Attachment 10 PWS - DIA Region IV FSS Appendix H Service Order Process 20230109.docx

H.2 The Government initiates a work request or Service Order request to the Contractor for Corrective Maintenance work or services based upon internal notice or input by Contractor. The Contractor shall submit a Service Order document (TE-8) accompanied by a cost proposal (Emergency priority requests can entail verbal or expedited authorization as described below).

H.3 Service Order Types.

H.3.1 Routine Service Order: A routine SO is any repair or facility alteration from the designated Government Representative (DGR) that is not for urgent or emergency repairs (see paragraphs H.3.4 and H.3.5 below). The DGR can request a routine service order at any time throughout contract duration. During scheduled maintenance visits, the Contractor shall identify any deficiencies/possible repairs and notify the facility DGR. The Contractor shall also include these deficiencies/repair requirements on the Monthly Status Report. If the DGR determines that a repair is required, the DGR may request the Contractor to perform the repair through a service order. The repair request is at the discretion of the DGR.

DGR/QAE signatures: For routine service orders, the DGR will sign the service order form validating the requirement. The Contractor will then price the service order and submit to the COR. The Contractor shall not begin work until receipt of a notice to proceed (NTP) issued by the contracting officer (KO). Upon completion of the repair, the Quality Assurance Evaluator will sign the service order to verify that the Contractor has completed the repair.

H.3.2 Not to Exceed (NTE) Service Orders: NTE Service Orders shall be used for one of the following situations:

· Troubleshooting. Troubleshooting service orders shall be submitted for travel and labor costs that will be incurred while identifying the scope of work for a repair request made by the SOA. Troubleshooting service orders shall be reserved for complex repair needs.

· Unknown repair. Unknown repair service orders shall be reserved for repairs where the full extent of the repair is not known, and the contractor can make a “worst case” estimate of the cost of repair.

· Contractor is already on site. If a repair is requested by the DGR while the Contractor is on site, the Contractor may submit an NTE for the repair.

· Emergency response required (see paragraph H.3.5 below).

If the repair cannot be performed within the NTE limit, the Contractor shall immediately notify the KO. The KO will determine if a routine service order shall be submitted for approval in accordance with paragraph H.3.1 of this Appendix or if an NTE increase shall be approved. An NTE increase is at the discretion of the KO only.

As soon as possible following the repairs being made, the Contractor shall follow up with a written service order including detailed price of any repairs made during the site visit as well as detailed information documenting the repair work is inherent to this contract. The Contractor shall invoice for the actual repair cost, which may be less than the authorized NTE amount.

DGR/QAE signatures: For NTE service orders, the DGR will not sign the service order. After the Contractor completes the SO, the QAE will sign the SO verifying completion of the work.

H.3.3 Long Lead Service Orders: A Long Lead (LL) SO is any routine service order repair that cannot be completed within required performance timelines due to long lead time for materials procurement. The Contractor shall identify LL service orders with an “LL” on the service order form. In the SO description section, the Contractor shall input the estimated time of arrival of the long lead item and provide an estimated completion date for the service order. All other review, approval, and execution parameters are the same as a routine service order.

H.3.4 Urgent Service Orders: An urgent SO is for work that is not an emergency, but poses an ongoing, high risk for impact to mission readiness, health, safety, or critical property. The Contractor shall process urgent service orders following the same procedures as routine service orders, but within the time limits in paragraph H.5 below.

H.3.5 Emergency Service Orders: An emergency service order involves:

· Work that is mission critical

· Work that is needed to avoid serious impact to life, health, or safety

· Work needed to avoid significant damage to, or loss of, property

· Work that is required to avoid or mitigate a negative environmental impact

A statement should be annotated on the emergency service order indicating the nature of the emergency.

Upon receiving an emergency request from the SOA, the Contractor shall gather as much information as possible from the SOA and submit an NTE proposal to perform the emergency repair including all required safety documentation. This shall be sent to the KO or SOA depending on authority limits and USACE safety office at the designated 24-hour emergency mobile number/email. The Contractor SHALL NOT perform work until given approval to commence, either verbal or written, by the KO or SOA. Upon receiving an approval by the KO or SOA, the Contractor shall respond on site within the time specified in PWS paragraph 4.5.1.

As soon as practicable following an emergency repair, the Contractor shall issue a service order for the actual cost for the emergency. The Contractor shall invoice for the actual repair cost, which may be less than the authorized NTE amount. When an emergency repair need is identified, it will retain highest priority over any concurrent regular scheduled maintenance and repair work.

DGR/QAE signatures: For emergency service orders, the DGR will not sign the service order. After the Contractor completes the SO, the QAE will sign the SO verifying completion of the work.

H.4. All CM work requests that are issued to the Contractor shall be recorded and issued by the Government in a computerized format, although the KO may, under emergency circumstances, issue an advance verbal request. For verbal requests, the corresponding computerized notice shall be transmitted by the Government on the following business day. The Contractor shall maintain electronic and hard-copy records of all work requests received, corresponding Service Order forms and contract obligation data, and performance status tracking information including contract obligation numbers, activity dates, all material and part quantities and costs details, labor details, and any other related expenses that would be invoiced. These records shall be maintained by the Contractor for the duration of the contract and turned over to the Government at completion of the contract. Up-to-date tracking logs indicating this information, including the categories/cost information, shall be furnished to the government on an ongoing basis, and copies of any record, or group of records, shall be furnished promptly to the COR for review on request.

H.5 Response and Completion Times. Required response and completion times for CM/Service Order requests, including SO Proposals, depend upon the priority and whether the work is requested during or outside of Normal Duty Hours of the facility, and are defined according to the Service Order Response Timetable and Priority Descriptions below. Respond means the Contractor acknowledges the maintenance issue and dispatches a technician or crew to the site to assess the situation. Mitigate means the Contractor has a technician or crew onsite to address an emergency and initiate actions to save resources and prevent further damage to the facility or equipment (e.g., turn off water, remove standing water, and provide fans to dry the area). Submit SO means the Contractor shall submit a full SO package for approval by HNC. Complete means the repair is complete, any QC inspections are performed, and all documentation is uploaded in the CMMS.

SERVICE ORDER RESPONSE TIMETABLE

TIME PERIOD

PRIORITY

STEP COMPLETION REQUIREMENT

RESPOND (Mobilize)

MITIGATE

SUBMIT S.O.

COMPLETE (AFTER NTP)

DURING NORMAL DUTY HRS.

≤ 5 Business Days

≤ 5 Business Days

PRIORITY DESCRIPTION

Work needed to avoid serious impact to life, health, or safety

Work needed to avoid significant damage to, or loss of, property

Work needed to avoid or mitigate a negative environmental impact

H.6 Cancellation of Work Requests. Only the KO may cancel requests having authorized Service Orders or those already submitted by the Contractor for processing. For CM requests not submitted for processing, only the original requestor, the requestor’s higher chain of command, or COR/ACOR may cancel work requests. When the cancellation is entered into the Facility Management System (FMS), the person making the data entry shall provide the reason(s) for the cancellation in the “Note” for the work request.

H.7 Allowable Costs. For individual corrective maintenance actions requested by the SOA, the work shall be accomplished via Service Order, and the Contractor shall be reimbursed for costs of labor, parts, materials, supplies, and subcontracts, as well as mark-up fees approved at contract award, under the unscheduled maintenance Contract Line Item Number (CLIN). Labor costs for corrective maintenance actions shall not be charged to the Government in addition to the FFP labor if the work is accomplished by the Contractor’s personnel during their normally scheduled 40-hour work week. The cost of preparing Service Order packages, as defined below in paragraph H.8 and all subparagraphs, shall not be included as part of the service order costs, but shall be included in the FFP portion of this contract.

An element of the Contractor's FFP services is to complete an initial assessment of all work requests including cost estimation. Various optional Service Order activities, such as Government-directed procurement of spare maintenance products deliverable to the Government, shall include all labor (excluding Contractor’s direct labor during normal duty hours), materials, subcontract costs, and related fees, but not package preparation costs which are included in the FFP. Labor hours expended on Service Order work are applicable to the overall contract labor-hour type totals determination, in achievement of direct labor utilization requirements.

H.8 Preparing a Service Order Packet & Action Responsibilities. Below is the process that the Site and Contractor work through to initiate a SO and develop the required documentation:

H.8.1 The Government SOA initiates an electronic CM request or Service Order directed to the Contractor that indicates a facility deficiency requiring CM service. The facility work request may originate from a variety of sources, including Government staff trouble reports, as well as notification from the Contractor regarding deficiencies found during performing scheduled PM services. The Contractor shall perform an initial evaluation of the related conditions and determine the extent of the parts, labor and other CM resources needed to resolve the problem. The Contractor shall input service orders into the CMMS IAW PWS paragraphs 4.2 through 4.2.4.

The Contractor shall submit all applicable activity hazard analysis (AHA) to the USACE Safety Office IAW PWS paragraph 5.3.2. The Contractor shall enter the CM data into the FMS to capture the cost, materials, and updated warranty (if applicable) information. The Contractor shall submit to the SOA a completed Service Order form (Technical Exhibit 4) along with a preliminary Scope of Work (SOW) and estimated cost basis. The preliminary SOW shall provide to the Government’s satisfaction sufficient detail to explain: the work to be performed; the location of the work; and the period of performance.

H.8.2 When the DGR concurs that the Service Order is desirable for accomplishing the work, the DGR will sign the service order form. If not provided by the Government, the Contractor shall complete a detailed SOW by including the materials, supplies, & equipment required; and any applicable standards, risk assessments or special considerations related to the work to be performed. All periods of performance are measured from date of KO approval to Government acceptance of the work. After the DGR signs and returns the SO Form, the Contractor shall email the complete SO package to the COR and cc the USACE HNC Safety Office (securesystemssafety@usace.army.mil).

H.8.2.1 Emergency priority Service Orders may typically entail an expedited process in comparison to Routine or Urgent priority CM requests. A statement should be annotated on the Emergency Service order indicating the nature of the emergency as indicated by the Government.

H.8.2.2 Upon receiving an emergency request, the Contractor shall gather as much information as possible regarding the request and the physical conditions and submit a Not-To-Exceed proposal to perform the emergency repair -- including all required safety documentation. This proposal package shall be sent to the KO at the designated 24-hour emergency mobile number/email contacts. The Contractor SHALL NOT perform work until given approval to commence, either verbal or written, by the KO. Upon receiving an approval by the KO, the Contractor shall respond on site within the time specified in paragraph H.5. The Contractor shall not perform work on an emergency SO without a task specific AHA approved by the contractor’s designated Safety Officer. The Contractor shall email a copy of the AHA(s) covering the emergency work to the HNC Safety Office (securesystemssafety@usace.army.mil) within 24 hours of NTP.

H.8.2.3 As soon as practicable following an emergency repair, the Contractor shall submit SO for the actual cost for the emergency. When an emergency CM repair need is identified, it will retain highest priority over any concurrent regular scheduled maintenance and repair work.

H.8.3 Contractor shall provide as required sufficient drawings, sketches, and/or photographs to illustrate the installation, building, and room/area in which the work shall be performed. Any notes, marks, coloring, or highlights made on documents, drawings, or sketches within the project package shall be visible/legible on all copies of the project package produced.

H.8.4 Contractor shall include any applicable Activity Hazard Analysis (AHA) documentation related to the scope of work. If there is (are) an approved AHA(s) covering all work related to the SO, the Contractor shall annotate the AHA tracking number on the SO form.

H.8.5 For work that is self-performed by the Contractor, the Contractor shall show all labor categories being used, the number of man-hours associated with each labor category and what labor rate is being used. Note that the labor rate shall match the labor rate approved for that performance period. The Contractor shall not charge the Government for any labor for unscheduled maintenance tasks where the proposed personnel are included in the FFP portion of the contract and the work is accomplished by those personnel during their normally scheduled 40-hour work week.

H.8.6 The Contractor shall obtain a minimum of two (2) vendor quotes for materials over the micro-purchase limit (currently $2,500). The Contractor shall include a copy of all quotes obtained in the SO package.

H.8.7 For subcontracted work, the Contractor shall:

· Provide all subcontractor quote(s) obtained with adequate detail to determine the cost of labor (labor rates and hours by trade), materials included (item name, description, item number, quantity, unit price, and total price), equipment costs, travel costs (if any), and any other cost items included in the quote.

· Note that only one bid is required under the micro-purchase limit and a minimum of two (2) bids are required to establish competition if cost is over the micro-purchase limit.

· Subcontractor quotes shall be addressed to the prime Contractor and shall be valid for a minimum of forty-five (45) days.

· If multiple bids are solicited and received, use a Statement of Competition & Price Reasonableness Determination form (see Technical Exhibit 4) to document the bids received. If a “best value” bid is requested, the Contractor shall provide a written justification explaining why the low bid is not recommended and how the requested bid is a best value to the Government.

· If multiple bids are solicited but only one subcontractor’s bid is received, use a Statement of Competition & Price Reasonableness Determination form to document the one bid received and the subcontractor “No Bids”. The Contractor shall provide a written justification explaining what measures were taken to obtain competition and why competition was not available. The Contractor shall provide an email from any subcontractor(s) stating the declination to bid. Note that the Contractor is also required to include a Price Reasonableness Determination (PRD) (see Technical Exhibit 4) with backup documents as described below.

· In the event that only a single vendor/source can perform the subcontract work (above $2,500.00), include the Statement of Competition & Price Reasonableness Determination form indicating the single vendor. The Contractor shall also provide a sole source justification using the Sole Source Justification form (see Technical Exhibit 4) that checks the appropriate “sole source” category. In addition to checking the appropriate category, the Contractor shall provide a written explanation why the category applies. Note that the Contractor is also required to include a Price Reasonableness Determination (PRD) with backup documents as described below.

· If a single vendor/source is used (above $2,500.00), the Contractor shall demonstrate to the KO that the pricing included in the service order is considered fair and reasonable. This is done by the Contractor preparing a Price Reasonableness Determination (PRD) form. The KO verifies the Contractor has used means to determine price reasonableness, such as those shown in FAR 13.106-3. These include:

· Market research;

· Comparison of the proposed price with prices found reasonable on previous purchases (NOTE: this cannot be the only source of justification);

· Current price lists, catalogs, or advertisements. However, inclusion of a price in a price list, catalog, or advertisement does not, in and of itself, establish fairness and reasonableness of the price;

· A comparison with similar items in a related industry; or

· Any other reasonable basis.

The key is to be able to compare the subcontractor’s quote with something else of similar nature. Some examples include, comparing the price to an industry accepted estimating software (e.g., Clear Estimates, ProEst by Procore, RS Means, Stack, or equivalent), doing an internet search of similar systems or equipment, and comparing it to similar projects or service orders that the Contractor has done. Contractor completes cost section of the form and submits it and all supporting documentation to the COR for review and concurrence. After concurrence, the COR forwards the service order package to the KO for final approval.

H.8.8 The Government will review the Service Order proposal for available funding, scope, methodology, and compliance with regulations, and may authorize proposals deemed fair and reasonable with a Notice to Proceed (NTP). The government may also choose to not accomplish the work via this contract and may elect to accomplish the work by other means (including in-house forces or other procurement sources).

H.9 Each Service Order authorized by the Government, with the exception of NTE service orders, is itself a firm-fixed price agreement between the Contractor and the Government.

H.10 Approval Authorities

H.10.1 The Contractor will be given service order approval by a KO. The Contractor does not have authority to act upon direction by anyone other than a KO.

H.10.2 A signed service order by an approval authority (e.g., KO) is the Contractor’s authority to proceed. Proper coordination must be made by the Contractor with the ACOR and/or DGR prior to the Contractor entering the secure areas of any DIA facility.

H.10.3 Only the KO has authority to direct the contractor. If other Government officials attempt to direct the contractor, the Contractor shall immediately notify the KO or COR.

Page 1 of 2 09 January 2023