AASHTO/FHWA

1
AASHTO/FHWA Right of Way and Utilities
Subcommittee Conference Austin, Texas May 16,
2005
Consultant Performance Oversight Gus Cannon,
SR/WA
2
Where to Start
http//ecfr.gpoaccess.gov

• Electronic Code of Federal Regulations (e-CFR)
  is found on the GPO Access site which is a
  service of the U.S. Government Printing Office.

• Were particularly interested in Title 48, Ch.
  1 known as the Federal Acquisition Regulations
  System.

3
Important Subchapters

• Subchapter E
• Part 30 Cost Accounting Standards and
  Administration
• Part 31 Contract Cost Principles and
  Procedures

• Subchapter F
• Part 37 Service Contracting

• Subchapter G
• Part 42 Contract Administration and Audit
  Services
• Part 46 Quality Assurance

4
True Cost of Quality Hasnt Changed
John Ruskin author and philosopher (1819-1900)
Its unwise to pay too much, but its unwise to
pay too little. When you pay too much you lose a
little money, that is all. When you pay to
little, you sometimes lose everything, because
the thing you bought was incapable of doing the
thing you bought it to do. The common law of
business balance prohibits paying a little and
getting a lot it cant be done. If you deal
with the lowest bidder, its well to add
something for the risk you run. And it you do
that, you will have enough to pay for something
better.
5
Simple Rules - HUGE Impact

• Title 48, Subchapter F, Part 37, Section 37.000
  to 37.602-5 (less than 3 pages) but the impact on
  the agencys responsibility for providing
  Performance Oversight is huge.

• Performance-based contracting methods are
  intended to ensure that required performance
  quality levels are achieved and that total
  payment is related to the degree that services
  performed or outcomes achieved meet contract
  standards. (subpart 37.601)

6
Ensuring Quality Performance Levels are Achieved

• The contract and task orders must describe
  requirements in terms of results required rather
  than methods of performance of the work.

• Use measurable performance standards in terms
  of quality, timeliness and quantity of the
  deliverables.

• Specify procedures for reductions of fee or for
  reductions to the price of a fixed-price contract
  when services are not performed or do not meet
  contract standards. Also provide incentives
  where appropriate.

7
What do we consider Quality Assurance?

• Title 48, Subchapter G, Part 46, Section 46.101
  says

Government Contract Quality Assurance means the
various functions, including inspection,
performed by the Government to determine whether
a contractor has fulfilled the contract
obligations pertaining to quality and quantity.
8
Dont Wait Until the End

• We put an un-proportionate amount of work into
  qualifying the Provider of services and then we
  cant understand why the final deliverable is
  less than we expected.

• Why? Because thats where our training
  emphasis has been. Too often the primary
  emphasis by auditors is on how we procured the
  services and not on the final deliverable.

9
What we need to do

• Kick-off meetings. Use them to set the standard
  for what the agency expects in terms of
  deliverables. Be specific in terms of the
  quality, timeliness and quantity you expect.
• Require face time and tell them what you expect
  at the meetings. Never meet just to meet.
  Establish an agenda, note the specific reports
  you want to see and then dont cancel.
• Establish your audit and evaluation guidelines
  and format. These must be in writing do not
  leave anything to chance.

10
Written Evaluations

• Probably the most difficult part of the job.
  Audits are for the most part, straight forward,
  and performed by parties other than you. Were
  talking written evaluations here and its much
  more difficult than it appears.

11
Who, What, When How Many

• Who prepares it? Do you have legal counsel
  opinion on the required separation of duties?
• When does it happen? How many times?
• Who maintains the records?
• Do other agencies need to be notified of the
  results?
• How do the results affect the Provider?
• Are there penalties an incentives? What are the
  standards for required improvement for the
  Provider?

12
An Example

• TxDOT began contracting for Right of Way
  Acquisition Professional Services (ROWAPS) in
  December of 2000. Various means and forms of
  evaluating the contracts and work authorization
  resulting in the publication of a procedural
  guide for evaluations in July, 2003.
• Demand for these services continues to
  increase. Moving from 8 contracts in 2000 to 30
  contracts in 2004. While the general scope of
  the services have not changed, various pilot
  programs have been implemented in an attempt to
  maximize production and efficiency while not
  altering the general scope of services.
• .

13
The Challenges

• The contracts are statewide with the potential
  of a Provider having multiple work authorizations
  around the State.
• Annual requests for proposals means contracts
  could overlap.
• The staff hours needed to manage the
  administration of the evaluations grew at rates
  un-proportionate to the ability of staff to
  perform in a timely manner.
• Use of new and innovative pilot programs
  further complicated the evaluation process.

14
Meeting the Challenges

• TxDOT is reviewing and revising existing written
  evaluation guidelines that employ an automatic
  email tickler to field offices that will be
  sent on a bi-weekly basis beginning 60 days out
  from the needed date of the evaluation.
• TxDOT is developing an evaluation oversight team
  that will maintain consistency in evaluations
  while providing the needed separation of duties.

15
Remember, you can never be too prepared
16
Contact
Gus Cannon Texas Department of Transportation Righ
t of Way Division 118 East Riverside
Drive Austin, TX 78704 Email
gcannon2_at_dot.state.tx.us