Department of Defense COR HANDBOOK

Department of Defense COR HANDBOOK

March 22, 2012

Director, Defense Procurement and Acquisition Policy OUSD(AT&L)

Foreword

The Department of Defense (DoD) relies heavily on the private sector to carry out aspects of the Department's mission. Because of the critical reliance on contractor support and the large expenditures involved, contract surveillance is vital to ensure contractors are providing quality services and supplies in a timely manner; to mitigate contractor performance problems; and to ensure the Federal Government (Government) receives best value for the Warfighter.

Contract quality performance is the responsibility of both the contractor and the Government. The contractor is responsible for carrying out its obligations under the contract in terms of quality, timeliness and cost. The Government is responsible for ensuring that services and supplies acquired conform to the quality and performance requirements of the contract.

Contract quality surveillance is an essential activity. In most cases, contract quality surveillance is the responsibility of the requiring organization -- the organization most familiar with the technical complexities and nuances of the requirement -- with assistance from the contracting office. The requiring organization prescribes contract quality requirements that the contracting office includes in contracts. Members of the requiring organization are designated specific authority by the Contracting Officer to conduct contract surveillance as a Contracting Officer's Representative (COR) in order to verify that the contractor is fulfilling contract requirements and to document performance for the contract record. These CORs function as the eyes and ears of the Contracting Officer and are a liaison between the Government and contractor when executing surveillance responsibilities.

DoD1 policy requires that the requiring activity/COR management participate in nominating CORs and assess their performance of COR responsibilities. COR management affirms that the COR will be afforded necessary resources (time, equipment, opportunity) to perform designated COR responsibilities.

This COR handbook addresses key aspects of contract quality surveillance and the roles and responsibilities of the Contracting Officer, the COR and the requiring activity/COR management. It is a comprehensive resource for the Contracting Officer, COR

1 Deputy Secretary of Defense Memorandum, "Monitoring Contract Performance in Contracts for Services," 22 August 2008, .

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Contents

Introduction

Chapter 1: The Importance of Contract Surveillance

Related Duties Chapter 1. Key Points

Chapter 2: Roles and Responsibilities for Contract Surveillance Nomination, Designation, and Appointment of the COR

Performance of COR Functions Termination of COR Appointment DoD COR Tracking (CORT) Tool Chapter 2. Key Points

Chapter 3: Ethics and Integrity

Review of Standards Working with Contractor Employees Transportation and Travel Awards and Certificates Procurement Integrity Compensation after Leaving Federal Employment Penalties Personal Conflicts of Interest for Contractor Employees Organizational and Consultant Conflicts of Interest Organizational Conflicts of Interest Bribery Anti-Kickback Act Gratuities Gifts Reporting Gifts Protecting the Integrity of the Acquisition Process Chapter 3. Key Points

Chapter 4: The Acquisition Team and Process

The Acquisition Team The Acquisition Process Chapter 4. Key Points

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Chapter 5: COR Responsibilities

Post-Award Duties Understanding the Contract Keeping Files Current and Complete Correspondence and Responses Correspondence with the Contractor Notifications to the Contracting Officer Monitoring Contract Performance Inspect and Accept/Reject Deliverables Proprietary and Classified Information Managing Problems Handling Unsatisfactory Performance Tracking Modifications Conclude Appointment/Designation Appropriately Technical Expertise Limitations Protecting Sensitive or Government Information Related Duties Pre-Award Duties Chapter 5. Key Points

Chapter 6: Contract Structure

Categories and Types of Contracts Categories of Contracts Types of Contracts Fixed-Price Contracts Cost-Reimbursement Contracts Contracts for Commercial Items Contract Structure UCF Part I -- The Schedule UCF Part II -- Contract Clauses UCF Part III -- List of Documents, Exhibits, and Other Attachments UCF Part IV -- Representations and Instructions Order of Precedence Contract Structure ? Solicitations/Contracts for Commercial Items Structure ? Task or Delivery Orders Contract Language Rules Contract Numbers (For Example: N00062-90-C-0001) Chapter 6. Key Points

Chapter 7: Contract Administration

Post-Award Orientation (Kick-Off)

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Conducting the Post-Award Orientation Topics for Discussion at the Post-Award Meeting Contractor/System Compliance Contractor Accountability through SPOT Performance Monitoring Contract Modifications Reasons for Contract Modifications Types of Contract Modifications Contract Options Contract Changes Constructive Changes Unauthorized Commitments Ratification of Unauthorized Commitments Ratification Process Technical Evaluation Cost/Price Evaluation Completion/Payment Acceptance Documenting Acceptance Wide Area Workflow Nonconformance Remedies for Nonconformance Acceptance of Nonconforming Supplies or Services Invoice and Payment Contents of a Valid Invoice Voucher and Invoice Review Overtime Interest Penalties Warranties Implied Warranties Express Warranties Past Performance Contract Closeout DOs and DON'Ts: Contract Administration Chapter 7. Key Points

Chapter 8: Monitoring the Contractor

Contractor Progress Reports Assessing Performance Acceptable Inspection Methods Random or Stratified Sampling 100 Percent Inspection

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Periodic Inspection or Planned Sampling User Feedback Documenting Performance Remedies for Poor Contract Performance DOs and DON'Ts: Remedies Delays Identifying and Verifying a Delay Notifying the Contracting Officer of the Technical Impact of a Delay Assisting the Contracting Officer with Evaluating the Contractor's Response Fraud Combating Trafficking in Persons Government Property Property Responsibilities Reporting, Reutilization, and Disposition of Government Property Contract Termination Termination for Convenience of the Government Termination for Cause/Default Disputes COR Working File DOs and DON'Ts: Contract Monitoring Chapter 8. Key Points

Chapter 9: Monitoring Service Contracts

Personal and Non personal Services Contractor Inspection Clauses for Service Contracts Performance Work Statements for Service Contracts Quality Assurance Surveillance Plans for Service Contracts QASP Composition and Method Contract Surveillance Checklist Incident Reporting Contract Work Hours and Safety Standards Act Chapter 9. Key Points

Chapter 10: Monitoring Construction Contracts

Performance and Payment Bonds Contractor Inspection Clauses COR Labor Compliance Checking Correction of Deficiencies Liquidated Damages Differing Site Conditions Contractual Rights of the Government Progress Payments

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Suspension of Work Chapter 10. Key Points

Chapter 11: Foreign Acquisition and International Relationships

Domestic Trade International Trade Prohibited Sources U.S. Domestic Preference Legislation The Buy American Act Coverage of the Buy American Act Exceptions to the Buy American Act The Berry Amendment Trade Agreements International Relationships Business Culture Additional Guidance Chapter 11. Key Points

Appendices

Appendix A. Forms Appendix B. Contract Planning and Source Selection Appendix C. COR Qualifications and Training Appendix D. Acronyms and Terms Appendix E. COR Resources and References Appendix F. COR Checklists Appendix G. Metric Conversion Table

Figures

Figure 4-1. Acquisition Team Functions Figure 4-2. Acquisition Process by Activity Figure 6-1. Risks of Firm-Fixed-Price versus Cost-Reimbursable Contracts Figure 6-2. Contract Structure Figure 7-1. The Contracting Process Figure 11-1. A Comparison of the Berry Amendment and the Buy American Act

Tables

Table 5-1. General COR/Requiring Activity and Contracting Office Responsibilities Table 6-1. Contract Types

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