1. Intermediate Post Award Contracting
Jennifer Alves
Administrative Contracting Officer
8 March 2017
Unclassified//For Official Use Only

2. Agenda Introduction Business Systems
Overhead Rates and Incurred Cost Proposals
Contract Audit Follow-Up and Claims
Novations and Name Changes
Canceling Funds
Closeout

3. Business Systems Accounting Estimating Purchasing Property
Earned Value Management
Material Management and Accounting System

4. Overhead Rates & Incurred Cost Proposals
Obligation for Cost Contracts
Due 6 months after Fiscal Year end
FAR Part 31
Allowable/Unallowable Costs
DCAA Audit
Settled rates
Questioned costs
Adjustment Vouchers

5. Contract Audit Follow-up & Claims
What is a CAFU?
How do they work?
Goals
Deadlines
Results
Claims

6. Novations/Name Changes
Common examples
Stock sales
Conversions (Corporation to LLC and vice versa)
Transfer to subsidiary
Transfer from subsidiary to parent
Transfer between sister entities
Mergers
Bankruptcy

7. Contractor’s Responsibility
Something is happening with the Company
Notify the ACO of the upcoming transaction/event
Written request to responsible ACO
Written notification to PCOs
Documentation outlined in FAR to include but not limited to
Novation/Name change agreement
Document describing the transaction
List of all affected contracts
Legal Counsel opinion
Statement of Security from DSS

8. Legal Opinion
Needs to be submitted for each party involved in the transaction
Can both parties have the same Legal Counsel?
The Novation/Change of Name was properly effected under applicable law on the effective date of the transaction

9. Lessons Learned Provide all the details of the transaction up front
Don’t argue about the agreement type
Originals are essential – not optional
ACO has the final decision on paperwork
No paperwork – process stops
Quick turnaround yields faster results
DCMA Legal Counsel has their own queue
Calling often will not speed up the process

10. Canceling Funds Cancel as of September 30th Billing De-obligating
Importance for all parties

11. Vertical Visibility in the Supply Chain The Cost of Subcontracting
Tier 1 Supplier Proposal at Price
Tier 2 Supplier Proposal at Price
Tier 3+ Supplier Proposal at Price
Typical Development, Production Contract Supply Base Insight & Impact
Supplier 1
Supplier 1-1
Prime Proposal
Prime Supplier
Supplier 1-2 2%
Supplier 2
15%
For all of these Suppliers we have little or no visibility in Performance Metrics
Supplier 3
43%
32%
Supplier 4 8%
Decreasing Visibility Limited Visibility No Visibility
Financial metrics are driving outsourcing, but maximizing shareholder value also occurs at lower tiers

12. A Changing Landscape DoD Acquisition – Have We Adapted?
Broad Examples for Consideration
Should DoD Acquisition / PMs even Focus on or Worry About the Extended Supply Chain?
Follow the Money – Where are Costs?
Where is the Intellectual Heavy Lifting? Data?
Who is Designing & Building the Product?
Do we Think the Primes have Fully Adapted?
Traveled Work….
Do We Share the Same Objectives?
Are Primes Incentivized for Low Cost Best Value?
Don’t We Pay the Primes
to Do This?
Do Sub-Tier Suppliers get 80% of the Focus?
Contractual Language for Supplier Insight?
Consent to Subcontract, Right of Entry, Make or Buy
Plans, Sub-Contractor Management Plan, Cost Reporting
Does the DoD Negotiate & Contract for Effective Supplier Management?
Understand Supplier’s Costs? Tiered Profits?
Direct Technical Communications & Support?
Where DoD Program Fits in Sub’s Pecking Order?
Do Our Program
Teams / PEOs Know
Their Suppliers ?
Understand Supplier Management Strategies?
Metrics Include Prime’s SCM Performance?
On Schedule POs, Supplier Request Backlog,
Procurement Staffing, Technical Support Turn Times…
How … Assuring our Prime’s are
Effectively Selecting, Managing &
Supporting our Sub-tier Suppliers?
What‘ is the Supplier Network & Management Structure / Expertise on Your Team?

13. Contracts - Other Issues
First step in preventing payment issues – Read the Contract!
When inputting invoices into iRAPT (formerly WAWF) follow the contract
Validate ship-to, inspect, and accept DoDDACs
Validate CLIN, unit of issue, quantity, and price
Non-resident QARs need 5 days notice (2 days if QAR is in residence) for inspecting and accepting
Issues cause delays in payments to contracts and can affect on-time delivery rates for contractors
Understand your responsibilities
If you don’t know ask (ACO or PCO)
Only the ACO and PCO can direct the contractor to do anything, be wary of perceived authority as you may not be reimbursed for costs incurred
Patent requirements (different clauses have different submission requirements)
Patents developed with Government funds gives the Government certain rights to the invention
Signing the Certificate of Indirect Costs is the company stating that all costs are current, accurate, and complete and that all costs are allowable in accordance with FAR Part 31
Expressly unallowable costs will result in a penalty

14. Discussion
Unclassified//For Official Use Only

15. One team, one voice delivering global acquisition insight that matters
Contract Closeout
DCMA, as a whole, has identified 43,000 contracts that are overage (>3 years past physically complete date) with a cumulative obligated value of nearly $145 Billion.
Why should you care
Administrative burden tracking physically complete contracts when those efforts can be expended on other uses
Money
A lot of these contracts still contain unliquidated obligations
If rates are not settled use FPRAs, provisional billing rates, or historical rates to determine what you can invoice
Because you have to
It is in the contract
To facilitate contract closeout contractors should understand what is required of them
FAR (Allowable Cost and Payment) gives you the rules
Incurred Cost Submissions shall be submitted within 6 months of the end of the company’s FY
DCAA has great tools to assist in building your IC submission
Generate a Cumulative Allowable Cost Work Sheet (CACWS)
When rates have been settled the contractor has 120 days to submit the final voucher for all contracts that are physically complete
Final voucher shall include settled subcontract amounts and rates.
Contracting Officer may make a unilateral determination on the amounts due if final voucher is not received in time
Release of Claims must be signed by senior management
One team, one voice delivering global acquisition insight that matters