed**
- What’s 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

**Workload Documentation**

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

- Labor Costs
- unburdened
- Fully loaded
- Non-Labor Costs
- Material, ODC

**Cost Guidance**

## 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)

- 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)**

**Required Cost Documentation**

## 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

**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

**Performance Guidance**

## 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.

- 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.

**Performance Documentation**

## Effectiveness of Service Provider                     
(both Commercial & MEO SP) requires Administrative Mgmt  Oversight (it’s 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

- (both Commercial & MEO SP) requires Administrative Mgmt  Oversight *(it’s 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

**Performance Continued...**

## 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 

- 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

**Benefits of Reviews:**

## http://www.assess.biz/survey_form.asp?m=673&s=1801
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.

- 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.

**Please Fill out the Survey**