United States
Environmental Protection
Agency
Office of Solid Waste
and Emergency Response
Washington, DC 20460
9242.3-11A
EPA540/R-94/113
PB94-963418
May 1995
«EPA
Superfund
Response Action Contract
(RAG) Users' Guide -
Volume 2: Process Guide
) Printed on Recycled Paper
-------
United States Office of Solid Waste 9242.3-11A
Environmental Protecton and Emergency Response EPA 540/R-94/113
Agency Washington. DC 20460 PB94-963418
May 1995
^ ^_ _ Superfund
©ERA
Response Action Contract
(RAC) Users' Guide -
Volume 2: Process Guide
-------
Disclaimer
This Users' Guide is intended solely for use by EPA Work Assignment Managers, Project Officers, and
Contracting Officers in managing and administering the Agency's Response Action Contracts (RACs).
This guide does not establish Agency-wide policies or procedures. This guide is not intended and cannot
be relied upon to create any rights, substantive or procedural, enforceable by any party in litigation with
the United States. EPA reserves the right to act at variance with the policies and procedures in this guide
and to change them at any time without public notice. The descriptions of contractor responsibilities
included in this guide are informational and do not assign or limit contractor responsibilities under RACs.
-------
Status Change Form
The Superfund Document Center
401 M Street, SW • Mail Code 5201G • Washington, DC 20460 • (703) 603-8917
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Name
City
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State
TSET
Status Change Form
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401 M Street, SW • Mail Code 5201G • Washington, DC 20460 • (703) 603-8917
Q Change Q Add Q Delete |
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Zip
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Status Change Form
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-------
Response Action Contract
Users'Guide
Volume 2: Process Guide
Table of Contents
MAY 31. 1995
-------
TABLE OF CONTENTS
Foreword xvi,
Acknowledgments m
Chapter 1
Introduction 1-1
1.1 Purpose of the /MC Users' Guide 1-1
1.2 Required, Core, and Noncore Elements of Guidance 1-1
1.3 How to Use the Guide 1-2
1.4 Content and Organization of the Guide 1-3
1.5 Where RAC Clauses Are Addressed in the Guide 1-5
1.6 Updates to the Guide 1-5
Chapter 2
Contract Structure, Sensitive Issues, Management
Responsibilities, and Interactions 2-1
Chapter 3
Mobilization 3-1
3.1 The Mobilization Process 3-1
3.2 Required, Core, and Noncore Elements of Mobilization 3-11
3.3 Region-Specific Guidance on Mobilization 3-13
Chapter 4
Contract Administration 4-1
4.1 Introduction 4-1
MAY 31, 1998
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
4.2 Roles and Responsibilities for Contract Administration 4-3
4.3 Contract Funding 4-7
4.3.1 Contract Funding Procedures 4-9
4.3.2 Timing of Funding Actions 4-11
4.3.3 Control of Contract Fund Expenditures 4-12
4.3.4 Required, Core, and Noncore Elements of Contract Funding 4-12
4.4 Exercising Contract Options 4-13
4.4.1 Exercising Options to Increase Quantities 4-15
4.4.2 Exercising the Option to Extend the Contract Term 4-17
4.4.3 Required, Core, and Noncore Elements of Exercising
Contract Options 4-20
4.5 Contract Modifications 4-21
4.5.1 Procedures for Making Contract Modifications Due to
Administrative Changes 4-24
4.5.2 Procedures for Making Contract Modifications Due to
Substantive Changes 4-26
4.5.3 Required, Core, and Noncore Elements of Making
Contract Modifications 4-29
4.6 Contract Claims and Disputes 4-31
4.6.1 Procedures for Processing Contract Claims and Disputes 4-33
4.6.2 Required, Core, and Noncore Elements of the Claims and
Disputes Process 4-37
4.7 Subcontract Review and Consent 4-39
4.7.1 How to Review and Consent to Issuance of Subcontracts 4-41
4.7.2 Required, Core, and Noncore Elements of Subcontract Review
and Consent 4-44
4.8 Handling Conflict of Interest Issues 4-45
4.8.1 How to Handle Conflict of Interest Issues 4-47
4.8.2 Required, Core, and Noncore Elements of Handling Conflict
of Interest Issues 4-52
4.9 Managing Regional Crossovers 4-55
4.9.1 Administering and Managing Regional Crossovers 4-57
4.9.2 Required, Core, and Noncore Elements of Managing Regional
Crossovers 4-60
4.10 Implementing Control Measures for Vulnerable Contracting Areas 4-61
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TABLE OF CON1ENTS
4.10.1 Implementing Control Measures for Advisory and Assistance
Services 4-63
4.10.2 Implementing Control Measures for Sensitive Contracting
Areas 4-64
4.10.3 Implementing Control Measures for General Contracting Areas
Requiring Special Contract Controls 4-64
4.10.4 Implementing Control Measures for Specific Contract Work
Areas 4-66
4.10.5 Required, Core, and Noncore Elements of Implementing Control
Measures for Vulnerable Contracting Areas 4-69
4.11 Small and Small Disadvantage!) Business Utilization, Contractor Participa-
tion in Mentor-Protege Program, and Use of Labor Surplus Areas 4-71
4.11.1 Monitoring Contractor Compliance with Subcontracting Plan 4-73
4.11.2 Required, Core, and Noncore Elements of Monitoring Compliance
with Subcontracting Plan 4-75
4.12 Annual Allocation of Non-Site-Specific Costs 4-77
4.12.1 Annual Allocation Procedures 4-79
4.12.2 Required, Core, and Noncore Elements of Annual Allocation 4-80
4.13 Annual Closeout 4-81
4.13.1 The Annual Closeout Process 4-83
4.13.2 Required, Core, and Noncore Elements of Annual Closeout 4-90
4.14 Region-Specific Guidance on Contract Administration 4-93
Chapter 5
Issuing and Managing Work Assignments 5-1
5.1 Introduction 5-1
5.2 Roles and Responsibilities for Issuing and Managing Work Assignments... 5-3
5.3 Allocating Site-Specific Work Assignments to Contractors 5-7
5.3.1 Factors to Consider in Allocating Work to RAC Contractors 5-9
5.3.2 Preparing the Work Assignment Allocation Matrix 5-11
5.3.3 Calculating the Average Twelve-Month Performance Index Rating
Score 5-13
5.3.4 Required, Core, and Noncore Elements of Allocating
Site-Specific Work Assignments to Contractors 5-15
5.4 Developing the Work Assignment Statement of Work 5-17
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MAY 31, 1905
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
5.4.1
5.4.2
5.5
5.5.1
5.5.2
5.6
5.6.1
5.6.2
5.6.3
5.6.4
5.7
5.7.1
5.7.2
5.8
5.8.1
5.8.2
5.8.3
5.9
5.9.1
5.9.2
5.9.3
5.10
5.10.1
5.1 0.2
5. 1 0.3
5.11
How to Develop the Work Assignment Statement of Work .............. 5-1 9
Required, Core, and Noncore Elements of Developing the Work
Assignment Statement of Work [[[ 5-28
Preparing and Using the Independent Government Cost Estimate ........... 5-29
How to Prepare and Use the Independent Government Cost
Estimate [[[ 5-31
Required, Core, and Noncore Elements in Developing the Work
Assignment Statement of Work [[[ 5-35
Assignment [[[ 5-37
Preparing and Issuing the Work Assignment ................................... 5-39
Completing the Work Assignment Form .......................................... 5-44
Completing the Procurement Request for Remedial Action and
Completion-Form Work Assignments .............................................. 5-46
Required, Core, and Noncore Elements of Preparing the Work
Assignment Package and Issuing the Work Assignment ................. 5-49
Work Plan Technical Review and Cost Evaluation ................................... 5-51
How to Review and Evaluate the Contractor's Work Plan ............... 5-53
Required, Core, and Noncore Elements of Work Plan Review
and Evaluation [[[ 5-63
Work Assignment Funding [[[ s-65
How to Fund Work Assignments Site-Specifically ............................ 5-67
Funding Work Assignments Under Bulk Funding ............................. 5-69
Required, Core, and Noncore Elements of Work Assignment
Funding
5.70
Establishing and Changing the Expenditure Limit .................................. 5-73
Process for Establishing and Changing the Expenditure Limit ........ 5-75
Preparing the Work Assignment Form to Change the
Expenditure Limit [[[ 5-78
Required, Core, and Noncore Elements of Establishing
and Changing the Expenditure Limit ................................................ 5-78
Issuing Technical Direction [[[ 5-79
How to Issue Work Assignment Technical Direction ........................ 5-83
Completing the Work Assignmnent Form to Issue
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TABLE OF CONTENTS
5.11.1 How to Amend the Work Assignment 5-87
5.11.2 Changes in a Remedial Action Work Assignment 5-89
5.11.3 Preparing the Work Assignment Form to Amend the Work
Assignment 5-91
5.11.4 Required, Core, and Noncore Elements of Amending the Work
Assignment 5-92
5.12 Wage Rates and Surety Bonds for Remedial and Non-Time-Critical Removal
Action Subcontracts 5-93
5.12.1 Determination of Wage Rates for Remedial
and Non-Time-Critical Removal Action Subcontracts 5-95
5.12.2 Performance and Payment Bonding of Contractors 5-98
5.12.3 Required, Core, and Noncore Elements of Wage Rates and
Surety Bonds for Remedial and Non-Time-Critical Removal
Action Subcontracts 5-100
5.13 Value Engineering 5-103
5.13.1 Value Engineering During Remedial Design 5-105
5.13.2 Value Engineering During Remedial Action 5-108
5.13.3 Required, Core, and Noncore Elements of Value Engineering 5-110
5.14 Contractor Oversight 5-113
5.14.1 Monitoring Overall Contract Performance 5-115
5.14.2 Monitoring Work Assignment Performance 5-117
5.14.3 Required, Core, and Noncore Elements of Contractor Oversight.. 5-120
5.15 Site Demobilization 5-121
5.15.1 The Site Demobilization Process 5-123
5.15.2 Required, Core, and Noncore Elements of Site Demobilization.... 5-126
5.16 Work Assignment Closeout Procedures 5-127
5.16.1 The Work Assignment Closeout Process 5-129
5.16.2 Required, Core, and Noncore Elements of Work Assignment
Closeout Procedures 5-137
5.17 Region-Specific Guidance on Issuing and Managing
Work Assignments 5-139
Chapter 6
Administering the Performance (Award) Fee Plan 6-1
6.1 The Performance Evaluation and Fee Determination Process 6-1
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MAY 31, 1995
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RAC USERS1 GUIDE.'VOLUME 2: PROCESS GUIDE
6.2 Performance Evaluation Forms, Criteria, and Rating Guidelines 6-13
6.3 * Required, Core, and Noncore Elements of Administering the Performance
(Award) Fee Plan 6-27
6.4 Region-Specific Guidance for Administering the Performance
(Award) Fee Plan 6-29
6.4.1 Introduction 6-29
6.4.2 Regional Performance (Award) Fee Plan Guidance 6-29
Chapter 7
Using RAC Reports 7-1
Hi/sc/iapter«
Chapter 8
Equipment
77)/5 c/iapfem
Chapter 9
Delivery of Analytical Services 9-1
9.1 The Analytical Services Acquisition and Management Process 9-1
9.2 Required, Core, and Noncore Elements of Analytical Services Acquisition
and Management 9-8
9.3 Region-Specific Guidance on Analytical Services Acquisition and
Management 9-11
Chapter 10
Cost Management 10-1
10.1 Managing Cost and Progress Information 10-2
10.2 Reviewing Contractor Invoices 10-2
MAY 31. 1995
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TABLE OF CONTENTS
10.3 Conducting Voucher/Invoice Validation Reviews 10-7
10.4 Required, Core, and Noncore Elements of Cost Management 10-13
10.5 Region-Specific Guidance on Cost Management 10-15
Chapter 11
Records Management 11-1
11.1 Establishing Files 11-1
11.1.1 Establishing Contract Management Files 11-1
11.1.2 Establishing Site Files 11-3
11.2 Maintaining Files 11-6
11.3 Retiring Files 11-7
11.3.1 Retiring Contract Management Files 11-7
11.3.2 Retiring Site Files 11-8
11.3.3 Retirement Process 11 -8
11.4 Required, Core, and Noncore Elements of Records Management 11-13
11.5 Region-Specific Guidance on Records Management 11-15
Chapter 12
Contract Closeout 12-1
12.1 The Contract Closeout Process 12-1
12.2 Required, Core, and Noncore Elements of Contract Closeout 12-19
12.3 Region-Specific Guidance on Contract Closeout 12-21
Chapter 13
Revisions to the MC Users' Guide 13-1
13.1 Supplemental Guidance 13-1
13.2 Annual Updates 13-1
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MAY 31, 1996
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Appendix
Appendix A
Exhibits
Exhibit 1-1
Exhibit 3-1
Exhibit 3-2
Exhibit 4-1
Exhibit 4-2
Exhibit 4-3
Exhibit 4-4
Exhibit 4-5
Exhibit 4-6
Exhibit 4-7
Exhibit 4-8
Exhibit 4-9
Exhibit 4-10
Exhibit 4-11
Exhibit 4-12
Exhibit 4-1 3
Exhibit 4-1 4
Exhibit 4-15
Exhibit 4-1 6
Exhibit 4-1 7
Exhibit 4-1 8
Exhibit 4-1 9
Exhibit 4-20
Users' Guide Revisions
Chapter Summaries
Process Flow for Mobilization
Required, Core, and Noncore Elements of Mobilization
Process Flow for Contract Funding
Required, Core, and Noncore Elements of Contract
Funding
Process Flow for Exercising Options to Increase
Quantities
Process Flow for Exercising the Option to Extend the
Contract Term
Required, Core, and Noncore Elements of Exercising
Contract Options
Determining the Nature of a Contract Modification
Process Flow for Making Contract Modifications Due to
Administrative Changes
Process Flow for Making Contract Modifications Due to
Substantive Changes
Required, Core, and Noncore Elements of Making Contract
Modifications
Process Flow for Handling Contract Claims and Disputes
Paragraph Informing the Contractor of the Right to Appeal ...
Required, Core, and Noncore Elements of the Claims and
Disputes Process
Process Flow for Subcontract Review and Consent
Required, Core, and Noncore Elements of Subcontract
Review and Consent
Process Flow for Handling Conflict of Interest Issues
Conflict of Interest Information to be Contained in
Contractor's Disclosure and Available Within EPA
Conflict of Interest Indicators
Required, Core, and Noncore Elements of Handling
Conflicts of Interest
Process Flow for Managing Regional Crossovers
1-4
3-2
3-9
4-9
4-12
4-16
4-17
4-20
4-23
4-24
4-27
4-29
4-34
4-36
4-37
4-42
4-44
4-47
4-49
4-51
4-53
4-57
Required, Core, and Noncore Elements of Managing Regional
Crossovers
4-60
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MAY 31. 1995
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TABLE OF CONTENTS
Exhibit 4-21
Exhibit 4-22
Exhibit 4-23
Exhibit 4-24
Exhibit 4-25
Exhibit 4-26
Exhibit 4-27
Exhibit 4-28
Exhibit 4-29
Exhibit 4-30
Exhibit 5-1
Exhibit 5-2
Exhibit 5-3
Exhibit 5-4
Exhibit 5-5
Exhibit 5-6
Exhibit 5-7
Exhibit 5-8
Exhibit 5-9
Exhibit 5-10
Exhibit 5-11
Exhibit 5-12
Exhibit 5-13
Exhibit 5-14
Exhibit 5-15
Exhibit 5-16
Exhibit 5-17
Required, Core, and Noncore Elements of Implementing
Control Measures for Vulnerable Contracting Areas 4-70
Methods of Monitoring Contractor Compliance with
Subcontracting Plan 4-73
Required, Core, and Noncore Elements of Monitoring
Compliance with Subcontracting Plan 4-75
Process Flow for Annual Allocation 4-79
Required, Core, and Noncore Elements of Annual
Allocation 4-80
Process Flow for Annual Closeout 4-84
Sample Summary of Costs Claimed for FYE XX 4-85
Sample Summary of Costs Claimed for FYE XX by Work
Assignment 4-86
Sample Billing Summary for FYE XX 4-87
Required, Core, and Noncore Elements of Annual
Closeout 4-91
Work Assignment Allocation Matrix 5-12
Development of Composite PIRS for the Two Most Recent
Evaluation Periods 5-14
Required, Core, and Noncore Elements of Allocating
Site-Specific Work Assignments to Contractors 5-15
Process Flow for Developing a Work Assignment
Statement of Work 5-20
Elements of the Statement of Work 5-26
Guidelines for Writing the Statement of Work 5-27
Required, Core, and Noncore Elements of Developing
the work Assignment Statement of Work 5-28
Process Flow for
Government Cost
•ing and Using the Independent
:imate 5-32
Required, Core, and Noncore Elements of Preparing and
Using the Independent Government Cost Estimate 5-36
Process Flow for Preparing and Issuing the
Work Assignment 5-39
EPA Form 1900-65A, Nomination and Appointment of
Contracting Officer's Representative 5-41
Work Assignment Number Structure 5-42
EPA Work Assignment Form 5-45
EPA Form 1900-8, Procurement Request 5-47
Required, Core, and Noncore Elements of
Preparing the Work Assignment Package and
Issuing the Work Assignment 5-49
Process Flow for Work Plan Review and Evaluation 5-54
Optional Form-60 (OF-60) 5-56
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MAY 31, 1095
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-18
Exhibit 5-19
Exhibit 5-20
Exhibit 5-21
Exhibit 5-22
Exhibit 5-23
Exhibit 5-24
Exhibit 5-25
Exhibit 5-26
Exhibit 5-27
Exhibit 5-28
Exhibit 5-29
Exhibit 5-30
Exhibit 5-31
Exhibit 5-32
Exhibit 5-33
Exhibit 5-34
Exhibit 5-35
Exhibit 5-36
Exhibit 5-37
Exhibit 5-38
Exhibit 5-39
Exhibit 5-40
Exhibit 5-41
Standard Form 1411 5-57
Questions to Consider When Reviewing Contractor
Work Plans 5-58
Questions to Consider When Reviewing Contractor Cost
Estimates 5-58
Work Plan Evaluation Checklist 5-60
Required, Core, and Noncore Elements of Work Plan
Review and Evaluation 5-63
Process Flow for Funding Work Assignments
Site-Specifically 5-68
Required, Core, and Noncore Elements of
Wort Assignment Funding 5-71
Process Flow for Establishing and Changing the
Expenditure Limit 5-75
Required, Core, and Noncore Elements of Establishing
and Changing the Expenditure Limit 5-78
Process Flow for Issuing Work Assignments Technical
Direction Using a WAF 5-81
Required, Core, and Noncore Elements of Issuing
Technical Direction 5-84
Process Flow for Amending a Work Assignment 5-87
Process Flow for Issuing a Change Within a Remedial
Action Work Assignments 5-90
Required, Core and Noncore Elements of Amending the
Work Assignment 5-92
Process Flow for Determining Wage Rates for
Remedial and Non-Time-Critical Action Subcontracts 5-95
Decision Tree for Determining Wage Rates for
Remedial and Non-Time-Critical Action Subcontracts 5-97
Process Flow for Performance and Payment Bonding of
Contractors 5-99
Required, Core, and Noncore Elements of Wage Rates
and Surety Bonds for Remedial and Non-Time-
Critical Action Subcontracts 5-101
Process Flow for Value Engineering During Remedial
Design 5-106
Process Flow for Value Engineering During Remedial
Action 5-109
Required, Core, and Noncore Elements of Value
Engineering 5-111
Required, Core, and Noncore Elements of Contractor
Oversight 5-120
Process Flow for Site Demobilization 5-124
Required, Core, and Noncore Elements of Site
Demobilization 5-126
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MAY 31, 1995
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TABLE OF CONTENTS
Exhibit 5-42 Prxess Flow for Work Assignment Closeout 5-130
Exhibit 5-43 Work Assignment Completion Report (EPA Version) 5-131
Exhibit 5-44 Work Assignment Completion Report
(Contractor Version) 5-134
Exhibit 5-45 Required, Core, and Noncore Elements of
Work Assignment Closeout Procedures 5-137
Exhibit 6-1 Process Flow for Performance Evaluation and
Fee Determination 6-2
Exhibit 6-2 Suggested Performance Evaluation Timeline 6-3
Exhibit 6-3 Development of Evaluation Period PIRS 6-8
Exhibit 6-4 Performance Evaluation Form 6-14
Exhibit 6-5 Regional Evaluation Summary 6-17
Exhibit 6-6 Work Assignment Completion Report 6-18
Exhibit 6-7 Evaluation Criteria for Program Support 6-21
Exhibit 6-8 Evaluation Criteria for Site-Specific Activities 6-22
Exhibit 6-9 Rating Guidelines 6-23
Exhibit 6-10 Required, Core, and Noncore Elements of Administering the .
Performance (Award) Fee Plan 6-27
Exhibit 7-1 Use of RAC Progress Reports 7-2
Exhibit 7-2 Use of RAC National Reports 7-3
Exhibit 7-3 Required, Core, and Noncore Elements of Using
RAC Reports 7-5
Exhibit 9-1 Process Flow for Acquiring and Managing Analytical
Services 9-2
Exhibit 9-2 Required, Core, and Noncore Elements of Analytical
Services Acquisition and Management 9-9
Exhibit 10-1 Process Flow for Monthly Invoice Review 10-3
Exhibit 10-2 Items to Consider in Reviewing Monthly Invoices 10-5
Exhibit 10-3 Process Flow for Voucher/Invoice Validation Review 10-8
Exhibit 10-4 Checklist for Voucher/Invoice Validation Review 10-9
Exhibit 10-5 Required, Core, and Noncore Elements of
Cost Management 10-14
Exhibit 11-1 Contents of the Work Assignment Manager, Project Officer,
and Contracting Officer Contract Management Files 11-2
Exhibit 11-2 Removal Site File Structure, EPA Series No. Site-013 11-4
Exhibit 11-3 Remedial Site File Structure, EPA Series No. Site-014 11-5
Exhibit 11 -4 Milestones Used to Retire Contract Management Files 11-7
Exhibit 11-5 Sample Standard Form 135 11-11
Exhibit 11 -6 Required, Core, and Noncore Elements of Records
Management 11-13
XV
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 12-1
Exhibit 12-2
Exhibit 12-3
Exhibit 12-4
Exhibit 12-5
Exhibit 12-6
Exhibit 12-7
Exhibit 12-8
Exhibit 12-9
Exhibit 12-10
Exhibit 12-11
Process Flow for Administering Contract Closeout 12-2
Contract Closeout Checklist 12-3
Project Officer Certification Memo 12-4
Project Officer's Evaluation of Contractor Performance
(EPA Form 1900-27) 12-5
Contracting Officer's Evaluation of Contractor Performance
(EPA Form 1900-26) 12-7
Contractor's Cumulative Claim and Reconciliation
(EPA Form 1900-10) 12-11
Sample Final Contract Audit Request 12-12
Contractor's Assignment of Refunds, Rebates, and Credits
(EPA Form 1900-5) 12-13
Contractor's Release (EPA Form 1900-6) 12-14
Assignee's Release (EPA Form 1900-3) 12-15
signee's Assignment of Refunds, Rebates, Credits,
and Other Amounts (EPA Form 190CM) 12-16
Required, Core, and Noncore Elements of
Contract Closeout 12-19
Exhibit 12-12
Exhibit 13-1 Annual Update Trekking Sheet 13-3
xvl
MAY 31. 1995
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FOREWORD
Foreword
This is the Users' Guide for the Response Action Contracts (RACs)
procured by the U. S. Environmental Protection Agency (EPA) to accom-
plish response planning and oversight activities under the Comprehensive
Environmental Response Compensation and Liability Act of 1980
(CERCLA) as amended by the Superfund Amendments and Reauthoriza-
tion Act of 1986 (SARA). This guide was prepared by the RAG Users'
Guide Work Group, an Agency group composed of representatives from
the ten EPA Regional Offices and EPA Headquarters. The guide is for use
by RAC Work Assignment Managers (WAMs), Project Officers (POs),
and Contracting Officers (COs) in managing and administering RACs.
This volume of the guide, Volume 2: Process Guide, describes procedures
for the WAMs, POs, and COs to follow in performing specific manage-
ment and administrative activities for RACs.
This guide does not duplicate other Agency guidance and should be
supplemented with other guidance for specific activities. Citations for
supplemental guidance are included throughout the guide where appli-
cable.
Inquiries and comments concerning this guide should be made to:
Nancy Ortowski
Hazardous Site Control Division (S203G)
Office of Emergency and Remedial Response
U.S. Environmental Protection Agency
401 M Street, S.W.
Washington, DC 20460
(703) 603-8785
Additional copies of this document (PB94-963417) may be obtained from
the following source:
Superfund Document Center (5201G)
401 M Street, S.W.
Washington, DC 20460
(703) 603-8917
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MAY 31, 1995
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TABLE OF CONTENTS
Acknowledegments
The RAC Users' Guide Work Group Leader, Nancy Ortowski, extends
special recognition to the following individuals for their written contribu-
tions and ongoing support, essential technical expertise, and invaluable
recommendations and insight:
Keith Kollar (Region 2)
Peggy Hendrixson (Region 5)
Steve Nathan (Region 5)
Thomas Short (Region 5)
Eve Boss (Region 6)
Richard Warrell (Region 6)
Deborah Morey (Region?)
Lowell Toole (Region 7)
Appreciation also is extended to the following individuals on the RAC
Users' Guide Work Group for all of their indispensable contributions in
the development of this guide:
Kathleen Hunt (Region 1)
Hilary Kelley (Region 1)
Diana King (Region 1)
Maggie Leshen (Region 1)
Kevin Weaver (Region 2)
Jim Clark (Region 3)
Martin Kotsch (Region 3)
Lester Lewis (Region 4)
Keith Mills (Region 4)
Jeff Napier (Region 4)
MattRobbins (Region 4)
Rob Stern (Region 4)
Doug Thompson (Region 4)
Carlene Chambers (Region 6)
Deborah Ponder (Region 6)
TomC. Reilly (Region 6)
LindaGarwood (Region?)
Steve Callio (Region 8)
Clyde LoSasso (Region 8)
Jeff Mashburn (Region 8)
Travis Cain (Region 9)
Wenona Garside (Region 9)
MikeOsinski (Region 9)
Diane Strassmaier (Region 9)
Tom Warner (Region 9)
Joanne LaBaw (Region 10)
D. J. Lovelady (Region 10)
John Blanchard (OERR)
Awilda Fuentes (OERR)
Kenneth Skahn (OERR)
Julianne Edmondson (OAS)
Martha (Marty) Cook (CAM)
Saul Goldberg (OAM)
Karen Higginbotham (OAM)
Richard Feldman (OGC)
Lisa Jenkins (OSWER)
Thank you also to Scott Fredericks and William Zobel for dedicating
resources to this project.
xlx
MAY 31, 1995
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Response Action Contract
(RAQ Users' Guide
Volume 2: Process Guide
Introduction
CHAPTER
MAY 31. 1995
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RAC USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
1 2 Reouired Core and Noncore Elements of Guidance
13 How to Use the Guide
1 4 Content and Organization of the Guide
1 5 Where RAC Clauses Are Addressed in the Guide
16 Uodates to the Guide
Exhibits
Exhibit 1-1 Chanter Summaries
1-1
1-2
1-3
1-5
1-5
1-4
Acronyms
CMT
CO
COI
EPAAR
FAR
LTCS
OSWER
PO
RAC
SOW
WA
WAM
WP
Contract Management Team
Contracting Officer
Conflict of Interest
EPA Aquation Regulation
Federal Acquisition
Regulation
Long-Term Contracting
Strategy
Office of Solid Waste and
Emergency Response
Project Officer
Response Action Contract
Statement of Work
Work Assignment
Work Assignment Manager
Work Plan
MAY 31, 1995
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CHAPTER 1 • INTRODUCTION
1,1 Pupseofthe/MCI/se/s'Gi/Kte
The purpose of the Response Action Contract (RAC) Users' Guide is to
provide user-friendly, comprehensive guidance to all current and future
RAC managers. The guide establishes sound contract management
principles and procedures necessary for RAC managers to responsibly
perform their contract management duties according to the terms and
requirements of the contract, the Federal Acquisition Regulation (FAR),
the EPA Acquisition Regulation (EPAAR), EPA orders, and Office of Solid
Waste and Emergency Response (OSWER) directives. The guide provides
guidance for the core RAC Contract Management Team (CMT)—Work
Assignment Managers (WAMs), Regional Project Officers (POs), and
Contracting Officers (COs)—on administering and managing RACs, and
defines individual responsibilities of the WAMs, POs, and COs. This
approach allows all members of the CMT to understand the full spectrum
of RAC processes and responsibilities. The goal of the guide is to pro-
mote national consistency in RAC management, while allowing flexibility
for Region-specific procedures as needed.
1,2 Required, Core, and Noncore Elements of Guidance
The Headquarters Users' Guide Coordination Work Group recommends
that users' guides for all Long-Term Contracting Strategy (LTCS) con-
tracts identify guidance in three categories: required, core, and noncore.
This approach establishes parameters that provide Regional Flexibility to
promote efficient contract management, while supporting the need for
Headquarters contract oversight and the national program consistency in
administration and management of the contracts. Required, core and
noncore elements of guidance are defined as follows.
1) Required elements are pan of the contract or are required by directive
or law (i.e., FAR, EPAAR). Required elements are not subject to revi-
sion. The management of these elements must be consistent throughout
the Regions.
2) Core elements are significant elements of contract administration that
are generally supported or outlined by Agency implementation guid-
ance. Core elements include practices that the RAC Users' Guide Work
Group agrees all Regions should abide by for programmatic consis-
tency. Core elements are subject to change by a Region as long as the
change is fully documented and agreed upon by Headquarters.
Notification of Regional changes to core elements and the purpose for
the change(s) should be forwarded to the designated LTCS Program
lead for RACs. The LTCS Program lead disseminates this information
to the Office of Acquisition Management, OSWER Acquisition Staff,
RAC Users' Guide Work Group, and LTCS Users' Guide Work Group,
as appropriate.
1-1
The guide defines required, core,
and noncore elements of guidance.
MAY 31. 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Regions should insert in the guide
Region-specific procedures for
approved deviations from core
elements and treatment ofnoncore
elements.
The Reference Guide is
informational and the Process
Guide is procedural.
The LTCS Program lead follows up on any unresolved issues (if
necessary) and coordinates replies to the Region, as well as tracking
changes to the RAC Users' Guide. There is a 21 calendar-day
timeframe for issuing a response to a Region's deviation request. Upon
receiving the request, the LTCS Program lead notifies the Region that
the request has been received and is in process. This notification starts
the clock on the 21 calendar-day period. The Region may implement
the deviation beginning on the 22nd calendar-day unless the Region
has been notified by Headquarters that its request was denied or
additional time is needed to issue a response. Should the approval of a
change be needed within a shorter time frame, expedited communica-
tion tools (e.g., phone, fax, E-mail) should be used. This approach
provides RAC management with the necessary consistency and allows
sharing of good ideas with other Regions. Regional procedures for
approved deviations from core elements must be included in the guide
in the designated sections of Volume 2: Process Guide.
3) Noncore elements are minor elements of contract administration that
allow for variances in Regional procedures. Regions must document
changes to noncore elements and are encouraged to provide this
information to the Headquarters program lead. Region-specific proce-
dures for noncore elements should be included in the guide in the
designated section at the end of the appropriate chapter.
Matrices of required, core, and noncore elements of guidance appear in
each chapter of the guide. In Chapters 4 and 5, these matrices appear in
each section.
1.3 How to Use the Guide
The RAC Users' Guide is presented in two volumes:
• Volume 1: Reference Guide contains background, descriptive, and
policy information on the RAC program. The Reference Guide dis-
cusses the background and requirement for each process and lists roles
and responsibilities of individuals involved in the process. The Refer-
ence Guide contains the following appendices:
- Appendix A—Glossary defines key terms used in the guide.
- Appendix B—Contract Clause Matrix identifies RAC clauses and
indicates where in the guide they are referenced or discussed.
- Appendix C—Users' Guide Revisions provides a holding area for
the Regions to place notices of Users' Guide revisions received
throughout the year.
Appendix D—Directives provides a place for the Regions to keep
Agency directives that relate to Users' Guide topics.
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MAY 31,.1095
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CHAPTER 1 • INTRODUCTION
- Appendix E—fact Sheets provides a place for the Regions to keep
Fact Sheets that relate to Users' Guide topics.
- Appendix F—Forms on Diskette provides a diskette containing
electronic versions of most RAC forms shown in the guide.
- Appendix G—Model Statements of Work, provided in a separate
volume, contains model statements of work for specific phases of
the remedial process for the Regions' use in developing RAC
work assignments (WAs).
• Volume 2: Process Guide is the "how to" part of the guide that recom-
mends procedures for the WAMs, POs, and COs to follow in managing
RACs. For most activities, the Process Guide provides a process flow
diagram and step-by-step procedures identifying WAM, PO, and CO
roles.
The Process Guide has one appendix, Appendix A—Users' Guide
Revisions, which provides a holding area for the Regions to place
notices of Users' Guide revisions received throughout the year.
The Reference Guide and Process Guide are organized identically so that
the chapters for each match. In Chapters 4 and 5, the sections correlate as
well. For example, for information on contract funding, the user should
turn to sections 4.3 of the Reference Guide and 4.3 of the Process Guide.
Users should consult the Process Guide for specific procedures for
administering and managing RACs. Users first should look at the process
flow for an overview of the entire process, the individual steps in the
process, and interactions of individuals in the process. Each process flow
includes numbered steps and is followed by a step-by-step description of
the process. At the end of each step is a list of WAM, PO, and CO respon-
sibilities in that step.
There is a section in each chapter that identifies the required, core, and
noncore elements of guidance. In Chapters 4 and 5, required, core, and
noncore elements are identified in each section. At the end of each chap-
ter, the guide contains a section for Regions to insert Region-specific
guidance.
The Process Guide is intended for daily use by RAC WAMs, POs, and
COs. It is particularly valuable in training new RAC managers and
promotes consistency of approach among all RAC WAMs, POs, and COs
during contract administration.
1.4 Content and Organization of the Guide
The RAC Users' Guide is organized into thirteen chapters. The same
thirteen chapters appear in the Reference Guide and Process Guide. For
each chapter, the Reference Guide contains the background information on
1-3
Chapters in the Reference Guide
correlate directly with those in the
Process Guide.
MAY 31, 1985
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 1-1. Chapter Summaries
the requirement and a list of management responsibilities; the Process
Guide contains the instructional guidance. A summary of each chapter is
provided in Exhibit 1-1.
Chapter 1 Introduction
This chapter discusses the purpose, content, and organization of the RAC Users'
Gu/deand provides guidance on how to use it. The chapter also highlights streamlining
initiatives and management improvements that have been incorporated in RAC
management and administration procedures.
Chapter 2 Contract Structure, Sensitive Issues, Management Responsibilities,
and Interactions
This chapter, which appears in Volume 1: Reference Guide, describes the basic
elements of RAC structure and discusses several contract-sensitive issues, such as
conflict of interest (COI) and indemnification, in terms of their impact on managing
RAC performance. The chapter also describes the division of contract management
responsibilities between the EPA Regional CMT and EPA Headquarters. Finally,
potential interactions of RAC contractors with other EPA contractors, Federal agencies,
and/or State and local governments are identified.
Chapters Mobilization
This chapter describes the activities involved in contractor mobilization and EPA
oversight of those activities.
Chapter 4 Contract Administration
This chapter discusses 11 aspects of contract administration, such as funding,
exercising contract options, contract modifications, handling COI and Regional
crossovers, and annual allocation of non-site-specific costs.
Chapter 5 Issuing and Managing Work Assignments
This chapter describes how to issue and manage WAs under RACs, beginning with
developing the WA SOW, continuing through WA issuance and work plan (WP) review
and approval, and ending with WAcloseout. The chapter provides general guidance
for preparing the independent government cost estimate, conducting WP negotiations,
contractor oversight, issuing technical direction, and funding and amending WAs.
There are related discussions on surety bonding, value engineering, and site
demobilization.
Chapter 6 Administering the Performance (Award) Fee Plan
This chapter explains how the RAC Performance (Award) Fee Plan will be implemented,
and provides guidance to performance monitors on how to administer the base and
performance (award) fee provisions of the contract.
Chapter? Using RAC Reports
This chapter describes RAC reporting requirements and discusses how EPA uses
the information in each report.
Chapters Equipment
Due to last minute changes in EPA policy on government property, Chapter 8 will be
issued at a later date.
1-4
51-033-1570
MAY 31, 1995
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CHAPTER 1 • INTRODUCTION
Chapter 9 Analytical Services Acquisition and Management
This chapter describes the conditions and alternatives for acquiring analytical services
under RACs, and provides guidance on how to manage analytical services contracted
through RACs.
Chapter 10 Cost Management
This chapter describes the elements ol cost management applied in managing RACs,
including monitoring contractor costs, reviewing contractor invoices, conducting voucher
validation reviews, reviewing contractor claims and change orders, and tracking cost
recovery activities.
Chapter 11 Records Management
This chapter provides guidance on the proper organization, maintenance, and disposition
of RAC records. It emphasizes the importance of the contractor and EPA establishing
parallel contract and WA files.
Chapter 12 Contract Closeout
This chapter describes the requirements for contract closeout per the contract closeout
work area in the RAC SOW. It details the steps in the contract closeout process, from
EPA issuing the contract closeout WA, through property disposition, determination of
final costs, and receipt of the final voucher and report.
Chapter 13 Revisions to the RAC Users' Guide
This chapter explains how and when the RAC Users' Guide will be updated, describing
51-033-157(2)
1.5 Where RAC Clauses Are Addressed in the Guide
Appendix B—Contract Clause Matrix in Volume 1: Reference Guide lists
RAC clauses and identifies the section(s) or chapter(s) where the clauses
are addressed in the RAC Users' Guide. Clause citations appear in Volume
1: Reference Guide in the appropriate sections.
1.6 Updates to the Guide
The RAC Users' Guide is updated annually and as needed throughout the
year. Annual revisions are provided as "revision pages" to be inserted into
the guide to replace outdated pages. Supplemental revisions during the
year may be in the form of memoranda, directives, or revision pages,
depending on the type and scope of the change. An appendix is provided
in each volume of the guide to keep supplemental revisions that occur
during the year and to track insert pages. Procedures and responsibilities
for Users' Guide revisions are described in Chapter 13.
Exhibit 1-1.
contd,
1-5
MAY 31, 1996
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Response Action Contract
Users'Guide
Volume 2: Process Guide
Contract Structure,
Sensitive Issues,
Management
Responsibilities,
and Interactions
CHAPTER
MAY 31, 1991
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CHAPTER 2 • CONTRACT STRUCTURE, SENSITIVE ISSUES,
MANAGEMENT RESPONSIBILITIES, AND INTERACTIONS
The Response Action Contract (RAC) structure, contract-sensitive issues,
management responsibilities, and interactions of RAC contractors with
other EPA contractors and Federal, State, and local agencies are described
in Volume 1: Reference Guide
2-1
MAY 31, 1991
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Response Action Contract
(RAQ Users' Guide
Volume 2: Process Guide
Mobilization
CHAPTER
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CBI Confidential Business
Information
CLP Contract Laboratory
Program
CMT Contract Management
Team
CO Contracting Officer
COI Conflict of Interest
HASP Health and Safety Plan
PLI Pollution Liability Insurance
PO Project Officer
PS Program Support
QA Quality Assurance
QAO Quality Assurance Officer
RAC Response Action Contract
SOP Standard Operating
Procedure
SOW Statement of Work
TD Technical Direction
WA Work Assignment
WACR Work Assignment
Closeout Report
WAF Work Assignment Form
WAM Work Assignment
WP Work Plan
3.1 The Mobilization Process 3-1
Step 1 Initiating Mobilization WA 3-2
Step 2 Post-award Kickoff Meeting 3-4
Step 3 Initiating Equipment and Ongoing Administrative
and Technical Support PS WAs 3-5
Step 4 Overseeing Contractor MobiGzation Activities 3-6
Step 5 Establishing Regional Contract Rles and PS WA Rles 3-9
Step 6 Mobilization Completion Status Meeting 3-10
3.2 Required, Core, and Noncore Elements of Mobilization 3-11
3.3 Region-Specific Guidance on Mobilization 3-13
Exhibits
Exhibit 3-1 Process Flow for Mobilization 3-3
Exhibit 3-2 Required, Core, and Noncore Elements of Mobilization 3-11
MAY 31, 1995
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CHAPTER 3 • MOBILIZATION
This chapter describes the Response Action Contract (RAC) mobilization
process, highlighting the roles of the Regional Project Officer (PO) and
Contracting Officer (CO). In most cases, the PO serves as the Work
Assignment Manager (WAM) for the Program Support (PS) work assign-
ments (WAs). Hence, the PO and WAM's roles are combined in this
chapter. If the WAM is another individual, then the Region should consult
Chapter 5 to properly differentiate the roles of the PO and WAM.
This chapter presents standard RAC management procedures for contract
mobilization. These procedures promote national consistency in RAC
management and exemplify good contract management practices. Re-
quired, core, and noncore elements of guidance are identified at the end of
the chapter. Required elements are mandated by the contract or by direc-
tive or law, and must be followed. Core elements represent significant
aspects of RAC management that are generally supported or outlined by
Agency implementation guidance. Noncore elements are minor aspects of
contract administration that allow for variance in Regional procedures.
While noncore elements are discretionary, Regions may deviate from core
elements only if they provide documentation of the deviation to the RAC
Long-Term Contracting Strategy Program lead and EPA Headquarters
agrees with the Region's procedure. Chapter 1 contains detailed defini-
tions of required, core, and noncore elements of guidance.
3.1 The Mobilization Process
The RAC mobilization process begins after contract award, when the WA
for Mobilization is issued, and ends when the contractor has completed all
preparations and has all equipment and systems in place to perform and
manage the other PS WAs and site-specific WAs. During contract negotia-
tions, EPA worked with the contractor to:
• resolve outstanding issues in the Statement of Work (SOW)
• resolve any technical differences between Mobilization and Non-Site-
Specific Equipment work areas and the contractor's mobilization and
equipment acquisition and management plans
• evaluate the contractor's understanding of the contract
• establish a baseline for monitoring the contractor's performance
Immediately after contract award, the CO issues a work assignment form
(WAF) to initiate the WA, establish the WA number, and approve the work
plan (WP) for the Mobilization PS WA. The initial Non-Site-Specific
Equipment PS WA is issued with the Mobilization WA or may be issued
later during the mobilization period. The contractor's EPA-approved mobili-
zation plan and equipment acquisition and management plans typically
serve as the contractor's WPs for these WAs.
3-1
Mobilization begins when the WA
for Mobilization is issued by
Regional CO.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The contractor performs contract mobilization activities according to the
schedules and budgets of the approved WPs for the Mobilization and
Non-Site-Specific Equipment WAs. The Mobilization WA requires the
contractor to:
• establish management information and accounting systems
• revise corporate standard operating procedures (SOPs) submitted prior
to award
• award Team subcontracts
• submit costs for pollution liability insurance (PLI)
Task 2 of the Non-Site-Specific Equipment WA requires the contractor to
perform work efforts relating to receipt, evaluation, repair, and tracking of
non-site-specific government property during the contract mobilization
period and to establish its equipment utilization reporting system. During
mobilization, the contractor may purchase government property under
Task 3 of the Non-Site-Specific Equipment PS WA.
Exhibit 3-1 depicts the RAC mobilization process. A step-by-step expla-
nation of the process follows.
BOO Initiating Mobilization WA
During contract negotiations, EPA and the contractor resolved issues
regarding mobilization and agreed on the mobilization schedule and costs,
including costs for equipment mobilization. At the time of contract award,
the CO issues a WAF to initiate the WA, assign the WA number, and
approve the WP for the Mobilization PS WA. The Non-Site-Specific
Equipment PS WA may be issued with the Mobilization WA or may be
issued later during mobilization as shown in the process flow (Exhibit 3-1).
Each WA issued under the contract has a unique WA number. The first
three digits of the WA number are the numeric designation of the WA. For
PS WAs, the three-digit numeric designation includes an alpha character
to indicate the type of PS WA (i.e., the letter "A" is used for the Mobiliza-
tion WA, "B" for Non-Site-Specific Equipment WAs, "C" for Ongoing
Administrative Support WAs, "D" for Ongoing Technical Support WAs,
and "E" for the Contract Closeout WA). Under this system, the first three
digits of the WA number for the Mobilization WA are "A01."
The period of performance of the Mobilization WA is set at the negotiated
length of the mobilization period. The Non-Site-Specific Equipment WA
may be set at any length up to the full base period. The PO, acting as the
WAM for the PS WAs, prepares the WAFs for the CO and confers with the
CO regarding WP approval. The contractor's EPA-approved mobilization
plan generally serves as the WP for the mobilization WA. If the PO asks
the contractor to submit a separate WP for this WA, the WP must be
3-2
MAY 31, 1995
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CHAPTER 3 « MOBILIZATION
Issues WAF and
Accepts
Mobilization
WAand
starts work
Prepares WAF for
Mobilization WA
approves WP for
Mobilization WA
kickoff meeting
kickoff meeting
Issues ongoing
PS WAs; issues
WAF for
Equipment WA
ongoing PS WAs
for ongoing PS
Equipment WA
Reviews COI and
CBI SOPs, PLI
costs, and
subcontract
Establishes CO
mobilization
completion
meeting
51-033-271
consistent with the EPA-approved mobilization plan, and must reflect the
cost negotiated for mobilization, as identified in RAC Section B.
- Prepares WAFs for Mobilization and Non-Site-Specific
Equipment PS WAs
- Confers with CO regarding WP approval based on EPA-
approved mobilization and equipment plans.
PO
Issues WAFs to initiate WAs and approve WPs for
Mobilization and Equipment PS WAs.
Exhibit 3-1. Process Flow for
Mobilization
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
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MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The post-award kickoff meeting
should clarify Regional and
contractor expectations regarding
RAC performance and establish a
solid working relationship
between EPA and contractor
management.
EEE Post-award Kickoff Meeting
Immediately after contract award, the CO schedules a post-award kickoff
meeting with contractor management. Ideally, this meeting should be held
within seven days of the award. The post-award kickoff meeting is used to
clarify Regional and contractor expectations regarding RAC performance
and to establish a solid working relationship between EPA and contractor
management. The meeting also ensures that the contractor fully under-
stands the mobilization requirements. Each Region should develop
procedures to best use this opportunity.
Prior to the meeting, all Regional participants should meet to develop the
agenda and establish consensus on all points. The CO chairs the kickoff
meeting; the PO and Quality Assurance Officer (QAO) participate in the
meeting. Other parties may participate as deemed appropriate by the CO.
EPA may choose to use partnering during the kickoff meeting, whereby a
third party attends and mediates EPA-contractor communication and
agreements during the meeting.
Potential topics for the post-award kickoff meeting include overall
contract administration and performance issues and issues related specifi-
cally to the mobilization phase (including the Mobilization and Equip-
ment PS WAs). The kickoff meeting agenda should be organized accord-
ingly. Topics include but are not limited to the following:
Overall Contract Items
• WA scoping and procedures
• completion- versus term-form WAs
• WP content and format
• the work breakdown structure of the contract SOW and WA SOWs
• reporting requirements and reports of work
• special contract provisions
• procedures for tracking and measuring progress
• procedures for evaluating contractor performance and determining fee
• procedures for invoicing and payment
Mobilization Items
• questions concerning performance and time period of the Mobilization
WA
• questions concerning performance of the Non-Site-Specific Equipment
WA during mobilization
• review of contractor quality assurance management plan, health and
safety plan (HASP), and PLI requests
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MAY 31, 1995
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CHAPTER 3 * MOBILIZATION
The CO prepares the proceedings of the kickoff meeting, documenting the
items discussed, the understandings reached, and any further actions
required. Action items state who will perform the action, the timeframe
for the action, and any resulting product. The CO distributes the proceed-
ings to all attendees. Contractor action items are put into the Mobilization
or Equipment WA, through technical direction (TD) (see section 5.10) or a
WA amendment (see section 5.11), as appropriate.
ro
- Participates in post-award kickoff meeting.
- Issues TD or prepares WA amendment, as needed, to
document WA changes agreed upon in kickoff meeting.
- Schedules and chairs post-award kickoff meeting.
- Prepares and distributes proceedings of kickoff meeting.
- Approves and issues WA amendment, if needed, as a result of
kickoff meeting.
Initiating Equipment and Ongoing Administrative and Technical Support
PS WAs
WAs for equipment and ongoing PS are issued during the mobilization
period, so that the contractor has equipment and equipment systems in
place and is ready to provide contract-level administrative and technical
support by the end of the mobilization period. For the Non-Site-Specific
Equipment WA, the PO, acting as WAM, prepares a WAF to assign the
WA number and approve the WP. The first three digits of the WA number
for the first Non-Site-Specific Equipment WA are "B01". (The second
Non-Site-Specific Equipment WA would then be numbered "B02", and so
on.) The CO approves and issues the WAF. The contractor's EPA-ap-
proved equipment acquisition and management plan generally serves as
the WP for the Non-Site-Specific Equipment WA. If the PO asks the
contractor to submit a separate WP for this WA, the WP must be consis-
tent with the EPA-approved equipment acquisition and management plan,
and must reflect the equipment costs to occur during mobilization as
negotiated during contract negotiations.
The PO, acting as WAM, prepares the WAs for Ongoing Administrative
Support and Ongoing Technical Support. The CO approves and issues the
WAs. The first three digits of the WA number for the first Ongoing
Administrative Support WA are "C01"; the first three digits of the WA
number for the first Ongoing Technical Support WA are "D01". (The
second Ongoing Administrative Support WA would be numbered "C02",
and the second Ongoing Technical Support WA would be numbered "D02".)
If the costs for the first Ongoing Administrative Support and Ongoing
Technical Support WAs were negotiated during contract negotiations, then
the contractor's WPs for these WAs must reflect the negotiated costs.
3-8
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
During mobilization, the Region
issues WAs for Non-Site-Specific
Equipment, Ongoing Technical
Support, and Ongoing
Administrative Support.
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The Region issues separate WAs for Ongoing Technical Support and
Ongoing Administrative Support PS work areas. The Ongoing PS WAs
may be issued for any period up to the full base period, at the Region's
discretion.
PO
- Prepares WAs for Non-Site-Specific Equipment and Ongoing
Administrative and Technical Support.
- Recommends approval of contractor WPs for PS WAs.
- Reviews, approves, and issues PS WAs.
The PO and CO oversee mobilization activities performed under the
Mobilization and Non-Site-Specific Equipment PS WAs. The PO issues
necessary TD to assist the contractor in accomplishing mobilization tasks
(see section S.10) and prepares and processes WA amendments as needed
(see section 5.11). Periodically during mobilization, the PO schedules and
chairs mobilization status meetings with the contractor. The CO and other
appropriate parties attend these meetings.
Mobilization Work Assignment
The Region oversees contractor performance under six Mobilization WA
tasks.
• Task 1—Project Planning and Support
Under this task, the contractor performs internal planning, oversight,
and management of the WA. Within 30 calendar days of contract
award, the contractor must designate their existing Program Office and
on-site Program Manager.
• Task 2—Establishing Information Controls and Reporting
Under this task, the contractor establishes management information
systems to respond to contract requirements for tracking and reporting,
establishes the records management procedures required by EPA policy
and Regional direction, and implements accounting and cost control
procedures.
• Task 3—Revision of Corporate SOPs
Before or during contract negotiations, the Agency reports to the
contractor any deficiencies in the contractor's corporate SOPs. During
mobilization, the contractor modifies its corporate SOPs to meet
Agency requirements for RAC operation.
The PO, CO, and Regional QAO each review and consent to or ap-
prove specific contractor SOPs. The PO should ensure that the contrac-
3-6
MAY 31, 1095
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CHAPTER 3 • MOBILIZATION
tor has SOPs for the following areas in place by the close of the
mobilization period:
conflict of interest (COI) procedures (CO reviews and approves)
contract-wide quality assurance (QA) program, QA management
plan, and generic QA project plan (QAO reviews and approves)
confidential business information (CBI) management and control
systems (CO reviews and approves)
contract-wide HASP (PO/Program reviews)
analytical services delivery plan (PO reviews and CO
approves)
establishment of a Contract Laboratory Program (CLP) point of
contact, gathering of the necessary tracking forms, and knowledge
of the hardware and software requirements for CLP and non-CLP
tracking (QAO reviews and approves)
• Task 4—Subcontracts
During mobilization, the contractor prepares and awards Team subcon-
tracts for subcontractors consented to by EPA in the contract. The
contractor also submits standard language on terms and conditions to
be used in their subpool subcontracts during the course of the contract.
This streamlines CO review and consent to subpool subcontracts
during contract performance (see section 4.7).
• TaskS—PLI
RAC contractors may choose to purchase contract-wide PLI. If the
contractor plans to bill the insurance premiums directly to the contract,
the contractor must submit the costs to the CO during mobilization for
review and approval. Additional information on Agency policy regard-
ing PLI appears in section 2.3.3.
• Task 6—WA Closeout
As part of the WA closeout task, the Region should specify a subtask to
provide a status report verifying accomplishment of all mobilization
activities and to meet with the Region to review mobilization comple-
tion status. This effort confirms whether mobilization has been accom-
plished as scheduled and identifies any outstanding activities. The
Region can then discuss with the contractor how these activities will be
handled. Other WA closeout activities include disposition of WA
records and preparation of the WA Closeout Report (WACR). See
section 5. IS for a description of the WA closeout process.
Non-Site-Specific Equipment Work Assignment
Under the RAC contract, all non-site-specific equipment (government
property) must be received or acquired under the Non-Site-Specific
Equipment PS WA. The Non-Site-Specific Equipment WA is established
3-7
The Region should require a
mobilization completion status
meeting as part of the Mobilization
WA closeout task.
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
MAY 31, 1905
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The Region should review
equipment status in the mobilization
completion status meeting at the
end of the mobilization period.
during the mobilization period so that the contractor can establish systems
for tracking and managing equipment (government properly) and receive
and/or acquire government property as needed during mobilization in
order to be ready to perform site-specific work.
The contract SOW specifies a mobilization task under the Non-Site-
Specific Equipment PS work area. Task 2—Mobilization includes efforts
related to establishing the equipment utilization reporting system and
receiving, evaluating, repairing, and tracking non-site-specific govern-
ment property during mobilization. The contractor may acquire govern-
ment property during mobilization for use at multiple sites, in accordance
with Non-Site-Specific Equipment Task 3—Equipment Acquisition.
Acquisition of equipment and transfer and receipt of government-fur-
nished equipment is described in Chapter 8. As noted in Chapter 8, the
Department of Defense's Defense Contract Management Command
serves as EPA's Property Administrator.
The Region oversees contractor performance of work under six tasks
within the Non-Site-Specific Equipment WA.
• Task 1—Project Planning and Support
Under this task, the contractor performs internal planning, oversight,
and management of the WA.
• Task 2—Mobilization
Under this task the contractor receives, evaluates, repairs, and tracks
government-furnished property during mobilization. As part of the
mobilization task, the Region should specify a subtask that requires a
meeting with the CO and PO/WAM to review equipment status at the
end of mobilization. This effort confirms whether all government
property efforts related to mobilization have been accomplished as
scheduled and identifies any outstanding activities. The Region can
then work out with the contractor how these activities will be handled.
• Task 3—Equipment Acquisition
Under this task, the contractor identifies the need for equipment to be
utilized at multiple sites during the contract, provides information for
the equipment justification that EPA prepares (including lease-versus-
purchase analysis), competitively procures approved equipment, and
receives and inspects equipment.
• Task 4—Equipment Maintenance
Under this task, the contractor provides warehouse space to store
equipment and provides maintenance service on equipment.
• Task 5—Tracking and Reporting
Under this task, the contractor establishes property records for all
government property; tracks government property procurement, use,
3-8
MAY 31, 1906
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CHAPTER 3 « MOBILIZATION
maintenance, and condition; and prepares periodic equipment status
reports.
Task 6—WA Closeout
As part of the WA closeout task, the Region should specify a subtask
for providing a status report that verifies accomplishment of all activi-
ties relating to non-site specific government property. Other WA
closeout activities include disposition of WA records and preparation
of the WACR. See section 5.16 for a description of the WA closeout
process.
- Oversees contractor performance of PS WAs.
- Schedules and chairs periodic mobilization status meetings.
- Reviews contractor SOPs for analytical services delivery and
contract-wide HASP.
- Identifies need for provision of government property to
contractor.
- Prepares seven-point justification for government property
transfer and acquisitions.
- Coordinates provision of government property to contractor.
- Issues TD and prepares WA amendments to authorize WA
changes.
- Participates in mobilization status meetings.
- Reviews and approves contractor SOPs for COI and CBI.
- Reviews and approves standard language for subpool subcon-
tracts.
- Reviews and approves PLI costs to be billed directly to the
contract.
- Approves contractor's analytical services delivery plan.
- Reviews and concurs with government property justifica-
tions.
- Reviews TD memoranda.
- Reviews, approves, and issues WA amendments.
BEE Establishing Regional Contract Files and PS WA Piles
The WAM, PO, and CO are the core contract management team (CMT)
responsible for administering and managing the RAC contract and work
performed under the contract. Each of these individuals needs to maintain
records related to their contract and work assignment management
responsibilities. Chapter 11 provides guidance on setting up and maintain-
ing contract and WA files. The WAM, PO, and CO each keep contract
files. In addition to site-specific work, the WAMs keep final deliverable
files for their specific WAs. During mobilization, the Regional PO and CO
establish their contract files. As WAM for the PS WAs, the PO establishes
3-9
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
During mobilization, the PO and
CO establish contract files and the
PO, acting as WAM for PS WAs,
establishes PS WA files.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
WAM contract files for the PS WAs. Certain items in the WAM's, PO's,
and CO's contract file are designated as official Agency records and must
be filed, maintained, and retired following the procedures described in
Chapter 11.
There may be necessary duplication of records in the WAM's, PO's, and
CO's working files that are kept during contract performance; however,
only one of their files contains the official record. For example, both the
PO and CO need a copy of the executed contract on file for use in their
respective contract management responsibilities. However, only the CO's
copy of the contract (the original, signed contract) becomes pan of the
official contract record. As another example, both the WAM and PO
retain a copy of the contractor's approved WP. However, only the WAM's
copy of the WP becomes part of the official contract record. This way, the
CMT members have all of the information they need to perform their
contract and WA oversight duties, but there is no duplication of items in
the final contract record. Official records that must be retained by the
WAM, PO, and CO that will form the official contract record are listed in
Chapter 11.
PO
- Establishes and maintains WAM and PO contract files.
- Establishes and maintains CO contract file.
EBB Mobilization Completion Status Meeting
At the end of mobilization, the PO should schedule and chair a status
meeting to review mobilization and equipment status and to verify that all
activities have been completed as scheduled. If there are outstanding
issues or unfinished activities, these items should be resolved at the
mobilization completion meeting.
- Chairs mobilization completion status meeting.
- Participates in mobilization completion status meeting.
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CHAPTER 3 • MOBILIZATION
3,2 Required, Core, and Noncore Elements of Mobilization
The required, core, and noncore elements of RAC guidance for mobiliza-
tion are identified in Exhibit 3-2. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
Required
Determination of mobilization costs during contract negotiations
Core
Issuance of separate WAs for the PS work areas stipulated in the
contract SOW
Post-award kickoff meeting with contractor
Noncore
The Regions may designate a program office staff member other than the PO to
serve as the WAM on PS WAs.
The Regions may have specific procedures for overseeing contractor mobilization
activities.
The Regions may elect the length for Non-Site Specific Equipment, Ongoing
Administrative Support, and Ongoing Technical Support PS WAs to be any period
up to the full base period.
The Regions may choose not to issue the Non-Site Specific Equipment PS WA
immediately upon contract award. However, it will be issued during the mobilizaion
period in time so that equipment mobilization can be accomplished during the
mobilization period.
Exhibit 3-2. Required, Core,
and Noncore Elements of
Mobilization
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
3-11
MAY 31, 1095
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CHAPTER 3 « MOBILIZATION
3,3 Region-Specific Guidance on Mobilization
Applicable guidance to be inserted by the Region following this page.
3-13
MAY 31, 1995
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Response Action Contract
(RAQ Users' Guide
Volume!: Process Guide
Contract
Administration
CHAPTER
MAY 31, 1995
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RAC USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
4.1
4.2
4.3
4.3.1
4.3.2
4.3.3
4.4
4.4.1
4.4.2
4.4.3
4.5
4.5.1
4.5.2
4.5.3
4.6.1
4.6.2
4.7
4.7.1
4.7.2
4.8.1
4.8.2
4.9
4.9.1
4.9.2
Introduction 4-1
Roles and Responsibilities for Contract Administration 4-3
Contract Funding 4-7
Contract Funding Procedures 4-9
Timing of Funding Actions 4-11
Required, Core, and Noncore Elements of Contract Funding 4-12
Exercising Contract Options 4-13
Exercising Options to Increase Quantities 4-15
Exercising the Option to Extend the Contract Term 4-17
Required, Core, and Noncore Elements of Exercising
Contract Options 4-20
Contract Modifications.
,4-21
Procedures for Making Contract Modifications Due to
Administrative Changes 4-24
Procedures for Making Contract Modifications Due to
Substantive Changes 4-26
Required, Core, and Noncore Elements of Making
Contract Modifications 4-29
Contract Claims and Disputes 4-31
Procedures for Processing Contract Claims and Disputes 4-33
Required, Core, and Noncore Elements of the Claims and
Disputes Process 4-37
Subcontract Review and Consent 4-39
How to Review and Consent to Issuance of Subcontracts 4-41
Required, Core, and Noncore Elements of Subcontract Review
and Consent 4-44
Handling Conflict of Interest Issues 4-45
How to Handle Conflict of Interest Issues 4-47
Required, Core, and Noncore Elements of Handling Conflict
of Interest Issues 4-52
Managing Regional Crossovers 4-55
Administering and Managing Regional Crossovers 4-57
Required, Core, and Noncore Elements of Managing Regional
Crossovers 4-60
MAY 31, 19B5
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CHAPTER 4 » CONTRACT ADMINISTRATION
4.10 Implementing Control Measures for Vulnerable Contracting Areas 4-61
4.10.1 Implementing Control Measures for Advisory and Assistance
Services 4-63
4.10.2 Implementing Control Measures for Sensitive Contracting
Areas 4-64
4.10.3 Implementing Control Measures for General Contracting Areas
Requiring Special Contract Controls 4-64
4.10.4 Implementing Control Measures for Specific Contract Work
Areas 4-66
4.10.5 Required, Core, and Noncore Elements of Implementing Control
Measures for Vulnerable Contracting Areas 4-69
4.11 Small and Small Disadvantaged Business Utilization, Contractor Participation in
Mentor-Protege Program, and Use of Labor Surplus Areas 4-71
4.11.1 Monitoring Contractor Compliance with Subcontracting Plan 4-73
4.11.2 Required, Core, and Noncore Elements of Monitoring Compliance
with Subcontracting Plan 4-75
4.12 Annual Allocation of Non-Site-Specific Costs 4-77
4.12.1 Annual Allocation Procedures 4-79
4.12.2 Required, Core, and Noncore Elements of Annual Allocation 4-80
4.13 Annual Closeout 4-81
4.13.1 The Annual Closeout Process 4-83
4.13.2 Required, Core, and Noncore Elements of Annual Closeout 4-90
4.14 Region-Specific Guidance on Contract Administration 4-93
Exhibits
Exhibit 4-1 Process Flow for Contract Funding 4-9
Exhibit 4-2 Required, Core, and Noncore Elements of Contract
Funding 4-12
Exhibit 4-3 Process Flow for Exercising Options to Increase
Quantities 4-16
Exhibit 4-4 Process Flow for Exercising the Option to Extend the
Contract Term 4-17
Exhibit 4-5 Required, Core, and Noncore Elements of Exercising
Contract Options 4-20
Exhibit 4-6 Determining the Nature of a Contract Modification 4-23
Exhibit 4-7 Process Flow for Making Contract Modifications Due to
Administrative Changes 4-24
Exhibit 4-8 Process Flow for Making Contract Modifications Due to
Substantive Changes 4-27
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 4-9
Exhibit 4-10
Exhibit 4-11
Exhibit 4-12
Exhibit 4-13
Exhibit 4-14
Exhibit 4-15
Exhibit 4-16
Exhibit 4-17
Exhibit 4-18
Exhibit 4-19
Exhibit 4-20
Exhibit 4-21
Exhibit 4-22
Exhibit 4-23
Exhibit 4-24
Exhibit 4-25
Exhibit 4-26
Exhibit 4-27
Exhibit 4-28
Exhibit 4-29
Exhibit 4-30
Required, Core, and Noncore Elements of Making Contract
Modifications 4-29
Process Flow for Handling Contract Claims and Disputes 4-34
Paragraph Informing the Contractor of the Right to Appeal... 4-36
Required, Core, and Noncore Elements of the Claims and
Disputes Process 4-37
Process Flow for Subcontract Review and Consent 4-41
Required, Core, and Noncore Elements of Subcontract
Review and Consent 4-44
Process Flow for Handling Conflict of Interest Issues 4-47
Conflict of Interest Information in Contractor's
Disclosure and Available Within EPA 4-49
Conflict of Interest Indicators 4-51
Required, Core, and Noncore Elements of Handling
Conflicts of Interest 4-53
Process Flow for Managing Regional Crossovers 4-57
Required, Core, and Noncore Elements of Managing
Regional Crossovers 4-60
Required, Core, and Noncore Elements of Imp
Control Measures for Vulnerable Contracting Areas 4-70
Methods of Monitoring Contractor Compliance with
Subcontracting Plan 4-73
Required, Core, and Noncore Elements of Monitoring
Compliance with Subcontracting Plan 4-75
Process Flow for Annual Allocation 4-79
Required, Core, and Noncore Elements of Annual
Allocation 4-80
Process Flow for Annual Closeout 4-84
Sample Summary of Costs Claimed for FYE XX 4-85
Sample Summary of Costs Claimed for FYE XX by Work
Assignment 4-86
Sample Billing Summary for FYE XX 4-87
Required, Core, and Noncore Elements of Annual
Closeout 4-91
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
This chapter provides guidance for the EPA Regions to use in administer-
ing their Response Action Contracts (RACs).
4.1 Introduction
Detailed guidance on administering RACs is presented in this chapter in
11 sections. The topics of these sections are:
• funding the contract
• exercising contract options
• making contract changes through modifications
• settling contract claims and disputes
• consenting to subcontracts
• determining how to handle conflict-of-interest situations
• managing Regional crossovers
• implementing control measures for vulnerable contracting areas
• contractor utilization of small and small disadvantaged businesses and
labor surplus areas, and participation in the Mentor-Protege program
• overseeing the annual allocation of non-site-specific costs
• overseeing annual closeout procedures
Most sections contain a process flow that depicts key steps in a given
process. Each process flow is accompanied by a step-by-step explanation.
Contract administration is performed primarily by the designated contract
managers: RAC Work Assignment Managers (WAMs), Project Officers
(POs), and Contracting Officers (COs). These individuals comprise the
core contract management team that administers and manages the RACs.
The roles of the WAM, PO, and CO are highlighted within each step of
every process described in the chapter.
This chapter presents standard procedures for RAC administration and
management. These procedures promote national consistency in RAC
management and exemplify good contract management practices. Re-
quired, core, and noncore elements of guidance are identified at the end of
each section in the chapter. Required elements are mandated by the
contract or by directive or law, and must be followed. Core elements
represent significant aspects of RAC management that are generally
supported or outlined by Agency implementation guidance. Noncore
elements are minor aspects or contract administration that allow for
variances in Regional procedure. While noncore elements are discretion-
ary. Regions may deviate from core elements only if they provide docu-
mentation of the deviation to the RAC Long-Term Contracting Strategy
4-1
Required, core, and noncore
elements of guidance are
specified at the end of each
section of the chapter.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Program lead and EPA Headquarters agrees with the Region's procedure.
Chapter 1 contains detailed definition of required, core, and noncore
elements of guidance.
4-2
MAY 31. 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
Roles and Responsibilities for Contract
Administration
CHAPTER
MAY 31, 1995
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,2 Roles and Responsibilities for Contract Administration
Responsibilities of the contract management team members who admin-
ister Response Action Contracts—the Work Assignment Managers
(WAMs), Project Officer (PO), and Contracting Officer (CO)—are
highlighted in the process descriptions that appear in sections 4.3 through
4.13. Detailed matrices that identify the responsibilities of the WAM,
PO, CO, other EPA entities, and the contractor in issuing and managing
work assignments appear in sections 4.3 through 4.13 of Volume 1:
Reference Guide.
4-5
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CHAPTER 4 • CONTRACT ADMINISTRATION
Contract Funding
SECTION
4.3
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
ACN
CERCLIS
CO
DCN
EL
FS
FY
IFMS
PO
PR
PRP
PS
RA
RAC
RD
Rl
SCAP
SOW
WA
WAM
Account Control Number
Comprehensive
Environmental Response,
Compensation and Liability
Information System
Contracting Officer
Document Control Number
Expenditure Limit
Feasibility Study
Fiscal Year
Integrated Financial
Management System
Project Officer
Procurement Request
Potentially Responsible
Party
Program Support
Remedial Action
Response Action Contract
Remedial Design
Remedial Investigation
Superfund Comprehensive
Accomplishments Plan
Statement ol Work
Work Assignment
Work Assignment Manager
4.3 Contract Funding 4-7
4.3.1 Contract Funding Procedures 4-9
Step 1 Projecting Expenditures and Submitting the Procurement Request 4-9
Step 2 Obligating Funds 4-10
Step 3 Establishing and Tracking Expenditure Limits 4-11
Step 4 Allocating Expenditures 4-11
4.3.2 Timing of Funding Actions 4-11
4.3.3 Required, Core, and Noncore Elements of Contract Funding 4-12
Exhibits
Exhibit 4-1 Process Flow for Contract Funding 4-9
Exhibit 4-2 Required, Core, and Noncore Elements of Contract
Funding 4-12
MAY 31, 1095
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,3 Contract Funding
This section addresses Response Action Contract (RAC) funding issues,
including funding procedures, timing of funding actions, and control of
contract fund expenditures.
4.3.1 Contract Funding Procedures
Based on the Superfund Comprehensive Accomplishments Plan (SCAP),
and input from the Work Assignment Managers (WAMs) and program
staff, the Project Officer (PO) projects periodic funding needs and submits
a procurement request (PR) for funding actions to the Contracting Officer
(CO). After the CO obligates funds and modifies the contract, the con-
tractor allocates expenditures and reports site-specific information to EPA
in its monthly invoices. Throughout the life of the work assignment
(WA), the WAM, PO, CO, and contractor track WA expenditures. The
contract funding process is depicted in Exhibit 4-1. A step-by-step
explanation of the process follows.
The PO projects periodic funding needs based on the SCAP and input
from the WAMs and program staff, and prepares a PR for a funding action
Projects
funding
needs and
submits P
Tracks ELs to ensure within
contract funding
Exhibit 4-1. Process Flow
for Contract Funding
51-033460
4-9
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Remedial action and completion-
form WAs are not bulk-funded.
to commit these funds within each of four non-site-specific funding
categories:
• Program Support (Other Response)—Applies to the five RAC
program support (PS) work areas in the contract Statement of Work
(SOW): Mobilization, Non-Site-Specific Equipment, Ongoing Techni-
cal Support, Ongoing Administrative Support, and Contract Closeout
• Site Characterization (non-site-specific "site" allowance)—Applies
to WAs for:
- preliminary assessments, site inspections, expanded site inspections,
remedial investigations/feasibility studies (RI/FS), remedial designs
(RDs), treatability studies, engineering evaluations/cost analyses,
data analytical services/special analytical services, design assis-
tance, community relations, technical assistance, groundwater
monitoring
- oversight of potentially responsible parties (PRPs) during RI/FSs,
RDs, and remedial actions (RAs), early actions under remedial
authority, non-time-critical removal actions, five-year reviews, and
operation & maintenance
• Removal—Applies to WAs for non-time-critical removal support
• Enforcement—Covers litigation and negotiation support
RA WAs and completion-form WAs are funded on a site-specific basis as
described in Section 5.8.
Based on projected funding needs, the PO prepares and submits to the CO
a PR for a funding action for the applicable bulk-funding categories. This
process commits funds in the Integrated Financial Management System
(DFMS). The PO and CO review contract ceilings and options to deter-
mine if increases are required. The CO prepares contract modifications to
exercise quantity options and increase ceilings if required with the fund-
ing action (see sections 4.4 and 4.5).
The PO should submit the PR early enough to ensure that funding will be
in place by the beginning of the period. When funding is allocated
quarterly, additional funding actions may be needed in the last quarter of
the fiscal year.
- PO projects periodic funding needs within funding categories.
- PO submits PR to CO, notifying CO if a contract modifica-
tion is necessary.
Obligating Funds
The CO receives and reviews the PR and the PO's notice of need for
contract modification, if included, for accuracy. The CO prepares a
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MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
contract modification to obligate funds in the specified categories, or to
obligate funds site-specifically and, if needed, to exercise options and
increase ceilings. The CO forwards the funding modification to the
contractor and provides a copy to the PO.
The CO freezes committed funds in IFMS, and sends the contract modifi-
cations to Research Triangle Park to process obligations and place in-
creases in contract ceilings (if included) into IFMs.
- CO obligates funds, preparing necessary contract modifications.
HUH Establishing and Tracking Expenditure Limits
The WAM establishes the expenditure limits (ELs) for each WA when it is
issued. The contractor is prohibited from exceeding established WA ELs.
During the life of the WA, the WAM, PO, and CO monitor WA ELs to
ensure that the contractor's expenditures remain within the ELs and to
raise ELs as needed to accommodate project needs (see section 5.9).
- Establishes EL for each WA when WA is issued.
- Monitors WA EL to ensure contractor's expenditures remain
within EL.
- Monitors WA EL to ensure contractor's expenditures remain
within EL.
- Approves all ELs before they are established.
EBiQ Allocating Expenditures
The contractor allocates expenditures to funding actions on a first-in, first-
out basis. The contractor provides EPA Headquarters and Regions with
hardcopy versions and electronic files of site-specific invoice attachments,
including the assignment of expenditures by activity code, SOW work
area, and site code, in accordance with RAC Attachment B, "Reports of
Work".
4.3.2 Timing of Funding Actions
Funding actions occur on a periodic, often quarterly, basis. At a minimum,
funding actions should cover new WA ELs for a given period. Funding at
the beginning of a new fiscal year (FY) may not be available until mid-
way through the first quarter because funding allowances for new FY
funding may take four to six weeks to reach the Regional allowance
4-11
Funding actions generally occur
quarterly to cover projected WA
ELs.
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 4-2. Required, Core, and
Noncore Elements of Contract
Funding
holders. There may need to be more than one funding action during the
last quarter of the fiscal year. The PR for a funding action should be
submitted early enough to ensure that funding will be in place when
needed. This submittal must be based upon a projection of new WA ELs
for the period in question. This projection must include a breakdown of
ELs under the four bulk-funding categories cited in Step 1.
Additionally, funding to cover expected expenditures for long-term WAs
should be obligated as soon as money is available. These funding actions
are executed as part of a regular periodic funding action. Incremental
funding actions within a period to cover an unexpected shortfall should be
kept to a minimum as too many PRs will defeat the purpose of the bulk-
funding approach.
4.3.3 Required, Core, and Noncore Elements of Contract Funding
The required, core, and noncore elements of RAC guidance for contract
funding are identified in Exhibit 4-2. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
Required
Use of Form 1900-8, "Procurement Request," for funding actions
CO assurance that contract obligations do not exceed contract funding
CO issuance of funding modifications
Site-specific funding of RA WAs and completion-form WAs
Core
Use of program support (other response), site characterization, enforcement,
and removal as the contract's bulk-funding categories
Periodic projection of funding needs
Periodic funding actions to fund bulk-funding categories
Use of ELs as WA funding ceilings for WAs that use contract bulk funding
PO and CO assurance that combined ELs for WAs being funded out of a bulk-
funding category never exceed the funding available in that category
WAM, PO, and CO tracking to ensure contractor compliance with ELs
Noncore
• The Regions may each institute their own methods and system for tracking
contract and WA funding and ELs.
* The Regions may vary in division of WAM and PO responsibilities in funding
projections and processing funding actions.
51-033-167
4-12
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CHAPTER 4 » CONTRACT ADMINISTRATION
Exercising Contract Options
SECTION
4.4
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RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
LOE Level of Effort
PEB Performance Evaluation
Board
PO Project Officer
PR Procurement Request
RAC Response Action Contract
WA Work Assignment
WAM Work Assignment Manager
4.4 Exercising Contract Options 4-13
4.4.1 Exercising Options to Increase Quantities 4-15
Step 1 Determining the Need for Quantity Increases 4-15
Step 2 Issuing a Contract Modification 4-16
Step 3 Updating the Tracking System 4-16
4.4.2 Exercising the Option to Extend the Contract Term 4-17
Step 1 Deciding to Exercise Option 4-17
Step 2 Notifying the Contractor 4-18
Step 3 Issuing a Modification to Exercise the Option Period 4-18
4.4.3 Required, Core, and Noncore Elements of Exercising
Contract Options 4-20
Exhibits
Exhibit 4-3 Process Flow for Exercising Options to Increase
Quantities 4-16
Exhibit 4-4 Process Flow for Exercising the Option to Extend the
Contract Term 4-17
Exhibit 4-5 Required, Core, and Noncore Elements of Exercising
Contract Options 4-20
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,4 Exercising Contract Options
This section describes the process for exercising the two types of contract
options under Response Action Contracts (RACs), highlighting the
responsibilities of the Work Assignment Manager (WAM), Project Officer
(PO), and Contracting Officer (CO). The two types of contract options
are:
options to increase contract quantities (level of effort [LOE] or dollars)
an option to extend the term of the contract
4.4.1
This section describes the process for exercising options to increase
quantities in RAC base and option periods. Within the base and option
periods, EPA has the option to increase the LOE, dollar ceiling for the
subcontracting pool, and the dollar ceiling for the equipment pool in the
term-form portion of the contract, and to increase the dollar ceiling in the
completion-form portion. These ceilings should be increased as needed.
RAC base and option periods each contain base quantities of LOE.
Exhibit 4-3 depicts the process of exercising an option to increase quanti-
ties. A step-by-step explanation of the process follows.
The PO coordinates with the CO in determining whether the LOE and
dollar ceilings in the term-form and completion-form portions of the
contract should be increased. The WAM provides work assignment (WA)
utilization information to the PO to assist in determining the need for
quantity increases. This determination should be made each quarter. The
PO prepares and submits to the CO a modification request memorandum
that identifies which type(s) of quantity options should be exercised
(LOE, subcontracting pool ceiling, equipment ceiling, completion-form
ceiling) and in what increments. (See section 4.5 for additional informa-
tion on the contract modification process.)
- Provides WA utilization information to PO.
Determines need for increasing LOE and dollar ceilings in
term-form and completion-form portions of the contract.
Prepares and submits modification request memorandum to CO,
requesting quantity increases in specified option increments.
Coordinates with PO to determine need for increasing LOE and
dollar ceilings.
4-15
EPA has the option to increase
LOE and dollar ceiling quantities
unilaterally during the base and
option periods in increments
specified in the contract.
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 4-3. Process Flow for
Exercising Options to Increase
Quantities
Prepares
projected WA
utilization
»l
De
n
^incre
and
termines
eedfor
asing LOE
'or ceilings
Receives
copy of
modification
«-
©
_
Determines
need for
increasing LOE
and/or ceilings
i
Prepares and
issues
modification to
increase LOE
and/or ceilings
i
Updates RAC
tracking
system
—
/WioK
Receives and
•* accepts the
modification
Issuing a Contract Modification
51-03MOC
The CO prepares a unilateral contract modification to increase the LOE
and/or the dollar ceiling(s) using the option increments specified in the
contract. The PO prepares and processes a procurement request (PR) to
allocate funding associated with the quantity increases. The CO issues the
modification to the contractor and sends a copy to the PO.
PO
- Prepares and processes a PR to allocate funding for quantity
increases.
Q) ) - Issues unilateral contract modification to increase LOE and/or
dollar ceilings and sends copy to PO.
SB Updating the Tracking System
The CO or PO updates the RAC tracking system to reflect the terms of the
modification.
PO
s—
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CHAPTER 4 « CONTRACT ADMINISTRATION
4.4.2 Exercising the Option to Extend the Contract Term
This section describes the process for exercising the option to extend the
RAC performance period for an additional five years, for a total contract
length of ten years; addresses timing issues when exercising the option;
and discusses the procedures for handling WAs that extend into the option
period. Exhibit 4-4 shows the process for exercising the option to extend
the term of the contract. A step-by-step explanation of the process
follows.
About 90 calendar days before the end of the contract's period of perfor-
mance, the PO determines whether the contract's period of performance
should be extended. The PO's decision is based on the contractor's
Performance Evaluation Board (PEB) rating, program need, available
funding, and any other pertinent factors. If the PO determines that the
51-033-16H
Exhibit 44. Process Flow for
Exercising the Option to Extend
the Contract Term
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
period of performance should be extended, he or she sends a memoran-
dum to the CO that includes:
• statement of need and substantiating documentation
• statement that the contractor's performance is satisfactory or better
(based on PEB rating)
• statement that the program office has budgeted, and will make avail-
able, funding for work to be performed in the option period
The PO's memorandum requesting exercise of the option must be pro-
vided to the CO sufficiently early so that the CO can notify the contractor
60 days before the end of the period of performance (see Step 2).
If the PO recommends that the option not be exercised, the PO sends a
memorandum to the CO explaining and supporting the rationale for that
decision.
PO
- Considers the contractor's PEB ratings, program needs, avail-
able funding, and other factors to determine whether to request
that the CO exercise the option to extend the contract term.
- Prepares a memorandum requesting that the CO exercise the
option or recommending that it not be exercised.
SB Notifying the Contractor
The CO notifies the contractor of the government's intent to exercise the
option period no later than 60 days before the end of the base period. The
CO provides a copy of this notification to the PO. The letter of intent
does not commit EPA to exercise the option.
^—>
CO ) - Notifies contractor of intent to exercise the option and provides
a copy of notification to the PO.
EQJB Issuing a Modification to Exercise the Option Period
The CO issues a unilateral contract modification before the end of the
base period to exercise the option to extend the term of the contract by
five years. If the CO did not notify the contractor of its intent to exercise
the option within 60 days prior to the end of the base period, EPA forfeits
its right to issue a unilateral contract modification. In this event, the CO
must use a bilateral contract modification that is subject to the
contractor's concurrence (see section 4.5). The CO sends the modifica-
tion to the contractor and provides a copy to the PO. The CO deobligates
unused dollars that remain in the contract at the end of the base period
except for dollars obligated for completion-form WAs, which can be used
in the option period. When deobligating money, the CO should be sure to
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CHAPTER 4 • CONTRACT ADMINISTRATION
leave in funds to cover key charges and final adjustments to indirect rates.
Any unused base-period LOE becomes invalid (is "lost") and cannot be
used in the option period.
In accordance with the terms of the RAC clause in Section H, OPTION
TO EXTEND THE TERM OF THE CONTRACT—COST-PLUS-
AWARD-FEE CONTRACT, the modification to exercise the option
period:
• establishes a new period of performance, which requires modification
of the PERIOD OF PERFORMANCE clause in Section F
• amends the LEVEL OF EFFORT—COST-REIMBURSEMENT
(TERM-FORM SEGMENT) clause in Section B to reflect a new and
separate LOE
• amends the ESTIMATED COST, BASE FEE AND AWARD FEE
clause in Section B to reflect estimated costs and base fee and award
fee pool for the option period
• amends "not to exceed amounts" included in the OTHER DIRECT
COSTS clause in Section B
GO ) - Issues contract modification to exercise the option to
extend the term of the contract (see section 4.5 for information
on contract modifications).
Both term- and completion-form WAs can be carried over into the option
period.
Term-Form WAs
In term-form WAs, base-period LOE and dollars cannot be used during the
option period; only option-period hours and dollars can be used in the
option period. The RAC clause in Section B, WORK ASSIGNMENTS
(TERM-FORM), states that all hours and associated costs expended
during the option period must be charged to the option period's hours and
estimated costs. Any unused LOE from the base period becomes unavail-
able and the unused dollars must be deobligated from the base period and
reobligated for the option period.
Completion-Form WAs
Completion-form WAs are unaffected by exercising the option period, and
carry over into the option period without restrictions. The RAC clause in
Section B, WORK ASSIGNMENTS (COMPLETION-FORM), states that
completion ceilings for completion-form WAs issued in the base period
are not affected by exercising the option to extend the contract term. Base
period dollars obligated to completion-form WAs can be used in the option
Term-form WAs can extend into the
option period; however, unused
LOE and dollars cannot be used in
the option period.
Completion-form WAs carry over
into the option period, unaffected
by the exercise of the option
period.
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit^. Required,Core,and
Noncore Elements of Exercising
Contract Options
period. However, if the WA ceiling is increased in the option period,
option period dollars must be used for the increase.
4.4.3 Required, Core, and Noncore Elements of Exercising Contract Options
The required, core, and noncore elements of RAC guidance for exercis-
ing contract options are identified in Exhibit 4-5. Chapter 1 provides
definitions of required, core, and noncore elements and explains Regional
responsibilities for incorporating each element.
Required
CO exercise of options as defined in section H of RAC
CO compliance with FAR 17.207, "Exercise of Options"
CO notification to contractor of intent to exercise option to extend term of contract
by 60 days before end of contract base period (or else forfeiture of right to exercise
option unilaterally)
CO issuance of contract modifications to exercise options
Use of EPA Form 1900-8 to process funding actions
CO review and approval of modification request and associated funding action
Core
PO's evaluation of contractor performance and written recommendation to CO
as to whether the base period should be extended
PO's evaluation of anticipated project utilization and written request to CO to
exercise contract options to increase quantities
Exercise of quantity increase options, as needed
Tracking of contract actions
Noncore
Regions may vary in methods of identifying and evaluating anticipated project
needs to determine the need to exercise options.
51-033-110A
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CHAPTER 4 « CONTRACT ADMINISTRATION
Contract Modifications
SECTION
4.5
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Table of Contents
Acronyms
CO Contracting Officer
PO Project Officer
PR Procurement Request
RAC Response Action Contract
RTP Research Triangle Park
SF Standard Form
4.5 Contract Modifications 4-21
4.5.1 Procedures for Making Contract Modifications Due to
Administrative Changes 4-24
Step 1 Preparing and Reviewing the Modification Request 4-25
Step 2 Preparing and Issuing the Modification 4-25
Step 3 Implementing the Modification 4-25
4.5.2 Procedures for Making Contract Modifications Due to
Substantive Changes 4-26
Step 1 Preparing and Reviewing the Modification Request and Determining
Whether a Change Order is Necessary 4-26
Step 2 Issuing a Change Order 4-28
Step 3 Negotiating the Equitable Adjustment for a Change Order or the
Technical and Financial Terms for a Bilateral Modification 4-28
Step 4 Preparing and Signing the Bilateral Modification 4-28
Step 5 Implementing the Bilateral Modification 4-28
4.5.3 Required, Core, and Noncore Elements of Making
Contract Modifications 4-29
Exhibits
Exhibit 4-6 Determining the Nature of a Contract Modification 4-23
Exhibit 4-7 Process Flow for Making Contract Modifications Due
to Administrative Changes 4-24
Exhibit 4-8 Process Flow for Making Contract Modifications Due to
Substantive Changes 4-27
Exhibit 4-9 Required, Core, and Noncore Elements of Making Contract
Modifications 4-29
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,5 Contract Modifications
This section describes the procedures used when making Response Action
Contract (RAC) contract modifications and highlights the responsibilities
of the Project Officer (PO) and Contracting Officer (CO) in the modifica-
tion process.
As shown in Exhibit 4-6, changes to the contract are either administrative
or substantive in nature resulting in unilateral or bilateral modifications.
Administrative changes are made unilaterally; substantive changes usually
are made bilaterally and involve a monetary adjustment. Substantive
changes may be made unilaterally only if the change falls under the
Is the
change
administrative
or substantive
in nature?
Does the
administrative
change involve
funding?
substantive
change fall under
eCHANGE
clause?
Yes
1
The PO prepares
a procurement
request (PR)
No
The CO issues
a unilateral
modification
i
The CO and
contractor
negotiate the
terms of the
modification
The CO
issues a
unilateral
modification
the
substantive \MO
change involve
financial
The CO and contractor
The CO and
the contractor
sign a bilateral
modification
adjustment or financial
terms
The PO prepares
a PR
51-03M2D
Unilateral modifications are
signed by the CO; the
contractor must implement
them upon receipt. Bilateral
modifications require mutual
consent and must be signed by
the CO and contractor before
they become effective.
Exhibit^ Determining the
Nature of a Contract
Modification
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
An administrative change does
not affect the substance of the
contract or the rights of
either party.
Exhibits. Process Flow for
Making Contract Modifications
Due to Administrative Changes
CHANGES clause. Unilateral substantive changes usually are followed by
a bilateral modification for equitable adjustment.
The CO determines whether a change is administrative or substantive in
nature.
4.5.1 Procedures for Making Contract Modifications Due to Administrative
Changes
Administrative changes include:
• exercising options, including extending the period of performance and
quantity options
• terminating the contract
• funding changes
• other administrative changes
If the CO determines the change is administrative in nature, the Region
should follow the process of making administrative contract changes as
depicted in Exhibit 4-7. A step-by-step explanation of the process
follows.
Determines
need for modi-
fication; prepares
request
Does
change
involve
funding?
Follow the funding procedures in section 4.3
issues unilateral
Implements
unilateral
modification
4-24
SI-033-S7H
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CHAPTER 4 « CONTRACT ADMINISTRATION
The PO generally identifies the need for a change based on knowledge of
contract activities and status. The PO verbally informs the CO when a
change to the contract may be necessary, and prepares and forwards to the
CO a modification request memorandum. This memorandum includes the
following information and any other information requested by the CO:
• contract number and contractor name
• description of requested change, including number of increments for
exercising quantity options
• rationale/reason for change
The PO provides historical and technical information pertaining to the
modification, as necessary.
The CO reviews the PO's modification request memorandum and decides
whether the requested change is administrative or substantive in nature
and whether the modification will involve funding. (Section 4.3 gives a
detailed discussion on RAC funding.) For certain types of administrative
changes (such as changing the PO) the CO, rather than the PO, may
initiate the contract modification action.
PO | - Identifies need for a change to the contract.
- Prepares and submits to CO modification request memorandum.
- Reviews modification request memorandum.
- Determines whether the modification involves funding.
- Determines whether the requested change is administrative or
substantive.
For administrative changes, the CO prepares a written unilateral modifica-
tion on Standard Form (SF) 30. The CO issues the modification to the
contractor and provides copies to the PO and Research Triangle Park
(RTP).
- Prepares and issues unilateral modification to the contractor.
- Provides copies of the modification to the PO and RTP.
BUSH Implementing the Modification
The contractor implements the conditions prescribed by the modification
upon receipt of the modification. If the unilateral modification only
involves a funding action, the contractor records the modification amount.
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
A substantive change affects the
price, quantity, quality, or other
terms and conditions of the
contract.
The CHANGES clause specifies
situations where the government
may make unilateral changes
under the contract.
4.5.2
Substantive changes include:
• changes that fall under the CHANGES clause
equitable adjustments resulting from change orders, differing site
conditions, and suspension of work
new legal obligations, such as contractor mergers and name changes
When the CO determines that the change is substantive in nature, he or
she must follow the process for making substantive changes as depicted in
Exhibit 4-8. A step-by-step explanation of the process follows.
The PO generally identifies the need for a change based on knowledge of
contract activities and status. The PO verbally informs the CO when a
change to the contract may be necessary, and prepares and forwards to the
CO a modification request memorandum. This memorandum includes the
following information and any other information requested by the CO:
contract number and contractor name
description of requested change, including number of increments for
exercising quantity options
rationale/reason for change
The PO may provide historical and technical information pertaining to the
modification, as necessary.
The CO reviews the modification request memorandum and determines
whether the change is administrative or substantive in nature. If the
change is substantive, the CO determines whether the substantive change
falls under the CHANGES clause and whether a change order is neces-
sary. Unilateral modifications issued under the CHANGES clause are
referred to as change orders. If the change must be implemented without
delay, the CO issues the modification unilaterally, by a change order, so
that the contractor implements the modification immediately. If the
substantive change does not fall under the CHANGES clause the CO and
contractor negotiate the technical and monetary terms of the bilateral
modification (see step 3).
PO I - Identifies need for a change to the contract.
- Prepares and submits to CO modification request memorandum.
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MAY 31, 1996
-------
Determines
need for modi-
fication; prepares
request
Reviews modification
request
Does
change fall
under
CHANGES
clause?
Does a time
constraint
exist?
Issues a change order
through unilateral
modification
Implements change
order
Negotiate equitable adjustment or technical and
monetary terms for bilateral modification
Follow the funding procedures
in section 4.3
Signs the bilateral
Prepares and issues the
bilateral modification
bilateral
modification
CHAPTER 4 • CONTRACT ADMINISTRATION
Exhibits Process Flow for
51-03M6E
Reviews modification request memorandum.
Determines whether the requested change is administrative or
substantive.
Determines whether the substantive change falls under the
CHANGES clause and whether a change order is required
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The CO issues a change order to
make a unilateral modification
under the CHANGES clause.
An equitable adjustment is the
agreed-upon monetary adjustment
following a change order.
If the CO determines that a time constraint exists, he or she prepares and
issues a change order through a written unilateral modification on SF 30
and provides a copy to the PO. The contractor is not required to sign it,
but must implement the conditions of the unilateral modification upon
receipt of the modification.
CO ) - Prepares and issues a change order through unilateral
modification on SF 30 and provides a copy to the PO.
and Financial Terms for a Bilateral Modification
If the substantive change has been issued through a change order, the CO
negotiates the equitable adjustment associated with the change order. If a
change order is not used, the CO and contractor negotiate the technical
and monetary terms of the change and the CO prepares and issues a
bilateral modification.
GO ) - Negotiates the equitable adjustment or the technical and finan-
cial terms for a bilateral modification.
After the CO and contractor agree to the equitable adjustment associated
with the change order or the technical and financial terms for the bilateral
modification, the CO prepares a bilateral modification using SF 30. The
PO prepares a PR for the funding action associated with the bilateral
modification. The CO issues the bilateral modification and contractor
signs and returns the bilateral modification to indicate agreement with the
terms and conditions of the modification. The CO provides a copy of the
executed modification to the PO.
- Prepares and issues bilateral contract modification.
- Provides a copy of the modification to the PO.
The contractor implements the substantive change prescribed by the
modification. For bilateral modifications that implement equitable adjust-
ments under previously issued change orders, the contractor will have
already made the change and the bilateral modification simply puts in
place funding to support the change.
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CHAPTER 4 « CONTRACT ADMINISTRATION
4.5.3 Required, Core, and Noncore Elements of Making Contract Modifications
The required, core, and noncore elements of RAC guidance for making
contract modifications are identified in Exhibit 4-9. Chapter 1 provides
definitions of required, core, and noncore elements and explains Regional
responsibilities for incorporating each element.
Required
CO issuance of contract modifications that make administrative and substantive
changes to the contract that are within the scope of the contract
Issuance of modifications as unilateral or bilateral in accordance with contract
specifications
CO negotiation with contractor regarding equitable adjustments
Core
None currently defined
Noncore
The Regions should have their own specific procedures for Work Assignment
Managers and POs to identify and communicate situations requiring contract
modifications to each other and to the CO.
51-033-106A
Exhibit^. Required,Core,and
Noncore Elements of Making
Contract Modifications
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CHAPTER 4 • CONTRACT ADMINISTRATION
Contract Claims and Disputes
SECTION
4.6
MAY 31, 1095
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
ADR Alternative Dispute
Resolution
CO Contracting Officer
FAR Federal Acquisition
Regulation
IBCA Department ol Interior
Board of Contract Appeals
PO Project Officer
RAC Response Action Contract
WAM Work Assignment Manager
4.6 Contract Claims and Disputes 4-31
4.6.1 Procedures for Processing Contract Claims and Disputes 4-33
Step 1 Identifying Differences 4-33
Step 2 Using Alternative Dispute Resolution Procedures 4-33
Step 3 Modifying the Contract or Receiving a Claim 4-33
Step 4 Determining and Issuing a Decision on the Claim 4-35
Step 5 Modifying the Contract or Revising the Claim 4-35
Step 6 Making the Final Decision 4-36
Step 7 Contractor Appeal of the Final Decision 4-36
Step 8 The IBCA Hearing 4-37
4.6.2 Required, Core, and Noncore Elements of the Claims and
Disputes Process 4-37
Exhibits
Exhibit 4-10 Process Flow for Handling Contract Claims and
Disputes 4-34
Exhibit 4-11 Paragraph Informing the Contractor of the
Right to Appeal 4-36
Exhibit 4-12 Required, Core, and Noncore Elements of the Claims
and Disputes Process 4-37
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CHAPTER 4 « CONTRACT ADMINISTRATION
4.6 Contract Claims and Disputes
This section describes the process for handling claims and disputes under
Response Action Contracts (RACs) and gives step-by-step procedures to
follow when a controversy arises. The roles of the Work Assignment
Manager (WAM), Project Officer (PO), and Contracting Officer (CO) are
highlighted in each step.
4.6.1
Exhibit 4-10 illustrates the process for handling claims and disputes
between the contractor and the Region. A step-by-step explanation of the
process follows.
EQUfl Identifying Differences
The WAM and the PO work closely with the contractor and are the most
knowledgeable about the daily activities of the contractor. The WAM and
PO should identify any emerging difference of opinion regarding the
rights or obligations of either party and notify the CO when disagreements
are identified. The WAM and PO provide the CO with any relevant
information regarding the disagreement.
- Identify any emerging difference in opinion between parties,
notify the CO, and give background about the controversy.
SB Using Alternative Dispute Resolution Procedures
v i
The CO and the contractor should always attempt to resolve the difference
in opinion by reaching an agreement on their own or by using alternative
dispute resolution (ADR) procedures as illustrated in Exhibit 4-10. When
using ADR, a neutral person is used to facilitate issue resolution, and
officials from both parties participate in the process. At any time during
the claims and disputes process, the CO and contractor may use ADR
procedures to settle the issue or any portion of the claim.
- Attempts to resolve the issue using ADR procedures.
HUH Modifying the Contract or Receiving a Claim
If the CO and the contractor resolve the issue on their own or by using
ADR procedures and the agreement involves changes to the contract or a
monetary adjustment, the CO issues a modification to the contract (see
section 4.5).
4-33
The WAM and PO identify
emerging differences between the
Agency and contractor.
ADR procedures should be used
whenever possible to avoid
government and contractor wasting
tune and money.
MAY 31, 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 4-10. Process Row for
avor of
co itractor '.
Attempt to resolve the
issue using ADR
procedures
/Modifies^ !
in favor of government
! *
Reviews
daim; issues
decision
IBCA or U.S. Court
of Federal Claims
favor of government
a
Issues a ;
[ revised daim;
x' Makes
final1 decision;
^ .about dairn /
N
in favor of government
irt favor of
contractor
'Conducts^
a hearing
and issues
.decision.
51-033468
If an agreement using ADR procedures is not reached, the contractor may
submit a formal claim to the CO. A "claim," as defined by the Federal
Acquisition Regulation (FAR), is "a written demand by one of the con-
tracting parties seeking, as a matter of right, the payment of money, the
adjustment or interpretation of contract terms, or other relief arising under
or relating to the contract." The contractor prepares and submits a written
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MAY 31, 1996
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CHAPTER 4 • CONTRACT ADMINISTRATION
claim regarding the disagreement. The claim must include a description of
the areas in which the contractor and the CO are in disagreement, support-
ing data, and the amount of the requested monetary adjustment. Claims
that exceed $100,000, or any claim regardless of the amount when using
ADR procedures, must be accompanied by a certification that the claim is
accurate and made in good faith.
- If the issue is resolved through ADR or mutual consent, the CO
may issue a modification to the contract if called for by the
resolution.
- If the issue is not resolved, the CO may receive a written claim
from the contractor.
The CO documents in the contract file the date the claim is received. The
CO reviews the facts pertinent to the claim, determines the outcome of the
claim, and issues a written decision within 60 days of receipt of the claim.
For claims greater than $100,000, the CO may take more than 60 days if
he or she notifies the contractor of a "reasonable" time by which the
decision will be issued. The decision must include a rebuttal indicating
the areas of agreement and disagreement with the claim.
- Reviews the claim and related pertinent facts.
- Issues a written decision within 60 days of the receipt of the
claim or, for claims greater than $100,000, within a reasonable
time.
EBB Modifying the Contract or Revising the Claim
If the CO agrees with all pans of the claim and the claim involves changes
to the contract or a monetary adjustment, the CO modifies the contract
accordingly (see section 4.5). If the modification involves a monetary
adjustment, it should include any interest incurred.
If the CO does not agree with all of the aspects of the claim, he or she
submits a written decision and rebuttal to the contractor. At Regional
discretion, the contractor may submit a revised claim based on the CO's
written decision and rebuttal. The revised claim may include all or spe-
cific parts of the originally submitted claim.
- If the CO agrees to the claim, the CO may issue a modification
to the contract.
- If the CO does not agree with all aspects of the claim, he or she
submits a written decision and rebuttal to the contractor.
- May receive a revised claim from the contractor, at the Region's
discretion.
4-36
At Regional discretion, the
contractor may submit a revised
claim including all or specified
parts of the original claim.
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The CO makes the final decision
about the claim.
The contractor has the right to
appeal the CO's final decision.
Exhibit 4-11. Paragraph
Informing the Contractor of the
Making the Final Decision
After the revised claim is submitted, the CO prepares a final decision
about the claim. The CO's final written decision should include:
• a description of the claim
• a reference to the pertinent contract terms
• a statement of the factual areas of agreement and disagreement
• a statement of the CO's decision with supporting documentation
If the decision is not in favor of the contractor, the CO must also include a
statement required by FAR Subpart 33.2 outlining the contractor's right to
appeal the decision according to the Contract Disputes Act of 1978 (see
Exhibit 4-11).
The CO sends a copy of the final decision to the contractor by certified
mail within 60 days of the receipt of the revised claim. For claims greater
than $100,000, the CO may take more than 60 days if the contractor has
been notified.
- Makes the final decision about the revised claim and prepares
and sends to the contractor written documentation of the final
decision.
EESH Contractor Appeal of the Final Decision
If the CO's decision is in favor of the contractor and the decision involves
changes to the contract or a monetary adjustment, the CO prepares and
submits a modification to the contract.
If the CO's decision is not in favor of the contractor, the contractor may
appeal the decision to the Department of Interior Board of Contract
Appeals (IBCA) or the U.S. Court of Federal Claims. The appeal must be
made to the IBCA within 90 days of the receipt of the CO's final decision
or to the U.S. Court of Federal Claims within one year following the final
CO decision.
This is the final decision of the Contracting Officer. You may appeal this decision to
the Board of Contract Appeals. If you decide to appeal, you must, within 90 days from
the date you receive this decision, mail or otherwise furnish written notice to the Board
of Contract Appeals and provide a copy to the Contracting Officer from whose decision
the appeal is taken. The notice shall indicate that an appeal is intended, reference
this decision, and identify the contract by number. Instead of appealing to the Board
of Contract Appeals, you may bring an action directly to the U.S. Court of Federal
Claims (except as provided in the Contract Disputes Act of 1978,41 U.S.C. 603,
regarding Maritime Contracts) within 12 months of the date you receive this decision.
51-03M2
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CHAPTER 4 • CONTRACT ADMINISTRATION
CO ) - If the final decision is in favor of the contractor, the CO may
issue a modification to the contract.
BSD The IBCA Hearing
If the IBCA hears the appeal, the CO provides data, documentation,
information, and support required by the IBCA for use on the appeal. The
WAM, PO, and CO also may be witnesses at the IBCA hearing. The
contractor is obligated to continue to perform work under existing con-
tract terms while a decision is pending on the claim or dispute. If the
IBCA's decision on the appeal is in favor of the contractor, the CO imple-
ments the decision of the IBCA.
PO
- May be witnesses at the IBCA hearing.
CO ) - Provides data, documentation, information, and support
required by the IBCA and may be a witness at the IBCA
hearing.
4.6.2
The required, core, and noncore elements of RAC guidance for the claims
and disputes process are identified in Exhibit 4-12. Chapter 1 provides
definitions of required, core, and noncore elements and explains Regional
responsibilities for incorporating each element.
Required
CO review of claims and issuance of a decision within 60 days of receiving the
claim or, for claims exceeding $100,000, contractor notification of a reasonable
time by which the decision will be issued
CO issuance of contract modification that reflects the decision on the claim
Core
None currently defined
Noncore
Specific Regional procedures for elevating claims to CO notice and WAM and
PO involvement in claims may vary.
CO use of ADR procedures when appropriate to attempt to resolve the
51-033-154
Exhibit 4-12. Required, Core,
and Noncore Elements of the
Claims and Disputes Process
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CHAPTER 4 • CONTRACT ADMINISTRATION
Subcontract Review and Consent
SECTION
4.7
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Table of Contents
Acronyms
CO Contracting Officer
DCA Design and Construction
Advisor
FAR Federal Acquisition
Regulation
PO Project Officer
RA Remedial Action
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
4.7 Subcontract Review and Consent 4-39
4.7.1 How to Review and Consent to Issuance of Subcontracts 4-41
Step 1 Contractor Submission of Notice of Intent to Subcontract 4-42
Step 2 Reviewing and Recommending Proposed Subcontract 4-42
Step 3 Deciding Whether to Consent to Issuance of Subcontract 4-43
Step 4 Conveying Consent to Subcontract 4-44
4.7.2 Required, Core, and Noncore Elements of Subcontract Review
and Consent 4-44
Exhibits
Exhibit 4-13 Process Flow for Subcontract Review and Consent 4-41
Exhibit 4-14 Required, Core, and Noncore Elements of Subcontract
Review and Consent 4-44
MAY 31. 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,7 Subcontract Review and Consent
This section describes how to review and consent to subcontracts issued
by the prime for specialized services that cannot ordinarily be provided by
the prime or its Team subcontractors. Under Response Action Contracts
(RACs), only the prime contractor can subcontract; Team subcontractors
cannot. For information on subcontractor oversight, see section 5.14.
4.7.1 How to Review and Consent to Issuance of Subcontracts
The subcontract review and consent process is depicted in Exhibit 4-13. A
step-by-step explanation follows the exhibit. In addition to the steps listed,
there are two considerations:
1) The Contracting Officer (CO) will not consent to a prime contractor
request for consent to subcontract for services or supplies outside the
scope or terms of the contract.
Reviews sub-
contract and
recommends
consent
1
I
K
Reviews sub-
contract and
recommends
consent
Selects
subcontractor
competitively
and prepares
subcontract
'Decides^
'to consent to'
Yes
51-033-18J
Exhibit 4-13. Process Flow for
Subcontract Review and
Consent
4-41
MAY 31. 1095
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RAC USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
EPA cannot direct the prime
contractor to subcontract with a
specific firm.
2) EPA cannot direct the prime contractor to subcontract with a specific
firm. Names of potential firms may be offered by EPA, but only to
assist the prime contractor to locate potential subcontractors when the
universe of potential subcontractors is limited, such as subcontractors
in a specialized field. When EPA offers such a list, the prime contractor
cannot be directed to consider the listed firms or to consider only the
listed firms.
EQUD Contractor Submission of Notice of Intent to Subcontract
The SUBCONTRACT CONSENT clause in RAC Section G requires that
the prime contractor give reasonable advance notification to the CO of
intent to subcontract. For certain types of subcontracts, the notification
should contain:
• type of subcontract
• a description of the supplies or services being ordered through the
subcontract
• evidence that there was competition or a sole-source exception was
made
• name of the subcontractor that the prime contractor selected
• explanation of why the subcontractor was selected and basis for
selection
• proposed subcontract price and the contractor's cost or price analysis
• subcontractor's cost or pricing data
• explanation of difference between contractor's estimate and low bid, if
necessary
• summary of subcontract negotiations
The prime contractor may pursue a sole-source solicitation if the subcon-
tract is documented adequately and the award is made in accordance with
approved procedures for sole-source subcontracts.
After receiving the prime contractor's notification, the CO requests
assistance from the Project Officer (PO), Work Assignment Manager
(WAM), and Design and Construction Advisor (DCA) in reviewing the
subcontract. The PO and WAM review the proposed subcontract for
technical adequacy and cost reasonableness, while the DCA focuses on
technical review.
The following questions should be considered when evaluating subcon-
tracts:
4-42
MAY 31, 1996
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CHAPTER 4 • CONTRACT ADMINISTRATION
• Is the technical approach adequate to meet the statement of work
(SOW) requirements as stated for the work assignment (WA)?
• Is the selection of supplies, equipment, or services technically justi-
fied?
• Who will retain ownership of any equipment or other property?
• Does the subcontractor have a potential conflict of interest with the
work to be performed?
• Are the proposed deliverables identical to those specified in the WA
SOW?
• Have the technical requirements of the prime contract been translated
into the subcontract?
• Are all required flow down clauses in the subcontract?
• Does the proposed schedule match that in the WA SOW? Is it reason-
able?
• Are the labor hours and budget reasonable? Too generous? Too tight?
• Are the subcontractor's costs reasonable and justified?
In addition to considering these questions, Federal Aquisltion Regulation
(FAR) Subpart 44.2 should be consulted during subcontract review. After
reviewing the subcontract, the PO, WAM, and DCA send a recommenda-
tion to the CO stating whether the subcontract should be consented to for
issuance under the WA. The CO may forward input from the PO, WAM,
and DCA on the proposed subcontract to the contractor if issues are
identified that need resolution before the subcontract is issued.
- Review proposed subcontract for technical adequacy and cost
PO | reasonableness.
- Recommend or oppose issuance of subcontract.
00 J . May forward input from the PO, WAM, and DCA to the
contractor.
Only the CO can give consent for a subcontract. The CO considers the
following when making a decision to give consent:
• If there is a potential conflict of interest with the work to be performed,
is the issuance of the subcontract appropriate?
• Will the proposed subcontract require the use of government-furnished
property or facilities, and, if so, have the proper procedures been
followed?
4-43
MAY 31. 1995
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RAC USERS' QUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 4-14. Required, Core,
and Noncore Elements of
Subcontract Review and
Consent
• Was the subcontract completed in accordance with FAR 52.244-5,
which requires that the contractor select subcontractors on a competi-
tive basis to the maximum extent consistent with the objectives and
requirements of the contract or the contractor's approved subcontract-
ing procedures?
The CO discusses and resolves any questions or problems relating to the
subcontract with the contractor before granting consent.
- Resolves subcontract issues with contractor.
- Decides whether to consent to issuance of subcontract.
BED Conveying Consent to Subcontract
The CO conveys consent to a subcontract by issuing a letter to the con-
tractor. If the CO decided to deny consent, this would also be done
through a letter that explained the rationale for the CO's decision.
- Issues subcontract consent letter to the contractor.
4.7.2 Required, Core, and Noncore Elements of Subcontract
Review and Consent
The required, core, and noncore elements of RAC guidance for subcon-
tract review and consent are identified in Exhibit 4-14. Chapter 1 pro-
vides definitions of required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
CO provision of written consent to the contractor for any subcontract for which
the contract requires advance CO notice
CO notification to contractor of consent to subcontract
Core
None currently defined
Noncore
• The Regions' specific procedures for reviewing subcontracts and documenting
subcontact review may vary.
51-033-906
4-44
MAY 31. 1905
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CHAPTER 4 « CONTRACT ADMINISTRATION
Handling Conflict of Interest Issues
SECTION
4.8
MAY 31, 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
COI Conflict of Interest
OGC Office of General Counsel
PO Project Officer
PRP Potentially Responsible Party
PS Program Support
QAB Quality Assurance Branch
RAC Response Action Contract
SOW Statement of Work
WA Woik Assignment
WAM Woik Assignment Manager
4,8 Handling Conflict of Interest Issues.. 4-45
4.8.1 How to Handle Conflict of Interest Issues 4-47
Step 1 Performing a Preliminary COI Screen 4-48
Step 2 Evaluating Preliminary COI Screen and Assigning Work 4-48
StepS Issuing Work Assignment 4-48
Step 4 Contractor Disclosure of COI 4-48
Step 5 Evaluating COI Disclosure 4-49
Step 6 Making a Final COI Decision 4-52
4.8.2 Required, Core, and Noncore Elements of Handling
Conflict of Interest Issues 4-52
Exhibits
Exhibit 4-15 Process Flow for Handling Conflict of Interest Issues 4-47
Exhibit 4-16 Conflict of Interest Information in Contractor's Disclosure and
Available within EPA 4-49
Exhibit 4-17 Conflict of Interest Indicators 4-51
Exhibit 4-18 Required, Core, and Noncore Elements of Handling
Conflict of Interest Issues .'... 4-53.
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,8 Handling Conflict of Interest Issues
This section describes how to determine if conflict of interest (COI) exists
and how to handle cases of COI under Response Action Contracts
(RACs). Responsibilities of the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) are highlighted.
4,8.1 How to Handle Conflict of Interest Issues
The process for determining and handling cases of COI is depicted in
Exhibit 4-15. A step-by-step explanation of the process follows.
TO
rwWw\
Plisland\
ASOW f
scripfon /
toPO J/
*- -^
ports CO
nCOl -
aluation
">l
Sends
PRPIist
* and SOW
«J««M*M •«•!««•«
description
to contractor
Evaluates
preliminary COI
screen and
assigns work
Supports
• CO in COI
evaluation
®
j
j
|
iWA -
I Evaluates COI
t and requests '
j additional info.
I
/Make
fdecisii
V not
\cpnti
I ^^~
sfinaK
in and V
ifies /
'actor/
A
Conducts
* preliminary
COI screen
• Receives WA
Prepares COI
certification or
discloses COI
immed. during
contract pert.
Provides
' additional info.
Receives
• notice of final
COI decision
Contract
Timeline
Certification 20
days from
receipt of WA or
disclosure at
anytime
Ideally within
10 days of
receiving COI
certification or
disclosure
51-033-1D
Exhibit 4-15. Process Flow for
Handling Conflict
4-47
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The PO sends the WA SOW and
PRP list to the RAC contractor so
a preliminary COl screen may be
performed.
EQifl Performing a Preliminary COl Screen
Before the Region assigns work, the Region may issue technical direction
to the contractor under the Ongoing Administrative Support work assign-
ment (WA) to perform a preliminary COl screen. For a preliminary COl
screen, the WAM assembles the potentially responsible party (PRP) list
and provides the PRP list and a general description of the WA statement
of work (SOW) to the PO. The PO sends the WA SOW description and
the PRP list to the RAC contractor so it can be screened for COL The cost
of conducting the screen is charged as a program support cost under the
Ongoing Administrative Support WA.
JVAM) - Assembles PRP list and WA SOW description and gives them
toPO.
- Sends PRP list and WA SOW description to contractor for
preliminary COl screen.
EBB Evaluating Preliminary COl Screen and Assigning Work
The PO evaluates the preliminary COl screen and assists the program in
assigning work to an appropriate contractor as described in section 5.3.
Prior to assigning work to the contractor, the PO should ensure that COl
was not identified in the COl screen. If one RAC contractor identifies a
COl issue during the screen, the PO/program normally would assign the
work to another RAC contractor. If all RAC contractors in the Region
identify COl issues during the screening, the PO enlists CO aid in evaluat-
ing the potential COl to see if it can be neutralized or mitigated or if
Regional crossover (section 4.9) needs to be considered.
PO
- Evaluates preliminary COl screen and assists program in
assigning work.
Issuing Work Assignment
The CO issues the WA to the contractor, as described in section 5.6.
-~x
00 ) - Issues WA.
Contractor Disclosure of COl
Within 20 days of receiving the WA, the contractor provides a certifica-
tion to the CO disclosing any actual or potential COl relating to the WA
and acknowledging its continuing obligation to disclose COl. Only one
certification is needed; sites added to the WA after certification submis-
4-48
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
sion or multi-site WAs are covered by the contractor's continuing obliga-
tion to disclose COI that the contractor acknowledges when signing the
certification. A Region may request subsequent certifications to maintain
consistency in COI reporting requirements. In addition to the certification
requirement, RAC requires that the contractor disclose actual or potential
organizational COI at any time during WA performance. At a minimum,
contractors must search the previous three years' records for COI. The CO
also should utilize COI information that is available within the Agency
when determining whether actual or potential COI exists. Basic COI
information that should be in the contractor's disclosure and COI informa-
tion that may be available within the Agency is shown in
Exhibit 4-16.
BQJB Evaluating COI Disclosure
The CO performs a risk analysis to determine whether potential COI
exists. The WAM and PO may assist the CO by reviewing the contractor's
disclosure and the information available within the EPA to help determine
The following pertinent Information should be disclosed by the contractor:
* Is the work to be performed at the same site or at a contiguous site where a contractor
performed work, is performing work, or will perform work for a PRP?
• Is the work to be performed for EPA similar or related to the work performed for a PRP,
a commercial client, or an industry?
• When did the contractor perform the work for the PRP, commercial client, or industry?
• Is work currently being performed for the PRP, commercial client, or industry?
• How much work has the contractor performed for the PRP, commercial client, or
industry?
• How much work and what type of work was performed for the PRP or commercial
client in the last three years?
• If the work in question involves an organizational relationship, what is the relationship
between the parties? Is it a parent, subsidiary, affiliate, etc.?
• Where personal COI exists, who are the individuals, are they still employed by the
company, and what were the individuals1 involvement?
• Is there any relevant infomation that has not been specifically requested?
The following Information may be available within EPA:
• What is the value of the WA? Is it a significant amount?
• Does the work performed relate to an existing or potential cost recovery or enforcement
action? If yes, what is the likelihood the work may be involved in litigation?
• Will the contractor testify on behalf of the U.S. in litigation? What are the concerns in
this regard if the contractor were to testify?
- Has a consent decree or an administrative order been signed? If so, what are the
terms of the agreement?
• Will the work be used to support an Agency regulation or standard?
• Is the work nondiscretionary in nature or does it involve some degree of judgement
or discretion on the contractor's part?
51-03M5
Exhibit 4-16. Conflict of Interest
Information in Contractor's
Disclosure and Available within
EPA
4-49
MAY 31, 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The majority ofCOI decisions are
not straightforward, and the CO
may require information in addition
to the contractor's disclosure.
Program office personnel are a
valuable resource in assisting the
CO in making the COI
determination.
if actual or potential COI exists. If a COI does exist, the CO evaluates
whether and how the COI can be avoided, neutralized, or mitigated. The
CO uses common sense, good judgment, and sound discretion when
evaluating and making COI decisions. Although some cases are straight-
forward, most COI situations are not. Rarely does the CO have enough
initial information to make an informed decision.
When there is insufficient information to make an informed decision, the
CO should request additional information from the contractor and should
ask the program office to assist in evaluating the case. The CO also may
request assistance from the Quality Assurance Branch (QAB) and the
Office of General Counsel (OGC) or Regional Counsel. After the WA has
been issued, however, the CO must consult QAB and OGC or Regional
Counsel if COI cannot be avoided, neutralized, or mitigated. If the COI is
not resolved satisfactorily, work may have to be stopped and assigned to
another contractor. The CO should monitor information received from the
contractor to ensure that it is as current, complete, and unambiguous as
possible. This will reduce requests for more contractor information.
COI Communications Network
Personnel in various EPA offices are available to assist the CO in making
COI decisions. The CO may seek assistance from the Regional Program
Office, the Regional Contracts Management Branch, QAB, OGC or
Regional Counsel. Routine input from the program office is important
because project staff are often in the best position to provide technical
advice regarding the nature of the work, and may be aware of other issues
the CO should consider when evaluating potential COI. When the CO is
basing a COI decision on the potential use of the contractor as a witness in
cost recovery or other litigation, enforcement staff can provide advice on
how a potential COI will impact or prejudice results.
The CO should ensure that an established line of communication exists
between the WAM and PO on the specific contract, as well as among all
WAMs, POs, and COs in the Region. Interoffice communication in this
network can range from monthly status meetings, where COI issues are a
standard part of the agenda, to an automated COI bulletin board.
Red Light/Green Light Method
The CO may use the "red light/green light" procedure to evaluate the
contractor's disclosure. In the red light/green light method, various COI
indicators (see Exhibit 4-17) are scored by color-coding the indicator red
for a high risk, green for a non-issue or low risk, and yellow for an
intermediate risk. After the indicators are color coded, a visual picture
exists to assist COs in evaluating COI.
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MAY 31,1095
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CHAPTER 4 « CONTRACT ADMINISTRATION
Same Site
Is the work to be performed at the same site where the contractor performed work
for a PRP, or at a contiguous site?
Related Services
Is the work to be performed for EPA similar or related to the work performed for the
PRP?
Does the work to be performed for EPA impact the manner in which the contractor
may already be performing related tasks?
WA Value
Is the value of the WA a significant amount? (Even if the value of the WA is low, if COI
is an issue, the work product from the WA will be "tainted," and its credibility will be
in question. Also, since it is possible that the work product, or at least data/information
from the WA, will be used later in the process of site decision-making/cleanup, it could
potentially affect other work.)
Financial Relationships
How much work has the contractor performed for the PRP?
Is the amount of work such that the contractor's credibility and bias could be questioned?
Have any confidential clients been identified? If so, as much information as possible
should be obtained from the contractor without violating confidentiality agreements.
Current, Recent, or Past Relationships
When did the contractor perform the work for the PRP?
Is work currently being performed for the PRP?
How much work was performed for the PRP in the last three years?
Does the contractor have any contracts or other arrangements to perform work for
any applicable PRP(s)?
Sensitivity/Visibility
Are there any extenuating circumstances that could cause this work to be considered
sensitive or highly visible (i.e., special Congressional interest, press coverage, or a
Superfund Accelerated Cleanup Model cleanup)?
Could release of sensitive information endanger EPA's enforcement actions?
Other - consider other applicable factors, not listed above, such as:
If the work in question involves an organizational relationship, what is the relationship
between the parties? Is it a parent, subsidiary, affiliate, etc.?
Has a consent decree been signed and, if so, by whom and on what terms?
51-03M6A
If all indicators are green, the probability is low that a conflict exists. If all
indicators are red, the probability is high that a conflict exists. If the
indicator colors are a mixture, the indicators in red must be given more
careful consideration before making the decision. Some indicators may be
more important than others depending on the situation. Thus, in a circum-
stance where there is one red indicator and all the other indicators are
green, that red indicator may be of sufficient seriousness that a conflict
would still exist and the contractor should not perform the work. The red
light/green light process helps the CO to identify COI. It should be
considered as a useful tool for doing so, but the process does not necessar-
ily provide a definitive answer in all COI cases.
4-51
Exhibit 4-17. Conflict of Interest
Indicators
MAY 31,1095
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Where COI cannot be avoided,
neutralized, or mitigated, work may
need to be stopped and reassigned.
ro
Assist the CO by reviewing COI information the contractor
discloses.
Determines whether a COI exists, requesting additional
information from the contractor or assistance from the program
office, QAB, OGC, or Regional Counsel if needed.
Making a Final COI Decision
The CO makes the final COI decision after evaluating all information and
recommendations. If COI cannot be avoided, neutralized, or mitigated,
work may need to be stopped and reassigned. In this situation, the CO is
required to consult with QAB and OGC or Regional Counsel. In emer-
gency situations (endangerment of the environment or life and death) or
situations in which there is an overriding public interest, work can be
performed even if a clear COI exists. An informed determination must be
made, however, and the situation must be mitigated to the greatest extent
possible. If the CO, working with the PO or the WAM, determines that the
application of COI rules would not be in the government's best interest,
Federal Acquisition Regulation 9.503 provides for a waiver of the COI
rules. A waiver, which must be requested in writing, may be approved
only by an agency head or a designee of the agency head, such as the CO.
As a general rule, the CO should strive to respond to COI issues within 10
working days of receiving the contractor's disclosure. The CO issues the
final COI decision to the contractor in writing and notifies the program
office. The CO should maintain records of COI decisions and related
correspondence. The CO sends a copy of the COI decision material to the
QAB. The QAB reviews COI cases to ensure consistency in treatment of
COI across the Agency.
- Makes final decision regarding COI.
- Determines effect of COI decision on work in progress
4.8.2 Required, Core, and Noncore Elements of Handling
Conflict of Interest Issues
The required, core, and noncore elements of RAC guidance for handling
COI are identified in Exhibit 4-18. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
4-52
MAY 31, 1995
-------
Required
Contractor submission of COI disclosure to the CO within 20 days of receipt of
theWA
CO determination of whether a COI exists
CO decision regarding how to avoid, neutralize, or mitigate identified COI
CO consultation with QAB and OGC or Regional Counsel in cases where the
CO determines that COI cannot be avoided, neutralized, or mitigated
CO notification to contractor in writing regarding COI decision
CO provision of copy of COI determination to QAB
CHAPTER 4 « CONTRACT ADMINISTRATION
Exhibit 4-18. Required, Core,
and Noncore Elements of
Handling Conflict of Interest
Core
None currently defined
Noncore
Before issuing a WA, a Region may request the contractor(s) to perform a
preliminary COI screen under the Ongoing Administrative Support WA.
The CO may use the "red light/green light" procedure to evaluate the contractor's
COI disclosure.
51-03M7A
4-53
MAY 31. 1095
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CHAPTER 4 • CONTRACT ADMINISTRATION
Managing Regional Crossovers
SECT ION
4.9
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CERCLIS Comprehensive
Environmental
Response, Compensation.
and Liability Information
System
CO Contracting Officer
COI Conflict of Interest
IGCE Independent Government
Cost Estimate
PO Project Officer
PR Procurement Request
PRP Potentially Responsible
Party
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAP Work Assignment Package
WAM Work Assignment Manager
WP Work Plan
4.9 Managing Regional Crossovers 4-55
4.9.1 Administering and Managing Regional Crossovers 4-57
Step 1 Identifying Need for Regional Crossover 4-58
Step 2 Requesting Contractor Capacity from Another Region 4-58
Step 3 Deciding to Consent to Regional Crossover 4-59
Step 4 Negotiating Crossover WA Responsibilities 4-59
4.9.2 Required, Core, and Noncore Elements of
Managing Regional Crossovers 4-60
Exhibits
Exhibit 4-19 Process Flow for Managing Regional Crossovers 4-57
Exhibit 4-20 Required, Core, and Noncore Elements of Managing
Regional Crossovers 4-60
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,9 Managing Regional Crossovers
This section describes the procedures for requesting and using Response
Action Contracts (RACs) contractor capacity from another Region due to
Regional contractor capacity shortfalls or conflict of interest (COI)
situations. Responsibilities of the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO) are highlighted.
4.9.1
The need for Regional crossovers for RACs may result from capacity
problems or COI situations. The CO, with input from the WAM and PO,
determines the need to request RAC contractor capacity from another
Region. Exhibit 4-19 illustrates the process for managing Regional
crossovers. A step-by-step explanation of the process follows.
Provide input on why
crossover is needed
Adequate
capacrtyfor
crossover?
51-033-I49C
Exhibit 4-19. Process Flow for
4-57
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
The CO, with input from the WAM and PO, evaluates potential contractor
capacity shortfalls or COI situations to determine whether a contractor
from another Region should be requested.
I- Provide input to assist CO in determining need for
Regional crossover.
(receiving
Region)
- Determines need for Regional crossover.
The PO or CO from the Region requesting Regional crossover (receiving
Region) contacts another Region (lending Region) to request its contrac-
tor capacity to perform a RAC work assignment(s) (WA). The receiving
Region CO should prepare a memorandum requesting crossover capacity,
including the following information:
• WA type
• reason for crossover
• rationale if specific contractor is requested
• project start date
• project completion date
• estimated number of hours
• anticipated cost
• site location
• site name and Comprehensive Environmental Response, Compensa-
tion, and Liability Information System (CERCLIS) number
• name and telephone numbers of receiving Region's WAM, PO, -and CO
• name and telephone numbers of receiving Region's WAM, PO, and CO
supervisors
• list of potentially responsible parties (PRPs)
• special considerations
PO
- Request contractor capacity from lending Region.
(receiving
4-58
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
The lending Region CO reviews the crossover request with input from the
lending Region PO and notifies the receiving Region of consent to cross-
over or denial of the crossover request. If one Region does not consent, the
receiving Region should attempt to access crossover capacity from
another Region. If difficulties arise and a Region cannot access crossover
capacity, then the Region should channel the request through EPA Head-
quarters.
- Reviews crossover request and PO input.
- Consents to or denies crossover request.
The receiving Region asks the lending Region about Region-specific
formats to be followed for statements of work (SOWs), independent
government cost estimates (IGCEs), and other contract documentation.
The lending Region provides all Region-specific information and require-
ments SO'the receiving Region can follow them. The receiving and
lending Regions then negotiate responsibilities for issuing and managing
the crossover WA. Generally, the receiving Region develops and submits
to the lending Region a work assignment package (WAP), containing a
work assignment form, WAM designation form, procurement request
(PR), SOW, and IGCE (see section 5.6). Regional crossovers require site-
specific funding so the receiving Region must submit a PR for the lending
Region's contract, "buying in" to the lending Region's contract. The
lending Region reviews the WAP and may return it to the receiving
Region with comments. After addressing the comments, the receiving
Region resubmits the WAP. The lending Region receives the revised WAP
and issues the WA. If funding is available, representatives from both the
lending and receiving Regions should attend fact finding and negotiation
meetings with the contractor. Both the lending and receiving Regions
should review the contractor's work plan (WP) (see section 5.7).
Ask lending Region for Region-specific procedures to
follow in preparing WAP.
Negotiate with lending Region responsibilities for
issuing and managing the crossover WA.
Provide Region-specific procedures to lending Region.
Negotiate with receiving Region responsibilities for
issuing and managing the crossover WA.
4-S9
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RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 4-20. Required, Core,
and Noncore Elements of
Managing Regional Crossovers
4.9.2 Required, Core, and Noncore Elements of Managing Regional Crossovers
The required, core, and noncore elements of RAC guidance for adminis-
tering and managing Regional crossover are identified in Exhibit 4-20.
Chapter 1 provides definitions of required, core, and noncore elements
and explains Regional responsibilities for incorporating each element.
Required
Receiving Region provision of funding sufficient to cover crossover WA costs,
as well as Program Support, base and award fee, travel, and administrative
workload costs associated with the work done under the crossover
Region request of crossover capacity through EPA Headquarters if difficulties
arise obtaining crossover capacity directly from another Region
Core
Lending Region establishment of terms of crossover, and receiving Region
compliance with terms of crossover
Noncore
Use of a crossover request memorandum to convey crossover needs to lending
Region
The specific responsibilities of the lending and receiving Regions' WAMs, POs,
and COs may vary depending on negotiated responsibilities for a particular
crossover.
51-033-1506
4-60
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
Implementing Control Measures for
\ulnerable Contracting Areas
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CBI Confidential Business
Information
CO Contracting Officer
COI Conflict of Interest
PO Project Officer
PRP Potentially Responsible
Party
RA Remedial Action
RAC Response Action Contract
RD Remedial Design
SOW Statement of Work
TD Technical Direction
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
4.10
.4-61
4.10.1 Implementing Control Measures for Advisory and Assistance
Services
4.10.2 Implementing Control Measures for Sensitive Contracting
Areas
4.10.3 Implementing Control Measures for General Contracting Areas
Requiring Special Contract Controls 4-64
4.10.4 Implementing Control Measures for Specific Contract Work
Areas
4-66
4.10.5 Required, Core, and Noncore Elements of Implementing Control
Measures for Vulnerable Contracting Areas 4-69
Exhibit
Exhibit 4-21 Required, Core, and Noncore Elements of Implementing
Control Measures for Vulnerable Contracting Areas 4-70
MAY 31. 1996
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CHAPTER 4 • CONTRACT ADMINISTRATION
4.10 Implementing Control Measures for Vulnerable
Contracting Areas
This section describes the control measures for activities in the four
categories of vulnerable or sensitive contracting areas identified in
Response Action Contracts (RACs):
• advisory and assistance services
• sensitive contracting areas
• general contracting areas requiring special contract controls
• specific contract work areas requiring controls
Roles of the Work Assignment Manager (WAM), Project Officer (PO),
and Contracting Officer (CO) are highlighted.
4.10.1 Implementing Control Measures for Advisory and Assistance Services
RAC work assignments (WAs) may appropriately task the contractor to
perform background research or options analysis in support of policy
development. However, the CO must review the contractor's activities for
potential partiality, favoritism, and contractor conflict of interest (COI) in
these situations. In all cases, the CO should clearly document that the
RAC contractor's work was reviewed and that final decisions were made
by EPA personnel. This documentation can include notes from reviews of
draft and final documents by EPA personnel, minutes from progress
meetings with contractors, and reports from EPA peer and board reviews.
The CO also should require the following from contractors that submit
reports containing recommendations:
• an explanation and ranking policy or action alternatives
• a description of the procedures used to arrive at recommendations
• a summary of the substance of deliberations
• an inclusion of any dissenting views
• a list of sources
• an explanation of the methods and considerations upon which recom-
mendations are based
- Examines the WA and confirms that partiality, favoritism, and
contractor COI are not factors.
- Documents that the RAC contractor's work was reviewed and
final decisions were made by EPA.
- Reviews contractor deliverables to ensure that contractor
deliverables are not used to perform work of a policy, decision-
making, or managerial nature.
4-63
The CO reviews the RAC
contractor's work and final
decisions are made by EPA
personnel
MAY 31, 1905
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
4.10.2 Implementing Control Measures for Sensitive Contracting
Areas
EPA must be aware of the potential uses of data collected under the RAC
statement of work (SOW) and must ensure that:
SOWs for WAs do not include work outside the RAC scope of work
the contractor is directed only to provide necessary technical informa-
tion, and to avoid solicitation of assistance outside the contract scope
of work such as policy recommendations or regulatory interpretation
CO ) - Reviews WAs and ensures that the work ordered by the
Agency is within the RAC scope of work.
4.10.3 Implementing Control Measures for General Contracting
Areas Requiring Special Contract Controls
There are three general areas that require special contract control mea-
sures:
• handling confidential business information (CBI)
• ensuring that contractor personnel are not mistaken for EPA employees
• avoiding vulnerabilities when contractor personnel share office space
with EPA personnel
Handling Confidential Business Information
At times, RAC contractor personnel may have access to CBI of other
contractors. The following precautions must be taken when the contractor
works with CBI:
• The RAC contractor must survey businesses for possible claims of
confidentiality before collecting any information and ensure that CBI
furnished by EPA is used only to perform work under the contract, is
not disclosed to any parties outside EPA without prior approval, and is
returned to EPA upon completion of the work.
• The RAC contractor must not accept CBI unless CO approval has been
received. If approval is received, it must comply with the provisions of
the RAC clause in Section H, titled TREATMENT OF CONFIDEN-
TIAL BUSINESS INFORMATION, in working with the material.
• The PO and CO review the information releases to ensure that CBI
requirements are being followed.
• The program (PO or other personnel depending on Regional proce-
dures) prepares a written certification that EPA has followed required
4-64
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
procedures for using CBI, including obtaining approval from the CBI
owner. The program forwards the certification to the CO for approval
before releasing CBI to the RAC contractor.
PO
- Reviews CBI releases and prepares a written certification that
the EPA has followed required procedures for handling CBI.
- Reviews CBI releases to ensure that CBI requirements are being
followed.
Ensuring That Contractor Personnel Are Not Mistaken for EM Employees
The RAC contractor may interact with the public or EPA personnel and
could potentially be mistaken as EPA personnel. To avoid this, contractor
personnel must wear identification badges at all times and verbally
identify themselves as contractor personnel when on site or attending
meetings, symposia, conferences, or other functions under RACs.
This requirement is incorporated in the contract SOW for all task areas
where contractor personnel could potentially be mistaken for EPA em-
ployees. The WAM or PO are responsible for monitoring the activities of
the RAC contractor and are responsible for ensuring that the RAC con-
tractor adheres to this policy.
PO
- Ensure that RAC contractor staff clearly identify themselves as
contractor personnel at all times.
Personnel
RAC contractor personnel may share an on-site trailer with the EPA WAM
while performing remedial or removal support activities. Control mea-
sures must be in place to ensure that contractor personnel are not mistaken
for EPA personnel and that they do not have access to CBI. The following
control measures must be followed:
• The contractor's office space must be clearly labeled with name plates
that identify contractor personnel as contractors.
• Unauthorized contractor personnel should not have access to EPA's
section of the trailer, and file cabinets containing CBI must be locked.
• The WAM or PO must monitor the contractor's daily performance
obtaining input from other EPA officials when available.
Ensure that RAC contractor personnel are not mistaken for
EPA personnel and do not have access to CBI when sharing
office space with EPA personnel.
Contractor personnel must
identify themselves as such when
they could be potentially mistaken
as EM personnel.
4-65
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
RAC contractor personnel must
clearly display identifying badges
when interacting with the public.
4.10.4 Implementing Control Measures for Specific Contract Work Areas
In addition to the general areas that require special contract control
measures, there are six specific RAC work or task areas that require
controls for contractor activities.
Coordinating Community Relations Activties
The contractor may be tasked by EPA to coordinate community relations
and public participation activities under the remedial response, enforce-
ment oversight, and non-time critical removal tasks, or under a separate
WA. This may include operation of Citizen Information and Access
offices. These services may require the contractor to communicate EPA
policy and regulations and provide information to the public on EPA's
behalf. The RAC contractor personnel must adhere to the following
controls so that EPA is not put in a vulnerable position:
• The contractor must submit a work plan (WP) before commencing any
activity in support of community relations activities so that proposed
activities can be screened by EPA for proper controls in potentially
sensitive situations.
• Contractor employees must display badges that clearly identify them-
selves as contractor personnel when interacting with the public.
Contractor employees identify themselves as contractor personnel at
the beginning of public meetings and at the beginning of interviews,
and may not conduct interviews without EPA staff present. The con-
tractor conveys information only and does not interpret policies or
regulations for the public.
• The contractor should prepare community relations deliverables (such
as community relations plans, fact sheets, public notices, audio-visual
aids, and reports) according to guidance documents and policy state-
ments furnished by EPA and submit them to EPA for review and
approval. EPA reviews the community relations deliverables for
compliance with the requirements and provides final approval before
the documents are released.
The WAM and PO monitor the contractor's performance to ensure that the
RAC contractor personnel do not represent themselves as EPA employees
when conveying information to the public. This monitoring should
include input from other EPA officials when available.
- Monitor the contractor's performance to ensure
that contractor staff do not represent themselves as EPA
employees when conveying information to the public.
PO
4-86
MAY 31, 1096
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CHAPTER 4 • CONTRACT ADMINISTRATION
The RAC contractor may conduct on-site audits, surveys, and inspections
at sites, facilities, and locations where the release of hazardous substances
is a threat. These services may require contractor support involving
conveying existing EPA policy and regulations and providing information
on EPA's behalf. RAC contractor personnel involved in these activities
must adhere to the following controls:
• The contractor prepares oversight and inspection plans, checklists, and
other survey materials according to EPA guidance documents, policy
statements, and inspection standards.
• The contractor prepares WPs for EPA review and approval before
commencing activities and identifies any areas where CBI may be
collected.
• Contractor employees display badges that clearly identify them as
contractor personnel when dealing with outside parties. Contractor
employees introduce themselves as contractor personnel at the begin-
ning of each on-site visit or communication with outside parties during
oversight, inspections, and surveys.
• The WAM and PO review and approve deliverables before the contrac-
tor performs the on-site review.
• The WAM monitors contractor compliance with EPA's requirements
stated above.
)VAlO - Review and approve deliverables before performance of the
on-site review by the contractor.
- Monitor contractor compliance with EPA requirements.
PO
Providing Litigation Support
If the RAC contractor provides litigation support, it may be necessary for
the contractor to review CBI of other contractors. The RAC contractor
also may attend meetings where enforcement strategy is discussed. The
following controls must be followed to avoid vulnerabilities during
litigation support activities:
• The WAM, PO, and other EPA officials must not unnecessarily dis-
close to the RAC contractor sensitive enforcement information.
• The RAC contractor must not interpret EPA policy or disclose the
government's strategy to others, such as during attendance at poten-
tially responsible party (PRP) meetings.
- Ensures that the RAC contractor does not disclose the
government's enforcement strategy to others while attending
meetings with PRPs and does not reveal to the contractor sensi-
tive enforcement information.
4-67
Preparing for audits, surveys,
and inspections may require the
RAC contractor to convey
easting EPA policy and
regulations.
Providing litigation support may
require the RAC contractor to
review CBI of other contractors.
MAY 31, 1996
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The RAC contractor may provide
EPA-PRP negotiation support to
EPA and DOJ negotiators.
The RAC contractor may prepare
the final cost estimate as part of
the design package.
Providing Negotiation Support
RAC contractor personnel may be mistaken for EPA personnel if the
contractor provides PRP negotiation support to EPA and is present during
negotiations to provide technical support to EPA and Department of
Justice negotiators. The following controls must be followed to mitigate
this vulnerability:
• The RAC contractor must submit a WP describing in detail the proce-
dures the contractor will follow when performing the negotiation
support task.
• RAC contractor personnel must visibly display badges during negotia-
tions that clearly identify them as contractor personnel.
• The WAM should monitor to ensure that the contractor assisting in
negotiations only provides technical guidance and does not develop the
negotiation strategy.
- Provides necessary control measures to ensure that RAC
contractor personnel are not mistaken for EPA personnel.
- Monitors contractor to ensure that the contractor assisting in
negotiations only provides technical guidance and does not
develop the negotiation strategy.
- Provides necessary control measures to ensure that RAC
contractor personnel are not mistaken for EPA personnel.
Preparing Design Construction Cost Estimate
RAC contractors that design a selected EPA-lead remedial action (RA)
prepare a final construction cost estimate as part of the 100% design
package. This is considered a sensitive contracting area because the prime
contractor can achieve greater profit through increased subcontract costs.
This sensitive area should be addressed in the following ways:
• The WAM should consult other Federal agencies, such as the Bureau of
Reclamation or the U.S. Army Corps of Engineers, to assist in review-
ing the RAC contractor's estimate. (For example, in Region 2, the
Design and Construction Manager of the Emergency Remedial Re-
sponse Division's Contracts Management Section performs a "fatal
flaws" analysis of the remedial design [RD] prior to the final approval
ofthelOO%RD).
• The RAC contractor must use full and open competition when solicit-
ing for an RA subcontractor.
• The RAC prime contractor must submit the RA subcontractor consent
package to the CO for consent (see section 4.7). The CO reviews the
4-68
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
cost portion of the bidder's proposal and the WAM and PO perform a
technical evaluation of the proposal.
The CO decides whether to consent to the proposed subcontract.
. Review the technical portion of the RA subcontractor consent
package and inform the CO of any potential problems or
inconsistencies.
- Reviews the cost portion of the bidder's proposal and, based on
the cost review and the PO's and WAM's technical review,
decides whether to consent to the proposed subcontract.
During an RA construction WA, the RAC contractor may need to modify
the RA subcontract to allow for changes in the work which are required
by changing conditions at the site. This is considered a sensitive contract-
ing area because the RAC contractor can achieve greater profit through
increased subcontract costs. To avoid this, EPA and the RAC contractor
must adhere to the following controls:
• The RAC contractor must inform the CO when changes to the RA
subcontract are necessary.
• The CO issues technical direction (TD) or a WA amendment to facili-
tate the construction change.
• Upon receipt of the TD or WA amendment, the prime contractor may
modify its subcontract.
PO
- Review requests for changes to the RA WA.
f _
00 I - Reviews, approves, and formally documents in TD or a WA
amendment changes to the RA WA. .
4,10.5 Required, Core, and Noncore Elements of Implementing Control
Measures for Vulnerable Contracting Areas
The required, core, and noncore elements of RAC guidance for imple-
menting control measures for vulnerable contracting areas are identified
in Exhibit 4-21. Chapter 1 provides definitions of required, core, and
noncore elements and explains Regional responsibilities for incorporating
each element.
4-69
The RAC contractor may need to
modify the RA subcontract to
allow for changes in the WA.
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 4-21. Required, Core,
and Noncore Elements of
Implementing Control Measures
for Vulnerable Contracting
Areas
Required
Implementation of special contract controls in areas defined by EPA Order
1900.2A
Adherence to OMB Circular A-120, "Guidelines for the Use of Advisory and
Assistance Services"
Implementation of contract CBI clauses
Core
Enforcement of requirement that contractor personnel display badges, introduce
themselves as contractors, and observe CBI contract requirements
Review of WA SOW and contractor WP to identify vulnerable areas and determine
and put in place appropriate control measures
Monitoring to identify if vulnerable situations arise during the course of the WA
and determine and put in place appropriate control measures
Noncore
The Regions may institute control measures in addition to those indicated in this
section. 51-033-166
4-70
MAY 31, 1096
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CHAPTER 4 • CONTRACT ADMINISTRATION
Small and Small Disadvantage!) Business
Utilization, Contractor Participation in
Mentor-Protege Program, and Use of
Labor Surplus Areas
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FAR Federal Acquisition
Regulation
ISA Labor Surplus Area
OSDBU Office of Small and
Disadvantage! Business
Utilization
RAC Response Action Contract
SOB Small Disadvantage*!
SDBU Small Disadvantaged
Business Utilization
SF Standard Form
Small and Small Disadvantaged Business Utilization, Contractor Participation
4-71
4.11
4.11.1 Monitoring Contractor Compliance with Subcontracting Plan 4-73
4.11.2 Required, Core, and Noncore Elements 91
Monitoring Compliance with Subcontracting Plan 4-75
Exhibits
Exhibit 4-22 Methods of Monitoring Contractor Compliance with
Subcontracting Plan 4-73
Exhibit 4-23 Required, Core, and Noncore Elements of
Monitoring Compliance with Subcontracting Plan 4-75
MAY 31, 1995
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CHAPTER 4 « CONTRACT ADMINISTRATION
4,11 Small and Small Disadvantages! Business Utilization,
Contractor Participation in Mentor-Protege Program, and Use
of Labor Surplus Areas
This section describes how Small and Small Disadvantaged Business
Utilization (SDBU), the Mentor-Protege program, and the Labor Surplus
Area (LSA) program are incorporated in Response Action Contracts
(RACs). Under RACs, the major mechanism used to implement these
programs is the contractor's subcontracting plan. The requirement to file
subcontracting reports, the liquidated damages clause, and the perfor-
mance (award) fee evaluation provide incentives to the contractor to
comply with the subcontracting plan.
4.11.1 Monitoring Contractor Compliance with Subcontracting Plan
The three methods by which EPA ensures the prime contractor's compli-
ance, with the subcontracting plan are illustrated in Exhibit 4-22.
Subcontracting Reports
The contractor is required to submit a report for subcontracting under
RACs. The contractor also submits a summary report on subcontracts
under any other contracts besides RACs between the contractor and EPA
that contain subcontract goals for awards to small businesses and SDB
concerns. The contractor submits the reports to the Contracting Officer
(CO), with a copy to EPA's Socioeconomic Officer at the Office of Small
Subcontracting
Reports
Liquidated
Performance
(Award) Fee
Evaluation
provisions, and the performance (award) fee process to monitor the contractor's
compliance with its subcontracting plan.
51-033-708
Exhibit 4-22. Methods of
Monitoring Contractor
Compliance with
Subcontracting Plan
4-73
MAY 31. 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
If the CO finds that the contractor
did not make a good-faith effort to
comply with the subcontracting
plan, the CO may require payment
of liquidated damages.
and Disadvantaged Business Utilization (OSDBU), on standard forms
(SF) 294 and 295, semi-annually and quarterly per SF instructions. If a
RAC prime contractor is a mentor, it must report semi-annually on its
Mentor-Protege program progress, including filing an attachment to SF
295 (see RAC Attachment K, "Mentor-Protege Program"). The CO
reviews the reports as part of the monitoring of compliance with the
subcontracting plan.
- Receives and reviews contractor's subcontracting reports.
Performance (Award) Fee Evaluation Process
During the semi-annual performance (award) fee evaluation (Chapter 6),
the Performance Evaluation Board considers prime contractor compliance
with the subcontracting plan. Specifically, RAC Attachment G, "Perfor-
mance Fee Plan," lists SDBU criteria for both program support activities
and site-specific work assignment activities. The criteria include the
extent to which the contractor satisfied its small and small disadvantaged
business (SDB) subcontracting goals and the extent of contractor partici-
pation in the Mentor-Protege program.
During the contract, the CO monitors the contractor's efforts to comply
with the subcontracting plan. If, at the completion of a contract, the CO
finds that the contractor failed to make a good-faith effort to comply with
the subcontracting plan, the CO may require the contractor to pay the
government liquidated damages. For RACs, liquidated damages, as
prescribed by Federal Acquisition Regulation (FAR) 52.219-16(b), would
be an amount equal to the actual dollar amount by which the contractor
failed to achieve each subcontract goal. Before the CO makes a final
decision that the contractor failed to make a good-faith effort, the CO
gives the contractor written notice specifying the failure and permitting
the contractor to demonstrate that a good-faith effort has been made.
Failure to respond to the notice may be interpreted as an admission that no
valid explanation exists.
- Monitors contractor's efforts to comply with subcontracting
plan.
- At end of contract, may require contractor to pay liquidated
damages for lack of a good faith effort to comply with the
subcontracting plan.
4-74
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
4.11.2 Required, Core, and Noncore Elements of Monitoring Compliance with the
Subcontracting Plan
The required, core, and noncorc elements of RAC guidance for monitoring
compliance with the subcontracting plan are identified in Exhibit 4-23.
Chapter 1 provides definitions of required, core, and noncore elements and
explains Regional responsibilities for incorporating each element.
Required
CO enforcement of-liquidated damages clause as necessary
Core
Monitoring to verify contractor compliance with subcontracting plan
Review of subcontracting reports submitted by contractor
Noncore
None currently defined
51-033-115A
Exhibit 4-23. Required, Core,
and Noncore Elements of
Monitoring Compliance with
Subcontracting Plan
4-75
MAY 31, 1995
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CHAPTER 4 « CONTRACT ADMINISTRATION
Annual Allocation of
Non-Site-Specific Costs
SECTION
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
SAB Superfund Accounting Branch
4,12 Annual Allocation of Non-Site-Specific Costs 4-77
4.12.1 Annual Allocation Procedures 4-79
Step 1 Reconciling Contract Costs 4-80
Step 2 Reviewing Annual Allocation Reports 4-60
4.12.2 Required, Core, and Noncore Elements of Annual Allocation 4-80
Exhibits
Exhibit 4-24 Process Flow for Annual Allocation 4-79
Exhibit 4-25 Required, Core, and Noncore Elements of Annual
Allocation 4-80
MAY 31, 1095
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,12 Annual Allocation of Non-Site-Specific Costs
This section describes the annual allocation process that distributes
program support costs, base and performance (award) fees, and other non-
site-specific costs to sites and programwide activities for later cost
recovery.
4.12.1 Annual Allocation Procedures
During the annual allocation process, the contractor allocates all program
support costs, base and performance (award) fees, and some nonsite
activity costs to sites and activities the contractor worked on during the
fiscal year. The contractor submits an allocation report along with any
necessary supporting schedules to the Superfund Accounting Branch
(SAB) at the end of each Federal fiscal year (October 1-September 30).
The supporting schedules include a master allocation schedule and may
include a schedule of startup costs, a schedule of capital equipment
depreciation, and a schedule of nonsite activities.
Exhibit 4-24 depicts the annual allocation process. A step-by-step
description of the process follows the exhibit.
NX
Ensures that
contractor
complies
CfMMtnJ
jUpOIUMl
Accounoiut uizncn
^ —
/Rec
f total
I invc
V
ords\
of all
ices I
lid J
• r
• /CQ
i /M
i
!
i
i.
Reviews draft
report; requests
submission of final
report
1
i
;
i
1
j
I
j
1
i
\
!
Reco
invoic
' with re
\
^
idles
B total
cords
Prepares and
submits two copies
of draft report to
SAB
Prepares and
submits final
report to SAB
Contract
Timeline
i
j SAB has 90 days
i from the end of the
i fiscal year or 90
! days from the end
i of the contract to
! provide invoice
i total
i Contractor has 60
i days from receipt
! of invoice total to
i prepare a draft
i annual allocation
i report
1
I
I
1
i Contractor has 30
i days to submit final
i report after
i notification from
! the SAB
•
51-03W7E
Exhibit 4-24. Process Flow for
Annual Allocation
4-79
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RAC USERS' QUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 4-25. Required, Core,
and Noncore Elements of
Annual Allocation
EQiD Reconciling Contract Costs
The SAB provides the contractor with the total amount of all invoices
paid for the annual allocation period within 90 days of the end of the
Federal fiscal year or within 90 days of submission of the last invoice
following contract expiration. The contractor reconciles EPA-provided
amounts with contractor records.
EBB Reviewing Annual Allocation Reports
The contractor prepares a draft annual allocation report and submits two
copies to SAB within 60 days of receiving EPA invoice records from
SAB. The SAB reviews the draft annual allocation report, notifies the
contractor in writing of any necessary corrections, and requests a final
report.
The contractor revises the draft report and submits hardcopy and elec-
tronic versions of the final annual allocation report to the SAB within 30
days of receiving written notice from EPA. The contractor also should
submit a summary of allocation report on a 5'/4-inch or a 3 '/2-inch DOS
computer disk in Lotus 1-2-3 or ASCII format.
CO I . Ensures that the contractor complies with annual allocation
requirements in the contract.
4.12.2 Required, Core, and Noncore Elements of Annual Allocation
The required, core, and noncore elements of Response Action Contract
guidance for annual allocation are identified in Exhibit 4-25. Chapter 1
provides definitions of required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
EPA ensures that the contractor performs annual allocation as required in the
contract
Core
None currently defined
Noncore
None currently defined
51-033-113
4-80
MAY 31, 1095
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CHAPTER 4 • CONTRACT ADMINISTRATION
Annual Closeout
SECTION
4.13
MAY 31, 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
CPRNB Cost Policy & Rate
Negotiation Branch
FAB Financial Analysis Branch
FACO Financial Administrative
Contracting Officer
FAR Federal Acquisition
Rogulstion
FYE Fiscal Year Ended
IG Inspector General
MATS Management Autit Tracking
System
PO Project Officer
PRP Potentially Responsible Party
RAC Response Action Contract
S/SID Site/Spill Identifier
WA Work Assignment
4.13 Annual Closeout 4-81
4.13.1 The Annual Closeout Process 4-83
Step 1 Contractor Submission of Claims 4-83
Step 2 EPA Review and Audit 4-88
Step 3 Resolving Audit Results 4-89
Step 4 Transmitting Audit Results to the FAB 4-89
Step 5 Submitting Release Statement 4-89
Step 6 Completing Annual Closeout 4-90
4.13.2 Required, Core, and Noncore Elements of Annual Closeout 4-90
Exhibits
Exhibit 4-26
Exhibit 4-27
Exhibit 4-28
Exhibit 4-29
Exhibit 4-30
Process Flow for Annual Closeout 4-84
Sample Summary of Costs Claimed for FYE XX 4-85
Sample Summary of Costs Claimed for FYE XX by Work
Assignment 4-86
Sample Billing Summary for FYE XX 4-87
Required, Core, and Noncore Elements of Annual
Closeout 4-91
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
4,13 Annual Closeout
Response Action Contracts (RACs) are closed out annually to enable EPA
to efficiently manage contract costs. Annual closeout follows the require-
ments and procedures explained in this section.
4.13.1 The Annual Closeout Process
The annual closeout process involves submittal of the contractor's annual
costs, review of the submitted costs, audit of contractor costs, and negotia-
tion and finalization of indirect costs. Exhibit 4-26 depicts the annual
closeout process. A step-by-step explanation of the process follows.
EflUfl Contractor Submission of Claims
Within ISO days of the end of the contractor's contract fiscal year, the
contractor is required to submit to the Contracting Officer (CO) a fiscal
year schedule of direct and indirect costs claimed. Three schedules are
required:
• Summary of Costs Claimed for FYE XX
• Summary of Costs Claimed for FYE XX by Work Assignments
• Billing Summary for FYE XX
The Summary of Costs Claimed for FYE XX schedule (Exhibit 4-27)
identifies direct and indirect costs claimed by cost element, the applicable
base and award fee for the contractor's fiscal year, and claimed program
management and remedial costs. The schedule's format should be ad-
justed to reflect each cost element recognized by the contractor's account-
ing system and the contract.
The contractor must submit proposed final indirect cost rates within 90
days of the expiration of the fiscal year, as required by Federal Acquisi-
tion Regulation (FAR) 52.216-7(d), unless the CO permits the contractor
to submit them otherwise. To avoid duplication under RACs, the CO
should allow the contractor to submit proposed indirect rates during the
annual closeout procedure, which requires submittal within ISO calendar
days of the fiscal year end.
Since EPA accounts for each RAC work assignment (WA) separately, the
contractor must provide fiscal year contract costs by cost element for each
WA (see section 5.5 for cost elements). As such, the contractor is required
to complete and submit a Summary of Costs Claimed for FYE XX by
Work Assignment schedule that details the contract costs claimed by cost
element and by WA (Exhibit 4-28).
4-83
The contractor must submit
schedules of direct and indirect
costs claimed for the fiscal year to
the CO within 150 days of the end
of the contractor's fiscal year.
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
MAY 31, 1095
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 4-26. Process Flow for
Annual Closeout
The contractor must document
reasons for variances between
fiscal year amounts claimed and
amounts invoiced.
financial
Financial Analysis !
^w,
Analysis Branch Contracting Officer
1
i
1
Reviews cost
claims and
requests H
audit
i
Reviews audit
report;
negotiates and
resolves direct
cost issues
Authorizes
contractor to
bill for
variances
Reviews
release -<
statement
Reviews con-
tractor's claims;
coordinates
cost audit with
CPRNB;
transmits audit
report
to CO
i
1
Reviews
resolutions and
dispositions oi
negotiated
costs
i
Receives copy
of release
statement
j
i
Negotiates and
resolves indirect
cost issues and
non-contract-
specific direct
costs
inmnni ] ^flfr
Branch j * *
:
Reviews audit
report and
determines
which costs
need to be
negotiated by
the FACO
/Submits i\
• f cost 1
V claims J
\
i
:
Invoices for
variances and
release
statement
51-033-2G
In addition to the summary of costs claimed and WA-specific costs
claimed, the contractor also submits a Billing Summary for FYE XX
schedule (Exhibit 4-29). This report provides a summary of the
contractor's fiscal year contract costs and fees by voucher number.
If variances exist between claimed amounts and the amounts that appear
on the billing summary, the contractor must submit a fully documented
reconciliation detailing the amount of the variance, the amount of the
variance by WA, and the reason for the variance.
4-84
MAY 31. 1995
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CHAPTER 4 » CONTRACT ADMINISTRATION
Exhibit 4-27. Sample Summary of Costs Claimed for FYE XX
Summary of Costs Claimed for FYE XX
Contractor Name
Contract Number
Rscal Year Ended XX
Costs Elements
Direct Labor
Fringe
Overhead
ODC's
Travel
Materials
Equipment
Subtotal
G&A
Subcontract Pool Costs
(Attachment)*
Subcontracts Costs
Team Sub A
Team Sub B
G&A on Subcontracts
Total Costs
Base Fee
Award Fee
Total Claimed
Less Total Billed
(See Attachment 1E)
Variance **
Total Costs
Claimed for
FYE XX
Program Mgt.
Claimed for
FYE XX
Remedial
Claimed for
FYE XX
4-85
51-033-133*
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 4-28. Sample Summary of Costs Claimed for FYE XX by Work Assignment
Summary of Costs Claimed for FYE XX by Work Assignment
Contractor Name
Contract Number
Fiscal Year Ended XX
Costs Elements
Direct Labor
Fringe
Overhead
ODC's
Travel
Materials
Equipment
Subtotal
G&A
Subcontract Pool Costs
(Attachment)*
Subcontracts Costs
Team Sub A
Team Sub B
G&A on Subcontracts
Total Costs
Base Fee
Award Fee
Total Claimed
Less Total Billed
(See Attachment 1E)
Variance
Work
Assignment
Work
Assignment
Total
All Work
Assignments
4-86
51-033-134
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
Exhibit 4-29. Sample Billing Summary for FYE XX
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Voucher#
Total
Billing Summary for FYE XX
Invoice
Costs
Billed
forFYEXX
Fee
Billed
torFYEXX
Total
Billed
forFYEXX
Last Column on this Schedule must equal total Billed on Attachment 1C - Summary of Costs Claimed
Date Submitted to EPA
Contract Person - Name
Phone Number
4-87
Sl-033-135
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The contractor's fiscal year claim
and incurred costlsubmittals must
be consistent.
The CO reviews contractor claims
to ensure that they are complete
and consistent.
The contractor's fiscal year claim should consist of all costs incurred and
recorded in the past contractor fiscal year, as required by FAR 52.216-7(d).
Only invoices received by the prime contractor during the past fiscal year
should be included in the claim to the government. Services performed by
subcontractors during the fiscal year—but for which the prime contractor
has not yet received invoices—are not included in the claim. Subcontrac-
tor invoices that are not received by the prime contractor by the end of the
fiscal year should appear as incurred/claimed costs in the following fiscal
year.
Any billing adjustments made during the fiscal year count as claims for
the fiscal year in which the correction was made. The contractor is
required to submit a separate invoice for any necessary prior year adjust-
ments. The separate invoice should identify the time period for which the
costs are applicable, contain a detailed explanation, and include any
documents that support the need for the adjustment. The invoice must be
numbered and identify current cumulative costs by cost element.
EBB EPA Review and Audit
After receiving the contractor's claims, the CO reviews them to ensure
that the submitted documents are complete and consistent with each other,
and that any necessary contractor, CO, or Project Officer (PO) explana-
tions or concerns are attached. Once the CO is satisfied with the
contractor's claims, the CO forwards the claims to the Chief of the
Financial Analysis Branch (FAB), along with an audit request.
After receiving the contractor's claims from the CO, the FAB reviews the
claims to ensure that the contractor's Summary of Costs Claimed for FYE
XX is in the appropriate format (see Exhibit 4-27) and is consistent with
the contractor's incurred cost submittal. If any anomalies are identified,
the FAB will notify the contractor and the CO to resolve the problem
areas.
If the annual direct and indirect incurred cost audit for the fiscal year has
not been requested by Cost Policy and Rate Negotiation Branch (CPRNB)
personnel when the contractor's claims are received by the FAB, the FAB
will coordinate an audit of the claims with CPRNB personnel. If CPRNB
personnel already have issued the direct and indirect incurred cost audit
request for the fiscal year, the FAB will issue a supplemental request to
the appropriate audit office. The request will include the contractor's
claims and audit instructions.
- Reviews contractor claims to ensure that the billing
summaries are complete and accurate.
4-88
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
EBB Resolving Audit Results
After receiving the audit report, CPRNB forwards the audit report to the
CO for review. CPRNB personnel determine which cost issues should be
resolved through CO negotiations with the contractor and which should be
resolved through Financial Administrative Contracting Officer (FACO)
negotiations with the contractor. The CO is responsible for negotiating all
contract-specific direct cost issues. The FACO is responsible for negotiat-
ing all indirect cost rates and any non-contract-specific direct cost issues,
such as a computer billing rate applied to all cost elements. All direct and
indirect contractor costs questioned as a result of the audit process should
be resolved with the contractor immediately.
^—>
GO ) - Negotiates all questioned contract-specific direct costs with
the contractor.
E?ran Transmitting Audit Results to the FAB
Questioned contract costs must be resolved by the CO and FACO within
ISO calendar days of receipt of the direct and indirect cost audits of the
contractor and any applicable subcontracts or as soon thereafter as practi-
cable. Also within this time frame, the CO and the FACO must prepare
and submit to FAB a written explanation detailing the results of the
negotiations. The CO also must provide the EPA Management Audit
Tracking System (MATS) form summarizing the disposition of questioned
costs within the ISO-day time frame. Any unresolved questioned costs
remain in MATS until all costs are negotiated and recovered. The CO is
involved in verifying the recovery. The FAB reviews the negotiation
results and disposition of negotiated costs.
- Reports on the negotiation results and summarizes the
disposition of questioned contractor costs.
After the costs have been negotiated, the CO authorizes the contractor to
bill (debit or credit) for approved variances between claimed and negoti-
ated fiscal year costs. The contractor must bill for these variances on a
separate invoice. The PO notifies WAMs of any debits/credits to WAs.
After the direct and indirect costs claimed for the fiscal year have been
audited and the costs have been negotiated, the contractor is required to
submit a release statement (EPA Form 1900-6), which releases the gov-
ernment from liability of payment for additional costs claimed in that
fiscal year. The CO reviews the release statement for accuracy to ensure
that it is consistent with the contractor's Summary of Costs Claimed for
4-89
The CO negotiates all contract-
specific direct cost issues, and the
FACO negotiates all indirect and
non-contract-specific issues.
Questioned contracts costs must be
resolved within 150 days of receipt
of audit results.
The contractor submits a release
statement to the CO after the
completion of direct and indirect
cost negotiations.
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The government is not obligated to
pay additional cost billed after a
fiscal year is closed out.
FYE XX and to the negotiated cost amounts for the year. The CO also
reviews any estimated/unsettled cost items outlined in the contractor's
release statement for reasonableness.
The total release amount equals the contractor's claimed amount for the
fiscal year (after adjusting for any questioned costs after the audit and
negotiation process). The release statement also lists any estimated
claims or items not settled, for which EPA is not released from liability.
However, since the release statement will be submitted after the audit and
negotiation process, which may take more than one fiscal year, unknown
or unsettled cost items should be minimal.
The government is not obligated to pay any additional costs billed by the
contractor after the fiscal year has been closed out and the release has
been signed, unless the release includes clauses that address these situa-
tions. The CO is responsible for ensuring that the release is inclusive and
final.
- Authorizes contractor to bill for variances between claimed and
negotiated fiscal year costs.
- Reviews the release statement provided by the contractor for
accuracy and reviews any estimated/unsettled cost items for
reasonableness.
PO I - Notifies WAMs of any debits/credits to WAs.
- Approves voucher/invoice for payment.
BSD Completing Annual Closeout
After the contractor has completed the release statement and EPA has
reviewed it, the fiscal year is closed. The CO forwards a copy of the
release statement and any applicable correspondence to the FAB for any
follow-up audit considerations.
^—>
CO J . Forwards copy of release statement and any applicable
correspondence to FAB.
4.13.2 Required, Core, and Noncore Elements of Annual Closeout
The required, core, and noncore elements of RAC guidance for annual
closeout are identified in Exhibit 4-30. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
4-90
MAY 31, 1996
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CHAPTER 4 « CONTRACT ADMINISTRATION
Required
CO review and approval of contractor claims and audit request to FAB
Core
CO negotiation of contract-specific direct cost issues with the contractor
Review and approval of the contractor's release statement
Noncore
None currently defined
51-033-136
Exhibit 4-30. Required, Core,
and Noncore Elements of
Annual Closeout
4-91
MAY 31, 1995
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CHAPTER 4 • CONTRACT ADMINISTRATION
Region-Specific Guidance on Contract
Administration
SECTION
MAY 31, 1996
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Applicable guidance to be inserted by the Region following this page.
4-94
MAY 31, 1995
-------
Response Action Contract
(RAQ Users' Guide
]folme2: Process Guide
Issuing and
Managing Work
Assignments
CHAPTER
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents 5>1 introduction 5-1
5.2 Roles and Responsibilities for Issuing and Managing Work Assignments...5-3
5.3 Allocating Site-Specific Work Assignments to Contractors 5-7
5.3.1 Factors to Consider in Allocating Work to RAC Contractors 5-9
5.3.2 Preparing the Work Assignment Allocation Matrix 5-11
5.3.3 Calculating the Average Twelve-Month Performance
Index Rating Score 5-13
5.3.4 Required, Core, and Npncore Elements of Allocating
Site-Specific Work Assignments to Contractors 5-15
5.4 Developing the Work Assignment Statement of Work 5-17
5.4.1 How to Develop the Work Assignment Statement of Work 5-19
5.4.2 Required, Core, and Noncore Elements of Developing the Work
Assignment Statement of Work 5-28
5.5 Preparing and Using the Independent Government Cost Estimate 5-29
5.5.1 How to Prepare and Use the Independent Government Cost
Estimate 5-31
5.5.2 Required, Core, and Noncore Elements in Using the Independent
Government Cost Estimate 5-35
5.6 Preparing the Work Assignment Package and Issuing the Work
Assignment 5-37
5.6.1 Preparing and Issuing the Work Assignment 5-39
5.6.2 Completing the Work Assignment Form 5-44
5.6.3 Completing the Procurement Request for Remedial Action and
Completion-Form Work Assignments 5-46
5.6.4 Required, Core, and Noncore Elements of Preparing the Work
Assignment Package and Issuing the Work Assignment 5-49
5.7 Work Plan Technical Review and Cost Evaluation 5-51
5.7.1 How to Review and Evaluate the Contractor's Work Plan 5-53
5.7.2 Required, Core, and Noncore Elements of Work Plan Review
and Evaluation 5-63
5.8 Work Assignment Funding 5-65
5.8.1 How to Fund Work Assignments Site-Specifically 5-67
5.8.2 Funding Work Assignments Under Bulk Funding 5-69
5.8.3 Required, Core, and Noncore Elements of Work Assignment
Funding 5-70
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5.9 Establishing and Changing the Expenditure Limit 5-73
5.9.1 Process for Establishing and Changing the Expenditure Limit 5-75
5.9.2 Preparing the Work Assignment Form to Change the Expenditure
Limit 5-78
5.9.3 Required, Core, and Noncpre Elements of Establishing
and Changing the Expenditure Limit 5-78
5.10 Issuing Technical Direction 5-79
5.10.1 How to Issue Work Assignment Technical Direction 5-81
5.10.2 Completing the Work Assignment Form to Issue
Technical Direction 5-83
5.10.3 Required, Core, and Noncore Elements of Issuing
Technical Direction 5-84
5.11 Amending the Work Assignment 5-85
5.11.1 How to Amend the Work Assignment 5-87
5.11.2 Changes in a Remedial Action Work Assignment 5-89
5.11.3 Preparing the Work Assignment Form to Amend the Work
Assignment 5-91
5.11.4 Required, Core, and Noncore Elements of Amending the Work
Assignment 5-92
5.12 Wage Rates and Surety Bonds for Remedial and Non-Time Critical Action
Removal Subcontracts 5-93
5.12.1 Determination of Wage Rates for Remedial and Non-Time Critical
Action Subcontracts 5-95
5.12.2 Performance and Payment Bonding of Contractors 5-98
5.12.3 Required, Core, and Noncore Elements of Wage Rates and
Surety Bonds for Remedial and Non-Time Critical Action
Subcontracts 5-100
5.13 Value Engineering 5-103
5.13.1 Value Engineering During Remedial Design 5-105
5.13.2 Value Engineering During Remedial Action 5-108
5.13.3 Required, Core, and Noncore Elements of Value Engineering 5-110
5.14 Contractor Oversight 5-113
5.14.1 Monitoring Overall Contract Performance 5-115
5.14.2 Monitoring Work Assignment Performance 5-117
5.14.3 Required, Core, and Noncore Elements of Contractor Oversight.. 5-120
5.15 Site Demobilization 5-121
5.15.1 The Site Demobilization Process 5-123
5.15.2 Required, Core, and Noncore Elements of Site Demobilization.... 5-126
MAY 31, 1905
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
5.16 Work Assignment Closeout Procedures 5-127
5.16.1 The Work Assignment Closeout Process 5-129
5.16.2 Required, Core, and Noncore Elements of Work Assignment
Closeout Procedures 5-137
5.17 Region-Specific Guidance on Issuing and Managing
Work Assignments 5-139
Exhibits
Exhibit 5-1 Work Assignment Allocation Matrix 5-12
Exhibit 5-2 Development of Composite PIRS for the Two Most Recent
Evaluation Periods 5-14
Exhibit 5-3 Required, Core, and Noncore Elements of Allocating
Site-Specific Work Assignments to Contractors 5-15
Exhibit 5-4 Process Flow for Developing a Work Assignment
Statement of Work 5-20
Exhibit 5-5 Elements of the Statement of Work 5-26
Exhibit 5-6 Guidelines for Writing the Statement of Work 5-27
Exhibit 5-7 Required, Core, and Noncore Elements of Developing
the Work Assignment Statement of Work 5-28
Exhibit 5-8 Process Flow for Preparing and Using the Independent
Government Cost Estimate 5-32
Exhibit 5-9 Required, Core, and Noncore Elements of Preparing and
Using the Independent Government Cost Estimate 5-36
Exhibit 5-10 Process Flow for Preparing and Issuing the
Work Assignment 5-39
Exhibit 5-11 EPA Form 1900-65a, Nomination and Appointment of
Contracting Officer's Representative 5-41
Exhibit 5-12 Work Assignment Number Structure 5-42
Exhibit 5-13 EPA Work Assignment Form 5-45
Exhibit 5-14 EPA Form 1900-8, Procurement Request 5-47
Exhibit 5-15 Required, Core, and Noncore Elements of Preparing
the Work Assignment Package and Issuing
the Work Assignment 5-49
Exhibit 5-16 Process Flow for Work Plan Review and Evaluation 5-54
Exhibit 5-17 Optional Form 60 (OF 60) 5-56
Exhibit 5-18 Standard Form 1411 5-57
Exhibit 5-19 Questions to Consider When Reviewing Contractor
Work Plans 5-58
Exhibit 5-20 Questions to Consider When Reviewing Contractor Cost
Estimates 5-58
Exhibit 5-21 Work Plan Evaluation Checklist 5-60
MAY 31. 1995
-------
CHAPTER S • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-22 Required, Core, and Noncore Elements of Work Plan
Review and Evaluation 5-63
Exhibit 5-23 Process Flow for Funding Work Assignments
Site-Specifically 5-68
Exhibit 5-24 Required, Core, and Noncore Elements of
Work Assignment Funding 5-71
Exhibit 5-25 Process Flow for Establishing and Changing the
Expenditure Limit 5-75
Exhibit 5-26 Required, Core, and Noncore Elements of Establishing
and Changing the Expenditure Limit 5-78
Exhibit 5-27 Process Flow for Issuing Work Assignment
Technical Direction 5-81
Exhibit 5-28 Required, Core, and Noncore Elements of Issuing
Technical Direction 5-84
Exhibit 5-29 Process Flow for Amending a Work Assignment 5-87
Exhibit 5-30 Process Flow for Issuing a Change Within a Remedial
Action Work Assignment 5-90
Exhibit 5-31 Required, Core and Noncore Elements of Amending the
Work Assignment 5-92
Exhibit 5-32 Process Flow for Determining Wage Rates for Remedial and
Non-Time-Critical Removal Action Subcontracts 5-95
Exhibit 5-33 Decision Tree for Identifying Wage Rates for Remedial and
Non-Time-Critical Removal Action Subcontracts 5-97
Exhibit 5-34 Process Flow for Performance and Payment Bonding of
Contractors 5-99
Exhibit 5-35 Required, Core, and Noncore Elements of Wage Rates
and Surety Bonds for Remedial and Non-Time-Critical
Removal Action Subcontracts 5-101
Exhibit 5-36 Process Flow for Value Engineering During Remedial
Design 5-106
Exhibit 5-37 Process Flow for Value Engineering During Remedial
Action 5-109
Exhibit 5-38 Required, Core, and Noncore Elements of Value
Engineering 5-111
Exhibit 5-39 Required, Core, and Noncore Elements of Contractor
Oversight 5-120
Exhibit WO Process Flow for Site Demobilization 5-124
Exhibit 5-41 Required, Core, and Noncore Elements of Site
Demobilization 5-126
Exhibit 5-42 Process Flow for Work Assignment Closeout 5-130
Exhibit 5-43 Work Assignment Completion Report (EPA Version) 5-131
Exhibit 5-44 Work Assignment Completion Report
(Contractor Version) 5-134
Exhibit 5-45 Required, Core, and Noncore Elements of
Work Assignment Closeout Procedures 5-137
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAQINQ WORK ASSIGNMENTS
This chapter provides guidance for the EPA Regions to use in preparing,
issuing, and administering work assignments (WAs) under Response
Action Contracts (RACs).
5.1 Introduction
The chapter proceeds sequentially, starting with WA development and
ending with WA closeout.
Detailed guidance on issuing and administering WAs is presented in this
chapter in 14 sections. The topics of these sections are:
• distributing work
• developing the WA statement of work
• preparing the independent government cost estimate for the WA
• preparing WA documentation and issuing the WA
• reviewing the contractor's work plan
• funding WAs
• establishing and changing expenditure limits
• issuing technical direction
• amending WAs
• approving wage rates and surety bonding for remedial action and non-
time-critical removal subcontracts
• value engineering
• overseeing contractor work performance
• overseeing site demobilization
• overseeing WA closeout
Most sections contain process flow diagrams depicting the key steps in
the subject process. Each process flow is accompanied by a step-by-step
explanation.
WA issuance and management is performed primarily by the designated
contract managers: Work Assignment Managers (WAMs), Project Offic-
ers (POs), and Contracting Officers (COs). These individuals function as
the core contract management team that administers and manages RACs.
The roles of the WAM, PO, and CO are highlighted within each step of
every process described in the chapter.
This chapter presents standard RAC management procedures for issuing
and managing WAs. These procedures promote national consistency in
RAC management and exemplify good contract management practices.
5-1
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Required, core, and noncore
elements of guidance are specifiei
at the end of each section of the
chapter
Required, core, and noncore elements of guidance are identified at the
end of each section in the chapter. Required elements are mandated by
the contract or by directive or law, and must be followed. Core elements
represent significant aspects of RAC management that are generally
supported or outlined by Agency implementation guidance. Noncore
elements are minor aspects of contract administration that allow for
variances in Regional procedures. While noncore elements are discre-
tionary, Regions may deviate from core elements only if they provide
documentation of the deviation to the RAC Long-Term Contracting
Strategy Program lead and EPA Headquarters agrees with the Region's
procedure. Chapter 1 contains detailed definitions of required, core, and
noncore elements of guidance.
5-2
MAY 31. 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Roles and Responsibilities for Issuing and
Managing Work Assignments
SECTION
MAY 31. 1995
-------
CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,2 Roles and Responsibilities for Issuing and Managing Work
Assignments
Responsibilities of contract management team members who issue and
manage work assignments (WA)—the Work Assignment Manager
(WAM), Project Officer (PO), and Contracting Officer (CO)—are high-
lighted in the process descriptions that appear in sections 5.3 through
5.16. Detailed matrices identifying the responsibilities of the WAM, PO,
CO, other EPA entities, and the contractor in issuing and managing WAs
appear in sections 5.3 through 5.16 of Volume 1: Reference Guide.
5-5
MAY 31, 1995
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CHAPTER S • ISSUING AND MANAGING WORK ASSIGNMENTS
Allocating Site-Specific Work Assignments
to Contractors
SECTION
MAY 31,1906
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
COI Conflict of Interest
OU Operable Unit
PIRS Performance Index Rating
Score
PO Project Officer
PS Program Support
RA Remedial Action
RAC Response Action Contract
RD Remedial Design
RI/FS Remedial Investigation/
Feasibility Study
SCAP Superfund Comprehensive
Accomplishments Plan
WA Work Assignment
WAAM Work Assignment Allocation
Matrix
WAM Work Assignment Manager
5.3
5.3.1
5.3.2
5.3.3
5.3.4
5-7
Factors to Consider in Allocating Work to RAC Contractors 5-9
Preparing the Work Assignment Allocation Matrix 5-11
Calculating the Average Twelve-Month Performance Index Rating
Score 5-13
Required, Core, and Noncore Elements of Allocating Site-Specific
Work Assignments to Contractors 5-15
Exhibits
Exhibit 5-1
Exhibit 5-2
Exhibit 5-3
Work Assignment Allocation Matrix 5-12
Development of Composite PIRS for the Two Most Recent
Evaluation Periods 5-14
Required, Core, and Noncore Elements of Allocating
Site-Specific Work Assignments to Contractors 5-15
MAY 31, 1005
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,3 Allocating Site-Specific Work Assignments to Contractors
This section describes factors that Regions consider when determining
how site-specific work assignments (WAs) will be allocated under Re-
sponse Action Contracts (RACs).
When addressing work allocation issues, the Project Officer (PO) deter-
mines the type and size of WAs to be distributed to his or her contract in
conjunction with the other RAC PO(s) and any other key program staff. If
there are multiple POs, an individual may be designated as the capacity
coordinator for the Region. Personnel involved in work allocation may
include the PC's Section Chief (who considers workload issues for the
POs) and Superfund Comprehensive Accomplishments Plan (SCAP)
Coordinators (who look at budget projections). Also included are program
staff, such as Remedial Project Managers and Site Assessment Managers.
For the purpose of this discussion, the term PO/program is used to indi-
cate the individual or groups of individuals who contribute to work
allocation decisions.
The method recommended in this section for allocating WAs is not a core
element of the users' guide (see section 5.3.2). Each Region is at liberty to
use its own method, as long as Regional procedures are documented and
included in the guide in section S.I7.
5.3.1 Factors to Consider in Allocating Work to RAC Contractors
Allocation of site-specific work occurs after mobilization is complete and
continues throughout the contract period of performance until the contract
closeout WA is issued. The last site-specific WA must be completed with
enough time remaining before the end of the contract to allow for contract
closeout.
The Region issues WAs to RAC contractors based on past contract
performance, capacity, and various site-specific factors. The Region uses
the Work Assignment Allocation Matrix (WAAM) to document the
analysis of these factors for every WA issued.
WAs distributed to RAC contractors fall into two categories.
• New WAs are projects at sites where the contractor has not worked
previously under the contract.
• Continuation WAs are issued to enable a contractor to continue its
efforts through subsequent phases of the remedial process at a site
where it has begun work.
The WAAM is used to document the factors and rationale for selecting
RAC contractors for both new and continuing WAs.
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MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The same contractor should
perform all phases of work at a
site as long as performance
is satisfactory.
The PO can reassign the WA to
another contractor if the original
contractor's performance is
unsatisfactory.
Allocating New WAs
New WAs are allocated at contract start-up and annually throughout the
contact period of performance. In annual work allocation, the PO/
program assesses the need for contractor support in the coming year using
the SCAP. Annual work allocations are encouraged because they allow
for better planning on the part of the contractor.
The WAM may recommend that the PO reassign a WA to another contrac-
tor if the contractor's performance during any semiannual performance
evaluation is deemed unsatisfactory or if other problems exist with the
current contractor. The PO and WAM discuss the advantages and disad-
vantages of changing contractors before the PO makes his or her determi-
nation. The Contracting Officer (CO) considers the possibility of contrac-
tual disputes before concurring with the contractor change and issuing the
WA.
- Assists program in determining distribution of WAs to
contractors.
Allocating Continuing Phases of Work at a Site
If work at a site is already in progress, allocating additional work is
influenced primarily by the current contractor's performance. To avoid
changing contractors and to maximize the quality and cost-effectiveness
of the remedial response, EPA prefers that remedial response contractors
provide continuous project management and execution at a site from
remedial planning through implementation (construction management), as
long as contractor performance is satisfactory. This goal is achieved by
issuing site-specific WAs to the contractor currently working at the site.
Several factors other than unsatisfactory performance, however, may
justify changing contractors at a site. These factors include contract
capacity, conflict of interest (COI) concerns, lack of specific technical
expertise, or inadequate experience.
The RAC statement of work treats each phase (remedial investigation/
feasibility study [RI/FS], remedial design [RD], remedial action [RA]) as
a separate work area and separate WAs are issued for each phase. The PO
generally allocates the WA for the next phase of work at a site to the
current contractor if the contractor's performance is rated as satisfactory
or better in the semiannual performance evaluation. The PO may allocate
the WA to another contractor if performance is deemed unsatisfactory.
The PO should consult management in instances where performance has
been unsatisfactory or where the PO or Work Assignment Manager
[WAM) wants to change contractors at a site when the current contractor
is performing satisfactorily. In either case, the WAM should provide the
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MAY 31, 1995
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
PO with documentation supporting the request to change or retain the
contractor. The PO reviews the recommendation, considers other factors,
and determines WA distribution. If the PO decides to assign the WA to the
current contractor and performance has been unsatisfactory, the PO and
WAM may meet with the contractor project manager to ensure that
performance problems are being resolved. The CO must then review and
concur with their decision to assign the work.
- Provides documentation supporting request to change/retain
contractor.
PO J - Assists program in determining distribution of WAs to
contractors.
- Completes WAAM for each WA issued.
CO) - Makes determinations regarding contractor COI.
- Reviews and concurs with decisions to assign or reassign work.
5.3.2 Preparing the Work Assignment Allocation Matrix
The WAAM, shown in Exhibit 5-1, is completed as follows.
Site Name—The most common name for the site should be used. Other
names may be added in parentheses. For site assessment work, this space
is left blank.
Site Number—The site identification number is entered (optional).
Operable Unit (OU)—If the site has more than one OU, the one associated
with this WA is identified. If the site has only one OU, this space is left
blank.
Type of Activity—The appropriate block is checked or the "other" cat-
egory is completed as appropriate.
Estimated Cost ($)—The estimated dollar value for the activity under the
WA is entered.
Estimated Level of Effort (LOE)—The estimated LOE associated with the
dollars identified in item number 5 is entered. For completion-form WAs,
this space should be left blank.
Contractors in Performance Index Rating Score (PIRS) Order—Names of
the contractors are entered in descending PIRS order starting with column
(a). This requires first calculating the average twelve-month PIRS using
the two most recent PIRS ratings, as described in section 5.3.3.
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MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-1. Work Assignment Allocation Matrix
Work Assignment Allocation Matrix site i
Sitel
Oper
Activity: Q RI/FS Q RD Q RA Q Oversight Q NTC
Q Site Assessment Q Community Relations Q Oth
Eat Cost $ EstlOF- *•
tame:
Mumher
able Unit:
)R Q Five-year Review
°r
lours
^^^^^^^^^^^^H Contractors in PIRS Order
Evaluation Factors ^|y^|
1. Average Twelve-Month PIRS Rating
2. COI Screen
3. Capacity Availability
4. Site-Specific Experience/Knowledge
5. Related Special Experience/
Knowledge
6. Disqualified
7. For Consideration
8. Recommended
/
(b)
/
(c)
/
(d)
/
Comments
9. Rationale
Prepared by: Data:
51-033-186
5-12
MAY 31. 1996
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
1. Average Twelve-Month PIRS Rating—The calculated, average twelve-
month PIRS rating for each contractor is entered on this line. (See
section 5.3.3 for instructions on calculating this rating.) The number of
unresolved, unsatisfactory ratings on existing WAs is entered in the
comments section and considered in the final selection.
2. COI Screen—Contractors should be screened for COI using current
Regional procedures. If the CO has determined that a contractor has a
conflict, "COI" should be entered. Also, any other COI concerns for
consideration in the final selection should be noted.
3. Capacity Availability— The total capacity under each contract should be
analyzed and assessed. Entries include "OK" for those contractors with
available capacity and "shortage" for those that do not have enough
present or potential capacity to perform the WA, considering continua-
tion work.
4. Site-Specific Experience/Knowledge—If one or more contractors
possesses either experience or knowledge at that particular site or related
site experience or knowledge, "yes" should be entered. Otherwise, "no"
should be entered. (A negative response does not disqualify a contractor
from further consideration.) The specific experience should be noted in
the comments section.
5. Related Special Experience/Knowledge—The special circumstance(s)
should be described in the comments section and a "yes" or "no"
entered. (A negative response does not disqualify a contractor from
further consideration.)
6. Disqualified—This line is checked for specific contractors as they are
disqualified. Disqualification steps are step 2-COI screen and step 3-
capacity availability.
7. For Consideration—The boxes for all contractors qualified for consider-
ation are checked.
8. Recommendation—The box for the contractor selected to receive the
WA is checked.
9. Rationale—The rationale for contractor selection is briefly described in
this section.
The PO signs and dates the WAAM when the form is complete.
5.3,3 Calculating the Average Twelve-Month Performance Index Rating Score
The PIRS is one of the factors used to allocate WAs to contractors. The
PIRS is a numerical score that provides a composite rating of a RAC
contractor's performance on all active WAs. The PIRS is developed during
the semiannual performance evaluation process and approved by the
Performance Evaluation Board before use in allocating work. See Chapter
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MAY 31, 1995
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-2. Development of
Composite PIRS for the Two
Most Recent Evaluation Periods
6 for a detailed description of how the PIRS is calculated during semian-
nual performance evaluations.
In order to use the PIRS as a factor in allocating work, the Region must
develop an average twelve-month PIRS for each contractor by calculating
a composite PIRS for the two most recent evaluation periods. Exhibit 5-2
depicts a hypothetical example of how to develop a composite PIRS for
the two most recent evaluation periods. The process of developing the
composite PIRS involves three separate calculations, as follows:
Technical Score. As shown in Exhibit 5-2, the technical raw score for
each evaluation period is added and then divided by the total LOE used
in both rating periods to calculate the technical score.
Stepl: Calculate Technical Score
Rating LOE
Period Use
1 30,(X
2 35,(X
Totals 65,0!
• Technical
i Raw Total
X) 21,100
)0 29,400
)0 50,500
Technical
Score
70%
84%
Technical Score:
(50,500 -*- 65,000) x 100% = 78%
Step 2: Calculate Program Support Score
Rating
Period
1
2
Totals
Pi
(28,9!
LOE
Use
15,000
20,000
35,000
Technical
Raw Total
11,500
17,400
28,900
Technical
Score
77%
87%
ogram Support Score:
X) + 35,000) x 100% = 83%
Step 3:
Component
Technical
Program
Support
Calculate Composite PIRS
Score
78%
83%
Weighted
Weighting Total
.75 58.5%
.25 20.7%
Composite PIRS for Two Most Recent
Evaluation Periods:
58.5% + 20.7% = 79%
51-033-193
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MAY 31, 1995
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Program Support (PS) Score. As shown in Exhibit 5-2, the PS raw
score for each evaluation period is added and then divided by the total
LOE used in both rating periods to calculate the PS score.
Composite PIRS. The composite PIRS is calculated using the follow-
ing algorithm:
PIRS = (technical score) x .75 + (PS score) x (.25)
Note: Since there is no LOE associated with completion-form WAs,
when calculating the PIRS for completion-form WAs (site-specific or
PS), the WA cost is used in place of the WA LOE.
5.3.4 Required, Core, and Noncore Elements of Allocating Site-Specific Work
Assignments to Contractors
The required, core, and noncore elements of RAC guidance for allocating
site-specific WAs to contractors are identified in Exhibit 5-3. Chapter 1
provides definitions of required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
None currently defined
Allocation of work to contractors based on a documented set of work allocation
considerations
Documentation of the Region's rationale for work allocation decisions
Use of the same prime contractor for all phases of work at a site as long as the
prime contractor is performing satisfactorily
Noncore
The WAM may recommend that contractors be retained or changed.
Use of WAAM shown in Exhibit 5-1. Regional documentation may vary as long
as the intent is met.
The Region may consider special Region-specific issues in determining allocation
of work.
The Region may specify its own procedures for allocating work as long as core
elements are maintained and procedures are documented and included in this
guide.
51-033-75A
Exhibit 5-3. Required, Core, and
Site-Specific Work Assignments
to Contractors
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Developing the Work Assignment
Statement of Work
SECTION
MAY 31. 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FS Feasibility Study
LOE Level of Effort
PO Project Officer
QA Quality Assurance
RA Remedial Action
RAC Response Action Contract
RD Remedial Design
Rl Remedial Investigation
SOW Statement of Work
WA Work Assignment
•WAM Work Assignment Manager
WBS Work Breakdown Structure
5.4 Developing the Work Assignment Statement of Work 5-17
5.4.1 How to Develop the Work Assignment Statement of Work 5-19
Step 1 Defining the Work Requirement 5-19
Step 2 Developing the WBS 5-20
Step 3 Defining the WA Deliverables 5-21
Step 4 Establishing the Period of Performance and Performance/
Delivery Schedule 5-23
Step 5 Determining Whether the WA Should Be Term-Form or
Completion-Form 5-24
Step 6 Writing the SOW 5-25
Step 7 Reviewing the SOW 5-27
Step 8 Approving the SOW 5-28
5.4.2 Required, Core, and Noncore Elements of Developing the Work
Assignment Statement of Work 5-28
Exhibits
Exhibit 5-4 Process Flow for Developing a Work Assignment
Statement of Work 5-20
Exhibit 5-5 Elements of the Statement of Work 5-26
Exhibit 5-6 Guidelines for Writing the Statement of Work 5-27
Exhibit 5-7 Required, Core, and Noncore Elements of Developing
the Work Assignment Statement of Work 5-28
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CHAPTER 5 * ISSUING AND MANAGING WORK ASSIGNMENTS
5,4 Developing the Work Assignment Statement of Work
This section describes how to develop the statement of work (SOW) for a
Response Action Contract (RAC) work assignment (WA), highlighting the
responsibilities of the Work Assignment Manager (WAM), Project Officer
(PO), and Contracting Officer (CO) in WA development.
5.4.1 How to Develop the Work Assignment Statement of Work
Developing the WA SOW involves the following steps: defining the work
requirement; using the work breakdown structure (WBS), as defined in
the RAC SOW; defining deliverables, deliverable acceptance criteria, and
delivery schedule; determining whether the WA should be issued as term-
or completion-form; writing the SOW; and reviewing the SOW.
The WBS is the basis for the government and the contractor cost estimates
and dictates how the contractor scopes, schedules, tracks, and reports
work. Regardless of the type of WA (term- or completion-form), the WA
SOW must be based on the contract SOW and use the same WBS, al-
though the WBS for the WA SOW may be more detailed than the con-
tract-level WBS. The SOW development process is depicted in Exhibit
5-4. A step-by-step explanation follows.
BOO Defining the Work Requirement
It is essential that the WAM clearly define the government's minimum
requirements before developing the WA SOW. Thorough planning pro-
duces a complete SOW that leads to quality contractor performance and
products. The WAM should use the following approach when planning a
WA.
Define requirements—In outline form, list the activities to be accom-
plished with the proposed WA (i.e., the government's minimum require-
ments). Be consistent with the RAC WBS when listing tasks. List the
appropriate subtasks from the contract SOW or specify others.
Required deliverables and acceptance criteria—When identifying
deliverables, the WAM should define measurable acceptance criteria that
the government will use to determine adequacy of deliverables. This can
be done by clearly and concisely describing deliverable requirements.
Outline process—Outline the specific steps required to complete the
work. Identify measurable criteria that can be used to determine if the
process is acceptable.
The WAM must clearly define
the minimum government
requirements before developing the
WA SOW.
5-19
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit W. Process Flow for
Developing a Work Assignment
Statement of Work
Defines
work
requirement
Follows WBS as
defined in RAC SOW
Defines deliverables
Establishes
performance period
and delivery schedule
Determine whether WA should
be term- or completion-form
Writes the SOW
Is SOW \ Yes
51-03MG
Determine schedule—Prepare a schedule for the WA that covers perfor-
mance and product delivery.
Identify potential unknowns and risks—Consider potential problems
and risks that the contractor might encounter during WA execution.
Defines WA requirements, outlines processes and
deliverables, determines WA schedule, and identifies
potential risks.
BSiB Developing the WBS
The WAM must use the RAC SOW WBS as the basis for developing the
WA WBS. The WBS is the basis for the government and contractor cost
estimates. The contract SOW requires the contractor to use the WBS to
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MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
scope, schedule, track, and report work. The WAM should reiterate this
requirement in the desired WA. If the same activity appears in the WBS
within a work area and as a separate work area, the Region may order the
activity as a task or WA, as appropriate.
WAs are issued by work area. The tasks listed in the contract SOW for
each work area are inclusive. The WAM must maintain order and number-
ing of tasks as they appear in the contract WBS, and cannot add additional
tasks within a work area.
If a WBS task is not used, the task title should appear in the WA with the
notation "N/A" (not applicable). The subtasks listed in the contract SOW,
however, are not inclusive. The WAM should add subtasks as needed to
fully define the requirement. A subtask must fall within the scope of its
parent task.
- Uses the RAC SOW WBS to develop the WBS for a WA,
adding subtasks as needed.
EBB Defining the WA Deliverable
RAC reporting requirements are specified in contract Attachment B,
"Reports of Work." Detailed WA information is reported by the contrac-
tor in the technical and financial progress reports required under the
contract. The WAM should review these requirements and determine if
additional progress reporting requirements are needed for the WA. For
example, a Region may want to specify reporting at the subtask level. The
contract SOW states under Section II that the contractor shall be required
to track and report activities and costs down to the subtask level if speci-
fied in individual WAs. Some Regions have expressed interest in tracking
to two or more subtask levels. It should be noted that each extra level of
reporting increases WA costs.
The contract Reports of Work, Section 5.0—Project Reports, states that
the contractor shall prepare and submit reports of WA tasks as specified in
individual WAs. The WAM must include specific requirements for all
project reports in the WA. Project reports include any written deliverable
that is required in the WA. Deliverables identified in the RAC SOW
include the following:
• conflict-of-interest disclosure
• meeting minutes
• equipment status reports
• community relations plan
• health and safety plan
5-21
The WAM should add subtasks to
the WA SOW as needed to fully
define the WA requirement.
The contractor is required to report
only down to the task level unless
the WAM requires subtask reporting
in the WA.
MAY 31, 1995
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RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
The WA must list and describe
every required WA deliverable and
designate the recipients), format,
and schedule for delivery, and
the number of copies.
The WA must specify measurable
acceptance criteria that the
government will use to determine
the adequacy of the deliverable.
• laboratory quality assurance (QA) program
» field sampling plan
• analytical data reports
• data validation and usability reports
• human health and ecological risk assessment
• data quality objectives
• site management plan
• sampling and analysis plan
• construction management plan
• QA project plan
• remedial investigation (RI) report
• feasibility study (FS) report
• RI/FS report
• FS addendum
• basis of design reports
• remedial designs (RDs) (preliminary, intermediate, prefinal, and final)
• construction management plan
• cleanup status report
• engineering evaluation/cost analysis report
• technical memoranda
• field logbooks
• administrative record index
• remedial action (RA) closeout report
• WA completion report
The deliverables listed above and others may be required under the RAC
WAs. The WA must list and describe every required WA deliverable. For
written deliverables, the WAM should indicate whether the contractor is
required to submit one or more drafts for EPA review and approval before
submission of the final document. The WAM should indicate to whom the
contractor should submit the deliverable (usually the WAM) and the
number of copies to be submitted. If the deliverable is required in a
format other than hard copy, specifications for electronic or other
format(s) must be included in the WA.
The WAM must provide product specifications for deliverables provided
under completion-form WAs (see step 5). Product specifications define
physical and performance characteristics of the product. The WAM should
include measurable acceptance criteria that describe how the government
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MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
will evaluate the product and determine its acceptability for both term-
and completion-form WAs. The WAM can specify, for example, that a
report must conform to specific EPA guidance or directives.
- Reviews RAC progress reporting requirements and determines
if additional reports are needed for a WA.
- Lists and describes all WA deliverables, indicating format,
recipient, and number of copies.
- Provides product specifications for deliverables of completion-
form WAs.
- Specifies government acceptance criteria for deliverables.
Establishing the Period of Performance and Performance/Delivery
Schedule
The WAM creates a timeline for the WA to ensure that deliverables and
key performance activities are appropriately scheduled. In this way, the
WA can be completed by the end of the WA period of performance and
any task issues can be identified early when they can be remedied most
effectively. There may be historical information from remedial and
Alternative Remedial Contracting Strategy contracts that the WAM can
use in determining an appropriate period of performance for a particular
type of WA. The WAM also may have access to other information that
dictates the schedule for the project. The WA timeline is a planning tool
for the WAM's use in developing the WA delivery schedule. The WAM
may include the timeline in the WA.
The WAM compiles the list of deliverables according to their delivery
schedule during the WA period and identifies critical path activities to be
completed by certain deadlines to complete the WA on time. Cases where
the schedule relies on other factors and where there are dependent rela-
tionships between tasks should be noted. The WAM then ensures that all
deliverables and milestones are entered on the WA timeline.
The WAM must allow sufficient time to review and provide feedback on
interim contractor deliverables. The WAM indicates a time limit for
Regional work product review and feedback to the contractor in the
performance/delivery schedule. The WAM also must state that the final
delivery schedule is dependent on EPA review providing feedback to the
contractor within the stated amount of time.
The performance/delivery schedule must:
• list and briefly describe all deliverables
• identify key tasks/subtasks whose completion will be tracked
• identify due dates for all interim (draft) and final deliverables
5-23
The WAM creates a timeline
showing all performance
milestones and deliverables.
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Use a term-form WA if the
contractor is supplying LOE
toward accomplishing defined
goals or if effort requiring an end
product cannot be priced
accurately.
Use a completion-form WA if the
purpose of the effort is to produce
one or more end products and the
effort can be accurately priced.
specify the required completion dates for key tasks
specify the number of copies and designees for deliverables
indicate the timeframe for EPA feedback to contractor on interim
deliverables
- Creates timeline for WA.
- Indicates time limit for EPA review of products.
- Prepares performance/delivery schedule for WA.
Determining Whether the WA Should Be Term-Form or Completion-Form
The WAM meets with the PO and CO to discuss the WA requirements and
determine whether the SOW should be issued as a term- or completion-
form WA. The following two questions can help determine which type of
WA SOW to prepare:
Does the WA require delivery of one or more end products?
Is the SOW sufficiently detailed to accurately price the WA?
Term-form WAs should be used where the contractor provides a specified
level of effort (LOE) toward accomplishing a defined goal and in WAs
involving end products where the effort cannot be priced with accuracy.
Term-form WAs can cross over into the option period of the contract, but
any unused hours or dollars under the base period cannot be used in the
option period; option period hours and dollars must be used during the
option period.
Completion-form WAs should be used for site-specific work where the
contractor will deliver end product(s) and where the effort can be priced
accurately. Completion-form WAs are advantageous because the risk of
performance is shifted to the contractor by limiting the fee (i.e., if there is
a cost overrun, the contractor will not get an additional fee). According to
RAC clause WORK ASSIGNMENTS (COMPLETION-FORM SEG-
MENT) in contract Section B, completion-form WAs can cross over into
the option period of the contract and base period dollars associated with
the completion-form WA can be used in the option period to complete a
WA. However, if the WA ceiling of a carried-over completion-form WA is
increased in the option period, option-period dollars must be used for the
ceiling increase.
Helps determine whether the WA should be term- or
completion-form.
Assist the WAM in determining whether the WA should be
term- or completion-form.
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
BEE Writing the SOW
The WAM defines the scope of work and writes the SOW according to the
WBS developed in step 2, using a functional or design approach, as
appropriate to the requirement. The SOW describes all aspects of the WA
work requirement. The WAM begins the writing process by developing a
first draft describing the requirements and then refining the language and
format. The Regions may choose to reorganize the material (e.g., present
the information in a different order than shown in the exhibit). All ele-
ments listed in Exhibit 5-5, however, should appear in the SOW.
If a design SOW is used, where the government specifies detailed design
specifications, the contractor is not liable for following faulty government
instructions.
Generally, the WAM has access to previous SOWs for the same type of
project. EPA Headquarters' Cost Estimators' Work Group has developed
model SOWs for the RI/FS, RDs, and RAs that will be useful in develop-
ing RAC WA SOWs. These model SOWs are provided in Appendix G.
Exhibit 5-6 provides guidelines for the WAM to use in writing the SOW.
Although the completion-form WA focuses on delivery of an end product
and the term-form WA requires provision of a specific number of hours of
effort toward an end goal, the SOWs for completion- and term-form WAs
are quite similar. SOWs for both forms:
• contain a detailed delivery schedule and descriptions of deliverables
• specify acceptance criteria for deliverables «
• specify tasks to be performed, in accordance with the contract SOW
WBS
In fact, the only contextual difference between the SOWs in the two WA
forms may be a more comprehensive and detailed description of the end
product deliverables and acceptance criteria in completion-form SOWs.
One of the following statements should be included in the SOW to
identify the SOW as term form or completion form.
Term-Form WA
This is a term-form WA that requires the contractor to devote a specified
LOE in the performance of defined tasks and submission of specified
deliverables. If all tasks are not accomplished within the WA period of
performance or level of effort, EPA may choose to amend the WA to
extend the performance period or increase the LOE so that the contractor
can accomplish the work.
5-25
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
MAY 31, 1995
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RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-5. Elements of the Statement of Work
A. BACKGROUND INFORMATION
• contextual information that helps the contractor understand the nature and origin of the requirement
* general description of the WA requirement
• how the requirement evolved
• relationship of the requirement to other projects
• necessary background information on the site
B. SCOPE AND OBJECTIVES
- statement of WA scope
- relationship of WA scope to overall contract scope
• general and specific WA objectives
• WBS
C. CONTRACTOR REQUIREMENTS
• period of WA performance
* WBS identifying the contract work area and tasks and subtasks in the work area
• descriptions of all tasks and subtasks to be performed by the contractor (performance specifications)
• direction on specific methodology to be used
• mandatory qualifications of contractor staff (for specific task types)
• applicable specifications, regulations, and standards (to be referenced or attached)
• technical data requirements, including intended use for the data by the project engineer
• quality control requirements, including quality standards and data quality objectives
D. PERFORMANCE/DELIVERY REQUIREMENTS
• descriptive title of all required reports and deliverables
• descriptive title of key tasks/performance milestones whose completion will be tracked
• due dates for all interim (draft) and final reports and deliverables
• required completion dates for key tasks/performance milestones
- number of copies and designee for reports and deliverables
• timeframe for EPA feedback to contractor on interim deliverables
• requirement to track and report WA progress at the subtask level (if required)
• measurable criteria that the government uses in determining performance and product acceptability
E. GOVERNMENT RESPONSIBILITIES
• identification of specialized equipment needs and government's ability to provide site-specific equipment
• government management control points in the sequence of tasks where government action for review,
approval, acceptance, or rejection are introduced
• elaboration on government responsibility for reviewing and providing feedback or approving WA deliverables
F. PROJECT MANAGEMENT AND CONTROL REQUIREMENTS
• management and control systems, either specified by the government or developed by the contractor as part
of the technical requirements
* requirement to maintain WA filing system parallel to EPA's
G. RESOURCE REQUIREMENTS
• personnel requirements
• anticipated contractor travel requirements and restrictions
H. ATTACHMENTS
• all relevant documents referenced in the SOW
• specifications and standards the contractor must follow, if not commonly available or already in contractor
possession
51-033-72B
5-26
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
1. Use clear and precise descriptions of activities and products. Elaborate on task
and subtask descriptions in the contract SOW as needed.
2. Describe requirements in sufficient detail to assure clarity for both legal and
practical reasons.
3. Focus on the task objective; avoid directing the contractor how to perform
the task.
4. Avoid ambiguity. All contractor and government obligations must be spelled out
as precisely as possible.
5. Use the active voice (e.g., "The contractor shall submit three copies of the Rl
report.") rather than passive (e.g., 'Three copies of the Rl report shall be submitted
by the contractor.")
6. Use "the contractor shall" to specify required contractor actions. "Shall" is a
stronger legal term than "must" or "should."
7. Write concise specifications for deliverables, including physical and performance
parameters, as appropriate.
8. Write clear and complete inspection and acceptance criteria. Specify measurable
(objective) criteria.
9. Be aware that any provisions that remove control from the contractor, even
temporarily, may result in relieving the contractor of responsibility. Indicate a
time limit for Regional review of contractor work products and feedback to the
contractor.
51-033-73A
Completion-Form WA
This a completion-form WA that requires the contractor to perform
specified tasks resulting in the delivery of one or more end products. The
contractor must complete and deliver the specified end product(s) within
the negotiated estimated WA cost as a condition for payment of the entire
base fee. In accordance with contract clause B.3, WORK ASSIGN-
MENTS (COMPLETION FORM SEGMENT), in the event that work
cannot be completed within the estimated WA cost, EPA may amend the
WA to require more effort without increase in any fees (base and perfor-
mance/award), provided EPA increases the estimated cost for the WA.
<(WAO - Writes SOW using functional or design approach as appro-
^^ priate.
EHJH Reviewing the SOW
The WA SOW is reviewed as part of the WA package review process that
is described in section 5.6. The PO reviews the WA SOW for clarity and
conformance with the contract SOW. The PO verifies that the WAM has
included end-product descriptions for completion-form WAs and accep-
tance criteria for products/deliverables in both term- and completion-form
WAs. The PO meets with the WAM as necessary to clarify SOW points.
5-27
Exhibits*. Guidelines for
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-7, Required, Core, and
Noncore Elements of
Developing the Work
Assignment Statement of Work
Once the PO concurs with the SOW, the PO forwards the SOW to the CO.
- Reviews SOW for clarity and conformance with contract SOW.
- Verifies inclusion of product specifications for completion-form
WAs and acceptance criteria for all WAs.
- Meets with WAM to clarify SOW language.
- Forwards SOW to the CO.
HI Approving the SOW
The CO reviews and approves the SOW before issuing the WA. The WA
review and approval process is described in section 5.6.
(CO) - Reviews and approves SOW before issuing WA.
5.4.2 Required, Core, and Noncore Elements of Developing the Work
Assignment Statement of Work
The required, core, and noncore elements of RAC guidance for develop-
ing the WA SOW are identified in Exhibit 5-7. Chapter 1 provides
definitions of the required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
Development of WA SOWs based on and within the scope of the contract SOW
Development of the WA SOW WBS based on the contract SOW WBS
Inclusion of a delivery schedule in the WA SOW
Specification of period of performance in the WA SOW
CO approval of WA SOW before issuance
| Core
End product descriptions for completion-form WAs and acceptance criteria for
both term- and completion-form WAs
Determination of whether to use a term- or completion-form WA
Inclusion of all elements stipulated in Exhibit 5-3 in the WA SOW
Noncore
Regions may add subtasks within contract-specified tasks as long as the subtasks
fall within the scope of the task.
Regions may require the contractor to report to the subtask level for a particular
51-033-1588
5-28
MAY 31.1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Preparing and Using the Independent
Government Cost Estimate
SECTION
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
Q&A General and Administrative
IGCE Independent Government
Cost Estimate
PO Project Officer
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WBS Work Breakdown Structure
WP Work Plan
5.5 Preparing and Using the Independent Government Cost Estimate 5-29
5.5.1 How to Prepare and Use the Independent Government Cost
Estimate 5-31
Step 1 Developing the WA SOW 5-31
Step 2 Identifying Applicable Cost Elements for Tasks 5-33
Step 3 Identifying Sources of Cost Information 5-33
Step 4 Selecting the Cost-Estimating Methodology 5-34
Step 5 Estimating Costs and Preparing the IGCE 5-34
Step 6 Reviewing the IGCE 5-35
Step 7 Using the IGCE to Review and Approve Contractor's WP 5-35
5.5.2 Required, Core, and Noncore Elements of Preparing and Using the
Independent Government Cost Estimate 5-35
Exhibits
Exhibit 5-8
Exhibit 5-9
Process Flow for Preparing and Using the Independent
Government Cost Estimate [[[ 5-32
Required, Core, and Noncore Elements of Preparing and
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CHAPTER 5 4 ISSUING AND MANAGING WORK ASSIGNMENTS
5.5 Preparing and Using the Independent Government Cost
Estimate
This section describes the process of developing and using independent
government cost estimates (IGCEs) for Response Action Contract (RAC)
work assignments (WAs). The roles of the Work Assignment Manager
(WAM), Project Officer (PO), and Contracting Officer (CO) are high-
lighted.
5.5.1 How to Prepare and Use the Independent Government Cost Estimate
An IGCE is the government's estimate of what it should cost to accom-
plish the WA statement of work (SOW). EPA is required to develop an
IGCE for every WA or WA amendment estimated to exceed $25,000. The
WAM is responsible for ensuring that the IGCE is prepared. In some
Regions, the WAM prepares the IGCE. In others, an IGCE coordinator or
cost estimator may prepare or assist the WAM in preparing the IGCE.
Developing an IGCE involves defining the WA scope and work break?
down structure (WBS), identifying cost elements, consulting available
cost information, estimating costs, and obtaining IGCE acceptance. Once
completed, the IGCE is used to evaluate the contractor's estimated work
plan (WP) costs. Exhibit 5-8 depicts the IGCE process. A step-by-step
explanation of the process follows.
IB Developing the WA SOW
Developing a WA SOW involves the following steps: defining the work
requirements; developing the WBS; defining deliverables and delivery
schedules (including acceptance criteria); determining whether the WA
should be issued as term- or completion-form; and writing and reviewing
the SOW. (See section 5.4 for detailed guidance on preparing the SOW.)
The RAC SOW contains a comprehensive WBS of work areas and tasks.
The Region must follow this WBS when developing the WA SOW and
WBS. The WAM should specify subtasks within contract SOW tasks.
Each task description in the RAC SOW contains a suggested but non-
inclusive list of subtasks.
Accurate cost estimates result from a clearly and accurately defined scope
of work and WBS. The WAM must describe the requirements of tasks and
subtasks in sufficient detail to support the cost estimate.
The WAM identifies deliverables and delivery schedules in the SOW,
including data requirements. Data include documents, drawings, reports,
manuals, revisions, technical orders, or other submissions identified in the
WA and required as deliverables. Data may be in print or electronic form
and are often complex, expensive deliverables. Data costs are the costs for
5-31
The WBS is the key to structuring,
pricing, and controlling a WA.
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit W, Process Flow for
Preparing and Using the
Independent Government Cost
Estimate
/De\
WA
\and
~^S
rebps
WBS
SOW
'
IGCE
Coordinator
)|
|
I
Identifies cost elements
applicable to tasks
1
|
Identifies sources of
cost information
i
i
!
I
Selects cost-estimating
methodologies and
techniques to prepare
IGCE
I
Performs cost estimate
and develops IGCE
Submits IGC
for PO and C
review
.
E
O
Compares
IGCEtoWP
cost estimate
ID
Reviews IGCE
for technical
completeness and
reasonableness
Compares
* IGCEtoWP
cost estimate
©
Reviews IGCE
» for cost
correctness
(O.H. rates, etc.)
Compares
IGCEtoWP
cost estimate
51-Q3M3E
the contractor to develop, prepare, and deliver data to the government.
The WAM must understand the WA data requirements and include data
item descriptions in the WA SOW which define the standard data format
and instruct the contractor how to tailor the data to meet specific govern-
ment needs. Data items are identified as deliverables on the SOW delivery
schedule.
5-32
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
- Develops WA WBS and SOW.
Identifying Applicable Cost Elements for Tasks
Costs for each task must be broken down into individual cost elements. In
this step, the cost estimator (the WAM, IGCE coordinator, or other
designated person) determines what cost elements apply to each task. The
greater the level of detail, the more accurate the final cost estimate. The
basic cost element categories are:
• labor
• overhead
• travel/per diem
• fee [base/performance (award)]
• subcontracting pool
- analytical services
• equipment
• other direct costs
• general and administrative (G&A)
The rates for labor, overhead, G&A, and fees are specified in the contract.
(WAM/ - If functioning as cost estimator, identifies cost elements
^•^ applicable to WA tasks.
EflUB Identifying Sources of Cost Information
The cost estimator determines which sources of information to use to
compute the final cost estimate. In the search for historical cost informa-
tion, the estimator should determine if the task is new or has been per-
formed previously. If the WBS includes previously performed tasks,
historical cost information should exist and should be incorporated into
the cost estimate as necessary .
• If the task is new, a cost estimate must be prepared.
• If the task is a continuation of a service for which there is an existing
cost database and costs in the database are incorporated into other
tasks, it may be possible to extract cost information from the existing
database.
• If the task is a continuation of a service for which there is an existing
database and prior costs are separated for the task being estimated, data
from the actual cost database or the previous estimate may be used.
5-33
Costs for each task must be broken
down into separate cost elements.
MAY 31. 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
The cost estimator uses two
methods to estimate costs:
engineering ("bottom-up") and
parametric ("top-down").
The SOW cost estimate is based on
cost element estimations for
each task.
There will be circumstances when the task to be estimated cannot be
clearly quantified or is so new that no historical information can be drawn
upon. If there is no historical cost basis for the WA or task, an estimate
must be made on some other basis.
\WA1O - If functioning as cost estimator, identifies sources of cost
information.
BEZI Selecting the Cost-Estimating Methodology
The cost estimator uses two primary methods to estimate costs: the
engineering method (a "bottom-up" method) and the parametric method
(a "top-down" method). These methods can be enhanced by use of
extrapolation and analogy techniques. Unit-cost estimates can be used in
some cases. A combination of cost-estimating approaches and techniques
is often more effective than a single approach.
Regardless of the method(s) used, the cost estimator should apply appro-
priate rationale for the cost estimates and support them with data. Com-
pleting cost estimate sheets for each task and subtask identified in the
WBS is an effective cost-data collection and cost documentation method.
This method can be used along with any of the recommended cost-
estimating methodologies to document cost rationale. (See the EPA Guide
for Preparing Independent Government Cost Estimates, DCN EPA-202-B-
94-003).
JVAMy - If functioning as cost estimator, selects cost-estimating
methodology(ies) and technique(s) to be used in preparing the
IGCE.
fllZ] Estimating Costs and Preparing the IGCE
The cost estimator develops the IGCE after all tasks and cost elements are
identified and a cost-estimating methodology or combination of method-
ologies and techniques is selected. Costs are estimated for each cost
element of every task defined in the WBS to arrive at a total SOW cost
estimate. The rationale and assumptions behind estimated cost items must
be documented. The cost estimator breaks each task into its component
ubtasks and considers the materials required to complete each task. The
estimator estimates the cost of performing each task and the cost of the
needed materials.
- If functioning as cost estimator, performs cost estimate and
develops IGCE.
5-34
MAY 31, 1995
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CHAPTER 6 • ISSUING AND MANAGING WORK ASSIGNMENTS
BED Reviewing the IGCE
The IGCE is submitted to the PO and CO for review as part of the WA
package (see section S.6). Assumptions and background information
should be included with the IGCE. The WA cannot be approved until the
IGCE is complete and has been reviewed by the PO and CO. The PO
reviews the IGCE for technical completeness and reasonableness and the
CO reviews the IGCE for cost correctness.
- Submits IGCE for PO and CO review.
- Reviews IGCE for technical completeness and reasonableness.
PO
' ^
CO J - Reviews IGCE for cost correctness.
(HUB Using the IGCE to Review and Approve Contractor's WP
The WAM, PO, and CO compare the IGCE with the contractor WP cost
estimate. Differences are documented in a memorandum, and the reasons
for them are noted for further evaluation of the contractor cost estimate.
Section 5.1 describes the cost evaluation process.
- Compares IGCE with the contractor cost estimate and
documents the reason for any differences.
- Review contractor WP cost estimate and differences from the
IGCE.
5.5.2
the Independent Government Cost Estimate
The required, core, and noncore elements of RAC guidance for preparing
and using the IGCE are identified in Exhibit 5-9. Chapter 1 provides
definitions of required, core, and noncore elements and explains Regional
responsibilities for incorporating each element.
In all cases, the IGCE must be
completed prior to issuing the WA.
6-35
MAY 31. 1995
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-9. Required, Core, and
Noncore Elements of Preparing
Government Cost Estimate
Required
Preparation of an IGCE for any contract action that exceeds $25,000
Compliance with Office of Solid Waste and Emergency Response Directive
9202.1-12 regarding roles and responsibilities for preparing IGCEs
Core
Adherence to the EPA Guide for Preparing Independent Government Cost
Estimates
Preparation of the WA SOW and WBS prior to preparation of the IGCE
Cost breakdown by WA task and subtask
Cost breakdown by cost elements for each WA task
Noncore
The Region may select and use one or a combination of cost-estimating methods
for preparing a particular IGCE.
The Region may elect to use software models in preparing IGCEs.
51-033-1018
6-36
MAY 31, 1005
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CHAPTER 6 » ISSUING AND MANAGING WORK ASSIGNMENTS
Preparing the Work Assignment Package
and Issuing the Work Assignment
SECTION
MAY 31, 1905
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
IGCE Independent Government
Cost Estimate
LOE Level of Effort
PO Project Officer
PR Procurement Request
PS Program Support
RA Remedial Action
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAAM Work Assignment
Allocation Matrix
WAF Work Assignment Form
WAM Work Assignment
Manager
WAP Work Assignment
Package
WBS Work Breakdown
Structure
WP Work Plan
5.6
Assignment 5-37
5.6.1 Preparing and Issuing the Work Assignment 5-39
Step 1 Preparing the WAP 5-40
Step 2 PO Review of the WAP 5-40
Step 3 Approving the WAP 5-43
Step 4 Issuing the WA 5-43
Step 5 Contractor Receipt of WA 5-44
5.6.2 Completing the Work Assignment Form 5-44
5.6.3 Completing the Procurement Request for Remedial Action and
Completion-Form Work Assignments 5-46
5.6.4 Required, Core, and Noncore Elements of Preparing the Work
Assignment Package and Issuing the Work Assignment 5-49
Exhibits
Exhibit 5-10 Process Flow for Preparing and Issuing the
Work Assignment 5-39
Exhibit 5-11 EPA Form 1900-65A, Nomination and Appointment
of Contracting Officer's Representative 5-41
Exhibit 5-12 Work Assignment Number Structure 5-42
Exhibit 5-13 EPA Work Assignment Form 5-45
Exhibit 5-14 EPA Form 1900-8, Procurement Request 5-47
Exhibit 5-15 Required, Core, and Noncore Elements of Preparing
the Work Assignment Package and Issuing the
Work Assignment 5-49
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,6 Preparing the Work Assignment Package and Issuing the
Work Assignment
This section describes how to prepare and issue a Response Action
Contract (RAC) work assignment (WA), and highlights the roles of the
Work Assignment Manager (WAM), Project Officer (PO), and Contract-
ing Officer (CO) in this process.
5.6.1 Preparing and Issuing the Work Assignment
Exhibit 5-10 shows the steps involved in preparing and issuing the WA
and indicates which individuals are involved. A step-by-step explanation
of the process follows.
Acknowledges
acceptance of
WA by signing
WAF
Within 5 days
of WA receipt
51-03MF
Exhibit 5-10. Process Flow for
Assignment
5-39
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The PO selects the contractor and
adds the contractor selection
notice to the WAP.
BSD Preparing the WAP
The WAM prepares the following documents/forms for the work assign-
ment package (WAP):
• Work Assignment Form (WAF)—The WAF indicates what tasks or
activities the contractor is authorized to undertake prior to work plan
(WP) approval. Instructions for completing the WAF are provided in
section 5.6.2.
• Statement of Work (SOW)—Guidance for preparing the WA SOW is
contained in section 5.4.
• Independent Government Cost Estimate (IGCE)—See section 5.5
for information on preparing the IGCE.
• Nomination and Appointment of Contracting Officer's Representa-
tive (COR) Form 1900-65a—Form 1900-65a is included as Exhibit
5-11. This form designates the WAM for the WA and is signed by the
WAM (nominee), Division Director, and CO.
• Procurement Request (PR), EPA Form 1900-8— A PR is completed
for remedial actions (RAs) and other WAs that will be individually
funded. Instructions for completing the PR form are provided in
section 5.6.3.
Depending on Regional procedures, the PO may assist the WAM by
preparing certain WAP documentation. The WAM forwards the WAP to
the PO for review and concurrence.
- Prepares designated WAP documentation and forwards it to PO
for review and concurrence.
PO I - May assist WAM in preparing WAP documentation.
EH PO Review of the WAP
The PO reviews the overall WAP for completeness, accuracy, and compli-
ance with contract SOW requirements. Specifically, the PO (1) reviews
the SOW to ensure that tasks fall within the contract scope; (2) reviews
the WAF and PR, if included, to ensure that they have been properly
completed and are within contract funding and level-of-effort (LOE)
ceilings; and (3) reviews the IGCE to identify any obvious cost anomalies.
The PO also ensures that all documents have the appropriate Regional
signature(s). The PO consults with the WAM to resolve any questions or
discrepancies.
After reviewing the WAP, the PO or other program personnel decides
which prime contractor will receive the WA based on several evaluation
factors including performance rating and conflict of interest. The PO adds
5-40
MAY 31, 1095
-------
CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-11. EPA Form 190M5A, Nomination and Appointment of Contracting Officer's Representative
am •~*^ak United States
tiSrERr^ Environmental Protection Agency
Washington. DC 2O460
NOMINATION AND APPOINTMENT OF CONTRACTING OFFICER'S REPRESENTATIVE (COR)
1 a. Name of Nominee:
c. Mailing Address Imdud* nail eedfl •
2. The nomination is for:
1 1 Project Officer
[| Deputy Project Officer
Q Regional Project Officer
1 1 Zone Project Officer
11 Delivery Order Project Officer
1 1 Work Assignment Manager
1 1 Alter""*
Q Other
4 Briefly descnbe the nominee's contract management
b Tide. Senas, and Grade1
d. Telephone-
3. Training completed.
Date Completed
a. Acquisition Training for Project Officers
(Formerly The Basic Project Officers Course)
(All Protect Officers must complete.)
b. Contract Admrnstranon course
(All CORe must complete )
c Recertification Couree
(All CORe must complete every three years.)
experience and nominee's technical expertise in the subject matter of the contract.:
5. The nomination is for contract number
B 1 understand that COR duties are not redelelgable In the event that 1 am unable to continue performing my COR duties. 1 will contact the
Contracting Officer immediately.
Signature of Nominee
Data
7. 1 certify that:
a. The nominee's contract management duties will be incorporated in his/her position descnption end performance standards.
b The nominee's Standard Form 450. Confidential Financial Disclosure Report, will be file with the cognizant Deputy Ethics Official
c. The nominee's contract management workload will stay within his/her ability to perform satisfactory.
d If the nominee performs his/her contract management functions unsatisfactory. 1 will notify ths Contracting Officer immediately
Signature of the Nominating Official
Name/Title (Pnnt or lyptl
Date
Telephone
MM Date
EPA Form 1 90O-6BA (Rev. 7-94) Electronic and Paper versions acceptable wiw. Cwy • OHIO* CMKI n. COPY Y<*»» copy • Ongram • COT
Previous editions are obeolate. o-^ , «___ .. „. ..
• US.OPa ISS4 388-420/00267
5-41
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-12. Woik Assignment
Number Structure
the Work Assignment Allocation Matrix (WAAM) (Exhibit 5-1) to the
WAP before forwarding it to the CO. The WAAM identifies the selected
prime contractor and provides the rationale for the selection.
The PO assigns the WA number following the structure shown in Exhibit
5-12 and records it on the WAR (In some Regions, the CO assigns the WA
number.) Under RACs, WAs are issued with an eleven-digit number.
Together, the eleven digits contain the numeric designation, work area and
activity codes, and Regional and site identifiers. The PO signs the WAF
and forwards it to the CO.
The numeric designation of a WA consists of several characters. For site-
specific WAs, the characters are numeric; for program support (PS) WAs,
the numeric designation includes an alpha character as the first digit
indicating the type of PSWA (i.e., the letter "A" is used for the Mobiliza-
tion WA, "B" is for Non-Site-Specific Equipment WAs, "C" for Ongoing
Administrative Support WAs, "D" for Ongoing Technical Support WAs,
and "E" for the Contract Closeout WA).
Under this system, the first three digits of the WA number for the Mobili-
zation WA would be "A01." The first three digits of the WA number for
the first and second Non-Site-Specific Equipment WAs would be "B01"
and "B02," respectively. Site-Specific WA numbers, which do not contain
an alpha character in the numeric designation, would begin with 001, and
the second would begin with 002, etc.
- Provides input to PO on WA issues.
1 • R
I L
6 A 8
Numeric designation
of work assignment
Activity code
(fromWBS;tobe
expanded to two
digits in FY96)
Site identifier
(first and
Work area code
(from work break-
down structure
[WBS])
Regional
identifier
Example of a WA issued in Re
study at the site designated A8.
51-033-175C
6-42
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
- Reviews WAP for completeness and accuracy.
- Discusses WA issues with WAM.
- Ensures that all documents have the appropriate Regional
signature(s).
- May assign WA number.
- Chooses a prime contractor to receive WA.
- Signs WAF and sends WAP to the CO.
- May assign WA number.
EBB Approving the WAP
The CO reviews the WAP to ensure compliance with the specific terms
and conditions of the contract. The CO (1) reviews the SOW to ensure
that tasks fall within the contract scope, (2) reviews the WAF and the PR,
if included, to ensure that they are within contract funding and LOE
ceilings, and (3) reviews the IGCE for obvious cost anomalies. The CO
consults the PO to resolve any questions or discrepancies.
The CO signs the WAF to indicate approval of the WAP. If the CO does
not approve the WAP, the CO returns the WAP to the PO to resolve
outstanding issues.
If the WA will be individually funded, the CO also processes the PR and
prepares a contract funding modification incorporating the necessary
changes. The CO forwards the original signed WAF, SOW, and contract
modification to the contractor.
- Provides input to CO to resolve WA issues.
- Reviews and approves WAP.
- Consults with PO to resolve WA issues.
- Signs WAF to indicate WA approval.
- Processes PR, if needed, and issues associated contract
modifications.
Note: The Region may combine steps 2 and 3 into one and have the PO
and CO perform concurrent, rather than sequential, reviews to streamline
the process.
BEE Issuing the WA
The CO issues the approved WA to the contractor.
(GO ) - Issues approved WA to the contractor.
5-43
The CO reviews the WAP to ensure
compliance with the
contract.
MAY 31, 1895
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
The WAM, PO. and CO jointly
complete the WAF.
SB Contractor Receipt of WA
The contractor acknowledges WA receipt by signing the WAF and return-
ing the original to the CO. The contractor is required to acknowledge
receipt of the WA within five days.
5,6.2 Completing the Work Assignment Form
The WAM, PO, and CO complete the WAF jointly as described in this
section. The specific WAF responsibilities of the WAM, PO, and CO vary
by Region. The WAF is shown in Exhibit 5-13.
Item 1. WA Information — The following WA information is entered:
• project name
• contractor name
• activity
• EPA contract number
• revision number
• date
• WA number
Item 2. Description of Action — The box marked "New Work Assign-
ment" is checked.
Item 3. Budget Information — In the first box, the WA is designated as
term- or completion-form. If the WA is funded site-specifically, the
amount of funding must be recorded. For new WAs, there would be no
"previous total." For WAs funded out of the contract's bulk-spending
categories, the funding category, activity code, and site code (site/spill
identifier) for the WA must be indicated. The LOE and total dollar amount
EPA is authorizing the contractor to spend are entered in the "Expenditure
Limit" column. It is recommended that the initial amount be limited to the
amount estimated for the contractor to complete the necessary "start-up"
activities. Start-up activities may include visiting the site, preparing staff
and equipment, participating in scoping meetings, and developing the WP.
The amount needed to accomplish these tasks can be estimated using the
IGCE. If the contractor will be limited to specific start-up tasks, they must
be defined in the comments portion (Item 5) of the WAF.
The amount budgeted in the "Approved Work Plan Budget" column is
"zero," because the WP has not been approved at the time the WA is
issued.
5-44
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-13. EPA Woik Assignment Form
EPA WORK ASSIGNMENT FORM (WAT) FOR RAC
1 WORK ASSIGNMENT (WA> INFORMATION
Protect Name
Acnvirv
Dale
Conmctor
EPA Contract No
WA No
Revision No
Contractor Control No Modification No
(Contracting Officer Use Only)
2 DESCRIPTION OF ACTION
NewWA
(need WP for the WA)
Attach SOW
including schedule
Designate WAM
WA Amendment
(need revised WP and/or
cost estimate)
Change in LOE or
scope by task
Add addioona] (asks or
funds for increased
activity
Partial WP Approval Technical Direction
Memorandum
WP Disapproval Details on scope budg
or schedule
Final WP Approval Minor shift within SO\
(no change in S/LOE)
Amendment to Final Change WAM
WP Approval
Approve change in LOE. Set or revise
scope, or budget expenditure limit (EL)
Approve additional asks
Incremental Funding
Fund approved WP
et.
WA Closeout Notification
V Notify contractor to inmate
WA closeout task
Revise EL after final invoice
Other
3 BUDGET INFORMATION
Completion WA Term WA
Tool Funding Received ($)
Previous Total
This Action
New Total
Funding Category
Activity Code
S/SID
4 WA COMPLETION DATE Current
Approved Work Plan Budget Ex
LOE ($)* L
Term WAs Only Term
• Includes fees
Revised
pendmire Limits Not to Be Exceeded
OE ($)•
WAs only
• Includes fees
5. EPA COMMENTS:
6. APPROVALS
Contractor Signatures
Sue Manager/Finn
Program Manager/Firm
Approved As
Submitted
Approved With Not
EPA Signatures
Date Work Assignment Manager
Date Project Officer
Date
Date
Changes Approved Signature of Contracting Officer Date
5-45
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The WAF must identify the tasks
that the contractor can start before
WP approval.
The PR obligates funds and sets
the funding ceiling for the WA.
Item 4. WA Completion Date—The completion date for the WA is
entered in the space marked "Current."
Item 5. EPA Comments—The interim work tasks that the contractor can
initiate immediately (prior to approval of the contractor's WP) are indi-
cated. These include activities under Task 1, Project Planning and Sup-
port, and may include additional technical tasks requiring immediate start-
up. Interim activities must be clearly defined in the comment section in
order to limit the amount of work the contractor can perform before the
WP is approved.
Item 6. Approvals—The WAM and PO sign under "EPA Signature" in the
"Approvals" section of the form. The CO checks the appropriate box to
indicate approval and signs and dates the WAF.
- Complete appropriate sections of WAF per Region-specific
procedures.
Completing the Procurement Request for Remedial Action and
Completion-Form Work Assignments
5.6.3
WAs are usually funded from bulk-funding categories (see section 4.3).
Only Fund-lead RA WAs and completion-form WAs require a separate PR
to be processed with the WAP. The Regions can fund, at their discretion,
other types of WAs on an individual basis. See section 5.8 for a detailed
description of WA funding.
The PR obligates funds and sets an overall funding ceiling that may not be
exceeded without subsequent additions to WA funding. The initial PR
funding level may be any amount that does not exceed the IGCE. Addi-
tional incremental funding can be provided at any time until the WA is
fully funded.
The WAM completes the PR according to the instructions that appear on
the back of the form. A copy of the PR form and instructions for its
completion are provided in Exhibit 5-14.
6-46
MAY 31, 1995
-------
CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-14. EPA Form 1900-8, Procurement Request, page 1 of 2
?/EPA
United States
Environmental Protection Agency
Washington, DC 20460
PROCUREMENT REQUEST/ORDER
1. Name of Originator
3. Mail Code 4. Telephone Number
2. Date of Requisition
5. Date (tern Required
6. Signature of Originator
7. Recommended Procurement Method
D
Competitive
Other then full end open
competition
I I Sole lource small
purchase
8. Deliver To (Project Officer)
10. Mail Code
11. Telephone Number
12. Suggeited Source (Neme, Address. 2IP Code. Phone/Contect)
13. Amount of money committed
ii:
I Incroaie I Decrease
Q Original Q Cancellation
14. For Smell Purcheses Only: Contracting Office
authorized to exceed the amount thewn in Block 26
by 10% or ItOO. whichever ii leu.
D
Yei
No
16. Approvals
a. Branch/ Olfice
d. Property Management Officer/ Designae
b. Division/ Office
e. Other ISpecifyl
Date
c. Funds listed in Block 26 and Block 14 (if any) are available and reserved. {Signature and phone number of Certifying Official Phone
Date
26. Financial and Accounting Data
•udOM/FYi Afpnpriaaon Codi ludg.1 Org/Ccdi Program Bem«M ObKct dee*
M«c 41 (Mm •) OUtex 71 (MM 8) (M« 41
Amount (Man) (Canal
Cost Ota/Code
IMa»7l
SFO
(Max 2)
J7. United States of Amarlc* B* fSviwnBk?:-
X t.s. ^
28. Typed Name and Phone of Contracting Officaf
PA Form 1900-8 (Rev. I
Previoue editiona are obsolete.
actronic and paper veraion* acceptable.
COPY y PROCUREMENT RLB'OOfTBACTliyG OFFICER
5-47
MAY 31, 1995
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-14. EPA Form 1900-8, Procurement Request, page 2 of 2
Instructions for Completing EPA Form 1900-8
Procurement Request/Order
THs form is e 8-part interleaved set end is designed to be completed with an elite typewnter (12 pitch). The onguiating office should compJata oO
areas that apply. Shaded areas ere reserved for Procurement use only. After completing the form, in accordance with the instructions below, retain
tha copy marked for "Originator" and send the others through the required channels.
1 thru 6 Enter the originator's name, mail coda, telephone number, date of requisition, signature of originator.
and latest data that items can ba delivered.
7 Sell explanatory. Attach a justification for other than full and open compenDon or for sola source smaB purchases.
8 thru 11 Enter tha name, address, mail coda, and telephone number. If the person Is the same as the originator, leave blank.
12 If more than one source is suggested, attach e list of the contractor's/vendor's name, address, and point of contact Of known) for
each source
13 Self explanatory
14 For SmaP Purchases Only. Check ana box. If 'YES' is checked, the funds certifying official must commit suffkxent funds to the
Document Control Register to covsr tha total potential amount of the obligation.
16 Self explanatory.
16 thru 24 For Procurement Office use only
25(a) Self explanatory.
25(b| Tha degree of detail required will vary with the complexity of the proposed procurement. Each request shaf contain sufficient
information on its face to process the request. If the proposed procurement ie for oonpersonal work or ssrvices, provide • tide
which specifically describes the work or services to bs procured and limit tha tide to sixty (60) positions, mchiduig tha
between each word of tha tide, for computer input, and attach the documentation required In Chapter 2 of tha
ment Manuel. In other instances, describe the ertide(s) requested In detail, using manufacturer'o modal
If possible, and provide specification, quantity increment, delivery requirement, and special packaging or
(Uee EPA Form 1BOO-8A. Continuation Sheet, if additional space is required)
25(c)and(d) Self explanatory.
26(e) Entar the estimated pnce of the item.
25(0 and (g) For Procurement use only - Leave Blank
2800 Used for inspection and acceptance only.
26 Enter the Document Control Number (DCN), Budget/FYs. Appropnatron Code, Budgat/Org Code. Program Element. Object Ctesa.
the number of the Servicing Finance Office designated by the Financial Management Division for the accounting office that wB
record these data, end the dollar amount. Failure to include this Information may result In return of thrs form to the originator.
If required for your program, also Include Site/Project and Coat Org/Coda information. It is critical that these data an accurate ar
legible on ALL copies.
27 To be completed by the Contracting Officer.
Note: Tha contracting officer will complete tha blocks marked "Invoice Address* and "Ship To" on copy 2 whan Ms form is used as
a purchase order.
Remove this page before completing the Procurement Request.
EPA FORM 1900-8 (Rev. 8-94) Previous editions ara obsolete.
5-48
MAY 31, 1995
-------
CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,6.4 Required, Core, and Noncore Elements of Preparing the Work Assignment
Package and Issuing the Work Assignment
The required, core, and noncore elements of RAC guidance for preparing
the WAP and issuing the WA are identified in Exhibit 5-15. Chapter 1
provides definitions of required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
Issuance of written WAs to order work under RACs, in accordance with contract
Clauses C.2 STATEMENT OF WORK-CONTRACT WHERE WORK IS ORDERED
BY WORK ASSIGNMENTS OR DELIVERY ORDERS, B.2 WORK
ASSIGNMENTS (TERM-FORM SEGMENT), and B.3 WORK ASSIGNMENTS
(COMPLETION-FORM SEGMENT)
Development of the WA SOW using the contract SOW WBS
Preparation of a written IGCE for all procurement actions estimated to exceed
$25,000
Use of EPA Form 1900-65a to designate the WAM for the new WA
Use of EPA Form 1900-8 to process funding actions for site-specifically funded
WAs
PO review and concurrence with WAP; CO review and approval of WAP
CO issuance of WA
CO issuance of funding modification to site-specifically fund RA and completion-
form WAs
Ordering work up to the base quantity of LOE in the base period and in the option
period (if option period is exercised)
Ordering work within (not to exceed) contract ceilings designated for completion-
form WAs, equipment pool, and subcontractor subpool
Core
Selection of the contractor to be assigned the work based on a documented set
of work allocation considerations
Use of a WAF to initiate the WA
Issuance of WAs at the contract SOW work area level (i.e., a separate WA is
issued for each work area)
Noncore
Regions may vary in division of responsibilities among the Contract Management
Team (the WAM, PO, and CO) (e.g., in some Regions the WAM prepares the
PR and in some Regions the PO does).
Formats for the WAF and WAAM can vary as long as they contain the data
elements shown in the generic forms in this guide.
When preparing WAs, the Region may add subtasks within the scope of the
tasks defined in the contract SOW.
51-033-100B
Exhibit 5-15, Required, Core,
and Noncore Elements
of Preparing the Work
5-49
MAY 31, 1995
-------
CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Work Plan Technical Review and
Cost Evaluation
SECTION
MAY 31,1095
-------
RAC USERS' QUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
EL Expenditure Limit
IGCE Independent Government
Cost Estimate
LOE Level of Effort
PO Project Officer
SOW Statement of Work
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WP Work Plan
5.7 Work Plan Technical Review and Cost Evaluation 5-51
5.7.1 How to Review and Evaluate the Contractor's Work Plan 5-53
Step 1 Holding the Scoping Meeting 5-53
Step 2 Contractor Submission of WP 5-55
Step 3 WAM Review of WP 5-55
Step 4 PO Review of WP 5-61
Step 5 CO Review of WP and WP Approval. Partial Approval,
or Disapproval 5-61
Step 6 Conducting Negotiations as Necessary 5-62
5.7.2 Required, Core, and Noncore Elements of Work Plan Review and
Evaluation 5-63
Exhibits
Exhibit 5-16 Process Flow for Work Plan Review and Evaluation 5-54
Exhibit 5-17 Optional Form 60 (OF 60) 5-56
Exhibit 5-18 Standard Form 1411 5-57
Exhibit 5-19 Questions to Consider When Reviewing Contractor
Work Plans 5-58
Exhibit 5-20 Questions to Consider When Reviewing Contractor
Cost Estimates 5-58
Exhibit 5-21 Work Plan Evaluation Checklist 5-60
Exhibit 5-22 Required, Core, and Noncore Elements of Work Plan
Review and Evaluation 5-63
MAY 31. 1995
-------
CHAPTER 5 » ISSUING) AND MANAGING WORK ASSIGNMENTS
5.7 Work Plan Technical Review and Cost Evaluation
This section describes the process for reviewing the contractor work plan
(WP), evaluating proposed costs, approving the contractor WP, and
negotiating final WP approval, as necessary. Roles of the Work Assign-
ment Manager (WAM), Project Officer (PO), and Contracting Officer
(CO) are highlighted.
5.7.1 How to Review and Evaluate the Contractor's Work Plan
The WAM, PO, and CO each review the contractor WP. The CO issues
final WP approval based upon his or her review and WAM and PO
recommendations. Exhibit 5-16 illustrates the WP review and evaluation
process. A step-by-step explanation follows.
EHUD Holding the Scoping Meeting
As soon as the work assignment (WA) is issued, the WAM should sched-
ule a scoping meeting with the contractor to review and clarify WA
requirements. The meeting should be held within one to two weeks after
the WA is issued. This should allow time for the contractor to review the
WA requirements. During the scoping meeting, the WAM meets the
contractor site manager and other managers that will be involved in the
WA, discusses the WA requirements outlined in the statement of work
(SOW), and clarifies any questions or issues that the contractor has
regarding WA implementation. The PO generally attends the scoping
meeting; the CO also may attend. The following WA requirements are
reviewed and discussed at the scoping meeting:
• work scope and task requirements
• Task 1 - Project Planning and Support and any other tasks that the
contractor will initiate before WP approval
• special technical considerations
• WA-specific reporting requirements (e.g., subtask-level reporting
requirements)
• special equipment that may be needed and whether the equipment will
be provided by the government
• deliverables and delivery schedules
• performance measures
• deliverable/product specifications and acceptance criteria
If EPA and the contractor agree on clarifications to the SOW during the
scoping meeting, the contractor should integrate these clarifications into
the WP. If the clarifications require changes to the WA SOW scope or
5-53
Last-minute changes in
EPA policy may affect RAC
equipment procedures.
'/the scoping meeting leads to
changes in the SOW scope or WE,
the WAM prepares a WA amendment.
MAY 81, 1995
-------
RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-16. Process Flow for
Work Plan Review and
Evaluation
Within 30 days
after contractor
receives WA
1-2 weeks after
contractor
receives WA
Reviews WP
and
recommends
approval, partia
approval, or
disapproval
Reviews WP
and
recommends
approval, partial
approval, or
disapproval
Reviews WP
and PO/WAM
recommen-
dations and
informs con-
tractor of WP
approval status
Assists CO in
Receives
notice of WP
approval
status
if not approved
contractor
Submits new or
modified WP
CO approval
must occur
within 45 days
after receiving
contractor WP
or contractor
must stop work
onWA
Optional step—
at the GO'S
discretion
51-033-7D
level of effort (LOE), the WAM makes the necessary changes through a
WA amendment (see section 5.11).
If the SOW is amended as a result of the scoping meeting, the WAM
should revise the WA independent government cost estimate (IGCE) if
necessary. If the SOW changes are minor, IGCE revision may not be
5-54
MAY 31, 1995
-------
CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
warranted. In either case, the WAM must document the scoping meeting
discussions for future reference when reconciling the IGCE and contractor
WP.
After the WA is issued, the contractor proceeds with the tasks and activi-
ties authorized on the work assignment form (WAF), up to the WA
expenditure limit (EL) established on the WAF. Generally, the WAM has
authorized WP development and other WA preparation activities under
Task 1 - Project Planning and Support. The WAM also may have specified
certain technical activities if starting site work is critical.
- Schedules and attends scoping meeting with the contractor to
review and clarify WA requirements.
- Prepares WA amendment if changes to SOW scope or LOE
result from scoping meeting.
- May revise IGCE following scoping meeting.
- Documents scoping meeting discussions.
- Generally attends scoping meeting.
CO) - May attend scoping meeting.
EBB Contractor Submission of WP
The contractor prepares the WP in response to the WA, including an
Optional Form 60 (Exhibit 5-17) or Standard Form 1411 (Exhibit 5-18).
The contractor submits the WP to the CO, along with copies to the PO and
WAM, within 30 days of receiving the WA.
BEE WAM Review of WP
The WAM reviews the WP to determine whether the contractor's pro-
posed technical approach, schedule, and staffing are complete and reason-
able, and comply with WA requirements, and that costs are reasonable for
the work. Exhibit 5-19 lists key questions that the WAM should consider
when reviewing the contractor's WP.
The WAM compares the contractor cost estimate with the IGCE to
determine cost reasonableness and identify any potential cost anomalies.
During the technical review, the WAM makes detailed notes regarding
areas where:
• additional explanation is needed
• issues need to be resolved
s-ss
MAY 31, 1995
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-17. Optional Form 60 (OF 60)
Office of Management and
(RESEARCH AND DEVELOPMENT) Appwal No"8*
This lorn is (or use when (i) submission ot cost or pm
is required and (ii) substitute) (or the Option Form 59
Name of Offerer
Home Office Address
Drvtson(s) and Location(s) Where Work is to be Perfumed
ang data (see FPR-1-3.807-3) Page No
is authorized by the contracting officer
Supplies and/or Services to be furnished
Total Amount of Proposal Government Soft
DETAIL DESCRIPTION OF COST ELEMENTS
1. DIRECT MATERIAL (Itemize on Exhibit A)
b Subcontracted Items
c. Other- (1) Raw Material
(2) Your Standard Commercial Items
(3) Interdrvisional Transfers (At Other Than Cost)
TOTAL DIRECT MATERIAL
ESTCOST(S)
TOTAL
ESTCOST
ENCE
2 MATERIAL OVERHEAD
3 DIRECT LABOR
Professional Level 4
Professional Level 3
Professional Level 2
Professional Level 1
Technical Level 2
Clerical Support
ESTIMATED RATE/
HOURS HOUR
XX XX XX
XX XX XX
XX XX XX
XX XX XX
XX XX XX
XX XX XX
TOTAL DIRECT LABOR
4 LABOR OVERHEAD (SPECIFY DEPARTMENT OR COST CENTER) OH RATE %BASE-
Frlnge Benefits
Overhead
XX X% XX, XXX
XX X% XX, XXX
TOTAL LABOR OVERHEAD
TOTAL SPECIAL TESTING
6 SP£C\fiLEQU\PM£Kl (It drect charge) (Itemize on Exh&l A)
7. TRAVEL
TOTAL TRAVEL
8. CONSULTANTS (Identity • Purpose - Rate)
Non-Team Subcontractor
TOTAL CONSULTANTS
9 OTHER DIRECT COST (Itemize on ExhtalA)
10.
ESTIMATED
COST(S)
x.xxx
x.xxx
x.xxx
x.xxx
XXX
x.xxx
ESTCOST(S)
x.xxx
x.xxx
XXX
TOTAL DIRECT COST AND OVERHEAD
11 GENERAL AND ADMINISTRATIVE EXPENSE (Rote 5 4% except Spec. Pool Subs @ 2 77%)
12. ROYALTIES
13
TOTAL ESTIMATED COST
14 FEE OR PROFIT Base Fee (@ 3.0% except for Team Subs @ 2.0% & Spec. Pool Subs® 2 5%)
Award Fee (3 54 of Total PRC and Team Sub LOE hours & Spec Pool @ 2 5%)
15.
TOTAL ESTIMATED COST AND FEE OR PROFIT
XX, XXX
XX, XXX
XXX
x.xxx
XX, XXX
x.xxx
XX , XXX
x.xxx
x.xxx
SXX , XXX
5-56
OPTIONAL FORM 60. General Sevfces Administration 5MQ3-13B
MAY 31. 1995
-------
CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-18. Standard Form 1411
CONTRACT PRICING PROPOSAL COVER SHEET
1 SOLICITATION/CONTRACT/MODIFICATION NO
FORM APPROVED OMB NO
90000013
Public nooning burden to thb OOUKBMI of kitamutlon If estimated to average 4 houn per nipenu. tneJudmg tha time tof nwkjwng Instructions.
esercmng exntmg date eouroee. gathering and rnakitaiiung the dm needed, and completing and reviewing iha eaUacnon of Monnation Sand eommami
regertfra this burden catenate or any other aipaet of thi. collection of kiformetian. Including suggestions far reducing this burden, to tha FAR Secretariat
(9000-0013). Washington. D.C. 206O3.
NOTE TOsfonnlsusadeiciontractacttorisHsiibirJssfcinofeostMpnc^dsuUrewiired. (See FAR 16.BB44IM)
2 NAME AND ADDRESS OF OFFEROR (Include ZIP Code)
6 TYPE OF CONTRACT (Check)
Q FFP [^| CPFF Q] CPIF Q CPAF
Q] FPI Q| OTHER (Specify)
3A NAME ANDTTTXE OF OFFEROR'S POMT
3B TELEPHONE NO
4. TYPE OF CONTRACT ACTION (Chock)
A NEW CONTRACT
B. CHANGE ORDER
C PRICE REVISION/
REDETERMINATION
6 PROPOSED COST
A COST B PROFIT/FEE
D LETTER CONTRACT
E UNPRICED ORDER
F OTHER (Specify)
(A + B-C)
C TOTAL
7 PLACEIS) AND PERIODIS) OF PERFORMANCE
A LINE ITEM NO
B IDENTIFICATION
C QUANTITY
0 TOTAL PRICE
E REF
9. PROVIDE NAME. ADDRESS. AND TELEPHONE NUMBER FOR THE FOLLOWING (If available!
A CONTRACT ADMINISTRATION OFFICE
AUDIT OFFICE
10 WILL YOU REQUIRE THE USE OF ANY GOVERNMENT PROPERTY
IN THE PERFORMANCE OF THIS WORK? IH -yes/ Identify)
1 1 AJ3O YOU REQUIRE GOVERNMENT
CONTRACT FINANCING TO PERFORM
THIS PROPOSED CONTRACT? (If
•Yet. 'complete ham 11BI
1 1B TYPE OF FINANCING 1 / one!
D
YES
D
YES
DNO
GUARANTEED LOANS
12
HAVE YOU BEEN AWARDED ANY CONTRACTS OR SUBCONTRACTS
FOR THE SAME OR SIMILAR ITEMS WITHIN THE PAST 3 YEARS?
(H •Yea.* Identity hernia), customer^) and contract numbarlsl)
13 IS THIS PROPOSAL CONSISTENT WITH YOUR ESTABLISHED ESTI-
MATING AND ACCOUNTING PRACTICES AND PROCEDURES AND
FAR PART 31. COST PRMCIPLES? (H 'No.' explain)
YES
NO
DYES Duo
14. COST ACCOUNTING STANDARDS BOARD (CASB) DATA (Public Law 91-379 aa amended and FAR PART 30)
A WILL THIS CONTRACT ACTION BE SUBJECT TO CASB REGULATIONS?
IH 'No/ explain bi proposal]
DYES DNO
_ HAVE YOU BEEN NOTFCD THAT YOU ARE OR MAY BE IN NON-
C COMPLIANCE WITH YOUR DISCLOSURE STATEMENT OR COST
ACCOUNTING STANDARDS? IH 'Yea.* axpuun n proposal)
DYES duo
TIBS propoaat Is aubmhtad bi feaponoa to tha RFP. contract, modification, etc In It
and conforms whh tha awaucttone fci FAR 16.6O4-«b| (2). Table 16-2 By sub
IB NAME AND TITLE (Type)
(CASB DS-1 or 21? (H 'Yes.' specify n proposal tha office to which
submitted and H determined to be adequate)
DYES DNO
D IS ANY ASPECT OF THIS PROPOSAL INCONSISTENT WITH YOUR
DISCLOSED PRACTICES OR APPLICABLE COST ACCOUNTMG
STANDARDS? IH 'Yes/ explam n proposal)
DYES QNO
em 1 end reflects our bast estimates and/or actual costs ee of this data
mming this proposal, tha offerer. If selected tor negotiation, grants the
mo before award, those books, records, documents and ether types of
a specHEeDy referenced or included n tha proposal aa the bears for
16 NAME OF FIRM
17. SIGNATURE |1B DATE OF SUBMISSION
NSN 764O-OI-142-984B EXPIRATION DATE 7-31-93 I4I1-1O3 STANDARD FORM 1411 (REV 2-81)
7/87 edition b usable. Prescribed by OSA • FAR 148 CFR) 63 216-2lal
5-57
MAY 31, 1995
-------
RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-19. Questions to
Consider When Reviewing
Contractor Work Plans
Exhibit 5-20, Questions to
Contractor Cost Estimates
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
1. Are the major tasks of the entire WA and the steps to be undertaken to complete
each task described?
2. Do tasks in the WP match those in the WA SOW (i.e., follow SOW work breakdown
structure)?
3. Did the contractor indicate the schedule for completing each task?
4. Is the schedule for interim and final deliverables shown?
5. Do the contractor schedules reflect those specified in the WA or is the contractor
proposing alternate schedules?
6. Did the contractor propose a realistic schedule for getting the work done and
submitting deliverables, including enough built-in time for contingencies?
7. Are detailed responsibilities for the contractor and the government defined?
8. Are key contractor staff and their roles identified for each task?
9. Does the contractor staffing mix seem appropriate for the work?
10. Did the contractor identify activities to be subcontracted for each task?
11. Did the contractor include any assumptions that may affect satisfactory execution
of work?
12. Are contractor-WAM communication protocols identified for the duration of the WA?
51-033-78A
• the contractor's technical approach, schedule, staffing, or costs do not
appear to be realistic or reasonable given the government's stated needs
• the contractor failed to respond to WA requirements
When comparing the contractor's cost proposal with the IGCE, the WAM
should consider the questions provided in Exhibit 5-20. During this
process, the WAM notes differences between the contractor's cost esti-
mate and the IGCE. The WAM needs to understand and record the reasons
for these differences when evaluating the contractor's cost estimate.
1. Are the hours and rates appropriate and reasonable? Are the hours broken out
by task?
2. Are the costs broken out by cost element and by task?
3. Is the labor mix appropriate? Is the average hourly rate reasonable for the work?
4. Are the indirect cost rates those which have already been negotiated and are stated
in the contract?
5. Are proposed subcontractor services necessary? Can they be justified?
6. Are proposed subcontractors/consultants already approved? Will approval of the
WP require a ceiling increase of any proposed subcontractor/consultant?
7. Is the proposed amount of travel acceptable and is it supported by information on
the number of trips, people, destination, duration, fares, etc.?
8. Did the contractor provide a breakdown of other direct costs? Is each component
reasonable?
9. Is acquisition of any government-furnished property required? Is the property
reasonable and necessary to perform the work? Is the property available from
another source?
$1-033-79
5-58
MAY 31, 1998
-------
CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
It may be necessary to obtain additional information from the contractor
during WP review to clarify the contractor's technical approach or to
understand the rationale behind the contractor cost estimate, staffing plan,
or schedule. Requests for additional information should be limited to
gathering and clarifying the information presented in the WP and should
not include or evolve into WP negotiations with the contractor. Only the
CO is authorized to negotiate WP costs with the contractor.
The WAM completes a WP evaluation checklist (example provided in
Exhibit 5-21); prepares a technical review memorandum that details his
or her review of the WP; and prepares a WAF for WP approval, partial
approval, or disapproval. The WAM's technical review memorandum
must include a specific recommendation (i.e., approval, partial approval,
or disapproval) for each task and describe the basis of the recommenda-
tion. The WAM completes a WAF, indicating either "Partial Work Plan
Approval" or "Final Work Plan Approval" under item 2. If partial ap-
proval is given, the CO must specify in item 5, "EPA Comments," which
tasks or portions of tasks are recommended for approval and the EL (LOE
and/or funding) associated with those tasks or portions of tasks. If ap-
proval is not recommended, the WAM specifies in his or her technical
review memorandum the reason why approval cannot be recommended
and what would constitute an adequate change to make the task accept-
able. For example, if LOE for a task is determined to be unreasonable, the
WAM should indicate what would constitute a reasonable LOE.
If the WAM recommends disapproval of the WP, he or she completes a
WAF, marking "WP Disapproval," and indicating the reason(s) for this
decision in item 5.
After completing the review, the WAM compiles and forwards the techni-
cal review package to the PO, including:
• WP evaluation checklist
• WP technical review memorandum
• WAF indicating approval, partial approval, or disapproval
/v
OlifAMy - May request additional information from the contractor to
clarify the WP.
- Reviews WP and recommends approval, partial approval, or
disapproval.
- Completes WP evaluation checklist.
- Prepares technical review memorandum.
- Prepares WAF for WP approval, partial approval, or
disapproval.
- Forwards the WP evaluation checklist, technical review memo-
randum, and WAF to the PO.
5-59
Only the CO is authorized to
negotiate WP costs with the
contractor.
For each WP task, the WAM must
make a specific approval
recommendation and describe the
reason for the recommendation.
MAY 31, 1085
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-21. Work Plan Evaluation Checklist
From:
Work Assignment Manager
To:
Project Officer
Please check each Item If appropriate.
Addressing the Statement of Work (SOW)
Contractor addresses all tasks outlined in the SOW.
Contractor does not include any extraneous work.
Schedule, including critical path and interim and final
milestones and deliverables, is acceptable.
Management structure appears sound and
includes appropriate QA procedures.
Technical approach and methodology for
accomplishing each task appears effective.
Contractor demonstrates a thorough
understanding of the work assignment.
Other Direct Costs
Pmivwpfl mntprinl and pnninnrtAnt annpar rpa^nnahlA
Pmnnsflri rnmmitpr pffnrt nnnpare nnnmnriatp
Miscellaneous expenses appear reasonable.
Travel and Communication
Number and length of trips, number of travelers, fares,
and duration are recommended.
Consulting and Subcontracting
Reasonable consultant effort proposed.
Laboratory services, other than CLP, are appropriate.
Comments:
Contract Number: RAC
Site Name:
Work Asslanment Number:
Work Plan Dated:
Proposed technical and technician p-levels for each task
are reasonable to accomplish the tasks.
Reasonable clerical/home office support staff
proposed.
Appropriate LOE proposed for each p-level.
Reasonable budget developed for each activity
Ennunh detail in WP and cost hiidnpt for future mst
recovery.
Proposed safety and contingency measures are
adequate.
Government-furnished property is justified,
where appropriate.
Reproduction and postage costs appear appropriate.
Protocol for WAM-confractor communication identified.
Reasonable subcontracting effort anri C0?t?
Recommended for Approval by:
Work Assignment Manager
Concur:
Project Officer
Date
Date
5-60
51-033-100
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
BED PO Review of WP
The PO reviews the WP technical approach, schedule, staffing, and cost
for completeness, reasonableness, and compliance with WA requirements.
The PO also reviews the WAM's technical review package to ensure that
it is thorough and contains clear recommendations. The PO generally
discusses aspects of the WP with the WAM. If the PO concurs with the
WAM's recommendations, the PO signs the WP evaluation checklist and
forwards it to the CO. If, however, the PO determines the package is
incomplete or lacks clear recommendations, the PO returns it to the WAM
for clarification.
- Reviews WP and WAM's technical review package.
- Discusses WP with WAM as needed.
- May request additional information from the contractor
to clarify the WP.
- Signs WP evaluation checklist.
- If the package is incomplete, returns it to WAM for changes.
- If PO concurs with package, forwards it to CO.
EQH CO Review of WP and WP Approval, Partial Approval, or Disapproval
The CO reviews the WP and the technical review package that contains
the WAM and PO recommendations. If the information in the technical
review memorandum is insufficient, the CO returns the package to the
WAM for further evaluation or comments. If the CO concurs with the
WAM and PO recommendations, the CO approves the WP by signing the
WAR
The CO should approve or partially approve the contractor's WP within 45
days of receiving it or the contractor must stop work on the WA until
receiving WP approval. Partial WP approval is frequently given so the
contractor can start work on urgent or preliminary tasks while problematic
tasks are negotiated. If the WP is partially approved, the CO may negoti-
ate with the contractor to resolve problems regarding the unapproved
portions of the WP (see Step 6 below and section 5.7.4). If the WP is
disapproved, the CO may negotiate with the contractor to resolve the
problems (see Step 6 below). The WAM and PO are present during WP
negotiations to represent the technical aspects. The CO may conclude that
the WP is too flawed to warrant negotiation. In this instance, the CO
provides the contractor with a detailed description of WP deficiencies and
requests that the contractor prepare and submit a new WP that addresses
EPA concerns.
After the CO has decided to approve or partially approve the WP on the
WAF that issues WP approval, the WAM usually recommends increasing
the WA EL, setting the EL at or below the approved WP budget limit for
approved WP tasks. The WAM may recommend setting the EL below the
5-81
If the CO concurs with the WAM
and PO recommendations, the CO
approves the WP by signing the
WAF.
MAY 31.1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The CO may negotiate the WP
with the contractor if it was
partially approved or disapproved.
approved WP budget to better manage the phasing and execution of the
WA (see section 5.10).
- Adjusts WA EL on WAF following CO decision to approve or
partially approve the WP.
- Reviews WP and PO/WAM recommendations.
- Informs PO, WAM, and contractor if WP is approved, partially
approved, or disapproved.
- May provide contractor with a list of deficiencies and request
revised WP.
- Schedules negotiations with contractor if needed.
The CO may negotiate some aspects of the WP with the contractor if the
WP was partially approved or disapproved. Before meeting with the
contractor, the Regional negotiation team (composed of the WAM, PO,
and CO) meets to determine EPA's negotiating position, which the CO
presents during negotiations. The PO and WAM attend and participate in
the negotiation session as technical representatives of the CO. Negotia-
tions may be conducted in writing, face-to-face, or on the phone.
The contractor and CO each maintain written records of the areas of
agreement and difference between the government position and the
contractor WP throughout WP negotiations. The CO documents the
proceedings and results of the negotiations.
If an agreement was reached during negotiations, the contractor revises
and resubmits the WP based on the decisions reached. The WP can be
revised in letter format (i.e., the contractor writes a letter that identifies
the WA changes). After the contractor has submitted the revised WP, the
WAM and PO review the WP to verify that negotiated changes are
reflected in the revised WP. After their review, the WAM and PO can
recommend approval of the WP or further negotiation with the contractor.
- Meets with PO and CO to determine EPA negotiating position.
- Provides technical assistance to CO in negotiating WP.
- Recommends approval, partial approval, or disapproval of
resubmitted WP.
- Meets with WAM and CO to determine EPA negotiating
position.
- Provides technical assistance to CO in negotiating WP.
- Recommends approval, partial approval, or disapproval of
resubmitted WP.
5-62
MAY 31, 1995
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CHAPTER 6 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,7,2
Meets with WAM and PO to determine EPA negotiating
position.
Negotiates WP with contractor.
Documents negotiation proceedings and results.
May provide contractor with description of WP deficiencies and
request new WP.
Maintains written record of differences between EPA position
and contractor WP.
Required, Core, and Noncore Elements of Work Plan Review and
Evaluation
The required, core, and noncore elements of RAC guidance for WP
review and evaluation are identified in Exhibit 5-22. Chapter 1 provides
definitions of required, core, and noncore elements and explains Regional
responsibilities for incorporating each element.
| Required
Review of contractor WP to determine adequacy, compliance with WA SOW, and
cost reasonableness
Negotiation with contractor as needed to resolve WP issues
CO issuance of approval, partial approval, or disapproval of WP using a WAF
| Core
Scoping meeting with contractor after WA issuance and before WP receipt
WP review and recommendations by WAM, PO, and CO
WAM documentation of technical review comments on WP and rationale behind
recommendation to approve or disapprove individual WP tasks
Noncore
Use of the WP evaluation checklist or similar document is at the Region's discretion,
as long as the Region's WP review is thoroughly documented.
The format of the WAM technical review memorandum may vary.
The contractor may be questioned as needed during WP review to clarify the WP.
61-033-1S38
Exhibit 5-22, Required, Core, and
Noncore Elements of Work Plan
Review and Evaluation
5-63
MAY 31,1995
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Work Assignment Funding
SECTION
5.8
MAY 31, 1996
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
5.8 Work Assignment Funding
5.8.1 How to Fund Work Assignments Site-Specifically 5-67
Step 1 Preparing the PR as Part of the WAP 5-67
Step 2 PO Review of PR 5^59
Step 3 CO Review of PR 5-68
Step 4 Preparing Contract Funding Modification 5-69
Step 5 Forwarding the WA and Contract Funding Modification to the
Contractor {j_gg
Step 6 Contractor Receipt of WA and Contract Modification 5-69
5.8.2 Funding Work Assignments Under Bulk Funding 5^9
5.8.3 Required, Core, and Noncore Elements of Work
Assignment Funding 5.70
Exhibits
Exhibit 5-23 Process Flow for Funding Work Assignments
Site-Specifically 5^3
Exhibit 5-24 Required, Core, and Noncore Elements of Work
Assignment Funding 5.71
Acronyms
CO Contacting Officer
EL Expenditure Limit
FMC-RTP Financial Management
Center at Research Triangle
Park
IFMS Integrated Financial
Management System
PO PrejectOfficer
PR Procurement Request
PS Program Support
RA Remedial Action
RAC Response Action Contract
WA WorkAsslgnment
WAF Work Assignment Form
WAM Work Assignment Manager
WAP Work Assignment Package
MAY 31, 1995
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CHAPTER 6 • ISSUING AND MANAGING WORK ASSIGNMENTS
5.8 Work Assignment Funding
This section discusses the funding process for the Response Action Con-
tract (RAC) work assignments (WAs) that will be funded site-specifically. It
also explains how WA expenditures will be obligated under bulk funding
for WAs that are not funded site-specifically. (The bulk-funding process is
described in section 4.3.) This section highlights the roles of the Work
Assignment Manager (WAM), Project Officer (PO), and Contracting
Officer (CO) in the WA funding process.
5.8.1 How to Fund Work Assignments Site-Specifically
The WAM is responsible for planning sufficient funding for the project
through the Regional advice-of-allowance coordinator. Each remedial
action (RA) and completion-form WA is individually funded with a
separate procurement request (PR). The Office of General Counsel, in a
memorandum dated April 23,1993, determined that completion-form
WAs must be funded site-specifically to provide a recordable event for
funding obligation purposes. Site-specific WA funding is obtained by
issuing and approving a PR as part of the work assignment package
(WAP). Subsequent PRs are issued to increase the funding available if the
WA is incrementally funded.
The PR is part of the WAP and is reviewed and approved on the same
timeline during initial WA preparation. Note that the WAP review and
approval process is greatly simplified here to focus on the PR. For a
complete description of how the WAP is prepared and approved, see
section 5.6.
Exhibit 5-23 depicts the process of preparing and processing site-specific
WA funding. A step-by-step explanation of the process follows.
EHUD Preparing the PR as Part of the WAP
The WAM or PO prepares the PR as part of the WAP. Detailed instructions
on how to prepare the WAP and fill out the PR form are provided in
section 5.6. Exhibit 5-14 presents a sample copy of a PR.
The WAM submits the completed WAP to the PO for review.
- May prepare PR.
The WAM or PO prepares the PR
as part of the WAP.
5-67
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Extiibft5-2a Process Flowfof
FundingWorkAssignmentsSilB-
51-03W4H
PO Review of PR
The PO reviews the PR and obtains necessary approvals.
POJ - Reviews PR and obtains PR approval.
CO Review of PR
When reviewing the PR, the CO ensures that contract funds are available,
freezes money in the Integrated Financial Management System (IFMS),
and determines if contract ceilings need to be increased.
- Ensures that contract funds are available.
- Freezes money in IFMS.
- Determines if contract ceilings need to be increased.
- Reviews, signs, and processes PR.
5-68
MAY 31. 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
HUD Preparing Contract Funding Modification
Upon approval of the WAP, the CO prepares the contract funding modifi-
cation to add the WA funds specified on the PR to the contract and to
increase contract ceib'ngs as needed. The CO enters the committed funds
into the IFMS and forwards the information to the Financial Management
Center at Research Triangle Park (FMC-RTP). FMC-RTP personnel
update EPA's financial systems with the information.
- Prepares contract funding modification.
- Enters committed funds into IFMS.
- Forwards contract funding modification information to FMC-
RTP.
HUB Forwarding the WA and Contract Funding Modification to the Contractor
The CO issues the WA and contract funding modification to the contractor
and sends copies to the PO and WAM. In some Regions, the PO distrib-
utes the modification and the WA to the WAM.
I PO I - May distribute contract funding modification and WA to WAM.
(CO ) . Issues WA and sends contract funding modification to
contractor.
- Provides copies of approved WA and contract funding
modification to PO and WAM.
BS0 Contractor Receipt of WA and Contract Modification
The contractor receives and acknowledges receipt of the WA and contract
modification.
5.8.2 Funding Work Assignments Under Bulk Funding
When a WA is issued that will use the contract's bulk funding, the work
assignment form (WAF) identifies the funding category for the WA and
site codes to use for WA invoicing. The WAF also establishes the expendi-
ture limit (EL) that functions as the WA funding ceiling and serves as an
important tool in the phasing and execution of a WA. Before approving
the EL, the PO ensures that there is sufficient funding in the bulk-funding
category to cover the EL. Combined ELs of WAs associated with a
funding category cannot exceed the funding available in that category (see
section 5.10).
5-69
The CO issues the WA and contract
finding modification to the
contractor.
The WAM establishes the EL as the
funding ceiling for the WA.
MAY 31. 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Contractor invoices must identify funding category and activity and site
identifier codes. This ensures that the genetically obligated costs are
expended site-specifically. The WAM, PO, and CO ensure that the con-
tractor invoices in accordance with the site-specific invoicing require-
ments in the contract's Reports of Work.
JVAM> - Establishes ELs for WAs using WAF.
- Indicates funding category and activity and site identifier codes
on the WAF.
Monitors combined ELs for WAs under a funding category to
ensure that they do not exceed funding available in that cat-
egory.
Ensures that the contractor is notified on the WAF of the
activity funding category and site identifer codes to use for
various WAs when invoicing.
Ensures that invoices contain specific activity and site codes
and draw down from the appropriate bulk-funding categories.
Ensures that combined ELs for WAs under a funding category
do not exceed the funding available in that funding category.
Ensures that invoices contain specific activity and site identifier
codes and draw down from the appropriate bulk-funding
categories.
5,8.3
The required, core, and noncore elements of RAC guidance for WA
funding are identified in Exhibit 5-24. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
5-70
MAY 31, 1995
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CHAPTER 6 « ISSUING AND MANAGING WORK ASSIGNMENTS
| Required
Site-specific funding of RA and completion-form WAs, including program support
(PS) completion-form WAs
Use of Form 1900-8, PR, for funding actions
CO assurance that WA obligations do not exceed contract funding
CO issuance of funding modification
Use of PS (other support), site characterization, enforcement, and removal bulk-
funding categories
Core
Use of ELs to keep WA expenditures within budget projections
PO and CO assurance that combined ELs for WAs in a bulk-funding category
never exceed the funding available in that category
WAM, PO, and CO monitoring to ensure contractor compliance with ELs
Noncore
The Regions may each institute their own methods and system for tracking WA
funding and ELs. 51-033-1038
Exhibit 5-24, Required, Core, and
Noncore Elements of Work
5-71
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
Establishing and Changing the
Expenditure Limit
SECTION
MAY 31, 1095
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
EL Expenditure Limit
LOE Level of Effort
PO Project Officer
RAC Response Action Contract
TO Technical Direction
TDM Technical Direction
MsmoiHndum
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WP Work Plan
5.9 Establishing and Changing the Expenditure Limit 5-73
5.9.1 Process for Establishing and Changing the Expenditure Limit 5-75
Step 1 Preparing the WAF to Establish or Change the EL 5-75
Step 2 Reviewing the EL Change 5-76
Step 3 Approving the EL Change 5-77
Step 4 Notifying Contractor of EL Change 5-77
5.9.2 Preparing the Work Assignment Form to Change the
Expenditure Limit 5-78
5.9.3 Required, Core, and Noncore Elements of Establishing and
Changing the Expenditure Limit 5-78
Exhibits
Exhibit 5-25 Process Flow for Establishing and Changing the
Expenditure Limit 5-75
Exhibit 5-26 Required, Core, and Noncore Elements of Establishing and
Changing the Expenditure Limit 5-78
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,9 Establishing and Changing the Expenditure Limit
This section addresses the use of an expenditure limit (EL) to control the
amount of dollars and hours available to the contractor during the perfor-
mance of a work assignment (WA) and highlights the responsibilities of
the Work Assignment Manager (WAM), Project Officer (PO), and Con-
tracting Officer (CO).
5.9.1
Exhibit 5-25 depicts the process for establishing and changing the EL for
a WA. A step-by-step description of the process follows.
SD Preparing the WAF to Establish or Change the EL
When the WA is issued, the WAM specifies on the work assignment form
(WAF) the tasks that the contractor is authorized to undertake before work
plan (WP) approval. On the WAF, the WAM enters the initial WA EL,
indicating the EL in dollars for completion-form WAs, and dollars and
hours for term-form WAs. The WAM initially limits the EL on a new WA
to allow the contractor to begin work on Task 1, Project Planning and
Support, which includes the scoping meeting, writing the WP, and related
administrative activities. The WAM also may recommend setting the EL
Prepares
PO
(AFtoseM
r change /
WAEL V
Ofc^ ^^^
,
Reviews EL
and signs
WAF
1 J
Deceives Receives
pyofWAF copy of WAF
Approves EL and
signs WAF
:
•
Distributes
WAF
Exhibit 5-25. Process Flow for
Expenditure Limit
51-03M3I
5-75
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
to include portions of certain technical tasks if work must start immedi-
ately.
When the WP budget is approved, the WAM generally recommends
increasing the EL to allow the contractor to start technical work on all or a
portion of the WA tasks. The WAM adjusts the EL on the WAF following
WP approval.
During WA performance, the WAM recommends increasing or decreasing
the EL by preparing a WAF. If the EL exceeds the WP-approved budget,
the WAM must provide adequate justification to the CO in section 5 (EPA
Comments) of the WAF. The EL for an individually funded WA cannot
exceed the available funding in the WA. The WAM forwards the WAF to
the PO for review.
- On WAF for new WA, specifies the task(s) that contractor can
undertake before WP approval.
- Recommends EL on WAF for new WA to allow contractor to
start specified tasks.
- At WP approval, recommends increasing EL to allow contractor
to start technical work on specified tasks.
- Adjusts the EL on the WAF prepared for WP approval.
- Prepares WAF to increase or decrease the EL.
For bulk-funded WAs:
- Provides justification on WAF if the EL exceeds WP-approved
budget.
For individually funded WAs:
- Ensures that the EL is within WA funding.
SB Reviewing the EL Change
The PO reviews the EL change and signs and forwards the WAF to the CO.
The PO verifies that the EL is within the WP-approved budget or that an
adequate explanation is provided to justify exceeding the WP-approved
budget. For bulk-funded WAs, the PO ensures that combined ELs for WAs
using one of the four bulk-funding categories (program support [other
response], site characterization, enforcement, and removal) do not exceed
the funding for that category. For individually funded WAs, the PO ensures
that the EL is within WA funding.
PO I - Reviews and signs WAF to indicate concurrence.
- Forwards WAF to CO.
5-76
MAY 31, 1995
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CHAPTER 6 » ISSUING AND MANAGING WORK ASSIGNMENTS
For bulk-funded WAs:
- Verifies that the EL is within WP-approved budget or that
adequate explanation is provided to justify overreaching budget.
- Ensures that combined ELs for WAs using a particular bulk-
funding category do not exceed funding in that category.
For individually funded WAs:
- Verifies that the EL is within WA funding.
OQiB Approving the EL Change
The CO reviews the EL change. The CO verifies that the EL is within the
WP-approved budget. If the EL is being increased above the WP-ap-
proved budget, the CO reviews the WAM's explanation and determines
whether it is an acceptable rationale. If not, the CO notifies the PO and
WAM of the problem and they work together to resolve it. For bulk-
funded WAs, the CO ensures that combined ELs for WAs using a particu-
lar bulk-funding category do not exeed the funding for that category. For
individually funded WAs, the CO ensures that the EL is within WA
funding. The CO approves the EL change by signing the WAF.
- Reviews and signs WAF to indicate approval.
For bulk-funded WAs:
- Verifies that the EL is within WP-approved budget or that
adequate explanation is provided for why the EL exceeds the
WP-approved budget.
- Ensures that combined ELs for WAs using a particular bulk-
funding category do not exceed funding in that category.
For individually funded WAs:
- Verifies that the EL is within WA funding.
QQjQ Notifying Contractor of EL Charge
The CO sends the approved WAF with the EL change to the contractor,
and provides copies to the PO and WAM. The contractor signs the WAF
and returns it to the EPA CO to acknowledge receipt.
- Receive copy of the signed WAF
Sends signed WAF to contractor and provides copies to the
WAM and PO.
5-77
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-26. Required, Core,
and Noncore Elements of
the Expenditure Limit
5.9.2 Preparing the Work Assignment Form to Change the Expenditure Limit
The detailed steps to complete the WAF are discussed in section 5.6.2,
"Completing the Work Assignment Form." A sample WAF appears in
Exhibit 5-13, "EPA Work Assignment Form ." To prepare the WAF to
establish or change the EL, the WAM completes the WAF as follows:
• In WAF Section 2, Description of Action, mark "Set/Revise Expendi-
ture Limit."
• In WAF Section 3, Budget Information, under "Expenditure Limits,"
enter the new dollar amount and for term-form WAs, the number of
hours (level of effort) that is being set for the WA.
• In WAF Section 6, Approvals, the WAM, PO, and CO sign the WAF.
5.9.3
Expenditure Limit
The required, core, and noncore elements of RAC guidance for establish-
ing and changing the EL are identified in Exhibit 5-26. Chapter 1 pro-
vides definitions of required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
Establishment of an EL to set dollar and hour limits for a term-form WA and to
set dollar limits for a completion-form WA
Regional monitoring to ensure that the contractor does not exceed WA ELs
CO authorization to set and change EL
CO approval of ELs that exceed the WP-approved budget
Core
Use of TO to increase or reduce ELs during the course of WA performance
Use of the WAF to document changes to ELs
Identification and explanation of any situation where the EL exceeds the
WP-approved budget
Noncore
The Region may set the EL dollars and hours limits for individual WAs as deemed
appropriate to pace and control the work.
5I-033-127A
5-78
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Issuing Mnical Direction
SECTION
5.10
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
PO Project Officer
SOW Statement of Work
TO Technical Direction
TDM Technical Direction
Memorandum
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WP Work Plan
5.10 Issuing Technical Direction 5-79
5.10.1 How to Issue Work Assignment Technical Direction 5-81
Step 1 Identifying Need for and Issuing Technical Direction 5-82
Step 2 Reviewing TDM 5-83
Step 3 Modifying TD 5-83
5.10.2 Completing the Work Assignment Form to Issue Technical
Direction 5-83
5.10.3 Required, Core, and Noncore Elements of Issuing Technical
Direction 5-84
Exhibits
Exhibit 5-27 Process Flow for Issuing Work Assignment Technical
Direction 5-81
Exhibit 5-28 Required, Core, and Noncore Elements of Issuing
Technical Direction 5-84
MAY 31, 1905
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CHAPTER 5 • ISSUING AND MANAQINQ WORK ASSIGNMENTS
5,10 Issuing Technical Direction
This section describes the procedures for issuing technical direction (TD)
for Response Action Contract (RAC) Work Assignments (WAs). It as-
sumes that at the beginning of the contract, the Contracting Officer (CO)
has granted authorization for the Project Officer (PO) and Work Assign-
ment Managers (WAMs) to issue WATD. The responsibilities of the
WAM, PO, and CO in issuing TD are highlighted.
5.10.1
Any type of written TD documentation is considered to be a "technical
direction memorandum" (TDM). A work assignment form (WAF) is the
recommended vehicle for providing TD to the contractor. However, the
Region may use other types of written documentation for TD (see step 1
below). Regardless of the form used, the TD must fall within the scope,
budget, and schedule of the approved WA work plan (WP). Otherwise, a
WA amendment is required (see section 5.11).
Exhibit 5-27 depicts the process of preparing and issuing TD. A step-by-
step discussion of the process follows.
TDM
PO
\^S
I
Issues TDM
to contractor
and sends copies
to PO and O)
|
j
i
!
/~\ !
S ^. :
IU
Receives TDM
and implements
direction
I
Modifies TD or
initiates WA
amendment
(section 5.11)
| No
I
I
I
!
Is TDM within
WA scope and
schedule?
51-033-25D
Exhibit 5-27. Process Flow for
Issuing Work Assignment
Technical Direction
5-81
MAY 31, 1905
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
The WAM may issue TD verbally
and follow up with a TDM within
five days.
BBffl Identifying Need for and Issuing Technical Direction
The WAM identifies the need for TD from his or her knowledge of site
activity or from contractor, PO, or CO input. All TDM must clearly
identify general WA information, such as the contractor and contract
number, effective date of the TD, the WA number, project name, site, and
any specific tasks or deliverables of concern identified in accordance with
the WA statement of work (SOW) or approved WP. This information is
critical in maintaining appropriate records.
Generally the WAM prepares a WAF to transmit the TD to the contractor
(see section S.I0.2), although other TDM forms such as letters and
memoranda are acceptable. The WAM attaches to the TDM any additional
documentation needed to clarify the TD. Task and subtask information,
for example, may be addressed in attachments.
The WAM may discuss the TD with the PO or CO before issuing it to the
contractor to ensure that the TD:
• provides clear direction that assists the contractor in accomplishing the
WASOW
• comments on or approves WA reports or other deliverables if appli-
cable
• does not institute additional work outside the scope of the contract,
delivery order, or WA
• does not constitute a change as defined in the "CHANGES" clause
• does not increase or decrease the approved WP level of effort or budget
• does not change any of the express terms or conditions of the contract,
delivery order, or WA
• does not alter the WA period of performance
The WAM may issue TD to the contractor verbally. The WAM must
maintain a record of all verbal TD. This record may include telephone
logs or other communication records. All verbal TD must be followed
with TDM within five calendar days to document the verbal direction and
avoid the potential for contractor misinterpretation.
The WAM maintains a copy of all TDM sent to the contractor, and
forwards copies of TDM to the PO and CO for their review.
- May consult with PO or CO regarding TD before issuance.
- Issues TD within WA scope and budget.
- Prepares documentation for all TD provided to the
contractor.
- Provides a copy of TDM to the PO and CO.
- Maintains copies of all TD records, including documentation
supporting verbal TD.
5-82
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
- Provide guidance on the scope and impact of WAM-
issued TD as requested by WAM.
BBS Reviewing TDM
The PO and CO review the TDM to ensure that the TD is within the scope
and budget of the WA, and that the TD was provided in accordance with
the TD clause of the contract. If there are no problems evident with the
TD, the PO and CO file their TDM copies appropriately and do not take
any further action.
- Review TDM to ensure it is within WA scope and budget and
complies with contract-specified TD requirements of the WA.
BESH Modifying TD
If the PO or CO believes that the TDM exceeds the contract-specified TD
parameters, they may work with the WAM to issue new TD or prepare a
WAF to amend the WA as appropriate. If the PO or CO requests the WAM
to prepare new TD, the WAM should follow the guidelines presented in
step 1 ensuring that the new TD corrects the original deficiencies. If the
PO or CO believes that a WA amendment is required, the WAM should
follow the guidelines presented in section 5.11 to prepare an amendment.
May issue new TD to modify original TD.
May prepare a WA amendment.
Work with WAM to issue new TD or prepare a WA amendment
to resolve PO- or CO-identified TD issues.
5.10.2 Completing the Work Assignment Form to Issue Technical Direction
A detailed procedure for completing the WAF can be found in section
5.6.2 along with a sample copy of a WAF (Exhibit 5-13). To issue TD, the
WAM or PO should complete the WAF as follows:
• In WAF section 2, Description of Action, mark "Technical Direction
Memorandum."
• In WAF section 6, Approvals, the WAM, PO, and CO sign the WAF.
• Include any necessary attachments to the WAF for TD. The informa-
tion on the WAF must address the entire WA. Task and subtask infor-
mation must be addressed in the attachments. The WAF serves as a
status report on the entire WA and must not be used to report details
5-83
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-28. Required, Core,
and Noncore Elements of
Issuing Technical Direction
below the WA level, except in section 5, EPA Comments.
5.10.3 Required, Core, and Noncore Elements of Issuing Technical Direction
The required, core, and noncore elements of RAC guidance for issuing
TD are identified in Exhibit 5-28. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
Required
Issuance of TD only by the CO or authorized representatives, the PO and WAM
Issuance of TD that is within the scope of the contract and WA and WP approved
budget
Issuance of TD in writing
Issuance of written TD within five days following verbal TD
Core
Provision of contract-level TD by PO or CO; provision of WA-level TD by WAMs
Inclusion of contract number, contractor, WA number and name, site number and
name, effective date of TD, and appropriate task/subtask identification on the
TDM
Provision of TDM copies to PO and CO
Noncore
Although use of the WAF is strongly recommended, the Region may use written
documentation other than a WAF (such as a letter or memorandum) to document
TD.
51-03M5A
5-84
MAY 31, 1996
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CHAPTER 5 « ISSUING AND MANAQINQ WORK ASSIGNMENTS
Amending the Work Assignment
SECTION
5.11
May 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
IGCE Independent Government
Cost Estimate
LOE Level of Effort
PO Project Officer
PR Procurement Request
RA Remedial Action
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAF Work Assignment Form
WAM Work Assignment Manager
WP Work Plan
5.11 Amending the Work Assignment 5-85
5.11.1 HowtoAmend the Work Assignment 5-87
Step 1 Preparing the WAF Package for the WA Amendment 5-88
Step 2 Reviewing WAF Package for the WA Amendment 5-88
Step 3 Approving WAF Package for the WA Amendment 5-88
Step 4 Receiving Revised WP 5-89
Step 5 Reviewing and Approving Revised WP 5-89
5.11.2 Changes in a Remedial Action Work Assignment 5-89
Step 1 Constructor Identifies Change and Informs Prime Contractor 5-90
Step 2 Prime Contractor Identifies Change and Notifies WAM, PO, and CO 5-91
Step 3 Issuing WA Amendment 5-91
Step 4 Contractor Modification of Subcontract 5-91
5.11.3 Preparing the Work Assignment Form to Amend the
Work Assignment 5-91
5.11.4 Required, Core, and Noncore Elements of Amending the Work
Assignment 5-92
Exhibits
Exhibit 5-29 Process Flow for Amending a Work Assignment 5-87
Exhibit 5-30 Process Flow for Issuing a Change Within a Remedial
Action Work Assignment 5-90
Exhibit 5-31 Required, Core, and Noncore Elements of
Amending the Work Assignment 5-92
MAY 31. 1095
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CHAPTER 5 • ISSUING AND MANAOINQ WORK ASSIGNMENTS
5,11 Amending the Woik Assignment
This section describes the procedures for amending a work assignment
(WA) and highlights the activities of the Work Assignment Manager
(WAM), Project Officer (PO), and Contracting Officer (CO). Construction
changes in a remedial action (RA) WA are addressed in this section as a
separate process.
5.11.1 How to Amend the Woik Assignment
The WA must be formally amended if the WA's overall scope changes or
if tasks are modified or added to or removed from the WA. WAs also are
amended when funds or level of effort (LOE) above the work plan (WP)
approved budget are needed to complete the WA, or when funds or LOE
need adjustment. When a WA is amended, the steps illustrated in Exhibit
5-29 must be followed. A step-by-step explanation of the process follows
the exhibit.
PO
Prepares
WAF package
for
amendment
I
1
Reviews WAF
package for
amendment
I
1
!
!
Reviews and
„ approves WAF
package for
amendment
Issues WA
amendment and
funding modifi-
cation if needed
Follow WP approval process in section 5.7
i
i
!
i
|
i
|
!
|
1 Submits "wised
1 WPtoCO
:
!/^\
L/ Receives \
fh/VP approval 1
SI-03W9A
Exhibit 5-29. Process Flow for
Amending a Work Assignment
5-87
May 31, 1993
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
EEffl Preparing the WAF Package for the WA Amendment
Based on needed changes in the LOE, scope, or cost of the WA, the WAM
prepares a work assignment form (WAF) package for the WA amendment
(see section 5.11.3 and Exhibit 5-13, which provides a sample copy of a
WAF). The WAF package should include:
• a WAF (see section 5.11.3)
• the amended WA statement of work (SOW)
• the independent government cost estimate (IGCE) if changes exceed-
ing $25,000 are involved
• a procurement request (PR), if necessary, for individually funded WAs
The WAM forwards the WAF package to the PO.
- Prepares WAF package for the WA amendment.
- Forwards WAF package to PO.
EBB Reviewing WAF Package for the WA Amendment
The PO reviews the WAF package and verifies that the WAF, IGCE, and
PR have been completed correctly . The PO also reviews the amended WA
SOW to ensure that the tasks outlined are within the overall scope of the
RAC SOW.
The PO determines whether the additional tasks are appropriate under the
existing WA or would be performed more effectively under a new WA.
Scope growth may indicate the beginning of a new phase of the project
and should be addressed by a new WA. If this occurs, the PO informs the
WAM that a new WA should be issued and instructs the WAM to submit
the necessary documents associated with issuing a new WA (see section
5.6).
•i
- Reviews WAF package for the WA amendment and verifies that
the WAF, IGCE, and PR are completed properly.
- Determines whether tasks should be handled under an existing
or new WA.
- Signs WAF to indicate concurrence.
EHH Approving WAF Package for the WA Amendment
The CO reviews and approves the WAF package. The CO may request the
PO or WAM to clarify WA amendment issues prior to approval. The CO
forwards the approved WAF and the amended WA SOW to the contractor
after all issues have been resolved. If funding is associated with the
6-88
MAY 31, 1905
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Wage Rates and Surety Bonds for
Remedial and Non-Time-Critical
Removal Action Subcontracts
SECTION
MAY 31. 1005
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
DBA Davis-Bacon Act
DOL Department of Labor
FAR Federal Acquisition
Regulation
NTCR Non-Tln»Crlfcal Removal
PO Project Officer
RA Remedial Action
RAC Response Action Contract
SCA McNamara-O'Hara Service
Contract Act
SF Standard Form
5.12
Removal Action Subcontracts 5-93
5.12.1 Determination of Wage Rates for Remedial and Non-Time-Critical
Removal Action Subcontracts 5-95
Step 1 Identifying the Proper Wage Rate Law 5-95
Step 2 Notifying the CO of Wage Determinations 5-96
Step 3 Reviewing Wage Rates 5-98
Step 4 Incorporating Wage Rate Determinations 5-98
5.12.2 Performance and Payment Bonding of Contractors 5-98
Step 1 Determining Bond Requirements 5-98
Step 2 Determining Penal Amounts of Performance and Payment Bonds 5-99
Step 3 Requesting Contractor to Provide Bond 5-100
Step 4 Furnishing of Bonds 5-100
5.12.3 Required, Core, and Noncore Elements of Wage Rates and Surety
Bonds for Remedial and Non-Time-Critical Removal Action
Subcontracts 5-100
Exhibits
Exhibit 5-32 Process Flow for Identifying Wage Rates for
Remedial and Non-Time-Critical Removal Action
Subcontracts 5-95
Exhibit 5-33 Decision Tree for Identifying Wage Rates for
RA and NTCR Subcontracts 5-97
Exhibit 5-34 Process Flow for Performance and Payment Bonding
of Contractors 5-99
Exhibit 5-35 Required, Core, and Noncore Elements of Wage Rates
and Surety Bonds for Remedial and Non-Time-Critical
Removal Action Subcontracts 5-101
MAY 31. 1995
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
5.12 Wage Rates and Surety Bonds for Remedial and Non-Time-
Critical Removal Action Subcontracts
This section describes the requirements for wage rates and surety bonding
for remedial action (RA) and non-time-critical removal (NTCR) action
subcontracts under Response Action Contracts (RACs).
5.12.1
Removal
Action Subcontracts
The prime contractor identifies whether each RA or NTCR subcontract is
a "construction" contract or a "service" contract and applies the proper
wage rates. Exhibit 5-32 outlines the steps for identifying wage rates for
RA or NTCR subcontracts. A step-by-step explanation of the process
follows.
The prime contractor identifies which wage rate law applies to the sub-
contract. The Davis-Bacon Act (DBA) is the prevailing wage law for
PO
subcontract is
subject to DBA
orSCA
Works with CO to ensure
proper labor
classifications and wage
rates are used
Assists contractor in
obtaining necessary
from DOL
Notifies CO of
appropriate wage
determinations or
requests wage
determination if needed
Reviews wage
determinations for
accuracy and
compliance
Incorporates wage
determinations into RA
and NTCR subcontracts
Exhibit 542. Process Flow for
Remedial and Non-Time-Critical
Removal Action Subcontracts
5-95
51-03M4F
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
construction workers; the McNamara-O'Hara Service Contract Act (SCA)
is the wage law for government contractor employees who provide
services. When a subcontract requires both construction and service
elements, the prime contractor uses the primary purpose of the subcon-
tract to determine the applicable wage rate law. When the subcontract is
primarily for service, but has elements of construction, and the construc-
tion is substantial and segregable, then DBA applies to construction
activities and SCA applies to service activities. However, if the contractor
is primarily a construction contract with some service elements, only
DBA applies.
Exhibit 5-33 shows the decision process that the prime contractor follows
when identifying wage rates for RA and NTCR subcontracts.
HHB Notifying the CO of Wage Determinations
The prime contractor notifies the Contracting Officer (CO) before issuing
the solicitation of the DBA wage determinations that will be used, by
providing the CO with a list of wage rates obtained from the Department
of Labor's (DOL's) "General Wage Determinations issued under Davis-
Bacon and Related Acts," (Federal Acquisition Regulation [FAR] 22.404-
1). If the prime contractor does not have a copy of "General Wage Deter-
minations," it may request that the CO provide it. If an applicable pub-
lished wage determination does not exist, the prime contractor gives the
CO notice sufficient for the CO to request a wage determination from the
DOL (FAR 22.404-3) before subcontract solicitation. The prime contractor
then forwards to the CO a Standard Form (SF) 308, "Request for Determi-
nation and Response to Request," with the applicable labor classifications.
Service Contract Act Wage Determinations
When the prime contractor determines that a subcontract under an RA or
NTCR action is subject to the SCA, the prime contractor forwards an SF
98/98a, "Notice of Intention to Make a Service Contract and Response to
Notice," to the CO. The DOL's "SCA Directory of Occupations," which
contains standard job titles and descriptions for many common service
employee occupations, can be used to complete the form.
- Provides DOL publication listing wage rates, at
contractor request.
- Receives list of wage rates from contractor
- Receives SF 308 from contractor when contractor has
requested wage determination
- Receives SF 98/98a from contractor when its
subcontract is subject to the SCA
5-96
MAY 31, 1095
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CHAPTER S • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-33. Decision Tree for Identifying Wage Rates for RA and NTCR Subcontracts
Construction
only
WAM
RD
Prime decision to subcontract) | Prime (RAC contractor) subcontracts |
Neither SCA nor DBA
rates/provisions apply
CO reviews subcontract in
accordance with the FAR
Prime (RAC contractor) determines
principal purpose of the subcontract
Dismantling,
removal, or
demolition
j [Choose one)
Is there further federally
construction anticipated that
is not incidental to the
dismantling, removal, or
demolition?
Yes
DBA rates/
provisions apply to
entire subcontract
No
Providing services
with elements of
construction
No
Are the elements of
construction work
segregate? Can they be
physically or functionally
separatee! from other work
under the subcontract?
Yes
Are the segregate
construction elements
substantial if they are
considered in addition to all
other construction under the
subcontract?
No
SCA rates/
provisions apply to
entire subcontract
Yes
DBA rates/provisions
apply to construction
activities only; SCA
rates/provisions apply for
service activities
Construction with
elements of
services
DBA rates/provisions
apply to entire
subcontract
Prime requests SCA or DBA wage determination from the CO; CO reviews and provides consent to the subcontract
in accordance with the FAR I
5-97
51-03W5E
MAY 31. 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
When DBA wage determinations are unpublished, the CO verifies the
information on the SF 308 with the prime contractor and verifies the
requested labor classifications with the Project Officer (PO), then for-
wards the SF 308 to the DOL for wage determination. After the DOL
issues those wage determinations, the CO incorporates them into the list
of wage rates originally sent to the CO by the contractor and reviews all
DBA wage rates for accuracy and compliance with the law.
For all SCA wage determinations, the CO reviews the SF 98/98a, ensures
that the classifications requested are consistent with the work to be
performed, and forwards the SF 98/98a to the DOL's Wage and Hour
Division. The CO may need to discuss with the PO whether, from a
technical standpoint, the proposed labor rates are reasonable for the type
of services required. When the DOL responds to the SF 98/98a, the CO
reviews the SCA wage rates for accuracy.
- Works with CO to ensure that proper labor classifications and
wage rates are used.
- Helps contractor obtain necessary wage rate determinations
from DOL.
- Reviews contractor wage rate determinations for accuracy and
compliance with the law.
EHUD Incorporating Wage Rate Determinations
The applicable DBA and SCA wage determinations are incorporated into
the contract proposal issued by the prime contractor and into all subse-
quent RA or NTCR subcontract documents.
5.12.2 Performance and Payment Bonding of Contractors
The process by which contractors furnish bonds for surety to the govern-
ment is depicted in Exhibit 5-34. A step-by-step explanation of the
process follows.
IOJI Determining Bond Requirements
The CO determines whether the Miller Act applies. Any government
contract and subcontract for substantial and segregable construction
exceeding $25,000 is subject to the Miller Act, a surety bonding law. If so,
the CO follows the bonding requirements. If not, the CO decides whether
surety bonding is warranted based on a judgment of the risks involved and
the government's interests.
5-98
MAY 31, 1905
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Subcontractor
Determines
that bonding
will be
required
Will CO
allow
subcontractor to
provide bond?
Furnishes bonds or
for subcontractor to
provide bond
No
.
I
Contractor
furnishes
Subcontractor
furnishes bond
t
51-03W9F
- Determines bond requirements.
EflUB Determining Penal Amounts of Performance and Payment Bonds
Performance Bonds
If the Miller Act applies to a contract, the CO determines the penal
amount of the performance bond by evaluating the risks associated with
the project and the estimated cost of the construction activity. The penal
amount of performance bonds should be 100% of the original contract
price unless the CO determines that a lesser amount is adequate for the
government's protection. The CO may determine that the penal amount of
the performance bond is zero. The net effect of such a determination is
elimination of the performance bond (FAR 28.102-2). If the Miller Act
does not apply, the CO may still determine the need for a performance
bond and establish the amount based on a judgment of the risk to the
government's interest.
Payment Bonds
If the Miller Act applies to a contract, the CO consults FAR 28.102-2 to
determine the required payment bond amounts. The amounts listed
include:
5-99
Exhibit 5-34. Process Flow for
Performance and Payment
Bonding of Contractors
MAY 31, 1995
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
Wue Engineering
SECTION
5.13
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
DCA Design and Construction
Advisor
FAR Federal Acquisition
NTCR Non-Time-Cntical Removal
PO Project Officer
RA Remedial Action
RAC Response Action Contract
RD Remedial Design
TDM Technical Direction
Memorandum
VE Value Engineering
VECP Value Engineering Change
Proposal
VEP Value Engineering Proposal
WA Work Assignment
WAM Work Assignment Manager
5.13 Value Engineering 5-103
5.13.1 Value Engineering During Remedial Design 5-105
Step 1 Contractor Conducts the VE Screen 5-105
Step 2 Determining Whether a VE Study is Needed 5-105
Step3 Performing the VE Study 5-1Q6
Step 4 Reporting VE Study Results 5-107
StepS Accepting VEPs to Incorporate into Final Design 5-108
5.13.2 Value Engineering During Remedial Action 5-108
Stepl Receiving a VECP 5.1 Q8
Step 2 Reviewing a VECP 5-1Q9
StepS Implementing a VECP 5-110
5.13.3 Required, Core, and Noncore Elements of Value Engineering 5-110
Exhibits
Exhibit 5-36 Process Flow for Value Engineering During Remedial
Design
. 5-106
Exhibit 5-37 Process Flow for Value Engineering During
Remedial Action 5-109
Exhibit 5-38 Required, Core, and Noncore Elements of Value
Engineering s-m
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,13 Value Engineering
This section describes the value engineering (VE) process under Response
Action Contracts (RACs). VE services typically are performed during
remedial designs (RDs) and remedial actions (RAs), and may be per-
formed during non-time-critical removals.
5.13.1 Value Engineering During Remedial Design
The Work Assignment Manager (WAM) ensures that a VE screening and a
VE study, if appropriate, is conducted on each Fund-financed RD. The
VE process during RD is depicted in Exhibit 5-36. A step-by-step de-
scription of the process follows.
ETCH Contractor Conducts the VE Screen
A VE screen is done for all RDs under RACs. The contractor conducts a
VE screen during the preliminary design phase, immediately after the 35
percent design state is completed, or as directed in the work assignment
(WA). The initial VE screening identifies the potential for cost savings in
standard design projects and for projects with high-cost, non-industry-
standard items or unusual design.
- Ensures VE screen is done for every RD.
ETCH Determining Whether a VE Study Is Needed
The WAM reviews the results of the VE screen to determine whether a VE
study should be undertaken. The WAM may request assistance from the
Design and Construction Advisor (DCA) in reviewing the VE screen
report and determining whether a VE study should be performed. If the
VE screen identifies significant potential cost savings, a VE study may be
authorized. A VE study may not be appropriate for a simple design,
whereas a complex design may require a VE study at a level of effort
between 200 and 500 hours. If the WAM decides that a VE study is
warranted and believes that the contractor can perform an independent
and objective study, the WAM prepares a technical direction memoran-
dum (TDM) (section 5.10) directing the contractor to undertake the VE
study.
- Determines if VE study is necessary.
- Issues TDM to initiate VE study (if contractor will perform
study).
5-105
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-36. Process Flow for
Value Engineering During
Remedial Design
Preliminary
Design Phase
RD30%
complete
Conducts
VE screen
Intermediate
Design Phase
RD 30-60%
complete
Prefinal/Final
Design Phase
RD 60-90%
complete
Recom
changes7
No further
action
Review results of
VE study and recommend
I Incorporates
accepted
VEPs
51033-30F
ISH Performing the VE Study
The VE study is initiated during the intermediate design phase of the RD.
If the contractor is performing the VE study, the contractor selects a VE
study team leader to assemble a multidisciplmary team with VE experi-
ence and technical knowledge to conduct the review. If the contractor
cannot independently and objectively review the RD, the contractor may
subcontract the VE study to an outside firm or the WAM may enlist the
U.S Army Corps of Engineers to perform the study. Regardless of which
5-106
MAY 31. 1095
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
party performs the study, the Contracting Officer (CO) receives a prelimi-
nary list of VE team members for approval. The list should include
re"sum6s and evidence of the team leader's qualifications. The VE study
team performs the six phases of the VE study—information, speculation,
analysis, development, presentation, and implementation—in accordance
with the Guidance Document for Value Engineering Review During
Remedial Design, EPA S40. During the VE study, the team leader may
communicate with the WAM regarding different aspects of the design.
- Ensures that the RAC contractor can conduct independent VE
study or subcontracts with an entity capable of independent VE
study.
- Communicates with VE study team during process.
- Approves VE team members.
BED Reporting VE Study Results
The VE study team leader prepares a final written report containing the
study or review cost findings and recommendations, and value engineer-
ing proposals (VEPs) resulting from the study. In accordance with Federal
Acquisition Regulation (FAR) 52.248-2, each VEP must contain:
• A description of the difference between the existing and proposed
designs, the comparative advantages and disadvantages of each, a
justification when an item function is being altered, the effect of the
change on system or facility performance, and any pertinent objective
test data.
• A list and analysis of design criteria or specifications that must be
changed if the VEP is accepted.
• A separate detailed estimate of the impact on project cost of each VEP,
if accepted and implemnted by the government.
• A description and estimate of costs the government may incur in
implementing the VEP, such as design change cost and test and evalua-
tion cost.
• A prediction of any effects the proposed change may have on life-cycle
cost.
• The effect the VEP will have on design or construction schedules.
The VE study team submits the VE study report to the WAM.
- Receives VE study report.
5-107
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Accepting VEPs to Incorporate into Final Design
The WAM and Project Officer (PO) review the results of the VE study and
all VEPs and recommend rejection or acceptance. The CO reviews VE
study results and VEPs and may request that the DCA review them as
well. The CO authorizes the contractor to incorporate VE study recom-
mendations or VEPs. Approved VEPs are implemented through WA
amendment (see section 5.11). The contractor then incorporates accepted
VEPs into the final design.
- Review results of VE study and VEPs and recommend
acceptance or rejection of VEPs.
- Reviews results of VE study and VEPs and WAM and PO
recommendations and makes determination to accept or reject
VEPs.
- Authorizes contractor to incorporate accepted VE study recom-
mendations or VEPs.
- Implements VEP through WA amendment.
5.13.2 Value Engineering During Remedial Action
VE during RA provides for sharing of savings realized from accepted VE
change proposals (VECPs) between EPA and the construction subcontrac-
tor as an incentive for the construction subcontractor to voluntarily
develop and submit VECPs. To ensure the VE program's effectiveness and
integrity, individuals and firms with previous involvement in the RD or
other project VE activities should not participate in the development and
preparation of VECPs. Since the prime contractor and Team subcontrac-
tors cannot perform construction work under RACs, they are excluded
from any cost-sharing resulting from VECPs. Only the subpool subcon-
tractor that performs construction work can share in cost savings resulting
from VECPs. The RAC prime contractor should include a VECP clause
(FAR 52.248-3 or similar clause) in its construction subcontracts. The VE
process during RA is depicted in Exhibit 5-37. A step-by-step description
of the process follows.
ODD Receiving a VECP
The VECP is the construction subcontractor's proposal to change contract
requirements to reduce the price of the construction contract without
sacrificing quality or functionality. The construction subcontractor
submits a VECP through the prime contractor to the CO.
5-10B
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Notifies
contractor
ofVECP
approval/
disapproval;
issues WA
amendment
Initiates
and prepares
VECP
IfVECP
approved,
issues change
order to
subcontractor
Construction
Subcontractor
51-033-31E
The VECP must include the following elements:
• description of the proposed change and the contract requirement
• iternization of the contract requirements that must be changed to
accomodate the proposed change
• estimate of the reduction in construction costs that will be realized if
the proposal is adopted
• prediction of any savings (or cost increase) that the change may have
on operations, maintenance, or property (for determining life-cycle
costs)
• time by which the proposal must be implemented by the party contract-
ing for the RA
- Receives VECP.
BUSH Reviewing a VECP
The WAM, PO, CO, and original project designer review the VECP while
the subcontractor continues RA construction activity as scheduled. The
DCA also may review any VECPs. The original project design team is
usually the RAC contractor or a Team subcontractor and will be available
to review the VECP. The contractor's VECP review efforts are reimburs-
able under the RAC. A sole-source contract may be used if necessary to
access the original project designer if a contract no longer exists between
the designer and EPA. At a minimum, a VECP should result in a net
capital cost reduction while causing no increase in the total life-cycle cost
of the project and meet the following conditions:
5-109
Exhibit 5-37. Process Flow for
Value Engineering During
Remedial Action
MAY 31, 1905
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
• proposed changes do not alter the remedy selected in the Record of
Decision
• required function, reliability, and safety of the project is maintained
• proposed changes do not result in any contract resolicitation
• proposed changes do not cause undue interruption of contract work
The RAC contractor must consult with the WAM during the VECP review
if a delay in completing the design or construction, an increase in cost, an
impact on the environment or public health, or a change in the basis of
design will result from government acceptance of a VECP. The CO
prepares a final written report containing the study or review cost findings
and recommendations, estimated cost savings, and reasons for rejection of
any recommendations.
PO
- Review VECP.
CO ) . Reviews VECP.
- Prepares written report approving or rejecting all or portions of
the VECP.
BEE Implementing a VECP
The CO sends the approved VECP recommendations to the subcontractor
through the prime contractor. All approved VECPs are implemented
through WA amendments (see section 5.11). The prime contractor then
follows change order procedures to change its contract with the construc-
tion subcontractor to facilitate implementation of the EPA-approved
VECP and cost-share payment. The construction subcontractor imple-
ments the approved VECP (or approved portions of the VECP) as required
in the change order.
^—>
CO J - Sends final VECP report to subcontractor through the prime
contractor.
- Implements approved VECPs through WA amendment.
5.13.3 Required, Core, and Noncore Elements of Value Engineering
The required, core, and noncore elements of RAC guidance for VE are
identified in Exhibit 5-38. Chapter 1 provides definitions of required,
core, and noncore elements and explains Regional responsibilities for
incorporating each element.
5-110
MAY 31. 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Required
Review and evaluation of VE screen to determine whether a VE study is warranted
Review and evaluation of the VE study and any VEPs or VECPs
Issuance of WA amendments to incorporate contractor VEPs and VECPs
Core
None currently defined
Noncore
None currently defined
51-033-169C
Exhibit 5-38. Required, Core, and
Noncore Elements of Value
Engineering
5-111
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Contractor Oversight
SECTION
5.14
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
COI Conflict of Interest
FACO Financial Adrranstratrve
Contracting Officer
PO Project Officer
PS Program Support
QA Quality Assurance
QAO Quality Assurance Officer
RAC Response Action Contract
SOP Standard Operating
Procedure
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
5.14 Contractor Oversight 5-113
5.14.1 Monitoring Overall Contract Performance 5-115
5.14.2 Monitoring Work Assignment Performance 5-117
5.14.3 Required, Core, and Noncore Elements of
Contractor Oversight 5-120
Exhibits
Exhibit 5-39
Required, Core, and Noncore Elements of
Contractor Oversight 5-120
MAY 31, 1995
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
5,14 Contractor Oversight
EPA contractor oversight ensures that response action contractors are
providing goods and services according to contract terms and conditions.
The contract management team—the Work Assignment Manager (WAM),
Project Officer (PO), and Contracting Officer (CO)—are responsible for
overseeing contractor performance to ensure that the contractor complies
with contract and work assignment (WA) requirements. The PO and CO
are responsible for overall contract oversight, and the WAM is responsible
for oversight of his or her WA(s). Other agencies or offices, such as the
Defense Contract Audit Agency, also may play a role in evaluating
contractor compliance under the contract. This section describes only the
roles of the WAM, PO, and CO.
EPA uses the following procedures for contractor oversight:
• reviewing Response Action Contract (RAC) technical and financial
progress reports
• reviewing contractor standard operating procedures (SOPs)
• maintaining regular communication with the contractor
• conducting site visits
• reviewing work plans (WPs)
• reviewing deliverables
This section describes the use of these procedures for contractor oversight
and highlights the responsibilities of the WAM, PO, and CO in contractor
oversight.
5.14.1 Monitoring Overall Contract Performance
The PO and CO are the contract management team members responsible
for monitoring overall contract performance. The PO is responsible for
overseeing technical aspects of contract performance and assisting WAMs
in resolving WA-specific issues that affect contract performance. The PO
also oversees and evaluates contractor performance in Program Support
(PS) WAs, as described in section 5.14.2.
The CO oversees contractor performance to ensure that contractors meet
all contract terms and conditions and provides clarification of contract
clauses as needed. The CO assists the PO and WAM in resolving WA
issues, and, along with the PO, evaluates contractor performance on PS
WAs. Both the PO and CO play key roles in the performance evaluation
process described in Chapter 6.
5-115
MAY 31,1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
In overseeing overall contract performance, the PO and CO:
• review contract plans and reports
• review monthly technical and financial progress reports
• review contractor SOPs
The PO and CO oversee contract performance to ensure that the contrac-
tor takes any necessary corrective actions to bring reports and procedures
in line with contract requirements.
Reviewing Contract Plans and Reports
The PO reviews property reports, comments on proposed subcontracting,
and coordinates with the Quality Assurance Officer (QAO) regarding
review and approval of the contractor's quality assurance (QA) manage-
ment plan. The CO reviews and approves the contractor's conflict of
interest (COI) plan, reviews Financial Administrative Contracting Officer
(FACO) reports, reviews and consents to subcontracts, and reviews
contractual reports and documents.
- Reviews property reports.
- Comments on proposed subcontracting.
- Coordinates with QAO.
- Reviews and approves COI plan.
- Reviews FACO reports.
- Reviews and consents to subcontracts.
- Reviews contractual reports and documents.
WAM, PO, and CO review of monthly RAC technical and financial
progress reports is a key tool for contractor oversight (see Chapter 7 for
information on RAC reports). These reports are used to:
• monitor overall contract performance
• monitor contract expenditures
• monitor progress towards contract completion
• oversee individual WA performance (see section 5.14.2)
• review and approve invoices
PO | - Review monthly RAC technical and financial progress reports.
oT
5-116
MAY 31, 1995
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CHAPTER 6 « ISSUING AND MANAGING WORK ASSIGNMENTS
Reviewing Contractor SOPs
In addition to reviewing RAC progress reports, the CO and PO monitor
overall contractor performance by evaluating contractor SOPs for the
following:
• effective WA management
• document control (see Chapter 11)
• COI checks (see section 2.3.1)
• procurement
• expense reporting
• personnel management
• QA
• health and safety (see section 2.3.11)
The contractor must have these required systems and procedures in
place when the contract is awarded. The contractor is required to update
the procedures and plans throughout the life of the contract. The PO and
CO periodically visit the contractor's management team and site offices
to verify that SOPs are on file, current, and implemented.
PO
- Conduct periodic visits to the contractor's management team
and site offices to verify that SOPs are in place and on file.
- Evaluate the contractor's SOPs.
5.14.2 Monitoring Work Assignment Performance
While the PO and CO monitor overall contract performance, the WAM
oversees WA performance. The WAM evaluates the quality of the
products and services provided by the contractor and notifies either the
PO or CO of any unsatisfactory performance so that proper action can
be taken. The PO generally serves as the WAM and performs these
functions for PS WAs. The WAM should continuously monitor contrac-
tor WA efforts from start to finish by:
• using technical expertise to identify unsatisfactory services or
products that deviate from the statement of work or approved WP
• identifying and documenting deficiencies in contractor services or
products
• keeping informed about contractor activities on the WA
• verifying that the contractor takes appropriate action to remedy
deficiencies
5-117
The contractor must have
required systems and procedures
in place when contract is awarded.
WAMs oversee the timely
completion ofWA requirements and
the quality of products and services
provided.
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
• reviewing contractor personnel qualifications to perform the required
WA tasks
WAMs monitor WA progress and contractor performance via:
• regular communication
• site visits
• WP review
• technical and financial progress report review
• deliverable review
- Oversees timely completion of WA requirements and contractor
performance by conducting site visits.
- Identifies and documents deficiencies in contractor
performance.
- Notifies PO or CO of unsatisfactory contractor performance.
- Verifies that the contractor remedies performance deficiencies.
- Determines if personnel are qualified to perform WA activities.
- May perform WAM role for PS WAs.
- Assists WAM in resolution of performance issues.
PO
Regular Communication
Telephone conversations are usually the primary method of communica-
tion between the WAM and contractor. However, face-to-face meetings
are necessary periodically and when problems develop with the WA.
- Maintains communication with contractor through telephone
and face-to-face meetings.
Site Visits
RACs designate the PO and the WAM as the CO's authorized representa-
tives during site and contractor work inspection. This right can be exer-
cised at any stage or place and can include scheduled or unscheduled spot
checks and site visits. During a site visit, the following items should be
checked:
contractor adherence to schedules
activities completed
assignment of personnel
use of facilities
use of equipment
5-118
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
- Conduct site visits to ensure contractor compliance
with the contract and WA.
WP Review
WPs include a schedule that identifies each step required for WA comple-
tion and the time needed to accomplish that step. Contractor progress can
be measured by comparing WP approved costs, technical approach,
staffing requirements, major milestones, individual tasks, deliverables,
and schedules for completion with actual performance and progress. (See
section 5.7 for more information on WPs.)
\WAiO - Uses approved WP to measure contractor perfomance and
^^ progress.
Technical and Financial Progress Report Review
The CO and PO should ensure that the government receives technical and
financial progress reports from the contractor as specified in the contract.
The progress reports contain specific information about work completed
during the current period, cumulative work, work planned for the follow-
ing period, and significant issues or problems. WAMs and POs monitor
costs by reviewing monthly technical and financial progress reports (see
section 10.4.2). For effective oversight, progress reports should be com-
pared with WPs in a continuous review process.
- Reviews and approves monthly technical and financial progress
reports.
- Ensures that the government receives the contractor's written
progress reports.
- Reviews and approves monthly technical and financial progress
reports.
Q) ) - Ensures that the government receives the contractor's written
progress reports.
Deliverable Review
The WAM should include submission of draft and intermediate versions
of deliverables in the delivery schedule or issue thorough technical
direction so that work is monitored in progress. This is especially impor-
tant on large or critical deliverables. Once delivered, the WAM inspects
and accepts the products or services. The WAM indicates acceptance of
WA deliverables monthly using the WAM Documentation of Invoice
5-119
Progress reports should be
compared with WPs in a continuous
review process.
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 5-39. Required, Core,
and Noncore Elements of
Contractor Oversight
Review and Approval form. The WAM lists the WA deliverables submit-
ted during the month and signs the form to indicate acceptance of the
deliverables received.
If the contractor's final WA products or services do not conform with WA
requirements, the WAM or PO can evaluate the contractor's WA perfor-
mance as unsatisfactory. This allows the government to recoup the provi-
sional base fee already paid to the contractor. The fee process is described
in Chapter 6.
- Includes draft and intermediate versions of deliverables in
delivery schedule.
- Evaluates and accepts deliverables.
- Indicates deliverable acceptance on the WAM Documentation
of Invoice Review and Approval form.
- Evaluates contractor's WA performance against contract
requirements.
5.14.3 Required, Core, and Noncore Elements of Contractor Oversight
The required, core, and noncore elements of RAC guidance for contractor
oversight are identified in Exhibit 5-39. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
| Required
Oversight of contractor performance as needed to ensure that the contractor
complies with all contract requirements
Core
• Ongoing communication between EPA and contractor management regarding
contract and WA progress and difficulties arising during contractor work
performance
• Review of contractor SOPs
• Timely review of contractor reports and deliverables
• Documentation of government acceptance of deliverables
• Timely feedback to contractor regarding performance issues
[ Noncore
The Regions may conduct periodic site visits to contractor program office
and site office(s).
The Regions may each establish their own procedures and division of respon-
sibilities for contractor oversight to meet the required and core elements of guidance.
These procedures should be documented and included in section 5.17.
51-033-124A
5-120
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Site Demobilization
SECTION
5.15
MAY 31, 1095
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FAR Federal Acquisition
Regulation
O&M Operations and
Maintenance
PA Property Administrator
PCO Plant Clearance Officer
PO Project Officer
PRP Potentially Responsible
Party
RA Remedial Action
RI/FS Remedial Investigation/
Feasibility Study
SOW Statement of Work
TO Technical Direction
WA Work Assignment
WAM Work Assignment Manager
5.15 Site Demobilization 5-121
5.15.1 The Site Demobilization Process 5-123
Step 1 Meeting with the Statejribal Government, or PRP 5-123
Step 2 Ensuring Removal of Site Activity Materials and Services 5-123
Step 3 Disposing of Government Property 5-124
Step 4 Restoring Site Appearance 5-125
Step 5 Transferring the Site and its Facilities 5-125
5.15.2 Required, Core, and Noncore Elements of Site Demobilization.... 5-126
Exhibits
Exhibit 5-40 Process Flow for Site Demobilization 5-124
Exhibit 5-41 Required, Core, and Noncore Elements of
Site Demobilization 5-126
MAY 31, 1895
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
5,15 Site Demobilization
This section addresses requirements for contractor demobilization from a
site when a remedial or removal action is complete and the site is being
turned over to the incoming party for operations and maintenance (O&M).
This section highlights the responsibilities of the Work Assignment
Manager (WAM), Project Officer (PO), and Contracting Officer (CO) in
overseeing site demobilization.
Although written specifically for remedial and removal action site demo-
bilization, the information in this section may be used for remedial
investigation/feasibility study (RI/FS) demobilization as applicable. RI/FS
demobilization is performed under the "Field Investigation" task of the
RI/FS work assignment (WA).
5.15.1 The Site Demobilization Process
Site restoration and site responsibility transfer occur when a response or
removal action is complete. Exhibit 5-40 outlines the steps in the site
demobilization process. Steps 2 and 3 may occur concurrently and a step-
by-step explanation of the process follows.
EflUfl Meeting with the State, Tribal Government, or PRP
The WAM meets with the State, Tribal Government, or potentially respon-
sible party (PRP) before site demobilization to discuss any transfer issues.
The WAM must provide the State, Tribal Government, or PRP with any
related O&M manuals and arrange for any orientation necessary for
facility operations. The WAM, in cooperation with the State, Tribal
Government, or PRP, determines O&M site access needs and the actions
necessary to facilitate those needs.
- Meets with the State, Tribal Government, or PRP to discuss
transfer issues.
- Provides O&M manuals to the State, Tribal Government,
or PRP.
- Arranges training for the incoming party.
- Determines O&M site access needs.
ma Ensuring Removal of Site Activity Materials and Services
Before the State, Tribal Government, or PRP takes over the site, the
contractor must remove all unnecessary materials and services. This may
include removing temporary buildings, structures, and site debris; discon-
necting or transferring temporary utilities; and appropriate cleanup/site
restoration.
5-123
The WAM meets with the State,
Tribal Government, or PRP before
site demobilization to discuss any
transfer issues.
MAY 31, 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit WO. Process Flow for
Site Demobilization
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Meets with
Statejribal
Govt,orPRP
re: transfer
Plant Clearance
Officer
Ensures re-
moval of site
activity materials
and services
Submits final
government
property
inventory
Develops and
issues final
government
property
instructions
Disposes of
property/
4|equipment as
instructed by
the PCO
Restores site
appearance
5I-03W6D
The contractor relinquishes responsibility for all site services, such as
utilities, phone, and gas, and requests final readings or bills from the
service companies. This step may occur concurrently with Step 3.
SB Disposing of Government Property
Property and supplies purchased with Superfund monies are subject to
acquisition, control, and disposition (ultimate fate) requirements. These
requirements are specified in Federal Acquisition Regulation (FAR) 45.5
and EPA Property Administration Requirements (June 1994). The WAM,
therefore, can facilitate demobilization by anticipating, early in the
remedial planning phase, the items necessary to complete the remedial
action (RA) and their disposition when the action is complete. When site
5-124
MAY 31, 1995
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CHAPTER 5 « ISSUING AND MANAGING WORK ASSIGNMENTS
work is complete (or at contract termination), the contractor performs a
final property inventory and certifies that the inventory is complete and
that all property is free of contamination.
The contractor submits the final government property inventory to the
Property Administrator (PA) in accordance with FAR 45.508. The CO, PO,
and Contract Property Coordinator determine the items excess to the
needs of the contract, the Superfund program, and EPA. Following this
determination, the Plant Clearance Officer (PCO) develops and issues the
final government property disposition instructions. The contractor dis-
poses of the property as instructed by the PCO. The property usually is
returned to the main contract property pool. Government property disposi-
tion requirements are addressed in greater detail in section 8.2.3.
CWAM) - Anticipates property needs and disposition early in the remedial
planning phase.
- Determines inventory items that are excess to contract needs.
- Receives the final property inventory from the contractor.
- Determines inventory items that are excess to contract needs.
The contractor restores the physical appearance of the site according to
the requirements specified in the remedial or removal action work assign-
ment (WA) statement of work (SOW). If restoration activities are within
the approved scope of the WA, and do not require an increase in WA level
of effort or cost, the WAM provides specific instructions to the contractor
through technical direction (TD). Restoration actions may include only
activities that will restore the site to its condition prior to the beginning of
the WA. Superfund money may not be used to improve the site appear-
ance beyond its prior condition.
CWAM) - Includes site restoration requirements in the WA SOW.
- Provides TD for site restoration.
EmiH Transferring the Site and its Facilities
After the contractor completes remedial and restoration activities, the
WAM inspects the site to ensure compliance with the contract. If any
property remains on site, the PO must certify that the property is required
for the effectiveness of the remedial or removal action.
Site transfer to the State, Tribal Government, or PRP occurs when the
WAM considers the remedial or removal action to be functional and
5-125
Last-minute changes in EPA
policy may affect RAC
MAY 31,1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Site transfer occurs when the
remedial or removal action is
functional and O&M activities
commence.
Exhibit 5-41. Required, Core,
and Noncore Elements of Site
Demobilization
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
O&M activities commence. The transfer takes place according to the
terms discussed in the meeting between the WAM and the incoming party
described in step 1 . The WAM certifies the transfer date in an RA report
to complete the transfer.
- Inspects site activities for contract compliance.
. Determines when the remedial or removal action is functional.
- Certifies site transfer date.
- Certifies that property left in place is part of the remedy.
PO
5.15.2 Required, Core, and Noncore Elements of Site Demobilization
The required, core, and noncore elements of the Response Action Contract
guidance for site demobilization are identified in Exhibit 5-40. Chapter 1
provides definitions of required, core, and noncore elements and explains
Regional responsibilities for incorporating each element.
Required
Ensuring that the contractor performs site demobilization following the completion
of remedial or removal action WAs, in accordance with WA requirements and TO
Core
PO, CO, and PA recommendation regarding equipment disposition
PCO issuance of equipment disposition instructions
Coordination of site turnover to the State or tribal government or PRP
Issuance of TD regarding site restoration activities
Assurance that the contractor has removed equipment and structures, cleaned
up debris, disconnected and transferred responsibility for site utilities, and restored
the site as directed
Noncore
None currently defined
81-03M2A
5-126
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Work Assignment Closeout Procedures
SECTION
5.16
MAY 31, 1905
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO Contracting Officer
FMC-RTP Financial Management
Center at Research Triangle
Park
PA Property Administrator
PCO Plant Clearance Officer
PEB Performance Evaluation
Board
PO Project Officer
RAC Response Action Contract
WA Work Assignment
WACN Work Assignment doseout
Notice
WACR Work Assignment
Completion Report
WAF Work Assignment Form
WAM Work Assignment Manager
5.16
,5-127
5.16.1 The Work Assignment Closeout Process 5-129
Step 1 WA Closeout Notification 5-129
Step 2 Preparing the WACR 5-130
Step 3 Organizing and Retiring WA Records 5-136
Step 4 Disposing of Site-Specific Property 5-136
Step 5 Final WA Invoice and Completion of WA Closeout 5-136
5.16.2 Required, Core, and Noncore Elements of Work Assignment
Closeout Procedures 5-137
Exhibits
Exhibit 5-42
Exhibit 5-43
Exhibit 5-44
Exhibit 5-45
Process Flow for Work Assignment Closeout 5-130
Work Assignment Completion Report (EPA Version) 5-131
Work Assignment Completion Report (Contractor
Version) 5-134
Required, Core, and Noncore Elements of Work
Assignment Closeout Procedures 5-137
MAY 31, 1995
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CHAPTER 6 « ISSUING AND MANAGING WORK ASSIGNMENTS
5,16 Work Assignment Closeout Procedures
This section addresses the procedures for closing out a Response Action
Contract (RAC) work assignment (WA), highlighting the responsibilities
of the Work Assignment Manager (WAM), Project Officer (PO), Contract-
ing Officer (CO), and other involved parties, including the Property
Administrator (PA) and the Plant Clearance Officer (PCO).
5.16.1 The Work Assignment Closeout Process
After a WA is complete, EPA and the contractor both prepare final evalua-
tions of WA performance and determine the final disposition of site records
and property. This process is depicted in Exhibit 5-42 and a step-by-step
explanation follows. Except for the final WA invoice (step 5), these steps
may occur concurrently or in a different order than described here.
EflUfl WA Closeout Notification
When all WA technical activities and deliverables are complete, the WAM
notifies the PO and CO and prepares a work assignment closeout notifica-
tion (WACN) work assignment form (WAF). The WAM completes Item 2
of the WACN WAF, "Description of Action," marking Work Assignment
Closeout Notification and Item 5, "EPA Comments," giving instructions
to the contractor to initiate the closeout activities specified in the WA.
(See Exhibit 5-13 for a copy of the WAF.) These closeout activities
include:
• preparing and submitting the work assignment completion report
(WACR)
• organizing and disposing WA files
• disposing site-specific equipment
• verifying and processing WA charges
The WAM specifies target dates and any additional specific instructions
for completing WA closeout activities in Item S of the WACN WAF. The
WAM may request the contractor to participate in a status meeting(s) to
review WA activities and verify that all required activities are complete.
The WAM forwards the WACN WAF to the PO for review and signature.
The PO forwards it to the CO for review and approval. Finally, the CO
forwards it to the contractor to begin WA closeout activities.
Notifies PO of WA completion.
Prepares a WACN WAF.
May participate in WA status meeting(s) with the contractor.
5-129
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The WACN WAF should designate
target dates and specific
instructions for WA closeout
activities.
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 5-42. Process Flow for
Wort Assignment Closeout
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The contractor-prepared WACR
Junctions as a self-evaluation.
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 543. Work Assignment Completion Report (EPA Version), page 1 of 3
1. SITE NAME. 2. WANO.: 3. STATE:
WORK ASSIGNMENT COMPLETION REPORT (WACR)
4. CONTRACTOR: 5. CONTRACT NUMBER:
6. CONTRACTOR REGIONAL MANAGER- PHONE:
7 WORK ASSIGNMENT MANAGER (WAM): PHONE:
8. PROJECT OFFICER (PO): PHONE:
9. CONTRACTING OFFICER (CO): PHONE:
10. PERFORMANCE PERIOD FROM: TO:
11 WA FORM (Check one) _ TERM _ COMPLETION
:::: = !! = ::: "i = = ::::ii::::ii::::r : - -.-...... s:SS = = :: = ::
PERFORMANCE EVALUATION CATEGORY
12. Check one: _ SITE-SPECIFIC (SS)WA EVALUATION _ PROGRAM SUPPORT (PS) WA EVALUATION
CONTRACTOR PERFORMANCE EVALUATION
13. Check one:
EVALUATION PREPARED BY _ WAM _ PO _ CO
14. OVERALL PERFORMANCE RATING (Check one):
_ UNSATISFACTORY (1) _ SATISFACTORY (2) _ EXCEEDS EXPECTATIONS (3) _ OUTSTANDING (4)
15. ''
16. OVERALL PERFORMANCE EVALUATION:
17 UNUSUAL PROBLEMS/OCCURRENCES AFFECTING CONTRACTOR PERFORMANCE:'
18. BASE FEE AVAILABLE: BASE FEE PAID:
19. PERFORMANCE (AWARD) FEEAVAILABLE*
PERFORMANCE (AWARD) FEE RECOMMENDED? YES NO RECOMMENDED SEE: %
(60-100%)
20 VpKIFicR'EASONVroR'REcb^
(Additional pages may be attached if necessary)
21. EVALUATORSIGNATURE-. DATE:
51-033-1898
5-131
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 543. Work Assignment Completion Report (EPA Version), page 2 of 3
EVALUATION CRITERIA SCORE SHEET
22. PROJECT PLANNING RATING: 1234
• Ability to set schedules and priorities for the accomplishment of all work under the WA
• Regular and effective communication with Agency personnel
• Compliance with contract and WA requirements
• Development of work plan
• Adequacy of HASP and QAMP (PS only)
23. TECHNICAL COMPETENCE & INNOVATION RATING: 1234
• Technical quality of deliverables (SS only)
• Effectiveness and thoroughness of analyses
• Ability to meet work plan goals and objectives
• Creativity and ingenuity in approach
• Ability to support other organizations involved at site
• Adherence to regulations, procedures, and guidelines
24. SCHEDULE & COST CONTROL RATING. 1234
• Development and maintenance of planned schedules and budgets for deliverables
• Ability to minimize and control the cost
• Elimination of duplication of effort
• Quality and timeliness of deliverables
• Timeliness and reasonableness of monthly reports and invoices (PS only)
25. RESOURCE UTILIZATION RATING: 1234
* Effective use of resources
• Suitability of staffing, recruiting, and training of personnel (PS only)
• Appropriateness of professional mix to ensure quality of work while minimizing cost and tame expenditures (SS only)
- Ability to effectively manage subcontractors' costs and resources, eliminate cost duplication by subcontractors
• Ability to assure contract compliance by subcontractor
• Adherence to subcontracting plan
• Ability to effectively monitor subcontractor performance
26. REPORTING RATING: 1234
• Timeliness of deliverables
• Clarity and thoroughness of reports and documents
• Accuracy and completeness of data
27. EFFORT RATING: 1234
• Ability to identify and resolve problems
- Maintenance of regular communication link with Agency personnel and provision of information enabling Agency personnel to keep
abreast of progress
• Thoroughness in dealing with all aspects of the project/ program
28. SMALLAND SMALL DISADVANTAGED BUSINESS UTILIZATION RATING. 1234
- Actions taken to increase participation of small businesses and SDBs
• Actions taken to promote mutual beneficial relationships with small businesses and SDBs
• Actions taken to develop technical and corporate administrative expertise of small businesses and SDBs
• Actions taken to aid in the achievement of socieconomic goal(s) for small businesses and SDBs in the Superfund program
• Extent of firm's participation in the Mentor-Protege Program
• Extent protege(s) met development objectives in agreements
• Extent firm satisfied its small business and SDB subcontracting goals
51-033-189(2)
5-132
MAY 31, 1095
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 5-43. Work Assignment Completion Report (EPA Version), page 3 of 3
EVALUATION CRITERIA SCORE SHEET
(TO BE FILLED OUT BY PROJECT OFFICER ONLY)
SITE NAME: WANO.: CONTRACTOR.
WORK ASSIGNMENT COMPLETION REPORT (WACR)
29. PROJECT SCHEDULE AND COST INFORMATION: APPROVED vs. EXPENDED
REVISED FINAL LOE:
REVISED FINAL COST:
COMMENT:
30. CONTRACTOR PERFORMANCE EVALUATION PREPARED BY PO RATING. 1234
AWARD FEE RECOMMENDED? YES NO RECOMMENDED SIZE- %
(60-100%)
AWARD FEE AVAILABLE: $ AWARD FEE RECOMMENDED: $
31. PO ASSESSMENT AND CERTIFICATION:
32. PO SIGNATURE: DATE:
51-033-189(3)
5-133
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 544. Work Assignment Completion Report (Contractor Version), page 1 of 2
1. SITE NAME.
2. WANO:
3. STATE
WORK ASSIGNMENT COMPLETION REPORT (WACR)
4. CONTRACTOR- 5. CONTRACT NUMBER
6. CONTRACTOR REGIONAL MANAGER. PHONE
7 WORK ASSIGNMENT MANAGER (WAM): PHONE.
8. PROJECT OFFICER (PO)- PHONE.
9. CONTRACTING OFFICER (CO): PHONE
10 PERFORMANCE PERIOD FROM TO.
11 WA FORM (Check one) TERM COMPLETION
PERFORMANCE EVALUATION CATEGORY
12. Check one. _ SITE-SPECIFIC (SS) WA EVALUATION PROGRAM SUPPORT (PS) WA EVALUATION
CONTRACTOR PERFORMANCE EVALUATION
13 OVERALL PERFORMANCE RATING (Check one)-
UNSATISFACTORY (1) SATISFACTORY (2) EXCEEDS EXPECTATIONS (3) OUTSTANDING (4)
14. WA TITLE AND BRIEF DESCRIPTION OF SCOPE OF WORK:
15. OVERALL PERFORMANCE EVALUATION-
16. UNUSUAL PROBLEMS/OCCURRENCES AFFECTING CONTRACTOR P'E'RFORMANCE
i7."BASE>"EEAVAiLABLE:~ "BASEFEEPWD-"
PERFORMANCE (AWARD) FEE RECOMMENDED? YES NO RECOMMENDED SIZE %
(60-100%)
19 SPECIFIC REASONS FOR RECOMMENDATION VoR p¥RFORMAN'ci'(AWA'RD)' FEE
(Additional pages may be attached if necessary)
51-033-190A
5-134
MAY 31. 199S
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
Exhibit 544. Work Assignment Completion Report (Contractor Version), page 2 of 2
EVALUATION CRITERIA SCO
20. PROJECT PLANNING
RE SHEET
RATING: 1234
• Ability to set schedules and priorities for the accomplishment of all work under the WA
• Regular and effective communication with Agency personnel
• Compliance with contract and WA requirements
• Development of work plan
• Adequacy of HASP and QAMP (PS only)
21 TECHNICAL COMPETENCE & INNOVATION
• Technical quality of dehveraUes (SS only)
• Effectiveness and thoroughness of analyses
• Ability to meet work plan goals and objectives
• Creativity and ingenuity in approach
• Ability to support other organizations involved at site
* Adherence to regulations, procedures, and guidelines
22 SCHEDULE & COST CONTROL
RATING- 1234
RATING- 1234
• Development and maintenance of planned schedules and budgets for delweraWes
• Ability to minimize and control the cost
• Elimination of duplication of effort
• Quality and timeliness of delrverables
• Timeliness and reasonableness of monthly reports and invoices (PS only)
23. RESOURCE UTILIZATION
• Effective use of resources
• Suitability of staffing, recruiting, and training of personnel (PS only)
RATING 1234
• Appropriateness of professional mix to ensure quality of work while minimizing cost and time expenditures (SS only)
• Ability to effectively manage subcontractors' costs and resources, eliminate cost duplication by subcontractors
• Ability to assure contract compliance by subcontractor
- Adherence to subcontracting plan
• Ability to effectively monitor subcontractor performance
24 REPORTING
RATING: 1234
> Timeliness of delwerables
> Clarity and thoroughness of reports and documents
' Accuracy and completeness of data
RATING.
25 EFFORT
• Ability to identify and resolve problems
• Maintainence of regular communication link with Agency personnel and provision of information enabling Agency personnel to keep
abreast of progress
• Thoroughness in dealing with all aspects of the project/ program
26. SMALL AND SMALL DISADVANTAGED BUSINESS UTILIZATION RATING. 1234
• Actions taken to increase participation of small businesses and SDBs
• Actions taken to promote mutual beneficial relationships with small businesses and SDBs
• Actions taken to develop technical and corporate administrative expertise of small businesses and SDBs
• Actions taken to aid in the achievement of socieconomic goal(s) for small businesses and SDBs in the Superfund program
• Extent of firm's participation in the Mentor-Protege Program
- Extent protege(s) met development objectives in agreements
• Extent firm satisfied its small business and SDB subcontracting goals
27. EVALUATOR SIGNATURE
DATE.
51-033-190I2JA
5-135
MAY 31. 1995
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RAC USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
The PO includes the EPA- and contractor-prepared WACRs in the evalua-
tion package provided to the Performance Evaluation Board (PEB) at the
time of the next semiannual performance evaluation. The PEB evaluation
is described in Chapter 6.
- Completes the WACR and submits it to the PO.
PO I - Reviews both the EPA and contractor-prepared WACRs.
- Submits both WACRs to PEB.
EQ2I Organizing and Retiring WA Records
The WAM, PO, and contractor are responsible for organizing and retiring
their WA records. Chapter 11 provides a detailed description of this
process.
PO
- Organize and oversee retirement of WA records.
SI Disposing of Site-Specific Property
At the end of each WA, the contractor submits a final inventory of site-
specific government property to the PA. The PA consults with the WAM,
PO, and CO and determines when site-specific government property
becomes excess to the project. After the Contract Property Coordinator
and the contractor resolve any inventory discrepancies, the Plant Clear-
ance Officer (PCO) issues the final government property disposition
instructions based on the advice and recommendations of the WAM, PO,
CO, and PA. The contractor disposes of the property as instructed by the
PCO; the property usually is returned to the main contract property pool.
Section 8.2.3 provides additional information on government property
disposition.
- Consult with PA to determine when site-specific equipment
becomes excess to the project.
Final WA Invoice and Completion of WA Closeout
Dnce final WA costs have been incurred, the contractor submits a final
WA invoice. The PO reviews the final invoice and, if approved, submits
the invoice to the Financial Management Center at Research Triangle Park
(FMC-RTP) for payment. The performance (award) fee cannot be billed
until the contractor receives the contract modification authorizing the
MAY 31. 1995
5-136
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CHAPTER 5 » ISSUING AND MANAGING WORK ASSIGNMENTS
payment amount. The performance (award) fee may not be available for
six to eight months after the WA has been closed out (see Chapter 6).
Additionally, costs for indirect rate adjustments that affect the WA may
not be billed for some time depending on when these rates are adjusted.
PO | - Reviews the final contractor invoice and forwards it to FMC-
RTP for payment.
5.16.2
Procedures
The required, core, and noncore elements of RAC guidance for WA
closeout procedures are identified in Exhibit 5-45. Chapter 1 provides
definitions of required, core, and noncore elements and explains Regional
responsibilities for incorporating each element.
Required
Inclusion of a WA closeout task in every WA issued
Core
Use of the WAF to issue a WACN that initiates WA closeout
EPA and contractor completion of a WACR in accordance with the performance
(award) fee plan
Use of the WACR to evaluate the contractor's overall performance on the WA
and recommend performance fee
WAM, PO, and CO recommendations regarding equipment disposition
PCO issuance of equipment disposition instructions
At the end of WA closeout, retirement of EPA's WA records per required procedure
Verification of final WA charges and approval of final invoice for WA
Noncore
None currently defined
51-033-109A
Exhibit 5-45. Required, Core, and
Noncore Elements of Work
Procedures
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
5-137
MAY 31, 1995
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CHAPTER 5 • ISSUING AND MANAGING WORK ASSIGNMENTS
ion-Specific Guidance on Issuing and
Managing Work Assignments
SECTION
MAY 31, 1905
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Applicable guidance to be inserted by the Region following this page.
5-140
MAY 31, 1095
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CHAPTER 6 • ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
Response Action Contract
(RAQ Users' Guide
Volume 2: Process Guide
Administering the
Performance
(tad) Fee Plan
CHAPTER
MAY 31, 1995
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CO
FDO
HASP
LOE
PEB
PEF
PER
PIRS
PO
PS
RAC
RES
SDB
SDBU
SER
SOW
SS
WA
WACR
WAM
WP
Contracting Officer
Fee Determination Official
Health and Safety Plan
Level of Effort
Performance Evaluation
Board
Performance Evaluation
Form
Performance Event Report
Performance Index Rating
Score
Project Officer
Program Support
Response Action Contract
Regional Evaluation
Summary
Small Disadvantaged
Business
Small Disadvantaged
Business Utilization
Summary Evaluation Report
Statement of Work
Site-specific
Work Assignment
Work Assignment
Completion Report
Work Assignment Manager
Work Plan
6.1 The Performance Evaluation and Fee Determination Process 6-1
Step 1 Distributing the Call Memo 6-3
Step 2 Evaluating Contractor Performance on Individual WAs 6-3
Step 3 Preparing the Performance Evaluation Documentation for the PEB 6-9
Step 4 Participating in the PEB Meeting 6-10
StepS Preparing the PEB Report 6-11
StepG Performing the Contractor Debriefing 6-12
Step 7 FDO Determination of Performance (Award) Fee Amount 6-12
Step 8 Modifying the Contract to Authorize Performance (Award)
Fee Amount and Adjust Performance (Award) Fee Pool 6-13
6.2 Performance Evaluation Forms, Criteria, and Rating Guidelines 6-13
6.3
6.4
Required, Core, and Noncore Elements of Administering the Performance
(Award) Fee Plan 6-27
Region-Specific Guidance for Administering the Performance
(Award) Fee Plan 6-29
6.4.1 Introduction 6-29
6.4.2 Regional Performance (Award) Fee Plan Guidance 6-29
Exhibits
Exhibit 6-1 Process Flow for Performance Evaluation and
Fee Determination 6-2
Exhibit 6-2 Suggested Performance Evaluation Timeline 6-3
Exhibit 6-3 Development of Evaluation Period PIRS 6-8
Exhibit 6-4 Performance Evaluation Form 6-14
Exhibit 6-5 Regional Evaluation Summary 6-17
Exhibit 6-6 Work Assignment Completion Report 6-18
Exhibit 6-7 Evaluation Criteria for Program Support 6-21
Exhibit 6-8 Evaluation Criteria for Site-Specific Activities 6-22
Exhibit 6-9 Rating Guidelines 6-23
Exhibit 6-10 Required, Core, and Noncore Elements of Administering
the Performance (Award) Fee Plan 6-27
MAY 31, 1995
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CHAPTER 6 • ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
This chapter provides guidance for administering the base and perfor-
mance (award) fee provisions of Response Action Contracts (RACs). Each
Region is responsible for producing and distributing copies of this chapter
to all RAC Work Assignment Managers (WAMs), Project Officers (POs),
and Contracting Officers (COs). The details of administering the Perfor-
mance (Award) Fee Plan may vary from Region to Region. However, the
basic process must adhere to the approved fee plan in the contract. If
there are discrepancies between the information in this chapter and the fee
plan in the contract, the contract's fee plan takes precedence.
This chapter presents procedures for administering the standard RAC
Performance (Award) Fee Plan that appears in the RAC Acquisition
Model, January 1994. These procedures promote national consistency in
the RAC performance (award) fee process and exemplify good contract
management practices. Regional procedures that differ from the guidance
in this chapter should be documented and inserted in the tabbed section
provided at the end of the chapter. Each Region must promptly notify the
Fee Determination Official (FDO) of any changes that affect administra-
tion of the Performance (Award) Fee Plan and any ground rules adopted
by the Performance Evaluation Board (PEB).
Required, core, and noncore elements of guidance are identified at the end
of the chapter. Required elements are mandated by the contract or by
directive or law, and must be followed. Core elements represent signifi-
cant aspects of RAC management that are generally supported or outlined
by the Agency implementation guidance. Noncore elements are minor
aspects of contract administration that allow for variances in Regional
procedures. While noncore elements are discretionary, Regions may
deviate from core elements only if they provide documentation of the
deviation to the RAC Long-Term Contracting Strategy Program lead and
EPA Headquarters agrees with the Regions's procedure. Chapter 1 con-
tains detailed definitions of required, core, and noncore elements of
guidance.
6,1 The Performance Evaluation and Fee Determination Process
RAC contractor performance evaluations for active and completed work
assignments (WAs) and performance (award) fee determinations for
completed WAs take place every six months during the life of the con-
tract. The process of evaluating contractor performance and determining
performance (award) fees for completed WAs is depicted in Exhibit 6-1.
A step-by-step explanation of the process follows the exhibit.
The performance (award) fee process should occur within a defined
timetable. Exhibit 6-2 provides a timeline identifying recommended
times for specific activities in the performance (award) fee process. The
Region should include a performance evaluation plan calendar in its
6-1
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 6-1. Process Flow for
Performance Evaluation and
Pee Determination
P
/Dietri
I call n
Evaluates
performance j
on active and "
completed
WAs
j
j
i
May attend i
PEB meeting !
to justify i
recommended ;
ratings i
i
i
j
1
0 )
©
butes]
nemo)
Evaluates
. PSand
overall
performance
Compiles
evaluations;
prepares PEB
review material
1
Presents
summary
* evaluations H
to PEB and
answers
questions
<
Prepares
PEB report H
\
Coord
artdc
contfi
deb
rates
lairs
$tpr -
net
Evaluates
4- PS
i performance
Calculates
^ available per-
formance fee
for completec
WAs
Participates in
PEBrntg. and
* documents fee
recommendations
1
I
j Assists with and
i reviews PEB
j report
1
Verifies fee
calculations;
prepares evaiy
performance fee
letter for
FDD's signature
!/ Issues \
\ contract
^modification /
Fee Performance
Determination Evaluation
Official Board
i
i
1
1
i
Makes final
performance
» fee determin-
ation; issues
evaU perform-
ance fee letter
i
Discusses
contractors per-
WAevaL reports,
and makes fee
lauunin id uuiu is
Reviews and
a^jib rco
report
51-033-15H
6-2
MAY 31, 1995
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CHAPTER 6 « ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
r
End of Month 3
End of Month 4
.25th-
PO distributes call memo
End of Month 5
..25th.
..30th.
End of Month 6
-16th-
..25th
--29th-
End of Month 1
WAMs, CO, and contractor submit WA
evaluations to PO; POandCO
prepare PS and overall performance
evaluations for PEB
PO notifies contractor of
unsatisfactory performance
Contractor responds to notification
of unsatisfactory performance
Semester (End of Evaluation Period)
••4th-
• 13th-
.18th.
• 28th.
End of Month 2
material to PEB members
CO provides to PO pre-
liminary calculation of
performance fee available
tor each completed WA
PEB meeting
' j PEB Report submitted to FDD
Contractor debriefing |
FDO issues evaluation/performance fee
letter to contractor
12lh"
CO issues contract modification
51-033-12E
Performance (Award) Fee Plan. This calendar should ensure that the
contractor receives the FDO letter within 60 days of the end of the evalua-
tion period.
EHUD Distributing the Call Memo
The PO distributes a "call memo" 30 to 45 days before the end of the
evaluation period to fellow contract performance monitors—WAMs, CO,
and PEB members. The call memo notifies monitors of the end of the
evaluation period and specifies when contract monitor evaluations are due
to the PO.
PO I - Distributes call memo to performance monitors.
ETCH Evaluating Contractor Performance on Individual WAs
The WAMs must evaluate performance on all WAs that were completed
during the evaluation period and all active WAs that incurred contract-
specified minimums during the evaluation period. The standard RAC
Exhibit 6-2, Suggested
Performance Evaluation
Timeline
Completed WAs and WAs meeting
specified minimums are evaluated
for performance semianually.
6-3
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The PEF, RES, and WACR are
used to document contractor
performance evaluations.
Performance (Award) Fee Plan that appears in the RAC Acquisition
Model, January 1994, specifies the following minimums:
• Fund-lead projects—minimum of 80 hours of level of effort (LOE) or
$8,000 of cost
• oversight/enforcement support projects—minimum of 40 hours of
LOE or $4,000 of cost
• community relations projects—minimum of 20 hours of LOE or
$2,000 of cost
The WAMs each prepare evaluations of the contractors' performance on
their WAs. This includes PO evaluation of PS WAs if the PO serves as the
WAM on PS WAs. The CO conducts an evaluation of the contractor's PS
performance based on evaluations of each of the WAs within the PS work
area. The PO and CO may also evaluate site-specific WAs. The PO
reviews all evaluations and prepares a summary that addresses all WAs.
Evaluators must use the RAC evaluation criteria (Exhibits 6-7 and 6-8)
and rating guidelines (Exhibit 6-9) to determine appropriate performance
ratings.
Documenting Performance Evaluations
Three types of evaluation forms are used to record contractor performance
data—the Performance Evaluation Form (PEF), the Regional Evaluation
Summary (RES), and the Work Assignment Completion Report (WACR).
To accommodate the use of existing Regionally developed software, the
Regions may adopt different forms or formats to document performance
evaluations under RACs. The Regions have the latitude to choose any
format, provided that all data elements in the generic forms in this chapter
are included. Completion of the performance evaluation forms is self-
explanatory, with each block on the forms specifying the required infor-
mation.
The Performance Evaluation Form (PEF) (Exhibit 6-4) documents the
contractor's performance on PS and site-specific WAs during the evalua-
tion period. The PEF is used as a summary evaluation report (SER) to
document WA performance semiannually. It is also used as a perfor-
mance event report (PER) to document performance as warranted
throughout the evaluation period. The WAM, PO, and CO complete PEFs,
as appropriate. Each WAM completes a semiannual PEF for each active
and completed WA. The PO and CO complete semiannual PEFs for PS
WAs.
The PEF should provide information that highlights significant events to
support the overall evaluation, including strengths and weaknesses
observed during the period. To assist in completing the PEFs, each Region
develops its own internal mechanism for periodic tracking and reporting
of contractor performance on WAs during the evaluation period. This will
6-4
MAY 31, 1995
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CHAPTER 6 « ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
provide the WAMs and PO with the documentation necessary to support
the PEF ratings. Monthly interim performance evaluations are suggested
to record information while it is fresh.
The Region uses the semiannual PEFs to track and record performance
throughout the life of a WA. At the end of the WA, the PEFs are used to
summarize WA performance.
The Regional Evaluation Summary (RES) (Exhibit 6-5) provides a
summary rating of performance on all active WAs for an evaluation period
and serves as the primary mechanism for documenting satisfactory WA
performance. The PO prepares the RES for each six-month evaluation
period. The RES provides a complete historical record of project perfor-
mance on WAs performed by the contractor, facilitating the completion of
WACRs and the determination of award fee for completed WAs. The RES
is particularly useful in determining performance (award) fee on long-
term WAs and where the PO has changed during the course of the WA.
PO comments must be provided for all WAs. Comments should focus on
the following issues:
• specific events that indicate either substandard or exceptional perfor-
mance
• specific areas that need improvement
• areas of satisfactory performance that can be improved
• overall progress on work in relation to established schedules
• technical quality of work performed
The comments may reference other performance reports where appropri-
ate. For example, the PO could refer to information in a PEF to support an
"unsatisfactory" or "outstanding" rating on a WA. The PO's comments on
the RES should be clear, complete, and sufficient to support the numeric
rating.
The Work Assignment Completion Report (WACR) (Exhibit 6-6)
documents the contractor's and Region's views on overall performance of
WAs completed during an evaluation period. The contractor prepares a
WACR as a self-evaluation tool. The WAM completes the Regional
WACR for site-specific WAs. The PO and CO prepare WACRs for PS
WAs.
To ensure an equitable evaluation on the WACR, the WAM uses the
semiannual PEFs to summarize WA performance. This is particularly
important to ensure continuity on long-term projects, or when the WAM
changes during the course of the project. If the overall WA performance is
rated differently on the WACR than the average of the semiannual PEFs, a
supporting rationale must be provided with the WACR.
6-5
The PO must include comments on
all RES forms to support the
numeric rating.
If the WACR rating is not the
average of the PEF ratings, a
supporting rationale is required.
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Use of evaluation criteria specified
in the standard RAC Performance
(Award) Fee Plan is a core element
of RAC guidance.
All recommendations must be clearly supported and should cite specific
examples where the contractor's performance was either above "satisfac-
tory" or "unsatisfactory". The WAM may attach additional supporting
documentation where appropriate. The PO assesses and concurs with the
WACRs prepared by WAMs and the CO during the performance evalua-
tion process.
Applying Performance Evaluation Criteria
Slightly different criteria are used to evaluate PS and site-specific WAs.
According to the contract, these criteria may be changed unilaterally by
the government if the contractor is notified before the start of the evalua-
tion period during which the change(s) take(s) effect. RACs use a standard
Performance (Award) Fee Plan to ensure that all Regions are applying the
same criteria in the same ways.
There are seven evaluation categories for site-specific WAs:
1) Project Planning
2) Technical Competence and Innovation
3) Schedule and Cost Control
4) Resource Utilization
5) Reporting
6) Effort
7) Small and Small Disadvantaged Business Utilization
Specific evaluation criteria for PS and site-specific WAs are shown in
Exhibits 6-7 and 6-8, respectively.
The PS WA performance rating focuses on the completion of the activities
agreed to in the specific PS WA work plan (WP). If a performance issue
relative to multiple WAs (PS and site-specific) is addressed under a PS
WA, adequate rationale and support must be provided to justify impacting
the performance of one WA with the performance in others.
Performance/Award Fee Ratings
Contractor performance is rated numerically, from one to four, according
to the following scale:
1 - Unsatisfactory
2 - Satisfactory
3 - Exceeds Expectations
4 - Outstanding
Guidelines for applying these ratings to each of the seven evaluation
categories are provided in Exhibit 6-9. On the RES form only, these
ratings are applied on a basis of zero to one hundred, as follows:
6-6
MAY 31, 1996
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CHAPTER 8 • ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
0-25 Unsatisfactory
26-50 Satisfactory
51-75 Exceeds Expectations
76-100 Outstanding
Exhibit 6-3 shows an example of how the PIRS is developed for a con-
tractor at the end of an evaluation period. The PIRS calculation is devel-
oped in three steps:
Calculation of Overall Technical Score
The RES score for each site-specific WA is multiplied by the LOE used
for the WA during the rating period to determine the Technical Raw Total
for the WA. The Technical Raw Totals for all WAs are then summed and
divided by the total LOE expended on all WAs during the rating period.
The result is the Overall Technical Score.
Calculation of Overall PS Score
The RES score for each PS WA is multiplied by the LOE used for the WA
during the rating period to determine the PS Raw Total for the WA. The
PS Raw Totals for all WAs are then summed and divided by the total LOE
expended on all WAs during the rating period. The result is the Overall PS
Score.
Calculation of PIRS
This step combines the Overall Technical Score with the Overall PS
Score. The technical component is assigned a weighting of 75 percent;
the PS component is assigned a weighting of 25 percent. The weighted
totals are then summed to determine the PIRS.
Since there is no LOE associated with completion-form WAs, when
calculating the PIRS for completion-form WAs (site-specific or PS), the
WA cost is used in place of the WA LOE.
The PIRS is used to allocate new WAs based on the ranking of contractors
within the Region. The work allocation process is described in section
5.3.
- Prepares PEFs semiannually for all active WAs that meet
contract-specified minimums during the evaluation period.
- Prepares PEFs as warranted during the evaluation period to
document contractor performance.
- Prepares a WACR for each WA completed during the evaluation
period.
When calculating the PIRS for
completion-form WAs, WA cost is
used in lieu of LOE.
6-7
MAY 31, 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 64. Development of
Evaluation Period PIRS
Stepl: Calculate Technical Score
Work
Assignment
001
002
003
004
005
RES
Percent
68%
54%
82%
100%
36%
Totals
Rating Period
LOE Use
5,000
7,000
12,000
3,000
3,000
30,000
Technical
Raw Total
3,400
3,780
9,840
3,000
1,080
21,100
Overall Technical Score:
(21,000 + 30,000) x 100% = 70%
Step 2: Calculate Overall PS Score
Work
Assignment
B01
C01
D01
RES
Percent
62%
90%
76%
Totals
Rating Period
LOE Use
500
3,000
2,000
5,500
Technical
Raw Total
310
2,700
1,520
4,530
Overall PS Score:
(4,530 + 5,500) x 100% = 82%
Step 3: Calculate PIRS
Component
Technical
Program
Support
Score
70%
82%
Totals
PIRS: 52.5%
Weighting
.75
.25
1.00
Weighted
Total
52.5%
20.5%
73%
+ 20.5%=73%
51-033-192A
6-8
MAY 31. 1995
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CHAPTER 6 • ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
Prepares PEFs for active PS WAs.
Prepares a WACR for each PS WA completed during the
evaluation period.
Prepares RES summarizing WA performance during evaluation
period.
Prepares PEFs for PS WAs.
Prepares a WACR for each PS WA completed during the
evaluation period.
HI Preparing the Performance Evaluation Documentation for the PEB
The PO compiles evaluation forms from the WAMs and CO and prepares
the evaluation package for the PEB. The PO first reviews PEFs and
WACRs to ensure that all ratings are adequately justified and coordinates
with the WAMs and CO to provide any additional justification. The PO
compares the contractor-prepared WACR to the WAM's WACR and
discusses questions and discrepancies with the WAM and the contractor.
The PO notifies the contractor of any unsatisfactory performance ratings
on PEFs or WACRs, to enable the contractor to respond. Responses are
integrated into the overall performance evaluation for consideration by the
PEB.
The PEB evaluation package provides an overall summary of the
contractor's performance on individual WAs. Although the contents of the
package vary from Region to Region, most Regions include the following
items:
• table of contents
• historical rating summary
• CO and PO evaluations of PS WAs
• CO and PO evaluations of non-PS WAs (if done)
• PO overall evaluation of non-PS WAs
• contract-wide score by evaluation categories
• RES accompanied by PEFs
• Contractor PIRS
• WACR evaluation worksheet
• WACRs completed by WAM
• WACRs completed by contractor
The PO distributes the performance evaluation package to PEB members
approximately one week before the PEB meeting.
6-9
MAY 31. 1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
At the PEB meeting, the PO
presents a summary and highlights
of contractor performance during
the evaluation period.
To prepare for fee determination, the CO calculates the available perfor-
mance (award) fee for completed term-form WAs. The fee performance
(award) pool for completion-form WAs was established during WA
negotiations.
- Provides completed PEFs and WACRs to PO.
- Collects and compiles evaluation forms.
- Ensures that there is adequate justification for evaluation
ratings.
- Notifies contractor of any unsatisfactory ratings.
- Compares contractor- and WAM-prepared WACRs and
discusses differences with contractor and WAM.
- Prepares evaluation package for PEB and distributes it to PEB
members one week prior to PEB meeting.
EEZ1 Participating in the PEB Meeting
The appropriate Agency official chairs the PEB. PEB members include
representatives of the Agency groups that use RAC services. Each
Region's PEB membership has been reviewed and approved by the Office
of Acquisition Management. The PEB chairperson may authorize changes
to the membership, but only the FDD may authorize a change to the
approved chairperson.
During the PEB meeting, the PEB members deliberate on the contractor's
performance based on the performance evaluation materials provided by
the PO. PEB members also may provide input pertinent to site work and
contract activity during the PEB discussions.
The PO presents to the PEB a summary and highlights of the WA perfor-
mance evaluation, and responds to PEB members' questions. The PEB
executive secretary records the deliberations, performance determinations,
and fee recommendations made during the meeting. The CO participates
in the PEB meetings, records fee recommendations (for verification
purposes), and responds to PEB member questions, as needed. The WAM
may attend the PEB meeting to provide additional justification for perfor-
mance evaluation ratings. The WAM may be requested to attend in cases
where there are discrepancies between the WAM's and PO's evaluations.
The PEB reaches a consensus on the overall contractor performance
evaluation for each WA and makes performance (award) fee recommenda-
tions for FDO consideration for each completed WA. If the PEB's final
WA performance rating is "unsatisfactory" or "satisfactory," then no
performance (award) fee can be recommended. If the PEB's final WA
performance rating is "exceeds expectations" or "outstanding," the PEB
6-10
MAY 31, 1995
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CHAPTER 6 • ADMINISTERING THE PERFORMANCE (AWARD) FEE PLAN
recommends that the contractor receive a percentage (60 percent to 100
percent) of the available performance (award) fee pool for the WA.
The PEB may recommend performance (award) fee percentages within
specific ranges, depending on their rating:
Rating
4 - Outstanding
3 - Exceeds Expectation
Available Performance (Award) Fee
80% to 100%
60% to 80%
PO
The PEB may recommend any percentage within the applicable range,
depending on their subjective evaluation of the contractor's performance.
- May attend PEB meeting.
- Presents a summary and highlights of performance evaluation
to PEB.
- Responds to PEB member questions.
- Ensures that PEB deliberations, performance determinations,
and fee recommendations are recorded.
CO J . Participates in PEB meeting.
- Records PEB fee recommendations.
The PO coordinates with the CO in preparing the PEB report, summariz-
ing the PEB's findings, final WA evaluations, and performance (award)
fee recommendations. The PEB report is signed by the PEB chairperson
and used by the FDO to make the final fee determination.
The PEB report should:
• identify strengths and weaknesses in the contractor's performance
• state the result of the performance
• show that the PEB has evaluated the performance and that the recom-
mended ratings provided to the FDO are the result of the
PEB's evaluation
• cite areas of needed improvement and areas identified in previous
period(s) that were not improved upon
• contain the WACRs for completed WAs and semiannual PEFs
The report should provide the FDO with enough information to discern
that the recommended ratings are justified. Inadequate PEB report narra-
tive may result in the FDO authorizing lower fees than warranted.
6-11
The PEB recommends peformance
(award) fee for WAs where
performance is rated as "exceeds
expectations" or "outstanding."
MAY 31, 1995
-------
e Action Contract
(RAQUsos'Guide
Volume 2: Process Guide
Using RAC Reports
CHAPTER
MAY 31, 1995
-------
CHAPTER 7 » USING RAC REPORTS
Response Action Contract "Reports of Work," Attachment B to the
solicitation/contract, is being revised. This chapter will be issued after
"Reports of Work" (Attachment B) has been finalized.
7-1
MAY 31, 1995
-------
CHAPTER 7 • USING RAC REPORTS
7.5 Region-Specific Guidance on Using RAC Reports
Applicable guidance to be inserted by the Region following this page.
7-7
MAY 31, 1995
-------
Response Action Contract
(RAQ Users' Guide
]folume 2: Process Guide
Equipment
CHAPTER
MAY 31, 1995
-------
CHAPTER 8 • EQUIPMENT
Due to last-minute changes in EPA policy on government property,
Chapter 8 will be issued at a later date.
8-1
MAY 31, 1995
-------
CHAPTER B • EQUIPMENT
Region-Specific Guidance on Equipment
Applicable guidance to be inserted by the Region following this page.
8-3
MAY 31, 1995
-------
Response Action Contract
(RAQ Users' Guide
Volume 2: Process Guide
Delivery of
Analytical Services
CHAPTER
MAY 31, 1995
-------
RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CBI Confidential Business
Information
CLP Contract Laboratory
Program
CO Contracting Officer
COI Conflict of Interest
DQO Data Quality Objective
FRC Federal Records Center
FSP Field Sampling Plan
LOE Level of Effort
PO Project Officer
QA Quality Assurance
QAPP Quality Assurance Project
Plan
RAC Response Action Contract
SAP Sampling and Analysis Plan
SOP Standard Operating
Procedure
SOW Statement of Work
TD Technical Direction
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
9.1 The Analytical Services Acquisition and Management Process 9-1
Stepl Preparing the Analytical Services WA 9-3
Step 2 Issuing TD or Amending the WA 9-4
Step 3 Providing the SAP 9-5
Step 4 Reviewing and Approving the SAP 9-5
Step 5 Overseeing Analytical Work 9-6
Step 6 Inspecting Data 9-7
Step 7 Validating Data 9-7
Step 8 Determining Data Usability 9-8
Step 9 Storing Data and Retaining Records 9-8
9.2 Required, Core, and Noncore Elements of Analytical Services Acquisition
and Management 9-8
9.3 Region-Specific Guidance on Analytical Services Acquisition and
Management 9-11
Exhibits
Exhibit 9-1 Process Flow for Acquiring and Managing Analytical
Services 9-2
Exhibit 9-2 Required, Core, and Noncore Elements of Analytical
Services Acquisition and Management 9-9
MAY 31, 1995
-------
CHAPTER 9 • DELIVERY OF ANALYTICAL SERVICES
This chapter provides guidance on managing and acquiring analytical
services through Response Action Contracts (RACs) and details the
activities of the Contracting Officer (CO), Project Officer (PO), and Work
Assignment Manager (WAM). Region-specific analytical services
guidance contains additional information on the unique needs of the
Region and should be consulted.
This chapter presents standard RAC management procedures for the
acquisition and management of analytical services. These procedures
promote national consistency in RAC management and exemplify good
contract management practices. Required, core, and noncore elements of
this guidance are identified at the end of the chapter. Required elements
are mandated by the contract, by directive, or law, and must be followed.
Core elements represent significant aspects of RAC management that are
generally supported or outlined by Agency implementation guidance.
Noncore elements are minor aspects of contract administration that allow
for variances in Regional procedures. While noncore elements are discre-
tionary, Regions may deviate from core elements only if they provide
documentation of the deviation to the RAC Long-Term Contracting
Strategy Program lead and EPA Headquarters agrees with the Region's
procedure. Chapter 1 contains detailed definitions of required, core, and
noncore elements of guidance.
9,1 The Analytical Services Acquisition and Management Process
Analytical services acquisition begins with the identification of a need to
obtain quantitative data about one or more operable units to support
decisions concerning a Superfund site or group of sites. Analytical
services may be costly or cause delays and should not be requested if
sufficient information already exists to make the necessary decisions.
Analytical services acquisition and management presents the WAM with a
difficult responsibility. The WAM must decide what analyses are appro-
priate, oversee highly technical work to ensure that it is performed to
specific quality standards, manage the quality assurance (QA) procedures,
and ensure that the evidentiary records are properly retained.
A generic analytical services acquisition and management process outlin-
ing the primary requirements is presented in Exhibit 9-1. In practice, the
process may differ due to Region-specific analytical needs, so Region-
specific guidance also should be consulted. A step-by-step explanation
follows.
9-1
MAY 31,1995
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 9-1, Process Flow for
Acquiring and Managing
Analytical Services
Prepares
WA
Reviews and approves WA and
contractor WP (see Ch. 5)
Subcontractors
Issues TD or
amends WA if
/IsJ
s^accep
5AP\
itable?/
/Yes
Oversees
contractor's
work
1
1
•>
1
1
1
i
I
j
;i
j
I
Reviews TD
andWA -
amendments
No
1
i
Reviews TD
» and issues WA
amendments
1
!
|
j
1
!
|
Consents to
subcontract
—
May prepare &
submit SAP
i
r
Subcontracts
work
Oversees
contractor's
work
Oversees
work
Oversees
work
Determines
Udla UoaUllliy
i
Ensures
records are
properly filed
j
!
i
1 i
1 L
i
Consents to
subcontract
Consents to
subcontract
Consents to
subcontract H
! 1
Subcontracts
work
May subcon-
tract for inspec-
tion of work
May subcon-
tract for data
validation
1
/I Deli
V!
i/ers \
dsto
\C J
S1-03M6E
9-2
MAY 31, 1995
-------
CHAPTER 9 » DELIVERY OF ANALYTICAL SERVICES
EQJ9I Preparing the Analytical Services WA
If analytical services are needed and other analytical support vehicles are
inappropriate due to capacity or other reasons, the Region may procure
analytical services through RACs. If the analytical support services are
not already included as part of an existing work assignment (WA), the
WAM consults Regional guidance to determine if the services will be
procured through an open-ended analytical support WA or an event-
specific analytical support WA. The type of WA used to procure analyti-
cal services does not affect the WA's basic components, although Regional
guidance may require additional elements.
The WAM details in the WA what type of data are needed, how the data
are to be gathered, and how the results are to be reported. The WAM also
describes how the analytical results will be reviewed for accuracy and
usability. If the contractor (or subcontractor) is tasked to validate the data,
the WA must specify that Regional guidance be followed. Regional
guidance also must be used for any other analytical support activities
tasked to the contractor (or subcontractor).
Due to the nature of most analytical laboratory work, data requirements,
including the required QA procedures, cannot be divided easily into
unique tasks that can be reviewed sequentially. Therefore, all data needs,
including QA activities and reporting requirements, can be adequately
addressed only during WA preparation. The WAM can clarify the WA for
the contractor through technical direction (TD), but changes that affect
WA scope or cost must be addressed through a WA amendment. (See
sections 5.10 and 5.11.) Changes made to the WA after the WA has been
issued may delay the results or increase the cost. It is critical, therefore,
that the WAM address all foreseeable data needs in the WA to avoid costly
delays and potential data inadequacies.
It also is important to ensure that the contractor does not initiate any
analytical work before the WAM has approved the proposed methodolo-
gies. The WAM should clearly state in the WA that the contractor is not to
begin any analytical work until an EPA-approved Sampling and Analysis
Plan (SAP) is on file at EPA. (EPA may provide the SAP in some cases.)
The WA also must include a delivery schedule containing the following:
(1) a detailed description of all WA deliverables, including status and
project reports, (2) a time schedule for submission of all deliverables, and
(3) the number of copies needed for each deliverable and a list of recipi-
ents. The WAM must ensure that the deliverables description includes a
detailed listing of all requested analytical reports. The analytical services
are requested to address specific issues; the required reports should
support these issues. Unnecessary reports may delay the results or
increase the cost. The WAM, therefore, should not rely on references to
other analytical reporting requirements, such as those in an existing
Contract Laboratory Program (CLP) statement of work (SOW).
9-3
The WA should include
requirements for the analytical work
and any follow-up activities that the
contractor will be required to
perform or subcontract.
The WA should prohibit the
contractor from beginning
analytical work until an EPA-
approved SAP is on file.
The WAM should specify reporting
requirements specific to the project
and should not rely on references
to CLP or other analytical
reporting requirements.
MAY 31, 1996
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
The WAM must specify sample
holding times, analysis times, and
data delivery turnaround
in the WA.
The WA and all subcontracting agreements should note technical holding
times for the parameters of interest and specify performance and data
delivery time periods. Delays should not be tolerated. It may be neces-
sary to withhold performance (award) fee funds for avoidable delays. The
WAM should clearly state in the WA the conditions that will result in EPA
action due to missed deadlines.
When reviewing the WA, the PO and CO ensure that it clearly describes
the required work and deliverables. (The preparation, review, and ap-
proval of the WA and subsequent approval of the contractor's work plan
[WP] are described in Chapter 5.)
JVAMy - Prepares detailed WA that outlines tasks/subtasks, data
objectives, QA requirements, deliverable requirements, and
schedules.
- Reviews and concurs with WA.
- Approves and issues WA.
QBE Issuing TD or Amending the WA
The WAM may be presented with additional information regarding site-
specific analytical needs that requires clarifications to the WA after it has
been issued. The WAM issues TD to clarify WA requirements in accor-
dance with the limits and procedures for TD described in section 5.10.
The PO and CO review TD to ensure that it does not authorize changes in
the WA SOW that exceed the overall approved budget or level of effort
(LOE). Changes that affect WA cost, LOE, or scope must be documented
and approved through a formal WA amendment as described in section
5.11.
JVAMy - Prepares TD to clarify analytical requirements specified in WA.
- Prepares WA amendment to clarify analytical requirements
specified in WA and adjust budget or LOE.
PO
- Reviews TD to ensure no unauthorized changes to the WA are
requested.
- Reviews WA amendment to ensure changes are within scope
of contract.
9-4
MAY 31. 1905
-------
CHAPTER 9 • DELIVERY OF ANALYTICAL SERVICES
(COI) . Reviews TD to ensure no unauthorized changes to the WA are
requested.
- Approves and issues WA amendment.
BEE Providing the SAP
If the Region does not provide the contractor with a preapproved SAP, the
contractor is required to prepare and submit a SAP as a WA deliverable.
The SAP must comply with the Analytical Services Delivery Plan ap-
proved by EPA during initial contract negotiation. Every SAP includes a
Field Sampling Plan (FSP), a Quality Assurance Project Plan (QAPP), and
other items defined by the Region. The FSP details the sampling and
analysis procedures and methodologies that will be implemented by the
contractor or designated subcontractor. The FSP specifies how many
samples will be taken, how and where the samples will be collected, what
technical means will be used to collect them, and what technical method-
ologies and procedures will be used to analyze them.
The QAPP addresses FSP QA issues. It includes data quality objectives
(DQOs), which detail the level of analysis and quality of the analytical
procedures required for the project. The QAPP describes the specific
methodologies that the contractor or subcontractor will use and describes
how data quality will be maintained, assessed, and verified.
The contractor is required to notify the WAM if new information is
discovered that requires a modification to the SAP.
BSD Reviewing and Approving the SAP
If the contractor performing or subcontracting the analytical services
prepared the SAP, the SAP must be reviewed by EPA. Each Region uses
its own procedures to review and approve contractor-prepared SAPs. The
WAM should ensure that the proper Regional procedures for reviewing
the SAP are followed and that the SAP is consistent with Region-specific
requirements.
While the procedures for reviewing contractor-prepared SAPs may differ
by Region, all Regions should examine several critical areas. The SAP
establishes the scope of the sampling and analysis activities; the contrac-
tor, therefore, has a vested interest in establishing the largest scope
possible. The WAM must review the SAP to ensure that the proposed
number of samples, level of analysis, and QA procedures do not exceed
the levels necessary to obtain the needed data.
It also is important to recognize that multiple laboratory methodologies
may be used to perform an analysis. The WAM must be aware of alter-
nate methodologies, differences in precision, and difference in cost. For
example, there may be two methods to perform an analysis, each with
9-6
The FSP details the sampling and
analysis procedures and
methodologies.
The QAPP contains DQOs and
includes a description detailing
how data quality will be
maintained, assessed, and verified.
The number of samples, level of
analysis, and QA procedures
should not exceed the necessary
levels.
The WAM must be aware of
alternate methodologies,
differences in precision, and
difference in cost to ensure that the
most cost-effective method is used.
MAY 31,1995
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RAC USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
The contractor oversees
subcontractor performance of
analytical work and ensures that
the subcontractor follows the SAP
requirements in the subcontract.
different detection limits and different susceptibility to interferences. The
method with fewer interferences may be preferable on a difficult sample
matrix even though the achievable detection limit is not as precise as that
available with the alternate method. Any difference in cost must be
weighed against the difference in obtainable results. If the WAM did not
specify a specific methodology in the WA, the WAM, as a general rule,
should approve the methodology that provides no more data than neces-
sary at the lowest available cost.
If the WAM determines that the contractor-prepared SAP is unacceptable
or if new site-information requires a change in the SAP, the WAM may
return the SAP to the contractor for modification.
jifAMy ~ Reviews and, if acceptable, approves the contractor-prepared
SAP.
- May ask contractor to submit revised SAP before approval.
The CO must review and consent to subcontracts if the contractor will use
non-Team subcontractors to perform the analysis and when consent is
required. The review and consent to subcontract is described in section
4.7. If a subcontractor is used, the contractor is responsible for overseeing
the subcontractor's work and ensuring that the subcontractor does not
deviate from the procedures and methodologies stated in the SAP or
subcontract. Any changes in methodology that result from unforeseen
circumstances must be documented and submitted by the contractor to the
WAM for review and approval. The documentation should include a
recommended amendment to the SAP that explains the change in method-
ology and the need for the change. The WAM approves the change if it is
within the WA scope and budget and issues TD or a WA amendment (see
step 2) to incorporate the change into the SAP.
The WAM oversees the contractor's activities to ensure that the
government's requirements are being met. The WAM does not oversee
the subcontractor if one is being used, but the WAM does oversee a
contractor's management activities to ensure that the contractor is per-
forming adequate oversight of the subcontractor and is effectively enforc-
ing SAP requirements including timely submission of reports. The WAM
must strictly enforce WA sample holding, analysis, and data submission
times.
- Oversees contractor's management of analytical services.
9-8
MAY 31. 1995
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CHAPTER 9 • DELIVERY OF ANALYTICAL SERVICES
The contractor submits the data to EPA as specified in the WA. EPA
inspects the data for completeness and accuracy, and ensures that the work
is in compliance with the SAP and results are of an accuracy and quality
consistent with the cost. The WAM should ensure that an independent
data review is completed by EPA or through an appropriate contract
vehicle.
Tasking the inspection of a contractor (or subcontractor's) work to another
contractor is a sensitive contracting area due to conflict of interest (COI)
and confidential business information (CBI) considerations and should be
avoided. If another contractor is used, the WAM should pay particularly
close attention to COI and CBI concerns (see section 2.3). The WAM
should provide detailed instructions or inspection guidelines to the
contractor performing the review as part of the WA.
- Reviews contractor's data inspection procedures and results.
- Ensures that an independent data review is completed.
- Oversees data inspection.
- Reviews analytical data and data inspection package.
Data validation is closely related to data inspection. While data inspec-
tion ensures that the data provided meet the contractual requirements, data
validation provides the data user with a summary of the strengths and
weaknesses of a data set and the information necessary to determine if the
data are appropriate to use for the intended purpose. Data validation and
data inspection may be performed as part of the same WA if the WAM
designates a contractor to perform both.
Data validation may reveal that data is deficient through no fault of the
contractor (or subcontractor) performing the laboratory work. Difficult
sample matrices, poorly approved testing methodologies, and nonhomo-
geneous samples are potential sources of data deficiencies for which the
contractor may not be responsible. Data validation identifies all the
problems with the data set so data users can incorporate known weak-
nesses into their decisions. The data validation process may reveal
laboratory deficiencies that were not identified during data inspection but
that need to be addressed with TD (section 5.10) or WA amendments
(sections. 11).
Most Regions have data validation guidelines modeled after the national
guidelines established for the CLP. Guidelines must be incorporated into
the WA when contractors are required to validate data.
9-7
The data are inspected by ER\ to
ensure thai the results are
consistent with the cost billed.
The purpose of the data validation
process is to identify all the
problems with the data set so that
data users can incorporate known
deficiencies into their decisions.
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
EPA always makes the final
decision regarding data usability.
• May task contractor to perform data validation review.
BEE Determining Data Usability
After receiving the data, data inspection report, and data validation report,
the WAM determines data usability (i.e., whether the data is usable for
specific EPA decisions). This decision is based primarily on the data
validation report, but pertinent site and regulatory information also are
considered. The WA may have tasked the contractor to review the data
for usability and make a recommendation. EPA, however, always makes
the final data usability determination.
- May task contractor to perform data usability review.
- Makes final determination of data usability.
BQ2] Storing Data and Retaining Records
All samples collected at a Superfund site are potential evidence. All
documents produced by the laboratory as part of the analytical work also
are considered and treated as evidence. The WAM should require in the
WA that the contractor combine all files related to the sample analysis
into an evidence package. The evidence package should include a certifi-
cation from the laboratory manager stating that the work was completed
using the procedures and methodologies stated in the SAP. The complete
evidence package must be retired to a designated Federal Records Center
(FRC) facility to allow easy retrieval during future litigation.
The WAM is responsible for ensuring that all analytical files are prepared
in accordance with FRC guidelines and ensuring that the files are properly
deposited at the appropriate FRC facility. (See Chapter 11 for additional
information on records management.) The WAM should never agree to
store the data at the contractor's facility because contractor laboratories
sometimes change ownership, move facilities, or go out of business.
- Coordinates preparation of evidence package.
- Ensures analytical files are properly prepared and deposited at
appropriate FRC facility.
9,2 Required, Core, and Noncore Elements of Analytical Services
Acquisition and Management
The required, core, and noncore elements of RAC guidance for analytical
services acquisition and management are identified in Exhibit 9-2.
9-8
MAY 31, 1995
-------
CHAPTER 9 * DELIVERY OF ANALYTICAL SERVICES
Chapter 1 provides definitions of required, core, and noncore elements
and explains Regional responsibilities for incorporating each element.
Required
Consent to subcontracts for analytical services when consent is required
Core
Review and approval of contractor's SAP
Coordinate disposition of analytical data package
Noncore
The Regions may elect to order analytical work under a separate WA or under
a task within a WA for site support (e.g., remedial investigation/feasibility study,
remedial design, and remedial action).
The Region may task the contractor with data usability review or may perform
the review itself.
Exhibit 9-2. Required, Core, and
Noncore Elements of Analytical
Services Acquisition and
Management
9-9
MAY 31, 1995
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CHAPTER 9 « DELIVERY OF ANALYTICAL SERVICES
9.3 Region-Specific Guidance on Analytical Services Acquisition
and Management
Applicable guidance to be inserted by the Region following this page.
0-11
MAY 31, 1096
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Response Action Contract
(RAQ Users' Guide
]fobme2: Process Guide
Cost Management
CHAPTER
MAY 31. 1995
-------
RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronyms
CIS
CO
CPS
DCAA
FAS
FAR
Contract Information
System
Contracting Officer
Contract Payment System
Defense Contract Auditing
Agency
Financial Analysis Section
Federal Acquisition
Regulation
FMC-RTP Financial Management
Center, Research Triangle
Park
IFMS Integrated Financial
Management System
IGCE Independent Government
Cost Estimate
ODC Other Direct Cost
OIG Office of Inspector General
PO Project Officer
RAC Response Action Contract
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
10.1 Managing Cost and Progress Information 10-2
10.2 Reviewing Contractor Invoices 10-2
Stepl Contractor Submission of Invoice and Invoice Site Attachment 10-2
Step 2 Reviewing Invoice Against Monthly Progress Report 10-4
Step 3 Resolving Payment Issues and Approving Invoices 10-6
10.3 Conducting Voucher/Invoice Validation Reviews 10-7
Step 1 Initiating Voucher/Invoice Validation Review '. 10-7
' Step12 Conducting Voucher/Invoice Validation Review .".....'. 10-8
Step 3 Documenting Findings 10-13
Step 4 Discussing Findings and Proposed Actions 10-13
Step 5 Monitoring Contractor Performance 10-13
10.4 Required, Core, and Noncore Elements of Cost Management 10-13
10.5 Region-Specific Guidance on Cost Management io-'is
Exhibits
Exhibit 10-1 Process Flow for Monthly Invoice Review 10-3
Exhibit 10-2 Items to Consider in Reviewing Monthly Invoices 10-5
Exhibit 10-3 Process Flow for Voucher/Invoice Validation Review 10-8
Exhibit 104 Checklist for Voucher/Invoice Validation Review 10-9
Exhibit 10-5 Required, Core, and Noncore Elements of
Cost Management 10-14
MAY 31. 1995
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CHAPTER 10 • COST MANAGEMENT
This chapter describes procedures that Regional personnel should follow
to ensure the government is receiving, at a reasonable cost, goods and
services of acceptable quality from response action contractors. These
procedures include several activities that are discussed in other chapters
and sections of the Response Action Contract (RAC) Users' Guide as
follows:
• reviewing contract modifications (section 4.5)
• reviewing contractor claims (section 4.6)
• reviewing work assignments (WAs) (section 5.6) and work plans
(WPs) (section 5.7)
• reviewing WA amendments and WP revisions (section 5.11)
• reviewing contractor deliverables (section 5.14)
• reviewing final WA and contract costs (section 5.16)
• reviewing progress reports (Chapter 7)
• documenting costs for cost recovery (Chapter 11)
This chapter discusses cost management activities that are not discussed
elsewhere in the Users' Guide, specifically:
• managing cost and progress information
• reviewing contractor invoices
• conducting voucher/invoice validation reviews
Additional cost management information can be found in the Cost Man-
agement Manual for the Superftmd Remedial and Enforcement Programs.
This chapter presents standard RAC procedures for cost management.
These procedures promote national consistency in RAC management and
exemplify good contract management practices. Required, core, and
noncore elements of guidance are identified at the end of the chapter.
Required elements are mandated by the contract, by directive, or law, and
must be followed. Core elements represent significant asects of RAC
management that are generally supported or outlined by Agency imple-
mentation guidance. Noncore elements are minor aspects of contract
administration that allow for variances in Regional procedures. While
noncore elements are discretionary. Regions may deviate from core
elements only if they provide documentation of the deviation to the RAC
Long-Term Contracting Strategy Program lead and EPA Headquarters
agrees with the Region's procedure. Chapter 1 contains detailed defini-
tions of required, core, and noncore elements of guidance.
10-1
MAY 31, 1995
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RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Monthly progress reports are used
extensively daring invoice review.
10,1 Managing Cost and, Progress Information
Each Region maintains a computer database or other contract information
system (CIS) which contains contractor cost and performance information
and contract management indicators. The Work Assignment Manager
(WAM), Project Officer (PO), and Contracting Officer (CO) use the CIS
to track work progress and contractor expenditures, to monitor contractor
performance, and to facilitate the exchange of information among the
contract management team. The WAM, PO, and CO each update their
respective information in the CIS to keep it current throughout the con-
tract.
- Update and use contractor performance information contained
in the Regional CIS.
10.2 Reviewing Contractor Invoices
The invoice review process begins informally with the receipt of the
monthly progress reports, which include the invoice backup report. Upon
receipt of the monthly progress reports, the PO distributes the WA-
specific reports to the appropriate WAMs, who perform detailed cost
management reviews of contractor performance, deliverables, and expen-
ditures. The formal invoice review begins with the receipt of the actual
invoice. EPA personnel review the invoiced costs to ensure that they are
identical to the costs reported in the monthly progress reports and that
they are reasonable. After EPA and the contractor have resolved any
billing discrepancies, personnel at the Financial Management Center at
Research Triangle Park (FMC-RTP) transfer the appropriate funds to the
contractor.
The monthly invoice review and approval process is depicted in
Exhibit 10-1. A step-by-step explanation of the process follows.
B Contractor Submission of Invoice and Invoice Site Attachment
The contractor submits an original and four copies of the invoice and the
invoice site attachment, two to the PO (one bound and one unbound to
distribute to WAMs for review), one to the CO, and the original and one
copy to EPA's FMC-RTP as specified in Section G of the contract.
FMC-RTP personnel date-stamp the invoice, record the invoice in the
Contract Payment System (CPS), and perform an "initial audit" for
validity, funding, and discounts. If FMC-RTP personnel determine the
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Review additional documents
CHAPTER 10 • COST MANAGEMENT
Exhibit 10-1. Process Flow for
Monthly Invoice Review
51-03W8D
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Last-minute changes in EPA
policy may affect RAC
equipment procedures.
invoice is invalid for clerical reasons, they notify the PO and return the
invoice to the contractor for correction. If FMC-RTP personnel determine
that the invoice is valid, they prepare a PO forms approval package that
includes the appropriate approval/suspension/disallowment form and
forward the package to the appropriate PO.
Upon receipt of the PO approval package, the PO has 15 days to finalize
the invoice review, complete the appropriate payment forms, and return
the approval package to FMC-RTP. It is the PC's responsibility to ensure
that the review process is thorough and proceeds in a timely manner.
- Receives two copies of contractor invoice.
- Receives PO forms approval package from FMC-RTP.
- Ensures review process is thorough and proceeds in a timely
manner.
- Receives a copy of the contractor invoice.
GEE Reviewing Invoice Against Monthly Progress Report
The PO forwards copies of the contractor's invoice to the appropriate
WAMs for their review. The WAMs compare the monthly invoice with
the monthly progress report to verify that the contractor's claimed goods
and services have been delivered satisfactorily, that the invoiced costs
match the costs reported in the progress reports, and that the invoiced
amount satisfies the criteria for reasonableness. The WAM completes a
Documentation of Invoice Review and Approval form to document the
results of his or her invoice review. The WAM identifies deliverables
received during the invoicing period on this form and indicates acceptance
of the deliverables by signing the form. The WAM also notifies the PO if
any aspect of the contractor's performance or fees appears unsatisfactory
or if there are any additional concerns related to the invoice.
The PO considers the information from the WAMs, reviews the invoice,
and determines if the invoiced costs are reasonable. The PO also reviews
the invoice site attachment to ensure that the contractor is properly
allocating site-specific costs. The CO also may review the invoice and
compare it with the progress report.
During reviews of the contractor's invoice, EPA personnel should con-
sider the items listed in Exhibit 10-2. This list includes questions that
will assist the WAM in determining the reasonableness of the contractor's
monthly costs through verification of invoice summary data. EPA person-
nel also should consult their Regional invoice review guidelines.
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CHAPTER 10 • COST MANAGEMENT
Exhibit 10-2. Items to Consider in Reviewing Monthly Invoices
Q Is the contract number valid?
Q Is the account number portion of the work assignment number valid?
Q Is the level of effort charged commensurate with progress?
Q Do the labor hours appear to be appropriate?
Q Does the labor mix appear to be appropriate?
Q Are the hours charged by category within the ceilings or estimate?
Q Was overtime charged?
Q If overtime was charged, was it charged at premium rates and was it preapproved?
Q Are local travel expenses warranted and reasonable?
Q Is the purpose of out-of-town travel documented and consistent with project needs?
Q Was the travel conducted by the appropriate number of people?
Q Was a lease-versus-purchase analysis for equipment conducted and documented?
Q Is the quality of the equipment commensurate with the needs of the project?
Q Were the quantities of purchased equipment reasonable?
Q Are photocopying charges commensurate with the magnitude of deliverables?
Q Are communications charges commensurate with the needs of the project?
Q If present, do the "miscellaneous" charges seem reasonable and commensurate with the work performed?
Q Have subcontractors received appropriate EPA approval to perform work on the contract?
Q Is the level of effort charged by subcontractors commensurate with the level of progress
Q Are the subcontractors' costs appropriate for the type of activities and progress made?
Q If the subcontract is cost reimbursement, has the prime contractor provided a breakdown
of charges by element of cost?
Q Do the site-specific invoice attachments agree with the invoice?
Q Does the site-specific detail attachment contain the correct financial information (activity code, site spill ID, etc.) as
directed in the work assignment?
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
The PO can suspend payment of
all or part of an invoice until cost
issues are resolved.
Only the CO can disallow costs.
- Compares monthly invoice with monthly progress report to
ensure that work performed and costs billed are accurate and
appropriate.
- Compares monthly invoice with monthly progress report.
- Determines if invoiced costs are reasonable.
- Ensures that contractor is properly allocating site-specific costs.
- May review invoice and progress report.
BUSH Resolving Payment Issues and Approving Invoices
If the claimed costs are found to be reasonable, the PO indicates his or her
approval on the appropriate form, which is included in the FMC-RTP PO
forms approval package, and submits the completed PO approval package
to FMC-RTP for final processing and payment.
If any portion of the claimed costs is determined to be unacceptable by the
PO and the issue has not been resolved with the contractor, the PO should
suspend payment of the questioned costs by completing the appropriate
form, included as part of the PO forms approval package, and attaching a
detailed explanation. The PO should notify the contractor that the pay-
ment has been suspended. The PO also should request additional
information from the contractor detailing the invoiced costs, including all
additional supporting documentation. The PO, with the appropriate
assistance of the WAM, should continue his or her attempt to resolve the
issue.
If the PO is able to resolve the issue later, the contractor may choose to
reinvoice. If, however, the PO is unable to resolve the issue with the
contractor, the PO can recommend to the CO that the suspended portion
of the invoice be disallowed. The PO should then submit all relevant
documentation to the CO for a determination regarding the reasonableness
of the invoiced costs.
The CO contacts the contractor to again attempt to resolve the issue. If
the CO finds that contractor costs are unreasonable, the CO can formally
disallow the costs. The ability of the government to disallow costs is an
important cost management tool that can be used only by the CO. A cost
is disallowed when the CO has made a final determination that the gov-
mment will not pay that portion of the invoice or voucher. The CO must
notify the contractor in writing that the specific cost, or entire invoice,
was disallowed and must include an explanation for the disallowment.
Costs also may be questioned on previously paid invoices if the WAM or
PO did not have an adequate opportunity to conduct an in-depth review of
the invoice. If these costs are suspended, or disallowed, the amount can
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CHAPTER 10 « COST MANAGEMENT
be deducted from the contractor's current invoice. If the contractor has
completed the work and all invoices have been paid, the CO has the
authority to require reimbursement of the disallowed charges.
The contractor may submit a claim for disallowed costs which initiates the
claims and disputes process described in section 4.6.
WAM/ - Assists PO in resolving invoice issues with contractor.
- Approves or suspends payment of contractor invoice.
- Attempts to resolve payment issues with contractor.
- Signs appropriate EPA form and submits it to FMC-RTP for
processing.
- May recommend that CO disallow suspended invoice costs.
- May disallow costs based on PO recommendation.
10.3 Conducting Voucher/Invoice Validation Reviews
The CO or designated representative conducts voucher/invoice validation
reviews yearly and as needed. The voucher/invoice validation review
process is shown in Exhibit 10-3. A step-by-step explanation of this
process follows.
EQ2I Initiating Voucher/Invoice Validation Review
The CO or designated representative conducts a voucher/invoice valida-
tion review of each contractor at least once a year. The PO may request
the CO to perform a voucher/invoice validation review if there are perfor-
mance or work issues and if other methods of invoice review, such as
financial monitoring reviews, voucher/invoice audits by the Defense
Contract Auditing Agency (DCAA) or the Office of Inspector General
(OIG), or current annual incurred costs audits, are not available. The CO
reviews the recommendation and determines if a voucher/invoice valida-
tion review is necessary.
In selecting the vouchers/invoices for review, the CO should observe the
following guidelines:
• one or more public vouchers/invoices per contract should be randomly
selected for review
• a sample of costs from all cost elements should be reviewed
• the public vouchers/invoices selected for review should not be the
same vouchers/invoices reviewed by the Financial Analysis Section
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MAC U8BR8' OUIDB, VOLUME 2: PROCESS GUIDE
Exhibit 1M, Process Row for
Voucher/Invoice Validation
Review
Latt-mlnute changes in EPA
policy may affect RAC
equipment procedures.
Conducts voucher/
invoice validation
review
Documents
findings to PO
and Chief, FAS
Discuss findings and proposed actions
Monitor
contractor L_
. performance/
51-03M9B
(FAS) in the financial monitoring report or DCAA's voucher/invoice
review
FO j - May request CO to perform voucher/invoice validation review.
- Conducts voucher/invoice validation review at least once a year
or as requested by the PO.
- Selects appropriate vouchers/invoices to review.
Conducting Voucher/Invoice Validation Review
The CO or designated representative conducts a physical review of a
representative random sample of the selected vouchers/invoices and all
supporting documents, and prepares a report detailing any anomalies,
discrepancies, problems, or other areas of concern. Specific areas and line
items that should be examined when conducting a voucher/invoice
validation review are illustrated in Exhibit 10-4. The CO uses this
checklist to document the review and retains it with other relevant paper-
work in the contract file.
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CHAPTER 10 • COST MANAGEMENT
Exhibit 10-4. Checklist for Voucher/Invoice Validation Review, page 1 of 4
Contractor Name: Contracting Program:
Contract No.: Region:
Reviewer's Name: Review Completion Date.
Voucher Number(s) Reviewed:
Voucher Performance Period(s):.
Step
Performed Reviewer's
(Y/N) Initials Date Review Procedures
1. Review the public voucher for completeness (i.e., company name, total
costs, signatures, dates, contract number, period of performance, etc.) and
determine if costs are presented in the format required by the contract and
billed in accordance with government regulations. Also determine the
following:
a. Are individual cost elements adequately shown?
b. Are cumulative costs adequately shown?
c. How often are vouchers submitted for payment?
d. Is there evidence in the contract file that the voucher
was received and approved by the PO?
2. Ascertain that claimed costs have been incurred, or actually paid,
dependent upon the terms of the payment clause of the contract. Also
determine if the contractor maintains adequate supporting records for all
claimed costs.
3. Make a quick check of the mathematical accuracy of the public voucher.
4. Verify that billed costs were incurred within the period of performance
authorized under the contract, delivery order, etc.
5. Review cumulative costs claimed to assure that the amount claimed
does not exceed the total estimated cost (excluding fee) authorized under
the contract, WA, or delivery order if appropriate.
6. Review and verify that indirect costs claimed are being billed at
contractually established rates. Assure that you have the latest agreement
issued by the Cost Policy and Rate Negotiation Section for the contractor.
7. Verify that the fee billed is in accordance with contractual provisions
and that fee withheld complies with requirements of the contract.
8. Review any special contract provisions for payment restrictions such
as ceilings, etc.
9. Review and determine if site-specific costs are correctly accumulated
and billed.
10. Review and determine whether there is or has been a history of
suspended or disallowed billings, and if so, what is the current status?
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 10-4. Checklist for Voucher/Invoice Validation Review, page 2 of 4
Contractor Name:
Labor
Contract Number:
Specific emphasis should be given to labor costs. The reviewer should assure answers to the following questions.
Step
Performed
(Y/N)
Reviewer's
Initials
Date
Travel
Step
Performed
(Y/N)
Reviewer's
Initials
Date
1. Will the total LOE be exceeded before the contract performance
period expires?
2. Did the contractor charge premium for overtime worked? Was it
authorized by the Contracting Officer in advance? Was it charged consistent
with the contractor's established practice?
3. Are the hours charged within the estimates specified in the work
plan/delivery order?
4. Do the employees billed meet the contract requirements for the
category in which they are billed? (You can ask the contractor for specific
employees' resumes and compare them to the labor category requirements.)
5. Does the labor mix appear to be appropriate?
6. Are labor hours and rates supported by timesheets and the payroll
register?
7. Are there any dollars being charged to direct labor that are not being
charged to LOE? (clerical and management)
1. Determine that travel expenses are adequately justified by supporting
documentation and were related specifically to a contract requirement.
2. Determine if the sample travel expenses reviewed comply with
contractual limitations, the contractor's policies, and the Government
Travel Regulations (GTR).
51-03M3P10
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CHAPTER 10 • COST MANAGEMENT
Exhibit KM. Checklist for Voucher/Invoice Validation Review, page 3 of 4
Contractor Name:
Contract Number:
Other Direct Costs
In the area of other direct costs (ODCs). the reviewer must thoroughly review supporting documentation to ensure that all ODCs
sampled are adequately supported and do not exceed any contract dollar ceilings. Also review any subcontract ODCs for ceiling
limitations. In addition, determine the following:
Step
Performed Reviewer's
(Y/N) Initials
Date
Subcontracts
Step
Performed Reviewer's
(Y/N) Initials
Date
1. Carefully sample any charges in the miscellaneous category and
transactions in other categories.
2. Ascertain whether the contractor charges similar costs direct to all
other clients.
3. Determine if any expenses that should have been charged to overhead
were charged as ODC expenses.
4. Validate direct purchases of supplies, materials, equipment, etc. and
determine whether property has been purchased and properly approved
under the contract.
5. Review the purchase document (purchase order, etc.) to see who
authorized the purchase.
6. Compare the purchase document with the vendor's invoice. This should
then be compared with the contractor's voucher to EPA. Determine the
reason for any difference.
1. Verify a sample of subcontract costs claimed. Ascertain that items
and services claimed were purchased directly for the contract. Verify that
subcontractor's costs are properly shown on the prime contractor's
vouchers. Assure that the contractor monitors subcontractor costs by cost
element as well as by entity. Assure that indirect cost rates on subcontracts
are periodically adjusted to reflect actual rates incurred. Validate support
for subcontractor invoices.
2. Assess the adequacy of the prime contractor's monitoring of the
performance of subcontractors.
3. Determine whether the subcontractors sampled have been properly
approved by the Contracting Officer in accordance with the terms of the
contract. Review the contract agreement between the pnme and
subcontractor. Be aware of any potential conflicts of interest.
51-033-53(3)E
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RAG USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 104. Checklist for Voucher/Invoice Validation Review, page 4 of 4
Contractor Name:
Report Preparation
Step
Performed Reviewer's
(Y/N) Initials
Date
Documentation
Step
Performed Reviewer's
(Y/N) Initials
Date
Contract Number
1. Summarize the results of the review.
2. Discuss results with the Contracting Officer, Chief of the Financial
Analysis Section, and FACO (when applicable) for assurance of a thorough
understanding of the issues.
3. Disclose financial and contracting issues that need interpretation or
clarifications.
4. Prepare file notes for identification of problem areas to be included in
future and follow-up reviews.
5. Prepare draft report and obtain necessary approval of the draft.
6. Prepare and issue the final report.
1. Complete the review checklist
2. Package the report, checklist, correspondence, and workpapers into
a file to be maintained as part of the contract file.
51-03W3(4)D
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CHAPTER 10 • COST MANAGEMENT
CO) - Conducts physical review of vouchers/invoices or assigns task
to designated representative.
- Prepares report detailing any discrepancies.
EQjB Documenting Findings
The CO forwards the review report to the FAS Chief. The findings also
are presented to the PO to discuss any concerns related to the monthly
invoice approval process (see section 10.5). Any procedural questions
should be forwarded to the FAS Chief.
s~~>
CO ) - Forwards report to FAS.
- Provides findings of voucher/invoice validation review to PO.
The WAM, PO, and CO meet with the contractor to discuss any problem-
atic aspects of the contractor's voucher/invoice submission procedures.
Any necessary changes should be discussed at this meeting, along with a
time frame for implementing the changes.
PO
»—>
CO
• Meet with contractor to discuss contractor's voucher/
invoice submission procedures.
EEH Monitoring Contractor Performance
The WAM and PO continue to monitor contractor performance to ensure
contractor compliance with the proper voucher/invoice submittal process
and compliance with the recommendations of the CO.
PO
- Monitor contractor compliance with proper voucher/invoice
submittal procedures.
10,4 Required, Core, and Noncore Elements of Cost Management
The required, core, and noncore elements of cost management are identi-
fied in Exhibit 10-5. Chapter 1 provides definition of required, core, and
noncore elements and explains Regional responsibilities for incorporating
each element.
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MAY 31, 1998
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RAG USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 104, Required, Core, and
Noncore Elements of Cost
| Required
Monitoring contractor costs throughout life of contract, at contract, WA, and
task levels
Review of monthly technical and financial progress reports to assess contractor
progress and compliance with schedules and budgets
PO review and approval of contractor invoices to ensure that approved invoice
costs are reasonable per FAR Part 31 requirements
CO performance of yearly voucher/invoice validation reviews (per an Office of
Acquisition Management memorandum dated August 3,1993)
WAM oversight of contractor cost documentation to ensure ERA'S ability to
recover costs from potentially responsible parties
Core
1
Use of Regionally developed CIS to track contract costs and progress
Noncore
Specific procedures and division of responsibilities may vary by Region.
51-OJM8B
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MAY 31, 10QB
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CHAPTER 10 « COST MANAGEMENT
10.5 Region-Specific Guidance on Cost Management
Applicable guidance to be inserted by the Region following this page.
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MAY 31, 1905
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Response Action Contract
(RAQ Users' Guide
Vb/«me2: Process Guide
Records
Management
CHAPTER
MAY 31, IMS
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RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
11.1 Establishing Files 11-1
11.1.1 Establishing Contract Management Files 11-1
11.1.2 Establishing Site Files 11-3
11.2 Maintaining Files 11-6
11.3 Retiring Files n-7
11.3.1 Retiring Contract Management Files 11-7
11.3.2 Retiring Site Files 11-8
11.3.3 Retirement Process 11-8
11.4 Required. Core, and Noncore Elements of Records Management 11-13
Acronyms
ARARs Applicable or Relevant and
Appropriate Requirements
CERCLIS Comprehensive
Environmental Response,
Compensation and Liability
Information System
CO Contracting Officer
FRC Federal Records Center
MRS Hazard Ranking System
LOE Level of Effort
NPL National Priorities List
O&M Operations and
Maintenance
PO Project Officer
POLREPS Pollution Reports
PRP Potentially Responsible
Party
RAC Response Action Contract
RC Records Center
ROD Record of Decision
RPM Remedial Project Manager
SF Standard Form
SOP Standard Operating
Procedure
SOW Statement of Work
WA Work Assignment
WAM Work Assignment Manager
Exhibits
Exhibit 11-1
Exhibit 11-2
Exhibit 11-3
Exhibit 11-4
Exhibit 11-5
Exhibit 11-6
11.5 Region-Specific Guidance on Records Management 11-15
Contents of the Work Assignment Manager, Project Officer,
and Contracting Officer Contract Management Files 11-2
Removal Site File Structure, EPA Series No. Site-013 11-4
Remedial Site File Structure, EPA Series No. Site-014 11-5
Milestones Used to Retire Contract Management Files 11-7
Sample Standard Form 135 11-11
Required, Core, and Noncore Elements of Records
Management 11-13
MAY 31, 1995
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CHAPTER 11 « RECORDS MANAGEMENT
This chapter describes the records management process, which is com-
prised of three activities: establishing files, maintaining files, and retiring
files. Response Action Contract (RAC) records management involves both
contract files and site files created during RAC activities. The contents,
maintenance, and retirement of contract files and site files differ, as do the
procedures for handling them. Responsibilities of the records management
team—the Work Assignment Manager (WAM), Project Officer (PO), and
Contracting Officer (CO)—are highlighted in each step of the process.
This chapter presents standard procedures for RAC records management.
These procedures promote national consistency in RAC management and
exemplify good contract management practices. Required, core, and
noncore elements of guidance are identified at the end of the chapter.
Required elements are mandated by the contract, by directive, or law, and
must be followed. Core elements represent significant aspects of RAC
management that are generally supported or outlined by Agency imple-
mentation guidance. Noncore elements are minor aspects of contract
administration that allow for variances in Regional procedures. While
noncore elements are discretionary, Regions may deviate from core
elements only if they provide documentation of the deviation to the RAC
Long-Term Contracting Strategy Program lead and EPA Headquarters
agrees with the Region's procedure. Chapter 1 contains detailed defini-
tions of required, core, and noncore elements of guidance.
11,1 Establishing Files
The WAM, PO, and CO are the key players who facilitate the records
management process and are responsible for establishing contract man-
agement files. The WAM, in addition to establishing his or her own
contract management file, compiles the final deliverables file and over-
sees the formation of the removal and remedial site files. This section
explains the responsibilities in establishing the various related files.
11.1.1 Establishing Contract Management Files
Important documents relating to contract execution are maintained in one
of four contract management files: the WAM contract management file
(CONT-020c), the PO contract management file (CONT-020b), the CO
contract management file (CONT-020a), or the final deliverable file
maintained by the WAM. Each contract management file is identified by
an EPA record series number. RACs records fall into two main record
series:
• CONT-020 Superfund Site-Specific Contract Management Records
• CONT-258 Final Deliverables
11-1
Important documents relating to
contract execution are maintained
in one of four contract management
files.
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RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 11-1, Contents of the
Files
The WAM, PO, and CO contract management files fall under series
CONT-020. Exhibit 11-1 identifies the contract documents that the WAM,
PO, and CO are required to maintain. The WAM, PO, and CO create
labeled folders for each type of document to be filed, and place docu-
ments in them as they are received, in reverse chronological order. An
index form listing all records should be included in the file.
The CO contract management file is designated as EPA series number
CONT-020a. In addition to the required documents listed in Exhibit 11-1,
the CO may keep other documents to support his or her contract manage-
ment responsibilities (such as financial reports and progress reports).
The PO contract management file is designated as EPA series number
CONT-020b. In addition to the required documents listed in Exhibit 11-1,
the PO may keep records supporting his or her contract management
responsibilities (such as a copy of the contract and contract modifica-
tions).
Contract management records and final deliverables received by the
WAM are filed under CONT-020c and CONT-258, respectively. A WAM
contract management file includes documents used for daily technical
CO CONTRACT
MANAGEMENT FILE
EPA SERIES No.
CONT-020A
PQ CONTRACT
MANAGEMENT FILE
EPA SERIES NO.
CO NT- Q2OB
WAM CONTRACT
MANAGEMENT FILE
EPA SERIES No.
CONT- OZOC
Request for Proposals
Successful Bids & Proposals
Contract & Modifications to the Contract
Contrflct SpodiJCfltions
Drawings & Manuals Incorporated into Contract by Reference
PO & Contract Monitor Designations
Notices to Proceed, Stop Work, or Correct Deficiencies
Contract Statement of V
Contract Levels of Effort (L
• Performance Evaluations
Technical Progress Reports
Financial Progress Reports
& Payment Documents
Invoices and Invoice Approval Forms
•Work Plans & Schedules
• Draft Deliverables Submitted by Contractor
• Comments Provided to the Contractor
• Records of Technical Direction
• Contract Monitoring Logs
* Contract Communication Records
•Meeting Records & Notes
• Evaluation Forms
• Final Deliverables
•SOW Documents
• LOE Documents
51-033-171A
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CHAPTER 11 • RECORDS MANAGEMENT
direction of the work assignment (WA), while the final deliverable file
contains the final draft/final deliverables submitted by contractors to EPA.
The required documents for both files are listed in Exhibit 11-1.
- Establishes a contract management file and a final deliverable
file.
- Files documents in reverse chronological order within subject
labeled file folders.
- Establish a contract management file.
- File documents in reverse chronological order within subject
labeled file folders.
11,1.2 Establishing Site Files
All site-specific information is stored in one of two files: the remedial site
file or the removal site file. The Remedial Project Manger (RPM) of a
remedial site is responsible for the establishment and maintenance of the
remedial site file, and the On-Scene Coordinator (OSC) of a removal site
is responsible for the establishment and maintenance of the removal site
file. The Site Assessment Manager is responsible for the establishment
and maintenance of the pre-remedial site file. The RPM, the OSC, or the
Site Assessment Manager may serve as the WAM for the site. If perform-
ing both functions, he or she is responsible for the WAM contract man-
agement file and the site file. If not, the WAM must supervise the forma-
tion of the site file by the appropriate individual. In this guide, the generic
term WAM is used to refer to the person responsible for a site file.
While remaining the WAM's responsibility, the site files themselves are
stored and maintained by the Record Center (RC) staff. The WAM sends
all documents or copies of documents to the RC for filing, including
copies of final deliverable records. The RC staff creates folders, files the
documents, and pulls site file documents for administrative record (AR)
compilation when requested by the WAM or RC manager.
Site files are established at various times, depending on site activity. A
removal site file is established when a potentially contaminated site is
identified. A remedial site file generally begins with documents from a
pre-remedial site file. When a site is placed on the National Priorities List
(NPL), documentation from the pre-remedial site file is placed in the
remedial site file.
The removal site file, EPA series number SITE-013, contains site-specific
documents on removal activities performed by EPA or non-EPA entities
(state, potentially responsible party [PRP], Federal facility, other). The
removal site file contains site-specific documents relating to emergency,
11-3
The removal site file may be used for
cost recovery, public access, litigation,
enforcement support, and historical
documentation.
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RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 11-2. Removal Site File
Structure, EPA Series
No. Site-013
The remedial site file contains site-
specific documents pertaining to
remedial activities performed by
EPA or other entities.
time-critical, and non-time-critical removal activities. Specifically, the
removal site file includes correspondence; memoranda; work plans;
financial and technical progress reports; sampling and analysis data;
pollution reports (POLREPS); SOWs and other site-specific contract
documentation; Comprehensive Environmental Response, Compensation
and Liability Information System (CERCLIS) Superfund removal docu-
ments; and removal response documents. Removal site file structures vary
Regionally, and the appropriate Region should be contacted for the
Region-specific removal site file structure.
A general listing of the documents required for a complete removal site
file and a sample structure is illustrated in Exhibit 11-2. Photographs,
publications, maps, architectural materials, forms, video, and film are
acceptable media for the file. The site file incorporates documentation of
all efforts to remove waste from the site, and is used for cost recovery,
public access, litigation, enforcement support, and historical documenta-
tion purposes.
CERCLIS Removal Site Records
Correspondence & Memoranda
Removal Response Reports
Sampling & Analysis Data
POLREPS
OSC Reports
Work Plans
Financial & Technical Progress Reports
Cost Reports & Invoices
Statements of Work (SOWs)
Action Memoranda
Interagency Agreements
Applicable or Relevant and Appropriate Requirements (ARARs)
Daily Work Reports
Daily Financial Reports
Delivery Order/Purchase Orders
Removal Response Subcontractor Documents
51-033-20C
The remedial site file, EPA series number SITE-014, contains site-specific
documents pertaining to remedial activities performed by EPA or non-
EPA entities (state, PRP, Federal facility, other). Documents generally
included in the remedial site file include the pre-remedial site file docu-
ments and pre-record of decision (ROD), post-ROD, and operation and
maintenance (O&M) documents. Exhibit 11-3 lists the documents re-
quired for a remedial site file and provides a sample structure. Photo-
graphs, publications, maps, architectural materials, forms, video, and film
are acceptable media for the file. The site file incorporates all historical
documentation of efforts to remediate the site and may be used for cost
recovery, public access, litigation, enforcement support, and historical
documentation purposes. Remedial site file structures vary Regionally,
and the appropriate Region should be contacted for the Region-specific
remedial site file structure.
11-4
MAY 31, 1995
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CHAPTER 11 • RECORDS MANAGEMENT
PRE-REMEDIAL
REMEDIAL
INVESTIGATION
FEASIBILITY
STUDY
RECORD OF
DECISION
REMEDIAL
DESIGN
Exhibit 11-3. Remedial Site File Structure
EPA Series No. Site-014
• CERCUS Site Discovery
• Preliminary Assessment
• Site Inspection
•Records Related to CERCUS
• Correspondence Related to
CERCUS
• Hazard Ranking System (MRS)
• Correspondence Related to
Proposal of a Site to the NPL
• Comments & Responses
> MRS Narrative Summary
• Quality Assurance-Signed MRS
Package
• Hazard Ranking Package
• Correspondence &
Memoranda
- Sampling & Analysis Data
•ARARs
• Remedial Investigation Reports
• Health & Safety Plans
* Ertdangerment Assessments
•Risk Assessments
• Correspondence &
Memoranda
• Sampling & Analysis Data
•ARARs
•Feasibility Study Reports
• Proposed Plans for Selected
Remedial Action
• Correspondence &
Memoranda
• ROD Delegation Documents
• Responsiveness Summanes
•ROD
• State Concurrence Letters
> Correspondence & Memorand
> Sampling & Analysis Data
• Remedial Design Documents
• Interagency Agreements
•Work Plans
• Progress Reports
• Inspection Reports
SITE
CLOBEOUT
• Correspondence &
Memoranda
• Sampling & Analysis Data
•SOWs
•ARARs
• Remedial Action Documents
• Work Plans
• Progress Reports
• Cost Reports & Invoices
> NPL Deletion Packages
>0&M Plans
> Monitoring Agreements
• Inspection Reports
POTENTIALLY
RESPONSIBLE
PARTIES
COMMUNITY
RELATIONS
CONGRESSIONAL
INQUIRIES
•PRP Lists
• Correspondence &
Memoranda
•PRP Searches
• PRP Investigations
• Correspondence &
Memoranda
• Community Relations Plans
• Freedom of Information Act
Requests
• Transcripts
•Testimony
•Published Hearing Records
•Correspondence &
Memoranda
5I-03WE
11-5
MAY 31, 1995
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RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
An index farm listing the folders
and documents contained in the
folders must be maintained in the
front of WAM, PO, and CO
contract management files.
Copies of site file documents also may be filed in other files for cost
recovery, public access, or litigation support. These files are:
• SITE-019 Administrative Record—Superfund Site-Specific
• SITE-024 Cost Recovery Records
- Responsible for site files.
- Sends site-specific documents or copies of documents from
other files to the RC for compilation in the site files.
11,2 Maintaining Files
The WAM, PO, and CO maintain their respective contract management
files and are responsible for indexing and tracking all the information in
the files. An index form must be maintained for each file. The index form
should list the folders in the contract management file and the specific
documents contained within each folder. For example, the index form of a
PO contract management file lists monthly technical progress reports as a
folder as well as listing the technical progress reports for May, June, July,
etc., separately on the index form. The index must be updated when new
documents are added to file folders.
The WAM also is responsible for filing copies of site-specific final
deliverables in the final deliverables files as well as in the site file. Other
noncontract site file documents also should be filed in the site file. During
the course of the contract, the contractor submits deliverables to EPA.
Deliverables meet contract and WA requirements, and provide site-
specific information, so they are included in both the final deliverable file
and the site file. For deliverables produced in relation to remedial sites,
the WAM has the option of placing the documents in the site file and
providing a cross-reference to them in the final deliverable file. This
option is available only for remedial site files because the retention period
is permanent for both the remedial site files (SITE-014) and the final
deliverables file (CONT-258). Deliverables produced in relation to
removal sites must be filed in both the removal site file (SITE-013) and
the final deliverables file (CONT-258) because removal site files are kept
for only 30 years.
Records are cross-referenced by filing a reference deliverable. A reference
deliverable is either a slip sheet or a copy of the transmittal letter sent by
the contractor to the WAM with the deliverable. A slip sheet notes when
the deliverable was received, that the deliverable is in EPA possession,
and where it is filed. In the transmittal letter, the WAM specifies where
the deliverable is located. As site files are voluminous, they are housed at
11-6
MAY 31, 1905
-------
CHAPTER 11 « RECORDS MANAGEMENT
the Superfund RC and monitored by RC staff. The WAM, however, is
ultimately responsible for all site files.
- Indexes and tracks all information in the WAM
contract management file.
- Maintains the final deliverables and site files.
FO | - Indexes and tracks all information in the PO contract
management file.
CO ) - Indexes and tracks all information in the CO contract
management file.
11,3 Retiring Files
The WAM, PO, and CO each retire his or her contract management files
separately; there is no merging of documents or files among them. WAM,
PO, and CO contract management files, final deliverables files, and site
files are retired at different milestones. Retirement procedures and
timelines are discussed in this section.
11.3.1 Retiring Contract Management Files
When the WAM, PO, and CO contract management files become inactive,
they are broken and retired to the Federal Records Center (FRC). Contract
management records are active as long as the WA or contract has not
reached the milestone identified in Exhibit 11-4. The inactive files are
held for a year in the RC before they are broken and retired to the FRC.
The WAM, PO, and CO are responsible for retiring only those documents
for which they are officially responsible. Exhibit 11-1 lists the records to
be retired in each of the contract management files.
The final deliverables file is broken upon project completion. Final
deliverable records are permanent and are kept in the Agency for one year
Individual
Milestones Used to Retire Contract Management Records
Completion of final invoice for the WA and after notification from the PO
p0| • Completion of final invoice for the final WA
Termination of the contract
51-033-1728
Exhibit 11-4. Milestones Used to
Files
11-7
MAY 31, 1905
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The remedial site file is broken
when the ROD is issued for the
site or thereafter at the
appropriate milestone.
The removal site file is broken
upon the completion of cost
recovery.
after the file break, after which they are retired to the FRC. The file is
transferred to the National Archives when the most recent record within
the file is 20 years old. The WAM is responsible for breaking and retiring
the file, and ensuring that a permanent record is maintained.
If records have been properly created, filed, and maintained, there should
be no reason to check the contents against equivalent contractor-held
records. However, if there is significant concern that the contractor may
have documents that are not in the WAM, PO, and CO files, then the
contents of the WAM, PO, and CO files should be compared with contrac-
tor files for completeness.
11.3.2 Retiring Site Files
The remedial site file is broken when the ROD is issued for the site or
thereafter at appropriate milestones as determined by the WAM, RC
manager, and an attorney, who decide to retire the remedial site file
because of excess site file volume. The WAM is responsible for the
contents of the site file and ensures that all required documents are
present, such as those listed in Exhibit 11-3. The records in the remedial
site file are permanent. The WAM keeps the site file at RC for one year
after the file has been broken, then retires the file to the FRC. The site file
will be transferred to the National Archives five years after the statute of
limitations expires or after all cost recovery actions have been completed,
whichever comes later.
The removal site file generally is broken upon completion of cost recov-
ery unless the removal becomes part of a remedial action. The WAM is
responsible for the contents of the site file, and ensures that all required
documents are present, such as those listed in Exhibit 11-2. The WAM
keeps the removal site file at the RC for one year after the file has been
broken, then retires the file to the FRC. The removal records are kept at
the FRC for 30 years before being destroyed. If a removal action becomes
part of a remedial action, records are reassigned to the remedial site file
and ultimately disposed of according to remedial records procedures.
JVAMy - Responsible for retiring the remedial and removal site
files.
11.3.3 Retirement Process
All contract and site files are retired to the FRC. Each file is retired at a
different stage in the project, and different individuals are responsible for the
retirement of different files. While each Region has its own specific process
or file retirement, four main steps generally are followed:
11-8
MAY 31, 1995
-------
CHAPTER 11 « RECORDS MANAGEMENT
• preparing and boxing records for shipment to the FRC
• preparing box lists identifying the contents of the boxes
• labeling boxes in numerical order
• completing a Standard Form 135 (SF 135) to be transmitted with each
box to the FRC
A general outline of the retirement process is described in this section, but
the Regional Records Officer should be contacted for detailed instructions
on Region-specific retirement procedures.
Preparing and Boxing Records for Shipment
To prepare records for retirement, the WAM, PO, and CO:
• Screen the records to remove extra copies of documents and nonrecord
items. If there are duplicate copies of a document or publication, the
best copy should be retired and the remaining destroyed.
• Ensure that documents are in clearly labeled folders (see Exhibits 11-1,
11 -2, and 11 -3). If not, they must be placed in folders and clearly and
logically labeled. Boxes will not be accepted for retirement if the
documents are not in organized, labeled folders.
• Place files in their proper order (see Exhibits 11 -1,11 -2, and 11 -3). The
best way to place the folders in the boxes is to arrange the folders in
file structure order. Documents in individual folders are to be arranged
in chronological order. Special media, including microfilm and audio-
visual tapes, have special boxes.
Once the records are prepared, they must be boxed for shipment to the
FRC. Record retirement boxes must be used to retire files to the FRC. This
is the only size box that the FRC will accept for records storage. Records
are boxed and retired to the FRC in groupings called "accessions."
Accessions consist of one or more boxes, all containing the same type of
records with the same closure date (or year when broken). For example,
WAM contract files are filed separately from PO and CO contract files,
although all three files contain documents relevant to the same work
because WAM contract files are broken upon completion of the final
invoice for the WA, PO files are broken upon completion of the final
invoice for the final WA, and CO contract files are broken at the end of
the contract. Different breaking milestones, resulting in different retention
periods, require separate retirement.
The WAM, PO, or CO must prepare a box list identifying the contents of
each box so the FRC knows what folders are in each box. The folders
listed on the box list must correspond exactly to the labels on the folders.
A box list for a removal site file would resemble the following:
Records are retired in groups of
similar records called accessions.
11-9
MAY 31, 1905
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
BOX 1 of 15 BOXES
1. Correspondence and Memoranda
2. Sampling and Response Data
3. POLREPS
4. Financial and Technical Progress
Reports*
BOX 2 of 15 BOXES
1. Removal Response Reports
2. SOWs*
3. ARARs
4. CERCLIS Removal Site
Documents
* Note: These are copies; the originals are found in the CONT-2O2b file.
A header should be made for each of the lists, containing the following
information:
• Record Series Number/Name
• Site Name (or contractor)
• Site ID Number (if any, or contract or WA number for contract files)
After the records are boxed and a box list has been prepared for each box
in the accession, the box number and accession number (obtained from
the Regional Records Officer) are written on each box. Accession num-
bers usually are written in black letters with a black ink marker in the
upper left corner of the front of each box. Box numbers usually are
written in the upper right comer of the front of the box. For example, for a
file that consists of 15 boxes, the first box should be numbered "1 of 15,"
the next "2 of 15," and so on. The Regional Records Officer should be
consulted for any special requirements the Regional FRC may have for
closing and sealing the boxes for shipment.
All records being retired to the FRC must be accompanied by a SF 135,
Records Transmittal and Receipt Form (Exhibit 11-5). Instructions for
completing the form are provided on the back of the form. The SF 135
documents the physical transfer of the accession to the FRC and provides
information such as the accession number, location, and box list. The
SF 135 is submitted by the WAM, PO, or CO to the FRC through the
Regional Records Officer for approval and signature. After approval, the
FRC forwards a copy of the SF 135 back to the Regional Records Officer
indicating that the records are approved for delivery to the FRC. A copy
of the SF 135 and the box lists for all boxes are placed in the first box of
the accession.
Shipping the Records to the FRC
The Regional Records Officer makes the necessary arrangements to
ensure that the records are delivered to the FRC. After the records are
received by the FRC, the SF 135 in the first box of the accession is
retrieved and assigned a location number. The location number is noted on
11-10
MAY 31, 1905
-------
RECORDS TRANSMITTAL AND RECEIPT
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Center for approval prior to shipment of records See specific instructions on reverse
PAGES
2 AGENCY
TRANSFER
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3 AGENCY
CONTACT
4 RECORDS
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INSTRUCTIONS FOR COMPLETION OF STANDARD FORM 135
FOR COMPLETION BY THE TRANSFERRING AGENCY
Items 1, 2, 3 and 5 are self-explanatory Specific instructions for item 6 are as
follows.
Col
Accession Number. A separate accession number is required for each
series of records listed on the form A series consists of records having
the same disposal authority and disposal date that are transferred
together to the records center The accession number is entered in
three parts, consisting of
(a) The NARA record group number assigned to the records of the agency
making the transfer;
(b) The last two digits of the current fiscal year; and
(c) A four digit sequential number obtained in advance from the records
center (Arrangement may be made with the center to have these
numbers assigned by the agency records officer or other official)
(d) Volume Enter the volume in cubic feet of each series of records being
transferred.
(e} Agency Box Numbers Show the inclusive box numbers for each series of
records being transferred The agency shall number each carton
sequentially as follows. 1 of 25, 2 of 25, 3 of 25, etc (Each new series of
records should begin with carton number 1) To facilitate control of the
records and future reference service, the agency also shall mark each
container with the assigned accession number prior to shipment
(/) Series Description Describe the records in sufficient detail to allow the
records center to check for proper application of the disposal schedule
Inclusive dates of the records should be indicated. Show the
organizational component that created the records when it is other
than that shown in item 5
(4?) Restriction. Enter one of the following codes to show a restriction on
use of the records Restrictions other than (or in addition to) se .urity
classifications, such as limiting access to certain agency officials are to
be specified by a statement in the Series Description column (0
• U SGPO 1990 282081120177
Code Retlnctiora
Q Q security classification
T Top Secret security classification
S Secret security classification
C Confidential security classification
R Restricted use—witnessed disposal not required
(specify in column (0)
W Restricted use—witnessed disposal required
(specify in column (0)
N No restrictions
(h) Disposal Authority For each series of records, cite the agency schedule
and specific item number authorizing disposal Cite the NARA disposal
job and item number if it has not been incorporated into an updated
agency schedule
(i) Disposal Date Applying the disposal authority previously cited in
column (h), enter the month and year in which the records may be
destroyed
FOR COMPLETION BY THE RECORDS CENTER
Item 4 is self-explanatory Specific instructions for item 6 are as follows1
Col
(j) Location The records center annotate!, the shelf location of the first
carton for each series of records
(k) Shelving Plan The records center enters the appropriate code from
Chap 7-10e, HB, Records Center Operations (NAR P 'l864 1A), to
reflect the shelving system
(/) Container Type The records center enters the appropriate code from
Chap 7-10h, NAR P 1864 1A, to reflect the type of container in which
the records are retired
(m ) Automatic DwoosaL The records center enters either Y (yes) to indicate
automatic disposal applies or N (no) indicating that the agency wishes
to receive disposal concurrence notice prior to destruction of the
records Automatic disposal is applied only when previously agreed
upon by the agency
Use Standard Form 135-A, Records Transmittal and Receipt Continuation,
when additional space is required for listing records data
Standard Form 136 Back (flav 7-86)
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CHAPTER 11 • RECORDS MANAGEMENT
the SF 135, and a copy is sent back to the Regional Records Officer. The
location number is needed to retrieve the records from the FRC.
11.4 Required, Core, and Noncore Elements of Records Management
The required, core, and noncore elements of RAC guidance for records
management are identified in Exhibit 11-6. Chapter 1 provides definitions
of required, core, and noncore elements and explains Regional responsi-
bilities for incorporating each element.
Required
WAM, PO, and CO establishment, maintenance, and retirement of contract
management files
WAM establishment, maintenance, and retirement of final deliverables and site
files
Core
None currently defined
Noncore
Regional procedures for retiring records may vary
51-OU-185A
Exhibit 11-6, Required, Core,
and Noncore Elements of
11-13
MAY 31, 1995
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CHAPTER 11 • RECORDS MANAGEMENT
11,5 Region-Specific Guidance on Records Management
Applicable guidance to be inserted by the Region following this page.
11-15
MAY 31. 1995
-------
Response Action Contract
(RAQ Users' Guide
Volume 2: Process Guide
Contract Closeout
CHAPTER
MAY 31, 1995
-------
RAG USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Table of Contents
Acronps
CIS Contract Information System
CO Contracting Officer
DCMC Defense Contract
Management Command
FAB Financial Analysis Branch
FAR Federal Acquisition
Regulation
FMC-RTP Financial Management
Center at Research Triangle
Park
PA Property Administrator
PCO Plant Clearance Officer
PO Project Officer
PS Program Support
RAC Response Action Contract
SAB Superfund Accounting
Branch
SOP Standard Operating
Procedure
WA Work Assignment
WAM Work Assignment Manager
WP Work Plan
12.1 The Contract Closeout Process
Step 1 Evaluating Contractor Performance
Step 2 Government Property Disposition
Step 3 The Contractor's Cumulative Claim and Rnal Allocation
Step 4 Submission of the Rnal Reports
Step 5 Verifying Completion of the Contract Closeout Process and Updating
the Regional Contract Information System
Step 6 Retiring Files
12.2 Required, Core, and Noncore Elements of Contract Closeout
12.3 Region-Specific Guidance on Contract Closeout
Exhibits
Exhibit 12-1 Process Flow for Administering Contract Closeout
Exhibit 12-2 Sample Contract Closeout Checklist
Exhibit 12-3 Sample Project Officer Certification Memo
Exhibit 12-4 Project Officer's Evaluation of Contractor Performance
(EPA Form 1900-27)
Exhibit 12-5 Contracting Officer's Evaluation of Contractor Performance
(EPA Form 1 900-26)
Exhibit 12-6 Contractor's Cumulative Claim and Reconciliation
(EPA Form 1900-10)
Exhibit 12-7 Sample Final Contract Audit Request
Exhibit 12-8 Contractor's Assignment of Refunds, Rebates, and Credits
(EPA Form 1900-5)
Exhibit 12-9 Contractor's Release (EPA Form 1900-6)
Pvhihit 19-10 Accinnoo'c Roloaco fFPA Pnrm 1Qfir\-.^
Exhibit 12-11 Assignee's Assignment of Refunds, Rebates, Credits,
and Other Amounts (EPA Form 1900-4)
Exhibit 12-12 Required, Core, and Noncore Elements of
Contract Closeout
1?-1
1?-1
1?-5
12-10
12-13
12-18
12-18
12-19
12-21
1?-?
1?-4
1?-R
12-11
12-12
12-14
12-15
12-16
12-17
12-19
MAY 31, 1905
-------
CHAPTER 12 » CONTRACT CLO8EOUT
This chapter describes the contract closeout process which begins with
issuance of the contract closeout work assignment (WA). It addresses the
seven contract closeout tasks defined in the Response Action Contract
(RAC) statement of work. Responsibilities of the contract management
team—the Work Assignment Manager (WAM), Project Officer (PO), and
Contracting Officer (CO)—are highlighted in each step of the process.
This chapter presents standard RAC management procedures to promote
national consistency in RAC management and exemplify good contract
management practices. Required, core, and noncore elements of this
guidance are identified at the end of the chapter. Required elements are
mandated by the contract, by directive, or law, and must be followed.
Core elements represent significant aspects of RAC management that are
generally supported or outlined by Agency implementation guidance.
Noncore elements are minor aspects of contract administration that allow
for variances in Regional procedures. While noncore elements are
discretionary, Regions may deviate from core elements only if they
provide documentation of the deviation to the RAC Long-Term Contract-
ing Strategy Program lead and EPA Headquarters agrees with the Region's
procedure. Chapter 1 contains detailed definitions of required, core, and
noncore elements of guidance.
12,1 The Contract Closeout Process
The contract closeout process involves evaluating contractor performance,
disposing of government property, documenting final costs, preparing the
final reports, and retiring the contract file. The contract closeout process is
depicted in Exhibit 12-1; however, based on Regional preference, some
activities may occur concurrently or in a different order.
To ensure that all contract closeout activities are completed, the CO
records events on the Contract Closeout Checklist (Exhibit 12-2) through-
out the contract closeout process. The checklist provides space for the CO
to indicate the date each activity or document was requested, received,
and completed.
ffiil Evaluating Contractor Performance
The CO prepares a memorandum requesting that the PO complete and
sign, if applicable, the Project Officer Certification Memo (Exhibit 12-3),
which verifies that all contract requirements have been met and accepted.
After the PO has certified that the contract requirements have been met,
the PO and CO each prepare a final evaluation of contractor performance.
The PO evaluates contractor performance under the contract and com-
pletes EPA Form 1900-27, Project Officer's Evaluation of Contractor
12-1
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
MAY 31, 1995
-------
RAC USERS1 GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 12-1. Process Flow for
Administering Contract
Closeout
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Retires files
to record
retention
center
51-033-30
12-2
MAY 31, 1995
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Exhibit 12-2. Sample Contract Closeout Checklist'
Contract Closeout Checklist
1. Name of Contractor
3A. Type of Contract
Contract Number As Amended by Mod Specialist Date Assign
thru
2. Period of Performance
3B. Original RFP# 4. Amount
3C. Title:
Items
CO/PO Acceptance
CO
PO
EPA Form 1900-26 Name Phone
EPA Form 1900-27 Name Phone Code
Property Clearance Report
(Completion Voi
Contractor's Closing Stateme
chfir)
it/Cumulative Claim
PO Certification of Completion Voucher
Payment of Completion Voucher
Final Patent/Invention Report (Vendor)
PO Concurrence of Patent/Invention Report
Contract Audit Q Desk Q DCAA
Interim or Disallowed Cost Settlement
Price Revision
Prior Year Indirect Cost Rates Settled
Final Royalty Report
Termination Document
Disposition of Classified Material
Plant Clearance Report
Contractor's Final Invoice
Contractor's Release
Subcontracts Settled by Contractor (Rel. from Sub.)
Assignment of Refunds, Rebates and Credits
Final Payment/Deobligation of Funds
6. Cert. Off. Phone
7. Vendor Contact: Name
5. Action Items (# = CIS Entry)
Date Document
Requested
(As Applicable)
#
#
Date Document
Received
(As Applicable)
Date Action
Completed
(As Applicable)
#
#
#
Obligated Disbursed $ Remaining as of...(Date)
Phone Address Verified?
8. Typed Name and Title of Responsible Official 9. Signature
Contractina Officer
10. Date
12-3
51-033-138
MAY 31, 1995
-------
RAG USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 12-3. Sample Project Officer Certification Memo
MEMORANDUM
SUBJECT: Project Officer's Certification
Contract No.
Contract Type.
with
FROM: .Contract Specialist
TO: .Project Officer
The end of the period of performance and/or final delivery date of the subject contract occurred on .
This office is undertaking action to initiate final closeout of the contract.
It is requested that you make a physical review of the contract to determine if: (1) all technical requirements have been
satisfied; (2) services set forth in the contract schedule have been satisfactorily completed; and (3) the final report and/or
other deliverable items have been received and accepted.
In the event that the contractor has satisfied the performance and/or delivery requirements of the contract, please check
the appropriate space below and cite the date of vour acceptance. Should there be a need to withhold closeout of the
contract, please advise in the space below and this office will take proper action. Your reply within 25 days from the date
of this memorandum will be appreciated.
[ ] Contract requirements have been met and closeout should proceed. Date of acceptance
[ ] Delay closeout and final payment for the following reason(s): (attach additional sheets if necessary)
Remarks:
Date Project Officer
51-033-139
12-4
MAY 31. 1995
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Performance (Exhibit 12-4). The CO also evaluates contractor perfor-
mance and completes EPA Form 1900-26, Contracting Officer's Evalua-
tion of Contractor Performance (Exhibit 12-5). Detailed instructions for
completion appear on the back of each form.
PO I - Completes, if applicable, PO Certification Memo.
- Evaluates contractor performance using EPA Form 1900-27.
- Requests PO to complete PO Certification Memo.
- Evaluates contractor performance using EPA Form 1900-26.
- Consults and updates the contract closeout checklist.
BOB Government Property Disposition
—~^^^^^ i w r
The Property Administrator (PA) requests a final inventory report from the
contractor in accordance with Federal Acquisition Regulation (FAR)
45.508 provisions. The inventory report should include all residual prop-
erty, both government-furnished and contractor-acquired, and must include
any government property in the control of subcontractors. The contractor
must certify that except for the items consumed during the contract period,
the inventory includes all government property provided or acquired under
the contract and that all items are free from contamination. The final
inventory is required to contain the same information presented in the
annual detail report and should be submitted to the PA.
Upon receipt of the final inventory report, the PA, with PO assistance,
reviews the report for discrepancies. The PO certifies that government
property left in place is part of a remedy and allows such government
property to be administratively "disposed" for accounting purposes. After
the PA and the contractor have resolved any inventory discrepancies, the
EPA Plant Clearance Officer (PCO) issues the final government property
disposition instructions based on recommendations from the PO, CO, and
PA, and coordinates the contractor's disposition of government property.
After the contractor has disposed all equipment, machinery, or materials
from sites or contractor storage facilities as directed by EPA and the
Defense Contract Management Command (DCMC), the CO requests the
PA to submit a property clearance report that certifies the contract has been
cleared of all outstanding government property issues. A detailed descrip-
tion of the government property disposition process appears in section 8.4.
- Helps PA review the contractor's final inventory report.
- Advises PCO concerning disposal of remaining government
property.
- Certifies that government property left at the site is part of the
remedy.
12-5
Last-minute changes in EPA
policy may affect RAC
equipment procedures.
Most government property is
disposed prior to contract closeout,
during site-specific WA closeouts,
or as it exceeded contractor needs.
MAY 31, 1905
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 12-4. Project Officer's Evaluation of Contractor Performance, page 1 of 2
PROJECT OFFICER'S EVALUATION OF CONTRACTOR PERFORMANCE
(Read instructions on reverse before completing form)
1 FROM 2 TO
3 FORWARD lorigmel only) TO- 4 CONTRAC
Quality Assurance Section (PM-214)
Washington. DC 2O460
6 CONTRACTOR'S NAME AND ADDRESS 7 PROJECT
9 BASIC CO
11 CONTRA
12 PROJECT TITLE
T NO 5 ACTIVITY
OFFICER'S NAME 8 TECHNICAL PROGRAM
NTRACTCOST 10 FINAL CONTRACT COST
CTOR PROJECT OFFICER'S NAME
of the following and give narrative of rating) E VQ A P U
give narrative of rating) E VQ A P U
1 5 EVALUATE CONTRACTOR'S SUBMISSION/DELIVERY OF PROGRESS REPORT. FINANCIAL REPORT. FINAL REPORT. EQUIPMENT ICirelt
one of the fallowing and give narrative of rating) E VO A P U
1 6 EVALUATE CONTRACTOR'S DELIVERED END PRODUCT /Report Equipment, etc./ (Circle one of the following end gne narrative ol rating.
E VQ A P U
1 7 HAS CONTRACTOR Q OVERRUN. OR Q UNDERRUN THE CONTRACT (Explain reason for either)
IB RECOMMENDATIONS AND ADVICE TO PERSONNEL CONSIDERING THIS CONTRACTOR FOR FUTURE AWARDS
19 PROJECT OFFICER'S SIGNATURE 20 DATE
21 OVERALL RATING tCntc* one)
E VO A P U
EPA Form 1900-27 (Rev 4-84) Previous editions are obsolete
u s covnmxurr niirrnc OPFI::-.-*-—i-'-i'730)
12-6
MAY 31, 1995
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Exhibit 12-4. Project Officer's Evaluation of Contractor Performance, page 2 of 2
INSTRUCTIONS
Prepare in duplicate and distribute as follows
Original to be forwarded to Headquarters. Quality Assurance Section (PM-214), Washington. DC 20460
Copy to be forwarded to Contract Administrator for contract file
The following guidelines are to be used by the Protect Officer responsible for the project in the preparation of the form at
the completion of the technical phase and/or acceptance of the final end product of the contract The information must be
accurate, as it will provide other program staff personnel or anyone else in the agency an orderly and uniform method of
determining and recording the effectiveness of contractors in meeting their contractural commitments for future
consideration in contract awards The information will be filed in the contract file, and with the contractor's bidders
application file The Project Officer's technical rating of the contractor and the contracting officer's business rating will be
entered in the contractor performance evaluation system maintained by the Quality Assurance Section All items have
been numbered to identify specific instructions as they pertain to individual items
Rate Contractor in areas listed in items 13. 14. 15. 16. and 21 by circling one of the following on the form
E (Excellent). VG (Very Good). A (Average). P (Poor), or U (Unsatisfactory)
Provide a detailed narrative of background material to support the rating Attach additional sheets, if necessary
FOLLOWING ITEMS TO BE FILLED IN BY THE CONTRACT ADMINISTRATOR
RESPONSIBLE FOR THE CONTRACT.
ITEM(S)
1 thru 4 Self-explanatory
5 Activity responsible for the project such as Washington, DC. RTP. Cincinnati. Region No or Laboratory
6 and 7 Self-explanatory
8 Name of Section or Division within the Program responsible for the project
9 and 10 Self-explanatory
11 Self-explanatory
12 Self-explanatory
FOLLOWING ITEMS TO BE FILLED IN BY COGNIZANT PROJECT OFFICER
13 Has contractor fulfilled the requirements of the scope of work as specified in the contract' Did the
Contractor adhere to his proposal, including his proposed commitment of personnel?
1 * Indicate degree of creative contribution (level of technology) made by the contractor in response to their
understanding of EPA's mission If engaged in study contract or consulting contract, contractor's
understanding of Federal Laws affecting the work (e.g . for a consultant on impact statements, under-
standing of NEPA and all related guidelines and significant court decisions)
15 Did the contractor submit the report or equipment as per contract schedule? If not, give reason
16 Is the report or equipment delivered of high value and/or good quality? Did the report require many
corrections, and did the contractor balk at making the corrections without additional cost?
17 Information desired is give number of overruns and reasons for this (do not consider scope change
where contractor had to submit a proposal for the additional work), ratio of additional funding under
limitation of cost provision to original estimated costs Was underrun achieved by reducing the scope of
work or through the development of new methods7
EPA Form 1900-27 (Rev 4-84) Reverie
12-7
MAY 31, 1995
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 12-5. Contracting Officer's Evaluation of Contractor Performance, page 1 of 2
** •- DA Contracting Officer's Evaluation of Contractor Performance
^^ ™ ' *^ (Read instructions on reverse before completing form)
1 From 2 To
3 Forward fer/fUM/o/iWTo 4 Contract
Washington. DC 2O460
6 Contractor's Namd and Addres* 7 Project 0
9 Basic Coi
11 Contrae
12 Project Title
No 5 Activity
fticer's Name 8 Technical Program
xtraciCost 10 Final Contract Cost
tor Protect Officer's Name
1 3 Extent of Competition in Negotiation (Choc* ami
D Price Competition D Oeaign. Technical, or Other Competition D Other then full & open competition D Unsolicited
14 Evaluate Contractor'* Ability to Enimate and Meet Raaliauc Delivery Schedule
a Basic Contract Completion Data b Actual Ct
1 6 Give Reason Why Contractor Did Not Meet Bane Conu act Completion Date
1 6 Evaluate Contractor's Ability to Initially Estimate Realistic Costs IC/rcte one of tt
E VO A P U
E VO A P U
mtract Completion Date
it loHowmg mndgne narrafwa of rating)
ring ane" gnu narrative of ruling)
1 8 Recommendation* and Advice to Personnel Considering This Contractor for Future Awards
19 Contracting Officer's Signature 20 Dete
21 Overall Rating (Chect one*
E VQ A P U
EPA Form 19OO-2B (Rev. 4-88) Previous editions sre obsolete
12-8
MAY 31, 1995
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Exhibit 12-5. Contracting Officer's Evaluation of Contractor Performance, page 2 of 2
INSTRUCTIONS
Prepare in duplicate and distribute as follows:
Original to be forwarded to Headquarters. Quality Assurance Section (PM-214), Washington.
DC 20460. Copy to be retained by Contracting Officer for contract file.
The following guidelines are to be used by the responsible contracting officer in the prepara-
tion of the form at the completion of the technical phase and/or acceptance of the final end
product of the contract. The information must be accurate, as it will provide to program staff
personnel or anyone else in the agency an orderly and uniform method of determining and
recording the effectiveness of contractors in meeting their contractual commitments for
future consideration in contract awards. The information will be filed in the contract file, and
with the contractor's bidders application file. The Contracting Officer's business rating of the
contractor and the Project Officer's technical rating will be entered in the contractor perfor-
mance evaluation system maintained by the Quality Assurance Section. All items have been
numbered to identify specific instructions as they pertain to individual items.
Rate Contractor on items 16. 17 and 21 by circling one of the following on the form:
E (Excellent); VG (Very Good); A (Average); P (Poor); or U (Unsatisfactory)
Provide a detailed narrative of background material to support the ratings. Attach additional
sheets, if necessary.
FOLLOWING ITEMS TO BE FILLED IN BY THE CONTRACT ADMINISTRATOR
RESPONSIBLE FOR THE CONTRACT
ITEM(S)
1 thru 4 Self-explanatory.
5 Activity responsible for the project such as: Washington, D.C., RTP. Cincin-
nati, Region No. or Laboratory.
6 Self-explanatory.
FOLLOWING ITEMS TO BE FILLED IN BY THE COGNIZANT CONTRACTING OFFICER
7 thru 14 Self-explanatory.
15 State reasons for contractor delay, request for extension of time, etc.. State-
ment should clarify whether contractor or Government was responsible for
delays.
16 Was Contractor's estimate close to the Government estimate? Did contractor
submit a low bid for the purpose of buying in? Number of overruns and
reasons for this, and ratio of additional funding under limitation of cost
provision to original estimated cost.
17 Information desired on contractor's administrative efficiency, contractor's
cooperation, ethical conduct. Additional factors to be considered are coopera-
tiveness of company officials, general attitudes of company personnel con-
tacted, abilities of personnel assigned to the project, contractor's, attention to
details of contract.
18 thru 21 Self-explanatory.
EPA Form 1900-26 (ftov. 4-86) RovarM
12-9
MAY 31, 1995
-------
RAC USERS1 GUIDE, VOLUME 2: PROCESS GUIDE
The CO negotiates with the
contractor to resolve questioned
costs.
00 J . Advises PCO concerning government property disposition.
- Updates the contract closeout checklist.
ESH The Contractor's Cumulative Claim and Final Allocation
The cumulative claim procedure is a multi-step process designed to
ensure that the government is being properly billed for all goods and
services delivered under the terms of the contract. Similarly, the final
allocation procedure ensures that the contractor's non-site-specific costs
are distributed to specific sites and the appropriate costs are included in
any future EPA cost recovery action.
Submitting the Contractor's Cumulative Claim and Final Allocation
After the contractor has submitted a final completion voucher, the CO
requests the contractor to complete and submit EPA Form 1900-10,
Contractor's Cumulative Claim and Reconciliation (Exhibit 12-6). The
contractor generally will submit the 1900-10 when the final indirect rates
have been negotiated.
When submitting the cumulative claim to the CO, the contractor also
submits a final allocation of non-site-specific costs report to the Super-
fund Accounting Branch (SAB). The report will be similar in format to the
annual allocation report. The procedure for finalizing the non-site-specific
cost allocation is described in section 4.12.3.
Requesting a Contract Audit
If the CO cannot make an informed determination of the reasonableness
of the final costs when the cumulative claim (EPA Form 1900-10) is
received, the CO must request a final audit by attaching the cumulative
claim to a contract audit request (Exhibit 12-7) and forward it to the
Financial Analysis Branch (FAB) Chief.
Reviewing the Contract Audit
The CO reviews the audit and resolves any questioned costs through
negotiation with the contractor. Any questioned costs that cannot be
resolved through negotiations may require the CO's final decision as
provided in the DISPUTES clause. The CO should seek legal review
before issuing a decision.
After any questioned costs have been resolved and after the CO has
confirmed that all subcontractors have been paid, the CO should compare
the amount previously paid to the contractor with the amount claimed on
the cumulative claim (EPA Form 1900-10). The difference between the
amount previously paid and the amount reported on EPA Form 1900-10 is
the amount to be paid to the contractor or reimbursed to the government
when the final voucher/invoice is submitted.
12-10
MAY 31. 1995
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Exhibit 12-6. Contractor's Cumulative Claim and Reconciliation
*» CQA United Slates Environmental Protection Agency
WCr3F\ Contractor's Cumulative Claim and Reconciliation
3 Total amounts claimed under this contract (Le
approved on Pubic Vouchers Not.
t
to
Item
Direct Labor
Direct Matenal and Supptet
Equipment
Travel
Subcontract Costs
Other Direct Costs
/onsuttant FBM
Fixed Fee
Total Amount Ctalnwd
Form Approved
OMB No. 2030-0016
Expiration Dale: 141-94
> Contract No
rf disallowances not sub/eel to appeal) and
inducing completion vouchers)
Amount
S
S
S
S
S
S
S
S
S
S
4 Reconciliation of Indirect Costs Claimed Record the amount of indirect costs calculated, tor each cost center, using negotiated final indirect
coitrate >p
Cost Center Cost Center
Cost Canter Cost Center
'**?^^>:.-,t; ;."• ^^->t^^-.tr<--v.;^>; -,
"v^':"^ ^^^>$'$^.:if'^*"£^,*kffl/S s'
: - • - ' i • '
Mo further monies or other benSa may be pod our under tfw program unites An noon a computed and Had at mound by the EPA Billing
/nmcaena.
1 cernty (hat the information provided on tftts torm
or misleading ntarmanon may be punishable by
Name end Tide (Print or Type)
ana attachments thereto is true, accurate, and complete 1 acknowledge that any knowingly raise
Signature Date
EPA Form 1900-10 (Rev 241)
Previous Edinon is Obsolete
12-11
MAY 31. 1995
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
Exhibit 12-7. Sample Final Contract Audit Request
MEMORANDUM
SUBJECT: Request for Final Audit
Contract No.
with
FROM:
TO:
_, Contract Specialist
Work under the subject contract is complete. Please request final audit and furnish a closing statement and comments
which will assist in the final close out of the contract The following closing documents from the contractor and other pertinent
information are attached for your use:
Completion Voucher No.
Contractor's Cumulative Claim and Reconciliation
Contractor's Assignment of Refunds, Rebates, and Credits
Contractor's Release
Contract Type Cost Plus Award Fee
Contract Period
Contract Amount $
Other
Attachment(s)
51-033-140
12-12
MAY 31, 1996
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Submitting Final Voucher/Invoice
After the final costs and fees are settled, the CO sends the contractor a
request for the final voucher/invoice and EPA Forms 1900-5, Contractor's
Assignment of Refunds, Rebates, and Credits (Exhibit 12-8), and 1900-6,
Contractor's Release (Exhibit 12-9). If there was an assignment of the
contract, the CO also requests EPA Forms 1900-3, Assignees release
(Exhibit 12-10), and 1900-4, Assignees Assignment of Refunds, Rebates,
Credits, and Other Amounts (Exhibit 12-11). When the contractor has
been overpaid, the request for final voucher should be a request for a
credit voucher and payment of the overpayment. The CO sends a copy of
the request for payment to the Financial Management Center at Research
Triangle Park (FMC-RTP).
Upon receipt, the CO forwards the final/credit voucher and any payments
to FMC-RTP for processing. The PO reviews and approves the final/credit
voucher. Final payment, if due, will be made within 30 days of receiving a
properly completed voucher/invoice.
- Reviews and approves final/credit voucher.
- Requests contractor to complete and submit EPA Form
1900-10.
- May request a contract audit.
- Reviews audit and resolves discrepancies with contractor.
- Requests final voucher, EPA Forms 1900-5, 1900-6, and, if
applicable, 1900-3 and 1900-4.
- Processes the final/credit voucher.
- Updates the contract closeout checklist.
RAC Attachment B, "Reports of Work," requires the contractor to prepare
and submit a final set of technical and financial progress reports including
the final progress reports and final national reports. Each report must be
submitted in hard copy or electronically, as specified in the RAC state-
ment of work.
The final progress reports must reflect the total contract period and, like
the monthly progress reports, must include a narrative summary report,
WA reports, contract financial status reports, contract invoice backup
reports, and electronic reports. The final national report must reflect the
total contract period and, like the required quarterly reports, must include
a PS summary report, a work area costs report, and the capacity report.
The format and information requirements for these reports are defined in
RAC Attachment B and are further described in Chapter 7.
12-13
MAY 31, 1095
-------
RAC USERS' GUIDE. VOLUME 2: PROCESS GUIDE
Exhibit 12-8. Contractor's Assignment of Refunds, Rebates, and Credits
•BACTOB:
ENVIRONMENTAL PROTECTION AGENCY
COUTH ACT MO.
COMTNACTOWC AntBMMCMT
CONTRACTOR'S ASSIGNMENT OF REFUNDS. REBATES AND CREDITS
. and in coaridentton of the renbunanent of com and payment of fee. at
rCbmnrart Nmat* mid
Pnrwanl to the term, of Contract No. —^—^^
provided in Ibe aid contract and any awanmenl thereunder, the.
(heiemafter called Ihe Contractor) doe. hereby:
I Aeon trMrfer.etlom and reaM to Ihe UNITED STATES OF AMEWCA(heremaltec«^
all itfunda^ebatea. credit, or other amount, (mctednu} any mterert dierem) arUr,o«t of tn.perf«man«rf th. aid contract, toptho
niht. ofacoon accrued or which may hereafter aca
action may be
to eflect prompt collection of aD refund*, nbatet, endlu or
i any
Treaaiia of the United Slatei) for any proceed. » eoDaend. Tba reuaaabte cmta of any taeh action t
LTlto .J^Wdoy ft. Contneti, Oftto » — to •». m* contact »d may b. ^*W to red»« «y «no«ntt other*. pay*la to the
3. Am* to cflopnte fyDy with the Government .. to any ctam or «il a connectta, wtt, rcf»dv retain. c»dm.r,^"•™«»'^*«
(»cl»d.nT«y »we7thow»): tt> execrt.«y protM.ntalai.qvcaMn^owet «*«»"•»•• «""-*"» «~«euon therewrlh.«d to
permit the Government to leptcttnt it at any heartog. mal or other iw>ce«o^artenioutof B>chctoior»iL
IN WrTNESS WHEREOF, thb a^tnment ha. been e
WITNESSES
ntedthri.
.d«yof.
(Coatractor)
, in tM en. of e eof«MMM.. wluwMi n. MM >«JHkM. b.l IM
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Exhibit 12-9. Contractor's Release
CONTRACTOR'S RELEASE
UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON O C 207O-
INSTRUCTIONS
crNTRACTORi Submit erljlinl «nd 1 coplM. Sleii Ofljlrul am contof m tnjiuiu-i on copies.
Punuani 10 the teimi of Contract No .
TOTAL OF AMOUNTS PAID ANOPAYASLE
which hu been or u to be pud under the uid contract to _^______
________ and in conudeniion ol the ram of
. Dollars <$ )
CONTRACTOR'S NAME AND ADDRESS
heieiiurter ailed the Contractor or to m assignees, if any. the Contractor, upon payment of the aid nim by the UNITED STATES OF AMERICA.
hereinafter ailed the government, doei remise, releue. and discharge the Go-eminent, iti offlcen. agents, and employees, of and from all Uabiliiiei.
obligation!, daimi. and denundi whatsoever under or anang from the said contract, except
.1 Specified claims m italed amounti or in estimated amount! where the amount! are not uiceptible of exact statement by the Contractor.
aifoltowi (Ifnontmnm)
2 Claim, together with reasonable expenses, modenul thereto, baaed upon the habihuo of the Contactor toMMra parties arising out of the
performance of the said contract, whidi an not known to the Contractor on the date of the execution of thii release and of which the Contractor
gncs nonce in writing to the Contracting Officer within the period speeded in the sad contract.
3 Claims for reimbursement of costs other than expenses of the Contractor by reason of its indemnification of the Government against patent
liability, including mo-able expenses nadenul thereto, incurred by the Contractor under the provisions of the sud contract relating to patents
The Contractor meet, m connection with patent matters and with claims which are not releued u set forth above, that ,i will comply with all
of the provisions of the sud contract, including without limitation those pronaons relating to notiflanon to the Contracting Officer and relating to
the defense or prosecution of litigation.
_ IN WTTNESS WHEREOF, this refcaae has been executed Urn.
WITNESSES
.day of.
.19.
(CONTRACTOR OR CORPORATE NAME1
BY ,
TITLE
NOT! 111 the case el a «-f»cr»tloi». «rHiMaaea«t« «ot -sejuliea. But we loltewwe c
CERTIFICATE
.. certify that I an the.
. of the corpora
OFFICIAL TITLE
for ant in behalf of sud corporation by authority of its governing body and a withm the scope of its corporate powers.
OFFICIAL TITLE
imed u Contractor in the foregoing release, (hat
who svned sud releue on behalf Tif the Contractor was then
_____ of sasd corporation, that _ud releaae was duly signed
(CORPORATE SEAL)
•FA Form IMO-C (Re* IO-71) FREVIOUS EDITION MAY BE USED UNTIL EXHAUSTED.
12-15
MAY 31, 1995
-------
Exhibit 12-10. Assignee's Release
INSTRUCTIONS TO CONTRACTOR..
tSRSSS? "" ' """• eNV,«e«.tNT.L P..OTiCT,ON .SfNCY
Conform tienAtur* on copi*».
ASSIGNEE'S RELEASE
COHTKCT MO. .
Pursuant to the teraii of Coniraci No : and • consideration of die i
Defers it I wtack has been or u to be pud older die eonvaci by lha UNITED STATES OF AMERICA Ihenuiafier catted UM
Government) 10 the Contractor or hie ••«•". ika :
(Aentnoe's Nanaa * Addnai)
(i) a coipoiaoon niaannarl and ritminj nndrr lha Ireri nf fha llata nf ^^___^^_^_^_____^^_^^__^^_^^^
m) a partnership consutuif of '—" '
lui) an individual tradns as (hennaftar called ON Aeonee). upon ICCSBI
of that part of UM and nun due under his assrjnment does nmue, nan* and discharge die Government, hu officers, itenis. and
employees, of and horn el hmbdrms. oMsjauons. claims, and demands whatsoever under or aranf bom ike «ud contract and •sufnmeni
except:
1. Specified chums m, stated amounts or m estimated amounta when, as amoaais an not susceptible to exact sutemeat by the
Contractor, as follows:
a. Claims, together with reasonable expenses mctdenial thento. bantd upon UM nabilltiaa of the Contractor lo disrd parties aruma. out
of the performance of the said contract, which an not known to the Contractor or Amenta on the date of the execution of this
release and of which the Contractor or Autneo inn notice in wridB| to the Connwuns Offlcer wnha ike pcnod specified in the
b Claims for retmbuntment of costs other dun expenses of tfw Contractor by nun of his mdemuflcsoon of the Government
acamat patent liability, indudtaf nasonabki expenses modenul thereto, mcumd by the Contractor under the pronswns of sud
contract nbmnt to parents.
The Aasstnea acnes, m connection with ctaums which an not nkmsed aa an forth above, that fbud payment under tke eud contract does not
modify the requtrementa and LrmtaDons imposed on lha Contractor or Asaeaeo by the contractor the issanunsnt. BMtadati without limitation those
provnons ntstmj to notification to the Contncms Officer and reUttnf to thedefennorproaaeutsooof Utia»llon.
IN WITNESS WHEREOF, thareaase has been executed this day of 1*
•ITHBHMl
HOTIt !• ISM *mtm •! • • eeraverion. whMoeeee ew •• swaeaiedi ••» Iho Mlewlen
CERTIFICATE
^^^_^^__^_^_^__^__^. certify that I am *** "'..** /•"""*"""
(Offkial'Tiaa)
In ma fmajukij rtkrarr **-» •*" •**"* •** *•'"• M **"" a>"" *""**
«u men of sud corpoabon: IBM MM nlaaae waa dah> naned for and in behalf of sud
(Official Title)
corporation by authority of Us tovamini body and la withm the scope of its corporate powers.
(CORPORATE SEAL)
e*A •«• ltOO.1 (e-n)
12-16
MAY 31.1995
-------
CHAPTER 12 • CONTRACT CLOSEOUT
Exhibit 12-11. Assignees Assignment of Refunds, Rebates, Credits, and Other Amounts
INSTRUCTIO
Submit orlflni
Slfn orltliul.
IONS TO CONTRACTOR!
" l and 4 eool*B.
ConfOfBi »ltiMluf« on copUa.
ENVIROMENTAL PROTECTION AGENCY
ASSIGNEE'S ASSIGNMENT OF REFUNDS REBATES CREDITS.
AND OTHER AMOUNTS
Punumnt to the temu of Comncl No
uid in conodcntion of the reanbuimaenl
of cosli and payment of feet, u provided in Hie aid contract and alignment thereunder, the
MJ Ai*nm>
(i) a corporation orianized and existing under the lews of the State of
(u) a partnership T*irlitmg of __^^^^^^_^___^__^_^^^^__________^_^_^^^_^___—_^^^_—
(di) an individual trading as
(heremancf called the AtBfnee). don hereby assign, transfer, set over, and release to the UNITED STATES OF AMERICA, all right, title.
aad merest to all nfnda, icbatei, credits, and other amounts (including any interest thereon) arising out of the performance of the said
contract, together •>(• an the rights of actsoa accrued of which nay hereafter accrue thereunto
IN WITNESS WHEREOF, this ass«uaent has been executed this
fat* of
It —
.ITNEIHl,
BY.
MOTE. In th» COM of a
uM or* net nqvlrad. km th. fallowing cntlflcm* au
CERTIFICATE
, certify that I am the
of the
corporation named as Contractor m the foi
of said corporation.
•ho signed said assignment on behalf of the Contractor was then
that said aoarament was duty saned for and m behalf of said corporation by authority of the governing body and is within the scope of its corporate
(CORPORATE SEAL)
EPA Fora 1900-4 (6-71)
12-17
MAY 31.1995
-------
RAC USERS' GUIDE, VOLUME 2: PROCESS GUIDE
The final reports also include the final patent report. The contractor is
required to report any notice or claim of copyright or patent infringement
filed during performance of the RAC. The contractor also must furnish all
evidence and information in contractor possession regarding any such suit
or claim against the government (see section 2.3.8 for additional informa-
tion).
The Region may specify additional final reporting requirements in the
contract closeout WA.
(CO) . Updates the contract closeout checklist to reflect receipt of final
reports.
BEE Verifying Completion of the Contract Closeout Process and Updating the
Regional Contract Information System
Throughout the life of every RAC, the CO maintains the Regional con-
tract information system (CIS) that tracks contract and WA status. During
contract closeout, the CO updates the CIS. As the contract closeout
approaches completion, the CO reviews the information in the CIS for
completeness and accuracy.
Before updating the CIS to indicate that contract closeout is complete, the
CO must review the entire contract file from cover to cover to ensure that
there are no outstanding issues. After the CO has reviewed the file and
completed all items on the contract closeout checklist, he or she updates
the CIS to indicate that the contract closeout WA is complete.
- Reviews contents of contract file.
- Uses the contract closeout checklist to verify that contract
closeout is complete.
- Updates CIS to reflect contract closeout status.
ES1 Retiring Files
After receiving a notice of final payment, the PO, CO, contract closeout
Work Assignment Manager (WAM) (usually the PO), and contractor must
review their respective contract files to ensure that all of the required
documents are properly located within the permanent contract file. Each
also must ensure that their contract files are delivered to the proper record
retention facility.
The proper procedures for organizing and retiring all contract files are
defined by FAR 4.804 and are described in Chapter 11.
12-18
MAY 31, 1995
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CHAPTER 12 * CONTRACT CLOSEOUT
- Ensure that all records are properly filed and delivered to
the record retention facility.
12,2 Required, Core, and Noncore Elements of Contract Closeout
The required, core, and noncore elements of RAC guidance for contract
closeout are identified in Exhibit 12-12. Chapter 1 provides definitions of
required, core, and noncore elements and explains Regional responsibili-
ties for incorporating each element.
Required
Issuing separate PS WA for Contract Closeout
Using EPA Forms 1900-26 and 1900-27 to record CO and PO final evaluation
of contractor performance
PO certification that all contract technical requirements have been met and all
deliverables accepted
Issuance of final government property disposition instructions to contractor
CO review of contractor's cumulative claim (Form 1900-10), including request
for and review of final audit if needed
PO review and approval of final voucher
PA certification that the contract has been cleared of all outstanding government
property issues
Adherence to FAR4.BQ4 and Agency guidance in organizing and retiring contract
files
Core
Scheduling completion of site-specific WAs before the end of contract period with
sufficient time for contract closeout
Issuance of Contract Closeout PS WA sufficiently prior to the end of contract
period to allow completion of closeout
CO use of "Contract Closeout Checklist" to ensure that all necessary closeout
activities have occurred
Update of Region's RAC CIS to reflect final contract status
Noncore
None currently defined
51-033-141B
Exhibit 12-12. Required, Core,
and Noncore Elements of
Contract Closeout
Last-minute changes in EPA
policy may affect RAC equipment
procedures.
12-10
MAY 31. 1995
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CHAPTER 12 * CONTRACT CLOSEOUT
12,3 Region-Specific Guidance on Contract Closeout
Applicable guidance to be inserted by the Region following this page.
12-21
MAY 31, 1996
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Response Action Contract
Users'Guide
]folume2: Process Guide
Revisions to the
MC fa' Guide
CHAPTER
MAY 31. 1986
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RAC USERS' GUIDE, VOLUME 1: PROCESS GUIDE
Table of Contents
CO Contracting Officer
LTCS Long Term Contracting
Strategy
0AM Office ol Acquisition
Management
PO Project Officer
WAM Work Assignment Manager
13.1 Supplemental Guidance 13-1
13.2 Annual Updates 13-1
Exhibits
Exhibit 13-1 Annual Update Tracking Sheet 13-3
MAY 31,1998
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CHAPTER 13 • REVISIONS/TO THE RAC USERS' GUIDE
This chapter describes the process for revising and.updating the RAC
Users' Guide.
13.1 Supplemental Guidance
The/ZAC Users' Guide lead distributes supplemental guidance to Project
Officers (POs) and Contracting Officers (COs), as needed, for changes
that should be implemented immediately. POs forward a copy of the
supplemental guidance to the Work Assignment Managers (WAMs). This
guidance should be placed in Appendix C of Volume 1: Reference Guide,
and/or Appendix A of Volume 2: Process Guide, as applicable, for quick
access.
13.2 Annual Updates
The Long Term Contracting Strategy (LTCS) Users' Guide Coordination
Work Group meets twice a year to make revisions to LTCS users' guides
and to exchange information for updates. Each users' guide lead issues an
annual call letter to respective COs and POs requesting proposed changes.
The users' guide lead reviews and incorporates these proposed changes
and distributes draft Users' Guide revision pages for review by the Users'
Guide Coordination Work Group, the Office of Acquisition Management
(OAM), and the Regions. After draft revisions are reviewed, the proposed
updates are sent to the Office of Emergency and Remedial Response
program office and OAM for joint signature.
Each of the LTCS users' guide leads prepares an annual update memoran-
dum summarizing the changes to their respective guides. The annual
update memorandum for the RAC Users' Guide is distributed to all POs
and COs with a tracking sheet that identifies the date of the revision and
the pages of the guide that are replaced by the updated material (see
Exhibit 13-1). The memorandum also identifies supplemental guidance
that has been incorporated in the annual update. Once supplemental
guidance has been incorporated, it may be removed from the applicable
volume's "Revisions" appendix. The annual update memorandum and
tracking sheet should be retained in the applicable volume's "Revisions"
appendix as background information.
Revision pages are marked in the lower comer as "Revision (Date)" for
tracking purposes. The location(s) of the change(s) on each revision page
are marked, so that users can readily identify changes. In order to keep
pages numbered sequentially, added pages will be denoted by the number
13-1
MAY 31. IMS
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RAC USERS' GUIDE, VOLUME 1: PROCESS GUIDE
of the preceding page followed by lower-case letters of the alphabet [e.g.,
pgs. 5-25,5-25a, and 5-25b].
\WAtD - Receives.revisions from PO and implements revisions.
Proposes revisions to As RAC Users' Guide.
Receives and implements revisions.
Forwards revisions to WAMs.
Proposes revisions to thefiAC Users' Guide.
Reviews and comments on draft revision pages.
Receives and implements revisions.
13-2
MAY 31, 1995
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CHAPTER 13 » REVISIONS TO THE RAC USERS' GUIDE
Exhibit 13-1. Annual Update Tracking Sheet
PageNumber(s)tobe
Replaced/Date
pg.5-25/
January 17, 1995
New Page Number(s)/Date
pgs. 5-25,5-25a, and 5-25b/
December 31, 1996
Basis for Change
OSWER Directive XXXXXX
51-033-131
13-3
MAY 31, 1995
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Response Action Contract
(RAQ Users' Guide
]folme2: Process Gidde
fa' Guide
Revisions
APPENDIX
MAY 31, 1995
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Regions should keep RAC Users' Guide revisions in this appendix for reference.
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