DEFENSE PROCUREMENT AND ACQUISITION POLICY PROCURE-TO-PAY TRAINING SYMPOSIUM Improving Contract Quality Presented by: D. Bruce Propert, DPAP May 30 June 1, 2017 Hyatt Regency Orlando FL 1
PDS Validations Data formats and required data elements Data elements required due to other elements E.g. cost plus fixed fee contract must have estimated cost and fixed fee Validation against authoritative lists SAM, DODAAD, etc. Units of measure, currencies, country codes, etc. Clauses Used to validate another data element, e.g. clauses allowing ceiling prices Selected clauses that had been flagged as being of interest Scorecards, IG finding - 52.222-50 Combating Trafficking in Persons*, White House query - 52.232-40 Providing Accelerated Payments to Small Business Subcontractors Expansion to add all possible remaining clause validations being phased in starting in August. 2017 Procure-to-Pay Training Symposium 2
Q2 FY17 PDS Validations - Awards 81,071 Awards 746,907 Awards 2017 Procure-to-Pay Training Symposium 3
Non-Clause Fatal Errors (non DLA) Q2 FY17 2017 Procure-to-Pay Training Symposium 4
Non-Clause Warning Errors (non DLA) Q2 FY17 2017 Procure-to-Pay Training Symposium 5
Clause Errors (non DLA) Q2 FY17 39% Purchase Card 2017 Procure-to-Pay Training Symposium 6
Issue Top WAWF CDR reasons % CDRs Payment Office, Admin Office Assignment* 18.5% Clauses* 10.9% Inspection/Acceptance* 9.4% Line of Accounting 8.4% Missing Pages or Attachments 9.2% Payment Instructions* 7.0% Math Errors* 4.4% All Other 32.2% * Current or future PDS validations 2017 Procure-to-Pay Training Symposium 7
Selected Error Details Fatal errors Quantity and Unit of Measure Pricing Zero values Invalid DODAAC or MAPAC Invalid DUNS or CAGE Missing addresses Warnings SIC should not be used Non-deliverable item with delivery information Supply with Period of Performance $1 unit price Lot Back up Clauses NAICS 42, 43, 44, 45 2017 Procure-to-Pay Training Symposium 8
Quantity and Unit of Measure Error message examples: <UnitOfMeasure> is required when <Quantity> is provided. For the product or services ordered on line '4001', the value 'Dollars, U.S.' is invalid for <UnitOfMeasure> DFARS PGI 204.7103: Line items a "shall include a description of the item or service being procured, the associated Product or Service Code (PSC), the quantity, a unit of measure, defined acceptance and inspection locations and requirements, and the delivery schedule or performance period." "The list of available units of measure is on the Defense Procurement and Acquisition Policy website at http://www.acq.osd.mil/dpap/pdi/eb/docs/line_item_uom_list.xlsx." 2017 Procure-to-Pay Training Symposium 9
Pricing Error message examples: When <PricingArrangementBase> is 'Firm Fixed Price' then an iteration of <GroupOtherAmounts/ItemOtherAmounts> or <LineItemAmounts/ItemOtherAmounts> where <AmountDescription> = 'Firm Price' is required. When <PricingArrangementBase> is 'Cost Plus Fixed Fee' then an iteration of <GroupOtherAmounts/ItemOtherAmounts> or <LineItemAmounts/ItemOtherAmounts> where <AmountDescription> = 'Fixed Fee' is required. Causes Placeholder line items - do not use "Reserved" line items Unpriced options Improper pricing, e.g. FFP not to exceed 2017 Procure-to-Pay Training Symposium 10
Error message examples: Zero values The value '0' is not a valid entry for <UnitPrice>. It must be greater than zero. For the product or service ordered on line '0001' the value '0' is not a valid entry for <Quantity>. It must be greater than zero. Causes Not separately priced line items Informational line items 2017 Procure-to-Pay Training Symposium 11
Error message examples: Invalid DODAAC or MAPAC The value 'B6R0TP2' is not a valid entry for <DoDAAC>. It must be 6 alphanumeric characters (0-9, A-Z). Position 1 must be 0-9, A-Z but not B-E, I, K, L, O, P, Q, T, U, or X. Positions 1 and 2 cannot be HG, SD or Z0. The value 'W80PUW' for <DoDAAC> must be active in the authorized DoDAAC list provided by the DAASC Inquiry System. It was deleted on '2017-01-17'. Procurement Instrument Effective Date is '2017-05-19'. The value 'FA6201' for <DoDAAC> must have the Procurement Authority Flag set to "Y" in the authorized DoDAAC list provided by the DAASC Inquiry System. Causes Use of other codes mislabeled as DODAAC (USACE codes, CAGE, MAPAC) Expired codes Offices not registered to do task. 2017 Procure-to-Pay Training Symposium 12
Error message examples: Rules Invalid DUNS or CAGE Generic <DunsNumber> '123456787' cannot be used when <AddressDescription> is 'Contractor'. (FAR 4.605(b)(2), PGI 204.6) The value '054982855' for <DunsNumber> must be in the authorized DUNS list provided by the US Federal System for Award Management (SAM). The value '05606' for <DataValue> is not in the Defense Logistics Agency Commercial and Government Entity (DLA CAGE) system. FAR 4.1802(a)(2)(2) "The contracting officer shall include the contractor s CAGE code in the contract and in any electronic transmissions of the contract data to other systems when it is provided in accordance with paragraph (a)(1) of this section." FAR 4.1803 "Contracting officers shall verify the offeror s CAGE code by reviewing the entity s registration in the System for Award Management (SAM). For entities not required to be registered in SAM, the contracting officer shall validate the CAGE code using the CAGE code search feature at https://www.cage.dla.mil. " 2017 Procure-to-Pay Training Symposium 13
Error message examples: Missing Address Codes When <AddressDescription> = 'Acceptance Location', <Address/OrganizationID/DoDAAC> must be provided. When <AddressDescription> = 'Ship To', at least one of <Address/OrganizatonID/Cage>, <Address/OrganizationID/DoDAAC>, <Address/OrganizationID/DunsNumber>, <Address/OrganizationID/Duns4Number>, or <Address/OrganizationID/Mapac> must be provided. When <AddressDescription> = 'Contractor', <Cage> must be provided. DFARS PGI 204.7103(a) "(3) Delivery and acceptance locations shall be defined using Activity Address Codes published in (1) DoD Activity Address Directory (DODAAD), DoD 4000.25-6-M, or (2) Military Assistance Program Address Directory System (MAPAD), DoD 4000.25-8-M and available for verification at https://www.daas.dla.mil/daasinq/default.asp. (4) No activity shall be assigned acceptance responsibility unless that activity has acceptors registered in Wide Area WorkFlow (WAWF). Available roles for an Activity Address Code can be verified at the Active DoDAACs & Roles link on the WAWF homepage at https://wawf.eb.mil/" [future validation] 2017 Procure-to-Pay Training Symposium 14
SIC should not be used Error message: <ReferenceDescription> "Standard Industry Classification (SIC) Code" should not be used. SIC was replaced by the North American Industry Classification System (NAICS) effective 1 Oct 2000. (Federal Register 65 FR 30836) SPS data maintenance is removing the values from the tables 2017 Procure-to-Pay Training Symposium 15
Non-Deliverable Item with Delivery Information Error message examples: When <LineItemType> is 'INFOSLIN', <ReferenceDescription> cannot be 'Product Service Code'. <Delivery> cannot be provided when <LineItemType> is 'INFOSLIN'. <Quantity> and <UnitOfMeasure> must be provided when either <Delivery> or <LineItemDates> for a lease or period of performance is provided. Causes For incrementally funded lines, including the estimated period of performance for the allotted funding as the period of performance? 2017 Procure-to-Pay Training Symposium 16
Supply with Period of Performance Error message: When <ProductOrService> = 'Personal Property', it cannot have <LineItemDateDescription> = 'Period of Performance'. Causes Annual Software Licenses or Maintenance Agreements using product PSCs, instead of service, e.g. PSC 5895 instead of D319. Contracts for leases are using product PSCs instead of service, e.g. 310 instead of W018. Using the PSC for the item being shipped instead of the PSC for the shipping. Using PoP when a Delivery Date should be used. 2017 Procure-to-Pay Training Symposium 17
Error message examples: $1 unit price The Supply line item has a unit price of $1. The Product Service Code is '2320'. The non-supply line item has a unit price of $1. The Product Service Code is 'C211'. Causes Ordering limits being carried onto order Badly structured line item requirements Attempts to portray cost type line items as firm fixed price 2017 Procure-to-Pay Training Symposium 18
Lot Error message: Use of "Lot" for PSC '1260' is not appropriate. A unit of measure that identifies the type of item being purchased and the corresponding quantity must be used. PSC 1260 Fire Control Designating and Indicating Equipment Includes: Turret, Gun, Torpedo Mount, and Searchlight Indicating Equipment; Target Designating Equipment; Synchro Systems. 2017 Procure-to-Pay Training Symposium 19
Back up Other Clause Requirement Details 2017 Procure-to-Pay Training Symposium 20
DFARS 252.203-7000 Requirements Relating to Compensation of Former DoD Officials As prescribed in DFARS 203.171-4, "Use the clause at 252.203-7000, Requirements Relating to Compensation of Former DoD Officials, in ALL solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items." 21
DFARS 252.203-7002 Requirement to Inform Employees of Whistleblower Rights As prescribed in DFARS 203.970, "Use the clause at 252.203-7002, Requirement to Inform Employees of Whistleblower Rights, in all solicitations and contracts." 2017 Procure-to-Pay Training Symposium 22
DFARS 252.203-7003 As prescribed in DFARS 203.1004, "Use the clause at 252.203-7003, Agency Office of the Inspector General, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that include the FAR clause 52.203-13, Contractor Code of Business Ethics and Conduct." 2017 Procure-to-Pay Training Symposium 23
DFARS 252.204-7005 As prescribed in DFARS 204.404-70, "Use the clause at 252.204-7005, Oral Attestation of Security Responsibilities, in solicitations and contracts that include the clause at FAR 52.204-2, Security Requirements." 2017 Procure-to-Pay Training Symposium 24
DFARS 252.204-7012 As prescribed in DFARS 204.7304, "Use the clause at 252.204-7012, Safeguarding Covered Defense Information and Cyber Incident Reporting, in all solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, except for solicitations and contracts solely for the acquisition of COTS items." The purpose of the DFARS rule 204.73 and associated clause is to protect both unclassified controlled technical information provided by the government and that created by the contractor as part of their normal business. 25
Clause '252.211-7003' As prescribed in DFARS 211.274-6 (a)(1), Use the clause at 252.211-7003, Item Unique Identification and Valuation, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, for supplies, and for services involving the furnishing of supplies, unless the conditions in 211.274-2(b) apply. 211.274-2(b)(1) Contingency operations or recovery from nuclear, chemical, or biological attack 211.274-2(b)(2) D&F executed by HCA (or CAE for ACAT I) PSC is being used to determine whether the items are supplies
DFARS 252.216-7006 DFARS Ordering clause provides for issuance of orders electronically via posting to EDA As prescribed in 216.506(a), "insert the clause at 252.216-7006, Ordering, in lieu of the clause at FAR 52.216-18, Ordering, in solicitations and contracts when a definitequantity contract, a requirements contract, or an indefinitequantity contract is contemplated." 27
Combating Trafficking in Persons Clauses 52.222-50 - Combating Trafficking in Persons is to be used in all solicitations and contracts. It is bundled within clause 52.212-5 - Contract Terms and Conditions Required to Implement Statutes or Executive Orders Commercial Items and also in 52.213-4 Terms and Conditions Simplified Acquisitions (Other Than Commercial Items). Therefore, as long as one of the three clauses exist based on the purchase, the clause requirement has been fulfilled. 28
FAR 52.223-18 FAR 52.223-18 - Encouraging Contractor Policies to Ban Text Messaging While Driving, is to be used in all solicitations and contracts. However, it is actually bundled within clause 52.212-5 - Contract Terms and Conditions Required to Implement Statutes or Executive Orders Commercial Items. Therefore, as long as either clause exists based on the purchase, the clause requirement has been fulfilled. 2017 Procure-to-Pay Training Symposium 29
DFARS 252.225-7048 As prescribed in DFARS 225.7901-4, use clause 252.225-7048, Export-Controlled Items, on all solicitations and contracts. 2017 Procure-to-Pay Training Symposium 30
FAR 52.232-40 As prescribed in 32.009-2, "Insert the clause at 52.232-40, Providing Accelerated Payments to Small Business Subcontractors, in all solicitations and contracts." It is bundled within clause 52.212-5 - Contract Terms and Conditions Required to Implement Statutes or Executive Orders Commercial Items and also in 52.213-4 Terms and Conditions Simplified Acquisitions (Other Than Commercial Items). Therefore, as long as one of the three clauses exist based on the purchase, the clause requirement has been fulfilled. 2017 Procure-to-Pay Training Symposium 31
DFARS 252.232-7003 Per DFARS 232.7004 - Except as provided in 232.7002(a), use the clause at 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items. Contracts paid via purchase card (Pay Office code CRCARD ) still require this clause. There has been a common misconception that these are excluded. The text of the clause limits its applicability to submission of the receiving report, which is required to document delivery for audit. 32
DFARS 252.241-7001 As prescribed in DFARS 241.501-70(b), "use the clause 252.241-7001 Government Access, in solicitations and contracts that include the clause FAR 52.241-5, Contractor's Facilities." 2017 Procure-to-Pay Training Symposium 33
FAR 52.245-1 As prescribed in FAR 45.107(a), insert the clause in "All cost reimbursement and time-and-material type solicitation and contracts, and labor-hour solicitations when property is expected to be furnished for the labor-hour contracts." A common issue seen is the use of a cost line item for travel without the use of clause 52.245-1. The clause is required if any COST type line item exists. 2017 Procure-to-Pay Training Symposium 34
Government Property DFARS Clauses The following clauses must all exist if at least one of them exists. The multiple rules for Government Property can be found in FAR 45.107(a) and DFARS 245.107 and DFARS 211.274-6. 52.245-1 252.211-7007 252.245-7001 252.245-7002 252.245-7003 252.245-7004 35
NAICS 42, 43, 44, 45 Error message: <ReferenceValue> = '423430' is not valid when <ReferenceDescription> is 'North American Industry Classification System (NAICS)'. Must be 6 numeric digits and cannot begin with 42, 43, 44, or 45. In accordance with 13 CFR 121, Merchant Wholesalers and Retail Trade vendors should utilize the manufacturer NAICS and indicate that they are a non-manufacturer in SAM. Example: ebooks were purchased under NAICS 424920 (Book, Periodical, And Newspaper Merchant Wholesalers). NAICS 511130 (Book Publishers) is one example of an equivalent manufacturing NAICS. 2017 Procure-to-Pay Training Symposium 36
DEFENSE PROCUREMENT AND ACQUISITION POLICY PROCURE PAY TRAINING TO SYMPOSIUM May 30 June 1, 2017 Hyatt Regency Orlando FL 37