X-/EPA
United States
Environmental Protection
Agency
Office of Solid Waste
and Emergency Response
Washington, DC 20460
9242.3-11
EPA540/R-94/022
PB94-963412
May 1995
Superfund
Response Action Contract
(RAC) Users' Guide -
Volume 1: Reference Guide
> Printed on Recycled Paper
-------
&EPA
United States Office of Solid Waste 9242.3-11
Environmental Protection and Emergency Response EPA 540/R-94/022
Agency Washington, DC 20460 PB94-963412
May 1995
Response Action Contract
(RAC) Users' Guide -
Volume 1: Reference Guide
-------
Disclaimer
This Users' Guide is intended solely for use by EPA Work Assignment Managers, Project
Officers, and Contracting Officers in managing and administering the Agency's Response
Action Contracts (RACs). This guide does not establish Agency-wide policies or proce-
dures. This guide is not intended to and cannot be relied upon to create any rights,
substantive or procedural, enforceable by any party in litigation with the United States.
EPA reserves the right to act at variance with the policies and procedures in this guide
and to change them at any time without public notice. The descriptions of contractor
responsibilities included in this guide are informational and do not assign or limit con-
tractor responsibilities under RACs.
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Status Change Form
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401 M Street, SW • Mail Code 5201G • Washington, DC 20460 • (703) 603-8917
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401 M Street, SW • Mail Code 5201G • Washington, DC 20460 • (703) 603-8917
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State
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Status Change Form
The Superfund Document Center
401 M Street, SW • Mail Code 5201G • Washington, DC 20460 • (703) 603-8917
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Address
City
State
Zip
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Office
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Response Action Contract
Users' Guide
Volume 1: Reference Guide
Table of Contents
MAY 31, 1995
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TABLE OF CONTENTS
Foreword xv
Acknowledgments xvn
Acronyms and Abbreviations xix
Chapter 1
Introduction 1-1
1.1 Purpose of the RAC Users' Guide 1-1
1.2 Required, Core, and Noncore Elements of Guidance 1-1
1.3 How to Use the Guide 1-2
1.4 Content and Organization of the Guide 1-3
1.5 Where RAC Clauses Are Addressed in the Guide 1-5
1.6 Background of Long-Term Contracting Strategy and RACs 1-5
1.7 Streamlining and Contract Management Initiatives 1-6
1.8 Updates to the Guide 1-9
Chapter 2
Contract Structure, Sensitive Issues, Management
Responsibilities, and Interactions 2-1
2.1 Introduction 2-1
2.2 Structure of the Response Action Contract 2-1
2.2.1 Contract Type 2-1
2.2.2 Contract Period of Performance 2-2
2.2.3 RAC Statement of Work 2-2
2.2.4 Work Assignments 2-9
2.2.5 Program Support 2-10
2.2.6 Reports of Work 2-11
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2.2.7 Performance (Award) Fee Plan 2-11
2.3 Contract-Sensitive Issues 2-12
2.3.1 Conflict of Interest 2-12
2.3.2 Indemnification 2-14
2.3.3 Pollution Liability Insurance 2-16
2.3.4 Inherently Governmental Functions 2-19
2.3.5 Sensitive Contracting Areas 2-19
2.3.6 Personal Services 2-21
2.3.7 Program Support 2-22
2.3.8 Patents 2-23
2.3.9 Environmental Justice 2-24
2.3.10 Small and Disadvantaged Business Utilization,
Mentor-Protege Program, and Labor Surplus Areas 2-25
2.3.11 Health and Safety 2-30
2.4 Contract Management Responsibilities 2-32
2.4.1 Headquarters Roles and Responsibilities 2-33
2.4.2 Regional Roles and Responsibilities 2-35
2.5 Contractor Interactions with Other EW Contractors, Federal Agencies,
and State and Local Agencies 2-38
2.5.1 Contractor Interactions with Other Superfund Contractors 2-39
2.5.2 Contractor Interactions with Other Federal Agencies 2-40
2.5.3 Contractor Interactions with State and Local Agencies 2-40
2.6 Bibliography 2-41
Chapter 3
Mobilization 3-1
3.1 Background and Requirement 3-1
3.2 Roles and Responsibilities for Mobilization 3-3
3.3 Bibliography 3-5
Chapter 4
Contract Administration 4-1
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TABLE OF CONTENTS
4.1 Introduction 4-1
4.2 Roles and Responsibilities for Contract Administration 4-5
4.3 Contract Funding 4-7
4.3.1 Background and Requirement 4-9
4.3.2 Roles and Responsibilities for Contract Funding 4-15
4.4 Exercising Contract Options 4-17
4.4.1 Background and Requirement 4-19
4.4.2 Roles and Responsibilities for Exercising Contract Options 4-21
4.5 Contract Modifications 4-23
4.5.1 Background and Requirement 4-25
4.5.2 Roles and Responsibilities for Administering Contract
Modifications 4-27
4.6 Contract Claims and Disputes 4-29
4.6.1 Background and Requirement 4-31
4.6.2 Roles and Responsibilities for Handling Contract Claims and
Disputes 4-34
4.7 Subcontract Review and Consent 4-35
4.7.1 Background and Requirement 4-37
4.7.2 Roles and Responsibilities in Subcontract Review and Consent.... 4-40
4.8 Handling Conflict of Interest Issues 4-41
4.8.1 Background and Requirement 4-43
4.8.2 Roles and Responsibilities for Handling Conflict of Interest
Issues 4-43
4.9 Managing Regional Crossovers 4-45
4.9.1 Background and Requirement 4-47
4.9.2 Roles and Responsibilities for Managing Regional Crossovers 4-48
4.10 Implementing Control Measures for Vulnerable Contracting Areas 4-51
4.10.1 Background and Requirement 4-53
4.10.2 Roles and Responsibilities for Implementing Control Measures
for Vulnerable Contracting Areas 4-56
4.11 Small and Disadvantaged Business Utilization, Contractor Participation
in Mentor-Protege Program, and Use of Labor Surplus Areas 4-59
4.11.1 Background and Requirement 4-61
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4.11.2 Roles and Responsibilities for Monitoring Contractor Compliance
with Subcontracting Plan 4-61
4.12 Annual Allocation of Non-Site-Specific Costs 4-63
4.12.1 Background and Requirement 4-65
4.12.2 Roles and Responsibilities for Annual Allocation 4-66
4.13 Annual Closeout 4-69
4.13.1 Background and Requirement 4-71
4.13.2 Roles and Responsibilities for Annual Closeout 4-72
4.14 Bibliography 4-73
Chapter 5
Issuing and Managing Work Assignments 5-1
5.1 Introduction 5-1
5.2 Roles and Responsibilities for Issuing and Managing Work Assignments... 5-3
5.3 Allocating Site-Specific Work Assignments to Contractors 5-7
5.3.1 Background and Requirement 5-9
5.3.2 Roles and Responsibilities for Allocating Work Assignments 5-11
5.4 Developing the Work Assignment Statement of Work 5-13
5.4.1 Background and Requirement 5-15
5.4.2 Roles and Responsibilities for Developing the Work Assignment
Statement of Work 5-18
5.5 Preparing and Using the Independent Government Cost Estimate 5-19
5.5.1 Background and Requirement 5-21
5.5.2 Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate 5-26
5.6 Preparing the Work Assignment Package and Issuing the Work
Assignment 5-29
5.6.1 Background and Requirement 5-31
5.6.2 Roles and Responsibilities for Preparing the Work
Assignment Package and Issuing the Work Assignment 5-32
5.7 Work Plan Technical Review andCost Evaluation 5-35
5.7.1 Background and Requirement 5-37
5.7.2 Roles and Responsibilities for Work Plan Evaluation 5-38
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5.8 Woilc Assignment Funding 5-41
5.8.1 Background and Requirement 5-43
5.8.2 Roles and Responsibilities for Work Assignment Funding 5-44
5.9 Establishing and Changing the Expenditure Limit 5-47
5.9.1 Background and Requirement 5-49
5.9.2 Roles and Resppnsibilities for Establishing and Changing the
Expenditure Limit 5-51
5.10 Issuing Technical Direction 5-53
5.10.1 Background and Requirement 5-55
5.10.2 Roles and Responsibilities for Issuing Technical Direction 5-56
5.11 Amending the Work Assignment 5-59
5.11.1 Background and Requirement 5-61
5.11.2 Roles and Responsibilities for Amending the Work Assignment and
Issuing Changes for a Remedial Action Work Assignment 5-63
5.12 Wage Rates and Surety Bonds for Remedial and Non-Time Critical Removal
Action Subcontracts 5-65
5.12.1 Background and Requirement 5-67
5.12.2 Roles and Responsibilities for Wage Rates and Surety Bonds for
Remedial Action Subcontracts 5-69
5.13 Value Engineering 5-71
5.13.1 Background and Requirement 5-73
5.13.2 Roles and Responsibilities for Value Engineering 5-76
5.14 Contractor Oversight 5-79
5.14.1 Background and Requirement 5-81
5.14.2 EPA's Relationship to Contractors and Subcontractors 5-83
5.14.3 Roles and Responsibilities in Contractor Oversight 5-83
5.15 Site Demobilization 5-85
5.15.1 Background and Requirement 5-87
5.15.2 Roles and Responsibilities for Site Demobilization 5-88
5.16 Work Assignment Closeout Procedures 5-89
5.16.1 Background and Requirement 5-91
5.16.2 Roles and Responsibilities for Work Assignment Closeout 5-92
5.17 Bibliography 5-95
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Chapter 6
Administering the Performance (Award) Fee Plan 6-1
6.1 Background and Requirement 6-1
6.1.1 Base and Performance (Award) Fee Provisions 6-1
6.1.2 Documentation of Performance Evaluations 6-4
6.1.3 Development of Performance Index Rating Score 6-5
6.2 Roles and Responsibilities for Administering the
Performance (Award) Fee Plan 6-6
6.3 Bibliography 6-7
Chapter 7
Using RAC Reports 7-1
This chapter will be issued at a later date.
Chapter 8
Equipment 8-1
This chapter will be issued at a later date.
Chapter 9
Delivery of Analytical Services 9-1
9.1 Background and Requirement 9-1
9.2 Roles and Responsibilities for Analytical Services Acquisition and
Management 9-3
9.3 Bibliography 9-4
MAY 31, 1995
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TABLE OF CONTENTS
Chapter 10
Cost Management 10-1
10.1 Background and Requirement 10-1
10.2 Roles and Responsibilities for Cost Management 10-8
10.3 Bibliography 10-10
Chapter 11
Records Management 11-1
11.1 Background and Requirement 11-1
11.2 Roles and Responsibilities for Records Management 11-5
11.3 Bibliography 11-7
Chapter 12
Contract Closeout 12-1
12.1 Background and Requirement 12-1
12.2 Roles and Responsibilities for Contract Closeout 12-3
12.3 Bibliography 12-5
Chapter 13
Revisions to the RAC Users' Guide 13-1
13.1 Background and Requirement 13-1
13.2 Roles and Responsibilities for Revising the RAC Users' Guide 13-1
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RAG USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Appendices
Appendix A: Glossary
Appendix B: Contract Clause Matrix
Appendix C: Users' Guide Revisions
Appendix D: Directives
Appendix E: Fact Sheets
Appendix F: Forms on Diskette
Appendix G: Model Statements of Work [Issued in a separate volume: PB95-9634U]
Exhibit 1-1 Chapter Summaries 1-3
Exhibit 1-2 Streamlining and Contract Management Initiatives 1-7
Exhibit 2-1 RAG SOW Work Breakdown Structure 2-4
Exhibit 2-2 RAG Conflict of Interest Clauses 2-13
Exhibit 2-3 Innovative Technologies 2-17
Exhibit 2-4 List of Inherently Governmental Functions 2-20
Exhibit 2-5 List of Sensitive Contracting Areas 2-21
Exhibit 2-6 Overview of Headquarters and Regional Roles in RACs 2-32
Exhibit 2-7 Headquarters' Roles and Responsibilities
for Overseeing RACs 2-34
Exhibit 2-8 Regional Roles and Responsibilities in Administering and
Managing Response Action 2-36
Exhibit 3-1 Roles and Responsibilities for Mobilization 3-4
Exhibit 4-1 IFMS Six-Field Accounting Data Structure 4-10
Exhibit 4-2 Regional Site-Specific Accounting 4-12
Exhibit 4-3 Breakdow of Work Areas by Bulk-Funding Categories 4-13
Exhibit 4-4 Work Assignment Number Structure 4-14
Exhibit 4-5 Roles and Responsibilities for Contract Funding 4-16
Exhibit 4-6 Roles and Responsibilities for Exercising Contract
Options 4-22
Exhibit 4-7 Examples of Contract Modifications and Their
Classifications 4-26
Exhibit 4-8 Roles and Responsibilities for Making Contract
Modifications 4-27
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TABLE OF CONTENTS
Exhibit 4-9 Claims and Disputes Process 4-33
Exhibit 4-10 Roles and Responsibilities for Handling Contract Claims
and Disputes 4-34
Exhibit 4-11 Subcontract Information 4-39
Exhibit 4-12 Roles and Responsibilities in Subcontract Review
and Consent 4-40
Exhibit 4-13 Roles and Responsibilities for Handling Conflicts
of Interest 4-44
Exhibit 4-14 Roles and Responsibilities for Managing
Regional Crossovers 4-49
Exhibit 4-15 Roles and Responsibilities for Implementing Control
Measures for Vulnerable Contracting Areas 4-57
Exhibit 4-16 Roles and Responsibilities for Monitoring Contractor
Compliance with Subcontracting Plan 4-61
Exhibit 4-17 Roles and Responsibilities for Annual Allocation 4-67
Exhibit 4-18 Roles and Responsibilities for Annual Closeout 4-72
Exhibit 5-1 Roles and Responsibilities for Allocating Work Assignments ..5-11
Exhibit 5-2 Roles and Responsibilities for Developing the Work
Assignment Statement of Work 5-18
Exhibit 5-3 Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate 5-27
Exhibit 5-4 Roles and Responsibilities for Preparing the Work
Assignment Package and Issuing the Work Assignment 5-33
Exhibit 5-5 Roles and Responsibilities for Work Plan Review and
Approval 5-39
Exhibit 5-6 Roles and Responsibilities for Work Assignment Funding 5-45
Exhibit 5-7 How to Use the Expenditure Limit to Manage a Work
Assignment 5-50
Exhibit 5-8 Roles and Responsibilities for Establishing and Changing
the Expenditure Limit 5-52
Exhibit 5-9 Overview of Issuing Technical Direction 5-56
Exhibit 5-10 Roles and Responsibilities for Issuing Technical Direction .... 5-57
Exhibit 5-11 Roles and Responsibilities for Amending the Work
Assignment and Issuing Changes for a Remedial Action
Work Assignment 5-64
Exhibit 5-12 Roles and Responsibilities for Wage Rates and Surety
Bonds for Remedial and Non-Time-Critical Removal Action
Subcontracts 5-70
Exhibit 5-13 Roles and Responsibilities for Value Engineering 5-77
Exhibit 5-14 Roles and Responsibilities for Contractor Oversight 5-84
Exhibit 5-15 Roles and Responsibilities for Site Demobilization 5-88
Exhibit 5-16 Roles and Responsibilities for Work Assignment Closeout.... 5-93
Exhibit 6-1 Relationship of Contractor Performance and Fee Structure.... 6-2
Exhibit 6-2 Payment of Base Fee 6-3
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 6-3 Roles and Responsibilities for Administering the Performance
(Award) Fee Plan 6-6
Exhibit 7-1 RAC Reports of Work 7-2
Exhibit 7-2 Contents of RAC Progress Report 7-3
Exhibit 7-3 Contents of RAC National Reports 7-5
Exhibit 7-4 Roles and Responsibilities for Using RAC Reports 7-7
Exhibit 9-1 Roles and Responsibilities for Acquiring and Managing
Analytical Services 9-3
Exhibit 10-1. Roles and Responsibilities for Cost Management 10-9
Exhibit 11-1 Overview of RAC Records 11-2
Exhibit 11-2 Roles and Responsibilities for Records Management 11-5
Exhibit 12-1 Roles and Responsibilities for Contract Closeout 12-3
Exhibit 13-1 Roles and Responsibilities for Revising the RAC
Users' Guide 13-1
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FOREWORD
Foreword
This is the Users' Guide for the Response Action Contracts (RACs)
procured by the U. S. Environmental Protection Agency (EPA) to accom-
plish response planning and oversight activities under the Comprehensive
Environmental Response Compensation and Liability Act of 1980
(CERCLA) as amended by the Superfund Amendments and Reauthoriza-
tion Act of 1986 (SARA). This guide was prepared by the RAC Users'
Guide Work Group, an Agency group composed of representatives from
the ten EPA Regional offices and EPA Headquarters. The guide is for use
by RAC Work Assignment Managers, Project Officers, and Contracting
Officers in managing and administering RACs. This volume of the guide,
Volume 1: Reference Guide, contains background, descriptive, and policy
information on the RAC program.
This guide does not duplicate other Agency guidance and should be
supplemented with other guidance for specific topics. Citations for
supplemental guidance are included throughout the guide where appli-
cable.
Inquiries and comments concerning this guide should be made to:
Nancy Ortowski
Hazardous Site Control Division (5203G)
Office of Emergency and Remedial Response
U.S. Environmental Protection Agency
401 M Street, S.W.
Washington, DC 20460
(703) 603-8785
Additional copies of this document (PB94-963412) may be obtained from
the following source:
Superfund Document Center (5201G)
401 M Street, S.W.
Washington, DC 20460
(703) 603-8917
MAY 31, 1996
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TABLE OF CONTENTS
Acknowledegments
The RAC Users' Guide Work Group Leader, Nancy Ortowski, extends
special recognition to the following individuals for their written contribu-
tions and ongoing support, essential technical expertise, and invaluable
recommendations and insight
Keith Kollar (Region 2)
Peggy Hendrixson (Region 5)
Steve Nathan (Region 5)
Thomas Short (Region 5)
Eve Boss (Region 6)
Richard Warrell (Region 6)
Deborah Morey (Region 7)
LowellToole (Region?)
Appreciation also is extended to the following individuals on the RAC
Users' Guide Work Group for all of their indispensable contributions in
the development of this guide:
Kathleen Hunt (Region 1)
Hilary Kelley (Region 1)
Diana King (Region 1)
Maggie Leshen (Region 1)
Kevin Weaver (Region 2)
Jim Clark (Region 3)
Martin Kotsch (Region 3)
Lester Lewis (Region 4)
Keith Mills (Region 4)
Jeff Napier (Region 4)
Matt Robbins (Region 4)
Rob Stem (Region 4)
Doug Thompson (Region 4)
Carlene Chambers (Region 6)
Deborah Ponder (Region 6)
TomC. Reilly (Region 6)
Linda Garwood (Region 7)
Steve Callio (Region 8)
Clyde LoSasso (Region 8)
Jeff Mashburn (Region 8)
Travis Cain (Region 9)
Wenona Garside (Region 9)
Mike Osinski (Region 9)
Diane Strassmaier (Region 9)
Tom Warner (Region 9)
Joanne LaBaw (Region 10)
D. J. Lovelady (Region 10)
John Blanchard (OERR)
Awilda Fuentes (OERR)
Kenneth Skahn (OERR)
Julianne Edmondson (OAS)
Martha (Marty) Cook (OAM)
Saul Goldberg (OAM)
Karen Higginbotham (OAM)
Richard Feldman (OGC)
Lisa Jenkins (OSWER)
Thank you also to Scott Fredericks and William Zobel for dedicating
resources to this project.
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MAY 31, 1995
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ACRONYMS AND ABBREVIATIONS
Acronyms and Abbreviations
A/E Architect/Engineer
AA, OSWER Assistant Administrator, Office of Solid Waste and Emergency Response
ACN Accounting Control Number
ADR Alternative Dispute Resolution
AO Administrative Order
AOA Advice of Allowance
AOC Administrative Order on Consent
AR Administrative Record
ARARs Applicable or Relevant and Appropriate Requirements
ARCS Alternative Remedial Contracting Strategy Contracts
ATSDR Agency for Toxic Substances and Disease Registry
BODR
BUREC
Basis of Design Report
Bureau of Reclamation
CA
CAP
CB
CBI
CCE
CD
CEAT
CERCLA
CERCLIS
CI
CIS
CLP
CMT
CO
COI
Cooperative Agreement
Contractor Acquired Property
Case Budget
Confidential Business Information
Construction Cost Estimate
Consent Decree
Contract Evidence Audit Team
Comprehensive Environmental Response, Compensation, and
Liability Act
Comprehensive Environmental Response, Compensation, and
Liability Information System
Civil Investigator
Contract Information System
Contract Laboratory Program
Contract Management Team
Contracting Officer
Conflict of Interest
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
COR
CORAS
CPAF
CPC
CPM
CPRNB
CPS
CRI
CRP
CSN
cso
CWA
Contracting Officer's Representative
Contract Operations Review and Assessment Staff
Cost-Plus-Award-Fee
Contract Property Coordinator
Critical Path Method
Cost Policy and Rate Negotiation Branch
Contract Payment System
Community Relations Implementation
Community Relations Plan
Contractor Selection Notice
Customer Service Office
Clean Water Act
D&CM
D&F
DAS
DBA
DCAA
DCMAO
DCMB
DCMC
DCN
DOI
DOJ
DOL
DQO
Design and Construction Manager
Determination and Finding
Delivery of Analytical Services
Davis-Bacon Act
Defense Contract Audit Agency
Defense Contract Management Area Office
Design and Construction Management Branch
Defense Contract Management Command
Document Control Number
Department of the Interior
Department of Justice
Department of Labor
Data Quality Objective
EA
EE/CA
EERU
EES
EL
EMSL
EPA
EPCRA
Endangerment Assessment
Engineering Evaluation/Cost Analysis
Environmental Emergency Response Unit
Environmental Enforcement Support
Expenditure Limit
Environmental Monitoring and Systems Laboratory
Environmental Protection Agency
Emergency Planning and Community Right-to-Know Act
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ACRONYMS AND ABBREVIATIONS
EPIC
EPM
ERNS
ERRS
ERT
ESAT
BSD
ESI
ESS
Environmental Photographic and Investigation Center
Enforcement Project Manager
Emergency Response Notification System
Emergency and Rapid Response Services
Environmental Response Team
Environmental Services Assistance Team
Environmental Services Division
Expanded Site Inspection
Enforcement Support Services Contract
FAB
FACO
FAR
FAS
FDO
FIT
FMC-RTP
FMD
FMO
FOIA
FR
FRC
FS
FSP
FTE
FY
FYE
Financial Analysis Branch
Financial Analysis Contracting Officer
Federal Acquisition Regulation
Financial Analysis Section
Fee Determination Official
Field Investigation Team
Financial Management Center, Research Triangle Park
Financial Management Division
Financial Management Office
Freedom of Information Act
Federal Register
Federal Records Center
Feasibility Study
Field Sampling Plan
Full-Time Equivalent
Fiscal Year
Fiscal Year Ending
G&A
GFO
GFP
GNL
GSA
General and Administrative
Good Faith Offer
Government Furnished Property
General Notice Letter
Government Services Administration
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RAG USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
HASP
HAZWOPER
HQ-FMO
HRS
HSCD
Health and Safety Plan
Hazardous Waste Operations and Emergency Response
Headquarters-Financial Management Office
Hazard Ranking System
Hazardous Site Control Division
IAG
IBCA
roc
IFMS
IGF
IMC
Inter-Agency Agreement
Department of Interior's Board of Contract Appeals
Indirect Cost
Integrated Financial Management System
Inherently Governmental Function
Information Management Coordinator
LDD
LEPC
LOE
LOFC
LSA
LTCS
LTRA
Loss, Damage, or Destruction
Local Emergency Planning Committee
Level of Effort
Limitation of Future Contracting
Labor Surplus Area
Long-Term Contracting Strategy
Long-Term Response Action
MATS
MOU
MSW
Master Audit Tracking System
Memorandum of Understanding
Municipal Solid Waste
NARA
NBAR
NCP
NEIC
NOAA
NPL
NRC
NSD
NTCR
NTCRA
National Archives and Records Administration
Non-Binding Preliminary Allocation of Responsibility
National Contingency Plan
National Enforcement Investigation Center
National Oceanic and Atmospheric Administration
National Priorities List
National Response Center
Negotiation Support Document
Non-Time Critical Removal
Non-Time Critical Removal Action
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ACRONYMS AND ABBREVIATIONS
O&F
O&M
OAM
OARM
ODCs
OE
OERR
OFPP
OGC
OIG
OIRM
OMB
OMSE
ORC
OSC
OSDBU
OSH
OSHA
OSWER
OU
OWPE
Operational and Functional
Operation and Maintenance
Office of Acquisition Management
Office of Administration and Resource Management
Other Direct Costs
Office of Enforcement
Office of Emergency and Remedial Response
Office of Federal Procurement Policy
Office of General Counsel
Office of Inspector General
Office of Information Resources Management
Office of Management and Budget
Office of Management Systems and Evaluation
Office of Regional Counsel
On-Scene Coordinator
Office of Small and Disadvantaged Business Utilization
Occupational Safety and Health
Occupational Safety and Health Administration
Office of Solid Waste and Emergency Response
Operable Unit
Office of Waste Programs Enforcement
PA
PCO
PCPM
FDD
PEB
PEF
PER
PIRS
PLI
PNRS
PO
POLREP
PPE
Property Administrator
Plant Clearance Officer
Prime Contractor Program Manager
Preauthorization Decision Document
Performance Evaluation Board
Performance Evaluation Form
Performance Evaluation Report
Performance Index Rating Score
Pollution Liability Insurance
Preliminary Natural Resource Surveys
Project Officer
Pollution Report
Personal Protective Equipment
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
PR
PRP
PS
Procurement Request
Potentially Responsible Party
Program Support
QA/QC
QAB
QAMP
QAO
QAPP
Quality Assurance/Quality Control
Quality Assurance Branch
Quality Assurance Management Plan
Quality Assurance Officer
Quality Assurance Project Plan
RA
RAC
RACS
RC
RCRA
RD
RDT
RES
RESAT
RI/FS
RMT
ROD
RP
RPM
RRT
RSCC
RTP
Remedial Action
Response Action Contract
Response Action Contracting Strategy
Record Center
Resource Conservation and Recovery Act
Remedial Design
Regional Decision Team
Regional Evaluation Summary
Regional Environmental Services Assistance Team
Remedial Investigation/Feasibility Study
Regional Management Team
Record of Decision
Responsible Party
Remedial Project Manager
Regional Response Team
Regional Sample Control Center
Research Triangle Park
S/RPOD
S/SIDs
SAB
SACM
SAIC
SAP
Superfund/RCRA Procurement Operations Division
Site/Spill Identifiers
Superfund Accounting Branch
Superfund Accelerated Cleanup Model
Special-Agent-In-Charge
Sampling and Analysis Plan
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ACRONYMS AND ABBREVIATIONS
SARA
SAS
SBA
SCA
SCAP
SCORES
SCRIPS
SDB
SDBU
SE
SEAM
SETS
SF
SI
SMOA
SMP
SNL
SOL
SOP
SOW
SPO
SPUR
SRO
STARS
START
Superfund Amendments and Reauthorization Act
Special Analytical Services
Small Business Administration
Service Contract Act
Superfund Comprehensive Accomplishments Plan
Superfund Cost Organization and Recovery Enhancement System
Superfund Cost Recovery Image Process System
Small and Disadvantaged Business
Small and Disadvantaged Business Utilization
State Enforcement
Superfund Exposure Assessment Manual
Superfund Enforcement Tracking System
Standard Form
Site Investigation
Superfund Memorandum of Agreement
Site Management Plan
Special Notice Letter
Statute of Limitations
Standard Operating Procedure
Statement of Work
State Project Officer
Software Package for Unique Reports
Superfund Revitalization Office
Strategic Targeting Activities Reporting System
Superfund Technical Assessment and Response Team
TAG
TAT
TBC
TBD
TD
TDM
TES
TESWATS
TQM
Technical Assistance Grant
Technical Assistance Team
To-Be-Considered Material
To-Be-Determined
Technical Direction
Technical Direction Memorandum
Technical Enforcement Support
Technical Enforcement Support Work Assignment Tracking System
Total Quality Management
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
TSC
TSCA
TST
Transportation Systems Center
Toxic Substances Control Act
Technical Support Team
UAO
USAGE
USGC
USGS
Unilateral Administrative Order
United States Army Corps of Engineers
United States Coast Guard
United States Geological Survey
VE
VECP
VEP
Value Engineering
Value Engineering Change Proposal
Value Engineering Proposal
WA
WAAM
WACN
WACR
WAF
WAM
WAP
WasteLAN
WBS
WP
Work Assignment
Work Assignment Allocation Matrix
Work Assignment Closeout Notification
Work Assignment Completion Report
Work Assignment Form
Work Assignment Manager
Work Assignment Package
Waste Local Area Network
Work Breakdown Structure
Work Plan
MAY 31, 1995
xxvl
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Response Action Contract
(RAQ Uses' Guide
Volume 1: Reference Guide
Introduction
CHAPTE R
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
A/E Architect/Engineer
ARCS Alternative Remedial
Contracting Strategy
CMT Contract Management Team
CO Contracting Officer
COI Conflict of Interest
EPAAR EPA Aquisition Regulation
FAR Federal Acquisition
Regulation
FDO Fee Determination Official
LTCS Long-Term Contracting
Strategy
OSWER Office of Solid Waste and
Emergency Response
PEB Performance Evaluation
Board
PO Project Officer
RAC Response Action Contract
RACS Response Action
Contracting Strategy
SOW Statement of Work
WA Work Assignment
WAF Work Assignment Form
WAM Work Assjgnment Manager
WAP Work Assignment Package
WBS Work Breakdown Structure
WP Work Plan
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
Purpose of the RAC Users' Gu/de
Required, Core, and Noncore Elements of Guidance
How to Use the Guide
Content and Organization of the Guide
Where RAC Clauses Are Addressed in the Guide
Background of Long-Term Contracting Strategy and RACs,
Streamlining and Contract Management Initiatives
Updates to the Guide
Exhibits
Exhibit 1-1 Chapter Summaries
Exhibit 1-2 Streamlining and Contract Management Initiatives.
.1-1
1-1
1-2
1-3
1-5
1-5
1-6
1-9
1-3
1-7
MAY 31, 1995
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CHAPTER 1 » INTRODUCTION
1,1 Purpose of the RAC Users' Guide
The purpose of the Response Action Contract (RAC) Users' Guide is to
provide user-friendly, comprehensive guidance to all current and future
RAC managers. The guide establishes sound contract management
principles and procedures necessary for RAC managers to responsibly
perform their contract management duties according to the terms and
requirements of the contract, the Federal Acquisition Regulation (FAR),
the EPA Acquisition Regulation (EPAAR), EPA orders, and Office of Solid
Waste and Emergency Response (OSWER) directives. The guide provides
guidance for the core RAC contract management team (CMT)—Regional
Work Assignment Managers (WAMs), Project Officers (POs), and Con-
tracting Officers (COs)—on administering and managing RACs, and
defines individual responsibilities of the WAMs, POs, and COs. This
approach allows all members of the CMT to understand the full spectrum
of RAC processes and responsibilities. The goal of the guide is to pro-
mote national consistency in RAC management, while allowing flexibility
for Region-specific procedures as needed.
1,2 Required, Core, and Noncore Elements of Guidance
The Headquarters Users' Guide Coordination Work Group recommends
that users' guides for all Long-Term Contracting Strategy (LTCS) con-
tracts identify guidance in three categories: required, core, and noncore.
This approach establishes parameters that provide Regional flexibility to
promote efficient contract management, while supporting the need for
Headquarters contract oversight and national program consistency in
administration and management of the contracts. Required, core, and
noncore elements of guidance are defined as follows.
1) Required elements are part of the contract or are required by directive
or law (i.e., FAR, EPAAR). Required elements are not subject to revi-
sion. The management of these elements must be consistent through-
out the Regions.
2) Core elements are significant elements of contract administration that
are generally supported or outlined by Agency implementation guid-
ance. Core elements include practices that the RAC Users' Guide Work
Group agrees all Regions should abide by for programmatic consis-
tency. Core elements are subject to change by a Region as long as the
change is fully documented and agreed upon by Headquarters.
Notification of Regional changes to core elements and the purpose for
the change(s) should be forwarded to the designated LTCS Program
lead. The LTCS Program lead disseminates this information to the
Office of Acquisition Management, OSWER Acquisition Staff, RAC
Users' Guide Work Group, and LTCS Users' Guide Work Group, as
appropriate.
1-1
The guide defines required, core,
and noncore elements of guidance.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
The Reference Guide is
informational and the Process
Guide is procedural.
The LTCS Program lead follows up on any unresolved issues (if
necessary) and coordinates replies to the Region, as well as tracking
changes to the RAC Users' Guide. There is a 21 calendar-day
timeframe for issuing a response to a Region's deviation request. Upon
receiving the request, the LTCS program lead notifies the Region that
the request has been received and is in process. This notification starts
the clock on the 21 calendar-day period. The Region may implement
the deviation beginning on the 22nd calendar-day unless the Region
has been notified by Headquarters that its request was denied or
additional time is needed to issue a response. Should the approval of a
change be needed within a shorter time frame, expedited communica-
tion tools (e.g., phone, fax, E-mail) should be used. This approach
provides RAC management with the necessary consistency and allows
sharing of good ideas with other Regions. Regional procedures for
approved deviations from core elements must be included in the guide
in the designated sections of Volume 2: Process Guide.
3) Noncore elements are minor elements of contract administration that
allow for variances in Regional procedures. Regions must document
changes to noncore elements and are encouraged to provide this
information to the Headquarters program lead. Region-specific proce-
dures for noncore elements should be included in the guide in the
designated sections of Volume 2: Process Guide.
Matrices of required, core, and noncore elements of guidance appear in
Volume 2: Process Guide.
1,3 How to Use the Guide
The RAC Users' Guide is presented in two volumes:
• Volume 1: Reference Guide contains background, descriptive, and
policy information on the RAC program. The Reference Guide dis-
cusses the background and requirement for each process and lists roles
and responsibilities of individuals involved in the process. The Refer-
ence Guide contains the following appendices:
Appendix A—Glossary defines key terms used in the guide.
Appendix B—Contract Clause Matrix identifies RAC clauses and
indicates where in the guide they are referenced or discussed.
Appendix C—Users' Guide Revisions provides a holding area for
the Regions to place notices of Users' Guide revisions received
throughout the year.
Appendix D—Directives provides a place for the Regions to keep
Agency directives that relate to Users' Guide topics.
Appendix E—Fact Sheets provides a place for the Regions to keep
Fact Sheets that relate to Users' Guide topics.
1-2
MAY 31, 1995
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CHAPTER 1 » INTRODUCTION
- Appendix F—Forms on Diskette provides a diskette containing
electronic versions of most RAC forms shown in the guide.
Appendix G—Model Statements of Work, provided in a separate
volume, contains model statements of work for specific phases of
the remedial process for the Regions to use in developing RAC
work assignments (WAs).
• Volume 2: Process Guide is the "how to" part of the guide that recom-
mends procedures for the WAMs, POs, and COs to follow in managing
RACs. For most activities, the Process Guide provides a process flow
diagram and step-by-step procedures that identify WAM, PO, and CO
roles. The Process Guide specifies required, core, and noncore ele-
ments of guidance.
The Process Guide has one appendix, Appendix A—Users' Guide
Revisions, which provides a holding area for the Regions to place
notices of Users' Guide revisions received throughout the year.
The Reference Guide and Process Guide are organized identically so that
the chapters for each match. In Chapters 4 and 5, the sections correlate as
well. For example, for information on contract funding, the user should
turn to sections 4.3 of the Reference Guide and 4.3 of the Process Guide.
Users should consult the Reference Guide for an overview of the require-
ment, including background information, references to contract and/or
FAR clauses that cite the requirement, Agency policy, and initiatives that
impact handling of the process(es) related to the requirement. Also
included is information on the personnel involved in the process and the
activities for which they are responsible. The Reference Guide is particu-
larly useful for educating new RAC program staff.
1,4 Content and Organization of the Guide
The RAC Users' Guide is organized into thirteen chapters. For each
chapter, the Reference Guide contains the background information on the
requirement and a list of management responsibilities; the Process Guide
contains the instructional guidance. A summary of each chapter is pro-
vided in Exhibit 1-1.
Chapter 1 Introduction
This chapter discusses the purpose, content, and organization of the RAC Users' Guide
and provides guidance on how to use it. The chapter also highlights streamlining
initiatives and management improvements that have been incorporated in RAC
management and administration procedures.
51-033-155A
The chapters in the Reference
Guide correlate directly with those
in the Process Guide.
ExhbitM. Chapter Summaries
1-3
MAY 31, 1905
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 1-1, Chapter Summaries,
contd.
Chapter 2 Contract Structure, Sensitive Issues, Management Responsibilities,
and Interactions
This chapter describes the basic elements of RAC structure and discusses several
contract-sensitive issues, such as conflict of interest (COI) and indemnification, in
terms of their impact on managing RAC performance. The chapter also describes the
division of contract management responsibilities between the EPA Regional CMT and
EPA Headquarters. Finally, potential interactions of RAC contractors with other EPA
contractors, Federal agencies, and/or State and local governments are identified.
Chapters Mobilization
This chapter describes the activities involved in contractor mobilization and EPA
oversight of those activities.
Chapter 4 Contract Administration
This chapter discusses 11 aspects of contract administration, such as funding, exercising
contract options, contract modifications, handling COI and Regional crossovers, and
annual allocation of non-site-specific costs.
Chapter 5 Issuing and Managing Work Assignments
This chapter describes how to issue and manage WAs under RACs, beginning with
developing the WA SOW, continuing through WA issuance and work plan (WP) review
and approval, and ending with WA closeout. The chapter provides general guidance
for preparing the independent government cost estimate, conducting WP negotiations,
contractor oversight, issuing technical direction, and funding and amending WAs.
There are related discussions on surety bonding, value engineering, and site
demobilization.
Chapter 6 Administering the Performance (Award) Fee Plan
This chapter explains how the RAC Performance (Award) Fee Plan will be implemented,
and provides guidance to performance monitors on how to administer the base and
performance (award) fee provisions of the contract.
Chapter 7 Using RAC Reports
This chapter describes RAC reporting requirements and discusses how EPA uses the
information in each report.
Chapters Equipment
Due to last minute changes in EPA policy on government property, Chapter 8 will be
issued at a later date.
Chapter 9 Analytical Services Acquisition and Management
This chapter describes the conditions and alternatives for acquiring analytical services
under RACs, and provides guidance on how to manage analytical services contracted
through RACs.
Chapter 10 Cost Management
This chapter describes the elements of cost management applied in managing RACs,
including monitoring contractor costs, reviewing contractor invoices, conducting voucher
validation reviews, reviewing contractor claims and change orders, and tracking cost
recovery activities.
51-033-1668(2)
1-4
MAY 31, 1995
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Chapter 11 Records Management
This chapter provides guidance on the proper organization, maintenance, and disposition
of RAC records. It emphasizes the importance of the contractor and EPA establishing
parallel contract and WA files.
Chapter 12 Contract Closeout
This chapter describes the requirements for contract closeout per the contract closeout
work area in the RAC SOW. It details the steps in the contract closeout process, from
EPA issuing the contract closeout WA, through property disposition, determination of
final costs, and receipt of the final voucher and report.
Chapter 13 Revisions to the RAC Users' Guide
This chapter explains how and when the RAC Users' Guide is updated, describing
Regional and Headquarters responsibilities in the revision process.
51-033-155(3)A
1,5 Where RAC Clauses Are Addressed in the Guide
Appendix B—Contract Clause Matrix lists RAC clauses and identifies the
section(s) or chapter(s) where the clauses are addressed in the RAC Users'
Guide. Clause citations appear in the guide in the appropriate sections.
1,6 Background of Long-Term Contracting Strategy and RACs
In September 1990, EPA issued its final Superfund LTCS (OSWER
Directive 9242.6-07FS), which defined the portfolio of Superfund con-
tracts for the rest of the twentieth century. The LTCS is based on the
following key principles:
• supporting an integrated "one program" approach to enforcement and
response
• building in flexibility to respond to changing program priorities and
budgets
• supporting project management from site discovery through remedy
construction while avoiding program disruption
• decentralizing contracts management to the Regions where practical
• supporting rapid response to immediate risks
• enhancing participation by small businesses
RACs are the long-term cleanup contracting component of the LTCS.
They provide professional architect/engineer (A/E) services to support the
response planning and oversight component of the LTCS. RACs are
procured through the Brooks Act process for A/E contracts. These Re-
gional contracts replace the existing Alternative Remedial Contracting
Strategy (ARCS) contracts.
1-5
CHAPTER 1 • INTRODUCTION
Exhibit 1-1, Chapter Summaries,
contd.
RACs integrate remedial, enforce-
ment oversight, and non-time-
critical removal activities into a
single, flexible contracting struc-
ture managed on a Regional basis.
MAY 31, 1995
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RAG USERS1 GUIDE, VOLUME 1: REFERENCE GUIDE
In 1991, an Agency-wide Response Action Contracting Strategy (RACS)
Work Group was formed to implement the response action contract
component of the LTCS. The RACS Work Group was led by the Office of
Emergency and Remedial Response's Hazardous Site Control Division,
and composed of representatives from the Office of Acquisition Manage-
ment, Regions, Contract Operations Review and Assessment Staff,
Emergency Response Division, Office of Waste Programs Enforcement,
and Superfund Revitalization Office. The Work Group prepared an
implementation plan for procuring RACs which laid out the framework
for the work to be accomplished in structuring and placing RACs. The
Regions then independently prepared implementation plans for their
RACs. The diversity of the Regional RAC implementation plans high-
lighted the need for a national acquisition model and users' guide to
promote consistency in contract procurement and management.
During 1992 and 1993, the RACS Work Group developed and distributed
to the Regions the RAC Acquisition Model, which provided background and
direction for soliciting RACs. The RAC Acquisition Model and this Users'
Guide are based on, and integrate the results of, three studies performed by
the RACS Work Group:
• the Regional capacity study, which identified the amount and type of
work that RACs will support
• the strategy study, which outlined options for structuring RACs,
analyzed the options, and prepared recommendations for decision
makers
• the roles and responsibilities study, which explored organizational
structure and responsibilities for managing RACs
1,7 Streamlining and Contract Management Initiatives
The Agency is committed to continuous efforts to improve contract
management and streamline processes across the board. These efforts are
intended to enhance operating effectiveness, maximize limited resources,
and incorporate control measures for vulnerable contracting areas. The
RAC Users' Guide reflects several of these efforts, including: streamlin-
ing and contract management initiatives from the ARCS Task Force effort
to improve contract management processes; streamlining recommenda-
tions from the "LTCS Review Final Report" issued in February, 1994;
recommendations of the Superfund Accelerated Cleanup Model (30-Day
Study); and various Agency directives concerning improvements to
specific program elements and processes.
The streamlining and contract management initiatives undertaken in
RACs are presented in Exhibit 1-2 within the contract areas of assigning,
managing, and evaluating work. Primary emphasis is given to streamlin-
ing the WA and performance (award) fee processes.
1-6
MAY 31, 1995
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CHAPTER 1 * INTRODUCTION
Exhibit 1-2. Streamlining and Contract Management Initiatives
Contracting Area
WA Issuance
• Bulk funding eliminates the need to process procurement
requests with each WA and WA amendment (except for
remedial actions and completion-form WAs which will
still be funded site specifically).
• Use of a national SOW with a detailed work breakdown
structure (WBS) streamlines WA SOW development.
• Use of model SOWs for key work areas ensures
consistency of WA WBSs across Regions.
• Identifying potentially responsible parties and requesting
contractors to prepare COI certifications/disclosures prior
to WA issuance identifies COI early and avoids expending
resources on WP development.
RAC Users' Guide Chapter or Section
Section 4.3 - Contract Funding
Section 5.4 - Developing the Work Assignment
Statement Of Work
Section 5.4 - Developing the Work Assignment
Statement Of Work
Section 2.3.1 - Conflict of Interest
Section 4.8 - Handling Conflict of Interest Issues
Section 5.6 - Preparing the Work Assignment Package
and Issuing the Work Assignment
WA Management
• The RAC work assignment form (WAF) has been
improved for easier usage. Additionally, a WA
Streamlining Work Group is developing a standard
WAF to use across all Regions and contract types.
• Enhanced reporting requirements at both the contract
and WA levels provide better management tools to
theWAM,PO,andCO.
• Reporting requirements are standardized across
Regions and contracts so that all contractors are
reporting the same information in the same format.
• The progress report is submitted concurrently with
the invoice to allow adequate time for WAM and PO
review of contractor activities and costs.
• The progress report and invoice cover the same
calendar period and define data elements identically.
The Regions can compare invoice costs directly
to financial progress report costs and performance to
better manage both cost and performance.
• The invoice backup report is submitted in the monthly
progress report, so the Region has time to review
this information before receiving the invoice.
• Reporting and invoicing follow the contract WBS, so
that activities and costs can be readily tracked.
Section 5.6 - Preparing the Work Assignment Package
and Issuing the Work Assignment
Chapter 7 - Using RAC Reports
Chapter 7 - Using RAC Reports
Chapter 7 - Using RAC Reports
Chapter 7 - Using RAC Reports
Chapter 7 - Using RAC Reports
Chapter 7 - Using RAC Reports
WA Evaluation and Fee Determination
• Fee Determination Official (FDO) authority may be
delegated to the Regions to facilitate the fee determination
process.
Chapter 6 - Administering the Performance (Award)
Fee Plan
51-033-156C
1-7
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 1-2. Streamlining and Contract Management Initiatives, contd.
Contracting Area
WA Evaluation and Fee Determination (contd.)
• There is a one-time performance (award) fee determi-
nation after the WA is completed.
• The contractor receives a provisional base fee for
satisfactory work. If the Performance Evaluation Board's
(PEB) final WA performance rating is "unsatisfactory," the
contractor is required to return to the government all base
fee received provisionally for that WA.
• Only performance rated by the PEB as "exceeds
expectations" or "outstanding" qualifies for performance
(award) fee.
• PEB evaluation of ongoing WAs is required
only for completed WAs and those WAs that meet
specified minimums during the evaluation period.
• The PEB report that goesto the FDD is limited
to evaluations of completed WAs for which
performance (award) fee is being determined.
• The marginally satisfactory rating has been abolished
to streamline the evaluation process and ensure a clear
distinction that the contractor has or has not met the
government's minimum requirements.
• The Performance Evaluation Form combines two forms
used under ARCS, the Performance Event Report and
the Summary Evaluation Report.
RAC Users' Guide Chapter or Section
Chapter6 -Administering the Performance (Award)
Fee Plan
Chapter 6 - Administering the Performance (Award)
Fee Plan
Chapter 6 -Administering the Performance (Award)
Fee Plan
Chapter6 -Administering the Performance (Award)
Fee Plan
Chapter6 -Administering the Performance (Award)
Fee Plan
Chapter6 -Administering the Performance (Award)
Fee Plan
Chapter6 -Administering the Performance (Award)
Fee Plan
51-033-156C
1-8
MAY 31, 1995
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CHAPTER 1 » INTRODUCTION
1,8 Updates to the Guide
The RAC Users' Guide is updated annually and as needed throughout the
year. Annual revisions are provided as "revision pages" to be inserted into
the guide to replace outdated pages. Supplemental revisions during the
year may be in the form of memoranda, directives, or revision pages,
depending on the type and scope of the change. An appendix is provided
in each volume of the guide to keep supplemental revisions that occur
during the year and to track insert pages. Procedures and responsibilities
for Users' Guide revisions are described in Chapter 13.
Regions are encouraged to add
pertinent fact sheets and directives
to the guide, as issued throughout
the course of the contract, to keep
the guide current.
1-9
MAY 31, 1995
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Response Action Contract
(RAQ Users' Guide
yolmel: Reference Guide
Contract Structure,
Sensitive Issues,
Management
Responsibilities,
and Interactions
CHAPTER
MAY 31, 1995
-------
RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CBI Confidential Business
Information
CERCLA Comprehensive Environ-
mental Response,
Compensation, and
Liability Act
CFR Code of Federal
Regulations
CLP Contract Laboratory
Program
CO Contracting Officer
COI Conflict of Interest
CPAF Cost Plus Award Fee
DO Delivery Order
EPAAR Environmental Protection
Agency Acquisition
Regulation
FAR Federal Acquisition
Regulation
FS Feasibility Study
HASP Health and Safety Plan
HAZWOPER Hazardous Waste
Operations and Emergency
Response
HSCD Hazardous Site Control
Division
IGCE Independent Government
Cost Estimate
IGF Inherently Governmental
Function
LOE Level of Effort
LOFC Limitation of Future
Contracting
LSA Labor Surplus Area
NEJAC National Environmental
Justice Advisory Council
NTCR Non-Time-Critical Removal
0AM Office of Acquisition
Management
OAS OSWER Acquisition Staff
Office
OERR Office of Emergency and
Remedial Response
OFPP Office of Federal
Procurement Policy
OGC Office of General Counsel
OMB Office of Management and
Budget
2.1 Introduction 2-1
2.2 Structure of the Response Action Contract 2-1
2.2.1 Contract Type 2-1
2.2.2 Contract Period of Performance 2-2
2.2.3 RAC Statement of Work 2-2
2.2.4 Work Assignments 2-9
2.2.5 Program Support 2-10
2.2.6 Reports of Work 2-11
2.2.7 Performance (Award) Fee Plan 2-11
2.3 Contract-Sensitive Issues. 2-12
2.3.1 Conflict of Interest 2-12
2.3.2 Indemnification 2-14
2.3.3 Pollution Liability Insurance 2-16
2.3.4 Inherently Governmental Functions 2-19
2.3.5 Sensitive Contracting Areas 2-19
2.3.6 Personal Services 2-21
2.3.7 Program Support 2-22
2.3.8 Patents 2-23
2.3.9 Environmental Justice 2-24
2.3.10 Small and Small Disadvantaged Business Utilization,
Mentor-Protege Program, and Labor Surplus Areas 2-25
2.3.11 Health and Safety 2-30
2.4 Contract Management Responsibilities 2-32
2.4.1 Headquarters Roles and Responsibilities 2-33
2.4.2 Regional Roles and Responsibilities 2-35
2.5 Contractor Interactions with Other EW Contractors, Federal Agencies,
and State and Local Agencies 2-38
2.5.1 Contractor Interactions with Other Superfund Contractors 2-39
2.5.2 Contractor Interactions with Other Federal Agencies 2-40
2.5.3 Contractor Interactions with State and Local Agencies 2-40
2.6 Bibliography 2-41
MAY 31, 1995
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CHAPTER 2 * CONTRACT STRUCTURE, SENSITIVE ISSUES,
MANAGEMENT RESPONSIBILITIES, AND INTERACTIONS
Exhibits
Exhibit 2-1
Exhibit 2-2
Exhibit 2-3
Exhibit 2-4
Exhibit 2-5
Exhibit 2-6
Exhibit 2-7
Exhibit 2-8
RAC SOW Work Breakdown Structure
RAC Conflict of Interest Clauses
Innovative Technologies
List of Inherently Governmental Functions
List of Sensitive Contracting Areas
Overview of Headquarters and Regional Roles in RACs
Headquarters' Roles and Responsibilities
for Overseeing RACs
Regional Roles and Responsibilities in Administering
and Managing Response Action Contracts
... 2-4
2-13
2-17
2-20
2-21
2-32
2-34
2-36
Table of Contents, contd,
Acronyms, contd.
OSDBU Office of Small Disadvantage
Business Utilization
OSWER Office of Solid Waste and
Emergency Response
PEB Performance Evaluation
Board
PLI Pollution Liability Insurance
PO Project Officer
PPE Personal Protective
Equipment
PR Procurement Request
PRP Potentially Responsible
Party
PS Program Support
RA Remedial Action
RAC Response Action Contract
RD Remedial Design
Rl Remedial Investigation
SARA Superfund Amendments
and Reauthorization Act
SBA Small Business Administration
SDB Small Disadvantages!
Business
SDBU Small Disadvantage
Business Utilization
SOP Standard Operating
Procedure
SOW Statement of Work
S/RPOD Superfund/Resource
Conservation and Recovery
Act Procurement Operations
Division
SSC Superfund State Contract
START Superfund Technical,
Assessment, and Response
Teams
TD Technical Direction
TDM Technical Direction
Memorandum
USAGE U.S. Army Corps of Engineers
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WAP Work Assignment Package
WBS Work Breakdown Structure
WP Work Plan
MAY 31, 1996
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CHAPTER 2 • CONTRACT STRUCTURE, SENSITIVE ISSUES,
MANAGEMENT RESPONSIBILITIES, AND INTERACTIONS
2,1 Introduction
This chapter provides background information on the structure of Re-
sponse Action Contracts (RACs), discusses several contract-sensitive
issues in RACs, and provides an overview of the team approach to man-
agement roles and responsibilities in RACs. Additionally, interactions
between RAC contractors and other entities, such as other Superfund
contractors, Federal agencies other than EPA, and State and local govern-
ments, are discussed.
2,2 Structure of the Response Action Contract
This section describes the key features of the RAC structure, including the
contract type, period of performance, statement of work (SOW), method
of ordering work, breakdown of program support, reports of work, and
performance (award) fee plan.
2.2.1 Contract Type
RAC is a cost-reimbursement, incentive contract. Specifically, it is a cost-
plus-award-fee (CPAF) contract. The Federal Acquisition Regulation
(FAR) Part 16 describes cost-reimbursement, incentive, and CPAF con-
tracts as follows.
Cost-reimbursement contracts provide for payment of allowable incurred
costs, to the extent prescribed in the contract (FAR 16.301-1). A cost-
reimbursement contract is appropriate when government surveillance
during contract performance will provide reasonable assurance that
efficient methods and effective cost controls are used (FAR 16.301-3).
Cost-reimbursement contracts that contain incentives are appropriate
when the required supplies or services can be acquired at lower costs, and
in certain instances, with improved delivery or technical performance, by
relating the amount of profit or fee payable under the contract to the
contractor's performance (FAR 16.401).
A CPAF contract is a cost-reimbursement contract that provides for a fee
consisting of (a) a base amount (which may be zero), fixed at the incep-
tion of the contract and (b) an award amount that the contractor may earn
in whole or in part during contract performance, based upon a judgmental
evaluation by the government. The award amount should be sufficient to
provide contractor motivation to excel in such areas as quality, timeliness,
technical ingenuity, and cost-effective management (FAR 16.305 and
16.404-2). See section 2.2.7 and Chapter 6 for information on the RAC
Performance (Award) Fee Plan.
2-1
RAC is a cost-plus-award-fee
contract.
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The RAC period of performance is
five years with a five-year option
period.
2.2.2 Contract Period of Performance
RACs provide a base period of five years from the date of award and one
five-year option period that can be exercised at the discretion of the
government. Information on how to exercise the option period is provided
in section 4.4.
2.2.3 RAC Statement of Work
RACs provide professional architect/engineer, technical, and management
services to EPA to support remedial response, enforcement oversight, and
non-time-critical removal (NTCR) activities performed in the Region
under the Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA) and the Superfund Amendments and Reauthori-
zation Act (SARA).
The RAC SOW requires the contractor to perform the following activities:
• program support (management)
• pre-remedial activities
• remedial investigation (RI) and feasibility studies (FS)
• engineering services to design remedial action (RA)
• engineering evaluation and cost analysis for NTCR actions
• construction management for implementing RAs and NTCR actions,
including issuing and managing subcontracts for construction of the
selected remedy, and engineering services for construction oversight
• enforcement support, including oversight of RI/FS, remedial design
(RD), RA, and negotiation support
• other technical assistance, including community relations, sampling
and analysis support, and pre-design investigations
Services include technical and management support for EPA's coordina-
tion and oversight of remedial activities performed by a State, Native
American or Tribal Governments, the U.S. Army Corps of Engineers
(USAGE), or responsible parties identified in enforcement actions.
The RAC scope of work does not include Federal facilities oversight.
Listed below are examples of several types of services that shall not be
performed under RACs.
• operation of the government records holding area
• operation of the mail room
• operation of the computer room
• operation of the help desk
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• operation of the administration office
• data entry (except as an incidental service)
• software development (except as an incidental service)
• procurement of office space for government employees
• non-Superfund work
• services directed by State agencies
This contract provides for professional services of an architectural or
engineering nature that are associated with research, development, design,
construction, alteration, or repair of real property and are required by law
to be performed by registered, licensed, or certified architects and engi-
neers. This contract also provides for other incidental services that
members of the architectural or engineering professions or those in the
contractor's employ may logically or justifiably perform in conjunction
with professional architect/engineer services.
RACs supplement and eventually will replace the Alternative Remedial
Contracting Strategy contracts. Enforcement Support Services and Emer-
gency and Rapid Response Services contracts will continue, but enforce-
ment oversight and NTCR activities will be transferred to RACs.
The RAC SOW is a national standardized SOW developed by the Re-
sponse Action Contracting Strategy Work Group for use in all Regions.
The SOW is presented in a work breakdown structure (WBS) format. The
WBS is comprised of work areas, tasks, and subtasks. Work areas are
established at the work assignment (WA) level. This means that separate
WAs are issued for each SOW work area. Tasks and potential subtask
activities for each work area are identified and described in the SOW.
Subtasks are specified by the Region in individual WAs as they are issued.
The contractor is required to use the SOW WBS, as supplemented through
individual WAs, for project scoping, scheduling, and technical and cost
tracking and reporting. The contractor must track and report activities and
costs to the task level and, if specified in individual WAs, to the subtask
level.
The SOW WBS is depicted in Exhibit 2-1. Work areas are organized into
four categories:
• Program Support (PS)
• Site-Specific Fund-Lead
• Site-Specific Enforcement Support
• Other Site-Specific Technical Assistance
The SOW WBS specifies activity and work area codes for each work
area and task category codes for tasks in a work area. The contractor is
2-3
Separate WAs must be issued for
each SOW work area.
The contractor must track and
report activities and costs to the
task or subtask level, as specified
in the WA.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 2-1. RAC SOW Work Breakdown Structure, page 1 of 5
MOBILIZATION
Work Area Code: MO
Activity Code: 9
Program Support Work Areas
Tasks and 1. Project Planning and Support (PP)
Task 2. Information Controls and Reporting (1C)
Category 3. Standard Operating Procedures (SP)
Codes 4. Team Subcontracts (TB)
5. Pollution Liability Insurance (LI)
6. Work Assignment Closeout (CO)
EQUIPMENT (NON-SITE-SPECIFIC)
Work Area Code: EQ Tasks and
Activity Code: A Task
Category
Codes
1. Project Planning and Support (PP)
2. Mobilization (MO)
3. Equipment Acquisition (EA)
4. Equipment Maintenance (EM)
5. Tracking and Reporting (TR)
6. Work Assignment Closeout (CO)
ONGOING ADMINISTRATIVE SUPPORT
Work Area Code: OA Tasks and
Activity Code: 9 Task
Category
Codes
1. Project Planning and Support (PP)
2. Contract Integrity (Cl)
3. Information Control and Reporting (1C)
4. Administrative Support Services (AS)
5. Pollution Liability Insurance (LI)
6. Work Assignment Closeout (CO)
ONGOING TECHNICAL SUPPORT
Work Area Code: OT
Activity Code: A
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Technical Support Services (TS)
3. Work Assignment Closeout (CO)
CONTRACT CLOSEOUT
Work Area Code: CC
Activity Code: 9
Tasks and 1. Project Planning and Support (PP)
Task 2. Records Management (RM)
Category 3. File Maintenance and Disposition (FM)
Codes 4. Reconciliation of Contract Utilization and Costs (RU)
5. Final Allocation of Costs (FA)
6. Preparation of Final Reports (FN)
7. Work Assignment Closeout (CO)
Fund-Lead Site-Specific Work Areas
REMEDIAL INVESTIGATION/FEASIBILITY STUDY
Work Area Code: Rl Tasks and
Activity Code: L Task
Category
Codes
1. Project Planning and Support (PP) 10.
2. Pollution Liability Insurance (LI) 11.
3. Community Relations (CR) 12.
4. Field Investigation (Fl) 13.
5. Sample Analysis (SN) 14.
6. Analytical Support and Data 15.
Validation (AN) 16.
7. Data Evaluation (DE) 17.
8. Assessment of Risks (RA)
9. Treatability Study/Pilot Testing (TT)
Remedial Investigation Report (RR)
Remedial Alternatives Screening (RS)
Remedial Alternatives Evaluation (RE)
FS Report and RI/FS Report (FS)
Post RI/FS Support (PR)
Negotiation Support (NG)
Administrative Record (AR)
Work Assignment Closeout (CO)
51-033-176
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Exhibit 2-1. RAC SOW Work Breakdown Structure, page 2 of 5
Fund-Lead Site-Specific Work Areas, contd.
REMEDIAL DESIGN
Work Area Code: RD
Activity Code: N
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Pollution Liability insurance (LI)
3. Community Relations (CR)
4. Data Acquisition (DA)
5. Sample Analysis (SN)
6. Analytical Support and Data
Validation (AN)
7. Data Evaluation (DE)
8. Treatability Study/Pilot Testing (TT)
9. Preliminary Design (PD)
10. Equipment/Services/Utilities (ES)
11. Intermediate Design (ID)
12. Pre-Final/Final Design (FD)
13. Post Remedial Design Support (DS)
14. Work Assignment Closeout (CO)
REMEDIAL ACTION
Work Area Code: RA
Activity Code: R
Tasks and
Task
Category
Codes
Project Planning and Support (PP) 8.
Pollution Liability Insurance (LI) 9.
Community Relations (CR)
Development and Update of 10.
Site-Specific Plans (DU) 11.
Procurement of Subcontract (PB)
Management Support (MS) 12.
Detailed Resident Inspection
(Resident Engineer) (Rl)
Cleanup Validation (CV)
Remedial Action Implemen-
tation (Subpool Activities) (Al)
Project Performance (PJ)
Project Completion and
Closeout (PC)
Work Assignment Closeout (CO)
NON-TIME CRITICAL REMOVAL SUPPORT
Work Area Code: NS Tasks and
Activity Code: 8 Task
Category
Codes
1. Project Planning and Support (PP) 8.
2. Community Relations (CR)
3. Site Characterization (SC) g.
4. Sample Analysis Report (SN) 10.
5. Analytical Support and Data
Validation (AN) n.
6. Data Evaluation (DE) 12.
7. Assessment of Risks (RA) 13.
Identification and Screening of
Removal Alternatives (IS)
Analysis of Removal Alternatives (AL)
Engineering Evaluation/Cost
Analysis (EE/CA) (EE)
Post EE/CA Support (PE)
Administrative Record (AR)
Work Assignment Closeout (CO)
NON-TIME CRITICAL REMOVAL ACTION
Work Area Code: NA
Activity Code: E
RI/FS OVERSIGHT
Work Area Code: RS
Activity Code: P
Tasks and 1. Project Planning and Support (PP) 8.
Task 2. Pollution Liability Insurance (LI)
Category 3. Community Relations (CR) 9.
Codes 4. Development and Update of
Site-Specific Plans (DU) 10.
5. Non-Time-Critical Removal
Design Support (ND) 11.
6. Procurement of Subcontract (PB) 12.
7. Management Support (MS) 13.
Enforcement Support Site-Specific Work Areas
Tasks and 1. Project Planning and Support (PP) 8.
Task 2. Community Relations (CR) 9.
Category 3. Field Investigation (Fl) 10.
Codes 4. Sample Analysis (SN) 11.
5. Analytical Support and Data 12.
Validation (AN) 13.
6. Data Evaluation (DE) 14.
7. Assessment of Risks (RA) 15.
Detailed Resident Inspection
(Resident Engineer) (Rl)
Non-Time-Critical Removal
Validation (NV)
Non-Time-Critical Removal Action
Implementation (Subpool Activities) (Nl)
Project Performance (PJ)
Project Completion and Closeout (PC)
Work Assignment Closeout (CO)
Treatability Study/Pilot Testing (TT)
Remedial Investigation Report (RR)
Remedial Alternatives Screening (RS)
Remedial Alternatives Evaluation (RE)
FS Report and RI/FS Report (FS)
Post RI/FS Support (PR)
Administrative Record (AR)
Work Assignment Closeout (CO)
51-033-176(2)
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
NEGOTIATION SUPPORT
Work Area Code: NG
Activity Code: 4
Exhibit 2-1. RAC SOW Work Breakdown Structure, page 3 of 5
Enforcement Support Site-Specific Work Areas, contd.
Tasks and 1. Project Planning and Support (PP)
Task 2. Negotiation Support (NG)
Category 3. Document Review (DR)
Codes 4. Post-ROD Cost Analysis (RC)
5. Work Assignment Closeout (CO)
RD/RA OVERSIGHT
Work Area Code: RO
Activity Code: P
Tasks and 1. Project Planning and Support (PP)
Task 2. Community Relations (CR)
Category 3. Data Acquisition (DA)
Codes 4. Sample Analysis (SN)
5. Analytical Support and Data
Validation (AN)
6. Data Evaluation (DE)
7. Review of PRP RD/RA Submittals (RP)
8. Remedial Action Oversight (RO)
9. Technical Meeting Support (TM)
10. Work Assignment Closeout (CO)
REMOVAL OVERSIGHT
Work Area Code: VO
Activity Code: P
Tasks and 1. Project Planning and Support (PP) 6.
Task 2. Community Relations (CR) 7.
Category 3. Field Investigation (Fl) 8.
Codes 4. Sample Analysis (SN) 9.
5. Analytical Support and Data 10.
Validation (AN) 11.
Data Evaluation (DE)
Review of PRP Removal Submittals (RQ)
Removal Oversight (VO)
Technical Meeting Support (TM)
Administrative Record (AR)
Work Assignment Closeout (CO)
LITIGATION SUPPORT
Work Area Code: LS
Activity Code: 4
Tasks and 1. Project Planning and Support (PP)
Task 2. Document Collection (DC)
Category 3. Expert Witness Support (EW)
Codes 4. Technical Assistance (TA)
5. Work Assignment Closeout (CO)
Other Technical Assistance Site-Specific Work Areas
COMMUNITY RELATIONS
Work Area Code: CR
Activity Code: 4 (enforcement),
8 (removal), or 9 (remedial)
1. Project Planning and Support (PP)
2. Community Relations Plan (CP)
3. Public Meeting/Public Hearing
Support (PM)
4. Fact Sheet Preparation (FP)
5. Proposed Plan Support (PL)
6. Public Notices (PN)
7. Information Repositories (IR)
8. Site Mailing List (ML)
9. Responsiveness Summary Support (SO)
10. Work Assignment Closeout (CO)
SAMPLING AND ANALYTICAL SUPPORT
Work Area Code: AN
Activity Code: 4 (enforcement),
8 (removal), 9 (remedial), or
U (lab analysis)
1. Project Planning and Support (PP)
2. Environmental Sampling (EN)
3. Sample Analysis (SN)
4. Analytical Support (AO)
5. Data Validation (DV)
6. Data Evaluation (DE)
7. Characterization and Disposal
of Field-Generated Waste (CD)
8. Work Assignment Closeout (CO)
51-033-176(3)
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Exhibit 2-1. RAG SOW Work Breakdown Structure, page 4 of 5
Other Technical Assistance Site-Specific Work Areas, contd.
PRE-DESIGN INVESTIGATION
Work Area Code: PI
Activity Code: 9 (remedial)
Tasks and 1. Project Planning and Support (PP)
Task 2. Treatability Study/Pilot Testing (TT)
Category 3. Field Investigation (Fl)
Codes 4. Sample Analysis (SN)
5. Analytical Support and Data Validation (AN)
6. Data Evaluation (DE)
7. Pre-design Engineering Report (ER)
8. Work Assignment Closeout (CO)
TREATABILITY STUDY/PILOT TESTING
Work Area Code: PT
Activity Code: 9 (remedial)
Tasks and 1. Project Planning and Support (PP) 5.
Task 2. Treatability Study/Pilot Testing (TT) 6.
Category 3. Sample Analysis (SN) 7.
Codes 4. Analytical Support and Data
Validation (SN)
Data Analysis and Interpretation (Dl)
Treatability Study/Pilot Test Report (TP)
Work Assignment Closeout (CO)
ASSESSMENT OF RISK
Work Area Code: RK
Activity Code: 4 (enforcement)
or 9 (remedial)
Tasks and 1. Project Planning and Support (PP)
Task 2. Identification of Existing
Category Information (II)
Codes 3. Data Acquisition (DA)
4. Sample Analysis (AN)
5. Analytical Support and Data Validation (AN)
6. Data Evaluation (DE)
7. Assessment of Risk (RA)
8. Work Assignment Closeout (CO)
PRELIMINARY ASSESSMENT FOR SITE ASSESSMENT
Work Area Code: PA
Activity Code: 9 (remedial)
Tasks and 1. Project Planning and Support
Task (non-site-specific) (PQ)
Category 2. Work Assignment Closeout (CO)
Codes 3-n. Site-Specific Activities (SS)
SITE INSPECTION FOR SITE ASSESSMENT
Work Area Code: SI
Activity Code: 9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support
(non-site specific) (PQ)
2. Work Assignment Closeout (CO)
3-n. Site-Specific Activities (SS)
MRS PACKAGE PREPARATION FOR SITE ASSESSMENT
Work Area Code: HR
Activity Code: 9 (remedial)
Tasks and 1. Project Planning and Support
Task (non-site-specific) (PQ)
Category 2. Work Assignment Closeout (CO)
Codes 3-n. Site-Specific Activities (SS)
SITE SECURITY AND MAINTENANCE
Work Area Code: SS
Activity Code:
8 (removal) or 9 (remedial)
Tasks and 1 • Project Planning and Support (PP)
Task 2. Site Maintenance (SM)
Category 3. Site Security/Guard Services (GS)
Codes 4. Work Assignment Closeout (CO)
51-033-176(4)
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Exhibit 2-1. RAC SOW Work Breakdown Structure, page 5 of 5
Other Technical Assistance Site-Specific Work Areas, contd.
DESIGN ASSISTANCE
Work Area Code: DA
Activity Code: 9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Technical Assistance (TA)
3. Work Assignment Closeout (CO)
FIVE-YEAR REVIEW
Work Area Code: FR
Activity Code: 9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP) 5.
2. Document Review (DR) 6.
3. Standards (ARAR) Review (SR) 7.
4. Site Visit/Interviews (SV)
Site Inspection/Technology Review (SI)
Five-Year Review Report (FR)
Work Assignment Closeout (CO)
RECORDS MANAGEMENT AND ADMINISTRATIVE SUPPORT
Work Area Code: RM
Activity Code: 4 (enforcement),
8 (removal), or 9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Site File Organization (SO)
3. Administrative Record (AR)
4. Administrative Support (AS)
5. Work Assignment Closeout (CO)
REAL PROPERTY ACQUISITION SUPPORT
Work Area Code: RP
Activity Code: 4 (enforcement),
8 (removal), or 9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Property Acquisition (PA)
3. Work Assignment Closeout (CO)
TECHNICAL ASSISTANCE
Work Area Code: TA
Activity Code: 4 (enforcement),
8 (removal), or 9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Expert Technical Assistance (ET)
3. Work Assignment Closeout (CO)
INTEGRATED SITE ASSESSMENT/ INVESTIGATION
Work Area Code: SA
Activity Code: 8 (removal) or
9 (remedial)
Tasks and
Task
Category
Codes
1. Project Planning and Support (PP)
2. Initial Site Discovery/Screening Support (SD)
3. Integrated Sampling/Investigation Report (SA)
4. Work Assignment Closeout (CO)
51-033-176(5)
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required to use WBS codes to identify work areas and tasks in project
scoping, scheduling, and technical and cost tracking and reporting. To
facilitate this process, the Region specifies WBS codes in WAs, related
forms, and correspondence. Use of WBS codes enables the Agency to
readily identify costs associated with specific work areas (e.g., RI/FS, RD,
RA) and task categories (e.g., community relations, analytical support,
and data validation), across contracts and across Regions.
2.2.4 Work Assignments
Work is ordered by the Contracting Officer (CO) through issuance of
written WAs. WAs include a numerical designation, estimate of required
labor hours, SOW, period of performance, schedule of deliverables, and
identification of the Work Assignment Manager (WAM). The WA SOW
must cite the applicable work area and tasks in the contract SOW, using
the WBS work area and activity codes so that the contractor can meet the
requirement to track activities and costs according to the WBS. WAs are
written at the SOW work area level and separate WAs are issued for
separate work areas (e.g., RI/FS, RD, and RA). WAs identify specific
SOW tasks applicable to the work area and may specify subtasks.
WAs can be issued as term-form (level of effort [LOE]) or completion-
form. The EPA Regional WAM, Project Officer (PO), and CO mutually
determine which WAs will be issued as completion-form and which WAs
will be issued as term-form, based on an analysis of the government's
requirements. If the government's requirements are met by buying a
contractor's time and effort, a term-form WA is used. If the government's
requirements are met by buying a specific end product, a completion-form
WA is used.
The term-form WA obligates the contractor to devote a specified LOE for
a stated time period. The contractor must provide the specified number of
hours performing SOW tasks on a "best effort" basis during an agreed-
upon time period. The contractor is not obligated to deliver an end pro-
duct, only to deliver quality labor hours toward a defined objective.
For a WA SOW that describes the government's requirements in terms of
services to be performed, a term-form (LOE) WA is issued with a speci-
fied number of labor hours. The contractor submits a work plan (WP) that
describes the technical approach to the work, a detailed cost estimate, and
a delivery schedule. EPA reviews the contractor's WP and negotiates an
estimated WA cost and fee pool with the contractor. The fee pool is
calculated based on the number of direct labor hours expended. The
amount of fee paid is based on a subjective government evaluation of
contractor performance. If the contractor cannot perform the work within
the estimated LOE, the government may choose to add hours to the WA
and additional fee would be associated with those hours.
2-9
WAs are written at the SOW work
area level and separate WAs are
issued for separate work areas.
The term-form (LOE) WA obligates
the contractor to devote a specified
level of effort for a stated time
period toward achieving a defined
objective.
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The completion-form WA obligates
the contractor to deliver a specified
end product and provides incentive
for the contractor to complete the
WA within the estimated cost.
RACs contain a base quantity for
the term-form (WE) segment and
a dollar ceiling for the
completion-form segment.
The completion-form WA specifies an end product. The contractor is
required to complete and deliver a specified end product (such as a
technical report) within the estimated cost of the WA as a condition for fee
payment. If the contractor cannot complete the product within the stated
estimated cost, the government may elect to provide the contractor with
additional funds to complete the work but the fee remains as originally
negotiated and does not change unless the government modifies the WA.
This approach gives the contractor an incentive to complete the WA
within the estimated cost.
Completion-form WAs are negotiated and established using the same
process as term-form WAs. As with term-form WAs, if the contractor
cannot complete the WA within the estimated cost, the government may
provide additional funds for completion; unlike term-form WAs, addi-
tional fee usually is not provided. For either type of WA, if the WA scope
of work changes during the period of performance, the contractor can
claim a "change," which the government may or may not negotiate to
include a change in the fee. Guidance on developing and managing term-
and completion-form WAs is provided in Chapter 5.
RACs contain a base quantity for the term-form (LOE) segment of the
contract and a dollar ceiling for the completion-form segment of the
contract. The Regions determine the distribution of work between the two
segments for their contracts. When the base quantity and/or dollar ceiling
is exhausted, the Region can modify the contract to increase contract
quantities or dollars through exercising contract options. Term-form
contract increases raise the number of hours in the contract. Completion-
form increases raise the completion-form dollar ceiling. Guidance on
exercising contract options is provided in section 4.4.
2.2.5 Program Support
PS activities are non-site-specific activities required to operate and
manage RACs. Costs expended under PS WAs that are allocable to
multiple sites are reallocated to specific sites during the annual site-
allocation process (see section 4.12). The PS component of RACs is
divided into five work areas:
• Mobilization
• Equipment (Non-Site-Specific)
• Ongoing Administrative Support
• Ongoing Technical Support
• Contract Closeout
Each of these work areas and associated task breakdowns are defined in
the RAC SOW The Regions issue separate WAs for these PS work areas.
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Mobilization and contract closeout are one-time activities; the other PS
activities occur throughout the contract. The Mobilization WA and the
initial WA for Non-Site-Specific Equipment are negotiated during con-
tract negotiations and issued upon contract award. Ongoing PS WAs are
negotiated during mobilization. The contract closeout WA is issued after
all site-specific WAs are complete and sufficiently in advance of the end
of the contract period to allow for completion of closeout activities.
The RACs approach to PS provides the Regions with the flexibility to
monitor and control the contractors' PS costs and supports EPA's goals to
break out and minimize program management costs. Chapter 3 provides
guidance on establishing PS WAs during contract mobilization.
2.2.6 Reports of Work
RACs contain standardized reporting and invoicing requirements that
allow data to be compared across contracts and enhance EPA's oversight
capabilities. The contractor is required to (1) report and invoice on the
same calendar period, (2) calculate data elements used in reports and
invoices using the same methods, and (3) submit progress reports within
five days prior to invoice submittal. These requirements ensure that the
government has adequate information for timely review and approval of
invoices.
RAC reports are specified in contract Attachment B, "Reports of Work."
RAC reports fall into six categories:
• progress reports for monitoring work progress
• national reports for updating EPA Headquarters on contract status
• WA work plans
• project reports required in WAs
• cost recovery documentation
• non-Contract Laboratory Program (CLP) analytical services tracking
Chapter 7 provides guidance on using RAC Reports of Work.
2.2.7 Performance (Award) Fee Plan
The Performance (Award) Fee Plan for RACs establishes the procedures
and processes for administering the fee provisions of the contract. The
RAC is a CPAF contract with base and performance (award) fee provi-
sions. Base fee is paid provisionally during the life of a WA. If final WA
performance is rated as "satisfactory" or better, the contractor retains all
of the base fee associated with that WA. If final WA performance is rated
as "unsatisfactory," the contractor must return to the government in the
2-11
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The contractor receives fee
commensurate with performance.
Performance fee is awarded only
for above-satisfactory performance.
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form of a credit the entke base fee associated with the WA. Performance
(award) fee is paid only for completed WAs for which the government
evaluates contractor performance as "exceeds expectations" or "outstand-
ing."
The Performance Evaluation Board (PEB) semiannually evaluates con-
tractor performance on WAs completed during the evaluation period and
active WAs that met contract-specified activity levels during the evalua-
tion period. Government evaluations are unilateral and not subject to
contractor dispute under the contract's DISPUTES clause (see section
4.6). The criteria and rating scale that the Regions use in evaluating
contractor performance are defined in Chapter 6.
The RAC Performance (Award) Fee Plan motivates contractors to exceed
Regional expectations by providing performance (award) fee for better-
than-satisfactory performance and discourages less-than-satisfactory
performance through a total loss of fee.
2,3 Contract-Sensitive Issues
This section describes background information and policy rationales for
contract-sensitive issues in RACs. These issues, critical to the integrity of
RAC management, must be considered throughout contract administra-
tion.
2.3.1 Conflict of Interest
EPA vigilance in avoiding or mitigating potential conflict of interest
(COI) situations under RACs is to the administration of Superfund
remedial contracts. The FAR Subpart 9.5, Environmental Protection
Agency Acquisition Regulation (EPAAR), and the final rule regarding COI
(Acquisition Regulation Concerning Conflicts of Interest Final Rule,
Federal Register, 48 Code of Federal Regulations 18600, April 19, 1994)
contain COI requirements for contracts awarded by EPA. Whereas FAR
and EPAAR requirements pertain primarily to eligibility and precontract
award COI issues, the final rule and several of the RAC COI clauses focus
on COI during contract administration. COI issues are addressed by six
RAC clauses, listed in Exhibit 2-2.
According to FAR 9.5, organizational COI occurs when, "because of other
activities or relationships with other persons, a person is unable or poten-
tially unable to render impartial assistance or advice to the government, or
the person's objectivity in performing the contract work is or might be
otherwise impaired, or a person has an unfair competitive advantage."
Personal COI is defined in EPAAR 1552.209-73 as "a relationship of an
employee, subcontractor employee, or consultant with an entity that may
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The WORK ASSIGNMENT COI CERTIFICATION clause in Section B requires the
contractor to provide a CO! certification disclosing any actual or potential COI related
to the WA within 20 days of receiving a WA.
The ORGANIZATIONAL COI clause in Section H requires that the contractor
immediately disclose to the CO all actual or potential organizational COI identified
during contract performance.
The NOTIFICATION OF COI REGARDING PERSONNEL clause in Section H
requires the contractor to disclose any personal COI of its employees working on
or having access to information on this contract.
The PROJECT EMPLOYEE CONFIDENTIALITY AGREEMENT clause in Section
H requires the contractor to obtain confidentiality agreements from employees
working under this contract.
The UPDATE OF COI PLAN clause in Section H requires the contractor to provide
EPA annual updates of any changes to its COI plans.
The LIMITATION OF FUTURE CONTRACTING clause in Section H identifies work
that poses a high risk of COI and requires contractors to request approval from
EPA prior to entering into a contract with or representing any party other than EPA
with respect to such work. The clause covers the life of the WA and a period of five
years after WA completion.
51-033-177
impair the objectivity of the employee, subcontractor employee, or
consultant in performing the contract work."
COI situations may occur under RACs because:
• the RAC contractor may have worked for a potentially responsible
party (PRP) identified at a Superfund site and the contractor/PRP
relationship may affect the objectivity of work to be performed by the
contractor at that site
• it can be difficult to identify work at the pre-award stage that poses a
COI issue because of shifting clean-up priorities, multiple sites, and
ongoing identification of PRPs
• the limited number of RAC contractors in each Region increases the
likelihood of a COI situation
As a result of EPA's cleanup and enforcement responsibilities and the
strong possibility that its contractors may have worked for the PRPs liable
for cleanup costs, EPA must monitor carefully potential or actual COI
situations to ensure that the integrity of clean-up decisions is not jeopar-
dized and cost recovery is not prejudiced.
During the life of a RAC, EPA and its contractors must identify and avoid
COIs. Before a Region assigns work under a RAC, the Region should
request that the RAC contractor perform a preliminary COI screen under
the Ongoing Administrative Support PS WA. Once a WA is issued, the
RAC contractor must certify, within 20 days of WA issuance, that no
actual or potential organizational COI exists that conflicts with the WA.
The COI certification includes a statement that the contractor acknowl-
edges its continuing obligation to identify and report any conflicts arising
2-13
Exhibit 2-2. RAC Conflict of
Interest Clauses
EPA must monitor potential and
actual COI situations to ensure
integrity of clean-up decisions and
cost recovery.
The RAC contractor must certify,
within 20 days ofWA issuance, that
no actual or potential
organizational COI exists.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
The contractor has a continuing
obligation to disclose COI
throughout contract performance.
Limitation of future contracting
helps protect the integrity of
Superfund enforcement actions.
during WA performance. The RAC requires that the contractor make a full
COI disclosure if an actual or potential organizational COI is identified
during WA performance. The contractor also must disclose any personal
COI for its employees working on or having access to the information on
the contract and must have its employees sign confidentiality agreements.
If a COI exists that cannot be avoided, neutralized, or mitigated, the CO
decides how to address COI (see section 4.8 for guidance on addressing
COI).
In addition to identifying and handling COI issues during contract perfor-
mance, EPA monitors postcontract contractor activities that could create a
COI under the limitation of future contracting (LOFC) clause (section H
of RAC). The LOFC clause protects the government's interests because it
requires contractors to request approval from EPA before entering into a
contract with a third party to perform work that poses a high risk of COI
any time during WA performance and for five years after WA completion.
COI most often arises in the context of adversarial enforcement proceed-
ings, which usually do not occur simultaneously with contract perfor-
mance. Conflicts and information leaks jeopardize cases at the litigation
stage and weaken the government's ability to obtain PRP commitment to
clean up sites and to recover costs from PRPs. Before the LOFC clause, a
contractor that worked for EPA could later work for a PRP on the same
site and thereby jeopardize Superfund enforcement actions. EPA now can
prevent the contractor from doing so. A contractor's COI can impede
Superfund litigation (either cost-recovery litigation under section 107 of
CERCLA, or litigation for injunctive relief under section 106) in several ways:
• by creating a conduit that may allow confidential government informa-
tion, including potential litigation and negotiation strategies, to be
leaked to the parties with opposing interests in the litigation
• by damaging the credibility of EPA witnesses and/or the work they
perform on behalf of EPA
• by causing the work performed by that contractor to be redone, raising
potential issues in cost-recovery litigation as to whether the cost of the
extra work is recoverable
2.3.2 Indemnification
Indemnification occurs when one party covers or insures a second party
against losses suffered by the second party. CERCLA 119(c) provides the
government with discretionary authority to indemnify response action
contractors for damages from a release of hazardous substances when the
contractors are negligent. .
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However, in accordance with EPA's Final Indemnification Guidelines,
released February 23, 1993, EPA does not routinely provide 119(c)
indemnification for RAC contractor negligence in performing response
action activities resulting in a release of hazardous substances. The
majority of new RACs will be awarded without a clause allowing 119(c)
indemnification. If the lack of indemnification creates insufficient compe-
tition, EPA can provide limited 119(c) indemnification. Before that
indemnification is offered, the contractor first must make a "diligent
effort" to locate pollution liability insurance (PLI). EPA approves or
disapproves a PLI purchase based on an evaluation of its reasonableness,
including cost. Only after the availability of PLI and its reasonableness
has been evaluated will the government consent to 119(c) indemnifica-
tion. See section 2.3.3 for a description of how to evaluate PLI.
For RACs without section 119(c) indemnification, the contractor may
carry PLI. Also, the CO may ask a contractor to seek PLI at any time.
The CO examines insurance policies negotiated at the time of contract
award to determine that they are fair and reasonable. During contract
performance, when a contractor submits additional insurance quotations
to cover a subcontractor that cannot be added to the prime contractor's
policy, or wants to purchase additional insurance for a particularly risky
task, the CO consents to the purchase of such policies if they are fair and
reasonable (consulting with EPA staff knowledgeable on insurance issues
if necessary). PLI is a reimbursable expense.
EPA's Final Indemnification Guidelines, 58 Federal Register 5972
February 23, 1993, outline EPA's indemnification policy.
Subcontractor Indemnification
Three groups of subcontractors are discussed in the Final Indemnification
Guidelines.
• Team subcontractors are "permanent" members of the contracting
team that often perform services identical to the prime contractor.
• Specialty subcontractors are well drillers and other subcontractors that
are brought under contract when a specific task is identified.
• RA subcontractors are construction firms that implement the RD and
actually treat or contain the hazardous waste at the site.
RAC subpool subcontractors fall under the specialty subcontractor and
RA subcontractor categories as defined in the Final Indemnification
Guidelines.
Subcontractors obtain Federal indemnification only if a prime contractor
includes indemnification language in the subcontract (flow-down indem-
nification). If the RAC does not contain an indemnification clause, no
2-15
EPA does not routinely provide
119(c) indemnification for RAC
contractor negligence in the
performance of response action
activities.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
The RAC contractor may have
corporate-wide PLI or may
purchase PLI for the RAC or a
specific RAC project.
mechanism exists for the prime to flow down Federal indemnification to a
subcontractor. Some contractors may add the purchase of PLI as a
requirement in their subcontract language.
Indemnification of Contractors Using Innovative Technologies
Contractors who use innovative technologies may be prime contractors,
specialty subcontractors, or RA subcontractors. EPA may provide 119(c)
indemnification to contractors using innovative technologies if the
contractor makes a diligent but unsuccessful effort to locate PLI. Such
indemnification does not affect the amount of indemnification available to
RAC prime contractors under other provisions of the Final Indemnifica-
tion Guidelines.
Exhibit 2-3 lists technologies EPA considers to be innovative. Response
action contractors offering such services may merit special indemnifica-
tion limits and deductibles. EPA recognizes that certain applications
within broad technology categories may be innovative, even though the
category generally is not innovative. Those technologies will be treated as
innovative for purposes of the Final Indemnification Guidelines.
Indemnification Claims
If 119(c) indemnification is provided, both the indemnification clause and
claim submittal requirements appear in Section H of the contract. In
general, claims submitted by a contractor are forwarded to the assistant
administrator for the Office of General Counsel (OGC) for review and
approval of coverage. OGC examines the nature of the claim and deter-
mines if the government will indemnify the loss, whether insurance
policies offset the coverage, and the appropriate invoicing of costs con-
nected with the claim.
2.3.3 Pollution Liability Insurance
Under RACs, the government does not routinely offer 119(c) indemnifica-
tion for liability from contractor negligence in pollution release. Contrac-
tors purchase commercial PLI to provide liability coverage. Depending on
its needs, a RAC contractor may purchase one or a combination of the
following:
• a corporate-wide PLI policy covering all its work, in which case PLI
would be an indirect cost for the RAC. These PLI costs are negotiated
and approved as part of the contract award process.
• PLI covering all work performed under the RAC, in which case PLI
would be a direct charge under the Ongoing Administrative Support PS
WA. These PLI costs are negotiated during mobilization.
• PLI for a specific job, in which case the cost is a direct, WA-specific
cost negotiated at the beginning of the WA.
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Innovative Technologies Defined in EPA's Final
Indemnification Guidelines (February 23,1993)
• Thermal Destruction
Pyrolysis
In situ vitrification (organics)
Land ex situ
• Thermal Extraction
Thermal desorption
In situ; thermal treatment (e.g., steam and hot-air stripping, radio-frequency heating)
Slagging
• Bioremediation
Solid-phase bioremediation
Slurry-phase bioremediation
Soil heaping
Composting
In situ bioremediation of soil including bioventing
In situ slurry-phase bioremediation
• Chemical Treatment
Chemical dehalogenation
Chemical oxidation
Chemical reduction
• Chemical Extraction
Solvent extraction
Acid extraction
• Soil Washing
In situ soil flushing
• Soil Vapor Extraction
• In situ Ground Water and Non-Aqueous Phase Liquid Technologies to Treat
or Enhance the Recovery of Contaminants
• Immobilization
In situ and ex situ vitrification (inorganics)
Slagging
Non-innovative technologies include ex situ aqueous treatment, incineration,
solidification/stabilization and pH neutralization. Certain technologies within this group,
however, may be innovative.
51-033-178
For PLI obtained after RAC award, the contractor must submit to the CO
a request for approval of PLI. The contractor submits the following
information to the CO for review:
• letters from three PLI vendors indicating results of the search for
pollution insurance, or
• any written quotations for PLI
Quotations should include the following information:
• name of insurer
• type of policy
2-17
Exhibit 2-3. Innovative
Technologies
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
• policy period
• premium
• projected annual receipts that form the basis of the policy quotation
• retroactive date
• limits
• deductibles
• major exclusions
• services covered
• expiration date of contract
The CO reviews all PLI policies, including renewals and adjustments, for
reasonableness before approval. If the contractor makes adjustments
without approval, any additional costs become the responsibility of the
contractor. The CO determines the reasonableness and responsiveness of
any insurance policy quotation in light of site-specific and contract-
specific factors. As the Final Indemnification Guidelines state, the CO
will "consider what a prudent business person in the private sector would
purchase" after weighing the following criteria and other relevant factors:
• insurance rate applied to each $100 of receipts
• deductible or self-retention rate associated with the policy
• projected work load and nature of the risk associated with the work to
be covered by the policy
• amount and type of pollution liability coverage and limit provided by
the policy
• exclusions and limitations of the policy
• effective date of the policy
• period of coverage
• amount of coverage, if any, extended to subcontractors
• receipts used in determining the insurance rate
• other-risk sharing mechanisms available
The same procedure is followed for WA-specific PLI, except that the
subcontractor rather than the prime contractor may obtain PLI. The CO
approves these PLI costs as part of the subcontract consent process
(section 4.7).
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2.3.4 Inherently Governmental Functions
Inherently governmental functions (IGFs) are functions so intimately
related to the public interest that they mandate performance by govern-
ment employees only (Office of Management and Budget [OMB] Circular
A-76). Thus, IGFs are prohibited contractor activities. IGFs include
activities that require either exercising discretion in applying government
authority or making value judgments when making decisions for the
government (OMB Office of Federal Procurement Policy [OFPP], Policy
Letter 92-1). Additional guidance on IGFs can be found in EPA Order
1900.2, Contracting at EPA. In cases of conflict between Policy Letter 92-1
and EPA Order 1900.2, EPA adopts the more restrictive interpretation.
Before issuing a request for proposal, the Headquarters placement CO
determined that the RAC SOW does not involve IGFs. For postaward
tasking documents (WAs and technical direction memoranda [TDM]), the
administrative CO in the Region decides whether a proposed requirement
is an IGF. The CO also reviews each WA SOW to ensure that no IGFs are
included. The CO's signature on the contract, contract modification, WA,
delivery order (DO), or TDM constitutes the CO's written determination
that the work requirements do not include work constituting an IGF. The
CO makes the final decision regarding whether a proposed requirement is
an IGF, requesting clarification from the WAM and PO as necessary.
Throughout performance, the WAM, PO, and CO oversee WA administra-
tion to ensure that the work being contracted does not include the perfor-
mance of IGFs. If the WAM or PO becomes aware that the RAC contrac-
tor is performing an IGF, he or she notifies the CO immediately.
Exhibit 2-4 provides a list of IGFs, compiled from OFPP Policy Letter
92-1, EPA Order 1900.2, and the Contracts Management Manual. Deter-
mining whether a function is an IGF involves overall consideration of the
circumstances and several specific factors, with no single factor being
determinative (OFPP Policy Letter 92-1). One key factor in determining
an IGF is the degree to which Agency discretion is, or would be, limited.
If the contractor's involvement is so integral and extensive that EPA's
ability to develop and consider options other than those provided by the
contractor is restricted, then the contractor may be performing an IGF.
COs should use Policy Letter 92-1 guidelines to determine if proposed
contractor functions that are not listed in Exhibit 2-4 are IGFs.
2.3.5 Sensitive Contracting Areas
The OMB, OFPP, and EPA have defined certain activities which, when
performed by EPA contractors, place EPA in a vulnerable or sensitive
position if adequate management controls are not implemented. These
sensitive contracting areas do not require justification and approval but
must be discussed and monitored by the CO. For RACs, the Headquarters
2-19
Inherently governmental Junctions
are junctions so intimately related
to the public interest that they must
be performed by government
employees.
A key factor in determining an IGF
is the degree to which Agency
discretion is limited.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 2-4. List of Inherently
Governmental Functions
1) Preparation of Congressional testimony.
2) Interviewing or hiring individuals for employment at EPA.
3) Developing and/or writing position descriptions and performance standards.
4) Determination of Agency policy.
5) Participating as a voting member on a PEB; participating in and/or attending
award fee meetings.
6) Preparing award fee letters, even under typing services contracts.
7) Preparing award fee plans.
8) The preparation of documents on EPA letterhead other than routine administrative
correspondence.
9) Reviewing vouchers and invoices for the purposes of determining whether costs,
hours, and work performed are reasonable.
10) Preparing SOWs, WAs, technical direction (TD) documents, DOs, or any other
work issuance document under a contract that the contractor is performing or
may perform.
11) Preparing responses to audit reports from the Inspector General, General
Accounting Office, or other auditing entities on behalf of EPA.
12) Preparing responses to Congressional correspondence on behalf of EPA.
13) Preparing responses to Freedom of Information Act requests, other than routine,
nonjudgmental correspondence; EPA must sign correspondence in all cases.
14) Any contract which authorizes a contractor to represent itself as EPA to outside
parties.
15) Conducting administrative hearings.
16) Reviewing findings concerning the eligibility of EPA employees for security
clearances.
17) Preparing an office's official budget request.
18) Direct conduct of criminal investigations.
19) Determining what government property is to be disposed of and on what terms.
20) Contractors participating as technical advisors to a source selection board or
participating as voting or nonvoting members of a source evaluation board.
51-033-179
placement CO verified that adequate management controls were planned
at the contract level. Before approving individual WAs, Regional adminis-
trative COs verify that the WA requires adequate management controls for
any activities involving sensitive contracting areas (see section 4.10 for
guidance on implementing control measures for sensitive contracting
areas). Exhibit 2-5 lists sensitive contracting areas as defined in OFPP
Policy Letter 92-1 EPA Order 1900.2, and the Contracts Management
Manual. The four sensitive contracting areas most likely to be encoun-
tered under RACs are:
• support services such as analyses, feasibility studies, etc., to be used by
EPA personnel in developing policy
• any support involving EPA policy or regulatory interpretation, such as
staffing hotlines, attending conferences, community relations efforts,
conducting EPA training courses, etc.
• contractors working in any situation that permits or might permit them
to gain access to confidential business information (CBI) or any other
sensitive information
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1) Support services such as analyses, feasibility studies, etc., to be used by EPA
personnel in developing policy.
2) Any support involving EPA policy or regulatory interpretation, such as staffing
hotlines, attending conferences, community relations efforts, conducting EPA
training courses, etc.
3) Contractors working in any situation that permits or might permit them to gain
access to CBI and/or any other sensitive information.
4) Contractors participating in any situation where it might be assumed that they
are agency employees or representatives.
5) Budget preparation support including, but not limited to, workload modeling, fact-
finding, efficiency studies, and cost analyses.
6) Reorganization and planning support.
7) Regulation development support.
8) Any support in the in-house evaluation of another contractor's performance,
9) Involvement in acquisition planning.
10) Support on improving contract management (such as where the contractor might
influence official evaluations of other contractors).
11) Providing specialized expertise in the contractor selection process.
12) Providing specialized expertise in the development of SOWs, WAs, and other
contract-ordered tasks.
13) Independently providing technical guidance concerning EPA policies or regulations
14) Contractors providing technical evaluation of contract proposals.
15) Contractors providing support in preparing responses to Freedom of Information
Act requests.
16) Contractors serving as arbitrators or providing alternative methods of dispute
resolution.
17) Contractors providing legal advice and interpretations of regulations and statutes
to government officials.
51-033-180
contractors participating in any situation where it might be assumed
that they are agency employees or representatives
2.3.6 Personal Services
A service contract directly engages the time and effort of a contractor for
the primary purpose of performing an identifiable task rather than furnish-
ing a product (FAR 37.101). A personal service contract is characterized
by the employer-employee relationship it creates between the government
and the contractor's personnel. Personal service constracts are allowed
only if authorized by Congress.
An employer-employee relationship under a service contract occurs when,
as a result of the contract's terms or the manner of its administration,
contractor personnel are subject to the relatively continuous supervision
and control of a government employee. Although each contract arrange-
ment is judged based on its own circumstances, the key in determining
2-21
Exhibit 2*5. List of Sensitive
Contracting Areas
A contract must not, by its terms
or as performed, appear to
create an employer-employee
relationship.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
RAC PS costs are tracked
separately and segregated into
administrative and technical
support costs.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
whether personal services are being performed is whether the government
is exercising relatively continuous supervision and control over the
contractor personnel performing the contract (FAR 37.104, Personal
Services Contracts). The contract must not, by its terms or as performed,
create what is tantamount to an employer-employee relationship.
RACs are not personal service contracts. To guard against the appearance of
personal services under RACs, the CO must ensure that the WAs contain
clearly defined specifications (scope of work) and that any additional direc-
tion is provided formally through technical direction as designated in the
contract (see section 5.10). A WAM's success or failure in obtaining the
government's needs in a timely, cost-effective manner, and receiving a quality
product, is directly related to the clarity, precision, and strength of the lan-
guage used in the WA's specifications. If the WA is vague or ambiguous or
contains ill-defined specifications, the WAM may be tempted to intervene,
redefine, or provide informal direction to the contractor's employees, creating
an actual or perceived personal services condition. Informal direction may
not be given by the government to the contractor; formal technical direction
must be used. At no time shall EPA direct the activities of specific employees
of RAC contractors or subcontractors.
2.3.7 Program Support
PS is a contract-sensitive area because much of the public scrutiny of the
remedial component of the Superfund program has focused on program
management costs. EPA now mandates that program management costs
be tracked separately and segregated into administrative and technical
support costs. Congress also has established national targets for the ratio
of program management expenditures to total contract expenditures.
Under RACs, PS (program management) costs are divided into five
discrete categories for tracking and cost accounting. Separate WAs are
issued for each PS category. This enables EPA to track the ratio of
program management expenditures to total contract expenditures for
remedial contracts and to itemize PS costs by category.
PS costs for mobilization (including non-site-specific equipment) are
negotiated during contract negotiations. PS WAs are issued in five
categories:
• Mobilization
• Equipment (Non-Site-Specific)
• Ongoing Administrative Support
• Ongoing Technical Support
• Contract Closeout
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2,3.8 Patents
The government uses patents to grant or convey to an inventor the exclusive
right to make, use, and sell an invention for 17 years. RACs contain two
clauses related to patents; both are contained in Section I of the contract.
FAR 52.227-1, AUTHORIZATION and CONSENT, allows RAC
contractors to infringe patents while performing contract duties
without fear of being sued for unauthorized use of a patent.
FAR 52.227-2, NOTICE and ASSISTANCE REGARDING PATENT
and COPYRIGHT INFRINGEMENT, requires that the contractor
report to EPA each notice or claim of patent or copyright infringe-
ment based on the performance of the RAC of which the contractor
is aware.
FAR 52.227-1 allows RAC contractors to infringe patents while perform-
ing contract duties without fear of being sued by the patent holder for
unauthorized use of a patent. When the government provides authoriza-
tion and consent, it authorizes the contractor to use a patent to which the
government has no rights. The government honors rights in patents and
complies with the law in using or acquiring such rights and will pay
reasonable compensation if it or its contractors with authorization or
consent infringe a patent. The government grants authorization and
consent to contractors to further the progress of work in the most effective
manner without the need to create new technology. The clause gives RAC
contractors authorization and consent to use all patents necessary to
perform the specified work or to follow technical direction from the CO.
This clause flows down to subcontractors. When proposing use of a
patented technology, the contractor must disclose possible infringement
costs in its cost proposal.
Under 28 United States Code 1498(a), when such authorization and
consent has been granted, the patent holder can sue only the government
in Claims Court; the patent holder is barred from suing the contractor for
damages or obtaining an injunction against the contractor to block patent
use. Under the same law, the government must provide reasonable com-
pensation to the patent holder for its use by government contractors with
authorization and consent or the government itself.
FAR 52.227-2 requires the RAC contractor to report to the CO, promptly
and in reasonable written detail, any known notice or claim of patent or
copyright infringement based on the performance of the RAC of which
the contractor is aware. This requirement includes providing the govern-
ment, when requested by the CO, with all evidence and information in
possession of the contractor pertaining to any suit or claim against the
government regarding patent or copyright infringement arising out of the
2-23
Under RACs, the government
authorizes and consents to the use
of all patents necessary to do the
specified work.
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EPA has agreements with certain
patent holders of technologies
used in remedial actions.
Environmental justice initiatives
have been created to meet the
growing concern that minority
or low income populations bear
disproportionately high and
adverse health and environmental
effects from pollution.
performance of the RAC or out of work or services performed under the
RAC. Such evidence is furnished at the expense of the government except
where the contractor has agreed to indemnify the government.
EPA has negotiated settlement agreements with some patent holders of
technologies used in RAs. For example, EPA pays the company that holds
the patent for vacuum extraction a patent fee each time its technology is
utilized on an EPA site. The WAM, PO, and CO should be aware of any
settlement agreements with patent holders.
2.3.9 Environmental Justice
There is a growing concern that minority populations or low-income
populations bear disproportionately high and adverse human health and
environmental effects from pollution. This concern has led the federal
government to take action to ensure environmental justice for all popula-
tions. For example, Executive Order 12898 on Environmental Justice,
signed hi February 1994, calls on all Federal agencies to develop then-
own environmental justice strategies and to make environmental justice a
part of their mission. The Executive Order directs that agency strategies
address the following areas:
• enforcement of statutes in areas with minority populations and low-
income populations
• greater public participation in the environmental arena
• improvement of research efforts
• identification and analysis of differential patterns of subsistence of
natural resources (e.g., patterns of fishing in polluted waters or eating
plants harvested from polluted areas)
The Executive Order also required EPA to convene and chair an inter-
agency task force on environmental justice. The interagency task force has
addressed and will continue to address environmental justice issues across
the Federal government.
Under the authority of the Federal Advisory Committee Act, the EPA
Administrator established the National Environmental Justice Advisory
Council (NEJAC), comprised of environmental justice stakeholders, to
advise, consult, and make recommendations to the Administrator on
matters relating to environmental justice.
In addition to NEJAC, EPA convened an Office of Solid Waste and
Emergency Response (OSWER) Environmental Justice Task Force, which
produced a report on April 25,1994, with recommendations focusing on
six key areas:
• empowering communities, improving OSWER programs' communica-
tions with these communities, and establishing community trust of
EPA
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• incorporating environmental justice concerns into all OSWER deci-
sion-making, and eliminating any potential for discrimination
• increasing the priority of environmental justice issues on a national and
regional basis and in relationships with States
• incorporating environmental justice issues into OSWER risk assess-
ment and risk management processes by considering multiple/cumula-
tive risks
• integrating consideration of economic redevelopment and job creation
with environmental justice
• developing employees and new job candidates who are well-trained
and sensitive to environmental justice issues
The same report recommended that:
• the Regions should establish community advisory groups for at least 10
sites with environmental justice concerns by the end of fiscal year (FY)
95 (community involvement/outreach)
• the Office of Emergency and Remedial Response (OERR) should
work with the Regions to pilot proactive site-assessment efforts in
areas of environmental justice concerns (site assessment)
• OSWER should work with other EPA programs and health agencies, to
examine current risk-assessment approaches (risk assessment)
• OERR, in cooperation with the Regions, should evaluate the remedy
selection process and cleanup speed to determine the effects on areas
with minority populations and low-income populations so that Regions
may identify potential environmental justice areas of concern earlier
(risk management)
As an environmental justice measure for RACs, EPA encourages contrac-
tors to hire workers in labor surplus areas (LSAs) and encourages contrac-
tor Mentor-Protege program participation (see sections 2.3.10 and 4.11).
Following the release of the OSWER Task Force report, EPA issued
OSWER Directive 9200.3-17, Integration of Environmental Justice into
OSWER Policy, Guidance, and Regulatory Development. The directive
issued guidelines to incorporate environmental justice as an integral part
in the development of all OSWER policies, guidances, and regulations.
2.3.10 Small and Small Disadvantage Business Utilization, Mentor-Protege
Program, and Labor Surplus Areas
FAR 19.201 (a) states that the government's policy is to place a fair propor-
tion of its acquisitions, including contracts and subcontracts for sub-
systems, assemblies, components, and related services for major systems,
with small business concerns and small disadvantaged business (SDB)
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
In RACs, preferential procurement
contracting goals are met through
the prime contractor's
subcontracting plan.
RAC prime contractors are
encouraged to subcontract with
small businesses, SDBs, rural area
and women-owned small
businesses, historically black
colleges and universities, and
businesses in LSAs.
concerns. Such concerns shall also have the maximum practicable oppor-
tunity to participate as subcontractors in the contracts awarded by any
executive agency, consistent with efficient contract performance. The
Small Business Administration (SBA) counsels and assists small business
concerns and assists contracting personnel to ensure that a fair proportion
of contracts for supplies and services is placed with small business.
In compliance with the government's policy, RACs contain clauses for
EPA's three preferential procurement programs: SDBU program, Mentor-
Protege program, and the LSAs program. Although certain RAC clauses
directly concern these programs, most of the programs' preferential
procurement contracting goals will be implemented in RACs through
subcontracting, specifically through the prime contractor's subcontracting
plan. Each RAC prime contractor submits a subcontracting plan as part of
its proposal. For guidance, the prime contractor uses EPA-established
goals (when applicable) and other RAC preferential procurement clauses.
For example, EPA FY94 subcontracting goals for all direct procurements
exceeding $500,000 were as follows:
• 30% of total subcontracting dollars to small businesses
• 15% of total subcontracting dollars to SDBs
• 5% of total subcontracting dollars to women-owned small businesses
The subcontracting goals are additive, not cumulative. In other words, the
30% is not inclusive of the 15% and 5% goals. The Federal Acquisition
Streamlining Act of 1994 facilitates SDBU further by allowing subcon-
tracting with small businesses and SDBs that submit proposals that are
10% higher in cost than other bidders.
Small and Small Disadvantage Business Utilization
EPA's SDBU program is divided into eight major components:
• socially and economically disadvantaged businesses (also referred to as
8[a])
• small business set-asides
• minority businesses (non-8[a])
• LSA set-asides
• women-owned business concerns
• subcontracting
• rural area small businesses
• historically black colleges and universities
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EPA's SDBU is in accordance with the Small Business Act; Execu-
tive Orders 11625,12432,12138, and 12426; FAR 48 Code of
Federal Regulations, Parts 19 and 20; EPAAR, EPA Part 1519.2; and
Public Laws 95-507,100-656,101-507 and 101-549.
The Small Business Act provides the authority for the SBA and agencies
to consult and cooperate with each other in formulating policies to ensure
that small and SDB interests are recognized and protected.
Mentor-Protege Program
The Mentor-Protege program was designed to promote subcontracting
opportunities for established and developing SDBs and to provide incen-
tives for large businesses (Mentors) to seek and foster subcontracting
opportunities with SDBs (Proteges). The program's goal is to transfer
technologies and processes to small and SDBs that they otherwise would
not have acquired with their limited resources. These small businesses
then can compete for commercial and EPA subcontracts they previously
would not have been qualified to perform. This program also increases the
prime contractor's ability to meet its subcontracting plan goals. EPA
encourages RAC prime contractors to participate in the Mentor-Protege
program to demonstrate a commitment to achieve the contractor's subcon-
tracting plan goals and to help EPA achieve its goal of greater SDB
participation in EPA contracting.
RAC Attachment K, "Mentor-Protege Program," describes proce-
dures for program participation.
RAC Attachment K outlines Mentor-Protege program participation
procedures. The major incentives for mentor participation in the program
are credit received against subcontracting plan goals and a favorable
evaluation by the PEB as part of the performance (award) fee evaluation
process (see Chapter 6).
Labor Surplus Areas
FAR 52.220-3 (b) states that the government's policy is to award contracts
to concerns that agree to perform substantially in LSAs when this can be
done consistently with the efficient performance of the contract and at
prices no higher than obtainable elsewhere. The contractor agrees to use
its best effort to place subcontracts in accordance with this policy.
The Mentor-Protege program
transfers technologies and
processes to SDBs that they
otherwise would be unable to
acquire, enabling them to compete
for a broader range of
subcontracts.
RAC prime contractor
participation in the Mentor-
Protege program is credited
against subcontracting plan goals
and considered in performance
{award) fee evaluations.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
The RAC prime contractor is
encouraged to subcontract with
companies in areas of concentrated
unemployment or
underemployment.
The contractor's subcontracting
plan must promote the use of
preferential procurement groups.
RAC clause in Section I, LABOR SURPLUS AREA SUBCON-
TRACTING PROGRAM (FAR 52.220-4), requires the contractor to
appoint a liaison officer to 1) maintain liaison with authorized
representatives of the government on LSA matters; 2) supervise
compliance with the Utilization of LSA Concerns clause (FAR
52.220-3); and 3) administer the contractor's LSA subcontracting
program.
The LSA program encourages the employment of businesses and persons
who reside in LSAs through the award of contracts and subcontracts. The
government's goal is to reduce unemployment in a concentrated area by
increasing a contractor's need to hire people. LSAs are defined as discrete
civil jurisdictions (counties, county equivalents, and cities with popula-
tions of at least 25,000) that had an average unemployment rate that is at
least 120% of the national average unemployment rate during the preced-
ing 24 months. EPA encourages concerns located in LSAs to participate in
EPA contracting activities, uses its best efforts to award contracts in
LSAs, encourages prime contractors to award subcontracts to concerns
performing a substantial portion of the contract work in LSAs, and
establishes annual LSA goals.
Although RACs do not require LSA set-asides, RAC contractors must
develop an LSA subcontracting plan that specifies how it will use its best
efforts to subcontract with LSA concerns when such subcontracting is
consistent with the efficient performance of the contract and at prices no
higher than obtainable elsewhere. The prime contractor appoints a liaison
officer to administer the contractor's LSA subcontracting program and the
prime contractor must use its best efforts to award contracts to firms
agreeing to perform substantially in LSAs.
Subcontracting Plan
To encourage participation in the preferential procurement programs
described in this section, RACs require that all prime contractors establish
a subcontracting plan that addresses goals for: small and SDB concern
utilization, the Mentor-Protege program, and LSAs. The purpose of the
subcontracting plan is to promote the use of preferential procurement
groups. The prime contractor must comply with its subcontracting plan
and RAC preferential procurement clauses.
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RAC clause in Section G, SUBCONTRACTING REPORTS, re-
quires the contractor to submit subcontracting reports.
RAC clause in Section I, SMALL BUSINESS and SMALL DISAD-
VANTAGED BUSINESS SUBCONTRACTING PLAN (FAR
52.219-9), requires the contractor to develop a subcontracting plan
addressing small business and SDB concerns.
RAC clause in Section I, LIQUIDATED DAMAGES-SMALL
BUSINESS SUBCONTRACTING PLAN (FA/? 52.219-16) allows
the government to collect liquidated damages if the contractor fails
to make a good-faith effort to comply with its subcontracting plan.
The CO monitors contractor compliance with the subcontracting plan and
compliance with the other preferential procurement clauses through the
following mechanisms:
• contractor subcontracting reports
• evaluation of subcontracting plan compliance by the PEB to determine
contractor performance (award) fee
• liquidated damages for lack of a good-faith effort when subcontracting
plan goals are not achieved
Subcontracting Reports—The contractor submits a report to the CO and
the Office of Small and Disadvantaged Business Utilization (OSDBU) for
subcontracting under RACs and a summary report on subcontracts in
other contracts between that contractor and EPA that contain subcontract
goals for awards to small businesses and SDB concerns. If a RAC prime
contractor is a mentor, it must report to the CO and OSDBU semiannually
on its Mentor-Protege progress; the CO reviews the Mentor-Protege
reports as part of his or her responsibility to monitor contractor compli-
ance with the subcontracting plan.
Performance (Award) Fee Evaluation Process—The PEB considers the
prime contractor's compliance with the subcontracting plan during the
semiannual performance (Award) fee process. Specifically, RAC Attach-
ment G, "Performance (Award) Fee Plan," lists small and SDB utilization
criteria for both PS activities and site-specific WA activities. The criteria
include the extent the contractor satisfied its small business and SDB
subcontracting goals and the extent of contractor participation in the
Mentor-Protege program (see Chapter 6).
Liquidated Damages Clause—If, at the completion of a contract, the CO
finds that the contractor failed to make a good-faith effort to comply with
the subcontracting plan, the CO may require the contractor to pay the
government liquidated damages. Failure to make a good-faith effort to
comply with the subcontracting plan means a willful or intentional failure
2-29
EPA ensures prime contractor
compliance with its subcontracting
plan through subcontracting
reports, considering prime
contractor compliance in the
performance (award) fee
evaluation process, and a
liquidated damages clause.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Contractors must develop and
submit a site-specific HASP for
each WA.
to perform in accordance with the requirements of the subcontracting plan
or willful or intentional action to frustrate the plan. Liquidated damages
under RACs would be an amount equal to the actual dollar amount by
which the contractor failed to achieve each subcontract goal. Before the
CO makes a final decision that the contractor failed to make a good faith
effort, the CO gives the contractor written notice specifying the failure
and permitting the contractor to demonstrate what good faith efforts have
been made. Failure to respond to the notice may be taken as an admission
that no valid explanation exists.
2.3.11 Health and Safety
SARA Title I, Section 126, and the Occupational Safety and Health
Administration's standard for Hazardous Waste Operations and Emer-
gency Response (HAZWOPER) establish worker protection standards for
workers engaged in hazardous waste operations.
RAC clause in Section H, HEALTH and SAFETY, requires the
contractor to satisfy all Federal, State and local statutes, regulations,
ordinances, etc., and to develop a corporate health and safety plan
(HASP) and site-specific HASPs as required by individual WAs.
Each RAC contains a health and safety clause requiring that the contrac-
tor, at a minimum, satisfy all Federal, State, and local statutes, regula-
tions, and ordinances regarding health and safety. This includes Section
126 of SARA, HAZWOPER (29 Code of Federal Regulations [CFR]
1910.120), any applicable provisions of the Occupational Safety and
Health Act of 1970 and state occupational health and safety laws. The
clause also requires RAC contractors to develop and submit for CO
review a corporate HASP in accordance with RAC technical proposal
instructions. Also, under RACs, most individual WAs should require that
the contractor prepare and submit a site-specific HASP that contains an
emergency response plan. WAs for pre-remedial activities, however, are
usually conducted under a generic and not a site-specific HASP unless the
site had previous investigations which permitted the development of a
site-specific HASP.
EPA's Role
EPA ensures that health and safety requirements are met, and reviews and
accepts health and safety deliverables. EPA is responsible for ensuring
that on-site EPA employees comply with HAZWOPER and medical
surveillance requirements. On-site EPA employees and visitors, however,
must follow the contractor's HASP provisions and procedures.
EPA oversees coordination between the site-specific emergency response
plan and any local contingency plan or emergency provisions. Frequently,
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contractors rely on local emergency response organizations to respond
during a site emergency. EPA should ensure that local emergency re-
sponse organizations meet HAZWOPER training requirements for emer-
gency response.
EPA should notify local emergency response organizations of any RAs
involving hazardous waste operations even when a private party will
implement the emergency response plan. If the WAM relies on the con-
tractor to notify local emergency response organizations, the WAM must
ensure that the contractor does so.
The contractor's HASP implementation and supporting documentation is
included as one of the performance (award) fee evaluation criteria as
further incentive to comply with RAC health and safety requirements.
Contractor Responsibility
Contractors are responsible for the health and safety of their workers and
persons exposed to their operations and must develop and implement a
corporate health and safety program with a written HASP. Training and
medical surveillance functions are contractor responsibilities. A HASP is
required routinely in site-specific WAs. All site activities are incorporated
or coordinated in the site-specific HASP. The prime contractor coordi-
nates health and safety issues with its subcontractors under one HASP.
Proper coordination includes, but is not limited to:
• informing the subcontractors of occupational health and safety provi-
sions in the contract and penalties for noncompliance
• coordinating HASP elements, including the emergency response plan,
and addressing subcontractor activity in the HASP
• inspecting subcontractor operations to ensure compliance
The HASP, especially the emergency response plan, should be consistent
and coordinated with any local contingency plan. Coordination can be
done through Local Emergency Planning Committees. In addition to its
duties regarding the HASP, a contractor must comply with all other
applicable health and safety standards, including hazard communication,
process safety management, confined space entry, asbestos removal,
construction standards, and general industry standards. Where require-
ments overlap, the most stringent standard applies.
Finally, contractors must continuously monitor safety. Specifications in
contracts with subcontractors need to be sufficiently flexible to assure
compliance with HAZWOPER while allowing personal protective equip-
ment (PPE) to be upgraded and downgraded when necessary. The prime
contractor also ensures that its subcontractors assign personnel properly
trained in health and safety policies and procedures related to the site. The
contractor must use relevant monitoring data to assess potential exposure
and make decisions on the appropriate PPE level. Effective use of moni-
2-31
HASP implementation is a
performance (award) fee criterion.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 2-6. Overview of
Headquarters and Regional
Roles in RACs
toring data is important for the proper implementation of any health and
safety program.
2,4 Contract Management Responsibilities
Effective oversight and management of RACs requires a team approach
between individuals and groups responsible for overseeing and managing
the contracts. The Region is responsible for frontline, daily management
of the contract, while Headquarters oversees and assists the Region in
carrying out these contract management responsibilities by monitoring,
analyzing, and reporting program and contract data from a national
perspective. Exhibit 2-6 identifies the groups and individuals involved in
managing RACs and summarizes overall Headquarters and Regional roles
in managing RACs. The Regional RAC WAMs, POs, and COs compose
the core contract management team for RACs.
HEADQUARTERS
Office of Emergency and Remedial Response,
Hazardous Site Control Division
Office of Acquisition Management, Superfund/RCRA Procurement
Operations Division
Office of Solid Waste and Emergency Response, OSWER Acquisition Staff Office
1. National Oversight: Compile and analyze RAC reports of work data across contracts
and Regions to identify contract weaknesses and problems on a national level.
Conduct Regional management reviews to assess compliance with contract
requirements and core elements of the RAC Users' Guide.
2. National Monitoring: Examine in-depth problems discovered during national
oversight.
3. Technical Assistance: Provide uniform national advice and assistance in developing
corrective actions to resolve problems identified during oversight and monitoring.
4. Public Response: Respond to inquiries from Congress, Office of Management
and Budget, Inspector General, special interest groups, and the public regarding
the RAC program.
REGIONAL
RAC Project Officers
RAC Contracting Officers
RAC Work Assignment Managers
1. Overall Contract Management: Monitor contractor compliance with contract terms
and conditions. Monitor capacity and utilization of the contract, and track expenditures
site-specifically. Implement procedures set forth in the RAC Users' Guide for contract
administration, and develop and implement Regional standard operating procedures
(SOPs) for areas where the Region deviates from the guide.
2. Work Assignment (WA) Management: Implement procedures set forth in the RAC
Users'Guide tor issuing and managing WAs, and develop and implement Regional
SOPs for areas where the Region deviates from the guide.
51-033-181
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2.4.1 Headquarters Roles and Responsibilities
An overview of the role of each Headquarters entity in RACs oversight is
provided below. A summary list of key Headquarters' responsibilities is
provided in Exhibit 2-7.
Hazardous Site Control Division (HSCD) /National RAC Designated Lead
HSCD located within OERR, is responsible for the Superfund remedial
program mission and the contracts used to achieve that mission. HSCD
coordinates with the OSWER Acquisition Staff Office (OAS) and inter-
acts with the Superfund/Resource Conservation and Recovery Act Pro-
curement Operations Division (S/RPOD) to address contract management
issues at a national level. HSCD collects RAC program data at the na-
tional level for oversight and to respond to senior management and
Congressional inquiries. HSCD works closely with OAS and S/RPOD to
provide assistance, guidance, and training to the Regions. As the RAC
lead, HSCD is a national resource that Regions can come to with policy
questions, and for assistance when Regional crossover issues arise. HSCD
interacts with the POs to discuss and resolve important contract manage-
ment issues, problems, and concerns.
Office of Acquisition Management (OAM)/Superfund/RCRA Procurement Operations
Division
The S/RPOD, located within OAM, provides oversight of the COs and
interacts and coordinates regularly with HSCD and OAS to assess con-
tract management performance and to discuss and resolve contract
management issues on a national scale. S/RPOD works closely with
HSCD and OAS to provide assistance, guidance, and training to the
Regions, and interacts with the Regional COs to discuss and resolve
important contract management issues, problems, and concerns. S/RPOD
is involved in responding to Congressional inquiries regarding the RAC
program.
EPA publication EPA/202/B-92-012, April, 1994, "Who's Who and
What's What in the Office of Acquisition Management," provides
information on the regulations and procedures followed in OAM.
OSWER Acquisition Staff Office/Superfund Acquisition Manager
The OAS, located within OSWER, conducts Regional program manage-
ment reviews and analyzes national contract management information.
The OAS works closely with HSCD and S/RPOD to provide further
assistance, guidance, and training to the Regions. The OAS interacts with
the POs to discuss and resolve important contract management issues,
problems, and concerns.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 2-7. Headquarters' Roles and Responsibilities for Overseeing RACs
Headquarters' Roles and Responsibilities
HSCD
S/RPOD
OAS
A. National Oversight
Assesses the effectiveness of contracts management and contractor performance
at the national level
Conducts Regional management reviews to assess contracts management
performance
Collects and analyzes national-level contracts management information to enable
assessment of the RAC program on a national level
Prepares analyses of the RAC program on a national level for EPA management
and the Congress
Prepares policy directives regarding national-level contracts management issues
and requirements
Oversees and evaluates contract oversight performance of COs
Interacts with POs to discuss and resolve important contract management issues,
problems, and concerns
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8. National Monitoring
Conducts special studies, in-depth examinations, and monitoring of national-level
contract management weaknesses and problems discovered during national
oversight
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C. Technical Assistance
Develops and provides guidance for the Regions to ensure consistency of contracts
management performance
Develops and provides training on RAC management for the Regions
Participates in and sponsors national meetings with the Regions to discuss and
resolve contract management issues
Performs troubleshooting, as necessary, to solve Regional problems and concerns
regarding contracts management
Participates in Regional management team meetings when requested
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D. Public Response
Responds to or assists in responding to inquiries from Congress, OMB, Inspector
General, special interest groups, and the public regarding the RAC program
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51-033-182
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2.4.2 Regional Roles and Responsibilities
Within the Region, RAC contract management responsibilities are shared
among the PO, CO, and WAMs. These individuals' overall responsibilities
are summarized below and detailed in Exhibit 2-8.
Project Officer
The PO is charged with daily contract management, ensuring that contract
requirements are fulfilled by the contractor and appropriately managed by
the WAMs, and that WAMs employ appropriate program policy, proce-
dures, goals, and objectives. The PO has program management responsi-
bilities for planning, executing, and controlling RAC contract resource
use in accordance with Regional procedures. The PO also reviews WA
packages and amendments and supporting documentation for appropriate-
ness and completeness, thereby assisting the WAM in improving quality.
The PO reviews contractor WPs and assists the CO in negotiations as
needed.
POs track contract financial commitments and disbursements, approve
contractor invoices, and may conduct spot check visits of the contractor's
office to assess compliance with the program and contract requirements.
The PO interacts with HSCD and the OAS in Headquarters and the CO
and WAMs in the Region, providing each with the information and
assistance required to accomplish their jobs. The POs support the OAS in
conducting Regional program management reviews and collecting and
analyzing contract management information.
Contracting Officer
The RAC COs are located in the Regions and have responsibility for
administering specific contracts. The COs provide contract-wide assis-
tance, guidance, and training for the POs and WAMs and interact regu-
larly with the POs and WAMs to discuss and resolve contractual issues,
problems, and concerns.
The CO has overall responsibility for ensuring that EPA and the RAC
contractor adhere to the terms and conditions of the contract, and that the
contractor produces the necessary personnel, property, and services to provide
EPA with the support specified in the contract SOW. To this end, the CO
performs periodic site visits to the contractor's PS or site offices and reviews
and approves WA SOWs, negotiates WPs and cost proposals, approves WA
modifications, grants subcontract consent, resolves COI situations, and
performs the full range of duties and responsibilities required for contract
administration. The CO also ensures that the contractor does not exceed
contract funding or hours ceilings, and issues contract modifications as
necessary and appropriate.
The CO interacts with S/RPOD and has a close coordinating relationship
with the PO for the contract. The CO is the only government official with
the authority to commit government funds for expenditure under the
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Exhibit 2-8. Regional Roles and Responsibilities in Administering and Managing Response Action Contracts
Regional Roles and Responsibilities
PO
CO
WAMs
A. Overall Contract Management
Conducts postaward conference/kickoff meeting
Participates in postaward conference/kickoff meeting
Monitors contractor compliance with contractual terms and conditions
Monitors cost and technical performance of contractors (including taskings, disbursements,
obligations, and utilization of funded contract capacity)
Conducts yearly or more frequent visits to contractor's office to assess compliance with
contract requirements
Plans how to use contract capacity
Monitors contract costs (e.g., ensures minimums are met and ceilings not exceeded)
Updates automated contract tracking/management system to ensure collection and reporting
of cost and technical information on a contract-wide basis
Conducts technical review of subcontracts
Consents to subcontractor
Evaluates contractor technical and cost performance
Provides PO and WAM training or certification
Provides guidance to WAMs regarding WA management duties
Tracks utilization of funded contract capacity and ensures utilization is within Region's allocated
financial capacity
Prepares funding procurement requests (PRs)
Reviews PRs and obligates funds to the contract
Recommends/prepares justification for exercise of contract options
Exercises contract options
Prepares 7-point equipment justifications
Reviews/concurs with 7-point equipment justifications
Reviews/recommends approval of changes in key personnel
Approves changes in key personnel
Participates with Headquarters personnel in national meetings to discuss and resolve contract
management issues
Modifies contract when necessary
Participates in contractor purchasing system reviews
Provides recommendations to CO regarding COI and LOFC
Makes final decisions regarding COI and LOFC
Provides technical assistance to CO regarding contract terminations
Terminates contract (when necessary)
Completes technical aspects of contract closeout
Completes contractual aspects of contract closeout
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51-033-183
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Exhibit 2-8. Regional Roles and Responsibilities in Administering and Managing Response Action Contracts, contd.
.,
Regional Roles and Responsibilities
—
PO
CO
WAMs
B. Work Assignment Management
Prepares and signs Form 1900-65a for WAM designation
Plans funding in RP2M for site activities
Allocates work to contractors
Develops WA and prepares WA package (WAP), consisting of SOW, independent government
cost estimate (IGCE), WA Form (WAF), and funding PR (if funded site-specifically)
Reviews and approves WAP
Conducts WA scoping meetings
Attends WA scoping meetings
Leads WP negotiations
Participates in WP negotiations
Reviews and approves contractor WP
Monitors (on-site and off-site) technical and cost performance of contractor on WA and
provides TD to contractor
Participates in periodic meetings with contractor
Reviews and approves technical and financial data in monthly progress reports
Reviews and approves contractor invoices
Recommends suspension/disallowance of costs
Suspends/disallows costs
Reviews and approves deliverables
Takes follow-up action on problem deliverables
Provides assistance to WAMs on contractual issues
Provides assistance to WAMs on technical issues
Prepares WAF suspending/stopping work on a WA
Issues suspensions/stop-work orders
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C. Contractor Performance Evaluation
Evaluates contractor performance on WA and recommends rating for six-month evaluation
period
Prepares WA Completion Report
Reviews WAM and contractor's evaluations of contractor's WA performance
Prepares Performance Evaluation Forms to document WA problems as needed
Prepares evaluation of contractor performance on PS WAs
Reviews WA evaluations and prepares summary contractor evaluation for PEB consideration
Participates in PEB meeting (i.e., presentation to PEB)
Attends PEB meeting if requested
Ensures that PEB proceedings and fee recommendations are documented in PEB report
Prepares and issues contract modification authorizing contractor to invoice for approved fee
amount
Chairs post-PEB contractor debriefing session
Attends post-PEB contractor debriefing session
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51-033-183(2}
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
EPA generally facilitates contractor
interaction with third parties
(except subcontractors).
contract and, hence, is the only individual able to issue WAs to the con-
tractor and authorize any work.
Work Assignment Manager
The WAM is responsible for daily WA management. The WAM prepares
the WAP, including the SOW, IGCE, WAF, and funding request (if re-
quired); reviews and recommends approval of WPs and invoices; and
approves deliverables. The WAM monitors and evaluates contractor
performance in accordance with the contract fee plan and Regional
procedures. During the performance of their management activities, the
WAM coordinates with the PO and CO to ensure that the government's
interests are appropriately safeguarded during the contract period of
performance.
2,5 Contractor Interactions with Other EPA Contractors, Federal
Agencies, and State and Local Agencies
This section describes interactions between RAC contractors, other EPA
contracts, Federal agencies, and State and local agencies. EPA and indi-
vidual contractors have their respective roles and responsibilities when
dealing with third parties, but the basic rule of thumb is that EPA facili-
tates contractor interactions with third parties, with the exception of
subcontractors to the prime contractor. Only the prime contractor may
direct its subcontractors.
When interacting with third parties, the contractor must follow certain
confidentiality rules, especially concerning CBI. The WAM, PO, and CO
should be aware of these issues.
RAC clauses in Section H address confidentiality issues:
PROJECT EMPLOYEE CONFIDENTIALITY AGREEMENT
requires the contractor to obtain confidentiality agreements from all
its employees.
SCREENING BUSINESS INFORMATION FOR CLAIMS OF
CONFIDENTIALITY requires the contractor to screen information
obtained from outside sources, and if it collects the information from
a business, to notify the business in accordance with clause terms.
TREATMENT OF CONFIDENTIAL BUSINESS INFORMATION
outlines the contractor's restrictions in handling CBI.
RELEASE OF CONTRACTOR CONFIDENTIAL BUSINESS
INFORMATION is the contractor's consent to release its own CBI in
accordance with clause terms.
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CHAPTER 2 » CONTRACT STRUCTURE, SENSITIVE ISSUES,
MANAGEMENT RESPONSIBILITIES, AND INTERACTIONS
2.5.1 Contractor Interactions with Other Superfund Contractors
A RAC contractor is one of several Superfund contractors that may be on
site during a removal or remedial action. Although each contractor is
independently responsible for performing specific functions, duplication
of effort can be avoided by coordination of contractor efforts. EPA
facilitates coordination between contractors so that one contractor is not
instructing another and one contractor does not impede the work of
another. Specifically, the WAM and the PO should be aware of contractor
interactions at a site, with both the WAM and the PO helping to coordi-
nate such interactions. The types of Superfund contractors with whom
RAC contractors may potentially interact include:
• Superfund Technical, Assessment, and Response Teams (START)
contractors perform both site assessment activities and removal
activities. START contractors provide technical and management
services necessary to successfully implement the remedial response
program and support in the conduct of field investigations such as
preliminary assessment and site inspection of hazardous substance
sites. For removal activities, START contractors may be involved in
supporting: (1) response monitoring, (2) response documentation, (3)
damage assessment, and (4) Federal disaster assistance activities.
• Enforcement Support Services (ESS) contracts provide enforcement
support to the Office of Enforcement and Compliance Assurance to
ensure recovering federal funds expended under CERCLA. This
includes support work for: (1) private investigations, (2) risk/exposure
assessments, (3) responsible party searches, (4) title searches, (5)
acquisition and analysis of financial records, and (6) general case
development support.
• CLP contracts provide chemical analytical support in the investiga-
tion and cleanup of hazardous substance sites. A nationwide network of
contract laboratories have the analytical capabilities to assist in the
following functions: (1) identifying threats to public health and the
environment, (2) assessing risk, (3) instituting remedial response, and
(4) initiating response actions. Work conducted by the CLP is coordi-
nated by the Sample Management Office OAS through EPA's Regional
Sample Control Center.
• Regional analytical contracts provide for the delivery of analytical
services not obtained through CLP in the Regions.
• Regional or Zone Environmental Services Assistance Team con-
tracts provide analytical support and data review to the Regions,
providing staff to work in Regional laboratories or separately located
laboratory facilities, and performing a range of analytically related
technical, quality assurance, and administrative support.
• Emergency and Rapid Response Services contracts provide removal
cleanup work.
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The WAM should mediate
contractor/USAGE interactions.
2.5.2 Contractor Interactions with Other Federal Agencies
It is anticipated that few interactions between RAC contractors and
Federal agencies other than EPA will occur, with the exception of the
USAGE. If necessary, Federal agencies will access RAC contractors
through EPA's Regional CO for RACs. For construction projects exceed-
ing $15 million in cost, however, USAGE must manage the construction.
In those cases, USAGE would interact fairly regularly with the RAC
contractor performing the RD.
For example, if USAGE was to be the construction manager for a project
with an RD designed by a RAC contractor, the WAM may instruct the
RAC contractor to send copies of work progress, weekly or when needed,
to USAGE. Also, during the construction phase, USAGE may consult the
RAC contractor that developed the RD. In those cases, the EPA WAM
must be present or on the phone as conversations take place.
2.5.3 Contractor Interactions with State and Local Agencies
RAG contractors may interact with a State in a variety of situations during
a removal or RA. When a State is the lead for a site, a cooperative agree-
ment defines the roles of EPA and the State and other involved parties. If a
State has a supporting role for a site, the Superfund state contract (SSC)
defines the roles of EPA, the State, and others involved. For example,
agreements with the State could outline the State's role in community
relations for a site. EPA usually coordinates all community relations
efforts through the WAM, but the State may play a supporting role.
Regardless of the roles during the removal or RA, EPA's role ends when
the RA is completed. The State assumes all responsibilities for the site's
operation and maintenance (O&M), according to the terms of the coopera-
tive agreement or the SSC, whichever applies, unless a PRP is responsible
for O&M.
If a RAC contractor or subcontractor needs to contract the use of equip-
ment owned by a State's transportation department or to tap city water
lines to prevent well-water users from exposure to toxic chemicals in
groundwater, the RAC contractor arranges the required services. The
contractor is also responsible for securing any rights-of-way required,
obtaining any State or local permits, and adhering to all State and local
regulations and ordinances for its own needs off-site. For on-site activi-
ties, however, Superfund exempts EPA from having to obtain permits if
the substantive contents of the permits have been met. Also, if an off-site
staging area is needed, EPA typically procures any easements or rights-of-
way necessary before the project begins.
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CHAPTER 2 * CONTRACT STRUCTURE, SENSITIVE ISSUES,
MANAGEMENT RESPONSIBILITIES, AND INTERACTIONS
2,6 Bibliography
Guidance Documents
EPA/PCMD. August 1991. Contracts Management Manual.
EPA/OSDBU. August 1992. Preferential Procurement Program Handbook
for Project Officers, Contract Officers, and Small Business Specialists.
EPA. February 23,1993. Final Indemnification Guidelines.
EPA/HSCD/OERR. February, 1994. Response Action Contract Acquisition
Model.
EPA/OWPE. February 16, 1994. Regional Enforcement Support Services
(ESS) Users' Manual.
EPA/OAM. March 1994. Procedures Regarding Conflicts of Interest
(Draft).
EPA/ERD. ERCS User's Manual.
Reports
EPA. 1991. "Implementation of the Superfund Alternative Remedial
Contracting Strategy (ARCS)", Report of the Administrator's Task Force.
EPA/OSWER. April 25,1994. OSWER Environmental Justice Task Force,
Draft Final Report, Executive Summary, OSWER 9200.3-16-1 Draft EPA
A540/R-94/004.
Memoranda
EPA. June 27,1990. "Implementation of Value Engineering for Corps of
Engineer Managed Superfund Remedial Design and Remedial Action
Projects, Office of Solid Waste and Emergency Response". Memorandum
from Henry Longest to Waste Management Division Directors: Regions
I-X.
EPA/PCMD. December 1, 1992. "OFPP Policy Letter 92-1 on Inherently
Governmental Functions". Memorandum from Michael Bower, Acting
Director, PCMD, to AAs, Deputy AAs, RAs, Assistant RAs, and Senior
Procurement Officials.
EPA/OAM. November 18,1993. "Requirements of PPN 94-01, Determi-
nation and Findings - Inherently Governmental Functions ". Memoran-
dum from Ceia Wene, Contracting Officer, OAM, to Project Officers.
EPA. March 17,1994. "OAM's Proposed Procedures Regarding Conflicts
of Interest, Office of Acquisitions Management". Memorandum from
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Margaret Lenshen, Chief, Contracts Management Section, Region I, to Ika
Joiner, Superfund Acquisition Manager.
Regulatory and Other Sources
Commerce ClearingHouse, Inc., Chicago, Illinois. January, 1994. Federal
Acquisition Regulation as of January 1,1994.
EPA. October 22, 1990. EPA Order 1900-2, Contracting at EPA.
EPA. 1993 and 1994. Requests for Proposals for Response Action Con-
tracts for Remedial, Enforcement Oversight, and Non-Time Critical
Removal Activities at Sites of Release or Threatened Release of Hazard-
ous Substances in Regions 1, 6, 7, and 8.
EPA. October 1993. EPA Draft Final Conflict of Interest Rule: Summary
of Key Provisions.
EPA. March 1994. Executive Order #12898 on Environmental Justice,
EPA Insight Policy Paper, EPA-175-N-94-001,
EPA/OSWER. March 16, 1994. Draft Executive Summary, Environmental
Justice Strategy.
Federal Register. April 19, 1994. Acquisition Regulation Concerning
Conflicts of Interest Final Rule. 48 CFR 18600.
Federal Register. January 25,1993. Final Guidelines for Superfund
Response Action Contractor Indemnification.
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Response Action Contract
(RAQ Users' Guide
Volume I: Reference Guide
Mobilization
CHAPTE R
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
PLI Pollution Liability Insurance
PO Project Officer
PS Program Support
QA Quality Assurance
RAC Response Action Contract
RACS Response Action Contracting
Strategy
SOP Standard Operating
Prxedure
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
3.1 Background and Requirement 3-1
3.2 Roles and Responsibilities for Mobilization 3-3
3.3 Bibliography 3-5
Exhibit 3-1 Roles and Responsibilities for Mobilization 3-4
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CHAPTER 3 « MOBILIZATION
This chapter provides background information on Response Action
Contract (RAC) mobilization and identifies roles and responsibilities of
the individuals involved in mobilization.
3.1 Background and Requirement
RAC mobilization encompasses the activities necessary to prepare the
contractor's personnel and support systems for project performance. By
the end of mobilization, the contractor should have all systems in place
and be ready to perform and manage any and all site-specific and program
support (PS) work assignments (WAs).
Contractor performance of mobilization is considered a PS cost under
RACs. In RACs, PS costs are divided into five discrete work areas for
tracking and cost accounting. The five PS work areas are: Mobilization,
Non-Site-Specific Equipment, Ongoing Technical Support, Ongoing
Administrative Support, and Contract Closeout. A separate WA is issued
for each PS work area. This is a core element of RAC guidance.
The RAC specifies that all work performed under the contract, including
PS activities, be defined in and performed under WAs. Hence, the Mobili-
zation WA must be in place at the start of the contract, so that the contrac-
tor can proceed with mobilization. The mobilization phase may include
acquisition of government property, however, government property
acquisition is not chargeable to the Mobilization WA. To retain integrity in
tracking costs, all non-site-specific government property acquisition,
tracking, management, and disposition, whether performed during mobili-
zation or later in the contract, must be charged under the Non-Site-
Specific Equipment WA. Therefore, the Non-Site Specific Equipment WA
must be in place before equipment mobilization or acquisition transfer
occurs. The Non-Site-Specific Equipment WA is generally issued at the
start of or at some point during the contract mobilization period.
The contract Statement of Work (SOW) specifies six tasks under the
Mobilization PS work area:
• Task 1—Project Planning and Support
• Task 2—Information Controls and Reporting
• Task 3—Standard Operating Procedures
• Task 4—Team Subcontracts
• Task 5—Pollution Liability Insurance
• Task 6—Work Assignment Closeout
The contract SOW also specifies a mobilization task under the Non-Site-
Specific Equipment PS work area. The equipment mobilization task
3-1
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The Region must issue a separate
WAfor each of the five PS work
areas.
Non-site-specific equipment
acquisition, tracking, management,
and disposition must be charged
under the Equipment PS WA to
retain integrity in tracking PS costs.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Upon contract award, the
Regional CO initiates PS WAs
for Mobilization and
Non-Site-Specific Equipment.
Ongoing Administrative and
Technical Support PS WAs may be
issued for any period up to the
entire base period.
includes establishment of the contractor's property utilization reporting
system and efforts during the contract mobilization period related to
receiving, evaluating, repairing, and tracking government property that is
non-site-specific. Property is considered non-site-specific when it will be
used at more than one site. Additionally, during mobilization, the contractor
may purchase non-site-specific government property, in accordance with
the Non-Site-Specific Equipment work area, Task 3—Equipment Acquisi-
tion. Before any property-related activities can occur, the government
must put in place the PS WA for Non-Site-Specific Equipment.
The contractor includes detailed mobilization and equipment acquisition
and management plans with its management plan submitted in response to
the RAC solicitation. During contract negotiations, EPA and the contrac-
tor discuss and resolve issues regarding mobilization, including establish-
ing the mobilization schedule and costs; finalizing the contractor's
mobilization plan; and transferring and acquiring government property.
The final, EPA-approved mobilization plan and equipment acquisition and
management plan serve as the basis for the contractor's work plans (WPs)
for the Mobilization and Non-Site-Specific Equipment WAs.
After contract negotiations and before award, the Headquarters placement
Contracting Officer (CO) designates the contract ceiling for mobilization
by inserting the negotiated amount for mobilization into the MOBILIZA-
TION contract clause in Section B of the contract. The mobilization
amount includes negotiated costs for the Mobilization PS WA and Non-
Site-Specific Equipment PS costs that will be incurred during mobilization.
Immediately upon contract award, the administrative CO in the Region
initiates the WA for the Mobilization PS WA, assigns the WA number, and
approves the WP based on the EPA-approved mobilization plan and
negotiated mobilization costs. The Non-Site-Specific Equipment PS WA
is issued during the contract mobilization period so that the contractor can
ready its equipment tracking system and acquire equipment that will be
needed to support site-specific work. The CO initiates the Non-Site-
Specific Equipment PS WA, assigns the WA number, and approves the
WP based on the contractor's EPA-approved mobilization and equipment
acquisition and management plans. See Chapter 5 for procedures for
issuing WAs and approving work plans.
The MOBILIZATION clause in Section B of the contract states that
all costs and deliverables associated with the mobilization phase, as
defined in the contract SOW, will be determined during negotiations
and will be incorporated into the clause upon execution of the contract.
During the mobilization period, the administrative CO issues separate PS
WAs for Ongoing Administrative Support and Ongoing Technical Sup-
port. Ongoing Administrative and Technical Support PS WAs should be
issued so that the WPs can be approved and the contractor ready to start
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CHAPTER 3 » MOBILIZATION
work by the end of the mobilization period. These WAs may be desig-
nated for different lengths of time (any length up to the entire base period)
at the Region's discretion. EPA is required to track administrative and
technical program management costs separately. Issuing separate WAs for
Ongoing Administrative and Ongoing Technical Support facilitates this.
3,2 Roles and Responsibilities for Mobilization
RAC mobilization, while focusing on contractor activities in readying
themselves to manage the contract and perform site-specific work,
involves participation by Headquarters and Regional contracting and
program office representatives. Specific roles and responsibilities of the
Project Officer (PO), CO, and the contractor during RAC mobilization are
shown in Exhibit 3-1. Since the PO generally serves as the Work Assign-
ment Manager (WAM) for the PS WAs, the PO's and WAM's roles are
shown combined in Exhibit 3-1.
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RAG USERS' GUIDE) VOLUME 1: REFERENCE GUIDE
Exhibit 3-1. Roles and
Responsibilities for Mobilization
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Individual
Role in Mobilization
Participates in the post-award kickoff meeting
Reviews contractor standard operating procedures (SOPs) for analytical
services delivery
Reviews contractor's health and safety plan
Prepares PS WAs
Reviews and recommends approval of PS WPs
Oversees contractor performance of PS WAs
Issues technical direction and prepares WA amendments for PS WAs
Establishes WAM and PO contract files for PS WAs
Identifies need for provision of government property to contractor
Prepares seven-point justification for government property transfer and
acquisitions during mobilization
Coordinates provision of government property to contractor
Chairs mobilization status meeting(s) and mobilization completion meeting
Schedules and chairs the post-award kickoff meeting
Reviews and approves contractor SOPs for conflict of interest, confidential
business information, and analytical services delivery
Reviews and consents to pollution liability insurance (PLI) costs
Reviews and consents to standard language for subpool subcontracts
Reviews, approves, and issues PS WAs
Reviews, approves, and issues WA amendments
Reviews technical direction memoranda
Reviews and concurs with government property justifications
Establishes CO contract file
Participates in mobilization status meeting(s) and mobilization completion
meeting
Participates in the post-award kickoff meeting
Establishes management information systems, records management
procedures, and accounting and cost control procedures to meet contract
requirements
Modifies SOPs to meet Agency requirements
Awards Team subcontracts to contract-approved subcontractors
Prepares standard language to use in subpool subcontracts
Submits PLI costs if direct billing PLI to contract
Receives, evaluates, repairs, tracks, and reports government property
acquired during mobilization through transfer or purchase
Establishes equipment utilization reporting system and property records
Participates in mobilization status meeting(s) and mobilization completion
meeting
Prepares PS work plans in response to WAs
Performs mobilization tasks as specified in the approved work plans for
Mobilization and Equipment PS WAs
51-033-162A
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CHAPTER 3 » MOBILIZATION
3,3 Bibliography
Guidance Documents
EPA/OARM. December 1989. Contract Administration.
EPA/OERR/HSCD. February 1994. Response Action Contract Acquisition
Model. EPA 540 X-90 001.
Memoranda
EPA/OSWER. February 11,1993. "Guidance on Program Management
Activities Under ARCS". Memorandum from Richard Guimond, Deputy
Assistant Administrator, OSWER, and Sallyanne Harper, Deputy Assistant
Administrator for Finance and Acquisition, to ARCS Contracting Officers
and Project Officers.
Regulatory and Other Sources
EPA. 1993 and 1994. Requests for Proposals for Response Action Con-
tracts for Remedial, Enforcement Oversight, and Non-Time Critical
Removal Activities at Sites of Release or Threatened Release of Hazard-
ous Substances in Regions 1, 6, 7, and 8; Section B, Clause - Mobiliza-
tion; and, Attachment A, Statement of Work.
EPA. May 1993. Superfund Response Action Contracts, Quick Reference
Fact Sheet. Publication 9242.2-O8FS.
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Response Action Contract
(RAQ Users' Guide
]blmel: Reference Guide
Contract
Administration
CHAPTER
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
4.1 Introduction 4-1
4.2 Roles and Responsibilities for Contract Administration 4-5
4.3 Contract Funding 4-7
4.3.1 Background and Requirement 4-9
4.3.2 Roles and Responsibilities for Contract Funding 4-15
4.4 Exercising Contract Options 4-17
4.4.1 Background and Requirement 4-19
4.4.2 Roles and Responsibilities for Exercising Contract Options 4-21
4.5 Contract Modifications 4-23
4.5.1 Background and Requirement 4-25
4.5.2 Roles and Responsibilities for Making Contract
Modifications 4-27
4.6 Contract Claims and Disputes 4-29
4.6.1 Background and Requirement 4-31
4.6.2 Roles and Responsibilities for Handling Contract Claims and
Disputes 4-34
4.7 Subcontract Review and Consent 4-35
4.7.1 Background and Requirement 4-37
4.7.2 Roles and Responsibilities in Subcontract Review and Consent.... 4-40
4.8 Handling Conflict of Interest Issues 4-41
4.8.1 Background and Requirement 4-43
4.8.2 Roles and Responsibilities for Handling Conflict of Interest
Issues 4-43
4.9 Managing Regional Crossovers 4-45
4.9.1 Background and Requirement 4-47
4.9.2 Roles and Responsibilities for Managing Regional Crossovers 4-48
4.10 Implementing Control Measures for Vulnerable Contracting Areas 4-51
4.10.1 Background and Requirement 4-53
4.10.2 Roles and Responsibilities for Implementing Control Measures
for Vulnerable Contracting Areas 4-56
4.11 Small and Small Disadvantage*! Business Utilization, Contractor Participation
in Mentor-Protege Program, and Use of Labor Surplus Areas 4-59
4.11.1 Background and Requirement 4-61
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CHAPTER 4 * CONTRACT ADMINISTRATION
4.11.2 Roles and Responsibilities for Monitoring Contractor Compliance
with Subcontracting Plan 4-61
4.12 Annual Allocation of Non-Site-Specific Costs 4-63
4.12.1 Background and Requirement 4-65
4.12.2 Roles and Responsibilities for Annual Allocation 4-66
4.13 Annual Closeout 4-69
4.13.1 Background and Requirement 4-71
4.13.2 Roles and Responsibilities for Annual Closeout 4-72
4.14 Bibliography 4-73
Exhibit 4-1 IFMS Six-Field Accounting Data Structure 4-10
Exhibit 4-2 Regional Site-Specific Accounting 4-12
Exhibit 4-3 Breakdown of Work Areas by Bulk-Funding Categories 4-13
Exhibit 4-4 Work Assignment Number Structure 4-14
Exhibit 4-5 Roles and Responsibilities for Contract Funding 4-16
Exhibit 4-6 Roles and Responsibilities for Exercising Contract
Options 4-22
Exhibit 4-7 Examples of Contract Modifications and Their
Classifications 4-26
Exhibit 4-8 Roles and Responsibilities for Making Contract
Modifications 4-27
Exhibit 4-9 Claims and Disputes Process 4-33
Exhibit 4-10 Roles and Responsibilities for Handling Contract Claims
and Disputes 4-34
Exhibit 4-11 Subcontract Information 4-39
Exhibit 4-12 Roles and Responsibilities in Subcontract Review
and Consent 4-40
Exhibit 4-13 Roles and Responsibilities for Handling Conflicts
of Interest 4-44
Exhibit 4-14 Roles and Responsibilities for Managing
Regional Crossovers 4-49
Exhibit 4-15 Roles and Responsibilities for Implementing Control
Measures for vulnerable Contracting Areas 4-57
Exhibit 4-16 Roles and Responsibilities for Monitoring Contractor
Compliance with Subcontracting Plan 4-61
Exhibit 4-17 Roles and Responsibilities for Annual Allocation 4-67
Exhibit 4-18 Roles and Responsibilities for Annual Closeout 4-72
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CHAPTER 4 » CONTRACT ADMINISTRATION
This chapter provides background information and identifies roles and
responsibilities for administering Regional Response Action Contracts
(RACs).
4,1 Introduction
Detailed guidance on administering RACs is presented in this chapter in
11 sections. The topics of these sections are:
• funding the contract
• exercising contract options
• making contract changes through modifications
• settling contract claims and disputes
• consenting to subcontracts
• determining how to handle conflict-of-interest situations
• managing Regional crossovers
• implementing control measures for vulnerable contracting areas
• contractor utilization of small and small disadvantaged businesses and
labor surplus areas, and participation in the Mentor-Protege program
• overseeing the annual allocation of non-site-specific costs
• overseeing annual closeout procedures
Each section includes a discussion of the background of the requirement
and the legal basis for the requirement, including contract provisions and
Federal Acquisition Regulation clauses. The purpose of this discussion is
to provide sufficient background information to promote a complete
understanding of the processes described in Volume 2: Process Guide.
Contract administration is performed primarily by the designated contract
managers: RAC, Work Assignment Managers (WAMs), Project Officers
(POs), and Contracting Officers (COs). These individuals comprise the
core contract management team that administers and manages the RACs.
The Performance Evaluation Board members, the Superfund budget
managers, and the Contracts Payment Division staff at Research Triangle
Park manage the core contract managers and also are routinely involved
in RAC administration. This guide focuses on the specific duties of the
core contract managers. Where other parties are involved in a process,
their roles are identified but are not elaborated.
Each section of the chapter contains a detailed roles and responsibilities
matrix that identifies the responsibilities of the WAM, PO, CO, other EPA
entities, and the contractor in a particular process.
4-1
The RAC WAMs, POs, and COs
function as the core contract
management team that administers
and manages the RACs.
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CHAPTER 4 • CONTRACT ADMINISTRATION
Roles and Responsibilities for Contract
Administration
SECTION
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CHAPTER 4 * CONTRACT ADMINISTRATION
4,2 Roles and Responsibilities for Contract Administration
Administration of each Response Action Contract (RAC) is performed
primarily by a core contract management team (CMT), composed of the
Work Assignment Managers (WAMs), Project Officer (PO), and Contract-
ing Officer (CO). These individuals work together to ensure that the
government presents a unified front to the contractor in defining and
administering its requirements. The PO and CO have contract-level
responsibilities and perform most contract administration activities. The
PO is responsible for overseeing and administering the technical aspects
of the contract, while the CO is responsible for overseeing and administer-
ing the terms and conditions of the contract. The WAMs use their direct
knowledge of the contractors' work assignment (WA) activities to provide
the PO and CO with WA background and performance information that
supports the PO and CO in their contract administration duties. Individual
CMT members' responsibilities are summarized below.
The WAMs' primary responsibilities are to order and oversee work perfor-
mance under WAs, as described in Chapter 5. Although WAMs have no
official contract administration duties, they play a key role in providing WA
performance information that the PO and CO need to effectively administer
the contract. Specifically, the WAMs provide WA-level information for the
PO's use in determining the need for and requesting contract modifications.
The WAMs review and provide input on proposed subcontracts, provide
background information on claims, disputes, and conflict-of-interest situa-
tions, and review and recommend approval of WA costs in contractor in-
voices.
The PO functions as the technical representative to the CO in the CO's
contract administration duties. The PO initiates requests to the CO for
contract modifications, such as exercising options and funding. The PO is
responsible for technical aspects of contract administration and is the
primary contact for using the contract. The PO assists the Program in
distributing work to contractors and is responsible for reporting contractor
progress and funding the contract from appropriate accounts. The PO
initiates requests to the CO for contract modifications for funding, exer-
cising options, statement of work changes, and other changes as needed.
The PO determines the reasonableness of RAC costs during WP approval,
monitors and reports overall quality of contractor performance, reviews
contractor progress reports, approves invoices, prepares property justifica-
tions, ensures that control measures are implemented for vulnerable
contracting areas, recommends action on value engineering (VE) propos-
als, and ensures that the Superfund Program contracting strategy is
implemented. The PO works together with the CO to establish and
document Regional procedures that deviate from or supplement the
procedures in this guide.
The PO and CO perform RAC
contract administration activities.
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The CO ensures that funds are properly allocated to the contract and that
products or services supplied by the contractor to the government fully
comply with government specifications. The CO is the only individual
authorized to make changes to the contract and to authorize contract
expenditures.
The CO exercises contract options, handles contract claims and disputes,
reviews and consents to subcontracts, tracks contract costs and level-of-
effort hours expended, determines conflict-of-interest issues, identifies
vulnerable areas that require special controls, authorizes implementation
of VE proposals, and ensures that all contract terms and conditions are
met. The CO approves other EPA staff as designated contract managers
for RACs. The CO follows established government contracting require-
ments and documents deviations from established Agency protocols. The
CO coordinates with the PO to establish and document Region-specific
RAC administration procedures.
The WAM, PO, and CO maintain their respective contract document files
required by the EPA Records Control Schedule, as well as other docu-
ments needed to fulfill their contract and WA administration and manage-
ment responsibilities (see Chapter 11, "Records Management").
Sections 4.3 through 4.13 of this chapter contain detailed matrices that
identify the roles and responsibilities of the WAM, PO, CO, other EPA
entities, and the contractor in specific contract administration processes.
The contractor's responsibilities are included to convey a complete
picture of a process, rather than to dictate or limit the contractor's
contractual obligations.
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CHAPTER 4 « CONTRACT ADMINISTRATION
Contract Funding
SECTION
4.3
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
ACN
CERCLA
CERCLIS
CO
DON
EL
FY
IFMS
OSWER
PO
PR
PRP
PS
RA
RAC
RD
RI/FS
SCAP
WA
WAF
WAM
WBS
Account Control Number
Comprehensive
Environmental Response,
Compensation, and
Liability Act
Comprehensive
Environmental Response,
Compensation, and Liability
Information System
Contracting Officer
Document Control Number
Expenditure Limit
Fiscal Year
Integrated Financial
Management System
Office of Solid Waste and
Emergency Response
Project Officer
Procurement Request
Potentially Responsible
Party
Program Support
Remedial Action
Response Action Contract
Remedial Design
Remedial Investigation/
Feasibility Study
Superfund Comprehensive
Accomplishments Plan
Work Assignment
Work Assignment Form
Work Assignment Manager
Work Breakdown Structure
4.3 Contract Funding 4-7
4.3.1 Background and Requirement 4-9
4.3.2 Roles and Responsibilities for Contract Funding 4-15
Exhibits
Exhibit 4-1 IFMS Six-Field Accounting Data Structure 4-10
Exhibit 4-2 Regional Site-Specific Accounting 4-12
Exhibit 4-3 Breakdown of Work Areas by Bulk-Funding Categories 4-13
Exhibit 4-4 Work Assignment Number Structure 4-14
Exhibit 4-5 Roles and Responsibilities for Contract Funding 4-16
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CHAPTER 4 » CONTRACT ADMINISTRATION
4,3 Contract Funding
This section addresses Response Action Contract (RAC) bulk funding and
identifies the responsibilities of the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) in contract funding.
4.3.1 Background and Requirement
EPA remedial contracts traditionally have been funded on a work assign-
ment (WA) basis. A procurement request (PR) and contract modification
was required for every new WA or every action on a WA that increased or
decreased the funding level. Funding of WAs was labor-intensive and did
not offer the Regions sufficient flexibility for managing funds.
Bulk funding eases the administrative burden of processing a large
number of PRs and issuing the associated contract modifications. In
addition, bulk funding allows better resource management among WAs,
and eases the payment of indirect rate adjustments during annual closeout.
This'approach requires careful monitoring of contractor activity, expendi-
ture limits (ELs), and expenditure rates to ensure that funds are expended
in line with planned activities and priorities. Under bulk funding, the EL
serves as the WA funding ceiling (see section 5.9).
When bulk funded, the contract as a whole is funded periodically, accord-
ing to the funding category. The four bulk-funding categories in RACs,
which are defined as non-site-specific funding areas in OSWER Publica-
tion 9200.3-14.2, Program Management Manual, are:
• Program Support (Other Response)—Applies to WAs for ongoing
administrative support, ongoing technical support, equipment (non-
site-specific), mobilization, and contract closeout
• Site Characterization (non-site-specific "site" allowance)—Applies to:
- Preliminary assessments, site inspections, expanded site inspec-
tions, remedial investigations/feasibility studies (RI/FSs), reme-
dial designs (RDs), treatability studies, engineering evaluations/
cost analyses, data analytical services/special analytical services,
design assistance, community relations, technical assistance,
groundwater monitoring
- Oversight of potentially responsible parties (PRPs) during RI/FSs,
RDs, and remedial actions (RAs), early actions under remedial
authority, non-time-critical removal actions, five-year reviews, and
operations & maintenance
• Removal—Covers non-time-critical removal support
• Enforcement—Covers litigation and negotiation support
4-9
The Program Support (Other
Response) bulk-funding category is
usually termed "Other Response,"
but will be referred to as Program
Support (Other Response) for
RACs.
Under bulk-funding, obligations
are not site-specific but
expenditures are.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 4-1. IFMS Six-Field
Accounting Data Structure
While obligations are not site-specific, expenditures are. Bulk funds are
committed and obligated to the contract using a six-field generic account-
ing data structure that identifies the funding category but has a generic
activity code (7 is the activity code for general support and management)
and a generic site code (ZZ for site-specific WAs and 00 for program
support WAs) in the site/project field. The generic activity code is also in
the budget organization field. At invoice time, when the funds are ex-
pended site-specifically, the activity code and site code replace the generic
numbers in the site/project field and the budget organization field. A
document control number (DCN) also accompanies each six-field ac-
counting number to make the funding action unique. The DCN is desig-
nated when the six-field accounting number is designated.
The Integrated Financial Management System (IFMS) six-field account-
ing data structure replaces the former 10-digit account control number
(ACN) system. Exhibit 4-1 illustrates the field structure using a generic
ACN (5TFA7267ZZ) for a Region 6 site effort for comparison. The six
fields and their functions are also described below.
Budget Fiscal Year—Four-position field with first two positions for the
beginning fiscal year (FY) and the last two positions for the ending fiscal
year. For FY 1995 accounts, "95" should be used.
Appropriation—Six-position field used to identify appropriation. For
FY 1995, only the first two positions will be used and will contain the last
character of the budget fiscal year and the one character appropriation
code ("T" is the CERCLA appropriation code).
Organization—Seven-position field but normally only three or five
positions will be used. Non-site-specific account codes will contain the
Budget Fiscal Appropriation Budget Program
Year (max. 6) Organization Element
(max. 4) (max. 7) (max. 9)
95
1
5T
1
H
7267
H
S
:|
TFA
Site/Project Cost
(max. 8) Organization
[for future use]
(max. 7)
06ZZ7
1
?:? *
Compare this structure with the same information in a 10-digit
ACN for a Region 6 site effort - 5TFA7267ZZ.
51-033-187A
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CHAPTER 4 » CONTRACT ADMINISTRATION
two character allowance holder identifier, one character responsibility
center code, and an optional two character code for local use. Site-
specific codes for the Regions will consist of the allowance holder identi-
fier, the responsibility center code, and the funding activity code (activity
code "R" must be accompanied by the site-specific identifier). Site-
specific codes for Headquarters are the same except the responsibility
center code will be the code for the Region where the site is located.
Program Element—Nine-position field with only a three character code
being used for most spending documents. The only two RAC program
elements are TGB, which is used for enforcement; and TFA, which is
used for all other RAC work.
Site/Project—Eight-position field used to identify sites and activity
codes. The first two positions identify the Region; the next two positions
identify the site; and the fifth position identifies the activity code associ-
ated with work at that site. For Regions that have exhausted the initial
supply of site identifiers, the first position will be 'N' and the second
position will identify the Region (thus, two positions will not be available
for Region identification). For example, N401 represents a new site
identifier for Region 04 after the initial supply of site identifiers has been
exhausted. Headquarter's use of this field is different than the Region's.
Headquarters need use only the activity code followed by the two charac-
ter site identifiers.
Cost Organization—Seven-position field, reserved for later use.
When funds are expended site-specifically, such as where "L" is the
activity code and "A8" is the site code, the generic example in Exhibit 4-1
is changed as illustrated in Exhibit 4-2.
Activity codes are listed with accompanying work areas in the work
breakdown structure (WBS) of the contract. Exhibit 4-3 illustrates the
activity codes in each of the four bulk-funding categories.
Each WA issued under the contract has a unique WA number. A WA
number is an eleven-digit number composed as illustrated in Exhibit 4-4.
The first three digits of the WA number structure are the "numeric desig-
nation of the WA." For PS WAs, the numeric designation includes an
alpha character as the first digit. The alpha character indicates the type of
PS WA (i.e., the letter "A" is used for the Mobilization WA, "B" for Non-
Site-Specific Equipment WAs, "C" for Ongoing Administrative Support
WAs, "D" for Ongoing Technical Support WAs, and "E" for the Contract
Closeout WA). Under this system, the first three digits of the WA number
for the first Ongoing Administrative Support WA would be "C01." The
first three digits for the second Ongoing Administrative Support WA
would be "C02," and so on. Thus, the first PS WAs for Region 6 would
be:
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RAG USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 4-2. Regional
Site-Specific Accounting
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
Budget Fiscal Appropriation Budget Program
Year Organization Element
95
-• tf
5T
;•."•;>;
^
726L
I'X. *":
":'"tj
TFA
Site/Project Cost
Organization
06A8L
I
This exhibit demonstrates the site-specific expenditure of bulk funds for an RI/FS
(activity code "L") in Region 6 at a site designated "A8."
51-033-188A
• Mobilization—A01-M09_-0600
• Non-Site-Specific Equipment—BO 1-EQA_-0600
• Ongoing Administrative Support—C01-PS9_-0600
• Ongoing Technical Support—DO 1-PSA_-0600
At the end of the contract, Region 6 would issue a WA to close out the
contract:
• Contract Closeout—EO1 -CC9_-0600
Site-specific WAs do not contain an alpha character in the numeric
designation. For example, the first site-specific WA number would begin
with 001, the second would begin with 002, etc. Thus, the first WA issued
in Region 6 for an RI/FS at the site designated A8 would have a WA
number of 001-RIL_-06A8.
The fourth and fifth digits of the WA number structure are the work area
code (from the WBS) and the sixth and seventh digits are the activity code
(from the WBS; to be expanded to two digits in FY96). The eighth and
ninth digits are the Regional identifier (the eighth digit becomes an "N" if
a Region exhausts the supply of two-digit site identifiers) and the tenth
and eleventh digits are the site identifier.
Completion-Form WAs and Remedial Action WAs
RAs and completion-form WAs must be funded on a site-specific basis.
The Office of General Counsel, in a memorandum dated April 23, 1993,
determined that completion-form WAs must be funded site-specifically to
provide a recordable event for funding obligation purposes. The process
of funding WAs specifically is detailed in section 5.8, "Work Assignment
Funding."
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CHAPTER 4 » CONTRACT ADMINISTRATION
Program Support (Other Response) 1
Work Area (in WBS) Work Area Code
Mobilization
Equipment/Non-Site Specific
Ongoing Administrative Support
Ongoing Technical Support
Contract Closeout
••••^^^^^^^^^^^^^^^^^^^^^^^^•••••••^^^^^^^^^^^^^^^^^^^^^^^^^^
MO
EQ
OA
OT
CC
Activity Code*
9
A
9
A
9
Site Characterization |
Work Area (in WBS) Work Area Code
Remedial Investigation/Feasibility Study
Remedial Design
RI/FS Oversight
RD/RA Oversight
Removal Oversight
Community Relations
Sampling and Analytical Support
Pre-Design Investigation
Treatability Study/Pilot Testing
Assessment of Risk
Preliminary Assessment for Site Assessment
Site Inspection for Site Assessment
MRS Package Preparation for Site Assessment
Site Security and Maintenance
Design Assistance
Five-Year Review
Records Management and Administrative Support
Real Property Acquisition Support
Technical Assistance
Integrated Site Assessment/Investigation
Rl
RD
RS
RO
VO
CR
AN
PI
PT
RK
PA
SI
HR
SS
DA
FR
RM
RP
TA
SA
Activity Code*
L
N
P
P
P
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Removal H
Work Area (in WBS) Work Area Code
Non-Time-Critical Removal Action
Non-Time-Critical Removal Support
Community Relations
Sampling and Analytical Support
Records Management and Administrative Support
Technical Assistance
Integrated Site Assessment/Investigation
Real Property Acquisition Support
Site Security and Maintenance
NA
NS
CR
AN
RM
TA
SA
RP
SS
Activity Code*
E
8
8
8
8
8
8
8
8
51-033-83B
Exhibit 4-3. Breakdown of Work
Areas by Bulk-Funding
Categories
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 4-3. Breakdown of Work
Areas by Bulk-Funding
Categories, contd.
1 Enforcement
Work Area (in WBS) Work Area Code
Negotiation Support
Litigation Support
Community Relations
Sampling and Analytical Support
Site Security and Maintenance
Records Management and Administrative Support
Real Property Acquisition Support
Technical Assistance
Assessment of Risk
NG
LS
CR
AN
SS
RM
RP
TA
RK
Activity Code*
4
4
4
4
4
4
4
4
4
Exhibit U Work Assignment
Number Structure
Note: Remedial action WAs and any WA issued as completion-form are funded on a WA basis and are not part
of bulk funding.
* Activity Codes will be expanded to two digits in fiscal year 96.
51-033-83(2)A
Office of Solid Waste and Emergency Response (OSWER) Directive
9200.314-2, Program Management Manual, identifies the Regional
Allowance areas for non-site-specific and site-specific funding and
requires that RAs be funded site-specifically.
Control of Contract Fund Expenditures
EPA monitors and controls contract-level bulk funding by the following
two methods:
• site-specific expenditures of bulk-funded monies
• use of ELs
0 0 1-R !L_-0 6A 8
Numeric designation
of work assignment
T
Activity code
(from WBS; to be
expanded to two
digits in FY96)
I
Site identifier
(first and
second digits)
Work area code Regional
(from work break- identifier
down structure
[WBS])
Example of a WA issued in Region 6 for a remedial investigation/feasibility
study at me site designated A8.
51-033-175C
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CHAPTER 4 4 CONTRACT ADMINISTRATION
RACs require the contractor to allocate expenditures on a first-in, first-out
basis. For all WAs, regardless of the funding approach (site-specific or
bulk), the contractor must report and invoice actual expenditures on a site-
specific basis using an EPA site-specific reallocation attachment (see
section 4.12). For bulk-funded WAs, the allocation is determined by the
bulk-funding category, and the contractor completes the allocation by
including the activity code established in the RAC SOW work breakdown
structure and the site code in the proper fields in the IFMS six-field
accounting code structure. The reallocation process allows EPA to
monitor and track expenditures more efficiently.
RAC Attachment B, "Reports of Work," requires the contractor to
report and invoice actual expenditures on a site-specific basis and
submit the Superfund site-specific reallocation attachment with each
invoice.
In addition to tracking expenditures site-specifically, ELs provide the
main tool for EPA to track appropriate expenditures against funding
categories at the contract level and to monitor variances between contract-
funded levels and planned expenditures. ELs are used to regulate the
timing and amount of expenditures under each WA. The WAM, PO, CO,
and contractor document ELs for each WA as required by RAC (see
section 5.9). The contract also includes standard RAC reports for tracking
expenditures, budgets, and ELs. The use of ELs ensures that contractors
do not consume resources on one site and thereby constrain resources
available to perform critical work on another site.
RAC clauses WORK ASSIGNMENTS (TERM-FORM SEGMENT)
and WORK ASSIGNMENTS (COMPLETION-FORM SEGMENT),
in Section B of the contract, state that (1) upon receipt of the WA the
contractor may start work up to the EL in the WA, and (2) the
contractor shall not exceed the EL, level of effort, or period of
performance for a WA without the express approval of the CO.
4.3.2 Roles and Responsibilities for Contract Funding
The PO, in conjunction with the Waste Management Division, projects
periodic, usually quarterly, expenditures based on the Superfund Compre-
hensive Accomplishments Plan (SCAP) and prepares a PR for a funding
action to commit these funds. The CO reviews funding requests to ensure
that contract ceilings are not exceeded and prepares contract modifica-
tions to obligate funds. The PO and CO track ELs for each WA and for
the total contract to control how funds are expended and the WAM tracks
these expenditures at the WA level. The responsibilities of the WAM, PO,
CO, and contractor in contract funding are identified in Exhibit 4-5.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 4-5. Roles and
Responsibilities for Contract
Funding
Individual
PO
Role in Contract Funding
Inputs anticipated funding needs in RP2M/CERCLIS, which is then
reflected in SCAP
Prepares PRs for RA WAs
Tracks and monitors WA ELs
Prepares work assignment form (WAF) to change WA ELs
Monitors burn rates to anticipate funding needs
Projects funding needs for period, based on SCAP
Obtains program approval of funding and gathers accounting data
Reviews contract ceilings and options to determine if increases are
required and notifies CO
Prepares and submits PR to CO for timely funding action
Monitors contract and WA ELs
Once funding modification completed notifies WAM to prepare WAF to
increase WA ELs
Reviews funding PR
Freezes committed funds in IFMS
Prepares and issues contract funding modification
Increases contract funding ceilings, if necessary, by modifying contract
Sends contract modification to Research Triangle Park to process
obligation or increase to contract ceiling into IFMS
Monitors contract ELs
Reallocates expenditures to funding actions maintaining ELs
Provides site-specific reallocation attachment with monthly invoice
Monitors and keeps expenditures within contract and WA ELs
51-033-166
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CHAPTER 4 » CONTRACT ADMINISTRATION
Exercising Contract Options
SECTION
4.4
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FAR Federal Acquisition
Regulation
LOE Level of Effort
PO Project Officer
PR Procurement Request
RAC Response Action Contract
4.4 Exercising Contract Options 4-17
4.4.1 Background and Requirement 4-19
4.4.2 Roles and Responsibilities for Exercising Contract Options 4-21
Exhibits
Exhibit 4-6 Roles and Responsibilities for Exercising Contract Options.. 4-22
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,4 Exercising Contract Options
This section explains the background and requirement for exercising
contract options under Response Action Contracts (RACs). It identifies
contract clauses associated with exercising contract options, and describes
the roles and responsibilities of the Project Officer (PO), Contracting
Officer (CO), and contractor in the process.
4.4.1 Background and Requirement
RACs provide two types of contract options that may be exercised by the
CO:
• options to increase contract quantities (level of effort [LOE] or dollars)
• an option to extend the term of the contract
Options to Increase Quantities
RACs specify quantity options for the completion- and term-form
segfnents of the contract:
Term-form quantity options
• LOE (hours)
• subcontracting pool (dollars)
• equipment pool (dollars)
Completion-form quantity options
• completion-form ceiling (dollars)
An option to increase LOE increases the number of hours available for
use. EPA is obligated to order work up to the base quantity of LOE. An
option to increase a base quantity of dollars increases a dollar ceiling in
the contract. The Regions are not obligated to, but may order work up to
the ceilings for the completion-form, equipment, and subcontracting pool
(subpool) segments of the contract.
The availability of options gives EPA a mechanism with which to
encourage efficient performance by the contractor. If a contractor is
not performing satisfactorily, as determined in the semi-annual
Performance Evaluation Board's review, the Region need not exer-
cise an option to increase LOE or ceilings. These options may be
exercised as needed in specified increments of hours or dollars as
listed in the contract.
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
A Region must order work up to the base
quantity of LOE but is not obligated to
order work up to the ceilings for the
completion-form, equipment, and
subpool segments of the RAC.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
Exercising an option is a
unilateral right of the government.
Four RAC clauses, located in contract Section H, provide the
government options to increase quantities:
OPTION FOR INCREASED QUANTITY—TERM-FORM SEG-
MENT (LOE)—allows EPA to increase the estimated LOE in both
the base and option periods.
OPTION FOR INCREASED QUANTITY—SUBCONTRACTING
POOL (TERM-FORM SEGMENT)—allows EPA to increase the
subcontracting pool (dollars) established in the subcontracting
clause.
OPTION FOR INCREASED QUANTITY— EQUIPMENT POOL
(TERM-FORM SEGMENT)—allows EPA to increase the equipment
pool (dollars) established in the equipment pool clause.
OPTION FOR INCREASED QUANTITY—COMPLETION-FORM
SEGMENT—allows EPA to increase the dollar ceiling for the
completion-form portion of RAC for both the base and option
periods.
These clauses specify the LOE or dollar increments that may be used in
exercising options, and the maximum number of times options may be
exercised. Individual contracts should be consulted for option increments,
number of times options may be exercised, and the maximum option
amount.
Option to Extend the Term of the Contract
RACs have a five-year base period of performance with a single option to
extend the term of the contract for an additional five-year period, making
a total of ten years available for the period of performance. The
additional five-year period is referred to as the option period. Exercising
this option is generally referred to as exercising the option period. The
Region may choose whether or not to exercise the option period based on
contractor performance, among other factors.
RAC clause, OPTION TO EXTEND THE TERM OF THE CON-
TRACT—COST-PLUS-AWARD-FEE CONTRACT, in contract
Section H, allows the CO to extend the RAC performance period for
five additional years.
Unilateral Nature of Exercising Contract Options
Exercising an option is a unilateral right of the government. RAC clauses
in Section H define the terms and conditions for exercising contract
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MAY 31, 1995
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CHAPTER 4 » CONTRACT ADMINISTRATION
options. Federal Acquisition Regulation (FAR) 17.207, "Exercise of
Options," specifies the CO's obligations during the process of exercising
options. The procedures for exercising options presented in this section
incorporate FAR 17.207 requirements.
Handling WAs that Extend into the Option Period
Some base-period WAs may not be completed when the CO exercises the
option to extend the contract period of performance. Both term- and
completion-form WAs can be carried over into the option period. How-
ever, base-period LOE and dollars of term-form WAs cannot carry over to
the option period; only option period hours and dollars can be used in the
option period. The RAC clause in Section B, WORK ASSIGNMENTS
(TERM-FORM), states that all hours and associated costs expended
during the option period must be charged to the option period's hours and
estimated costs. Any unused base-period LOE becomes invalid (is "lost")
and any unused dollars must be deobligated from the base period and
reobligated for the option period, except for dollars obligated for comple-
tion-form WAs, which can be used in the option period. When
deobligating money, the CO should be sure to leave in funds to cover key
charges and final adjustments to indirect rates.
Completion-form WAs may carry over into the option period unaffected
by the exercise of the option to extend the period of performance. RAC
clause in Section B, WORK ASSIGNMENTS (COMPLETION-FORM),
states that completion ceilings for completion-form WAs issued during the
base period are not affected by exercising the option to extend the contract
term. The money obligated in the base period to fund completion-form
WAs can continue to be used to complete the WA in the option period.
However, if the WA is amended to increase costs in the option period,
option period funds must be used.
4.4.2 Roles and Responsibilities for Exercising Contract Options
Exhibit 4-6 depicts the responsibilities of the PO, CO, and contractor in
exercising an option to extend a contract's period of performance and in
exercising options to increase LOE or dollar ceilings in the term- and
completion-form segments of the contract. The CO has the final authority
to exercise any option, but this decision is based on the PO's recommen-
dation regarding the Region's need for additional services and a statement
that the contractor's performance is satisfactory or better.
Term-form WAs can extend into
the option period. However,
unused base-period LOE and
dollars cannot carry over to the
option-period.
Completion-form WAs carry over
into the option period, unaffected
by the exercise of the option period.
However, if the WA ceiling is
increased in the option period,
option period dollars must be used
for the increase.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 4-6,
Roles and Responsibilities for
Exercising Contract Options
Individual
Role in Exercising Options
Options for Increases In LOE and Dollars
• Monitors the contractor's performance and estimates projected contract
utilization every quarter
* Determines need for additional LOE and contract dollars
• Submits request to increase LOE and/or dollar quantities to CO
• Prepares a Procurement Request (PR) to increase contract funding
and forwards it to the CO
• Receives a copy of the written unilateral contract modification
• Updates RAC tracking system
Option for Extending the Performance Period
• Submits request for extension of contract to CO
• Prepares a PR to initiate funding for the option period of the contract
and forwards it to the CO
• Receives a copy of the written unilateral contract modification
Options for Increases In LOE and Dollars
• Works in cooperation with the PO to determine the need for increased
LOE and contract dollars, as needed
• Reviews and signs funding PR
• Issues a unilateral contract modification to increase LOE and/or contract
ceilings
• Updates the Region's RAC tracking system
Option for Extending the Performance Period
• Notifies the contractor, in writing, at least 60 days before the end of the
base period, of the government's intent to exercise the option to extend
the period of performance
• Reviews and signs funding PR
• Issues a unilateral contract modification that authorizes the extension
of the term of contract, exercises quantity options for the option period,
and may provide funding
Options for Increases in LOE and Dollars
• Receives from the CO a written unilateral contract modification to
increase the LOE and/or dollar ceilings of the contract
Option for Extending the Performance Period
> Receives from the CO a written notification of intent to extend the period
of performance at least 60 days before the end of the contract base
period
• Receives from the CO the contract modification to extend the period of
performance
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CHAPTER 4 * CONTRACT ADMINISTRATION
Contract Modifications
SECTION
4.5
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FAR Federal Acquisition
Regulation
PO Project Officer
PR Procurement Request
RAC Response Action Contract
SF Standard Form
4.5 Contract Modifications 4-23
4.5.1 Background and Requirement 4-25
4.5.2 Roles and Responsibilities for Making Contract
Modifications 4-27
Exhibits
Exhibit 4-7 Examples of Contract Modifications and Their
Classifications 4-26
Exhibit 4-8 Roles and Responsibilities for Making Contract
Modifications 4-27
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,5 Contract Modifications
This section addresses Response Action Contract (RAC) contract modifi-
cations and discusses the background and requirement and the roles and
responsibilities of the Project Officer (PO) and Contracting Officer (CO)
in making contract modifications.
4.5.1 Background and Requirement
Contract terms and conditions may need to be revised after work com-
mences. These revisions are made through a process called contract
modification and must be made within the general scope of the contract.
A change is within the contract's general scope if it was "fairly and
reasonably within the contemplation of the parties when the contract was
entered into," as defined by the U.S. Supreme Court (Freund v. United
States, 260 U.S. 60, 63 [1922]). A change that is beyond the scope of the
contract is termed a "cardinal change" and cannot be ordered by the
Agency. A cardinal change is a breach of contract. Modifications may be
made only by the CO using the government's Standard Form (SF) 30.
In RACs, contract modifications are used to:
• exercise contract options to extend the period of performance and
increase quantities of dollars or hours
• fund the contract via a funding procurement request (PR) to obligate
funds within the four bulk-funding categories (Program Support [Other
Response], Site Characterization, Removal, and Enforcement)
• incorporate changing EPA needs such as PO changes, RAC Statement
of Work updates, Reports of Work revisions, and changes in govern-
ment property
Unilateral and Bilateral Modifications
Contract modifications fall into two major categories: unilateral and
bilateral. Unilateral modifications require only the CO's signature and are
classified as either administrative modifications or changes that the
contract schedule itself authorizes on a unilateral basis (such as change
orders that are issued under the authority of the CHANGES clause,
exercise of options, or notices of termination). Bilateral modifications
require the signatures of both the CO and the contractor and are used for
changes that cannot be made unilaterally.
Exhibit 4-7 lists examples of contract modifications and their classifica-
tions.
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
Unilateral modifications are signed
only by the CO; the contractor
must implement them upon receipt.
Bilateral modifications require
mutual consent and must be signed
by the CO and the contractor
before they become effective.
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Exhibits. Examples of
Contract Modifications and Their
Classifications
An administrative change to a
contract does not affect the
substance of the contract or the
rights of either party. A substantive
change affects the price, quantity,
quality, or other terms and
conditions of the contract.
A change order is a type of
contract modification that may be
issued only under the CHANGES
clause.
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
An equitable adjustment is the
agreed-upon monetary adjustment
specifically following a change
order.
Purpose of Modification
Substantive changes that fall under the
CHANGES clause1
Exercise of options including extending the
period of performance and quantity options
Termination
Funding
Administrative changes, such as changing the PO
New legal obligations, such as contractor mergers
and name changes
Unilateral Bilateral
X
X
X
X
X
1 These changes may be made unilaterally or bilaterally, depending on time limitations.
51-033-106A
A good test to determine whether a modification may be executed unilat-
erally or bilaterally is to determine whether it is administrative or substan-
tive in nature, and whether the provisions of the contract give the govern-
ment the right to act unilaterally. Administrative changes do not affect the
substance of the contract or the rights of either party and may be made
unilaterally by the CO. Substantive changes affect the price, quantity,
quality, or other terms and conditions of the contract, but must be made
within the scope of the contract. Substantive changes may be made
unilaterally only if the contract provides for it through a contract clause,
such as the CHANGES clause.
The CHANGES Clause
Government contracts, including RACs, contain the CHANGES clause
which permits the CO to make unilateral modifications (both substantive
and administrative) in designated areas within the general scope of the
contract, including changes:
• in the specifications
• in the method or manner of work performance
• in the government-furnished facilities, equipment, materials, services,
or site
• directing acceleration in work performance
The CO makes a unilateral modification under the CHANGES clause
through a written change order. Change orders may be substantive in
nature and usually affect the cost of the contract. When a change order
affects the cost of a contract, a bilateral modification is needed to make an
equitable adjustment. The CO issues a written change order when the
change needs to be instituted quickly and there is not time for a bilateral
modification.
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FAR 52.243-2 CHANGES—COST-REIMBURSEMENT ALTER-
NATE II is incorporated by reference into the RAC. This CHANGES
clause specifies situations where the government may make unilat-
eral changes under the contract.
4.5.2 Roles and Responsibilities for Making Contract Modifications
The CO and the contractor play the major roles in contract modifications,
since the CO is the only individual authorized to issue contract modifica-
tions to the contractor. The PO provides input on the requirement to the
CO and oversees the contractor's implementation of the change called for
by the modification. Exhibit 4-8 defines the specific roles of the individu-
als involved in making contract modifications.
Individual
Role in Making Contract Modification
• Monitors the contract and verbally notifies the CO when a contract
modification is necessary
• Prepares contract modification request memorandom
• Gives the CO historical and technical information regarding the
modification
• Prepares a PR for incremental funding if needed
• Reviews the contract modification request
• Determines the type of change (administrative or substantive)
Administrative Changes
• Decides if an administrative change is necessary
• Reviews the funding request to determine funding availability and
approves the PR
• Prepares a written modification to the contract on SF 30 and makes
necessary financial adjustments
• Sends a copy of the modification to the contractor
Substantive Changes
• Decides if a substantive change is necessary
• Determines whether the substantive change falls under the CHANGES
clause and whether a change order is necessary
• Issues a change order through unilateral modification, if time is limited
* Negotiates, issues, and signs bilateral modifications for equitable
adjustments following change orders and for other substantive changes
made bilaterally
• Receives the unilateral modification from the CO and implements the
modification
• Negotiates with the CO, signs the bilateral modification, and implements
the bilateral modification
51-033-107A
The CO is the only individual who
may issue contract modifications.
Exhibit 4-8. Roles and
Responsibilities for Making
Contract Modifications
4-27
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CHAPTER 4 » CONTRACT ADMINISTRATION
Contract Claims and Disputes
SECTION
4.6
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Table of Contents
Acronyms
ADR Alternative Dispute
Resolution
CO Contracting Officer
FAR Federal Acquisition
Regulation
IBCA Department of Interior
Board of Contract Appeals
PO Project Officer
RAC Response Action Contract
WA Work Assignment
WAM Work Assignment Manager
4.6 Contract Claims and Disputes 4-29
4.6.1 Background and Requirement 4-31
4.6.2 Roles and Responsibilities for Handling Contract
Claims and Disputes 4-34
Exhibit 4-9 Claims and Disputes Process 4-33
Exhibit 4-10 Roles and Responsibilities for Handling Contract
Claims and Disputes 4-34
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,6 Contract Claims and Disputes
This section provides background information on the requirements for
handling contract claims and disputes and under Response Action Con-
tacts (RACs) and identifies the responsibilities of the individuals involved
in the process.
4.6.1 Background and Requirement
Although EPA and a contractor may enter into a contract with the inten-
tion of performing in good faith, disputes may occur during the course of
the contract. To avoid disputes between EPA and the contractor, an
effective tool that is often used is partnering. Partnering is usually con-
ducted during the scoping meeting prior to work assignment (WA) initia-
tion when partners attempt to delineate the WA and resolve any issues
anticipated to arise during WA performance.
When disputes arise, they may arise between the prime contractor and
EPA or between the subcontractor and the prime contractor. If a dispute
arises between a subcontractor and the prime contractor and EPA is a
factor in the dispute, the prime contractor may pursue the dispute with
EPA.
The contract requires that disputes be submitted to the Contracting Officer
(CO) for resolution. The CO unilaterally decides the dispute even though
he or she represents only one of the contracting parties.
As discussed in the Federal Acquisition Regulation (FAR), EPA should try
to avoid a claim by resolving contractual issues by mutual agreement
between the CO and the contractor either before a claim is filed, or at any
time during the disputes process. The government and contractor should
either try to reach an agreement on their own or use alternative dispute
resolution (ADR) procedures, as discussed in FAR 33.201, to increase the
likelihood for a relatively inexpensive and expeditious resolution of the
issue. In ADR, a neutral person is used to facilitate the resolution and
officials from both parties may participate in the process.
If the dispute cannot be resolved on their own or by using ADR, the
contractor may submit a written claim to the CO. A "claim," as defined by
the FAR 52.233-1, is "a written demand by one of the contracting parties
seeking, as a matter of right, the payment of money, the adjustment or
interpretation of contract terms, or other relief arising under or relating to
the contract." Claims that exceed $100,000, or any claim regardless of the
amount when using ADR, must be accompanied by certification that:
• the claim is made in good faith
4-31
To the extent possible, the CO and
contractor should try to avoid a
claim by resolving contractual
issues through mutual agreement.
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The CO has 60 days to issue a
decision on a claim or notify the
contractor when the decision will
be forthcoming.
ADR may be used to resolve a
claim at any point in the process.
• supporting data is accurate and complete to the best of the contractor's
knowledge
• the amount requested accurately reflects the contract adjustment for
which the contractor believes the government is liable
A claim does not include such items as vouchers, invoices, or other
routine requests for payment that are not in dispute when submitted.
However, a routine request for payment may be converted into a claim if
the contractor makes a formal demand subsequent to an unreasonable
delay in payment or disagreement by the government.
The CO must issue a decision on the claim within 60 days of receiving the
contractor's written claim. For certified claims over $100,000, the CO
must issue a decision within 60 days or notify the contractor of the
"reasonable" time within which a decision will be issued. The CO's
written decision must specify the areas of agreement and disagreement.
Upon the Region's discretion, the CO may allow the contractor to respond
to the decision by issuing a revised claim. The contractor's revised claim
may include all or specific parts of the originally submitted claim. The
CO then makes a final decision on the revised claim. The submittal of the
revised claim is not mandated by the FAR; however, this procedure may
be beneficial in that it may avoid the involvement of higher officials.
During the claims process, the contractor must continue to proceed with
the performance of the contract. EPA must pay interest on the amount
found due and unpaid from the day the CO receives the claim or the day
the payment was due, whichever is later.
The contractor may appeal the CO's final decision to the Department of
Interior Board of Contract Appeals (IBCA) or the U.S. Court of Federal
Claims. At any time during the claims and disputes process, the CO and
contractor may use ADR procedures to settle the issue or any portion of
the claim. Exhibit 4-9 illustrates the claims and disputes process.
The Contract Disputes Act of 1978 and FAR clauses specify the require-
ments and describe the procedures to follow when a dispute arises.
The Contract Disputes Act of 1978, as amended by the Administra-
tive Disputes Resolution Act, governs the claims and disputes pro-
cess.
FAR Subpart 33.2, DISPUTES AND APPEALS, prescribes the
policies and procedures for contract-disputes made by the contractor
against the contract, and requires that the disputes clause be included
in the contract.
The DISPUTES clause in contract Section I (FAR 52.233-1) states
that the contract is subject to the Contract Disputes Act of 1978 and
describes to the contractor the procedures for handling disputes.
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CHAPTER 4 » CONTRACT ADMINISTRATION
Contractor request for
payment or contract
adjustment
Controversy
or
delay
Claim asserted
(certification required for
contractor claims over $100,000)
Revised claim submitted
(based on CO's
feedback)
U.S. Court of
Federal Claims
1 For claims of $100,000 or under, the CO must issue a decision within 60 days. For certified claims over
$100,000, the CO must issue a decision within 60 days or notify the contractor of the "reasonable* time
within which a decision will be issued.
At any time in the process, the CO and contractor may use AOR to settle the issue.
51-033-88B
Under RACs, claims may relate to differences in opinion in the contract
arising from:
• routine requests for payment
• changes made to the statement or scope of work
• equitable adjustments resulting from change orders
More commonly, claims may relate to a particular work assignment (WA).
For example, these claims may originate from differences of opinion
arising from changing field conditions or changes in a WA's scope of
work, especially during the remedial action phase. Whether a claim
4-33
Exhibit 4-9, Claims and Disputes
Process
Claims may be made relating to
the contract or particular WAs
issued under the contract.
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Exhibit 4-10. Roles and
Responsibilities for Handling
Contract Claims and Disputes
relates to the contract or a WA under the contract, the same procedures for
filing the claim apply.
4.6.2 Roles and Responsibilities for Handling Contract Claims and Disputes
The CO has the primary role in handling a contractor's claim and making
a decision on it. The Work Assignment Manager (WAM) and Project
Officer (PO) contribute by identifying emerging differences of opinion
regarding the rights or obligations of either party and notifying the CO
about the differences in opinion.
The specific roles and responsibilities of individuals involved in the
process of handling claims and disputes are identified in Exhibit 4-10.
Individual
Role in Handling Contract Claims and Disputes
Identifies any emerging difference of opinion
Notifies the CO of the disagreement and provides information to the CO
regarding the controversy
May be a witness at the IBCA or U.S. Court of Federal Claims hearing
Identifies any emerging difference of opinion
Notifies the CO of the disagreement and provides information to the CO
regarding the controversy
May be a witness at the IBCA or U.S. Court of Federal Claims hearing
Attempts to resolve the disagreement using ADR procedures
Consults with the PO and WAM, as necessary, to understand the reasons
for the disagreement
Receives the contractor's claim
Receives counsel from and review of final decision from the Office of
General Counsel
Studies the history of the contractor's claim and prepares and submits
to the contractor a written decision about the claim
Prepares and submits a modification to the contract, if the decision is
in the contractor's favor
Receives and reviews the contractor's revised claim, if applicable
Prepares and submits a "final" decision on the contractor's revised claim,
if applicable
May be a witness at the IBCA or U.S. Court of Federal Claims hearing
Implements the decision of the appeal, if the decision is in the favor of
the contractor
Attempts to resolve the dispute using ADR procedures
Prepares and submits a claim to the CO
May prepare and submit a revised claim, at the discretion of the Region
May appeal the CO's decision to the IBCA or U.S. Court of Federal
ClailT1S 51433-81
4-34
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CHAPTER 4 » CONTRACT ADMINISTRATION
Subcontract Review and Consent
SECTION
4.7
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
DCA Design and Construction
Advisor
FAR Federal Acquisition
Regulation
PO Project Officer
RAC Response Action Contract
WA Work Assignment
WAM Work Assignment Manager
4.7 Subcontract Review and Consent 4-35
4.7.1 Background and Requirement 4-37
4.7.2 Roles and Responsibilities in Subcontract Review and Consent.... 4-40
Exhibit 4-11 Subcontract Information 4-39
Exhibit 4-12 Roles and Responsibilities in Subcontract Review
and Consent 4-40
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,7 Subcontract Review and Consent
This section describes the background and requirement for subcontract
review and consent under Response Action Contracts (RACs) for subcon-
tracts issued by the prime contractor for specialized services not provided
by the prime or its Team subcontractors. For information on subcontrac-
tor oversight, see section 5.14.
4.7.1 Background and Requirement
Subcontracting extends the prime contractor's expertise to respond to
work assignment (WA) requirements and allows specialized services to be
procured for specific tasks. In RACs, there are two types of subcontrac-
tors:
• Team subcontractors
• Non-Team subcontractors
Team Subcontractors
Team subcontractors are included in the RAC prime contractor's proposal
and are part of the prime contractor's Team. Team subcontractors may be
used by the prime contractor to work on any assignment that the prime
deems appropriate. Team subcontractors are established during contract
negotiations with the prime contractor, and no further EPA consent to
Team subcontractors during contract performance is required.
Non-Team Subcontractors
Non-Team subcontractors provide specialized services for the prime
contractor that ordinarily cannot be provided by the prime or its Team
subcontractors. Specific activities generally requiring use of non-Team
subcontractors include, but are not limited to:
• initial response actions
• well-drilling
• analytical services (when not provided by the government)
• special consultants to support technical projects or to serve as expert
witnesses
• aerial mapping
• surveying
• fencing
• construction activities associated with a remedial action
Subcontracting efforts pertaining to specific activities issued under
completion-form WAs are charged against the overall completion ceiling.
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All subcontracting pertaining to specific activities required under term-
form WAs is financed through the subcontracting pool, which is a
subelement of the contract's term-form segment.
All non-Team subcontracts are competitively solicited by the prime
contractor unless written approval to the contrary is obtained from the
Contracting Officer (CO).
Federal Acquisition Regulation (FAR) Part 44, Subcontracting
Policies and Procedures, and three RAC clauses pertain to subcon-
tracting:
SUBCONTRACTING POOL FOR SITE-SPECIFIC INVESTIGA-
TIONS AND CONSTRUCTION WORK (TERM-FORM SEG-
MENT), in contract Section B, describes the difference between
Team subcontractors and subpool subcontractors, requires all non-
Team subcontracts to be competed unless CO gives written approval
otherwise, and limits subcontracting to the prime contractor.
SUBCONTRACT CONSENT, in contract Section G, requires the
contractor to submit information to the CO for consideration before
the CO consents to a subcontract.
SUBCONTRACTS (COST-REIMBURSEMENT AND LETTER
CONTRACTS), in contract Section I, defines which subcontracts
require consent by EPA, requires that the contractor provide reason-
able advance notification of intent to subcontract, and lists the
information the contractor must provide to the CO for subcontract
consent.
Consent
Non-Team subcontractors are used by the prime contractor on an as-
needed basis only. According to FAR 52.244-2, the contractor must notify
the CO reasonably in advance of entering into any subcontract if:
• the proposed contract is a cost-reimbursement, time-and-materials, or
labor-hour type
• the proposed contract is fixed-price and exceeds either $25,000 or
5 percent of the total estimated contract cost (except where the contrac-
tor has an approved purchasing system and the subcontract is within
the scope of such approval)
• the proposed subcontract has experimental, developmental, or research
work as one of its purposes
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CHAPTER 4 » CONTRACT ADMINISTRATION
• the proposed subcontract, not a facilities contract, provides for the
fabrication, purchase, rental, installation, or other acquisition of special
test equipment valued at more than $10,000, or of any items or facili-
ties
The contractor must obtain the CO's written consent before placing any
subcontract for which advance notification is required by the SUBCON-
TRACTS clause in Section I, of the contract. If the CO's written consent
was not obtained, the CO may ratify in writing a subcontract and the
ratification will constitute the consent of the CO. For construction
subcontracts, the contractor should provide an engineering estimate to
EPA before the subcontract is bid.
Additional information, identified in the SUBCONTRACTS clause, is
required with advance notification for the following subcontract types:
• cost-reimbursement, time-and-materials, or labor-hour type subcon-
tracts expected to exceed $10,000, including any fee
• any subcontract expected to exceed $100,000
• a RAC subcontract that is one of a number of subcontracts with a
single subcontractor for the same or related supplies or services that, in
the aggregate, are expected to exceed $100,000
The contractor provides the required information to the CO so the CO can
decide whether to consent to the subcontract. Exhibit 4-11 identifies the
additional information required for those types of subcontracts.
The contractor provides to the CO its proposed subcontract along
with information regarding selection of the subcontractor.
51-033-77B
4-39
Lost-minute changes in EPA
policy may affect RAC equipment
procedures.
The contractor should submit an
engineering estimate to EPA before
receiving bids on construction
subcontracts.
Exhibit 4-11. Subcontract
Information
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CO consent is not always required
if the contractor's purchasing
system has been approved and the
subcontract is within the scope of
such approval.
Exhibit 4-12. Roles and
Responsibilities in Subcontract
Review and Consent
If the contractor has an approved purchasing system and the subcontract is
within the scope of such approval, the contractor may enter into cost-
reimbursement, time-and-materials, labor-hour type, or fixed-price type
subcontracts without CO consent, unless the subcontract is for the acquisi-
tion of major systems, subsystems, or their components. The contractor's
purchasing system is reviewed according to FAR Subpart 44.3.
The Work Assignment Manager (WAM), Project Officer (PO), and
Design and Construction Advisor (DCA) assist the CO in reviewing a
subcontractor's proposal for technical adequacy and cost reasonableness.
The CO makes the ultimate decision to consent to the subcontract and
conveys written consent to the prime contractor.
4.7.2 Roles and Responsibilities in Subcontract Review and Consent
The WAM, PO, and DCA assist the CO in reviewing a subcontractor's
proposal for technical adequacy and cost reasonableness, but the CO
makes the ultimate decision regarding consent. Exhibit 4-12 identifies
the roles and responsibilities of the WAM, PO, CO, DCA, and the prime
contractor.
Individual
Role in Subcontract Review and Consent
Reviews proposed subcontract for technical adequacy and cost
reasonableness
Assists CO and WAM in reviewing proposed subcontract for technical
adequacy and cost reasonableness
Ensures that prime contractor's notification of intent to subcontract
contains all necessary information
May forward WAM, PO, and DCA input on subcontract to prime
Discusses and resolves subcontract issues with the contractor
Consents to issuance of subcontract
Reviews proposed subcontracts for technical adequacy
Design and
Constructor Advisor'
• Provides reasonable advance notification of intent to subcontract
Provides CO with information required by SUBCONTRACTS clause
Competitively solicits subcontracts
51-033-89D
4-40
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CHAPTER 4 « CONTRACT ADMINISTRATION
Handling Conflict of Interest Issues
SECTION
4.8
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Table of Contents
Acronyms
CO Contracting Officer
COI Conflict of Interest
OGC Office of General Counsel
PO Project Officer
PRP Potentially Responsible Party
QAB Quality Assurance Branch
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
4.8 Handling Conflict of Interest Issues 4-41
4.8.1 Background and Requirement 4-43
4.8.2 Roles and Responsibilities for Handling Conflict
of Interest Issues 4-43
Exhibits
Exhibit 4-13 Roles and Responsibilities for Handling Conflict
of Interest Issues 4-44
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CHAPTER 4 » CONTRACT ADMINISTRATION
4,8 Handling Conflict of Interest Issues
This section identifies roles and responsibilities of the Work Assignment
Manager (WAM), Project Officer (PO), and Contracting Officer (CO) in
addressing conflict of interest (COI) issues under Response Action
Contracts.
4.8.1 Background and Requirement
Because COI is a contract-sensitive issue, the background and requirement
for handling COI are addressed in section 2.3.1.
4.8.2 Roles and Responsibilities for Handling Conflict of Interest Issues
Before work is assigned, the PO may request the contractors to perform a
preliminary COI screen and use the results of the screen to determine
assignment of work among contractors. After the work assignment (WA) is
issued, the CO evaluates the contractor's COI certification or disclosure and
determines whether COI exists. The Quality Assurance Branch (QAB) and the
Office of General Counsel (OGC) or Regional Counsel may assist the CO in
the COI determination. The roles of the WAM, PO, CO, QAB, OGC, Regional
Counsel, and contractor in handling COI are shown in Exhibit 4-13.
4-43
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Exhibit 4-13. Roles and
Responsibilities for Handling
Conflict of Interest Issues
Individual
Role in Handling COI Issues
Assembles potentially responsible party (PRP) list and prepares WA
statement of work (SOW) description for preliminary COI screen before
WA is issued
Reviews COI certification or COI disclosure to assist CO
P(
, • Sends PRP list and WA SOW description to contractor for preliminary
J COI screen before WA is issued
• Evaluates preliminary COI screen and assists program in assigning
work
• Reviews COI certification or COI disclosure to assist CO
Evaluates COI certification or COI disclosure
Requests additional information from contractor if needed to assist in
COI determination
Requests assistance from program office, QAB, and OGC or Regional
Counsel in evaluating COI if needed
Makes final COI determination, taking all recommendations and
information into consideration
Issues final COI determination in writing to contractor
Provides a copy of the COI determination to QAB
Determines effect of COI decision on work in progress
QAB and OGC or
Regional Counsel
Program Office
• Provide assistance in evaluating COI at request of CO
• Give consultation to CO if work must be cancelled due to COI
• Evaluates COI information and provides other support at CO's request
Conducts preliminary COI screen before WA is issued
Provides COl-related information to CO
Discloses immediately any actual or potential COI that arises during
WA performance
Submits COI certification within 20 days of receiving a WA
51-033-84A
4-44
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CHAPTER 4 » CONTRACT ADMINISTRATION
Managing Regional Crossovers
SECTION
4.9
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Table of Contents
Acronyms
CO Contracting Officer
COI Conflict of Interest
PO Project Officer
RAC Response Action Contract
WA Work Assignment
WAM Work Assignment Manager
4-45
4.9.1 Background and Requirement 4-47
4.9.2 Roles and Responsibilities for Managing Regional Crossovers 4-48
Exhibits
Exhibit 4-14 Roles and Responsibilities for Managing
Regional Crossovers 4-49
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CHAPTER 4 » CONTRACT ADMINISTRATION
4,9 Managing Regional Crossovers
This section addresses the requirements for requesting contractor capacity
from another Region due to Regional capacity shortage or conflict of
interest (COI) situations.
4.9.1 Background and Requirement
The need for Regional crossovers for Response Action Contracts (RACs)
may result from capacity shortfall or COI situations. To facilitate
Regional crossover, the Regions should adhere to the guidelines
presented in this section for acquiring support from other Regions and
managing crossovers.
The Project Officer (PO) and Contracting Officer (CO) determine the
need for Regional crossover from a capacity shortfall or COI before a
work assignment (WA) is issued. If a Region does not have the capacity
under its RACs to execute a WA, it may request Regional crossover.
Insufficient capacity is most likely to occur at the end of the base period
or option period when a contract does not have enough dollar or hour
capacity remaining to continue site work in progress and all options have
been exercised and utilized.
COI may be identified during the preliminary COI screen performed
before a WA is issued (see sections 2.3.1 and 4.8). The CO evaluates the
information and determines whether COI exists and whether it is neces-
sary to issue the WA to another contractor. If all RAC contractors in a
Region are conflicted, Regional crossover may be needed.
After the need for Regional crossover is identified, the PO or CO in the
Region that needs additional capacity (the receiving Region) should call
another Region (the lending Region) and request contractor capacity to
administer the WA(s). If Regional crossover cannot be accomplished in
this manner, or in emergency situations, a Region may channel its request
through EPA Headquarters.
Several general procedures should be followed to enable the lending
Region to maintain control over crossover management while ensuring
that the receiving Region accepts its share of responsibility for the cross-
over:
• the receiving Region is expected to adhere to the terms established by
the lending Region
• the receiving Region provides all PO and CO functions, unless the
lending Region determines otherwise
• the receiving Region must meet performance (award) fee process and
time tables
4-47
Regional crossover may be needed
during capacity shortfalls or in
certain COI situations.
When Regional crossover occurs,
the receiving Region should adhere
to the terms established by the
lending Region.
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the receiving Region should pay budgetary costs (award fee, program
management, and EPA travel for the PO/CO) and workload costs
(providing appropriate levels of PO and CO support as required by the
lending Region)
funding must cover the WA costs which include program support costs
and the base and performance (award) fees.
RAC Clause EPA REGIONAL CROSSOVERS hi contract
Section H addresses Regional crossovers.
4.9.2 Roles and Responsibilities for Managing Regional Crossovers
The CO, with input from the PO and the Work Assignment Manager
(WAM), determines if a capacity shortfall exists or if a COI situation
necessitates a Regional crossover. After crossover is initiated, the lending
and receiving Regions negotiate and agree upon the responsibilities of all
involved parties. General roles and responsibilities are provided in
Exhibit 4-14. Indivduals' responsibilites may vary depending on Regional
negotiations for a particular crossover event.
4-48
MAY 31, 1995
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Individual
(receiving Region)
(lending Region)
CO
>>—>
(receiving Region)
CO
*- '
(lending Region)
Role in Managing Regional Crossover
• Provides input to assist receiving Region CO in determining if Regional
crossover is needed
.. ,, . -May perform WAM functions when Regional crossover occurs
(receiving Region) . Negotiates responsibilities for issuing and managing the crossover WA
CHAPTER 4 » CONTRACT ADMINISTRATION
Exhibit 4-14. Roles and
Responsibilities for Managing
Regional Crossovers
Provides input to assist receiving Region CO in determining if Regional
crossover is needed
Ensures that funding is available to cover Regional crossover
May request Regional crossover from lending Region
May perform PO functions for WA when Regional crossover occurs
Coordinates with lending Region to comply with lending Region's Region-
specific contract documentation (statements of work, independent
government cost estimate, etc.) and any other conditions required by
lending Region
Negotiates responsibilities for issuing and managing the crossover WA
Tracks capacity and ensures that there is capacity to lend
May perform PO functions for WA when Regional crossover occurs
Provides receiving Region with lending Region-specific contract
documentation and any other conditions required by lending Region
Negotiates responsibilities for issuing and managing the crossover WA
Identifies need for Regional crossover
May request Regional crossover from lending Region
Coordinates with lending Region to comply with lending Region's Region-
specific contract documentation (statements of work, independent
government cost estimate, etc.) and any other conditions required by
lending Region
May perform CO functions when Regional crossover occurs
Negotiates responsibilities for issuing and managing the crossover WA
May consent to receiving Region request for Regional crossover
Provides receiving Region with lending Region-specific contract
documentation and any other conditions required by lending Region
Receives funding package from receiving Region and issues WA
May function as CO for the crossover WA
Negotiates responsibilities for issuing and managing the crossover WA
EPA • Considers requests for Regional crossover when difficulties arise in
Headquarters obtaining Regional crossover between Regions
• Negotiates responsibilities for issuing and managing the crossover WA
51 -033-148B
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MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
Implementing Control Measures for
llnerable Contracting Areas
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
A/E Architect and Engineering
CBI Confidential Business
Information
CO Contracting Officer
FAR Federal Acquisition
Regulation
OFPP Office of Federal Procure-
ment Policy
OMB Office of Management
and Budget
OSWER Office of Solid Waste
and Emergency
Response
PRP Potentially Respnsible
Party
RA Remedial Action
RAC Response Action Contract
WA Work Assignment
4.10 Implementing Control Measures for Vulnerable Contracting Areas 4-51
4.10.1 Background and Requirement 4-53
4.10.2 Roles and Responsibilities for Implementing Control Measures
for Vulnerable Contracting Areas 4-56
Exhibit
Exhibit 4-15 Roles and Responsibilities for Implementing Control
Measures for Vulnerable Contracting Areas 4-57
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CHAPTER 4 » CONTRACT ADMINISTRATION
4,10 Implementing Control Measures for Vulnerable Contracting
Areas
This section provides background information on vulnerable and sensitive
contracting areas in Response Action Contracts (RACs) and describes the
roles and responsibilities of the individuals involved in implementing
control measures.
4.10.1 Background and Requirement
Certain RAC activities may place the Agency in a vulnerable position if
adequate controls are not implemented. In fact, for some of these vulner-
able areas, if adequate controls are not implemented the activities per-
formed by the contractor may be construed as or become inherently
governmental functions (see Chapter 2). As such, EPA must implement
control measures to ensure that contractors are not involved in these
activities. There are four general categories of vulnerable contracting
areas in RAC:
• advisory and assistance services
• activities involving sensitive contracting areas
• general contracting areas requiring special contract controls
• specific contract work areas requiring controls
Advisory and Assistance Services
Advisory and assistance services, as defined by Federal Acquisition
Regulation (FAR) Part 37.2, are "those services acquired from nongovern-
mental sources by contract to support or improve Agency policy develop-
ment, decision making, management, and administration or to support or
improve the operation of management systems." Architect and engineer-
ing (A/E) services were formerly exempt from the advisory and assistance
services definition in the FAR; however, the Office of Federal Procure-
ment Policy (OFPP) no longer exempts them. A/E services are now
subject to Office of Management and Budget (OMB) Circular A-120,
"Guidelines for the Use of Advisory and Assistance Services."
Advisory and assistance services may take the form of information,
advice, opinions, alternatives, conclusions, recommendations, training, or
direct assistance from the RAC contractor. The following types of RAC
services may put the Agency in a vulnerable position:
• giving individual expert opinions
• providing studies, analyses, and evaluation
• conducting management and professional support services
• performing engineering and technical services
4-53
A/E services are no longer
exempt from the advisory and
assistance services definition.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Four areas in RACs are defined as
sensitive contracting areas.
Although these services are a legitimate and efficient way to improve
government operations, control measures must be implemented to ensure
that advisory and assistance services are not:
• used to perform policy, decision-making, or managerial tasks that are
the direct responsibility of Agency officials
• used to bypass or undermine personnel ceilings, pay limitations, or
competitive employment procedures
• used specifically to influence legislation
• used to obtain professional or technical advice that is readily available
within EPA or another Federal agency
• contracted for on a preferential basis to former government employees
Sensitive Contracting Areas
Sensitive contracting areas, as defined by EPA Order 1900.2, "Contract-
ing at EPA," and Chapter 2 of the Contracts Management Manual,
"Procurement Request and Rationale Document," may be ordered or
delivered under RACs and therefore may put the Agency in a vulnerable
or sensitive position if adequate controls are not implemented. The
following sensitive areas are most likely to be encountered under RACs:
• support services such as sample analyses or feasibility studies that will
be used by EPA personnel to develop policy
• any support involving EPA policy or regulatory interpretation, such as
staffing hotlines, attending conferences, community relations efforts,
or conducting EPA training courses
• any situation that permits or might permit contractors to gain access to
confidential business information (CBI) or any other sensitive informa-
tion
• any situation where it might be assumed that contractors are EPA
employees or representatives
Prior to the solicitation of RAC, the Headquarters Placement Contracting
Officer (CO) verified that adequate management controls were planned
for each RAC. The Regional COs verify that each RAC work assignment
(WA) has adequate management controls for any activities involving
sensitive contracting areas.
General Contracting Areas Requiring Special Contract Controls
Some RAC activities are not sensitive contracting areas, but still merit
special EPA control measures. EPA Order 1900.2 defines specific con-
tracting areas that require special contract controls. Under RACs, special
contract controls are necessary to avoid:
4-54
MAY 31, 1995
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CHAPTER 4 » CONTRACT ADMINISTRATION
• unauthorized contractor access to CBI or any other sensitive informa-
tion, such as potentially responsible party (PRP) document review or
work performed documentation
• situations where the contractor may be assumed to be an EPA em-
ployee such as when conducting community relations activities and
performing oversight activities
• the appearance of personal services in situations where contractors
share office space with EPA employees, such as in a site trailer
Specific Contract Work Areas Requiring Controls
EPA has identified several RAC work areas or tasks that may put EPA in a
vulnerable position if control procedures are not followed. These include:
• Community Relations Support—The RAC contractor may support
EPA in community relations activities, including preparing the commu-
nity relations plan and preparing for and supporting public meetings or
public hearings. The RAC contractor could potentially be mistaken for
an EPA employee.
• Audits, Surveys, and Inspections Preparation—The RAC contractor
may conduct on-site audits, surveys, and inspections at sites, facilities,
and other locations. These services may require contractor support to
convey existing EPA policy and regulations and provide information
on EPA's behalf as part of these activities.
• Litigation Support—The RAC contractor may prepare and provide
expert testimony during litigation. The contractor also may provide
technical assistance during litigation, such as assisting in the prepara-
tion of affidavits and attending and providing technical support at
meetings with PRPs. Providing litigation support may require the
RAC contractor to review CBI of other contractors.
• Negotiation Support—The RAC contractor may provide EPA-PRP
negotiation support and may be present during negotiations to provide
technical support to EPA or the Department of Justice negotiator. RAC
contractor personnel may be mistaken for EPA personnel if control
procedures are not followed.
• Design Construction Cost Estimate Preparation—The RAC con-
tractor may prepare the final construction cost estimate as part of the
design package. This is considered a sensitive contracting area because
a prime contractor can achieve greater profit through increased subcon-
tract costs.
• Remedial Action (RA) Subcontractor Management—During the
performance of an RA WA, it may be necessary for the RAC contractor
to modify the RA subcontract to allow for changes in the WA. This is
considered a sensitive contracting area because a prime contractor can
achieve greater profit through increased subcontract costs.
4-55
Six specific work areas or tasks
require special controls to avoid
vulnerable positions.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
The following documents establish EPA policy and provide special
management and control measures for vulnerable contracting areas:
• EPA Contracts Management Manual, Chapter 2, "Procurement
Request and Rationale Document."
• FAR 37.2, ADVISORY AND ASSISTANCE SERVICES.
• OFPP Letter 93-1, "Management Oversight of Service
Contracting."
• OFPP Letter 92-1, "Inherently Governmental Functions."
• OFPP Letter 91-2, "Service Contracting."
• OMB Circular A-76, "Performance of Commercial Activities."
• OMB Circular A-120, "Guidelines for the Use of Advisory and
Assistance Services."
• EPA Order 1900.1, "Personal Services."
• EPA Order 1900.2, "Contracting at EPA."
• Office of Solid Waste and Emergency Response (OSWER)
Directive 9230.0-15, "Role of Community Interviews in the
Development of a Community Relations Program for
Remedial Response," June 15, 1990.
• OSWER Directive 9202.1-12, "Guidance on Preparing
Independent Government Cost Estimates," July 29, 1993.
• RAC clauses, SCREENING BUSINESS INFORMATION
FOR CLAIMS OF CONFIDENTIALITY and TREATMENT OF
CONFIDENTIAL BUSINESS INFORMATION in contract
Section H.
4.10.2 Roles and Responsibilities for Implementing Control Measures for
Vulnerable Contracting Areas
The roles and responsibilities of the individuals involved in implementing
control measures for vulnerable contracting areas are generally the same
across each of the four categories. However, in some instances, there may
be control measures that relate to a specific area. A general description of
the roles and responsibilities of the individuals involved in controlling
vulnerable contracting areas is shown in Exhibit 4-15.
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MAY 31, 1995
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CHAPTER 4 » CONTRACT ADMINISTRATION
Individual
Role in Controlling Vulnerable Contracting Areas
Ensures that RAC contractor staff clearly identify themselves as such
Ensures that RAC contractor personnel are not mistaken for EPA personnel
and do not have access to GBI when sharing office space with EPA
personnel
Monitors contractor's performance to ensure that contractor staff do not
represent themselves as EPA employees when conveying information to
the public
Reviews and approves deliverables before performance of the on-site
review and monitors contractor compliance with EPA's requirements
Ensures that the RAC contractor does not disclose the government's
enforcement strategy to others while attending meetings with PRPs and
does not reveal to the contractor sensitive enforcement information
Provides necessary control measures to ensure that RAC contractor
personnel are not mistaken for EPA personnel and includes a memorandum
to the file that certifies that the contractor assisting in negotiations only
provides technical guidance and does not develop the negotiation strategy
Reviews the technical portion of the RA subcontract consent package
and informs the CO of any potential problems or inconsistencies
Reviews requests for changes to the RA WA
Reviews CBI releases and prepares a written certification that EPA has
followed required procedures for handling CBI
Ensures that RAC contractor personnel are not mistaken for EPA personnel
and do not have access to CBI when sharing office space with EPA
personnel
Ensures that RAC contractor staff clearly identify themselves as such
Monitors contractor's performance to ensure that contractor staff do not
represent themselves as EPA employees when conveying information to
the public
Reviews and approves deliverables before performance of the on-site
review and monitors contractor compliance with EPA's requirements
Provides necessary control measures to ensure that RAC contractor
personnel are not mistaken for EPA personnel
Reviews the technical portion of the RA subcontract consent package
and informs the CO of any potential problems or inconsistencies
Reviews requests for changes to the RA WA
Examines RAC WAs and confirms that partiality, favoritism, and contractor
COI are not factors
Documents that the RAC contractor's work was reviewed and final
decisions were made by the Agency
Reviews WAs and ensures that the work is within the RAC scope of work
Reviews CBI releases to ensure that CBI requirements are being followed
Evaluates the cost portion of the subcontractor's proposal and decides
whether to consent to the proposed subcontract
Reviews, approves, and formally documents in a technical direction or
WA amendment changes to the RA WA
Displays badges that clearly identify themselves as contractor personnel
when dealing with the public
Introduces themselves as contractor personnel at the beginning of
interviews and public meetings
Prepares deliverables in accordance with EPA procedures and submit
them to EPA for review and approval before release
Complies with RAC clauses in the use of CBI
Exhibit 4-15. Roles and
Responsibilites for
Implementing Control Measures
for Vulnerable Contracting Areas
4-57
51-033-164A
MAY 31, 1995
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CHAPTER 4 « CONTRACT ADMINISTRATION
Small and Small Disadvantaged Business
Utilization, Contractor Participation in
Mentor-Protege Program, and Use of
Labor Surplus Areas
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
LSA Labor Surplus Area
RAC Response Action Contract
SDBU Small Disadvantage
Business Utilization
4.11 Small and Small Disadvantaged Business Utilization, Contractor Participation
in Mentor-Protege Program, and Use of Labor Surplus Areas .................. 4-59
4.11.1 Background and Requirement [[[ 4-61
4.1 1 .2 Roles and Responsibilities for Monitoring Contractor Compliance
with Subcontracting Plan [[[ 4-61
Exhibits
Exhibit 4-1 6
Roles and Responsibilities for Monitoring Contractor
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CHAPTER 4 » CONTRACT ADMINISTRATION
4,11 Small and Small Disadvantaged Business Utilization,
Contractor Participation in Mentor-Protege Program, and Use
of Labor Surplus Areas
This section identifies responsibilites for implementing the Small and
Small Disadvantaged Business Utilization (SDBU), Mentor-Protege, and
Labor Surplus Area (LSA) programs under Response Action Contracts
(RACs). The primary mechanism for implementing these programs under
RACs is the contractor's subcontracting plan.
4.11.1 Background and Requirement
Because the SDBU, Mentor-Protege, and LSA programs are considered
contract-sensitive, the background and requirements for these programs
are addressed in section 2.3.10.
4.11.2 Roles and Responsibilities for Monitoring Contractor Compliance with
Subcontracting Plan
The Contracting Officer (CO) monitors contractor compliance with the
subcontracting plan. The roles of the CO and the contractor are defined in
Exhibit 4-16.
Individual
Role in Monitoring Contractor Compliance
with Subcontracting Plan
Monitors contractor compliance with subcontracting plan
Ensures contractor fulfills SDB subcontracting reporting requirements
Enforces liquidated damages clause if necessary
Develops subcontracting plan for small businesses and SDB concerns
May participate in Mentor-Protege program
Meets subcontracting plan goals
Reports on SDB subcontracting using standard forms 294 and 295
Appoints liaison for LSA subcontracting program
Exhibit 4-16. Roles and
Responsibilities for
Monitoring Contractor
Compliance with
Subcontracting Plan
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CHAPTER 4 » CONTRACT ADMINISTRATION
Annual Allocation of
Non-Site-Specific Costs
SECTION
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
SAB Superfund Accounting
Branch
S/SID Site Spill Identifier
4.12 Annual Allocation of Non-Site-Specific Costs 4-63
4.12.1 Background and Requirement 4-65
4.12.2 Roles and Responsibilities for Annual Allocation 4-66
Exhibits
Exhibit 4-17 Roles and Responsibilities for Annual Allocation 4-67
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,12 Annual Allocation of Non-Site-Specific Costs
This section addresses annual allocation, a multistep process that distrib-
utes program support costs, base and performance (award) fees, and other
non-site-specific costs to sites and programwide activities for later cost
recovery.
4.12.1 Background and Requirement
The Comprehensive Environmental Response, Compensation, and Liabil-
ity Act, as amended by the Superfund Amendments and Reauthorization
Act, authorizes EPA to recover all response costs associated with cleaning
up hazardous waste sites. A large portion of EPA's response costs consists
of payments to response action contractors. In order for these costs to be
adequately supported in cost recovery litigation against the potentially
responsible parties, a defendable, logical, and supportable accounting
methodology must be used to assign costs to specific sites.
Site-specific contract costs are accounted for by EPA on a site-specific
basis. However, contractors' non-site-specific costs are accounted for in a
general account and must be allocated to the sites for later recovery.
Annual allocation is the process by which non-site-specific costs are
distributed to specific sites.
In annual allocation, costs are allocated to sites and categorized as
follows:
• Program support—payments made to the contractor for management
and administration of the contract as a whole. This includes contract
fees except for fees applicable to individual sites.
• Site support nonsite activities—payments for activities that relate to,
support, or benefit the sites worked on by the contractor. The contrac-
tor completes and submits a nonsite activities schedule with the annual
allocation report.
• Capital equipment—equipment with an individual cost of more than
$5,000 and a useful life of greater than one year. Capital equipment
costs are allocated to the sites and activities that benefit from the
equipment. The contractor may complete a capital equipment
depreciation schedule with the annual allocation report.
• Startup costs/mobilization—costs generally incurred in the first year
and associated with efforts that benefit the entire contract term, such as
quality assurance plans. Startup costs are allocated to all sites and
activities that receive a benefit from the startup costs. A startup costs
schedule is completed and submitted with an award allocation report.
4-65
During annual allocation,
non-site-specific costs are
distributed to individual sites
for use in cost recovery.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The costs and fees are allocated on a pro rata basis, based on the benefits
received or support provided by the activities.
After receiving a list of invoices paid by EPA each fiscal year, the contrac-
tor prepares the annual allocation report. The annual allocation report
submission includes the following:
• summary of allocation
• master allocation schedule
• statement of allocation methodology
• listing of all invoices paid during the Federal fiscal year
« certification of contractor's report
• schedules for startup costs, capital equipment depreciation, and nonsite
activities, if applicable
The ANNUAL ALLOCATION OF NONSITE COSTS clause in
Section G of the contract requires the contractor to perform annual
allocation and specifies the annual allocation process.
Detailed instructions on how to prepare the annual allocation report
are in "Instructions for Performing the Annual Allocation of Non-
Site-Specific Costs," Superfund Accounting Branch, Financial
Management Division, Office of the Comptroller, September 1991.
The EPA Contracting Officer (CO) is responsible for ensuring that the
contractor complies with the annual allocation clause and follows the
Superfund Accounting Branch (SAB) instructions for preparing the annual
allocation report.
4.12.2 Roles and Responsibilities for Annual Allocation
The annual allocation process involves interaction among three parties:
the CO, the SAB of the Financial Management Division, and the
contractor. The roles of these parties are identified in Exhibit 4-17.
4-66
MAY 31, 1995
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Individual
Role in Annual Allocation
• Ensures that the contractor complies with the annual allocation
requirements in the contract
Superfund • Provides the contractor with the total amount of all invoices paid for the
Accounting Branch annual allocation period within 90 days of the end of the Federal fiscal
year (or within 90 days of submission of the last invoice following contract
expiration) as required by the contract
• Works with the contractor to reconcile the total amount of invoices
paid for the annual allocation period
• Reviews contractor's draft annual allocation report and notifies the
contractor in writing of any necessary corrections
• Requests contractor to submit a final annual allocation report
Identifies which nonsite activity costs should be allocated to sites
and categorizes costs
Identifies costs charged to sites with site/spill identifiers (S/SIDs) and
without S/SIDs
Redistributes costs for sites which initially did not have S/SIDs,
but which were subsequently assigned an EPA S/SID
Works with EPA to reconcile the paid invoice amounts provided
by EPA with contractor records
Prepares a draft annual allocation report containing a master allocation
schedule; other schedules for startup costs, capital equipment
depreciation, and nonsite activities; and a summary of allocation report
Submits two copies of draft annual allocation report to the SAB
within 60 days of SAB notification to proceed
Submits two copies of the final annual allocation report to the SAB
within 30 days of written notice from EPA
Submits summary allocation report on a DOS computer disk in Lotus
1-2-3 or ASCII format
51-033-112B
CHAPTER 4 » CONTRACT ADMINISTRATION
Exhibit 4-17. Roles and
Responsibilities for Annual
Allocation
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
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CHAPTER 4 » CONTRACT ADMINISTRATION
Annual Closeout
SECTION
4.13
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
CPRNB Cost Policy and Rate
Negotiations Branch
FAB Financial Analysis Branch
FACO Financial Administrative
Contracting Officer
MATS Management Audit Tracking
System
PO Project Officer
RAC Response Action Contract
4.13 Annual Closeout 4-69
4.13.1 Background and Requirement 4-71
4.13.2 Roles and Responsibilities for Annual Closeout 4-72
Exhibits
Exhibit 4-18 Roles and Responsibilities for Annual Closeout 4-72
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CHAPTER 4 » CONTRACT ADMINISTRATION
4,13 Annual Closeout
Response Action Contract (RAC) costs are closed out annually to enable
EPA to manage contract costs efficiently. Annual closeout follows an
established set of requirements and procedures, as explained in this
section.
4.13.1 Background and Requirement
RACs are cost-reimbursement, level-of-effort contracts with a potential
performance period of 10 years. To enable EPA to effectively manage
RACs for this extended performance period, the ALLOWABLE COST
AND PAYMENT clause in contract section I, requires an annual closeout
of the total costs and fees claimed for each fiscal year, including resolu-
tion of final indirect costs (see RAC clause INDIRECT COSTS in con-
tract section G). The RAC Statement of Work (Program Support, Ongoing
Administrative Support, Task 2—Contract Integrity) also states that the
contractor may be required to provide an annual closeout report.
RAC clause ALLOWABLE COST AND PAYMENT, in contract
Section I, requires an annual closeout of total claimed costs and fees
for each completed contract fiscal year.
RACs are closed out annually, according to the contractor's fiscal year.
The contractor must submit cost claims to EPA, including information on
direct and indirect costs incurred at the contract level and at the work
assignment level. The contractor also must provide a list of invoice and
voucher amounts submitted during the contractor's fiscal year. EPA audits
the contractor's submittal of direct and indirect costs claimed. After the
audit, final direct and indirect cost rates are negotiated by the contractor
and EPA. The contractor invoices EPA to correct for discrepancies be-
tween the contractor's original submittal claim and the negotiated rates.
Finally, the contractor provides EPA with a release discharging EPA from
further liability for payments for that fiscal year.
Indirect Cost Rates
Contractors are reimbursed for indirect costs through indirect cost rates.
Typically, indirect cost rates are a percentage of direct labor or a percent-
age of "total cost input" (total direct costs plus overhead costs).
The Contracting Officer (CO) establishes provisional billing rates for
indirect costs for each contract. The contractor invoices EPA monthly,
using the provisional billing rate, which is subject to adjustment when the
final rates are established during the annual closeout procedure.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 4-18. Roles and
Responsibilities for Annual
Closeout
The policies and procedures for establishing final indirect cost rates are
articulated in Federal Acquisition Regulation Subpart 42.7.
4.13.2 Roles and Responsibilities for Annual Closeout
Upon receipt of the contractor's annual claims, the following EPA person-
nel participate in the annual closeout process: the CO, the Project Officer
(PO), the Financial Administrative Contracting Officer (FACO), and
personnel from the Financial Analysis Branch (FAB) and the Cost Policy
and Rate Negotiation Branch (CPRNB). The roles and responsibilities of
EPA personnel involved with the annual closeout process and the contrac-
tor are listed in Exhibit 4-18.
Individual
Role in Annual Closeout Process
Assists the CO, as needed, during direct cost negotiations
Reviews and approves invoices
Reviews contractor's schedule of direct and indirect costs and
requests an audit by FAB of contractor's direct and indirect costs
claimed
Negotiates contract-specific direct costs
Works with FACO to resolve any questioned direct or indirect costs
Incorporates the final indirect cost rate into the contract
Responsible for completing any Management Audit Tracking System
(MATS) forms (within 150 days) and forwarding them to FACO
Reviews the final invoice and the contractor's release and identifies
any estimated and unsettled costs outlined in the contractor's release
Executes the final release and forwards a copy of the release statement
to the FACO
Financial Analysis • Reviews the direct and indirect cost submittals to ensure accuracy and
Branch completeness
• Coordinates audits of the contractor's submittals with the CPRNB
• Tracks audit to resolution through the MATS
• Forwards copy of audit to the CO
Financial Admini-
strative Contracting
Oicer
Negotiates indirect costs and non-contract-specific direct costs
Works with CO to resolve any questioned direct or indirect costs
Cost Policy andRate * Reviews the audit reports and determines the issues to be negotiated
Negotiation Branch * Negotiates indirect costs and non-contract-specific direct costs
• Executes the final indirect rate agreement
Submits annual closeout claim to the CO within 150 calendar days of
the end of contractor's fiscal year
Submits debit or credit voucher for any variances between claimed and
negotiated costs
Submits a release statement to the CO after the negotiation of direct
and indirect costs is completed
51-033-132B
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CHAPTER 4 » CONTRACT MANAGEMENT
Bibliography
SECTION
4.14
MAY 31, 1995
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CHAPTER 4 « CONTRACT MANAGEMENT
Guidance Documents
EPA/OERR. January 1989. ARCS Work Assignment Management Field
Guide. OSWER Directive #9242.6-01.
EPA/OERR. August 1989. ARCS Contracts Users'Manual. Publication
No. 540/G-89/008.
EPA/OARM. December 1989. Contract Administration.
EPA/PCMD. August 1991. Contracts Management Manual.
EPA/OSDBU. August 1992. Preferential Procurement Program Hand-
book for Project Officers, Contract Officers, and Small Business Special-
ists
EPA/OERR. May 1993. Guidance for Scoping the Remedial Design.
PB93-963332 9355.0-43.
EPA/OS WER and OAM. February 1994. Cost Management Manual for
the Remedial and Enforcement Programs. Document 9202.1-20. PB94-
963401. EPA540-R-93-085.
EPA/OWPE/CERCLA Enforcement Division, Contracts and Planning
Branch, Contracts Management Section. February 16,1994. Regional
Enforcement Support Services (ESS) Users' Manual.
EPA/OAM. March 1994. Procedures Regarding Conflicts of Interest
(Draft).
EPA/SRO and OAM. March 1994. Draft Regional Crossover Procedures
for Superfund Contracts.
EPA/OERR. Undated. Guidance Document for Value Engineering Review
During Remedial Design.
Memoranda
EPA/OS WER. June 27,1990. "Implementation of Value Engineering for
Corps of Engineers Managed Superfund Remedial Design and Remedial
Action Projects". Memorandum from Henry Longest to Waste Manage-
ment Division Directors: Regions I-X.
EPA. September 21,1992. "Final Instructions and Procedures for Imple-
menting ARCS Annual Close-Outs". Memorandum from William R.
Topping.
EPA/OAM. March 1994. "Approval of Advisory and Assistance Ser-
vices". Memorandum from RAC Advisory and Assistance Services
Package.
4-75
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EPA. March 9, 1994. "Draft Guidance on Accounting for Contract Billing
Adjustments". Memorandum from William Cooke.
EPA. March 17, 1994. "OAM's Proposed Procedures Regarding Conflicts
of Interest". Memorandum from Margaret Lenshen, Chief, Contracts
Management Section, Region I, to Ika Joiner, Superfund Acquisition
Manager, Office of Acquisitions Management.
EPA/OARM. April 21,1994. "FY 1994 Activity Codes". Memorandum
from Jack Shipley, Director, Financial Management Division.
EPA/OARM. July 19, 1994. "Establishment of Fiscal Year 1995 Account
Numbers". Memorandum from Carl F. Doluka, Chief, Financial Reports
and Analysis Branch.
EPA/OARM. August 8,1994. "Changes to EPA's Account Code Struc-
ture". Memorandum from Kathryn S. Schmou to all EPA employees.
EPA/OARM. September 20,1994. "Guidance on IFMS Account Code
Structure". Memorandum from Elizabeth Craig, Director, Budget Divi-
sion.
Regulatory and Other Sources
Cochran, Steven R. 1993. Mentor-Protege Program Desk Guide. Revised
Edition, Holbrook & Kellogg Inc., Vienna, Virginia.
Commerce Clearing House, Inc., Chicago, Illinois. 1994. Federal Acquisi-
tion Regulation as of January 1,1994, 52.243-2 Changes—Cost-Reim-
bursement.
Educational Services Institute. October 1993. Changes, Claims, and
Disputes.
EPA/OERR. May 1990. Value Engineering. Quick Reference Fact Sheet.
Publication 9355.5-03FS.
EPA/SAB/FMD, Office of the Comptroller. September 1991."Instructions
for Performing the Annual Allocation of Non-Site-Specific Costs".
EPA. April 1992. "Superfund: Qualified Disadvantaged Business Utiliza-
tion in State Response".
EPA. March 31, 1990. Minimum Standards for EPA Contractors Conflict
of Interest Plans for Response Action Contracts (Draft).
EPA. 1993 and 1994. Requests for Proposals for Response Action
Contracts for Remedial, Enforcement Oversight, and Non-Time-Critical
Removal Activities at Sites of Release or Threatened Release of Hazard-
ous Substances in Regions 1, 6, 7, and 8.
4-76
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CHAPTER 4 » CONTRACT MANAGEMENT
EPA. October 1993. EPA Draft Final Conflict of Interest Rule: Summary
of Key Provisions.
EPA/OSWER. February 1994. Strategy Study for Response Action
Contracts.
Federal Publications Inc. 1993. Changes & Claims in Government Con-
struction.
Nash and Schooner. 1992. The Government Contracts Reference Book.
4-77
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Response Action Contract
(RAQ Uses' Guide
Wimel: Reference Guide
Issuing and
Managing Work
Assignments
CHAPTER
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Table of Contents
5.1 Introduction 5-1
5.2 Roles and Responsibilities for Issuing and Managing Work Assignments... 5-3
5.3 Allocating Site-Specific Work Assignments to Contractors 5-7
5.3.1 Background and Requirement 5-9
5.3.2 Roles and Responsibilities for Allocating Work Assignments 5-11
5.4 Developing the Work Assignment Statement of Work 5-13
5.4.1 Background and Requirement 5-15
5.4.2 Roles and Responsibilities for Developing the Work Assignment
Statement of Work 5-17
5.5 Preparing and Using the Independent Government Cost Estimate 5-19
5.5.1 Background and Requirement 5-21
5.5.2 Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate 5-26
5.6 Preparing the Work Assignment Package and Issuing the Work
Assignment 5-29
5.6.1 Background and Requirement 5-31
5.6.2 Roles and Responsibilities for Preparing the Work
Assignment Package and Issuing the Work Assignment 5-32
5.7 Work Plan Technical Review and Cost Evaluation 5-35
5.7.1 Background and Requirement 5-37
5.7.2 Roles and Responsibilities for Work Plan Evaluation 5-38
5.8 Work Assignment Funding 5-41
5.8.1 Background and Requirement 5-43
5.8.2 Roles and Responsibilities for Work Assignment Funding 5-44
5.9 Establishing and Changing the Expenditure Limit 5-47
5.9.1 Background and Requirement 5-49
5.9.2 Roles and Responsibilities for Establishing and Changing the
Expenditure Limit 5-51
5.10 Issuing Technical Direction 5-53
5.10.1 Background and Requirement 5-55
5.10.2 Roles and Responsibilities for Issuing Technical Direction 5-56
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5.11 Amending the Work Assignment 5-59
5.11.1 Background and Requirement 5-61
5.11.2 Roles and Responsibilities for Amending the Work Assignment and
Issuing Changes for a Remedial Action Work Assignment 5-63
5.12 Wage Rates and Surety Bonds for Remedial and Non-Time-Critical
Removal Action Subcontracts 5-65
5.12.1 Background and Requirement 5-67
5.12.2 Roles and Responsibilities for Wage Rates and Surety Bonds for
Remedial and Non-Time-Critical Removal Action Subcontracts 5-69
5.13 Value Engineering 5-71
5.13.1 Background and Requirement 5-73
5.13.2 Roles and Responsibilities for Value Engineering 5-76
5.14 Contractor Oversight 5-79
5.14.1 Background and Requirement 5-81
5.14.2 EPA's Relationship to Contractors and Subcontractors 5-83
5.14.3 Roles and Responsibilities in Contractor Oversight 5-83
5.15 Site Demobilization 5-85
5.15.1 Background and Requirement 5-87
5.15.2 Roles and Responsibilities for Site Demobilization 5-88
5.16 Work Assignment Closeout Procedures 5-89
5.16.1 Background and Requirement 5-91
5.16.2 Roles and Responsibilities for Work Assignment Closeout 5-92
5.17 Bibliography 5-95
Exhibits
Exhibit 5-1 Roles and Responsibilities for Allocating Work Assignments..5-11
Exhibit 5-2 Roles and Responsibilities for Developing the Work
Assignment Statement of Work 5-18
Exhibit 5-3 Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate 5-27
Exhibit 5-4 Roles and Responsibilities for Preparing the Work
Assignment Package and Issuing the Work Assignment 5-33
Exhibit 5-5 Roles and Responsibilities for Work Plan Evaluation 5-39
Exhibit 5-6 Roles and Responsibilities for Work Assignment Funding 5-45
Exhibit 5-7 How to Use the Expenditure Limits to Manage a Work
Assignment 5-50
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Exhibit 5-8 Roles and Responsibilities for Establishing and Changing
the Expenditure Limit 5-52
Exhibit 5-9 Overview of Issuing Technical Direction 5-56
Exhibit 5-10 Roles and Responsibilities for Issuing Technical Direction.... 5-57
Exhibit 5-11 Roles and Responsibilities for Amending the Work
Assignment and Issuing Changes for a Remedial Action
Work Assignment 5-64
Exhibit 5-12 Roles and Responsibilities for Wage Rates and Surety
Bonds for Remedial and Non-Tme Critical Removal Action
Subcontracts 5-70
Exhibit 5-13 Roles and Responsibilities for Value Engineering 5-77
Exhibit 5-14 Roles and Responsibilities for Contractor Oversight 5-84
Exhibit 5-15 Roles and Responsibilities for Site Demobilization 5-88
Exhibit 5-16 Roles and Responsibilities for Work Assignment Closeout.... 5-93
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
This chapter provides background information and identifies roles and
responsibilities for preparing, issuing, and administering program-support
and site-specific work assignments (WAs) under Response Action Con-
tracts (RACs).
5,1 Introduction
Information on issuing and administering WAs is presented in this chapter
in 14 sections. The topics of these sections are:
• distributing work
• developing the WA statement of work
• preparing the independent government cost estimate for the WA
• preparing WA documentation and issuing the WA
• reviewing the contractor's work plan
• funding WAs
• establishing and changing expenditure limits
• issuing technical direction
• amending WAs
• approving wage rates and surety bonding for remedial action and non-
time-critical removal subcontracts
• value engineering
• overseeing contractor work performance
• overseeing site demobilization
• overseeing WA closeout
Each section includes a discussion of the background and legal basis for
the requirement, including general contract provisions and Federal
Acquisition Regulation clauses. The purpose of this discussion is to
provide sufficient background information to promote a complete under-
standing of the processes described in Volume 2: Process Guide.
WA issuance and management is performed primarily by the designated
contract managers: Work Assignment Managers (WAMs), Project Offic-
ers (POs), and Contracting Officers (COs). These individuals function as
the core contract management team that administers and manages RACs.
The Performance Evaluation Board members, the Superfund budget
managers, and the Financial Management Center staff at Research Tri-
angle Park manage the CMT and also are routinely involved in RAC
contract administration. This guide focuses on the specific duties of the
5-1
The RAC WAMs, POs and COs
function as the core contract
management team responsible for
issuing and managing WAs.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
designated contract managers. Where other parties are involved in a
process, their roles are identified but are not elaborated.
Each of the following sections contains a detailed roles and responsibili-
ties matrix that identifies the responsibilities of the WAM, PO, CO, other
EPA entities, and the contractor in a particular process.
5-2
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Roles and Responsibilities for Issuing and
Managing Work Assignments
SECTION
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,2 Roles and Responsibilities for Issuing and Managing Work
Assignments
Administration of each Response Action Contract (RAC) is handled
primarily by a core contract management team (CMT), composed of the
Work Assignment Managers (WAMs), Project Officer (PO), and Contract-
ing Officer (CO). The WAMs, PO, and CO all play active roles in issuing
and managing work assignments (WAs). They work together to ensure
that the government only orders work in accordance with the contract
scope of work and present a unified front to the contractor in defining the
government's requirements. The CMT works together in developing the
WA package that is used as the basis for issuing WAs. Individual CMT
members' responsibilities are summarized below.
The WAM's primary responsibility is to monitor the contractor's progress
in accomplishing the WA objectives within agreed-upon budgets and
schedules. The WAM's duties include the following:
• developing the WA
• reviewing and recommending approval of the contractor's work plan
(WP)
• setting expenditure limits for the WA
• issuing technical direction and preparingWA amendments, as needed,
during the life of the WA
• reviewing contractor progress reports for WA activities
• reviewing and accepting WA deliverables;
• reviewing and recommending approval of WA costs on contractor
invoices
• overseeing contractor performance of WA activities
• reviewing and recommending action on value engineering (VE)
proposals
• evaluating contractor performance
The WAMs maintain daily contact with the contractor and are the most
knowledgeable regarding specific WA activities. Because of this, the
WAMs often provide WA-level information to the PO for his or her use in
initiating requests to the CO for funding, exercising options, and other
contract modifications.
The PO is the primary contact for using the contract. The PO assists the
Program in distributing work, and is responsible for reporting progress by
the contractor and funding the contract from appropriate accounts. The PO
determines the reasonableness of RAC costs during WP approval, moni-
tors and reports overall quality of contractor performance, ensures that
5-5
The RAC WAMs, POs, and COs are
responsible for issuing and
managing WAs.
The WAM prepares the WA and
oversees work performance.
The PO oversees performance and
ensures that adequate funding and
contract options are in place to
support all WAs.
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Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The CO reviews, approves, and
issues WA actions.
control measures are implemented for vulnerable contracting areas,
recommends action on VE proposals, and ensures that the Superfund
Program contracting strategy is implemented. The PO initiates requests to
the CO for contract modifications, such as funding, exercising options,
and statement of work changes. The PO prepares justifications for provi-
sion of government property to the contractor, reviews contractor progress
reports, and approves contractor invoices. The PO works together with the
CO to establish Regional WA management procedures that deviate from
or supplement the procedures in this guide. The PO serves as the WAM on
program support (PS) WAs.
The CO reviews, approves, and issues all WA actions. The CO is the only
individual that can authorize contract expenditures. The CO:
• reviews contractor progress reports and evaluates contractor perfor-
mance on PS WAs
• approves the WAM as a designated contract manager for RACs
• follows established government contracting requirements and docu-
ments deviations from established Agency protocols
• coordinates with the PO to establish and document Regional WA
management procedures
The WAM, PO, and CO maintain their respective contract document files
required by the EPA Records Control Schedule, as well as other docu-
ments needed to fulfill their contract and WA administration and manage-
ment responsibilities (see Chapter 11, "Record Management").
Sections 5.3 through 5.16 of this chapter contain detailed matrices that
identify the roles and responsibilities of the WAM, PO, CO, other EPA
entities, and the contractor in specific processes. The contractor's respon-
sibilities are included to convey a complete picture of a process, rather
than dictate or limit the contractor's contractual obligations.
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Allocating Site-Specific Work
Assignments to Contractors
SECTION
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
COI Conflict of Interest
LOE Level of Effort
PIRS Performance Index Rating
Score
PO Project Officer
RAC Response Action Contract
RD Remedial Design
RI/FS Remedial Investigation/
Feasibility Study
SOW Statement of Work
WA Work Assignment
WAAM Work Assignment Allocation
Matrix
WAM Work Assignment Manager
5.3 Allocating Site-Specific Work Assignments to Contractors 5-7
5.3.1 Background and Requirement 5-9
5.3.2 Roles and Responsibilities for Allocating Work Assignments 5-11
.5-11
Exhibit 5-1 Roles and Responsibilities for Allocating Work
Assignments
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,3 Allocating Site-Specific Work Assignments to Contractors
This section provides background information on allocating site-specific
work assignments (WAs) under Response Action Contracts (RACs) and
cites roles and responsibilities of EPA Regional personnel in the work
allocation process.
5.3.1 Background and Requirement
Site-specific WAs are issued to RAC contractors for remedial investiga-
tion/feasibility studies (RI/FSs), remedial designs (RDs), remedial ac-
tions, and other technical work areas specified in the contract statement of
work (SOW). WAs are issued by the Region managing the contract or, in
the case of a Regional crossover agreement, by the Region lending the
contractor services. Section 4.9 details how the crossover WA decisions
are made.
WAs are distributed by the Project Officer (PO)/program to individual
contractors based on several factors. These factors include the following:
• average twelve-month Performance Index Rating Score (PIRS) rating
• conflict of interest (COI) screen
• capacity availability
• site-specific experience/knowledge
• related special experience/knowledge
The Region uses the Work Assignment Allocation Matrix (WAAM) to
document the analysis of these for every WA issued. Each factor is
described below.
Average Twelve-Month PIRS Rating
The average twelve-month PIRS is calculated on a "rolling basis" by
combining the composite PIRS for the two most recent performance
(award) fee evaluation periods, as described in section 5.3.3 of the Pro-
cess Guide. The PIRS is a numerical score that provides a ranking of the
relative performance of all RAC contractors in the Region. It includes
both site-specific performance on technical WAs and program support
performance on the overall contract. The PIRS is used as a primary factor
in allocating new WAs based on the ranking of contractors within the
Region. In Regions with only two RAC contractors, other factors, such as
capacity or COI considerations, may take precedence over PIRS.
COI Screen
The Region may require RAC contractors to perform a COI screen prior
to WA issuance to identify any COI issues. The Contracting Officer (CO)
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
makes determinations regarding COI as described in section 4.8. Contrac-
tors will not be assigned projects where the CO determines that COI
exists.
Capacity Availability
When assigning new work, the PO should ensure that contract base
quantities (minimums) are used while staying within level-of-effort (LOE)
and dollar ceilings established in the contract. In order to make a valid
determination of available contract capacity, the PO must keep a running
total of both the obligated and estimated number of hours necessary to
complete assigned projects for each contractor. The PO should consider
follow-on work when assessing contractor capacity. If follow-on work is
anticipated, the PO must allow for that when assigning new work. For
example, if a contractor is performing well during the RI/FS phase and the
PO feels that the contractor should continue with that site through RD and
implementation oversight, then the hours necessary to complete the site
should be considered in determining that contractor's available capacity.
Site-Specific Experience/Knowledge
A contractor may have specific experience or knowledge of a particular
site. The contractor's previous experience on the site is considered in
allocating work. For example, when issuing an assignment for RD, the
contractor that conducted the RI/FS may be the preferred candidate due to
this factor. This factor will apply often when issuing continuation WAs.
Related Special Experience/Knowledge
Although all RAC contractors are capable of performing any work area
within the contract SOW, the Region may observe that certain contractors
and/or site managers exhibit specific technical expertise or strengths. The
Region should take advantage of contractor skills by matching contrac-
tors' demonstrated expertise with projects requiring these skills or abili-
ties.
The Region should rely primarily on first-hand observations of contractor
performance to assess a contractor's specific technical expertise. Because
the contractors' personnel and associated capabilities will change over the
five- to ten-year contract period, RAC contractors may voluntarily submit
an annual statement of qualifications (25-page limit) to the PO. (EPA will
not reimburse the contractors for preparing annual qualifications state-
ments.) The annual qualifications statement should include information
about the changes or improvements in the contractor's personnel, capabili-
ties, and corporate experience. In particular it should focus on the avail-
ability of specific site managers and other key personnel. This assists POs
in matching the particular strengths or expertise of a contractor to specific
sites.
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
The PO/program should also ensure that each of the Region's RAC
contractors receives enough work to fulfill the contract LOE minimums
specified in the base and option periods of the term-form segment of the
contract.
5.3.2 Roles and Responsibilities for Allocating Work Assignments
The PO/program is responsible for allocating site-specific WAs. Where
there are multiple POs, an individual may be designated as the capacity
coordinator for the Region. The roles of the Work Assignment Manager
(WAM), PO, and CO are shown in Exhibit 5-1.
Individual
Role in Allocating Work Assignments
For sites where work is in progress, recommends continuing work with
current contractor or transferring work to another contractor
Provides documentation supporting recommendation for continuing or
transferring work
Assists program in assigning WAs to contractors based on pertinent
factors
Completes WAAM
May reassign WA to another contractor if original contractor's performance
deemed unsatisfactory
Makes COI determinations
Gives concurrence with contractor selection at time of WA issuance
51-033-74A
The Region should order work to
meet contract LOE minimums.
Exhibit 5-1. Roles and
Responsibilities for Allocating
Work Assignments
5-11
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Developing the Work Assignment
Statement of Work
SECTION
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
LOE Level of Effort
PO Project Officer
PS Program Support
QC Quality Control
RA Remedial Action
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WBS Work Breakdown Structure
5.4 Developing the Work Assignment Statement of Work 5-13
5.4.1 Background and Requirement 5-15
5.4.2 Roles and Responsibilities for Developing the Work
Assignment Statement of Work 5-18
Exhibits
Exhibit 5-2 Roles and Responsibilities for Developing the Work
Assignment Statement of Work 5-18
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,4 Developing the Wort Assignment Statement of Work
This section provides background information on developing the state-
ment of work (SOW) for a Response Action Contract (RAC) work assign-
ment (WA) and discusses the roles and responsibilities of EPA Regional
personnel in developing the SOW.
5.4.1 Background and Requirement
Under RACs, the Region orders work through written WAs. The heart of
the WA is the SOW that defines the WA requirements and constitutes the
legal agreement between EPA and the contractor regarding terms of WA
performance and deliverables.
RAC clauses WORK ASSIGNMENTS (TERM-FORM SEGMENT)
and WORK ASSIGNMENTS (COMPLETION-FORM SEGMENT)
in contract Section B require that the WA scope of work prepared by
EPA falls within the overall scope of work of the contract.
The SOW:
• describes the work requirements and the criteria for determining
whether they are met
• establishes the standards for measuring effective performance during
WA and upon WA completion
• creates a baseline from which to determine the degree, extent, and
ramifications of proposed WA changes
Two general types of SOWs are appropriate in RAC WAs: functional and
design. These two types of approaches can be combined in one SOW as
needed.
• Functional SOW—There are two subtypes within the functional SOW
category: purely functional and performance.
Purely functional—Describes the WA technical objectives in
detail but avoids prescribing the tasks required to complete
the work.
Performance—Dictates a task-by-task approach to
performing the work and can include performance-based
specifications for the product(s).
5-1 s
The heart of the WA is the SOW.
A functional SOW describes
technical objectives and may
specify WA tasks, but does not
prescribe the method of
performance.
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A design SOW is very detailed and
employs plans or blueprints.
The term-form WA requires a
specified LOE to be expended
in accomplishing the SOW and
can include either a functional
or a design SOW.
The completion-form WA
stipulates detailed product
specifications and acceptance
criteria and can include either a
functional or a design SOW.
Since RAC WAs specify tasks in accordance with the contract SOW work
breakdown structure (WBS), a RAC WA is a performance functional
SOW, rather than a purely functional SOW.
• Design SOW—Sets forth precise design specifications and quality
control (QC) requirements. A remedial action (RA) SOW is a design
SOW because the contractor is required to implement a very detailed
remedial design, containing design and material specifications and QC
requirements. Design specifications increase the government's account-
ability for claims that arise during contract performance regarding
design defects, since the government generally accepts responsibility
for correctness and adequacy of design specifications.
Term-Form WAs
Term-form WAs describe the scope of work in general terms and obligate
the contractor to devote a specified level of effort (LOE) for a stated
period of time. This type of WA is commonly referred to as an LOE WA,
since the contractor is reimbursed for hours spent in WA effort. Under a
term-form WA, the contractor is obligated to provide a specified number
of hours on a best-effort basis performing WA-specified tasks during an
agreed-upon time period. The term-form WA must describe and specify
acceptance criteria for deliverables.
Completion-Form WAs
A completion-form WA describes the scope of work by stating a definite
goal or target and specifying end products. The products should be
delivered within the estimated WA cost as a condition for payment of fees.
If the contractor cannot complete the products within the stated estimated
cost, EPA may elect to provide the contractor with additional funds to
complete the work without providing any additional fee.
Regions are encouraged to use completion-form WAs for program support
and site-specific work where contractors will deliver end products and
where the work can be defined well enough to permit development of
estimates within which the contractor can be expected to complete the
work. The SOW of a completion-form WA must include product specifi-
cations and must delineate Agency inspection and acceptance criteria for
the products.
Use of Completion- and Term-Form for Program Support WAs
The Office of General Counsel informally advises that completion-form
WAs should be issued only when there is an end product. Day-to-day
contract management activities are not likely to produce an "end product."
Therefore, the completion-form WA is not the proper vehicle to use for
assigning all types of program support (PS) work. In the case of mobiliza-
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
tion, equipment, and contract closeout, when there are specific end
products, a completion-form WA can be used.
While there is a need for consistency in EPA contracting, it is necessary to
exercise good business sense, as well as good common sense, when
administering any contract. This means that not all Regions will issue the
same number of completion- and term-form WAs for PS. The contracting
goal is to enable the Agency to complete its mission. In addition, the
Agency needs to track dollars spent, as well as contractor activity and
results. Therefore, if there is a definitive SOW and an end product, a
completion-form WA should be used. If the SOW is not definitive and
there is no tangible end product, such as in day-to-day contract manage-
ment, the term-form WA is the appropriate mechanism.
Similarities of Completion- and Term-Form SOWs
Although the completion-form WA focuses on delivery of an end product
and the term-form WA requires provision of a specified number of hours
on a best-effort basis toward an end goal, the WA SOWs for completion-
and term-form are quite similar:
• Both forms require a detailed delivery schedule and descriptions of
deliverables.
• Both forms require acceptance criteria for deliverables.
• Both forms define a series of tasks to be performed, in accordance with
the contract SOW work breakdown structure (WBS).
In fact, the only difference between the SOWs in the two forms may be a
more comprehensive and detailed description of the end product deliver-
ables in completion-form SOWs.
Work Breakdown Structure
The contract SOW, RAC Attachment A, contains a detailed WBS, descrip-
tions of work areas and tasks in the WBS, and a list of subtasks that the
Region may choose to stipulate in WAs. The WBS is the basis for the
government and contractor cost estimates and dictates how the contractor
will scope, schedule, track, and report work. Regardless of the type of WA
(term- or completion-form), the WA SOW must be based on the contract
SOW and use the same WBS, although the WBS for the WA SOW may be
more detailed than the contract-level WBS. The Region may specify some
or all of the subtask activities identified in the contract SOW and may
specify additional subtask activities that fall within the scope of the task.
The contract SOW WBS consists of work areas, tasks, and subtasks.
Work areas fall under four major categories:
• Program Support (Other Response)
• Fund-Lead Site-Specific Activities
5-17
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The WA SOW must use the WBS
of the contract SOW but may take
the WBS to a greater level of
detail.
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Exhibit 5-2. Roles and
Responsibilities for
Developing the Work
Assignment Statement of
Work
• Site-Specific Enforcement Support
• Other Site-Specific Technical Assistance
5.4.2 Roles and Responsibilities for Developing the Work Assignment Statement
of Work
The Work Assignment Manager (WAM) has primary responsibility for
preparing the WA SOW, with the Project Officer (PO) and Contracting
Officer (CO) performing review and approval functions. The roles of the
individuals involved in SOW development are shown in Exhibit 5-2.
Individual
Role in WA SOW Development
Defines work requirement
Develops WBS
Defines WA deliverables and establishes delivery schedule
Determines period of performance
Determines whether WA should be issued as term- or
completion-form
Writes the WA SOW
Provides input on WA SOW development, assisting the WAM in defining
special WA terms and assumptions for cost estimating
Assists WAM in determining whether the WA should be issued as term-
or completion-form
Reviews WA SOW for clarity and conformance with contract SOW
Reviews and approves WA SOW
51-033-71A
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Preparing and Using the Independent
Government Cost Estimate
SECTION
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Table of Contents
Acronyms
CCE
CO
IGCE
LOE
OSWER
PO
RA
RAC
RD
RI/FS
SOW
WA
WAM
WBS
WP
Construction Cost Estimate
Contracting Officer
Independent Government
Cost Estimate
Level of Effort
Office of Solid Waste and
Emergency Response
Project Officer
Remedial Action
Response Action Contract
Remedial Design
Remedial Investigation/
Feasibility Study
Statement of Work
Work Assignment
Work Assignment Manager
Work Breakdown Structure
Work Plan
5.5 Preparing and Using the Independent Government Cost Estimate 5-19
5.5.1 Background and Requirement 5-21
5.5.2
Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate 5-26
Exhibit 5-3 Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate 5-27
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
5,5 Preparing and Using the Independent Government Cost
Estimate
This section provides background information on the independent govern-
ment cost estimate (IGCE) process, identifies Agency requirements for
preparing IGCEs, and defines the roles and responsibilities of the Work
Assignment Manager (WAM), Project Officer (PO), and Contracting
Officer (CO) in IGCE development.
5.5.1 Background and Requirement
An IGCE is the government's estimate of what it should cost to accom-
plish the statement of work (SOW). EPA is required to develop an IGCE
for every work assignment (WA) or WA amendment estimated to exceed
$25,000. Although an IGCE is not required for contract actions under
$25,000, the WAM must document the basis for the costs. The IGCE is
used to evaluate contractors' estimated WA costs and serves as a basis for
negotiating costs with the contractor. EPA directives and guidance estab-
lish IGCEs as an integral part of the WA process and outline the IGCE
process and participants.
Office of Solid Waste and Emergency Response (OSWER) Directive
No. 9242.2-06, issued on January 31, 1992, requires the technical
program office to develop an IGCE prior to any contract action
estimated to exceed $25,000.
OSWER Directive No. 9202.1-12, issued on July 29, 1993, outlines
the roles and responsibilities for preparing IGCEs.
The EPA Guide for Preparing Independent Government Cost Esti-
mates, issued on June 1, 1994, establishes the effective preparation
and use of IGCEs as an EPA priority and outlines major tasks
necessary to prepare IGCEs.
The EPA Guidance for Scoping the Remedial Design, EPA/540-F-93-
026, provides information on developing an IGCE for a remedial
design (RD) WA. The guidance also includes a work breakdown
structure (WBS) (consistent with the Response Action Contract
[RAC] SOW) and model SOW for both RD and RD oversight WAs.
Before estimating WA costs, the WAM develops the WA SOW. The SOW
includes a description of the work requirement, the WBS, a list of prod-
ucts and deliverables, acceptance criteria, and a project schedule. (See
section 5.4 for guidance on preparing the SOW.) The WA WBS must be
An IGCE is the government's
estimate of what it should cost to
accomplish the SOW. EPA is
required to develop an IGCE for
every WA costing over $25,000.
A carefully prepared SOW with a
detailed WBS is necessary to
produce an accurate and useful
IGCE.
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Cost estimates must be supported
by clear rationale and
assumptions.
The engineering method produces
a bottom-up cost estimate from the
lowest level of identifiable work.
consistent with the WBS of the RAC SOW. The WBS creates a structure
for monitoring costs and level of effort (LOE) and serves as a baseline for
reporting progress by providing a framework to track individual task and
subtask budgets, schedules, and performance. The Region develops its
IGCE based on the SOW WBS.
Accurate cost estimates come from:
• a detailed WBS
• an SOW that contains clear, detailed, and complete descriptions of
every task and subtask in the WBS
• detailed descriptions of deliverables and delivery schedules, including
data requirements
• gathering cost data based on cost history, previous scopes of work
similar to the current project, and the WAM's best professional judge-
ment
• selecting a cost-estimating methodology or a combination of method-
ologies suited for each aspect of the work requirement
• using cost-estimating reference books or software tools
Effective cost estimates are supported by appropriate rationale and
specific assumptions. A proven method for collecting accurate cost data is
to fill out cost estimate worksheets for each task identified in the WBS.
The worksheets can be used along with any of the recommended cost
estimating methodologies to document cost rationale. (See the EPA Guide
for Preparing Independent Government Cost Estimates, DCN EPA-202-B-
94-003.)
Cost-Estimating Methodologies
There are several cost-estimating methods that may be used to compute
the WA costs in an IGCE. Often, a combination of techniques is more
effective than using a single technique.
Engineering Method
The engineering method involves examining and defining separate task
elements at the lowest WBS detail level and using rates for nonestimated
elements, such as quality assurance and project management. The estima-
tor begins with the lowest level of identifiable work and identifies labor
and material costs required to complete the work. Rates for nonestimated
elements are added based on the estimated direct labor. The individual
items are added, forming the "bottom-up" cost estimate.
Parametric Method
The parametric method uses a database of similar elements and generates
an estimate based on a selected task performance or design characteristic.
The parametric method requires a relationship between some performance
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
parameters, such as timeliness, comprehensiveness, thoroughness (inde-
pendent variables), and the WA cost (dependent variable).
Parametric cost estimating is dependent upon the cost information avail-
able in the cost database. Technology enhancements excluded from the
database, but included in the WA, will lead to erroneous cost estimates.
For example, attempting to estimate the cleanup cost of a site with a
single contamination pathway using an estimate from a site with multiple
contamination pathways (surface, subsurface, aquifer, and air) would
yield a much higher cost estimate.
Parametric estimating is a "top-down" process, as opposed to the "bot-
tom-up" process historically used in estimating cost. Top-down cost data
are less accurate, but are often within a few percentage points of bottom-
up cost data.
Parametric cost estimating involves about ten percent of the effort re-
quired to perform a bottom-up estimate, but requires in-depth knowledge
of the database or software program to achieve accurate estimates. Also,
as new data becomes available, adjusting the parametric cost estimates
can be accomplished quickly and efficiently (adjustments to estimates
from bottom-up methodologies are time-consuming).
Extrapolation and Analogy Techniques
Extrapolation and analogy techniques can be used in tandem with the
engineering and parametric cost-estimating methods. Extrapolation is
used to develop estimates from actual costs, usually from a previous WA
in the same series (types of remedial investigation/feasibility study [RI7
FS], remedial action [RA], RD, etc.).
The accuracy of the extrapolation method depends on the similarity
between the WA at issue and the previous WA. The more similar the two
WAs are, the less the uncertainty and the more accurate the estimate.
Comparisons to a previous WA require adjustments to compensate for
cost differences in the current WA. These differences can be factored
accurately into the estimate using cost information from contractor
monthly cost/performance reports from previous WAs, trade magazines,
journals, and industry-specific construction estimating handbooks.
The analogy method compares tasks or subtasks in a new WA with similar
types of tasks or subtasks in an existing WA for which accurate cost data
exists.
Uncertainty in an analogy cost estimate is due to the subjective evalua-
tions made by the cost estimator. In most cases, actual technical compari-
sons can be made. When cost relationships based on technical differences
pose discrepancies, the cost estimator should use more than one analogous
5-23
The parametric method uses a
database to produce a top-down
estimate, which can be used to
confirm the accuracy of the
bottom-up estimate.
Actual costs can be extrapolated
from a similar WA and adjusted for
minor WA differences to create the
new WA cost estimate.
The analogy technique estimates
costs based on cost comparisons
with similar WAs.
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EPA may use one method or a
combination to estimate WA costs.
Different techniques can be used
to estimate different WA tasks.
task to compare against the new WA task. The key is to make a single
comparison for each WA task or subtask evaluation. The total estimate
will involve multiple analogous cost estimates.
Unit Cost Estimates
Unit cost estimates base total costs on cost-per-unit information. An
example of readily available unit costs is a commercial lab price list
modified to reflect typical EPA reporting requirements, or the U.S. Army
Corps of Engineers Unit Price Book. The cost estimator should ensure
that conditions closely resemble those represented in the Unit Price Book.
For estimated costs excluded from the Unit Price Book, the first choice to
use for the IGCE would be a "similar-to" comparison selected with the
assistance of the IGCE Coordinator.
Combination of Cost-Estimating Techniques
As government cost estimates increase in complexity and content, it is
more likely that a variety of estimating techniques will be employed in the
course of gathering, processing, and reviewing information, and present-
ing results for review by EPA management. For example, part of the
material costs could be developed using the Unit Price Book and remain-
ing estimates could be based on actual costs from previous WAs using
contractor invoices. Other completely new WAs have no reasonably
similar history and pure estimates must be developed.
Cost estimates will not always follow the same development philosophy
throughout any one cost estimate. It is important, however, to identify a
primary method during the initial WA estimate planning process.
Completing the IGCE involves considering several other factors, all of
which must be included in the tasks to be completed.
Cost Estimating
The cost estimator writes a detailed description of the tasks by cost
element type. The description should include information justifying the
number of hours for professional or technical levels as well as other direct
costs, such as travel and per diem. The cost estimator includes low-cost
material in a single estimate, determines the number of hours required for
each labor category, and describes the effort required for each category.
Finally, the cost estimator distributes the total hours estimated for each
labor category among the subtasks and compares the time allotted with
the effort described to determine whether the allotment is reasonable.
Labor and Overhead Rates
The contract rates relevant to the prime contract should be used for
estimating costs. If the contractor to be used is unknown, the estimator
should request a recommended rate from the IGCE coordinator.
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The cost estimator must forecast labor costs for term-form WAs based on
hours worked. Completion-form WAs are based upon the completion of
the end product(s). Labor estimates for both term- and completion-form
WAs must be measured in hours. The cost estimator should apply contract
price escalators as appropriate.
Construction Cost Estimates (CCEs)
CCEs itemize the principle elements of the cost to a contractor to perform
work. The estimates include breakdowns of types and quantities of labor,
equipment, and material required to fulfill work specifications. A CCE
developed by Regional staff or prepared by an architecture and engineer-
ing contractor and reviewed and approved by either the U.S. Army Corps
of Engineers or EPA may serve as the subcontract portion of an IGCE if
the CCE is provided to the prime contractor for subcontracting.
Documenting Rationale and Assumptions
Throughout the estimating process, the cost estimator makes decisions
and assumptions concerning information used in the estimate. Sources of
information should be noted and major decisions and assumptions must be
documented and supported by an explanation describing why the informa-
tion used represents the most probable cost for the tasks involved. Types
of decisions and assumptions that must be supported include, but are not
limited to: (1) the number of hours to perform a given task and the labor
category(ies) required; (2) travel (number of trips, number of individuals
traveling, destination, length of stay); and (3) copying costs (document
size, number of pages, number of copies). Judgments, such as the inflation
rate used, should be tied to prior inflation rates, trends, or information
from recognized forecasting services.
To the extent that a specific or unique set of guidelines is used for an
estimate, these guidelines should be documented. Deviations from the
guidelines should be noted specifically.
Cost-Estimating Software Models
Cost-estimating systems help cost estimators rapidly consider volumes of
information, navigate the necessary steps, and prevent unnecessary
variations in the cost-estimating process. Automated cost estimating also
allows the cost estimator to produce cost reports in a format which
highlights information required for evaluation and allows the estimator to
trace costs from the lowest level to the total cost level.
Cost estimation usually incorporates several computer systems. These
systems assist the cost estimator by providing access to databases containing
cost information. They facilitate the processing of large amounts of detailed
information necessary to support a government negotiation objective.
5-25
Cost-estimating software can
process extensive information and
generate reports at specified cost
levels.
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Four of the most popular cost-
estimating software packages are:
ENVEST, MCACES Gold,
Granular Activated Carbon, and
Air Stripping.
There are several software packages that can be used when developing
cost estimates for response work. Four of the most popular packages are:
• ENVEST Estimating Software is a cost-estimating tool used to model
the cost of remediation work. The package contains an RI/FS model,
an RD model, RA technology models, and site work and utility mod-
els. This program usually is used with the parametric estimating
method and creates a top-down estimate. The RI/FS model provides
the greatest amount of detail for estimates.
• MCACES Gold is a complex software tool for estimating construction
costs. It uses a bottom-up estimating process based on the U.S. Army
Corps of Engineers Unit Price Book. The costs are broken down into
categories by geographic locations. The supporting databases store
different types and classifications of cost information. These databases
include unit prices, crews, assemblies, labor rates, equipment rates, and
models. Use of this software requires an in-depth knowledge of
construction and requires an experienced estimator.
• Granular Activated Carbon (the Drinking Water and Groundwater
Remediation Cost Evaluation) provides valuable analysis of perfor-
mance, cost information, and sensitivity. The program shows granular
activated carbon costs and performance for the remediation of hazard-
ous waste sites or drinking water treatment. This helps the estimator
compare various cleanup technologies. The program also provides
examples and guidelines for changing design parameters to influence
cost and performance.
• The Air Stripping program shows air stripping costs and performance
for the remediation of hazardous waste sites or drinking water treat-
ment. The program helps the cost estimator compare technologies. The
program includes examples and guidelines for changing design param-
eters to influence cost and performance.
MCACES Gold can be used for construction estimates and ENVEST can
be used when performing parametric estimates for RI/FS, RD, and RA
estimates. These two systems are particularly useful in cost estimates
involving engineering activities and LOE work or estimates using the
engineering method.
5.5.2 Roles and Responsibilities for Preparing and Using the
Independent Government Cost Estimate
The WAM has primary responsibility for ensuring that the IGCE is
prepared. The WAM may use an in-house cost estimator/coordinator, if
available, to develop or assist in the development of the IGCE. The PO
and CO perform review functions during the IGCE process. The WAM,
PO, and CO all use the IGCE to evaluate the contractor's work plan (WP)
cost estimate. Exhibit 5-3 identifies the specific roles of the individuals
involved in the IGCE process.
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
(assisted by cost
estimator and/or
program technical
personnel, if
available)
Role in Preparing and Using the IGCE
Develops WAWBS and SOW
Breaks down costs for WA tasks into cost elements
Identifies sources of cost information
Selects cost-estimating methodology(ies) and techniques
Develops IGCE, including backup documentation and rationale
Compares IGCE to WP cost estimate to determine if contractor costs
are reasonable
PO
Performs IGCE technical review
Compares IGCE to WP cost estimate to determine if contractor costs
are reasonable
Reviews IGCE
Compares IGCE to WP cost estimate to determine if contractor costs
are reasonable
51-033-76C
Exhibit 5-3, Roles and
Responsibilities for Preparing
and Using the Independent
Government Cost Estimate
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Preparing the Work Assignment Package
and Issuing the Work Assignment
SECTION
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Table of Contents
Acronyms
CO Contracting Officer
IGCE Independent Government
Cost Estimate
PO Project Officer
PR Procurement Request
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAAM Work Assignment
Allocation Matrix
WAF Work Assignment Form
WAM Work Assignment
Manager
WAP Work Assignment
5.6 Preparing the Work Assignment Package and Issuing the Work
Assignment 5-29
5.6.1 Background and Requirement 5-31
5.6.2 Roles and Responsibilities for Preparing the Work Assignment
Package and Issuing the Work Assignment 5-32
Exhibits
Exhibit 54
Roles and Responsibilities for Preparing the Work
Assignment Package and Issuing the Work Assignment 5-33
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5,6 Preparing the Work Assignment Package and Issuing the
Work Assignment
This section provides background, cites contractual requirements, and
discusses the roles and responsibilities of the Work Assignment Manager
(WAM), Project Officer (PO), and Contracting Officer (CO) in preparing
and issuing the work assignment (WA).
5.6.1 Background and Requirement
Under Response Action Contracts (RACs), the government orders work
through written WAs issued to the contractor.
RAC clause, STATEMENT OF WORK-CONTRACT WHERE
WORK IS ORDERED BY WORK ASSIGNMENTS OR DELIV-
ERY ORDERS hi contract Section C states that the contractor shall
perform work under this contract only as directed in WAs issued by
the CO. Contract clauses, WORK ASSIGNMENTS (TERM-FORM
SEGMENT) and WORK ASSIGNMENTS (COMPLETION-FORM
SEGMENT), hi contract Section B specify the timetable and docu-
mentation requirements for issuing WAs.
To initiate a new WA, the contract management team prepares a work
assignment package (WAP). The WAP includes the following items:
• Work Assignment Form (WAF)—The WAF is a one-page form used
to initiate and track the various actions required to approve, modify,
and complete a WA. The WAF has been updated recently to allow for
the following: identifying the WA as term- or completion-form;
reordering the bulk-funding category, activity code, and site/spill
identifiers; and setting or revising the expenditure limit.
• Statement of Work (SOW)—The SOW is a clear description of the
work required of the contractor. It includes a detailed work break-
down, all required deliverables, work quality requirements, and
delivery schedule.
• Independent Government Cost Estimate (IGCE)—An IGCE is the
Region's cost estimate of the work and materials required to complete
the WA. The IGCE is used to negotiate WA costs with the contractor.
• Nomination and Appointment of Contracting Officer's Representa-
tive (COR) Form 1900-65a—Form 1900-65a is used to designate the
WAM for the new WA.
5-31
The WAP includes the WAF, SOW,
IGCE, Form 1900-65a, PR, and
WAAM.
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• Procurement Request (PR), EPA Form 1900-8—The PR is used to
obligate funds to remedial action WAs and other WAs that are individu-
ally funded. Most RAC WAs will be bulk-funded (see sections 4.3 and
5.8). The WAM or PO may complete the PR depending on Regional
procedures.
• Work Assignment Allocation Matrix (WAAM)—This notice is used to
identify which contractor will receive the WA and document the ratio-
nale for contractor selection (see section 5.3). The WAAM is added to
the WAP by the PO.
The PO reviews and concurs with the WAP, working with the WAM to
improve or correct any problems. After reviewing the WAP, the PO or other
program personnel decides which prime contractor should receive the WA
and completes the WAAM and adds it to the WAP. The CO reviews and
approves the WAP and issues the WA to the selected contractor.
5.6.2 Roles and Responsibilities for Preparing the Work Assignment Package and
Issuing the Work Assignment
The WAM is responsible for preparing the WAP. The PO and CO have
WAP review responsibilities. The CO approves the WAP and issues the
WA. Exhibit 5-4 lists the key responsibilities of EPA personnel and the
contractor in preparing and issuing the WA.
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CHAPTER 5 * ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
Role in Work Assignment Preparation and Issuance
Prepares WAP
May prepare PR for individually funded WAs
Forwards WAP to PO for review
Provides input to PO regarding WA issues
Reviews WAP for completeness, accuracy, and compliance with
technical contract requirements
Discusses WA issues with WAM
Provides input to CO to resolve WA issues
Provides rationale for contractor selection
Assigns the WA number
Signs WA and forwards WAP to CO indicating concurrence
May prepare PR for individually funded WAs
Reviews WAP for completeness, accuracy, and compliance with terms
and conditions of the contract
Consults with PO to resolve WA issues prior to approval
Signs WAF to indicate approval of WA
May assign the WA number, depending on the Region
Processes PRs (if included in WAP)
Prepares and issues a contract modification for individually funded WAs
to adjust the contract funding
Issues WA to contractor with copies to WAM and PO
Receives contractor's WA acceptance
Acknowledges WA receipt by signing and returning the WAF
51-03M9C
Exhibit 5-4, Roles and
Responsibilities for Preparing
the Work Assignment Package
and Issuing the Work
Assignment
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Work Plan Technical Review and
Cost Evaluation
SECTION
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
IGCE Independent Government
Cost Estimate
PO Project Officer
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
5.7 Work Plan Technical Review and Cost Evaluation 5-35
5.7.1 Background and Requirement 5-37
5.7.2 Roles and Responsibilities for Work Plan
Review and Evaluation 5-38
Exhibits
Exhibit 5-5 Roles and Responsibilities for Work Plan Review and
Evaluation 5-39
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,7 Work Plan Technical Review and Cost Evaluation
This section describes the background and requirement for reviewing the
contractor's work plan (WP) and evaluating the WP cost estimate. It also
identifies the responsibilities of the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) in reviewing the WP,
evaluating costs, and negotiating final WP approval.
5.7.1 Background and Requirement
The WP is the contractor's response to a government-issued work assign-
ment (WA). The WP contains the following:
• contractor's proposed technical approach to performing WA tasks
• description of deliverables
• schedule
• staffing plan
• equipment, subcontracting, and other special requirements of the
WA
• detailed cost estimate for performing the WA
The WP is due 30 days after the contractor receives the WA. The WA
clearly specifies those activities the contractor is authorized to begin
before the WP is approved (see section 5.6.3).
Contract clauses, WORK ASSIGNMENTS (TERM-FORM SEG-
MENT) and WORK ASSIGNMENTS (COMPLETION-FORM
SEGMENT) in contract Section B, specify that the contractor must
submit a WP containing a detailed description of work by task and a
comprehensive cost estimate in accordance with Federal Acquisition
Regulation 15.804-6 within 30 days of WA receipt.
The WAM and PO are responsible for reviewing the contractor's WP to
ensure that the WP is responsive to the WA statement of work (SOW) and
that the contractor's costs are reasonable. The independent government
cost estimate (IGCE) is used to evaluate cost reasonableness. If the WP
cannot be approved as submitted, EPA may provide a written request to
the contractor to correct deficiencies and submit a revised WP. EPA also
may enter into WP negotiations with the contractor. The CO, with techni-
cal assistance from the PO and WAM, holds WP negotiations with the
contractor.
5-37
The WP is the contractor's
response to a WA.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The WP is due 30 days after the
contractor receives the WA.
WP negotiations can be conducted
only by the CO.
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Partial WP approval can be used
so that some tasks can be started
while problematic ones are
resolved.
EPA may grant partial WP approval to prevent minor WP deficiencies
from disrupting the commencement of urgent WA activities. Partial
approval allows EPA the flexibility to grant contractors permission to
initiate critical work while reserving the Agency's ability to negotiate
modifications to the WP. Partial WP approval is desirable when critical
aspects of a WP are acceptable and other, less time-crucial, aspects
require modification. The government must issue WP approval or partial
approval within 45 days of receiving the contractor WP or issue a stop-
work order to the contractor.
5.7.2 Roles and Responsibilities for Work Plan Review and Evaluation
The WAM, PO, and CO play active roles in the WP review and evaluation
process. The responsibilities of each individual are identified in
Exhibit 5-5.
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
PO
Role in Work Plan Review and Evaluation
• Schedules and attends scoping meeting
' Reviews WP for technical sufficiency, approach, schedule, personnel,
cost reasonableness, and compliance with WA requirements
• Requests additional information from contractor as necessary to review
and evaluate WP
• Prepares memo detailing technical review of WP tasks and recommends
approval, partial approval, or disapproval for each task, and forwards
memo to PO
• Documents and explains in the technical review memo the differences
between the contractor's cost estimate and the IGCE
1 Completes and signs WP evaluation checklist and forwards it to PO
1 Provides EPA's technical position for reasonable alternatives if contractor's
technical approach, schedule, or costs are deemed unreasonable
' Prepares WA form for WP approval, partial approval, or disapproval,
and forwards to PO
Recommends adjusting WA expenditure limit upon WP approval
Attends session to negotiate WP with PO and CO
Verifies that WP changes are reflected in revised WP
Generally attends scoping meeting
Reviews WP relevant to "big picture" items, including technical sufficiency,
equipment needs, special requirements, subcontracts, compliance with
SOW and cost management goals; discusses issues or concerns with
WAM
Requests additional information from contractor as necessary to review
and evaluate WP
Evaluates WAM recommendations and comments for completeness/
thoroughness of review package
Discusses aspects of WP with WAM
Signs WP checklist indicating concurrence with WAM's recommendations
and forwards to CO
Attends session to negotiate WP with CO and WAM
Verifies that negotiated WP changes are reflected in revised WP
May attend scoping meeting
Reviews WP, technical review memorandum, and recommendations
from WAM and PO
Requests additional information from contractor as necessary to review
and evaluate WP
Approves, partially approves, or disapproves WP
Notifies contractor of approval, partial approval, disapproval, or need to
negotiate WP
Negotiates WP with contractor and documents proceedings
Attends scoping meeting
Prepares and submits WP, including Official Form 60 or Standard Form
1411, and submits it to CO within 30 days of WA receipt, with copies to
PO and WAM
Communicates with EPA personnel to answer questions, clarify issues,
or negotiate WP
51-033-80A
Exhibit 5-5, Roles and
Responsibilities for
Work Plan Review and
Evaluation
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
WorkAssignment Funding
SECTION
5.8
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
EL Expenditure Limit
IFMS Integrated Financial
Management System
PO Project Officer
PR Procurement Request
RA Remedial Action
RAC Response Action Contract
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WAP Work Assignment Package
5.8 Work Assignment Funding 5-41
5.8.1 Background and Requirement 5-43
5.8.2 Roles and Responsibilities for Work Assignment Funding 5-44
Exhibits
Exhibit 5-6 Roles and Responsibilities for Work Assignment Funding 5-45
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,8 Work Assignment Funding
This section discusses the background and responsibilities for funding
Response Action Contract (RAC) work assignments (WAs), including
site-specific and bulk-funding. The responsibilities of the Work Assign-
ment Manager (WAM), Project Officer (PO), and Contracting Officer
(CO) in WA funding are highlighted.
5.8.1 Background and Requirement
While the majority of site work is bulk-funded under RACs, EPA requires
that Fund-lead remedial actions (RAs) and completion-form WAs be
funded site-specifically. Other WAs also may be funded site-specifically if
the PO deems it to be more practical.
Site-Specific Funding
A separate procurement request (PR) is required for each site-specifically
funded WA. The Office of General Counsel, in a memorandum dated
April 23,1993, determined that completion-form WAs must be funded
site-specifically to provide a recordable event for funding obligation
purposes. The WA may be incrementally funded and a separate PR issued
for each funding action.
Office of Solid Waste and Emergency Response Directive 9200.314-
2, Program Management Manual, April 1994, requires that RAs be
funded site-specifically. Completion-form WAs that fall under the
same funding category may be grouped on one PR as long as the
site-specific information for each WA is identified on the PR.
Bulk Funding
The RAC contract is bulk-funded, which means that the contract as a
whole is funded periodically according to allowance or category, rather
than funding each WA separately. The majority of WAs use the contract's
bulk funding. The four bulk-funding categories in RACs are:
• program support (other response)
• site characterization
• enforcement
• removal
For WAs using contract bulk funding, funds are committed and obligated
periodically to the various funding categories. Funds are obligated to the
contract using generic accounting information that identifies the funding
5-43
The combined ELs of WAs in a
funding category cannot exceed the
funding available in that category.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
category but does not include specific activity or site codes. As WAs are
issued under the contract, each WA is associated with a particular funding
category and contains site-specific information for the WA. This means
that invoices for WA costs are paid from a specific funding category and
the contractor invoices site-specifically.
The WA's expenditure limit (EL) is used as the WA funding ceiling (see
section 5.10 for a description of ELs). The combined ELs of WAs associ-
ated with a funding category cannot exceed the funding available in that
category.
5.8.2 Roles and Responsibilities for Won\ Assignment Funding
The WAM or PO may initiate the WA funding request. The PO and CO
review it. Exhibit 5-6 describes the general responsibilities of the WAM,
PO, and CO hi WA funding.
5-44
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
Role in WA Funding
Site-Specifically Funded WAs
• May prepare PR and submit it (with work assignment package [WAP])
to PO for review
WAs Under Bulk-Funding
• Notifies advice-of-allowance coordinator of funding needs through
planning process
• Establishes ELs for WAs using work assignment form (WAF)
• Notifies the contractor on WAF of the bulk-funding category and activity
and site codes to use for a WA when invoicing
• Notifies the contractor on WAF of the bulk-funding category and activity
and site codes to use for a WA when invoicing
• Plans anticipated costs in the Comprehensive Environmental, Response,
Compensation, and Liability Information System
Site-Specifically Funded WAs
• Notifies advice-of-allowance coordinator of funding needs through
planning process
• May prepare PR and obtains proper PR approvals
• Forwards WAP to CO
WAs Under Bulk-Funding
• Prepares PR and obtains PR approvals
• Monitors combined ELs for WAs under a funding category to ensure
they do not exceed funding available in that category
• Ensures that the contractor is notified through the WAF of the bulk-
funding category and activity and site codes to use for various WAs
when invoicing
• Ensures that invoices contain specific activity and site codes and draw
down from the appropriate bulk-funding categories
Site-Specifically Funded WAs
• Reviews and processes PR
• Prepares contract-funding modification
• Issues contract modification to contractor and distributes to PO
• Sends contract modification to the Financial Management Center at
Research Triangle Park for entry of obligation into Integrated Financial
Management System (IFMS)
• Ensures that funds are available by freezing funds in the IFMS
WAs Under Bulk-Funding
• Ensures that combined ELs for WAs under a funding category do not
exceed funding available in that category
Site-Specifically Funded WAs
- Receives contract-funding modification and WA
WAs Under Bulk-Funding
• Invoices using specific activity and site codes as specified in RAC
Reports of Work
51-033-104C
5-45
Exhibit 5-6. Roles and
Responsibilities for Work
Assignment Funding
MAY 31, 1995
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CHAPTER S « ISSUING AND MANAGING WORK ASSIGNMENTS
Establishing and Changing the
Expenditure Limit
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
EL Expenditure Limit
PO Project Officer
RAC Response Action Contract
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WP Work Plan
5.9 Establishing and Changing the Expenditure Limit 5-47
5.9.1 Background and Requirement 5-49
5.9.2 Roles and Responsibilities for Establishing and Changing the
Expenditure Limit 5-51
Exhibits
Exhibit 5-7 How to Use the Expenditure Limit to Manage a Work
Assignment 5-50
Exhibit 5-8 Roles and Responsibilities for Establishing and Changing
the Expenditure Limit 5-52
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,9 Establishing and Changing the Expenditure Limit
This section provides background information on the use of expenditure
limits (ELs) to control the dollar and hour amounts available to the
contractor during the performance of a work assignment (WA). This
section also discusses the roles and responsibilities of EPA officials
involved in setting and changing ELs.
5.9.1 Background and Requirement
Response Action Contracts (RACs) allow a contractor to start work upon
receipt of a WA, expending funds up to the EL established in the WA.
The EL is established during initial WA development and is used to notify
the contractor of how many dollars and hours are available when the WA
is issued. The Work Assignment Manager (WAM) can initiate an increase
or decrease in the EL at any time during WA performance by preparing a
work assignment form (WAF) for Project Officer (PO) concurrence and
Contracting Officer (CO) approval. If the EL exceeds the approved work
plan (WP) budget, the WAM provides an explanation on the WAF. The
CO approves the WAF, if appropriate, and issues it to the contractor.
The EL for an individually funded WA must never exceed the total
funding available on that WA. For bulk-funded WAs, the combined ELs
of WAs associated with a bulk-funding category cannot exceed the
funding available in that category. RACs contain four bulk-funding
categories: program support (other response), site characterization,
enforcement, and removal (see section 4.3, "Contract Funding"). Finally,
combined ELs for all bulk-funded and individually funded WAs must not
exceed the total obligated dollars within the contract.
The EL serves as the WA funding ceiling. The contractor must not expend
funds beyond the EL without express approval of the CO, as specified in
the contract. The WAM and PO monitor contract expenditures to ensure
that the contractor stays within ELs established for WAs.
RAC clauses WORK ASSIGNMENTS (TERM-FORM SEGMENT)
and WORK ASSIGNMENTS (COMPLETION-FORM SEGMENT),
in section B of the contract, state that (1) upon receipt of the WA the
contractor may start work up to the EL in the WA, and (2) the
contractor shall not exceed the EL, level of effort, or period of
performance for a WA without the express approval of the CO.
The WAM uses the EL as a key tool to help manage the phasing and
execution of a WA. There are three primary uses for an EL:
The EL establishes the dollar and
hour limits for an individual WA.
The WAM may initiate a change to
an EL using the WAF.
ELs must never exceed the total
WA funding for individually funded
WAs or the total funding available
in the bulk-funding category for
bulk-funded WAs.
5-49
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 5-7. How to Use the
Expenditure Limit to Manage a
Work Assignment
At WA Initiation—When the WA is issued, the WAM prepares the WAF
which sets the EL to limit the contractor's work to distinct tasks or
activities. For example, at the start of a WA, the contractor is authorized
to initiate Task 1, Project Planning and Support, and the EL is set to limit
expenditures to Task 1 until the WP is approved. The WAF also may
authorize and set the EL to include certain technical tasks to be under-
taken prior to WP approval.
At WP Approval—After the WP budget is approved, the WAM prepares
a WAF recommending an increase in the EL to allow the contractor to
start technical work on all or a portion of the WA tasks.
During WA Performance—The WAM can recommend raising or lower-
ing ELs to manage task execution. For example, the WAM may recom-
mend raising the EL to allow the contractor to proceed to the next phase
of a project or lowering the EL to more carefully monitor the work of a
poorly performing contractor. For individually funded WAs, however, the
EL cannot exceed WA funding. For example, if the WA is funded with
$600,000, the EL may not exceed $600,000. For WAs using contract bulk
funding, the PO and CO track the amounts of combined ELs for all WAs
using a bulk-funding category to ensure that obligated dollars within the
applicable bulk-funding category are not exceeded.
Exhibit 5-7 provides an example of how ELs can be used to manage task
execution during a WA.
500,000 -
400,000-
300,000 -
200,000 -
100,000-
EL Ceiling < WP approved budget
~[^
•M^^^
EL2
P^^t
ELs
V"""" *
EU
__.
ELs
EL,-EL set at
$100,000 to cover
project planning
and support
5-50
EL2-EL
increased
$100,000 at WP
approval for
contractor to
start tasks
EU-EL
increased
$100,000 during
WA to proceed to
next activity
phase
EU-EL
decreased
$75,000 to pace
work of con-
tractor or to shift
available funding
ELg- EL
increased by
$250,000 to
complete work
51-033-125B
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Normally, the EL should not exceed the approved WP budget. However,
the CO may authorize it in certain circumstances, including:
• To cover CO-approved cost increases that are not yet incorporated in a
WA amendment and revised WP
• During the interim period when the CO has issued a WA amendment,
but the revised WP is not yet developed or approved
The WAM must identify on the WAF any situation where the recom-
mended EL exceeds the WP-approved budget and explain the increase.
5.9,2 Roles and Responsibilities for Establishing and Changing the Expenditure
The WAM recommends setting and changing the WA EL as needed by
preparing a WAF. The PO and CO review and sign the WAF. The CO
must approve all EL actions. Exhibit 5-8 identifies the roles and responsi-
bilities for the individuals involved in the EL process.
5-51
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 5-8. Roles and
Responsibilities for
Establishing and Changing the
Expenditure Limit
Individual Role in Establishing and Changing the Expenditure Limit
Bulk-funded WAs:
• Prepares WAF recommending EL increases or decreases
• Provides justification on WAF if recommended EL exceeds WP-approved
budget
Individually Funded WAs:
• Prepares WAF recommending EL increases or decreases
• Ensures that EL is within WA funding
Bulk-funded WAs:
• Reviews and signs WAF to indicate concurrence
• Verifies that EL is within WP-approved budget or that adequate explanation
is provided for why EL exceeds budget
• Forwards copy of WAF to CO
• Ensures that combined ELs of WAs using a particular bulk-funding
category do not exceed funding in that category
Individually Funded WAs:
• Reviews and signs WAF
• Verifies that EL is within WA funding
• Forwards copy of WAF to CO
Bulk-funded WAs:
• Reviews and signs WAF to indicate approval
• Verifies that EL is within WP-approved budget or that adequate explanation
is provided for why EL exceeds budget
• Forwards approved WAF to contractor
• Ensures that combined ELs of WAs using a particular bulk-funding
category do not exceed funding in that category
Individually Funded WAs:
• Reviews and signs WAF to indicate approval
• Verifies that EL is within WA funding
• Forwards approved WAF to contractor
Receives WAF with EL change from CO
S1-033-126B
5-52
MAY 31, 1995
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CHAPTER S » ISSUING AND MANAGING WORK ASSIGNMENTS
Issuing Technical Direction
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
PO Project Officer
RAC Response Action Contract
SOW Statement of Work
TD Technical Direction
TDM Technical Direction
Memorandum
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WP Work Plan
5.10 Issuing Technical Direction 5-53
5.10.1 Background and Requirement 5-55
5.10.2 Roles and Responsibilities for Issuing Technical Direction 5-56
Exhibits
Exhibit 5-9 Overview of Issuing Technical Direction 5-56
Exhibit 5-10 Roles and Responsibilities for Issuing Technical Direction.... 5-57
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,10 Issuing Technical Direction
This section provides background information and discusses the roles and
responsibilities involved in issuing technical direction (TD).
5.10.1 Background and Requirement
EPA provides technical direction to Response Action Contract (RAC)
contractors to help the contractors complete the work assignments (WAs).
TD may be issued in response to a contractor question, to clarify provi-
sions in the statement of work (SOW) or approved work plan (WP), in
response to project or site activities, or to comment on or document
approval of deliverables. The Contracting Officer (CO) generally autho-
rizes the Work Assignment Manager (WAM) and Project Officer (PO) to
issue TD. The PO is the CO's primary technical representative and
generally is authorized to provide TD on contract performance. WAMs
generally are authorized to provide TD on their specific WAs. The RAC
provides this authorization as shown below.
RAC clause, TECHNICAL DIRECTION, in contract Section H
gives the CO, PO, and WAM authority to issue TD to the contractor
within the scope of work of the contract or WA, which (1) assists the
contractor in accomplishing the WA SOW, and (2) comments on and
approves deliverables.
RACs strictly define the TD that can be provided. TD must be within the
scope of the contract and the WA. TD cannot institute additional work
outside the scope of the contract or WA, constitute a change as defined in
the CHANGES clause, cause an increase or decrease in the estimated cost
of the contract or WA, alter the period of performance, or change any
other express terms or conditions of the contract.
TD must be documented in writing. TD may be issued verbally initially
and confirmed in writing within five calendar days of verbal issuance.
The written documentation requirements for TD may vary among Re-
gions. A work assignment form (WAF) is the recommended vehicle for
providing TD to the contractor, but other forms of TDM, including letters
and memoranda, are acceptable. Any type of written documentation is
considered a "technical direction memorandum" (TDM). The PO and CO
review each TDM to verify that it falls within the scope, budget, and
schedule of the contract SOW and WA.
The WAM usually initiates the TD, which is always reviewed by the PO
and CO, but not formally approved by them unless the TDM is in the form
5-55
The CO generally authorizes the
WAM and PO to issue TD.
TD must be within scope of the
contract and WA.
TD must be documented in
writing. Verbal TD may be issued
and confirmed in writing within
five calendar days.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 5-9. Overview of Issuing
Technical Direction
of a WAR The WAM uses TD to help the contractor accomplish SOW
tasks, but TD cannot be used to authorize changes in the SOW that
exceed the WP approved budget or level of effort. Changes of this
nature must be documented and approved through a formal WA amend-
ment as described in section 5.11. Exhibit 5-9 illustrates the major
players and sequence of events involved in issuing TD.
When issuing TD, the government must avoid appearing to direct the
contractor's activities or create a personal services relationship (see
section 2.3.6, "Personal Services").
5,10.2 Roles and Responsibilities for Issuing Technical Direction
The WAM, PO, or CO may issue TD, although TD usually is issued by
the WAM. The PO and CO always review the TDM. Exhibit 5-10
provides a breakdown of the major responsibilities of the WAM, PO,
CO, and contractor in issuing TD.
RAC WORK ASSIGNMENT
CONTRACTOR
• May request TD
from WAM
WAM
• Prepares and
issues TDM
TECHNICAL
DIRECTION
Assists the RAC
contractor in
accomplishing the
WASOW
CO
• Reviews TDM to
verify it is within WA
scope, budget, and
schedule
PO
• Reviews TDM to
verify it is within
WA scope, budget, and
schedule
S1-03M3C
5-56
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
Role in Issuing Technical Direction
Issues TD within scope and budget of WA
Documents TD provided to the contractor
Documents verbal TD within five calendar days of issuance
May consult with PO or CO regarding TD before issuance
May issue new TD or prepare WA amendment in response to TD issues
identified by the PO or CO
Maintains copies of all TDM and verbal TD records
Provides copy of TDM to PO and CO
Reviews TDM for compliance with contract-specified TD requirements
Provides guidance to WAM on the scope and impact of TD
Works with WAM and CO to issue new TD or formally amend the WA
if TD exceeds contract-specified limitations
Provides guidance to WAM on scope and impact of TD
Reviews TDM for compliance with contract-specified TD requirements
Works with WAM and PO to issue new TD or formally amend the WA
if TD exceeds contract-specified limitations
May request TD from EPA
Receives TD and implements direction
51-033-94A
Exhibit 5-10, Roles and
Responsibilities for Issuing
Technical Direction
5-57
MAY 31, 1905
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Amending the Work Assignment
SECTION
5.11
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
IGCE Independent Government
Cost Estimate
LOE Level of Effort
OF Optional Form
PO Project Officer
RA Remedial Action
RAC Response Action
Contract
RD Remedial Design
SOW Statement of Work
WA Work Assignment
WAF Work Assignment
Form
WAM Work Assignment
Manager
WP Work Plan
5.11 Amending the Work Assignment 5-59
5.11.1 Background and Requirement 5-61
5.11.2 Roles and Responsibilities for Amending the Work Assignment
and Issuing Changes for a Remedial Action Work Assignment 5-63
Exhibit 5-11 Roles and Responsibilities for Amending the Work
Assignment and Issuing Changes for a Remedial Action
Work Assignment 5-64
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,11 Amending the Woik Assignment
This section provides background information on amending a work
assignment (WA) and identifies the roles and responsibilities of EPA
personnel.
5.11.1 Background and Requirement
A formal WA amendment is used to change the statement of work (SOW)
or work plan (WP) when site conditions differ from original projections or
when other unforeseen changes affect the WP's approved scope, level of
effort (LOE), or dollar values. A WA amendment is required when there is
a change to the WA scope or cost. Accordingly, a WA amendment may.
• modify a WA to change or revise its scope
• modify a WA to increase or decrease the WA cost or LOE
Each amendment that changes the WA scope must be accompanied by an
amended or revised SOW and the contractor must submit a revised WP
for Contracting Officer (CO) approval.
Amending the WA to Change or Revise its Scope
While performing work, the contractor may become aware of the potential
need for changes in WA cost or scope. The contractor must notify the
Work Assignment Manager (WAM) of the possibility. If the WAM deter-
mines that a change to the work requirement is necessary, the WAM
amends or revises the SOW and the contractor submits a revised WP for
the CO's approval. The WAM cannot direct the contractor to perform
work that exceeds the WA's scope, LOE, or budget.
Amending the WA to Increase or Decrease Cost or Level of Effort
The WA and WP should be amended when funds or LOE above the WP-
approved budget are needed to complete the WA, or when funds or LOE
levels need adjustment. The contractor may notify EPA that it cannot
complete a task within the WP-approved budget or LOE for several
reasons including, but not limited, to the following:
• unanticipated and, therefore, underestimated costs in the original WP
• use of lower or higher professional-level staff than anticipated
• cost overruns
• changes in the contractor's indirect rates
These situations may require changes to the WP-approved cost or LOE.
The contractor must provide EPA with a detailed description of the
circumstances, so EPA can determine the cause of the change (scope
5-61
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RAG USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
A new IGCE is required if a
change in WA scope exceeds
$25,000.
The CHANGES clause in RAC
construction subcontracts provides
flexibility to adjust to actual field
conditions as work progresses.
Construction projects usually
have a reserve fund built into the
WP that is used to cover the cost
of frequent changes associated
with construction projects.
growth or cost overrun) and whether the change is reasonable. The
description should include:
• amount of the increase or decrease
• circumstances leading to the increase or decrease
• work to be performed if a change is made
• recommendations to alleviate the situation
Depending on the reason for a change in the WP-approved LOE or
budget, the contractor may submit a revised WP after the WA amendment
is issued with CO approval. If the contractor submits a revised WP, the
WP is reviewed and approved as outlined in section 5.7, "Work Plan
Technical Review and Cost Evaluation." A new independent government
cost estimate (IGCE) is required if a change to the WA scope exceeds
$25,000.
Changes in a Remedial Action WA
WA amendments may be required during a construction project to address
site changes. Response Action Contract (RAC) construction subcontracts
contain a CHANGES clause and other related clauses that provide the
flexibility to adjust for actual field conditions and to reinterpret drawings
and specifications as the work progresses. Under the CHANGES clause
(see Appendix B, Contract Clause Matrix), the "construction manager"
(the RAC prime contractor) can change the work described in the contract
to adjust for actual site conditions. The construction manager also can
order additional work within the scope of the contract to meet the
government's need to implement the remedy.
The RAC prime contractor's subpool construction subcontractor (the
"constructor") is obligated to accomplish the work ordered by the con-
struction manager and, in return, is guaranteed an equitable adjustment to
both the price and project schedule. Whenever the work is changed, the
RAC prime contractor and the constructor must negotiate an acceptable
price. When negotiations are successful, the changes to the work are
accomplished under a supplemental agreement to the contract. If the
parties cannot reach agreement, the constructor is ordered to proceed with
work under a change order for a price that the construction manager
considers reasonable (see section 4.5, "Contract Modifications"). If the
constructor is unsatisfied, a claim can be filed to resolve the issue. Be-
cause changes are common to construction projects, a reserve fund is
usually built into the WP (and included in the IGCE) to cover the cost of
changes. Reserve funds vary, but are approximately 15% of the contracted
price for the work, according to the June 1995, version of the Remedial
Design/Remedial Action (RDIRA) Handbook.
Claims for constructive changes can be used by constructors to obtain
additional compensation for performing fixed-price subcontracts. A
5-62
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
constructive change is an oral or written act or omission by the CO or
other authorized government official that is construed as having the same
effect as a written change order. A constructive change has two elements:
(1) a change element, which is examining constructor performance to see
if it went beyond the minimum standards demanded by the fixed-price
subcontract, and (2) an order element, in which the government's repre-
sentative, by word or deed, requires the contractor to perform work that is
not a necessary part of the contract.
There are two distinct contractual relationships under RACs: the relation-
ship between EPA and the prime contractor and the relationship between
the prime contractor and the subcontractor(s). The constructor is a subcon-
tractor under the RAC prime contractor, which means that the government
is not considered a party to the actual construction subcontract. Only the
RAC prime contractor has the authority to negotiate or order changes to
the construction subcontract.
The RAC prime contractor is responsible for negotiating changes with the
subcontractor and notifying EPA of potential or needed changes to the
subcontract. After the prime contractor and the constructor have negoti-
ated, the prime contractor prepares a contract modification to the contract
in the form of a supplemental agreement or a change order. The CO
reviews and concurs with all changes. Changes beyond the scope of the
WA and changes requiring additional funding require issuance of a WA
amendment. This is done concurrently with the prime contractor's modifi-
cations to the construction subcontract. The prime contractor must inform
the CO of change order activities at all times, even if the change does not
require a WA amendment. WA amendments are processed according to
the procedures outlined in section 5.11.1 of Volume 1: Process Guide.
5.11.2 Roles and Responsibilities for Amending the Work Assignment and Issuing
Changes for a Remedial Action Work Assignment
The WAM generally identifies the need to amend a WA and prepares the
WA amendment. The Project Officer (PO) and CO both review the
amendment and the CO approves it. Exhibit 5-11 identifies the responsi-
bilities of individuals involved in amending a WA. During the perfor-
mance of a construction project, site changes often must be addressed
after work has begun on an RA WA. Exhibit 5-11 also identifies the
responsibilities of individuals involved in issuing changes for RA WAs.
Only the RAC prime contractor
has the authority to negotiate or
order changes to the construction
subcontract.
5-63
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 5-11, Roles and
Responsibilities for Amending
the Work Assignment and
Issuing Changes for a Remedial
Action Work Assignment
PO
Amending the Work Assignment
• Reviews WAF package for WA amendment.
Individual
Role in Amending the Work Assignment and Issuing Changes to
a Remedial Action Work Assignment
Amending the Work Assignment
• Prepares work assignment form (WAF) package for amendment
(WAF, SOW, IGCE, and procurement request)
• Helps PO and CO clarify outstanding issues
Issuing Changes to a Remedial Action Work Assignment
• Provides comments on subcontract modification
• Provides WAF package for WA amendment
Issuing Changes to a Remedial Action Work Assignment
• Reviews and coordinates program comments on subcontract modification
• Reviews WAF package for WA amendments
Amending the Work Assignment
• Reviews and approves WAF package for the amendment
• Prepares and issues contract modification if funding involved
Issuing Changes to a Remedial Action Work Assignment
• Reviews and concurs with all changes, including subcontract modification
• Approves and issues WA amendments
Prime Contractor Amending the Work Assignment
• Responds to WA amendment by submitting revised WP (or cost estimate)
for change
Issuing Changes to a Remedial Action Work Assignment
• Conducts field appraisal for the scope and cost of the potential change
• Issues change orders to subcontractors or signs supplemental agreements
with subcontractor
• Modifies subcontract with subcontractor to reflect negotiations or changes
• Informs CO of all change activity
Construction Amending the Work Assignment
Subcontractor . Receives and implements WA amendments
Issuing Changes to a Remedial Action Work Assignment
• Requests change due to changes in site conditions
• Prepares and submits proposal to prime contractor
51-033-128D
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Wage Rates and Surety Bonds for
Remedial and Non-Tinie-Crilical
Removal Action Subcontracts
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
DBA Davis-Bacon Act
DOL Department of Labor
FAR Federal Acquisition
Regulation
NTCR Non-Time-Critical Removal
PO Project Officer
RA Remedial Action
RAC Response Action Contract
SCA McNamara-O'Hara Service
Contract Act
SF Standard Form
5.12 Wage Rates and Surety Bonds for Remedial and Non-Time-Critical Removal
Action Subcontracts 5-65
5.12.1 Background and Requirement 5-67
5.12.2 Roles and Responsibilities for Wage Rates and Surety Bonds for
Remedial and Non-Time-Critical Removal Action Subcontracts 5-69
Exhibits
Exhibit 5-12 Roles and Responsibilities for Wage Rates and Surety
Bonds for Remedial and Non-Time-Critical Removal
Action Subcontracts
5-70
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5,12 Wage Rates and Surety Bonds for Remedial and
Non-Time-Critical Removal Action Subcontracts
This section describes wage rates and surety bonding for remedial action
(RA) and non-time-critical removal (NTCR) action subcontracts under
Response Action Contracts (RACs). Roles and responsibilities of the
Project Officer (PO), Contracting Officer (CO), and prime contractor are
highlighted.
5.12.1 Background and Requirement
The prime contractor identifies whether each contract is a "construction"
contract or a "service" contract and applies the proper wage rates. The
Davis-Bacon Act (DBA) is the prevailing wages law for construction
workers and the McNamara-O'Hara Service Contract Act (SCA) is the
wage law for government contractor employees who provide services. In
addition to a wage rate law, any government contract and subcontract for
substantial and segregable construction exceeding $25,000 is subject to
the Miller Act, a surety bonding law.
Davis-Bacon Act
The DBA applies to any construction contract exceeding $2,000 for the
actual construction, alteration, or repair (including painting and decorat-
ing) of a public building or public work, financed in whole or in part from
federal funds.
A RAC clause in section H, DAVIS-BACON ACT WAGE DETERMINA-
TIONS FOR RAC SUBCONTRACTS, requires the prime contractor to
use the prevailing wages listed in the "General Wage Determinations
Issued under Davis-Bacon and Related Acts" when developing solicita-
tions for construction subcontracts exceeding $2,000. This guidance is issued
by the Department of Labor (DOL) and available through the Government
Printing Office (Federal Acquisition Regulation [FAR] 22.404-1).
Service Contract Act
The SCA applies to any government contract or subcontract that exceeds
$2,500, is performed in the United States, and has the principal purpose of
furnishing services through service employees. A service employee
performs a covered service and is not engaged in a bona fide executive,
administrative, or professional capacity, as defined in 29 Code of Federal
Regulations 541.
The SCA requires that workers employed by government service contrac-
tors be paid a minimum wage and be provided minimum benefits as
specified by the Secretary of Labor.
5-67
The wage law for construction
workers is the Davis-Bacon Act.
The wage law for government
contractors providing services is
the McNamara-O'Hara Service
Contract Act.
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Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The Miller Act applies to
substantial and segregable
construction exceeding $25,000
under RACs.
Examples of contract services related to Superfund sites include:
• maintenance, overhaul, repair, servicing, rehabilitation, salvage,
modernization, or modification of supplies, systems, or equipment
• routine, recurring maintenance of real property
• advisory and assistance services
• refuse removal
• operation of government-owned equipment facilities and systems
Surety Bonds
Under a RAC clause in section H, PERFORMANCE AND PAYMENT
BONDS, the Miller Act applies when there is substantial and segregable
construction under a subcontract exceeding $25,000. Although intended
primarily for construction contracts, the Miller Act applies equally to
"construction" and "other than construction" (i.e., service) contracts if
there is substantial and segregable construction exceeding $25,000.
The Miller Act (40 United States Code 270a-270f) requires the contractor
to post performance and payment bonds. A performance bond assures the
government that its projects will be completed. A payment bond assures
payments to certain subcontractors and suppliers of labor and material
under Federal projects.
Whenever the Miller Act applies, bonding is required. The CO determines
the penal amount of the performance bond by evaluating the risks associ-
ated with the project and the estimated cost of the construction activity to
calculate an amount sufficient to protect the government's interests. The
prime contractor furnishes the performance bond unless the prime con-
tractor determines, and the CO consents, that it is in the government's best
interest to allow the RA subcontractor to obtain the bond. The CO may
also consent to RA subcontractor provision of payment bonds. Payment
bonds are required only when performance bonds are required. The penal
amounts for payment bonds are listed in FAR 28.102-2.
The Miller Act does not apply, and bonding is not required, for contracts
without substantial and segregable construction exceeding $25,000.
However, performance and payment bonds may be permitted for "other
than construction" contracts (FAR 28.103-1 and -2) when the CO deter-
mines bonding to be in the government's best interest. The CO determines
the amount of the performance bond in the same manner as for contracts
where the Miller Act applies. The CO may also consent to RA subcontrac-
tor provision of payment bonds. As with those contracts, the prime
contractor furnishes the bond unless the prime contractor determines, and
the CO consents, that it is in the government's best interest to allow the
RA subcontractor to obtain the bond. In that case, the same advance
agreement and documentation is required as for contracts where the
Miller Act applies. The CO also may consent to RA subcontractor provi-
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
sion of payment bonds. Payment bonds are required only when perfor-
mance bonds are required, and the CO determines the penal amounts of
the bonds on a case-by-case basis (FAR 28.103-3).
Performance bonds under service contracts are warranted under the
following circumstances:
• government property or funds are provided to the contractor for use in
performing the contract or as partial compensation (as in retention of
salvaged material)
• a contractor sells assets to, or merges with, another concern, and the
government, after recognizing the latter concern as the successor in
interest, requires assurance that it is financially capable
• substantial progress payments are made before delivery of end items
starts
• contracts are for dismantling, demolition, or removal of improvements
when no subsequent construction work is anticipated
Four RAC clauses pertain to wage rates and surety bonding:
RAC clause in Section H, PERFORMANCE AND PAYMENT
BONDS, applies the Miller Act to substantial and segregable con-
struction exceeding $25,000 under RACs.
RAC clause in Section H, ADVANCE AGREEMENT ON BOND-
ING, allows the CO to consent to the subcontractor providing Miller
Act bonds in lieu of the prime contractor with the advance agreement
that doing so does not affect the privity of contract between the
prime contractor and the subcontractor.
RAC clause in Section H, DAVIS-BACON ACT (DBA) WAGE
DETERMINATIONS FOR RAC SUBCONTRACTS, provides for
the use of prevailing wages as determined by the Department of
Labor for all construction subcontracts exceeding $2,000.
RAC clause in Section I, SERVICE CONTRACT ACT OF 1965, AS
AMENDED, provides for minimum wages and benefits for service
employees.
5.12.2 Roles and Responsibilities for Wage Rates and Surety Bonds for Remedial
and Non-Time-Critical Removal Action Subcontracts
The PO, CO, and the prime contractor are the primary players in deter-
mining wage rates and bond requirements. Their roles are identified in
Exhibit 5-12.
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Exhibit 5-12. Roles and
Responsibilities for Wage
Rates and Surety Bonds for
Remedial and Non-Time-
Critical Removal Action
Subcontracts
Individual
PO
Role in Wage Rates and Surety Bonding
Verifies labor classifications on Standard Form (SF) 308 with CO
Discusses labor rates for SCA wage determinations with CO when
appropriate
Ensures that DBA requirements are incorporated in construction and
service-with-construction subcontracts
Requests DBA wage determination from DOL if necessary, using SF
308
Verifies information on SF 308 with prime contractor and verifies labor
classifications on SF 308 with PO
Ensures applicable SCA provisions are followed in service and service-
with-construction contracts
Reviews and forwards SF 98/98a to DOL for wage determinations under
SCA
Determines penal amounts for performance bonds and payment bonds
per FAR requirements
At prime contractor's request, may consent to subcontractor providing
performance and payment bonds
Identifies whether RA subcontract is construction or service with
construction and applies DBA or SCA wage rates accordingly
Uses DOL publication to make wage determinations for DBA
Forwards a SF 308 to CO to request a wage determination under DBA
for unpublished wage determinations
Verifies labor classification on SF 308 with CO before CO forwards SF
308 requesting wage determinations to DOL
Incorporates DBA prevailing wages when developing solicitation
subcontracts for construction worth more than $2,000
Gives CO notice of intent to make a service contract, using SF 98/98a
Incorporates SCA wage rates when applicable
May request CO's authorization to allow subcontractor to provide bonds
Furnishes performance and payment bonds to CO
Subcontractor • Furnishes performance and payment bonds upon CO consent
51-033-151B
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\iilue Engineering
SECTION
5.13
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Table of Contents
Acronyms
A/E Architect-Engineer
CO Contracting Officer
FAR Federal Acquisition
Regulation
NTCR Non-Time-Critical Removal
OMB Office of Management and
Budget
PO Project Officer
RA Remedial Action
RAC Response Action Contract
RD Remedial Design
SOW Statement of Work
VE Value Engineering
VECP Value Engineering Change
Proposal
VEP Value Engineering Proposal
WA Work Assignment
WAM Work Assignment Manager
5.13 V&lue Engineering 5-71
5.13.1 Background and Requirement 5-73
5.13.2 Roles and Responsibilities for Value Engineering 5-76
Exhibits
Exhibit 5-13 Roles and Responsibilities for Value Engineering 5-77
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5.13 Value Engineering
This section provides the background and requirements for conducting
value engineering (VE) under Response Action Contracts (RACs). VE
services typically are performed during remedial designs (RDs) and
remedial actions (RAs), and may be performed during non-time-critical
removals (NTCRs).
5.13.1 Background and Requirement
As defined per Office of Management and Budget (OMB) circular No. A-
131, VE is "an organized effort directed at analyzing the functions of
systems, equipment, facilities, services, and supplies for the purpose of
achieving the essential functions at the lowest life-cycle cost consistent
with required performance, reliability, quality, and safety." VE can be
performed by both Agency and contractor personnel. OMB Circular No.
A-131, issued on May 21,1993, requires the use of VE, when appropriate,
by Federal departments and agencies. The circular also requires EPA to
establish an Agency contact for VE.
Two VE approaches are incorporated in RACs. The first approach is a
mandatory program in which the government requires and pays for
specific VE efforts by the prime contractor or Team subcontractors during
design under Architect-Engineer (A/E) contracts. The A/E contractor and
Team subcontractors are not permitted to share cost savings resulting from
VE proposals (VEPs) submitted during the design phase.
The second approach is a voluntary, incentive-based program which
encourages RAC construction subcontractors to use their own resources to
develop and submit VE change proposals (VECPs). The construction
subcontractor submits VECPs (through the prime contractor) for project
changes that will save money and do not compromise quality or function-
ality if implemented. As an incentive for VE, the construction subcontrac-
tor receives (through the prime contractor) a portion of the savings
realized by the government. Neither the prime contractor nor Team
subcontractors can perform construction work under RACs. Consequently,
the prime contractor and Team subcontractors are not allowed to share in
cost savings resulting from VECPs. Only subpool subcontractors perform-
ing construction work are eligible to share in cost savings resulting from
VECPs.
The government reimburses the
prime contractor and Team
subcontractors for performance of
mandatory VE efforts during
remedial design; however, no cost
sharing occurs.
Only subpool subcontractors
performing construction work are
eligible to share in cost savings
resulting from VECPS.
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A VE study is performed in six
phases: information, speculation,
creative analysis, development,
presentation, and implementation.
OMB Circular No. A-131 requires Federal departments and agencies
to use VE when appropriate.
Federal Acquistion Regulation (FAR) 48.201 (f), Clauses for Supply
or Service Contracts, requires the insertion of MR 52.248-2 in
solicitations and contracts whenever the government requires and
pays for a specific VE effort in A/E contracts.
RACs contain three clauses pertaining to VE: VALUE ENGINEER-
ING—ARCHITECT-ENGINEER (FAR 52.248-2), in contract
Section H, requires the contractor to perform VE evaluation and
review and study of design documents and submit VEPs to the CO.
VALUE ENGINEERING—CONSTRUCTION (FAR 52.248-3), in
contract Section H, required in construction contracts for more than
$100,000, encourages the voluntary submission of VECPs by the
construction contractor by allowing contractor sharing of savings as
an incentive.
APPLICABILITY OF VALUE ENGINEERING CONTRACT, in
contract Section H, defines how FAR clauses 52.248-2 and 52.248-3
are applied in RACs. This clause addresses the passing of cost
savings resulting from VECPs to the construction subcontractor
through the prime contractor, and specifies that VE will be done at
the work assignment (WA) level for RACs. This clause substitutes
appropriate language into clauses 52.248-2 and 52.248-3 to effect
interpretation of the FAR clauses at the WA level.
Value Engineering in Remedial Designs
As required by FAR 52.248-2 and the RAC Statement of Work (SOW),
RACs require a VE screen for every Fund-lead RD. The Work Assignment
Manager (WAM) ensures that the RAC contractor performs a VE screen
for every RD by including this task in the WA. The contractor performs a
VE screen to determine if potential cost savings can be realized through a
change in some aspect of the RD or a reformulation of the RD. The WAM
reviews the results of the VE screen and determines whether a VE study is
warranted. The RAC contractor may be assigned the VE study task if the
contractor is capable of conducting an independent and objective study.
Alternatively, the Region may request the U.S. Army Corps of Engineers
to conduct the VE study or contract with an independent firm with the
requisite expertise.
The six-phase process of a typical VE study (information, speculation,
analysis, development, presentation and implementation) is standardized
and typically takes the form of a one-week workshop. Less complex
projects may be reviewed hi less tune. A detailed description of the VE
study process is found in the Guidance Document for Value Engineering
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Review During Remedial Design, EPA S40. The VE study is similar to the
design review, which concentrates on functional aspects, such as whether
the design works, is sufficiently reliable, and meets the designer's con-
tractual obligations, but focuses on reducing the investment necessary to
achieve those functions. That focus, however, does not preclude the VE
study team from identifying technical errors or omissions for consider-
ation during design review.
The VE study should be scheduled to minimize affecting the design
schedule. If the VE workshop and decision-making process are com-
pleted without delaying the schedule (i.e., not on the critical path), then
the only potential schedule impact is caused by a design change resulting
from the VE process and not from the VE process itself. A design change
and its associated cost are considered when EPA decides to accept or
reject the VE recommendation.
The product of the VE study is the VE study report, which includes VEPs.
A VEP is a change proposal describing the difference between the exist-
ing and proposed designs, the comparative advantages and disadvantages
of each, the VEP's impact on project cost, and the VEP's effect on design
or construction schedules. The WAM, Project Officer (PO), and Contract-
ing Officer (CO) review the VE study report and VEPs. The CO may also
request that the Design and Construction Advisor review the VE study
report and VEPs. After the CO approves a VEP, it is implemented by a
WA amendment.
Value Engineering in Remedial Actions
FAR 52.248-3, Value Engineering—Construction, provides for cost-
savings sharing between EPA and the construction subcontractor as an
incentive for the subcontractor to voluntarily submit VECPs. FAR 52.248-
3(h) provides that RAC contractors must include a clause similar to FAR
52.248-3 in their RA subcontracts of $50,000 or more and also should
include a VE clause in subcontracts of lesser value.
To ensure the VE program's effectiveness and integrity, individuals and
firms with previous involvement in the RD or other project VE activities
are not eligible to participate in the development and preparation of
VECPs.
RACs VE requirements appear in the RAC SOW under the RD and RA
work areas as shown below.
Remedial Design
In the RD work area, the following VE activities are standard subtasks:
Task 8—Preliminary Design
• Conduct and/or assist in VE screening
5-7S
EPA considers design changes and
their associated costs when
deciding to accept or reject VE
study recommendations.
A VEP is a change proposal to
save costs without sacrificing
integrity and functionality.
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Task 10—Intermediate Design
• Initiate VE study if VE screening identified potential project savings
Task 11—Pre-final/Final Design
• Report results of VE study and incorporate accepted VE recommenda-
tions into final design
Remedial Action
In the RA work area, the following VE activities are standard subtasks:
Task 5—Management Support
• Engineering support option—Supplemental engineering support for
field change requests, VE proposals, resident engineer non-conform-
ance reports, and redesign activities
Task 6—Detailed Resident Inspection (Resident Engineer)
• Review and recommend action on VE proposals
Design Assistnace
In the design assistance work area, the following VE activity is identified
as a subtask:
Task 2—Technical Assistance
• Conduct and/or assist in the technical analysis of VECPs
Value Engineering in Non-Time-Critical Removals
VE is not required for NTCRs but may be performed for large removal
efforts. The WAM decides whether to include a VE screen as part of the
engineering evaluation/cost analysis on a WA-specific basis.
5.13.2 Roles and Responsibilities for Value Engineering
The contractor performs VE activities, with the WAM, PO, and CO
reviewing and approving VE results. Exhibit 5-13 lists the roles and
responsibilities of the individuals involved in the VE process.
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
Role in Value Engineering
Ensures that VE screening and a VE study, if appropriate, are conducted
Reviews and recommends action on VE study recommendations and
VEPs
Reviews and recommends action on VECPs submitted during RA
Ensures VEPs and VECPs are in compliance with the Record of Decision
requirements
Decides if VE is necessary for a NTCR
Reviews and recommends action on VE study recommendations and
VEPs
Reviews and recommends action on VECPs submitted during RA
Receives and reviews VE study and VEPs
Authorizes contractor to incorporate approved VEPs
Implements VEPs by WA amendment
Receives and approves the VECP submitted during the RA
Consents to incorporation of VECP by subcontractor
Conducts or assists in VE screening during the RD
May conduct VE study if VE screening identifies potential project savings
during the RD
Reports results of VE study and submits VEPs
Incorporates approved VEPs into RD
Submits VECP, developed by the subcontractor during RA, to the CO
Passes entitled savings from accepted VECP on to subcontractor
51-033-168A
Exhibit 5-13. Roles and
Responsibilities for Value
Engineering
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Contractor Oversight
SECTION
5.14
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Table of Contents
Acronyms
CO Contracting Officer
FAR Federal Acquisition
Regulation
PEB Performance Evaluation
Board
PO Project Officer
PS Program Support
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
5.14 Contractor Oversight 5-79
5.14.1 Background and Requirement 5-81
5.14.2 EPA's Relationship to Contractors and Subcontractors 5-83
5.14.3 Roles and Responsibilities in Contractor Oversight 5-83
Exhibits
Exhibit 5-14 Roles and Responsibilities in Contractor Oversight 5-84
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CHAPTER S » ISSUING AND MANAGING WORK ASSIGNMENTS
5,14 Contractor Oversight
Much of the Congressional and public scrutiny of the Superfund program
has focused and will continue to focus on remedial contracting because of
the large amount of money spent in this area. Consequently, EPA must be
especially vigilant in managing and overseeing Response Action Con-
tracts (RACs) due to their size and scope. This section provides back-
ground information on required contractor oversight under RACs and
identifies the responsibilities of the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) in contractor over-
sight.
5.14.1 Background and Requirement
The oversight clause in RAC section I WORK OVERSIGHT IN ARCHI-
TECTURE-ENGINEERING CONTRACTS (Federal Acquisition Regula-
tion [FAR] 52.236-24) (April 1984) gives the CO the right to monitor
contractor compliance with overall contractual terms and conditions and
to ensure that individual work assignments (WAs) are managed properly.
Under RACs, the WAM, PO, and CO work together as a team to ensure
that contractors satisfactorily meet all contract requirements and specifi-
cations. Other Agency personnel may support this core management team.
The CO has overall responsiblility for administrative monitoring of
contract terms and conditions but relies on PO and WAM assistance for
monitoring the contract's technical aspects. The PO monitors the technical
aspects of program support (PS) activities and acts as a liaison between
the CO and WAM on specific WA performance issues. The WAM ensures
that the contractor meets individual WA requirements and specifications.
If these requirements are not met, the CO has the right to stop all or any of
the work called for by the contract, according to RAC section F, STOP-
WORK ALTERNATE I (FAR 52.212-13) (August 1989).
Note that the contractor is not in default because of failure to perform this
contract under its terms if the failure arises from causes beyond the
control of the contractor, as prescribed by RAC section I, EXCUSABLE
DELAYS (FAR 52.249-14) (April 1984).
Several methods are used to monitor contractor performance and WA
progress:
Regular Communication—Regular interaction between EPA and the
contractor is necessary for effective contractor oversight.
Site Visits—The inspection clauses in RAC section E, INSPECTION
AND ACCEPTANCE (EP52.246-100) (April 1984) and INSPECTION
OF SERVICES COST-REIMBURSEMENT (FAR 52.246-5) (April 1984)
5-81
The WAM, PO, and CO work
together as a team in contractor
oversight.
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give EPA the right to inspect and test all work performed under the
contract to determine if the contractor is providing the requested products
and services.
Work Plan Review—The proposed costs, technical approach, staffing
requirements, major milestones, individual tasks, deliverables, and
schedules for completion listed in the the work plan (WP) make it a useful
tool for monitoring contractor performance.
Technical and Financial Progress Report Review—The contractor's
written progress reports describe progress under the contract and on
specific WAs. The content and format of these reports are outlined in the
contract and can be supplemented in the WA statement of work (SOW).
Deliverable Review—The WAM identifies and indicates acceptance of
WA deliverables using the WAM Documentation of Invoice Review and
Approval form. The government can recoup the provisional base fee
already paid to the contractor if, upon WA completion, the final WA
performance rating is unsatisfactory.
Audits—The audit clause in RAC section I, AUDIT-NEGOTIATION
(FAR 52.215-2) (February 1993), gives the CO the right to examine and
audit books, records, documents, and other evidence and accounting
practices, regardless of form or type.
RAC clauses INSPECTION AND ACCEPTANCE (EP 52.246-100)
(April 1984) and INSPECTION OF SERVICES COST-REIM-
BURSEMENT (FAR 52.246-6) (April 1984), in contract Section E,
give EPA the right to inspect and test all work performed under the
contract to determine if the contractor is providing the requested
products and services.
RAC clause STOP-WORK ALTERNATE I (FAR 52.212-13) (Au-
gust 1989), in Section F, gives the CO the right to stop work at any
time during the term of the contract.
RAC clause AUDIT-NEGOTIATION (FAR 52215-2) (February
1993), in Section I, gives the CO the right to audit contractor books,
records, and documents.
RAC clause EXCUSABLE DELAYS (FAR 52.249-14) (April 1984), in
Section I, states that contractors are not liable for delays or failure to
perform work for reasons beyond their control.
RAC clause WORK OVERSIGHT IN ARCHITECrURE-ENGINEER-
ING CONTRACTS (FAR 52.236-24) (April 1984), in Section I,
gives the CO the right to oversee and monitor contractor work under
the contract.
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5.14.2 EPA's Relationship to Contractors and Subcontractors
EPA oversight of the contractor does not include direct oversight of
subcontractors. The prime contractor has sole responsibility for the
performance and management of its subcontractors. EPA's only direct
contractual relationship is with the prime contractor. EPA may not direct
the activities of any subcontractor. Specifically, a WAM should not
recommend or request to have specific subcontractor personnel assigned
to work on a WA or invite subcontractor personnel to attend a meeting
related to a WA. The prime contractor determines the subcontractor's WA
role.
Under RACs, EPA's role regarding subcontractors is limited to subcon-
tract review and consent (section 4.7) and determining the bonding
requirements for subcontractors (section 5.12). Although subcontractor
performance may be part of a prime contractor's work on a WA, EPA
interacts only with the prime contractor when overseeing and monitoring
contract performance. EPA may ask the prime contractor to communicate
information to subcontractors, but WAMs, POs, and COs only work
directly with prime contractors. COs may have incidental contact with
subcontractors when reviewing and approving subcontractors and deter-
mining bond amounts.
5.14.3 Roles and Responsibilities In Contractor Oversight
The WAM, PO, and CO work as a team supported by other EPA personnel
as appropriate. Each member of the team is responsible for monitoring a
different aspect of contractor performance. The CO is responsible for
overall contract management and focuses on the administrative aspects of
the contract. The CO is not involved in the day-to-day operation and
oversight of WAs. The CO only becomes involved when problems or
situations requiring special attention arise. Most contractor oversight on
individual WAs is performed by the technical monitors, the PO and WAM,
who advise the CO on technical issues and assist the CO in decision-
making.
The PO oversees contractor technical performance. This entails examining
overall contractor performance, working to identify and resolve problems,
and bringing problems to the CO's attention. The WAM oversees contrac-
tor performance on individual WAs and ensures that the contractor meets
individual WA specifications and requirements. The PO generally acts as
a WAM for PS WAs. The PO's role occasionally may overlap with the
WAM's role when monitoring individual WAs.
Exhibit 5-14 lists the roles and responsibilities for the WAM, PO, CO,
and contractor in contractor oversight.
5-83
COs work directly with prime
contractors and have only
incidental contact with
subcontractors.
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Exhibit 5-14. Roles and
Responsibilities in Contractor
Oversight
Individual
PO
Role in Contractor Oversight
Determines whether SOW requirements are accomplished effectively
and efficiently
Oversees timeliness and quality of contractor services through monitoring
WA performance and reviewing WPs, technical and financial progress
reports, and deliverables throughout the life of the contract
Documents and notifies PO or CO of unsatisfactory contractor services
or products
Ensures that the contractor implements appropriate action to remedy
deficiencies
Maintains regular communication with prime contractor
May conduct site visits
Reviews monthly RAC progress reports
Inspects and accepts deliverables
Evaluates contractor WA performance
Monitors technical performance of contractor for PS activities and all
WAs
Assists in the resolution of performance issues identified by the WAM
on individual WAs
Evaluates monthly technical and financial reports for PS
Assures accurate invoice accounts established on WAs
Reviews monthly RAC progress reports
Conducts site visits
May act as WAM for PS WAs
Evaluates contractor PS performance for Performance Evaluation
Board (PEB)
Ensures that contractors meet all contract terms and conditions of the
contract
Provides clarification and interpretation of contract clauses
Evaluates performance with feedback from PO and WAM
Resolves problems or issues identified by PO and WAM
Reviews and approves conflict of interest plan
Reviews Financial Administrative Contracting Officer reports
Reviews and consents to subcontracts
Reviews monthly RAC progress reports
Evaluates contractor performance for PEB
Provides monthly progress reports and invoices
Updates standard operating procedures as necessary
Responds to Regional management team inquiries regarding WA activities
51-033-1236
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Site Demobilization
SECTION
5.15
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Table of Contents
Acronyms
CO Contracting Officer
DCMC Defense Contract
Management Command
O&M Operations and
Maintenance
PA Property Administrator
PO Project Officer
PRP Potentially Responsible
Party
RI/FS Remedial Investigation/
Feasibility Study
WA Work Assignment
WAM Work Assignment Manager
5.15 Site Demobilization 5-85
5.15.1 Background and Requirement 5-87
5.15.2 Roles and Responsibilities for Site Demobilization 5-88
Exhibits
Exhibit 5-15 Roles and Responsibilities for Site Demobilization 5-88
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,15 Site Demobilization
This section provides background information on demobilizing a site after
a remedial or removal action is complete and identitifes the responsibili-
ties of the Work Assignment Manager (WAM), Project Officer (PO), and
Contracting Officer (CO) in overseeing site demobilization. Although
written specifically for site demobilization following remedial and
removal actions, the information in this section may be used for remedial
investigation/feasibility study (RI/FS) demobilization as applicable.
5.15.1 Background and Requirement
Site demobilization occurs after a remedial or removal action has been
performed and EPA determines that the work is complete. Site demobili-
zation encompasses the activities required to:
• dismantle and remove construction equipment from the site
• remove temporary buildings and structures from the site
• remove all unnecessary materials
• complete all necessary restoration or replacement of public or private
property affected by remediation activities
• transfer or dispose of government property as instructed by EPA or the
Defense Contract Management Command (DCMC)
• clean up and remove site debris
• transfer all finalized documentation collected during the construction
such as log books and records to EPA
• disconnect utilities no longer needed on site
• transfer responsibility for continuing site services, such as utilities and
phone, to the incoming party responsible for operations and mainte-
nance (O&M)
• relinquish site responsibility to the State, Tribal Government, or
potentially responsible party (PRP)
The Response Action Contract statement of work requires the
contractor to perform site demobilization in remedial and removal
action work assignments (WAs) under a separate task, "Project
Completion and Closeout."
Site demobilization generally occurs at the end of a remedial or removal
action. However, if the contract expired or was terminated while an action
was in progress, the contractor would be required to demobilize at that
time and transfer responsibility to the new contractor.
5-87
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Site demobilization generally
occurs at the end of a remedial or
removal action.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 5-15. Roles and
Responsibilities for Site
Demobilization
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
5.15.2 Roles and Responsibilities for Site Demobilization
The primary player in site demobilization is the contractor. The WAM,
PO, CO, Property Administrator (PA), Contract Property Coordinator, and
Plant Clearance Officer play roles in overseeing demobilization and
providing instructions for government property disposition. Through an
interagency agreement, DCMC serves as EPA's PA (see Chapter 8 for
more information on government property acquisition and management).
The roles of individuals involved in site demobilization are identified in
Exhibit 5-15.
Individual
Role in Site Demobilization
During the remedial planning phase, develops a strategy to address
property needs and disposition
Determines WA site restoration requirements
Resolves transfer issues and O&M needs with the incoming party
Determines O&M site access needs with the incoming party
Determines when the remedial or removal action is functional
Certifies site transfer
Acts as technical advisor to the CO and PA in the development of the
final disposition instructions
Certifies that property left in place is part of the remedy
Coordinates with the PO and PA to recommend final property disposition
instructions
Property • Responsible for all property administration functions from acquisition
Administrator to final disposition
Contract Property
Coordinator
Plant Clearance
Oicer
• Internally screens government property for reuse within Superfund
• Issues the final property disposition instructions
Submits final government-furnished property inventory to the PA
Removes property, machinery, temporary buildings, or materials from
sites according to PA instructions
Transfers responsibility for the utilities, phone, and licenses to the
incoming PRP
Prepares and transfers site records to EPA or the Federal Records
Center, as instructed by EPA in the WA or through a technical direction
memorandum
51-03341C
5-88
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Work Assignment Closeout Procedures
SECTION
5.16
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Table of Contents
Acronyms
CO Contracting Officer
FRC Federal Records Center
LOE Level of Effort
PA Property Administrator
PEB Performance Evaluation
Board
PO Project Officer
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WACN Work Assignment Closeout
Notification
WACR Work Assignment
Completion Report
WAM Work Assignment Manager
5.16 Work Assignment Closeout Procedures 5-89
5.16.1 Background and Requirement 5-91
5.16.2 Roles and Responsibilities for Work Assignment Closeout 5-92
Exhibits
Exhibit 5-16 Roles and Responsibilities for Work Assignment Closeout.... 5-93
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,16 Work Assignment Closeout Procedures
This section provides background information and describes the responsi-
bilities of the Work Assignment Manager (WAM), Project Officer (PO),
and Contracting Officer (CO) in work assignment (WA) closeout.
5.16.1 Background and Requirement
WA closeout is specified as a separate task in every Response Action
Contract (RAC) WA. Closeout activities are specified in the WA and
included by the contractor in the work plan and cost estimate. WA close-
out involves agreements between EPA and the contractor regarding:
• final evaluation of contractor performance using the Work Assignment
Completion Reports (WACRs) by EPA and the contractor
• organization and retirement of WA records
• government property disposition
• verifying and processing final WA costs
The RAC statement of work (SOW) requires the contractor to
perform WA closeout as a separate task in each WA.
Work Assignment Completion Report
There are two WACR forms. One is the EPA-prepared WACR used to
evaluate the contractor's overall performance on the WA. The other is the
contractor-prepared WACR used for self-evaluation of overall WA perfor-
mance. The contractor WACR also summarizes WA level of effort (LOE)
and cost. '
Both the EPA- and contractor-prepared WACRs provide information on
contractor WA performance, cost, and schedule. They include evaluations
in the seven performance (award) fee evaluation categories: project
planning, technical competence and innovation, schedule and cost control,
resource utilization, reporting, effort, and small and small disadvantaged
business utilization (see Chapter 6).
The contractor-prepared WACR is submitted to EPA and is used as part of
the contractor review. The EPA-prepared WACR is forwarded to the
Performance Evaluation Board (PEB) and is used to determine the
contractor's performance (award) fee.
Records Organization and Retirement
Both the contractor and EPA perform records organization and retirement
activities. RAC clause H.31 -RETENTION AND AVAILABILITY OF
5-91
The contractor-prepared
WACR is one of the key
deliverable* under a WA
closeout task.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
WA records must be retained until
disposal permission is obtained
from the CO.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
CONTRACTOR FILES requires the contractor to retain original records
relating to the contract until:
• all litigation involving the records has been settled and CO approval is
obtained
• 10 years have passed from the date of final payment on the contract, no
litigation involving the records is being instituted, and CO approval is
obtained
In addition, the WA SOW requires the contractor to maintain parallel files
with EPA throughout WA performance. This enables the Region to
compare EPA and contractor files, if necessary, to ensure that the WA files
are complete. After the PO and WAM WA files are reviewed and com-
plete, the WAM and PO may retire them to the Federal Records Center
(FRC). WA file closeout should be performed at WA closeout throughout
the life of the contract.
RAC clause H.31 -RETENTION AND AVAILABILITY OF CON-
TRACTOR FILES and the WA SOW both require the contractor to
maintain and retain WA records.
Government Property Disposition
In some instances, the government provides property to the contractor or
authorizes the contractor to acquire property for site use. During WA
closeout, the Property Administrator (PA), in consultation with the WAM,
PO, and CO, determines the disposition of government property in
contractor possession. Additional information on government property
disposition is located in Chapter 8.
Verification and Processing of WA Charges
EPA reviews WA charges and ensures that charges are accurate and
processed promptly so that the final WA invoice can be submitted to the
Financial Management Center at Research Triangle Park in a reasonable
amount of time. As part of the annual closeout, the government estab-
lishes the final indirect rates. If these rates differ from the provisional
rates billed during the year, the contractor invoices (debits or credits) for
the difference. See section 4.13.1 for annual closeout procedures.
5.16.2 Roles and Responsibilities for Work Assignment Closeout
Both the Region and the contractor play key roles in the WA closeout
process. Specific responsibilities of individuals involved in WA closeout
are identified in Exhibit 5-16.
5-92
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Individual
PO
Role in Work Assignment Closeout
Notifies PO that WA is complete and submits the Work Assignment
Closeout Notification (WACN) Work Assignment Form
Prepares WACR
Ensures that files are complete and submitted to the FRC
Consults with PA regarding the disposition of government property
Approves final WA cost and LOE
Reviews and approves EPA's WACN
Approves and signs the WACR and includes EPA and contractor WACRs
in package to PEB
Ensures files are complete and submitted to the FRC
Consults with PA regarding the disposition of government property
Approves final WA cost and LOE
Reviews and approves final WA invoice
• Approves and issues the WACN
• Consults with PA regarding the disposition of government property
• Reviews and approves final WA invoice
• Approves final WA cost and LOE
Property • Recommends the disposition of government property based on
Administrator consultations with WAM, PO, and CO
• Prepares and submits WACR (self-evaluation)
• Maintains organized WA records
• Submits a final inventory of government property and disposes of the
property according to the government's instructions
• Submits final WA costs and final WA invoice
51-033-108D
Exhibit 5-16, Roles and
Responsibilities for Work
Assignment Closeout
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
5-93
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Bibliography
SECTION
5.17
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Guidance Documents
Bednar, Richard. Construction Contracting. The George Washington
University.
Boyd, David. Guidelines for Work Assignment Closeout.
Cole, Peter S. Holbrook and Kellogg. 1993. How to Write a Statement of
Work.
EPA/OERR. January 1989. ARCS Work Assignment Management Field
Guide. OSWER Directive #9242.6-01.
EPA/OERR. August 1989. ARCS Contracts Users'Manual. Publication
No. 540/G-89/008.
EPA/OERR. September 1989. ARCS Construction Contract Modification
Procedures. OSWER Directive #9355.5-01/FS.
EPA/OARM. December 1989. Contract Administration.
EPA/OERR/GAD/PCMD. January 1992. Superfund Guidance, Davis
Bacon Act/Service Contract Act and Related Bonding.
EPA/OWPE. April 1992. TES V+ Users'Manual, Section II-TES Work
Assignment Management.
EPA. March 26, 1993. Guide for Preparing Independent Government Cost
Estimates.
EPA/OSWER. July 29, 1993. Guidance on Preparing Independent Gov-
ernment Cost Estimates (IGCEs). OSWER Directive 9202.1-12.
EPA. November 12, 1993. The Role of the Work Assignment Manager in
the Independent Government Cost Estimates (IGCE) Process.
EPA. February 1994. Cost Management Manual for the Remedial and
Enforcement Programs. Document 9202.1-20, PB 94-963401, EPA540-R-
93-085.
EPA/OWPE, CERCLA Enforcement Division, Contracts and Planning
Branch, Contracts Management Section. February 16, 1994. Regional
Enforcement Support Services (ESS) Users' Manual.
EPA. Region 6. Independent Government Cost Estimates Handbook.
Holbrook and Kellogg. January 1992. Desk Guide to Preparing State-
ments of Work.
5-97
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Reports
EPA. October 1991. Implementation of the Superfund Alternative Reme-
dial Contracting Strategy, Report of the Administrator's Task Force.
Publication 21T-2001.
Regulatory and Other Sources
Commerce Clearing House, Inc., Chicago, Illinois. January 1994. Federal
Acquisition Regulation as of January 1,1994.
EPA. June 1992. "ARCS Roles and Responsibilities - PO/CO Meeting
Workgroups".
EPA/OERR. May 1993. Superfund Response Action Contracts. Quick
Reference Fact Sheet. Publication 9242.2-08FS.
EPA/OAM. March 24, 1994. RAC Advisory and Assistance Services-
Information on the Statement of Work.
Nash and Schooner. 1992. The Government Contracts Reference Book
Superfund PO/CO Conference, Dallas, Texas. June 24,1993. Completion
Contracts Presentation/Workshop.
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CHAPTER 9 » DELIVERY OF ANALYTICAL SERVICES
This chapter provides background information on the conditions and
alternatives for the delivery of analytical services under Response Action
Contracts (RACs) and identifies Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) responsibilities for
acquiring and managing analytical services.
9,1 Background and Requirement
The term "analytical services" encompasses a wide variety of functions,
including sample analysis, analytical support, data validation, data evalua-
tion, and oversight of quality assurance (QA) activities. Overseeing a
contractor engaged in these activities requires a knowledge of sampling
practices, QA, chemistry, geology, and, occasionally, biology.
Analytical services may be acquired through existing EPA providers—the
Contract Laboratory Program (CLP), the Regional Environmental Ser-
vices Division (BSD) laboratory, or a Regional laboratory contract—or
may be contracted through RACs. It is usually advisable to attempt to use
existing EPA analytical services providers before attempting to obtain
RAC contractor assistance.
The RAC statement of work (Contract Attachment A) specifies that
the contractor may be required to provide analytical services under
several different site-specific work areas, including:
• Remedial Investigation/Feasibility Study (RI/FS)
• Remedial Design (RD)
Non-time Critical Removal (NTCR) Support
RI/FS Oversight
• Remedial Design/Remedial Action (RD/RA) Oversight
Removal Oversight
• Sampling and Analytical Support
• Pre-design Investigation
Treatability Study/Pilot Testing
• Assessment of Risk
Separate work assignments (WAs) can be issued for each contract work
area. Analytical work under RACs also may be performed as a task within
a WA, such as the RI/FS, RD, or other work area listed above. Before
analytical work is procured using RACs, the Region must decide which of
three strategies to use. Each approach may be appropriate and each has
different advantages. The three approaches are:
Analytical services may be
acquired through CLP,
Regional BSD laboratories,
a Regional laboratory
contract, or RACs.
9-1
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
A RAC contractor may be tasked to
perform analytical work under an
open-ended analytical support WA,
as part of a site-support WA, or an
event-specific analytical
support WA.
Region-specific guidance should
be consulted when determining
how analytical services should be
acquired and managed.
Proper planning and use of
technical experts are needed to
successfully acquire and manage
analytical services.
Open-ended approach—The open-ended approach uses an open-ended
analytical support WA (i.e., Sampling and Analytical Support) that
provides analytical support services to many different events and sites. A
multi-site WA cannot include analytical support for preliminary assess-
ments or NTCRs because they require separate funding. Sections 4.3 and
5.8 address funding issues.
WA-task approach—The WA-task approach includes analytical services as
a task within a WA for site-specific field work.
Event-specific approach—The event-specific approach uses an event-
specific analytical support WA that provides support for one event at a
single site.
In general, the factors that influence the relative advantages and disadvan-
tages of the three options involve paperwork requirements, consistency of
communication with a contractor, and non site-related costs. For example,
both the open-ended approach and the WA-task approach probably will
have about the same amount of paperwork (the event-specific approach
likely will require much more), but the open-ended approach should
provide more consistency in communications with the contractor (espe-
cially with respect to analytical performance expectations), while the WA-
task approach likely will result in lower project management costs in-
curred by the contractor.
Each Region also considers Region-specific factors that influence the
acquisition method choice. Unique geographic, site, and contaminant
characteristics affect each Region's analytical services requirements and
the way analytical services are structured and acquired. Regions, there-
fore, may differ in their routine use of the three acquisition options
identified above and Region-specific guidance should be consulted.
Proper planning, including consultation with technical experts, is essential
when acquiring and managing analytical services. Proper planning during
initial WA preparation can minimize inadequate sampling, inappropriate
or unnecessary analyses, and the resulting insufficient or incomplete data.
Proper planning also can prevent EPA from being billed for unnecessary
or unrequested analytical services.
The configuration of the analytical support WA is influenced by the scope
of the analytical work and whether the site's project manager acts as the
WAM for the analytical functions. The project manager may benefit from
having someone else manage the analytical work for large events (open-
ended approach).
9-2
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CHAPTER 9 » DELIVERY OF ANALYTICAL SERVICES
9,2 Roles and Responsibilities for Analytical Services Acquisition
and Management
Depending on Regional preference, the analytical services WAM may be
the EPA project manager (the Regional Project Manager or On-Site
Coordinator) for the site, another designated official from an office such
as the Regional Sample Control Center or Customer Service Office, or the
RAC PO. Under RACs, the WAM is responsible for acquiring and manag-
ing analytical services and therefore should have knowledge and experi-
ence directly related to analytical services acquisition. The WAM should
have knowledge of and previous experience with sampling practices, QA
procedures, chemistry, and geology. The PO and CO provide support in
preparing and issuing the analytical services WA or WA task and in
approving the contractor's work plan (WP). (See Chapter 5 for a summary
of the WAM, PO, and CO roles and responsibilities for issuing and
managing WAs.)
The roles and responsibilities of the WAM, PO, CO, contractor, and
subcontractor in acquiring and managing analytical services are shown in
Exhibit 9-1.
Individual
Role in Analytical Services Acquisition and Management
Identifies need for analytical services and develops specifications for
them
Prepares WA, including detailed specifications for analytical services
Reviews and approves contractor-prepared Sampling and Analysis Plan
(SAP)
Monitors WA performance to ensure that analytical services performed
are consistent with stated data quality objectives and that products meet
required specifications
Determines if data are usable
Coordinates analytical data package file retirement
Reviews and concurs with WA and WP (see Chapter 5)
Reviews and approves WA and WP (see Chapter 5)
Reviews and consents to subcontractors
Prepares and submits WP (see Chapter 5)
May prepare and submit SAP
May subcontract for analytical work as detailed in the SAP
May perform a data validation review of analytical work or subcontract
this function to another subcontractor
Submits analytical data package to WAM
May perform a data usability review
Submits all files to retention center as directed by WAM
Subcontractor(s) • Performs analytical work as detailed in the SAP
(if applicable) • May inspect work of previous subcontractor that performed the analysis
• May perform a data validation review of previous subcontractor's work
Exhibit 9-1. Roles and
Responsibilities for Acquiring
and Managing Analytical
Services
51-033-160B
9-3
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9,3 Bibliography
Guidance Documents
EPA/OAM. June 30,1993. Performance of Analytical Services Under
ARCS. Contracts Guidance Document 93-04.
Memoranda
EPA/OSWER. January 27,1993. "Decision on the Superfund Delivery of
Analytical Services Strategy". Memorandum from Richard Guimond,
Deputy Assistant Administrator, OSWER.
9-4
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Response Action Contract
(RAQ Users' Guide
Volume 1: Reference Guide
Administering the
Performance
(Award) Fee Plan
CHAPTER
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FDD Fee Determination Official
PEB Performance Evaluation
Board
PEF Performance Evaluation
Form
PIRS Performance Index Rating
Score
PO Project Officer
PS Program Support
RAC Response Action Contract
RES Regional Evaluation
Summary
WA Work Assignment
WACR Work Assignment
Completion Report
WAM Work Assignment Manager
6.1 Background and Requirement 6-1
6.1.1 Base and Performance (Award) Fee Provisions 6-1
6.1.2 Documentation of Performance Evaluations 6-4
6.1.3 Development of Performance Index Rating Score 6-5
6.2 Roles and Responsibilities for Administering the
Performance (Award) Fee Plan 6-6
6.3 Bibliography 6-7
Relationship of Contractor Performance and Fee Structure.... 6-2
Payment of Base Fee 6-3
Roles and Responsibilities for Administering the Performance
(Award) Fee Plan 6-6
Exhibit 6-1
Exhibit 6-2
Exhibit 6-3
MAY 31, 1995
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CHAPTER 6 » ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
This chapter provides background information and describes the roles and
responsibilities for administering the base and performance (award) fee
provisions of the Response Action Contracts (RACs).
6,1 Background and Requirement
Contractor performance evaluations for active work assignments (WAs)
that meet contract-specified minimums and performance (award) fee
determinations for completed WAs are performed semiannually, in
accordance with the contract Performance (Award) Fee Plan.
Contract fee provisions are specified in two contract clauses and the
Performance (Award) Fee Plan attachment.
The PAYMENT OF BASE FEE clause in contract Section G speci-
fies that the base fee will be paid provisionally on the basis of
percentage of work completed. This clause states that the contractor
shall return all base fee to the government for WAs that receive a
final performance rating of "unsatisfactory." The clause also states
that Fee Determination Official (FDO) fee determinations are not
subject to the disputes clause.
The AWARD FEE clause in contract Section G specifies that every
six months the government will subjectively evaluate the quality of
contractor performance according to the award fee plan. This clause
gives the government the right to change unilaterally the award fee
plan as long as the contractor is notified prior to the start of the six-
month evaluation period during which the change will occur. The
clause also states that Fee Determination Official (FDO) fee determi-
nations are not subject to the DISPUTES clause.
The PERFORMANCE (AWARD) FEE PLAN, a contract attachment,
describes administration of the base and award fee provisions of the
contract.
6.1.1 Base and Performance (Award) Fee Provisions
The contract specifies payment of two types of fees—base fee and perfor-
mance (award) fee—and contains separate provisions regarding payment
of base fee and performance (award) fee. As shown in Exhibit 6-1,
RACs' fee structure promotes performance excellence by providing for
fees commensurate with contractor performance.
6-1
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Exhibit 6-1, Relationship of
Contractor Performance and
Fee Structure
The contractor retains the base fee
for completed WAs rated
"satisfactory" or above. If the
final WA performance rating is
"unsatisfactory," the contractor
must return all provisional base fee
received for that WA.
Satisfactory
Contractor retains all base fee,
but receives no performance
(award) fee
Outstanding -,
Exceeds
Expectations
Unsatisfactory
Contractor returns all
provisionally paid base fee to
government and receives no
performance (award) fee
Contractor
retains all
base fee and
receives
60-100%
performance
(award) fee
51-033-184B
Base Fee Provisions
The purpose of the base fee is to compensate the contractor for risk and
provide an incentive for satisfactory work. The base fee applies to both
term-form and completion-form WAs, and to both program support (PS)
and site-specific activities. Base fee is paid to the contractor provisionally
based on the percentage of work completed.
• For term-form WAs, the percentage of work completed is the ratio of
direct labor hours performed to the direct labor hours authorized in the
contract.
• For completion-form WAs, the percentage of work completed is the
ratio of incurred costs to total work plan budget.
Contractors claim the provisional base fee amount incrementally on their
monthly invoices. Payment of base fee is depicted in Exhibit 6-2.
The base fee does not vary with performance and is retained fully by the
contractor as long as the contractor's final performance rating for a
completed WA is "satisfactory" or above. If the contractor's final perfor-
mance rating on a completed WA is "unsatisfactory," then the contractor
is contractually obligated to return to the government all base fee received
provisionally for that WA. The contractor returns the base fee in the form
of a credit for the appropriate amount on the next voucher. No interest
payments will be made to the government on returned base fees. The
contractor cannot challenge the FDD's written base fee determinations
under the disputes clause of the contract.
The base fee pool for the WA is calculated as a percent of the WA fee-
bearing estimated costs. See the specific terms of individual contracts for
6-2
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CHAPTER 6 • ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
Monthly
Contractor
Invoices
End of
WA
The base fee is paid provisionally to the contractor each month on
the basis of percentage of work completed during that month.
51-033-142A
the actual negotiated percentage rates for base fee payable to contractors
and Team and subpool subcontractors.
Some Regions have included language in the contract's Performance
(Award) Fee Plan that reduces the base fee pool when the contractor
receives an "unsatisfactory" performance rating for any evaluation period
during WA performance. In this case, the WA's base fee pool is reduced
commensurate with the amount of base fee that could have been earned
during the evaluation period for which the contractor received the "unsat-
isfactory" rating.
Performance (Award) Fee Provisions
The performance (award) fee affords the contractor an opportunity to earn
additional fee commensurate with performance. The performance fee
applies to both term-form and completion-form WAs, and to both PS and
site-specific activities. If, in the final WA evaluation, the contractor's
performance receives a rating of "exceeds expectations" or "outstanding,"
then the contractor receives from 60 percent to 100 percent of the avail-
able performance fee for that WA. Because performance fee is payable
only on completed WAs with a final rating of "exceeds expectations" or
"outstanding," the performance fee motivates the contractor to provide
excellence in performance and products.
6-3
Exhibit 6-2, Payment of Base Fee
Performance fee is payable only
on WAs that receive a final
performance rating of "exceeds
expectations" or "outstanding."
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The FDO makes the final
determination of performance
(award) fee amount.
In term-form WAs, the performance (award) fee pool is established as a
percentage of the WA fee-bearing estimated costs. See the specific terms
of individual contracts for the actual negotiated percentage rates for
performance (award) fee payable to contractors and Team and subpool
subcontractors. If the Peformance Evaluation Board (PEB) evaluates
contractor performance on a completed WA as "exceeds expectations" or
"outstanding," the contractor receives from 60 percent to 100 percent of
the negotiated performance (award) fee pool for the WA.
In completion-form WAs, the Contracting Officer (CO) establishes the
amount of the WA performance (award) fee pool during WA negotiations.
If the PEB determines that the contractor's end products meet the specifi-
cations and acceptance criteria in the WA and rates contractor perfor-
mance as "exceeds expectations" or "outstanding," then the contractor
receives from 60 percent to 100 percent of the negotiated performance
(award) fee.
For both term- and completion-form WAs, the PEB recommends the
percentage of the performance (award) fee and the FDO makes the final
determination of the amount of performance (award) fee the contractor
will receive. The contractor cannot challenge the FDO's written perfor-
mance (award) fee determinations under the DISPUTES clause of the
contract.
Some Regions have included language in the contract's performance
(award) fee plan that reduces the performance (award) fee pool when the
contractor receives an "unsatisfactory" performance rating for any evalua-
tion period during WA performance. In this case, the performance
(award) fee pool would be reduced commensurate with the amount of
performance (award) fee that could have been earned during the evalua-
tion period for which the contractor received the "unsatisfactory" rating.
6.1.2 Documentation of Performance Evaluations
Three types of forms are used to document contractor performance on
individual WAs.
Performance Evaluation Form (PEP)
The PEF is used as a summary evaluation report to evaluate the
contractor's overall performance on individual PS and site-specific WAs
during the six-month evaluation period. It is also used on an ad hoc basis
as a performance event report to document performance problems and
outstanding performance. Used as a performance event report, the PEF
provides immediate feedback to the contractor. It is particularly useful in
notifying the contractor of performance deficiencies so that the contractor
can take corrective action before the end of the evaluation period. The
performance event report PEFs provide valuable real-time information
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CHAPTER 6 » ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
that is used in preparing the summary evaluation report PEF at the end of
the evaluation period.
Regional Evaluation Summary (RES)
The RES provides a summary performance rating on all active WAs, and
serves as the primary mechanism for documenting satisfactory WA
performance for the six-month evaluation period. The RES provides a
complete record of project performance on WAs performed by the
contractor, facilitating the preparation of work assignment completion
reports (WACRs) and the determination of performance (award) fee for
completed WAs.
Work Assignment Completion Report (WACR)
The WACR provides a concise review of the contractor's project perfor-
mance on individual WAs and is used to recommend the final WA perfor-
mance rating. A WACR is prepared by the contractor as a self-evaluation
and by EPA as an overall performance evaluation for every WA com-
pleted.
6.1.3 Development of Performance Index Rating Score
The Performance Index Rating Score (PIRS) is a numerical score de-
signed to provide a composite rating of a RAC contractor's performance
on all active WAs. The PIRS consists of two components:
• Rating of site-specific performance on technical WAs
• Rating of PS performance on PS WAs
The PIRS enables the Project Officer (PO) to rank the relative perfor-
mance of all RAC contractors in the Region. This ranking is used as a
primary factor in allocating new WAs among contractors. The PIRS is
developed during the semiannual performance evaluation process and
approved by the PEB before use in allocating work.
The PIRS is derived from the contractor performance ratings that are
included on the RES. The RES includes a numeric performance rating
for each site-specific and PS WA on a scale of zero to one-hundred. The
PIRS is a weighted average of the RES ratings for each WA, based on the
level of effort used on the WAs during the rating period. The weighted
average RES rating for site-specific work accounts for 75 percent of the
PIRS and the weighted average RES rating for PS accounts for 25 per-
cent.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 6-3. Roles and
Responsibilities for
Administering the Performance
(Award) Fee Plan
6,2 Roles and Responsibilities for Administering the Performance
(Award) Fee Plan
The Work Assignment Manager (WAM), PO, CO, and PEB are the
contract performance monitors. Exhibit 6-3 identifies the responsibilities
of the individual performance monitors in administering the RAC Perfor-
mance (Award) Fee Plan.
Individual Role in Administering the Performance (Award) Fee Plan
Prepares PEFs for WAs active during the evaluation period
Prepares WACRs for WAs completed during the evaluation period
Attends PEB meeting, if requested, providing additional justification for
ratings
Prepares PEFs for PS WAs active during the evaluation period
Prepares WACRs for PS WAs completed during the evaluation period
Oversees and organizes the overall WA evaluation process
Reviews contractor-prepared WACRs and resolves questions with the
contractor and WAM as needed
Coordinates with the WAMs and CO to provide justification for
recommended performance ratings
Performs a quality control check to ensure that all evaluations are fully
justified
Prepares RES
Prepares package of performance evaluation materials for the PEB
Presents evaluation summary and highlights to the PEB
Prepares the PEB report based on PEB findings and recommendations
Coordinates with the CO, as needed, to ensure that PEB deliberations
and fee recommendations are accurately addressed in the PEB report
Coordinates and chairs contractor de-briefing within two weeks after
PEB meeting
Prepares PEFs for PS WAs active during the evaluation period
Prepares WACRs for PS WAs completed during the evaluation period
Calculates available performance (award) fee for completed WAs
Participates in PEB meeting
Coordinates with PO during preparation of PEB report
Develops final performance (award) fee calculations
Prepares evaluation/performance (award) fee letter for FDO signature
Prepares contract modification authorizing contractor to invoice for FDO-
approved fee amount and adjusting contract performance (award) fee
pool
Performance • Reviews performance evaluation materials prepared by PO
Evaluation • Conducts deliberations concerning contractor performance on active
Board and completed WAs and makes fee recommendations for completed
WAs
• PEB chairperson ensures that PEB report accurately reflects the
deliberations, performance determinations, and fee recommendations
of the PEB and signs the PEB report
Fee Determination . Makes final determination of performance (award) fee amount
Official . issues evaluation/performance (award) fee letter to contractor
6-6
51-033-143A
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CHAPTER 6 » ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
6.3 Bibliography
Regulatory and Other Sources
Commerce Clearing House, Inc., Chicago, Illinois. January 1994. Federal
Acquisition Regulation as of January 1,1994. Part 16, Types of Contracts,
and Part 36, Construction and Architect-Engineer Contracts.
EPA. 1990. EPA Acquisition Regulation (EPAAR). Part 1516, Types of
Contracts, and Part 1536, Construction and Architect-Engineer Contracts.
EPA/OSWER. January 31,1992. Superfund Contracts Management
Issues. OSWER 9242.2-06.
EPA. 1993 and 1994. Requests for Proposals for Response Action Con-
tracts for Remedial, Enforcement Oversight, and Non-Time Critical
Removal Activities at Sites of Release or Threatened Release of Hazard-
ous Substances in Regions 1, 6, 7, and 8.
Nash and Schooner. 1992. The Government Contracts Reference Book.
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Response Action Contract
(RAQ Uses' Guide
: Reference Guide
Using RAC Reports
CHAPTER
MAY 31, 1995
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CHAPTER 7 • USING RAC REPORTS
Response Action Contract "Reports of Work," Attachment B to the
solicitation/contract, is being revised. This chapter will be issued after
"Reports of Work" (Attachment B) has been finalized.
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Response Action Contract
(RAQ Users' Guide
\bhmel: Reference Guide
Equipment
CHAPTER
MAY 31, 1995
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CHAPTER 8 » EQUIPMENT
Due to last-minute changes in EPA policy on government property,
Chapter 8 will be issued at a later date.
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Response Action Contract
(RAQ Users' Guide
Volume 1: Reference Guide
Delivery of
Analytical Services
CHAPTE R
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CLP Contract Laboratory
Program
CO Contracting Officer
DAS Delivery of Analytical
Services
ESD Environmental Services
Division
NTCR Non-Time-Critical Removal
PO Project Officer
QA Quality Assurance
RAC Response Action Contract
RD Remedial Design
RI/FS Remedial Investigation/
Feasibility Study
SAP Sampling and Analysis Plan
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
9.1
Background and Requirement 9-1
9.2 Roles and Responsibilities for Analytical Services Acquisition and
Management
9.3 Bibliography.
Exhibits
9-3
9-4
Exhibit 9-1 Roles and Responsibilities for Acquiring and Managing
Analytical Services 9-3
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(RAQ Users' Guide
Mum 1: Reference Guide
Cost Management
CHAPTER
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CIS Contract Information
System
CO Contracting Officer
CPS Contract Payment System
DCAA Defense Contract Auditing
Agency
FAR Federal Acquisition
Regulation
FAS Financial Analysis Section
FMC-RTP Financial Management
Center, Research
Triangle Park
IFMS Integrated Financial
Management System
IGCE Independent Government
Cost Estimate
0AM Office of Aquisition
Management
OIG Office of Inspector General
PO Project Officer
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
10.1 Background and Requirement 10-1
10.2 Roles and Responsibilities for Cost Management 10-8
10.3 Bibliography 10-10
Exhibits
Exhibit 10-1. Roles and Responsibilities for Cost Management 10-9
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CHAPTER 10 » COST MANAGEMENT
This chapter provides background information on cost management issues
in Response Action Contracts (RACs). The Chapter discusses cost man-
agement issues as they apply throughout the RAC period of performance
and describes responsibilities of the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) in cost management.
10,1 Background and Requirement
As cost-reimbursement contracts, RACs give EPA the flexibility to
modify contractor tasks and authorize additional funds to handle the
uncertainties inherent in contractor performance of remedial work. Cost-
reimbursement contracts as a class, however, provide little incentive for
contractors to voluntarily control costs or limit the use of professional
labor hours. It is the responsibility of EPA Regional contract personnel to
apply cost management strategies to limit the potential for excessive
contractor expenditures. Effective monitoring of contractor costs enables
EPA to:
• ensure that work assignment (WA) activities are being accomplished
according to the planned schedule and within the budget
• identify any budget variances and determine if resolving the variances
requires contractor concessions, work plan (WP) revisions, stop work
orders, or additional project funding
• ensure that the quality of work performed is consistent with EPA needs
as defined in the contract and WA
• ensure that the contractor uses equipment and personnel in a beneficial
and cost-effective manner
Cost management is an oversight process designed to ensure that the
government receives goods and services commensurate with the price
billed for the goods and services. The cost management oversight process
proceeds throughout the life of the contract or WA. It begins with the
identification of the objective(s) of a potential contract or WA and contin-
ues until the contract or WA is closed out.
Success of the cost management process depends on effective communi-
cation between the WAM, PO, CO, and contractor. For example, it must
be clear to all parties throughout the life of the contract or WA exactly
what quality of goods and services is being or will be provided, in what
period of time, and at what cost. At the contract level, this task is prima-
rily accomplished during negotiations between the CO and contractor. At
the WA level, the PO and WAM, in conjunction with the contractor,
implement and maintain the cost management strategy.
Cost management is a priority throughout all activities associated with
every contract or WA. This chapter provides a brief description of the
10-1
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Contractor costs are closely
monitored throughout the life of the
contract and each WA.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
opportunities present within the RAC implementation and management
process to control costs. These areas include:
• reviewing contract modifications
• reviewing contractor claims
• reviewing WAs and WPs
• reviewing WA amendments and WP revisions
• reviewing contractor deliverables
• reviewing final WA and contract costs
• reviewing progress reports
• documenting costs for cost recovery
• managing cost and progress information
• reviewing contractor invoices/vouchers
• conducting invoice/voucher validation reviews
This chapter includes the background and requirements for invoice review
and invoice/voucher validation. Other chapters and sections of the RAC
Users' Guide provide background and requirement information on most
of these issues. This chapter does not duplicate that material, but highlights
how these activities are related to cost management.
Reviewing Contract Modifications
Changes to the terms and conditions of a contract may become necessary
after work has commenced. These changes are made through contract
modifications and must be within the scope of the contract. According to
legal convention, a change is within the scope if it was reasonably within
the contemplation of the parties when the contract was executed. When
considering contract modifications, EPA personnel must include cost as
part of their decision-making. See section 4.5 for information on contract
modifications.
Reviewing Contractor Claims
A contractor may make a claim at any time during the contract period of
performance. A contractor claim is a written demand for compensation,
clarification, or modification of the contract; or relief from some aspect of
the contract. Based on the determination of the CO, the resolution of a
contractor claim may include modifying the contract, WA, or WP. The
process to determine how to best resolve a contractor claim should
include cost management concerns as a factor in the decision. See section
4.6 for information on contractor claims.
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Reviewing WAs and WPs
Effective cost management begins at the WA level when the WAM
prepares the initial WA statement of work (SOW). The SOW should be as
detailed as possible to avoid contractor misinterpretation that could lead
to unnecessary or unapproved contractor expenditures. EPA personnel
should review the contractor WP to ensure that cost management issues
are properly addressed. The WA SOW is described in section 5.4.
The government is not obligated to pay for any contractor expenditures
related to work that is not detailed in the WP. It is, therefore, in the best
interest of both parties to clarify any such areas of potential misunder-
standing during WP preparation to minimize the need for future negotia-
tion. WP review and approval is discussed in section 5.7.
Reviewing WA Amendments and WP Revisions
During the course of a WA, the WAM may find it necessary to amend the
WA to address an unforeseen situation. WA amendments may involve
changes to WA scope, level of effort or cost. The WAM prepares the
amendment, revising the SOW as needed and preparing a new indepen-
dent government cost estimate (IGCE) for amendments involving an
increase or decrease of more than $25,000. The WAM should document
the reasons for WA changes, including increases or decreases in WA
funding.
The contractor is required to prepare a revised WP and cost estimate in
response to the amendment. The new WP details all resources and costs
necessary to perform the additional tasks. Amendments to the WA can
represent a significant increase in the approved WP budget. It is neces-
sary, therefore, for EPA personnel to review the new WP and the addi-
tional associated costs, including additional labor costs, as thoroughly as
they reviewed the original WP and pay special attention to all cost man-
agement issues. Section 5.7 discusses WP review and approval; WA
amendments are discussed in section 5.11.
Reviewing Contractor Deliveries
Cost management is a cost oversight process designed to ensure that the
government receives goods and services commensurate with the price
billed for the goods and services. It is equally important to review the
quality as well as the cost of the goods and services provided under
RACs. The acceptance of inferior quality goods and services does not
contribute to the goals of effective cost management or the ultimate goals
of EPA. Section 5.14 provides information on reviewing contractor
deliverables.
The quality of the goods and
services provided by the contractor
is as important as cost to the
objectives of effective cost
management.
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Effective cost management
requires the WAM, PO, and CO to
carefully review contractor
monthly progress reports.
Prompt feedback on contractor
performance emphasizes EPA's
dedication to cost management.
Reviewing Final WA Performance and Contract Costs
EPA personnel evaluate contractor performance every six months during
WA performance, at the conclusion of each WA, and at the end of the
contract period of performance. In this evaluation, the Regional Perfor-
mance Evaluation Board rates the contractor on its ability to minimize and
control costs, among other activities. This provides feedback to the
contractor regarding their cost management efforts and serves as a spring-
board for corrective action. See Chapter 6 for detailed information on the
performance (award) fee process.
Reviewing Progress Reports
RAC contractors are required to submit a comprehensive set of monthly
financial and technical progress reports to EPA. These progress reports
include contract- and WA-level technical and financial information that
enables EPA to track progress, resolve problems, monitor expenditures,
and review and approve contractor invoices. The reports contain technical
information, presented in narrative form, and cost information, presented
as financial reports in both hard-copy and electronic form. Thorough
review and comparison of technical and financial reports enables Re-
gional personnel to assess and ensure contractor progress and compliance
with work schedules and budgets and is a valuable monitoring tool.
Each progress report contains specific information on contract- or WA-
level costs, which EPA uses to monitor RAC costs and progress. Chapter
7 describes each monthly report in the process guide.
The WAM, PO, and CO each are involved in reviewing the contractor's
progress reports. The WAM and PO, for example, use the progress reports
as their primary tool for reviewing contractor invoices. This review
method is particularly effective in RACs because the contractor is re-
quired to (1) report and invoice for the same calendar period, (2) submit
progress reports concurrently, (3) differentiate between "incurred and
invoiced" costs and "incurred and not invoiced" costs, and (4) use the
same database fields, names, terms, and definitions in reports and in-
voices. EPA is required by the Prompt Payment Act (Public Law 97-177)
to pay invoices within 30 days of contractor submittal of a properly
prepared invoice. The CO uses the contract financial status reports to
oversee contractor performance at the contract-level.
The WAM, PO, and CO should provide contractors with immediate
feedback on contractor performance as part of the review of the progress
reports. Immediate feedback allows EPA to address performance issues
with the contractor, demonstrates to the contractor the importance that
EPA attaches to cost management concerns, and provides the contractor
with an additional incentive to voluntarily control costs.
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CHAPTER 10 » COST MANAGEMENT
Documenting Costs for Cost Recovery
The goal of the cost management process—to protect the government
from unnecessary and excessive costs—is closely related to the goal of
the cost recovery process—to reimburse the government for all RAC-
related expenditures. The ability to recover all RAC-related expenditures
from potentially responsible parties is highly dependent on the accuracy
of cost documentation.
Maximizing cost recovery begins before the initiation of work at a site.
Since it is not known at the start of the process whether cost recovery will
proceed to judicial action, the WAM must require in the WA that cost
documentation be prepared in compliance with Agency guidelines. All
costs and activities that relate to the performance of removal or response
actions and that describe the technical aspects of the activities, therefore,
must be fully documented. Proof of expenditures must show that work
was authorized by the proper individual or agency, performed as detailed
by the contract, accurately invoiced, and paid. Only then can EPA suc-
cessfully recover its costs in subsequent cost recovery actions. See
Chapter 11 for information on records management.
Managing Cost and Progress Information
Effective cost monitoring depends on the availability of reliable indicators
of contractor costs and progress. These indicators are provided in the
contractor's monthly progress reports and the contract management
report. Each Region maintains contract management information in a
computerized database or other contract information system (CIS). This
cost management information includes a ratio of Program Support versus
site-specific costs, average labor rates, use of term-form versus comple-
tion-form, and WAs at 75% utilization.
While each Region's CIS may contain additional variables, the data
contained in the CIS should be important cost management indicators.
The WAM, PO, and CO use CIS data to monitor contractor performance.
Reviewing Contractor Invoices
A fundamental way that Regional personnel can control contractor costs
and monitor contractor performance is to carefully monitor monthly
contractor vouchers or invoices. Invoices detail contractor monthly
expenditures by cost element (i.e, direct labor, materials, subcontracts,
indirect expenses, etc.) making it possible to identify high levels of
expenditures. The invoice is accompanied by an invoice backup report
(RAC Invoice Backup Reports) that provides detailed costs by WA and
WA task for individual invoice line items. The invoice backup report also
is submitted with the progress report so the Region can review invoice
costs prior to receiving the actual invoice.
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The monthly progress reports are
the primary resource for the
invoice review process.
EPA personnel must determine
whether the contractor's invoiced
costs are reasonable.
The burden of proof lies with the
contractor. The fact that a
contractor incurred a cost does
not constitute reasonableness.
The monthly RACs progress reports cover the same calendar period as the
invoice and define the same data elements. EPA personnel, therefore, are
able to effectively use the progress reports as then1 primary resource
during invoice review. The progress reports contain additional information
that provides explanations for the invoiced costs.
The purpose of invoice review is to:
• determine whether contractor charges are commensurate with services
performed
• certify that work for which payments are claimed has been satisfacto-
rily performed
• ensure that invoiced costs are reasonable
• determine if possible contractor oversights or abuses have occurred
When contractors are aware that the government is keeping close watch
on contractor costs, they have additional incentive to manage their work
efficiently.
A thorough review of the monthly voucher for the reasonableness of the
claimed amount must be performed in order to approve or suspend
payment of the invoice. To accomplish this, Regional personnel must be
knowledgeable of the Federal Acquisition Regulation (FAR) Part 31
guidelines and applicable supplements that outline reasonable costs.
Familiarity with these guidelines is integral to cost management, since the
WAM, PO, and CO must apply these principles during invoice review and
throughout the life cycle of every contract and WA.
Cost Reasonableness
There is no presumption of reasonableness that accompanies contractor
costs. The reasonableness of specific costs must be examined with par-
ticular care in areas where firms are not subject to effective competitive
restraints.
According to FAR 31.201-3, a cost is reasonable if its nature and
amount does not exceed that which would be incurred by a prudent
person in the conduct of competitive business.
The WAM should use a price list, the original IGCE, or the contractor's
approved cost estimate as the basis for comparing the reasonableness of
the contractor's invoiced costs. If the costs are unique and cannot be
compared based on competitive markets, then the contractor is required to
provide its methodology in determining costs. This information should be
found in the contractor's Cost Accounting Standards Disclosure State-
ment. (See Chapter 5, section 5.5 for information on the preparation and
use of the IGCE.)
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CHAPTER 10 » COST MANAGEMENT
Program Management Costs
The Office of Solid Waste and Emergency Response and the Office of
Aquisition Management (OAM) require the tracking and reporting of
program management costs. Program management costs must be segre-
gated into administrative and technical support costs. Unique activity
codes are used for these categories. The following definitions have been
developed to assist in this process.
• Administrative support costs are non-site specific costs necessary for
managing the overall contract, regardless of the amount of site-specific
work.
• Technical support costs are non-site specific costs involving technical
activities that cover multiple sites and are related to site-specific work
conducted under the contract.
An Office of Administration and Resource Management memoran-
dum dated February 11,1993 and signed by Richard Guimond and
Sallyanne Harper provides guidance on program management
activities under remedial contracts.
Several types of activities may fall into both administrative and technical
categories. Subcontracting issues that are not site-specific, for example,
are classified as administrative support costs. Actual equipment costs are
categorized as technical support costs, as are labor costs associated with
the justification and approval of equipment purchases. Travel and other
direct costs can fall into either category and should be allocated between
administrative support and technical support areas for tracking purposes.
Clerical support also should be segregated by cost and classified appropri-
ately. Clerical support, travel, and other direct costs should be monitored
closely during invoice review to avoid the potential for contractor excess.
EPA personnel should ensure that contractors understand and adhere to
the proper administrative and technical support cost allocations.
Conducting Voucher/Invoice Validation Reviews
The CO or designated representative performs periodic voucher/invoice
validation reviews, yearly and as needed, to ensure that billings are made
in accordance with contractual terms and that contractor invoices are
adequately documented. This review should not be confused with the
monthly invoice review. It is recommended that these reviews be per-
formed on-site at the contractor's office to verify costs against primary
source documents and accounting records. In some cases, however, this
may not be possible due to staff resources or lack of travel funds. The
reviews, therefore, may be conducted as desk reviews using information
received by mail or facsimile.
10-7
EPA performs periodic voucher
validation reviews to ensure that
billings are made in accordance
with contractual terms and that
they are adequately documented.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
The voucher/invoice validation
review may uncover cost
management issues.
An OAM memorandum dated August 3,1993 and signed by Betty L.
Bailey encourages COs to review at least one voucher per contract
annually. Vouchers for contracts that are vulnerable to mischarging of
contract costs should be reviewed more often.
The CO's voucher/invoice validation review, in addition to ensuring that
the contractor is following proper billing procedures, also should assess
potential cost management issues. Specifically, the CO should:
• examine any unusual items being claimed or any costs that appear
unusual based on the scope of work being performed
• examine all high-cost items
• compare costs from each cost element with similar WAs to detect any
anomalies
The CO is not presumed to know the exact market value of all items. Past
EPA experience and common sense are used to determine if the claimed
costs elements appear reasonable. Vouchers are reviewed on a sample
basis only. It is not intended that the voucher review procedures be used to
conduct a full review. The CO also may request the Defense Contract
Auditing Agency (DCAA) to review individual vouchers. The DCAA
review can assure the CO that the contractor is using acceptable rates and
billing according to approved procedures.
10,2 Roles and Responsibilities for Cost Management
The WAM, PO, CO and contractor must maintain constant communica-
tion for effective cost management. Well-defined roles, activities, and
responsibilities assist in promoting effective staff communication and
accountability. Exhibit 10-1 identifies the roles and responsibilities of
personnel involved in cost management.
10-8
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CHAPTER 10 » COST MANAGEMENT
Individual
Role in Cost Management
Monitors contractor costs using Regionally developed CIS, updating
CIS as needed
Reviews and compares contractor monthly technical and financial
progress reports
Gives contractor feedback regarding monthly progress report
Monitors contractor costs using the monthly progress report
Assists PO in reviewing monthly invoices
Documents acceptance of WA deliverables using the Documentation of
Invoice Review and Approval form
Monitors contractor costs using Regionally developed CIS, updating
CIS as needed
Reviews and approves contractor monthly technical and financial progress
reports
Monitors contractor costs using the monthly progress reports and voucher
validation review results
May request voucher validation reviews
Reviews and approves payment of monthly invoices
Suspends payment of unreasonable monthly invoices and recommends
disallowment to CO
Ensures that costs are documented properly for cost recovery
Reallocates bulk-funded obligations to site-specific charges when
approving invoices for payment
Monitors contractor costs using Regionally developed CIS, updating the
CIS as needed
Conducts periodic voucher validation reviews, annually or as requested
bythePO
Disallows payment of unreasonable monthly invoice charges based
upon PO recommendations
Submits monthly technical and financial progress reports
Submits monthly invoices
51-033-102B
Exhibit 10-1. Roles and
Responsibilities for Cost
Management
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Guidance Documents
EPA/OERR/OSWER. January 1989. ARCS Work Assignment Management
Field Guide.
Directive #9242.6-07, September 9, 1990. Approval of Long Term Con-
tracting Strategy for Superfund.
EPA/OARM. November 1991. EPA Contract Administration.
EPA/OSWER and OAM. February 1994. Cost Management Manual for
the Remedial and Enforcement Programs. Document 9202.1-20. PB94-
963401. EPA540-R-93-085.
EPA/Quality Action Team. July 27,1994. Invoice Review Guide.
EPA/OERR. OERR Work Assignment Managers Training Tool Box.
Memoranda
EPA/PCMD. February 1992. O'Conner. "Public Voucher Validation
Procedures for Regional Contracting Officers". Memorandum from David
J. O'Connor.
EPA/OSWER. February 11,1993. "Guidance on Program Management
Activities Under ARCS". Memorandum from Richard Guimond, Deputy
Assistant Administrator, OSWER and Sallyanne Harper, Deputy Assistant
Administrator for Finance and Acquisition to ARCS Contracting Officers
and Project Officers.
EPA/OAM. August 3, 1993. "Contracting Officer Review of Vouchers".
Memorandum from Betty L. Bailey, Director, OAM.
EPA/SAB. November 1993. "Request for Comments on Revised
Superfund Accounting Policy". Memorandum from Bill Cook.
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(RAQ Users' Guide
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Records
Management
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Table of Contents
Acronyms
AR Administrative Record
CERCLA Comprehensive
Environmental Response,
Compensation, and
Liability Act
CO Contracting Officer
ORC Office of Regional Counsel
OSC On-Scene Coordinator
OSWER Office of Solid Waste and
Emergency Response
PO Project Officer
FRC Federal Records Center
RAC Response Action Contract
RC Records Center
SCORES Superfund Cost Organiza-
tion and Recovery System
SCRIPS Superfund Cost Recovery
Image Process System
WA Work Assignment
WAM Work Assignment Manager
11.1 Background and Requirement 11-1
11.2 Roles and Responsibilities for Records Management 11-5
11,3 Bibliography 11-7
Exhibits
Exhibit 11-1 Overview of RAC Records 11-2
Exhibit 11-2 Roles and Responsibilities for Records Management 11-5
MAY 31, 1995
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CHAPTER 11 » RECORDS MANAGEMENT
Response Action Contract (RAC) records management involves the
management of contract management records and work assignment (WA)
final deliverables records. This chapter describes the background and
requirements for the management of these records.
11,1 Background and Requirement
RAC records management is the process of ensuring that all RAC records
are created, maintained, and properly retired or disposed. Records gener-
ated under RACs may be permanent or nonpermanent. Permanent records
never will be destroyed and ultimately will be transferred to the National
Archives after being held at the Federal Records Center (FRC). Nonper-
manent site-specific records generally are retained in one of EPA's Re-
gional Superfund Record Centers (RC) for at least a year and then stored
in the FRC for 30 years before being destroyed. RAC records support cost
recovery, litigation, and public inquiries.
Under 44 United States Code Section 3301, a "record" is defined as all
books, papers, maps, photographs, machine-readable materials, or other
documentary materials, regardless of physical form or characteristics,
made or received by an agency of the United States government under
federal law or in connection with the transaction of public business. This
includes internal agency activity records to which the public does not
have access as well as public records. According to the definition, records
are preserved or are appropriate for preservation by that agency or its
legitimate successor as evidence of the organization, functions, policies,
decisions, procedures, operations, or other activities of the government or
because of the informational value of data in the records.
To ensure consistency and order in records management, EPA must ensure
that the contractor organizes its files in the same manner as EPA. Contrac-
tor compliance will produce parallel filing systems and ensure complete
files.
Exhibit 11-1 depicts the flow of RAC records. RAC records are contract
management records or WA deliverable records. Contract management
records include Work Assignment Manager (WAM), Project Officer (PO),
and Contracting Officer (CO) contract files. Contract files contain docu-
ments that are pertinent to contract execution.
WA deliverable records include final deliverables and documents relating
to deliverables. Copies of WA final deliverable products (e.g., project
reports such as the remedial design), made from the WA deliverables file,
become part of the site file. Site files contain site-specific documents on
remedial or removal site activities and decisions. Site files also contain
11-1
A record is any book, paper, map,
photograph, machine-readable
material, or other documentary
material, made or received by a
government agency in the
transaction of public business.
MAY 31, 1995
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MAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 11-1. Overview of RAC Records
Response Action
Contract Records
CONT-020
CONT-258
Contract Management
Records
I
CONT-020a
Final
Deliverables
CONT-020b
I
CONT-020C
CO Contract
Files
PO Contract
Files
I
Site-014
I
Site-013
Remedial Site
File
Removal Site
File
Site-019
Site-024
Remedial/Removal
Administrative
Record
Other Relevant
Records
51 -033-19B
11-2
MAY 31, 1995
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CHAPTER 11 » RECORDS MANAGEMENT
other relevant records such as enforcement records, public affairs/commu-
nity relations records, state/local government records, potentially respon-
sible party records, and applicable or relevant and appropriate require-
ments. Selected documents from the site file comprise the administrative
record (AR) for the site. Cost recovery files are compilations of informa-
tion from contract files, site files, financial management records, and
other EPA files.
Contract files, site files, related financial management and enforcement
files, and cost recovery files contain all the information EPA needs for
accurate and complete documentation of site activities and decisions. Site
files, AR files, and cost recovery files become inactive at designated
milestones and are broken and retired. All RAC records are organized into
record series, as discussed below. Two predominant series are the contract
file series and the site file series. Further guidance on record series and
schedules that provide information on each series is found in Records
Management Standards for Superfund Contractors and Grantees.
The final draft for Records Management Standards for Superfund
Contractors and Grantees, Office of Solid Waste and Emergency
Response (OSWER), September 30, 1994, provides guidance on
record series and schedules requirements.
Contract Files
RAC contract records fall into two record series:
• CONT-020 Superfund Site-Specific Contract Management Records
• CONT-258 Final Deliverables
There are three types of contract management files. The CO contract
management file, EPA series number CONT-020a, is established by the
CO when a contract is awarded. The CO keeps all contract management
documents in the file. The PO contract management file, EPA series
number CONT-020b, is established by the PO. The PO keeps all contract
documents related to his or her contract management responsibilities in
the file. The WAM contract management file, EPA series number CONT-
020c, is established when a WA is issued. The WAM contract manage-
ment file includes documents used for WA oversight and technical direc-
tion.
The final deliverables file also is a type of contract file. The WAM
maintains the final deliverables file, CONT-258, which consists of final
draft/ final deliverables submitted by contractors to EPA. Copies of site-
Contract files, site files, related
financial management and
enforcement records, and cost
recovery files contain information
EPA needs for documentation of
site activities and decisions.
11-3
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
specific final deliverables are placed in site files.
Site Files
The WAM supervises the formation of site files from copies of site-
specific final deliverable records and other noncontract site file docu-
ments. There are removal site files and remedial site files.
Removal files may be established at the notification of a potential hazard-
ous waste site. Remedial files usually begin as pre-remedial files; the pre-
remedial information is incorporated into the remedial file when it is
created.
• SITE-013 Removal Site Files, Superfund Site-Specific
• SITE-014 Remedial Site Files, Superfund Site-Specific
Administrative Record
ARs are covered under the following record series:
• SITE-019 Administrative Record, Superfund Site-Specific
The AR contains documents that form the basis for the selection of
Comprehensive Environmental Response, Compensation, and Liability
Act (CERCLA) response actions. CERCLA Section 113 (k)(l) requires
that EPA establish ARs for CERCLA response action selection. Docu-
ments from remedial site files and removal site files and other non-site-
specific documents (e.g. Superfund Compendium) may be selected to
create a remedial or removal AR. The AR coordinator pulls together vital
information from site files and other sources to create the AR. Under
direction from the AR coordinator, who serves as the WAM for the RC,
and the RC manager, the RC staff organizes and indexes the AR.
Public access to ARs promotes understanding of Agency decisions in
selecting a final remedy. The site staff should use the AR as a tool for
encouraging public involvement. The AR also serves as a foundation for
the cost recovery file.
Cost Recovery File
Cost recovery files are covered by the following record series:
• SITE-024 Cost Recovery Records
The cost recovery file is a compilation of records used for cost recovery.
Unlike the AR, however, the cost recovery file includes information from
all contract files, site files, and other EPA files. Typical contract manage-
ment documents contained in the cost recovery files include contract and
tasking documentation, work assignment forms, correspondence from the
PO to the CO, final deliverables, progress reports, closeout reports, and
contract modifications. Other relevant documents in the cost recovery file
11-4
MAY 31, 1995
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CHAPTER 11 « RECORDS MANAGEMENT
are pulled from financial collections and include timesheets, travel
vouchers, invoices, and financial tracking reports.
The EPA cost recovery staff creates the cost recovery file. The cost
recovery file facilitates responsible party reimbursements to EPA for any
"remedial or removal costs. Active cost recovery files are stored at the
Regional Financial Management Division, at Research Triangle Park, or at
the RC. Records are also available in the Superfund Cost Recovery Image
Process System (SCRIPS) and in the Superfund Cost Organization and
Recovery System (SCORES).
11,2 Roles and Responsibilities for Records Management
The key players in records management activities are the WAM, PO, CO,
Superfund RC Manager, and the RC staff. Other players in records
management include the Office of Regional Counsel (ORC) attorneys, the
contractor, cost recovery personnel, and the FRC staff.
Exhibit 11-2 lists the individual roles and responsibilities of the parties
involved in records management.
Individual
Role in Records Management
Responsible for WA documentation
Establishes, maintains, and retires WAM contract management file
Establishes, maintains, and retires site files
Collects all project-related information from the prime contractor and
subcontractors to create the site files; has sole authority in the final
technical review of the site files
For site files, ensures that:
- complete copies of decision and activity documents are filed correctly
- files are distributed routinely to the Regional office from the site
- files are retired to the FRC
Establishes, maintains, and retires the final deliverables file
Selects documents for AR and oversees the organization and indexing
of the AR by the RC staff
Responsible for overall project documentation
Establishes, maintains, and retires PO contract management file
Responsible for overall contract documentation
Establishes, maintains, and retires CO contract management file
EPA Cost Recovery • Prepare cost recovery package
Personnel • Retire cost recovery documents not maintained as part of the site file
51-033-170S
Exhibit 11-2. Roles and
Responsibilities for Records
Management
11-5
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RAG USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 11-2. Roles and
Responsibilities for Records
Management, contd.
Individual
ORC Attorney
Role in Records Management
Involved in:
- Freedom of Information Act reusability
-AR preparation
- cost recovery package preparation
- Superfund enforcement records preparation
Regional Records • Signs off on Records Transmittal and Receipt Form (Standard Form
Officer 135)
• Coordinates retirement activities
• Coordinates across programs (divisions) in a Region
Superfund RC • Manages contractor staff performing the RC contract tasks (if RC staffed
Manager by contractor)
(usually a • Provides support to WAMs and ORC attorneys
contractor) • Coordinates preparation and maintenance of site files, and provides
training in records management
RC Staff Maintain the manual and automated records management systems
(usually staffed by Provide day-to-day support in adding documents to files and tracking
a contractor) records
Maintain active site files and contract files
Organize and index ARs
Gather pertinent documents from the site files to create the remedial
or removal AR for public access and litigation purposes, upon direction
from the WAM
Retire AR records
FRC Staff • Maintain all inactive site files and contract files
• Receive inactive files from RCs
• Retain nonpermanent files for 30 years
• Transfer permanent files to the National Archives at the designated time
ARCoordinator • Serves as WAM for RC contract
• Coordinates preparation and maintenance of AR files
• Provides training in ARs
• Uses EPA filing structure to maintain files
• Retains contract records until all litigation is settled or until 10 years
after final contract payment, subject to CO approval
51-033-170(2)B
11-6
MAY 31, 1995
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CHAPTER 11 » RECORDS MANAGEMCWT
11,3 Bibliography
Guidance Documents
EPA/IMSD. March 1993. Using the Federal Records Center: A
Guide for Headquarters Staff, Administrative and Resources
Management. EPA/IMSD/91-004.
EPA/OSWER. May 1993. Enforcement Project Management
Handbook. Directive 9837.2B.
Memoranda
EPA/OSWER. January 3,1989. "Guidance for Organizing ARCS
Contract Files". OSWER Directive 9242.6-02.
EPA/OSWER. September 30,1994. "Final Draft for Records
Management Standards for Superfund Contractors and Grantees".
Other Sources
EPA. June 1993. U.S. EPA Records Control Schedule, Draft.
11-7
MAY 31, 1995
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Response Action Contract
(RAQ Users' Guide
]hlmel: Reference Guide
Contract Closeout
CHAPTE R
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
Acronyms
CO Contracting Officer
DCMC Defense Contract
Management Command
PA Property Administrator
PCO Plant Clearance Officer
PO Project Officer
PS Program Support
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
12,1 Background and Requirement 12-1
12.2 Roles and Responsibilities for Contract Closeout 12-3
12.3 Bibliography 12-5
Exhibits
Exhibit 12-1 Roles and Responsibilities for Contract Closeout 12-3
MAY 31, 1995
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CHAPTER 12 « CONTRACT CLOSEOUT
This chapter provides background information on the contract closeout
process for Response Action Contracts (RACs). It identifies the roles and
responsibilities of EPA Regional personnel, other responsible government
officials, and the contractor in contract closeout.
12,1 Background and Requirement
As defined in Unit Two of EPA's Acquisition Handbook, contract closeout
is the "wrap-up" of a completed contract. Contract closeout includes
reviewing the contract file, taking the necessary actions to resolve out-
standing issues, and retiring the contract file.
Unit Two of the Acquisition Handbook, "Standard Procedures For
Closing Out and Retiring Completed Contracts," details conventional
contract closeout procedures. It should be consulted to obtain addi-
tional information on contract closeout.
The contract closeout process begins when EPA issues the contract
closeout Work Assignment (WA) to the contractor. All technical WAs
should be completed before the contract closeout WA is issued. The
contract closeout WA should be issued in sufficient advance of the end of
the contract to allow all closeout activities to be completed before the end
of the contract period. The contract closeout WA, as specified hi the RAC
statement of work (SOW), is a program support (PS) (other response) WA
that requires the contractor to perform a series of tasks designed to ensure
that:
• the government has received the goods or services required under the
contract
• the contractor has been paid the correct amount
• all government property is properly accounted
• all required reports have been received
• the contract file is properly documented and transmitted to the official
record retention center
Chapter 5 details the procedures for issuing and managing WAs.
The RAC SOW requires a contract closeout work area tasked under
program support (other response).
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
12-1
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RAC USERS' GUIDE. VOLUME 1: REFERENCE GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Site-specific WAs must be
completed with sufficient time
before contract expiration to
allow for contract closeout.
Delays in the closeout process
may result in the government's
inability to recover over-payments
from the contractor.
The contract closeout process includes all physical and administrative
activities that must occur to successfully conclude a contract. The physi-
cal activities primarily relate to the final disposition of all government
property and the transfer of all contract and site files to the appropriate
record retention facility. The administrative activities concern the final
evaluations of contractor performance, preparation of all final reports,
resolution of any outstanding billing issues, and filing and indexing all
contract and site records.
All site-specific WAs must be scheduled to be completed with enough
time before the end of the contract period to allow time for contract
closeout. The Project Officer (PO) prepares and issues a PS WA for
contract closeout when all site-specific WAs are complete and several
months remain before the end of the contract period of performance. The
contract closeout WA, as described in the RAC SOW, requires the con-
tractor to complete all activities necessary to close out the RAC. As
delineated in the SOW, there are seven PS WA tasks that must be com-
pleted as part of the contract closeout WA:
• Task 1 - Project Planning and Support
• Task 2 - Records Maintenance and Disposition
• Task 3 - Equipment Transfers
• Task 4 - Reconciliation of Contract Utilization and Costs
• Task 5 - Final Allocation of Costs
• Task 6 - Preparation of Final Reports
• Task 7 - Work Assignment Closeout
Overseeing contractor contract closeout activities is an important EPA
responsibility. As contract files become older, the closeout process be-
comes more problematic. Excessive delay may increase the difficulty of
the closeout process due to the increased possibilities of misplaced or
missing records and changes in contractor or EPA personnel. Delays also
may hamper the government's ability to recover any over-payments from
the contractor. EPA personnel, therefore, must ensure that contractors
perform contract closeout activities in a timely manner.
Quick Closeout
Unit Two of the Acquisition Handbook details the procedures for quick
closeout of contracts with an estimated cost, excluding fee, of $1,000,000
or less. Under normal circumstances, RACs are not, eligible for quick
closeout. If, however, a RAC does not exceed the $1,000,000 maximum,
the Acquisition Handbook should be consulted for information on quick
closeout procedures.
12-2
MAY 31, 1995
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CHAPTER 12 » CONTRACT CLOSEOUT
12,2 Roles and Responsibilities for Contract Closeout
Contract closeout, like all activities performed under RACs, requires
communication and cooperation on the part of all participants. Effective
communication and cooperation require a clear understanding of indi-
vidual roles and responsibilities. The primary participants in the contract
closeout process are the Contracting Officer (CO), PO (usually functions
as the Work Assignment Manager [WAM] for contract closeout), contrac-
tor, and the Property Administrator (PA). An official from the Defense
Contract Management Command (DCMC) serves as the PA for RACs
(see Chapter 8).
The specific roles of EPA and contractor personnel are outlined in Exhibit
12-1.
Individual
Role in Contract Closeout
PO
Develops contract closeout WA
Monitors WA progress and ensures deliverables are submitted in a
timely manner
Certifies contract closeout WA is complete
Advises the CO and PA on technical issues related to final government
property disposition instructions
Completes a PO's Evaluation of Contractor Performance (EPA Form
1900-27)
Certifies that all contract technical requirements have been met
Recommends the disposition of government property in the possession
of the contractor
Reviews and determines the accuracy of the contractor's reporting of
inventions, data rights, copyrights, and software development
Examines and approves the completion voucher
Reviews and accepts final reports and all other WA deliverables
The PO usually serves as WAM for the contract closeout WA.
• Issues contract closeout WA
• Consults and updates the contract closeout checklist
• Coordinates with the PO and PA to establish final government property
disposition instructions
• Completes a CO's Evaluation of Contractor Performance (EPA Form
1900-26)
• Updates and maintains the contract information contained in the Region's
contract information system
• Requests the contractor to submit the Contractor's Cumulative Claim
and Reconciliation (EPA Form 1900-10)
• Requests property clearance report, if applicable, from the PA
• Requests the invention report, if applicable, from the contractor
• Requests a final contract audit from the Chief, Financial Analysis Branch
• Requests Contractor's Assignment of Refunds, Rebates, and Credits
(EPA Form 1900-5), Contractor's Release (EPA Form 1900-6), and, if
applicable, Assignee's Release (EPA Form 1900-3)
• Processes final/credit voucher
• Authorizes the abandonment of government property as appropriate
51-033-137B
12-3
Exhibit 12-1. Roles and
Responsibilities for Contract
Closeout
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Exhibit 12-1. Roles and
Responsibilities for Contract
Closeout, contd.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Individual Role in Contract Closeout
Property • Serves as the CO's designated representative in matters related to
Administrator government property
(DCMC) • Monitors compliance with government property regulations and contract
requirements
• Requests inventories of government property in the possession of
contractors
• Certifies that a contract has been cleared of all outstanding government
property issues
• Prepares final government property disposition instructions which are
issued by the Plant Clearance Officer (PCO)
Submits final government property inventory to the PA
Removes government property from sites as directed by PCO
Removes temporary buildings and structures where appropriate
Transfers responsibility for the utilities, phone, and licenses to the
incoming responsible party
Reconciles contract utilization and cost with EPA
Completes completion voucher, if appropriate
Performs final allocation of site-specific costs
Prepares and transfers all contract and site records to EPA or the Federal
Records Center, as instructed by EPA
Completes a Contractor's Cumulative Claim and Reconciliation Form
(EPA Form 1900-10)
Submits an invention report, if necessary, to CO
51-033-1376(2)
12-4
MAY 31, 1995
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CHAPTER 12 • CONTRACT CLOSEOUT
12,3 Bibliography
Guidance Documents
EPA/OARM. December 1989. Contract Administration.
EPA/OAFMSD. February 12,1990. Personal Property Management
Policy Manual (4831).
EPA/HSCD/OERR. February 1994. Response Action Contract Acquisition
Model. EPA 540/X-90/001.
EPA/OARM. April 1994. EPA Contract Property Administration
Requirements.
Regulatory and Other Sources
Commerce ClearingHouse, Inc., Chicago, Illinois. January 1994. Federal
Acquisition Regulation as of January 1,1994.
EPA/OERR/HSCD. May 1994. Demobilization from Superfund Sites:
Property Transfer and Other Considerations during the Superfund Site
Closeout Process. Quick Reference Fact Sheet.
EPA. Revised March 1992. Acquisition Handbook, Unit Two, "Standard
Procedures For Closing Out and Retiring Completed Contracts".
12-5
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Response Action Contract
Users'Guide
Volume 1: Reference Guide
Revisions to the
MC Users' Guide
CHAPTER
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Table of Contents
13.1
13.2
Exhibits
13-1
IMC Users' Gi/i* 13-1
Exhibit 13-1 Roles and Responsibilities for Revising the RAC
Users'Guide 13-1
MAY 31. 1995
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CHAPTER 13 • REVISIONS TO THE RAC USERS' GUIDE
13,1 Background and Requirement
The Headquarters Long Term Contracting Strategy (LTCS) Users' Guide
Coordination Work Group monitors legislation, directives, and updates to
source documents used in LTCS component users' guides (e.g., Federal
Acquisition Regulation, EPA Acquisition Regulation, Contracts Manage-
ment Manual, Office of Solid Waste and Emergency Response (OSWER)
directives, and Procurement Policy Notice changes), and ensures that
applicable changes are transferred to the LTCS users' guides. This work
group is chaired by the OSWER Acquisition Staff office and composed of
users' guide leads from all LTCS components, including Respond Action
Contracts (RACs). To ensure that the RAC Users' Guide continually
reflects current information, the RAC Users' Guide lead distributes
supplemental guidance as needed during the year and performs annual
updates to the Users' Guide.
13,2 Roles and Responsibilities for Revising the RAC Users'
Guide
The RAC Users' Guide lead, with input from Project Officers (POs),
Contracting Officers (COs), and the LTCS Users' Guide Coordination
Work Group, is responsible for making necessary revisions to the RAC
Users' Guide. The roles of the individuals involved in the revision process
are identified in Exhibit 13-1.
Individual
Role in Revising the RAC Users' Guide
Receives and implements revisions
PO
Proposes revisions
Receives and implements revisions
Provides revisions to WAMs
RACUsers'
Gaiiic Lead
Proposes revisions
Receives and implements revisions
Requests proposed revisions from POs and COs
Reviews and incorporates revisions
Distributes revisions
LTCS Users'Guide
Coordination Work
Group
Meets semiannually to discuss revisions and updates
51-033-130
Exhibit 13-1. Roles and
Responsibilities for Revising
the MC Users' Guide
13-1
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Response Action Contract
(RAQ Users' Guide
Wme 1: Reference Guide
Glossary
APPENDIX
-------
APPENDIX A * GLOSSARY
Portions of this glossary have been reprinted from The Government Contracts Reference Book (©1992)
by Ralph C. Nash, Jr., and Steven L. Schooner, with permission from the Government Contracts Program
of George Washington University.
Accountable Personal
Property
Account Control Number
Administrative Change
Advisory and Assistance
Services
Allocable Cost
Allowable Cost
Non-expendable property costing $1,000 or more.
Identifies source of funds by appropriation, program element, and
allowance holder.
A unilateral written contract change that does not affect the substantive
rights of the parties (e.g., a change in the paying office or the appropria-
tion data). FAR 43.101. (The Government Contracts Reference Book)
Services acquired from non-governmental sources by contract or by
personnel appointment to support or improve policy development,
decision making, management, and administration, or to support or
improve the operation of management systems. FAR 37.201. Advisory
and assistance services can be used for all organizational levels to help
managers achieve maximum effectiveness or economy in their opera-
tions. FAR 37.202. Advisory and assistance services may include infor-
mation, advice, opinions, alternatives, conclusions, recommendations,
training, or direct assistance. FAR 37.203. (The Government Contracts
Reference Book and EPA Contracts Management Manual)
Costs assignable or chargeable to one or more cost objectives on the
basis of relative benefits received. FAR 31.201-4 provides that a cost is
allocable to a government contract if it (1) is incurred specifically for the
contract, (2) benefits both the contract and other work, and can be
distributed in reasonable proportion to the benefits received, or (3) is
necessary to the overall operation of the business, although a direct
relationship to any particular cost objective cannot be shown. (The
Government Contracts Reference Book)
Costs reimbursed by the government for the performance of a contract.
FAR 31.201-2 mandates that factors that should be included to determine
allowable costs include (1) reasonableness, (2) allocability, (3) standards
set by the Cost Accounting Standards Board, (4) generally accepted
accounting principles and practices appropriate to the particular circum-
stances, (5) the terms of the contract, and (6) any limitations set forth in
FAR Subpart 31.2. FAR 31.205 contains guidance on the allowability of
51 types of "selected costs." Costs, including directly associated costs,
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Alternative Remedial
Contracting Strategy
Analytical Services
Annual Closeout
Annual Allocation
Award Fee Plan
that are expressly unallowable must be identified and excluded from any
billing, claim or proposal applicable to a government contract. FAR
31.201-6. (The Government Contracts Reference Book)
EPA's approach to obtaining project management and technical services
to support remedial response activities at National Priorities List (NPL)
sites, intended to optimize quality, timeliness, and cost efficiency by: (1)
promoting continuity in site project management and execution, from
remedial planning through construction; (2) decentralizing contract
management responsibilities, thereby placing authority and responsibility
for management decisions within Regional offices; (3) implementing
performance incentives to the maximum extent possible by awarding
multiple contracts in each Region or Zone and using triannual ratings of
contractor performance to determine the amount of work assigned to a
given contractor.
Includes sample analysis, analytical support, data validation, data evalua-
tion, and oversight of quality assurance activities.
RAC section I, "Allowable Cost and Payment," requires an annual
closeout of the total costs and fees claimed for the fiscal year (FY), a
process which, according to clause fj, "Indirect Costs," requires resolu-
tion of the final indirect costs. The RAC statement of work also states,
under Program Support, Ongoing Administrative Support, Task 2 -
Contract Integrity, that the contractor may be required to provide an
annual closeout report. The annual closeout of RACs occurs on a FY
basis and requires the contractor to submit cost claims to EPA. The cost
claims include information on direct and indirect costs incurred at the
contract level and at the work assignment level. The contractor also is
required to provide a list of invoice and voucher amounts submitted over
the course of the FY.
Process by which non-site-specific costs are distributed to specific sites
for accounting and cost recovery purposes. Non-site-specific costs are
accounted for in a general account and are allocated to specific sites and
categorized into program support, site support, nonsite activities, program-
wide nonsite activities, capital equipment, and startup costs/mobilization
categories. The costs and fees are allocated by the contractor on a pro
rata basis, based on the benefits received or support provided by the
activities.
See performance fee plan.
A-2
MAY 31, 1995
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APPENDIX A • GLOSSARY
Base Fee
Base Fee Pool
Bilateral Contract
Modification
Bulk Funding
Bulk-Funding Categories
FAR 16.305 defines base fee as a base amount (which may be zero) fixed
at the inception of a cost-plus-award-fee contract. In RACs, the base fee
is paid provisionally each month as costs are incurred. The base fee does
not vary with performance and is fully retained by the contractor as long
as the contractor's final performance rating for a completed work
assignment (WA) is "satisfactory" or above. If the contractor's final
performance rating on a completed WA is "unsatisfactory," then the
contractor is contractually obligated to return all base fee received for
that WA to the government.
Minimum amount of level-of-effort (LOE) hours in the contract that the
government is obligated to purchase. LOE hours beyond the base
quantity can be made available by the exercise of options as specified in
the contract.
A written change in the specifications signed by the contractor and the
Contracting Officer used to (1) make negotiated equitable adjustments
resulting from issuing a change order, (2) definitize letter contracts, and
(3) reflect other agreements of the parties modifying the terms of the
contract. (The Government Contracts Reference Book)
A system for Contracting Officers to receive clearance from a fiscal and
accounting officer to obligate funds on purchase documents against a
specified lump sum of funds reserved for the purpose for a specific
period of time. FAR 13.101. (The Government Contracts Reference
Book)
Four bulk-funding categories are used in RACs: (1) program support
(other response); (2) site characterization; (3) removal; and (4) enforce-
ment. Money is obligated separately to these bulk-funding categories.
Cardinal Change
A change that is beyond the scope of the contract and thus cannot be
ordered by the Contracting Officer under the contract's CHANGES
clause. Cardinal changes are breaches of contract. In determining
whether a change is beyond the scope of the contract and therefore a
cardinal change, courts and boards compare the total work performed by
the contractor with the work called for by the original contract. Work lies
within the scope of contract if it can fairly and reasonably be regarded as
within the contemplation of the parties when the contract was entered into
or if it is essentially the same work that the parties bargained for when the
contract was awarded. (The Government Contracts Reference Book)
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Change
Change Order
Community Relations
Completion-Form
Work Assignment
Conflict of Interest
Any alteration to a contract permitted by a contract clause issued under
the CHANGES clause of a contract. Changes may be bilateral or unilat-
eral. (The Government Contracts Reference Book)
A written order from the Contracting Officer (CO) directing the contrac-
tor to make a change without the contractor's consent, as authorized
under the contract's CHANGES clause. FAR 43.101. Change orders must
be issued by the CO, except when the CO delegates authority to an
administrative CO. FAR 43.202. Contractors must continue performance
of the contract as changed, except that in cost-reimbursement or incre-
mental funded contracts, the contractor is not obligated to continue perfor-
mance or incur costs beyond the established funding limits. FAR 43.201 and
52.243-1 through -6. (The Government Contracts Reference Book)
Efforts to establish two-way communication between the public and EPA
to create a better understanding of EPA programs and related actions.
These efforts, made early and throughout Agency actions, ensure public
input from affected communities about issues concerning them. These
efforts are designed to increase Agency response to public concerns.
Specific community relations activities are required in relation to
Superfund remedial actions.
Type of work assignment that describes the scope of work by stating a
definite goal or target and specifying an end product.
Refers to the relationship between public officials and matters of private
interest or private gain, persons who have left government employment,
or situations in which contractors or prospective contractors have some
bias relating to a procurement or would gain a competitive advantage
from a procurement. With regard to government procurement, FAR 3.601
prohibits Contracting Officers from knowingly awarding contracts to
government employees or to business concerns owned or controlled by
government employees. This policy seeks to avoid any conflict of
interest (COI) that might arise between the employees' interests and their
government duties, and any appearance of favoritism or preferential
treatment. (The Government Contracts Reference Book)
There are two types of COI: organizational and personal. An organizational
COI occurs when, because of other activities or relationships with other
persons, a person is unable or potentially unable to render impartial assis-
tance or advice to the government, or the person's objectivity in performing
the contract work is or might be otherwise impaired, or a person has an
unfair competitive advantage. FAR 9.5. Personal COI is defined in Environ-
mental Protection Agency Acquisition Regulation, Clause 1552.209-73,
"Notification of Conflicts of Interest Regarding Personnel," as a relationship
of an employee, subcontractor employee, or consultant with an entity that
may impair the objectivity of the employee, subcontractor employee, or
consultant in performing the contract work.
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APPENDIX A • GLOSSARY
Consent
Consent Agreement
Consent Decree
Constructive Change
Constructor
Contract Bond
Contract Claim
Consent to subcontract is the Contracting Officer's written consent for
the prime contractor to enter into a particular subcontract. (FAR 44.101)
Any written document, signed by the parties, containing stipulations or
conclusions of fact or laws and a proposed penalty or proposed revoca-
tion or suspension acceptable to both complaintant and respondent.
(Environmental Regulatory Glossary)
A legal document, approved by a judge, that formalizes an agreement
reached between litigants. In Superfund cases it sets the terms by which
potentially responsible parties (PRPs) will conduct all or part of a
cleanup action of a Superfund site; cease or correct actions or processes
that are polluting the environment; or otherwise comply with regulations
where the PRPs' failure to comply caused EPA to initiate regulatory
enforcement actions. The consent decree describes the actions PRPs will
take and may be subject to a public comment period. (Environmental
Regulatory Glossary)
An oral or written act or omission by the Contracting Officer or other
authorized government official that is construed as having the same
effect as a written change order. A constructive change consists of two
elements: a change element, which calls for examination of the actual
performance to see whether it went beyond the minimum standards
demanded by the contract; and an order element, in which the
government's representative, by work or deed, requires the contractor to
perform work that is not a necessary part of its contract. Claims for
constructive changes are the primary means used by contractors to obtain
additional compensation for performing fixed-price contracts. Included
are claims concerning contract interpretation, defective specifications,
nondisclosure of information, impracticability of performance, breach of
the duty to cooperate, and acceleration. (The Government Contracts
Reference Book)
A subpool subcontractor to the RAC prime contractor who is performing
the construction work.
See performance bond or payment bond.
A written demand by one of the contracting parties demanding money, a
change in contract terms, or other relief under the contract. FAR 33.201.
A claim arising under a contract is a claim that can be resolved under a
contract clause providing for relief sought by the claimant; a claim
relating to a contract is one for which no specific contract clause pro-
vides such relief. (The Government Contracts Reference Book)
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Contract Closeout
Contract Dispute
Contract Modification
Contracting Officer
Technical Representative
Contractor-Acquired
Property
Cooperative Agreement
Core Elements
Settling all contractual issues to ensure that each party has fully met all
contractual obligations. Contract closeouts (1) identify and resolve
uncompleted obligations or pending liabilities on the part of the govern-
ment or the contractor and (2) ensure that contract-related decisions and
actions have been properly documented. FAR 4.804. (The Government
Contracts Reference Book)
A disagreement between the contractor and the Contracting Officer over
the rights included in the contract. According to the Contract Disputes
Act of 1978, 41 U.S.C. 601-613, contractors may submit claims against
the government and the government against contractors. Disputes
originate when one party denies a contract claim. Contract disputes differ
from contract protests. Protests involves a complaint based upon the
solicitation process itself. (The Government Contracts Reference Book)
A written change in the terms of a contract. FAR 43.101. A unilateral or
bilateral written change in the specifications, delivery point, rate of
delivery, contract period, price, quantity, or other provision of an
existing contract, in accordance with the contract clause. Examples
include change orders, notices of termination, supplemental agreements, and
exercises of contract options. (The Government Contracts Reference Book)
The Project Officer (PO) is the Contracting Officer's (CO's) technical
representative according to RAC clause, TECHNICAL DIRECTION, in
contract section H. The PO is responsible for advising the CO of all
technical issues related to contractor performance.
Property acquired or otherwise provided by a contractor for performing a
contract and to which the government has title. (FAR 45.101)
A legal instrument used to transfer money, property, or services to a
State or local government or to another recipient in order to accomplish a
public purpose where substantial involvement is expected between the
government and the recipient. 31 U.S. C. 6305. A cooperative agreement
is not subject to FAR. (The Government Contracts Reference Book)
Significant elements of the contract that are generally supported by
Agency implementation guidance. Core elements include practices that
the RAC Users' Guide Work Group agrees all Regions should abide by
for programmatic consistency. Core elements are subject to change by a
Region as long as the change is fully documented. Regions must notify
the Headquarters RAC Long-Term Contracting Strategy program lead of
the change promptly. Region-specific procedures for core elements must
be included in the Guide in the designated section at the end of the
appropriate chapter. (Also see noncore elements and required elements.)
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APPENDIX A * GLOSSARY
Cost Management
Cost-Plus-Award-Fee
Contracts
Cost Recovery
Cost Reimbursement
Contracts
Cumulative Claim
An oversight process designed to ensure that the government receives
goods and services commensurate with the price billed for the goods and
services. The cost management oversight process proceeds throughout
the life of the contract or work assignment.
A cost reimbursement contract that provides for a fee consisting of (1) a
base fee fixed at the inception of the contract and (2) performance
(award) fee based upon a periodic judgement of the contractor's perfor-
mance and not subject to the DISPUTES clause. FAR 16.305. The
contractor may earn the performance (award) amount in whole or in part.
(The Government Contracts Reference Book)
A process by which the U.S. Government seeks to recover money
previously expended in performing any response action from parties
liable under CERCLA 107(a). Recoverable response costs include both
direct and indirect costs. (Enforcement Project Management Handbook,
Directive 9837.2B, May 1993)
Contracts that include provisions allowing the contractor to receive
reimbursements for allowable incurred costs to the extent provided in the
contract. FAR 16.301-1. Cost reimbursement contracts differ from fixed-
price contracts under which the government pays the contractor on the
basis of pre-established prices. Cost-reimbursement contracts are suitable
for use only when the uncertainties involved in contract performance do
not permit costs to be estimated with sufficient accuracy to use a fixed-
price contract. (The Government Contracts Reference Book)
A cumulative claim is submitted as part of the contract closeout process.
The cumulative claim details all contractor incurred contract expenses
including any outstanding contractor claims against the government.
Data Inspection
Data Quality Objective
Data Validation
Data inspection ensures that the analytical data provided to EPA meet the
required specifications detailed in the work assignment statement of work.
Details the level of analysis, degree of precision, and quality of the
analytical procedures required by EPA.
Data validation attempts to give the data user a summary of the strengths
and weaknesses of a particular data set and provide information neces-
sary to determine if the data is appropriate to use for the intended purpose.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Davis-Bacon Act
Deliverable
Demobilization
Direct Cost
Document Control
Number
Dollar Ceiling
The Davis-Bacon Act, 40 U.S.C. 276a, requires payment of not less than
prevailing wage rates to workers on Federal or Federally-funded con-
struction projects of over $2,000. FAR 22.403-1. The prevailing wages
set by the Department of Labor are based upon the wages paid to the
majority of the laborers or mechanics falling within the same specific
classifications on similar projects in the area during the period in ques-
tion. (The Government Contracts Reference Book)
A product or service that is prepared for and delivered to the government
under the terms of a contract, delivery order, or work assignment.
Period of time at the end of a contract or remedial action when most
closeout actions are completed, final invoices are submitted, and govern-
ment property is returned.
Any cost specifically identified with a particular final cost objective. FAR
31.202. The term is not necessarily limited to items incorporated in the
end product as material or labor. Costs identified specifically with the
contract are direct costs of the contract and are to be charged directly to
the contract. (The Government Contracts Reference Book)
Unique number for each funding action under an account control number.
Maximum amount of money available for expenditure under a specific
cost category. For example, a RAC has dollar ceilings for equipment,
subpool, and completion-form. Dollar ceilings may be raised by the
exercise of options as specified in the contract.
Environmental Justice
Equitable Adjustment
The fair treatment of people of all races, cultures, incomes, and educa-
tional levels with respect to the development, implementation, and
enforcement of environmental laws, regulations, and policies. Fair
treatment implies that no population of people should be forced to
shoulder a disproportionate share of the negative environmental impacts of
pollution or environmental hazards due to a lack of political or economic
strength. (Environmental Justice Manual, Office of Enforcement)
A price adjustment under a contract clause for changed work, including
an adjustment in profit, a change in the delivery schedule, if appropriate,
and a change in other affected terms of the contract. Equitable adjust-
ments may result in price increases for the contractor for increased work,
or price reductions of the government for reduced work. Equitable
adjustments differ from damages which are given in the absence of a
contract clause calling for an equitable adjustment. (The Government
Contracts Reference Book)
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APPENDIX A * GLOSSARY
Expendable Property
Expenditure Limit
Personal property that is consumed by use (e.g., paper and pencils).
The amount of dollars and hours available to the contractor to expend in
performance of a particular work assignment (WA). The contract prohib-
its the contractor from exceeding the expenditure limit (EL) without
Contracting Officer approval. The government sets the EL when a WA is
issued and adjusts it as needed during the course of the WA to manage
the phasing and execution of the work. For individually funded WAs,
such as remedial actions, the EL can never exceed the total funding
available on the WA. For WAs utilizing the contract's bulk funding, the
EL serves as the WA funding ceiling. In bulk-funded WAs, the combined
ELs of WAs associated with a specific funding category cannot exceed
the funding available in that category (see Bulk-Funding Categories).
Combined ELs for all bulk-funded and individually funded WAs cannot
exceed the total obligated dollars within the contract.
File
Freedom of
Information Act
Consists of selected, related records. The term "record" refers to any unit
of documentation that records a decision, documents an activity, or has
administrative, fiscal, legal, historical, evidential, or programmatic value
to the Federal Government. Examples of records include memos, docu-
ments, video tapes, etc.
The Freedom of Information Act (FOIA), part of the Administrative
Procedure Act passed in 1966, provides a mechanism for members of the
public (including contractors) to gain access to Agency records main-
tained by the government. (5 U.S.C. 552) The FOIA requires public
disclosure unless records fall within one of nine exemptions listed in the
act. The "trade secrets and commercial or financial information obtained
from a person and privileged or confidential" clause affects contractors
the most. Government agencies can, however, release information if it
falls within this exemption unless such a release would constitute an
abuse of discretion. (The Government Contracts Reference Book)
Government-Furnished
Property
Government Property
Property in the possession of or directly acquired by the government and
subsequently made available to the contractor. (FAR 45.101)
All property owned by or leased to the government or acquired by the
government under the terms of the contract. It includes both government-
furnished property and contractor-acquired property. (FAR 45.101)
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Health and Safety Plan
Plan outlining the implementation of all Federal, State, and local require-
ments regarding health and safety. Each RAC contractor must submit a
corporate health and safety plan and any site-specific health and safety
plan required by an individual work assignment issued under the con-
tract. (RAC section H)
Indemnification
Independent Government
Cost Estimate
Indirect Cost
Inherently Governmental
Function
Innovative Technologies
An agreement in anticipation of a potential loss, to hold another party
harmless, to secure another party against loss or damage, or to give
security for the reimbursement of another party. (The Government
Contracts Reference Book)
A detailed estimate of the cost to the government for services and/or
supplies to be acquired from a contractor. (EPA Independent Government
Cost Estimating Guide)
Costs not identified with single final cost objectives but instead with two
or more final cost objectives, or with at least one intermediate cost
objective. FAR 31.203. Indirect costs are also called "overhead" or
"burden." Indirect costs are allocated to cost objectives after direct costs
have been determined and charged directly to the contract or other work.
An indirect cost cannot be allocated to a final cost objective if other costs
incurred for the same purpose in like circumstances have been included
as a direct cost of that or any other final cost objective. (The Government
Contracts Reference Book)
Function so intimately related to the public interest that it mandates
performance by government employees. (OMB Circular A-76)
Alternative treatment technologies for which applications at Superfund and
similar sites are inhibited by lack of data on performance and cost. In
general, a treatment technology is considered innovative if it has had limited
full-scale application. Often, it is the application of a technology or process
to soils, sediments, sludge, and solid-matrix waste (such as mining slag) that
is innovative. (Innovative Treatment Technologies: Annual Status Report
Sixth Edition, EPA 542-R-94-005)
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APPENDIX A * GLOSSARY
"Kickoff' Meeting
A meeting between the contractor and EPA officials, including the
Contracting Officer and Project Officer, that usually is held within seven
days of contract award. The meeting is used to clarify Regional and
contractor expectations regarding RAC performance and to establish a
solid working relationship between EPA and contractor management.
Labor Surplus Area
Level of Effort
Limitation of Future
Contracting
Liquidated Damages
Long Term Contracting
Strategy (LTCS)
A geographical area identified by the Department of Labor in accordance
with 20 CFR 654, subpart A, as an area of concentrated unemployment
or underemployment. FAR 20.101. EPA encourages concerns located in
labor surplus areas (LSAs) to participate in EPA contracting activities;
uses its best efforts to award contracts in LSAs; encourages prime
contractors to award subcontracts to concerns performing work in LSAs;
and establishes annual LSA goals.
A statement of work in terms of an amount of effort usually measured in
labor-hours or labor-years. Level-of-effort (LOE) contracts are to be
performed by specified classes of employees over a given period of time.
LOE contracts include fixed-price LOE contracts, time-and-materials
contracts, labor-hour contracts, and term contracts. (The Government
Contracts Reference Book)
Contract clause with conditions restricting contractor ability to compete
for contracts subsequent to the performance period of the contract
containing the clause. (RAC section H)
A contract provision stating a sum for which one of the parties will pay
upon breach of contract or failure to perform contract provisions FAR
Subpart 12.2. Liquidated damages clauses should be used only when (1)
the time of delivery or performance is such an important factor that the
government can reasonably expect to suffer damage if delivery or
performance is delinquent and (2) the extent or amount of damage would
be difficult or impossible to ascertain or prove. Liquidated damages rates
must be reasonable because liquidated damages fixed without any
reference to probable actual damages may be held to be a penalty and,
therefore, unenforceable. (The Government Contracts Reference Book)
A strategic Agency planning effort to analyze the long-term contracting
needs of the Superfund program and to design a portfolio of Superfund
contracts to meet those needs over the next 10 years. The issues, analysis,
and decisions contained in the strategy are the products of an Agency-
wide task force. Response Action Contracts are the remedial component
of the LTCS.
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Management Information
System (MIS)
Mentor-Protege Program
MfflerAct
Mobilization
Monthly Invoice Review
Used to monitor contractor performance and facilitate the exchange of
information between the Contracting Officer (CO), Project Officer (PO),
and Work Assignment Manger (WAM). Each Region maintains contrac-
tor performance information, which may include contract budget ceil-
ings, work assignment budget ceilings, cumulative and monthly contrac-
tor costs, and additional information obtained from monthly progress
reports, in a computerized database or other MIS.
A test program to encourage contractors to act as mentors to small
disadvantaged business concerns. The program seeks to increase the
participation of small disadvantaged businesses as subcontractors and
suppliers available for government and commercial contracting. (The
Government Contracts Reference Book) EPA promotes involvement in
the Mentor-Protege Program by crediting a mentor's participation
against subcontracting plan goals and evaluating program participation
favorably in the performance (award) fee review process.
The Miller Act requires the execution of separate performance bonds and
payment bonds as a prerequisite to award of construction contracts
exceeding $25,000. FAR 28.102. (The Government Contracts Reference
Book)
Start-up period of a contract when staff are assigned to projects, required
plans are developed, and necessary non-site-specific equipment is
acquired.
A cost management oversight activity that includes (1) contractor
submission of copies of invoices and invoice site attachments (2) a Work
Assignment Manager and Project Officer review of invoices against
monthly progress reports and (3) a resolution of payment issues and
invoice approval.
Noncore Elements
Non-site-specific
Minor elements of contract administration that allow for variances in
Regional procedures. Regions must document changes to noncore
elements and are encouraged to provide this information to the Head-
quarters program lead. Region-specific procedures for all noncore
elements should be included in the Guide in the designated section at the
end of the appropriate chapter. (Also see core elements and required
elements.)
Refers to an activity or cost that is not directly associated with a single
site (e.g., program support costs). (See site-specific.)
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APPENDIX A • GLOSSARY
Non-Team subcontractors
Subcontractors providing specialized services for the prime contractor
that ordinarily cannot be provided by the prime or its Team subcontrac-
tors. Subcontracting efforts pertaining to specific activities issued under
completion-form work assignments (WAs) will be charged against the
overall completion ceiling. All subcontracting pertaining to specific
activities required under term-form WAs is financed through the subcon-
tracting pool, which is a sub-element of the term-form segment of the
contract.
Obligee
Option Period
Option to Extend Period
of Performance
Option to Increase
Quantities
Other Direct Costs
One to whom another is bound by contract or legal agreement. (Webster's
Dictionary)
A unilateral right in a contract by which, within a certain time period, the
government may elect to purchase additional supplies or services called
for by the contract, or may elect to extend the contract. FAR 17.201.
Contracting Officers (COs) must notify the contractor in writing within a
time period specified in the contract. COs must ensure that (1) sufficient
funds exist (2) the requirement covered by the option fulfills an existing
government need, and (3) exercise of the option is the most advantageous
method of fulfilling the government's need. (The Government Contracts
Reference Book)
RACs have a five-year base period with a single option to extend the
term of the contract for an additional five-year period, making a total of
ten years available.
Within the base and option periods of the contract, EPA has the option to
increase the hours in the level of effort, and the dollar ceilings of the
subcontracting pool and the equipment pool in the term-form portion of
the contract, and to increase the dollar ceiling in the completion-form
portion of the contract. These options may be exercised periodically as
needed in the specified increments of hours or dollars.
Non-labor expenses approved for contractor use, such as copying, travel,
or computer time.
Payment Bond
Covers payment of labor and materials when a contractor is unable or
refuses to perform its construction contract. A payment bond assures
payments as required by law to all persons supplying labor or materials
in the prosecution of work provided for in the contract. (FAR 28.001)
The Miller Act requires such bonds for construction contracts exceeding
$25,000 and they may be required for additional contract types. (Black's
Law Dictionary and The Government Contracts Reference Book)
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Performance Bond
Performance Evaluation
Performance Evaluation
Board
Performance Fee
Performance Fee Plan
Period of Performance
Personal Property
Personal Services Contract
Type of contract bond which protects against loss due to the inability or
refusal of a contractor to perform its construction contract. A perfor-
mance bond secures performance and fulfillment of the contractor's
obligation under the contract. (FAR 28.001) The Miller Act generally
requires performance bonds for construction contracts and they may
occasionally be required for other contracts. (Black's Law Dictionary
and The Government Contracts Reference Book)
The periodic evaluation of contractor performance in carrying out its
obligations on government contracts. (The Government Contracts
Reference Book)
Group of government officials that evaluates contractor performance
under a cost-plus-award fee contract and recommends a performance
(award) fee amount to the Fee Determination Official.
Fee awarded to the contractor under a cost-plus-award fee contract based
upon a subjective evaluation by the government of contractor perfor-
mance. Established rating criteria are used to determine the amount of
the performance (award) fee.
A written plan in the contract that specifies how the base and perfor-
mance (award) fee provisions of the contract are administered. Synony-
mous with award fee plan. (RAC statement of work, Attachment D)
Timeframe in which work takes place under a contract, delivery order, or
work assignment, usually beginning with the date of Contracting Officer
approval and ending when the last deliverable is due. The period of perfor-
mance for the RAC is effective from the start date through 60 months,
exclusive of all required reports. The period may be extended by exercising
the option to extend the period of performance. (RAC sections F and H)
Property of any kind, or interest in it, with the exception of real property,
records of the Federal Government, or naval ships. FAR 45.601. All
property other than real property; everything that is the subject of
ownership, not coming under the denomination of real estate. (The
Government Contracts Reference Book)
A contract that, by its express terms or as administered, makes the contractor
personnel appear to be, in effect, government employees. FAR 37.101.
Government agencies may not award personal services contracts unless
specifically authorized by statute to do so, since such contracts tend to
circumvent the civil service laws requiring the government to obtain its
employees by direct hire using established competitive procedures. FAR
37.104(b). FAR 37.104(c) provides that the key indicator of a personal
services contract is "relatively continuous supervision and control" of
contractor employees by government officials. FAR 37.104(d) provides a list
of other elements that may indicate that a personal services contract exists.
(The Government Contracts Reference Book)
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APPENDIX A • GLOSSARY
Pollution Liability
Insurance
Potentially Responsible
Party (PRP)
Prime Contractor
Privity of Contract
Procurement Request
Program Support
Progress Report
Property Justification
Contractual coverage binding an insurer to indemnify a contractor for
claims with respect to any release or threatened release of a hazardous
substance or pollutant or contaminant occurring during the performance
of the response action contract. (CERCLA Section 119)
Entity as defined in CERCLA that may be liable for the release or
threatened release of hazardous substances at a site. The government
conducts a PRP search as an early step in its enforcement process,
seeking to identify the generators, transporters, owners, and/or operators
of a site.
A person or organization entering into a contract directly with the
government. The term "Prime" is used to distinguish that contract from
any subcontract entered into between the prime contractor and a supple-
mental vendor called a subcontractor. There is privity of contract be-
tween the government and the prime contractor but not between the
government and the subcontractor. (The Government Contracts Refer-
ence Book)
The legal relationship and responsibilities between parties to the same
contract. The government has privity of contract with the prime contrac-
tor; the prime contractor has privity of contract with the first-tier subcon-
tractor. (The Government Contracts Reference Book)
Form used to begin process of committing and obligating funds. (RAC
Acquisition Model)
Contract administration and management activities to plan, monitor, and
control all work assignments issued under the contract. (RAC statement
of work, El, A)
RAC contractors are required to submit a comprehensive set of monthly
progress reports to EPA. These progress reports include contract- and
work-assignment-level technical and financial information which enables
EPA to track progress, resolve problems, monitor expenditures, and
review and approve contractor invoices. The reports contain technical
information, presented in narrative form, and cost information, presented
as financial reports in both hard-copy and electronic form.
The government's written justification that provides rationale for provid-
ing government property to the contractor either by transfer or contractor
acquisition of property. The Justification of Need for Government
Property/Equipment form is commonly referred to as the "seven-point"
justification. (RAC Acquisition Model)
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Quality Assurance
Quality Control
Tasks performed by individuals outside an organization to monitor or
improve the organization's output. Refers to inspection in terms of
quality and quantity. Quality assurance may include a planned, system-
atic pattern of actions taken to provide adequate confidence that suffi-
cient technical requirements are established, that products and services
conforms to those requirements, and that satisfactory performance is
achieved. DFARS 246.101. (The Government Contracts Reference Book)
Tasks performed by individuals inside an organization to improve the
quality of the organizations' output. Government contracts may call for
the contractor to provide a quality control (QC) system that ensures that
the work meets contract requirements. QC generally includes (1) setting
cost, performance, safety, and reliability standards; (2) comparing the
offered product or service with house standards; (3) taking corrective
action when necessary; and (4) planning for improvements. (The Gov-
ernment Contracts Reference Book)
Real Property
Reasonable Cost
Record
Includes land and rights in land, ground improvements, utility distribu-
tion systems, buildings, and other structures. FAR 45.101. Real property
excludes foundations and other work necessary for installing special
tooling, special test equipment, or plane equipment. Real property
purchases are not covered by the Contract Disputes Act of 1978. (The
Government Contracts Reference Book)
A cost is reasonable if, in its nature and amount, it does not exceed that
which would be incurred by a prudent person in the conduct of competi-
tive business. The government attaches no presumption of reasonable-
ness to the incurrence of costs by a contractor; if an initial review of the
facts results in the challenge of a specific cost by the Contracting Officer
(CO) or the CO's representative, the burden of proof is on the contractor.
What is reasonable depends on (1) the type of cost generally recognized
as ordinary and necessary for the conduct of the contractor's business or
the performance of the contract; (2) generally accepted sound business
practices; (3) the contractor's responsibilities to the government, other
customers, the owners of the business, employees, and the public at large;
and (4) any significant deviations from the contractor's established prac-
tices. FAR 31.201 -3. (The Government Contracts Reference Book)
Refers to all books, papers, maps, photographs, machine-readable
materials, or other materials made or received by an agency of the U.S.
Government under Federal law or in connection with the transaction of
public business, and preserved or appropriate for preservation by that
agency or its legitimate successor either as evidence of the organization,
A-16
MAY 31, 1995
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APPENDIX A • GLOSSARY
Regional Crossovers
Release Statement
Required Elements
Response Action
Contracting Strategy
RP2M
functions, policies, decisions, procedures, operations, or other activities
of the government or because of the informational value of the data in
them. Library and museum material made or acquired and preserved
solely for reference or exhibition purposes, extra copies of documents
preserved only for convenience of reference, and stocks of publications
and of processed documents are not included. (The Government Con-
tracts Reference Book)
The process of using contractor capacity from another Region due to
conflict of interest issues or Regional capacity shortage.
A contract agreement exonerating another party if claims are asserted in
the future. An unconditional general release by a contractor operates to
bar all existing contractor claims, including pending claims as well as
known and unknown claims. The contractor may preserve its rights to
specific claims by expressly exempting those claims when the release is
executed. The contract may require the contractor to give a release of
claims and liabilities before the government makes final payment. FAR
43.204(c)(2) states that Contracting Officers should insert releases in
supplemental agreements settling claims. (The Government Contracts
Reference Book)
Elements that are part of the contract or are required by directive or law
(i.e., FAR, EPAAR). Required elements are not subject to revision. The
management of these elements must be consistent throughout the Re-
gions. (Also see core elements and noncore elements.)
EPA's strategy designed to balanced program needs and strategy objec-
tives. The strategy includes: (1) an integrated "one program" approach to
enforcement and site cleanup; and (2) greater flexibility, improved
oversight, and cost management through decentralization of contract
management responsibilities to the Regions.
National automated system used to plan funding and track progress on sites.
Scoping Meeting
A meeting with the contractor called by the Work Assignment Manager
(WAM) after the work assignment (WA) has been issued and prior to
contractor completion of the work plan, to review and clarify WA
requirements. The purpose of the scoping meeting is for the WAM and
other essential EPA personnel to meet the contractor personnel that will
be involved in the WA, discuss the requirements of the WA outlined in
the statement of work, and clarify any questions or issues that the
contractor may have regarding the implementation of the WA.
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MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Sensitive Contracting
Areas
Service Contract Act
Site
Site File
Site-specific
Small and Disadvantage*!
Business Utilization
Statement of Work
Subcontracting Pool
(Subpool)
Activities which, when performed by EPA contractors, place EPA in a
vulnerable or sensitive position if adequate management controls are not
implemented. These sensitive contracting areas require justification and
approval. (OMB OFPP Policy Letter 92-1 and EPA Order 1900.2,
Contracting at EPA)
Law requiring contractors to pay not less than prevailing wages and
fringe benefits and provide safe conditions of work under contracts for
the performance of services in the United States through the use of
service employees. (41 U.S.C. 351-357) The Department of Labor
establishes prevailing wage rates upon receipt of a Standard Form 98
from a Contracting Officer. FAR 22.1007, 22.1008. (The Government
Contracts Reference Book)
The land or water area where any "facility or activity" is physically
located or conducted, including adjacent land used in connection with
the facility or activity. (Environmental Regulatory Glossary)
Contain site-specific documents on remedial or removal activities and
decisions. The site files comprise the administrative record for the site
and contain work assignment deliverables (e.g., project reports such as
the remedial design).
An activity, report, or cost that is only valid for, or confined to, a certain
given piece of land and/or water. The term may apply to data, studies to
obtain information, environmental impacts, use restrictions, remedial
actions, etc. (Environmental Regulatory Glossary)
EPA's plan to utilize: (1) socially and economically disadvantaged
businesses; (2) small business set-asides; (3) minority businesses; (4)
labor surplus area set-asides; (5) subcontracting; (6) women-owned
business concerns; (7) rural area small businesses; and (8) historically
black colleges and universities.
Describes the actual work to be done by the contractor by means of (1)
specifications or other minimum requirements, (2) quantities, (3) perfor-
mance dates, (4) time and place of performance of services, and (5)
quality requirements. Plays a key role hi a solicitation as the bases for
the contractor's response, and provides a baseline against which progress
and subsequent contractual changes are measured during contract
performance. (The Government Contracts Reference Book)
The RAC specifies a subcontracting pool (commonly referred to as the
"subpool") in the term-form segment of the contract. All subcontracting
for site-specific activities required under term-form work assignments is
done under the subpool, including subcontracting for: initial response
actions, well-drilling, analytical services, special consultants to support
A-18
MAY 31, 1995
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APPENDIX A • GLOSSARY
Subpool Subcontractors
Substantive Change
Subtask
Surety Bond
technical projects or serve as expert witnesses, aerial mapping, survey-
ing, fencing, and construction activities associated with a remedial
action. (Note: This same type of subcontracting occurs under the
completion-form segment of the contract within the overall completion-
form ceiling. There is no separate subpool in the completion-form
segment of the contract.)
Firms or individuals under subcontract to perform site-specific work
under the RAC subcontracting pool. Subpool subcontractors include
specialty subcontractors (i.e., used for well-drilling, initial response
actions, analytical services, aerial mapping, surveying, etc.) and reme-
dial action subcontractors (construction firms) but do not include Team
subcontractors.
Affects the price, quantity, quality, or other terms and conditions of the
contract. A substantive change to a contract usually necessitates an
equitable adjustment, implemented through a bilateral modification.
A division of a work task. The RAC statement of work identifies typical
subtasks within work area tasks.
Obligation of a guarantor to pay a second party upon default by a third
party in the performance the third party owes to the second party.
(Black's Law Dictionary)
Task
Team Subcontractors
Technical Direction
A portion of the work to be performed as set forth in the work assign-
ment statement of work. Work areas in the RAC work breakdown
structure are broken down into tasks.
Subcontractors included in the RAC prime contractor's proposal and
part of the prime contractor's team. Team subcontractors may be used
by the prime contractor to work on any assignment that the prime deems
appropriate. Team subcontractors are authorized in the contract during
contract negotiations with the prime contractor and further EPA consent
to performance by the Team subcontractors during contract performance
is not required.
Government guidance of a contractor's effort toward certain areas of
endeavor or lines of inquiry that fall within the contract statement of work.
Technical direction is provided in writing by the Project Officer, with a
copy to the Contracting Officer. The PO coordinates such direction with the
contractor to ensure that it does not impose work over and above what the
contract requires. (The Government Contracts Reference Book)
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MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Technical Direction
Memorandum
Term-Form Contract
Total Quality
Management
Verbal technical direction must be confirmed in writing within five
calendar days after verbal issuance. The written documentation require-
ments may vary between Regions, but all written documentation is
considered "technical direction memoranda" (TDM) for the purposes of
complying with the RAC TECHNICAL DIRECTION clause.
A type of cost-plus fixed fee contract in which the scope of work is
described in general terms and the contractor's obligation is stated in
terms of a specified level of effort for a stated period of time. FAR
16.306(d)(2). (The Government Contracts Reference Book)
A management and operations technique intended to provide the founda-
tion for a continuously improving organization by encouraging employ-
ees to focus their attention on means of improving efficiency and effec-
tiveness. It is the application of human resources and quantitative
methods to improve (1) the materials and services supplied to an organi-
zation, (2) all the processes within an organization, and (3) the degree to
which the needs of the customer are met. The technique uses fundamen-
tal management techniques, existing improvement efforts, and technical
tools within a disciplined approach focused on continuous process
improvement. (The Government Contracts Reference Book)
Unilateral Contract
Modification
A contract modification signed only by the Contracting Officer (CO).
COs issue such modifications to make administrative changes, issue
change orders, make changes authorized by clauses other than the
CHANGES clause, or issue termination notices. FAR 43.103. (The
Government Contracts Reference Book)
Value Engineering
Value Engineering
Change Proposal
A formal technique by which contractors may (1) voluntarily suggest
methods for performing more economically and may share in any resulting
savings or (2) be required to establish a program or identify and submit to
the government methods for performing more economically. FAR 48.101(a).
The object of value engineering (VE) is to cut costs in the design or con-
struction of a project without compromising quality or function. The method
eliminates anything that increases acquisition, operation, or support costs.
(The Government Contracts Reference Book)
A change proposal that recommends a method to reduce the overall
projected cost to the Agency without impairing essential functions or
characteristics. FAR 48.001. (The Government Contracts Reference
Book)
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MAY 31, 1995
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APPENDIX A • GLOSSARY
Voucher/Invoice Validation
Vulnerable Contracting
Area
The Contracting Officer (CO) or CO's representative performs periodic
voucher/invoice validation reviews, yearly and as needed, to ensure that
contractor billings are made in accordance with contractual terms and
that they are adequately documented. It is recommended that these
reviews be performed on site at the contractor's office in order to verify
costs against primary source documents and accounting records.
Certain activities, when performed by contractors under RACs, that may
place the Agency in a vulnerable position if adequate controls are not
implemented. Vulnerable areas fall under four general categories: (1)
advisory and assistance services; (2) activities involving sensitive
contracting areas; (3) general contracting areas requiring special contract
controls; and (4) specific contract work areas requiring controls.
Wage Rate
Work Area
Work Assignment
Work Assignment
Amendment
Work Assignment
Closeout
General term describing rate of payment to laborers. Wage rates for some
types of government contracting work are mandated by Federal law such
as the Davis-Bacon Act for construction contracts and the McNamara-
O'Hara Service Contract Act for service contracts.
Project-level work definition in the RAC work breakdown structure, e.g.,
remedial investigation/feasibility studies, remedial design, remedial
action. Work assignments are issued at the work area level.
A written order for work issued by the government to a contractor under
a work assignment (WA) type contract. A WA designates the government
Work Assignment Manager and generally contains: background for the
requirement, scope of work, time schedule, deliverables, period of
performance, reference to applicable section of the contract statement of
work, level of effort, documentation requirements, and any restriction on
travel, printing, or other activity.
A formal work assignment (WA) amendment is required to authorize any
changes to the statement of work or work plan (WP) when site condi-
tions are different than originally projected or other unforeseen changes
affect the approved scope, level of effort (LOE), or dollar values in the
WP. Three major types of amendments are used to address unforeseen
changes in RAC WAs: (1) amending the WA to change or revise its
scope; (2) increasing/decreasing WA budgets/LOE with no change in
WA scope; and (3) changes within remedial action WAs.
Settling all work assignment (WA) issues to ensure that each party has
fully met all WA obligations. WA closeouts (1) identify and resolve
uncompleted obligations or pending liabilities on the part of the govern-
ment or the contractor and (2) ensure that WA-related decisions and
actions have been properly documented. (The Government Contracts
Reference Book)
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MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Work Assignment
Closeout Report
Work Assignment
Package
Work Breakdown
Structure
Work Plan
There are two types of work assignment closeout reports (WACRs). One
is an EPA-prepared WACR that serves as EPA's overall evaluation of the
contractor's performance on the work assignment (WA). The other is the
contractor-prepared WACR that serves as the contractor's self-evaluation
for the overall WA performance and summarizes WA level of effort and
cost. Both the contractor and EPA-prepared WACRs provide information
on the contractor's WA performance, cost, and schedule. The reports
include evaluations in the six performance fee evaluation categories:
project planning, technical competence and innovation, schedule and
cost control, resource utilization, reporting, and effort.
To initiate a new work assignment (WA), the Work Assignment Manager
(WAM) must prepare a WA package (WAP). The WAP includes the
following items: (1) WA form; (2) statement of work; (3) independent
government cost estimate; (4) WAM Designation Form 1900-65; (5)
Procurement Request, EPA Form 1900-8; and (6) Contractor Selection
Notice.
A display of a contractual statement of work or an organizational chart
depicting the necessary hardware, software, and services required in
contract performance, and their relationship to each other. The structure
divides the work to be performed under a contract into logical segments
in order to help track progress and performance cost. The structure
displays and defines the products to be developed or produced under the
contract and relates the elements of work to be accomplished to each
other and to the end product. Work breakdown structures are required as
a part of a cost/schedule control system used to manage major contracts.
(The Government Contracts Reference Book)
The work plan (WP) is the contractor's response to a government-issued
work assignment (WA). The WP describes the project goals, the techni-
cal approach to be used by the contractor, the tasks and deliverables, the
delivery schedule, and the proposed personnel (including resumes),
equipment, subcontracting, and other special requirements of the WA. It
also includes a detailed cost estimate outlining in detail what the con-
tractor believes their costs will be to perform the WA.
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MAY 31, 1995
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Response Action Contract
(RAC) Users' Guide
]fokanel: Reference Guide
Contract Clause
Matrix
APPENDIX
MAY 31, 1995
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Chapter/Section
Associated Contract Clause(s)/Attachments
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ID
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Chapter/Section
Associated Contract Clause(s)/Attachments
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.3.6
2.3.7
2.3.8
2.3.9
Conflict of Interest
Indemnification
Pollution Liability Insurance
Inherently Governmental Functions
Sensitive Contracting Areas
Personal Services
Program Support
Patents
Environmental Justice
B. Work Assignment Conflict of Interest Certification
H. Organizational Conflicts of Interest
H. Notification of Conflicts of Interest Regarding Personnel
H._ Update of Conflict of Interest Plan (EPAAR 1552.210-81)
H. Limitation of Future Contracting
H. Project Employee Confidentiality Agreement
l._ 'Officials Not to Benefit (FAR 52.203-1 )(Apr 1 984)
l._ 'Gratuities (FAR 52.203-3)(Apr 1 984)
l._ *Anti-Kickback Procedures (FAR 52.203-7)(Oct 1988)
C. Notice Regarding Prohibited Contractor Activities on Environmental Protection Agency
(EPA) Contracts
Attachment A - Statement of Work
I. 'Authorization and Consent (FAR 52.227-1 )(Apr 1984)
I. *Notice and Assistance Regarding Patent and Copyright Infringement (FAR 52.227-
2)(Apr 1984)
l._ 'Rights in Data-Special Works (FAR 52.227-1 7)(Jun 1987)
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Chapter/Section
Associated Contract Clause(s)/Attachments
2
2.3.10
2.3.11
2.4
2.4.1
2.4.2
2.5
2.5.1
2.5.2
2.5.3
Small and Disadvantaged Business Utilization,
Mentor-Protege Program, and Labor Surplus
Areas
Health and Safety
Contract Management Responsibilities
Headquarters Roles and Responsibilities
Regional Roles and Responsibilities
Contractor Interactions with Other EPA
Contractors, Federal Agencies, and State and
Local Agencies
Contractor Interactions with Other Superfund
Contractors
Contractor Interactions with Other Federal
Agencies
Contractor Interactions with State and Local
Agencies
G. Subcontracting Reports - Small Business and Small Disadvantaged Business
Concerns
H. Utilization of Rural Area Small Business Concerns (EP52.219-1 10)(Apr 1990)
H. Utilization of Historically Black Colleges and Universities
I. 'Utilization of Small Business Concerns and Small Disadvantaged Business Concerns
(FAR 52.21 9-8)(Feb 1990)
I. 'Small Business and Small Disadvantaged Business Subcontracting Plan (FAR
52.219-9)(Jan 1991)
I. 'Utilization of Women-Owned Small Businesses (FAR 52.21 9-1 3)(Aug 1986)
I. 'Liquidated Damages-Small Business Subcontracting Plan
I. 'Utilization of Labor Surplus Area Concerns (FAR 52.220-3)(Apr 1984)
I. 'Labor Surplus Area Subcontracting Program (FAR 52.220-4)(Apr 1984)
K. Small Business Concern Representation
K. Small Disadvantaged Business Concern Representation
K. Women-Owned Small Business Representation
K. Preference for Labor Surplus Area Concerns (FAR 52.220-1 )(Apr 1984)
L. Identification of Set-Aside/8A Program Applicability
H._ Health and Safety
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Chapter/Section
Associated Contract Clause(s)/Attachments
4.8
4.9
4.10
4.11
4,12
4.13
4.14
Handling Conflict of Interest Issues
Managing Regional Crossovers
Implementing Control Measures for Vulnerable
Contracting Areas
Small Disadvantaged Business Utilization,
Contractor Participation in Mentor-Protege
Program, and Use of Labor Surplus Areas
Annual Allocation of Non-Specific Site Costs
Annual Closeout
Region-Specific Guidance on Contract
Administration
B. Work Assignment Conflict of Interest Certification
H. Organizational Conflicts of Interest (EPAAR 1552.209-71) Alternate I
H. Notification of Conflicts of Interest Regarding Personnel (EPAAR 1552.209-73)
H. Limitation of Future Contracting
H._ Update of Conflict of Interest Plan (EPAAR 1552.210-81)
H. Project Employee Confidentiality Agreement
l._ Officials Not to Benefit (FAR 52.203-1)
l._ Gratuities (FAR 52.203-3) (April 1984)
H. EPA Regional Crossovers
H. Public Communication
G. Subcontracting Reports - Small Business and Small Disadvantaged Business
Concerns
H. Utilization of Rural Area Small Business Concerns (EP52.219-110)(Apr 1990)
H. Utilization of Historically Black Colleges and Universities
I. 'Utilization of Small Business Concerns and Small Disadvantaged Business Concerns
(FAR 52.21 9-8)(Feb 1990)
I. 'Small Business and Small Disadvantaged Business Subcontracting Plan (FAR
52.21 9-9)(Jan 1991)
I. 'Utilization of Women-Owned Small Businesses (FAR 52.21 9-13)(Aug 1986)
I. 'Liquidated Damages-Small Business Subcontracting Plan
I. 'Utilization of Labor Surplus Area Concerns (FAR 52.220-3)(Apr 1984)
I. 'Labor Surplus Area Subcontracting Program (FAR 52.220-4)(Apr 1984)
K. Small Business Concern Representation
K. Small Disadvantaged Business Concern Representation
K. Women-Owned Small Business Representation
K. Preference for Labor Surplus Area Concerns (FAR 52.220-1 )(Apr 1984)
L. Identification of Set-Aside/8A Program Applicability
G. Annual Allocation of Non-Site Costs (EP52.242-310)(Oct 1991)
G._ OMB Circular A-133 Audits (EP52.242-110)(Dec 1990)
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Chapter/Section
Associated Contract Clause(s)/Attachments
5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
Issuing and Managing Work Assignments
Introduction
Roles and Responsibilities for Issuing and
Managing Work Assignments
Allocating Site-Specific Work Assignments to
Contractors
Developing the Work Assignment Statement of
Work
Preparing and Using the Independent
Government Cost Estimate
Preparing the Work Assignment Package and
Issuing the Work Assignment
Work Plan Technical Review and Cost
Evaluation
Work Assignment Funding
Establishing and Changing the Expenditure Limit
Issuing Technical Direction
Amending the Work Assignment
B. Work Assignments (Level of Effort)(Term Form Segment)
B. Work Assignments (Completion Form Segment)
G._ Government-Furnished Data (EPAAR 1 552.245-71 )(Apr 1 984)
B. Work Assignments (Level of Effort)(Term Form Segment)
B. Work Assignments (Completion Form Segment)
B. Work Assignments (Level of Effort)(Term Form Segment)
B. Work Assignments (Completion Form Segment)
B. Special Limitation of Cost Provision for Work Assignments
H._ Technical Direction (EPAAR 1 552.237-71 )(Apr 1 984)
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Associated Contract Clause(s)/Attachments
5.12
5.13
5.14
5.15
5.16
5.17
6
Wage Rates and Surety Bonds for Remedial and
Non-Time-Critical Removal Action Subcontracts
Value Engineering
Contractor Oversight
Site Demobilization
Work Assignment Closeout Procedures
Region-Specific Guidance on Issuing and
Managing Work Assignments
Administering the Performance (Award) Fee
Plan
H._ Requirement to Submit Notice (SF98/98A)
H. Notification to Subcontractor and Employees
H. Davis-Bacon Act (DBA) Wage Determinations for RAC Subcontracts
H. Performance and Payment Bonds
H. Advance Agreement on Bonding
l._ Withholding of Funds (FAR 52.222-9) (February 1988)
l._ 'Approval of Wage Rates (FAR 52.222-1 6)(Feb 1988)
l._ 'Service Contract Act of 1 965, as Amended (FAR 52.222-41 )(May 1 989)
l._ Statement of Equivalent Rates for Federal Hires (FAR 52.222-42)(May 1989)
E. "Inspection of Services Cost-Reimbursement (FAR 52.246-5)(Apr 1984)
F._ 'Stop-Work Alternate I (FAR 52.21 2-1 3)(Aug 1 989)
H. Retention and Availability of Contractor Files
l._ 'Audit-Negotiation (FAR 52.21 5-1 )(Feb 1993)
I. *Work Oversight in Architect-Engineer Contracts (FAR 52.236-24)(Apr 1984)
Attachment A - Statement of Work
B._ Estimated Cost, Base Fee and Award Fee (EP52.216-200)(Apr 1984)
G. Payment of Base Fee
G._ Award Fee (EPAAR 1 552.21 6-70)(Apr 1 984)
Attachment G - Performance (Award) Fee Plan
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Chapter/Section
Associated Contract Clause(s)/Attachments
11 Records Management
12 Contract Closeout
13 Revisions to the RAC Users' Guide
C. Compliance with EPA Policies for Information Resources Management (EPAAR
1552.210-79) (Sep 1991)
F._ Working Files (EPAAR 1 552.2 1 0-75) (Apr 1 984)
G. Submission of Invoices (EPAAR 1552.232-70) (Sep 1990)
H._ Data
H. Retention and Availability of Contractor Files
I. 'Examination of Records by Comptroller General (FAR 52.21 5-1 )(Feb 1993)
l._ 'Audit-Negotiation (FAR 52.21 5-1 )(Feb 1993)
l._ 'Payrolls and Basic Records (FAR 52.222-8)(Feb 1988)
l._ 'Additional Data Requirements (FAR 52.227-1 6)(Jun 1987)
l._ 'Rights in Data-Special Works (FAR 52.227-1 7)(Jun 1987)
F._ Period of Performance (EP52.212-140)(Apr 1984)
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l._ 'Covenant Against Contingent Fees (Mfl 52.203-5)(Apr 1984) j«j
I. _ *Equal Opportunity Preaward Clearance of Subcontracts (FAR 52.222-28)(Apr 1984) ~
\._ 'Protest After Award Alternate I (FAR 52.233-3)(Aug 1989) c
I. _ 'Restrictions on Contracting with Sanctioned Persons (FAR 52.225-1 1 )(May 1989) jn
K._ Authorized Negotiators (FAR 52.21 5-1 1 )(Apr 1 984) <
K._ Period for Acceptance of Offer (FAR 52.215-19)(Apr 1984) °
K._ Organizational Conflict of Interest Certification (EPAAR 1 552.209-72)(Apr 1984) j=
L. _ SIC Code and Small Business Size Standard (FAR 52.21 9-22)(Jan 1991) m
L. _ Solicitation Provisions Incorporated By Reference (FAR 52.252-1 )(Jun 1988) -
L. _ Use of Double-Sided Copying in Submission of Proposals (EP52.210-155)(Jul 1990) m
L._ Preproposal Conference (EP52.21 5-1 00)(Apr 1984) m
L._ Organizational Conflict of Interest Notification (EPAAR 1 552.209-70)(Apr 1984) %
L. _ Organizational Conflict of Interest Plan %
L. _ Notification of Multiple Awards m
L. _ Service of Protest §
L_ Technical Questions (EP52.21 5-1 1 0)(Apr 1 984) 5
L. _ Release of Cost or Pricing Proposals Outside the Government for Audit (EP52.215-115)(Mar 1989)
L. _ Definition of Labor Classifications
£ L_ Base Fee and Award Fee Proposal (EP52.215-140)(Dec 1990)
L._ Identification of Set-Aside/8A Program Applicability (EP52.219-100)(Feb 1991)
L. _ Subcontracting Program Plan for Utilization of Small Business and Small Disadvantaged Business Concerns (EP52.219-125)(Aug 1984)
L. _ "Submission of Offers in the English Language (FAR 52.21 4-34)(Apr 1991)
L. _ 'Submission of Offers in U.S. Currency (FAR 52.214-35)(Apr 1991)
L. _ 'Preaward On-Site Equal Opportunity Compliance Review (FAR 52.222-24)(Apr 1984)
L. _ 'Evaluation of Compensation for Professional Employees (FAR 52.222-46)(Feb 1993)
M. _ EPA Source Evaluation and Selection Procedures/Architect and Engineering Services
M. _ Evaluation of Conflict of Interest Plan
General Contract Clauses (not specifically addressed in RAC Users' Guide)
F. _ Notice Listing Contract Clauses Incorporated by Reference
G._ Payment of Base Fee (EP52.232-22)
G._ OMB Circular A-133 Audits (EP52.242-1 10)(Dec 1990)
H. _ Requirement for Certification of Recovered Materials Actually Utilized in the Performance of the Contract (EP52.210-195)(Jun 1991)
H._ State and Local Taxes (EPAAR 1 552.229-70)(Nov 1 989)
H. _ Screening Business Information for Claim of Confidentiality (EPAAR 1552.235-70)(Apr 1984)
H. _ Treatment of Confidential Business Information (EPAAR 1 552.235-71 )(Apr 1984)
* Denotes clause is incorporated by reference.
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H. Release of Contractor Confidential Business Information (EP52.235-110)(Feb 1993)
H._ Key Personnel (EPAAR 1552.237-72)(April 1984)
H. Consultant Services and Consent (EPAAR 1552.237-73)(Apr 1984)
H._ Publicity
H. Paperwork Reduction Act
H. Rights of Way Land Easement
H. Expert Testimony
H. Future Expert Consulting Services
H. Signing of Uniform Hazardous Waste Manifests and Land Ban Notifications
Notice Listing Contract Clauses Incorporated by Reference
•Definitions Alternate I (FAR 52.202-1 )(Sep 1991)
•Restrictions on Subcontractor Sales to the Government (FAR 52.203-6)(Jul 1985)
Requirement for Certificate of Procurement Integrity-Modification (FAR 52.203-9)(Nov 1990)
Price or Fee Adjustment for Illegal or Improper Activity (FAR 52.203-10)(Sep 1990)
Limitation on Payments to Influence Certain Federal Transactions (FAR 52.203-12) (Jan 1990)(Deviation)
•Price Reduction for Defective Cost or Pricing Data (FAR 52.215-22)(Jan 1991)
•Subcontractor Cost or Pricing Data (FAR 52.215-24)(Dec 1991)
•Order of Precedence (FAR 52.215-33)(Jan 1986)
Payment for Overtime Premiums (FAR 52.222-2)(Jul 1990)
•Contract Termination - Debarment (FAR 52.222-12)(Feb 1988)
•Termination of Defined Benefit Pension Plan (FAR 52.215-27)(Sep 1989)
•Facilities Capital Cost of Money (FAR 52.215-30)(Sep 1987)
•Reversion or Adjustment of Plans for Postretirement Benefits Other Than Pensions (PRB) (FAR 52.215-39)(Jul 1991)
•Notice to the Government of Labor Disputes (FAR 52.222-1 )(Apr 1984)
•Convict Labor (FAR 52.222-3)(Apr 1984)
•Apprentices and Trainees (FAR 52.222-9)(Feb 1988)
•Compliance with Copeland Act Requirements (FAR 52.222-10)(Feb 1988)
•Disputes Concerning Labor Standards (FAR 52.222-14)(Feb 1988)
•Certification of Eligibility (FAR 52.222-15)(Feb 1988)
•Notification of Employee Rights Concerning Payment of Union Dues or Fees (FAR 52.222-18)(May 1992)
•Equal Opportunity (FAR 52.222-26)(Apr 1984)
•Affirmative Action Compliance Requirements for Construction (FAR 52.222-27)(Apr 1984)
•Affirmative Action for Special Disabled and Vietnam Era Veterans (FAR 52.222-35)(Apr 1984)
•Affirmative Action for Handicapped Workers (FAR 52.222-36)(Apr 1984)
•Employment Reports on Special Disabled Veterans and Veterans of the Vietnam Era (FAR 52.222-37)(Jan 1988)
•Service Contract Act of 1965, as Amended (FAR 52.222-41 )(May 1989)
•Clean Air and Water (FAR 52.223-2)(Apr 1984)
•Drug-Free Workplace (FAR 52.223-6)(Jul 1990)
•Privacy Act Notification (FAR 52.224-1)(Apr 1984)
•Privacy Act (FAR 52.224-2)(Apr 1984)
* Denotes clause is incorporated by reference.
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1
-------
Response Action Contract
(RAQ Users' Guide
\bluml: Reference Guide
Users' Guide
Revisions
APPENDIX
MAY 31, 1995
-------
Regions should keep RAC Users' Guide supplemental guidance received throughout the year and
annual update tracking sheets in this appendix for reference.
-------
Response Action Contract
(RAQ Uses' Guide
Volume 1: Reference Guide
Directives
APPENDIX
MAY 31, 1995
-------
Regions should keep directives relating to Users' Guide topics in this appendix for reference.
-------
xvEPA
United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
Publication #9242.2-11FS
EPA #540-F-94-062
PB95963216
May 1995
Superfund Response
Action Contracts
Office of Emergency and Remedial Response
Hazardous Site Control Division, 5203G
Quick Reference Fact Sheet
The Response Action Contracts (RACs) provide professional architect/engineer services to the U.S. Environmental
Protection Agency (EPA) to support response planning and oversight of activities under the Comprehensive Environ-
mental Response Compensation and Liability Act of 1980 (CERCLA) as amended by the Superfund Amendments and
Reauthorization Act of 1986 (SARA). These contracts are being procured as the Regions deplete the capacity of their
existing Alternative Remedial Contracting Strategy (ARCS) contracts. The purpose of this fact sheet is to provide general
information about the RACs.
SERVICES PROVIDED
Services provided by RACs include:
• program support (management);
• remedial investigation and feasibility studies;
• engineering services to design remedial actions;
• engineering evaluations and cost analyses for
non-time-critical removal actions;
• construction management for implementing re-
medial actions and non-time-critical removal
actions, including issuing and managing subcon-
tracts for construction of the selected remedy,
and engineering services for construction over-
sight;
• enforcement support, including oversight of re-
medial investigations/feasibility studies, reme-
dial designs, and remedial actions, and negotia-
tion support; and
• other technical assistance, including community
relations, sampling and analytical support, and
pre-design investigations.
Services also may include technical and management
services supporting EPA's coordination and/or over-
sight of remedial activities performed by a State, the
U.S. Army Corps of Engineers, or responsible parties
identified in enforcement actions. RAC services do
not include Federal facilities oversight.
SUPERFUND'S LONG-TERM
CONTRACTING STRATEGY
The procurement of RACs implements the long-term
cleanup contracting component of the EPA's Long-
Term Contracting Strategy (OSWER Directive 9242.6-
07FS). This strategy prescribes an integrated "one-pro-
gram" approach to enforcement and site cleanup and
decentralizes contract management to the EPA Regions
to enhance program flexibility and improve contract
oversight and cost management. The RACs supplement
and eventually will replace the ARCS contracts. The
RACs also integrate enforcement oversight and non-
time critical removal activities previously performed
under the EPA's Technical Enforcement Support and
Emergency Response Cleanup Services contracts, re-
spectively. The Agency expects to reduce handoffs,
promote program integration, and give the Regions
flexibility to pursue various enforcement options through
this one-program approach.
CONTRACT TYPE AND STRUCTURE
RACs are cost-plus-award-fee contracts. The base per-
iod of performance is five years, with one five-year
option period that can be exercised at the discretion of
the government, for a potential contract period of ten
years. The RAC statement of work specifies work areas
and tasks within two general categories of activities:
Program Support and Site-Specific Activities. The Re-
gions issue work assignments to order work under RACs.
-------
STATEMENT OF WORK
The R AC statement of work is a nationally standardized
statement of work developed by the Response Action
Contracting Strategy Work Group for use in all Regions.
The statement of work is presented in a work breakdown
structure format. The work breakdown structure is com-
prised of work areas, tasks, and subtasks. Separate work
assignments are issued for each work area. Tasks and
potential subtask activities for each work area are iden-
tified and described in the statement of work. Subtasks
are specified by the Region in individual work assign-
ments as they are issued.
Work areas are organized into four categories:
• Program Support
• Site-Specific Fund-Lead
• Site-Specific Enforcement Support
Other Site-Specific Technical Assistance
RAC contractors use the work breakdown structure in
the statement of work for project scoping, scheduling,
and technical and cost tracking and reporting. Contrac-
tors are required to track and report activities and costs to
the task level and, if specified in individual work assign-
ments, to the subtask level.
PROGRAM SUPPORT (MANAGEMENT)
The program support (management) component of RACs
includes five work areas:
• Mobilization
• Equipment (Non-Site-Specific)
• Ongoing Administrative Support
• Ongoing Technical Support
• Contract Closeout
The Regions will issue and negotiate separate work
assignments for these activities. Mobilization and con-
tract closeout are one-time activities; other program
support activities will be ongoing over the period of the
contract. The work assignment for mobilization and
initial work assignment for non-site-specific equipment
are negotiated during contract negotiations before award.*
Ongoing administrative and technical support work as-
signments are negotiated during mobilization. These
work assignments may extend for the base period of the
contract or may be issued for a shorter period. The
contract closeout work assignment is issued six to eight
months before the end of the contract period. This
approach provides the Regions the flexibility to monitor
and control the program support costs associated with
RACs and complies with the Agency's goal to minimize
and break out program support costs in RACs.
TERM-FORM AND COMPLETION-FORM
WORK ASSIGNMENTS
The Federal Acquisition Regulation describes two
forms of cost-reimbursement contracts—term-form and
completion-form. RACs contain both term-form and
completion-form segments, and term-form or comple-
tion-form work assignments may be issued at EPA's
discretion.
A term-form work assignment obligates the contractor to
devote a specified level of effort for a stated time period
toward achieving a defined objective. The statement of
work is described in general terms and the contractor
provides the specified number of hours on a "best effort"
basis during an agreed-upon time period. Under a term-
form work assignment, the contractor is obligated to
deliver quality labor hours toward a defined objective.
After the issuance of a term-form work assignment, EPA
negotiates with the contractor an estimated work assign-
ment cost and fee pool (calculated according to the
number of direct labor hours to be expended). Perfor-
mance (award) fee is paid based on a subjective govern-
ment evaluation of contractor performance. If the con-
tractor cannot perform the work within the estimated
hours, the government may choose to add hours to the
work assignment. Additional fee would be associated
with those hours.
A completion-form work assignment obligates the con-
tractor to complete and deliver a specified end product
(such as a technical report) within the estimated cost of
the work assignment as a condition for fee payment. If
the contractor cannot complete the product within the
estimated cost, the government may elect to provide the
contractor with additional funds to complete the work
while the fee remains as originally negotiated. The
completion-form approach, therefore, gives the contrac-
tor an incentive to complete the work assignment within
the estimated cost.
Completion-form work assignments are negotiated and
established using the same process as term-form work
assignments, except fee is negotiated based on estimated
cost rather than labor hours. As with term-form work
assignments, if the contractor cannot complete the work
assignment within the estimated cost, the government
may provide additional funds for completion; unlike
term-form work assignments, additional fee usually is
not provided. For both term- and completion-form work
assisgnments, if the work assignment scope of work
changes during the period of performance, the contrac-
tor can claim a "change," which the government may or
may not negotiate to include a change in the fee.
* Last-minute changes in EPA policy may affect treatment of equipment in RACs.
2
-------
RACs contain a base quantity for the term-form (level of
effort) segment of the contract and dollar ceilings for the
completion-form segment of the contract. The Regions
determine the distribution of work between the two
segments for their contracts. When the base quantity
and/or dollar ceiling is exhausted, the Region can modify
the contract to increase contract quantities or dollars
through exercising contract options. Term-form contract
increases raise the number of hours in the contract.
Completion-form increases raise the completion-form
dollar ceiling.
PERFORMANCE (AWARD) FEE PLAN
The Performance (Award) Fee Plan for RACs estab-
lishes the procedures and processes for administering the
fee provisions of the contract. The RACs Performance
(Award) Fee Plan includes base and performance (award)
fee provisions. Base fee is paid provisionally during the
life of a work assignment. If final work assignment
performance is rated as "satisfactory" or better, the
contractor retains all of the base fee associated with that
work assignment. If final work assignment performance
is rated as "unsatisfactory," the contractor must return to
the government the entire base fee associated with the
work assignment. Performance (award) fee is paid only
for completed work assignments for which the govern-
ment evaluates contractor performance as "exceeds ex-
pectations" or "outstanding." Government evaluations
are unilateral and not subject to contractor dispute.
The RAC Performance (Award) Fee Plan motivates
contractors to exceed Regional expectations by provid-
ing performance (award) fee for better-than-satisfactory
performance and discourages less-than-satisfactory per-
formance through a total loss of fee.
REPORTS
RACs contain nationally standardized reporting and
invoicing requirements that allow data to be compared
across contracts and enhance EPA's oversight capabili-
ties. Both hard copy and electronic reports are required.
The contractor is required to (1) report and invoice on the
same calendar period, (2) calculate data elements used in
reports and invoices by the same methods, and (3)
submit progress reports concurrently with invoices. These
requirements ensure that the government has adequate
information for timely review and approval of invoices.
Progress reports, which allow effective monitoring of
work progress, and national reports, which update EPA
Headquarters on contract status, facilitate contract man-
agement and cost control.
CONTRACT FUNDING
Most RAC funding is bulk funding, which means that the
contract as a whole is funded periodically, according to
the funding categories, as opposed to traditional, indi-
vidual work assignment funding. The bulk-funding cat-
egories in RACs are defined as non-site-specific funding
areas in OSWER Publication 9200.3-14.2, Program
Management Manual. The four bulk-funding categories
are:
• Program Support (Other Response)
• Site Characterization (non-site-specific "site"
allowance)
• Removal
• Enforcement
In bulk funding, obligations are not site-specific but
expenditures are. Bulk funds are committed and obli-
gated to the contract using the funding category, a
generic activity code, and a generic site code. The
contractor invoices site-specifically, replacing the ge-
neric activity code and site code with the applicable
activity code and site code specified in the work assign-
ment.
To manage expenditures under individual work assign-
ments, the government establishes an "expenditure limit"
for each work assignment issued. The expenditure limit
is expressed in hours and dollars for term-form work
assignments and in dollars for completion-form work
assignments. The contractor can expend work assign-
ment hours and/or dollars up to the work assignment
expenditure limit but cannot exceed the expenditure
limit. Within the bulk-funding approach, the expendi-
ture limit serves as the work assignment funding ceiling
and ensures that the government controls individual
work assignment expenditures.
Some types of work assignments will not be bulk funded.
Remedial action work assignments and completion-
form work assignments will be funded individually on a
site-specific basis.
FOR FURTHER INFORMATION CALL:
Nancy Ortowski (5203G)
Design and Construction Management Branch
Office of Emergency and Remedial Response
U.S. Environmental Protection Agency
401 M Street, S.W.
Washington, DC 20460
(703) 603-8785
-------
United States
Environmental Protection
Agency
Washington, DC 20460
Official Business
Penalty for Private Use
$300
-------
Response Action Contract
(RAQ Users' Guide
Volume 1: Reference Guide
Fact Sheets
APPENDIX
MAY 31, 1995
-------
Regions should keep fact sheets relating to Users' Guide topics in this appendix for reference.
-------
Response Action Contract
(RAQ Users' Guide
Wlumel: Reference Guide
Forms on
Diskette
APPENDIX
MAY 31, 1995
-------
APPENDIX F » FORMS ON DISKETTE
Many Response Action Contract (RAC) forms are provided throughout
RAC Users' Guide, Volume 2: Process Guide. Electronic versions of the
most frequently used RAC forms are provided in this appendix on the
attached disk. These electronic forms can be completed by RAC manag-
ers using word processing or form filler software. Forms that are de-
signed specifically for the RAC program are formatted in WordPerfect
5.1. EPA Standard Forms are formatted for use with Delrina's PerForm or
FormFlow programs.
Two indices of the RAC forms provided electronically are shown below.
The first index lists forms by exhibit number; the second index lists forms
alphabetically by title.
Hard copies of all electronic forms, arranged alphabetically, follow the
indices.
F-1
MAY 31, 1995
-------
RAC USERS' GUIDE, VOLUME 1: REFERENCE GUIDE
Index to RAC Forms on Diskette by Exhibit Number
Exhibit Number
4-27
4-28
4-29
5-1
5-9
5-12
5-13
5-21
5-43
5-44
6-4
6-5
6-6
10-4
11-5
13-1
Form Title
Summary of Costs Claimed for FYE XX
Summary of Costs Claimed for FYE XX by Work Assignment
Billing Summary for FYE XX
Work Assignment Allocation Matrix
EPA Form 1900-65A, Nomination and Appointment of Contracting
Officer's Representative
EPA Work Assignment Form (WAF) for RAC
EPA Form 1900-8, Procurement Request Form
Copies 1,3,5, and 6 through 1 0
Copy 2
Receiving Report (middle form)
Copies 1 , 2, and the Receiving Report
Copyl
Work Plan Evaluation Checklist
Work Assignment Completion Report (EPA Version)
Work Assignment Completion Report (Contractor Version)
Performance Evaluation Summary
Regional Evaluation Summary
Work Assignment Completion Report
EPA Version
Contractor Version
Checklist for Voucher Validation Review
Standard Form 1 35 (SF 135)
Continuation sheet
Annual Update Tracking Sheet
File Name(s)
04-27
04-28
04-29
05-1
05-9*
05-12
05-1 3A*
05-1 3B*
05-1 3C*
05-1 3D*
05-1 3E*
05-21
05-43
05-44
06-4
06-5
05-43
0544
10-4
11-5A*
11-5B*
13-1
*ln PerForm format
51-033-195
F-2
MAY 31, 1995
-------
APPENDIX F • FORMS ON DISKETTE
Index to RAC Forms on Diskette by Title
Form Title
File Name(s)
Annual Update Tracking Sheet
Billing Summary for FYE XX
Checklist for Voucher Validation Review
EPA Form 1900-8, Procurement Request Form
Copies 1,3,5, and 6 through 10
Copy 2
Receiving Report (middle form)
Copies 1,2, and the Receiving Report
Copy 1
EPA Form 1900-65A, Nomination and Appointment of Contracting Officer's Representative
EPA Work Assignment Form (WAF) for RAC
Performance Evaluation Form
Regional Evaluation Summary
Standard Form 135 (SF135)
Continuation sheet
Summary of Costs Claimed for FYE XX
Summary of Costs Claimed for FYE XX by Work Assignment
Work Assignment Allocation Matrix
Work Assignment Completion Report (EPA Version)
Work Assignment Completion Report (Contractor Version)
Work Plan Evaluation Checklist
13-1
04-29
10-4
05-13A*
05-13B*
05-13C*
05-13D*
05-13E*
05-9*
05-12
06-4
06-5
11-5A*
11-5B*
04-27
04-28
05-1
05-43
05-44
05-21
*ln PerForm format
51-033-196
F-3
MAY 31, 1995
-------
Annual Update Tracking Sheet
Page Number(s) to be
Replaced/Date
pg. 5-25/
January 17, 1995
New Page Number(s)/Date
pgs. 5-25, 5-25a, and 5-25b/
December 31, 1996
Basis for Change
OSWER Directive XXXXXXX
-------
Billing Summary for FYE XX
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Voucher #
Invoice
Date
Costs
Billed
for FYE XX
Fee
Billed
for FYE XX
Total
Billed
for FYE XX
Total
Last Column on this Schedule must equal total Billed on Attachment 1C - Summary of
Costs Claimed
Date Submitted to EPA
Contact Person Name
Number
-------
Checklist for Voucher/Invoice Review
Contractor Name: Contracting Program:
Contract No.: Region:
Reviewer's Name: Review Compl. Date:
Voucher Number(s) Reviewed:
Voucher Performance Period (s):
Step
Performed Reviewer's
(Y/N) Initials Date Review Procedures
1. Review the public voucher for completeness (i.e., company name, total
costs, signatures, dates, contract number, period of performance, etc.) and
determine if costs are presented in the format required by the contract and
billed in accordance with government regulations. Also determine the
following:
a. Are individual costs elements adequately shown?
b. Are cumulative costs adequately shown?
c. How often are vouchers submitted for payment?
d. Is there evidence in the contract file that the voucher was received and
approved by the PO?
2. Ascertain that claimed costs have been incurred, or actually paid,
dependent upon the terms of the payment clause of the contract. Also
determine if the contractor maintains adequate supporting records for all
claimed costs.
3. Make a quick check of the mathematical accuracy of the public voucher.
4. Verify that billed costs were incurred within the period of performance
authorized under the contract, delivery order, etc.
5. Review cumulative costs claimed to assure that the amount claimed does
not exceed the total estimated cost (excluding fee) authorized under the
contract, WA, or delivery order if appropriate.
6. Review and verify that indirect costs claimed are being billed at
contractually established rates. Assure that you have the latest agreement
issued by the Cost Policy and Rate Negotiation Section for the contractor.
7. Verify that the fee billed is in accordance with contractual provisions and
that fee withheld complies with requirements of the contract.
8. Review any special contract provisions for payment restrictions such as
ceilings, etc.
9. Review and determine if site-specific costs are correctly accumulated and
billed.
10. Review and determine whether there is or has been a history of
suspended or disallowed billings, and if so, what is the current status?
-------
Checklist for Voucher/Invoice Validation Review
Contractor Name: Contract Number:
Other Direct Costs
In the area of ODCs, the reviewer must thoroughly review supporting documentation to ensure
that all ODCs sampled are adequately supported and do not exceed any contract dollar ceilings.
Also review any subcontract ODCs for ceiling limitations. In addition, determine the following:
Step
Performed
(Y/N)
Reviewer's
Initials
Date
1. Carefully sample any charges in the miscellaneous category and
transactions in other categories.
2. Ascertain whether the contractor charges similar costs direct to all other
clients.
3. Determine if any expenses that should have been charged to overhead
were charged as ODC expenses.
4. Validate direct purchases of supplies, materials, equipment, etc., and
determine whether property has been purchased and properly approved under
the contract.
5. Review the purchase document (purchase order, etc.) to see who
authorized the purchase.
6. Compare the purchase document with the vendor's invoice. This should
then be compared with the contractor's voucher to EPA. Determine the
reason for any difference.
Subcontracts
Step
Performed
(Y/N)
Reviewer's
Initials
Date
1. Verify a sample of subcontract costs claimed. Ascertain that items and
services claimed were purchased directly for the contract. Verify that
subcontractor's costs are properly shown on the prime contractor's vouchers.
Assure that the contractor monitors subcontractor costs by cost element as
well as by entity. Assure that indirect cost rates on subcontracts are
periodically adjusted to reflect actual rates incurred. Validate support for
subcontractor invoices.
2. Assess the adequacy of the prime contractor's monitoring of the
performance of subcontractors.
3. Determine whether the subcontractors sampled have been properly
approved by the Contracting Officer in accordance with the terms of the
contract. Review the contract agreement between the prime and
subcontractor. Be aware of any potential conflict of interest.
-------
Checklist for Voucher/Invoice Validation Review
Contractor Name: Contract Number:
Labor
Specific emphasis should be given to labor costs. The reviewer should assure answers to the
following questions:
Step
Performed
(Y/N)
Reviewer's
Initials
Date
1. Will the total LOE be exceeded before the contract performance period
expires?
2. Did the contractor charge premium for overtime worked? Was it authorized
by the Contracting Officer in advance? Was it charged consistent with the
contractor's established practice7
3. Are the hours charged within the estimates specified in the work
plan/delivery order?
4. Do the employees billed meet the contract requirements for the category in
which they are billed? (You can ask the contractor for specific employees'
resumes and compare them to the labor category requirements.)
5. Does the labor mix appear to be appropriate?
6. Are the labor hours and rates supported by timesheets and the payroll
register?
7. Are there any dollars being charged to direct labor that are not being
charged to LOE7 (clerical and management)
Travel
Step
Performed
(Y/N)
Reviewer's
Initials
Date
1. Determine that travel expenses are adequately justified by supporting
documentation and were related specifically to a contract requirement
2. Determine if the sample travel expenses reviewed comply with contractual
limitations, the contractor's policies, and the Government Travel Regulations
(GTR)
-------
Checklist for Voucher/Invoice Validation Review
Contractor Name: Contract Number:
Report Preparation
Step
Performed Reviewer's
(Y/N) Initials
Date
1. Summarize the results of the review.
2. Discuss results with the Contracting Officer, Chief of the Financial
Analysis Section, and FACO (when applicable) for assurance of a thorough
understanding of the issues.
3. Disclose financial and contracting issues that need interpretation or
clarifications.
4. Prepare file notes for identification of problem areas to be included in
future and follow-up reviews.
5. Prepare draft report and obtain necessary approval for the draft.
6. Prepare and issue the final report.
Documentation
Step
Performed
(Y/N)
Reviewer's
Initials
Date
1. Complete the review checklist.
2. Package the report, checklist, correspondence, and workpapers into a file
to be maintained as part of the contract file.
-------
vvEPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code
4. Telephone Number
2. Data of Requisition
5. Date Item Required
6. Signature of Originator
7. Recommended Procurement Method
Competitive
D Other than full and
open competition
I Sole source small
| purchase
8. Deliver To (Project Officer)
9. Address
10. Mail Code
11. Telephone Number
12. Suggested Source (Name, Address, ZIP Code, Phone/Contact!
13. Amount of money committed is:
[ | Increase i Decrease
Q Original Q Cancellation
14. For Small Purchases Only: Contracting Office is
authorized to exceed the amount shown in Block 26
by 10% or $100, whichever is less.
No
15. Approval*
a. Branch/Office
Date
a. Branch/Office
Date
b. Division/Office
Date
b. Division/Office
Date
c Funds listed in Block 26 and Block 14 (if any) are available and reserved. {Signature and phone number of Certifying Official)
Phone
Date
16. Date of Order
17. Order Number
18. Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date)
22. Person Taking Order/Quote and Phone Number
23 Contractor (Name, address, ZIP Code!
24. Type of Order
a. Purchase
D
Reference your quote /Sw block 22)
Rease furnish the above on the terms spectfiod on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
n
b. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract. tSeo Block 19)
D
Oral
Written
Confirming
25. Schedule
Item
Number lal
Supplies or Services
IbJ
Quantity
Ordered Icl
Unit
Id)
Estimated
Unit Price lei
Unit
Price (fl
Amount
IflJ
Quantity
Accented Iht
Total
26. Financial and Accounting Data
DCN
fj (Max ei
Appropriation Cod* Budget Org/Code
(Max 8) (Max 71
Program Element
(Max 9)
Oblect Claaa
(Max 41
Amount (Dollars) (Cent*)
Site/Project
(Mix 8)
Coat Org/Code
(Max 71
27. United States of America By ISignaturel
28. Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper versions acceptable.
Previous editions are obsolete.
COPY 1 - PROCUREMENT FILE / CONTRACTING OFFICER
-------
4*t ^>f%Jk United States
^H^t-HrX Environmental Protection Agency
^^ * * Washington, DC 20460
PURCHASE ORDER
Submit the Original of the Invoice to:
Mark All Packages and Papers with
1 6. Date of Order 1 7. Orde
20. FOB Point
Ship To:
i Contract and / or Order
r Number 1 8. Contract Number (if any) 19.
21 . Delivery to FOB Point by ON or before (Date) 22. Person Taking C
23. Contractor (Name, address. ZIP Code/ 24. Type of Order Reference
a. Purchase
Numbers
Discount Terms
)rd or/Quo to and Phone Number
your quote (See block 22}
Please furnish the above on the terms specified on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
Db. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract. /See Block 131
Item Su|
Number (a)
Q Oral Q Written
25. Schedule
>plies or Services Quantity Unit Estimated Unit
(b) Ordered (c) Id) Unit Price (el Price (f)
Total $
26. Financial and Accounting Data
Confirming
Amount Quantity
(a) Accepted (hi
SFO 1 1
(Max 2) 1 |
JDCN Budget/ Appropriation Code Budget Org/Code Program Bement Object Class Amount (Dollars) (Cents) Site/Protect Cost Org/Code
(Ma* 61 FYa (Max 8) (Max 71 (Ma* » (Ma* 4) (Ma* 8) (Ma* 7)
1
2
3
4
5
27. United States of America By (Sigt
mature! 28. Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper versions acceptable.
Previous editions are obsolete.
COPY 2 - CONTRACTOR
-------
x-xEPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code
4. Telephone Number
2. Date of Requisition
5. Date Item Required
6. Signature of Originator
7. Recommended Procurement Method
I I Competitive
n Other than fu.ll and
open competition
[ Sole source small
[ purchase
8. Deliver To (Project Officer)
9 Address
10. Mail Code
11. Telephone Number
1 2. Suggested Source (Name, Address, ZIP Code, Phone/Contact)
1 3. Amount of money committed is:
| | Increase | | Decrease
Q Original Q Cancellation
14. For Small Purchases Only: Contracting Office i
authorized to exceed the amount shown in Block 26
by 10% or $10O, whichever is less.
No
15. Approvals
a. Branch/Office
Date
a. Branch/Office
Date
b. Division/Office
Date
b. Division/Office
Date
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved. /Signature and phone number of Certifying Official)
Phone
Date
16. Date of Order
17. Order Number
18. Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date)
22. Person Taking Order/Quote and Phone Number
23. Contractor (Name, address, ZIP Code/
24. Type of Order
a. Purchase
Reference your quote j'.Sw block 221
Please furnish the above on the terms specified on both tides of this order and on the
attached sheets, if any, including delivery as indicated.
D
b. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract. fS*e Stock 19)
Written
Confirming
25. Schedule
Hem
Number (al
Supplies or Services
(b)
Quantity
Ordered lei
Unit
(dl
Estimated
Unit Price lei
Unit
Price If)
Amount
la I
Quantity
Accepted (h)
Total *
26. Financial and Accounting Data
SFO
(Max 21
• DCN
3 (M«x 61
Budget/ Appropriation Code Budget Org/Codt Program Bament Object Clasa Amount (Dollars} (Cental Site/Project
FYa (Max 61 (Max 71 (Max 9) (Max 41 (Max 81
Cost Org/Code
(Max 71
7. United States of Amenca By (Signature)
28. Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper versions acceptable.
Previous editions are obsolete.
COPY 3 - FINANCE (OBLIGATION COPY)
-------
f^ ff^ft United States
tfvU^X Environmental Protection Agency
~^ *>~l * m Washington, DC 20460
Note: If desired, this order (or a copy thereof) may be used by the Contractor as the Contractor's invoice, instead of a
separate invoice, provided the following statement (signed and dated) is on (or attached to) the order: "Payment is
requested in the amount of $ .No further invoice will be submitted. "However, if the Contractor wishes to
submit an invoice, the following information must be provided: contract number (if any), order number, item
number(s), description of supplies or services, sizes, quantities, unit prices, and extended totals. Prepaid shipping
costs will be indicated as a separate item on the invoice. Where shipping costs exceed $10 (except for parcel post),
the billing must be supported by a bill of lading or receipt. When several orders are invoiced to an ordering activity
during the same billing, consolidated periodic billings are encouraged.
RECEIVING REPORT
Quantity in the "Quantity Accepted" column on the face of this order has been: Q inspected, Q accepted, Q received by me
and oonformi to contract. Items listed below have been rejected for the reasons indicated.
SHIPMENT PARTIAL DATE RECEIVED SIGNATURE OF A
NUMBER F|NAL
TOTAL CONTAINERS GROSS WEIGHT RECEIVED AT TITLE
UTHORIZED US GOVERNMENT REP. DATE
REPORT OF REJECTIONS
ITEM NO, SUPPLIES OR SERVICES UNIT REJECT'
™ REASON FOR REJECTION
EPA Form 1900-8 (Rev. 6-96) Electronic and paper verslont acceptable.
Previous editions are obsolete.
-------
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1 . Name of Originator
3. Mail Code
4. Telephone Number
2. Date of Requisition
5 Date Item Required
6. Signature of Originator
7. Recommended Procurement Method
rnmnittitiuA I I Other than full and I I Sole sour
competitive [ _ | Op6n compe,]tjon | _ | purehase
8. Deliver To (Project Officer)
9. Address
10. Mail Code
1 1 . Telephone Number
1 2. Suggested Source (Name, Address, ZIP Code. Phone/Contact)
1 3. Amount of money committed is:
Increase
Decrease
14. For Small Purchases Only: Contracting Office i
authorized to exceed the amount shown in Block 21
by 10% or $1OO. whichever is less.
| Original [ _ ] Cancellation
Yes
No
15. Approvals
a. Branch/Office
Date
a. Branch/Office
Date
b. Division/Office
Date
b. Division/Office
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved. (Signature and phone number of Certifying Official)
Phone
Date
16. Date of Order
17. Order Number
18 Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date
22. Person Taking Order/Quote and Phone Number
23. Contractor (Name, address. ZIP Codel
24. Type of Order
a. Purchase
Reference your quote ts»s block 22)
Please furnish the above on the terms specified on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
b. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract. (See Block 191
Oral
Written
| Confirming
25. Schedule
Item
Number (a)
Supplies or Services
[bj
Quantity
Ordered (c)
Unit
Id)
Estimated
Unit Price (el
Unit
Price (f)
Amount
(a)
Quantity
Accented (h)
Total $
26. Financial and Accounting Data
• DCN Budget/ Appropnation Code Budget Org/Code Program Banunt Object Claea Amount (DoU.nl (Centt) Site/Project
j (Max 61 FYl (Max 8) (Max 7) (Max 91 (Max 4) (Max 8)
Coat Org/Coda
(Max 71
7. United States of America By (Signature!
28. Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper versions acceptable.
Previous editions are obsolete.
COPY 5 - RECEIVING
-------
v>EPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code
4. Telephone Number
2. Date of Requisition
5. Date Item Required
6 Signature of Originator
7. Recommended Procurement Method
Competitive
Other than fnH end
open competition
I Sole source small
I purchase
8 Deliver To (Project Officer)
9. Address
10. Mlil Code
11 Telephone Number
1 2. Suggested Source (Name, Address, ZIP Code, Phone/Contact)
13. Amount of money committed is:
Increase
Original
Decrease
Cancellation
14. For Small Purchases Only: Contracting Office is
authorized to exceed the amount shown in Block 26
by 10% or *10O, whichever is less.
Yes
[J No
15. Approvals
a. Branch/Office
Date
a. Branch/Office
b. Division/Office
Date
b. Division/Office
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved (Signature mnd phone number of Certifying Offidelt
Phone
Date
16. Date of Order
17. Order Number
18. Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date)
22. Person Taking Order/Quote and Phone Number
23 Contractor (Name, address, ZIP Codet
24 Type of Order
a. Purchase
Reference your quote ts«e block 221
Please furnish the above on the terme specified on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
D
b. Delivery provtwon* on the reverie are deleted. The delivery order it subject
to the terms and condition* of the contract. fSttt flock 19)
D*"
Written
Confirming
25. Schedule
Item
Number (a)
Supplies or Services
(b)
Quantity
Ordered (cl
Unit
Idl
Estimated
Unit Price lei
Unit
Price (fl
to)
Quantity
Accepted (hi
Total *
26. Financial and Accounting Data
DON Budget/ Appropriation Code Budget Org/Cod. Pn>gm< Bvmttt 0*j~t Cl~. Ammnt
3 (Mix 61 FY. (Mix 6) (Mix 7) (Max 81 (Mw 41
IDllml (CoiW
(fttatSI
COM Orj/Cod.
*U«7>
27. United States of America By /Signature/
28. Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper versions acceptable.
Previous editions are obsolete.
COPY 6 - PROPERTY MANAGEMENT OFFICE
-------
vvEPA
6. Signature of Originator
8. De iver To (Project Officer)
1 2. Suggested Source (Name, Address, ZIP Code,
a. Branch/Office
b. Division/Office
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1 Name of Originator 2. Date of Requisition
3. Mail Code 4. Telephone Number 5. Date Item Required
7. Recommended Procurement Method
nrv,mr,,>ritiu. 1 1 Other than fu.ll and 1 1 Sole. source small
ix>mpeiiuve> | | open competition [_ I purchase
9. Address 10. Mail Code 1 1 . Telephone Number
Phone/Contact) 13. Amount of money committed s: 14. For Small Purchases Only: Contracting Office is
authorized to exceed the amount shown in Block 26
Q Increase Q Decrease * ' 0* or .1 00. whichever is to...
Dl — 1 1 | Yes 1 1 No
Original [ j Cancellation ' — ' ' — '
15. Approvals
Date a. Branch/Office C
Date b. Division/Office C
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved (Signature and phone number of Certifying Official) Phone C
1 6. Date of Order
17. Order Number
20. FOB Point
23. Contractor Warns, address. ZIP Code)
18. Contract Number (if any) 19. Discount Terms
)ata
)ate
>ate
21 . Delivery to FOB Point by ON or before (Date) 22. Person Taking Order/Quote and Phone Number
24 Type of Order Reference your quote ISee 6toc* 221
a. Purchase
Please furnish the above on the terms specified on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
Db. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract. ISt* Block 131
| Oral 1 Written | Confirming
Item
Number (a)
25. Schedule
Supplies or Services Quantity Unit Estimated Unit Amount
Ib) Ordered (c) Id) Unit Price (el Price If) la)
Total $
26. Financial and Accounting Data
Quantity
Accented (h)
SFO 1 1
(Max 2) 1 |
£ DCN Budget/ Appropriation Code Budget Org/Coda Program Element Ob|ect Class Amount (Dollars) (Centsi Site/Project Cost Org/Code
3 (Max 81 FYs (Max 61 (Max 7) (Max 8) (Max 41 (Max 8) (Max 7)
1
2
3
4
5
27. United States of America By {Signature!
26 Typed Name and Phone of Contracting Officer Phone
EPA Form 1900-8 (Rev. 5-95) Electronic end paper versions acceptable.
Previous editions are obsolete.
COPY 7 - VENDOR FILE
-------
vvEPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code
4. Telephone Number
2. Date of Requisition
5. Date Item Required
6. Signature of Originator
7. Recommended Procurement Method
Drnmn«titiuA I I Other than fgll and
Competitive [ [ open competition
I | Sole, source small
| purchase
8. Deliver To (Project Officer)
9. Address
10. Mail Code
11. Telephone Number
12. Suggested Source (Name, Address, ZIP Code, Phone/Contact)
13. Amount of money committed is:
| [ Increase [ Decrease
| | Original | | Cancellation
14. For Small Purchases Only: Contracting Office is
authorized to exceed the amount shown in Block 26
by 10% or »100, whichever is less.
Yes
No
15. Approvals
a. Branch/Office
Date
a. Branch/Office
Date
b. Division/Office
b. Division/Office
Data
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved. (Signature and phone number of Certifying Official)
Phone
Data
16. Date of Order
17. Order Number
18. Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date)
22. Person Taking Order/Quote and Phone Number
23. Contractor (Name, address. ZIP Code!
24. Type of Order
I I a. Purchase
Reference your quote fSe* block 221
Please furnish the above on the terms specified on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
D
b. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract, ISM Block I si
Oral
| | Written
| | Confirming
25. Schedule
Item
Number (al
Supplies or Services
(b)
Quantity
Ordered Icl
Unit
Id)
Estimated
Unit Price (el
Unit
Price HI
Amount
la)
Quantity
Accepted (hi
Total 4
26. Financial and Accounting Data
SFO
(Max 2)
DCN Budget/ Appropriation Code Budget Org/Code Program Element Object ClaM Amount (Dollars 1 (Cents)
(Max 61 FY. (Max 6) (Max 7) (Max 91 (Max 41
Site/Project
(Max 81
Coit Org/Code
(Max 71
27. United States of America By (Signature)
28 Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper versions acceptable.
Previous editions are obsolete.
COPY 8 - FINANCE (COMMITMENT COPY)
-------
vvEPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code
4. Telephone Number
2. Date of Requisition
5. Date Kern Required
6. Signature of Originator
7. Recommended Procurement Method
Dcomoetitive I I Other than full, and
urnipeiruve | | open competition
I I Sole.source small
| purchase
8. Deliver To (Project Officer)
9. Address
10. Mail Code
11. Telephone Number
12. Suggested Source (Name, Address, ZIP Code, Phone/Contact)
13. Amount of money committed is:
I I Increase J | Decrease
Q Original Q Cancellation
14. For Small Purchases Only: Contracting Office is
authorized to exceed the amount shown in Block 26
by 10% or $100. whichever is less.
Yes
QNO
1C. Approval*
a. Branch/Office
Date
a. Branch/Office
Date
b. Division/Office
Data
b. Division/Office
Date
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved. ISigntture tnd phone number of Certifying Official!
Phone
Data
16. Date of Order
17. Order Number
18. Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date)
22. Person Taking Order/Quote and Phone Number
23. Contractor (Ntrne. mddremt, ZIP Cm/a/
24. Type of Order
| | a. Purchase
Reference your quote fS*« ofoc* 22)
Please furnish the above on the terms specified on both sides of this order and on the
attached sheets. If any. Including delivery as indicated.
D
b. Delivery provision* on tha reverse are deleted. The delivery order is subject
to tha terms and conditions of the contract. &M Stock tat
D
Oral
Written
Confirming
25. Schedule
Kern
Number la)
Supplies or Services
(bl
Quantity
Ordered (c)
Unit
Idl
Estimated
Unit Price (el
Unit
Price Ifl
Amount
In I
Quantity
Accepted Ih)
Total
26. Financial and Accounting Data
SFO
(Max 2)
ludoit/
FY.
Appropriation Cod* Budgtt Org/Cod>
(KU«ei (Ntat 71
Program B«MM
Objoct CtaM
|
*!t*/Pro)*ct
Con Or»/Cod.
(Max 7)
27. United States of America By ISignfturel
28. Typed Name and Phone of Contracting Officer
Phone
EPA Form 1900-8 (Rev. 5-95) Electronic and paper version* acceptable.
Previous edition* are obsolete.
COPY 9 - COMMITMENT CLERK (COMMITMENT COPY)
-------
vvEPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code
4. Telephone Number
2. Date of Requisition
5. Date Item Required
6. Signature of Originator
7. Recommended Procurement Method
nrv>mnj»ti«iu» I I Other than fu.ll and I I Sole.source small
Competitive I I open competition I I purchase
8. Deliver To (Project Officer)
9. Address
10. Mail Code
11. Telephone Number
12. Suggested Source (Name. Address, ZIP Code. Phone/Contact)
13. Amount of money committed is:
Q^| Increase |^~| Decrease
Q Original Q Cancellation
14. For Small Purchases Only: Contracting Office is
authorized to exceed the amount shown in Block 26
by 10% or »100. whichever is less.
15. Approval*
a. Branch/Office
Date
a. Branch/Office
Data
j. Division/Office
Date
b. Division/Office
Date
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved. (Signature and phone number of Certifying Official!
Phone
Date
16. Date of Order
17. Order Number
18. Contract Number (if any)
19. Discount Terms
20. FOB Point
21. Delivery to FOB Point by ON or before (Date)
22. Person Taking Order/Quote and Phone Number
23. Contractor (Name, address. ZIP Code)
24. Type of Order
a. Purchase
D
Reference your quote ts»9 block 221
Please furnish the above on the terms specified on both sides of this order and on the
attached sheets, if any, including delivery as indicated.
b. Delivery provisions on the reverse are deleted. The delivery order is subject
to the terms and conditions of the contract. IS~ Block 131
Oral
Confirming
25. Schedule
Item
Number (al
Supplies or Services
l&J
Quantity
< Icl
Unit
Idl
Estimated
Unit Price le)
Unit
Price (fl
Quantity
Accepted (hi
Total $
26. Financial and Accounting Data
SFO
(Max 2) | |
• DCN Budgtt/ Appropriation Coda Budgat Org/Coda Program B«m«nt Obj«ct Claat Amount (DoUaral (C«ra>
3 (Max 61 FYa (MaxC) (Max 71 (Max 91
-------
United States
^>ERrV Environmental Protection Agency
Washington, DC 20460
NOMINATION AND APPOINTMENT OF THE CONTRACTING OFFICER'S REPRESENTATIVE
1 a. Name of Nominee
c. Mailing Address (include mail code)
2. The nomination is for 3- Tr
I | Project Officer
a.
| | Deputy Project Officer
| | Regional Project Officer
b.
[ | Zone Project Officer
| I Delivery Order Project Officer c-
| I Work Assignment Manager
[~~] Alternate
[~~] Other
b. Title, Series, and Grade
(COR)
d. Telephone
lining completed
Date Completed
Acquisition Training for Project Officers
(Formerly The Basic Project Officers Course)
(All Project Officers must complete.)
Contract Administration course
(All CORs must complete.)
decertification Course
[All CORs must complete every three years.)
4. Briefly describe tha nominee's contract management axparianoa and nominaa'a technical expertise in the subject mattar of tha contract.
5. Tha nomination i> for contract number
6. I understand that COR duties are not redalgabla. In the event that I am unable to continue performing my COR duties, I will contact the
Contracting Officer immediately.
Signature of Nominee
Date
7. 1 certify that
a. The nominee's contract management duties will be incorporated in his/her position description and performance standards.
b. Tha nominee's Standard Form 450, Confldantial Financial Disclosure Report, will be filed with the cognizant Deputy Ethics Official.
c. The nominee's contract management workload will stay within his/her ability to perform satisfactorily.
d. If the nominee performs his/her contract management functions unsatisfactorily, 1 will notify the Contracting Officer immediately.
Signature of Nominating Official
Name/Title {Print or type)
Date
Telephone
Signature of Nominating Official (Contracting Officer!
Date
EPA Form 1900-65A (Rev. 5-95) Electronic and Paper versions acceptable.
Previous editions are obsolete.
Whit. Copy • Official Contract Fil« Copy Yellow Copy - Originator's Copy
Pink Copy - Originator'a Suapana« Copy
-------
EPA WORK ASSIGNMENT FORM (WAF) FOR RAC
1. WORK ASSIGNMENT (WA) INFORMATION
Project Name
Activity
Date
Contractor
WA No
EPA Contract No
Revision No
Contractor Control No
Modification No
(Contracting Officer Use Only)
2. DESCRIPTION OF ACTION
New WA
(need WP for the WA)
Attach SOW
including schedule
. Designate WAM
WA Amendment
(need revised WP and/or
cost estimate)
Change in LOE or scope
by task
Add additional tasks or
funds for increased
activity
Partial WP Approval
WP Disapproval
Final WP Approval
Amendment to Final
WP Approval
Approve change in LOE,
scope, or budget
Approve additional tasks
Technical Direction
Memorandum
Details on scope, budget, or
schedule
Minor shift within SOW
(no change in S/LOE)
Change WAM
Set or revise expenditure
limit (EL)
Incremental Funding
Fund approved WP
WA Closeout Notification
Notify contractor to initiate
WA closeout task
Revise EL after final invoice
Other
3. BUDGET INFORMATION
Completion WA Term WA
Total Funding Received ($)
Previous Total
This Action
New Total
Funding Category:
Activity Code:
S/SID
Approved Work Plan Budget
LOE
Term WAs Only
($)*
'• Includes fees
Expenditure Limits Not to Be Exceeded
LOE ($)*
Term WAs only
: Includes fees
4. WA COMPLETION DATE
Current
Revised
5. EPA COMMENTS:
6. APPROVALS
Contractor Signatures
Site Manager/Firm
Date
Program Manager/Firm
Date
EPA Signatures
Work Assignment Manager
Date
Project Officer
Date
Approved As
Submitted
Approved With
Changes
Not
Approved
Signature of Contracting Officer
Date
-------
1. SITE NAME: 2. WA NO.: 3. STATE:
RAC Performance Evaluation Form
4. Check one: SUMMARY EVALUATION REPORT (SER) PERFORMANCE EVALUATION REPORT (PER)
5. CONTRACTOR: 5. CONTRACT NUMBER:
7. CONTRACTOR REGIONAL MANAGER: PHONE:
8. PROJECT OFFICER (PO): PHONE:
9. CONTRACTING OFFICER (CO): PHONE:
10. WORK ASSIGNMENT MANAGER (WAM): PHONE:
11. PERFORMANCE PERIOD FROM: TO:
12. WA FORM (Check one) _ TERM _ COMPLETION
13. WA TITLE:
PERFORMANCE EVALUATION CATEGORY
14. Check one: _ SITE-SPECIFIC WA EVALUATION _ PROGRAM SUPPORT (PS) WA EVALUATION
CONTRACTOR PERFORMANCE EVALUATION
15. Check one:
EVALUATION PREPARED BY: _ WAM _ CO _ PO
16. OVERALL PERFORMANCE RATING (Check one):
_ UNSATISFACTORY (1) _ SATISFACTORY (2) _ EXCEEDED EXPECTATIONS (3) _ OUTSTANDING (4)
17. DESCRIPTION OF ACTIVITIES:
18. OVERALL PERFORMANCE EVALUATION:
19. STRENGTHS/WEAKNESSES/NEEDED IMPROVEMENTS:
20. EVALUATOR SIGNATURE: DATE:
-------
EVALUATION CRITERIA SCORE SHEET
21. PROJECT PLANNING RATING: 1 2 3 4
[organizing (e.g. work plan development, data review); scheduling; budgeting]
22. TECHNICAL COMPETENCE & INNOVATION RATING: 1 2 3 4
[effectiveness of analysis; meet plan goals; expert testimony; support COE/State/enforcement; adhere to regs and
procedures]
23. SCHEDULE & COST CONTROL RATING: 1 2 3 4
[budget (hours & cost) maintenance; priority schedule adjustments; cost minimization]
24. REPORTING RATING: 1 2 3 4
[timeliness of deliverables; clarity; thoroughness]
25. RESOURCE UTILIZATION RATING: 1 2 3 4
[staffing; subcontracting; equipment; travel, etc.]
26. EFFORT RATING: 1 2 3 4
[responsiveness; mobilization; day-to-day; special situations (e.g. adverse/dangerous conditions)]
27. SMALL AND SDB UTILIZATION RATING: 1 2 3 4
[small and SDB participation, development, and subcontracting goals; Mentor-Protege program]
28. CONTRACTOR PERFORM. EVALUATION PREPARED BY PO RATING: 1
29. PO ASSESSMENT AND CERTIFICATION:
30. PO SIGNATURE: DATE:
-------
REGIONAL EVALUATION SUMMARY (RES)
Contractor:
EPA Project Officer:
Contractor Program Manager:
Contract No.
Performance Evaluation Period
From:
To:
Performance Evaluation Key:
(0-25) Unsatisfactory (26-50) Satisfactory (51-75) Exceeds Expectations (76-100) Outstanding
Site Name
WANo.
Numeric
Rating
(0-100)
Comments
Project Officer Signature
Date
-------
RECORDS TRANSMITTAL AND RECEIPT
i.
TO
{Complete the address for the records center serving
1228. tSO.I
Federal Record* Center
Complete and send original and two copies of this form to the appropriate Federal Records
Center for approval prior to shipment of records. See specific instructions on reverse.
your urea as shown in 36 CFfi
PAGE
1
OF
PAGES
5. FROM lEnter the name and complete mailing address of the office retiring the records, me signeo
receipt of this form will be sent to this address.)
2. AGENCY
TRANSFER
AUTHOR-
IZATION
3. AGENCY
CONTACT
4. RECORDS
CENTER
RECEIPT
TRANSFERRING AGENCY OFFICIAL 1 Signature and Wei
DATE
TRANSFERRING AGENCY LIAISON OFFICIAL /Name, office and telephone No.l
RECORDS RECEIVED BY (Signature and Mel
6.
ACCESSION NUMBER
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NUMBER
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AGENCY
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RECORDS DATA
SERIES DESCRIPTION
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DISPOSAL AUTHORITY
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Standard horm ]3b (Kev. /-BS ttiij
Prescribed by NARA
36CFR 1228.152
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FOR COMPLETION BY THE TRANSFERRING AGENCY
INSTRUCTIONS FOR COMPLETION OF STANDARD FORM 135
Code
Q
T
Items 1, 2, 3 and 5 are self-explanatory. Specific instructions for item 6 are as
follows:
Col.
Accession Number. A separate accession number is required for each
series of records listed on the form. A series consists of records having
the same disposal authority and disposal date that are transferred together
to the records center. The accession number is entered in three parts,
consisting of:
(a) The NARA record group number assigned to the records of the agency
making the transfer;
(b) The last two digits of the current fiscal year; and
(c) A four digit number obtained in advance from the records center.
(Arrangements may be made with the center to have these numbers
assigned by the agency records officer or other official.)
(d) Volume. Enter the volume in cubic feet of each series of records being
transferred.
(e) Agency Box Numbers. Show the inclusive box numbers for each series of
records being transferred. The agency shall number each carton
sequentially as follows: 1 of 25, 2 of 25, 3 of 25, etc. (Each new series of
records should begin with carton number 1.) To facilitate control of the
records and future reference service, the agency also shall mark each
container with the assigned accession number prior to shipment.
(f) Series Description. Describe the records in sufficient detail to allow the
records center to check for proper application of the disposal schedule.
Inclusive dates of the records should be indicated. Show the
organizational component that created the records when it is other than
that shown in item 5.
(g) Restriction. Enter one of the following codes to show a restriction on use
of the records. Restrictions other than (or in addition to) security
classifications, such as limiting access to certain agency officials, are to be
specified by a statement in the Series Description column (f).
Rtstricttons
Q security classification
Top Secret security classification
S Secret security classification
C Confidential security classification
R Restricted use - witnessed disposal not required
(specify in column (0)
W Restricted use - witnessed disposal required
(specify in column (f))
N No restrictions
(h) Disposal Authority. For each series of records, cite the agency schedule
and specific item number authorizing disposal. Cite the NARA disposal
job and item number if it has not been incorporated into an updated
agency schedule.
(i) Disposal Date. Applying the disposal authority previously cited in
column (h), enter the month and year in which the records may be
destroyed.
FOR COMPLETION BY THE RECORDS CENTER
Item 4 is self-explanatory. Specific instructions for item 6 are as follows:
Col.
(I) Location. The records center annotates the shelf location of the first
carton for each series of records.
(k) Shelving Plan. The records center enters the appropriate code from Chap.
7-ljOe. HB, Records Center Operations (NAR P 1864.1 A), to reflect the
shelving system.
(I) Container Type. The records center enters the appropriate code from
Chap. 7-10h, NAR P 1864.1 A, to reflect the type of container in which
the records are retired.
(m) Automatic Disposal. The records center enters either Y (yes) to indicate
automatic disposal applies or N (no) indicating that the agency wishes to
receive disposal concurrence notice prior to destruction of the records.
Automatic disposal is applied only when previously agreed upon by the
agency.
Use Standard Form 135-A, Records Transmittal and Receipt Continuation, when
additional space is required for listing records data.
Standard Form 135 Back (Rev. 7-85)
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RECORDS
TRANSMITTAL
AND RECEIPT
(Continuation)
ACCESSION NUMBER
RG
FY
NUMBER
VOLUME
Icu.fr.l
Thb form h to continue ll«ting of Record* Data
when space on SF 135 le not adequate.
Inetructione for completion of SF 135 apply.
AGENCY
BOX
NUMBERS
TRANSFERRING AGENCVS NAME
SEMES DESCRIPTION
With fee/koto dmtttof nconltl
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DISPOSAL AUTHORITY
ISchfdatt •nd
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DATE
DATE
HI
PAGE OF
PAGES
COMPUTED BY RECORDS CENTER
LOCATION
HI
Standard Form 1 35-A i
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Previous edKion usable
Pretcribed by NARA
3«CF« 1228.152
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Contractor Name
Contract Number
Fiscal Year Ending XX
Summary of Costs Claimed for FYE XX
Cost Elements
Direct Labor
Fringe
Overhead
ODCs
Travel
Materials
Equipment
Subtotal
G&A
Total Costs Claimed
for FYE XX
Program Mgt, Claimed
for FYE XX
Remedial Claimed for
FYE XX
Subcontract Pool
Costs (Attachment)
Subcontract Costs
Team Sub A
Team Sub B
G&A on Subcontracts
Total Costs
Base Fee
Award Fee
Total Claimed
Less Total
Billed (See
Attachment
1E)
Variance
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Summary of Costs Claimed for FYE XX by Work Assignment
Contractor Name
Contract Number
Fiscal Year Ending XX
Cost Elements
Direct Labor
Fringe
Overhead
ODCs
Travel
Materials
Equipment
Subtotal
G&A
Work
Assignment
#1
Work
Assignment
#2
Total
All Work
Assignments
Subcontract Pool
Costs (Attachment)
Subcontract Costs
Team Sub A
Team Sub B
G&A on Subcontracts
Total Costs
Base Fee
Award Fee
Total Claimed
Less Total
Billed (See
Attachment
1E)
Variance
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1. SITE NAME: 2. WA NO.: 3. STATE:
WORK ASSIGNMENT COMPLETION REPORT (WACR)
4. CONTRACTOR: 5. CONTRACT NUMBER:
6. CONTRACTOR REGIONAL MANAGER: PHONE:
7. WORK ASSIGNMENT MANAGER (WAM): PHONE:
8. PROJECT OFFICER (PO): PHONE:
9. CONTRACTING OFFICER (CO): PHONE:
10. PERFORMANCE PERIOD FROM: TO:
11. WA FORM (Check one) _ TERM _ COMPLETION
PERFORMANCE EVALUATION CATEGORY
12. Check one: _ SITE-SPECIFIC (SS) WA EVALUATION _ PROGRAM SUPPORT (PS) WA EVALUATION
CONTRACTOR PERFORMANCE EVALUATION
13. Check one: EVALUATION PREPARED BY: _ WAM _ PO _ CO
14. OVERALL PERFORMANCE RATING (Check one):
_ UNSATISFACTORY (1) _ SATISFACTORY (2) _ EXCEEDS EXPECTATIONS (3) _ OUTSTANDING (4)
15. WA TITLE AND BRIEF DESCRIPTION OF SCOPE OF WORK:
16. OVERALL PERFORMANCE EVALUATION:
17. UNUSUAL PROBLEMS/OCCURRENCES AFFECTING CONTRACTOR PERFORMANCE:
18. BASE FEE AVAILABLE: BASE FEE PAID:
19. PERFORMANCE (AWARD) FEE AVAILABLE:
PERFORMANCE (AWARD) FEE RECOMMENDED? YES NO RECOMMENDED SIZE: % (60% to 100%)
20. SPECIFIC REASONS FOR RECOMMENDATION FOR PERFORMANCE (AWARD) FEE:
(Additional pages may be attached if necessary)
21. EVALUATOR SIGNATURE: DATE:
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EVALUATION CRITERIA SCORE SHEET
22. PROJECT PLANNING RATING: 1234
. Ability to set schedules and priorities for the accomplishment of all work under the WA
. Regular and effective communication with Agency personnel
. Compliance with contract and WA requirements
. Development of work plan
. Adequacy of HASP and QAMP (PS only)
23. TECHNICAL COMPETENCE & INNOVATION RATING: 1234
. Technical quality of deliverables
. Effectiveness and thoroughness of analyses
. Ability to met work plan goals and objectives
. Creativity and ingenuity in approach
. Ability to support other organizations involved at site
. Adherence to regulations, procedures, and guidelines
24. SCHEDULE & COST CONTROL RATING: 1234
. Development and maintenance of planned schedules and budgets for deliverables
. Ability to minimize and control the cost
. Elimination of duplication of effort
. Quality and timeliness of deliverables
. Timeliness and reasonableness of monthly reports and invoices (PS only)
25. RESOURCE UTILIZATION RATING: 1234
. Effective use of resources
. Suitability of staffing, recruiting, and training of personnel (PS only)
. Appropriateness of professional mix to ensure quality of work while minimizing cost and time expenditures (SS only)
. Ability to effectively manage subcontractors' costs and resources and eliminate cost duplication by subcontractors
. Ability to assure contract compliance by subcontractor
. Adherence to subcontracting plan
. Ability to effectively monitor subcontractor performance
26. REPORTING RATING: 1234
. Timeliness of deliverables
. Clarity and thoroughness of reports and documents
. Accuracy and completeness of data
27. EFFORT RATING: 1234
. Ability to identify and resolve problems
. Maintenance of regular communication link with Agency personnel and provision of information enabling Agency
personnel to keep abreast of progress
. Thoroughness in dealing with all aspects of the project/program
28. SMALL AND SDB UTILIZATION RATING: 1234
. Actions taken to increase participation of small businesses and SDBs
. Actions taken to promote mutual beneficial relationships with small businesses and SDBs
. Actions taken to develop technical and corporate administrative expertise of small businesses and SDBs
. Actions taken to aid in the achievement of socioeconomic goal(s) for small businesses and SDBs in the Superfund
program
. Extent of firm's participation in the Mentor-Protege Program
. Extent protege(s) met development objectives in agreements
. Extent firm satisfied its small business and SDB subcontracting goals
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EVALUATION CRITERIA SHEET
SITE NAME:
(TO BE FILLED OUT BY PROJECT OFFICER ONLY)
WA NO.:
CONTRACTOR:
WORK ASSIGNMENT COMPLETION REPORT (WACR)
29. PROJECT SCHEDULE AND COST INFORMATION
REVISED FINAL LOE:
REVISED FINAL COST:
COMMENT:
APPROVED vs.
EXPENDED
30. CONTRACTOR PERFORM. EVALUATION PREPARED BY PO RATING: 1
AWARD FEE RECOMMENDED? YES NO RECOMMENDED SIZE:
31. PO ASSESSMENT AND CERTIFICATION:
234
%(60%TO 100%)
32. PO SIGNATURE:
DATE:
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1. SITE NAME: 2. WA NO.: 3. STATE:
WORK ASSIGNMENT COMPLETION REPORT (WACR)
4. CONTRACTOR: 5. CONTRACT NUMBER:
6. CONTRACTOR REGIONAL MANAGER: PHONE:
7. WORK ASSIGNMENT MANAGER (WAM): PHONE:
8. PROJECT OFFICER (PO): PHONE:
9. CONTRACTING OFFICER (CO): PHONE:
10. PERFORMANCE PERIOD FROM: TO:
11. WA FORM (Check one) _ TERM _ COMPLETION
PERFORMANCE EVALUATION CATEGORY
12. Check one: _ SITE-SPECIFIC (SS) WA EVALUATION _ PROGRAM SUPPORT (PS) WA EVALUATION
CONTRACTOR PERFORMANCE EVALUATION
13. OVERALL PERFORMANCE RATING (Check one):
_ UNSATISFACTORY (1) _ SATISFACTORY (2) _ EXCEEDED EXPECTATIONS (3) _ OUTSTANDING (4)
14. WA TITLE AND BRIEF DESCRIPTION OF SCOPE OF WORK:
15. OVERALL PERFORMANCE EVALUATION:
16. UNUSUAL PROBLEMS/OCCURRENCES AFFECTING CONTRACTOR PERFORMANCE:
17. BASE FEE AVAILABLE: BASE FEE PAID:
18. PERFORMANCE (AWARD) FEE AVAILABLE:
PERFORMANCE (AWARD) FEE RECOMMENDED? YES NO RECOMMENDED SIZE: % (60% to 100%)
19. SPECIFIC REASONS FOR RECOMMENDATION FOR PERFORMANCE (AWARD) FEE:
(Additional pages may be attached if necessary)
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EVALUATION CRITERIA SCORE SHEf T
20. PftOJECJ PLANNINq RATWG: 1234
. Ability to sat schedules And priorities for the- accomplishment of a* work under the WA
. Regular and effective communication with Agency personnel
. Compliance with contract and WA requirements
. Development of work plan
. Adequacy of HASP- and QAMP (PS only)
21. TECHNICAL COMPETENCE »INNOVATION RATING: 1234
. Technical quality of deliverable*
. Effectiveness and thoroughness of analyses
. Ability to met work plan goals and objectives
. Creativity and ingenuity in approach
. Ability to support other organizations involved at site
. Adherence to regulations, procedure*, and guidelines
22. SCHEDULE * COST CpNTROL RATING: 1234
. Development and maintenance of planned schedules and budgets for d*liverables
. Ability to minimize and control the cost
. Elimination of duplication of effort
. Quality and timeliness of deliverable*
. Timeliness and reasonableness of monthly reports and invoice* (PS enly}
23. R|§OURCE UTILIZATION RATING: 1234
. Effective use of resources
. Suitability of staffing, recruiting, and training »f personnel (PS only)
. Appropriateness of professional mix to ensure quality of work whtte minimizing oeat and time expenditures (SS only)
. Ability to effectively manage subcontractors' costs and resources, eliminate oeet duptoation by subcontractors
. Ability to assure contract compliance by subcontractor
. Adherence to subcontracting plan
. Ability to effectively monitor subcontractor performance
24. Up PORTING RATING: 1234
. Timeliness of deliverable*
. Clarity and thoroughness of reports and documents
. Accuracy and completeness of data
2f. EFFORT RATING: 1234
. Ability to identify and receive problems
. Maintenance of regular communication link with Agency personnel end svwMten e* information enabling Agency
personnel to keep abreast of progress
. Thoroughness in dealing with all aspects of the project/program
2t. SMALL AND spp UTILIZATION RATING: 1234
. Actions taken to increaee participation of small busineeeee and SD8«
. Actions taken to promote mutual beneficial retatiensnic)* with amen bueineeeee ami SDA*
. Actions taken to develop technical and corporate edministraliMe expertiee of emaH bueinesses and SDBs
. Actions taken to aid in the achievement of soctoeconomic goatis) for sfnaM businesses and SDBs in the Superfund
program
. Extent of firm's participation in the Mentor-Protege Pro0r»**
. Extent protege(s) met development objectives in agreements
. Extent firm satisfied its small business and SDB subcontracting goals
27. EVALUATOR SIGNATURE: DATE:
-------
Site Name:
Work Assignment Allocation Matrix
Site Number:
Operable Unit:
Activity:
DRA
Est. Cost: $
n RI/FS a RD
a Site Assessment
n Oversight a NTCR
n Community Relations
n Five-year review
a Other
Est. LOE:
Hours
Contractors in PIRS Order
1 Evaluation Factors
1 . Average Twelve-Month
PIRS Rating
2. COI Screen
3. Capacity Availability
4. Site-Specific
Experience/Knowledge
5. Related Experience/
Knowledge
6. Disqualified
7. For Consideration
8. Recommended
9. Rationale
(a)
(b)
(c)
(d)
(e)
(f)
Comments
Prepared by:
Date:
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From:
To:
Work Assignment Manager
Work Plan Evaluation Checklist
Contract Number: RAC
Site Name:
Project Officer
Please check each item if appropriate.
Work Assignment Number:
Work Plan Dated:
Addressing the Statement of Work (SOW)
Contractor Addresses all tasks outlined in the SOW.
Contractor does not include any extraneous work.
Schedule, including critical path and interim and final
milestones and dehverables, is acceptable.
Management structure appears sound and includes appropriate
QA procedures.
Technical approach and methodology for accomplishing each
task appears effective.
Contractor demonstrates a thorough understanding of work
assignment.
' Proposed technical and technician p-levels for each task are
reasonable to accomplish the tasks.
Reasonable clerical/home office support staff proposed.
Appropriate LOE proposed for each p-level.
Reasonable budget developed for each activity.
Enough detail in WP and cost budget for future cost recovery.
Proposed safety and contingency measures are adequate.
Other Direct Costs
Proposed material and equipment appear reasonable.
Proposed computer effort appears appropriate.
Miscellaneous expenses appear reasonable.
Government-furnished property is justified, where appropriate.
Reproduction and postage costs appear appropriate.
Travel and Communication
Number and length of trips, number of travelers, fares, and
duration are recommended.
Consulting and Subcontracting
Reasonable consultant effort proposed.
Laboratory services, other than CLP, are appropriate.
Protocol for WAM-contractor communication identified.
Reasonable subcontracting effort and costs.
Comments:
Recommended for Approval by:
Work Assignment Manager
Date
Concur:
Project Officer
Date
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Response Action Contract
(RAQ Users' Guide
Wumel: Reference Guide
Model Statements
of Work
APPENDIX
MAY 31, 1995
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Appendix G, including the model statements of work diskette, is published separately as document
number PB95-963414.
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