Management System Description:
Management and Operating (M&O) Contracting
Management System Owner: | JOHN LABARGE | |
Secondary Management System Owner: | DENNIS WILSON | |
Point of Contact: | KIM HENDERSON |
Issue Date: 05/17/2012
SCMS Revision: 3.1
1.0 Purpose
The purpose of the Office of Science (SC) M&O Contracting Management System is to ensure that the most efficient and effective procurement process is in place for planning, selecting, managing, and closing out the performance‑based M&O contracts for the ten SC laboratories. A “management and operating contract” is defined in the Federal Acquisition Regulation (FAR ) 17.601 as "an agreement under which the Government contracts for the operation, maintenance, or support, on its behalf, of a Government‑owned or ‑controlled research, development, special production, or testing establishment wholly or principally devoted to one or more major programs of the contracting Federal Agency." To meet this purpose, this Management System identifies a consistent method that will result in the most efficient and effective use of resources to design, develop, and deploy quality M&O procurement systems, as encouraged by FAR 7.101.
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 |
U.S. Department of Energy (DOE) Senior Procurement Executive |
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Director, Office of Science (SC-1) |
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SC Deputy Director for Science Programs (SC-2) |
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SC Deputy Director For Field Operations (SC-3) |
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Associate Directors (ADs) |
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Office Directors (ODs) |
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Contracting Activity (CA) |
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SC Head of Contracting Activity (HCA) |
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Source Selection Official (SSO) |
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Source Evaluation Board (SEB) |
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Contracting Officer (CO) |
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Contracting Officer Representative (COR) |
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Office of Laboratory Policy and Evaluation (SC-32) |
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SC Integrated Support Center (ISC) Staff |
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SC Site Office Manager (SOM) |
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SC Management and Operating Contractor |
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3.0 Management System Operation
3.1 Overview
SC uses performance‑based M&O contracts for the management and operation of Department‑owned or controlled Federally Funded Research and Development Center (FFRDC) facilities dedicated to the performance of DOE programs. Performance‑based contracting emphasizes objective, measurable performance requirements and quality standards in developing statements of work, selecting contractors, determining contract type and incentives, and performing contract administration. The SC mission is accomplished through significant levels of subcontracting by M&O contractors as well as through prime non‑M&O awards by DOE.
The M&O Contracting Management System establishes an effective and efficient method of contract acquisition planning, extension, competition and award, contract management and administration, and contract closeout for SC M&O contracts. This Management System is dependent on many of the other SC Management Systems to review, evaluate, and determine the applicable DOE requirements for the M&O contracts.
3.2 Key Functions/Services and Processes
The key functions of the M&O Contracting Management System include contract acquisition planning, competition, award, extension, transition, and closeout, as well as contract management and administration. These tasks are governed by the FAR, the DEAR, the DOE Acquisition Guide, DOE Policies, and DOE Directives.
3.2.1 Management and Operating (M&O) Contract Acquisition Planning, Competition, Award, Extension, Transition, and Closeout
This function involves the processes required to plan for, compete, award, extend, transition, and closeout the performance-based M&O contracts at the SC laboratories.
3.2.1.1 Contract Planning
Contract planning involves identifying and documenting operational needs, objectives, and strategies in an Acquisition Plan (AP) and determining if it is in the government’s best interest to extend or to compete an existing contract.
Contract planning includes considerable coordination with DOE management, as well as with technical experts and advisors, to develop recommendations and plans.
3.2.1.2 Contract Competition and Award
Contract competition is initiated when the Secretary of Energy decides to compete an existing M&O contract. The competition involves appointing an SSO and an SEB, preparing an AP and Request for Proposals, reviewing proposals, conducting discussions (if necessary), and documenting findings. The final steps include making a final selection, securing all approvals and clearances, performing all notifications, conducting briefings, and awarding the new contract. Key input is obtained from the contract planning process.
3.2.1.3 Contract Extension
Contract extension is initiated either when the Secretary of Energy decides to extend an existing M&O contract prior to its expiration through the acquisition planning process, or when the award term extension process is executed for a contractor whose contract contains an Award Term Incentive clause and whose performance in accordance with the clause and under the annual SC laboratory appraisal process is determined to meet the requirements for an award term extension.
3.2.1.4 Contract Transition
Contract transition involves the orderly transfer of laboratory management from an existing contract to a newly awarded contract, and involves establishing a transition management team, transition plans, and transition plan expectations. Following successful transition, laboratory management is performed through the new contract.
In the event of a contract extension, “Contract Implementation” shall be used in lieu of “Contract Transition.” The contractor is responsible for implementing all changes in the terms and conditions of the newly extended contract, while the Site Office is responsible for oversight of contract implementation and assuring that the new terms and conditions have been implemented.
3.2.1.5 Closeout
The contract closeout procedure involves the orderly close‑out of the M&O contract including the settlement of all open issues once the contract term has expired, the contract deliverables are completed or because it is in the best interests of the government to terminate a contract.
Contract closeout for M&O contractors 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 consistent with FAR 4.804‑1 through -5.
3.2.2 Management and Operating (M&O) Contract Administration
Contract administration involves managing requirements and expectations for the M&O contractor, facilitating, monitoring, and evaluating contractor performance, and providing feedback to the contractor. This key function also includes contractor human resource management.
3.2.2.1 Contract Management and Administration
3.2.2.1.1 Managing Contract Requirements
This procedure 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 M&O contract, signed by the CO. See FAR 43.103. These changes can include the required implementation of a new DOE Directives or Federal law. Technical direction is guidance concerning the contractor’s work that falls within the scope of the contract statement of work. Technical direction can be issued by a COR. This technical direction can include a change in priorities or clarification on how certain tasks need to be performed but may not result in an increase or decrease to the estimated cost of the contract.
The other SC Management Systems are responsible for reviewing new laws and DOE Directives, in their respective areas of responsibility, to determine applicability to the SC M&O contractors. This determination provides input to the M&O Contracting Management System. If the laws and DOE Directives apply to SC M&O contractors, then a contract modification is approved, and the contract requirements change.
3.2.2.1.2 Facilitate Performance
This procedure involves facilitating the performance of the laboratory by DOE performing those actions, such as approvals, authorizations, and internal/external communication with stakeholders, that allow the contractor to perform work. This includes activities, such as signing permits as the facility owner, approving work authorizations in a timely manner, and communicating with stakeholders to gain support for a program or to resolve issues with a regulatory agency.
3.2.2.1.3 Monitor and Evaluate Laboratory Performance
This procedure involves monitoring and evaluating contractor performance to ensure that it meets contract requirements and expectations through acceptance of contract deliverables, conducting performance reviews, preparing performance reports, daily monitoring of ongoing activities, and the use of contractor self‑reporting. Examples of these activities include facility representative walkthroughs, performing property inspections, and accepting completed projects for startup.
This procedure also involves providing feedback to the contractor on its performance through formal periodic appraisals and other feedback mechanisms, including informal mechanisms, so that deficiencies are understood and corrected. This feedback procedure may also result in changes to the requirements and expectations. An annual formal appraisal includes a fee/award term determination and a report card. Performance reports often contain findings and recommendations.
The other SC Management Systems support the monitoring and evaluation of the M&O contractor performance against the contractor requirements and expectations and provide input to the M&O Contracting Management System.
3.2.2.1.4 Integration
This procedure involves the management and integration of other DOE prime contractors on the site to ensure the effective and efficient management of the entire laboratory.
3.2.2.1.5 Managing Research Partnerships with External Entities
This process involves the general steps and activities necessary to manage research partnerships between the SC laboratories and external entities, including Work for Others (WFO) agreements, work for the Department of Homeland Security (DHS), Joint Work Statements (JWS), and Cooperative Research and Development Agreements (CRADAs).
3.2.2.1.6 Reviewing and Approving Laboratory Directed Research and Development (LDRD) Programs and Projects
This process involves the general steps and activities necessary for SC-1 to review and approve overall LDRD funding levels at the SC laboratories, as well as the responsible SC Site Office concurrence on individual LDRD projects.
3.2.2.2 Contractor Human Resource Management
This process involves reviewing, analyzing, and approving Contractor Human Resource Management activities to promote effective contract management and workforce excellence and to achieve cost effectiveness.
4.0 Requirements
4.1 Primary Responsibility
This Management System has primary responsibility for ("owns") the following requirements:
Document |
Title |
Requirement Decision Record |
---|---|---|
10 CFR 707 | Workplace Substance Abuse Programs At DOE Sites | Completed |
10 CFR 708 | DOE Contractor Employee Protection Program | Completed |
48 CFR, Chapter I | Federal Acquisition Regulations System, Federal Acquisition Regulation | Completed |
48 CFR, Chapter IX | Federal Acquisition Regulations System, Department Of Energy | Completed |
48 CFR 3.104 | Procurement Integrity | Completed |
48 CFR 33 | Protests, Disputes, And Appeals | Completed |
48 CFR 970.0309 | DOE Management and Operating Contracts | Completed |
48 CFR 970.2305 | Workplace Substance Abuse Programs--Management and Operating Contracts | Completed |
48 CFR 970.5204-2 | Laws, Regulations, and DOE Directives (DEC 2000) (Also Called The Laws Clause) | Completed |
48 CFR 970.5215-3 | Conditional payment of fee, profit, and other incentives—facility management contracts | Completed |
DEAR 915 | Contracting By Negotiation | Completed |
DEAR 915.207-70 | Handling of Proposals During Evaluation | Completed |
DEAR 952.242-70 | Technical Direction | Completed |
DEAR 970 | DOE Management And Operating Contracts | Completed |
DEAR 970.3501-3 | Reviewing FFRDC's (Federally Funded Research And Development Centers) | Completed |
DEAR 970.5204-2 | Laws, Regulations, and DOE Directives (DEC 2000) (Also Called The Laws Clause) | Completed |
DOE O 350.1, Change 3 | Contractor Human Resource Management Programs | Completed |
DOE O 350.2B | Use Of Management And Operating Or Other Facility Management Contractor Employees For Services To DOE In The Washington, D.C. Area | Completed |
DOE M 481.1-1A, Change 1 | Reimbursable Work For Non-Federal Sponsors Process Manual | Completed |
DOE O 481.1C | Work For Others (Non-Department Of Energy Funded Work) | Completed |
DOE O 483.1 | DOE Cooperative Research And Development Agreements | Completed |
DOE M 483.1-1 | DOE Cooperative Research And Developments Agreements Manual | Completed |
DOE O 484.1, Admin. Change 1 | Reimbursable Work For The Department Of Homeland Security | Completed |
DOE Acquisition Guide | Department Of Energy Acquisition Guide | Completed |
DOE Acquisition Letter 2009-03, Revision 1 | Acquisition Planning--Extending A Management and Operating Contract Without Full and Open Competition; and Site and Utilization Management Planning | Completed |
DOE Acquisition Letter 2010-04, Revision 1 | Congressional Notification of Pending Contract or Financial Assistance Actions in excess of $1 Million | Completed |
E.O. 13517 | Amendments to Executive Orders 13183 and 13494 | Completed |
E.O. 13494 | Economy in Government Contracting (Amended by E.O. 13517) | Completed |
FAR 1.601(a) | Federal Acquisition Regulation System, Subpart 1.6 - Career Development, Contracting Authority, And Responsibilities | Completed |
FAR 1.602-2 | Federal Acquisition Regulation System, Subpart 1.6 - Career Development, Contracting Authority, And Responsibilities | Completed |
FAR 2.101 | Definitions Of Words And Terms | Completed |
FAR 4.804 | Administrative Matters, 4.8 Government Contract Files, 4.804 Closeout Of Contract Files | Completed |
FAR 7 | Acquisition Planning | Completed |
FAR 7.101 | Part 7.1 Acquisition Plans, 7.101 - Definitions | Completed |
FAR 15 | Contracting By Negotiation | Completed |
FAR 15.303 | Responsibilities | Completed |
FAR 15.308 | Source Selection Decision | Completed |
FAR 17 | Special Contracting Methods | Completed |
FAR 17.601 | Definition | Completed |
FAR 35 | Research And Development Contracting | Completed |
FAR 43 | Contract Modifications | Completed |
FAR 43.101 | Definitions | Completed |
Memo Hopf (02/19/1999) | Memorandum from Richard H. Hopf, Director, Office of Procurement and Assistance Management, to Heads of Contracting Activities, titled CONTRACTOR INTEGRATED SAFETY MANAGEMENT, dated 02/19/1999 | Completed |
Memo-003 | COR Designation Letters | Completed |
P.L. 74-403 | Davis-Bacon Act of 1931 | Completed |
P.L. 89-286 | McNamara-O'Hara Service Contract of 1965 | Completed |
P.L. 93-400 | Office of Federal Procurement Policy Act | Completed |
15 U.S.C., Section 3710a | Cooperative Research and Development Agreements | Completed |
41 U.S.C., Section 256 | Allowable Costs | Completed |
41 U.S.C., Section 414 (Section 16) | Public Contracts, Office Of Federal Procurement Policy, Chief Acquisition Officers And Senior Procurement Executives | 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 |
---|---|---|
40 CFR 247 | Comprehensive Procurement Guideline for Products Containing Recovered Materials | Completed |
48 CFR 970.5223-1 | Integration Of Environment, Safety, And Health Into Work Planning And Execution (Also Called The ISMS Clause) | Completed |
DOE O 541.1B | Appointment Of Contracting Officers And Contracting Officer Representatives | Completed |
DOE O 544.1 | Priorities And Allocations Program | Completed |
FAR 4 | Administrative Matters | Completed |
FAR 6 | Competition Requirements | Completed |
5.0 Subject Areas, Program Descriptions, and Guidance Documents
The following Subject Areas are maintained by this Management System:
- Management and Operating (M&O) Contract Planning
- Management and Operating (M&O) Contract Competition
- Management and Operating (M&O) Contract Extension
- Closeout of a Management and Operating (M&O) Contract
- Management and Operating (M&O) Contract Management and Administration
- Procedure 1. Preparing and Approving a Contract Management Plan
- Procedure 2. Evaluating Requirements for Contract Applicability
- Procedure 3. Maintaining a Work Authorization System
- Procedure 4. Reviewing and Approving a Subcontract
- Procedure 5. Developing and Executing the SC Laboratory Performance Appraisal Process
- Procedure 6. Technology Partnering -- Preparing, Reviewing and Approving Joint Work Statements (JWSs) and Cooperative Research and Development Agreements (CRADAs)
- Procedure 7. Reviewing and Approving Work for Others (WFO) and Work for the U.S. Department of Homeland Security (DHS)
- Procedure 8. Reviewing and Approving Laboratory Directed Research and Development (LDRD) Programs and Projects
- Contractor Human Resource Management
- Procedure 1. Reviewing and Approving Compensation Increase Plans
- Procedure 2. Evaluating Benefit Programs
- Procedure 3. Reviewing, Approving, and Announcing Workforce Reductions and Restructuring
- Procedure 4. Analyzing and Approving Compensation Actions
- Procedure 5. Monitoring Labor Standards
- Procedure 6. Conducting Compensation Reviews
- Procedure 7. Managing Labor Relations
- Procedure 8. Preparing, Administering, Reviewing, and Approving Staffing Plans for and Assignment of Management and Operating (M&O) Contractor Employees Detailed to the Washington, D.C., Area
The following Guidance Documents are maintained by this Management System:
6.0 References
-
FAR 43.103, Types of Contract Modifications
7.0 Delegations
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 |
06/15/2011 | Koonin, Steve (S-4) | Brinkman (SC-1) |
Work Force Restructuring | DOE O 350.1, Change 3 |
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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Disclaimer
Last Major SCMS Revision: 03/17/2010