Department of the Air Force Service Contracts Playbook PDF 2024

2024 DE P T. O F T HE A I R F OR C E Service Contracts Playbook 1.  Air Force Civil Engineer...

2024 DE P T. O F T HE A I R F OR C E Service Contracts Playbook 1.  Air Force Civil Engineer Service Contracts Playbook Table of Contents Chapter 1 - Service Contracts Overview............................................................................................................................... 4 Chapter 2 - 1.0 Identify Requirements................................................................................................................................. 6 Chapter 3 - 1.2 Non-Recurring Contract Requirement......................................................................................................... 8 Chapter 4 - 1.3 Recurring Contract Requirement............................................................................................................... 12 Chapter 5 - 2.0 Support Solicitation................................................................................................................................... 15 Chapter 6 - 2.13 Support Procurement.............................................................................................................................. 22 Chapter 7 - 3.0 Contract Management............................................................................................................................... 26 Chapter 8 - 3.2 Conduct Surveillance................................................................................................................................. 29 Chapter 9 - 3.3 Support Service Contract Modification...................................................................................................... 32 Chapter 10 - 3.5 Create Monthly Report............................................................................................................................ 36 Chapter 11 - 3.8 Validate Invoice....................................................................................................................................... 38 Chapter 12 - 3.8.3 Validate GPC Invoice............................................................................................................................. 42 Chapter 13 - 4.0 Perform End-of-PoP Activities.................................................................................................................. 44 Appendix A - Acronyms..................................................................................................................................................... 48 Appendix B - Terms and Definitions................................................................................................................................... 50 Appendix C - Master List of Links....................................................................................................................................... 54 Table of Figures Figure 1: Service Contracts – High Level.............................................................................................................................. 5 Figure 2: Identify Requirements.......................................................................................................................................... 7 Figure 3: Non-Recurring Contract Requirement................................................................................................................. 11 Figure 4: Recurring Contract Requirement......................................................................................................................... 14 Figure 5: Support Selection............................................................................................................................................... 21 Figure 6: Support Procurement......................................................................................................................................... 25 Figure 7: Contract Management....................................................................................................................................... 28 Figure 8: Conduct Surveillance.......................................................................................................................................... 31 Figure 9: Support Service Contract Modification............................................................................................................... 35 Figure 10: Create Monthly Report..................................................................................................................................... 37 Figure 11: Validate Invoice................................................................................................................................................ 41 Figure 12: Validate GPC Invoice........................................................................................................................................ 43 Figure 13: Perform End-of-PoP Activities.......................................................................................................................... 47 Table of Tables Table 1: Identify Requirement Roles and Responsibilities................................................................................................... 6 Table 2: Non-Recurring Contract Requirement Roles and Responsibilities.......................................................................... 8 Table 3: Recurring Contract Requirement Roles and Responsibilities............................................................................... 12 Table 4: Support Solicitation Roles and Responsibilities................................................................................................... 15 Table 5: Support Procurement Roles and Responsibilities................................................................................................ 22 Table 6: Contract Management Roles and Responsibilities............................................................................................... 26 Table 7: Conduct Surveillance Roles and Responsibilities................................................................................................. 29 Table 8: Support Service Contract Modification Roles and Responsibilities...................................................................... 32 Table 9: Create Monthly Report Roles and Responsibilities.............................................................................................. 36 Table 10: Validate Invoice Roles and Responsibilities....................................................................................................... 38 Table 11: Validate GPC Invoice Roles and Responsibilities................................................................................................ 42 Table 12: Perform End-of-PoP Activities Roles and Responsibilities.................................................................................. 44 2|P a ge  Air Force Civil Engineer Service Contracts Playbook Document Change Log The table below provides a log of significant changes found in this Playbook. Change # Section # Description of Change Date (MM/DD/YY) Whole 1 Formatted to current standard, updated links, updated cover. 3/20/2024 Playbook 3|P a ge  Air Force Civil Engineer Service Contracts Playbook Chapter 1 - Service Contracts Overview The Air Force (AF) Civil Engineer (CE) executes many requirements by contract. This Playbook focuses on CE service contracts executed by the Operations Flight (CEO), which are Operations and Maintenance (O&M)- funded efforts for maintenance of an AF installation. Service Contracts include the larger, common “Big 3” service contracts (Grounds Maintenance, Custodial Services, and Integrated Solid Waste Management (ISWM)) and others, which may include professional services or ad-hoc work. At the installation level, the Service Contracts Section (CEOES) of the Operations Engineering element (CEOE) serves as the focal point for CEO service contract-related matters. For more information on the organization and duties of the CEO, please refer to the Programming Plan (P-Plan) for Implementation of Civil Engineer Transformation Program Action Directive (PAD) 12-03, Volume 2. For more information on the CEOE, please refer to the Operations Engineering Playbook. The individual who executes the CE Squadron’s responsibilities for a service contract is the Contracting Officer’s Representative (COR). The COR and or other knowledgeable personnel translate requirements received from AF installation personnel (the “customers” of the contract) into actionable contract requirements through development of a Performance work statement (PWS) or a Statement of Work (SOW). The base Contracting Organization may consult with the COR to develop a final contract document and review proposals; however, it is the Contracting Officer’s (CO) responsibility to award and manage the contract. After the award, the COR acts as a technical expert for the CO on the contract, surveying the work being performed to ensure it meets the specifications of the contract and the customer, and recommending any actions, including payment to the contractor and contract modifications. The COR also works with Contracting during contract close out and to complete any follow-on actions. This Playbook has been updated to comply with PAD 12-03, Civil Engineer Transformation and PAD 14-04, Implementation of the Air Force Installation and Mission Support Center (AFIMSC). It reinforces standard CE business processes to include those to be executed in NexGen IT and promotes better decision making to sustain the AF mission and operate in a resource-constrained environment. Note: This Playbook is not intended to serve as initial training for CE service contract or COR related activities. It is intended to be a guide which ties CE business practices to contracting processes established by the Federal Acquisition Regulation (FAR) and Air Force Instruction (AFI). The Playbook assumes that CEOES is staffed with personnel who have served as CORs, are experienced in the contracting process, and have an established working relationship with their local contracting squadron. The contracting process can vary between locations and each contract action while remaining FAR and AFI compliant. This Playbook utilizes process maps to show a link between CE business practices and contracting processes. One process map cannot depict the flow for every CE service contract that is executed. It is imperative that personnel utilizing this playbook communicate early and often with contracting and pull from their own training and experience to facilitate the execution of their service contract. This Playbook uses the term COR to describe the CE representative who is the point of contact (POC) for service contracting actions from cradle-to-grave to align the document with NexGen IT procedures. 4|P a ge  Air Force Civil Engineer Service Contracts Playbook How to Use Playbook References This Playbook has several specialized references for each narrative, from specific policies and guidance (e.g., AFI or FAR) to specific forms and templates. Limitations: This Playbook does not replace, supersede, or circumvent existing Department of Defense (DoD) or AF policy. Applicability: The Playbook is directed towards CEO personnel to support the identification and execution of service contracts. Click here to view a larger image. Figure 1: Service Contracts – High Level 5|P a ge  Air Force Civil Engineer Service Contracts Playbook Chapter 2 - 1.0 Identify Requirements Service contract related service requests may be self-generated by CEOES or tasked to CEOES by the CEO as discussed in the Work Management Playbook processes. ROLES RESPONSIBILITIES Service Contracts Determines contract requirements Manager / COR Table 1: Identify Requirement Roles and Responsibilities Narrative Entry from Work Management Playbook, Chapter 3 – Request Management. 3.4.1.18 Service Contract (SC) Entry from Process 2.13 Support Procurement Process, Step 2.13.4. Entry from 3.3 Support Service Contract Modification, Step 3.3.4 Entry from 4.0 Perform End-of-PoP Activities, Step 4.10. Step 1.1: Determine contract requirement. Role: Service Contracts Manager / COR The Service Contracts Manager determines the requirements necessary for the contract based on which category it falls under. These categories include: 1. A request pointing to the creation of a new contract. 2. A request for work/service covered under an existing contract. 3. A request pointing to the modification of an existing contract. 4. A complaint regarding an existing service contract. If the requirement falls under the first category, the Service Contracts Manager determines whether the contract requirement is recurring or non-recurring. If the requirement falls under the second through fourth categories, the COR takes action to either monitor (Process 3.0) or initiate a modification to (Process 3.3) an existing contract. If ‘Non-Recurring’, proceed to Process 1.2 Non-Recurring Contract Requirement. If ‘Recurring’, proceed to Process 1.3 Recurring Contract Requirement. If “Monitor”, proceed to Process 3.0 Contract Management. If “Modify”, proceed to Process 3.3 Support Service Contract Modification. 6|P a ge  Air Force Civil Engineer Service Contracts Playbook Click here to view a larger image. Figure 2: Identify Requirements 7|P a ge  Air Force Civil Engineer Service Contracts Playbook Chapter 3 - 1.2 Non-Recurring Contract Requirement For non-recurring requirements, the quantities are unique and specific to the time at which they are required but otherwise fall under the Service Contract definition. These services involve payment upon completion of the service and should be contracted individually as required. If it is determined that an incoming Service Request should be executed via service contract, Operations Engineering (CEOER) or Customer Service Unit (CSU) sets the Request Classification on the request to “Services” and assigns the Work Task to the appropriate COR who will manage the task. Ops Engineering and the COR then ensure that the Work Task is associated to the correct Service Contract should a Contract Line-Item Number (CLIN) for on demand work exist. Note: A Non-Recurring service contract related requirement requires a Work Task in NexGen IT and can exist on its own, or be associated to an existing service contract. CEOES will capture the cost of on demand work on the Work Task record in NexGen. If associated to a service contract, an Invoice will be created against the applicable Non-Recurring CLIN. ROLES RESPONSIBILITIES Service Contracts Works jointly with Chief of Materiel Control to determine execution agent. Manager Assigns Office of Primary Responsibility (OPR)/COR. Chief of Materiel Works jointly with Service Contracts Manager to determine execution agent. Control Develops draft requirements. Develops draft Independent Government Estimate (IGE) cost. COR Develops draft funding document. Confirms execution agent. Table 2: Non-Recurring Contract Requirement Roles and Responsibilities Narrative Entry from 1.0 Identify Requirements, Step 1.1. Step 1.2.1: Determine non-recurring execution agent Role: Service Contracts Manager, Chief of Materiel Control Service contracts are contracts that directly engage the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply. There are certain instances where Materiel Control will execute service contracts, but the majority will be executed in the CEOES. The Service Contracts Manager and Chief of Materiel Control determine which section will execute the service contract based on the complexity of the requirement. Instances where Materiel Control may manage or execute a service contract include equipment rental and certain services that are available for procurement through Prime Vendor. Examples of non-recurring Service Contracts include: Mold abatement Asbestos abatement Vertical transportation equipment repair Kitchen hood and duct repair Lawn irrigation repair Facility landscape renovation Facility roof repair 8|P a ge  Air Force Civil Engineer Service Contracts Playbook Facility Heating, Ventilating, and Air Conditioning (HVAC) repair Bowling Alley lane resurfacing Gymnasium floor resurfacing Electric Motor rewind Fire extinguisher certification and charging The Service Contracts Manager and Chief of Materiel Control may also determine that the acquisition of a service should be executed in Materiel Control but requires assistance from Service Contracts in developing requirements and IGE. In this case, a combined effort between both Service Contracts and Materiel Control will be utilized. If 'Service Contracts', proceed to Step 1.2.2. If 'Materiel Control', proceed to Materiel Control Chapter 8 Create PO Request. If ‘Combined Effort’, proceed to Step 1.2.3. Step 1.2.2: Assign Office of Primary Responsibility (OPR) Role: Service Contracts Manager The Service Contracts Manager assesses available workforce and assigns an OPR. Proceed to Step 1.2.3. Step 1.2.3: Develop draft requirements Role: COR The COR develops a draft of requirements, most likely in the form of a PWS, however there are situations where a SOW, statement of objective, or statement of need can be utilized. When developing the PWS, market research may need to be conducted per FAR Part 10, Market Research. The extent of market research will vary depending on the requirement’s urgency, estimated dollar value, complexity of work, and past experience in delivering the service via contract. Market research conducted within 18 months prior to award may be used if the information is still current, accurate, and relevant. Please reference Process 2.0, Step 2.3’s Out-of-Scope Process “Complete requirements documentation” for further information. Proceed to Step 1.2.4. Step 1.2.4: Develop draft IGE Role: COR The COR develops a draft IGE for services, which is used as a benchmark by Contracting to evaluate contractor bids. The variance between the contractor bid and the IGE as well as the COR’s technical opinion contribute to the contract award process. Please reference Process 2.0, Step 2.3’s Out-of-Scope Process “Complete IGE” for further information. Proceed to Step 1.2.5. Step 1.2.5: Confirm execution agent Role: COR After completing the draft requirements document and IGE, the COR confirms the execution agent decision made in 1.2.1. If still Materiel Control, the COR forwards the documents to Materiel Control. If the requirement is a service contract, the COR determines whether a Government Purchase Card (GPC) can be used to purchase services to fulfill the work task based on relevant government regulations such as DAFI 64-117, Government Purchase Card Program and FAR 13.301, Governmentwide commercial purchase 9|P a ge  Air Force Civil Engineer Service Contracts Playbook card. Cost is a primary consideration when determining if a GPC can be utilized. The ceiling for GPC acquisition of services is the micro- purchase limit. The current micro-purchase limit for services is $2,500 where the Service Contract Act applies. In certain situations, the limit may be raised to $25,000 per transaction for services which are pre-priced on previously established contracts and agreements. Service acquisitions that exceed the micro-purchase threshold cannot be purchased with a GPC; the local Contracting Organization must be utilized. If the dollar amount exceeds the micro-purchase threshold, the COR must contact Contracting to receive guidance and facilitate the procurement. Guidance on micro-purchase threshold can be found in FAR 2.101, Definitions. If ‘Contracting’, proceed to Step 1.2.6. If ‘Redirect to Materiel Control’, proceed to Materiel Control- GOCESS, Chapter 7 Create PO. If 'Execute via GPC', proceed to Out-of-Scope Process Service Contracts GPC Purchase. Out-of-Scope Process: Service Contracts GPC Purchase Role: COR The COR coordinates with the appropriate GPC cardholder to purchase services with a GPC. The COR must consult with the cardholder, approving official, and/or Contracting Officer if there are questions. Step 1.2.6: Provide funding document information. Role: COR The COR works with the Civil Engineer Financial Manager (CE FM) to complete and submit a Funding Document such as AF Form 9, Request for Purchase or DD Form 448, Military Interdepartmental Purchase Request (MIPR) form to the base Comptroller Squadron (CPTS). The CE FM may create the funding document which establishes a line of accounting for cost visibility and provides the Funding Document Unique Identifier (FDUI). If required by the CE FM, the FDUI will be used on the AF Form 9 or DD Form 448 MIPR that is submitted in Automated Business Services System (ABSS) or Defense Enterprise Accounting and Management System (DEAMS) for approval by the installation Financial Manager (FM) and the Wing Financial Management office. The CE FM will require, at a minimum, a description of the service (PWS/SOW), IGE, and POC information for the COR before submitting the Funding Document in ABSS or DEAMS. Proceed to Out-of-Scope Process Contact CO. Out-of-Scope Process: Contact CO Role: COR The COR contacts the CO to initiate the solicitation process. Proceed to 2.0 Support Solicitation. 10 | P a g e  Air Force Civil Engineer Service Contracts Playbook Click here to view a larger image. Figure 3: Non-Recurring Contract Requirement 11 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 4 - 1.3 Recurring Contract Requirement For recurring service contract requirements, the quantities of work are known and recur according to established timelines, the contractor is paid on a set schedule, and the contract may be awarded annually with option year(s). Most, if not all, recurring service contract requirements at an installation will already be established. CORs will take necessary action, with contracting to exercise option years and award new contracts at the end of the contract life. It is important to note that many of the actions required to exercise an option or award a new contract must be completed months, or even years, in advance of the existing contract’s Period of Performance (PoP) expiration. The exact lead time varies depending on the complexity and dollar amount of the requirement. CORs must work closely with the CO and approval authority to ensure actions are completed on-time. CEOER or the CSU may receive Service Requests that are covered under existing service contracts or receive requests that will generate new contracts. Regardless, if CEOER determines that the request should be executed by CEOES, then the request is evaluated to determine if it will be covered by a recurring service on an existing Service Contract, if an on-demand service tied to an existing service contract must be exercised, or if a new service contract is required. A few examples of recurring service contracts: Big 3 Automatic Door Operation and Maintenance Elevator Certification, Operation and Maintenance Floor Lift Certification, Operation and Maintenance Hoist/Mobile Crane Certification, Operation and Maintenance Grease Trap Cleaning Oil Water Separator Cleaning Chemical Toilet Rental Protective Coatings (Painting) Carpet and Tile Installation Lead Based Paint Abatement Kitchen Exhaust Hood and Duct Cleaning Note: Recurring service contract requirements managed by the CEOES will be captured in NexGen using the Service Contract’s CLIN and Sub-CLINs. The costs associated with this recurring work are captured when an Invoice is created against the Recurring CLIN(s). ROLES RESPONSIBILITIES Service Contracts Appoints new POC/COR, if necessary Manager Reviews Work Task Draft Requirements COR Draft IGE Draft Funding Documents Table 3: Recurring Contract Requirement Roles and Responsibilities Narrative Entry from Process 1.0 Identify Requirements, Step 1.1. 12 | P a g e  Air Force Civil Engineer Service Contracts Playbook Step 1.3.1: Determine recurring contract Role: COR The assigned COR reviews the Service Request in NexGen. A Service Contract-related Service Request falls into one of four basic categories: 1. A complaint regarding an existing contract. 2. A request for work/service covered under an existing contract. 3. A request pointing to the modification of an existing contract. 4. A request pointing to the creation of a new contract or the known need to award a new contract based on the end of the current contract life. The Service Contracts Manager determines if a new COR needs to be nominated/appointed to manage the task and coordinates with the CO in Out-of-Scope Process Identify POC/COR. If ‘Yes’, proceed to Out-of-Scope Process Identify POC/COR. If ‘No’, proceed to Step 1.3.5. Out-of-Scope Process: Identify COR Role: CE Commander/Designee, CO, COR CORs act as a technical liaison between the CO and the contractor. The COR is nominated by the requesting organization and appointed in writing by the CO. To nominate a COR, the requesting organization assembles a package that: Addresses the qualifications of the COR. Affirms that the COR will be afforded necessary resources to perform the designated functions. Affirms that the COR understands the importance of his/her function. Establishes that the nominee’s performance evaluation will address his/her success as a COR. For more information, please refer to the DoD Standard for Certification of COR for Service Acquisitions, the DoD COR Handbook, and contact the local contracting organization. Proceed to Step 1.3.2. Step 1.3.2: Develop draft requirements Role: COR The COR develops a draft of requirements, most likely in the form of a PWS or SOW. Contracted services may require a Requirements Approval Document (RAD) before contracting is authorized to solicit the requirement. RAD approval can be a lengthy process and should be initiated as early as possible, especially if the COR knows it will be required prior to contracting beginning the solicitation process. For additional information concerning the RAD process, see Process 2.0, Step 2.7, Initiate RAD Process. Proceed to Step 1.3.3. Step 1.3.3: Draft IGE Role: COR The nominated COR develops a cost estimate, known as an IGE, using standard estimating tools, his/her industry knowledge, information gathered from interfacing with other functional managers. The CO utilizes the IGE to help determine a fair and reasonable price for sourcing the requirement. The COR should be aware that variances in the Contractors proposal and the IGE will require analysis to ensure there are no disconnects between the needed requirement and the way it is described in the PWS. 13 | P a g e  Air Force Civil Engineer Service Contracts Playbook While CORs can use publicly available rates to baseline the IGE, the COR should not contact individual contractors for quotes. If the COR uses contractor quotes to determine the IGE, the contractor could be disqualified from bidding on the contract. Please reference Process 2.0, Step 2.3’s Out-of-Scope Process “Complete IGE” for further information. Proceed to Step 1.3.6. Step 1.3.6: Provide funding document information Role: COR The COR works with the CE FM to complete and submit a Funding Document such as an AF Form 9, Request for Purchase or DD Form 448, MIPR to the CPTS. The CE FM may create the funding document which establishes a line of accounting for cost visibility and provides the FDUI. If required by the CE FM, the FDUI will be used on the AF Form 9 or DD Form 448 MIPR that is submitted in ABSS or DEAMS for approval by the installation FM and the Wing Financial Management office. The CE FM will require, at a minimum, a description of the service (PWS/SOW), IGE, and POC information for the COR before submitting the Funding Document in ABSS or DEAMS. Proceed to Out-of-Scope Process Contact CO. Out-of-Scope Process: Contact CO. Role: COR The COR contacts the CO to initiate the solicitation process. Proceed to 2.0 Support Solicitation. Click here to view a larger image. Figure 4: Recurring Contract Requirement 14 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 5 - 2.0 Support Solicitation To establish a new service contract, the COR submits a Procurement Document Package which documents the scope and level of service required, secures necessary funding, and supports Contracting through the acquisition process. A typical Procurement Document Package may include a PWS, a RAD (see DAFI 63-138, Acquisition of Services, chapter 3), an IGE, a Funding Document (e.g., AF Form 9, Request for Funds or DD Form 448, MIPR, a sole source justification (if required), market research report, performance schedule, etc. The COR and any other relevant staff will consult with the CO to determine which documents are or are not required. The levels of service (LoS), complexity of work, and cost of the contract drive what procurement documents will be required prior to solicitation as well as the level and intensity of quality assurance that must be performed to survey the contract. Certain Service Contracts, such as the Big 3, have target LoS and standard PWS templates that must be used when developing the Procurement Documents Package. The LoS targets for Grounds Maintenance, Custodial Services, and ISWM are set by Air Force Common Output Level Standards (AFCOLS) and can be found by navigating to the AFCOLS Page. Current PWS templates for the Big 3 can be found by navigating to CE Service Contracting. Additionally, Big 3 cost data must be recorded by creating a record in the Big 3 Sub- AMP SharePoint site. Big 3 cost data must be validated annually, and updated at new contract award, execution of option year, or upon non-administrative modifications to the contract. AFCOLS Page CE Service Contracting Big 3 Sub-AMP SharePoint ROLES RESPONSIBILITIES CO Approves or rejects Service Agreement Package. Approving Authority Approves or rejects Service Agreement Package. Appoints a new COR, if necessary. Service Contracts Reviews Service Agreement Package. Manager Determines if additional approval is needed. Submits package to CO. Obtains AF standard templates, if required. Develops requirements document (SOW or PWS). Completes IGE. COR Completes funding document. Determines if higher approval authority required. Submits Procurement Document Package to Contracting. Table 4: Support Solicitation Roles and Responsibilities Narrative Entry from Process 1.2 Non-Recurring Contract Requirement, Out-of-Scope Process Contact CO. Entry from Process 1.3 Recurring Contract Requirement, Out of Scope Process Contact CO. Entry from Process 2.13 Support Procurement, Step 2.13.8. Entry from Process 3.3 Support Service Contract Modification, Step 3.3.8. 15 | P a g e  Air Force Civil Engineer Service Contracts Playbook Step 2.1: Complete requirements documentation. Role: COR Service contracts primarily utilize a PWS. A PWS is a performance-based document and must follow the requirements of FAR Subpart 37.6, Performance-Based Acquisition. All contracted services are required to be performance-based per FAR 37.102, Policy, with a few exceptions listed at FAR 37.102(a). If any of the exceptions at FAR 37.102(a) apply, a SOW may be used. The nominated COR writes the PWS or SOW, whichever is applicable. Per FAR Subpart 37.6, a PWS describes the work in terms of the required results rather than either “how” the work is to be accomplished or the number of hours to be provided (see FAR 11.002(a)(2), Policy and FAR 11.101, Order of Precedence for Requirements Documents). The PWS uses measurable performance standards and incentives in a competitive environment to encourage innovative and cost-effective methods of performing the work. DAFI 63-138 also provides additional detail on developing requirements documentation for the acquisition of services. To prepare the documentation, the COR meets with appropriate base personnel (e.g., Shop Craftsmen, Fire Department, Environmental, Engineers) to gather specifications, including estimated contractor rates, schedule, and permits needed for the work. The COR inquires about materials the contractor must use, which may impact the contract cost. The COR and the CO determine the appropriate surveillance for a contract (as in a Quality Assurance Surveillance Plan (QASP)) and describe it in the Procurement Document Package. Another key element of the Procurement Document Package is the establishment of CLINs, which provide a specific level of detail about the components of the work (e.g., tasks) and the specific customer(s) receiving service. Big 3 Service Contracts require utilization of a standardized CLIN structure which can be found at the CE Service Contracting site. The COR ensures that the PWS or SOW is as specific as possible with minimum of ambiguity, anticipating and answering any questions a contractor may have about the contract solicitation. This can minimize the number of contractor questions received that the CO and COR will need to manage during acquisition. Additionally, the COR uses existing or historical contract files to provide a solid reference / basis for scope and level of service. The COR leverages his / her network at the base, MAJCOM, and Air Force Civil Engineer Center (AFCEC) levels to obtain this information. Proceed to Out-of-Scope Process Complete IGE, and Out-of-Scope Process Complete Funding Document. Out of Scope Process: Complete IGE Role: COR The nominated COR develops a cost estimate for services, known as an IGE. Contracting evaluates contractor bids against the IGE as a benchmark to determine how the IGE compares to market rates (the proposals) for the requested work. The variance between the contractor bid and the IGE as well as the COR’s technical opinion contribute to the contract award selection process. The IGE is a sensitive document and therefore must be safeguarded to prevent potential contractors from using the estimate as a baseline for their cost/price proposals. The IGE must accurately reflect the service to be purchased. The level of detail found in the IGE depends on the nature of services requested as well as the existence of any mandated PWS or CLIN structures, such as with the Big 3 Service Contracts. A complete IGE is a breakdown of three cost elements: direct costs (direct labor, direct material, other direct costs), indirect costs (general & administrative expenses, overhead,), and profit. If necessary, the CO can recommend a format for the IGE, and the COR consults with the CO to determine if the IGE is fair and reasonable. While CORs can use publicly available rates to baseline the IGE, the COR should not contact individual contractors for quotes. If the COR uses contractor estimates to determine the IGE, the contractor 16 | P a g e  Air Force Civil Engineer Service Contracts Playbook could be disqualified from bidding on the contract. Weighted Guidelines may be used to establish a profit rate using four factors: 1. Performance risk (technical and management/cost control) 2. Contract type risk 3. Facilities capital employed 4. Cost efficiency (Defense Federal Acquisition Regulation Supplement (DFARS) 215.404-71, General). The CO can dictate escalation rates. Inflation rates can be included in the IGE. After an award of a contract, if there are significant changes that may affect an option year, the COR may be required to update the IGE for the affected options. Contact CO for IGE guidance The type of contract or service determines the format for the IGE. The COR should coordinate with Contracting as well as the CE FM to make sure the IGE is created in accordance with what information will be needed to secure the appropriate funding. All detailed information down to the Contractor Line-Item CLIN should be included in the IGE. Conduct internal market research To estimate the value for each CLIN, the nominated COR may contact the appropriate engineering sections (e.g., the engineering craftsman shop, fire department) to estimate the number of man-hours needed for a service to determine the market rate. The COR should also contact its counterparts at other AF bases to see what they may have available for similar contracts. Collaborating with peers at other bases prevents the need to request price information from potential contractors in the market before the contract is solicited for bid. After estimating the number of man hours, reference the Service Contract Act. The nominated COR must conduct internal market research to develop the IGE. Researching external websites to gather labor estimates is encouraged. A Department of Labor (DoL) Wage Determination (WD) determines minimum wages and fringe benefits for service employees and may be used for the labor cost estimate. If there is a predecessor contract, which has a collective bargaining agreement, the direct labor calculations will be based on that agreement. The DOL will incorporate the collective bargaining agreement into their wage determination. The DoL WD lists labor rates for specific labor categories and the list can be obtained from the contracting office or through the web site. Labor burden information, which consists of Federal Insurance Contributions Act (FICA), can be obtained from the contracting office or the contracting office may add labor burden to the labor rates identified. Another resource the COR can access is SAM.gov, a government website that provides man-hour estimates and market data for services, as well as the System for Award Management (SAM). Other Direct Costs (ODC) and indirect costs can be estimated by researching past contracts of like services or doing a market survey of local companies who provide like services. The Service Contract Act Directory of Occupations can be used to compare job definitions to the WD list in the absence of a known labor category. For the labor categories that are not identified in the WD, contact the DoD Civilian Personnel Division for the Government employee classification and wage rate. DoL Wage and Hour Division Wage Determinations 17 | P a g e  Air Force Civil Engineer Service Contracts Playbook Create IGE An output from the IGE is a bid schedule. The bid schedule is a list of primary tasks identified from the PWS or SOW, the quantity required, and the price of each. The schedule aggregates the total monthly and annual price for services over the length of the contract term. It is a version of the IGE with the COR estimated pricing absent. It functions as the bid sheet where the contractor enters its proposed pricing for each CLIN. Contracting and the nominated COR analyze the variance between the IGE and actual bids and compare the IGE against the contractor bids for price reasonableness. The bid schedule is in ‘Section B’ of the contract. Contractors will enter their prices for each task line item when they submit. Proceed to Step 2.2. Out of Scope Process: Complete Funding Document Role: COR, CE FM, CPTS In addition to the PWS or SOW and IGE, the COR confirms the financial budget has sufficient funds to accommodate the anticipated service cost. The COR accomplishes this by working with the CE FM to complete and submit a Funding Document (AF Form 9) to the base CPTS. Prior to fiscal year (FY) end, the contracting organization typically establishes deadlines for when the funding document must be received to award the contract before the end of the FY. Funding must be available to cover the basic contract period of a contract. An AF Form 9 is funded by annual appropriations, and the contract it funds cannot cross FYs unless authorized by law or the service cannot be segregated for separate performance in each FY. An Indefinite quantity or requirements type contract may extend beyond the FY in which it begins because these types of contracts are executed at the task order level. Each task order is funded individually instead of allocating funding to the contract itself. If a contract has an award fee feature, funds must be available to cover the first award fee period, and in some cases, the fee must be funded up- front at time of award. Before proceeding with solicitation, it is always preferable to have a funded AF Form 9. However, a CO may initiate a contracting action with a "planning" AF Form 9, otherwise known as funds assurance, provided the AF Form 9 contains a statement from the Budget Office that the funds will be available. With a “planning” AF Form 9, a Request for Proposal (RFP) can be sent out to potential contractors. A contract may be completed to the point of the CO’s signature, but it may not be signed or approved before funds are available. Similarly, the contractor will not be notified of the award until funds are certified. A "planning" AF Form 9 is most often used when the contract will not be signed, or performance will not begin until the next FY. This authority for a “planning” AF Form 9 may be used only for O&M and continuing services necessary for normal operations and for which Congress previously had consistently appropriated funds unless specific statutory authority exists. Service contracts are funded via O&M accounts. In order to use O&M funds, agencies forecast their monthly, quarterly, and year-to-year requirements. Unlike construction or build contracts (construction contract), service contracts do not use Authority to Advertise (ATA) or straddle bids. The COR prepares a summary of all contract-related documentation and submits it to the CE FM. The CE FM reviews the submitted documentation and ensures that the COR has provided all information necessary to complete the AF Form 9 (or other funding document). If any additional information is needed, the CE FM coordinates with the COR to obtain it. 18 | P a g e  Air Force Civil Engineer Service Contracts Playbook Using the available documentation (e.g., the IGE and the PWS/SOW), the COR and CE FM complete the AF Form 9 in the ABSS or DEAMS. The COR and CE FM ensure the line items on the AF Form 9 match the CLIN structure and invoice frequency. The COR and CE FM also ensure that the Form 9 properly accounts for reimbursable and direct fund cited customers. The CE FM creates the NexGen IT funding document which establishes a line of accounting for cost visibility and provides the FDUI which will be used on the AF Form 9 or DD Form 448 MIPR submitted in DEAMS or ABSS. The CPTS reviews the AF Form 9 for accuracy and completeness. If any changes are required, such as an update to a unit of measure (each, hours, lots), the COR must resubmit. If the AF Form 9 is accurate and the required funds are available, the CPTS certifies the funds, which provides the CO legal authority to expend the funds. Proceed to Step 2.2. Step 2.2: Submit Service Agreement Package for review Role: COR The COR compiles necessary documentation, such as the PWS, IGE, and funding document, as part of a Service Agreement Package and submits it to the Service Contracts Manager. Proceed to Step 2.3. Step 2.3: Review service contract package Role: Service Contracts Manager The Service Contracts Manager reviews the Service Agreement Package. He or she examines all submitted documentation and ensures the COR has provided all relevant information and presented it in a manner such that the CO can source the requirement through the most effective contract vehicle. Proceed to Step 2.4. Step 2.4: Determine if changes necessary Role: Service Contracts Manager The Service Contracts Manager may determine that some updates or changes to the Service Agreement Package are necessary. If so, he or she routes the package back to the COR. If ‘No changes’, proceed to Step 2.6. If ‘Changes necessary’, proceed to Step 2.5. Step 2.5: Address issues and resubmit package Role: COR The COR may receive the package back for corrections/changes during any of the approval flows. If so, the COR incorporates the feedback and resubmits it through the approval flow again (starting with the Service Contracts Manager). Proceed to Step 2.4. Step 2.6: Determine if additional approval is necessary Role: Service Contracts Manager Once any of the feedback has been incorporated and the package is ready to proceed, the Service Contracts Manager determines if an additional Approval Authority is required depending on the dollar threshold, as stated in DAFI 63-138, or if the service requirement exceeds the AFCOLS. Based on these and other factors such as the type of service required, the scope of the proposed contract, and the amount of funding 19 | P a g e  Air Force Civil Engineer Service Contracts Playbook required, the Service Contracts Manager determines whether approval from the Approving Authority is required. If so, the Service Contracts Manager must coordinate with the Approving Authority before the package proceeds to Base Contracting. If ‘Additional approval’, proceed to Step 2.7. If ‘No additional approval’, proceed to Step 2.10. Step 2.7: Initiate RAD process Role: COR AF service contract requirements with a total anticipated contract value greater than or equal to the simplified acquisition threshold must receive requirement approval. RAD approval can be a lengthy process depending on the approval level required, so it is in the best interest of the COR to begin the process as early as possible so that the contracting process and acquisition of the service is not delayed. DAFI 63-138 provides further information regarding the requirement approval process. Proceed to Step 2.8. Step 2.8: Determine if the requirement is valid Role: Approving Authority The Approving Authority reviews the package and determines whether it is valid based on the requirements. The Approving Authority considers all factors relevant to his/her position, whether it be the type of service required, the scope of the proposed contract, and/or the amount of funding required. The Approving Authority may require the COR to make changes and resubmit the package through the approval chain. If the package is not valid, then the Approving Authority may elect to deny approval to contract the service. If ‘Valid’, proceed to Step 2.9. If ‘Not valid’, End. Step 2.9: Determine if changes are necessary Role: Approving Authority The Approving Authority determines if changes are necessary and sends the package back for all issues to be addressed (e.g., exceeding authorized scope). If no changes are needed, then the Approving Authority approves the package. If ‘Changes necessary’, proceed to Step 2.4. If ‘Changes not necessary’, proceed to Step 2.10. Step 2.10: Develop Acquisition Strategy Role: CO, COR The Multi-functional Team (MFT) is responsible for developing the acquisition strategy. The major points of their strategy can include determining the most appropriate contract type, contract length, selection criteria, evaluation factors, necessary planning documents, and receiving appropriate approvals. Beyond creating the PWS/SOW, IGE, and draft funding document, the COR must be prepared to help the CO identify who in the industry could potentially fulfill the requirement and if the requirement could be met by a small business. Additionally, historical, or current information concerning contract lifecycle cost, re- procurement cost, quantity discounts, and the overall complexity of procurement should be provided to the CO to assist in developing the acquisition strategy. Proactive COR involvement will assist the CO in awarding to the qualified contractor who is most advantageous to the government. Details relating to developing the acquisition strategy can be found in FAR Part 7, Acquisition Planning as well as DAFI 63-138. 20 | P a g e  Air Force Civil Engineer Service Contracts Playbook Proceed to Step 2.11. Step 2.11: Submit service contract package to CO Role: Service Contracts Manager, COR Once the Service Contracts Manager and/or COR has secured all pre-Contracting approvals, the Service Contracts Managers and/or COR submits the package to the CO. The Service Contracts Manager and/or COR ensures that the CO receives all applicable forms and documents in the Procurement Document Package. Proceed to Step 2.12. Step 2.12: Determine if ready for solicitation Role: CO The CO reviews the entire Procurement Document Package. If the CO finds any issues, the COR makes the appropriate updates and resubmits the package through the approval flow. For minor issues, the CO may not reject the Procurement Document Package but instead allow the COR to fix the issues prior to issuing the RFP. If ‘Yes’, proceed to Process 2.13 Support Procurement. If ‘No’, proceed to Step 2.6. Process 2.13: Support Procurement Role: CO, COR During this process, the CO opens the Service Contract for solicitation and evaluates the proposals. The CO negotiates with bidders, updates any funding requirements, and ultimately selects a proposal and awards the contract. The assigned COR then initiates/updates the Service Agreement Form and Reimbursable Agreements in NexGen with the appropriate information, such as CLINs or Sub-CLINs. More information on this process is available in the separate map and narrative. Proceed to Process 3.0 Contract Management. Click here to view a larger image. Figure 5: Support Selection 21 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 6 - 2.13 Support Procurement During this process, the CO opens the Service Contract for solicitation and evaluates the proposals. The CO negotiates with potential service provider and ultimately selects a proposal and awards the contract. The assigned COR then initiates/updates the Service Agreement Form in NexGen with the appropriate information, such as CLINS and Sub-CLINS. The COR may or may not participate in all the following steps. The level of support provided by the COR to the CO can vary depending on the LoS, complexity, estimated dollar amount of the service requirement, or needs of the CO. It is imperative that the COR determine the expected level of support that the CO will require during the procurement process and be prepared to execute the support in a timely fashion. This narrative describes the basic framework by which the COR supports the CO during the procurement process. ROLES RESPONSIBILITIES Determines if site visits are required. Conducts site visit(s) with user(s), inspector(s), contractor(s). CO Receives proposals from contractors and forward to COR. Evaluates proposals. Provides award information to COR and contractor. Determines if site visits are required. Conducts site visit(s) with user(s), inspector(s), contractor(s). Evaluates proposals. COR Validates authorized amount against negotiated amount. Enters Service Contract data into NexGen IT. Distributes work schedule and requirements to stakeholders. Table 5: Support Procurement Roles and Responsibilities Narrative Entry from Process 2.0 Support Solicitation, Step 2.12. Out-of-Scope Process: Issue Solicitation Role: Functional Commander (FC) The CO issues the solicitation. This will likely occur by electronic means in the form of a RFP, Invitation for Bid (IFB), or Request for Quote. Proceed to Step 2.13.1. Step 2.13.1: Conduct Procurement Support Activities Role: CO, COR After the solicitation has been issued, a site visit may be coordinated with interested service providers if the MFT determines one is necessary during acquisition planning. The CO is responsible for making the final determination on whether a site visit is required, but certain contract types require site visits. The purpose of a site visit is to allow the contractors to inspect the work area where services are to be performed and to satisfy themselves regarding all general and local conditions that may affect the cost of contract performance. The site visit is an opportunity for the contractor(s) to ask additional questions about the scope of the service to be provided. If a site visit is necessary, the nominated COR and CO organize a site visit to survey the work area. Potential Government attendees can include CE functional/technical representation and external agencies (e.g., security forces, medical, host nation representatives, and environmental agencies). 22 | P a g e  Air Force Civil Engineer Service Contracts Playbook Contracting must allow at least a 30-day response time (less for FAR Part 12, Acquisition of Commercial Products and Commercial Services) for receipt of bids or proposals from the date the solicitation is issued. Proceed to Step 2.13.2. Step 2.13.2: Evaluate Proposals Role: CO, COR The CO will always request some form of technical evaluation of the proposal. Complex requirements may require a formal technical evaluation as described in FAR 15.404, Proposal Analysis. In the event that a formal technical evaluation will be required, the COR (or appropriate functional expert) must ensure that they are available to provide all necessary support within the timeframe dictated by the CO. Additionally, the COR (or appropriate functional expert) must be available to support the CO in facilitating question and answer sessions or providing responses to RFIs during the solicitation process. For contracts solicited via sealed bidding, bids are evaluated without discussion by Contracting. After the bids are publicly opened and recorded, an award is made to the responsible bidder whose bid conforms to the solicitation requirements and is most advantageous to the government. Total price and/or price related factors are the only evaluation criteria used to determine contract award. The nominated COR should be aware that they won’t normally see proposal pricing before contract award. If a sealed bid process is not used, the COR and CO follow a best value source selection process, as described in the following: FAR Subpart 15.1, Source Selection Processes and Techniques DFARS 215.300, Scope of Subpart Department of Air Force Federal Acquisition Regulation Supplement (DAFFARS) 5315.300, Simplified Acquisition Procedures Source Selection Procedures, August 20, 2022 The COR provides input into who should be awarded the contract; the CO makes the final decision. Proceed to Out-of-Scope Process Select Proposal. Out-of-Scope Process: Select Proposal Role: CO The CO and the Source Selection Evaluation Team (SSET), if utilized, reviews and evaluates the proposals before making their selection. The COR participates in the review as a technical advisor. Once the proposal(s) is/are selected, they will review the authorized amount and the negotiated amounts to be further validated by the CO and SSET. The nominated COR must validate that the negotiated amount of the contract does not exceed the amount authorized on the certified funding document. Proceed to Step 2.13.3. Step 2.13.3: Determine whether funds exceed authorized amount Role: CO, COR If the negotiated amount exceeds the authorized amount, the nominated COR must initiate the paperwork required to obtain authority to exceed the previously authorized amount and to update the certified funding document. If ‘Exceeds funding’, proceed to Step 2.13.4. 23 | P a g e  Air Force Civil Engineer Service Contracts Playbook If ‘Does not exceed funding’, proceed to Out-of-Scope Process Award Contract or task order. Step 2.13.4: Determine whether renegotiation is needed. Role: CO If the amount exceeds the approved amount on the funding document, the CO determines whether to open discussions with the contractor, make in-scope deductive changes, renegotiate, or advise the requesting organization to seek additional funding. If ‘Renegotiation needed’, proceed to Step 2.13.5. If ‘Additional funding not available / renegotiation unsuccessful’, proceed to Process 1.0 Identify Requirements. If ‘Additional funding’, proceed to Process 2.0 Support Solicitation. Step 2.13.5: Renegotiate proposed amount and request new proposal or modify PWS / SOW Role: CO If the CO wants to renegotiate the proposed amount, he or she requests a new proposal and/or modification to the PWS/SOW; the proposal follows the previous evaluation process. Proceed to Step 2.13.2. Out-of-Scope Process: Award Contract or Task Order Role: CO Once the proposed or negotiated price is less than the amount certified on the funding document, the CO awards the contract or task order. Proceed to Step 2.13.6. Step 2.13.6: Provide award information to COR and Contractor Role: CO After the contract or task order has been awarded, the CO provides the award information to the appointed COR and winning contractor. Proceed to Step 2.13.7. Step 2.13.7: Enter service contract data and build CLINs in Service Agreement form in NexGen IT Role: COR The COR enters the award information data into the Service Agreement in NexGen IT and builds CLINs, ensuring that the CLINs match the PWS/SOW. The COR must ensure that Sub-CLINS properly allocate fair share portions of contracted service to the appropriate location. Additionally, the total contract award amount must be inputted in the Current Approved Amount field of the Cost Summary section in NexGen IT. CLINs input into the Service Agreement within NexGen IT can be done so using a manual naming convention. CORs must input the CLINs such that they match the alpha-numeric numbering found in the actual contract. Proceed to Step 2.13.8. Step 2.13.8: Enter CLINs in the Reimbursable Agreement Role: COR the COR has entered the CLINs in the Service Agreement, he or she must work with a CE FM to enter any Reimbursable CLINs in the Customer Reimbursable Agreement. 24 | P a g e  Air Force Civil Engineer Service Contracts Playbook Proceed to Step 2.13.9 and Cost Accounting for the CE Financial Manager Playbook Process 3.4 Service Contract Reimbursable Agreement. Step 2.13.9: Upload contract documents into NexGen IT Role: COR The COR uploads all contract documents, such as the signed contract, final PWS, and QASP details (e.g., supporting documentation for NexGen IT objects) in the ‘Notes and Documents’ tab. Proceed to Step 2.13.10. Step 2.13.10: Issue Service Contract Role: COR The COR ‘issues’ the Service Contract in NexGen IT. The COR also notifies the Service Contracts Manager in NexGen IT of the Service Contract in the system. Note: Current NexGen IT configuration requires the Service Contracts Manager to approve the Service Contract. The Service Contracts Manager may reject and resend the Service Contract back to the COR for rework in the event of CLINs or an invoice being captured incorrectly. Proceed to Step 2.13.11. Step 2.13.11: Distribute work schedule and requirements to stakeholders Role: COR The contractor’s work schedule and contract requirements are distributed to stakeholders, including the facility manager(s) receiving the service. This generally occurs no later than the post-award conference. Proceed to Process 3.0 Contract Management. Click here to view a larger image. Figure 6: Support Procurement 25 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 7 - 3.0 Contract Management During the life of a contract, the COR’s primary responsibilities are to monitor and document the contractor’s performance against the terms and conditions of the contract, comply with reporting requirements, and validate contractor-submitted invoices. All documentation generated to manage the contract should be uploaded into the ‘Notes and Documents’ tab in NexGen IT. ROLES RESPONSIBILITIES CO Determines appropriate action to resolve issues with contractor performance. Conducts surveillance as required. Documents contractor surveillance results. COR Completes monthly and yearly reports. Validates invoice. Table 6: Contract Management Roles and Responsibilities Narrative Entry from Process 1.0 Identify Requirements, Step 1.1. Entry from Process 2.13 Support Procurement Process. Entry from Process 3.3 Support Service Contract Modification, Step 3.3.11 or Step 3.3.13. Step 3.1: Support mobilization process Role: CO, COR The CO and the COR conduct several tasks at the start of the contract (e.g., facilitating access to base and government equipment, holding coordination sessions between all contract parties). These transition activities are done to prepare the contractor to begin executing contract requirements. Proceed to Process 3.2 Conduct Surveillance, Process 3.3 Support Service Contract Modification, and Step 3.4. Process 3.2: Conduct Surveillance Role: COR During the PoP, the COR monitors the contractor’s execution. This process has been further defined in a separate narrative document. For additional information, please refer to the supporting narrative for Process 3.2 Conduct Surveillance. Proceed to Process 3.5 Create Monthly Report. Process 3.3: Support Service Contracts Modification Role: COR At some point during the term of the service contract, the government or the contractor may determine that there is a need to adjust the contract. The COR is responsible for preparing portions of the modification package, with input from the CO. The modification package can be as simple as a Modification Request Letter and as complex as a new Procurement Document Package if the modification is out-of- scope. FAR Part 43, Contract Modifications, defines two types of contract modifications. The first is a bilateral modification, which requires the contractor to concur with the change. Bilateral modifications affect cost, schedule, scope, or quality. The second type of modification is a unilateral modification, which does not change the cost, scope, or PoP and are administrative in nature. For additional information and full details on this process are available in the separate map and narrative. 26 | P a g e  Air Force Civil Engineer Service Contracts Playbook Proceed to Process 3.5 Create Monthly Report. Step 3.4: Associate On Demand Work Tasks to Service Agreement in NexGen IT Role: Operations Engineering, COR If an on demand CLIN tied to a recurring service contract is exercised it will be tracked in NexGen IT by a Work Task. When CEOER creates (or receives) the Work Task, they must associate it to the appropriate Service Agreement in NexGen IT. The COR is then notified of the Service Agreement and confirms in the system. Proceed to Process 3.5 Create Monthly Report. Process 3.5: Create Monthly Report Role: COR This process has been further defined in a separate narrative document. For additional information, please refer to the separate map and narrative for Chapter 10 - Process 3.5 Create Monthly Report. Proceed to Step 3.6. Step 3.6: Determine if all performance requirements were met Role: COR The COR reviews all appropriate documentation to assess whether the contractor has performed according to the requirements of the contract. If a QASP is in place, this document details the established requirements for monitoring and performance. The COR routinely assesses contractor’s performance and documents appropriate actions/discrepancies, which are compiled when creating the monthly report. As he or she trends and documents the contractor’s performance over time, the COR may determine a need to involve the CO for formal action. If the COR believes the contractor’s noncompliance/nonperformance warrants corrective action of the contract, he or she coordinates with the CO to determine the appropriate action. If ‘Requirements met’, proceed to Process 3.8 Validate Invoice. If ‘Requirements not met’, proceed to Out-of-Scope Process CO Determines Appropriate Action. Out-of-Scope Process: CO Determines Appropriate Action Role: CO Based on all the documentation and any recommendations provided by the COR, the CO determines appropriate action. The CO may choose from a variety of options ranging from a formal letter, a reduction in payment, a modification of the contract, or the early termination of the contract. Proceed to Step 3.6. Step 3.7: Determine whether to continue or terminate contract Role: CO In general, the appropriate action the CO chooses falls into one of two categories: to continue the contract (with an appropriate action such as a payment reduction) or to terminate the contract. If ‘Terminate’, proceed to Process 4.0 Perform End of PoP Activities. If ‘Continue’, proceed to Process 3.8 Validate Invoice. 27 | P a g e  Air Force Civil Engineer Service Contracts Playbook Process 3.8: Validate Invoice Role: COR If there are no issues with performance/compliance or the CO elects to continue the contract, the COR validates the invoice. This process has been further defined in a separate narrative document. For additional information, please refer to the separate map and narrative for Process 3.8 Validate Invoice. Proceed to Step 3.9. Step 3.9: Determine if PoP has expired Role: COR If the PoP has expired, the COR participates in contract close-out in Process 4.0. If the PoP has not expired, the COR continues surveillance and reporting. If ‘Expired’, proceed to Process 4.0 Perform End of PoP Activities. If ‘Active’, proceed to Process 3.2 Conduct Surveillance. Click here to view a larger image. Figure 7: Contract Management 28 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 8 - 3.2 Conduct Surveillance The type of surveillance conducted by the appointed COR varies by contract type. There are four main types of surveillance: 1. Periodic Performance 2. Customer Complaint 3. 100% Surveillance 4. Random sampling The level of surveillance is dependent upon the criticality of the service, the resources available to accomplish the surveillance, type of contract, complexity, scope, and knowledge of the contractor’s past and current performance. For all purchases made by GPC, the COR will provide 100% surveillance. Results of surveillance are used to validate and accept the contractor’s overall performance. Any service request with a dollar value above the Simplified Acquisition Threshold (SAT) requires a COR to be assigned and inspections to be performed (DAFFARS 5346.103, Contracting Office Responsibilities). For work below the SAT, a COR is not required. Instead, the government usually relies on the contractor to conduct inspections and testing to ensure services conform to quality requirements. The CO can choose to assign a COR, depending on the criticality of the service and the cost of having a detailed government inspection (FAR 46.202-2, Government Reliance on Inspection by Contractor and FAR 46.404, Government Contract Quality Assurance for Acquisitions at or Below the Simplified Acquisition Threshold). Certain contracts require that the CO hold quarterly progress meetings to determine contractor performance. During this quarterly meeting, the CO and COR review performance trends to evaluate the contractor. If a contractor has been performing well over time, the CO has the discretion to cancel the quarterly progress meeting. ROLES RESPONSIBILITIES Receives discrepancy as documented in Performance Assessment Report CO (PAR) from the COR Receives notification of resolved discrepancy Conducts surveillance as required based on QASP Documents Contractor surveillance results on PAR Determines if there is an issue Validates the discrepancy in PAR and uploads report Notifies the FC and CO of a discrepancy Determines if discrepancy is resolved COR Annotates resolution, closes PAR, and updates Service Contract record Notifies FC and CO of resolved discrepancy Reviews and validates customer complaint Updates Service Contract Record in NexGen IT or in local system Documents complaint on PAR Completes Corrective Action Report (CAR) / Contract Discrepancy Report (CDR) and contacts CO Table 7: Conduct Surveillance Roles and Responsibilities Narrative Entry from Process 3.0 Contract Management, Step 3.1, and Step 3.9. 29 | P a g e  Air Force Civil Engineer Service Contracts Playbook Step 3.2.1: Conduct surveillance as required Role: COR The COR is responsible for monitoring the contractor’s Quality Control (QC) program, which the contractor is responsible for implementing and maintaining. The QC plan is provided in the contractor’s proposal. In addition to monitoring the QC program, the COR conducts periodic inspections. The periodic inspections occur at a frequency (daily, weekly, monthly, quarterly, etc.) determined by the surveillance plan to ensure that the contractors are adhering to the requirements of the PWS/SOW. Periodic inspections can include site visits to verify progress on site, telephone calls with on-site representatives, or review of the contractor reports and other deliverable documents. The surveillance plan can be updated as needed to reflect contractor performance and increase or decrease inspection frequency. Proceed to Step 3.2.2. Step 3.2.2: Determine if there is an issue through surveillance Role: COR The COR also conducts targeted surveillance if the customer has filed a complaint about the contractor’s performance. The COR determines if the complaint is valid or a misunderstanding/miscommunication. If the COR discovers an issue with the contractor’s performance, he or she takes steps to validate and resolve the discrepancy. If ‘Issue’, proceed to Step 3.2.4. If ‘No issue’, proceed to Step 3.2.3. Step 3.2.3: Update Service Contract Role: COR If the complaint is invalid, the COR will update the Service Contract Record to reflect their determination. Proceed to Process 3.5 Create Monthly Report. Step 3.2.4: Validate the discrepancy or compliant and document in PAR Role: COR The COR coordinates with the customer to gather more information and ensure that the discrepancy is valid. The COR also documents the discrepancy in the PAR. Proceed to Step 3.2.5. Step 3.2.5: Notify the CO of a discrepancy Role: COR To ensure the CO stays aware of the contractor’s performance, the COR notifies the CO of the discrepancy. Proceed to Step 3.2.6. Step 3.2.6: Notify Contractor of discrepancy Role: CO The CO is responsible for notifying the contractor of the discrepancy and advising on the corrective action required. Proceed to Out-of-Scope Process, Contractor Responds to Complaint within Fixed Timeframe. 30 | P a g e  Air Force Civil Engineer Service Contracts Playbook Out-of-Scope Process: Contractor Responds to Complaint within Fixed Timeframe Role: COR The contractor responds to the identified complaint/discrepancy within the time period specified by the CO. Proceed to Step 3.2.7. Step 3.2.7: Determine whether discrepancy is resolved Role: COR The COR determines if the discrepancy has been resolved. If ‘Resolved’, proceed to Step 3.2.9. If ‘Not resolved’, proceed to Step 3.2.8. Step 3.2.8: Complete CAR and contact CO Role: COR If the contractor has not resolved the discrepancy, the COR completes a CAR and notifies the CO. Proceed to Step 3.2.7. Step 3.2.9: Annotate resolution, close PAR, and update Service Contract Record Role: COR If the COR achieves a resolution with the contractor, the COR annotates the resolution, closes the PAR, and updates the Service Contract Record. Proceed to Step 3.2.10. Step 3.2.10: Notify CO of resolved discrepancy Role: COR The COR notifies the CO of the resolved discrepancy. Proceed to Process 3.5 Create Monthly Report. Click here to view a larger image. Figure 8: Conduct Surveillance 31 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 9 - 3.3 Support Service Contract Modification At some point during the term of the service contract, the government or the contractor may determine that there is a need to adjust the contract. For example, the CSU within the CEOE may receive a service request from a Customer for custodial services on a facility, and the CSU may determine that the facility should be added to an existing custodial agreement. The COR is responsible for preparing the modification package, with input from the CO. The modification package can be as simple as a Modification Request Letter and as complex as a new Procurement Document Package. FAR Part 43 defines two types of contract modifications. The first is a bilateral modification, which requires the contractor to concur with the change. Bilateral modifications affect cost, schedule, scope, or quality. The second type of modification is a unilateral modification, which does not change the cost, scope, or PoP and are administrative in nature. ROLES RESPONSIBILITIES Reviews modification request memo and IGE. Determines if requested modification is within the scope of original contract. CO Obtains modification proposal from Contractor. Approves or rejects contract change. Awards contract modification or communicates disapproval. Identifies and validates contract modification request. Completes IGE. Creates and submits modification request memo. Evaluates contract change proposal. COR Determines if additional funding is required. Validates authorized amount against current funded amount. Initiates documentation to secure necessary funding. Adjusts Service Contract Record. Determines whether to modify contract modification request. Table 8: Support Service Contract Modification Roles and Responsibilities Narrative Entry from Process 1.0 Identify Requirements, Step 1.1. Entry from Process 3.0 Contract Management, Step 3.1. Out-of-Scope Process: Contract Modification Request Received Role: COR The government or the contractor can initiate a written memorandum requesting a service contract modification at any time during the term of the contract. The contract change request should always be in writing to provide an audit trail. Supporting documentation will vary depending on the type of contract and what is being modified. Proceed to Step 3.3.2. Step 3.3.1: Identify/validate service contract modification Role: CO, COR Contract change requests must include justification and be validated by the COR. Customers can recommend that changes be made to a contract (e.g., provide an additional dumpster, mow a newly planted lawn, add a new building to the contract, etc.), but the COR initiates the contract change request with the CO. 32 | P a g e  Air Force Civil Engineer Service Contracts Playbook The contracting parties may not change the terms of a contract if it interferes with the competitive process. Modifications that significantly change the contract prices, time requirements, or add additional work requirements relative to the requirements specified in the original contract are considered out-of-scope, will not be completed by modification, and may generate a new contract. Proceed to Step 3.3.2. Proceed to Out-of-Scope Process Complete IGE. Proceed to Out-of-Scope Process Complete Funding Document. Step 3.3.2: Adjust requirements documentation Role: COR The COR adjusts requirements documentation to reflect the scope of the contract modification. Proceed to Step 3.3.3. Out-of-Scope Process: Complete IGE Role: COR To begin the IGE process, the COR must first contact the CO to determine if an IGE is needed. IGE development for contract modifications will follow the same process as the Out-of-Scope – Complete IGE process in 2.0, however the focus will be on the cost associated with the modification to original scope. Proceed to Step 3.3.3. Out-of-Scope Process: Complete Funding Document Role: COR The COR is also responsible for coordinating the proper funding document. The COR begins this process by submitting the modification requirement documentation to the CE FM. The CE FM and COR will then assess whether or not the documentation is sufficient. If the documentation is not sufficient, the COR will incorporate necessary updates into the summary, and resubmit to the CE FM. If the documentation is sufficient, the COR and CE FM will use the documentation to create an AF Form 9, Request for Funds or DD Form 448 MIPR form and submit it through submitted in ABSS or DEAMS. CPTS will certify the AF Form 9 or DD Form 448, MIPR if funds are available. If they are not the process will be placed on hold until funds are available, or the action will be terminated if it is determined that the modification will not be funded. Additional guidance is provided in the Out-of-Scope – Complete Funding Document found in process 2.0. Proceed to Step 3.3.3. Step 3.3.3: Create modification request memo and submit to CO Role: COR The appointed COR will generate a modification request memo, stating exactly what needs to be modified within the contract. The letter includes the as-is and the to-be states. The COR will identify and list any changes in contract execution, such as changes in how work will be performed or how the COR will survey the contractor, which will occur because of the potential service contract modification. There is currently no standard form in use; the memo is provided on letterhead and is directed to the contracting office. The COR must determine if the modification deviates from standards mandated by the AF or the CE community, such as AF COLS target LoS for the Big 3 Service Contract. Proceed to Step 3.3.4. 33 | P a g e  Air Force Civil Engineer Service Contracts Playbook Step 3.3.4: Determine if request is out of scope Role: CO The CO reviews the modification request memo and IGE provided by the COR and determines whether it is out-of- scope; if so, the request may require award under a new contract. If ‘Out-of-Scope’, proceed to Process 1.0 Identify Requirements. If ‘No’, proceed to Step 3.3.5. Step 3.3.5: Begin negotiations with contractor Role: CO The CO begins negotiations with the contractor to implement the proposed contract modification. Proceed to Step 3.3.6. Step 3.3.6: Obtain modification proposal from Contractor Role: CO, COR The contractor submits a contract change proposal to the CO. Proceed to Step 3.3.7. Step 3.3.7: Evaluate contract change proposal Role: CO, COR The CO and COR together evaluate the proposal against the IGE, existing contract, and availability of funds. Proceed to Step 3.3.8. Step 3.3.8: Determine if additional funding required Role: CO, COR The CO and COR determine if additional funding is required for the modification. If additional funding is required, the full solicitation process is repeated with focus on the services being altered by the modification request, as detailed in Process 2.0. If ‘Required’, proceed to Process 2.0 Support Solicitation. If ‘Not required’, proceed to Step 3.3.9. Step 3.3.9: Approve or disapprove modification Role: CO The CO will determine whether to approve the contract change request. If the change request is approved, a contract modification will be awarded to the contractor. If the change request is not approved, no contract modification will be awarded. If ‘Yes’, proceed to Out-of-Scope Process, Award Contract Modification If ‘No’, proceed to Step 3.3.12. Out-of-Scope Process: Approve Contract Modification Role: CO The CO coordinates to award the modification to the contractor. Proceed to Step 3.3.16. 34 | P a g e  Air Force Civil Engineer Service Contracts Playbook Step 3.3.10: Adjust Service Contract Record with actual changes in NexGen IT Role: COR The COR adjusts the Service Contract Record (Service Agreement) in NexGen IT to reflect the approved modification. This includes making changes to the overall contract award amount, CLINs, Sub-CLINs, and on demand CLINs as appropriate. Proceed to Step 3.3.11. Step 3.3.11: Adjust Reimbursable Agreement if requested in NexGen IT Role: COR The COR adjusts the Customer Reimbursable Agreement if required within NexGen IT. Proceed to Process 3.0 Contract Management, Step 3.1, and Process 3.5 Create Monthly Report. Step 3.3.12: Communicate disapproval to all impacted parties Role: CO If either the CO or the Approving Authority disapproves the modification package, the CO communicates the disapproval to all impacted parties (COR, Customer, Contractor, etc.). Proceed to Step 3.3.13. Step 3.3.13: Determine if contract change request needs to be revised Role: COR If disapproved, the COR determines whether to address issues leading to disapproval or cease modification efforts. If ‘Adjust’, proceed to Step 3.3.1. If ‘No adjustments’, proceed to Process 3.0 Contract Management, Step 3.1 and Process 3.5 Create Monthly Report. Click here to view a larger image. Figure 9: Support Service Contract Modification 35 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 10 - 3.5 Create Monthly Report Most recurring service contracts require the COR to complete a monthly report. It is a best practice for CORs to upload pertinent documentation relating to the Service Contract’s Service Agreement in the ‘Notes and Documents’ tab in NexGen IT. ROLES RESPONSIBILITIES CO Reviews the COR Report. Reviews Service Contract Record in NexGen IT for all documentation and PARs. COR Creates the monthly COR report. Forwards the COR report to the CO for review. Uploads monthly report to Service Contract Record in NexGen IT. Table 9: Create Monthly Report Roles and Responsibilities Narrative Entry from Process 3.0, Contract Management, Step 3.4. Entry from Process 3.2 Conduct Surveillance, Step 3.2.3, and Step 3.2.10. Entry from Process 3.3 Support Service Contract Modification, Step 3.11, and Step 3.13. Step 3.5.1: Review service contract record for applicable documentation Role: COR The COR reviews all applicable documentation pertaining to the performance of the contractor, such as surveillance records, customer complaints or PARs. Proceed to Step 3.5.2. Step 3.5.2: Create monthly COR report Role: COR The COR creates and completes the report based on contract requirements using documentation collected during surveillance and filed in the Service Contract Record. The COR is not required to fill out a customer complaint form (CCF) for issues discovered during periodic surveillance because he or she documents it in the recurring report. Proceed to Step 3.5.3. Step 3.5.3: Forward the COR report to the CO for review Role: COR The COR develops the report and forwards it to the CO for review. Proceed to Step 3.5.4. Step 3.5.4: Review COR Report Role: CO The CO reviews, signs, and returns the report to the COR. Proceed to Step 3.5.5. Step 3.5.5: Upload monthly report to Service Contract Record Role: COR The COR files the report in the Service Contract Record and uploads a copy of the report in the corresponding Service Agreement’s ‘Notes and Documents’ tab. 36 | P a g e  Air Force Civil Engineer Service Contracts Playbook Proceed to Process 3.0 Contract Management, Step 3.6. Click here to view a larger image. Figure 10: Create Monthly Report 37 | P a g e  Air Force Civil Engineer Service Contracts Playbook Chapter 11 - 3.8 Validate Invoice The COR is responsible for validating and possibly approving invoices submitted by contractors. The COR evaluates the invoice against the completed bid schedule and expenditure log. If there are any discrepancies with the invoice, the COR works with the CO and the Contractor to resolve the issues. If there are no outstanding issues, the CO or COR validates and accepts the invoice as specified in the contract and the COR completes the necessary actions to capture costs in NexGen IT. The COR monitors expenditures for each contract he or she is overseeing. Using the CLIN, brief descriptions, effective dates, modification numbers and data, and invoice numbers, the COR tracks the expenditures made on the contract for a given period, ensuring no CLIN is over expended, and that the contractor is billing in accordance with the bid schedule. For variable expenses, such as refuse tonnage costs, the COR is responsible for tracking the incurred expenses against the obligated amount to ensure that there will be sufficient funding for the duration of the contract. ROLES RESPONSIBILITIES Coordinates with contractor to resolve payment issues. CO Accepts invoice through Wide Area Workflow (WAWF). Reviews invoice and supporting documentation. Determines if service contract is paid via GPC. COR Determines whether to accept invoice. Accepts or recommends acceptance. Coordinates with contractor to resolve payment issues. Table 10: Validate Invoice Roles and Responsibilities Narrative Entry from Process 3.0 Contract Management, Step 3.6, and Step 3.7. Entry from Process 4.0 Perform End-of-PoP Activities, Step 4.12. Step 3.8.1: Review invoice and supporting documentation Role: COR Many contracts mandate electronic invoice submittals through WAWF, however there are still situations where contractors will submit by hard copy, or other electronic means. The COR compares the invo