Non-Management and Operating (Non-M&O) Contracting

Management System Description:

Management System Owner:		SUSAN BORTHWICK
Secondary Management System Owner:		DENNIS WILSON
Point of Contact:		SUSAN BORTHWICK

Issue Date: 06/06/2012
SCMS Revision: 1.3

1.0 Purpose

The purpose of the Office of Science (SC) Non‑Management and Operating Contracting (NMOC) Management System is to ensure the most efficient and effective procurement process is in place for planning, selecting, managing, and closing out contracts that support SC programs and activities.

“Contract” means a mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by the Federal Grant and Cooperative Agreements Act of 1977. For purposes of this Management System, Management and Operating (M&O) contracts are excluded from the definition. For discussion of various types of contracts, refer to the Types of Contracts section in the Federal Acquisition Regulation (FAR ).

2.0 Responsibilities

The table below represents roles and responsibilities specific to this Management System. For a detailed description of SCMS roles and responsibilities, please see the SCMS R2A2.

Roles	Responsibilities
Department of Energy (DOE) Senior Procurement Executive NOTE: The Senior Procurement Executive for the U.S. Department of Energy is the Director, Office of Procurement and Assistance Management (MA-60).	Appointed as the Agency Official to meet the requirements of Section 16 of the Office of Federal Procurement Policy Act, 41 U.S.C. Section 414. Manages the direction of the DOE Acquisition System, including implementation of DOE’s unique acquisition policies, regulations (i.e., Department of Energy Acquisition Regulations [DEAR ]), and standards. Ensures that there is clear authority for carrying out efficient and effective procurement policies. Issues DOE acquisition policy. Appoints the SC Head of Contracting Activity. Approves deviations to the FAR and to the DEAR .
Contracting Activity	An element of the agency, such as SC, that is so designated by the Senior Procurement Executive and delegated broad authority for acquisition functions.
SC Head of Contracting Activity (HCA)	Appointed as the Agency Official with overall responsibility for managing SC’s Contracting Activity. Serves as the HCA and the Senior Contracting Official within SC. Certifies Contracting Officers at the Site Offices and at the Chicago Office (SC‑CH) and the Oak Ridge Office (SC‑OR). Delegates certain delegable HCA authorities to the Managers of SC‑CH and SC‑OR. The HCA authorities that have been delegated are only those within the scope of his or her responsibility. Certain HCA authorities cannot be delegated.
SC Deputy Director for Field Operations (SC-3)	Provides leadership in the strategic planning, management, oversight, and coordination of the SC Integrated Support Center and SC Site Offices and their associated laboratories, facilities, and activities. Reports to the Director, Office of Science (SC‑1). Serves as the SC HCA.
Source Selection Authority (SSA)	Appointed as the Agency Official in charge of selecting a source or sources in a competitive acquisition; sometimes referred to as Source Selection Official or SSO. The title commonly applies in the formal source selection process, when the official is someone other than the Contracting Officer. Establishes a Source Evaluation Board and considers the analyses of the Source Evaluation Board in making a source selection. Involved in the contract planning, solicitation, and award process.
Source Evaluation Board (SEB)	Responsible for the contract planning, solicitation, and award process for procurements over $10 million. SEB activities are defined in the FAR , DEAR , and Chapter 15 of the DOE Acquisition Guide.
Source Evaluation Panel (SEP)	Established for the planning, solicitation and award process for less complex procurements or those valued at less than $10 million. Performs duties and functions similar to an SEB; some steps may not be necessary due to the lower estimated value of the procurement.
Contracting Officer (CO)	Appointed Agency employee with the authority to legally bind the Government by signing a contractual instrument. Refer to the Authority section under Career Development, Contracting Authority, and Responsibilities in the FAR . Authorized to enter into, administer, and/or terminate contracts and make related determinations and findings. Ensures performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the interest of the Government in its contractual relationships. Warranted in writing by the HCA.
Contracting Officer’s Representative (COR)	An Agency employee designated in writing by a CO to perform certain delegated activities as the authorized representative of a CO within the scope of his or her authority. Normally interacts directly with the contractor on matters related to technical aspects of contractor performance.
Contract Specialist (CS)	An Agency employee trained under the Acquisition Career Management Program who works under the direction of a warranted CO.
SC Integrated Support Center (ISC) Staff	Provides the HCA with support in the award and administration of contracts. This includes maintaining documentation in support of CO certifications, staffing or providing independent reviews for actions submitted to the HCA for approval, and participating in SEBs or SEPs. Provides support that includes but is not limited to procurement, legal, finance, budget, technical, and contractor human resources.
Contractor	The legal entity required to perform the statement of work and meet the terms and conditions specified in the contract.
Purchasing Agent	An Agency employee trained under the Acquisition Career Management Program who serves as a warranted CO for simplified acquisitions and purchases.

3.0 Management System Operation

3.1 Overview

The NMOC Management System establishes an effective and efficient method of the basic procurement processes for Contract Acquisition Planning and Award, Contract Management and Administration, and Contract Closeout. The NMOC Management System is dependent on most of the other SC Management Systems to review, evaluate, and determine applicable DOE requirements for Non‑M&O Contracts.

DOE uses a significant number of Non‑M&O prime contracts for obtaining a large variety of products and services to support DOE missions. These may include technical and support services, architect and engineering services, construction, utilities, and supplies.

The manner in which these products and services may be obtained may be through an existing contractual vehicle established by another Federal agency or another master contract within DOE; by use of an Interagency Agreement with another Federal agency; or by a Simplified Acquisition procedure if a relatively simple purchase request. Also, DOE occasionally is required to compete for services through an A‑76 methodology.

3.2 Key Functions/Services and Processes

The SC NMOC Management System includes the basic procurement processes for Non‑M&O Contract Acquisition Planning and Award, Non‑M&O Contract Management and Administration, and Non‑M&O Contract Closeout. After the Acquisition Planning phase is completed, the user will be directed to specialty Subject Areas for procedures that are appropriate for the particular procurement.

3.2.1 Non‑Management and Operating Contract Acquisition Planning and Award

The Non‑M&O Contract Acquisition Planning and Award function includes two related elements: acquisition planning and award activities. This function identifies all major tasks required to plan for the acquisition. These tasks are governed by the FAR , DEAR , the DOE Acquisition Guide, and other DOE policies.

3.2.1.1 Contract Planning

The contract planning procedure involves identifying current and future needs, researching the market, and determining the best path to fill those needs. This process includes coordination with DOE program management and others to develop a sound acquisition strategy and plan. Non‑M&O contracting should be accomplished with consideration given to mandated sources, socioeconomic program goals, and existing contractual vehicles established by other Federal agencies.

Critical input is obtained from the contract planning process in determining whether to compete for an existing or new need for products or services, or if a provision is available for less than full and open competition.

3.2.1.2 Solicitation Phase

The contract solicitation procedure involves formal announcements identifying DOE’s need for goods/services, requests to vendors to submit proposals/bids/quotes, formally addressing vendor questions regarding solicitations, and processing solicitation amendments.

3.2.1.3 Evaluation

The Government evaluates proposals/offers/bids in technical, cost, and business arenas in accordance with criteria established in the solicitation. Evaluation leads to identification of the apparent successful offeror(s).

3.2.1.4 Award

The Government makes award to the offeror(s) that provides the best value and meets the expectations stated in the evaluation criteria. Award is made after independent reviews have been obtained and comments resolved; appropriate clearances/approvals have been obtained; and appropriate notifications have been made to the successful and unsuccessful offerors, Congressional offices and other stakeholders.

3.2.2 Non‑Management and Operating Contract Management and Administration

This function involves managing and administering the contract by (1) establishing requirements and expectations for the contractor, (2) facilitating contractor performance, (3) monitoring and evaluating contractor performance, and (4) providing feedback to the contractor. It also may involve contractor transition.

3.2.2.1 Contract Transition

This process involves the orderly transfer of management from an existing contract to a newly awarded contract. This process provides guidance for establishing expectations related to transition which are commensurate with the magnitude and programmatic requirements of the work. Following successful transition, management is performed through the new contract.

3.2.2.2 Manage Requirements and Expectations

Managing requirements and expectations involves the management of contract requirements and expectations, including changes to the requirements and/or expectations through contract modifications and DOE technical direction. A contract modification is a formal change to the terms of the contract, signed by the DOE CO. These changes can include the required implementation of a new DOE directive or a new Federal, State, or local law or regulation. Technical direction is guidance concerning the contractor’s work that falls within the scope, estimated cost, fee, and time period of the contract (e.g., a change in priorities or clarification on certain tasks that need to be performed). Technical direction will be issued by a formally designated COR.

3.2.2.3 Facilitate Performance

This process may be needed to facilitate the performance of the contractor by DOE performing actions, such as approvals, authorizations, and internal/external communication with stakeholders or third parties, that allow the contractor to perform work. This includes activities such as signing permits as the facility owner, timely approval of work authorizations, and communicating with stakeholders to gain support for a program or to resolve issues with a regulatory agency.

3.2.2.4 Monitor and Evaluate Performance

This process involves monitoring and evaluating contractor performance to ensure that it meets contract requirements and expectations through (1) acceptance of contract deliverables, (2) conducting performance reviews, (3) preparing performance reports, (4) daily monitoring of ongoing activities, and (5) the use of contractor self‑reporting. Examples of these activities may include walkthroughs, audits, and property inspections.

3.2.2.5 Provide Feedback

This process involves providing feedback to the contractor on their performance through formal periodic appraisals and other feedback mechanisms, including informal mechanisms, so that deficiencies are understood and corrected. This feedback process may also result in changes to the requirements and expectations. An annual formal contractor evaluation will be conducted for contracts exceeding a specific value and duration.

3.2.2.6 Integration

This process involves the management and integration with DOE, other DOE prime contractors, or other entities to ensure the effective and efficient management of the work scope.

3.2.3 Non‑Management and Operating Contract Closeout

Closeout is the process of settling all outstanding contractual issues to ensure that each party has met all of its obligations, and documenting the contract file accordingly. The primary objectives of contract closeout are: (1) to identify and resolve any uncompleted obligations or pending liabilities on the part of either the Government or the contractor; and (2) to ensure that contract‑related decisions and actions have been properly documented.

4.0 Requirements

4.1 Primary Responsibility

This Management System has primary responsibility for ("owns") the following requirements:

Document	Title	Requirement Decision Record
DEAR 904	Administrative Matters	Completed
DEAR 905	Publicizing Contract Actions	Completed
DEAR 906	Competition Requirements	Completed
DEAR 907	Acquisition Planning	Completed
DEAR 908	Required Sources Of Supplies And Services	Completed
DEAR 911	Describing Agency Needs	Completed
DEAR 912	Acquisition Of Commercial Items	Completed
DEAR 913	Simplified Acquisition Procedures	Completed
DEAR 914	Sealed Bidding	Completed
DEAR 916	Types Of Contracts	Completed
DEAR 916.504	Indefinite Delivery Contracts	Completed
DEAR 917	Special Contracting Methods	Completed
DEAR 919	Small Business Programs	Completed
DEAR 922	Application Of Labor Laws To Government Acquisition	Completed
DEAR 936	Construction And Architect - Engineer Contracts	Completed
DEAR 937	Service Contracting	Completed
DEAR 941	Acquisition Of Utility Services	Completed
DEAR 942	Contract Administration	Completed
DOE O 541.1B	Appointment Of Contracting Officers And Contracting Officer Representatives	Completed
DOE O 544.1	Priorities And Allocations Program	Completed
DOE P 547.1	Small Business First Policy	In Progress
E.O. 13495	Nondisplacement of Qualified Workers Under Service Contracts	Completed
FAR 4	Administrative Matters	Completed
FAR 5	Publicizing Contract Actions	Completed
FAR 6	Competition Requirements	Completed
FAR 8	Required Sources Of Supplies And Services	Completed
FAR 9	Contractor Qualifications	Completed
FAR 13	Simplified Acquisition Procedures	Completed
FAR 16.5	Indefinite Delivery Contracts	Completed
FAR 16.7	Agreements	Completed
FAR 22	Application Of Labor Laws To Government Acquisitions	Completed
FAR 36	Construction And Architect - Engineer Contracts	Completed
FAR 37	Service Contracting	Completed
FAR 41	Acquisition Of Utility Services	Completed
Memo-018	Partnership Agreement between the U.S. Small Business Administration and the U.S. Department of Energy	Completed
OMB Circular A-76	Performance Of Commercial Activities	Completed

4.2 Parsed Responsibility

This Management System is responsible for a part of the following high-level requirements:

Document

Title

Parsed Unit RDR Status

48 CFR 3.104 Procurement Integrity Completed

48 CFR 33 Protests, Disputes, And Appeals Completed

DEAR 915 Contracting By Negotiation Completed

DOE O 542.2A Unsolicited Proposals Completed

FAR 7 Acquisition Planning Completed

FAR 15 Contracting By Negotiation Completed

FAR 43 Contract Modifications Completed

Memo Garman (01/20/2006) Memorandum from David K. Garman, Under Secretary for Energy, Science, and Environment, to the Heads of Energy, Science, and Environment Departmental Elements, titled 72-Hour Prior Notification, dated 01/20/2006 Completed

Memo-003 COR Designation Letters Completed

41 U.S.C., Section 256 Allowable Costs Completed

Document	Title	Parsed Unit RDR Status
48 CFR 3.104	Procurement Integrity	Completed
48 CFR 33	Protests, Disputes, And Appeals	Completed
DEAR 915	Contracting By Negotiation	Completed
DOE O 542.2A	Unsolicited Proposals	Completed
FAR 7	Acquisition Planning	Completed
FAR 15	Contracting By Negotiation	Completed
FAR 43	Contract Modifications	Completed
Memo Garman (01/20/2006)	Memorandum from David K. Garman, Under Secretary for Energy, Science, and Environment, to the Heads of Energy, Science, and Environment Departmental Elements, titled 72-Hour Prior Notification, dated 01/20/2006	Completed
Memo-003	COR Designation Letters	Completed
41 U.S.C., Section 256	Allowable Costs	Completed

5.0 Subject Areas, Program Descriptions, and Guidance Documents

The following Subject Areas are maintained by this Management System:

6.0 References

DOE Acquisition Guide
DOE Acquisition Letters
DOE Policy Flashes
STRIPES (Strategic Integrated Procurement Enterprise System) Manual
41 U.S.C. Section 414, Section 16 of the Office of Federal Procurement Policy Act

7.0 Delegations

NOTE: The Basis/Source column below reflects requirements active at the time of the delegation.
These requirements may have been superceded or canceled and may not be currently active.
For the official active requirement list, please reference the SCMS Management System Descriptions.

The following delegations affect this Management System:

Date Issued	Delegated By	Delegated To	Topic (Click to view the Delegation)	Basis/Source
05/23/2011	Ferraro, Patrick (MA-60)	McBrearty (SC-3)	Head of Contracting Activity of the Office of Science	DEAR 906 DEAR 916 DEAR 970.5244-1 (k) DOE Acquisition Guide DOE O 142.5 DOE O 361.1B DOE O 540.1B FAR 1.601(a) FAR 16.5 FAR 6
11/07/2011	McBrearty, Joseph (SC-3)	Eschenberg (OR) Purucker (CH)	Head of Contracting Activity	DOE Acquisition Guide P.L. 111-85
04/24/2012	McBrearty, Joseph (SC-3)	Kelly (OR)	Re-delegation of Head of Contracting Activity (HCA) Functions and Responsibilities	DEAR 906 DEAR 908 DEAR 914 DEAR 915 DEAR 916 DEAR 945 DEAR 970 DOE Acquisition Guide DOE M 481.1-1A, Change 1 FAR 15 FAR 16.5 FAR 22 FAR 36 FAR 41 FAR 52 FAR 9 P.L. 111-85 FAR 1.602 DOE M 481.1C
08/17/2012	McBrearty, Joseph (SC-3)	Kelly (OR) Purucker (CH)	Re-delegation of Authority to Approve Routine Requests for Approval of Subcontract Indemnification Provisions in Accordance with the Department of Energy Acquisition Regulation	DEAR 970.5244-1(1) DEAR 970.5228-1

Last Annual Review: No Previous Review
Annual Review Period: First Quarter

This is not the online OFFICIAL SCMS COPY of this file. Before using this printed copy, verify that it is the most current version by checking the Last Major Revision and Last Minor Revision dates (at the bottom of each document) on the SCMS Web site.

This is the online OFFICIAL SCMS COPY of this file. Before using a printed copy, verify that it is the most current version by checking the Last Major Revision and Last Minor Revision dates (at the bottom of each document) on the SCMS Web site.

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Last Major SCMS Revision: 12/18/2007