AD-HOC CLIN Work Procedures.pdf

Ad-Hoc CLIN Work Procedures

1. Purpose

This document outlines the procedures for authorizing and performing work under the Ad-Hoc Not-To-Exceed (NTE) Contract Line Item Number (CLIN) established in contract SP4705-25-Q- 2025 for Elevator Maintenance Services at the McNamara Headquarters Complex (HQC). These procedures are designed to ensure that all work performed under the Ad-Hoc CLIN is necessary, appropriately priced, and properly documented.

2. Scope

These procedures apply to all work that falls outside the scope of routine maintenance and service calls covered by the fixed-price portion of the contract, as defined in Section 4.41 of the Performance Work Statement (PWS).

3. Definitions

Ad-Hoc CLIN: A Contract Line Item Number (CLIN) established to cover unforeseen issues that arise during contract performance and that are not covered by the fixed-price portion of the contract. The Ad-Hoc CLIN has a Not-To-Exceed (NTE) value of $50,000 per contract year.

COR: Contracting Officer’s Representative. The Government official designated to monitor the Contractor's performance and provide technical direction.

KO: Contracting Officer. The Government official with the authority to enter into, administer, and terminate contracts.

Routine Maintenance and Service Calls: Work that is typically performed on a regular basis to maintain the elevators in safe and proper working order, as defined in the PWS.

Material Costs: The direct cost of materials, parts, and supplies required to perform the work.

Overhead Costs: Indirect costs associated with performing the work, such as administrative expenses, insurance, and utilities.

Profit Percentage: A fixed percentage applied to the sum of Material Costs and Overhead Costs to account for the Contractor's profit.

4. Ad-Hoc CLIN Approval Process

The following process must be followed before the Contractor performs any work against the Ad-Hoc CLIN:

1. Identification of Need: A need for work that falls outside the scope of routine maintenance and service calls may be identified by either the Contractor or the COR. For example:

o The Contractor may identify a component that requires replacement due to wear and tear that is not covered by routine maintenance.

o The COR may identify a need for an upgrade to the elevator control system to improve efficiency or safety.

2. Initiating the Ad-Hoc Work Request:

o (a) Contractor-Identified Need: If the Contractor identifies the need for ad-hoc work, the Contractor submits a written request for authorization to the COR, with a copy to the KO, as described in Section 4.2 (b).

o (b) COR-Identified Need: If the COR identifies the need for ad-hoc work, the COR will notify the Contractor in writing, describing the required work. The Contractor will then prepare a proposal, including a detailed description of the work to be performed, a breakdown of the estimated costs (labor, materials, overhead, and profit), supporting documentation, and the Contractor's recommended course of action and the anticipated schedule for completing the work. The Contractor will submit this proposal to the COR, with a copy to the

KO.

3. Content of Ad-Hoc Work Request/Proposal: Regardless of whether the need was identified by the Contractor or the COR, the following information must be included in the request/proposal:

o A detailed description of the work to be performed, including the specific elevator(s) affected and the nature of the problem.

o A clear explanation of why the work is not covered under the fixed-price portion of the contract, referencing the relevant definitions in Section 4.40 of the PWS.

o A breakdown of the estimated costs (labor, materials, overhead, and profit), prepared in accordance with the pricing guidelines in Section 5 of this document.

o Supporting documentation, such as photographs, diagnostic reports, or manufacturer's specifications.

o The Contractor's recommended course of action and the anticipated schedule for completing the work.

4. COR Review and Recommendation: The COR reviews the Contractor's request/proposal to determine whether the proposed work is justified and falls within the scope of the Ad-Hoc CLIN. The COR may request additional information or clarification from the Contractor. If the COR determines that the work is appropriate for the Ad-Hoc CLIN, the COR will forward the request/proposal to the KO with a recommendation for approval.

5. KO Approval: The KO reviews the COR's recommendation and makes the final determination on whether to approve the use of the Ad-Hoc CLIN. The KO's written approval is required before the Contractor may proceed with the work. The KO's approval may include modifications to the scope of work, the estimated costs, or the approved profit percentage.

6. Written Authorization: The Contractor must receive written authorization from the KO before commencing any work against the Ad-Hoc CLIN. This authorization will specify the approved scope of work, the authorized NTE amount, the approved profit percentage, and any other relevant conditions.

5. Pricing Guidelines

The Contractor's proposed price for Ad-Hoc CLIN work must be based on the following formula:

Proposed Price = Material Costs + Overhead Costs + (Material Costs + Overhead Costs) * Profit Percentage

1. Material Costs: The Contractor shall provide detailed documentation to support all material costs, such as invoices, price quotes, or supplier catalogs. Material costs must be reasonable and consistent with market prices.

2. Overhead Costs: Overhead costs are limited to 10% of the Material Costs. The Contractor shall provide a breakdown of the overhead costs included in the proposed price. Acceptable overhead costs may include:

o Administrative expenses o Insurance o Utilities o Equipment rental o Transportation costs

3. Profit Percentage: The profit percentage is fixed at 10% of the sum of Material Costs and Overhead Costs. The KO reserves the right to negotiate the profit percentage based on the complexity and risk of the work.

6. Documentation Requirements

The Contractor must maintain detailed records of all work performed under the Ad-Hoc CLIN, including:

The KO's written authorization

A detailed description of the work performed

Documentation of all material costs (invoices, price quotes, etc.)

A breakdown of overhead costs

Labor hours and rates

Any other relevant documentation

These records must be made available to the Government upon request.

7. NTE Limit and Tracking

The Contractor shall not exceed the $50,000 NTE amount for the Ad-Hoc CLIN without prior written authorization from the KO. Exceeding the NTE without proper authorization may result in non-payment for the unauthorized work. The Contractor is responsible for tracking all costs incurred against the Ad-Hoc CLIN and shall provide regular updates to the COR and KO upon request, using a format to be provided by the Government.

8. Unused Funds

At the conclusion of each contract year (Base Year and Option Years 1-4), any unused funds remaining in the Ad-Hoc CLIN will be de-obligated and will not be carried over to the next contract year.

9. Contact Information

Any questions regarding these procedures should be directed to the COR and KO identified in the contract.