14 FAH-2 H-500
POST-AWARD CONTRACT ADMINISTRATION
14 FAH-2 H-510
POST-AWARD CONTRACT GENERAL
(CT:COR-46; 04-20-2017)
(Office of Origin: A/OPE)
14 FAH-2 H-511 ADMINISTRATION
(CT:COR-46; 04-20-2017)
a. To assure performance of a contract so that the U.S.
Government receives the value paid for, contracting officers representatives
(COR) monitor the contractor's performance and take prompt action to correct
problems. This is one of the most vital elements of what is called contract
administration.
b. The goal of contract administration is to ensure
that the contract is performed, as written, by both the contractor and the U.S.
Government. Here the emphasis is on "as written." U.S. Government
personnel dealing with a contractor must understand that when the U.S.
Government acts as a party to a contract, its authority to direct the actions
of a contractor rest primarily in the written words of the contract.
c. Contract administration begins when the contract
has been signed and ends with the administrative actions taken at contract
closeout, after performance has been completed and the contractor has received
final payment. Contract administration includes:
(1) Monitoring
the contractor's technical progress;
(2) Approving
invoices for payment in accordance with contractual terms;
(3) Reviewing and
consenting to subcontracts when required;
(4) Monitoring
subcontractor performance as appropriate;
(5) Controlling
U.S. Government property; and
(6) Monitoring
contract modifications and terminations.
d. Ultimately, the administration of a contract is the
responsibility of the contracting officer who is the only person who may modify
the contract or take action to enter into or change a contractual commitment on
behalf of the U.S. Government. However, the contracting officers
representative (COR) plays a crucial role in contract administration as
described below.
14 FAH-2 H-512 CONTRACT INTERPRETATION
(CT:COR-23; 08-06-2014)
a. The prime reference for performance is the plain
language of the contract. U.S. Government regulations and procedures provide
direction and guidance, but they do not alter the written contract terms.
b. Contracts must list the applicable contract
clauses. The contracting officers representative (COR) must be familiar with
these clauses. Refer questions regarding contract language to the contracting
officer. CORs should in particular understand the statement of work,
specifications, invoicing and payment provisions, government property
responsibilities (if assigned), and inspection and acceptance terms.
c. Once the contract has been awarded, the COR's first
responsibility is to read and understand the contract. U.S. Government
contracts are subject to the same common law rules of interpretation applied to
other contracts. Some of these rules are:
(1) The intent of the parties must be gathered from
the whole contract;
(2) The standard for the interpretation of the written
contract is the meaning that would be attached to the writing by a
knowledgeable, objective third party;
(3) Specific provisions prevail over general
provisions when in conflict;
(4) A standard clause entitled "Order of
Precedence" resolves inconsistencies within the contract provisions by assigning
precedence in a specified order within the contract parts;
(5) An ambiguous provision subject to more than one
interpretation will be interpreted against the party responsible for creating
it (in U.S. Government contracts, this is almost always the U.S. Government, as
the contract provisions are normally prepared by the U.S. Government); and
(6) Everyday words are given their dictionary
definitions.
14 FAH-2 H-513 THE CONTRACTING
OFFICER'S REPRESENTATIVE's (COR) ROLE IN CONTRACT ADMINISTRATION
(CT:COR-46; 04-20-2017)
a. The legal responsibility for administration of the
contract remains with the contracting officer. The contracting officers
representative (COR) functions as the technical representative of the
contracting officer and stays in close communication with the contracting
officer (CO), relaying any information affecting contractual commitments and
requirements.
b. Generally, the contracting officer authorizes the
COR to perform the following functions independently:
(1) Correspond directly with the contractor (the
contracting officer receives copies of all correspondence);
(2) Conduct on-site visits;
(3) Hold conferences with the contractor;
(4) Approve all technical data submitted by the
contractor;
(5) Provide direction to the contractor in technical
matters as long as the direction is:
(a) Within the scope of the contract as written; and
(b) Will not affect cost, period of performance; or
(c) Other terms and conditions of the contract; and
(6) Approve invoices for payment.
c. In addition to exercising delegated authorities,
the COR is expected to:
(1) Advise and assist the contracting officer in
administering the business aspects of the contract by reviewing vouchers,
invoices, reports, and deliverables;
(2) Maintain a file documenting significant actions
and containing copies of trip reports, correspondence, reports and deliverables
received under the contract;
(3) Coordinate requirements office decisions relating
to the contract; and
(4) Prepare final summary statements for contract closeout.
d. Contract administration responsibilities of the
contracting officers representative (COR) and the contracting officer (CO) are
charted in 14
FAH-2 Exhibit H-513.
14 FAH-2 H-514 LIMITATIONS ON
contracting officers representatives (COR) AUTHORITY
(CT:COR-23; 08-06-2014)
The contracting officers representative (COR) must not
direct the contractor to undertake any activity which will change the:
(1) Total price or estimated cost;
(2) Product deliverables;
(3) Work requirements;
(4) Delivery dates;
(5) Total period of performance; and
(6) Administrative provisions of the contract.
14 FAH-2 H-515 SUPERVISOR'S
PARTICIPATION IN CONTRACT ADMINISTRATION
(CT:COR-46; 04-20-2017)
a. Being designated as a contracting officers
representative (COR) places unique demands on an individual and establishes a
direct channel of communication between the contracting officer and the COR.
The supervisor of an individual who has been appointed as a COR has a
responsibility to provide guidance to that individual; however, such guidance
should not conflict with the contracting officer's letter of designation to the
COR. The supervisor should ensure that the COR has the personal support,
resources, and time needed to perform his or her functions. The contracting officer
(CO) and the supervisor should also ensure the COR has had the appropriate
training as described in 14 FAH-2
H-143.1.
b. Supervisors of individuals being designated as CORs
generally are responsible for preparing the memorandum nominating the individual
as a COR. Supervisors must also approve an application by a potential COR to
become FAC-COR certified. (Reference Federal Acquisition Certification for
Contracting Office's Representative).
c. Evaluation of COR performance where that
performance constitutes a minimum of 25 percent of the individuals work
responsibilities requires coordination between the contracting officer and the
supervisor. Supervisors must ensure that the COR has appropriate work
commitments reflecting the specific COR responsibilities. Supervisors must
request input from the contracting officer via email or memo on COR performance
of contract administration duties. Supervisors of detailees, when actually
employed (WAE) staff, temporary-hire 3161 employees, and personal services
contractors (PSCs) serving as CORs, must also document the adequacy of
performance of COR duties to include input from the contracting officer.
14 FAH-2 H-516 POST-AWARD ORIENTATION
AND CONFERENCES
(CT:COR-46; 04-20-2017)
a. Post-award orientation is useful for ensuring that
the contractor understands contract requirements and for delineating the roles
of U.S. Government personnel and the procedures that will be followed in
administering the contract. Orientation brings together key individuals (both
U.S. Government and contractor) who participated in the pre-award phase with
those responsible for the post-award administration of the contract. It also
affords an opportunity for the orderly transition of contractual duties and
obligations if different personnel are to assume post-award responsibility.
b. In relatively simple acquisitions, post-award
orientation may be accomplished by a letter from the contracting officer that
identifies the U.S. Government's contract administration officials and any special
or unusual requirements.
c. The contracting officer may decide that a
post-award conference is needed if there are indications that the contractor
lacks a clear understanding of the contract requirements, or if the contract
work is complex. If a conference is held, the contracting officer will chair
the conference. The post-award conference should be preceded by a meeting of
U.S. Government management personnel in order to formulate an agenda. Agenda
topics might include:
(1) Clarification of the specifications or the
contents of the Performance Work Statement and/or identification of ambiguous
clauses;
(2) Clarification of special contract terms/clauses;
(3) Reporting requirements and procedures for
monitoring and measuring progress;
(4) Billing, voucher approval, and payment procedures;
(5) Quality-control and testing requirements;
(6) Discussion of lines of authority, i.e., COR
responsibilities versus contracting officer responsibilities;
(7) Furnishing and control of U.S. Government
property, if applicable;
(8) Government support such as office space or life
support at posts; and
(9) Anticipated problem areas.
d. Performance in countries with high potential for
trafficking in persons (TIP) violations warrant a post award conference to
ensure contractors understand the requirements of TIPs prevention. For more
information on combating trafficking in persons, see clause 48 CFR 52.222-50,
Combating Trafficking in Persons. Topics to be discussed should include:
(1) Importance of preventing TIPs: This is an issue
that the U.S. Government feels strongly about. Sanctions for violations,
including termination for default and dismissal of employees, are harsh;
(2) Zero tolerance policy: The U.S. Government has a
zero tolerance policy. Every instance of trafficking is important and no
instance will be minimized. Every violation must be reviewed and addressed;
(3) Brief employees: Anyone associated with the
performance of the contract must be briefed on preventing trafficking in
persons. This briefing should include the nature of trafficking, where it
takes place, how to recognize it, and the importance of avoiding situations
such as commercial sex that provide financial incentives for engaging in TIPs;
(4) Commercial sex: Contractors and their employees
may not utilize commercial sex establishments during the performance of the
contract regardless of the legal status of prostitution in the country of
performance;
(5) Contractor-provided housing: Contractors will be
held accountable for an adequate housing plan. Contractors who provide worker
accommodations must ensure these accommodations meet local host-nation labor
and health laws and are clean and adequate. Contractors should submit a
housing plan with their proposals if housing will be provided. Contractors
must update the plan during performance if it changes;
(6) Do not withhold passports or visas: Contractors
may not withhold employee passports or visas without employee permission
because this may have the effect of preventing the free movement of employees
who no longer want to work for the contractor. It has the appearance of bonded
labor, which is prohibited;
(7) Plan for understanding local labor laws:
Contractors need to understand the local labor laws. The contractor should be
able to articulate a plan for how to keep abreast of changes in the laws;
(8) Written employment agreement: Contractors who
recruit third-country workers for the contract must provide a written
employment contract describing the work, working conditions, pay, and clear
explanations for salary deductions. Employees must understand why wages are
being withheld; otherwise, the situation may resemble bonded labor with
employees owing more than they make and only working to pay off debts;
(9) No recruitment fees charged to recruited
employees: Contractors may not charge any
recruitment fees for recruited employees, either through the company, or
through a recruiter;
(10) Briefing subcontractors: The TIP requirements
also apply to subcontractors. Prime contractors must have a method of briefing
subcontractors on TIP requirements; and
(11) Independent TIP compliance audit on contracts over
$150,000 in Tier 2 Watch List and Tier 3 countries: Contractors must hire an
independent audit firm to verify TIP compliance if the contract exceeds these
thresholds unless the COR and the contracting officer determine other reviews
are adequate (see Tier Placement).
e. In conducting the conference, the contracting
officer must make clear to the contractor that the purpose of the conference is
to explain or clarify contract requirements, not make any changes in the
contract. If a change is necessary, the extent of the change must be clearly
established. Only the contracting officer is authorized to make any
contractual commitments.
14 FAH-2 H-517 STANDARD contracting
officers representative (COR) WORKING FILE
(CT:COR-23; 08-06-2014)
a. The COR must set up and maintain a file for each
contract under his or her administration. The file's purpose is twofold: To
provide easy access to technical contract information and work progress and to
ease the transition to a new COR, if one is appointed during the life of a
contract. Each file must be clearly indexed and must contain copies of the
following materials:
(1) Copy of the CO's letter of designation and other
documents describing the COR's duties and responsibilities plus a copy of any
contract administration functions delegated to a contract administration office
that might not be delegated to the COR. (Reference 48 CFR 1.604);
(2) Complete Procurement Request Package;
(3) Solicitation and any amendments to it;
(4) Technical and cost proposals (with modifications)
submitted by the winning contractor;
(5) Copy of the contractor's approved work plan, if
required;
(6) Copy of the contract and all modifications to it;
(7) Copies of all progress reports submitted by the
contractor;
(8) Copies of all correspondence and synopses of
telephone calls to and from the contractor;
(9) Interim and final technical reports or other
products;
(10) Documentation of acceptability/unacceptability of
deliverables (see 14 FAH-2 Exhibit
H-517 for a sample delivery log);
(11) Documentation of on-site visit results;
(12) Copies of any memoranda regarding periodic
performance affecting payment;
(13) Copies of all invoices/vouchers and a payment
register indicating the balance of funds remaining;
(14) COR's final assessment of contract performance;
and
(15) Any other pertinent materials or information.
b. The COR must provide to the contracting officer copies
of all material which he or she authors. The requirements office must develop
a procedure for the retention or retirement of technical files and products,
including the COR file.
c. The COR must certify to the contracting officer
that the COR contract files are being maintained properly.
d. During any transition of CORs or contracting officer
the status of the COR contract files will be verified.
14 FAH-2 H-518 AND H-519 UNASSIGNED
14 FAH-2 Exhibit H-513
Contract Administration Responsibilities of the Contracting Officer's Representative
(COR) and the Contracting Officer (CO)
(CT:COR-23; 08-06-2014)
|
Stage
|
COR
|
CO
|
|
Preparing for contract administration
|
Read contract
Set up COR file
Assist CO in post-award orientation
conference, if held
|
Review contract
Hold post-award orientation conference,
if necessary
|
|
Administering the contract
|
Assure that contractor does the work
called for
Assure quality
Assure timely performance
Assure performance within budget (cost-type
contracts)
Assure performance along most beneficial
lines of effort
Approve payment for satisfactory
performance
Document and keep CO apprised of
unsatisfactory performance
Act as liaison with contractor and CO
Maintain COR contract files
|
Issue contract modifications
Settle disputes, as necessary
Terminate contract, if necessary
Consent to placement of subcontracts
Resolve issues of unsatisfactory
performance
|
|
Closing out the contract
|
Make final determination of technical
acceptability
Recommend disposition of U.S.
Government-furnished property
Reconcile funding against contractor
billings and payments and recommend de-obligation of funds as necessary
Recommend final settlement, if necessary
|
Request final audit, if necessary
De-obligate excess funds
Dispose of U.S. Government-furnished
property
Negotiate final settlement (CR contracts)
Approve final payment
Ensure contract files maintained and retire
file properly
|
14 FAH-2 Exhibit H-517
Sample Delivery Log
(CT:COR-23; 08-06-2014)
Contract No.:__________________
|
Deliverable
Number
|
Date Due
|
Date Received
|
Acceptable
(Yes/No)
|
Contractor
Notified
|
Contracting Officers Representative
(COR) Notified
|