Contracting Business Unit

1. Contracting Business Unit • Contracting Organization • DoD COR / QAE Policy • Service / Supply Contracting • CA Contracting

2. DeCA Contracting Structure Contracting Authority Contracting Authority

3. CBU UpdateOn New DoD COR / QAE Policy • More funds are now spent by DoD on Service Contracts than for Supplies, Equipment and Weapon Systems combined. As a result, Congress has now taken a more active role in the oversight of Service Contracts. • The most recent DoD policy impacts our stores directly. This policy requires appointment of a QAE or COR for all Service Contracts, ranging from the contract to pick up Fats & Bones to your CA contracts

4. DoD COR / QAE Policy QAEs or CORs must: • Be identify in writing, by name, with a copy to the contractor • Be trained prior to contract performance • Most stores have been required to provide names and conduct on-line COR training over the past 6 months • This will continue to be an ongoing effort • QAE/COR duties must be addressed in performance plans

5. Contracting Division • Provides Contracting for Support Services, Supplies and Revenue Generation • Bruce Piper, Chief, Contracting Division • 804-734-8640 • Melissa Rios, Chief, Support Services Branch • 804-734-8680 • Michael Shaffer, Chief, Revenue, Supply and HQ Support Branch • 804-734-8681 • Emergency phone for non-business hours 804-536-6500

6. Micro Purchase Threshold • Micro Purchase aka GPC (Government Purchase Card) • General threshold is now $3000 and stores should use their cards up to that limit • 2 Key Exceptions: • Construction/Facility repairs is limited to $2000 • Services are limited to $2500 • Limitations are based on prevailing labor laws (Davis-Bacon, Service Contract Act) • Convenience Checks • May request after exhausting all other remedies

7. Service Contracts • Average store has 6 - 8 Service Contracts / Purchase Orders • Linen, Laundry, Mats Rental & Cleaning • Door Maintenance • Knives and Blades • Fats and Bones Removal • Pest Control • Alarm System Maintenance • Banking, Armored Car, EBT

8. Supply Contracts • Several large ongoing Supply contracts to support stores • Paper / Plastic / Produce Bags • Federal Express • Miscellaneous Supplies (currently Bunzl) • Store Décor • Inventories • Individual contracts/orders awarded to support a store’s specific need

9. Revenue Contracts • Coupons • Scanner Data • Floor Advertising • Recycling • Managed through OPS • Cardboard • Phasing in Plastic • Converting to DeCA contracts

10. Unauthorized Commitments • What are they? • Contractor performs without contract or GPC authority • How do they happen? • Unauthorized person directs a contractor to perform • GPC order issued without confirming contractor takes GPC • Resolution • Long and painful, individual could be personally liable • Region Director must personally sign documents • Subject to disciplinary action (individual and management) • Negative opinion of DeCA in contractor community

11. Commercial Services Division (AMC) Debbie Wiggins, Division Chief (804) 734-8654 Ginna Thomas, Chief, East Branch (804) 734-8546 March 13, 2008

12. AMC MISSION • Provide contracting support for 170 CONUS commissaries’ shelf stocking, custodial, and RSHA operations contracts. • “Cradle to Grave” contracting • QAE Training (formal and informal) – next two sessions are scheduled during 05/12 – 05/16/08 @ Langley AFB Commissary • Monthly Processing of all DD 250s • Monthly Review of all QAE Surveillance Packages • Conduct On-Site/Telephonic Meetings • A-76 Contracting Mission 12

13. AMC CONTRACT REPORTING • Bi-Weekly Report • Lists Significant Issues Relative to Store Support for All Contracting Areas • CA Pre-Award Status Report • Reflects All CA Contract Renewals and Updated Monthly. • CA Contract Admin Report • Reflects Pending Admin Actions for Each Store by Zone/Region and Updated Monthly • Overwrites Report • Reflects Monthly Overwrite Percentages/Store 13

14. AMC LITIGATION • Travis AFB – HDEC08-05-C-0038 • An appeal was filed with the ASBCA by Pride Industries (PI), the former contractor at the Travis AFB Commissary • The appeal requested relief for deductions which were taken from PI’s May 2006 DD 250 for defective services during the months of Dec 2005 through Mar 2006 • Original proposed deductions totaled $123,238.44 • Deduction amount was reduced to $21,987.19, due to insufficient supporting documentation • A hearing in California took place 08/28 and 08/29/07 • DeCA participants were Elliott Clark (GC), Debbie Wiggins (AMC), Romy DeGuzman (QAE), Paul Schultz (QAE), and Lester Benton (QAE). The SA was listed as a witness, but did not have to testify and the SD would have been called as a witness; however, due to illness, he was not.

15. AMC LITIGATION • In November 2007, a post-hearing brief was filed with ASBCA • Involved the review of over 650 pages of hearing transcripts • Pointed out discrepancies in testimony of PI participants • Pointed out non-compliance with contract terms • Requested denial of the appeal of PI • ASBCA Decision • Issued December 31, 2007, denying the claim of PI • The PI Project Manager should have accompanied QAE on inspections • It was appropriate for QAEs to wait until PI was complete before starting inspections • Non-receipt of copies of DDOs, does not hinder the contractor’s ability to perform to standard • DeCA was entitled to take deductions