Subject Area Management and Operating (M&O) Contract Management and Administration

Latest MS Specific Document Revision Date 11/14/2021
Latest MS Total Biennial Review Completed 11/14/2021
SCMS Revision 5.1

1.0 Introduction

The management of an Office of Science (SC) Management and Operating (M&O) contract is performed through the combined efforts of SC staff from Headquarters (HQ), SC Site Offices, and the SC Consolidated Service Center (CSC) and involves a variety of administrative, legal, assessment, and reporting activities. This phase of contract management starts after the contract is awarded and continues until a contract is closed out (see SC Subject Area: Management and Operating (M&O) Contract Life Cycle).

The SC Site Office Manager serves as the U.S. Department of Energy (DOE) line manager accountable for the management of the M&O contract and oversight of the day‑to‑day activities at the Laboratory under their cognizance. The SC Site Office Manager also serves as DOE's principal point of contact to the M&O contractor management. The SC Contracting Officer (CO) within the SC Site Office has the legal contracting responsibility for contract administration. SC Staff in the SC Site Office, the SC ISC and HQ carry out a variety of oversight activities that are prescribed by DOE regulations, DOE Directives (e.g., DOE Orders, DOE policy documents), the Prime Contract between DOE and the M&O contractor. This staff consists of, but is not limited to COs, contract specialists, safety and operations specialists, legal, project management, business, environmental, property, finance individuals.

This subject area describes how SC Federal staff administers a contract and facilitates the performance of the M&O contractor by the following:

• Establishing formal requirements and expectations through the contract,
• Monitoring and evaluating contractor performance against those expectations,
• Providing feedback to the contractor through a variety of formal and informal mechanisms during the year,
• Holding the contractor accountable for performance,
• Preparation, review, submittal, and comment resolution of/for Independent Review Board (IRB) packages,
• Obtaining approval of M&O contractor Buy American Act (BAA) Non-Availability Determinations, and
• Obtaining approval of M&O contractor requests for approval of subcontractor and third-party indemnity provisions

Procedures in this subject area amplify established SC processes and management expectations for the performance of particular Federal functions and reflect process that require the participation of several organizations within SC or DOE.

The major components of contract management and administration are described below:

1.1  Managing Contract Requirements and Expectations

Managing contract requirements and expectations includes: (1) the creation of a Contract Management Plan (CMP), (2) the establishment of an annual Performance Evaluation and Measurement Plan (PEMP) under the SC Laboratory Performance Appraisal Process, (3) the management of changes to the contract requirements and/or expectations through contract modifications, and (4) the processing of work authorizations, such as those required for DOE work and Work for Others (WFO), approval of subcontracts, and the approval of the Laboratory Directed Research and Development (LDRD) funding levels and individual projects. This subject area includes SC procedures on these processes. The CMP is a living document for the management of existing contract requirements and expectations and does not establish new, or change the existing contract requirements. The other documents and processes described above may set new expectations and requirements through the contract that DOE must assure are met.

At the same time, SC staff has many key Federal responsibilities and deliverables that are critical to the success of the contractor. This includes activities such as (1) signing permits as the facility owner, (2) reviewing and approving key operations documents, (3) approving work authorizations in a timely manner, and (4) communicating with stakeholders to gain support for a program or to resolve issues with a regulatory agency. These services are covered by procedures in this subject area and many other subject areas in the Office of SCience Management System (SCMS).

1.2  Contract Performance Monitoring, Evaluation, and Feedback

Contract performance monitoring, evaluation, and feedback are the essence of day‑to‑day operations at a site office and key drivers for the on‑site presence of Federal staff. DOE Headquarters (HQ) Program Office Staff also contribute to performance monitoring and feedback for the science and technology reports and deliverables. SC staff evaluates contractor performance in meeting contractual requirements and expectations.

Performance monitoring occurs through the evaluation and 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: (1) facility representative walk‑throughs, (2) SC Site Office Staff operational awareness activities, (3) program and project reviews that approve key contract milestones, (4) performing personal and real property inspections, and (5) accepting completed projects for startup. These types of activities are described in management systems throughout SCMS.

Performance feedback is provided to the contractor through formal periodic appraisals and other feedback mechanisms, including informal mechanisms, so that deficiencies are understood and corrected. This process involves formal communication of performance results to the contractor. These include results obtained from monitoring activities along with the year‑end formal contract “Report Card” described in Procedure 5, Developing and Executing the SC Laboratory Performance Appraisal Process, on the SC Guidance: SC Laboratory Performance Appraisal Process. Feedback processes must also include effective corrective action and issues management processes and the use of contract accountability tools, such as (1) stop work, (2) adjustments to the scope of work, (3) revocation of management system approvals, (4) limitations on delegated approval thresholds, (5) adjustments to assessment frequencies, (6) Price Anderson Amendment Act (PAAA) enforcement, and (7) conditional payment of fee or contract award term. These actions are reserved for significant performance shortcomings. The basis for taking these actions should be firmly supported by feedback of performance results formally communicated to the contractor. In all cases, it is imperative that Federal staff responsible for the oversight of an M&O contract refer to the specific applicable contract clauses to understand any contract specific processes, authorities, and limitations.

The other SC Management Systems and the SC Program Description: Line Management Oversight support the monitoring and evaluation of the M&O contractor performance against the contractor requirements and expectations and contain processes that can provide input to the SC Management System: Management and Operating (M&O) Contracting. It is important to consider inputs and evaluations of performance from all of the other SCMS Management Systems when completing the periodic and the end‑of‑year contractor evaluations. The evaluation of the contractor’s overall performance throughout the year then provides input back to the process to set expectations.

1.3  Routine Administrative Approvals for Site Office and M&O Actions

Review by the SC M&O IRB is required for all M&O prime and subcontract acquisition actions with a total estimated value greater than $25 million (Head of Contracting Authority (HCA) delegated authority). Actions exceeding $50 million will be submitted to the Office of Contract Management (MA-62) for possible Business Clearance Review (BCR) selection (see DOE Acquisition Guide Chapter 71.1).

Department of Energy Regulation (DEAR) clause 970.5244-1(g), Contractor Purchasing System requires M&O contractors to obtain approval for individual Non-Availability Determinations in excess of $500,000 from the SC, HCA. The HCA has delegated this authority to the Manager of the Consolidated Service Center (CSC), who further redelegated this authority to the CSC, Office of Grants and Cooperative Agreements, Assistant Manager.

DEAR clause 970.5244-1(I), Contractor Purchasing System requires M&O contractors to obtain the SPE approval prior to providing indemnification to any M&O subcontractor. The SPE has delegated this authority to the SC, HCA, who further redelegated this authority to the Director, Office of Acquisition Management

2.0 Contents

3.0 Exhibits/Forms

This section is sorted alphabetically. Any gaps in numbering are due to canceled Exhibits.

• Example of a Cooperative Research andDevelopment Agreement (CRADA) Approval Checklist (Exhibit 1)
• Memorandum from Raymond L. Orbach, Under Secretary for Science, to Distribution, titled "Laboratory Directed Research and Development," dated 06/19/2006 (Exhibit 2)
• Example of a Joint Work Statement (JWS) ApprovalChecklist (Exhibit 4)
• Roles and Responsibilities for Procedure 1,"Preparing and Approving a Contract Management Plan" (Exhibit 5)
• DOE F 4220.10, Congressional, Public, andIntergovernmental Affairs (CP) Notification (Exhibit 6)
• Sample Work Authorization Form (DOE O 412.1A,Attachment 2) (Exhibit 7)
• Example of a Joint Work Statement (DOE O 483.1A,Attachment 6) (Exhibit 8)
• Example of a Cooperative Research andDevelopment Agreement (DOE O 483.1A, Attachment 9) (Exhibit 9)
• Transmittal Letter for Directives/RequirementsImpacts (Example) (Exhibit 10)
• Business Clearance Call Letter (Example) (Exhibit 19)
• Example of On-Site Review Outline of the Site Office Management/Oversight of the Laboratory Work for Others (WFO) Program (Exhibit 20)
• SC-CH O 541.1E, "Contracting Authority andResponsibilities," dated 07/02/2012 (Example) (Exhibit 21)
• Purchasing System Requirements (Example) (Exhibit 22)
• Individual Major Procurement/Assistance Actionsfor FY 2014 Worksheet (Exhibit 23)
• FY 2014 Submission Summary Worksheet (Exhibit 24)
• Headquarters Business Clearance Process (Exhibit 25)
• Sample IRB Comment Matrix (Exhibit 26)
• IRB Submission Form (Exhibit 27)
• IRB Approval Form (Exhibit 28)
• IRB Review Time Chart (Exhibit 29)
• List of M&O IRB Actions (Exhibit 30)
• Memorandum from the Site Office Manager to the Director, Office of Acquisition Management (Exhibit 31)
• Official Approval Request (Exhibit 32)
• SC Concurrence Process Flowchart – Animal Use (Exhibit 33)
• SC Concurrence Process Flowchart – Foreign Projects (Exhibit 34)

4.0 Related Information

• Acquisition Guide - Chapter 25, Foreign Acquisition

• DEAR 970.1100-1, Performance-Based Contracting

• DEAR 970.1170-2, Contract Provision

• DEAR 970.1707, Strategic Partnership Projects

• DEAR 970.1907, Subcontracting with Small Business, Small Disadvantaged Business, and Woman‑Owned Small Business Concerns

• DEAR 970.44, Management and Operating Contractor Purchasing

• DEAR 970.5204‑2, Laws, Regulations, and DOE Directives

• DEAR 970.5227‑3, Technology Transfer Mission (or local clause)

• DEAR 970.5228-1 - Insurance - Litigation and Claims

• DEAR 970.5244-1(l), Contractor Purchasing System

• DOE Acquisition Guide, Chapter 70, DOE Management and Operating Contracts

• DOE Acquisition Guide Chapter 71.1, Headquarters Business Clearance Process

• DOE Acquisition Letters

• DOE Financial Management Handbook

• DOE G 120.1‑5, Guidelines for Performance Measurement

• DOE O 130.1, Budget Formulation

• DOE M 135.1‑1A, Department of Energy Budget Execution – Funds Distribution And Control Manual

• DOE O 241.1B, Change 1, Scientific and Technical Information Management

• DOE P 450.4A, Change 1, Integrated Safety Management Policy

• DOE O 452.1E, Nuclear Explosive and Weapon Surety Program

• DOE O 452.2E, Nuclear Explosive Safety

• DOE O 452.4C, Security and Use Control of Nuclear Explosives and Nuclear Weapons

• DOE M 481.1‑1A, Change 1, Reimbursable Work for Non‑Federal Sponsors Process Manual

• DOE O 522.1A, Pricing of Departmental Material and Services (for CRADA Funds‑In)

• DOE O 534.1B, Accounting

• DOE O 541.1C, Appointment of Contracting Officers and Contracting Officer Representatives

• FAR 6, Competition Requirements

• FAR 9, Contractor Qualifications

• FAR 15, Contracting by Negotiation

• FAR 17.5, Interagency Acquisitions under the Economy Act

• FAR 17.6, Management and Operating Contracts

• FAR Part 25, Foreign Acquisition

• FAR 28, Bonds and Insurance

• FAR 30, Cost Accounting Standards Administration

• FAR 31, Contract Cost Principles and Procedures

• FAR 35.017, Federally Funded Research and Development Centers (FFRDCs)

• FAR 37.6, Performance-Based Acquisition

• FAR 43, Contract Modifications

• FAR 44.2, Consent to Subcontracts

• FAR 52.252‑6, Authorized Deviations in Clauses

• The Presidential Memorandum – Accelerating Technology Transfer and Commercialization of Federal Research in Support of High Growth Businesses, dated 10/28/2011

• P.L. 83‑303 (42 U.S.C. 2011 et seq.), Sections 31, 32, and 33, Atomic Energy Act of 1954, As Amended

• P.L. 83‑703 (42 U.S.C. 2103, 2051, and 2053), The Atomic Energy Act of 1954, As Amended

• P.L. 93‑438, Section 205, (42 U.S.C. 5845), Energy Reorganization Act of 1974

• P.L. 95‑39 (Section 303), An Act for Authorizations and Appropriations for the Energy Research and Development Administration for FY1977

• P.L. 101‑510, Section 3132 (c), National Defense Authorization Act for Fiscal Year 1991

• P.L. 106‑65, Title XXXII, National Nuclear Security Administration Act

• Process Change to Animal Use Projects Memorandum 9-20-2017

• SC Guidance: SC Laboratory Performance Appraisal Process

• SC Institutional Review—Animal Use Worksheet

• SC Institutional Review—Foreign Work Analysis Worksheet

• SC Office of Laboratory Policy and Evaluation (SC-32) Website (NOTE: This website has the Report Cards.)

• SC Subject Area: Management and Operating (M&O) Contract Life Cycle

• The Secretarial Policy Statement on Technology Transfer at DOE Facilities, dated 02/28/2011

• 31 U.S.C. 1535, The Economy Act of 1932, As Amended

5.0 Requirements

6.0 Definitions

A

Amendment

A change to a U.S. Department of Energy approved Joint Work Statement (JWS) and/or Cooperative Research and Development Agreement (CRADA) document.

Approved Funding Program (AFP)

A document issued to U.S. Department of Energy organizations setting forth the funds available for obligation and expenditure (not to exceed the amount allotted) in each appropriation account. It specifies obligation control levels applicable to each program, project, or activity (PPA). The AFP is a detailed breakdown of allotments for program management purposes. The Chief Financial Officer (CFO) issues AFPs for operating expenses, construction, and reimbursable work monthly.

C

Contract Management Plan (CMP)

A contract management tool that describes the procedures and processes a Site Office will utilize to assure that the terms and conditions of the Management and Operating (M&O) contract are met by the Contractor and the Department of Energy (DOE). The procedures and processes addressed in the CMP are those necessary to 1) fulfill the Government's contract management responsibilities, and 2) to ensure that the Contractor's performance is adequately monitored and documented. The CMP is intended solely to provide information. It shall not be construed to create any rights or obligations on the part of any person or entity, including the Contractor and its employees.

Contract Management Team

A multi-disciplinary team consisting of Office of Science (SC) Site Office and SC Integrated Support Center subject matter experts, functional area representatives and Contracting Officer(s) that manage the various contract administration aspects of the management and operating contract.

Contract Modification

"Contract modification" means any written change in the terms of a contract (see 43.103). Only Contracting Officers acting within their delegated authority may modify a contract or change a contractual commitment on behalf of the government. There are two types of contract modifications: unilateral and bilateral. Unilateral modifications are signed only by a Contracting Officer, and bilateral modifications (supplemental agreements) are signed by both a Contracting Officer and a contractor. A bilateral modification can add new work or revise existing terms, and it may have cost implications.

Contracting Authority

An organizational element that has the authority to award and administer contracting and financial assistance instruments.

Contracting Officer (CO)

An employee of the agency with the authority to legally bind the government by signing a contractual instrument. A CO has the authority to enter into, administer, and terminate contracts and make related determinations and findings; includes certain authorized representatives of the CO acting within the limits of authority as delegated by the CO. The CO is the only one that can accept nonconforming work, change scope, or alter schedule. See FAR 1.602, Career Development, Contracting Authority, and Responsibilities - Contracting Officers.

Contracting Officer's Representative (COR)

An individual designated in accordance with the Federal Acquisition Regulation and authorized in writing by the Contracting Officer to perform specific technical or administrative functions. The written designation will specify the extent of the COR's authority to act on behalf of the Contracting Officer. The COR is not authorized to make commitments or changes that will affect price, quantity, delivery, or any other term or condition of the contract. See FAR 1.604, Career Development, Contracting Authority, and Responsibilities - Contracting Officer's Representative (COR).

Cooperative Research and Development Agreement (CRADA)

Any agreement between one or more Federal facilities and one or more non Federal parties under which the Government, through its facilities, provides personnel, services, facilities, equipment, intellectual property, or other resources with or without reimbursement (but not funds to non Federal parties) and the non Federal parties provide funds, personnel, services, facilities, equipment, intellectual property, or other resources toward the conduct of specified research or development efforts that are consistent with the mission of the facility; except that such terms do not include a procurement contract or cooperative agreement.

D

Designated Authority

The approval threshold for a Contracting Officer (e.g., Prime Contracts $5M, Subcontracts $10M, Sales $1M) that is described on the Contracting Officer's warrant or through appointment memorandum.

E

Export Control

Categories of specific information and/or technologies that have been deemed as sensitive to the national security of the United States and its allies and are subject to export control and other restrictive measures.

F

Funds In

Monies provided by a participant(s) to a U.S. Department of Energy contractor for a Cooperative Research and Development Agreement (CRADA) project.

H

Head of the Contracting Activity (HCA)

Head of a U.S. Department of Energy (DOE) element who has been delegated authority by the DOE Headquarters Deputy Assistant Secretary for Procurement and Assistance Management/Senior Procurement Executive to (1) award and administer contracts, sales contracts, and/or financial assistance instruments; (2) appoint Contracting Officers; and (3) exercise the overall responsibility for managing the Contracting Activity.

I

In Kind Contributions

Non cash contributions provided by the participant or contractor. In kind contributions must include collaboration in the research and development efforts of the Cooperative Research and Development Agreement (CRADA) and may also include personal property (equipment and supplies), capital equipment, work to be performed at either party's facilities, real property, or services that are directly beneficial, specifically identifiable, and necessary for the performance of the project. In kind contributions generally do not include work performed prior to execution of the CRADA.

J

Joint Work Statement (JWS)

A proposal prepared for a Federal agency by the director of a Government Owned, Contractor Operated (GOCO) facility (or his or her delegate) describing the purpose, scope, schedule, and estimated cost of a proposed Cooperative Research and Development Agreement (CRADA); assigning responsibilities among the agency, contractor, and any other party or parties to the proposed agreement; and, to the extent known, assigning rights among the various parties.

M

Model Cooperative Research and Development Agreement (CRADA)

The Model CRADA is a tool developed to be responsive to the needs of different CRADA participants while protecting the interests of the Government and U.S. taxpayers. It provides a compendium of provisions which may be drawn upon for developing CRADA documents. The Model CRADA is to be used by U.S. Department of Energy and its Management and Operating (M&O) contractors to facilitate the negotiation, development, and timely approval of CRADAs. CRADAs submitted for DOE approval must identify all deviations from the double-underlined provisions or pre- approved optional provisions of the Model CRADA and substantive deviations should be supported by appropriate justification.

R

Report Card

A document, posted on the Office of Science (SC) Website, providing the laboratory contractor's grade earned for each Goal within the Performance Evaluation and Measurement Plan (PEMP).

S

SC Laboratory PEMP Review Board

The SC Laboratory Contract PEMP Review Board is chartered to review all SC laboratory contract PEMPs for completeness, conformance with SC guidance, and recommend SC senior management concurrence. The Review Board shall include members from the following organizations which shall be rotated as indicated below:
SC Office of Laboratory Policy and Evaluation, Chair
Two SC Site Office Representatives (2-year rotational position)
Two SC Program Office representatives (2-year rotational position)
SC Integrated Service Center Procurement Specialist (2-year rotational position)

U

U.S. Department of Energy (DOE) Office of Procurement and Assistance Management, Field Assistance and Oversight Division (MA-621) Liaison

This position is also referred to as "HQ Buddy", the individual designated at the DOE HQ MA-621 Director to provide guidance, review, and approval of procurement-related issues.