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Contract and Project Management: A Field Perspective

Contract and Project Management: A Field Perspective. Moderator Michael Peek, PE CCE CFM Office of Engineering and Construction Management. Panel Members. Jeff Short , Contracting Officer, Richland Operations Office, WA

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Contract and Project Management: A Field Perspective

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  1. Contract and Project Management:A Field Perspective Moderator Michael Peek, PE CCE CFM Office of Engineering and Construction Management

  2. Panel Members Jeff Short, Contracting Officer, Richland Operations Office, WA • River Corridor Closure Project (RCCP): $2.3 billion, Cost Plus Incentive Fee (CPIF) Tony Polk, Federal Project Director, Savannah River Site, SC • Salt Waste Processing Facility (SWPF): $1.339 billion, Cost Plus Incentive Fee (CPIF)

  3. DOE O 413.3B • The Contracting Officer is the only member of the IPT delegated authority to enter into, administer, modify, change, and/or terminate contracts. Significant responsibilities are: • Serve as the principal procurement advisor to the FPD • Participate in the formulation of the DOE and NNSA Acquisition Strategy and Acquisition Plan • Work with the IPT to develop solicitations and evaluate and award mission-oriented contracts • Serve as a standing member of the CCB with sole authority to modify the contract • Work with the IPT to ensure alignment between the PEP and the Contract Management Plan • Assist in the development of contract cost, schedule and performance incentives • Incorporate the applicable clauses, and terms and conditions in the solicitation and the contract. Ensure that the prime contractor complies with the requirements to include subcontractor flow down requirements of this Order, FAR clauses and EVMS-related terms and conditions as identified by the FPD

  4. FAR 1.602-1Authority (a) Contracting officers have authority to enter into, administer, or terminate contracts and make related determinations and findings. Contracting officers may bind the Government only to the extent of the authority delegated to them. Contracting officers shall receive from the appointing authority (see 1.603-1) clear instructions in writing regarding the limits of their authority. Information on the limits of the contracting officers’ authority shall be readily available to the public and agency personnel. (b) No contract shall be entered into unless the contracting officer ensures that all requirements of law, executive orders, regulations, and all other applicable procedures, including clearances and approvals, have been met.

  5. FAR 1.602-2 Responsibilities • Contracting officers are responsible for ensuring performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the interests of the United States in its contractual relationships. In order to perform these responsibilities, contracting officers should be allowed wide latitude to exercise business judgment. Contracting officers shall— (a) Ensure that the requirements of 1.602-1(b) have been met, and that sufficient funds are available for obligation; (b) Ensure that contractors receive impartial, fair, and equitable treatment; and (c) Request and consider the advice of specialists in audit, law, engineering, information security, transportation, and other fields, as appropriate (d) …

  6. DOE O 413.3B • The FPD is accountable to the AE, Program Secretarial Officer or delegated authority, as appropriate, for the successful execution of the project within a PB. Roles and responsibilities include: • Serve as the single point of contact between Federal and contractor staff for all matters relating to a project and its performance • Prepare and maintain the IPT Charter and operating guidance with IPT support and ensure that the IPT is properly staffed. Define and oversee the roles and responsibilities of each IPT member • Serve as the Contracting Officer's Technical Representative when appointed by the Contracting Officer • Lead the IPT and provide broad project guidance • Ensure the development and implementation of key project documentation (e.g., the PEP).

  7. DOE O 413.3B • Define project cost, schedule, performance, and scope baselines • Ensure that design, construction, environmental, sustainability, safety, security, health and quality efforts performed comply with the contract, public law, regulations and EOs • Ensure timely, reliable and accurate integration of contractor performance data into the project's scheduling, accounting, and performance measurement systems, to include PARS II • Evaluate and verify reported progress; make projections of progress and identify trends • Approve (in coordination with the Contracting Officer) changes in compliance with the approved change control process • Ensure that safety is fully integrated into design and construction for Hazard Category 1, 2, and 3 nuclear facilities

  8. Bottom Line • Understand Roles and Responsibilities • Establish an Open, Transparent Relationship • Collaboration Results in Informed Contract and Project Management Decisions

  9. Question Historically, there has been a disconnect between project and contract management. Over the past year numerous initiatives have been undertaken to improve project and contract alignment. What are some of the specific actions you are taking to better integrate and align your project and contract at the site level?

  10. Question DOE O 413.3B states “The FPD is accountable to the AE, Program Secretarial Officer or delegated authority, as appropriate, for the successful execution of the project within a PB.” Therefore, should the Contracting Officer work for, and report to, the Federal Project Director? Should Contracting Officers be held more accountable for project success?

  11. Question Fee determinations are executed by the Contracting Officer. With the increased focus on holding contractors accountable, how can the FPD support the Contracting Officer to ensure incentives appropriately align the Department’s , taxpayers’ and contractor’s interest?

  12. Question In general, the processing of contract actions (i.e., contract modifications) seems to lag the processing of project management actions (i.e., baseline change proposals). Beyond the obvious call for more contracts staff, what can be done by the FPD to facilitate timelier contract actions?

  13. Question In general, there appears to be better contract and project alignment on FAR Part 15 contracts than on M&O contracts… can you comment on this?

  14. Question What is more important, increasing the number of contracting officers and contracts specialists or ensuring our current contracting officers and contracts specialists have the proper skills set?

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