FY23 B1 PWS - Fort Stewart CM Appendix H Service Order Process 20230821 Rev1.docx

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 SO is a document 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. For this contract, the Government may also issue a SO for facility alterations or new work.

The Government initiates a Service Order request to the Contractor for Corrective Maintenance work or services based upon internal notice or input by the Contractor (typically through PM inspection). Emergency priority requests can entail verbal or expedited authorization as described below.

H.2 Service Order Types.

H.2.1 Routine Service Order.

A routine SO is any repair, facility alteration, or new work request that is not for urgent or emergency repairs (see paragraphs H.2.4 and H.2.5 below). The Government 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 USAG-HI designated representative. The Contractor will also include these deficiencies/repair requirements on the maintenance report. If the USAG-HI representative determines that a repair is required, the Contractor shall initiate a service order see paragraph H.6.

H.2.2 Not to Exceed (NTE) Service Orders.

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

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

· Unknown Quantities. There is one or more material cost with an unknown quantity, e.g., refrigerant leak with an unknown quantity of refrigerant remaining in the unit.

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

· Emergency response required (see paragraph H.2.5 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.7.1 of this Appendix or if an NTE increase shall be approved. An NTE increase is at the discretion of the KO only. Failing to request an increase to the NTE amount may result in the KO determining the Contractor is due the NTE amount and the Contractor will not be reimbursed for any amount exceeding the NTE limit.

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.

H.2.3 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 (SOF). 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.2.4 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 PWS paragraph 4.5.1 4.3.5.5.

H.2.5 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 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 Government, the Contractor shall gather as much information as possible from the USAG-HI representative and submit an NTE proposal to perform the emergency repair including all required safety documentation. This shall be sent to the KO 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. Upon receiving an approval by the KO, the Contractor shall respond on site within the time specified in PWS paragraph 4.5.2 4.3.5.5.

As soon as practicable following an emergency repair, the Contractor shall issue a service order for the actual 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.

H.3 Response and Completion Times.

See PWS paragraph 4.5 and Table 4.5.2 4.3.5.5 for response and completion times.

H.4 Cancellation of Work Requests.

Only the KO may cancel requests already approved (i.e., NTP issued by the KO). For CM requests not approved by the KO, only the original requestor or the requestor’s higher chain of command may cancel work requests.

H.5 Allowable Costs.

The Contractor will be reimbursed for costs of allowable 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.6 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.

H.5.1. Assessment and Cost Estimation.

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, the Contractor shall prepare a corresponding Service Order when requested by the Government. Various optional Service Order activities, such as Government-directed procurement of spare maintenance products deliverable to the Government (e.g., light bulbs), shall include all allowable 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.5.2 Self-Performed Work.

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 if the work is accomplished by those personnel during their normally scheduled 40-hour work week. The KO must approve overtime prior to the Contractor’s personnel working overtime. The Contractor shall also annotate materials purchased, equipment rented, and any allowable travel costs in section II of the SOF.

H.5.3 Materials Purchased by the Contractor.

The Contractor shall obtain a minimum of two (2) vendor quotes, for materials over the micro-purchase limit ($2,500), that are included in a Contractor self-performed service order or provided to a subcontractor. The Contractor shall include a copy of all quotes obtained in the SO package.

H.5.4 Travel.

The Contractor shall include a justification for travel in the SO Form “SERVICE ORDER SOW” section explaining why a local subcontractor or Contractor employee is not available to do the work. The Contractor and any subcontractors shall include travel costs as allowed by FAR 31.205-46 Travel Costs and the Federal Travel Regulation. When requesting mileage, the Contractor shall include a printout of the route from an online mapping program with the mileage clearly shown. If the Contractor requires lodging and is not able to procure a hotel at or below the GSA lodging rate (not including taxes), the Contractor shall include three proposed rates with statements from the hotels they will not honor the GSA rate for Government contractors (an email is acceptable for this requirement). The Government will reimburse for the lowest hotel rate regardless of which hotel the contractor stays at. The maximum allowable hotel rates and Meals and Incidental Expenses (M&IE) rates are available at the following website: https://www.travel.dod.mil/Travel-Transportation-Rates/Per-Diem/Per-Diem-Rate-Lookup/. The Contractor shall only request M&IE if an overnight stay is required. The Contractor shall enter travel costs in the Travel portion of Section II of the SOF for Contractor employees only. Subcontractor travel cost is included in the Subcontracts portion of Section II.

H.5.5 Subcontracted Work.

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 TE-7) 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 the 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. No additional sole source justification required. The Contractor shall provide an email from the subcontractor stating the declination to bid if available. Note that the Contractor is also required to include a Price Reasonableness Determination (PRD) (see TE-7).

· In the event only a single vendor/source can perform the subcontracted 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 TE-7) and check 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). If the Contractor is not seeking competition over $2,500, it can only be for one of the eight (8) justifiable reasons IAW FAR 6.302.

· 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 Contractor shall provide this form to show competitive bids (even if low bidder is not selected), if only one vendor provides a quote, or if they are requesting sole source for one of the eight (8) reasons IAW FAR 6.302. 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 (cannot be the only means to determine cost reasonableness, must be used in conjunction with another means such as current price list, catalog, or advertisement or a detailed estimate from a source such as RS Means or equivalent);

· 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 (the Contractor shall also justify the labor and equipment costs as applicable);

· 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 RS Means (or similar estimating software) or doing an internet search of similar systems or equipment and comparing the quote to similar projects or service orders that the Contractor (or subcontractor or a different subcontractor) has done. The Contractor completes the 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.5.6 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.5.7 Each Service Order authorized by the Government is itself a firm-fixed price agreement between the Contractor and the Government.

H.6 Preparing a Service Order Packet & Action Responsibilities.

H.6.1 Routine, Urgent, and Long Lead Service Orders The DGR initiates a Service Order directed to the Contract Maintenance Manager (CMM) that indicates a deficiency requiring CM service. The 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 provide the DGR 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.

When the DGR concurs that the SO is desirable for accomplishing the work, the DGR will sign the service order form (routine and urgent SO only) found in TE-4. This form can be updated during the Period of Performance without a contract modification. 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 Safety Office (baseops-safety@usace.army.mil) if there is not a preapproved AHA for that work in the approved APP.

H.6.2. Emergency Service Orders 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.

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 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 KO and USACE Safety Officer. Upon receiving an approval by the KO, the Contractor shall respond on site within the time specified in PWS Table 4.5.1 the Service Order RFP and each SO schedule. Only the KO can issue a NTE.

H.6.2.1.

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.6.3.

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.6.4 Service Order Numbering.

The Contractor shall number service orders using the following nomenclature: three letter designation for the region (FSG)-CLIN-sequence number. For example, for the first service order in the base year with CLIN X003 for CM work the service order number would be FSG-0003-001. The fifteenth service order of the first option year would be FSG-1003-015. The Contractor shall include an “E” after the sequence number for emergency SO, e.g., FSG-0003-001E. The Contractor shall use this nomenclature on the SOF on the left side of Part I in the block titled “Service Order NO:”. The Contractor shall also enter the CMMS service order number (if applicable) on the SOF on the right side of Part I in the block titled “CMMS SO REQUEST NO:”.

H.7 Approval Authorities

H.7.1 The Contractor will be given service order approval by the KO. The Contractor does not have authority to act upon direction by anyone other than the KO.

H.7.2 A signed service order by an approval authority (e.g., KO) is the Contractor’s authority to proceed.