CONTRACTADMINISTRATIONMANUALFOR CONSTRUCTION CONTRACTSMOBILE DISTRICTCONSTRUCTION DIVISIONCONTRACT MANAGEMENT BRANCHMay 2009
May 2009Contract Administration ManualSAMDM 1110-1-1DEPARTMENT OF THE ARMYMOBILE DISTRICT, CORPS OF ENGINEERSCONTRACT ADMINISTRATION MANUALFORCONSTRUCTION CONTRACTSTABLE OF CONTENTSCHAPTER 1INTRODUCTIONCHAPTER 2SECTION 2.1SECTION 2.2CONTRACT MODIFICATIONSGENERALCATEGORIES OF MODIFICATIONSSECTION 2.4SECTION 2.6THE MODIFICATION PROCESSGOVERNMENT ESTIMATESSECTION 2.7SECTION 2.8UNDEFINITIZED CONTRACT ACTIONSCONTRACTOR COST OR PRICING DATASECTION 2.11SECTION 2.12STANDARD FORM 30PROCEDURES FOR ISSUING UNILATERALMODIFICATIONSGENERAL GUIDELINES FOR AMEMORANDUM OF FACTSPERFORMANCE AND PAYMENT BONDSSECTION 2.15SECTION 2.16CHAPTER 4CONTRACTOR PROGRESS PAYMENTSCHAPTER 5SECTION 5.1SECTION 5.2SECTION 5.4OTHER PROCUREMENTDELIVERY/TASK ORDERSSMALL PURCHASES (LESS THAN 100K)8(a) SOLE SOURCECHAPTER 6CONTRACT CLOSEOUTCHAPTER 7CLAIMSAPPENDIX BAPPENDIX FWINRMS PROCEDURESCEFMS PROCEDURESChapters/sections as listed above have SAM specific items not covered in SADDM 1110-1-1iThis printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1CHAPTER 1 – INTRODUCTION1. PURPOSEThis manual is to present the basic requirements, procedures, and essential informationfor guiding Mobile District personnel in aspects of contract administration relative toconstruction contracts administered by the Mobile District. This manual is a supplementto the South Atlantic Division, Contract Administration Manual for ConstructionContracts, SADDM 1110-1-1 and supersedes SAMDM 1110-1-1, dated March 2007.The official version of this manual resides on the public website as show below:http://www.sam.usace.army.mil/cd/DM 1110-1-1/dm1110-1-1.htmThis manual does not supersede the requirements of law, governing regulations, or thespecific provisions of contracts. The manual cannot cover all possible conditions andrequirements that develop in administering construction contracts. It is intended tofurnish information of a practical nature. Since operating conditions will vary ondifferent projects, certain field office policies and procedures must be formulated by eachArea/Resident Engineer to meet the varying conditions of a particular office. When themanual does not provide appropriate or complete guidance, exercise good judgment.Request assistance of your District Office personnel as necessary.2. APPLICABILITYAll personnel of the Mobile District, Corps of Engineers, who Administer ConstructionContracts are responsible for using this manual.3. REFERENCES SADDM 1110-1-1, Contract Administration Manual For Construction ContractsER 5-1-11, U.S. Army Corps of Engineers Business Process (HQUSACE)USACE Business ProcessFAR, DFARS, AFARS, EFARS, and other references in SADDM 1110-1-1USACE Publications1-1This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-14. RELATED DOCUMENTS CESAD-QMP, South Atlantic Division Quality Management PlanSAD Quality Assurance ManualSAD Lessons Learned/Construction BulletinsSAD Safety Success Program5. DEFINITIONSDefinitions of terms used are as shown in Appendix A, of SADDM 1110-1-1.6. RESPONSIBILITIESSee SADDM 1110-1-1, Chapter 1 for specific Responsibilities.7. PROCEDURESee SAMDM 1110-1-1 for specific procedures.8. QUALITY RECORDSSee SAMDM 1110-1-1 for specific records/forms.9. ATTACHMENTSSee SAMDM 1110-1-1 for specific attachments.10. REVISION HISTORY(1) As the need arises, CD-M will post added or revised pages to the manual on thewebsite.1-2This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1/dm1110-1-1.htmRevisions will be numbered in sequence, starting with Revision 1, and the date of therevision indicated. The rewritten material or additions will be by the entire chapter orsection revised and the month and year of the revision will be placed in the header of thechapter or section where applicable.(2) It will be the responsibility of each individual to check the website for the mostcurrent version and/or revisions to the manual.(3) All individuals using this manual are encouraged to submit recommendations toimprove the manual directly to the following:251-690-2916251-690-2894Browder, Gary W SAMMoore, Mary M SAMRevisionLevelOriginalRevisionDateSep 2006Description of RevisionsFirst issue of SADDM 1110-1-11Mar 2007Revision 1 to incorporate items taken out ofSADDM 1110-1-1.2Revision 2 to update manual due revision to SADDMMay 2009 1110-1-1 and due to changed policy and/orprocedures.1-3This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
March 2007Contract Administration ManualSAMDM 1110-1-1CHAPTER 2 - CONTRACT MODIFICATIONSSECTION 1 - GENERALJeffrey A. Mason, CD-M, 251-690-2190 is the primary support for the following offices:Operations Division, all offices.North Regional Area Office, including all resident and project offices.South Alabama Area Office, including all resident and project offices.Kathy A. Michael, CD-M, 251-690-3576 is the primary support for the following offices:Florida Area Office, including all resident and project offices.Gulf Coast Area Office, including all resident and project offices.Latin America Area Office, including all resident and project offices.2.1.2 Authorities.c. For a list of the ACO’s and COR’s in Construction Division, go to the followingwebsite: https://cd.sam.usace.army.mil/aco cor/ACO-COR.doc.2-1-1This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
March 2007Contract Administration ManualSAMDM 1110-1-1CHAPTER 2 - CONTRACT MODIFICATIONSSECTION 2 - CATEGORIES OF MODIFICATIONS2.2.1 Supplemental Agreementb. Out-of-Scope changes, see FAR Subpart 6.3.(1) Out-of-Scope approval authorities.SBA 8(a) Contracts: For modifications less than 100,000 approval from SBACoordinator is not required. For modification exceeding 100,000, field office personnelshall notify Small and Disadvantaged Business Utilization(SADBU) and CT for coordination and approval by SBA.E-mail confirmation will be sufficient.Other Contracts: For modifications less than 500,000, field office shall preparejustification review document (Justification and Approval(J&A)). J&A shall be sent to CD-M for routing and approvalby Chief of Contracting prior to issuing modification. For modifications exceeding 500,000, see EFARS 6.304. Sample J&A guide shown in Exhibit 2.2A.2.2.2 Un-definitized Contract Action (Unpriced Contract Modification). Seeadditional information on NTPs (UCAs) in RMS Bulletin E.2.2.3 Unilateral Modifications. The Contracting Officer may allow an ACO to issue a unilateralmodification; however, prior approval is required.2-2-1This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1Justification and ApprovalFor Other than Full and Open Competition1. Contracting Activity. Specify the contracting and requiring activities responsible forthis action.2. Description of Action. State whether approval is being requested for a new contractor a modification. Include type of contract, type of funds to be used (MICON, Civil,O&M) and, when applicable, the estimated share and ceiling arrangements, and fee orprofit.3. Description of Supplies or Services. Describe the supplies/services. Include theestimated total value, including options, if any. The following should be the last sentence.The Mod number for this action is4. Authority Cited. Identify the statutory authority permitting other than full and opencompetition, followed by the FAR citation and FAR citation title. Seven examplesfollow. Choose the one that applies:10 U.S.C.2304(c)(1) as implemented by FAR 6.302-1 -- Only One Responsible Sourceand No Other Supplies or Services Will Satisfy Agency Requirements.10 U.S.C.2304(c)(2) as implemented by FAR 6.302-2 -- Unusual and CompellingUrgency.10 U.S.C.2304(c)(3) as implemented by FAR 6.302-3 -- Industrial Mobilization;Engineering, Developmental, or Research Capability; or Expert Services.10 U.S.C.2304(c)(4) as implemented by FAR 6.302-4 -- International Agreement.10 U.S.C.2304(c)(5) as implemented by FAR 6.302-5 -- Authorized or Required byStatute.10 U.S.C.2304(c)(6) as implemented by FAR 6.302-6 -- National Security.10 U.S.C.2304(c)(7) as implemented by FAR 6.302-7 -- Public Interest. 5. Demonstration that proposed contractor’s unique qualifications.If the authority is FAR 6.302-1, include the required delivery schedule and lead-timeinvolved. If using the authority at FAR 6.302-1(a)(iii) you must be specific as to theduplication of cost (how much, where you got the information and when, and citereferences).Exhibit 2.2AThis printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1If the authority is FAR 6.302-2, include the required delivery schedule and lead-timeinvolved as well as a discussion of the serious injury to the Government which wouldresult if award of a contract is delayed.6. Efforts to Obtain Competition. FAR 5.202 – Exception, see Item 4 above.7. Fair and Reasonable Cost Determination.I hereby determine that the anticipated cost to the Government for this contract actionwill be fair and reasonable. Provide the basis for this determination (e.g., describetechniques to be used to determine fair and reasonable price, such as cost analysis, priceanalysis, audit, should cost, independent Government estimate, etc.).8. Market Research. Market Research was not conducted because of the unusual andcompelling urgency for national security which is in the public’s best interest.9. Other Factors. Discuss any other facts supporting the use of other than full and opencompetition, such as the following:(i) Explanation of why technical data packages, specifications, engineeringdescriptions, statements of work, or purchase descriptions suitable for full and opencompetition have not been developed or are not available.(ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.3021(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and howthe estimate was derived.(iii) When 6.302-2 is cited, data, estimated cost, or other rationale as to the extentand nature of the harm to the Government.10. Interested Sources. Include a listing of the sources that have written to expressinterest in the acquisition, if applicable.11. Technical/Requirement Certification. I justify that the supporting data under mycognizance which are included in the justification are accurate and complete to the bestof my knowledge and belief.NAME: Name of Technical CertifierTITLE: Title of Technical CertifierDATE:SIGNATURE:Technical Certification official must be ACOExhibit 2.2AThis printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-112. Legal Sufficiency Review. I have reviewed the foregoing justification and approvaland deem it legally sufficient.Name: Name of Legal CounselDate:Title:Signature:Legal Counsel13. Contracting Officer Certification. This certification shall be made by the contractingofficer who will sign the contract resulting from this justification and approval.I certify that this justification is accurate and complete to the best of my knowledge andbelief.NAME: Contracting Officer’s NameDATE:TITLE:SIGNATURE:Contracting OfficerExhibit 2.2AThis printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1J&A Approval for contracts not exceeding 550,000.Per Far 6.305 for proposed contracts not exceeding 550,000, the contracting officer’scertification required by 6.303-2(a)(12) will normally serve as approval. Under thesecircumstances, the following pages are not required.J&A Approval for contracts exceeding 550,000, but not exceeding 11.5 million:For a proposed DoD contract exceeding 550,000, but not exceeding 11.5 million, thejustification must be approved by the Competition Advocate. Under these circumstances,complete the approval statement and signature block immediately following this note.14. Special Competition Advocate Recommendation.Based on the foregoing justification, I hereby approve the procurement of scope of workas identified in item 3 above on other than full and open competition basis pursuant to theauthority as specified in item 4 above.Approval is granted subject to the availability of funds, and provided that the servicesand property herein described have otherwise been authorized for acquisition.NAME: Name of Special Competition Advocate DATE:TITLE: Special Competition AdvocateSIGNATURE:For a proposed DoD order not exceeding 11.5 million, the following pages are notrequired.J&A Approval for contracts exceeding 11.5 million, but not exceeding 78.5million:For a proposed DoD contract exceeding 11.5 million, but not exceeding 78.5 million,the justification must be approved by the head of the procuring activity placing the order(Head of Contracting Agency – HCA). Under these circumstances, complete therecommendation/ approval statements and signature blocks on the following 2 pages.Exhibit 2.2AThis printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-114. Special Competition Advocate Recommendation.I have reviewed this justification and approval for purchase of scope of work as identifiedin item 3 above and recommend approval of this procurement as authorized in item 4above.Name: Name of Special Competition Advocate Date:Title:Special Competition AdvocateSignature:15. PARC Recommendation.I have reviewed this justification and approval for purchase scope of work as identified initem 3 above and recommend approval of this procurement under as authorized in item 4above.NAME:Name of Principal AssistantResponsible for contractingDATE:TITLE: Principal Assistant Responsible for ContractingSIGNATURE:16. HCA Recommendation.Based on the foregoing justification, I hereby approve the procurement of the scope ofwork as identified in item 3 above on an other than full and open competition basispursuant to authority as specified in item 4 above.Approval is granted subject to availability of funds, and provided that the services andproperty herein described have otherwise been authorized for acquisition.Name:Name of Head of Contracting AgencyDate:Position/Title: Head of Contracting Agency Signature:Exhibit 2.2AThis printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1CHAPTER 2 - CONTRACT MODIFICATIONSSECTION 4 - THE MODIFICATION PROCESS2.4.12 AuditWhen the proposal involves in excess of 650,000, including increases, decreases, or acombination of both, an audit (field pricing report) may be required by FAR.Contracting Division will coordinate all elements of audit execution on civil and militarycontracts.Where the need exists, audits may be requested for proposals less than 650,000.2.4.17 Legal Sufficiency Review.Any modifications that are within the warrant of the ACO (less than 500,000) do notrequire review by Office of Counsel unless they are out of scope or potentiallyproblematic. However, any modification that requires KO’s signature will require reviewby Office of Counsel. See PL CESAM 02-072-4-1This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1CHAPTER 2 - CONTRACT MODIFICATIONSSECTION 6 - GOVERNMENT ESTIMATES2.6.2 Responsibility. Government estimates for changes, modifications, and claimsexceeding 100,000 may be prepared by the Construction Division Area/Resident officepersonnel using a suitable format. In this case, the Cost Engineer may be consulted orinvolved in the review process. The final approval of the estimate will be made by theChief, Engineering Division or the Chief, Construction Division (as appropriate). TheGovernment estimate will be included in the contract modification documentation and issubject to the approval of the Contracting Officer. The ACO may approve Governmentestimates within the ACO's delegated authority.2.6.11 Revision. Based on the cost/technical analysis, scope of work discussions, ordiscussions during negotiations, it may be necessary to revise the Government estimateprior to or during negotiations. Any negotiated settlement shall not exceed theGovernment estimate by more than 15%. If a fair and reasonable settlement is reachedand the settlement exceeds the Government estimate by more than 15%, the GovernmentEstimate shall be revised upwards. Revisions to the Government Estimate shall bedocumented in the PNM.2.6.13 Approval. Government Estimates shall be approved prior to conductingnegotiations with the contractor. Revised Government Estimates may be approved afternegotiations have concluded if revisions are required to reflect any changes in the scopeof work of the modification. If the change involves more than the ACO designatedamount, or involves clauses other than those delegated to the ACO, the GovernmentEstimate will be forwarded to CD-M for approval. CD-M will insert the “Approved By”signature line based upon availability of appropriate personnel.2-6-1This printed copy is for “Information Only.” The controlled version resides on the SAM Contract Administration Website.
May 2009Contract Administration ManualSAMDM 1110-1-1CHAPTER 2 - CONTRACT MODIFICATIONSSECTION 7 - UNDEFINITIZED CONTRACT ACTIONS and UNPRICEDCHANGE ORDER (UCO)2.7.6 Procedures for Issuance of a UCO by the Contracting Officera. Where the UCO exceeds the ACO’s authority, the responsible field activitywill obtain a change request number and a modification number from RMS using theprocedures specified in Appendix B, RMS Bulletin E. Mail or electronically transmitoriginal documents to CD-M. In addition, provide the contractor’s facsimile numberand telephone number. It is not mandatory to transmit the entire ROM estimate withthe supporting documents to CD-M; send only a copy of the signed ROM summary.b. If PM is processing the PR&C amendment of funds for a UCO already sentto CD-M, PM will be responsible for getting the approved funding citation to CD-M.c. CD-M will review the SF 30 and supporting documents (GE or ROM,Statement in Support of UCO, draft SF30, a Memorandum of Facts, and copy ofcertified PR&C) and verify the accuracy of the un-priced modification. Anydiscrepancies will be coordinated with the field office. The field office will correctthe SF 30 and notify CD-M when the SF30 is ready to be printed in RMS for COsignature. Consent of Surety (SF 1414 or SF 1415) will be prepared by CD-M whenrequired.d. Due to the urgency of a notice to proceed, CD-M will be responsible forcoordinating the modification for the un-priced NTP through the remaining channels,including CD, PM, OC, and CT, to the Contracting Officer and return to CD-M assoon as possible.e. CD-M will telefax executed copies of the modification to the contractor andresponsible field office, confirm receipt, and forward advanced signed copies to RMand CT. CD-M will also mail a copy of the executed modification and, whereapplicable, the Consent of