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em
FOREWORD
UK?
C 3.
.!/ EPA has been undergoing a wave of heavy criticism for its
contracts management practices since February of last year. In
response, the Administrator established a Standing Committee on
Contracts Management to develop ways to eliminate practices that
leave EPA vulnerable to such criticisms. In addition, Assistant
Administrators have established several workgroups, task forces
and other groups in each Office working towards improving
contracts management.
The preparation of this document began last spring in
response to a request by Office of Water (OW) Work Assignment
Managers (WAMs) and Project Officers (POs) at OW workgroup
meetings for guidance that focused on the day-to-day activities
and responsibilities of being a WAM. The manual was developed by
six WAMs and POs from OW. It has been reviewed by OW WAMs and
POs, Managers, the Contracts Management Division in Cincinnati
the Procurement Contracts Management Division at Headquarters,
and others. While it is not meant to be the final answer to
every difficult question concerning contracts management, it is
meant to offer some guidance and examples on how to better assure
that your responsibilities as WAMs are being met.
We fully expect this manual to continuously be updated
and/or revised as the Agency and OW change the way we manage and
implement contracts. We do hope, however, that this document can
be used by WAMS with confidence knowing that the manual attempts
to provide a consistent approach to managing OW contracts.
Although the manual is intended to provide as much useful
information as possible, WANs must recognize that this manual is
not intended to. be the final word in contract management
procedures. WAMs should use this manual only as a guide and
should work closely with their POs and other contract
administration officials to ensure proper management of
contracts. Part of the responsibilities of a WAM is to be
responsible for ensuring that the work assignment is administered
by EPA and the contractor not only to meet the needs
substantively, but also to be legally, efficiently, and
economically correct.
I would like to especially thank Lonnie Finkel, Susan
Hancks, Anne Jaffe-Murray, Beth Kimball and Ed Kramer, from the
Office of Ground Water and Drinking Water, and Frances Desselle
and Patti Morris, from the Office of Science and Technology for
all of their time and effort in developing this manual.
We hope you find this manual useful and we welcome any
suggestions you have for improving it. Please send any comments
and/or recommendations£o Steve Wilson, Office of Water, WH-556.
V
irtha G. Prothro, Acting Assistant Administrator
Office of Water
HEADQUARTERS LIBRARY
ENVIRONMENTAL PROTECTION AGENCY
SEP 9 1993 WASHINGTON, D.C. 20460
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Acknowledgment
The Office of Water would Uke to express its appreciation to the Office of
Emergency and Remedial Response and the Office of Solid Waste for developing
excellent Work Assignment Manager training manuals. The Office of Water
used the Office of Solid Waste "Nuts and Bolts" and the Office of Emergency
and Remedial Response "Work Assignment Manager Training Manual" as
models in the development of this manual.
£681
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Purpose of This Manual
This is not just another training manual nor is ft a replacement of the Contract
Administration manual. Instead, this manual is meant to answer those unanswered
questions that many Work Assignment Managers fWAMs) ask themselves - Where
do I go to learn how to process, manage, and close-out a work assignment; Won't
anyone help me? Well, the OW Manual "Staying on Course" is just the life preserver
you need. H's chock full of practical advice and explanations on how to carry out
your day-to-day responsibilities as a WAM.
This manual is divided into five major chapters and at the end of each chapter are
relevant attachments and forms. The five major chapters are:
Chapter I: The Big Picture - provides common sense rules to keep in mind and
lists the roles and responsibilities of all the individuals that are Involved in the
contracting process.
Chanter II: Charting the Course - discusses areas you should consider when
planning the work you want the contractor to perform.
Chapter III: Setting SaS - provides a detailed discussion on who is involved in
writing a Statement of work, including examples on how to prepare an
independent government cost estimate. This chapter also lists guidelines for
reviewing the contractor's work plan.
Chapter IV: At the Helm - discusses the "do's and don 'ts " in managing a work
assignment, including how to communicate with a contractor, what records to
maintain, how to review a financial report, and what to do if the contractor's
performance is unsatisfactory.
Chapter V: Land Ahoy - indicates the steps needed to close-out a work
assignment due to completion, lack of funding, change in program priorities, or
dissatisfaction with contractor performance.
This manual also includes an Appendix which contains acronyms (Appendix A) and
glossary of terms (Appendix B) as well as other needed information that you will find
referenced in the manual.
Happy Sailingl
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DISCLAIMER
in writing this manual, OW has tried to focus on the major activities and responsibilities of Work
Assignment Managers (WAMs) and methods for making a WAM'sjob more understandable and efficient. Some
of the procedures outlined in this book are based on the rules contained in the Federal Acquisition Regulation
(FAR) and the EPA Acquisition Regulation (EPAAR) that govern the way we conduct our contract business,-
others are standardized practices that EPA has adopted to facilitate contract management, but which are not
required by rule.
This book tries to distinguish throughout between the binding rules governing WAAf responsibilities and
activities and those which are EPA standardized practices. OW undertakes to keep this book as current as
possible with frequent updates. However, the WAM must be responsible for ensuring that his or her actions fall
within and meet both the legally binding rules and current EPA practices.
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Table of Contents
Subject
Chapter Page
Acknowledgement i
Purpose of This Manual ii
Disclaimer Hi
Chapter I - The Bie Picture
Introduction ' II
Regulatory and Administrative Requirements I 2
Roles and Responsibilities of Key Personnel I 3
Contract Managers I 3
Program Managers I 6
OWRole ,17
Contractor I 7
Chapter II - Charting the Course
Introduction II 1
lite Basics About Contracts II 1
Statement of Work II 1
Contract Period of Performance II 2
Appropriation II 2
Contract Availability II 2
Type of Contract II 2
Cost Per Hour II 2
Overhead Rates // 3
Developing a Work Assignment II 3
What is the Nature of the Work Assignment II 3
Does Work Assignment Require ADP II 4
Does Work Assignment Require Government Furnished Property II 6
Does Work Assignment Require Information Collection II 6
Is Contractor Required to Handle Confidential Business
. Information II 8
What Constrains Scheduling II 8
What Reports Do You Want II 10
Deh'verables, What and When II 10
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Chapter III - Setting Sail
Writing A Statement of Work
Independent Cost Estimate
Review and Approval of Work Plan
Chapter IV- At The Helm
Introduction
Setting Up A File
Day to Day Communication and Paper Trail
Communication With Subcontractors and Consultants
Communications With Task Managers) and Project Officer
Contractor Communication and Frequency
On-Going Activities
End of Year Activities
I Need to Make Some Changes
Adding Subcontractors and Consultants
What to Do If the Inspector General Drops By
Chapter V - Land Ahov!
The Close-Out Process
Acronyms
Glossary of Terms
EPA Order 1900.1
EPA Order 1900.2
WAM Model Performance Standards
Labor Classifications (P-Levels)
Negotiation & Communication
Confidential Business Information
Exhibit 2-1 Office of Water Contracts
Exhibit 2-2 ADP Form
Exhibit 2-3 Quick Response Task Form
Exhibit 3-1 Work Assignment Package
Exhibit 3-2 OW Work Assignment Resource Estimating
Exhibit 4-1 Phone Log
Exhibit 4-2 Meeting Record
Exhibit 4-3 Work Assignment Status N otification
Exhibit 4-4 WAM DeUverables Report
Exhibit 4-5 Sub-Contractor/Consultant Approval Form
Exhibit 5-1 OW Work Assignment Close-out Request
Exhibit 5-2 Close-out Evaluation of Contractor
III 1
III 7
III 8
IV
IV
IV
IV
IV
TV
IV
IV
IV
IV
TV
1
1
2
4
S
S
7
11
12
12
14
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Appendix G
Appendix H
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CHAPTER I
The Big Picture
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Chapter I
The Big Picture
INTRODUCTION 1
REGULATORY AND ADMINISTRATIVE REQUIREMENTS . . 2
ROLES AND RESPONSIBILITIES OF KEY PERSONNEL 3
Contract Managers: 3
Work Assignment Manager (WAM) 3
Task Manager 4
Project Officer (PO) 5
Contracting Officer (CO) 6
Contracts Specialist (CS) 6
Program Managers: . 6
Section or Branch Chiefs 6
OW Role 7
Senior Procurement Official (SPO) 7
Senior Procurement Official Assistant (SPOA) 7
Contractor 8
Subcontractor/Consultant . . . 9
Figure 1 -1 Rules of the Sea 1
Figure 1-2 Contracts Management Communication Flow 10
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Chapter I
The Big Picture
INTRODUCTION
This chapter is designed to highlight key areas that you should keep in mind as a Work
Assignment Manager (WAM). The first area is what we like to refer to as the "Rules
of the Sea." If you follow these 12 rules, listed in Figure 1, you should avoid getting
yourself into troubled waters.
QIVB and Receive Help
Research Wall Before Beginning m work
Assignment
Specify Dellverables In Work Assignment
Do Not Accept Draft SOW* from Contractor
Do Not CUve Contractors Dollar Figures
Have Frequent Contact with Contractor and Treat
Them as You Would Treat Yourself
Do Not Personally Direct Contractors or Request
Specific Subs or Communicate Dlreetty with Subs
Maintain Complete Records end Flies
Carefully Review Monthly Progress Reports and
Request Additional Information If Needed and
Document Your Findings
Follow Gtovemment/Aaency Ethical Outdance
Be alert for actual or potential Conflicts of Interest
(COI), not only in your actions but alao In the
Contractor's
Ensure that your WA's do not ask Contractors to
perform Inherently Governmental Functions or
personal services.
Chapter 1
January 13,1993
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REGULATORY AND ADMINISTRATIVE REQUIREMENTS
There are two regulations that dictate whatever we do as WAMS. These are:
o Federal Acquisition Regulation (FAR) - Title 48 CFR Chapter 1: Governs all
executive Agencies in their acquisition of supplies and services with
appropriated funds.
o Environmental Protection Agency Acquisition Regulation (EPARR) - Title 48
CFR Chapter 15: Implements and supplements the FAR for EPA.
EPA recently issued two orders that provide guidance on use of contractors:
o EPA Order 1900.1 - Use of Contractor Services: Provides information to EPA
employees on avoiding personal services arrangements in their contract
activities and provides principles for managing a contract.
o EPA Order 19OO.2 - Contracting at EPA: Establishes Agency policy that
prohibits contracting for certain activities at EPA and implements special
management and control measures when contracting for certain sensitive
services.
A copy of the FAR and EPAAR may be viewed in the Senior Procurement Official
Assistant's office. EPA Orders 1900.1 and 1900.2 are contained as Appendix C and
D of this manual.
You also need to be aware of the following requirements for all WAMs:
o Contract Administration Course - Chapter 7 of the Agencies Contract
Management Manual requires that an employee may not be a WAM unless
he/she successfully completes a 3-day course, entitled Contract Administration.
It is also recommended that a WAM take the Basic Project Officer Course,
though not required.
o Recertification Course - The Agency requires a refresher course for ail active
WAMs for whom more than three years has elapsed since they completed the
Contract Administration Course.
o Performance Standards/Position Descriptions - Chapter 7 of the Contracts
Management Manual mandates that the responsibilities for a WAM be contained
in both his/her performance standards and position descriptions. Model
Performance Standards are included in Appendix E of this manual.
Chapter 1 2 January 13,1993
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o OW WAM Training Course - OW requires that WAMs complete a 1/2 day
training course every two years that is based on this manual. The course is
specifically geared toward the day-to-day responsibilities of a WAM.
ROLES AND RESPONSIBILITIES OF KEY PERSONNEL
As a WAM, you need to be aware of not only your roles and responsibilities, but also
those for all the parties involved in the contracting process. This will enable you to
understand the paperwork and communication flow as well as direct your questions
to the appropriate individuals. The remainder of this chapter discusses the roles and
responsibilities of those involved in the contracting process. Figure 2 on Page 10 of
this Chapter illustrates the communication flow among these individuals.
It is important to recognize that the Contracting Officer, (CO), is the ONLY PERSON
who has the authority to make legal and binding commitments for the Agency. As
WAM, your roles and responsibilities are in technical support of the CO's authority.
Contract Managers:
Work Assignment Manager (WAM)
The WAM is primarily responsible for the following:
a. Developing the statement of work (SOW) and level of effort estimate for
specific work assignments (WAs). The SOW must be within the contract's scope of
work;
b. Monitoring contractor performance on WAs including timing, costs and product
quality;
c. Providing technical direction;
Technical direction includes: 1) Direction to the contractor which assists the
contractor in accomplishing the SOW; and 2) Comments on and approval of reports
or other deliverables. ALL TECHNICAL DIRECTION MUST BE WITHIN THE WA SOW.
d. Recommending WA amendments to the PO;
e. Reviewing relevant portions of monthly technical and financial progress reports
Chapter! 3 January 13, 1993
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and sending documentation of review to the PO. This includes verifying to the
PO the "reasonableness" of contractor costs;
f. Assisting the PO in voucher certification;
g. Assisting the PO in evaluating the contractor's performance as required (e.g.,
under Cost Plus Award Fee contracts);
h. Keeping good files on all WA activity; {PO and CO will have files, too. WAM
is responsible for information that directly reflects a WAM's activities);
i. Monitoring work being performed for Task Managers (if applicable);
Task Manager (Only if applicable)
. ^ ...,., ?? . * . . *V. , ..
The Task Manager is an individual who assists the WAM in overseeing a particular
task or tasks under a WA as follows:
a. Working with the WAM in planning the task(s) to ensure tasks are free from
impinging on the sensitive contracting areas as described in EPA ORDERS
1900.1 and 1900.2;
b. Working with the WAM to ensure the task(s) are clearly written;
c. Overseeing the task(s) to ensure that the contractor completes the assigned
work in a satisfactory manner;
d. Maintaining files and documentation required to help the WAM monitor and
evaluate the contractor's performance on the task(s) and providing such
feedback to the WAM;
e. Assisting the WAM in evaluating the contractor's performance related to the
task(s) as appropriate (e.g., under Cost Plus Award Fee contracts);
f. Providing feedback to the WAM as appropriate on portions of monthly financial
and progress reports from the contractor related to the task(s) as to whether
costs appear reasonable;
g. Assisting WAM in reviewing deliverables from the contractor that are required
under the task(s) and notifying the WAM whether the product is acceptable.
Project Officer (PO)
Chapter 1 4 January 13, 1993
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The PO is the primary technical representative of the CO authorized by the Office of
Administration and Resource Management to provide technical oversight and direction
on contract performance. As such, the PO must be technically proficient in the work
being performed. The PO is responsible for the proper administration of the contract,
including the following:
a. Monitoring overall contract performance;
b. Maintaining a tracking system regarding the source, status and availability of
funds;
c. Monitoring contract administration by WAMs;
d. Facilitating interaction between WAM and contractor (including coordinating
the resolution of contract-related problems);
e. Reviewing technical and financial progress reports (and ensuring WAM review
of contractor costs);
f. Monitoring use of government property;
g. Certifying vouchers;
h. Funding and forwarding all requests for WAs and contract modifications to the
CO;
i. Receiving, reviewing and recommending approval to CO (with WAMs) all Work
Plans and revised Work Plans submitted by the contractor;
j. Maintaining contract files.
Contracting Officer (CO)
Only the CO has the final authority to approve WAs and contractor Work Plans. The
CO responsibilities include the following:
a. Signing a contract;
b. Obligating funds (including reviewing and providing timely final approval of all
Chapter 1
January 13, 1993
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WAs and contractor Work Plans);
c. Establishing and maintaining communications with POs and contractors;
d. Modifying contract terms or conditions;
e. Coordinating resolution of contract-related problems, such as cost claims,
conflict of interest (COD, cost overruns, etc.;
f. Terminating a contract;
g. Accepting deliverables on behalf of the Agency (unless authority has been
delegated to the PO and is stated in the contract).
Contracts Specialist (CS)
The Contracts Specialist (CS) is responsible for:
a. Serving as the major point of contact on the day-to-day activities of the
contract with POs and contractors;
b. Reviewing and making recommendations to the CO on such things as ensuring
that WAs are within the contract SOW, ensuring that LOE hours and dollar
ceilings are adequate and other aspects of WA and Work Plan review and
approval.
Program Managers:
Section or Branch Chiefs
The Section or Branch Chief may be responsible for:
a. Developing an annual contracts management plan for the Section/Branch and
ensuring this plan is implemented;
b. Determining that the WAM has properly planned for contractor-supported work;
c. Ensuring that WAM performance standards contain contract management
performance criteria;
d. Ensuring that the WAM has current certification and securing any required
training;
e. Ensuring that the WA requests fit within the scope of the Section/Branch
Chapter 1 6 January 13, 1993
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program priorities;
f. . Ensuring the timely obligation, tasking, and expenditures of funds allocated to
the Section/Branch for contracts.
The Section or Branch Chief supports the WAM in the technical management of
the WA, and assists the PO with oversight of contract activities in the Section or
Branch.
OW Role:
Senior Procurement Official (SPO)
The SPO is the single focal point for procurement authority and accountability within
each Assistant Administrator's Office and is responsible for:
a. Developing a long-term procurement strategy, in concert with the Office of
Administration and Resources Management, that anticipates program needs and
meets Federal and Agency procurement policy and standards;
b. Developing and implementing local action plans to meet program needs,
fulfilling procurement policy and standards and being responsive to the Standing
Committee report;
c. Reviewing controls over procurement decision and actions; ensuring timely
identification of issues and prompt resolution at an appropriate level;
d. Overseeing ongoing procurement activities to ensure integrity and
responsiveness to program needs; ensuring both effectiveness and integrity of
these activities, including responsible delegations and oversight arrangements.
Senior Procurement Official Assistant (SPOA)
The SPOA is the OW individual responsible for assisting the SPO in the performance
of the responsibilities identified above. The SPOA carries out such functions as:
a. Overseeing and developing OW contract-related training, in particular, WAM
training;
b. Coordinating the gathering and distribution of up-to-date Agency contracts
information and policy changes to OW Offices;
c. Providing guidance to OW POs on contract issues;
Chapter 1 7 January 13, 1993
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d. Updating the OW WAM manual on a regular basis.
Contractor
Without attempting to dictate the specific responsibilities of a contractor, in general,
their role is as follows:
a. Evaluating the WA to see if there is conflict of interest between the work
specified in the SOW and other work being performed;
b. Developing a work plan which addresses all of the work to be performed and
any other requirements stated in the SOW for the WA and including an estimate
of all of the costs and professional hours involved in performing work;
c. Completing work in a timely manner to meet established milestones in an
approved Work Plan;
d. Communicating regularly with the WAM to ensure that the work performed
reflects the needs of the WAM and the Agency;
e. Responding to changes in the SOW in a timely fashion to prevent additional
costs to the Agency;
f. Managing the work to keep costs at or below the budget of the WA;
g. Maintaining accurate and up-to-date records on hours and dollars spent;
h. Advising the WAM when 75 percent of funds and/or hours in a WA have been
expended;
i. Preparing and submitting periodic (e.g., monthly) technical and financial
progress reports and invoices as required by the contract;
j. Reporting to the CO as soon as possible any new activity that may appear or
present a potential COI to the Agency;
k. Maintaining the procurement management information required to inform
office/site managers to ensure an "early warning" capability required to avoid
contract mismanagement;
1. Ensuring integrity of responses to audits and other external assessments of
procurement activities.
Chapter I
8
January 13,1993
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Subcontractor/Consultant
When the contractor does not have the in-house expertise and/or availability of
personnel to conduct work required in the SOW, the contractor may draw from the
subcontractors or consultants which are approved in the contract. Note however that
EPA does not have contractual authority to negotiate or communicate directly with
subcontractors or consultants or to request a specific subcontractor or consultant be
used for a WA. This is the role of the prime contractor.
The subcontractor/consultant is responsible for the following:
a. Assisting the prime contractor in developing a Work Plan which addresses all
of the work to be performed including estimate of costs and hours and any
other requirements stated in the SOW for the WA;
b. Completion of all work in a timely manner in order to meet all established
milestones in an approved Work Plan;
c. Communicating regularly with the prime contractor to ensure that the work
performed reflects the needs of the WAM and the Agency;
d. Responding to changes in the SOW in a timely fashion to prevent additional
costs to the Agency;
e. Managing their work to keep costs at or below the budget of the WA;
f. Working closely with the prime contractor on all phases of the WA, including
changes in costs, SOW, deliverables, schedule, etc.;
g. Apprising the prime contractor of any problems in the work being performed
including a possible conflict of interest to the Agency;
h. Preparing and submitting information to the prime contractor to be included in
the periodic technical and financial progress reports and invoices provided to
EPA.
Journals, 1993
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Senior
Procurement
Officer
Managers
Section/
Branch Chief
Contracts Management Communication Flow
Upper Level
Agency
Management
Task
Manager
SPOA
\
Project
Officer
Office of
Aquisrtion
Management
Contract Officer
Contract
Management
Specialist
Global nnm and long Iwm ptannttg
Figure 2
Chapter 1
10
/J,
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V
CHAPTER jl
Charting the Course
OR
PLANNING THE WORK ASSIGNMENT
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Chapter II
Table of Contents
INTRODUCTION 1
THE BASICS ABOUT CONTRACTS 1
Statement of Work (SOW) 1
Contract Period of Performance 2
Appropriation 2
Contract Availability 2
Type of Contract . 2
Cost Per Hour 2
Overhead Rates 3
DEVELOPING A WORK ASSIGNMENT 3
What is the nature of the Work Assignment? 3
Which contract would be most appropriate for the job?
4
How does the Work Assignment break down into tasks?
4
What products are most appropriate? 4
Is the Statement of Work affordable? 4
Does my work assignment require procurement of ADP
Services? 4
Categorizing ADP Services 5
Requirements for Procurements Needing ADP
Concurrences 5
Obtaining OW/OIRM Concurrence 6
Does my WA require the use of Government furnished
property? 6
Will my WA require collection of information?. ... 6
Is the contractor required to handle Confidential Business
Information (CBI)? 8
What constrains scheduling? 8
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But I Need It Now!'!!!
Quick Turn-Around
How often do you want a progress report from your
contractor? 9
When should interim and final deiiverables be planned?
Who should review your interim and final products?
What uses will your WA and its products have?
Where You Can Go For Help On Various Issues?
Exhibit 2-1 Office of Water Contracts
Exhibit 2-2 ADP Form
Exhibit 2-3 Quick Response Task Form
9
9
10
11
10
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Chapter II
Charting the Course
INTRODUCTION
Contractors cannot begin work before the work assignment (WA) and all the
accompanying documentation have been approved and signed by the Contracting
Officer (CO). Consequently, no matter how brilliant your idea, nor how urgent the
task, you cannot use a contractor's services without having an approved WA in place.
Among the many responsibilities you will assume as a work assignment manager
(WAM), the first, and perhaps the most important, is developing and writing a WA
that clearly and concisely explains to the contractor the type of work you want
completed, the amount of time and money it should take to complete, and when the
product(s) should be delivered. All WAs you submit to your Project Officer for review
and approval must contain the following documents: (1) cover sheet; (2) WA review
form; (3) statement of work; (4) independent government cost estimate; (5)
procurement request; (6) WAM designation form 1900.65, when necessary; (7) ADP
concurrence form, when necessary; (8) CBI Review Form and (9) QA/QC Form, if
necessary. (Forms are covered in Exhibit 1 to Chapter III)
THE BASICS ABOUT CONTRACTS
Before you start developing and writing your WA you should know certain information
about the contract you are going to use to ensure it is the best vehicle for completing
the work you have in mind. The following is a short discussion of these key items.
Each of these items are specific to each contract and can be obtained from the Project
Officer (PO) managing the contract. A list of OW's current contracts, their dollar
values, periods of performance, and respective POs are provided as Exhibit 1 of this
Chapter. The SPOA will also have a copy which you may review.
Statement of Work (SOW)
Your WA must fit within the SOW of the contract. Your WA will not be
processed by the PO unless you include a completed WA Review form that cites the
section of the contract SOW under which the scope of your WA falls. For a copy of
the WA Review form refer to the Exhibits at the end of Chapter III.
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Contract Period of Performance
The contract period of performance indicates the life of the contract, if a
particular contract ends before you expect to complete your WA, you may want to
select another contract to avoid the paperwork involved with moving money from one
contract to another (i.e. deobligating and reobligating funds). Once money is
deobligated, it becomes available to other offices and you run the risk of losing this
money before it can be reobligated to a new contract.
Appropriation
Appropriations are allocated to EPA program offices as one-year money, two-
year money and no-year money. If your appropriation expires before you expect to
complete your WA, you may want to look into another funding source. You cannot
put funds into a WA which has a period of performance which estends beyond the life
of the appropriation. (You can usually tell by the structure of the number (i.e.
682/30108) is FY 92-FY93 money). If you are not sure, ask your PO.
Contract Availability
Prior to completing paperwork for your WA, you should first check with PO to
ensure that the contract has enough hours and funding left (i.e., below ceiling) for the
contractor to perform the work. A list of OW Contracts is provided at the end of this
Chapter.
Type of Contract
There are two types of contracts in general use in OW: Cost Plus Fixed Fee
(CPFF) and Cost Plus Award Fee (CPAF). The major difference between the two is
the method of awarding the contractor's fee, and when that fee is paid. A CPAF
contract requires you to evaluate the contractor's performance on each WA you
manage under the contract in addition to the regular monitoring of performance.
Typically, you will have to rate the contractor's performance between 2 and 4 times
per year. In contrast, a CPFF contract requires you to evaluate the contractor's
performance only once, when the work is completed.
Cost Per Hour
Each contract has an average cost per hour. This rate should be multiplied by
your estimate of the number of hours required for the WA and then add in an estimate
of Other Direct Costs (ODCs) and travel required by the contractor, to determine your
estimated total cost. ODCs are costs other than technical hours (e.g., postage,
reproduction, supplies, and equipment). For estimating purposes use the ODCs
identified by your PO.
Chapter II
January 13,1993
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Overhead Rates
The overhead rates added on to the cost of hourly labor and ODCs include:
1. Full and part time overhead, which is the cost of the benefits for the
contractor's personnel. These cost are direct percentage of the labor hours
expended for the month (e.g., 60%).
2. General and administrative costs (G&A), which are a fixed percentage of most
direct charges (e.g., 18.5%). These costs are based on projected costs and
can be changed (upward or downward) when actual costs are incurred.
3. Fee, which is the contractor's profit. It is fixed for a CPFF contract but subject
to EPA's evaluation for a CPAF contract. The fee for either type of contract
usually does not exceed 9% of the direct labor hours expended for a particular
period of time.
These rates are considered confidential business information (CBI) and should
always be secured. See your PO when you are ready to estimate costs for a WA.
Your PO may provide you with an average labor rate already loaded.
Other Material and Information to Get From Your PO
1. The approximate dates of receipt and turnaround for monthly progress reports.
2. The cover sheet and all WA forms.
3. Forms for approving work plans, monthly progress report, etc.
4. Criteria for evaluating CPAF contracts, if applicable.
DEVELOPING A WORK ASSIGNMENT
The following will help you think about what should be included in your WA:
What is the nature of the Work Assignment?
Is it rulemaking? Standard setting? Site investigation? Sanitary Survey? Are
there policy-setting ramifications? Will the nature of the effort rule out certain
approaches and necessitate others? What kind of experts are required? Does your
supervisor agree the task should be done? How quickly should it be completed?
Chapter 11 3 January 13,1993
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Which contract would be most appropriate for the job? ;
Review the scope of work of each OW contract to determine the range of skills
and services each one has agreed to deliver. The PO for each contract can assist you.
You must cite in your WA, where it fits in the contract scope of work.
How does the Work Assignment break down into tasks?
Sample tasks might include background investigations, data collection, logistics
planning, on-site analysis, developing recommendations. Are any of these task
defined as "inherent government functions" refer to Chapter 3 and Appendix C & D
for a definition of "inherent government functions." It is always important to define
division of responsibilities among the government and the contractor. Special
contraols will be necessary for any activities considered "sensitive" or "vulnerable."
What products are most appropriate?
Although you may not be certain yet, have some ideas in mind. Review the
goals stated in the SOW. Who is the audience? Do you want a background research
or testing for a regulation or standard? A report? A briefing? The type of deliverable
you select will affect the amount, pacing and mix of resources required.
Is the Statement of Work affordable?
Determine the full range of resources needed to complete the tasks in your
SOW. Resist the temptation to start with a projected total cost and fit the activities
to it. Instead, cost out the job the way you think it ought to be performed, estimating
the price of each line item under each task. This approach will keep your estimates
"honest" and accurate.
Be realistic and thorough. How many technical hours do you estimate will be
needed to complete the task(s}? How much work do you want completed by
senior staff? How much work do you want completed by junior staff? Do you
want senior staff to provide Quality Assurance/Quality Control on all
deliverables? Do you need specialized technical expertise? It'll cost you. Once
you make this kind of analysis, add up the estimated costs to come up with a
total for professional hours.
Does my WA require procurement of ADP Services?
There are various laws, regulations, and guidelines that must be followed when
you request automated data processing (ADP) services in your WA. The ADP services
may be incidental to the delivery of a non-ADP product (such as a report) or may
result in ADP products (such as software or databases).
Chapter II
4
January 13,1993
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Categorizing ADP Services
You must always indicate on the WA Review Checklist (Example in Chapter 3, Exhibit
3-1) whether you are requesting the contractor to provide ADP services. If the
answer is yes, your WA must be accompanied by the ADP Concurrence Form. (Refer
to Exhibit 2-2 at the end of this chapter for a copy of this form).
The first box on the top of the form contains descriptions of three categories of ADP
services that may be provided by a contractor. Only the last category requires ADP
concurrence. If your SOW requests a contractor to develop a computer program or
compile a data base, you must receive ADP concurrence from the Office of
Information Resource Management (OIRM). Just to make sure you understand how
this works, let's review the three categories.
First, a procurement falls in category A if it does not request a contractor to provide
ADP services. Concurrence is not required.
Second, a procurement falls in category B if the ADP services requested are incidental
to the delivery of non-ADP products. Computer programs and/or databases can be
developed, but they cannot be used for subsequent work. Concurrence is not required.
An example of a procurement in category B is a WA that requires the contractor to
conduct a survey and produce a report. The contractor may enter the survey data
into a database and create programs to analyze and report the data. The final
product, however, is a survey report. This request falls within category B as long as
the computer programs and databases are not used in any fashion after the report is
complete.
Third, a procurement falls in category C if the WA requests the contractor to develop
an ADP product, or if the databases and programs developed, while incidental to the
completion of non-ADP products, are expected to be used for subsequent work. In
the example discussed above, the WA would fall in category C if you planned to use
the survey data in another database or as part of a continuing study.
Requirements for Procurements Needing ADP Concurrences
When your SOW requests a contractor to provide ADP services you must make sure
the work is completed in conformance with EPA policy. In addition, all software that
is expected to be used by EPA or distributed outside the Agency must undergo testing
by an independent third party.
Obtaining OW/OIRM Concurrence
When your SOW does not request ADP services from a contractor, simply check the
appropriate category and sign the ADP Concurrence form. No OIRM review will be
i
Chapter II 5 January 13,1993
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required. The Contracts Office will accept the certification and will not require any
further ADP concurrences unless the scope of work is inconsistent with the
certification.
While SOWs that fall into categories A or B will be processed without OIRM
review, there are periodic audits to ensure compliance with this policy. When your
SOW clearly includes requests for ADP services from a contractor, OW SIRMO and
OIRM concurrence must be obtained before the WA is submitted to the Contracts
Office. You PO will provide the name of the individual in OIRM who will review the
ADP concurrence form. The Contracts Office will not process the procurement until
all concurrences have been obtained.
Does my WA require the use of Government furnished property?
If the contractor will be required to use government furnished property or
acquire property with contract funds, you must complete a "7-Point Justification of
Need" which includes the following:
1. Identify the specific program and project for which the property is required.
2. Identify the type, quantity and estimated cost (including any transportation or installation
costs) of each item of property required.
3. Explain why the property is necessary for contract performance.
4. Explain why ft is in the interest of the Government to provide the property rather than to
require the contractor to provide the property at no direct cost to the contract.
5. Identify the location of the contractor's facility at which the property will be used, and the
contractor's personnel responsible for acquisition and management of the property.
6. For property to be acquired by the contractor at Government expense, include a certification
that no in-house excess property is available and include the concurrence of the local
property office.
7. For equipment to be acquired by the contractor at Government expense (e.g. Purchase of
a PC), include a lease vs. purchase analysis.
Will my WA require collection of information?
Under the Paperwork Reduction Act (PRA), you must prepare an Information
Collection Request (ICR) to obtain Office of Management and Budget (OMB) clearance
for any activity that will involve collecting substantially the same information items
from ten or more non-Federal respondents in a given year (e.g., owner/operators of
Chapte
January 13, 1993
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public water systems, underground injection wells). You might need to prepare ICRs
for:
1. Information requirements in a proposed rule (e.g., monitoring, reporting,
recordkeeping).
2. Other information collection activities (e.g., studies or surveys, application
forms, audits, and similar standardized data collection activities). OMB regulations
apply to any "collection off information" as broadly defined in 5 CFR 1320.7. The
definition includes:
a. Written report forms, application forms, schedules, questionnaires, or
reporting and recordkeeping requirements.
b. Other means of collecting information, like rules or regulations, policy
statements, information requests, bulletins, instructions, contracts, planning
requirements, circulars, requests for proposals or other procurement, oral
communications, labeling requirements, and telecommunication requests.
c. Questions,posed to agencies, instrumentalities, or employees of the
United States, if the results are to be used for general statistical purposes.
1. When you request information from fewer than ten persons in a
given year, except that:
(a) a collection requirement contained in a rule of "general
applicability" is presumed to involve ten or more persons. OMB defines general
applicability as the potential to affect ten or more persons; consequently,
collection requirements in very few rules will fall under the less than 10
exemption.
(b) a collection addressed to "all or a substantial majority" of
an industry is not exempt.
2. When undertaken as part of: a criminal investigation; a civil action
to which the government is party; or an administrative action/investigation of
specific persons or entities, but only after a "case file," or its equivalent, is
opened.
3. When it falls under one of the exceptions to the definition of
"information" contained in 1320.7(j), for example:
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January 13,1993
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(a) Facts or opinions submitted in response to general
solicitations of comments from the public, published in the Federal Register or
other publications;
(b) Examinations designed to test the aptitude, abilities, or
knowledge of the persons tested and the collection of information for
identification or classification in connection with such examinations; or
(c) Facts or opinions obtained through non-standardized
follow-up questions designed to clarify responses to approved collections of
information.
If you are still not sure whether you need OMB clearance, contact your PO.
When your ICR is approved, you will receive an ICR Number, this number
should be noted in the WA and on any form the contractor may use to collect the
information.
Is the contractor required to handle Confidential Business Information (CBI)?
If a WA requires use of CBI, the contractor shall abide by all EPA requirements and
stipulations. This includes adherence to the CBI regulations at 40 CFR Part 2. It is
also important for you to ensure that your contractor is authorized access to CBI. The
contractor shall identify in the Work Plan budget all estimated costs for CBI
requirements as specified in the contract. Refer to Appendix H for more detailed
information on CBI.
What constrains scheduling?
Identify the internal schedules that delivered products or closeout should meet.
Do the schedules of related efforts conflict with your timetable? Sometime it is useful
to work backwards from the deadline. If no particular date is urgent, decide how long
the WA should reasonably take to finish. (See Figure 2-1 at the end of this chapter).
Many events can affect your schedule. Some can be controlled, most cannot. It is
impossible to extract rules of thumb on how long certain types of work should take
to complete; the variables involved are just too diverse. Certain "institutional
processes" will delay the progress of your work. The following are some guidelines.
Add 2 weeks for review inside EPA. If the product is going to the
regions add 1 more week.
Check the regulatory schedules to determine the schedule for
rulemakings or call your lawyer.
Projects demanding public participation should allow 45 days.
Chapter 11 g January 13, 1993
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If you want the states to review the document you are producing
count on it taking at least 1 month.
if you need (or desire) review by other federal agencies add 1
month to the schedule.
If your project is to be reviewed during August, or between
Thanksgiving and New Years, add at least 2 weeks.
Planning a large event like a series of workshops or a national
conference, allow at least 3 to 5 months.
The contract cycle will also affect how you schedule the
completion of various task(s) in your SOW.
If you are producing a document allow 2 to 4 weeks for
Government Printing Office or EPA printing, after the camera copy
is delivered.
But I Need It Now!!!!!
Quick Turn-Around
- In some instances, when an office performs several functions on a continuing
basis, one WA will be written to allow for tasks to be performed as needed. It is
important that you contact your PO to learn of any specific quick turn-around WAs
and obtain a copy of the scope of work permitted under these WAs. Requests for
work to be performed should be submitted to the PO using an OW Quick Response
Task Form. Refer to Exhibit 3 at the end of this Chapter for a copy of this form.
- You will need to supply a clear statement of what you need and a deliverable
schedule for you quick turn-around request. These tasks are usually designed to serve
specific purposes. They may be limited by number of hours and dollars.
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Chapter II
January 13, 1993
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How often do you want a progress report from your contractor?
Monthly progress reports are obligatory Agency-wide, but you may have
reasons for wanting more frequent feedback. Your WA may focus on a currently
"hot" topic or may even be important to senior managers. It may be extremely time-
sensitive. Or you may simply be unfamiliar with the contractor and choose tighter
control until good performance is proven. Remember, requirements like weekly
financial status reports and bi-monthly meetings have costs associated with them.
You must decide whether stricter control is worth the hours and dollars it will cost.
It may well be. Plan and ask for it up front, before the WA is approved by the CO.
Your WA does not become effective, and hence the contractor cannot begin work,
until the CO approves and signs it.
When should interim and final deliverables be planned?
Schedule them thoughtfully. Planning interim products as well as final ones will
help you conceptualize the phasing and pacing of the work. At the same time, you
needn't spell out every step the contractor should take. Here's a good rule of thumb:
If an interim product is (1) critical to proper formulation of the final deliverable; (2)
essential to decision-making, or (3) will receive widespread scrutiny, include it in the
WA document.
Who should review your interim and final products?
Determine who has to participate in the review and approval process early on
to determine how long it will take. Your division may require that you make a formal
request for review and approval. Even if this is not the case, you should at least
discuss this with your Section or Branch Chief. Be sure to invite colleagues doing
related work (from other offices as well as your own) to review your products.
Regardless of the type of work you hope to accomplish with your WA, the following
may have to be involved in the review and approval process: (see your PO for your
specific Division requirements)
Your Section and/or Branch Chief
Your Division Director
Your Project Officer
Your Contracting Officer
If your SOW includes computer applications, OIRM must review your WA. If
your SOW includes state questionnaires, and the like, the Office of External
Affairs and OMB must review your WA in light of ICR requirements (refer back
to Page 7).
Chapter II
10
January 13, 1993
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What uses will your WA and its products have?
Consider how the product of your WA could be put to work within OW. How
will it strengthen the Office's mission? Be ambitious for your work in the sense of
making it as widely useful as it can be. To what levels should results be elevated?
How can your WA involve and boost the effectiveness of other office projects?
Where You Can Go For Help On Various Issues?
Early in the process, the PO of a contract in which you are interested will be
able to assess whether the task you are proposing fits under the scope of work. She
has current information on the contract's scope of work, personnel, and skills, as well
as the contract's financial status, level-of-effort, rates, and staffing mix. Your section
or branch chief can review your WA for consistency with OW's mission and the
Office's Operating Plan. Other WAMs can provide model scopes of work, examples
of delivered products, and other relevant information. They know what has already
been done.
Chapter II
11
January 13,1993
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2-1
2-2
2-3
Chapter II
Exhibits
Office of Water Contracts
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Quick Response Task Form
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EXHIBIT 2-2
Office of Water
ADP CONCURRENCE FORM
I. CERTIFICATION
ADP services will be performed as part of this procurement.
Computer programs and/or data bases are products of the effort
OR may be used after completion of this procurement.
WAM Signature Date Contract # WA #
II. ADP CONCURRENCE
Office of Water:
Approve Disapprove Comments Attached
SIRMO, Office of Water Date
Office of Information Resources Management:
Approve Disapprove Comments Attached
Director, Program Systems Division, OIRM Date
-------
Environmental Protection Agency
Qlfice of Waiter
Oulok Response (QR) Task
EXHIBIT 2-3
WANo:
Task No.
OR Task No:
Labor Hours
Start Date
Tilk
End Dale
Description:
Deliverables
Due Date
Work Assignment Manager
Task Manager
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CHAPTER III
Setting Sail
or
Writing the Work Assignment
and Approving the Work Plan
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Chapter III
Table of Contents
INTRODUCTION
1
WRITING A STATEMENT OF WORK 1
Suggestions for Writing Your Statement of Work ... 3
Completing an Independent OW Cost Estimate 7
Review and Approval of Contractor's Work Plan and
Budget 8
Recommended Contents of a Work Plan 8
What to Look for in a Work Plan 8
Final Approval of the Work Plan 9
Exhibit 3-1 Work Assignment Package (15 Pages)
Exhibit 3-2 Work Assignment Resource Estimating Samples
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Chapter III
Setting Sail or Writing the Work
Assignment and Approving the Work Plan
INTRODUCTION
One of the most critical jobs a WAM will undertake is the development of a Statement
of Work (SOW). Implementation of a work assignment (WA) begins with the WAM's
preparation of the WA request. This is sent to the Project Officer (PO) who reviews
the package for accuracy and acceptability. If no changes or clarifications are needed,
then it is forwarded to the Contracting Officer (CO) for issuance to the contractor.
*
in preparing the SOW, the WAM must take care to keep the assignment within the
general scope of work of the contract. Assignments must be specific in terms of end
product(s) required, and number and types of reports to be submitted. Any other
specific requirements involved must also be specified in the WA. No specific cost
estimates are to be forwarded to the contractor. The contractor must have all the
information necessary to begin work immediately and to prepare a work plan. The
period of performance will generally be from the effective date of the WA (signed by
CO and received by contractor) until the completion date specified by the WAM.
Performance cannot extend beyond the current contract base or option period (if you
don't know these dates, check with your PO). The level of effort specified will be
based upon the estimated number of direct labor hours required to perform the task(s).
The contractor should communicate with the WAM and the PO within five days after
receipt of the WA to determine if a meeting is appropriate before final submission of
the Work Plan, (check with your PO for any specifics in the contract you are working
through)
WRITING A STATEMENT OF WORK
You may want to use the following outline when writing your SOW. As you become
more accomplished at developing and writing SOWs you will probably want to tailor
future SOWs to your own specific needs. As you develop more sophisticated ways
of writing SOWs, share them with your colleagues. In the meantime, feel free to
develop your SOWs with the outline provided below. Remember, writing the SOW
is an inherently governmental function. The contractor is not to participate in any
way in the development of the SOW.
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Outline and Format for the SOW -
A. TITLE
o Make H short, descriptive and the same as on the WA Request cover
form (Refer to Exhibit 1 at the end of this chapter).
8. ESTIMATED PERIOD OF PERFORMANCE
o Effective date of WA ICOs Approval) until (insert date). Cannot extend beyond
effective contract option period.
C. WORK ASSIGNMENT MANAGER
o Include the full name, address (including room number and mall code), and
phone number of the person who wBI be responsible for management of the WA.
D. BACKGROUND INFORMATION
o Provide a general description of the program and the taskfs) to be completed.
o Explain why the task(s) need to be completed.
o Explain the relationship between this taskfe} and other tasks being completed
under the SOW.
o Discuss the overall program or project's objectives.
o Discuss the specific objectives of this task(s).
E. STATEMENT OF WORK
o , Provide a detailed description of work to be performed.
o Identify and number the specific taskfs} to be performed by the contractor.
o Provide specific direction on any methodologies to be used.
o , Provide information on applicability of specifications and standards,
o . Clearly state the period of performance for each task and the delh/erables.
o identify any contractor travel requirements.
F. SPECIAL REPORTING
o Contracts routinely require a work plan (including OAK monthly progress and
financial reports and a final report for each WA. Specify any other specific reporting,
quantities and addresses.
G. GOVERNMENT RESPONSIBILITIES
o List if: fa) Confidential Business Information (CBI) is disclosed to the
contractor; (b) the Contractor is to use Government furnished property
. (GFP) or facilities; (c) expert testimony is expected; Id) release of information
and results of the contractor is restricted; (e) credentials for right-of-entry as
required; end (f) other conditions necessary for project performance.
H. RESOURCE ESTIMATES
o Identify EPA's best estimate of the professional (nonclerical) direct labor
hours necessary to perform the requested work. Use the OW estimating
forms to develop an LOE hours estimate for all technical work, computer
use, and anticipated contractor travel, (Exhibit 3-2)
0 Note any special qualifications needed,
1. SCHEDULE AND DELIVERABLE
o Provide a clear, realistic schedule for ihe completion of each task and
deliverable. Use number of calendar or working days after an event for a due date
{e.g., contractor shall deliver the final report within ten calendar days of receipt of
EPA's changes to the draft report).
J. ATTACHMENTS
o You may want to provide a copy of any relevant documents referred to iri the SOW as
wall as any specifications and standards the contractor must follow. -
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Suggestions for Writing Your Statement of Work
Now that you are ready to start writing a SOW, keep the following thoughts in mind:
1. ^^iSS^ff^SfS&^jf^^ You should realize that your SOW will be
read, and therefore have to be interpreted, by persons in many different fields:
lawyers, engineers, and specialists in quality assurance, finance, and contract
management. A good SOW precisely defines the product or service desired. It
affects administration of the contract because it defines the work to be performed.
Limit your use of abbreviations to those in common usage. A list of all
abbreviations and acronyms should appear in the introduction. When a term is cited
for the first time, spell it out and present the abbreviation or acronym in parentheses.
2. Avoid ambiguity, It is most important to gauge the likely effect that the
specifications, as written, will have on the reader. All obligations of the government
should be carefully spelled out. If review or approval actions are to be provided by
the government, a time limit or milestones must be set.
Requirements must be described in sufficient detail to assure clarity, not only
for legal reasons, but also for practical application. Some details may be overlooked;
others may be repetitious. Beware of both. The term "as necessary" should be
avoided in any reference to any report or any immediate action. Rather, it should be
specified whether the judgment is to be made by the contractor or the government.
Be aware that these types of contingent actions may have an impact on process as
well as schedule.
Similarly, the phrase "as directed by the WANT must be avoided. Any
appearance or possible implication of personal services must be avoided. If you do
not know exactly what product(s) are needed, write the WA in phases. Clearly
identify what the Agency will provide, i.e., existing information or references.
Finally, avoid ambiguous words such as "prepare"
BE SPECIFIC.
Do you mean write or type?
3.
Not everyone
will be as familiar with it as you are. For the readers' sake, provide a TOC when your
SOW exceeds four pages in length.
4.
than "a test should be conducted.
mandatory term "shall" rather the permissive term
"The contractor shall conduct a test" rather
When a firm requirement is intended, the
should" is desired.
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5.
It is always important to define
division of responsibilities among the government and the contractor. Always list and
discuss those tasks that cannot be performed by a contractor in your SOW.
Inherently governmental functions are discussed in more detail later in this chapter and
in EPA Order 1900.1 and 1900.2. (See Appendices C and D).
6.
Expect the
contractor to follow precisely the wording of the SOW. If the SOW does not clearly
state not only the standards by which performance will be judged, but also by whom,
how, and within what period of time, the contractor may be absolved of responsibility
for inadequate performance.
7.
Previously developed
SOWs can be a valuable resource when used in conjunction with information on the
resulting contract. Where similar work has been done and the results were good,
portions of that SOW may be used as a guide to the one being prepared. Where
problems later developed during performance, the old SOW and the contract file may
provide insight as to where greater detail, correction, or clarification could have been
used to avoid problems.
8.
For example,
when immediate decisions cannot be made, it may be possible to include a procedure
for making them (e.g., "as approved by the CO," or "the contractor shall submit a
report each time required government inputs are not received.")
9.
Do you need a
report, a briefing, video? Do you need interim deliverables? Do you have a format in
mind? How many copies will you require? Do you need a floppy disk? If yes, in
what format. The more information you communicate in your SOW regarding your
deliverables, the more accurate will be both yours and the contractors estimates
regarding the cost of the contract.
The following sections provide additional information as you begin to develop your
SOW.
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Avoid Inherent Government Functions
EPA has been criticized for its management of contractors. On a number of
occasions, the Agency has put contractors in policy and decision-making positions,
or has placed contractors in positions that give the appearance that they are
formulating policy or making decisions on behalf of the Agency. As a result of these
past indiscretions, EPA has taken steps to better manage contracts to insure that
"inherently governmental functions" are carried out by EPA employees.
The following is a list of inherently Government functions that cannot, under any
circumstance, be undertaken by a Contractor:
1. The actual preparation of congressional testimony.
2. The interviewing or hiring of individuals for employment at EPA.
3. Developing and writing position descriptions and performance standards.
4. Determining Agency policy.
5. Participating as a voting member on a performance evaluation board or
participating in or attending award fee meetings.
6. Preparing award fee letters, even under typing services contracts.
7. The actual preparation of award fee plans.
8. The preparation of documents on EPA letterhead other than routine
administrative correspondence.
9. Reviewing Contractor vouchers and invoices for the purposes of determining
whether cost, hours, and work performed are reasonable.
10. The development of SOWs, WAs, technical direction documents, delivery
orders, or any other work issuance document under a contract that the
contractor is performing or may perform.
11. Preparing responses to audit reports for the Inspector General, General
Accounting Office (GAO), or other auditing entities on behalf of EPA.
12. Preparing responses to Congressional correspondence on behalf of EPA.
^Chapter III
January 13,1993 5
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13. The actual preparation of responses to Freedom of information Act requests,
other than routine, non-judgmental correspondence--in ail cases, EPA must sigh.
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
clearance.
17. Preparing an office's official budget request.
in addition to those government functions that contractors are prohibited from
undertaking, there are a number of activities over which the Agency--that means you,
must exercise great control if a contractor is to conduct the work. When you request
a contractor to undertake one of the following tasks, make sure you take an active
role in overseeing the contractor's work and that you are the ultimate decisionmaker.
You must assure that final products are unbiased and represent Agency thinking.
These activities include the following:
1. Supporting preparation of the budget by doing workload modeling,
fact-finding, efficiency studies, should-cost analyses, and the like.
2. Reorganization and planning support.
3. Conducting analyses, feasibility studies, et cetera that are used by EPA
to develop policy.
4. Supporting regulation development.
5. Supporting EPA's evaluation of another contractor's performance.
6. Participating in strategic acquisition planning.
7. Supporting work to improve contract management.
8. Providing specialized expertise in the contract selection process.
9. Sharing office space with EPA personnel.
Chapter HI
January 13,1993
6
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10. Support in preparing responses to Freedom of Information Act requests.
11. Any situation where a contractor has access to CBI or other sensitive
information.
12. Any support involving EPA policy or regulatory interpretation, such as
staffing hotlines, attending conferences on behalf of EPA, community
. relations efforts, conducting EPA training courses, etc.
13. Any situation where it can be assumed that the contractor is an EPA
employee, without specifically identifying his or herself as a contractor.
14. Independently interpreting EPA policies or regulations on EPA's behalf to
outside parties.
Completing an Independent OW Cost Estimate
The independent OW cost estimate is an essential part of your WA. This estimate is
for use by EPA employees only, and should not be given to the contractor. Cost
estimate forms are provided as Exhibit 3-2 in this manual to help you complete this
estimate. Along with the SOW and the WA Request Form, the cost estimate forms,
once they are completed, become part of the permanent record of each WA. Be sure
to see your PO to get a copy of the form being used for the contract you will be
using.
The estimating forms are the basis for establishing the "independent OW estimate"
required for any particular WA. They are developed internally and are for internal use
only. The estimating forms provide a record of how a cost estimate was developed
for a particular WA. These documents provide the basis for negotiating the work plan
with a contractor. Estimate the P-Levels as required by your PO. Get the average
hourly rate from your PO and complete the totals. P-Levels are identified in Appendix
F.
Review and Approval of Contractor's Work Plan and
Budget
Once you have submitted your completed WA along with appropriate forms, to the
PO you must wait for the contractor to respond and submit a Work Plan (which
includes a budget) for completing the work you have identified. Your PO will send the
Work Plan to you for approval along with a WA Cover Sheet which you will sign and
return to the PO indicating approval of the Work Plan. You will review the Work Plan
to ensure that the contractor's understanding of the task is clear and that the
Chapter 111
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proposed technical approach for accomplishing the work is reasonable. Further, you
must ensure that the proposed level of staffing and resources are appropriate,
sufficient, and reasonable for performing the work.
Notice of approval/rejection of Contractor's Work Plan is submitted through the PO
to CO for communication to the contractor. If work plans or cost proposals are not
approved, comments or required revisions must accompany the notice of rejection.
Sometimes a Contractor is authorized to begin work while the Work Plan is under
development or review. The Contract will specify a point at which work is to stop
if Work Plan approval has not been received, or if the work plan is rejected (a ceiling
of funds to be spent prior to Work Plan Approval can be specified in the WA). Timely
review of the Work Plan is critical to ensure that the work is completed on time.
Delays on the part of the government can prevent a Contractor, under the terms of
the contract, from continuing performance.
Recommended Contents of a Work Plan
1. Statement of the Project Goals (Purpose)
2. Detailed Technical Approach with Action Steps
3. Description of Each Task/Deliverable with Schedule for completion
4. Staffing Plan (with resumes for key personnel if not previously submitted at
contract award)
5. Areas requiring clarification/suggested modifications/anticipated problems
6. Proposed format(s) for special progress reports, if required
7. Proposed use of Subcontractors, with discussion of how the effort will be
managed by the Prime Contractor.
8. Detailed Cost proposal, broken down by task and subtask.
What to Look for in a Work Plan
o Does the work plan fit the SOW?
o Does the contractor demonstrate complete understanding of all elements
of the project?
o Is the overall schedule appropriate/too generous/too ambitious?
o Can the effort be accomplished reasonably within the Level Of Effort?
o Is the overall staffing plan appropriate and reasonable (e.g., are there too
many P-4 hours for Senior Management)? (see Appendix F)
o Has the contractor identified any questions or problems which need to
be resolved?
o Is there too much subcontracting? Can the contractor maintain adequate
control over the project?
Chapter in
January 13, 1993
8
-------
o Does the assignment have the commitment of the contractor's
management?
o Costs
Are the hours and rates appropriate and reasonable?
Is the labor mix close to what was negotiated in the contract?
Are the indirect cost rates those which have already been
negotiated and are stated in the contract?
Is the subcontracted portion of the effort reasonable?
_ Is the proposed amount of travel acceptable?
Did the contractor provide a breakdown on Other Direct Costs? Is
each component reasonable?
Are proposed subs/consultants already approved?
Will approval of the work plan require a ceiling increase of any
proposed sub/consultant?
_ Is any Government Furnished Property involved, and has it been
justified in the contract?
Final Approval of the Work Plan
As the WAM, you can approve the Work Plan if it meets the above criteria. If you are
not satisfied, you can conditionally approve or reject the Work Plan. With conditional
approval, you must clearly identify those areas that the contractor must fix (e.g.,
change mix of labor hours, change date of deliverable). If you reject the work plan,
you also must provide an explanation of the deficiencies. The difference between
conditional approval and rejection is that under the former, the contractor may
continue to work for a specified period of time, while rejection requires immediate
stop work. Under both of these scenarios, the contractor must correct deficiencies
and submit a revised Work Plan. There is no limit to the number of times that you
may conditionally approve or reject a contractor's Work Plan. If the contractor is
having difficulty submitting a satisfactory Work Plan you should consider that the
contractor may not be suited to the task or that your SOW may be unclear. In either
case, you should consult with the PO.
Chapter 111
January 13,1993
-------
Does my WA contain the correct documentation?
The WA you submit to your PO must contain the
following documents:
Cover Sheet
Work Assignment Review Form
Statement of Work
Independent Government Cost Estimate
Procurement Request
Completed WAM Designation Form 1900.65, if
necessary
Completed ADP Concurrence Form, if necessary
Completed CBI Review Form
Completed QA/QC Form, if necessary
D
D
D
Q
a
a
a
Chapter 111
January 13, 1993
10
-------
3-1
3-2
Chapter III
Exhibits
Work Assignment Package (15 Pages)
OW Work Assignment Resource Estimating Form
-------
-------
EXHIBIT 3-1
WORK ASSIGNMENT
ENVIRONMENTAL PROTECTION AGENCY
1.
2. CONTRACTOR:
5. UA TITLE: i
3. UORK ASSIGNMENT NO.:
4. AMENDMENT NO.: '
bfc O A&»q»ie««««1H>««««««««1»«««ir««*««««««*«««>IK«««««»M
LIMITATION OF FUNDS
JNO.
10. TOTAL UA FUNDING CEILING;
»»»*»«»»»»»»»
UORK PLAN APPROVAL
11. CONTRACTOR UP ESTIMATE: COST AND FEES:
12. TOTAL APPROVED FOR CURRENT TERM: COST AND FEES:.
LOE
13. DOES UP REQUIRE SUBCONTRACTOR OR CONSULTANT?
IF YES, HAS SUBCONTRACTOR/CONSULTANT BEEN INCORPORATED
INTO THE CONTRACT? (If Subcontractor/Consultant has not
been incorporated Into the contract. Contractor must
subnit appropriate docuaentatfon to obtain approval
prior to use.)
14. DOES WP REQUIRE PURCHASE OR LEASE OF ACCOUNTABLE
PROPERTY? IF YES, ATTACK JUSTIFICATION.
C 1 YES
[] YES
94 NO
t I NO
C 3 NO
IS.
APPROVALS
WORK ASSIGNMENT MANAGER:
Nane: If V/JUL, /K»^
Phone No.; (n^yii^f-ff^AZ. Fax No.; (juaAj/*6-f»nto
Branch/Ma it Code; NU-fo
Signature:
Date:
PROJECT
Nam:
Phana Na. :
i Ji«»««<*
i«*««««* «<»»»«»»««*>>««
CONTRACTOR'S REPRESENTATIVE ACKNOWLEDGEMENT
NAME;
TITLE:
SIGNATURE:
DATE:
CMD-C1 (10-92)
-------
-------
GtJTDANCB FOR COMPLETING WORK Xfi8T
FORM
NOTE! ITEMS TEAT ARE SELF EXPLANATORY (BE) ARE MOT REPEATED
1.
2.
3.
4.
5.
6.
7.
S.
9.
10.
11.
12.
13.
14.
IS.
SB
8E
SB
SE
SE
CHECK APPLICABLE BOXES (HAT BE MULTIPLE)
INCLUDE TEE FOLLOWING INFORMATION IV THE STATEMENT OF WORK:
Title
Purpose of WA/Baekgrouad
Detailed Tart Descriptions (Specific Tasks/sub-
' Tasks/Daliverablea)
Required Additional Reports (vita specified formats)
Schedule of Tasks aad Deliverable*
Suggested Skill Mix
Required Personnel Qualifications
Special Requirements or Restrictions
Specific Travel Requirement (Bomber of Trips, where,
when, purpose - must be in direct support of WA)
specific Training Requirement (new technology, direct
benefit to vork assignment, mission)
Conflict of interest Issues
Q.A Assurance Plan
PERIOD OF PERFORMANCES Start date may be date contracting
Official (CO) issues WA or date CO approves TO, depending on
contract WA clause. Ending, date must not exceed current
contract term UNLESS the WA is severable whereby specific tasks
can be identified as carryover into next term. If ending? date
exceeds contract maximum expiration date, specific tasks^must
be identified which will be completed by follow-on contractor.
WAS WILL NOT BE ISSUED UNDER THE ASSUMPTION THAT AM EXXEMSIOM
WILL BE GRANTED TO CURRENT CONTRACTOR TO COMPLETE WORK.
INDEPENDENT GOVERNMENT ESTIMATE OF LOBS This is an estimate
prepared by the Government with no input from contractor.
Zf contractor may start vork at WA issuance, provide ALL
funding information. If contractor cannot start_work until WP
is approved, provide all information EXCEPT AMOUNT at WA
issuance. All information to be provided at WP approval.
TOTAL WA FUNDING CEILING» This is TOTAL amount of funding that
has been provided for the WA during current term.
APPROVED FOR CURRENT TERM (COST/FEES/LOB) S This includes total
COST/FEES/LOB approved for the current term to date (including
all amendments) obtained from contractor*s WP.
SB
SB
OTESRs OIRM APPROVAL, QA/QC, SR. Procurement Official, ETC.
-------
WORT ASSIGNMENT BEVIEU/aEBTIFICATIOl CHECKLIST
1.
2.
S.
6.
7.
8.
CONTRACT MO.; 68 "CO" XX XX
UA NUMBER:
UA TITLE:
3. INDEPENDENT GOVERNMENT COST EST.: /Otf. j
4. INDEPENDENT GOVERNMENT 106 EST.: L/^Q
:tV»t*,iH<»i
UA falls within scope of work of this contract.
Cite specific section/paragraph(s) of contract SOU:
Sec^im'^r^ "aajnoLfl/iixph 3
UA Amendment falls witnin scope of original UA.
(a) Total LOE ordered by UAs to date (excluding this current UA):.
(b) Total LOE authorized under current contract term:
YES
(c) Current UA requires exercising quantity options. (Attach Justification) t
9. (a) Funds are in the contract to support UA. Q$
(b) A funding PR is attached to support this UA. otf
(e) UA is funded by multiple appropriations. E )
(d) If °e is yes, FMD approval is attached. ( ]
(e) FMD approval is not provided, but accounts are identified with specific tasks. t 1
10. All work (including deliverables) will be completed during the current contract term, tf
11. The contractor has not been instructed to begin work on
this UA by anyone in the organization. . . j j
12. UA does not contemplate improvement to realty (repairs, alterations,
modifications to real property). t j
13. (a) UA does not require printing. [ )
(b) UA does not require duplication exceeding contract limitations. t 1
14. UA contemplates development of software or ADP equipment/services. { ]
(Attach OIRM clearance or indicate if this was obtained at contract award.)
15. (a) Program has not recommended subcontracting/consulting services
to meet UA requirements.
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STATEMENT OF WORK
SAMPLE
(Where Work Assignment Manager is in the Region)
FEDERAL UNDERGROUND INJECTION CONTROL (DIG) PROGRAM
DIRECT IMPLEMENTATION IN EPA REGION II
NEW YORK, PUERTO RICO, AND THE VIRGIN ISLANDS
EPA Region II requests that the Contractor provide technical
support services in the areas of activity detailed in the attached
statement of work. The Contractor, will perform each of the major
activities according to the final work plan, work hours, and cost
estimates agreed upon by EPA and the Contractor. After approval by
the Region, the detailed work plans will be submitted to the
Project Officer in EPA Headquarters and the Contracting Officer for
review before receiving authorization to proceed. The initiation
of these specific tasks will be coordinated by the Contractor
through the contract *s Work Assignment Manager (WAM), Wilma Ann
Mason in Region II.
Background and Purpose
Implementation of the UXC Program in New York State is the
direct responsibility of the Region II office of EPA. It is
critically important that the UIC needs be addressed during the
implementation of the UIC Program in western New York State. In
particular, the New York State UIC Program requires oil field
technical expertise and response in a relatively short time frame.
EPA Region II needs UIC expertise to witness and inspect common
Class II activities in western New York State. The Class II
activities are to be reported to EPA so a determination can be made
regarding compliance with UIC regulations and/or need for EPA
follow-up inspections.
Section 1445 (B) (1) of the Safe Drinking Water Act provides
the Administrator or his designated representative the authority to
enter upon and to inspect any facility subject (authorized by rule
or permitted to the UIC Program requirements. Additionally, the
provisions of 40 CFR Part 144.51 (i) specify that the Director or
his authorized representative, upon presentation of documents and
credentials, may:
1) Enter upon the permittee's premises where a regulated
facility or activity is located or conducted, or where
records are kept under the conditions of the permit;
2) Have access to and copy, at reasonable times, any records
that must be kept under the conditions of the permit;
3) Inspect at reasonable times any facilities, equipment
(including monitoring and control equipment), practices
or operations regulated or required under the permit;
and,
-------
Background and Purpose (Continued)
(4) Sample or monitor at reasonable times, for the purposes
or assuring permit compliance or as otherwise authorized
by the appropriate Act, any substance or parameters at
any location.
EPA Region II requests that the Contractor provides UIC
inspection services as detailed in this Statement of Work. The
Contractor will be responsible for maintaining separate fiscal
accounts for each individual part of this work assignment. The
inspection-related work and resulting travel are limited to New
York State, primarily the western New York State area of Allegany,
Cattaraugus, Chautauqua, and Steuben Counties, unless otherwise
directed by the WAM.
Period of Performance
The period of performance for this work assignment is October
1, 1992 through September 30, 1993.
Scope of Work
The Contractor is requested to provide continued services of
one full-time UIC program inspector equipped with vehicle and basic
inspection gear to work in an assigned geographic area of western
New York State as follows:
1) Geographic Responsibility
The inspector will be primarily responsible for the New
York counties of Allegany, Cattaraugus, Chautauqua, and
Steuben. The inspector will be expected to be familiar
with the area.
2) Duty Station
The inspector will operate from his residence. This
residency shall be located within 50 miles of the areas
listed above.
The highest anticipated workload will be in the vicinity
of the Olean , NY Region. This area will be the area
most accessible to the current UIC activity.
-------
Scope of Work (Continued)
3) Travel and Vehicle
Under this contract, the Contractor will provide the
inspector with a four-wheel drive vehicle, which will be
leased and insured under this contract. An expense
account for gasoline, oil, maintenance and certain other
travel-related expenses will be allowed. The purpose of
establishing the field locations is to minimize long
distance travel and overnight lodging. Any overnight
travel for inspection-related work must have prior
approval form the WAN. The inspector will be authorized
and is expected to travel to the EPA New York Region II
office for any training, reporting, and enforcement
casework as indicated by the WAH.
4) Inspection Equipment
The Contractor will provide each of its inspectors with
the following equipment:
hard hat
safety goggles and safety shoes
current edition of 40 CFR Parts 100 - 149
field clipboard (i.e., SNAPAK ISN-8512)
bound waterproof notebook
flashlight
automatic 35mm camera
appropriate pressure gauges
telephone answering machine, beeper, or such device
500-foot (or longer) water level indicators (tape
or mechanical) (e.g., QED Model 6000)
other equipment as needed.
The EPA Region II office will provide the inspector with
the following:
appropriate credentials
- sampling containers
the Region II Quality Assurance (QA) Project Plan.
All equipment purchases charged to the assignment must be
approved by the Contracting Officer, in writing, prior to
the purchase. Property accounts or nonexpendable
equipment, including information on whether the purchases
are direct or indirect costs, will be kept by the
Contractor. A listing of all equipment purchased will be
furnished to the Property Administrator.
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5) Duties and Responsibilities
There are four categories of inspections to be performed
by the inspector:
Category I - Routine Inspections
" t
These inspections are made to allow EPA to determine
compliance with permit or rule requirements. They may
require a review of well or other records, a visual
inspection of the sell, a review of well construction/ or
general housekeeping. Some samples of injected fluids
may be collected and submitted to an approved laboratory
for analysis. The sampling procedures and analysis will
follow the Regional EPA approved Assurance Plan.
In addition, the inspector will inspect facilities and
injection wells for obvious potential hazards,
appropriate monitoring equipment and recording
procedures, and proper operation and maintenance. The
inspector shall notify the WAH of any major problems
encountered at an individual injection well or injection
facility during the course of such an inspection.
Category II - Construction Verification
The inspector will be required to observe the
construction of new wells and modification of existing
wells and report to the WAM so EPA can insure that all
construction activities are completed according to
approved permit or rule conditions or guidance. With
new facilities, it is particularly important that a pre-
operational inspection be made. An integral element of
such EPA reviews will be an examination of the compliance
achieved by the owner/operator in comparison to the
approved corrective action plan. These inspections may
be conducted either during construction, or after
completion, as warranted.
The inspector should inspect, review, and report to the
WAH, siting and construction data, casing and cementing
procedures, presence of required monitoring equipment,
any logs or such tests run during construction, results
of mechanical integrity tests, results of formation
testing, the injection procedure, and status of
corrective action on the pertinent wells within the area
of review.
-------
Scope of Work (Continued)
Category III - Mechanical Integrity Test (MIT)
Verification
This category centers" on MIT activities planned and
conducted by the owners/operators in compliance with EPA
requirements. The types of MITs conducted will be the
Water-in-Annulus method, used in Regions II and III,a nd
casing and/or tubing annulus pressure tests. These tests
will be performed on an individual basis to ensure the
use of proper testing procedures and the accuracy of test
results. The majority of the MITs performed will be the
Water-in-Annulus method.
EPA projects that approximately 1,500 existing active or
temporarily abandoned Class IIR wells will be tested for
mechanical integrity by the owners/operators. The
contract inspector will witness MITs when instructed by
the WAN and report results to EPA.
Category IV - Plugging and Abandonment (P&A) Verification
Due to the difficulty in determining the number of
closures, (which depends mostly on owner/operator
notification), EPA Region II will require inspections on
a case-by-case basis for plugging and abandonment
activities. The p&A inspections will rely on proper
notification by the owner/operator. Inspections of this
type will be considered a single event, and may entail
several days for completion.
The inspector will witness the cementing techniques used
during the permanent closure of a well and compare the
plugging activities to the EPA approved plugging and
abandonment plan, UIC regulations, and Region II P&A
guidelines. The contract inspector will notify EPA on
owner/operator variance from the approved plans. The
inspector will submit a report to the WAM outlining
cementing techniques used during the permanent closure of
a well.
All inspection data submitted to EPA by the inspector may
be used for determination of follow-up EPA inspections or
initiation of compliance/enforcement activities.
-------
scope of work (continued)
6) Supervision, Training, and Guidance
Inspection tasks will be scheduled by the WAM.
Assignments will be issued to the Contractor monthly, and
also through special requests as necessary. The
inspector must document completion of tasks in a form
acceptable to Region II (Inspection Reports, Compliance
Reports, etc.). The contract inspector will be required
to schedule specific inspections. However, names,
addresses, and telephone numbers of company
representatives will be provided to the Contractor by the
WAM. Depending on the inspector's requirements,
technical and program guidance, specific EPA policies,
and training on program objectives will be provided by
EPA Region II.
7) Inspector Qualifications and Selection
Candidates for the position of UIC contract inspector
should have a combination of field experience and
education that brings to the job a comprehensive
knowledge of (1) western New York's State (Appalachian
Basin) oil and gas practices and geology and (2)
principles of oil and gas recovery and ground water
protection. Emphasis shall be placed on the following:
A) New York State Oil and Gas Field Practices
drilling and completion
well stimulation
geophysical well logging
enhanced oil and natural gas recovery
- produced fluids and abandonment practices
- casing and cementing policies
B) Principles of Hydrocarbon Recovery and Ground Hater
Protection
- petroleum engineering and geology
oil and gas geology in New York State
well hydraulics
- ground water hydrology/hydrogeology
- geochemistry
In the event a replacement inspector is required, the
Contractor shall immediately take all reasonable steps
necessary and appropriate to secure a qualified
replacement in a timely manner. The Contractor is
directed to secure and evaluate applications from
interested candidates according to the above
requirements. Screening interviews may be conducted by
the Contractor.
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Scope of Work (Continued)
8) Data Tracking and Reporting System
Data collected through field inspections provide an
essential element of compliance verification for UIC
activities in New York State. For all inspections of a
similar type, it is important that collected data be
consistently recorded. Consistent inspection reporting
will enhance follow-up compliance determination and
program enforcement activities.
Reports of inspection activities shall be submitted
within five working days following the inspection.
Reports shall be submitted in a format consistent with
the data entry needs of the Region II FOCUS system.
Specific formats will be provided to the inspector prior
to the start of inspection activities. The formats shall
contain data elements directly related to the data
management system for the UIC activities in EPA Region II
(FOCUS). All data submitted by the inspector will be
reviewed and put into the FOCUS system by the Regional
UIC staff. EPA reserves the right to authorize equipment
purchases that would allow the inspector to directly
enter inspector data in FOCUS.
Travel
The contractor is expected to take two long distance trips;
two roundtrip trip between Smethport and New York City for meetings
with the EPA WAH.
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-------
(Shaded areas are for USB ol procurement office only)
Page
US fcnwonmentai Pro
*tCDA Procure
VCr/^ Reauest/
^ffanafun of Originator^ y
Deliver To f/Vo/ecf Mfnagert '
Peter Olson
12.
Financial
Daw
.Appropriation
682/30108
FMOUse
tact
C2C
m
'0
I
ion Age
(480
ent
>rde
£$7
ncy
r
1 . Name of originator
Wilma Ann Mason
3. Mail Code
2WM-UIC
5^7
4. Telephone Number
(212) 264-XXZZ
2. Date of Requisition
9/1/92
S. Date Item Required
ASAP
7. Recommended Procurement Method
LJ CompMrtJv* LJ Other than full and open competition O Sato source small purchase
a. Address EPA OGWDW/8MES
401 M St. SW Wash. D.C.
O
T
(d
b. Servicing Finance Office Number
22
Document
Control Number
W {6 digits!
Account Number
mno
2BUH40EOOO
1 3. Suggested Source (Name. Xddrexc. 2//> Coda, Phont/Conttct)
XYZ Contractor
305 Forest gate Drive
Washington, D.C. 20469
14. Amount of money
coiiimmad tK
0 Original
D Increase
D Decrease
to. Mail Code
WH550A
1 1 . Telephone Number
(202) 260-XXXY
NOTE: Item 12(d) Document Type Contract =
Purchase Order « "P"
Class
2505
"C."
Amount (h)
Dollars
108.500
Cent
00
16. For Small Purchases Only: Contracting Office » autho-
rited to exceed the amount shown m Block 12(h) by 10% or
100. whichever is less.
Dves DNO
16. Approrate
a. Branch/Office Betsy>franch|, Chief <
UIC EnforcementvneMe. p-Lt/U-^t*-
b. Division/Office Debbie. Datrldot
Enforcement Dix
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&EPA
Designation and Appointment of Project Officer/
Work Assignment Manager/Delivery Order Officer
(For Other Than Small Purchases)
Note: This form is not a Contracting Officer warrant. Delivery Order Officers and Administrative Delivery
Order Officers require a warrant of Contracting Officer authority. Any request for a Delivery Order Officer
warrant must be accompanied by the additional information required in Chapter 8 of the Contracts Manage-
ment Manual.
1 a. Name of Nominee
Wilma Ann Mason
b. Title
Geologist
c. Organization
2WH-UIC
d. Mail Code
2WMD-DGWP
e. Telephone
(212) 264-XXZZ
f. Years of Contract Experience
2. The nomination is for:
LJ Project Officer
t&J Work Assignment Manager
II Delivery Order Officer
LJ Administrative Delivery Order Officer
LJ Delivery Order Project Officer
3. The Nominee Has:
a. Completed the basic Project Officer Course
b. Completed the Contract Administration Course
c. Incorporated appropriate contract management
criteria in position description and performance
standard. (If criteria have not been incorporated.
they must be incorporated within 30 days of
appointment. I
d. If trie nominee has not completed the basic Pro-
ject Officer Course or the Contract Adminis-
tration Course, has a waiver or interim
certification been provided
If the answer to items a. D. or c is "No." or the
answer to item d is "No." attach an explanation.)
Yes
B
m
No
D
D
D
D D
Dollar Amount of Contract. Work Assignment, or Delivery Order
$108,000
S. Nomination is for (Check one):
bu a new contract, work assignment, or delivery order entitled Federal UndepgT'Otind Tn jpp.f.i or]
(UIC) Direct Implementation in Region II
II a change in the Project Officer. Work Assignment Manager, or Delivery Order Officer on Contract No.
til applicable, the work assignment nondelivery order no. is
Certification
The undersigned nominee and requesting official certify that the designation of this
nominee complies with the workload limitations and other requirements set forth in
Chapter 7 of the Contracts Management Manual.
b. Date
7a Signature of Requesting Official
~ (Division Director or Higher!
b Name and Title
c Date
iignature of Approval Official
(Contracts Organisation/
b Name and Title
: c. Date
EPA Form 19OO-6S (6-9&\
Official Contra
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0
CBI REVIEW OF INDIVIDUAL WORK ASSIGNMENTS/DELIVERS ORDERS
CONTRACT NO.
WA/DO NO.
CONTRACTOR NAME:
PROJECT OFFICER NAME:.
WAM/DOPO NAME AND SIGNATURE:.
YES NO
1. Under this WA/DO, does the contractor or
subcontractor currently have access to CBI?
2. Under this WA/DO, will the contractor or
subcontractor potentially have access to CBI?
3. Is the contractor or subcontractor authorized
to have access to CBI?
4. Did any amendments to this WA/DO preclude
disclosure of CBI?
Comments (if applicable):
NOTE: If the answers to Questions 1 and 2 are "NO," this action
presents no problem. If the answer to Question 3 is "YES," this
action presents no problem. In either case, after review by the
Associate Director or the CMD Director, the form nay be retained
in a separate file. If the answer to Questions 1 or 2 is "YES11
and the answer to Question 3 is "NO," a problem exists. This
form requires submission. If the answer to Question 4 is "YES,1*
this form requires submission even though no problem exists.
C
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QUALITY ASSURANCE REVIEW FOR EXTERNAL PROJECTS
(Contracts)
I. GENERAL INFORMATION
Descriptive Title:
Sponsoring Program Office:
Approximate Dollar Amount:
j
Duration:
II. THIS CONTRACT REQUIRES ENVIRONMENTAL MEASUREMENTS
(If yes, complete form; If no, sign form and Yes No
submit with procurement request.)
III. QUALITY ASSURANCE REQUIREMENTS .
(Projects Involving environmental measurements) Yes No
a. Submission of a written quality assurance
(QA) program plan (commitment of the
offerer's management to meet the QA
requirements of the scope of work) is to
be included in the contract proposal.
b. Submission of a written QA project plan is
to be included in the contract proposal.
c. A written QA project plan is required as
a part of the contract.
d. Performance on available audit samples or
devices shall be required as part of the
evaluation criteria (see list on page 3-76)
e. An on-site evaluation of proposer's facili-
ties will be made to ensure that a QA system
1s operational and exhibits the capability
for successful completion of this project
(see schedule on page 3-76).
f. QA reports will be required (see schedule
on page 3-76).
* This form may vary in context depending upon the application
and originating office.
3-75
Second Edition - 4/84
Rev. No. 2-9/30/85
-------
IV. DETERMINATION (Projects Involving environmental
measurements)
Percentage of technical evaluation points assigned
to QA
Project Officer estimate of percentage of cost
allocated to environmental measurements
QC Reference Split Samples Required FREQUENCY
Parameter Sampling or Device for for
Measured Available Cross-Comparison Preaward Purina Contract
(Yes or No) (Yes or No) (Yes or No)
QA System Audits are required: Preaward ; during contract:
QA Reports are required: with Progress Reports ; with Final
Report
The signatures below verify that the QA requirements have been
established.
QA Officer:
Signature Date Signature Date
After signatures, a copy of this form must be included with the procurement
request and sent to the Contracts Office and a copy placed on file with the
QA Officer
3-76
Second Edition - 4/84
Rev. No. 2-9/30/85
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EXHIBIT3-2
Work Assignment Resource Worksheet
Task
68-CO-_ ___ _WA#:
PLLEVEy Travei
HOURS
WAM:
Photocopy Postage DeBvery Sub/Consult
Y/N Y/N Y/N
EST HOURS X RATE = EST COST
PROF LEVEL 4
PROF LEVEL 3
PROF LEVEL 2
PROF LEVEL 1
TOTAL DIRECT
LABOR OVERATE
FRINGE BENEFITS
sub-total (1) + above
OVERHEAD %
TOTAL LABOR OVERHEAD
RATE X BASE
(1)
(1) ABOVE
ABOVE $
(2)
(3)
(SUM OF 1,2&3)
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-------
ER DIRECT COSTS
WORD PROCESSING/COMPUTER (HOURS)
PHOTOCOPYING /^COPIES/PAGES
POSTAGE/DELIVERY
MEETING ROOM RENTAL #DAYS/#ROOMS"
A/V RENTAL
CONTRACTOR TRAVEL
TOTAL LABOR/OVERHEAD
(FROM PAGE 1)
TOTAL DIRECT COSTS
AND OVERHEAD (FROM LINE ABOVE)
(A)
GENERAL & ADMINISTRATION ( %)
TOTAL A & B
FEE(
(B)
(D)
TOTAL WORK ASSIGNMENT COST
A
PWTO:
ACCT:
(SUM C & D)
DCN:
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Work Assignment Resource Worksheet
WORKSHOP 68-C -0000 WA#:
Task
PL LEVEL
HOURS
Travel
Y/N
WAM:
Photocopy Postage
Y/N Y/N
PREPARE AMMfHINCPMPMT AfiEMPA 7 94.
Delivery
Y/N
ACQUIRE MEETING SPACE
AV PHI HPIUIFMT
24
PREPARE HANDOUTS
HP PV/AI
40
TAKE NOTES AT MEETING
40
PREPARE SUMMARY REPORT
40
PROJECTED LABOR BUDGET
EST HOURS X RATE = EST COST
PROF LEVEL 4
PROF LEVEL 3
PROF LEVEL 2
PROF LEVEL 1
TOTAL DIRECT
LABOR OVERATE
80
"88"
24"
192
RATE
FRINGE BENEFITS 35%
sub-total (1) + above
OVERHEAD 52%
OTAL LABOR OVERHEAD
31.85
"19.89"
"13.60"
"12.44"
$2,548
$1,750"
$ 326
BASE
(1) ABOVE
$6,242
$4,624
(1)
$1,618
(2)
ABOVE $3,246
(3)
$9,488
(SUM OF 1,2&3)
-------
-------
ER DIRECT COSTS
WORD PROCESSING/COMPUTER (HOURS) 50 HRS @$5.00/HR $250
PHOTOCOPYING ^COPIES/PAGES 2000 @ .10 $200
POSTAGE/DELIVERY $200 _
MEETING ROOM RENTAL #DAYS/#ROOMS $3XX)6 - "~
A/V RENTAL
CONTRACTOR TRAVEL
SUBTOTAL $8,150
$3,000
$1,500"
TOTAL LABOR/OVERHEAD
(FROM PAGE 1)
$9,488
TOTAL DIRECT COSTS
AND OVERHEAD (FROM LINE ABOVE)
GENERAL & ADMINISTRATION (18.5%)
TOTAL A & B
FEE (5.25%) C
$17,638
$ 3,263
.$20,901
$ 1,097
(A)
.(B)
(C)
(D)
TOTAL WORK ASSIGNMENT COST
A
HBfc):
ACCT:
$21,998
(SUMC&D)
DCN:
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INDEPENDENT GOVERNMENT COST ESTIMATE
(For Internal Use Only Not to Be Included as Part of the
Package that is Submitted to the Contractor)
I. Hours
(Note:
Refer to contract or PO for hourly rates and labor
classi f icat ions )
Labor Classification Rates per- hr X proposed brs. = cost
PL-4 Project Leader $54.00 140 $7,350
PL- 2 Scientist $32.00 2,080 $66,530
PL-1 Associate Scientist $26.00 200 $5,200
Total
2,420 $79,320
i
IX. other Direct Costs
(Note: Includes telephone, vehicles, office supplies, truck
repairs, field supplies, copier, and computer)
Assume 25% of direct labor costs = $19,830
III. Travel
Item Quant Rate Total
RT Smethport-NYC 1 Trip $292.00 $292.03
Per Diem + Lodging 5 days $146.00 $730.00
Ground Travel 5 days $ 40.00 $200.00
RT Boston-NYC 1 Trip $128.00 $228.00
Per Diem + Lodging 5 days $146.00 $730.03
Ground Travel 5 days $ 40.00 $203.00
Total $2,280.00
IV. Total Cost
Labor $79,320
Other Direct Costs $19,830
Travel S 2.280
$101,430
Fee (7% of Total Costs)* $ 7,100.10
TOTAL COST $108,530.10
* Refer to contract or Project Officer for fee percentage.
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CHAPTER IV
At the Helm
or
Managing the Work Assignment
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Chapter IV
Table of Contents
INTRODUCTION 1
SETTING UP A FILE 1
DAY TO DAY COMMUNICATION & PAPER TRAIL . 1
COMMUNICATION WITH SUBCONTRACTORS AND
CONSULTANTS , 4
COMMUNICATIONS WITH TASK MANAGER(s) AND POs ...... 4
CONTRACTOR COMMUNICATION AND FREQUENCY 5
ON-GOING ACTIVITIES 9
END OF YEAR ACTIVITIES 10
I NEED TO MAKE SOME CHANGES 11
ADDING SUBCONTRACTORS AND CONSULTANTS 11
WHAT TO DO IF THE INSPECTOR GENERAL DROPS BY 13
FIGURE 4-1 WORK ASSIGNMENT FILE 2
FIGURE 4-2 MONTHLY FINANCIAL REPORT . .8
FIGURE 4-3 MONTHLY TECHNICAL REPORT 10
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EXHIBIT 4-1 PHONE LOG
EXHIBIT 4-2 MEETING RECORD
EXHIBIT 4-3 WORK ASSIGNMENT STATUS NOTIFICATION
EXHIBIT 4-4 WAM DELIVERABLES REPORT
EXHIBIT 4-5 SUB-CONTRACTOR/CONSULTANT APPROVAL FORM
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Chapter IV At the
Managing the
Assignment
Helm or
Work
INTRODUCTION
The next stage in administration of a work assignment (WA) is the actual day-to-day
management of the work detailed in the contractor's work plan. Effective day-to-day
management of a contractor's work requires many different aspects. For example,
it is essential that a work assignment manager (WAM) maintain open lines of
communication with contractor's designated point of contact for the WA, monitor
delivery of products, dollars and hours and provide good technical direction (TD) (i.e.
direction which assists contractor in accomplishing statement of work) and provide
comments on and approve reports and deliverables.
or
Additionally, WAMs are expected to provide comments and input on draft and interim
products in a timely fashion. Another essential element in the day-to-day
management of contracts is to provide input to the project officer (PO) so that
payments to contractors can be made in accordance with the provisions of the Prompt
Payment Act. Finally, written records of the activities under a particular WA must be
maintained since they serve as your documentation on all aspects of the WA. This
chapter focuses on the activities required to manage a WA from day-to-day.
SETTING UP A FILE
Now that you have a WA in place with a work plan you should set up a file to
follow through your WA. A guide to setting up a WA file is shown in Figure 4-1.
For small WAs, files can probably be accommodated in a three ring binder or
accordion folder. For larger WAs with large deliverables (reports, studies, etc.) you
may want to set up in a file drawer cabinet. This choice is yours based on your
anticipated paperwork.
Chapter IV
January 13,1993
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Close-Out Evaluation
Review Notes on Defverabitt
Dellverables
Evaluation (if Award Fee)
Monthly Financial Reports
Monthly Progress Reports fTech)
Meeting Notes
Phone Log Summaries
Contractor Correspondence
Internal Correspondence
Govt Furnished Property
Work Plan & Approval
P Ft's
Work Assignment Amendments
Original Work Assign Package
Work Assignment
File
Figure 4-1
DAY TO DAY COMMUIMIC;
The technical monitoring by the WAM is crucial in assuring that the contractor
understands the work requirements and performs in a manner to produce quality
results within the time required. Throughout the period of performance the WAM will
often need to communicate with the contractor for the purpose of directing the effort
to ensure that the desired results are achieved. The WAM needs to check with the
PO to assure they have authority to provide TD to the contractor. TD should always
be in writing with a copy to the PO. (The TD clause allows for verbal TD if confirmed
in writing in 5 days) Note that WAN's cannot bind the government for additional
services or supplies so be careful not to mislead the contractor. The Government
could be bound to pay the contractor's costs for services rendered ("implied-in-fact"
contractKJL _____ __ _ _ . . .....,,
Remember that TD is
Chapter IV
January 13,1993
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"Direction to the Contractor which essists him in accomplishing the Statement of
Work".
Following are some do's and don'ts to assist you in communicating with the
contractor. Good communication ensures that everyone understands the WA and
planned approach. Communication can foster team spirit and commitment to the
project, keep a project going smoothly and can get a troubled WA back on track.
DO
o Keep a written record of communications with the
contractor and communicate at least weekly:
- By phone - See Exhibit 1 at end of this Chapter
- By meeting - See Exhibit 2 at end of this Chapter
- By written correspondence
o Meet with contract personnel at specified intervals. To eliminate
confusion, miscommunication and the potential for personal services,
you should establish at the beginning of the work the individual with
whom you should be communicating and always communicate with that
person. This is usually the WA leader. Confirm any TD evolving from
communication with the contractor by issuing a written technical
directive and minutes of the meeting.
YOU ARE PROBABLY COMMUNICATING ADEQUATELY WITH THE
CONTRACTOR IF YOU HAVE SEEN WRITTEN OUTPUT OR DISCUSSED
PROGRESS OF THE WORK WITHIN THE LAST ONE TO TWO WEEKS, IF YOU
FEEL UNCOMFORTABLE, AND ARE BEGINNING TO WONDER WHAT THE
CONTRACTOR IS DOING, YOU NEED MORE FREQUENT COMMUNICATION.
o Evaluate contractor performance throughout WA.
o Tell the contractor when they have produced a good interim product.
o Express your position clearly when the contractor has produced an inadequate
product.
o Keep written notes to the file and cc the PO.
Chapter IV
January 13,1993
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DON'T-
o DON'T -Create a Personal Services WA - a personal services WA results when
the Government assumes the right to instruct supervise or control a contractor's
employee in how he/she performs the work. (It is the contractor's right to hire and
fire, to assign and organize the work.) This is where good negotiation skills come to
play.
o DON'T-Direct the contractor to subcontract any portion of the work. The
governments' only direct contractual relationship is with the prime contractor.
o DO NT--Ask the contractor to do additional work outside the WA scope.
o . DONT-Direct the contractor to perform services which are "Inherently
Governmental" in nature. (Refer to EPA Order 1900.1 - Appendix C to this
manual). This is in direct violation of EPA contracting procedures. If you are
unsure meet with your PO to review services required.
o DONT-lncrease or decrease estimated cost of the WA. This may only be
done by the contracting officer (CO) through request of the PO. If you need to
change the hours see your PO.
o DON'T-Alter period of performance of WA. This may only be done by the CO.
o DON'TChange other express terms & conditions. EPA Procurement and
Contracts Management Division requires the contractor to immediately notify
the (CO) when any government action implies a contract change.
COMMUNICATION WITH SUBCONTRACTORS AND
CONSULTANTS
o Never Direct that any portion of work should be performed by a
subcontractor rather than prime contractor.
o Never direct the Prime to subcontract with a specific firm.
o There is NO DIRECT CONTRACTUAL RELATIONSHIP, (i.e. "Privity of
Contract") between EPA and any subcontractor. Because there is no
, "Privity of Contract" EPA may not communicate directly with its
subcontractors on contractual issues. (Whenever you are providing
TD to a sub-contractor, the prime contractor must be involved).
Chapter TV 4 January 13,1993
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COMMUNICATIONS WITH TASK MANAGER(s) AND POs
TASK MANAGER:
If you are managing a WA where other individuals are overseeing the technical
aspects of a task, it is important to communicate at least weekly with these
individuals. It is critical that your task manager(s) review the technical and financial
reports prior to your submitting your approval of costs to the PO. These individuals
have the greatest knowledge regarding the work being conducted under the task.
PO:
Interaction between the PO and WAM is critical to ensure effective contract
management. The PO is the first point-of-contact if you have any questions regarding
what is allowable under the contract. The PO can also assist in preparing the SOW.
The PO is also the individual to contact when you are dissatisfied with contractor
performance; when you need to amend a WA; and when you have carry over of two-
year money.
Monthly Activities
o Technical and Financial Progress Report
Good technical and financial progress reports will give the complete status of
all project elements; highlight the contractor's major accomplishments; point out any
problems or obstacles; propose any changes; discuss work to be performed/completed
during the succeeding month; and compare the level of effort expended to date with
that proposed and agreed to in the work plan. If you are not satisfied or if something
does not look right, discuss it immediately with the contractor.
If you cannot get the information that you need to properly evaluate progress in the
WA, notify the PO. Also notify the PO if you feel charges made are not in line with
work performed. If you don't challenge inaccuracies, they may later be considered
to have been accepted by you as accurate. Specifically you should review to ensure
o Who are the individuals who worked on the WA this month? Do I know what
they did? Are there any unexpected names?
Chapter IV
January 13,1993
-------
o Were deliverables submitted as scheduled during the performance period?
o The LOE charged is commensurate with progress (i.e. if they say they worked
for 40 hours does this seem right?). Does the mix of P-levels seem appropriate
for the work done?
o Are travel charges appropriate for the period? If there was a long distance trip
was it approved in the work plan?
o Are photocopying charges commensurate with deliverables received? (Are
you paying $1,000 for one copy of a 5 page document? Remember contractors
are not allowed to print and may only xerox 5000 of one page or a multiple of
25,000 for more than one page.
o Is computer time commensurate with needs?
o Is the level of subcontractor effort charged commensurate with the level of
progress made? (Note subcontractor charges often lag behind and may not be
included in the reporting period for which the activity took place.)
o Are dollars compatible with work completed for period of performance and to
date?
o Subcontractor Financial Report
The financial information that you get from subcontractors will vary depending
on the type of contract the prime has with the sub. If the contract is cost-plus you
should receive the same level of information as from the prime. If the contract is
fixed-price, the charges will be based on the percentage of work completed, usually
as reflected by hours charged. You should still be able to get detailed information on
the hours worked and by whom, travel if more than incidental, duplication pages and
charges.
Your review is important to (1) ensure progress toward your final product, (2)
enable payment for work performed to date, and (3) to set your project back on
course or make changes as a result of-findings thus far.
Chapter IV
January 13,1993
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A sample technical and financial progress report are shown in Figure 4-2 and 4-3.
o Invoices
The PO receives invoices from the National Contract Payments Division in North
Carolina and will review the invoice and recommend payment of the voucher based
on your feedback from review of the technical and financial progress reports. POs
have a review form for you to sign certifying that costs appear reasonable for work
performed. The Prompt Payment Act necessitates your review/feedback on the date
the PO requests.
o Payment of Award Fees
For cost plus award fee, an award fee plan is included in the contract. A
performance evaluation board (PEB) is established at the time of award. (PO is usually
Chair) These individual perform the in-depth review of all aspects of contractor
performance at periodic intervals (usually every 4 months). They then recommend an
appropriate amount of fee to be awarded to the contractor to the Fee Determination
Official (who is usually the Chief of Contracting Office). Usually WAMs are the
Performance Monitors. Performance Monitors submit reports for each performance
period. Events are reported on EPA Form 1900-41B.
ON-GOING ACTIVITIES
0 DELIVERABLES
The WAM is responsible for continuous monitoring of the contractor's
efforts in order to ensure satisfactory quality of work performed. This does not mean
taking charge of the contractor's work effort-it does mean:
(1) Using technical expertise to identify contractor actions or lack of action that
affect the quality of the work.
(2) Identifying and calling the contractor's attention to deficiencies.
(3) Keeping well-informed of what the contractor is doing.
(4) Working out appropriate action to remedy deficiencies.
Chapter TV ^ January 13,1993
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CONTRACTOR: Environmental Associates, me.
CONTRACT NUMBER: 68-C1-9999
PERIOD OF PERFORMANCE: Option I
Work Assignment: 23
Work Performed: July 1-July 31 , 1 992
DIRECT LABOR
Full time Direct Labor
Part Time Direct Labor
TOTAL DIRECT LABOR
OVERHEAD
Full time Direct Labor
Part Time Direct Labor
TOTAL OVERHEAD
OTHER DIRECT COSTS
Equipment Rental
Travel
Copying
Telephone
Long Distance 50.36
Postage & Delivery
Other Direct Costs
Consultants
Subcontractor
Material Handling
General & Administrative
SUBTOTAL
FEE
TOTAL FEE
TOTAL
4~2
Total WA LOE: 3000
Total WA Celling: $165,000
Per hour cost: $55.00
QUANTITY CAT.
350 HRS
40 HRS
390 HRS
90 % #
45 % #
31 HRS
300 PG
8 %
20
7A/_
TO
CURRENT
BILLING
6,268.00
660.00
6,928.00
5,641.20
297.00
5,938.20
94.55
1,368.00
24.00
80.56
27.00
191.00
2,200.00
176.00
2.930.26
19,957.57
1,397.03
1.397.03
21.354.60
CUMULATIVE
BILLING
23,618.00
1,320.00
24,938.00
21,256.20
594.00
21,850.20
387.50
2,855.00
168.00
256.13
82.00
568.00
4,586.00
366.88
10,220.97
66,278.68
4,639.51
4,639.51
70,918.18
Chapter TV
8
January 4, 1993
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CONTRACTOR: Environmental Associates, Inc.
CONTRACT NUMBER: 68-C1-9999
PERIOD OF PERFORMANCE: Option I
Work Assignment: 23
Work Performed: July 1-July 31,1992
Total WA LOE: 3000
Total WA Ceiling: $165,000
Per hour cost: $55.00
COST PER HOUR
HOURS
Robespierre
Jeanne Dixon
Enrico Fermi
Malthus
Emily Dickenson
Lee Thomas
TOTAL PRIME LOE
Consultant
Subcontractor
TOTAL LOE
F/PTIME P LEVEL
52.08
CURRENT
47.60
CUMULATIVE
F
F
F
F
P
F
4
3
2
2
2
1
20
10
160
80
40
80
390
20
80
10
500
300
80
480
1450
40
410
1490
Travel
Fermi - DC to Dallas
Malthus - DC to Dallas
TOTAL
3 da
3 da
100
100
396.00
396.00
Chapter IV
January 4,1993
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Figure 4-3
Monthly Technical Report
Work Assignment 01
Period of Performance June 1,1992 - June 30,1992
Level of Effort 1000
Hours Used: 500
EPAWAM: John Smith
CONTRACTOR WAM: Joe Blow
SUB CONTRACTOR: Waterworks
Statement of Work:
Work to be completed under this work assignment includes: a final draft of ...... document;
continued development of a guide; and preliminary investigations for techninai guidance.
Summary of Activities:
Meeting was held with EPA pn June 10. A draft of Chapter 2 and 3 was provided to WAM.
Literature search was begun for technical guidance.
i
Planned Activities Next Month:
Complete Chapters 4 and 5 and send to WAM for review. Continue literature search.
Project Status;
On-going
Problems:
None
Staff Changes:
Mary Louise win replace Karen Smith.
The quality of the contractor's output is also dependent upon the competence of its personnel.
In many cases, the best way to ensure quality of work performed is to ensure that personnel with the
necessary capabilities, qualifications and experience are assigned to the work effort. If you are unsure
of the personnel assigned to your WA. ask the PO if he/she has a resume or any information on past
performance.
functions are the contractor's, not the Government's." The WAM's role Is one of reviewing and
working with the contractor to remedy any inadequacies. Exhibit 4-4 may be used to evaluate the
deliverable and should be kept in your files for use during close-out.
Chapter JV
10
January 13,1993
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o What Do I Have?
In reviewing a deliverable received from the contractor look for the following:
o Are Major ideas expressed with clarity and power?
o Does the structure lead the reader sensibly through
the arguments?
o Is the deliverable in line with the original specifications?
o Is analysis sufficiently deep and clear?
o Is the material written accurately and clearly?.
o Is the tone and level of information appropriate for the target audience?
o Is the product technically accurate and valid?
o Are the data substantiated to your satisfaction?
o Is the design harmonious and pleasing?
o Where style and creativity are called for (videotape, training, updates.
brochures) are they evident?
If you have questions, contact the contractor and talk with the PO immediately. In many
instances a simple phone call will provide the answer.
o Know what you are going to ask
o Stick to your "agenda"
o Use non-confrontational language
o Summarize the agreement reached and write it down.
If you and the contractor can not come to an understanding, get the PO involved. Together
you can decide the best approach which may include a recommendation that the CO issue a stop-work
order or terminate the WA.
END OF YEAR ACTIVITIES
All WAs and work plans must be written for the "contract" year, (or "option
period") However, sometimes all dollars are not spent due to many reasons. If this
occurs, you must do a new WA for the dollars which "carry-over." Not all funds can
be carried over (i.e. single year funds), check with your PO early.
Any hours used in the new WA come from the option period for which the WA is
written. You need to make sure that your PO is aware that there will be carry-over
dollars by August 15, since carry-over dollars must be moved by the CO in
September.
A WA for carry-over funding requires the same paperwork as an initial WA. While
carry-over of work is common, it is best to plan your work so that it is completed by
the end of the option year.
Chapter IV 11 January 13,1993
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EXAMPLE OF CARRY-OVER FUNDING
NEED TO MAKE SOME CHANGES
Amending a WA
o For Additional Resources
- Procedures for adding additional resources as a WA amendment are the
same as writing an initial WA. The only difference being that an amendment usually
contains a much shorter SOW. Therefore in amending a WA you should refer back
to the section on Initiation of Work in this manual. However, a new WA, not an
amendment should be written if the scope is significantly different than originally
anticipated.
o For More Time at No Cost
~ An extension with no change to the estimated cost, requires only a cover
form (see Exhibit 3-1 in Chapter 3) and a new deliverable schedule. What you are
doing is amending the WA to allow the contractor more time to complete the effort
at no additional cost to the government.
ADDING SUBCONTRACTORS AND CONSULTANTS
o Subcontractors
- The Government's only direct contractual relationship is with the prime
contractor; there is no such relationship between EPA and any subcontractor at any
tier. What this means is that EPA has no right to deal directly with a subcontractor
on any issue, and the subcontractor has no right to obtain a direct decision of EPA.
The fact that the prime contract requires advance Government consent to a
subcontract does not remove the subcontractor from the non-privity rule.
Chapter TV
12
January 13,1993
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When a prime contractor requests approval to add a subcontractor to the
specific WA, you must review the request for technical competence, level of effort,
costs and rates and conflict of interest. (If the subcontractor rate is much higher than
that negotiated for the contract, it may cause the contractor to loose part of his fee
for the year. Both you and the contractor should be aware of this potential problem.)
Exhibit 4-5 is a check list to guide you through this review. If you are satisfied with
the subcontractor selected by the prime you should sign the attached form and submit
it to the PO. Subcontractors are added to the contract by the CO by modification of
the contract. Usually this can be accomplished within 2-3 weeks. In most contracts,
EPA approval of subcontractors for under $25,000 is not required. However, consult
you PO for the specific terms of the contract you are working under.
o Consultants
- Often in the performance of EPA contracts there is a need to bring in a
consultant with a particular expertise to assist in some aspect of the work. However,
hourly or daily rates charged by consultants are often prohibitive and not
commensurate with the technical benefits we might derive. Therefore, when the use
of consultants is anticipated as a possibility, the CO will insert a clause in the original
contract requiring the contractor to obtain EPA approval before a consultant is used.
Consultants are not included in the $25K threshold.
The technical qualifications of the proposed consultant, the benefits to be
derived from his or her use, the amount of usage, and the rate proposed, are all
reviewed by EPA. Exhibit 4-5 may also be used to perform this review. A contract
modification will be executed by the CO to approve the use of the consultant and it
will usually specify the fixed rate to be charged and set a limit on the number of hours
or days the consultant can be used.
The same rules that apply to directing subcontractors apply to consultant work. In
other words, EPA cannot direct the contractor to hire consultants or influence the
selection of such a consultant in any way.
NOTE: When the contractor requests an increase in ceiling for a consultant or
subcontractor which has previously been approved. You must also complete a
checklist (Exhibit 4-5) and ensure that hourly rate is not significantly affected for
overall contract.
Chapter IV
13
January 13,1993
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WHAT TO DO IF THE INSPECTOR GENERAL DROPS BY
The Inspector General Act of 1978 (P. L. 95-452), created the Office of
Inspector General (OIG). The OIG's role is to review EPA's financial transactions,
program and administrative activities, investigate allegations or evidence of possible
criminal, civil, and administrative violations and to promote economic, efficient and
effective operations within the Agency. The OIG is specifically authorized access
to all in-house records, reports, audits, reviews, documents, papers, or other materials
to help with its investigations.
In carrying-out its mission, representatives of the OIG will initiate independent
and objective audits and investigations which will sometimes require the assistance
of WAMs. When this occurs, WAMs must provide documentation, records and files
and discuss procedures, practices and transactions to assist the OIG in its
investigation. In such situations, a WAM must be helpful, cooperative and provide
information requested in a timely and forthright manner.
The OIG prepares reports based upon its findings. The draft report is reviewed
by the WAM and copies of the WAM's comments are sent with the report to EPA
management with an independent appraisal of whether desired results and objectives
are achieved efficiently, economically and in accordance with prescribed laws,
regulations, policies and procedures. The results of which are designed to improve
the administration of EPA programs.
For further information refer to EPA Manual 6500 "Functions and Activities of
the Office of the Inspector General". Check with the Senior Procurement Official
Assistant on where to view a copy of the manual.
WAMs who are aware of fraud, waste, or mismanagement in EPA contracting
practices should contact the EPA Inspector General Confidential Hotline (800) 424-
4000. Callers in area code 202 (or on the FTS network) may also use 260-4977.
Chapter IV 14 January 13,1993
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Chapter IV
Exhibits
4-1 Phone Log
4-2 Meeting Record
4-3 Work Assignment Status Notification
4-4 WAM Deliverable* Report
4-5 Sub-Contractor/Consultant Approval Form
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EXHIBIT 4-1
/
t-
t
u
Name: Date:
Company: Subject of Calf:
Phone Number:
Address:
FoIlowHip
Needed Summary of Conversation
*-
\
..*
_
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EXHIBIT 4-2
MEETING RECORD
CONTRACT NO.
CONTRACT:
DATE/TIME:
ATTENDEES;
PURPOSE/DESCRIPTION:
DECISIONS MADE:
NEXT STEPS (EPA, CONTRACTOR) (Actions to Take. Issues to Resolve):
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EXHIBIT 4-3
WORK ASSIGNMENT STATUS NOTIFICATION
CONTRACT NO:
WORK ASSIGNMENT NO.
PERFORMANCE PERIOD:
SUFFICIENT PROGRESS HAS BEEN MADE TO SUPPORT PAYMENT:
INSUFFICIENT PROGRESS HAS BEEN MAD&
("(COMMEND WITHHOLDING CALL) (PART) OF PAYMENT FOR THE FOLLOWING
HiWSOf"
)NS:
Signature (WAM)
Date
-------
EXHIBIT 4-4
Date:
WORK ASSIGNMENT MANAGER'S REPORT
ON DELIVERABLES AND PRODUCTS
Work Assignment Manager:
Work Assignment No.:
Contractor:
Contract No.:
Evaluation Period:
Program Area:
WA Amount:
Deliverable:
WORK PLAN REQUIREMENTS
YES
NO
Was Work Completed on Time?
Was Work Within Budget?
Quality
(Check one of the following, with 1 being the lowest score)
1234
Rate the overall quality of the product
Did Product Meet ali Requirements of,
the Work Assignment?
Did Product Need Serious Reworking? '
If no Product for this Quarter, Please Rate _
"Contractor's Progress
Please Indicate in Comment Section the Justification for Any Substandard
(i.e., ^ or 2) Score.
Comments:
CHECK ONE
WAM's FILES
PO's FILES
EPA LIBRARY
OTHER
LOCATION OF PRODUCT
LOCATION AND FILE NO. (Please Explain)
-------
EXHIBIT 4-5
OMMENDATION FOR APPROVAL OF PROPOSED SUBCONTRACTOR AND/OR CONSULTANT
WORK ASSIGNMENT NO:
CONTRACT NO:
SOLE SOURCE SOLICITATION:
If sole source dp you agree with the Prime Contractor method and reason for selection? If not. why?
TECHNICAL:
Does the attached resume/work plan demonstrate that the proposed consultant-subcontractor has
the expertise in the specific areas needed by the Work Assignment?
If reasonable, state that technical expertise is the primary criterion for this Work Assignment:
LEVEL OF EFFORT:
Is the level of effort proposed consistent with the Government's estimate for this Work Assignment.
Further, wOl approval of this consultant/subcontract adversely impact the cost of the contract In this
term.
If team subcontractor/consultant, do the hours proposed compare favorably whit hours negotiated at
time of award?
rate per hour comparable to other consultants and/or subcontractors possessing like expertise.
How does the rate compare with the rates for the P-X level negotiated in the contract?
The rates proposed are deemed reasonable based on program need, specialized qualifications, and
availability of the expert to perform services within the required timeframe.
Does the cost per hour proposed compare favorably with costs negotiated at time of award?
YES
NO
CONFLICT OF INTEREST:
Certification attached from recommended consultant or subcontractor.
rf no, why?
AGREEMENT:
A copy of the subcontract or consultant agreement is attached?
All required prime contract flowdown clauses are referenced in the subcontract agreement.
on the above, I recommend approval of the proposed subcontractor or consultant.
Work Assignment Manager (Date)
Project Officer
(Date)
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-------
CHAPTER V
Land Ahoy!
or
Closing Out
the Work Assignment
-------
-------
Chapter V
Table of Contents
INTRODUCTION
1
THE CLOSE-OUT PROCESS 1
EXHIBIT 5-1 OW WORK ASSIGNMENT CLOSE-OUT
EXHIBIT 5-2 CLOSE-OUT EVALUATION OF CONTRACTOR
-------
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Chapter V
Land Ahoy or Closing Out
the Work Assignment
INTRODUCTION
This chapter contains information on when and how to close-out a completed (or
interrupted) work assignment (WA). Close-out is the formal step assuring that no
further work will be done by the contractor on a particular WA. Note that little
information currently exists on close-out, therefore, most of the requirements stated
in this chapter are not Agency or OW requirements, but are OW recommendations.
THE CLOSE-OUT PROCESS
The EPA Contracting Officer (CO) is the person authorized to close-out a WA, but it
is the WAM's responsibility to notify the Project Officer (PO) that the WA should be
closed,
A. Reasons to Close-Out WA's:
1. To assure that costs do not continue to be assessed to your WA.
Unnecessary charges may include:
a. continuation of monthly reports
b. computer usage and other indirect costs
c. billed hours by contractor
2. To recover unexpended funds for use elsewhere;
3. To complete your files and (those of the PO and CO);
4. So you'll have one less thing to manage (until the next WAI).
B. When to Notify the PO of Close-Out:
1. Within 2 WEEKS of when the work has been completed.
-OR-
2. IMMEDIATELY AFTER a decision to discontinue the project. Examples
of reasons why this may occur are:
a. Lack of funding to complete the project
b. Change in program priorities
c. Poor quality or excessive costs
Chapter V
January 13,1993
-------
C. How to Close-Out the WA:
Confirm by reviewing WA and deliverables that the contractor has met all
requirements (if closing-out because work has been completed).
If close-out is due to a decision to discontinue the project, (6.2 above),
DOCUMENT the decision.
Verify with the contractor (verbally) the financial information in the latest
monthly report and indicate your intent to close-out the WA. If there is a problem
with the information (e.g., charges are excessive) try to resolve with the contractor
as you would other monthly reports. If problems persist, notify your PO.
Submit to the PO the following:
a. Completed OW WA Close-Out Request Form (Exhibit 1 provided at the
end of this chapter)
The PO will then submit this form to the CO who in turn will complete
the Procurement and Contracts Management Division closeout process.
The CO will provide a copy of the signed form to the PO to show that
closeout is complete, and the PO will send a copy to you (the WAM) for
your files.
Two Things to Remember:
1. Leave some money in the WA for lagging charges.
subcontractor and consultant charges can remain outstanding for months after
the work is performed. Work with your PO to determine the amount to leave.
2. If there is leftover money, indicate on the "Close-Out Form"
so that the remaining funds can be transferred back to the contract for use in
supporting another WA. By doing this you are helping to ensure that the funds
and capacity will be available for other projects. Also indicate on the
"Close-Out Form" which WA the funds should be transferred to if you know.
b. Completed Contractor Performance Evaluation Form (Exhibit 5-2
provided at the end of this chapter)
c. Copies of Final Deliverables
form the location of fmal deMvtrabtes {e^fi.;WA fItes in BM XXX, office library, other).
Chapter V
January 13,1993
-------
Work with the PO in collecting all government furnished property, (GFP). The PO will
provide you with further information on what qualifies as GFP.
D. Maintaining Records:
1. What to Save and for How Long: WAMs are responsible for record copy
of documents used for day-to-day technical direction of the contract.
Documents include work plans and schedules, draft deliverables
submitted by the contractor, comments provided to the contractor or
other records of technical direction, contract monitoring logs and
communication records, meeting records and notes, evaluation forms,
SOW and level of effort (LOE) documents. Copies should be kept in the
office 1 year after contract expiration or termination, then they can be
transferred to the Federal Records Center (FRC) to be destroyed in 7
years.
2. Retiring Files: Speak to your PO to arrange to retire your files 1 year
after the contract expires. The PO can assist you in contacting the
Records Management Staff for retiring files for storage.
NOTE: The Information Management and Services Division K>IRM) is in the
process of formulating a draft Agency control schedule on retiring contracts.
Chapter V
January 14,1993
-------
-------
5-7
5-2
Chapter V
Exhibits
OW Work Assignment Close-out Request
Close-out Evaluation of Contractor
-------
-------
EXHIBIT 5-7
OW WORK ASSIGNMENT CLOSE-OUT REQUEST
3. CONTRACTOR NO:
4. CONTRACTOR:
1. WORK ASSIGNMENT NO.:
2. AMENDMENT NO. (if applicable):
5. TITLE:
6. BRIEF DESCRIPTION OF CLOSE OUT:
7. LIST DELIVERABLES RECEIVED:
8. LOCATION OF DELIVERABLES:
9. COMPLETION DATE:
10. UNUSED DOLLARS:
APPROVALS
It: WORK ASSIGNMENT MANAGER:
Name:
Phone:
Branch/Mail Code _.
12: PROJECT OFFICER:
Name:
Phone:
Branch/Mail Code
13: CONTRACTING OFFICER:
Name:
Phone:
Branch/Mail Code
Signature
Signature
Signature
Date
Date
Date
-------
EXHIBIT 5-2
OW CLOSE-OUT EVALUATION OF CONTRACTOR
^ Contractor: Period Covered:
Contract Numb*" . Work Assignment Number! ^P
Work Assignment Manaaer
Protect Officer:
Ratings: 4-ExceOent 3-Very Good 2-Averaoe 1-Poor 0-1
IM «!< MrftiM4«j
insansfocfory
(Circle one per criterion)
Rate the Following:
1.
II.
^
111.
IV.
%.
" V.
Technical Performance
Level of creative contribution
Effective application of relevant
stotutes/regulations/guideOnes
' Resourcefulness
Adherence to scope of work
Effectiveness of project planning
Comments:
Personnel Assigned
Technical competence appropriate to project
Commitment to the project
Effective interaction, responsiveness
Appropriate mix of professional levels
Comments:
Dellverables/Reporting
Quality of product, thoroughness, adequate
technical detail
Minimal corrections/revisions required
Quality assurance by Contractor
Adherence to schedule
Comments:
Budget
Efforts to keep within budget
Early notification of potential overruns
Notification when 75% of budget expended
Adequacy of Monthly Reports
Comments:
Overall Rating for Work Assignment
4
4
4
4
4
4
, 4
:; 4
-" ' 4
4
4
4
4
4
4
Yes.
4
4
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
No
1
1
0
0
0
0
0
0
o ^
0 A
o W
0
0
0
0
0
0
0
0
VI. Miscellaneous Comments:
October 1992
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APPENDIX
A. ACRONYMS
B. GLOSSARY OF TERMS
C. EPA ORDER 1900.1
D. EPA ORDER 1900.2
E. WAM MODEL PERFORMANCE
STANDARDS
F. LABOR CLASSIFICATIONS
G. N EG OTIATION &
COMMUNICATION
H. CONFIDENTIAL BUSINESS
INFORMATION
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Appendix A
Acronyms
Tterisez
-------
-------
APPENDIX A
ACRONYMS
The following is an alphabetical list of all acronyms used throughout this
Handbook. Its purpose is to serve as a quick reference for those who may be
unfamiliar with the lettered shortcuts that are used commonly to signify terms and
phrases associated with the EPA acquisition/procurement process.
AC&C Abatement Control and Compliance
ADP Automated Data Processing
CBI Confidential Business Information
CFR Code of Federal Regulations
CO Contracting Officer
COI Conflict of Interest
CPAF Cost-Plus-Award-Fee
CPFF Cost-Plus-Fixed-Fee
CS Contract Specialist
DCN Document Control Number
EPAAR Environmental Protection Agency Acquisition Regulation
FAR Federal Acquisition Regulation
FDO Fee Determination Official ;
FMD-RTP Financial Management Division, Research Triangle Park, NC
G&A General and Administrative
GAO General Accounting Office
GFP Government Furnished Property
GPO Government Printing Office v
GSA General Services Administration
ICR Information Collection Request
JOFOC Justification for Other than Full and Open Competition
LOE Level of Effort
OARM Office of Administration and Resource Management
ODCs Other Direct Costs
OFPP Office of Federal Procurement Policy
OMB Office of Management and Budget
OW Office of Water
P-LEVEL Professional Level of Contractor Staff
PCMD Procurement and Contracts Management Division
PEB Performance Evaluation Board
P.L. Public Law
-------
PO Project Officer
PR Procurement Request/Order
PRA Paperwork Reduction Act
QA/QC Quality Assurance/Quality Control
RFP Request for Proposals
S&E Salary and Expenses
SF Standard Form
SOW Statement of Work
SPO Senior Procurement Offical
SPOA Senior Procurement Official Assistant
TD Technical Direction
TEP Technical Evaluation Panel
TOC Table of Contents
WA Work Assignment
WAM Work Assignment Manager
-------
Appendix B
Glossary of Terms
-------
-------
APPENDIX B
GLOSSARY OF TERMS
Annual Appropriations
May be obligated only during the fiscal year covered by the Appropriation Act.
Unobligated funds are lost to the Agency (e.g., EPA's S&E appropriation)
Multi-year Appropriations
May be obligated during a specified period in excess of one year, but may not
be obligated after the life of the funding. (These are usually two-year appropriations
e.g., EPA's R&D and AC&C appropriations. R&D's number is 689/00107.) However,
these funds must be recertified when using a prior year account number.
No-year Appropriations
Are "on-going" funds and may be obligated until the appropriation is exhausted.
Funds not obligated remain with the Agency and do not lapse back to the Treasury
(e.g., EPA's Superfund appropriation). However, these funds must be recertified
when using a prior year account number.
Bona Rde Need Rule
A fiscal year appropriation may be obligated only to meet a legitimate or bona
fide need arising in the fiscal year for which the appropriation is available.
Issue: This rule comes into play when you have end of year funds that you,
either must obligate or lose.
Carryover Funds
Funds that are not obligated by the end of a fiscal year and which may be
obligated in the next fiscal year. They include unobligated balances in no-year and
two-year appropriations. Carryover funds may be used in the current fiscal year on
either contract actions brought forward from the previous year, or on new
procurement actions.
Cost-Plus-Fixed-Fee (CPFF)
This is the most prevalent type of cost-reimbursement contract awarded in this
Agency. Under this arrangement, the contractor is paid a negotiated fee that is fixed
at the inception of the contract. The amount of fee does not vary with actual cost,
but stays fixed unless adjusted as a result of changes in the work to be performed.
-------
Cost-Plus-Award-Fee {CPAFJ
A CPAF contract provides for a fee consisting of 1) a fixed base amount, and
2) an award pool, the amount of which awarded is based upon a subjective,
judgmental evaluation by the Government of the contractor's performance. Areas
such as quality, timeliness, ingenuity, and cost effectiveness are evaluated by EPA in
accordance with established criteria. The amount of award fee to be paid is decided
at stated intervals (usually every quarter or trimester) during contract performance.
The overall objective is to motivate the contractor in a positive way to improve poor
performance or to continue good performance. This type of contract is considered for
use when the expected effort is anticipated to exceed $5 million and a cost-
reimbursement contract has been selected. However, it may be used for contracts
of any dollar value. Most Superfund cleanup contracts are CPAF contracts.
Commitments
The reservations of funds for specific projects or services to be procured. The
term refers to funds which have been submitted for obligation processing and entered
in the Financial Management System (FMS) prior to formal obligation.
Conflicts of Interest
Organizational conflict of interest (COI) exists when an offerer or contractor for
any of a number of reasons has interests relating to the work to be performed under
an EPA contract which (1) may diminish the impartiality, objectivity, and soundness
of assistance and advice or otherwise bias work product, or (2) result in an unfair
competitive advantage.
Personal COI exists when an EPA employee's judgment or actions in
procurement may be improperly influenced or biased in favor of a particular contractor
for reasons such as ownership of stock or relationship to employees of the contractor.
Contracting Officer (CO)
That individual who because of business, administrative, leadership, and
technical skills and capabilities is assigned by EPA as responsible for assuring that
contracting is done as authorized by law and regulation. The CO is appointed by the
use of a Contracting Officer's Warrant and is the only one authorized to commit the
U.S. Government through contracting.
-------
Contracts
Legal documents between two or more parties which are used to acquire and/or
deliver real property or services. In EPA, R&D contracts, program contracts, ADP
service contracts, and other contracts and contract modifications processed and
administered by the Procurement and Contracts Management Division (PCMD) in
Headquarters, and the Contracts Management Divisions in Research Triangle Park
(RTP) and Cincinnati are included under this definition. Purchase orders, construction
contracts under $2,000, delivery orders under the Federal Supply Schedule and other
agencies'contracts, cooperative agreements, grants, interagency agreements, training
and tuition contracts, printing contracts, and other contracts not administered by the
three contracting offices are not covered in this Handbook.
EPA Acquisition Regulation (EPAAR)
That portion of 48 CFR (Code of Federal Regulations) Chapter 15 that identifies,
by addition and exception, specific EPA implementation of the law and the FAR.
Federal Acquisition Regulation (FAR)
The primary regulation for use by all Federal agencies in the acquisition of
supplies and services.
Fee Determination Official (FDO)
That individual assigned responsibility for arriving at determinations regarding
a contractor's entitlement to portions of the award fee pool under a cost-plus-award-
fee contract, such determinations being made at specified times during the period of
contract performance based on evaluation and assessment findings of a performance
evaluation team.
Full and Open Competition
The standard for use in Government acquisition, full and open competition
means all responsible sources are permitted to compete.
Justification for Other than Full and Open Competition (JOFOC)
The formal document prepared by the requiring activity substantiating and
justifying that a particular procurement should be conducted on a non-competitive or
a limited competitive basis for certain specified reasons.
-------
Level of Effort (LOE)
An expression of the number and type of employee-months or hours that the
Government is purchasing under a contract. In a term type contract, the level of
effort will be based on the period of performance.
Obligations
The result of executed contracts or other legal promises to lease, purchase
and/or deliver real property or services. Obligations occur when contracts or other
legal documents are signed by the parties involved, and submitted to financial
management for recording and official designation of funds in accordance with the
terms of the contract. A contract or other document is referred to as an obligating
document.
Procurement and Contracts Management Division (PCMD)
The organization responsible for EPA contracting, which has operations offices
in Washington Headquarters, Research Triangle Park, and Cincinnati, Ohio.
Procurement Request (PR)
The document prepared by a requiring activity containing the information
necessary to permit contracting. EPA Form 1900-8 (Procurement Request/Order) with
accompanying instructions.
Technical Direction
The exercise of authority by an individual named and specifically authorized by
the contract to direct the performance of the contractor within the expressed scope
of work found in the contract, so long as such direction does not assign additional
work, constitute changes to the contract, increase or decrease agreed-to estimated
cost or price, or alter the agreed-to delivery schedule or any other terms and
conditions of the contract.
Work Assignment
Objectives What you want to have accomplished by or through a Work
Assignment. They are the first things to be determined.
Tasks The steps that the contractor must take to accomplish the
objectives. Tasks are measured in terms of hours.
Delh/erables The products, goods, or services which the Agency is
buying from the contractor. Many deliverables for the Office of Water (OW) are in the
form of documents.
-------
Appendix C
Use of Contractor Services
EPA Order 1900.1
Septarterim
-------
-------
Appendix C
Use of Contractor Services
EPA Order 1900.1
Sep*rrta1992
-------
-------
Appendix C
Use of Contractor Services
(EPA Order 1900.1)
1. Purpose
As more and more activities require contractor support to be furnished
on-site at Government facilities, the question of whether these contracted
actions are personal or nonpersonal in nature continues to arise. The
Government is normally required to obtain its employees by hiring
through personnel channels. Therefore, the procurement of personal
servicesbycontractisprohibitedunlessspedficallyauthoiizedbystatute.
This Order is designed to assist you in avoiding personal services
arrangements in your contract activities.
2. Responsibilities
Contracting Officers, POs, Delivery Order Officers, and all other EPA
personnel are responsible for ensuring that personal services relationships
between Government and contractor employees are avoided.
3. Definition
Personal services contracts exist when the nature of the relationship
between the contractor and the Government can be characterized as an
employer-employee relationship. An employer-employee relationship
exists when either by the terms of the contract itself, or because of the
manner in which the contract is managed* contractor personnel are
subject to the day-todaysupervisionandcontrolofGovemmentpersonnel.
4. Assessing the Personal Nature of a Contract
While one of the most important elements to be avoided in a contractual
relationship is the supervision of contractor employees by Government
personnel (see f. below), the Federal Acquisition Regulation (FAR
37.104(d)> provides other descriptive elements which should be used as
a guide in assessing whether or not a contract is personal in nature. All
of these elements need not be present to have an improper personal
services arrangement:
Septen*er1992 C' 1
-------
a. Performance on-site.
b. Principal tools and equipment furnished by the Government
c. Services are applied directly to the integral effort of the Agency or
an organizational subpart in furtherance of assigned function or
mission.
d. Comparable services, meeting comparable needs, are performed
in the same or similar agencies using civil service personnel.
e. The need for the type of service provided can reasonably be
expected to last beyond one year.
f. The inherent nature of the service, or (he manner in which it is
provided reasonably requires, directly or indirectly, Government
direction or supervision of contract employees in order to:
(1) Adequately protect the Government's interest;
(2) Retain control of the function involved; or
(3) Retain full personal responsibilities for the function supported
by a duly authorized Federal officer or employee. ' *
5. Principles for Managing a Contract
a. The contracting officer is responsible for determining prior to
award, mat the contract does not involve the procurement of
personal services. But, even though supervision by Government
employees is not directly required by the terms of the contract, a
personal services situation can develop through improper contract
management
b. Technical management generally relates to the manner in which
work direction is given. Interchange of inf orma don of a technical
nature is not prohibited. In managing the contract, however, the
following principles should be observed:
(1) Insofar as possible, let the contract define the job. This can best
be accomplished when the contract contains a definitive
statement of work.
(2) When the job scope must be changed, notify the contracting
officer immediately so that the appropriate contract changes
may be issued.
__._ - ___
-------
(3) When the job definition requires interpretation of the work
description or other direction which is dearly within the
project officer's authority, make sure that such direction is
issued from the PO to the appropriate contractor contact person
in the form of a written technical directive. Do not give any
instructions to individual contractor employees.
(4) Prepare memorandums for the record of all meetings, trips,
and telephone conversations relating to the contract
(5) Ensure that all contractor and all EPA occupied space is readily
identifiable. Generally, on site contractor employees are
physically located in separate areas from Government
employees. In isolated cases where a general area must be
occupied or used by both EPA and contractor employees, some
sort of physical separation, identification of space, and
scheduling of equipment usage should be arranged.
(6) All requests for contractor follow-up or touch-up services
should be directed from the PO to the contractor's project
manager. Likewise, contractor employees mustoperate through
the contractor's supervisor to obtain any information needed to
complete the work product >
(7) Strictly avoid situations in which one EPA on-site contractor
provides support to another EPA on-site contractor, except
where the contract requires such support to be furnished (e.g.,
janitorial services, security services, etc.).
(8) Strictly avoid Government intervention with respect to hiring
or firing of employees or assigning particular employees to
specific tasks.
6. Additional Guidance
a. A comprehensive paper on the use of contractor services which
was prepared by the VS. Department of the Navy follows. This
paper further illustrates proper use of contractor services. (See
Attachment 1)
b. As in any contract situation, you are encouraged to contact your
contracting officer for advice and guidance as required on a case-
by-case basis.
Septentoer 1992 C- 3
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APPENDIXC
Attachment 1
"GUIDE FOR USING CONTRACTOR SERVICES"
U.S. Department of the Navy
Basically, we do our work in the Department of the Navy two ways: "in-
house" with military and civilian personnel, or "out-of-house" by contract.
Which way it is done is a decision based on policy, practicality, and law.
Generally speaking, it has been Government policy for a number of years
to perform commercial or industrial activities by contract unless some
compelling reason-such as military readiness, security, or economy-
warrants bringing the job "in-house." Which route to follow is the subject
of other Office of Management and Budget, Department of Defense, and
Department of the Navy instructions, and is notatissue here. Our concern
here is only that, if a decision is made to let a contract involving services,
we make it properly, and use the services properly.
The fundamentals are these. It is perfectly proper for the Government to
purchase by contract what may be described as a finished product-a
piece of hardware, a defined piece of research, or a report. Unless
Congress has passed a specific statute to authorize something different,
the Government may not contract out for the services of people who
receive their assignments from Government personnel, work under the
direct supervision of Government personnel, and whose relationship to
the Government is thus no different from that of aGovernmentemployee.
Where die Government wishes to procure services in this fashion, it must
hire the people directly, in accordance with the Civil Service Laws.
A finished product versus personal services-these form the two ends of
the spectrum. The one may be procured by contract; die other may not
In between are situations where the Government does not want to hire
people, yet the work it needs to have performed is essentially just
labor-cleaning, painting, or operating a radar station. In these situations,
the Government may still obtain the work by contract, providing two
conditionsaremet: (1) the contractmustaskfor the finished product only,
and (2) the contract must be administered in such a way mat control and
supervision over the work and discretion of the techniques which will be
Septerrter 1992 cTs
-------
used remain solely with the contractor. Inotherwords,if the Government
wants a building painted, it defines the job, lets the contractor paint the
building as he sees fit and then accepts it or rejects it solely on the basis
of whether die completed job meets the specifications. This would be a
perfectly legal contract for a finished product. On the other hand, if the
contractual arrangement with the painting contractor is such that he is
really only providing us with painters whom we direct and supervise as
we would our own military or civilian employees, then the contract
would be for personal services and would be illegal. In that case, the
Government would, in effect be "hiring" employees without regard to
the Civil Service System. That it may not do, and that is the reason all
service contracts must provide for a dearly defined task or job.
The Problem:
A contract may thus cross over into the forbidden area either because of
the way it is written or because of the way it is administered. The former
would not occur very often. ASPR, Armed Services Procurement
Regulations, provides adequate guidance and procedures which, if
faithfully pursued, will insure that every contract for services is in fact
legal on its face. But even the best-written contracts can later be ruled
illegal if they are not administered properly. Good, intelligent contract
administration is really the key to avoiding personal services problems.
In essence, a forbidden personal service contract results when the
Government assumes the right to instruct supervise, or control a
contractor's employee in how he performs his work. It is one thing, for
example, to sit down in a restaurant order a steak medium rare, and
accept it or reject it when it arrives. It is quite another to insure that it is
cooked to satisfaction by going out to the kitchen, looking over the chefs
shoulder, and telling him how to adjust the flame, when to turn the steak
over, and how to season it When the Government exercises this sort of
direct supervision and control over contract personnel, it is using them as
if they were its own civil service or military personnel Control such as
this-however well-intentioned-renders the services personal and the
contract illegal.
How, then, can personal services problems be avoided? The answer must
begin early with contract planning, because these problems are far easier
to prevent man to cure.
Pre-Contract Planning:
In planning the contract, the contracting officer must receive a great deal
of willing ccoperationfromall hands-technical personnel, legal personnel,
and especially the usersthose with the requirement for the proposed
services. Under ASPR, before the contracting officer may enter into a
C-6
September 1992
-------
service contract, he must make a written determination that the services
arenonpersonal. To do so, he mustrely almost completely upon the users
for the facts he needs, because only they can provide them. As the first
step, therefore, the contracting officer must learn the whole story-all the
circumstances of what the services are to be and how they will be used.
In view of his responsibility for making the procurement he deserves-
and has every right to receive-the users' fullest assistance and candor.
Second, the users must provide the contracting officer with a detailed
description of the job they want done. Since the contract must be couched
in terms of providing the Government with some sort of finished product
this is the information that will be nejeded to draft proper specifications,
task orders, or work assignments. Although it is the job of the contracting
personnel to reduce this information to contract format, it is the job of the
users to explain precisely what work they want performed
Third, mere must be a review of all the collateral circumstances which
might have a bearing upon whether an illegal personal services contract
has been created. Although the key factor is the degree to which the
Government exercises control and supervision over the performance of
the contract, the Civil Service Commission's opinion, as well as rulings of
the Comptroller General, also look to related circumstances which, by
their very nature, go hand in hand with the exercise of Government.
control over contract performance, ,.-"' '
An example might be a contract under which the contractor is provided
with articles of Government property. While it is not unusual for the
Government to furnish equipment or material for use in performing its
contracts, what is furnished is usually specialized or otherwise difficult
for the contractor to provide for himself. If, instead, the Government
furnishes something ordinary like office equipment, drafting tables, or
typing paperthe sorts of things any employer ordinarily provides his
own employees-then, if unexplained, an inference may be drawn mat the
Government is treating the contractor's employees as its own.
Similarly, our civilian employees or military personnel generally work
on-site, whereas a contractor's employees usually do not Thus, providing
the contractor with office space at a Government location might lend
weight to an inference that his employees are, in effect Government
employees. By the same token, the work should be planned to avoid a mix
of Government and contractor personnel so that they are not working
side-by-side under similar conditions and supervision. It should be
cautioned, however, that a determination of personal services would still
be found in cases where these personnel-al though physically separated-
were all performing the same work and were otherwise interchangeable.
The same would be true where succeeding contracts with different firms
September 1992 C-7
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. t'lllllttltlttltt - iJtttlll,1,1,1 jft~
Included provisions for orderly changeover of key personnel, and the
same contract employees were found doing the same work at the same
desk year after year; And personal services have even been found, in
incentive or award fee contracts, where the evaluation of contract
performance was made, not upon the whole job, but rather upon the
separate performance of individual contractor employees.
Factors like these are important because each such piece of circumstantial
evidence may contribute to a later conclusion that the services concerned
are personal. All of them pertain to supervision and control; and they are
weighed according to the extent of their contributions to actual
Govemmentcontroloverthe contractor's personnel. Taken together and
viewed objectively, they may give practical appearance that contract
employees are being treated as is they were actually Government
employees.
In the planning stage, then, requirements, technical, and contracting
people should pursue every effort toward eliminating as many such
factors as they can. None of them alone would necessarily be fatal to the
contracfslegality,andsomeofuemirughtmdeedbeabsolutelynecessary
and, therefore, inevitable. It is important to realize, however, that these
ancillary factors can be critical to the result and that they can be
effectivelyprovidedforonlyinadvance.IftheyarecarefuUyconsidered
during the planning stage, and if mere are good reasons for providing
me contractor with tools, or working space, or doing anything else which
might imply Government supervision or control, then the contract can
provide for them, and later be administered, in a manner which will be
proper and will not be susceptible to drawing an inference of personal
services later on.
The Contract:
The sort of planning described above should provide the contracting
officer and his staff with all they need to know about the actual
requirements,in order toreduce mem to dearly defined work statements.
They must, then, in. dear, understandable language, set forth exactly
what the Government wants to have done. They must provide in the
contract all the specifications or instruction the contractor needs, both to
undertake and to complete the job. This will insure that the Government
has the right to expect an acceptable end product without the need for
control over the way the contractor goes about his work.
It is not enough, however, to write something like "furnish such assistance
as is or may be necessary to support the overall mission of the activity/'
or "update and revise 40 drawings in accordance with the oral instructions
of me division supervisor or his duly authorized representative." The
contract, or the task orders or work assignments written under it, should
C-8 September 1992
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adequately describe the job to be done so thatfurther informal direction
is unnecessary. This, of course, does not mean that they cannot be
formally modified or amended, if needed.
Furthermore, the contract must avoid creating in the Government a
specific or even an implicit power to hire or fire the contractor's
employees. It is always permissible to retain the authority to require
security clearances or other legitimate and relevant administrative
controls, but it must not go beyond that The contractor, for example,
may be required to accommodate himself and his working hours to our
daily business routine if he is working on-base, whereas it would be
improper to impose such a schedule upon work he performed on his
own premises. And it goes without saying that the contract must not
provide for Government supervision or control over the contractor's
staff.
Nor will theindmionof artifidalprcxcduresforcontractadministration
remove the Government from a situation of supervision and control if
one actually exists. It is no use, for example, to provide art elaborate
organization in the contract for the transmission of work assignments
on a supervisory level if, in practice, it is to be phoned from a
Government draftsman to his contractor counterpart And even where
such conduits have actually been used in contract administration, they
have been viewed as mere camouflage where the alleged supervisors
or technical directors were so untrained or unskilled as to be incapable
of direction and were, at best, only figureheads. It may be helpful for
the contract to make it clear that the contractor is providingmanagement
or judgment as well as personnel, but only if that is truly the case. To
repeat what was said earlier, writing a legal contract is not the end of
the road. The heart of most personal services cases has been contract
administrationwhat actually happened-not withstanding the niceties
of the written contract terms.
Contract Administration:
What, then, are the pitfalls of contract administration? Essentially, the
Government must keep "hands off' the contractor's employees during
the course of contract operations, in order to avoid sliding into the area
of supervision and control. Does that mean that, after the contract is
signed, there can be no further contact with the contractor or his staff?
The answer to that is obviously *T4o." In the course of almost any
contract performance, there must be some dialogue between both sides.
Complete insulation from one another is as unnecessary as it is
undesirable.
The permissible range of dialogue between the Government's
representatives and the contractor's representatives is whatever liaison
Sapterrter 1992 C
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mzz
and discussion or explanation is necessary to carry out the traditional
processes of contract administration. We have inspectors and quality
control personnel, for example, and their work cannot be done in a
vacuum. Itusuallyrequires contract and communication to be useful, and
this is entirely proper. And we usually assign personnel in a liaison
capacity, not only for surveillance and to keep us apprised of progress, but
also fora contact through whom the contractor can relay his questions or
problems. It is a rare contract that does not involve answering questions
about the Government's specifications, and this, too, is a legitimate liaison
function.
In addition, the Government is generally concerned about the contractor's
delivery scheduie-whether he will have the work performed on time.
Accordingly, the contract milestones are important, and insuring that
they are met may demand prodding and reminding of many shapes and
forms, lake the liaison and inspection mentioned above, mis can be done
properly as well, because it does not involve the exercise of supervision
or control over the individual employees. In all proper administration
functions, Government representatives do not dictate what or how the
contractor is to perform. The "what" is set out in the contractor's
responsibility. In their contract administration roles, our personnel
should primarily be policing die written terms of the contract and
assisting the contractor when necessary to insure that the Government
receives the job it bargained for on time. Contractadministrationbegins
to run afoul when our representatives go beyond the terms of the contract
By telling the contractorwhat to do,they maybe subjecting the Government
to claims for changes. That is another matter. But by directing how to do
it, they are crossing the line into a personal services situation. Then they
are beginning to exercise supervision or control. When the inspector,
liaison officer, or any other Government representative turns from
surveillance to supervision, he begins to use the contractor's employees
as if they were Government employees, and is well on the way to
transfonning the contract into one for personal services. Often, mis arises
from no more man a well-intentioned but overzealous desire upon the
part of lesponsiblaGovernment of ficials to achieve near perfection in the
services obtained^^ock.overzealousness must be restrained.
After aE, it is the contractor's privilege to do the job however he sees fit,
so longas he stays within the terms and conditions of the contract Unless
the contract legitimately provides otherwise, it is not our business
whether he does the work with one computer or 200 men, which
employees work on which assignments, or whether they work nights or
mornings, or whether they do task A before task B, or vice versa. It is the
contractor's right to hire and fire, to assign and organize the work-in
short, to run his own company. The moment the Governmentusurps mat
right and begins to tell his personnel what to do next or how to do it, then
C* 10 September 1992
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-. t'ttnti 111 tmii^. f
it has started down the slippery slope towarda personal services situation.
This illustrates the rule for illegality, but it also must be understood that
the greater the technical direction to the contractor, the greater title
responsibility for successful performance is assumed by the Government
This situation is not desirable because it not only compromises the
Government's rights to enforcement of the contract's provisions, but it
also transforms an otherwise proper contract into an illegal one.
Sometimes it is the actions of the contractor himself which will cause the
contract to cross over into the forbidden area. By being overzealous in
attempting to be responsive to the Navy organization with which he is
working, the contractor may initiate contacts which result in Government
control or supervision over the work being performed. In other words,
where thecontractor himself continually asks the Government for direction
on how to carry out the various tasks required by the contract, the
Government may end up, in effect, supervising the performance of the
work. This type of situation must be guarded against
The contractor's employees should always be looking only to their own
superiors for instructions, and they, in turn, must look back to the written
terms of the contract. This chain of responsibility must exist throughout
the performance of every contract, and it reemphasizes the need discussed
earlier for giving meticulous attention to the contract work statements,
task orders, or work assignments at the outset. And it further underlines
the need for assuring that the contract preparation is a genuinely
coordinated effort by everyone involved-the users, technical staffs,
contracting staffs, and lawyers-so that, with the input from them, all the
work to be performed is so dearly and accurately spelled out there will
be neither need nor temptation to slide into the easy trap of supervising
any stage of the job.
Statutory Exception:
As was mentioned at the beginning, these rules of contracting must be
followed in every service contract unless there is specific authority from
Congress to proceed otherwise. There may be situationsand they do
arise from time to timewhen it is desirable for the Government to have
precisely thatsort of supervision and control which is generally improper,
'and where the shortdurationof the work dicta tes against hiring employees
under Civil Service.
September 1992 C-If
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Appendix D
Contracting at EPA
EPA Order 1900.2
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Appendix D
Contracting at EPA
(EPA Order 1900.2)
1. Purpose
This Order establishes Agency policy that (1) prohibits contracting for
certain activities at EPA and (2) implements special management and
control measures when contracting for certain sensitive services.
2. Background
EPA relies heavily on contractor support Nearly every EPA employee is
involved with the contracting community in one way or another. Thus,
in a very real sense, most EPA employees, including senior management,
can be considered contract managers.
Agency responsibility and accountability begin when a decision is made
to use contract support And, having accepted a final product from a
contractor, EPA becomes responsible for its content and for how it may
be used in reaching Agency decisions.
The extent of the Agency's contracting, coupled with its regulatory
nature, create a strong potential for conflict of interest with members of
the contracting community. This problem is magnified when a limited
number of contractors provide support in a variety of potentially sensitive
areas. EPA must consider these facts when developing its contract
requirements. It must be judicious in deciding the most effective ways to
use its contractors and lookfor ways of reducing the potential for conflicts
of interest. And, if contract support has been used, EPA must play a
proactive role in ensuring a final Agency product that is unbiased and
represents Agency thinking. The final product provided under a contract
may assist EPA in reaching a decision; however, a contractor should not
make the decision for the Agency.
OMB Circular A-76 defines inherently governmental activities as those
"being so intimately related to the public interest as to mandate
performance only by Federal employees." Agency employees must
ensure that inherently governmental activities are performed only by
EPA employees.
September 1992 0- >
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,1'iintiiftttnti _-'.
NOTE: For purposes of this Order, "active contract managers" are
denned as POs, Deputy ProjectO£ficers,WAMs,Reinedial Project Officers,
On-Scene Coordinators, Delivery Order Officers, and Delivery Order
Project Officers. "EPA managers" consist of senior management not
directly involved in contract management
3. Policy
a. EPA will not allow any of the following to be performed under its
contracts:
(1) The actual preparation of Congressional testimony.
Although it is permissible for a contractor to perform basic
research and retrieve factual data for the Agency in its
development of Congressional testimony, it is the ultimate
responsibility of EPA to develop and issue it The Agency
spokesperson must present testimony that is free from any
contractor bias and any real or potential conflicts of interest
Therefore, even if prelimi-nary research is performed by a
contractor, itmust be carefully examined by Agency personnel
for any contractor partiality, favoritism, and conflicts of interest,
prior to its incorporationinto the testimony. The final document
must be prepared by Agency personnel to ensure that it fully
represents the briefing materials to congressional staffers.
Finally, if workis issued to a contractor for testimony support,
it is important that the statement of work for the assignment
reflect that these Agency limitations have been established.
(2) The interviewing or hiring of individuals for employment at
EPA.
Both of these activities are inherently governmental duties
involving judgment and discretion and a legal commitment
on the part of the Government They must remain under the
sole authority of EPA.
(3) Developing and/or writing of Position Descriptions and
Performance Standards.
These activities are key to the effective staffing and operation
of EPA and are supervisory/management responsibilities.
Outside technical expertise specific to a certain profession
D-2 September 1992
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may sometimes be necessary but contractors should not write
our position descriptions. Similarly, contractors should not be
used to determine how the performance of EPA employees
should be evaluated.
(4) The actual determination of Agency policy.
This prohibitiondoes not preclude contractors from providing
support in the policy development process. However, it does
preclude contractors from participating in the final phases of
policy development, Le., being involved in the actual decision-
making of what Agency policy will be. Contractors may
appropriately be used in the stages of policy development
which involve doing background research or performing
options analyses. If such support is provided by a contractor,
it must be carefully examined by Agency personnel for
partiality, favoritism, and any contractor conflict of interest In
all cases, there should be a clear record that the contractor's
work was reviewed and mat final decisions were made by
Agency personnel. Such a record could be demonstrated
through notes from reviews of draft and final documents by
EPA personnel, minutes .from progress meetings with
contractors, reports from EPA peer and board reviews, etc.(5)
Participating as a voting member on a Performance Evaluation
Board; participating in and/or attending Award Fee meetings.
The assignment of an evaluation score and the making of
recommendations of profit/fee payments by one contractor
for another are clearly conflicts of interest All functions
relating to the decisions of award fees are inherently
governmental and should be performed exclusively by Agency
staff. However, contractors may provide specialized technical
expertise as input to the Board prior to the actual evaluation
meeting discussions. The key determining factor is the nature
ofthesupport;inallcases/itshouldbecontractor'sperformance.
For confidentiality reasons, no contractor may be present
during the Board meeting. Any opinions expressed as the
result of a Performance Evaluation Board should be those of
the Government Additionally, due to the subjective and
confidential nature of the Board reports, their typing should
remain an in-house function.
(6) Preparing Award Fee Letters, even under typing services
contracts.
Septerrtoer 1992 D- 3
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\'»'tttittitti'ttrit-.t-fifttttt'f'if'* ".-
i'S'ttttffftftttff.
Because Award Fee Letters contain significantly sensitive and
confidential information thatcould possibly ha veadetrimental
effect on a firm's reputation, it is inappropriate to allow
outside entities, even those contractors performing typing
services, access to such information.
(7) The actual preparation of Award Fee Plans.
This is an inherently governmental function that details the
discretionary and judgmental decisions behind the process
the Government will be using in its evaluation of a contractor's
performance. It would be inappropriate for any contractor to
advise the Agency on whatshouldbe important to it Provided
that all confidential business information has been removed,
a contractor may type award fee plans since there is no
judgment associated with the performance of that task.
(8) The preparation of documents on EPA letterhead other than
routine administrative correspondence.
In this instance, "routine" is synonymous with "non-
judgmental" or "non-decisional." This prohibition is designed
to prevent the foUowingsituationfrom occurring. A contractor
is asked by EPA to perform certain policy analysis tasks. The
contractor then performs the research and develops a position
on the policy which it prepares on EPA letterhead. EPA then
signs it, thereby making it EPA policy. Even though EPA may
have made the final decision, there is no indication of EPA
involvement up until that time. The development of inherently
governmental decision documents mandates significant
Agency involvement and mis restriction ensures the Agency's
participation in the decision process. Records should be kept
demonstrating EPA's involvement. This prohibition does not
apply to contracts which are providing typing services, on
condition that the contractor providing such typing services
was not involved in any other capacity in the development of
the decisional or judgmental document
(9) Reviewing vouchers and invoices for the purposes of
determining whether costs, hours, and work performed are
reasonable.
This prohibition is directed specifically at the PCXs monthly
review and approval of a contractor's invoice submitted to
EPA for payment purposes. Contractors may perform non-
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September 1992
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judgmental duties,suchascheddLngmamematicsorreviewihg
invoices for administrative accuracy, but should not render
opinions in lieu of EPA on the reasonableness of professional
staffing levels and hours used to perform work. That is an
inherently governmental function generally delegated by the
Contracting Officer to the PO. This item in no way prohibits
the Office of Inspector General from contracting for financial
auditing and services, and compliance auditing.
(10) The preparation of Statements of Work, Work Assignments,
Technical Direction Documents, Delivery Orders, or any other
work issuance document under a contract that the contractor
is performing or may perform.
Authorizing a contractor to do any of these activities creates a
dear conflict of interest situation since they essentially allow
the contractor to assign itself its own work. Similarly, it is
inappropriate for contractors to complete their work issuance
forms. This prohibition does not restrict contractors from
preparing work plans which are, in fact, their own
responsibility. Additionally; EPA prime contractors should
be responsible for preparing the statements of work for their
own subcontracts. >'
(11) On behalf of EPA, actually preparing responses to audit
reports from theInspectorGeneral,General Accounting Office,
or other auditing entities
and
(12) On behalf of EPA, preparing responses to Congressional
correspondence.
Both of these items are analogous to the situation discussed
under Item (1), above. Althoughitis permissible for contractors
to perform in a research or fact-finding capacity, the final
document should be produced by EPA personnel to ensure
that it is free from outside bias and that it truly represents
Agency thinking.
(13) The actual preparation of responses to Freedom of Informa don
Act requests, other than routine, non-judgmental
correspondencein all cases, EPA must sign it
The key work here is "non-judgmental," being synonymous
with "non-decisional." We do not want contractors to decide
Septerrtoer 1992 D 5
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what is releasable under FOIA since that is an inherently
governmentalfunctioninvolvingtheinterpretationofstatutes
and Agency regulations. Recognizing that some FOIA work
is non-judgmental or non-detisional, it is permissible for
contractors to be used in those areas. For example/ provided
all conflict of interest, confidential business information (CBI),
and Privacy Act regulations have been followed, contractors
may be used to collect data for the Agency as long as they are
not deciding what data is releasable. Similarly, if conflict of
interest, CBI, and Privacy Act regulations have been addressed,
contractors may be used to redact documents provided that
decisions on what to redact are made exclusively by Agency
personnel Questions concerning interpretation of CBI and
Privacy Act regulations should be referred to the Office of
General Counsel. Questions concerning conflicts of interest
should be referred to the Procurement and Contracts
Management Division.
(14) Any contract which authorizes a contractor to represent itself
as EPA to outside parties.
No con tract may contain such an authorization. There may be
times when contractors are assumed to be EPA personnel, but,
in those situations, firms must explain that they are Agency
contractors.
(15) Conducting administrative hearings.
Administrative hearings are primarily conducted by
Administrative Law Judges (ALJs) who,in accordance with 40
CFR, Part 22, hear cases involving disputes between EPA and
other parties regarding regulations, permitting, etc The ALJs
are EPA employees performing quasijudicial and therefore,
inherendygovemmentalfunctionssuchasassessingpenalties.
This is distinguishable from contracting for professional
arbiters when the Agency requires outside, independent
judgment
(16) Reviewing findings concerning the eligibility of EPA
employees for security clearances.
This has been included as a prohibition because it is inherently
governmental and may also involve the disclosure of very
sensitive and personal information regarding EPAemployees.
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September 1992
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(17) The actual preparation of an office's official budget request
The prohibition here is very similar to Items (1), (11), and (12).
Whereas research and fact-finding of a purely technical nature
are permissible assignments under a contract as preliminary
steps to budget development, the responsibilities of
establishing Agency priorities or determining how Agency
money should be spent may not be delegated to Agency
Contractors. These are inherently governmental duties
involving judgment and discretion and must be performed by
Agency staff. Prior to its use, any support work provided by
a contractor must be very carefully reviewed by EPA staff to
remove any contractor bias and to substantiate the reliability
of the data, analyses, etc
b. Certain other activities when performed under contracts may
place EPA in a vulnerable or sensitive position if adequate controls
are not implemented. In those cases, a justification must be
prepared by the requesting program office which describes the
type of work to be performed under the contract, why the work
cannot be performed internally, and what will be done to ensure
a final Agency product that is unbiased and represents Agency
thinking.
Ifanewcontractawardvaluedat$25,000or greater is contemplated,
the justification must be signed by the cognizant Assistant
Administrator, Associate Administrator, or Regional
Administrator. For new contracts valued at less than $25,000; the
justification must be signed by a program official at least one
organizational level above the initiating office but no lower than
the Branch level, e.g., a document generated at the Section level or
lower mustbe approved at the Branch level, a document genera ted
at the Branch level must be approved at the Division level, etc.
The followingare contract workareas necessitating this justification:
(1) Budget preparation support including, but not limited to,
workload modeling, fact-finding, efficiency studies, and
should-cost analyses,
(2) Reorganization and planning support
(3) Supportservices such as analyses, feasibility studies, etc., to be
used by EPA personnel in developing policy,
September 1992 D-7
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(4) Regulation development support,
(5) Any supportin the in-house evaluation of another contractor's
performance,
(6) Involvement in strategic acquisition planning,
(7) Support on improving contract management
(8) Providing specialized expertise in the contractor selection
process/
(9) Providing specialized expertise in the development of
Statements of Work, Work Assignments, and other contract-
ordered tasks,
(10) AnysupportinvolvingEPApoUcyorregulatory interpretation,
such as staffing hotlines, attending conferences on behalf of
EPA, community relations efforts, conducting EPA training
courses, etc, and
(11) Independently providing technical guidance concerning EPA
policies or regulations on EPA's behalf to outside parties.
_^ ;
NOTE: Innoeventshallanycontractrequiring the performance
of any legal services be entered into without the approval of
the Office of General Counsel.
Certain other activities if contracted for, although not sufficiently
sensitive to require justifications, do necessitate the establishment
of special EPA control measures. If a new procurement is
contemplated involving any of the activities or situations listed
below, a special discussion detailing control procedures to be
enforced must be included within the pre-award procurement
request rationale document This would be required in the
following instances:
(1) Situationswherecontractorsshareofficespacewithemployees.
Control measures must be established to prevent the
performance of personal services, to ensure mat contractors
do not have inappropriate access to privileged or sensitive
information, etc.
(2) Support in preparing responses to Freedom of Information
Act requests.
D-8
September 1992
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Control measures mustbe established to ensure thatcontractors
are in compliance with all regulations involving FOIA, the
Privacy Act, and confidential business information.
(3) Any situation where a contractor has access to confidential
business information and/or any other sensitive information.
Controlmeasures mustbe established to ensure thatcontractors
do not have inappropriate access to privileged and sensitive
information, to ensure that security systems are in place
preventing the release of sensitive information to non-
designated contractor employees, etc
(4) Any situation where it can be assumed that the contractor is
EPA, without specifically identifying itself as a contractor.
Controlmeasures mustbe established to ensure thatcontractor
employees are dearly identified through the use of badges,
posted signs, etc.
d. In determining how best to contract for these sensitive services,
organizations must consider ways to reduce the potential for
conflict of interest. Procurement strategies should be considered
that break the requirements into smaller components, thereby
broadening contractor resources available to a particular office. If
possible, small and minority business participation should be
considered, provided these firms do not have conflicts of interest.
The procurement request rationale document must address;how
the particular procurement request fits into the requesting office's
overall procurement strategy.
e. In order to assure contract accountability at all levels of the
Agency, all EPAmanagersmusthave written into their performance
standards language emphasizing strong contract management
and controls.
f. Contract management training classes will be revised to include
discussions of the essential elements of this EPA Order.
Additionally, all active contract managers will be required to take
a one-day refresher course in contract management every three
years in order to maintain certification.
September 1992 D- 9
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4. Responsibilities
Hie Procurement and Contracts Management Division (PCMD) is
responsible for the following:
(1) Including language within all future contracts to prohibit
contractor performance of the activities listed in Paragraph
3.a., above.
(2) Notifying all current contract holders of those prohibitions
listed in Paragraph 3.a., above. ;
(3) Revising the Contracts Management Manual (CMM) to
incorporate the provisions of this Order, specifically
highlighting:
(a) The prohibited activities listed in Paragraph 3a., above.
(b) The requirement for justifications for the purchase of any
of the services listed in Paragraph 3.b., above,
(c) The requirement for a control element discussion in the
procurement request rationale document if any of the
activities listedinParagraphS.c., above, are contemplated,
(d) The requirement for a procurement strategy discussion
element in the procurement request rationale document,
and
(e) The requirement to include in all EPA managers'
performance standards language emphasizing strong
contract management and control .
(4) Reviewing die justifications for the purchases of any of the
services listed in Paragraph 3.b., above, and making a
determination that adequate control measures will be
employed.
(5) Re vising Recurrent contract management training classes to
include discussions of this order.
(6) Institutingaone-daycontractmanagementrefreshercourseto
be taken every three years by active contract managers in
order to maintain their certification.
b. EPA offices employing contract support are responsible for
following:
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September 1992
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(1) Preparing the justification for the purchase of any of the
services listed in Paragraph 3.b., above, and obtaining the
signature of the appropriate approving official on the
justification.
(2) Including a control elementdiscussion within the procurement
- rationale document if any of the activities listed in Paragraph
3.c, above, are contemplated.
(3) Considering ways to break up requirements for the
procurement of sensitive services into smaller components,
thereby reducing the potential for conflicts of interest.
(4) Along with the performance standard requirements for active
contract managers discussed within the CMM, including in all
other EPA managers' performance standards language, as
included within the CMM, emphasizing strong contract
management and control
(5) maccordancewimguidanceestablishedmmeCMKrequiring
active contract managers to attend the contract management
refresher course once every three years, in order to maintain
their certified status.
c All Agency employees are responsible for the following:
(1) Being aware of the content of this Order and bringing any
suspected violations to the attention of the cognizant
Contracting Officer. . ;-\
(2) Ensuring that the "prohibited" activities listed in Paragraph
3.a. and the "sensitive" activities listed in Paragraphs 3-b. and
3.c. are handled in accordance with the guidance outlined in
this Order and the CMM.
September 1992
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Appendix E
Work Assignment Manager Model
Performance Standards
SqptamterfSB?
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Work Assignment manager
model performance Standards
Critical Job Element:
i
Develops and manages work assignments to ensure effective
compliance with overall contract and completion of the contracted
activities or tasks effectively, in a timely manner, and at the
most cost-effective price.
OMeetive il
To initiate work assignments by preparing a statement of work
(SOW) and, if necessary, work assignment (wa) amendments that
clearly define essential task components and deliverables and are
within the scope of .the overall contract SOW.
Outstanding
Consistently prepares sows and WA amendments that are timely,
carefully planned, and clearly define the project's objectives,
task schedules, milestones for each task, deliverables to be
produced, and dates of deliverables. SOWs rarely need
revision. Sufficient technical information is provided to
enable the contractor to respond with a cost-effective work
plan. Quantity and quality of work indicate excellent
attention to detail and creative problem-solving. Actively and
consistently processes WA documents in a timely way so that
project activities proceed smoothly.
fully Successful
With some direction, prepares SOWs and WA amendments that
demonstrate efficient planning and that are well defined in
terms of the project's objectives, task schedules, milestones
for each task, deliverables to be produced, and dates for
deliverables. Generally provides WA documents so that project
activities can proceed within a reasonable schedule.
Unsatisfactory
Even with some direction, WAN prepares SOWs and WA amendments
that are poorly defined and inefficiently planned in that they
may not include major tasks and milestones, period of
performance, or deliverables. Shows little initiative to
ensure that project activities proceed smoothly; PO must
request necessary WA documents.
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-2-
Oblective 12
To manage and monitor technical performance of assigned WAS.
Outstanding
Carefully examines work plan on receipt to ensure that it
reflects technical scope, schedule, and budget estimates.
regularly with contractors, PO, and supervisor to discuss WA
progress and provides creative and useful solutions to
problems. Consistently reviews incurred costs of assigned
tasks for reasonableness and provides routine feedback to PO or
supervisor concerning problems that are identified.
Established routine procedures to ensure that informal
agreements with contractors are well-documented and that
contractors' work rarely proceeds under a misunderstanding
following a meeting. Reliably maintains precise management
records to assess information on the status of work; reviews
and evaluates deliverables and accepts or rejects them promptly
with well-documented, action-oriented comments; and submits a
final report to the PO promptly on completion of the project
that includes a summary of work completed and ensures the
timely processing of all documentation necessary for con-
tractors* performance evaluation processing and for WA
closeout.
Fully successful
Reviews work plan to ensure that it reflects technical scope,
schedule, and budget estimates. Meets periodically with
contractors, PO, and supervisor to discuss WA progress, and
solves problems with some assistance from the PO or supervisor.
Maintains, with minor revisions, management records to assess
information on the status of work; reviews and evaluates
deliverables and accepts or rejects them with documented
comments; and submits a final report to the PO within a
reasonable time following project completion that includes
a summary of work completed and ensures the timely processing
of all documentation necessary for contractors* performance
valuation processing and WA eloseout.
unsatisfactory
Work plans are not timely reviewed, and WAM relies on
Supervisor or PO to solve problems and ensure that proper
contracting procedures are complied with. Meets infrequently
with contractors, PO, and supervisor and discusses, but often
does not solve, problems. Maintains unreliable or inaccessible
management records to assess information on the status of work;
inadequately reviews and evaluates deliverables and accepts or
rejects them with vague and poorly documented comments; and
-------
-3-
submits final report to the PO after substantial delay
following projsot completion that may not include an accurate
summary of work completed, thus delaying contractors1
performance evaluation processing and WA oloseout.
Obiactive §3
To manage and monitor budget and schedule performance on assigned
WAS.
outstanding
consistently manages WAs efficiently and within budgetary and
time constraints. Establishes and maintains precise, timely,
and appropriate project management records that document
status of budget and schedule. Consistently analyses
financial reports and anticipates problems that may affect
schedules or deliverables; initiates proper actions to control
budget and avert budget overruns and to meet changing project
conditions; and obtains timely clearance for subcontractors
and consultants. Regularly communicates with contractors to
ensure that budget and schedules are being met. Consistently
and promptly reviews and evaluates deliverables, and accepts
or rejects them promptly with well-documented, action-oriented
comments, submit final report, including budget and schedule
summary, to PO promptly at project completion.
Fully Successful
With some direction, manages WAs within budgetary and time
constraints. Maintains, with minor revisions, project :
management records that document status of budget and
schedules, when requested by the PO, may identify financial
and other problems that may affect schedules or deliverables;
with some assistance, takes action control budget, to amend WA
in sufficient time to avert more than 10 percent overrun, and
to meet changing project conditions. Obtain clearance for
subcontractors and consultants. Periodically communicates
with contractors to ensure that budget and schedules are being
met. Reviews and evaluates deliverables, and accepts or
rejects them with documented comments. Submits final report,
including a budget and schedule summary, to PO at project
completion.
unsatisfactory
Even with some direction, manages WAs with frequent
adjustments to budget and schedules. Maintains unreliable or
inaccessible project management records concerning status of
budget and schedules. Often fails to identify financial and
other problems that may affect schedules or deliverables.
Often takes inadequate action to modify WA or control budget
-------
-4-
and meet changing project conditions. Often fails to identify
financial and other problems that may affect schedules or
deliverable*. Often takes inadequate action to modify WA or
control budget and Beet changing project conditions. Often
fails to obtain clearance for subcontractors and consultants.
Meets infrequently vith contractors, Baking it difficult to
ensure that budget and schedules are being Bet. Provides late
and vague comments on deliverables. submits final report to
PO after substantial delay following project completion;
report often does not include accurate budget and schedule
summaries.
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APPENDIX F
Definition of Labor
Classification
Listed below are qualifications for each category of professional
services the contractor must provide.
(a) Level XV; Senior Professional (Management):
At least eight years of professional experience planning,
conducting, and participating in short-term studies; the
design, review and evaluation of management and administrative
systems; and the provision of management support. At least
some of the experience must include scheduling work to meet
completion dates, estimating manpower needs, reviewing project
progress and making changes in methodology where necessary.
This individual plans, conducts, and supervises projects of
major significance, necessitating advanced knowledge and the
ability to originate and apply new and unique methods and
procedures. This person supplies technical advice and counsel
to other professionals and generally operates with wide
latitude for unreviewed action. In addition, must have at
least a master's degree in business administration,
management, public administration, or related discipline
unless the Experience Qualification Substitutions clause is
satisfied.
(b) Level III: Mid Professional (Senior Analyst):
At least three years' professional experience participating in
short-term studies; the design, review and evaluation of
management and administrative system; and the provision of
information management policy support. Individuals receives
assignments associated with projects from the senior
professional translating technical guidance received into
usable data applicable to the particular assignment. Work
assignments are varied and require some originality and
ingenuity. In addition, must have at least a master's degree
in the social sciences, management, business administration,
public administration, or related discipline unless the
Experience/Qualification Substitutions clause is satisfied.
(o) Level IX: Junior Professional (Analyst)
Less than three years of experience in the areas listed above
under "Mid Professional (Senior Analyst)." Individual gathers
and correlates basic data and performs routine analyses.
Person works on less complicated assignments where little
evaluations required. In addition, most have at least a
bachelor's degree in the social sciences, management or
business, unless the Experience/Qualifications Substitutions
clause is satisfied.
-------
2 -
(a) Any combination of additional years of experience in the
proposed field of expertise plus full tine college level
study in the particular field totaling four (4) years will be
acceptable substitute for a bachelor's degree.
(b) A bachelor's degree plus any combination of additional years
of experience and graduate level study in the proposed fields
of expertise totaling two (2) years will be an acceptable
substitute for master's degree.
(c) Additional years of graduate level study in an appropriate
field will be considered equal to years of experience on a
two-for-one basis.
Listed below are typical duties, titles and qualifications for
each category of professional service:
PROFESSIONAL
(1) Level 4 - Plans, conducts and supervises projects of major
significance, necessitating advanced knowledge and the
ability to originate and apply new and unique methods and
procedures. Supplies technical advice and counsel to other
professionals. Generally operates with wide latitude for
unreviewed action.
Typical Title: Project Leader, Chief Engineer
normal Qualifications: Ph.D. Degree or equivalent; and
Experience: 10 years or more.
(2) Level 3 - Under general supervision of project leader,
plans, conducts and supervises assignments normally
involving smaller or less important projects. Estimates
and schedules work to meet completion dates. Directs
assistance, reviews progress and evaluates results; makes
changes in methods, design or equipment where necessary.
Operates with same latitude for unreviewed action or
decision.
Typical Title: Engineer, Analyst
Normal Qualifications: B.S. Degree or equivalent; and
Experience: 6-12 years.
-------
-3-
(3) LEVEL 2 - Under supervision of a senior or project leader,
carries out assignments associated with projects.
Translates technical guidance received from supervisor into
usable data applicable to the particular assignment,
coordinates the activities of juniors or technicians. Work
assignments are varied and require some originally and
ingenuity.
Typical Title: Engineer, Analyst
Normal Qualifications: B.S. Degree or equivalent; and
Experiences 3-8 years
(4) LEVEL 1 - Lowest or entering classification. Works under
close supervision of senior or project leader. Gathers
and correlates basic data and performs routine analyses.
Works on less complicated assignments where little
evaluation is required.
Typical Title: Junior Associate
Normal Qualifications: B.S. Degree or equivalent; and
Experience: 0-3 years -.
Experience/Qualifications Substitutions:
(1) Any combination of additional years of experience in the
proposed field of expertise plus full time college level
study in the particular field totaling four (4) years will
be an acceptable substitute for a bachelor's degree.
(2) A B.S. degree plus any combination of additional years of
experience and graduate level study in the proposed fields
of expertise totaling two (2) years will be a acceptable
substitute for master's degree.
(3) A B.S. degree plus any combination of additional years of
experience and graduate level study in the proposed fields
of expertise totaling two (4) years or a Master's Degree
plus two (2) years of either additional experience or
graduate level study in the proposed field of expertise will
be an acceptable substitute for Ph.D. Degree.
(4) Additional years of graduate level study in an appropriate
field will be considered equal to years of experience on a
two-for-one basis.
-------
-4-
TECHNICAL
(1) Level 3 - Performs non-routine and complex assignments.
Works under general supervision of a scientist or engineer.
Performs experiments or tests which may require nonstandard
procedures and complex instrumentation. Records, computes
and analyzes test data, prepares test reports. May
supervise lover level technicians.
Typical Title: Senior Technician
Experience: 6 years or more
(2) Level 2 - Performs assignments that are normally
standardized. Operates testing or processing equipment of
moderate complexity. Hay construct components or
subassemblies of prototype models. May troubleshoot
malfunctioning equipment and make simple repairs. Extracts
and processes test data.
Typical Title: Technician
Experiencet 2-6 years
(3) Level 1 - Performs simple and routine 'tasks or tests under
close supervision. Records test,data and may prepare simple
charts or graphs. Performs routine maintenance and may
install or set up test equipment.
Typical Title: Junior Technician, Technician Trainee
Experience: 0-2 years
-------
/mil
APPENDIX G
Negotiations and Communications
September 1992
-------
-------
APPENDIX G
Negotiation and
Communication
How to Negotiate with Contractors: Points out where negotiations with
contractors may be required in the life of a Work Assignment; different
negotiation techniques; how to distinguish negotiable from non-nego-
tiable items.
Effective Communication Is the Key: Being dear about what you want
and expect; communicating about difficult subjects.
Ethics for Contractor Management: Summarizes the ethical standards for
EPA employees who manage contractors andprovides Work Assignment
Managers with guidance on how to deal with the "gray areas" that
frequently arise during contractor management
WHY ARE NEGO-
TIATION, COMMU-
NICATION, AND
ETHICS IMPOR-
TANT TO GOOD
MANAGEMENT?
Negotiating in
good faith should
lead to satisfactory
agreements.
Using noncon-
frontational tech-
niques improving
communications.
Good communica-
tion ensures that
everyone under-
stands the Work
Assignment and
planned approach.
Communication
can foster team
spirit and commit-
ment to the project
and can get a
troubled Work
Assignment back
on track.
Attention to ethics
issues is needed to
ensure that ques-
tions do not arise
about the propriety
of Work Assign-
ment Manager
actions.
AREA1 How to
Negotiate with
Contractors :
A client-contractor
relationship will
' always have some
adversarial elements
to it. Despite efforts
at effective communi-
cation and sincere
attempts on both
sides to foster a
positive team spirit,
there will be those
times when you and
the contractor will
disagree on certain
aspects of the Work
Assignment
September 1992
-------
rvrmiirrmirri
At these points you
must negotiate to
solve these disagree-
ments. It is possible
to use negotiation
techniques to reach
agreements that will
satisfy the needs of
you and your con-
tractor. This section:
Identifies times
when you may be
negotiating with a
contractor during
Work Assignment
planning and
implementation;
* Explains how to
prepare a negotia-
tion strategy before
dealing with the
contractor; and
Provides some
pointers for con-
ducting these
negotiations.
Times When You
May Be Negotiating
with a Contractor
There are at least
three points in the life
of a Work Assign-
ment when you may
be negotiating with a
contractor
When the Work
Plan is initially
prepared;
During any mid-
course correction,
when it becomes
apparent that a
change in the Work
Assignment's focus
is needed; and
Near Work Assign-
ment completion/
when a final prod-
uct is found to be
unacceptable.
There are several
things that could be
negotiated during
Work Plan review,
including the Work
Assignment's scope,
budget, and schedule
of deliverables. Dur-
ing these negotia-
tions/ you will be
trying to get as much
work as possible for
the funds allocated in
the Work Assign-
ment/ and the con-
tractor will be trying
to make sure that
there are suf-ficient
hours in the Plan to
complete the work.
These two interests
do not necessarily
have to conflict The
Work Assignment
manger simply has to
be creative during the
negotiations.
Mid-course correc-
tions are another
point in Work As-
signment implemen-
tation where you can
become involved in
negotiations. A shift
in EPA's program
policies could result
in the need to revise
the focus of the Work
Assignment. In this
instance/ negotiations
would likely center
around how much of
the work already
completed could be
used for the revised
Work Assignment
scope; how much
additional work will
have to be under-
taken; and whether
this additional work
can be completed
given the Work
Assignment's existing
budget. By the time a
Work Assignment is
half-completed, a
contractor may be
very concerned that
there are not enough
hours to complete it
and may be rather
inflexible about
revising the scope.
The final point where
you may be negotiat-
ing with a contractor
is near Work Assign-
ment completion
when/ despite exten-
sive communication
between you and
your contractor while
the work was in
progress, the final
product is unaccept- ;
able. The contractor..
-2
September 1992
-------
may be somewhat
inflexible about
revising the docu-
ment if there are no
additional funds to
make the corrections.
However, this does
not necessarily mean
that both of your
needs cannot be met
You may be able to
develop some cre-
ative solutions to thin
impasse during
negotiation sessions
with the contractor.
Develop a Negotia-
tion Strategy
Before beginning any
negotiations with a
contractor, it is help-
ful if you have a dear
picture of the issues
likely to be discussed,
negotiable and non-
negotiable items, and
your "bottom line"
needs. Negotiations
will proceed much
more smoothly - and
agreements be
reached more quickly
if you take a little
time to prepare a
strategy.
Five steps are sug-
gested here for pre-
paring a negotiation
strategy.
1. Identify the Issues
that you think
will be raised.
If your negotiation
will center around
provisions in the
Work Plan, reviewing
that document should
provide some indica-
tion of the issues.
When reviewing the
Work Plan, use Ques-
tion #1 of the Check-
list to jot down those
aspects of the plan
that you believe
should be changed.
This, then, gives you
a preliminary list of
issues that you can be
prepared to address.
If you are negotiating
for a mid-course
correction or revi-
sions to a final prod-
uct, you will have
already established a
working relationship
with the contractor.
Based on your famil-
iarity with the per-
sonalities at that firm,
you should be able to
predict how they may
respond t proposed
changes. Here again,
Question #1 of the
checklist can help you
to organize your
thoughts when trying
to anticipate potential
negotiation issues.
2. Identify your
"bottom-line"
needs.
Successful negotia-
tions usually require
that both disputants
make some conces-
sions in order to
reach an agreement
If you know that-you
are going to be nego-
tiating, it is extremely
helpful to identify
ahead of time some
possible negotiable
items that you could
discuss. (See Step 4
below.) Before iden-
tifying these items,
however, it is essen-
tial that you outline
your "bottom-line"
position; that is, the
minimum you re-
quire to ensure that
your needs will be
met.
For instance, while
you may agree to
extending the sched-
ule for completing a
deliverable, your
bottom-line need
might be that the
product must be
completed in time to
present it at an up-
coming conference.
Question #2 on the
checklist asks you to
identify your bottom-
line needs.
3. Identify the non-
negotiable items.
There are several
potentially non-
6-3
-------
negotiable items
associated with any
Work Assignment
There may also be
limits on the type of
work that can be
performed under a
particular contract
In addition to con-
tract limitations, a
Work Assignment
may have non-nego-
tiable budgetary
constraints. For
instance, if a Work
Assignment is pro-
posed near the end of
a mission contract's
life, there may no
longer be a "cushion"
of additional funds
should the task re-
quire more hours to
complete than origi-
nally scoped. Other
non-negotiable items
could include an
Agency directive or
an order from your
supervisor.
When developing a
negotiation strategy,
it is helpful to list all
of the non-negotiable
items that pertain to.
the Work Assign-
ment. Question #3 on
the checklist will help
you in this effort
4. Identify Nego-
tiable Items.
The most creative
part of developing a
negotiation strategy is
to think of options for
possible concessions
mat you could make.
Because you have
already identified
your bottom-line
needs and your
negotiation con-
straints, you should
be able to come up
with some focused
and useful alternative
suggestions. If pos-
sible, try to prepare
one or two options
for each of die issues
that your expect to be
raised.
These options are
especially helpful to
have in the back of
your mind while
negotiating. They
can help you to reach
an agreement much
faster than if you and
your contractor both
began negotiating
"cold." Question#4
on the checklist
suggests some pos-
sible negotiable
items.
5. List the questions
that you want to
ask the contractor.
While considering
possible ways to
assure that you meet
your "bottom-line"
needs (see Step 2,
above), you may have
realized that you
need more informa-
tion from the contrac-
tor before you can
suggest solutions in
the negotiation ses-
sion. For example,
you may have de-
cided to suggest that
the contractor reduce
the ODC costs in a
given Work Plan.
There may, however,
be a good reason for
these costs that you
were not aware of. In
this case, you should
ask the contractor to
explain the basis for
these costs before you
suggest that they be
reduced. Question #5
in the checklist pro-
vides space for you to
jot down these ques-
tions.
Identifying some key
questions ahead of
time has at least two
advantages. First, it
can help you identify
more targeted solu-
tions to disagree-
ments in a
negotiation session.
Second, a contractor's
responses to the
questions you ask in a
negotiation session
will give you an
indication of how
cooperative he or she
will be during that
£-4
September 1992
-------
"Hi
session. If a contrac-
tor does not answer
your (questions in a
straightforward
manner and seems
defensive be pre-
pared that the nego-
tiations could become
heated.
When asking these
questions of your
contractor, it is ex-
tremely important
mat you pose them in
a non-confrontational
way. Even the most
well-intentioned,
cooperative contrac-
tors can become
defensive if they feel
like they are being
grilled. 'Tips of the
Trade" in the next
section, "Effective
Communication is the
Key," provides some
examples of how to
discuss difficult
situations in a con-
structive, non-con-
frontational way.
What to Do in a
Negotiation Session
The negotiation
strategy you've
developed gives you
the tools to conduct
the negotiations
efficiently and in a
positive manner. The
question is: What do
you do with the
strategy? It is not
possible to lay out a
step-by-step ap-
proach on "how to
conduct yourself in a
negotiation." So
much of it depends
on reacting to what
you hear the other
negotiator say. De-
veloping a sense of
the flow of a negotia-
tion and the timing
involved - such as
knowing when to ask
a question, offer a
solution, make a
demand, or raise a
new issue - just takes
practice.
It is possible, how-
ever, to offer a few
pointers on how to
act in a negotiation
session: these are
briefly noted below.
Ask questions first
Begin the session
by asking the con-
tractor the question
that you identified
on the checklist
This will ensure
that you quickly
gather all of the
information you
need to suggest
options. Again,
how you ask the
questions is impor-
tant - be sure to use
non-confronta-
tional language.
Couple the non-
negotiable items with
a positive suggestion.
During the negotia-
tions, the contractor is
likely to request a
concession that is one
of those non-nego-
tiable items you
identified in the
checklist. When this
happens, explain why
something is non-
negotiable, and
suggest a couple of
areas that can be
negotiated. For
example, you might
respond to a
contractor's request
for more money in
the Work Assignment
as follows:
"Unfortunately, all
remaining funds in
the contract have ,.
already been commit-
ted so we don't have
any extra money for
the Work Assign-
ment Maybe we can
talk about reducing
the scope somewhat,
or look at some ways
to reduce costs."
This statement lets
the contractor know
that the request for
ore funds is some-
thing that your are
unable (rather than
unwilling) to pro-
vide. Chances are,
September 1992
6-5
-------
this will not be raised
again in the negotia-
tion session. Suggest*
Ing one or two
alternatives to con-
sider lets the contrac-
tor know that there
are other ways to
address the concern
of "no enough hours
to complete all of the
work."
Stick to your
"agenda." If you
think the negotia-
tion discussions are
going off on a
tangent don't be
afraid to say, "I
would like to get
back to discussing
." This will help to
ensure that you
have a chance to
discuss all of your
concerns.
Use non-confronta-
tional language.
This cannot be
stressed strongly
enough. The way
you say something
often has much
more of an impact
than what you are
saying.
Offer your pro-
posed solutions.
Be willing to sug-
gest the possible
solutions that you
identified in Ques-
tion #4 of the
checklist Suggest-
ing alternative
solutions helps to
reduce the
adversarial tone of
a negotiation
session. Instead/
the meeting will
take on a "team
spirit" where you
and your con trac-
tor are jointly
trying to resolve
some problems.
Ask the contractor
to suggest solu-
tions. If the con-
tractor keeps
shooting down
every suggestion
you make, without
offering any alter-
native, you could
ask
"What do you sug-
gest as an option,,
given the con-
straint that no
additional funds
are available for
the Work Assign-
ment?" This puts
the responsibility
back on the con-
tractor to come up
with some solu-
tions, rather than
just criticizing
yours.
When asking this
question, make sure
to reiterate the non-
negotiable items.
Summarize the
agreements
reached. At the
end of the negotia-
tion session/ take a
moment to ver-
bally summarize
the agreements
that you and your
contractor have
reached. This will
help to ensure that
you both have the
same understand-
ing about the
agreement
AREA 2 Effective
Communication is
the Key
Most people taking
this course are prob-
ably thinking "What
do I need to learn
about communication
that I don't already
knowr At first
glance/ this seemingly
simple topic may not
seem worthy of
consideration in a
contractor manage-
ment training course.
Not true-itis ex-
tremely important In
face/ poor communi-
cations with a con-
tractor is one of the
main reasons for a
project's final product
not being adequate to
meet your needs.
6-5
September 1992
-------
Provide Contractors
with dear Instruc-
tions
When giving contrac-
tors initial instruc-
tions on the task,
always keep in mind
the tree questions/
"What?", "When?",
and "How?" If you
answer them in suffi-
cient detail, chances
are that the contractor
will have a solid
understanding of the
work that is required.
1. "What?"-covers
the activities that
a contractor is
being asked to
undertake and the
deliverables that
must be pro-
duced. If the final
product is a
written docu-
ment, describe
your impression
of that document 2
in as much detail '
as possible. You
might say, for
instance, "I envi-
sion the report
covering at least
the following
items (list them),
and being be-
tween 30 and 50
pages, with
tables." If you've
seen a product
you'd like to
emulate, give the
contractor a copy
of it. These initial
impressions may
change as the
work proceeds,
but at least it
gives the contrac-
tor a basic idea of
what you have in
mind. To some
extent, the
"what?" will be
covered in the
Work Plan. But,
any supplemen-
tary information
on the details of
the Work Assign-
ment will be
extremely useful
to the contractor.
The kickoff meet-
ing provides an
excellent opportu-
nity for discuss-
ing the details of
the Work Assign-
ment
"When?" - covers
the dates you
expect the con-
tractor to com-
plete each activity
and deliverable.
Here again, this
will be covered to
a large extent in
the Work Plan. In
addition to the
deliverable speci-
fied in the Work
Plan, however,
you may also
request interim,
less formal
deliverables, such
as a preliminary
outline for a
report, or a test
printout from a
new database.
You can request
these informal
deliverables at the
Work
Assignment's
kickoff meeting.
3. "How?" - pro-
vides the contrac-
tor with some
guidance on the
general approach
for completing
the Work Assign-
ment. Although
Work Assignment
Managers are not
supposed to
closely direct how
a contractor
should complete a
Work Assign-
ment, it is per-
fectly acceptable
for you to ask mat
you be briefed
regularly on the
approach used.
Any concerns that
you have about
the approach can
be raised at these
briefings.
Tips of the Trade:
To promote effective
communications with
contractors:
6-7
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Provide contractors
with dear instruc-
tions regarding the
Work Assignment
to be undertaken.
Always try to give
the contractor
positive, rather
than negative,
motivation.
« Foster a "team
spirit/' rather than
an adversarial
relationship, with
the contractor.
* Communicate with
the contractor at
regular intervals
throughout the
duration of the
Work Assignment.
Establish a "com-
munications proto-
col" with the
contractor at the
beginning of the
Work Assignment,
and stick to it
Be open to sugges-
tions and feedback
from the contractor
on the specifics of
the Work Assign-
ment
* Be responsive to
contractor's con-
cerns about how
the Work Assign-
ment is progress-
ing.
* Document all
major changes in
the Work
Assignment's
scope or schedule.
Communicate Lead-
ership
In a very true sense,
you manage the effort
of your contractor
team. What are a
Work Assignment
Manager's rights and
responsibilities?
Whenever a contrac-
tor is working for
you, you have a right
to expect delivery of a
quality product on
the date it was prom-
ised. You are respon-
sible for assuring the
contractor staff un-
derstand their mis-
sion.
Some attention to
motivations is likely
to get you the best
product for your
money. Contractors
want to know that
you, their client, and
manager, are satisfied
with their effort. And
sensitivity to team
spirit can also help
you head off prob-
lems before they start
Here are some ways
to achieve it:
Explain the impor-
tance of the Work
Assignment and its
final product, and
how it fits in with
OW goals and
objectives. This
will give the con-
tractor a sense of
contributing to
these overall pro-
gram goals. De-
scribing the
importance of a
Work Assignment
may also help to
motivate the con-
tractor to do an
excellent job in the
hopes that his or
her efforts could
lead to future
follow-up.
When the contrac-
tor has produced a
good interim
product (e.g., draft
report, or anno-
tated outline for
draft report),
acknowledge it
Put some of your
own creativity into
the Work Assign-
ment. If this per-
mits, join the
contractor staff at
one or more brain-
storming sessions
about how the
Work Assignment
should be devel-
oped. Participat-
ing in a session like
this will also rein-
September 1992
-------
«
force to the con-
tractor that the
Work Assignment
is important to
you.
Team spirit goes a
long way toward
yielding an excellent
product Meet your
commitment be fair,
and offer praise and
encouragement to the
contractor. A positive
relationship from the
start will smooth the
way if difficulties
arise later.
Meet your commit-
ments for the
agreed-upon
amount of time for
EPA review of
draft products. If
due to factors
beyond your con-
trol you are unable
to meet these
deadlines, then
you and your
contractor should
revisit the Work
Plan and adjust the
Work Assignment,
scheduling to
reflect this length-
ened EPA review
time.
Be fair with the
contractor regard-
ing tight deadlines.
Fast turnaround
"crisis" tasks are a
fact of life in any
agency. However,
you will burn out
con tractor staff
very quickly if you
are constantly
asking them to
burn the midnight
oil to get products
completed. It is
important to iden-
tify what is and
isn't a real emer-
gency on a Work
Assignment and
only ask for this
intensive support
when there is a real
need.
When the contrac-
tor has produced
an inadequate
product or you are
dissatisfied about a
staffing issue,
express your posi-
tion clearly and
constructively.
The next section
provides some
ideas on dealing
with unpleasant
issues in these
areas.
Get Tough Reason-
ably
Occasionally, your
contractor is going to
let you down. Dis-
covering the causes
take patience and
managerial skill, not
to mention objectiv-
ity. You may blame
personality problems,
poor communication,
inappropriate staff-
ing, lack of direction,
insufficient senior
attention, or man
other pitfalls. It is
important to identify
the cause so that you
can keep it from
happening again.
Equally important is
this: How are you
going to fix the prob-
lem right now?
Here are a few sug-
gestions:
First, identify the
main problems
with a product
This is especially
useful if the discus-
sion is going to
make you uncom-
fortable: you won't
overlook a point
Second, be forth-
right Don't hint
around. Your
contractor is pro-
fessional enough to
hear both the good
and bad news. A
mixed message
only confuses the
listener.
Third, be clear.
Don't just say
"This is terrible."
Let the contractor
September 1992
-------
know that "We
have a long way to
go on this/' or "We
have quite a bit
. more work to do."
If the product is
salvageable, iden-
tify what you like.
Then dearly say
what's wrong.
Describe any
broader conceptual
problems first: then
focus on details.
Fourth,'be willing
to listen to expla-
nations and sug-
gestions on how to
fix the product.
Chances are, the
contractor will
come up with the
same changes you
want anyway. The
contractor will
"own" the prob-
lems and save face
at the same time.
Fifth, consider the
history of the
relationship and
apply perspective.
If this is a rare
disappointment,
put despair aside
and focus on trust
and mutual prob-
lem-solving. If the
contractor or the
staff is new to you,
this approach is
clearly more diffi-
cult to pursue.
* Sixth, bring in an
objective ally. This
is a good anchor if
you're very upset
The more difficult
a situation is, the
more clarity it
needs. The Project
Officer for the
contract is a good
choice.
Seventh, if staffing
is the problem, ask
to meet with a
senior manager in
the contractor firm.
He or she can help
you work out a
harmonious solu-
tion. Be careful,
though: you aren't
within your rights
to dictate contrac-
tor staffing.
Eghth, whenever
possible, use con-
structive, not
confrontational
language, even
though you may
feel angry and
disappointed. The
immediate need is
for damage analy-
sis and control
Reprimands, if
necessary, should
come later.
The "Tips of the
Trade" box on the
following page shows
two ways of express-
ing your concerns in
the areas of Work
Plan negotiation,
mid-course correc-
tion, product review,
and staffing. One
way of expression is
dearly more produc-
tive than the other.
Incidental trans-
portation from a
private organiza-
tion in connection
with official duties,
Unsolicited adver-
tising or promo-
tional material of
nominal value
(under $10), such
as pens, pads, or
calendars, and
Gifts from family
or friends only if it
is obvious that the
personal relation-
ship, and not the
business relation-
ship, is the reason
for such gifts.
If accepting even a
nominal gift or gratu-
ity would create the
appearance of an im-
propriety, the Work
Assignment Manager
must refuse it
Tips of the Trade:
If s important to
choose the right
words in touchy
situations. Try to
pose questions that
are open-ended and
G-w
September 1992
-------
use words that are
not emotionally
charged.
Confidential Busi-
ness Information
EPA technical person-
nel often are privy to
highly confidential
contractor informa-
tion, such as profit
margins, indirect cost
rates, number and
kind of employees,
individual salary
rates, or amount of
award fee. The Work
Assignment Manager
must be careful not to
discuss anything
known about a par-
ticular contractor
with anyone (includ-
ing other EPA em-
ployees) who does
not have a "need to
know." Even casu-
ally mentioning your
personal opinion of a
contractor's perfor-
mance on a particular
task is unauthorized.
Maintaining Impar-
tiality
Government employ-
ees must remain
objective about a
contractor's perfor-
mance. For this
reason, a professional
distance must be
maintained, and
socializing with
contractor personnel
outside of official
duties is discouraged
Government
employee's actions
should be such that a
full public disclosure
would not give rise to
a question of impro-
priety.
Disclosure of Pro-
curement Informa-
tion
All information
before award of any
contract modification
is highly confidential
Any unauthorized
disclosure of this
information could
lead to one or more
contractors having a
competitive advan-
tage over others,
which could result in
a bid protest
For this reason, it is
essential that Work
Assignment Manag-
ers do not slip inad-
vertently let slip any
advance or otherwise
confidential procure-
ment information to
current contractors or
other firms who
contact them.
While these stan-
dards of conduct
seem fairly cut and
dried, there are a
number of gray areas
that require EPA
Work Assignment
Managers to make
judgment calls about
the ethics of their
behavior. The most
frequently faced gray
area is how to interact
with former EPA
colleagues who have
left the Agency to join
consulting firms. The
training course ac-
companying this
manual includes a
discussion forum oh
how EPA Work
Assignment Manag- .
ers should deal with
these gray areas.
In this training
course, you will
receive a copy of
"Ethics in a Nut-
shell," a booklet
summarizing ethical
conduct for EPA ;
employees.
Ask Yourself
"Does my behavior
towards a contractor
have an appearance
of impropriety?" If
the answer is "yes,"
you should modify
your behavior.
September 1992
-------
Tips of the Trade: It's important to choose the right words in touchy situations. Try
to pose questions that are open-ended and use words that are not emotionally charged.
Confrontational Language
Constructive Language
During Work Flan Negotiation
Why are these ODC costs so high?
Can't you get this done sooner?
Your proposed labor mix has too many
senior staff hours.
It shouldn't take so many hours to com-
plete this subtask.
Tell me more about the basis for these
ODC costs.
Is there a way that we could condense the
schedule?
You could reduce costs somewhat if you
moved some of the senior staff hours to
more junior levels.
Explain to me all the steps needed to
complete this subtask.
During Mid-Course Correction
These revisions will have to be covered
by the existing money in the task.
Your approach seems pretty inefficient.
Unfortunately, we don't have any addi-
tional funds for the task. How can we get
these revisions completed while staying
within budget? :
There may be another approach to com-
pleting the work which is less time-con-
suming.
During Product Review
This final product is unacceptable; it will
have to be completely redone.
Here are my changes. Have a new draft
ready in two weeks.
You clearly didn't understand my in-
structions.
I would like to discuss some changes to
the final product. They are fairly exten-
sive, but I think they're necessary to make
the product more targeted to our office's
needs.
What are your suggestions for correcting
these ?????
Lefs discuss how this happened so we
can prevent future misunderstandings.
On Staffing Issues
Idon't want Joe on this project any longer.
These staff are way too junior to perform
the work.
There seem to be some personality prob-
lems between Joe and me.
This project requires more senior atten-
tion.
G-12
Septerrter1992
-------
APPENDIX H
Confidential Business
Information
O
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APPENDIX H
Confidential Business Information
What Every WAMs Should Know ...
If a contractor needs access to CBI ...
» each individual oust gain clearance by taking rand passing)
the CBI test. *'
If a contractor needs to maintain CBI documents at their office ...
* The EPA Project Officer must request approval for CBI Access
On-site for the contractor.
* The contractor aust prepare and submit a security plan to the
CBI office for approval.
- The contractor must agree to meet all requirements set forth
in the CBI security manual.
The requirements of the security manual (which subsequently impact
on the work assignment management) include:
» Contractor is required to appoint a Documant Control Officer
who is responsible for ensuring that all CBI documents on-site
are secure.
» Contractor must submit a security plan to the CBI office and
submit to an on-site facility inspection.
» Contractor must submit an annual inventory of all CBI
documents in their possession.
» Contractor must return all CBI documents to the EPA CBI
Office at the end of the contract or when the documents are no
longer required (whichever occurs first).
» Contractor must, return all CBI documents to the EPA CBI Office
upon request.
c
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Q:
DISCLOSURE OF CONFIDENTIAL BUSINESS INFORMATION
TO CONTRACTORS
This guidance will address two questions:
1. Does the contractor view Confidential Business Information?
2. Is the contractor authorized for access to that information?
1. Does the contractor view Confidential Business Information?
Q: What kind of information is entitled to confidentiality?
A: Generally, any information whose release is likely to cause
harm to the competitive position of the submitter. If a
competitor could use the information to the disadvantage of
the submitter, disclosure is likely to be considered as
causing "substantial" harm.
May I therefore ignore any information that I think will not
cause competitive harm to the submitter?
A: No. EPA confidentiality regulations at 40 CFR Part 2, .
Subpart B require that the Agency protect from disclosure
(except where EPA has made a formal determination otherwise)
any information where l) the submitter of the information
has claimed the information as CBI, or 2) might be expected
to object to its release (even if a CBI claim has not been
made).
This means that when examining contracts, work assignments,
and delivery orders to determine whether they involve
viewing CBI, consider not only information which you think
is entitled to confidentiality, and not only information
which is actually marked as confidential, but also
information for which the submitter might be expected to
want protection (see the next question * answer for guidance
on types of information likely to be at issue).
In general, any time a contractor or subcontractor is
viewing information submitted by a business, there is a
possibility that some of the information is subject to
confidentiality claims, and you should examine that
information closely.
G
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Q: Z can't read the mind of a submitter. Give ne some examples
of information which night require protection.
A: Following is a list of types of information frequently
claimed as confidential by the submitting company. This
list is by no means exhaustive, and should not be used to
limit investigation.
- Trade secret formulas, devices and identities of chemicals
- Identities of pesticide inerts
- The fact that a company is manufacturing, importing,
processing, etc. a particular chemical
Production volumes of chemicals or amount stored at a
company facility
- Industrial process information
- ANY financial data regarding a company (e.g., assets,
profits, taxes), obtained from any source
- Contractor-supplied information generally, including:
o Direct Labor rates
o Indirect rates: overhead, general and administrative,
fringe benefits, etc.
o Other contractor charges
o Identities of employees and their salaries
o Monthly progress reports
o Contract m-ono**!-.
1 * ^-»» 4.1
Contract proposals
Fees
- Note that information contained in a document submitted
by a business does not become non-confidential by
virtue of being put into an Agency-generated document.
For example, source selection documentation generated by
EPA contains information obtained from offerers vhich
may be subject to confidentiality claims.
2. Is the contractor authorized for access to that information?
Q: When may a contractor be authorized to view any information
claimed as CBI?
W-3
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. \
A: The Trade Secrets Act prohibits disclosure of CBI to anyone
outside the Federal Government except where authorized by
law. The environmental statutes administered by EPA (e.g.,
TSCA, FIFRA) contain provisions authorizing the Agency to
disclose to contractors information collected pursuant to
those statutes. However, information not collected pursuant
to an environmental statute, e.g., information collected
from an Agency contractor, may not be disclosed to anyone
outside the Federal Government, such as another contractor,
UNLESS THE SUBMITTER OF THE INFORMATION HAS CONSENTED TO
SUCH DISCLOSURE.
Q: if CBI that the contractor sees is collected pursuant to an
environmental statute, is my inquiry finished?
A: No. 40 CFR (2.301(h) requires that several steps be taken
before CBI can be disclosed to a contractor or subcontractor.
These include:
~ writing into the contract certain provisions concerning
use and disclosure of CBI, as spelled out in EPA
contract clause EPAAR 1552.235-71;
in the case of data collected under TSCA or FIFRA,
writing into the contract certain provisions concerning
/ security of CBI (see EPAAR 1552.235-72); and
prior to disclosure, giving notice to submitters
(either by letter of by Federal Register notice) of the
information to be disclosed, the identify of the
contractor or subcontractor, and the purpose of the
disclosure.
If these steps have not been followed, then the contractor
is not authorized the view the CBI.
Q: If contractor A is to view CBI from Contractor B, (i.e.,
not submitted under the authority of an environmental
statute), what is necessary to authorize contractor A to
view contractor B's CBI?
1 For data collected under EPCRA/SARA Title III, 40 CFR
{350.23(b) is the applicable regulation.
H-4
-------
A: The contractor submitting CBX must have given written consent
for such disclosure, through one of the following methods:
a letter specifically authorizing disclosure to
Agency contractors;
a contract provision specifically authorizing disclosure
to Agency contractors; or
-- a provision in an EPA solicitation authorizing disclosure
to Agency contractors for audit purposes only.
Note the following limitations on consent:
When a contractor gives such consent it will generally
be very narrow. That is, it may apply only to
information collected pursuant to the administration
of one specific contract, only for a specific purpose,
to one specific contractor, etc. Therefore, consent by
a contractor to one disclosure cannot necessarily be
relied upon for other disclosures to Agency contractors.
A notice published by the Agency in the Federal Register
does not constitute consent, even if the submitter reads
the notice and does nothing. Consent must be
demonstrated by a positive act of;the submitter.
In addition, the contractor who will be given access to
other contractors' CBI must be working under a contract
which contains contract clause EPAAR 1552.235-71.*
If these steps have not been followed, then the contractor
is not authorized to view the CBI.
It you have questions concerning this guidance, call Don
SadowsXy of the Office of General Counsel at (202) 260-5469.
o
2 Although the preamble of EPAAR 1552.235.71 contemplates that
this clause be used when providing a contractor with CBI obtained
pursuant, to one of the environmental statutes administered by
EPA, it* provisions are relevant to this discussion of CBI
obtained from an Agency contractor. Nonetheless, in order to
eliminate any possible ambiguity concerning the scope of this
provision, an additional provision should be added to the
contract stipulating that, for the purposes of this contract,
EPAAR 1552.235-71 shall apply to any Confidential Business
Information provided to the contractor by EPA, whether or not
obtained pursuant to an environmental statute.
M-5
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