Management System: Management and Operating (M&O) Contracting

Subject Area: Management and Operating (M&O) Contract Extension

Procedure 4. Managing Extension of Contract

Subject Matter Expert:	ROBERTA AHLBERG
Management System Owner:	JOHN LABARGE
Secondary Management System Owner:	DENNIS WILSON

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Issue Date:  04/14/2010
SCMS Revision:  2.0

1.0  Applicability

This procedure is applicable to all Office of Science(SC) Management and Operating (M&O) contracts and provides guidance for Contracting Officers (COs) and SC Integrated Support Center (ISC) staff on how to prepare contract modifications to extend existing SC M&O contracts subsequent to the receipt of the Department’s decision to extend the contract.

2.0  Required Procedure

The procedure for preparing the modification for the extension is the same whether the contract is extended noncompetitively or by exercise of an option. See Procedure 1, Developing and Submitting an Acquisition Plan, of the SC Management and Operating (M&O) Contract Planning Subject Area, for more information on the acquisition planning process used to make a determination about whether to noncompetitively extend or compete M&O contracts.

Step 1	Within 18-24 months before the contract expiration, the CO ensures a team (hereinafter called the Contract Extension Team) is established to extend the contract.
Step 2	The Contract Extension Team obtains input from all customers and identifies all desired revisions and updates. NOTE: Customers may include, but are not limited to: Representatives from the SC Program Office, the contractor, U.S. Department of Energy (DOE) Contractor Human Resources, Security, Quality Assurance, Environment, Safety and Health, Legal, Property, Patent Counsel, Technology Transfer/Work for Others, etc.
Step 3	The Contract Extension Team drafts the proposed contract modification and any related deviation requests.
Step 4	The Contract Extension Team prepares the Pre-negotiation memorandum and the maximum fee justification documents.
Step 5	The Contract Extension Team coordinates the Pre-negotiation memorandum, maximum fee justification, draft contract modification and any related deviation requests (Pre-negotiation Package) with the appropriate SC Site Office Staff and resolves all comments.
Step 6	The Contract Extension Team submits the coordinated Pre-negotiation Package to the cognizant Independent Review Board (IRB) for review and resolves all comments.
Step 7	The Contract Extension Team submits the revised Pre-negotiation Package to the SC Headquarters (HQ) Office of Laboratory Policy and Evaluation (SC-32) for coordination through the SC Head of Contracting Activity (HCA) to the DOE HQ Office of Contract Management (MA‑62) for the Business Clearance Review (BCR) process and approval to enter into negotiations with the contractor.  NOTE:  For more information, see the DOE Acquisition Guide, Chapter 71, Headquarters Business Clearance Process.
Step 8	The Contract Extension Team reconciles all BCR comments and prepares a final draft of the Pre-negotiation Package.
Step 9	The CO transmits the final draft contract modification to the contractor for review and comment.
Step 10	The contractor submits the Fee Proposal and identifies all negotiation issues.
Step 11	The Contract Extension Team conducts negotiations with the contractor to reach agreement on the proposed modification.
Step 12	The CO prepares a Post-negotiation memorandum and final negotiated draft modification (Post-negotiation Package).
Step 13	If there are any significant changes from the Pre-negotiation memorandum and draft modification, or if the cognizant IRB or MA‑62 previously indicated the need to see the Post-negotiation Package, the Contract Extension Team shall submit to the cognizant IRB for comment. Once those comments are resolved, the CO submits the Post-negotiation Package to SC-32 for coordination through the SC HCA to MA‑62 for review and approval. NOTE:  The SC HCA must approve the award prior to signature even if the cognizant IRB or MA‑62 waives review of the Post-negotiation Package.
Step 14	Once the CO receives approval or if the cognizant IRB and/or MA‑62 review is not required for the Post-negotiation Package, the CO will ensure SC completes Coordination of Major Program Announcements to U. S. Office of Management and Budget (OMB). The CO submits the Section 311 notification, in accordance with Acquisition Letter 2010-04, Congressional Notification of Pending Contract or Financial Assistance Actions in excess of $1 Million, to the DOE HQ Office of Procurement and Assistance Management (MA-60) at least five (5) business days in advance of the Department’s public announcement of the extension. The CO submits the Congressional Notification 48 to 72 hours in advance.
Step 15	After the Congressional Notification Period expires, the CO and the contractor’s authorized representative execute the modification.
Step 16	The CO distributes the contract modification.
Step 17	If necessary, the Contract Extension Team holds a post-award conference to discuss implementation of revisions to the M&O Contract.

3.0  References

• Acquisition Letter 2010-04, Congressional Notification of Pending Contract or Financial Assistance Actions in excess of $1 Million, dated 03/01/2010

• DEAR 952, Solicitation Provisions and Contract Clauses

• DEAR 970.52, Solicitation Provisions and Contract Clauses for Management and Operating Contracts

• DEAR 970.1504, Contract Pricing

• DOE Acquisition Guide, Chapter 1.1, Acquisition Regulations System, dated March 2004

• DOE Acquisition Guide, Chapter 5.1, Release of Information: Congressional Notification and Long-range Acquisition Estimates, dated September 2004

• DOE Acquisition Guide, Chapter 71, Headquarters Business Clearance Process, dated 09/2008

• FAR 1.5, Agency and Public Participation

• FAR 52, Solicitation Provisions and Contract Clauses

• Policy Flash 2007-51, Chief Financial Officer’s June 13, 2007 Memorandum titled “Coordination of Major Program Announcements”

• Procedure 1, Developing and Submitting an Acquisition Plan, of the SC Management and Operating (M&O) Contract Planning Subject Area

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Filename: \ORBIT\OrbitSearch\SubjArea\MOCE\MOCE_Pro4.cfm
Last Major SCMS Revision: 04/14/2010