14 FAH-2 H-520
MONITORING CONTRACTOR PERFORMANCE
(CT:COR-51; 04-19-2019)
(Office of Origin: A/OPE)
14 FAH-2 H-521 ELEMENTS OF CONTRACT
ADMINISTRATION
(CT:COR-43; 11-10-2015)
a. The contractor has primary responsibility for
performance of the contract. However, both the contracting officer and the
contracting officers representative (COR) have an interest in monitoring
contractor performance because unsatisfactory performance may jeopardize a
project or even an entire program.
b. It is the COR's responsibility to ensure that the
Department gets what it pays for through good contractor performance. This
responsibility requires the COR to develop a contract monitoring plan commensurate
with the complexity and criticality of the contract, and to ensure the COR is
timely in performing U.S. Government contract administration responsibilities.
14 FAH-2 H-522 MONITORING METHODS
AVAILABLE TO THE contracting officers representative (COR)
14 FAH-2 H-522.1 Progress or Status
Reports
(CT:COR-43; 11-10-2015)
a. Contracts may require the submission of progress or
status reports to assist the COR in gauging progress. Technical progress and
problems encountered, upcoming challenges and plans to address these
challenges, staffing progress, licenses obtained, materials acquired, and
progress of subcontractors are all potential topics. CORs should determine
what information is needed and add the reporting requirement and frequency to
the statement of work for inclusion into the solicitation. CORs should
document review of the progress and status report with an email or memo to the
contracting officer and retention of the report in the contract file.
b. The best method for monitoring the contractor's work
is through actual inspection. The Federal Acquisition Regulation (FAR) 48 CFR
46.3 and other FAR sections provide for various contract clauses in U.S.
Government contracts which give the U.S. Government's authorized representative
the right to inspect and test what is being generated under the contract at all
stages of performance and wherever the work is being conducted (i.e., both
contractor and subcontractor work sites). However, while the U.S. Government
may have the right to inspect when it chooses, the various inspection clauses
specify that U.S. Government inspections or tests must not be performed in such
a manner as to unduly delay the work. Additionally, 48 CFR 12.402 outlines the
unique limits on commercial item inspections when the U.S. Government is
acquiring noncomplex commercial items, plus requirements in the clause 48 CFR
52.212-4 Contract Terms and Conditions - Commercial Items.
c. The COR may perform inspections by using several
techniques and procedures including spot checks, scheduled inspections of
functions performed by the contractor on a periodic basis, random sampling of
routine functions, use of contract monitoring and user reports, and periodic
review of the contractors quality control program and reports.
d. The need for monitoring is variable. Factors such
as the complexity of the work, the size of the job, the importance of the
expected results, and the expertise of contractor and U.S. Government personnel
involved, determine the amount and level of monitoring required. For example,
if a contractors quality control program works and achieves a good level of
performance on a consistent basis, the amount of monitoring can be minimal.
e. The place of performance, type of contract, and kind
of work required, each influence the feasibility of using inspection as the
main tool for monitoring progress. The place of performance may make frequent
inspections impractical, simply because the U.S. Government does not have
sufficient travel funds or personnel.
14 FAH-2 H-522.2 Milestone Reviews
(CT:COR-43; 11-10-2015)
Some programs may be broken up into discrete performance
milestones. Timely completion of these milestones provides the COR with
information on adequate performance. Late or incomplete performance may indicate
contractor problems.
14 FAH-2 H-522.3 Site Visits
(CT:COR-43; 11-10-2015)
Inspection of the contractor worksite is an effective
method of monitoring contractor performance for non-commercial items.
Discussions with contractor personnel and physical observations should be
documented and included in the COR official file.
14 FAH-2 H-522.4 Contractor Outputs
(CT:COR-43; 11-10-2015)
a. If the contractor will be providing outputs such as
number of repaired vehicles, students trained or barriers installed, the COR
should monitor both the number and quality of the output. Financial status
reports (often used in cost-reimbursement type contracts) provide a means of
monitoring the contractor's expenditures and comparing costs incurred with
technical progress. Significant differences between technical progress and the
expenditure of resources often indicate problems in contract performance.
b. The amount of detailed financial information needed
depends on the type of contract, the nature of the work, and the method of
payment. Financial reports are especially important in cost-reimbursement
contracts for determining contractor progress.
14 FAH-2 H-522.5 End User Feedback
(CT:COR-43; 11-10-2015)
Where the contract is supporting end users, try surveys or
other methods of obtaining end user feedback on performance. Are customers
satisfied with the results and the experience? Do they find performance timely
and of high quality?
14 FAH-2 H-522.6 Inspection
Sampling
(CT:COR-43; 11-10-2015)
Where safety and health are an issue, 100 percent
inspection may be warranted. Periodic, planned or random sampling may be used
to inspect. Random sampling allows the inspection of a limited number of parts
to serve as a surrogate for the inspection of the entire lot.
14 FAH-2 H-522.7 Validating
Contractor Systems
(CT:COR-43; 11-10-2015)
Contractors are required by FAR 48 CFR 46.2,
"Contract Quality Requirements" to have systems for monitoring
performance and ensuring quality. The COR can obtain information on these
systems to determine if they will produce an acceptable result. Many
contractors performing work for the Department of Defense have U.S. Government-monitored
and approved systems. The output of an approved inspection system is more
likely to be contract compliant.
14 FAH-2 H-522.8 Creative
Monitoring
(CT:COR-43; 11-10-2015)
Creative monitoring methods may include the use of
technology such as:
(1) Cameras on vehicles;
(2) Global positioning systems (GPS) units to
determine and track the location and travel of contractors;
(3) Tracking the trip mileage against forecasted
travel distances;
(4) Guard or employee check-in at designated
locations;
(5) Use of badge readers to determine number of
individuals served at mess halls;
(6) Use of satellite imagery; and
(7) Use of radio frequency identification (RFID) to
track property, deliveries, and locations.
14 FAH-2 H-522.9 Monitoring Service
Contracts
(CT:COR-43; 11-10-2015)
a. Labor-hour and time-and-material contracts require
special attention. Under these contracts the contractor has no incentive to
control the number of hours worked or labor efficiency. Try to determine if
tasks can be defined as much as possible to ensure productive use of time. If
the requirement is repetitive and continuing, the contracting officer should
determine if the task can be fixed-priced.
b. The COR must have a method of validating the hours
worked through sampling or other surveillance methods. Observation of the
efficiency of work performance may be needed. Where contracts specify
personnel qualifications, verify that the employees billed meet the
qualifications.
14 FAH-2 H-522.10 Reviewing
Invoices
(CT:COR-51; 04-19-2019)
a. Contractors must periodically submit invoices to the
"designated billing office" (48 CFR 32.001) in the contract to
request payment. Contracts instruct the contractor to forward invoices to the
designated billing office and an information copy the COR. CORs should become
familiar with the invoicing submission and U.S. Government acceptance
requirements of their contracts to ensure receiving reports or other U.S.
Government documentation authorizing payment meets the minimum requirements (48
CFR 32.905 (c)) and reaches the designated payment office within the timeframes
for prompt payment (48 CFR 32.9).
b. If the contract requires COR review, the COR should
determine the validity of the costs claimed. The COR may request such backup
information as is needed to verify the invoice. In some cases, the invoice
review may be validation of quantities received against contractual
requirements. In other cases, such as in cost-reimbursement contracts or
contracts with reimbursable contract line items, invoice review may be more
elaborate.
c. Keep in mind that all U.S. Government contracts
have a prompt payment clause which requires that the U.S. Government make
payment within 30 calendar days of acceptance of the supplies/services or the
date the designated billing office receives a proper invoice from the
contractor, whichever is later. The U.S. Government pays interest if the 30-day
deadline is not met. Therefore, if payment is contingent upon the CORs
review, the COR must review the invoice/voucher promptly to avoid the payment
of interest (reference FAR 48 CFR 32.9, Prompt payment).
d. Some common invoice errors include wrong contract or
order number, date of invoice or period of performance, outside the scope of
the contract; vendor name does not match the contractor name identified on the
contract; item, part number, quantity or price in error; math is incorrect
duplicate billing or sent to the wrong office.
e. Items requiring special attention include:
(1) Determining whether payment of tax, such as value
added tax (VAT) at a post is appropriate or exempt;
(2) Unsupported lump-sum travel or other costs;
(3) Were trips authorized and was travel at coach or
lowest expense?
(4) Is the labor category in the contract?
(5) Is the worker qualified at that labor category
level? and
(6) Was the overtime approved?
f. Cost-reimbursement contracts:
(1) Questioning the reasonableness of
costs: Under cost-reimbursement type contracts, the U.S. Government is
entitled to ask the contractor for information that is necessary to understand
whether the charges billed are "reasonable,"
"allocable," and "allowable,"
as the basic tests that the contractor's costs must pass to be reimbursed
(reference FAR 48 CFR 31.201-2 Determining Allowability, 48 CFR 31.201-3
Determining Reasonableness, and 48 CFR 31.201-4 Determining Allocability). If
it appears from charges billed that the contractor may be spending more than is
reasonably necessary for the work, the COR should contact the contractor for
additional explanation or substantiation for those costs. If the additional information
fails to establish that the contractor is proceeding in a reasonably efficient
way, the COR should discuss the matter with the contractor to make sure that
there is not an equally effective way to get the work done. If agreement
cannot be reached, the COR should consult with the contracting officer;
(2) The right to disallow costs:
While the contractor is entitled to latitude and exercise of judgment in
managing the contract work, the U.S. Government contracting officer has the
right to "disallow" and not reimburse the contractor for costs that
are unreasonable in nature or amount. This right constitutes a powerful lever
for persuading a contractor to manage efficiently. The more the contractor
realizes that the U.S. Government is keeping a close watch on costs and is
ready to raise questions where warranted, the more effective the power to
disallow costs will be as an incentive for economical management by the
contractor. It should be stressed, however, that only the contracting officer
may disallow costs. The COR should bring any questions or problems with a
contractor's vouchers to the contracting officer's attention; and
(3) Audit support: CORs
should contact the contracting officer for any audit support needed to verify
cost reimbursement invoices. The Business Operations Division, A/OPE/AQM/BOD, negotiates agreements with the
Department of Defense for audit support and also coordinates with Office of
Inspector General and commercial audit support.
14 FAH-2 H-522.11 Technical
Direction
(CT:COR-43; 11-10-2015)
A means of directing contractor performance is through
"technical direction," a concept used in cost-reimbursement
contracts. Because work statements in cost-reimbursement contracts are
typically not specific enough in terms of approach or methodology, the U.S.
Government needs to have the ability to work closely with and guide the
contractor along the most beneficial lines of effort. Technical direction
constitutes direction by the U.S. Government to the contractor as to which areas
or lines (within and without changing the description of work) the contractor
is to emphasize or pursue:
(1) Technical direction must not require the
contractor to perform work different from that which he or she has agreed to
do, nor may it change other provisions of the contract such as deliverable due
dates, total price or estimated cost, total period of performance, or any
administrative provisions; and
(2) Whenever the contracting officers representative
(COR) provides technical direction, it must be in writing,
with a copy provided to the contracting officer. It is good practice to
coordinate such direction in advance with the contractor. If the contractor
considers the direction an imposition of work that is over and above what the
contract requires, the matter should be discussed with the contracting officer.
14 FAH-2 H-522.12 Contractor
Personnel Assignments
(CT:COR-43; 11-10-2015)
a. The key personnel clause:
To assure that the work is performed by personnel with the qualifications
needed to assure satisfactory quality, some Department contracts for
professional services contain a key personnel clause. In this clause, the
contractor:
(1) Must assign work under the contract to certain
named individuals (sometimes also indicating the capacity in which each named
individual will act and the number of hours they will devote to the contract);
and
(2) Must not remove or divert any of the named key
personnel from the contract unless the contracting officer consents.
b. Monitoring assignments of key
personnel: To assure that the Department benefits from the key
personnel clause, the contracting officers representative (COR) must keep in
touch with the key personnel and with what they are doing. This will help to
assure that the key personnel are not completely taken off the contract work,
and also know whether they apply the kind and amount of effort that is
necessary to get the work done properly. For example, it is obviously not
expected that a key person designated in the contract as "project director"
will personally do all the work that the contract requires. However, he or she
is expected to devote the time and effort needed to direct and guide the work.
Keeping in touch with the director can disclose what degree of control the
director has over his or her assistants, how well he or she is informed of what
they do, and what their state of progress is. Changes to key personnel must be
approved by the contracting officer who will request inputs from the COR.
14 FAH-2 H-522.13 The Limitation-of-Cost
Clause
(CT:COR-43; 11-10-2015)
a. All cost-reimbursement and labor-hour type contracts
contain a clause entitled "Limitation of Cost" at FAR 48 CFR
52.232-20. This clause limits the U.S. Government's obligation to reimburse
the contractor to the amount stated in the contract as the total estimated
cost. Because completion of the contract work may turn out to cost more than
the estimated cost, the "Limitation-of-Cost" clause provides that the
contractor has no obligation to continue with the work once incurred costs
reach the total estimated cost. It makes no difference if the contract is
unfinished when this point is reached. The contractor is entitled to stop work
until and unless the contract is modified to increase the total estimated cost.
The U.S. Government must reimburse the contractor for "best efforts"
in completing the work within the total estimated amount.
b. The "Limitation-of-Cost" clause requires
the contractor to notify the contracting officer and provide a revised estimate
of the total cost of the contract, whenever a contractor has reason to believe:
(1) That the costs the contractor expects to incur in
the next 60 days plus costs already incurred will exceed 75 percent of the
total estimated cost of the contract; or
(2) That the total costs of performance (exclusive of
fee) will exceed or be substantially less than the estimated cost stated in the
contract.
c. This notification is a useful tool for identifying
and dealing with potential problems.
d. The U.S. Government is not obligated to reimburse
the contractor for costs incurred in excess of:
(1) The estimated cost specified in the schedule; or
(2) If a cost-sharing contract, the estimated cost to
the U.S. Government specified in the schedule.
14 FAH-2 H-523 QUALITY ASSURANCE
(CT:COR-43; 11-10-2015)
a. The Code of Federal Regulations (CFR) 48 CFR 46.000
prescribes policies and procedures to ensure that supplies and services
acquired under U.S. Government contracts conform to the contract's quality and
quantity requirements. Included are inspection, acceptance, warranty, and
other measures relating to quality assurance.
b. The requirements office is responsible for
developing specifications for inspection, testing, and other quality measures
to be included in solicitations and contracts. When administering the
contract, the contracting officers representative (COR) is responsible for
developing quality assurance procedures, verifying whether the supplies or
services conform to contract quality requirements, and maintaining quality
assurance records. In some cases, the contract will contain a quality
assurance plan (QAP) and the COR will use the procedures in this plan to
evaluate the quality of services or deliverables provided.
c. The contractor is responsible for fulfilling its
obligations under the contract by:
(1) Controlling product quality;
(2) Providing the U.S. Government only supplies and
services conforming to contract requirements;
(3) Monitoring the quality of materials supplied by
its suppliers or subcontractors;
(4) Maintaining substantiating evidence that the
supplies and services conform to contract quality requirements; and
(5) Performing all inspections and testing required by
the contract (reference FAR 48 CFR 46.105).
d. Although contracts generally make the contractor
responsible for performing inspection before tendering supplies to the U.S.
Government, some specialized inspections are performed solely by U.S.
Government personnel, e.g., tests that require use of specialized test
equipment or facilities and U.S. Government testing for first-article approval
(reference FAR 48 CFR 46.201(c) and 48 CFR 9.302).
14 FAH-2 H-523.1 Warranties
(CT:COR-43; 11-10-2015)
a. A warranty is a promise given by the contractor to
the U.S. Government regarding the nature, usefulness, or condition of the
supplies or services furnished under the contract. The purpose of a warranty
is to delineate the rights and obligations of the contractor and the U.S.
Government for defective items and services and to foster quality performance.
b. The use of warranties is not mandatory. The
contracting officer determines whether a warranty is appropriate based on the
nature and use of the supplies and services, cost, administrative system for
enforcement, and trade practice. The COR usually knows more about the product
and provides a recommendation based on research on warranty considerations for
the contracting officer to make a decision.
c. CORs managing contracts with warranties should
ensure a method of collecting warranty paperwork and retaining the information
on a shared drive where other program personnel can locate the information if
future service is required.
14 FAH-2 H-523.2 Inspection
(CT:COR-43; 11-10-2015)
a. Inspection means examining and testing supplies or
services (including, when appropriate, raw materials, components, and
intermediate assemblies) to determine whether they conform to contract
requirements (reference FAR 48 CFR 2.101).
b. It is the contracting officers representatives
(COR) responsibility to determine that the work is complete and conforms to the
technical requirements of the contract. The COR may perform quality assurance
inspections at such times and places as may be necessary to determine
conformance with contract requirements, including inspections at the source or
at destination.
c. The COR must ensure that the work performed under
the contract is measured against the contract performance requirements. If
performance does not meet contract requirements, the COR must identify
deficiencies and advise the contracting officer so that remedial action can be
taken before final payment and contract closeout.
d. If the contract contains a quality assurance plan
(QAP), the COR must follow the terms established in the QAP to measure
contractor performance. If performance does not meet the acceptable quality
levels, the contracting officer will follow the procedures established in the
plan to determine the appropriate course of action.
14 FAH-2 H-523.3 Acceptance
(CT:COR-50; 03-08-2019)
a. Acceptance is an acknowledgement by an authorized
U.S. Government representative that supplies or services conform to the
contracts quality and quantity requirements. Acceptance may take place before
delivery, at the time of delivery, or after delivery depending on the contract
provisions. However, supplies or services are not, ordinarily, accepted before
quality assurance actions have been completed (reference FAR 48 CFR 46.501).
b. The contracting officers representative (COR)
indicates acceptance by executing an acceptance document. The Integrated
Logistics Management System (ILMS) has an "acceptance" module for
recording the "acceptance" of goods and services:
(1) Ariba is the procurement module of ILMS and has a
receive services task that links to the ILMS final receipt module. The ILMS
final receipt module is used to receive all "supplies and services"
line items and generates the Form DS-0127, Receiving and Inspection Report.
Additionally the "status tracking" component of ILMS allows for
tracking vendor payment information and receipt status along with managing and
uploading documents; and
(2) If ILMS is not available, the COR may indicate
acceptance by using the Form DS-0127, Receiving and Inspection Report, or by
approving a contractors invoice with an acceptance stamp allowing signature
with date.
c. The COR should bear in mind that once formal
acceptance has been accomplished, the contractor is generally excused from
further performance. After final acceptance, the contractor can no longer be
held responsible for unsatisfactory effort, unless otherwise specified in the
contract or by warranty.
d. The COR should clearly indicate the nature and
extent of any rejection. Contractors must be advised of deficient
performance. The COR should communicate directly with the contractor with a
copy to the contracting officer. The COR may reject the entire lot or may
partially accept (reference FAR 48 CFR 46.407, Nonconforming supplies or
services).
e. Remedies for defective performance vary based on
contract type. In general, the U.S. Government is entitled to require the
contractor to correct any deficiencies and to resubmit the items or services
for inspection. Fixed-priced contracts require correction at no cost to the
U.S. Government (48 CFR 52.246-2). Cost-reimbursement contracts for supplies
require payment by the U.S. Government for correction as allowable cost but no
additional fee shall be paid (48 CFR 52.246-3). Labor-hour and
time-and-materials contracts typically require the U.S. Government to bear the
cost, less profit, of correcting work (48 CFR 52.246-6).
f. The U.S. Government is not without protection in
the event that defects are discovered after acceptance. The terms of the
standard inspection clauses give the U.S. Government remedies after acceptance
in the case of latent defects, fraud, or gross mistakes that amount to fraud.
In addition, warranty clauses can be used which give the U.S. Government rights
after acceptance.
14 FAH-2 H-524 Preventing Trafficking
in Persons (TIP)
(CT:COR-43; 11-10-2015)
a. The U.S. Government is a world leader in the fight
to eradicate human trafficking. The Office to Monitor and Combat Trafficking
in Persons (J/TIP) website contains many resources available for the COR and
contractors on trafficking in persons, including training available on TIP
awareness.
b. The U.S. Government defines trafficking in persons
as modern slavery for commercial sexual exploitation or forced labor.
c. Combating trafficking in persons for both sexual
and labor exploitation is specifically addressed in 48 CFR 22.1700. FAR 48 CFR
22.1703 states that the U.S. Government has adopted a zero-tolerance policy
regarding trafficking in persons criminal activity. Every instance must be
investigated and appropriate action taken.
d. The FAR clause located at 48 CFR 52.222-50,
Combating Trafficking in Persons (which implements 48 CFR 22.1700), must be
included in every U.S. Government contract. Contracting officers
representatives (CORs) should verify that the clause is in their contracts.
The contractor is required to brief their agents and employees on the
requirements of the clause.
e. Every year, the Department of State produces the
Trafficking in Persons Report, the worlds most comprehensive resource of
governmental and anti-human trafficking efforts. This report can be used as a
resource for country assessments of country-specific risks that may be inherent
in the contracts.
f. The Trafficking Victims Protection Act (TVPA) 22
U.S.C. 7101 guides the U.S. Governments approach to combating trafficking in
persons (TIP). It closely tracks, and expands upon, the UN Palermo Protocol to
the UNs Convention on Transnational Organized Crime. It is important to note
that a victim need not be physically transported from one location to another
in order for the crime to fall within these definitions. Neither the TVPA, nor
the Palermo Protocol, require movement as a requisite element of human
trafficking.
g. The COR plays an important role in preventing TIP.
CORs should take the following actions:
(1) Ensure contracts contain the required Trafficking
in Persons clause: Review your contract to verify that the appropriate FAR
clause 48 CFR 52.222-50 is included. Contact the contracting officer if it is
missing;
(2) Create a trafficking in persons monitoring plan
appropriate to the acquisition. The place of performance and the nature of the
contract may require more stringent monitoring by the COR. Performance in
countries with a poor record of dealing with trafficking in persons issues may
require more monitoring. A contractor recruiting third-country nationals for
contract performance may require COR monitoring of recruitment practices and
employer-provided housing. Countries with legal prostitution may require added
emphasis at post award meetings, since individuals performing under U.S.
Government contracts are not permitted to engage in any commercial sex while
employed by the contractor. This prohibition includes locally legal commercial
sex. See 14
FAH-2 Exhibit H-524, Preventing Trafficking in Persons (TIP) Sample
Monitoring Plan Elements;
(3) Understand the U.S. Governments policy toward
trafficking in persons, the FAR requirements regarding trafficking, and most
importantly, the red flags that might indicate that contractors staffs are
potential trafficking victims. The COR must be alert to the possible warning
signs and notify the appropriate personnel for follow up and investigation:
(a) Coordination with the regional security officer can
assist the COR in planning for TIP prevention oversight; and
(b) Coordination with appropriate offices such as human
resources regarding local labor laws can help in obtaining information on area
working conditions;
(4) Be aware that a contractor found to engage in
severe forms of trafficking, procuring commercial sex acts, or using forced
labor, may be terminated for default by the contracting officer; and
(5) Discuss the importance of preventing TIP in
post-award orientation. The requirements of the Combating Trafficking in
Persons clause and contractor efforts to comply should be an agenda item for
every post-award contractor briefing. This ensures that all parties are aware
of their responsibilities.
h. Post-award TIP briefing agenda: The U.S.
Governments zero tolerance toward TIP and the importance of preventing TIP
must be emphasized. The Department of States Office to Monitor and Combat
Trafficking in Persons leads the U.S. Governments global engagement on the
fight against human trafficking. The U.S. Government feels strongly about this
issue. The requirements of 14 FAH-2 H-516,
paragraph d, 48 CFR 22.1700, and 48 CFR 52.222-50, Combating Trafficking in
Persons, provide the foundation for the post-award TIP briefing.
14 FAH-2 H-525 THROUGH H-529 UNASSIGNED
14 FAH-2 Exhibit H-524
Preventing Trafficking in Persons (TIP) Sample Monitoring Plan Elements
(CT:COR-43; 11-10-2015)
a. CONTRACT INFORMATION:
(1) Plan Date: 12/9/2015
(2) Plan Monitor: Jane Smith, COR
(3) Contract Number: SAQMMA09D0002
(4) Contractor: Overseas Industries
(5) Contract Purpose: Embassy Construction
(6) Contract Value: $1,240,000
b. RISK FACTORS:
(1) Place of Performance: Performance
in Gulf State with history of recruited labor and labor problems. HIGH RISK
(2) Trafficking in Persons Report
Tier Level: Level 2. HIGH RISK
(3) Third-Country National
Recruitment: Contractor will recruit Indian nationals for
construction. HIGH RISK
(4) Employer Provided Housing:
Contractor is constructing a man camp to house workers. Housing plan provided
with proposal. HIGH RISK
(5) Legal Prostitution in Country:
No. LOW RISK
(6) Contract with Foreign Performance
Valued Over $500,000 Requiring Contractor Compliance Plan: Yes. HIGH
RISK. Compliance plan submitted showing a strategy for briefing employees. Subcontracts
will contain flow-down clauses. Contractor will be using a professional
recruitment firm with fees paid by the prime contractor. Contractor personnel
are briefed on the prohibitions on commercial sex. Contractor management is
briefed on the requirements of not withholding travel documentation.
c. CONTRACT MONITORING METHODS
SELECTED:
(1) Verify the contractor does not
hold employees passports and visas: Employee mobility may be severely
limited if an employer holds the employees travel documents. This activity
may also be in violation of local labor laws. CORs should determine if the
contractor is holding travel documents by interviewing employees during site
visits to the work location. ___ Selected ___ Not Selected
(2) Ensure contractor doesnt use
work permits or physical force or threats to compel labor or obtain sexual
activity: The COR should use locally employed staff or others with
knowledge of other languages to engage contractor employees who cannot
communicate effectively in English in their own native language in order to
determine if coercion or threats are being used. ___ Selected ___ Not Selected
(3) Determine that contractor is
knowledgeable about local labor laws: This assessment can be performed
at the post-award meeting and periodically through discussions with contractor
management as work progresses. It is the contractors responsibility to obtain
this information from the host country, not the CORs. ___ Selected ___ Not
Selected
(4) Verify that workers and agents
are informed about labor policies: Verification can be obtained through
interviews with contractor employees. ___ Selected ___ Not Selected
(5) Verify that contractor is
providing advice of salary deductions through periodic review: Employees
who are not informed on the nature of salary deductions may find themselves in
situations similar to bonded labor by owing more than they make. Verify that
employees have the information they need to understand salary deductions. ___
Selected ___ Not Selected
(6) Verify that contractor is
briefing employees on the requirements of the Trafficking in Persons clause:
This briefing is a requirement of the Trafficking in Persons clause. The COR
should interview contractor management as well as select employees to verify
compliance. The COR should obtain a copy of the contractors briefing
materials. ___ Selected ___ Not Selected
(7) Verify that the contractor is
briefing subcontractors and including the TIP clause in subcontracts: Ask
the contractor to identify any subcontracts and show that the subcontracts
contain the TIP clause. Have the contractor provide a copy of briefing
materials provided to subcontractors. ___ Selected ___ Not Selected
(8) Obtain information on employer-furnished
housing and periodically visit to assess adequacy: The adequacy of
self-selected housing is the responsibility of the employee. Employer-furnished
accommodations represent an expenditure of U.S. Government funds that should
not be exploitative. Where housing is employer-provided, particularly to third-country
national employees, CORs should obtain information on the location and nature
of the housing. CORs will then better understand the contractors costs and
housing plan. CORs should visit the housing periodically, at least
semi-annually, to ensure adequacy. Any concerns or requests for corrective
action should be coordinated through the contracting officer to avoid any
potential claims. ___ Selected ___ Not Selected
(9) Audit support: CORs may
work with their contracting officer to contract with an audit firm to assist in
implementing TIP monitoring responsibilities. ___ Selected ___ Not Selected
d. ADDITIONAL MONITORING GUIDANCE:
Problems with employer-provided housing to watch for,
based on previous Office of Inspector General reports:
(1) Sharing a dilapidated apartment building with
numerous fire and safety hazards, including exposed, frayed wiring; extensive
water damage; and mice and insect infestation.
(2) Of an apartment buildings three bathrooms, only
one had a working sink; one had a broken toilet and an uncovered floor drain; and
one small bathroom had a washing machine that partially blocked access to the
toilet.
(3) Conditions for employees were dilapidated,
unsanitary, unsafe, cramped, and located on the roof of the companys
administration building.
(4) Failure to meet the minimum 50-square-feet-per-person
space allocation without contracting officer approval.