1.1.2. Delegating Contract Administration Functions. In accordance with FAR 42.202 (a)(2), PCO delegations should identify any functions withheld or any specific authorization to perform functions listed in FAR 42.302(b). In accordance with DFARS 242.202 (a)(i), DoD activities shall not retain any contract for administration that requires performance of any contract administration function at or near contractor facilities, except contracts for – see list at DFARS 242.202(a)(i)(A) through (R). This DFARS requirement is the basis for assigning contracts geographically (CMO is located at or near the contractor’s facility), although some exceptions exist, as noted in CASD.
22.214.171.124. Normal Delegated Functions. CMOs shall accept normal delegated functions in accordance with FAR 42.302 (a) and DFARS 242.302 (a). These contracts are considered to be assigned to CMOs for “Prime” contract administration.
126.96.36.199. Partial Delegated Functions. FAR 42.202 (e) states that PCOs may request support contract administration. Support administration requests identify a specific contract administration function (e.g., property, payment, quality assurance, etc.). These contracts are considered to be
assigned to CMOs for “Support” contract administration.
188.8.131.52.1. The Workload Acceptance Instruction provides policy for accepting or rejecting workload requests. Specifically, the Instruction discusses the establishment of agreements and provides workload acceptance instruction for Sensitive Classified Contracts and/or
Special Access Programs, DoD Reimbursable Agreements (NASA), Logistics Support, as well as functions not normally performed by DCMA.
184.108.40.206.3. The NASA Support Instruction provides policy for CMOs supporting requests issued by NASA Headquarters or its components.
220.127.116.11.4. Non-Procurement Instruments. Non-procurement instruments fall into three basic types – grants, cooperative agreements, and other transactions (OTs). Grants and Cooperative Agreements differ from contracts which involve the acquisition
of supplies or services for the direct benefit or use by the Government. A related class of instrument is the Technology Investment Agreement (TIA) which may be either a cooperative agreement or other transaction. Requirements for the uniform administration
of non-procurement instruments are contained in DoD Directive 3210.6-R Defense Grant and Agreement Regulatory System (DGARS), OMB Circulars A-87, A-102, A-110, A-122 and A-133.
18.104.22.168.4.1. A Grant is a legal instrument used to enter into a relationship, the principal purpose of which is to transfer a thing of value to the recipient to carry out a public purpose of support or stimulation authorized by a law of the
United States. Further, it is a relationship in which substantial involvement is not expected between the Department of Defense and the recipient when carrying out the activity contemplated by the grant.
22.214.171.124.4.2. A Cooperative Agreement is a legal instrument used to enter into the same kind of relationship as a grant, except that substantial involvement is expected between the Department of Defense and the recipient when carrying out
the activity contemplated by the cooperative agreement. The term does not include “cooperative research and development agreements,” as defined in 15 U.S.C. 3710a (reference (f)).
126.96.36.199.4.3. OTs. Public Law 10 U.S.C. 2371 authorizes DoD to enter into transactions (other than contracts, cooperative agreements and grants) for certain projects. Consequently, other transactions are defined by exclusion. Any instrument
that is not a contract, cooperative agreement, or grant is considered to be an OT. Two types of OTs that are likely to be assigned to DCMA for administration are for research or prototype.
188.8.131.52.4.4. TIAs are a class of assistance instruments that may be used
to carry out basic, applied, and advance research projects when it is appropriate to use assistance instruments and the research is to be performed by a for-profit firm
or by consortia that include a for-profit firm. TIAs issued to educational and non-profit entities are not delegated to DCMA for administration, but are instead administered by the Office of Naval Research.
184.108.40.206. Other Disbursing Office (ODO) Contracts. When a PCO delegates a contract to DCMA for contract administration but requires payment administration to be performed by other than Defense Finance and Accounting Service (DFAS)
Columbus DoDAACs HQ0337, HQ0338 or HQ0339, the contract is considered to be an ODO.
220.127.116.11.1. Defense Logistics Agency (DLA) ODO Contracts. In accordance with the Performance Based Agreement (PBA) between DLA and DCMA, a DLA ODO contract is defined as a firm fixed price contract with no special financing clauses and a payment office designation of DFAS DoDAAC SL4701.
18.104.22.168.1.1. (ND) When a DLA ODO is received and is other than firm fixed price, or is firm fixed price and contains special financing clauses, the
Administrative Contracting Officer (ACO) shall promptly issue a Contract Deficiency Report (CDR), requesting the PCO
modify the contract to change the payment office to the appropriate DFAS Columbus DoDAAC (HQ0337, HQ0338 or HQ0339), in accordance with the DLA/DCMA PBA agreement. Until such time as the requested modification is executed, DCMA administration
will be limited to the functions specified in the DLA/DCMA PBA agreement.
22.214.171.124.1.2. (ND) CMOs shall perform all contract administration functions under FAR 42.302 for DLA ODOs except for payment and certain aspects of closeout relating to funds reconciliation.
126.96.36.199.2. Other ODO Contracts. Numerous other buying activities issue ODO contracts, but DCMA does not have established agreements with these activities regarding contract administration. (ND) The ACO shall promptly issue a CDR requesting the PCO modify the contract to change the payment office to the appropriate DFAS Columbus DoDAAC (HQ0337, HQ0338 or HQ0339), provided the contract is funded by DoD funds.
188.8.131.52.3. In order to allow for accurate workload count, CMOs are responsible for ensuring all ODO contracts are input in Mechanization
of Contract Administration Services (MOCAS), including partial ODO contracts. The ACO shall promptly coordinate with CMO Direct Input personnel when an ODO contract is received and has not been input in MOCAS. (ND) CMO Direct Input personnel shall promptly and fully input all ODO contracts in MOCAS (see MOCAS Bulletin #09-014).
1.2. Assignment and Distribution of Contracts to CMO Contract Management Team.
1.2.1. Initial Incorrect Assignment. There are times when PCOs improperly delegate contract administration to a CMO. If a contract has been erroneously delegated to a CMO, the ACO shall either,
· Promptly identify incorrect CMO assignment and issue an administrative modification changing the contract administration office to the proper CMO assignment, in accordance with CASD, or
· Promptly notify the PCO in writing regarding the erroneous assignment, in accordance with Workload Acceptance instruction.
1.2.2. Reassignment of a Contractor to a Different CMO. Occasionally contracts may need to be reassigned to a different CMO, usually as a result of a change of contractor address. The ACO shall promptly identify the new CMO assignment and issue an administrative modification transferring the contracts (see Contract Modifications Instruction for processing plant-wide contract modifications and Electronic Document Workflow
(EDW) Guidance for transferring official administrative office files).
1.2.3. Distribution of Contracts. Contracts are distributed to functional specialists based on CMO EDW system workflow tables. (ND) CMOs shall establish EDW contract workflow tables to ensure contracts are distributed in a timely manner to the appropriate functional specialist. (ND) CMOs shall ensure EDW workflow tables
are current, accurate and complete, as necessary to ensure effective contract administration.
184.108.40.206. Contract Management Team. The group of functional specialists assigned to the contract is known as the Contract Management Team.
220.127.116.11.1. The contract management team consists of a group of experts, whose collective and individual advice and counsel contribute to the accomplishment of the overall contract administration. Using the advice and counsel of these experts,
the ACO is able to make professional judgments and decisions that legally bind the Government, to the extent of the authority delegated to them. The ACO, as the leader of the contract management team, shall make and take responsibility for final decisions.
18.104.22.168.2. The ACO, as the leader of the contract management team, shall ensure that the appropriate functional specialists are aware of complex or special contract terms and conditions.
22.214.171.124.3. The collective and individual advice and counsel of the contract management team contribute to the accomplishment of the overall administration of the contract. Functional specialists shall keep the ACO informed of any actual or potential contractual non-compliances that arise during the administration of the contract.
1.3. Contract Receipt. In accordance with FAR 4.201 contracting officers are required to distribute copies of contracts within 10 working days after execution by all parties.
126.96.36.199. Receiving Contracts in EDW. Most buying activity contract writing systems send electronic copies of new contracts to EDA. DCMA’s EDW system retrieves the contract from EDA and sends it to functional users EDW In-Baskets, based
on CMO DoDAAC and EDW workflow table. There are some instances where EDA indexing errors may impact the flow of contracts to the proper CMO. Users should note:
188.8.131.52.1. Contracts may be received and viewed in EDW prior to receiving and viewing in MOCAS.
184.108.40.206.2. ODO contracts will be received in EDW and theACO shall coordinate with CMO Direct Input personnel to ensure they are fully processed in MOCAS. The majority of ODOs will automatically process to MOCAS; however those that fail to process shall be manually input in MOCAS by CMO Direct Input personnel.
220.127.116.11. EDA Indexing Issues. ACOs should note that an index is created when a base contract is received in EDA. As orders and modifications are issued against the base contract, EDA will use information from the base contract index to
auto-populate the index fields. ACOs shall correct problems with EDA indexing as follows:
18.104.22.168.1. EDA index and contract have incorrect Administrative
Office DoDAAC: ACOs shall immediately report the contract deficiency in accordance with paragraph
2.5.2. of this instruction.
22.214.171.124.2. EDA index incorrect but contract assigned to correct Administrative Office DoDAAC:ACOs shall immediately open an EDA help desk ticket requesting index correction.
126.96.36.199. Receiving Contracts in Mechanization of Contract Administration Services (MOCAS). The MOCAS system provides DCMA with electronic information necessary to accomplish contract administration. MOCAS contract data is received primarily
via Electronic Data Interchange (EDI) and is used to establish a contract record. DCMA’s Contract Receipt & Review (CRR) e-Tool is populated when a new contract is received in MOCAS.
188.8.131.52. Receiving Contracts in the System for Integrated Contract Management (SICM). SICM provides DCMA International with electronic contract administration information for contracts not paid in US currency.
Contracts are entered
manually into the SICM database by functional specialists. For additional information, see the SICM Users Manual.
1.3.2. Hard Copy Contracts. Some contracts fail to successfully transmit electronic transactions to EDA and MOCAS and are received by the CMO in hard copy. Other contracts are issued as a support delegation or may not be paid using
the MOCAS system (ODOs). These contracts must be manually input into MOCAS or SICM. Responsibilities for manual input follows:
184.108.40.206. DFAS Contract Input Personnel is responsible
for manually inputting all MOCAS paid contracts and modifications issued by buying activities, that fail to transmit electronically, fail to process and post to MOCAS, or that were issued in hard copy.
220.127.116.11. (ND) CMO Direct Input Personnel shall promptly input all non-MOCAS-paid contracts and modifications administered by DCMA (e.g., Other Disbursing Office – ODO Contracts) and MOCAS-paid/ACO-issued documents (e.g., delivery orders
and modifications that fail to transmit electronically or that were issued outside the MDO e-Tool) into the appropriate database (MOCAS or SICM). (See MOCAS Bulletin #09-014 and ODO Guidance for general steps for inputting these contract documents.)
18.104.22.168. Inputting support contracts into the
appropriate database (e.g., MOCAS, SICM or other automated tool) is the
responsibility of the specific functional specialist receiving the support
delegation (e.g., property-only, quality assurance-only, etc.) (see Quality Assurance -
Delegate Surveillance Instruction for specific instructions regarding QA
subcontract support delegations). (ND) The functional specialist assigned to a “support” contract shall input the contract in the appropriate database (e.g., MOCAS, SICM
or other automated tool). (ND) However, when multiple functions are delegated and cross
various functional disciplines, the ACO shall input the support contract in the appropriate database (e.g., MOCAS, SICM
or other automated tool).
1.4. Contract Administration Office Contract File. In accordance with FAR 4.802, a contract file generally consists of the contracting office contract file (awarding activity file), the contract administration office contract file, and the paying office contract file. The contract administration office contract file contains
documented actions reflecting the basis for and the performance of contract administration, therefore the file includes all records from all functional areas (i.e., pricing, property, terminations, quality, engineering, etc.). (ND) For contracts delegated to DCMA for administration, the CMO shall maintain the contract administration office file in accordance with FAR 4.8 and Electronic Document Workflow (EDW) User Documentation.
1.4.1. Electronic File Requirements. CMOs shall maintain the contract administration office contract files in an electronic format, in accordance with FAR 4.802. The EDW system is the Agency’s official electronic contract administration contract file system.
Records maintained in Agency-approved or DoD applications should not be uploaded
into EDW (e.g., WAWF, Duty-Free Entry (DFE) eTool, Lost Theft Damaged Destroyed
(LTDD) eTool, etc.).
22.214.171.124. Examples of the types of records maintained in the contract file are found at FAR 4.803 (b). CMOs shall place documents that would normally be filed in a “hard copy” contract administration file in the EDW system contract administration file,
with the exception of those documents filed in Agency-approved or DoD
applications (e.g., WAWF, DFE eTool, LTDD eTool, etc). (Reference EDW 5.0 Training and EDW 5.0 User Documentation)
126.96.36.199. Exceptions to Maintaining Electronic Files. Legacy documents or those too voluminous to be scanned into EDW may be kept in paper form. CMOs shall reference “hard copy” paper document location in the official electronic EDW contract administration file.
1.4.2. Establishing Electronic Files.
188.8.131.52. Contractor-Level (CAGE-Level) Files. Certain contract administration functions are performed at the “Contractor” or “CAGE” level. CMOs shall establish “Contractor” or “CAGE” level files, as necessary. Content of contractor-level files include documents such as purchasing system information, cost accounting standards – disclosure statement(s), drug-free workplace program, earned
value management system, quality assurance system, etc.
184.108.40.206. Contract Files. Documents related to a specific contract include the basic contract or delivery order, modifications, post award conference records, correspondence related to the specific contract, negotiation records, etc. CMOs shall ensure a contract file is established for each contract delegated for prime administration, support administration, or other workload (Non-DoD contracts, special programs, etc.).Functional specialists responsible for support contracts
shall ensure their contract records are properly maintained in the electronic contract file.
2. Perform Initial Contract Review (CR). Initial contract review is performed in order to understand contractual requirements, identify functional support required to manage the contract, ensure appropriate functional
specialists are aware of complex or special contract requirements, identify contractual deficiencies, ensure data integrity and to initiate a post award orientation, as necessary. (ND) Functional specialists shall perform initial CR for new contracts delegated to DCMA for administration, except those contracts expected to require few or no controls and that will be administered by the CMO on a management-by-exception basis.The CRR e-Tool is the Agency tool used for identifying new
contracts required to be input in MOCAS, prioritizing CR, and generating post
award orientation documentation. (ND) Functional specialists shall perform initial CR within 30 days of receipt to determine functional contract administration requirements, identify proper administration techniques and related acquisition risks, and
ensure data integrity as necessary.
2.1. Review of Administrative Contract
Data. Initial contract review starts with a review of administrative contract data and is generally performed by the ACO/CA. In order to identify new contracts received, the ACO/CA shall promptly review the EDW In-Basket and the CRR e-Tool. This review will determine:
Whether or not all attachments and exhibits mentioned in contract have been received,
Other contract workload status (e.g., ODO’s; coordinate with CMO Direct Input personnel for MOCAS input, as necessary),
Requirements for additional functional support, and
Proper input in SICM, as necessary.
2.2. Identifying Appropriate Functional Support/Assignment. Functional specialists shall consider the type of contract, dollar value, item being procured (supply or service) and contract clauses when identifying the appropriate functional support required to administer the contract. For example, low
dollar, firm fixed price contracts that do not include special provisions or clauses related to payment or other contract administration areas are generally managed by exception (MOCAS Part B contracts).
2.2.1. Functional specialists receive new contracts in accordance with the CMO's DoDAAC and
EDW workflow table (see paragraph 220.127.116.11. of this instruction), and
independently determine their level of involvement in the administration of the
contract. When new contracts are received that require functional
support from specialists who are not part of the normal EDW workflow, the ACO/CA shall promptly review each new contract, immediately identify appropriate functional support required, and notify functional specialists as necessary (including initiating an update to the Contract Management Team (CMT) e-Tool
or EDW workflow tables as necessary).
2.2.2. The CRR e-Tool is the Agency tool used to perform an initial review of new contracts, unless the contract is not required to be input in MOCAS (e.g. contracts paid in foreign currency or contracts in
the Electronic Contract Administration Request System
(ECARS)). The CRR e-Tool provides a prioritized (prioritized based on select MOCAS criteria) list of new contracts received and allows users to review contract data as posted in MOCAS (e.g., special provisions, contract clauses, CLIN/Schedule data, funding information,
etc.). Users do not need access to MOCAS in order to view new contracts in the CRR e-Tool. For new contracts that are not required to be input in MOCAS (e.g., contracts paid in foreign currency or contracts in ECARS), functional specialists shall review the contract and any available abstracts to gain an understanding of requirements and to submit
a post-award orientation recommendation to the ACO (see paragraphs 2.3 and 3 of this Instruction).
2.2.3. There may be instances when a buying activity retains administration but wants to use MOCAS as the payment system. These are known as “Payment Only” contracts and cite DFAS Columbus as the payment office. Payment only contracts are
automatically placed in MOCAS - Part C, have an assignment code “G”, functional limitation code “3”, and ACO/IS Code “PAY”.
2.3. Specific Functional Review. Functional specialists assigned to the contract shall promptly review their EDW in-basket and the CRR e-Tool,
as necessary, to identify new contracts and submit a post award orientation recommendation to the ACO.
The functional specialists review will vary according to career field. This review will enable the functional specialist to gain an understanding of contractual requirements (e.g., performance, quality, delivery, and technical requirements) as well as to
identify any data integrity issues. Certain functional specialists should pay particular attention to the following contractual requirements and update MOCAS or SICM as necessary (for additional information see DCMA Instruction for each specific requirement):
2.3.1. ACO/Contract Administrator (1102): In addition to being aware of all functional specialist requirements, the ACO should also pay specific attention to financing clauses (i.e., advanced payments, progress payments, performance based
payments, commercial item financing, economic price adjustments), payment
instructions that conflict with regulatory requirements, whether the contract is covered by Cost Accounting Standards (CAS), billing and invoicing terms, undefinitized contract actions to be negotiated by the ACO, requirements for award fee, liquidated
damages, specialty metals, consent to subcontract, electronic invoicing, first article, special contract clauses (identified in Section H of the contract), and requirements for contractors to report contract performance outside the U.S. (reference DFARS 252.225-7004). For classified contracts, ACOs shall inform contractors and subcontractors of the security classifications and requirements assigned to various documents, materials, tasks, subcontracts, and components of the classified contract
in accordance with FAR 4.403(c).
2.3.2. Industrial Specialist (1150): In addition to CLIN/Schedule and other contract information detailed in the Manufacturing and Production Instruction, the Industrial Specialist should pay specific attention to DPAS rating, surveillance criticality designator, production surveillance code, first article, liquidated damages clause, payment clauses that will require
IS action, allowable quantity variances and negative pre-award survey overrides.
2.3.4. Engineering: In addition to requirements of the Earned Value Management System (EVMS) – Program Analysis Instruction, Engineers should pay special attention to specific contract technical requirements in the area of design, development and production. Other areas for review may include data-items, technical
data rights clauses, first articles, material management and accounting system, system engineering or integration requirements.
2.3.6. Other Functional Support: Other functional support may be required at some point in time during the administration of the contract, including Small Business Center (subcontracting plan, mentor-protégé, small business subcontracting
performance, etc.), Technical Operations Center (packaging, safety, and transportation), and Plant Clearance.
2.4. Considerations for Certain Types of Contracts. The type of contract involved will impact the scope and complexity of CMT participation. The following are special considerations that shall be addressed by the CMO during initial review and team planning process. The information is grouped by fixed price type contracts, cost type contracts and “other” types.
2.4.1. Fixed Price Type Contracts.
18.104.22.168. Firm Fixed Price contracts are used when a fair and reasonable price can be established at the outset. The Government pays the negotiated amount regardless of the contractor’s real cost. This contract type is preferred to all others
because it encourages the contractor to contain costs. Pay special attention to financing clauses (progress payments, performance based payments, commercial item financing, and advance payments), if applicable.
22.214.171.124. Fixed Price Incentive contracts are used when the parties can negotiate a target cost, target profit and a ceiling price that provides for the contractor to assume an appropriate share of the risk. Pay special attention to the incentive
arrangement/formula, any funds status reports such as the Contractor Performance Report, the progress payment clause, and the Quarterly Limitation on Payments Statements (QLOPS) (refer to FAR 52.216-16 and FAR 52.216-17). QLOPS are submitted within 45 days after the end of each quarter beginning with the quarter in which delivery is first made or services performed and accepted and continuing until negotiation of the final contract price (note QLOPS may
be submitted directly to the PCO with a copy to the ACO). The ACO is authorized to withhold payment if the contractor does not submit this report on time. See FAR 16.4, Incentive Contracts.
126.96.36.199. Fixed Price with Economic Price Adjustment (EPA) contracts are used to protect the contractor and the Government against significant economic fluctuations in labor or material costs during the period of contract performance. EPAs
are based on established catalog or market prices, actual costs, or cost indices of labor or material. At the end of contract performance, the contractor submits an EPA proposal which the ACO evaluates in order to arrive at a reasonable negotiation position.
The contractor is required to certify that all price decreases have been applied and the ACO is responsible for verifying the contractor’s certification as well as the application of all required price decreases.
188.8.131.52. Fixed Price Redetermination contracts are either prospective or retroactive. The prospective type is used when it is possible to negotiate a fair and reasonable price for an initial period but not for subsequent periods. The initial
portion of the contract is firm fixed price and will be the longest period possible. The price for subsequent periods is determined through negotiation after completion of the contract and will be for at least 12 months. The retroactive type is used when it
is not possible to negotiate a fair and reasonable price for the entire contract period. A ceiling price is established and final price is determined through negotiation after completion of the contract. Pay special attention to the financing clauses and
the Quarterly Limitation on Payments Reports (refer to FAR 52.216-16 and FAR 52.216-17).
184.108.40.206. Fixed Price Level-of-Effort contracts are used to purchase a specified level of effort over a stated period of time. This type of contract is not considered a predominant contract type. Pay special attention to contractor level of
effort through analyses of status reports and audit of the contractor’s billings, especially the final billing. Note that cost vouchers are not used for billing and the ACO should work closely with the PCO to review hour expenditures. See FAR 16.207, Firm Fixed Price Level-of-Effort Term Contracts.
2.4.2. Cost Type Contracts.
220.127.116.11. Cost Plus Fixed Fee contracts are used when there are enough uncertainties involved in contract performance to preclude using a fixed price contract. Pay special attention to the Limitation of Cost/Funds clause as well as the contractor’s
funds status reports that are identified in the contract. Even though DCAA signs the contractor’s requests for payment, the ACO can at any time during contract performance request an audit of the contractor’s vouchers. The ACO is responsible for monitoring
the contractor’s expenditures. The contractor’s invoices may be submitted not more than twice monthly.
18.104.22.168. Cost Plus Incentive Fee and Re-determinable contracts are used to encourage contractors by providing greater profits through cost savings and/or other performance improvements. Pay special attention to the incentive provisions, funds
status reports, and limitation of cost/funds provisions. A Post Award Orientation Conference is helpful if the contractor is new to the incentive provisions.
22.214.171.124. Cost Plus Award Fee contracts are used to provide additional incentive to contractors to achieve excellence in areas such as quality, timeliness, technical ingenuity, and cost effective management. Pay special attention to the Award
Fee criteria and the rating plan. The contract will provide for interim rating periods during contract performance. The team may add value to the Award Fee Evaluation by providing timely input to the Program Manager on observations with regard to the stated
126.96.36.199. Cost Sharing contracts are used when the Government pays only a portion of the allowable costs and no fee. This kind of contract is used for R&D work from which the contractor will derive a substantial commercial benefit (e.g., the
development of Teflon).
188.8.131.52. Time and Material (T&M) and Labor Hour (LH) contracts are used when it is not possible to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence. Contractor billings
must be submitted using public vouchers and interim billings are approved by DCAA and the final payments are approved by the ACO (see AT&L/DPAP Memo dated 14 Apr 2008). T&M and LH contracts provide no incentive to the contractor for controlling cost; therefore the CMT shall perform surveillance on the contractor to assure that the contractor is performing efficiently and using effective
cost control measures. Immediately after receipt of the contract the ACO shall convene a government meeting with appropriate functional elements to establish a surveillance plan. This plan shall include:
184.108.40.206.1. A determination of the adequacy of the contractor’s
accounting system to accurately identify and record costs incurred under the
contract and to provide a basis for auditing;
220.127.116.11.2. Surveillance of the contractor’s plant operations
to ensure that the direct labor and direct materials being charged to the contract are allowable, allocable, and reasonable. The ACO shall ensure that the plan provides for periodic floor checks by the Industrial Specialist, Engineer, assisted by the QA representative in accordance with the QA Surveillance Plan.
When risks associated with T&M and LH contracts require specific QA surveillance
tasks, those surveillance tasks should be documented in the QA Surveillance Plan (see QA-GCQA
Surveillance Planning Instruction). These floor checks are to
ascertain the necessity for and the quantities and types of direct material and
direct labor actually being used. Floor checks are the primary means by
which the Government detects whether or not it is being inappropriately charged.
Note that DCAA does not routinely perform floor checks on an individual
18.104.22.168.3. Periodic audits of the contractor’s billings under
the contract. This audit should be coordinated with the timing of the
floor check, and;
22.214.171.124.4. Functional specialists performing audits shall immediately report any problems noted to the ACO and other team members.
2.4.3. Other Types of Contracts
126.96.36.199. Letter contracts are used when the Government’s interests demand that the contractor be given a binding commitment so that work can start immediately, and negotiating a definitive contract is not possible in sufficient time to meet
the requirement. Pay special attention to the contractor’s compliance with the definitization schedule and inform the PCO of any anticipated delays. Monitor the contractor’s expenditures and percentage of completion and assure that the limitations established
by the PCO are not exceeded. Team with the PCO and offer our services to obtain, review and evaluate the contractor’s proposal for use in negotiating the final contract. Special considerations apply when making payments under undefinitized contract actions.
188.8.131.52. Basic Ordering Agreement (BOA). BOAs allow orders to be issued against them. A BOA is not a contract. It contains pricing methods, terms and conditions, and a description of the supplies or services to be provided. The terms
and conditions apply to future contracts (orders) that are expected to be issued under the BOA. Pay special attention to the organizations authorized to issue orders, conditions under which orders may be issued by the ACO, funding limitations, ordering authority
expiration date, definitization schedule, when the contractor may start performance on the order. When ACOs are authorized to issue orders, the PCO must provide a copy of a Justifications and Approvals (J&A) document, as required by FAR 6.303, FAR 6.304 and FAR 6.305. See FAR 16.7and DFARS 216.7.
184.108.40.206. Indefinite Delivery Contract (IDC). IDCs allow orders to be issued against them. An IDC is a contract. The orders issued under the contract (IDC) are not considered to be individual contracts nor subject to segregation from the
IDC. The orders must be issued within the scope of the contract (IDC), issued within the period of performance, and be within the maximum value of the contract (IDC). See FAR 16.5 and DFARS 216.5.
2.4.4. Non-Procurement Instruments.
220.127.116.11. Grants and Cooperative Agreements. Grants and Cooperative Agreements may be awarded to commercial organizations, nonprofit entities, and educational institutions. Cooperative Agreements are used with entities that furnish procurement
technical assistance to businesses. Grants and Cooperative Agreements are legal instruments, but they are not contracts. They are not subject to the FAR but rather are subject to the DoD Directive 3210.6-R Defense Grant and Agreement Regulatory System (DGARs). Only Administrative Grants Officers (AGOs) and Administrative Agreements Officers (AAOs) are authorized to administer grants and cooperative agreements (see Warrants and Other Official Appointments Instruction). Upon receipt of a Grant or a Cooperative Agreement, the ACO shall meet with the CMO CMT and determine the extent of surveillance to be performed. The ACO shall advise nonprofit recipients of certain
requirements concerning competition in procurement of audit services, and the treatment of rebates related to allowable charges against Government awards.
18.104.22.168. Other Transactions (OTs). OTs are not covered by the FAR or DFARS and are meant to be flexible instruments. The terms and conditions of individual OTs can vary greatly from one instance to another in support of individual program
objectives. Only Administrative Agreements Officers (AAOs) are authorized to administer OTs (see Warrants and Other Official Appointments Instruction).
22.214.171.124. Technology Investment Agreements (TIAs). TIAs are a class of assistance instruments that may be used to carry out basic, applied, and advance research projects when it is appropriate to use assistance instruments, and the research is to be performed by a for-profit firm, or by consortia that include a for-profit firm. TIAs replaced two types of assistance instruments:
"consortium agreements", a type of OT used by the Defense Advance Research Projects Agency (DARPA), and "cooperative agreements under 10 U.S.C. 2371", addressed in Part 37 of the
2003 Draft Interim Guidance DGARs, and also referred to as "flexible cooperative agreements". A TIA is a type of cooperative agreement (awarded under the authority of 10 U.S.C. 2358) when its patent rights provision complies with the Bayh-Dole
statute (Chapter 18 of Title 35, U.S.C.). A TIA is a type of other transaction (awarded under the authority of 10 U.S.C. 2371) when its patent rights provision is less restrictive than is possible under Bayh-Dole. An OTs for prototype is not covered under the TIA classification. TIAs are also administered by CMOs
throughout DCMA offices. Other references that may be helpful when administering TIAs include Section 845 Other Transaction Authority,
and DCAA Audit Guidance on Evaluation of Other Transaction Agreements (OTAs)
2.5. Resolving Contract Deficiencies.
2.5.1. Identify Deficiencies. During the contract review process, functional specialists may find inconsistencies in contract clauses, outdated clauses, administrative deficiencies (e.g., missing ACRNs, incorrect DoDAACs, etc.), or MOCAS
data integrity errors (e.g., final delivery date, contract type, missing schedules, etc.). These deficiencies may cause delays in production, shipment and delivery and may result in payment delays, erroneous payments and ultimately contract closeout problems.
Most administrative contract deficiencies may be corrected by administrative modification. Other contract deficiencies require coordination with the PCO prior to correction.
Contract administration systems, MOCAS and SICM, should reflect the terms and
conditions of the contract, as modified. MOCAS or SICM database
changes/corrections are accomplished by functional specialists or by CMO Trusted
Agents (see paragraph 2.5.3 below and Trusted Agent Procedural
2.5.2. Report Deficiencies. Contract deficiencies reports are available in several formats. EDA-Contract Deficiency Reports (EDA-CDRs) and DD Form 1716s are equivalent. DD Form 1716s are issued in paper/form (pdf) and EDA-CDRs are issued in data format. Functional specialists shall use the EDA-CDR system to promptly report, track and resolve identified contract deficiencies. Note that the contract does
not have to be entered into the MOCAS system in order to initiate a CDR. However, the initiator must have access to EDA-CDR. New Users may self-register; registration information is available at the EDA website.
126.96.36.199. Initiating a CDR. The CDR “Initiator” is the functional specialist who creates the CDR based on errors found within the contract. This may be the ACO, CA, QAR, IS, Property Administrator, etc – as long as they have access to EDA-CDR.
188.8.131.52. Reviewing CDRs. The CDR “Reviewing Official” is the person responsible for validating and approving the CDR. (ND) The ACO shall be the reviewing official for all DCMA-initiated CDRs. (ND) Functional specialists (initiators) shall send all CDRs to the assigned ACO for validation/approval.(ND) The ACO (reviewing official) shall promptly validate and approve or reject the CDR. (ND) ACOs (reviewing officials) shall not close CDRs that were initiated by DFAS. If an ACO is not listed as a “reviewing official” in EDA-CDR, the ACO should
open a DCMA Helpdesk Ticket requesting the “reviewing official” role be added to their EDA profile.
184.108.40.206. Assigned CDRs. Functional specialists shall promptly respond to all PCO-initiated and DFAS-initiated CDRs. Assignees may return the CDR to the initiator, reassign the CDR to another assignee, or accept the CDR for action. Functional specialists shall promptly resolve all accepted CDRs.
2.5.3. Ensure System Data Integrity. MOCAS and SICM data may be changed by two methods, either by contract modification (see Contract Modification Instruction) which changes the original terms and conditions of the contract or by requesting a database change/correction. (ND) ACOs/CAs shall not issue contract modifications to correct erroneous system data.
220.127.116.11. MOCAS. While the majority of contracts are electronically received in MOCAS, there may be occasions when the CMO has reason to doubt the accuracy of the data entered in the MOCAS system, as compared to the actual contract. Functional specialists shall perform a data integrity review, as necessary, to promptly identify and correct system errors. MOCAS data should reflect the terms and conditions of the contract. The most common errors associated with data integrity are related to line item and schedule records. During a data integrity review, functional specialist attention should be directed
to ensuring that supply line items have associated schedule records with a defined delivery date and service line items contain a defined service completion date. Functional specialists should also ensure the deliverable line item has been properly input
with the correct type of line item records (e.g., supply or service). Detailed reviews of this nature will preclude unnecessary recycling of receiving reports. Some MOCAS errors may be corrected by the individual functional specialist and other errors must
be corrected by the CMO Trusted Agent. For additional guidance, see the Trusted Agent Procedural Guide.
18.104.22.168. SICM.SICM contracts are manually input in the database therefore, a data integrity review is mandatory. Functional specialists shall review new contracts input in SICM to ensure data integrity and to promptly identify
and correct system issues. SICM should reflect the terms and conditions of the contract.
3. Perform Post Award Orientation Actions. During initial contract review, functional specialists shall decide whether or not a post award orientation would be beneficial. The specialist shall immediately submit a post award orientation recommendation to the ACO, including reason for the orientation and
the recommended type of orientation.The ACO shall ensure post award orientations are held promptly after all assigned functional specialists have received and reviewed the contract.
QA functional specialists should refer to the QA-Post Award
Orientation Conference Instruction for specific procedures for accomplishing
the QA portion of post award.
3.1. Purpose of Post Award Orientation. Post award orientation aids both the Government and contractor personnel in achieving a clear and mutual understanding of all contractual requirements. It enables the identification and resolution
of potential contract administration problems.
3.2. Types of Post Award Orientation. There are two types of orientations, formal and limited. A formal conference may be held or written/verbal communication (limited) may take place. However, not all new contracts may require a
post award orientation – specifically contracts that do not have complex requirements or that are low-dollar awards, i.e., meeting MOCAS Part B criteria (see paragraph 3.3, Selecting Contracts for Post Award Orientation, of this Instruction).
3.2.1. Post Award Orientation Not Required. A post award orientation may not be required when repetitive orders are issued with the same contractor or if the contractor is performing satisfactorily on other contracts or orders for like or
similar items or services or same contract terms and conditions.
3.2.2. Written/Verbal Orientation (Limited). In some circumstances a letter or other written form of communication to the contractor may be an adequate orientation. Generally the contractor is experienced and has received numerous DoD contract
awards; however, the functional specialist believes that certain contract provisions, clauses or requirements should be brought to the contractor’s attention.
3.2.3. Post Award Orientation Conference (PAOC) (formal). A post award orientation conference may be held to perform a detailed review of the contract, specifically highlighting and discussing complex terms and conditions. The conference will
ensure that all parties understand contractual requirements.
3.3. Select Contracts for Post Award Orientation. When deciding whether post award orientation is necessary, and if so, whether it should be written/verbal or by conference, functional specialists shall consider the –
Nature and extent of the pre-award survey and any other prior discussions with the contractor;
Type, value, and complexity of the contract;
Complexity and acquisition history of the product or service;
Requirements for spare parts and related equipment;
Urgency of the delivery schedule and relationship of the product or service to critical programs;
Length of the planned production cycle;
Extent of subcontracting;
Contractor’s performance history and experience with the product or service;
Contractor’s status, if any, as a small business, small disadvantaged, women-owned, veteran-owned, HUBZone, or service-disabled veteran-owned small business concern;
Contractor’s performance history with small, small disadvantaged, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small business subcontracting programs;
Safety precautions required for hazardous materials or operations; and
Complex financing arrangements, such as progress payments, advance payments or performance based payments.
Assigned contractor personnel are new to Government contracting.
3.4. Initiate a Post Award Orientation.
3.4.1. PCO’s may initiate a post award orientation.
3.4.2. While any functional specialist may recommend the ACO arrange for post award orientation, the ACO shall decide whether a post award orientation, in any form, is necessary (see FAR 42.5 and DFARS 242.5).
3.4.3. Upon receipt of a functional specialist post award orientation recommendation, including rationale and recommended type of orientation, the ACO shall promptly contact the rest of the CMT, as necessary (including Center members),
and determine the type of orientation, if any, to be initiated. When varying opinions exist regarding whether or not to hold an orientation, the ACO shall make the final decision. The ACO shall either prepare for an orientation or document the file with
rationale for a decision that is contrary to team recommendations.
3.5. Hold a Post Award Orientation.
3.5.1. Written/Verbal Orientation. The ACO may determine that written/verbal orientation will suffice in directing the contractor’s attention to one or more contract provisions, clauses or terms and conditions. In these cases, the ACO or
appropriate functional specialist may elect to discuss these areas with the contractor by telephone or by letter or email. When discussing these areas by telephone, the ACO or appropriate functional specialist shall follow-up with a letter or email to the contractor (with a copy to the PCO) confirming the items discussed and identifying any instructions provided. (See QA
Post Award Orientation Conference Instruction for additional information for QA functional specialists.)
3.5.2. Post Award Orientation Conference. Formal conferences involving all functional specialists, the PCO, program manager, DCAA, and DFAS should normally be limited to only the most complex, high-dollar value contracts (e.g., major weapons
systems, contracts containing EVMS requirements, etc.). The ACO may decide to hold a limited conference with only selected function specialists attending. For all DCMA-initiated post award orientation conferences, the ACO shall --
Establish the time and place of the conference,
Prepare the agenda, as necessary,
Notify appropriate Government representatives and the contractor,
Designate a chair person or act as the chair person,
Conduct a preliminary meeting of Government personnel, as necessary,
Prepare a summary report of the conference, and
Monitor action items generated by the conference.
3.5.3. Post Award Orientation Documentation. When a post award orientation is conducted, regardless of the type (written/verbally or conference), the official contract administration file must be documented. (ND) The ACO or appropriate functional specialist shall document the official contract file (EDW) when a post award orientation is conducted. ACOs are encouraged to use or the CRR e-Tool PAO Limited or Detailed record as a guide for conducting the post
award orientation conference and for preparing the summary report. However, the DD Form 1484, Post Award Conference Record may also be used.
4. Contract Review Documentation.
4.1. Documenting initial contract review is not mandatory, except for certain post award orientation documentation (see paragraph 3.5.3 of this Instruction)
or other functional specialist documentation requirements related to the
technical aspects of the contract (e.g., see QA Contract Technical
Review Instruction). Functional specialists assigned to individual contracts are responsible and accountable
for ensuring proper contract administration is performed as required by the terms and conditions of the contract. Evidence of functional specialist understanding gained during initial contract review will become apparent in the follow-on decisions made during
routine contract administration efforts.
4.2. It is recommended that CMOs periodically review a sample of new contracts received to determine if functional specialists have sufficiently identified complex terms and conditions and applied appropriate administration skills necessary
to manage assigned contracts, in accordance with this Instruction. Samples should be sufficient to represent the type of contracts, dollar value, and volume for the individual CMO. For example, CMO Contracts Director, Team Leader, ACO or other reviewing
official may –
Use the CRR e-Tool to identify new contracts received during a range of time;
Select a representative sample from the list of contracts;
Perform a review of the contract using EDA or EDW (to independently identify contract administration skills required, complex terms & conditions, special clauses, etc.);
Compare the sample findings to CMT actions taken to prepare for administration of the contract (i.e., reviewing the EDW file to determine if a post award orientation was performed as necessary, if financing is involved – reviewing officials
may ask “were appropriate steps taken to prepare for initial financing requests”; if an EVMS clause is included in the contract – reviewing officials may ask “is the appropriate R9 code assigned”); and
Hold discussions with individual functional specialists to determine if they are aware of specific contract terms and conditions.
Other areas that CMO Team Leaders and ACOs may consider during their review include post award orientation records, accuracy of the CMT e-Tool for specific contracts, and EDW In-Basket workload reports.
5. Determine Next Process for Administering the Contract. Performing initial contract review assists functional specialists in their efforts to realize the scope of personal workload, identify contract administration responsibilities, and obtain an understanding of the skills and techniques required to manage the contract.
Understanding what is required to administer the terms and conditions of a contract may not be gained by merely reading the contract. Initial contract review is the first step of the administration process. Therefore, functional specialists shall determine the next process to be used in order to continue to administer the contract. DCMA provides Instructions on almost every other contract administration process necessary to effectively administer contracts.
Under the Defense Acquisition Workforce Improvement Act (DAWIA), Specialists should be certified in accordance with their grade and position held.
Certifications - The ACO shall have achieved a DAWIA Level II Certification and a minimum of 2 years of experience. For more details see Warrants and Other Official Appointments Instruction for types of warrants and qualifications required.
Contracts - Initial Receipt and Review Training Matrix
Contract (9th position of the Procurement Instrument Identification Number
(PIIN) is “C”),
Basic ordering agreement (BOA) (9th position of PIIN is “G”),
Blanket purchase agreement (9th position of PIIN is “A”), and
Indefinite delivery contract (IDC) (9th position of PIIN is “D”)
Order issued under a BOA
Order issued against an IDC
Purchase order (9th position of PIIN is “M”, “P”,
“V”, or “W”)
Grant (9th position of PIIN is “1”)
Cooperative Agreement (9th
position of PIIN is “2”)
Other Transaction for research (9th position
of PIIN is “3”)
Other Transaction for prototype (9th position of PIIN
Electronic Tools Available to Assist in Contract Receipt &
EDA. EDA is DoD’s system for providing electronic access to multiple types
of acquisition documents. EDW retrieves contracts assigned to DCMA for
administration from EDA.
EDW. EDW is mandatory for maintaining the official contract
administration file. EDW is a contract retrieval, document routing, file
management, and records management system. Contracts may be viewed in EDW, even
though they have not yet been input in MOCAS. EDW provides CMOs with four
Automated retrieval of contracts posted by our customers to the Defense
Information Service Agency (DISA) Electronic Document Access (EDA) website,
Electronic management of contracts and all contract-related documents,
Expedited routing of documents to team members for review, and
Electronic records management and files disposition.
CRR e-Tool. The CRR e-Tool automatically creates a list of new
contracts received, prioritizes workload based on certain contract data
(contract value, special provisions, contract clauses, etc.), and identifies
contracts containing special provisions, clauses or of a dollar value that would
warrant consideration for a post award orientation.
Workload prioritization criteria includes: 1) Special Contract Provisions A
(Liquidated Damages), B (Advanced Payments), C (Financing), F (First Article)
and Y (Berry Amendment); 2) R9 Remarks 25 (FMS), 38 (PBPs), 49 (Limitation of
Cost and Funds), 29 (Withholds), 07 (Duty Free Entry) 27 (Small Disadvantaged
Business), PP (EVMS), 65 (UID), 66 (RFID), 67 (ARP), 68 (CoC) and 69 (CSIs); and
3) Cost contract with an obligated value of at least $1M.
CRR e-Tool allows users to view assigned new contracts, even though
they do not have access to MOCAS (e.g., engineers, program integrators, etc.).
Verification of special provision and contract clause coding may be accomplished
using CRR e-Tool. For example, when a new contract is for the procurement of
critical safety items, functional specialists may review the R9 remarks in the
CRR e-Tool and verify that Code 69 – Critical Safety Items is listed.
The e-Tool also allows for ACRN and CLIN/schedule reviews by providing
a link to Contract View e-Tool.
Users may also generate post award orientation documentation in the CRR
e-Tool. Note the data is retained 45 days from date the contract was received
in MOCAS, therefore if users are still in the middle of a post award orientation
at the end of the 45 day period, all data will be lost. To avoid losing data,
it is recommended that post award orientation documentation be exported and
saved in the EDW folder as soon as a post award orientation method is selected.
Users should note the post award orientation indicator/flag is not intended to
mandate a post award orientation be accomplished. Rather, the indicator/flag
identifies contracts containing special provisions, clauses or of a dollar value
that would warrant consideration for a post award orientation.
The e-Tool may be used to perform a search for a specific contract,
functional specialist code or date range (provided the date range is within 45
days of contract receipt). Additional searches are available by functional
specialist role (i.e., QAR, IS, ACO).
CMT View e-Tool. The CMT View e-Tool allows users to view a list of
functional specialists (also known as the CMT members) as assigned in MOCAS, or
as assigned by the CMO CMT administrator. The CMT View e-Tool should be updated
as necessary as CMO workload changes are made in MOCAS.
(CV) e-Tool. The CV e-Tool allows users to search for a contractor and
associated contract management team. Searches may be conducted by Contract
Number, CAGE Code, or CMO DoDAAC and functional role. Users may select a
contract and view general contract data, ACRNs, Line Items (delivery/schedule
data), Special Provisions, and Contract Modifications. CV provides a centralized
view of contract data and eliminates the need to access numerous MOCAS screens.
EDA-CDR. EDA-CDR is used to report, track and resolve identified
contract deficiencies. Contract deficiencies range from conflicting quality
requirements, incorrect PIIN/SPIIN numbering to missing long lines of
accounting. Contract deficiencies reports are available in several
formats/options. CDRs and DD1716s are equivalent. DD1716s are in paper/form (pdf)
and CDRs are in data format. Data allows annotation/tracking as the deficiencies
progress to resolution.
Portal/Community of Practice
– Contracts Community, Contract Receipt & Review Page
Points of Contact
DCMA Instruction Point of Contact information is not available to the general public.
DCMA employees please click here for the process POC's