Attachment 9_TE-6 ServiceOrderProcess.docx

TECHNICAL EXHIBIT 6

SERVICE ORDER SYSTEM

TE-6-1. The Service Order System is the process by which the Government initiates, coordinates and authorizes CM work to be accomplished via a Service Order (SO). A Service Order is a document instrument for the processing of a request by the Government for Corrective Maintenance (CM) work and services that entail additional cost relative to the work authorized within the FFP Contract, subject to provisions described in the PWS.

TE-6-2 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 (typically through PM inspection). The Contractor promptly evaluates such requests to determine if the CM work may be accomplished within the FFP $500 Service Order Threshold limits. The Contractor directly schedules and accomplishes work within the FFP limit, but if the cost basis of the CM work will exceed the $500 Service Order Threshold of the FFP contract, the Contractor instead submits a Service Order document (TE-7.0) accompanied by a cost proposal (Emergency priority requests can entail verbal or expedited authorization as described below).

TE-6-2.1 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). An SO cost proposal shall remain viable for 45 calendar days minimum. The accompanying two flow process diagrams provide an overview of the SO process for Routine/Urgent and Emergency Service Orders, respectively.

TE-6-2.2 The government may elect to authorize any SO on a Not-To-Exceed (NTE) basis, including a specified dollar cost limit, which allows for progress towards accomplishing corrective maintenance typically when the exact nature or extent of the problem is not fully established. Ongoing communication by the Contractor regarding progress of NTE orders is crucial, and the Contractor is instructed not to perform or install work beyond the established NTE cost limit, which is not normally reimbursable. Emergency CM work that must be accomplished after normal business hours may be authorized via Service Order unless scheduled due to convenience of, or negligence by, the Contractor.

TE-6-3. All CM work requests that are issued to the Contractor shall be recorded and issued by the Government in a computerized format, although the Government Contracting Officer/Ordering Officer 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 hard-copy records shall be maintained by the Contractor for the duration of the task order 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 government/COR for review on request.

TE-6-4 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.

SERVICE ORDER RESPONSE TIMETABLE

TIME PERIOD

PRIORITY

STEP COMPLETION REQUIREMENT

RESPOND / (ANSWER)

MITIGATE

SUBMIT S.O.

COMPLETE (AFTER NTP)

DURING NORMAL DUTY HRS.

PRIORITY DESCRIPTION

PRIORTY LEVEL

DESCRIPTION

EMERGENCY

Work required to restore mission critical functionality

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

TE-6.5. Cancellation of Work Requests. Only the KO or OO may cancel requests having authorized Service Orders or those already submitted by the Contractor for Service Order System processing. For standard (Non-SO) CM requests, only the original requestor, the requestor’s higher chain of command, the FOS/aFOS or COR may cancel work requests. When the cancellation is entered into the work order management system, the person making the data entry shall provide the reason(s) for the cancellation in the “Action Note” for the work request.

TE-6-6. Allowable Costs. For individual corrective maintenance actions having a cost basis exceeding $500.00 (direct labor, materials and subcontract costs), 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 task order award, under the unscheduled maintenance line item. Labor costs for corrective maintenance actions exceeding the $500.00 threshold 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 in below in Paragraph TE-6-7 and all subparagraphs, shall not be included as part of the service order costs, but shall be included in the FFP portion of this task order.

TE-6.6.1 An element of the Contractor's FFP services is to complete an initial assessment of all work requests including cost estimation. For any requested Corrective Maintenance work that the Contractor estimates will exceed the Service Order threshold, the Contractor shall notify the government that authorization of a Service Order would be required to follow-through on the requested work, and the Contractor shall prepare a corresponding Service Order when requested by the government. The Contractor’s initial response efforts for a CM work or Service Order request that are within the $500 CM Service Order Threshold shall be included in the FFP, but such services that are part of a Service Order exceeding the $500 Threshold shall be charged to the Government as part of a Service Order. The Contractor shall notify the government of the need for a CM Service Order before accrued costs exceed the $500 CM Threshold and submit a Service Order proposal for this work. A Service Order for a specific maintenance activity may not be issued after work has already exceeded the Service Order Threshold, except under unusual extenuating circumstances and as authorized by the Contracting Officer on a case-by-case basis. When work for an authorized CM Service Order is completed but the actual applicable costs do not exceed the $500 Service Order Threshold, the Service Order shall be closed with no charges assessed to the Government. Various optional Service Order activities, such as Government-directed procurement of spare maintenance products deliverable to the Government, may not subject to the $500 CM Service Order Threshold and shall include all labor, 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.

TE-6-7 Preparing a Service Order Packet & Action Responsibilities. Below is the process that the Site and BaseOps Contractor work through to initiate a service order and develop the required documentation:

TE-6-7.1. COR or aFOS/FOS initiates an electronic CM request or Service Order directed to the CMM 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 the course of 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. Any such work deemed to fall within the scope of the FFP contract shall be documented and completed via a standard CM work order without further consideration (no SO). When the cost basis of the required CM Work is determined by the Contractor to exceed the $500 Service Order Threshold, the Contractor shall notify the government via a completed Service Order form (Technical Exhibit TE-7) along with a preliminary Scope of Work (SOW) and estimated cost basis, and sends to the CMM. 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.

TE-6-7.2. When the Government concurs that the Service Order is desirable for accomplishing the work, 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.

TE-6-7.2.1 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.

TE-6-7.2.2 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 Contracting Officer and Government Safety Officer 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 Contracting Officer and Safety Officer. Upon receiving an approval by the Contracting Officer, the Contractor shall respond on site within the time specified for that particular installation.

TE-6-7.2.3 As soon as practicable following an emergency repair, the Contractor shall issue an actual service order for the cost for the emergency. When an emergency minor CM repair need is identified, it will retain highest priority over any concurrent regular scheduled maintenance and repair work.

WORK FLOW FOR ROUTINE/URGENT SERVICE ORDER WORK REQUESTS

WORK FLOW FOR EMERGENCY SERVICE ORDER WORK REQUESTS

TE-6-7.3. 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.

TE-6-7.4. Contractor shall include any applicable Activity Hazard Analysis (AHA) documentation related to the scope of work.

TE-6-7.5. 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 task order and if the work is accomplished by those personnel during their normally scheduled 40-hour work week.

TE-6-7.6. The Contractor shall obtain a minimum of two (2) vendor quotes, for materials over the micro-purchase limit, that are included in a Contractor self-performed service order.

TE-6-7.7. For subcontract work whose cost is anticipated to exceed the micro-purchase limit, the Contractor:

a) Note that only one bid is required for a service order under the micro-purchase limit and a minimum of two (2) bids are required to establish competition if the service order is over the micro-purchase limit. Subcontractor bids are to be addressed to the prime Contractor and dated within the last 60 days. Summarize all subcontractor bids on a Statement of Competition & Price Reasonableness Determination form.

b) If multiple bids are solicited and received, use a Statement of Competition & Price Reasonableness Determination form 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 valid and how the requested bid is a best value to the Government.

c) If multiple bids are solicited, but only one subcontractor’s bid 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 the subcontractor stating the declination to bid. Note that the Contractor is also required to include a Price Reasonableness Determination (PRD).

d) In the event that only a single vendor/source can perform the subcontract work, 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 that checks the appropriate “sole source” category. In addition to checking the appropriate category, the Contractor shall provide a written justification explaining what measures were taken to obtain competition and why competition was not available. Note that the Contractor is also required to include a Price Reasonableness Determination (PRD).

e) If a single vendor/source is used, it is also the responsibility of the Contractor to demonstrate to the KO that the pricing included in the service order is considered fair and equitable to the Government. This is done by the Contractor preparing a Price Reasonableness Determination (PRD). The KO verifies the Contractor has utilized means to determine price reasonableness, such as those shown in FAR 13.106-3. These include:

f) 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 RS Means, doing an internet search of similar systems or equipment, such as GSA Advantage, or comparing it to similar projects or service orders that the Contractor has done.

g) Contractor completes cost section of the form and submits it and all supporting documentation to the COR for review and concurrence.

h) After concurrence, the COR or designated Government Representative forwards the service order package to the USAESCH BASEOPS KO for final approval.

TE-6-8. Each Service Order finally authorized by the Government is itself a firm-fixed price agreement between the Contractor and the Government.

TE-6-9. Approval Authorities A) The Contractor will be given service order approval by either a Contracting Officer or an Ordering Officer depending on authority limits. The Contractor does not have authority to act upon direction by anyone other than a Contracting Officer or Ordering Officer.

B) A signed service order by an approval authority (e.g. Contracting Officer or Ordering Officer) is the Contractor’s authority to proceed. Proper coordination must be made by the Contractor with the installation prior to the Contractor entering the installation.

C) *** NOTE: ONLY THE KO OR OO HAS AUTHORITY TO DIRECT THE CONTRACTOR. DIRECTION FROM THE OO MUST BE WITHIN THE OO’S DELEGATED AUTHORITY. IF OTHER GOVERNMENT OFFICIALS ATTEMPT TO DIRECT THE CONTRACTOR, CONTRACTOR SHALL IMMEDIATELY NOTIFY THE KO OR OO.

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