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What do production contract reports include?

Some production contracts require a phased schedule for reporting progress on the contract. There is no standard format for a phased schedule, but these schedules often report on the actual amount of time that was required to pass through various stages of the production cycle. The following procedures are documented in a production contract report:

Planning

Purchasing

Plant rearrangements

Tooling

Component manufacture

Subassembly and final assembly

Testing

Shipping.

What is included in R&D contract reports?

Since the primary purpose of research and development (R&D) contracts is to advance scientific and technical knowledge, they represent some unique monitoring problems; thus, the government must closely monitor technical progress. R&D contract reports usually include the following data and descriptions (see FAR 35.002):

Number and names of key personnel working on the project during the reporting period

Facilities currently set aside for the work

Direction of the work

Experiments being conducted

Other work in progress

Positive or negative results of R&D work

Problems encountered.

Efforts taken to resolve problems are discussed in terms of:

Cost

Schedules

Technical objectives.

Reviewing Contractor Requests

What may a COR review of contractor requests reveal?

Contractor requests for government action may indicate that the contract is not running as smoothly as written. By reviewing contractor requests, the COR may determine whether the contractor is:

Complying with a contractual term allowing for a contractor request

Notifying the government of proposed changes to the terms of the contract.

CORs need to be aware of contractor requests that are not a requirement of the contract. Such requests need to be brought to the CO's attention as quickly as possible.

Because the contractor is responsible for the management of the work, the contractor is in the best position to determine when to submit requests to the government. A COR should be prepared to:

Track contractor requests

Provide a timely response to the requests as defined in the contract or in applicable regulations.

Why is a timely response to contractor requests important?

A timely response to contractor requests:

Sets a positive tone for the government/contractor relationship.

Minimizes the amount of contract administration required for contracts that are running smoothly. (An untimely response to a request could cause delays in performance that would increase the administrative effort by both parties.)

Ensures that the contractor is held accountable for delivery and performance terms. The government could be held accountable for delays resulting from untimely responses to contractor requests.

Why does the COR need to document and report meaningful communications with the contractor?

CORs involved in contract administration should report any meaningful communications that they have held directly with the contractor to any other government officials who might be impacted by the communications. Certainly the CO is the first and foremost government official to whom the COR should report, but other individuals, such as the paying office or security personnel, might need to be informed of issues related to the contract. Meaningful, or substantive, communications are communications that include information that might potentially affect:

Performance (i.e., the quality of the contract work)

Contract price

Delivery schedule

Other contract requirements (e.g., quantity, place of delivery, additional security requirements).

A contractor may change how it is performing the contract based on discussions with government officials involved in the contract. The government is usually held responsible for the legal consequences of changes, even if the employee who gave the oral direction to make a change did not have the general authority to make the directed change. It is always best to document all discussions with the contractor and provide a copy of the documentation to the CO.

 
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