Contract Administration II

Course Description

This FAI-compliant course is the last of a three-part series in Intermediate Contracting designed to provide a more detailed understanding of the subject matter to experienced intermediate-level contracting personnel than the Fundamentals of Contracting course series.

Contract Administration II covers the post-award activities required to manage a contract in more extensive detail than Contract Administration I. Additionally, the course addresses a number of special topics that are not discussed in Contract Administration I.

The course is designed around a comprehensive set of learning objectives that are achieved through lecture-discussion, practical exercises, and case study techniques.

The target audience for this course consists of personnel involved in the contract specialist (GS-1102) career path. Others involved in the administration of complex contracts could also benefit. A minimum of one year of experience in the contracting field is recommended as preparation for this course.

ACE Credit Recommendation

In the lower division baccalaureate degree category, 2 semester hours in Business Administration, Federal Acquisition, Public Administration, Procurement Management, or Purchasing.

Prerequisites

To ensure success, we recommend that students have completed the following courses: Acquisition Planning I, Contract Formation I, Contract Administration I, Price Analysis, Cost Analysis, Federal Contract Negotiation, Acquisition Planning II, and Contract Formation II.

Course Objectives

Upon successful completion of this course, the student will be able to:

• Initiate contract administration
• Provide quality assurance
• Issue contract modifications
• Fulfill payment and accounting duties
• Manage subcontracts
• Administer property
• Terminate a contract
• Make and respond to contract claims
• Close out a contractCourse Contents

Course Content

Lesson 1: Initiating Contract Administration

Given a contract file:

• Prepare to administer the contract.
• Identify contract requirements.
• Recognize the appropriate topics for a post award orientation.

Lesson 2: Modifications and Claims

Given a contract file and a request to modify the contract:

• Recognize the procedures for processing modifications.
• Identify the circumstances prohibiting modification.
• Determine the impact of the proposed modification and consideration required, if any, and apply procedures for completing a modification.
• Determine whether to recommend granting extraordinary relief and the nature and extent of such relief.

Lesson 3: Payment and Accounting

Given various financial management contract scenarios, applicable references, and input from the contractor:

• Describe the invoice payment process.
• Describe the procedures for determining whether to permit an assignment of claims.
• Determine the procedures for making payments based on cost.
• Determine the procedures for administering progress payments based on cost including computation of payment amount and liquidation amount.
• Determine the procedures for administering performance-based payments.
• Identify the procedures for administering advance payments.
• Assess the situation and appraise the procedures for debt collection.
• Identify the steps necessary to approve, disapprove, or request changes to a contractor’s accounting or estimating system.

Lesson 4: Payment

Given regulatory guidance:

• Recognize contractual payment or accounting terms and conditions.
• Identify invoice and payment procedures.
• Identify contract financing and request for assignment of claims.
• Recognize the types of commercial financing and their implications for contract administration.
• Recognize the terms accounting system, estimating system, cost accounting standards, and defective pricing.

Lesson 5: Terminations

Given a contract situation:

• Recognize the similarities and differences between terminations for commercial and noncommercial contracts.
• Determine whether to terminate for convenience for a commercial or noncommercial contract.
• Identify the reasons for a termination for default on a noncommercial contract.
• Determine the adequacy and appropriate remedies for a termination for cause on a commercial contract.
• Prepare a termination notice.

Lesson 6: Contract Closeout

Given a contract scenario:

• Describe the process for properly closing out a contract.
• Recognize when a contract is complete.
• Recognize indications of fraud and exclusion or other civil or criminal offense.
• Perform a contract closeout