Management System Description:

Management and Operating (M&O) Contracting

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	The Agency Official appointed 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 (HCA). Approves deviations to the FAR and to the DEAR. See FAR 2.101. Appoints the Source Selection Official (SSO).
Director, Office of Science (SC-1)	Senior DOE line manager responsible for the ten SC laboratories.
SC Deputy Director for Science Programs (SC-2)	Senior SC official responsible for all ten SC laboratories, including both programs and operations. Reports directly to SC-1.
SC Deputy Director For Field Operations (SC-3)	Provides leadership in the strategic planning, management, oversight, and coordination of the SC Integrated Support Center (ISC) and SC Site Offices and their associated laboratories, facilities, and activities. Serves as the SC Head of Contracting Activity. Reports directly to SC-1.
Associate Directors (ADs)	Senior SC officials responsible for specific program activities performed by the ten SC laboratories. Report directly to SC-2.
Office Directors (ODs)	Senior SC officials who provide support to SC Deputy Directors in the award and administration of M&O contracts.
Contracting Activity (CA)	An element of the Agency, such as the Office of Science, that is so designated by the Procurement Executive and delegated broad authority for acquisition functions. See FAR 2.101.
SC Head of Contracting Activity (HCA)	The SC official with overall responsibility for managing SC’s contracting activity. Certifies the Site Manager/Administrative Contracting Officer (ACO) and Level III Acquisition Professionals/Procurement Contracting Officers (PCOs) at the Site Offices and at the ISC 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 their responsibility.” Certain HCA authorities cannot be delegated. See FAR 2.101. The SC‑OR Manager has the responsibility of Contracting Officer (CO) for the Oak Ridge National Laboratory M&O contract. The Site Office Managers for the other nine SC laboratories have the CO responsibility for their site's M&O contract. Has a Senior Acquisition Advisor within the SC HQ Office of Laboratory Policy and Evaluation (SC-32) who assists with the oversight of acquisition and assistance activities at the Site Offices, SC‑CH, and SC‑OR.
Source Selection Official (SSO)	The Government Official in charge of selecting a source or sources in a competitive negotiated acquisition. The title commonly applies in the formal source selection process, when the official is someone other than the CO. See FAR 15.303. Responsible for establishing a source evaluation board, approving a source selection plan, and considering the recommendations of evaluation and advisory groups in making a source selection. Involved in the contract planning, solicitation, and award process.
Source Evaluation Board (SEB)	Involved in the contract planning, solicitation, and award process. SEB activities are defined in the FAR , DEAR, and Acquisition Guide Chapter 15.
Contracting Officer (CO)	An employee of the Agency with the authority to legally bind the Government by signing a contractual instrument. See FAR 1.601(a). FAR 2.101 defines a CO as a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. Responsible for ensuring 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. See FAR 1.602‑2. COs are appointed (warranted) in writing by the HCA. Directly involved in all elements of this Management System. A Procurement Contracting Officer (PCO) has the authority to enter into a contract. An Administrative Contracting Officer (ACO) administers the performance of the contract.
Contracting Officer Representative (COR)	An employee designated by a CO to perform certain delegated contract administration activities. An authorized representative of a CO within the scope of his or her authority. Directly involved in the management and administration of the M&O contract within the authority granted by the CO.
Office of Laboratory Policy and Evaluation (SC-32)	Involved in all aspects of the management system. Includes the Senior Acquisition Advisor who assists the SC HCA with the oversight of acquisition and assistance activities at the Site Offices and the ISC. Reports directly to SC-3.
SC Integrated Support Center (ISC) Staff	Provides the HCA with support in the award and administration of M&O contracts, including: (1) maintaining documentation in support of CO certifications, (2) staffing or providing an independent level of review for actions submitted to the HCA for approval, and (3) participating in SEBs. The ISC involvement includes, but is not limited to, procurement, legal, finance, budget, technical services and human resources support.
SC Site Office Manager (SOM)	The official SC point of contact between DOE and the M&O contractor. In most cases, the SC SOM is either a warranted ACO or a designated COR. Site Offices are involved in contract selection, management and administration, and close out.
SC Management and Operating Contractor	Performs work consistent with the M&O contract at each of the ten SC laboratories.

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
  • Procedure 1. Developing and Submitting an Acquisition Plan
• Management and Operating (M&O) Contract Competition
  • Procedure 1. Selecting the Management and Operating (M&O) Contractor
• Management and Operating (M&O) Contract Extension
  • Procedure 1. Performing an Award Term Evaluation and Recommendation
  • Procedure 2. Effecting Award Term Extension
  • Procedure 3. Conducting Award Term Fee Negotiation
  • Procedure 4. Managing Extension of Contract
• Closeout of a Management and Operating (M&O) Contract
  • Procedure 1. 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:

• SC Laboratory Performance Appraisal Process

6.0 References

• DEAR

• FAR

• FAR 43.103, Types of Contract Modifications

7.0  Delegations

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

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

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Filename: /OrbitSearch/MSD/MOC/MOC_MS.cfm
Last Major SCMS Revision: 03/17/2010