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

1. Post Competition Accountability-Getting Ready for the Review and IV&V Presentation by Robert Knauer, CPCM DOT (M64) Washington, DC Email: Robert.Knauer@dot.gov

2. 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

3. Early Communication Needed 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

4. Real Early Communication • 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

5. 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

6. 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

7. Where are we Heading? • Strategic Alliances and Partnerships • ATO/MEO teaming with Contractors much like FAA did with FSS • 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

8. Bottom Line: 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

9. CIRCULAR REQUIREMENTS • New OMB Circular requires Post “Competition” Accountability Review per Attachment B. • 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

10. Best Practices & Lessons Learned at SHARE A-76! • Execute Tracking of all Competitionsvia 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.

11. What the PCA looks at • 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.

12. PCA Performance Review • Added as a Performance Safety Check by OMB • Circular NowEmphasizes 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

13. How are Performance Reviews Handled? • 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

14. A PCA Review is…. • 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?

15. PCA Guidance • 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

16. Objective of PCA Review IV&V • Verify MEO Implemented (staffing) • Verify Performance of Outputs • Verify Budgeted Expense against Actual Expense (cost) • Verify Quality per Standards • Verify Workload • Verify Competition File Documentation

17. MEO Assertion • 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

18. A PCA Review Looks at: • Workload Changes • Actual vs. Projected (estimated) Costs • Actual Performance (against APLs)

19. Guidance for a Successful Review • AllAdjustments 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

20. MOD/Deviation Guidance • 3rd Party Perspective • Ask the Question: “Would a CO have reasonably granted a MOD to another contractor under similar circumstances?”The answer should beYes • 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

21. Workload 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

22. Add a Column for Tracking Workload and FTE

23. Workload Documentation • 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

24. Cost Guidance • Include and Fully DocumentAll Adjustments Requests • Labor Costs • unburdened • Fully loaded • Non-Labor Costs • Material, ODC

25. Required Cost Documentation • 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)

26. Performance Guidance • 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

27. Performance Documentation • 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.

28. Performance Continued… • 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

29. Benefits of Reviews: • 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

30. Please Fill out the Survey • 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.