Contracting Business Unit

• Contracting Organization

• DoD COR / QAE Policy

• Service / Supply Contracting

• CA Contracting

DeCA Contracting Structure

Head of Contracting Activity

Mr. Page

Dir of Performance and Policy

Robert HaydenDO

Director of Contracting

John LavinusAM

Director of Sales

Randy ChandlerPSM

Equipment and MaintenanceContractingTerri Kerby

DOA

Services, Supplies and Revenue ContractingBruce Piper

AMD

Custodial, Shelf Stocking & RSH

ContractingDebbie Wiggins

AMC

Resale Contracting Larry Hahn

PSMC

Contracting Authority

Contracting Authority

CBU UpdateOn New DoD COR / QAE Policy

• More funds are now spent by DoD on Service Contracts than

for Supplies, Equipment and Weapon Systems combined. As

a result, Congress has now taken a more active role in the

oversight of Service Contracts.

• The most recent DoD policy impacts our stores directly. This

policy requires appointment of a QAE or COR for all Service

Contracts, ranging from the contract to pick up Fats & Bones

to your CA contracts

DoD COR / QAE Policy

QAEs or CORs must:

Be identify in writing, by name, with a copy to the contractor

Be trained prior to contract performance

• Most stores have been required to provide names and

conduct on-line COR training over the past 6 months

• This will continue to be an ongoing effort

• QAE/COR duties must be addressed in performance plans

Contracting Division

• Provides Contracting for Support Services, Supplies and Revenue Generation

• Bruce Piper, Chief, Contracting Division 804-734-8640

• Melissa Rios, Chief, Support Services Branch 804-734-8680

• Michael Shaffer, Chief, Revenue, Supply and HQ Support Branch 804-734-8681

• Emergency phone for non-business hours 804-536-6500

Micro Purchase Threshold

• Micro Purchase aka GPC (Government Purchase Card)

General threshold is now $3000 and stores should use their cards up to

that limit

2 Key Exceptions:

– Construction/Facility repairs is limited to $2000

– Services are limited to $2500

Limitations are based on prevailing labor laws (Davis-Bacon, Service

Contract Act)

• Convenience Checks

May request after exhausting all other remedies

Service Contracts

• Average store has 6 - 8 Service Contracts / Purchase Orders

Linen, Laundry, Mats Rental & Cleaning

Door Maintenance

Knives and Blades

Fats and Bones Removal

Pest Control

Alarm System Maintenance

Banking, Armored Car, EBT

Supply Contracts

• Several large ongoing Supply contracts to support stores

Paper / Plastic / Produce Bags

Federal Express

Miscellaneous Supplies (currently Bunzl)

Store Décor

Inventories

• Individual contracts/orders awarded to support a store’s

specific need

Revenue Contracts

Coupons Scanner Data Floor Advertising Recycling

» Managed through OPS» Cardboard» Phasing in Plastic» Converting to DeCA contracts

Unauthorized Commitments

• What are they?

Contractor performs without contract or GPC authority

• How do they happen?

Unauthorized person directs a contractor to perform

GPC order issued without confirming contractor takes GPC

• Resolution

Long and painful, individual could be personally liable

Region Director must personally sign documents

Subject to disciplinary action (individual and management)

• Negative opinion of DeCA in contractor community

Commercial Services Division (AMC)

March 13, 2008

Debbie Wiggins, Division Chief (804) 734-8654

Ginna Thomas, Chief, East Branch (804) 734-8546

AMC MISSION

Provide contracting support for 170 CONUS commissaries’ shelf stocking, custodial, and RSHA operations contracts.» “Cradle to Grave” contracting» QAE Training (formal and informal) – next two sessions are

scheduled during 05/12 – 05/16/08 @ Langley AFB Commissary

» Monthly Processing of all DD 250s» Monthly Review of all QAE Surveillance Packages» Conduct On-Site/Telephonic Meetings» A-76 Contracting Mission

12

AMC CONTRACT REPORTING

» Bi-Weekly Report– Lists Significant Issues Relative to Store Support for All

Contracting Areas» CA Pre-Award Status Report

– Reflects All CA Contract Renewals and Updated Monthly.» CA Contract Admin Report

– Reflects Pending Admin Actions for Each Store by Zone/Region and Updated Monthly

» Overwrites Report– Reflects Monthly Overwrite Percentages/Store

13

AMC LITIGATION

Travis AFB – HDEC08-05-C-0038 An appeal was filed with the ASBCA by Pride Industries (PI), the former

contractor at the Travis AFB Commissary The appeal requested relief for deductions which were taken from PI’s

May 2006 DD 250 for defective services during the months of Dec 2005 through Mar 2006

Original proposed deductions totaled $123,238.44 Deduction amount was reduced to $21,987.19, due to insufficient

supporting documentation A hearing in California took place 08/28 and 08/29/07 DeCA participants were Elliott Clark (GC), Debbie Wiggins (AMC), Romy

DeGuzman (QAE), Paul Schultz (QAE), and Lester Benton (QAE). The SA was listed as a witness, but did not have to testify and the SD would have been called as a witness; however, due to illness, he was not.

AMC LITIGATION

In November 2007, a post-hearing brief was filed with ASBCA» Involved the review of over 650 pages of hearing transcripts» Pointed out discrepancies in testimony of PI participants» Pointed out non-compliance with contract terms» Requested denial of the appeal of PI

ASBCA Decision» Issued December 31, 2007, denying the claim of PI

– The PI Project Manager should have accompanied QAE on inspections– It was appropriate for QAEs to wait until PI was complete before starting

inspections– Non-receipt of copies of DDOs, does not hinder the contractor’s ability to

perform to standard– DeCA was entitled to take deductions