us army corps of engineers building strong ® succeeding on usace construction contracts 12mar2015...
TRANSCRIPT
US Army Corps of Engineers
BUILDING STRONG®
Succeeding on USACEConstruction Contracts
12MAR2015
Eric Pagoria, P.E.
Chief, Construction Branch
Nashville District
Tommy Long, P.E.
Resident Engineer, Oak Ridge
Nashville District
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Topics Post-Award Process Pre-Construction Documents Key FAR Clauses Three-Phase Quality Control Submittals QCS Software Safety As-Builts Performance Evaluations
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Post-Award Process
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Post-Award Process Congratulations on award!?
Submit bonds / insurance►TEN DAYS to submit to Contracting Office►Bonds/insurance reviewed by Gov’t►Once acceptable, Resident Office will
coordinate “Pre-Construction Conference” ►Notice to Proceed (NTP) issued at conference
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USACE Field Team ACO = Administrative Contracting Officer
►Authority up to $500K►Changes, Differing Site Condition, VEQ, VECP►Dual hat as Resident Engineer
COR/QAR - NO authority to change the contract! COR = Contracting Officer’s Representative
►Responsible for administering the contract QAR = Quality Assurance Representative
►Responsible for monitoring your programs
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You can start work…
Paper work!
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What Does NTP Really Mean? NTP is Day 0 of your contract duration Duration is stated in FAR 52.211-10
►Section 00700 of your contract Contract Duration accounts for:
►Pre-Construction Documents►Physical Work►Punch List Items, Final Inspection►Close-out Documents
• Manuals, As-builts, Surveys, etc
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Example IF your contract has a 360-day duration
It likely includes:►60-120 days for Pre-Construction Submittals►150-240 days for Physical Work►60-90 days for Completion Documents
*Each contract duration is analyzed prior to solicitation based on scope of work and requirements.
*Days is “calendar days”
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Pre-Construction Documents
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Pre-Construction Documents
They control your ability to earn cash
Physical Work can NOT start until they are approved by Govt
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Key Documents Accident Prevention Plan Quality Control Plan Environmental Protection Plan Schedule Submittal Register Permits
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Accident Prevention Plan Are you familiar with EM385-1-1?
►“Safety and Health Requirements Manual”►APP is based on this manual
Safety is a Contract Requirement!►Refer to Spec Section 01 35 00 of your contract►EM 385-1-1: 931 pages►OSHA compliance, too
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Accident Prevention Plan New Manual (EM 385-1-1), dated 30NOV14
►Contracts solicited after 1MAR15 will follow it
Follow Appendix A for APP development►Format/outline provided►Document must be accepted before physical
work can commence►“Abbreviated APPs” do NOT apply to
Construction contracts
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APP Tips Do not deviate from Appendix A format
►“N/A” is not acceptable► Explain why items don’t apply
Verify SSHO qualifications in specs►Varies by project
Verify in specs if SSHO can be dual-hatted►Depends on scope of work
Use checklist for APP development/review APP needs to be SITE-SPECIFIC
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Accident Prevention Plan Acceptance of your plan is conditional
►Gov’t reserves the right to require changes, removal of personnel, to obtain safety requirements
►Gov’t can stop work for safety issues►You are responsible for entire site, all workers,
and all visitors Mutual Understanding Meeting
►Held at time of acceptance►Discusses safety with key players
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Quality Control Plan Interim Plan is due within 7 days of NTP
►Need to know how your QC organization works• Who is “certifying” the submittals?
►Interim is for first 30 days
Final Plan is due at Day 30
Follow “Content of CQC Plan” in Specs
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QC Plan Tips Verify QC Manager qualifications in specs
Verify if QC Manager can be dual-hatted
Verify QC Team requirements in Specs
QCP needs to be SITE-SPECIFIC
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Quality Control Plan Acceptance of your plan is conditional
►Gov’t reserves the right to require changes, removal of personnel, to obtain quality requirements
Mutual Understanding Meeting►Held at time of acceptance; ►Prior to start of work►Discusses quality with key players
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Environmental Protection Plan Must be approved prior to starting work Address each topic from “Contents” para.
►Level of detail dependent on environmental issues
Meet with Gov’t prior to submission to discuss implementation
Comprehensive document!►Noise, SWPPP, historical, cultural, wetlands,
traffic, spills, recylcing, etc.
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Schedule Gantt Chart or Network Analysis?
►Depends on specifications If Gantt Chart…
►Submit Preliminary Schedule 10 days after NTP• Covers first 60 days
►Submit Initial Schedule within 30 days after NTP• Covers the entire project
►Periodic Schedule Updates• Submit monthly or as instructed by COR• Includes narrative report
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Schedule If Network Analysis Schedule…
►Preliminary Meeting to discuss requirements• Must use Primavera• Must use Qualified Scheduler
►Submit NAS• Must be accepted to start physical work• Cost loaded, reports, narrative, logic
►Monthly Updates• Joint meetings to update progress schedule
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Submittal Register Specification Section 01 33 00
Contract provides estimated list of submittals►It is a living document maintained by you;►Documents can only be deleted by Gov’t►Documents can be added by both parties
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Submittals Submittal Register
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Submittal Register Tie Schedule Activity to each Submittal Item
►Column (a) Submit by, Approval By, Material By dates
►Columns (g), (h), and (i)►Auto-populated by QCS once tied to Schedule►Accounts for Gov’t 30 day review period
Dates are used to measure progress
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Permits Contractor is responsible for ALL permits
►Unless stated otherwise in the specifications►Includes fees, paperwork, etc►Must show on your schedule
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Key FAR Clauses
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Federal Acquisition Regulations
FAR = The Foundation “Rules” we (GOV & KTR) must follow when executing a Federal Contract.
Can be accessed via FAR Site.► http://farsite.hill.af.mil/► DFARS = Dept. of Defense Supplement► AFARS = Army, AFFARS = Air Force, etc.► UAI = USACE Acquisition Instructions
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Key FAR Clauses
Subpart 11.5 – Liquidated Damages (LDs) 11.501 – Policy
► (b) LDs are not punitive and are not negative performance incentives (see 16.402-2). LDs are used to compensate the GOV for probable damages.
► (c) The Contracting Officer (KO) must take all reasonable steps to mitigate LDs.
LDs range from ~$500 to $7000 per day
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Key FAR Clauses 52.211-12 Liquidated Damages – Construction
► If the KTR fails to complete the work within the time specified.
► If the GOV terminates…LDs will continue to accrue until the work is completed.
52.211-13 Time Extensions► The change order granting the time extension may
provide that the contract completion date will be extended only for those specific elements related to the changed work and that the remaining contract completion dates for all other portions of the work will not be altered.
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Key FAR Clauses 52.211-18 Variation in Estimated Quantity
► If the actual quantity of the unit-priced item varies more than 15 percent above or below the estimated quantity, an equitable adjustment in the contract price shall be made upon demand of either party.
► The equitable adjustment shall be based upon any increase or decrease in costs due solely to the variation above 115 percent or below 85 percent of the estimated quantity.
► If the quantity variation is such as to cause an increase in the time necessary for completion, the KTR may request an extension of time.
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Key FAR Clauses 52.222-6 Construction Wage Rate Requirements
(Formerly Davis-Bacon) ► (b)(1) All laborers and mechanics employed or working
upon the site of the work will be paid unconditionally and not less often than once a week...the full amount of wages and bona fide fringe…due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor.
► (c)(1) The KO shall require that any class of laborers or mechanics which is not listed in the wage determination …shall be classified in conformance with the wage determination.
► Prime Contractor is responsible for compliance
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Key FAR Clauses 52.222-7 Withholding of Funds
► The KO shall ...withhold or cause to be withheld from the KTR under this contract or any other Federal contract…so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the KTR or any sub the full amount of wages required by the contract.
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Key FAR Clauses 52.222-8 Payrolls and Basic Records
► (b)(1) KTR shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the KO.
► (c) If the KTR or sub fails to submit…the KO may, after written notice to the KTR, take such action as may be necessary to cause the suspension of any further payment. Furthermore, failure to submit…may be grounds for debarment action pursuant to 29 CFR 5.12.
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Key FAR Clauses 52.225-9 Buy American – Construction Materials
► (b)(1) This clause implements the 41 U.S.C. chapter 83, Buy American, by providing a preference for domestic construction material.• Note: If you are considering trying to get a waiver, keep in mind
the process is long (6-12 months)
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Key FAR Clauses 52.228-5 Insurance-Work on a GOV Installation.
► (a) KTR shall... provide and maintain...at least the kinds and minimum amounts of insurance required in the schedule or elsewhere in the contract.
► (b) The policies ... shall contain an endorsement to the effect that any cancellation or any material change adversely affecting the GOV’s interest shall not be effective --• (1) For such period as the laws of the State in which this
contract is to be performed prescribe; or• (2) Until 30 days after the insurer or KTR gives written notice to
the KO, whichever period is longer.
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Key FAR Clauses 52.232-5 Payments under Fixed-Price
Construction Contracts.► (e) Retainage. If the KO finds that satisfactory progress
was achieved during any period for which a progress payment is to be made, the KO shall authorize payment to be made in full. However, if satisfactory progress has not been made, the KO may retain a maximum of 10 percent of the amount of the payment until satisfactory progress is achieved.
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Key FAR Clauses 52.232-27 Prompt Payment for Construction
Contracts► (a)(1)(i)(A) The due date for making such payments is
14 days after the designated billing office receives a proper payment request.
► (a)(1)(i)(B) The due date for payment of any amounts retained...is as specified in the contract or, if not specified, 30 days after approval.
► (a)(2) If the invoice does not comply...the designated billing office must return it within 7 days after receipt, with the reasons why it is not a proper invoice.
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Key FAR Clauses 52.233-1 Disputes
► (c) ...a written demand or written assertion by the KTR seeking the payment of money exceeding $100,000 is not a claim under 41 U.S.C. chapter 71 until certified.
► (e) For KTR claims of $100,000 or less, the KO must, if requested in writing by the KTR, render a decision within 60 days of the request. For KTR-certified claims over $100,000, the KO must, within 60 days, decide the claim or notify the KTR of the date by which the decision will be made.
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Key FAR Clauses 52.233-1 Disputes (continued)
► (f) The KO’s decision shall be final unless the KTR appeals or files a suit as provided in 41 U.S.C. chapter 71.
► (i) The KTR shall proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action arising under the contract, and comply with any decision of the KO.
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Key FAR Clauses 52.236-2 Differing Site Conditions
► (a) The KTR shall promptly, and before the conditions are disturbed, give a written notice to the KO.
► (b) The KO shall investigate...promptly...If the conditions do materially so differ and cause an increase or decrease in the KTR’s cost of, or the time required for, performing any part of the work under this contract…an equitable adjustment shall be made.
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Key FAR Clauses 52.236-5 Material and Workmanship
► (a) All equipment, material, and articles incorporated into the work covered by this contract shall be new and of the most suitable grade for the purpose intended.
► (c) All work under this contract shall be performed in a skillful and workmanlike manner. The KO may require, in writing, that the KTR remove from the work any employee the KO deems incompetent, careless, or otherwise objectionable.
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Key FAR Clauses 52.236-6 Superintendence by the KTR
► At all times during performance of this contract and until the work is completed and accepted, the KTR shall directly superintend the work or assign and have on the worksite a competent superintendent who is satisfactory to the KO and has authority to act for the KTR.
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Key FAR Clauses 52.236-7 Permits and Responsibilities
► KTR shall...be responsible for obtaining any necessary licenses and permits, and for complying with any Federal, State, and municipal laws, codes, and regulations.
► KTR shall also be responsible for all damages to persons or property that occur as a result of the KTR’s fault or negligence.
► KTR shall also be responsible for all materials delivered and work performed until completion and acceptance of the entire work.
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Key FAR Clauses 52.236-9 Protection of Existing Vegetation,
Structures, Equipment, Utilities, and Improvements► KTR shall repair any damage...resulting from failure to
comply with the requirements of this contract or failure to exercise reasonable care in performing the work. If the KTR fails or refuses to repair the damage promptly, the KO may have the necessary work performed and charge the cost to the KTR.
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Key FAR Clauses 52.236-13 Accident Prevention
► (c) KTR shall comply with all pertinent provisions of the latest version of U.S. Army Corps of Engineers Safety and Health Requirements Manual, EM 385-1-1.
► (d) If the KTR fails or refuses to promptly take corrective action, the KO may issue an order stopping all or part of the work until satisfactory corrective action has been taken. The KTR shall not be entitled to any equitable adjustment of the contract price or extension of the performance schedule on any stop work order issued under this clause.
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Key FAR Clauses 52.236-15 Schedules for Construction Contracts
► (a) If the KTR fails to submit a schedule within the time prescribed, the KO may withhold approval of progress payments until the KTR submits the required schedule.
► (b) If, in the opinion of the KO, the KTR falls behind the approved schedule, the KTR shall take steps necessary to improve its progress, including those that may be required by the KO, without additional cost to the GOV.
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Key FAR Clauses 52.242-14 Suspension of Work
► (a) The KO may order the KTR, in writing, to suspend, delay, or interrupt all or any part of the work of this contract for the period of time that the KO determines appropriate for the convenience of the GOV.• Note: If the delay by the KO is for an unreasonable amount of
time, the KTR may be entitled to an equitable adjustment.
52.243-4 Changes► (a) The KO may...make changes in the work within the
general scope of the contract.• Note: The majority of modifications issued are due to this
clause.
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Key FAR Clauses 52.246-12 Inspection of Construction
► (b) KTR shall maintain an adequate inspection system and perform such inspections as will ensure that the work performed under the contract conforms to contract.
► (c) GOV inspections and tests are for the sole benefit of the GOV and do not –• (1) Relieve the KTR of responsibility for providing adequate
quality control measures;
► (d) The presence or absence of a GOV inspector does not relieve the KTR from any contract requirement, nor is the inspector authorized to change any term or condition of the specification without the KO’s written authorization.
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Key FAR Clauses 52.246-12 Inspection of Construction (cont.)
► (f) The KTR shall, without charge, replace or correct work found by the GOV not to conform to contract requirements, unless in the public interest the GOV consents to accept the work with an appropriate adjustment in contract price.
► (g) If the KTR does not promptly replace or correct rejected work, the GOV may –• (1) By contract or otherwise, replace or correct the work and
charge the cost to the KTR; or• (2) Terminate for default the KTR’s right to proceed.
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Key FAR Clauses 52.246-12 Inspection of Construction (cont.)
► (h) If…the GOV decides to examine already completed work by removing it or tearing it out, the KTR, on request, shall promptly furnish all necessary facilities, labor, and material. If the work is found to be defective or nonconforming in any material respect due to the fault of the KTR or its subs, the KTR shall defray the expenses of the examination and of satisfactory reconstruction. However, if the work is found to meet contract requirements, the KO shall make an equitable adjustment.
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Key FAR Clauses 52.246-21 Warranty of Construction
► (b) This warranty shall continue for a period of 1 year from the date of final acceptance of the work. If the GOV takes possession of any part of the work before final acceptance, this warranty shall continue for a period of 1 year from the date the GOV takes possession.
► (g) With respect to all warranties, express or implied, from subs, manufacturers, or suppliers for work performed and materials furnished under this contract, the KTR shall –• (1) Obtain all warranties that would be given in normal
commercial practice;
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Key FAR Clauses 52. 249-10 Default (Fixed-Price Construction)
► (a) If the KTR refuses or fails to prosecute the work…with the diligence that will insure its completion within the time specified in this contract…the GOV may, by written notice to the KTR, terminate the right to proceed with the work…
► (b) The KTR’s right to proceed shall not be terminated nor the KTR charged with damages under this clause, if• (1) The delay in completing the work arises from unforeseeable
causes beyond the control and without the fault or negligence of the KTR. (e.g. Acts of God, Gov't., another KTR., Fires, Floods, Epidemics, Quarantines, Strikes, Unusually Severe Weather)
• KTR can get time only for these delays
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Key FAR Clauses DFARS 252.236-7000 Modification Proposals –
Price Breakdown► (a) The KTR shall furnish a price breakdown, itemized
as required and within the time specified by the KO, with any proposal for a contract modification.• Note: Includes Material, Labor, Equipment, Subcontracts,
Overhead.
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Key FAR Clauses DFARS 252.243-7002 Requests for Equitable
Adjustments► (b) In accordance with 10 U.S.C. 2410(a), any request
for equitable adjustment to contract terms that exceeds the simplified acquisition threshold ($150K currently) shall bear, at the time of submission, the following certificate executed by an individual authorized to certify the request on behalf of the KTR...
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Key FAR Clauses USACE Acquisition Instruction (UAI) 31.105-101
Special Contract Requirements. Equipment Ownership and Operating Expense Schedule► When both ownership and operating costs cannot be
determined for any piece of equipment or groups of similar serial or series equipment from the KTR's accounting records, costs for that equipment shall be based upon the applicable provisions of EP 1110-1-8, Construction Equipment Ownership and Operating Expense Schedule
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Key FAR Clauses FAR 52.248-3 Value Engineering – Construction
► Research / Reading this is your homework assignment.► http://farsite.hill.af.mil/► Bottom Line: If you've got an idea to do something
cheaper, don't submit it as a variation on a Transmittal, send us a Value Engineering Change Proposal.
► Plan in advance, lengthy process (~2-4 months) for approval.
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Three-Phase Quality Control
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Three-Phase Quality Control Purpose
► Requires KTR to plan and schedule the work to ensure that they are prepared to start each new definable feature of work.
► The three phases of control (preparatory, initial, and follow-up) are the core of the Construction Quality Management System.
► When they are properly performed, success in completing the work to comply with requirements of the contract is enhanced.
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Three-Phase Quality Control Contractor’s (CQC Manager’s) Responsibilities
► Develop, schedule and implement procedures for tracking control phase meetings for definable features of work in the QC Plan.
► Notify appropriate personnel of time, date and agenda.► Conduct Meetings (preparatory and initial).► Safety considerations and Activity Hazard Analyses
(AHAs).► Document actual discussions and provide minutes to
attendees.► Monitor work in place through follow-up phase.
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Three-Phase Quality Control Preparatory Phase: (Prior to each Definable
Feature of Work)► A review of applicable contract documents (Plans,
Specs, and References)► A check to assure that all materials are on hand, have
been tested, submitted, and approved.► A check to assure that provisions have been made to
provide required control inspection and testing.► A review of the appropriate activity hazard analysis.► Discussion of procedures for constructing the work
including the review of repetitive deficiencies.
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Three-Phase Quality Control Initial Phase: (~ 5% into a Definable Feature of
Work)► Review minutes of Preparatory Meeting.► Check preliminary work.► Verify adequacy of controls to ensure full contract
compliance.► Establish level of workmanship.► Resolve differences.► Check safety to include compliance with the safety plan
and activity hazard analysis. Review the activity hazard analysis with workers!
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Three-Phase Quality Control Initial Phase: (cont.)
► Example of establishing level of workmanship for laitance removal on mass concrete.
IMG_0441 IMG_0444
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Three-Phase Quality Control Initial Phase: (cont.)
► Example of establishing level of workmanship for laitance removal on mass concrete.
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Three-Phase Quality Control Follow-up Phase:
► Daily checks shall be performed to assure continuing compliance with contract requirements, including safety and control testing, until completion of the particular feature of work.
► QC personnel should continually refer back to the standards set in the “Preparatory and Initial Phases.”
► Checks shall be made a matter of record in the CQC documentation.
► Final follow-up checks shall be conducted and all deficiencies corrected prior to the start of additional features of work.
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Submittals
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Submittals Purpose:
► Required by the contract in order to regulate the timely flow of materials to be incorporated into work.
► Necessary to demonstrate that the proposed materials, etc., are in compliance with the contract.
► Must be provided by the contractor in time to allow for the review, approval, procurement, delivery, and performance of the preparatory phase of the Three Phases of Control for an item before it is needed for construction.
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Submittals Contractor Responsibilities:
► QC Manager is responsible for ensuring, thorough detailed review, that all submittals are in full compliance with the contract.
► ENG 4025-R Transmittal (and Certification)
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Submittals Contractor Responsibilities: (cont.)
► Must check the submittal schedule requirements against the Network Analysis System (NAS) or other approved construction schedule.
► KTR constantly maintains and adjusts dates on the register as required by the contract activities to ensure the document reflects current information.
► All variations must be fully described, identified and justified in the transmittal package.
► If a variation is not identified on ENG Form 4025R, the Government may rescind any inadvertent approval.
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Submittals Submittal Register
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Submittals Transmittal Form (ENG Form 4025-R)
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Submittals Transmittal Form (Instructions)
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QCS Software
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Quality Control System (QCS) Software
What is it?
Why do we need it?
How do I learn to use it?
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QCS Software
► The Quality Control System (QCS) is the Contractor’s Quality Control module of the Government’s Resident Management System (RMS) and was developed to assist contractors in providing contract-required data to the Corps of Engineers.
► By taking advantage of the monitoring and reporting aspects of this program, the contractor can perform quality control activities more consistently and within the requirements specified by the Corps of Engineers.
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QCS Software So…what is it?
► Administration► Quality Control► Submittals► Import/Export► Contract Reports
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QCS Software Administration Tab
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QCS Software Quality Control Tab
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QCS Software Submittals Tab
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QCS Software Import/Export Tab
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QCS Software Contract Reports Tab
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QCS Software Contractor Action Items
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QCS Software Contractor Action Items (cont.)
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QCS Software Training Resources
► QCS Manual• http://rms.usace.army.mil/datafiles/rms_qcs_manuals/qcs_man
ual_2_38.pdf
► You Tube Videos (Jason Price - Ft. Worth District)• Google “USACE QCS Youtube”• https://www.youtube.com/playlist?list=PL2E14F995DBDEE9F9
► Help Desk• (760) 247-0217
► Contact your Resident Engineer’s Office
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Safety
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Safety How effective is your safety program?
►Identifying hazards►Mitigating risks►Proactive involvement of SSHO, QCM, etc►Enforcement►Documentation
SSHO needs to be seen and heard SSHO needs to educate subs and workers
on EM 385-1-1
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Safety Violations Negatively impact performance evaluation
Result in work stoppage
May result in Board of Investigation
Possible removal of SSHO and/or others
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As-Builts
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As-Builts Maintain red lines in the field
►Will impact payments if not maintained
CADD files►Microstation format, not AutoCAD
• Need to hire someone proficient in Microstation!
►Submit final as-builts within 14 days of substantial completion
►This is part of contract duration
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Performance Evaluations
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Performance Evaluations All evaluations are completed in CPARS Evaluations are automatically transferred
into PPIRS database►PPIRS – Past Performance Information
Retrieval System►Agencies use PPIRS in source selections
• Past Performance shall be evaluated for all source selections exceeding simplified acquisition threshold
• PPIRS only displays most recent evaluation
►Evaluations are maintained for 6 years
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Performance Evaluations Evaluations based on:
►Quality►Schedule►Cost Control►Management►Utilization of Small Business►Regulatory Compliance►Other Areas (Safety, etc)
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Performance Evaluations Evals required on:
►Construction contracts over $650K►All terminations for default
Frequency:►One eval if contract < 12 months►For contracts > 12 months
• Interim evaluation(s) at 12 months• Final evaluation
►Reports are not cumulative
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Performance Evaluations 60 days to respond to eval in CPARS
►Notified via email to company representative►Provide response and concurrence or non-
concurrence►Response reviewed by next level (Reviewing
Official)
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Wrap-Up
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Eric’s Key Points CORs/QARs do not have authority to
change a contract Contract duration includes all pre-con and
closeout documents Performance evaluations matter Documents need to be site-specific Read the specs before you bid the job Safety, Safety, Safety!
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Tommy’s Key Points Read the contract before asking a question. The more effort you show, the more I’ll want to
help. Ask to sit down at the beginning of the project and
go over how you will be evaluated. There will be conflict, a partnering meeting up
front is a good way to lay out how you will deal with it.
Make sure the right people (i.e. field personnel) are attending Three-Phase Control meetings.
