Attachment_0009_-_Purchasing_Invoicing_Guide_10.04.16.docx

ENHANCED ACQUISITION GLOBAL LOGISTICS ENTERPRISE (EAGLE) FORT SILL TASK ORDER (W52P1J‐17-R-0001) GUIDE FOR GOVERNMENT APPROVAL & OVERSIGHT OF CONTRACTOR PURCHASING & INVOICING

This guide details the process that the United States Government (USG) will use to conduct and oversee contractor purchasing and invoicing subject EAGLE Task Order for Fort Sill, OK. Each step in the process will be described in detail along with the responsibilities of each individual position. It is the intent of the Government that the process will be sufficient for detailed cost accounting and approval without negatively impacting the contractor’s ability to provide Maintenance, Supply and Transportation services at Fort Sill, OK. If the process is found to negatively impact operations it will be re‐evaluated by the USG and updated appropriately to achieve the desired effect.

The guide is comprised of six (6) sections:

(1) Decisions made defining the course of action detailed in this guide

(2) Roles and responsibilities in the purchasing & invoicing process (3) Flow diagrams for both the purchasing and invoicing processes (4) Immediate and enduring actions required

(5) Summary

(6) Samples

(7) Appendix

(1) DECISIONS MADE DEFINING THE COURSE OF ACTION DETAILED IN THIS GUIDE

(i) As of the date of this guide, for the purpose of temporary duty (TDY) requests, purchasing supplies/expendable goods and equipment/durable goods, the Contractor shall obtain written validation from the COR and approval from the PCO for those purchases that fall within the Other Direct Cost (ODC) surrogate CLIN defined in the contract. Justification letters are required for each request for documentation purposes and will be retained for referencing during invoice review. Any purchase made without gaining the proper approvals is at the contractor’s own risk. Separate invoices for Labor and ODC CLINs is recommended to avoid delaying the approval of Labor invoices.

Every contractor purchase request (PR), at or above $3,000 dollar amount, must be validated (as defined in this guide) by the Contracting Officer’s Representative (COR) and approved (as defined in this guide) by the Procuring Contracting Officer (PCO). No prior approval is required for purchase requests below $3,000 dollar amount. TDY requests, regardless of the dollar amount, must be validated by the Contracting Officer’s Representative (COR) and approved by the Procuring Contracting Officer (PCO).

(ii) The purchase approval and invoice review process will be managed via e‐mail. The pervasiveness of e‐mail connectivity should allow the Contractor, COR, and PCO to communicate freely and effectively.

(iii) All interim cost invoices will be entered into WAWF as a “Cost Voucher” and approved by the Defense Contract Audit Agency (DCAA) after email concurrence from the PCO and COR The Final cost invoice (i.e. last one of the performance period) will be entered into WAWF as a “Cost Voucher” and approved by the PCO via WAWF. (Appendix 1)

(iv) All fixed price invoices (i.e. Transition-In CLIN) will be entered into WAWF as “2-in-1 Services Only” and approved by the PCO. (Appendix 1)

(2) ROLES AND RESPONSIBILITIES IN THE PURCHASING & INVOICING PROCESS

(a) Contractor

Role: Single Logistics Provider for Maintenance, Supply and Transportation tasks at Fort Sill, OK. Purchase Process Responsibilities: The contractor will take direct action during the purchase process. Upon recognizing the need for a purchase, the contractor will submit a complete PR, including a minimum of three competitive quotes for needed supplies/equipment/service, to the on‐site COR (if the on‐site COR is not available the contractor will provide the PR directly to the PCO). The PR should clearly state the justification for each item/service requested. The COR will disapprove of (with rationale) or validate (does not give the contractor direction) the item/service for purchase. If validated, the PR will be sent from the COR to the PCO for an approval determination. The PCO will review the validated PR and if acceptable will sign the document clearly annotating “Approved”. A PR signed “Approved” by the PCO is the only document that gives government approval to the contractor to make the purchase. Once the signed/approved documentation is received from the PCO the contractor is authorized to make the purchase.

Upon receipt of the purchased item, the contractor will coordinate with the on‐site COR to ensure that all items that were approved on the PR/justification letter are documented appropriately in the contractor’s property book system.

Invoice Process Responsibilities: The contractor will take direct action during the invoice process. The contractor will produce an invoice on a regular basis for submission to the COR and the PCO for concurrence prior to submission into the Wide Area Work Flow (WAWF) system. If the invoice contains items purchased through the government purchase process the invoice will reference the purchase request or purchase order number(s) associated with the purchased line item. The contractor shall assure that the COR has annotated that each item purchased has been received and recorded in the property book. Contractor shall provide COR concurrences with its invoice package to the PCO for review/approval. Once the invoice is submitted to the PCO, it will be reviewed and concurrence/nonconcurrence by the PCO shall be obtained prior to submission into WAWF and DCAA before DFAS payment. The Contractor will not submit any invoices for payment that have not been approved by the PCO. Upon concurrence from the PCO the contractor will generate in WAWF either a “Cost Voucher” for cost type invoices (i.e. labor/fee and ODC CLINs) or a “2-in-1 Services Only” for firm fixed price type invoices (i.e. Transition – In CLIN). The contractor will attach via upload the email concurrences from both the PCO and COR along with the DCAA required backup data to support cost invoices.

Note: All but the last cost type invoice will be entered as an “Interim Cost Voucher” and the last cost invoice of the performance period will be entered as a “Final Cost Voucher.”

(b) Contracting Officer’s Representative (COR)

Role: On‐site government representative observing the day‐to‐day operations performed by the contractor. Validates contractor requests for purchase and confirms received items are accurately accounted for in the Contractor’s records.

Purchase Process Responsibilities: The COR will take direct action during the purchase process. The COR will be the first person the contractor approaches with a PR, including estimated prices (if the COR is unavailable then the contractor is to go directly to the PCO). The COR will review the PR for appropriateness and, if the request is deemed inappropriate, will return the package to the contractor with constructive comments. If the request is deemed prudent, the COR will validate* the purchase request (*validation does not financially obligate the government nor does it give the contractor direction to purchase) by signing the PR (written or electronic signature) and clearly stating “Validated”. The COR will then send the validated PR via e‐mail back to the Contractor, who will then send the validated PR with three competitive quotes for each item to PCO for review and approval.

For filing purposes the subject of the e‐mail will be, “EAGLE TASK ORDER Fort Sill — Validated Contractor Purchase Request # XXXX”. If the PR is approved by the PCO, then the COR will receive (cc e‐ mail) a copy of the approved PR for his/her records.

The COR is also responsible for confirming that purchased items are properly annotated in the Contractor’s property system when the purchased items arrive on site. The COR will ensure the item matches what was approved on the PR and will ensure that the item is properly documented in the contractor’s property book system. Upon completion, the COR will send an e‐mail to the PCO documenting the successful receipt and annotation of property by the Contractor. For filing purposes the subject of the e‐mail will be, “EAGLE TASK ORDER Sill — PR# XXXX confirmed in Contractor property system”.

Invoice Process Responsibilities: The COR takes direct action during the invoice approval process. The COR, in coordination with the PCO, provides confirmation of receipt of services and supplies and annotation of property by the Contractor for items included in the invoice. The COR is allowed 7 days to review and concur on the invoice. The on‐site COR shall provide its concurrence to the Contractor’s site manager. The Contractor site manager will provide the COR‐validated invoice to the PCO for review. After 8 days, invoice is deemed to be authorized by the COR for payment if the COR has not taken a position on the invoice. In this instance, the Contractor will submit invoice to the PCO for approval without the CORs concurrence stating the COR review time had expired. Should corrections be necessary, these will be made on the next invoice for those items found by either the COR or PCO.

(c) Procurement Contracting Officer (PCO)

Role: Warranted individual capable of financially obligating the government; ensures the Contractor is abiding by the terms of the contract.

Purchase Process Responsibilities: The PCO will take direct action during the purchase process. The PCO will receive a PR from the Contractor including a minimum of three competitive quotes (or single source vendor justification) that was reviewed and validated by the COR. Any line item that exceeds 15% of the original estimated cost that was initially validated by COR will need to be resubmitted by the Contractor to COR for revalidation before the PCO will conduct its review. The PCO will review the PR for appropriateness regarding price reasonableness and assuring the contractor follows proper purchasing process. If acceptable, the PCO will sign the contractor’s PR clearly stating “Approved”. The PCO will provide a signed copy (via e‐mail) of the PR to the contractor as well as the COR for their records. If the PR is deemed unacceptable, the PCO returns the package to the contractor with constructive comments and the formal disapproval. The PCO files the PR as official record of the government’s approval to the contractor to make the purchase.

Invoice Process Responsibilities: The PCO takes direct action during the invoice process. The PCO will receive the contractor’s invoice from the contractor via email prior to entering into WAWF. If material purchases are included on the invoice the PCO will conduct a sampling cross‐check of no less than 40% of the total costs of the invoiced items with the PRs. Once the sampling of line items on the invoice are validated and the PCO receives the COR validation of the invoice, the PCO will concur on the invoice and provide concurrence to the contractor for input into WAWF. The PCO has 3 days to provide concurrence after receipt of the COR validation of the invoice.

If a firm fixed price CLIN is being invoiced (2-in-1 Service Only) the PCO will enter into WAWF and approve the contractor’s invoice for payment. If a cost CLIN is being invoiced (Cost Voucher) the PCO is not required to take any action in WAWF as DCAA reviews and ultimately approves/disapproves in WAWF.

(d) Defense Contract Audit Agency (DCAA)

Role: Independent auditing of contractor invoices.

Purchase Process Responsibilities: DCAA does not take direct action during the purchase process.

Invoice Process Responsibilities: DCAA takes direct action during the cost invoice process. DCAA performs a review of cost invoices (Cost Vouchers) prior to approval to DFAS authorizing payment. If the contractor’s billing system is not approved for direct billing then DCAA will have the responsibility of reviewing all invoices prior to payment of the invoice by DFAS. If direct billing is approved then a random sample will be reviewed in accordance with DCAA established parameters.

Purpose: The primary purpose is to review the voucher to provide reasonable assurance that the amounts claimed are not in excess of that which is properly due the contractor in accordance with the terms of the contract prior to approval of provisional payment. Additionally the review is to ensure that contract overpayments are identified promptly and that any amounts due the government are refunded timely or properly offset. DCAA shall not process any invoice in WAWF if it does not have the PCO’s email concurrence. The PCO’s email concurrence serves as confirmation that the COR and PCO have completed their reviews prior to submission in WAWF.

(3) FLOW DIAGRAMS FOR BOTH THE PURCHASING AND INVOICING PROCESSES

(a) Purchasing Flow Diagram

1. Contractor identifies need for purchase Documents need on contractor generated numbered purchase request (PR) Provides three quotes for the product to allow for the best value determination Send via e-mail or hand delivers PR to COR (or PCO if COR unavailable)

4. Contractor purchases the approved item Documents purchase in company records Receives item and notifies the COR of arrival References PR number Send via e-mail or hand delivers PR to COR (or PCO if COR unavailable)

3. PCO receives the PR package Makes an assessment based on appropriateness/reasonableness/best value If deemed acceptable, the PCO signs the PR clearly indicating “approved” and provides the package to the Contractor via e-mail PCO courtesy copies the COR with the approved PR for their records If deemed unacceptable, the PCO returns the package to the COR with constructive comments for the Contractor

2. COR receives contractor PR and quotes Reviews package for appropriateness/reasonableness/best value If deemed acceptable, validates with signature clearly indicating “validated” and e-mails validated package to PCO E-mail subject line: “EAGLE Task Order Sill-Validated Contractor Purchase Request” If deemed unacceptable, returns package to contractor with constructive comments

4. PCO receives numbered PR Retain in PCO files for invoice matching

5. COR acknowledges Contractor receipt of the purchased item at the request of PCO Confirms received product matches that approved on the numbered PR/justification letter Confirms that the Contractor enters the property into its property book in accordance with FAR 52.245-1 Sends e-mail to PCO with subject line “EAGLE TASK ORDER Fort Sill-PR# xx Confirmed in Contractor Property Systems”

6. PCO retains e-mail record

(b) Invoice Flow Diagram

1. Contractor submits electronic invoice to the COR & the PCO for concurrence prior to submission in Wide Area Work Flow (WAWF) If the invoice contains items purchased through the Government Purchase process, the invoice will reference the Purchase Request (PR) or Purchase Order (PO) number(s) associated with the purchased line item.

The Contractor will provide the COR concurrences with the invoice package to the PCO for review and approval.

2. PCO reviews contractor submitted invoice package with COR validations If material purchases are included in the invoice, the PCO will conduct a sampling cross-check of no less than 40% of the total costs of the invoiced items against the PRs.

Once the sampling of the line items on the invoice are validated and the PCO receives the COR validation of the invoices, the PCO will concur on the invoice and provide it to the Contractor with written concurrence to load the invoice into WAWF.

The PCO has 3 days to review and either Approve or Disapprove the invoice from time of receipt.

If rejected, the PCO will return invoice package to the Contractor with constructive comment and courtesy copy the COR

6. COR reviews the item purchased upon receipt by the Contractor Ensures that it matched what is listed on the PR and records confirmation in the Contractor’s Property Book

5. DFAS pays the Approved Invoice

4. DCAA reviews the signed invoice, performs a pre-payment verification of billing in accordance with DCAA procedures If the invoice is compliant, DCAA approves the invoice for payment.

If rejected, DCAA will return invoice package to the contractor with constructive comment If firm fixed price, PCO performs acceptance in lieu of DCAA (Appendix 1)

3. Contractor inputs consolidated invoice in Wide Area Work Flow (WAWF) per DFARS 252.232.7003 for government approval

(4) IMMEDIATE AND ENDURING ACTIONS

(a) IMMEDIATE

• The PCO will establish WAWF accounts. The PCO will verify/request WAWF “”Acceptor” role under their same Admin DoDAAC.

• The PCO will establish a relationship with the DCAA office assigned to EAGLE Task Order Fort Sill with the intent of setting expectations for invoice audits.

(b) ENDURING

• The COR will use this guide in conducting their responsibilities in the purchase and invoice processes. Purchase and invoice training will occur simultaneously with training on the checklist requirements per the Performance Work Statement (PWS)

• Functional experts having archival responsibilities will keep records readily accessible.

(5) SUMMARY

This document provides a detailed description of the initiation, validation, approval and archival of financial documentation expected on EAGLE Task Order Fort Sill. As the effort progresses it is expected that the PCO and CORs, will recognize opportunities for efficiency improvements in the purchasing and invoice process. As those efficiencies are identified it is the responsibility of those parties to re‐evaluate this guide as appropriate.

(6) SAMPLES

The following sample Documents are found on the proceeding pages:

a. Blank Purchase Request Document

(7) APPENDIX

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Microsoft_Excel_Worksheet1.xlsx

PR (USD)

PROGRAM PURCHASE REQUISITION

Requisition No. Requisition Date:

Request By: Deliver To:

Name Name

Phone # Phone #

Email Email

Site Site

Department Department

Priority Required Delivery Date

Item Qty U/M Complete Description (Reference Attachments if required) Est. Unit Price Total Charge Code

TOTAL: $ - 0

Justification:

Requested By: Date COR Validation(4) Date

Site Manager Approval(2) Date Logistics Manager Approval (5) Date

Budget & Finance Approval(3) Date DPM Aprroval (6) Date

ACO Approval(7) Date

(Revised 2 NOV 2007; Previous Forms Obsolete) image3.png image4.png image5.png