Appendix_A_Service_Order_Process.pdf

Appendix A

SERVICE ORDER REQUIREMENTS

U. S. Army Engineering and Support Center

Huntsville, Alabama

SECTION 1 – SERVICE ORDERS

1.0 General

In reference to this contract, a service order (SO) is a document, which is initiated and approved by the government, requesting the contractor to perform minor repair work on federally funded petroleum systems/equipment at various government installations and/or facilities covered by this contract. The contractor shall provide all personnel, equipment, tools, materials, supervision and all other services necessary to perform minor repair tasks. The contractor shall provide a proposed price on the initially submitted service order. The price/quantity/process for completing the minor repair shall be subject to negotiations and the final price will be annotated on the service order. All service orders shall be considered firm-fixed price (FFP) agreements between the contractor and the government. All service orders shall be documented in accordance with a government-approved service order form.

Service Order Types:

Routine Service Order - A routine service order shall be submitted for non-emergency minor repairs as requested by the QAE and as described in paragraph 1.1.

o Long Lead service orders are a type of Routine service order and described in paragraph 1.4.

Emergency Service Order – An emergency service order shall be submitted for emergency repairs as requested by the QAE and as described in paragraph 1.2

Not To Exceed (NTE) Service Order – A NTE service shall be submitted if a site visit is required for troubleshooting in order to define the scope and price of a routine service order, or if the contractor is already on site and a repair is requested by the QAE. NTE SO price limit is at the contracting officer’s discretion. Specific requirements are described in para. 1.3.

1.1 Routine Service Orders

A routine service order is any repair request from the QAE that is for non-emergency repairs.

The QAE can request a routine service order at any time throughout contract duration; however, during scheduled maintenance visits, the contractor will identify any deficiencies/possible repairs and notify the facility Quality Assurance Evaluator (QAE). The contractor will also include these deficiencies/repair requirements on the maintenance report. If the QAE determines that repair is required, the QAE may request the contractor to perform the repair through a routine service order. The repair request is at the discretion of the QAE.

QAE signatures: For routine service orders, the QAE will sign the initial service order validating the requirement. The contractor will then price the service order and submit to HNC. The contractor shall not begin work until receipt of a notice to proceed (NTP) issued by the Contracting Officer (KO) or Ordering Officer (OO.) Upon completion of the repair, the QAE will sign the service order a second time to verify that the contractor has completed the repair.

1.1.1 Routine Service Order Prioritization

The QAE will determine the priority of a service order based on the priority determination table below. The contracting officer will make the final determination.

Priority 1 (high) – Contractor shall complete service order within thirty (30) calendar days after receiving Notice to Proceed (NTP). If other site visits are scheduled during this timeframe the service order can be performed during the same visit; however, for priority 1 SOs, the most important factor is time and the SO shall be completed as soon as possible.

Priority 2 (medium) - Contractor shall complete service order within ninety (90) calendar days after receiving Notice to Proceed (NTP). The contractor should make effort to combine service orders at a location or group of locations in order to complete service orders with one mobilization.

Priority 3 (low) - Contractor shall complete service order at the next possible RM visit, or within one hundred eighty (180) calendar days after receiving Notice to Proceed (NTP). Note that the next possible RM visit could be 2 RM visits from the time of initiation depending on when the SO is initiated (e.g. The QAE initiates the SO shortly before an RM visit). The purpose of the priority 3 SOs is to perform the service order at an RM visit unless the site is only receiving annual recurring maintenance. In either case, the contractor will have 180 days in order to make every effort to combine service orders at a location or group of locations in order to minimize mobilization costs.

The following table shall be included in the SO package when submitted to the government.

PRIORITY DETERMINATION SHEET

Instructions: QAE should estimate the priority of the service order. Place an "X" in the box for Priority 3 (LOW), Priority 2 (MEDIUM), Priority 1 (HIGH) for each factor.

This is meant to be a guide only. Final determination of priority will be determined by USACE. Provide justification for factors determined to be high priority.

TASK PRIORITY DETERMINATION MATRIX

FACTOR 3 (LOW) 2 (MEDIUM) 1 (HIGH)

Mission/Operation Impact < 25% 75% < X > 25 % > 75%

Level of Urgency Low Medium High

Long Lead Items

Items greater than 90 days

Items greater than 45 days

None

Environmental Impact (e.g.

NOV pending)

Negligible Marginal Critical

OVERALL PRIORITY OF

SERVICE ORDER

Priority Determination

Justification :

1.2 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 that is require 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 QAE, the contractor shall gather as much information as possible from the QAE and submit a Not-To-Exceed proposal to perform the emergency repair including all required safety documentation. This shall be sent to the contracting officer and safety officer 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 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.

An emergency service order shall be priced the same as a routine service order. The contractor shall be paid for emergency service orders under the firm-fixed price (FFP) minor repair and emergency response line item of the Order.

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 repair need is identified, it will retain highest priority over any concurrent regular scheduled maintenance and repair work.

QAE signatures: For emergency service orders, the QAE will only sign the service order once verifying completion of the work.

1.3 Not to Exceed (NTE) Service Orders

NTE Service Orders shall be used for one of the following situations:

Troubleshooting

Contractor is already on site

Mobilization

Troubleshooting Service Orders – 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 a site QAE. Troubleshooting service orders shall be reserved for complex or undefined repair needs.

Contractor On Site – In the event that a repair is requested by the government while the contractor is already on site, the contractor may submit a NTE for the repair.

In the event that the repair cannot be performed within the $10,000 limit, the contractor shall immediately notify the contracting officer. The contracting officer will determine if a routine service order shall be submitted for approval in accordance with paragraph 1.1 of this attachment or if an NTE increase shall be approved. An NTE increase is at the discretion of the Contracting Officer (KO) or Ordering Officer (OO) (depending on price and authority limits) 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.

QAE signatures: For NTE service orders, the QAE will only sign the service order once verifying completion of the work.

1.4 Long Lead Service Orders

A Long Lead (LL) Service Order 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 will be the same as a routine service order.

2.0 Service Order Stages

2.1 Initiation Stage

Initiation is defined as the number of days from when the QAE requests the SO (start) until the Prime Contractor submits the SO to USACE (end). Service Orders shall be submitted within 18 calendar days after QAE repair request. Service orders shall be initiated only by the QAE at each installation.

2.2 Review and Approval Stage

Review and approval phase is defined as the time that it takes to process and approve a service order. If a SO is sent back for corrections, the additional time that the contractor has the service order is added to the initiation phase.

2.3 Completion Stage

Completion phase is defined as the number of days from the service order NTP to completion of work. Service orders shall be completed within the timelines described in paragraph 3.4. A service order completion report shall be submitted in accordance with Appendix B.

3.0 Service Order Process Requirements

3.1 Service Order Price Limit

CM requirements that exceed the simplified acquisition threshold may be competed as a separate task order at the discretion of the Contracting Officer.

3.2 Service Order Format

All service orders shall utilize the format in the provided SO spreadsheet. This spreadsheet will be provided after contract award.

The contractor shall create a PDF portfolio with all required signatures and shall submit the pdf portfolio along with the Microsoft Excel spreadsheet to the government.

3.3 Database Program

The service orders shall be tracked by the Contractor using a database program. The database will maintain, at a minimum, all minor repair and emergency services performed on specified equipment (to include government real property inventory information) at the designated facility per Service Order. Records will be maintained for the duration of the order and turned over to the Government at completion of the contract. The Government will be allowed unlimited/unrestricted access to the contractor developed database.

See PWS paragraph 1.16.3 for guidance concerning the government SO database.

3.4 Response and Completion Times

Unless otherwise stated in the PWS, the response times shall be as follows:

Normal Duty Hours (Other Than) Normal Duty

Hours Classification Response Time Completion Response

Time Completion

Emergency 12 hours after notification from

QAE

72 hours after NTP from KO or OO (NTP by email)

12 hours 72 hours

Routine 18 calendar days after QAE request

IAW Prioritization Must be performed within Duty Hours unless requested by QAE

The contractor has responded to routine request when the contractor has gathered all necessary information required in order to complete the service order and submitted a complete service order package to HNC.

The contractor has responded to an emergency request when the contractor has gathered all necessary information required in order to complete the service order and submit an NTE request to the contracting officer.

The contractor shall notify the government upon completion of each service order. Reference paragraph 2.3 of this Appendix.

In the event that the contractor cannot meet the performance objectives listed above, the contractor shall notify the government immediately and provide justification and an estimated completion time. The contracting officer shall make the determination whether the delay is outside the contractor’s control and justifiable.

3.5 Service Order Facility Number Requirements:

Multiple facility numbers may be submitted on a single SO. The cost for the repairs at each facility shall be identified on the service order.

3.6 Work Plan Preparation

Work plans must be submitted with the service order and shall be submitted in accordance with 01 33 00 Submittal Procedures.

Work Plan Review Meeting. The Contractor shall attend a work plan review meeting following the initial work plan submittal when specified or requested by the Contracting Officer. The review meeting shall be used by the Contractor to resolve any technical comments or issues and shall be coordinated by the Contracting Officer or his/her designated representative.

Each work plan submittal shall be submitted electronically along with the service order as a pdf “portfolio” in order to retain electronic signatures.

The material presented in each portfolio shall be presented in the order defined below. Each of the sections within the pdf shall be separated with labeled section tabs. (b. through e. are required for all SOs) Photos may be included in multiple sections.

a. Table of Contents. (Not required on Low Complexity SOs)

b. Scope of Work.

c. Price Analysis.

d. Site Specific APP. The SO shall have the site specific attachment to the APP for the site that work is to be performed.

e. AHA. Each SO shall have an AHA which has been approved by the contractor Safety

Manager.

f. Site Investigation Report. A copy of the complete site investigation report shall be included.

g. Work Plan Narrative. The narrative shall include detailed discussions of the work to be performed, all assumptions, a list of specific codes and standards to which the maintenance/repair action will adhere, and all conclusions and recommendations. The contractor shall indicate coordination with the installation for disposition of all removed equipment and materials.

h. Asbestos/Lead Based Paint Abatement Plan. The work plan shall include the findings of the Asbestos/lead based paint survey and if applicable, a plan for abatement of any asbestos and lead based paint.

i. Specifications. Specifications may be edited Unified Facilities Guide Specifications, Industry Specifications, or Manufactures Product Data. Work Plan Narrative shall specify what specifications will be followed. This is subject to approval by the contracting officer.

j. Manufacturers Data. Manufacturers catalog cuts and specifications shall be submitted as required to document the materials to be supplied. Also, manufacturers' installation procedures or execution specifications shall be included as required to indicate the methods of installation of all materials. The Contractor shall use the manufacturer’s data to tie together the shop drawings, catalog cuts, and installation requirements into a comprehensive package that defines the maintenance/repair action.

k. Sketches. Sketches shall be submitted to show the location and relationship of all equipment and material. Maintenance/repair actions involving potential life safety hazards shall be overseen and signed off by a registered professional engineer experienced in the area of the maintenance/repair.

l. Repair Specific Schedule. The repair schedule shall define the time line of all major activities required to implement the maintenance/repair action, including project phasing. The schedule shall be completed at a level of detail that allows both the contractor and the facility personnel to understand each major task and phase associated with the maintenance/repair action. Each major task in the schedule shall be approved by facility personnel. The Contractor shall document the phasing required for the entire maintenance/repair action. The repair schedule shall define all equipment shutdown and re-activation dates and the use of any temporary equipment necessary to perform equipment shutdowns. The repair schedule shall be presented in a Gantt type chart using Microsoft Project.

3.7 Approval Authorities

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.

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 via the QAE or designated government representative prior to the contractor entering the installation.

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.

4.0 Service Order Pricing

It is the Contractor’s responsibility to manage the SO process in such a manner as to maintain equipment operational rates, minimize equipment downtime and provide the Government services and materials at the lowest price available.

4.1 General Service Order Pricing Requirements

Cost of all miscellaneous consumable supplies including safety equipment shall be included in the recurring maintenance firm fixed price.

Consumable items that are to be used to directly support the service order and will not be utilized again may be priced separately on the service order.

Cost of all miscellaneous overhead items such as cell phones, air cards, laptops, office supplies, etc. shall be included in the recurring maintenance firm fixed price.

4.2 Pricing Data Details

The Contractor shall provide an itemized breakdown of proposed cost and pricing data in sufficient detail to substantiate the Service Order. The price breakdown shall include sufficient detail to permit analysis of profit and all costs including but not limited to costs associated with material, labor, equipment, travel, subcontracts, and overhead. All proposed Service Order shall include the expected number of days required for completion. Labor hours will be broken down in a manner such that price reasonableness by task can be determined. The Contractor shall include description of work to performed, labor rates of personnel to complete the task and hours proposed. Government can request further clarification if unclear relative to the scope.

Service orders will be e-mailed to: TBD@usace.army.mil

Email subject line as follows: Contract Number-Site-Service Order Number-Priority Category

4.3 Subcontractor Quotes

The Contractor shall provide similar price breakdowns to substantiate any amounts claimed for Subcontractors or work to be performed by Subcontractors. Contractor shall provide price quotes from Subcontractors on the Subcontractor’s company letterhead when subcontracting specialty work. Multiple quotes will be required at the discretion of the Contracting Officer.

4.4 Parts and Equipment Pricing

Price quotes shall be submitted for spare parts and equipment rentals on the respective company’s letterhead. Long lead procurement of part shall also be identified in the proposed work execution schedule. Contractor shall identify on the first page of the Service Order template the longest lead time for parts (or services, if applicable). The Contractor shall request an NTP for long lead items which have a delivery period in excess of two (2) weeks.

NOTE: Water and power hook-ups can be expected to exist within 300 feet of the ACP. If greater distances are encountered, the Contractor shall contact the Contracting Officer for direction and approval prior to incurring additional expense.

4.4.1 Parts and Equipment Quotes

Sufficient information must be provided for each Service Order material item to substantiate item pricing. Manufacturers’ part numbers, key specifications, published catalog pricing, or product descriptions can be submitted to fulfill this requirement. In the case of proprietary equipment, the vendor will provide documentation that other sources are not available. Pricing will be considered valid for one year after the initial approval unless documentation from the vendor is provided to verify a price increase has been implemented.

4.5 Service Order Identification

Service order numbering format shall be XYZ-KTR-123, where “XYZ” is the site code, “KTR” is the contractor’s three letter code, and “123” is the service order number

Emergency SOs will be annotated with an “E” at the end of the SO number (XYZ-KTR-123E)

NTE SOs will be annotated with an “N” at the end of the SO number (XYZ-KTR-123N)

SOs returned for corrections by the government will be annotated with a “C” at the end of the SO number (XYZ-KTR-123C)

Corrected SOs shall be returned to USACE with a revision number. First revision will be annotated as: XYZ-KTR-123-REV1. Second revision will be annotated as XYZ-KTR-001- REV2. The contractor is responsible for tracking the revision number.

4.6 Service Order Revisions

If revisions and/or unforeseen sight conditions occur, the Contractor shall describe all repairs involved in the SO; whether the work was deleted, added, or changed. The Contractor shall provide documentation for materials or parts that are substituted from the original scope or added to the original scope. SO submitted as a revision will be annotated with a numeric value that represents the revision number. Example: Revision 1. Substitutions are acceptable IAW manufacturer recommendations for use and do not void the warranty as applicable.

4.7 Travel Costs and Mobilization

The contractor is required to submit a price travel quotation as part of the service order request.

The quotation shall include the purpose of the trip, and all travel cost associated with the trip to include travel destination/airport, Number of Travelers, Airline Ticket Cost, Hotel Rate, and Car Rental Rate, Per Diem Rate, Length of the stay (days and nights), and Mileage. The Contractor shall provide documentation with each invoice that travel and per diem is invoiced in accordance with the items and rates allowable under the Joint Travel Regulation (JTR) for reimbursement to DoD civilian employees and other traveling at DoD expense in accordance with FAR 31.205-46 and the Contractor’s schedule. No travel should be taken prior to approval by the Contracting Officer.

The government will not reimburse travel costs over 250 miles.

4.8 Contractor Price Certification

The pricing submitted on each service order shall be approved and certified by an authorized representative of the contractor.

Individuals authorized to approve pricing shall be listed within the contractors Quality Control Plan or otherwise designated in writing.

The contractor certifying official shall sign the service order prior to submission to the government signifying an official price proposal for the service order.

5.0 Complexity

The contractor shall initially suggest what the level of complexity is and it shall be designated on the service order. Each SO will have a separate tab with the following matrix which shall be filled out by the contractor:

TASK COMPLEXITY DETERMINATION MATRIX

FACTOR LOW MEDIUM HIGH

Coordination with other trades, other contractors, customer, or owner/operators

X

Likelihood of outage of utilities and/or systems X

Level of unknowns or undefined conditions X

Level of interaction with regulatory entities X

Level of urgency X

Logistical difficulty X

OVERALL COMPLEXITY OF TASK

X

Final determination of complexity as well as what is required to be included with each service order is up to the contracting officer or designated representative. After determining the level of complexity, the contractor shall utilize the table below when determining what to submit with each service order package. This is meant to be a guide only. Final determination of complexity as well as what is required to be included with each service order submission will be determined by USACE.

Required Content *Complexity

Low Medium High Scope of Work Yes Yes Yes Pictures Yes Yes Yes Cost Proposals Yes Yes Yes SSAPP Yes Yes Yes AHA Yes Yes Yes

WORK PLAN REQUIRED FOR MEDIUM AND HIGH COMPLEXITY

Table of Contents A/R Yes Yes Work Plan Narrative A/R Yes Yes Manufacturers Data A/R Yes Yes Sketches A/R Yes Yes Detailed Drawings A/R A/R Yes Project Specific Schedule A/R A/R Yes Specifications A/R A/R Yes Project Specific Quality Control Plan A/R A/R Yes Work Plan Review Meeting/Pre-Con A/R A/R Yes Site Investigation Report A/R A/R Yes

* A/R = As Required

All Service Orders determined to be Highly Complex will require onsite project management by the prime contractor unless otherwise waived by the contracting officer or designated representative.

The government reserves the right to add or remove Work Plan package requirements as needed.

SECTION 2 – DEFINITIONS AND ELIGIBILITY

All repairs shall comply with the following definitions and eligibility requirements unless noted otherwise:

DOD 4140.25-M Definitions: DL1.1.119 defines Repair as “The restoration of a real property facility to such condition that it may be effectively utilized for its designated purpose. See volume II, chapter 8 of this manual for examples of repair projects and when such projects are classified "construction" projects.”

DOD 4140.25-M Vol.II Chapter 8 L.1.3.d. defines repair as “The restoration of a real property facility to such condition that it may be effectively utilized for its designated purpose by overhaul, reprocessing or replacement of constituent parts or materials that have deteriorated by action of the elements or usage and have not been corrected through maintenance.

(1) Facility upgrades to comply with environmental, safety, fire protection and electrical codes may be classified as repair.

(2) Repair projects may replace constituent parts of a facility, i.e., piping, electrical wiring, etc., in order to comply with current standards or modern accepted engineering practice. However, if during a repair by replacement of a constituent part of a facility, increase in size, capacity, etc., is due solely to mission change, the difference in cost between "repair by replacement" and the cost of the upgrade is construction.

(3) In general, repair must not exceed 50 percent of the replacement cost of the facility without approval from the installation.

(4) The installation of cathodic protection incident to the repair of a real property facility shall be processed as part of the repair project.” *Note: The Preventive Maintenance and Minor Repair program does not generally perform maintenance or repair to cathodic protection.