Contracting Overview

• Things needed in a contract

• What’s being agreed to?• When changes are needed• Followup / status reviews

(And why!)

Program Specific

• Follow program rules• Who’s eligible?• Limitations?• What form to use?• Contract length?

• Some things are universal

Contract ComponentsGM 120 404.45

• Contract form with signatures• Special provisions and supplements,

as needed• Plan/Schedule of Operations• Plan maps• Explanation of violations and

procedures to be followed.

Signatures

• Program participant(s)• SCIMS (they are who they say they are!)• Evidence of Authority for Entities• Power of Attorney (if applicable)

• NRCS

• Legally binding

Participant agrees to:

• Participate in program for specified term

• Implement the conservation plan

• Comply with terms & conditions in contract, appendix, addenda

• Pay liquidated damages as per appendix, if applicable

GM 120 404.42

NRCS agrees to:

• Establish cost share rate• Provide authorized technical

assistance• Make payment

• When work passes checkout• And participant furnishes certifications &

itemized statements of costsGM 120 404.42

Agreed-to Items

• Work to be done• Participant is responsible• Measurable components• Government money to be paid• Follow the Plan: what & when

• Operation and Maintenance for the program life of the practice

GM 180 Part 500.11

Why Measurable Components?

• Clearly identifies what’s being done• Can adjust quantities (estimated vs

designed) • Can tell if it’s done & ready for payment• Can compare billed items to contract for

quality assurance

• Keeps us out of trouble!

Streamline FO operations

Cost Share Definitions

=Actual cost not to exceed the average cost

=Actual cost not to exceed a specified maximum cost

=Average cost (AC times % cost share equals producer payment)

=Flat rate (no percentage applied)

AA

AM

AC

FR

GM 120 404.30

Explain the money part

Example: 60% cost share on an acre of waterway

If the cost list says:

Earthwork ACRE $1800 AM

…then the participant will get 60% of what it cost to build the practice ONLY IF the cost to build was less than or equal to $1800!

Overbuilding

• NRCS pays on what was designed.• Least cost alternative to achieve NRCS standards on

the resource concerns.

• Additional costs borne by the participant

EQIP Manual 515.101g

Make sure the participant(s) know

what they’re agreeing to!

ProTracts can help:

• Checks program rules• Fills in contract terms• Puts electronic signatures in the

right place

Spending Adjustment?

• Minor changes to quantities • Money is available in the contract• No formal modification procedure is

required

• See specific program manual for more details

GM 120 404.50

It’s OK to do a modification

• Substituting, adding, or deleting a practice

• Cost overruns (not enough money budgeted in the contract)

• Scheduling changes• Changing participant(s) or land• Adding TSP $$• Repairing a failure

GM 120 404.50

Following up

• Make sure there are no violations of the contract

• Determine the need for contract modification

Status Reviews

• Completed annually for the life of the contract

• Assistance notes are fine for routine documentation

• See matrix