1
CON 090 Module 4 Study Guide
Lesson 1 – Initiation of Work
Learning Objectives
TLO: Using Web-based resources, determine the policies and procedures for the initiation of
work.
• Using Web-based resources, determine the policies and procedures for assigning and
performing contract administration.
• Identify parts and sections of the UCF of a selected contract.
• Using Web-based resources, determine the policies and procedures for the postaward
orientation of contractors.
• Find information contained in the FAR/DFARS/DFARS PGI/Class Deviations.
• Provide a citation to the part, subpart, section, subsection, or paragraph level in the
FAR/DFARS/DFARS PGI/Class Deviations to support a position.
1 Lesson 1 –Initiation of Work
, This page intentionally left blank.
Lesson 1 – Initiation of Work 2
, CON 090 Module 4 Student Guide
In-Class Exercise: Contract Administration
1. What is contract administration?
Contract administration means all activities performed by contracting parties that relate to the
performance of a contract and occur after contract award. It includes the initiation of work,
contract performance management, issuance of changes and modifications, approval of payment
requests, contract closeout, and contract termination. Contract administration constitutes a large
part of activity in the government contracting process.
2. What is the purpose of contract administration?
In the broadest sense, the purpose of contract administration is to ensure that the buyer
receives, in a timely manner, the supplies and/or services at the level of quality required by the
contract and that the seller receives payment. This is often easier said than done, as
circumstances can change after contract award that require the contract to be modified. In
Government contracting, user needs could change as a result of technological breakthroughs,
unanticipated threats, or program cancellations. As such, a good deal of contract administration
activity involves adapting to changing circumstances.
3. Are all Government contracts administered the same way?
The level of contract administration varies depending on the nature of the work, the type of
contract, and the experience of the contractor. For example, a routine purchase of a commercial
item from an established contractor may involve just acceptance of the item and payment,
whereas a multi-billion dollar cost-plus incentive-fee contract for the development of a major
weapon system may involve a team of contract administrators, engineers, quality assurance
specialists, auditors, testers, auditors, and cost/price analysts performing a multitude of tasks.
Other factors that may affect the level of contract administration activity are the urgency of the
delivery schedule and the criticality of the program that the contract supports, the extent of
subcontracting, and the complexity of contract financing arrangements, et. al.
4. What are the keys to successful contract administration?
The first key to successful contract administration is to plan for contract administration as
early as possible in the acquisition. If those responsible for performing contract administration
are aware of their responsibilities and can execute them competently, the probability of
successful contract administration is increased. The second key to successful contract
administration is to develop a good working relationship with the contractor. Problems often
arise that were not contemplated by the parties when they entered into the contract. As such, a
good working relationship will foster collaborative solutions to problems before they escalate
into legal controversies. Cooperation by the parties is not only vital to successful contract
performance—it is also a legal requirement. Lastly, a well-written contract that clearly
delineates the rights and responsibilities of the parties is vital to successful contract
administration.
3 Lesson 1 –Initiation of Work
, 5. What is the Defense Contract Management Agency (DCMA)?
DCMA was established to perform contract administration for the Department of Defense
(DoD). DCMA has various contract management offices located throughout the world and
performs an array of services including acquisition planning support, contract management,
financial services, engineering support services, property management, quality assurance and
product acceptance, software acquisition management, et.al. While some other organizations
perform specialized contract administration, DCMA performs the lion’s share of contract
administration in DoD. Contract administration offices throughout the Federal Government are
listed in the Federal Directory of Contract Administration Services Components, which is
maintained by DCMA.
DCMA video titled “What DCMA Does”
http://static.dvidshub.net/media/video/1606/DOD_103402691/DOD_103402691-1280x720-2765k.mp4.
6. How does the contracting officer formally establish all contract administration
responsibilities?
Although not required by regulation, it is good business practice to formally establish all
contract administration responsibilities in a contract administration plan (CAP). A CAP should
be designed to facilitate effective and efficient contract administration considering:
• The required level of contract surveillance;
• Contract terms and conditions related to administration;
• Contractor performance milestones;
• Government performance milestones (e.g., for providing Government furnished property
or responding to contractor plans and other required submissions);
• Contractor reporting procedures;
• Contract quality requirements;
• Name, position, and authority of contract administration team members; and
• Milestones for any reports required from contract administration team members.
Plan documentation should meet agency and activity requirements and good business practice. The
next exercise introduces some specific elements affecting contract administration planning.
Lesson 1 – Initiation of Work 4
CON 090 Module 4 Study Guide
Lesson 1 – Initiation of Work
Learning Objectives
TLO: Using Web-based resources, determine the policies and procedures for the initiation of
work.
• Using Web-based resources, determine the policies and procedures for assigning and
performing contract administration.
• Identify parts and sections of the UCF of a selected contract.
• Using Web-based resources, determine the policies and procedures for the postaward
orientation of contractors.
• Find information contained in the FAR/DFARS/DFARS PGI/Class Deviations.
• Provide a citation to the part, subpart, section, subsection, or paragraph level in the
FAR/DFARS/DFARS PGI/Class Deviations to support a position.
1 Lesson 1 –Initiation of Work
, This page intentionally left blank.
Lesson 1 – Initiation of Work 2
, CON 090 Module 4 Student Guide
In-Class Exercise: Contract Administration
1. What is contract administration?
Contract administration means all activities performed by contracting parties that relate to the
performance of a contract and occur after contract award. It includes the initiation of work,
contract performance management, issuance of changes and modifications, approval of payment
requests, contract closeout, and contract termination. Contract administration constitutes a large
part of activity in the government contracting process.
2. What is the purpose of contract administration?
In the broadest sense, the purpose of contract administration is to ensure that the buyer
receives, in a timely manner, the supplies and/or services at the level of quality required by the
contract and that the seller receives payment. This is often easier said than done, as
circumstances can change after contract award that require the contract to be modified. In
Government contracting, user needs could change as a result of technological breakthroughs,
unanticipated threats, or program cancellations. As such, a good deal of contract administration
activity involves adapting to changing circumstances.
3. Are all Government contracts administered the same way?
The level of contract administration varies depending on the nature of the work, the type of
contract, and the experience of the contractor. For example, a routine purchase of a commercial
item from an established contractor may involve just acceptance of the item and payment,
whereas a multi-billion dollar cost-plus incentive-fee contract for the development of a major
weapon system may involve a team of contract administrators, engineers, quality assurance
specialists, auditors, testers, auditors, and cost/price analysts performing a multitude of tasks.
Other factors that may affect the level of contract administration activity are the urgency of the
delivery schedule and the criticality of the program that the contract supports, the extent of
subcontracting, and the complexity of contract financing arrangements, et. al.
4. What are the keys to successful contract administration?
The first key to successful contract administration is to plan for contract administration as
early as possible in the acquisition. If those responsible for performing contract administration
are aware of their responsibilities and can execute them competently, the probability of
successful contract administration is increased. The second key to successful contract
administration is to develop a good working relationship with the contractor. Problems often
arise that were not contemplated by the parties when they entered into the contract. As such, a
good working relationship will foster collaborative solutions to problems before they escalate
into legal controversies. Cooperation by the parties is not only vital to successful contract
performance—it is also a legal requirement. Lastly, a well-written contract that clearly
delineates the rights and responsibilities of the parties is vital to successful contract
administration.
3 Lesson 1 –Initiation of Work
, 5. What is the Defense Contract Management Agency (DCMA)?
DCMA was established to perform contract administration for the Department of Defense
(DoD). DCMA has various contract management offices located throughout the world and
performs an array of services including acquisition planning support, contract management,
financial services, engineering support services, property management, quality assurance and
product acceptance, software acquisition management, et.al. While some other organizations
perform specialized contract administration, DCMA performs the lion’s share of contract
administration in DoD. Contract administration offices throughout the Federal Government are
listed in the Federal Directory of Contract Administration Services Components, which is
maintained by DCMA.
DCMA video titled “What DCMA Does”
http://static.dvidshub.net/media/video/1606/DOD_103402691/DOD_103402691-1280x720-2765k.mp4.
6. How does the contracting officer formally establish all contract administration
responsibilities?
Although not required by regulation, it is good business practice to formally establish all
contract administration responsibilities in a contract administration plan (CAP). A CAP should
be designed to facilitate effective and efficient contract administration considering:
• The required level of contract surveillance;
• Contract terms and conditions related to administration;
• Contractor performance milestones;
• Government performance milestones (e.g., for providing Government furnished property
or responding to contractor plans and other required submissions);
• Contractor reporting procedures;
• Contract quality requirements;
• Name, position, and authority of contract administration team members; and
• Milestones for any reports required from contract administration team members.
Plan documentation should meet agency and activity requirements and good business practice. The
next exercise introduces some specific elements affecting contract administration planning.
Lesson 1 – Initiation of Work 4
