ࡱ> #( / 00DArialngsRomantt tx: 0"DGaramondRomantt tx: 0 DTimes New Romantt tx: 00DWingdingsRomantt tx: 0 A .  @n?" dd@  @@`` x #d     !" 0AA@83ʚ;ʚ;g4jdjd((tx: 0ppp@ <4dddd@ 0t t 80___PPT10 bpRecent Changes to USACE s Continuing Contract Authority ,97ddDU.S. Army Corps of Engineers National Dredging Meeting June 13, 2007Outline|Continuing Contract Authority Continuing Contract Clause Reprogramming Authority Congressional Criticism of USACE s use of Continuing Contract and Reprogramming authority FY 06 Changes to Continuing Contract and Reprogramming Authorities. Interim Continuing Contract Clauses Continuing Resolution and FY 07 Legislation?P?Continuing Contract AuthorityAs as general rule, agencies: Must obligate the full amount of the contract at the time of award. May not allow the contractor to work beyond the amount of funds awarded for that contract. Continuing contract authority allows USACE to: Award a contract for a civil works projects without having all funds available at the time of award. In other words, USACE may award the full amount of a civil works contract even when it has less than the full amount of funds available for that contract. zPP0PPP.Continuing Contract ClauseUnder USACE s traditional continuing contract clause: USACE  reserved the government estimate of contractor earnings for the fiscal year. Once the funds reserved were exhausted, the contractor could work beyond the amount reserved and earn simple interest on the self-financed amount. If USACE failed to reserve additional funds for the contract in the following FY, the contractor could treat the contract as having been terminated for convenience..6ZZ6  ReprogrammingReprogramming is the movement of funds from one object to another in the same appropriation account. Authority to reprogram is inherent in lump sum appropriations, unless otherwise limited by law. Prior to the FY 06 Energy and Water Development Appropriations Act, requirements for reprogramming were contained in the Conference Report accompanying the annual appropriations acts and required only notice to the committees of reprogrammings that exceeded specified dollar amounts.Z >Operation of the Civil Works Program prior to the FY 06 E&WDAA??Continuing contract authority and reprogramming authority allowed USACE to: Start more projects Carryover fewer funds from year to year Reprogram funds from projects with low funding needs in an FY to a project with high needs in that FY. &LL ACongressional Criticism of Continuing Contracts and ReprogrammingBB(Allowing the contractor to work beyond the funding reserved permits the contractor, not USACE or Congress, to decide rate that funds are expended on the project. Obligating the Government in advance of current appropriations requires future appropriation or high termination costs. USACE uses reprogramming authority too liberally, thwarting Congressional prerogatives. USACE uses continuing contracts when other acquisition methods would be more appropriate (e.g., fully funded, base plus options, etc.)XZH  >Congressional Goals for Continuing Contracts and Reprogramming??(Fully fund contracts with low dollar value or contracts that cross only one fiscal year. Reprogram funds less and with closer coordination with the Appropriations Committees.  42006 Energy and Water Development Appropriations Act55(Section 108 prohibits awarding new or modifying existing continuing contracts to commit an amount in excess of what was appropriated for that project plus funds carried over from prior fiscal years and funds reprogrammed to the project. Section 101 restricts reprogramming.6  Impact of Section 101 and 108zUSACE may not permit the contractor to work beyond the amount appropriated for the project for the FY plus funds carried over from the prior fiscal year and funds reprogrammed to the project. Reprogramming authority is severely constrained. Bottom line: Continuing contracts must now be performed through a series of funding increments established for the most part by Congress.*{  New USACE Policies/Continuing Contracts must be approved by HQ USACE and the ASA(CW) Seek approval to use a continuing contract only after rejecting all other acquisition methods. All continuing contracts must use one of the two interim clauses unless approval is granted to use the traditional continuing contract clause.00 #Interim Continuing Contract Clauses$$(MTo comply with the law, USACE published two interim continuing contract clauses: Special Continuing Contract Clause (Budgeted projects) Incremental Funding Clause (Off Budget projects) These clauses are used on an interim basis and are in the DoD process for publication in the Federal Register to solicit public notice and comment. NQhQh+Continuing Resolution and FY 07 Legislation,,( The limitations of Section 108 apply even during the Continuing Resolution. The House Energy and Water Development Appropriations Bill, 2007 includes essentially the same language. Democratic congress? 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S 8 6= _P   P*   8 6B _   R*  H 8 0޽h ? 3380___PPT10._ '^ 0 ,0(  ,x , c $ $  x , c $ $P `   H , 0޽h ? ̙33  0 0<(  0~ 0 s *q  `}   ~ 0 s *q  `  H 0 0޽h ? ̙33  0 4<(  4~ 4 s *8  `}   ~ 4 s *H  `  H 4 0޽h ? ̙33<  0 @<(  @~ @ s *p$  `}   ~ @ s *%  `  H @ 0޽h ? ̙3380___PPT10.<  0  H<(  H~ H s */  `}   ~ H s *  `  H H 0޽h ? ̙3380___PPT10.H 3  0 0L<(  L~ L s *0   `   ~ L s *  `   H L 0޽h ? ̙33  0 PT<(  T~ T s *  `}   ~ T s * = ``  H T 0޽h ? ̙33<  0 p\<(  \~ \ s *  `}   ~ \ s *d  `  H \ 0޽h ? ̙3380___PPT10.R[(<  0 `<(  `~ ` s *  `}   ~ ` s *  `  H ` 0޽h ? ̙3380___PPT10.J<  0 p<(  p~ p s *|  `}   ~ p s *T  `  H p 0޽h ? ̙3380___PPT10.LP<  0 x<(  x~ x s *  `}   ~ x s *Ժ  `  H x 0޽h ? ̙3380___PPT10.bpAB<  0 <(  ~  s *  `}   ~  s *  `  H  0޽h ? ̙3380___PPT10.D,<  0  <(  ~  s *  `}   ~  s *  `  H  0޽h ? ̙3380___PPT10.G0F 0 <V(  <^ < S 8    < c $O8 @   L8What is a Continuing Contract? It is an exception to the general rule for contracting in the Federal government. . . USACE is the only agency with continuing contract authority. Congress granted this authority in 1923. Starting around 1916, the Congress granted the authority on a project by project basis.H < 0޽h ? ̙3380___PPT10.bi2 0 DB(  D^ D S 8    D c $Z8 @   8$We have used this clause since 1977.H D 0޽h ? ̙3380___PPT10.cC" 0 c[@P(  P^ P S 8   U P c $`8 @   In essence, a continuing contract permits the contractor to treat the contract as if it were fully funded, but saves the Treasury from having to appropriate all the funds needed for a project in the year of award.H P 0޽h ? ̙33$ 0 `Xt(  X^ X S 8    X c $h8 @   jVThe Joint Explanatory Statement accompanying the 2004 conference report Report  admonished the Corps to  curtail the practice of allowing contractors to work beyond funds reserved to the contract. The Joint Explanatory Statement accompanying the 2005 Report, in contract, recognized the value of the Continuing Contracts Authority and encouraged the Corps and the  great strides the Corps made in controlling its program. H X 0޽h ? ̙33  0 d&(  d^ d S 8    d c $v8 @   None of the funds made available in title I of this Act may be used to award any continuing contract or to make modifications to any existing continuing contract that commits an amount for a project in excess of the amount appropriated for such project pursuant to this Act: Provided, That the amounts appropriated in this Act may be modified pursuant to the authorities provided in section 101 of this Act or through the application of unobligated balances for such project. $ H d 0޽h ? ̙3380___PPT10.c0  0 *"t(  t^ t S 8    t c $8 @   Congress will establish the amount to be obligated for each project each year and doesn t want the Corps making big changes from that assignment of funds without checking with the appropriations committees.H t 0޽h ? ̙3380___PPT10.cPEO  0 |_(  |^ | S 8    | c $%8 @   UAContractors are limited to the amount reserved on the contract. H | 0޽h ? ̙3380___PPT10.d@>V   0   f (  ^  S 8      c $(8 @   \  These clauses are largely the same as the clause the Corps had traditionally used. However, both clauses remove the Contractor s ability to work beyond the amount reserved. Section 108 was written expressly to limit the Corps ability to let contractor s work beyond the reserved amount. The difference between these clauses is subtle, it call comes down to how termination costs would be paid if the contract is terminated for convenience. The Special Continuing Contract clause does not require the termination for convenience costs to be taken out of the amount reserved to the contract. Termination for convenience costs are a contingent liability on the contract that would be paid out of future appropriations or other available funds. Under the Incremental Funding Clause, termatinion costs are limited to the amount reserved that fiscal year on the contract. In other words, the contractor must set aside the potential costs of termination out of the funds reserved. Why two clauses? It goes back to the risk of termination. We use the Special Continuing Contract clause for budgeted projects because those are highly likely to get appropriations in future years. Congressional adds and other projects not supported in the President s Budget have a less certain future funding stream so we don t want to be left with a huge contingency if Congress fails to fund that project in the out years.ZF8H  0޽h ? ̙3380___PPT10.dDҥrp_#PC egi kNmoqsu"xfz|~2e0a1Oh+'0T hp   ( 4@H<Recent Changes to USACEs Continuing Contract Authority  s0ccgdrmStream Mary Bryan4Microsoft Office PowerPoint@FP@&Q_@pML`VGSg  )'    """)))UUUMMMBBB999|PP3f333f3333f3ffffff3f̙3ff333f333333333f33333333f33f3ff3f3f3f3333f33̙33333f333333f3333f3ffffff3f33ff3f3f3f3fff3ffffffffff3ffff̙fff3fffff3fff333f3f3ff3ff33f̙̙3̙ff̙̙̙3f̙3f333f3333f3ffffff3f̙3f3f3f333f3333f3ffffff3f̙3f3ffffffffff!___www4'A x(xKʦ """)))UUUMMMBBB999|PP3f3333f333ff3fffff3f3f̙f3333f3333333333f3333333f3f33ff3f3f3f3333f3333333f3̙33333f333ff3ffffff3f33f3ff3f3f3ffff3fffffffff3fffffff3f̙ffff3ff333f3ff33fff33f3ff̙3f3f3333f333ff3fffff̙̙3̙f̙̙̙3f̙3f3f3333f333ff3fffff3f3f̙3ffffffffff!___www___e_e____eee_e_e_e_eeee_e_e__e_e_e_e_e_eeee_ee__e_e_eeeeee_e_e_ee___e_eeeeeeeee_ee_e_e_e_eeeeee_e_eee___eeee_ee_eeee_e_eeeeee__eee_ee__eee_e_e_eeeee_eeee_e_eeee_e_e__e_e_e__eeeeee__ee888_8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888e888888888888888888888888____________________88888e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e8_8_e_e_88888eee8888e88888888888888888888e888e8888e888888888888888888e88888e88888888888eee8888888888888888888888888888_e__e__e__8_8_e_88888_8__8__e_88e_8e_8e888_8_888e888_8_888_e__e__e_888888888888888888888888888888888888_e_e_e8888e8_8e8e8888_e888_e8_e888888888888_8888888888e888_88888_e_e_e8888888888_e_e_e_e_e_e_8_88e8_88e_88_88e8_e_e_e88e_e_e_e_8e__e_e_e_e_e_e_e_e_e_e_e_e_eeee88888888888e88888888888e888eee8ee8eeeeee_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_88_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee___e___e___e___e___e___e___e___e___e___e___e___e___e___e___e___e___e___e___e___eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee88888eeeeeeeeeeeeeeeeeeeeeeeeeeeee_e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e__e88e__e__e__e__e__e__e__e__e__e__e__e__e__e_eeeeeeeeeeeeeeeeeeeeeeeeeee88888eeeeeeeeeeeeeeeeeeeeee_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_888_e88_888_e_88ee888e888e888e888e_e_e_8888e888e888e_8888888_8888e_e_888_e888_e_e888e_888__e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_eeeeeeeeeeeeeeeeee8e8e8e8888e8e8eee8eee8e8e88e8e888ee8ee8ee8e8e8eeeeeeeeeeeeeeee_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e8_8e8888e8_e8888_8_8e8_e_e_8e_e_e_8_8e_e88e8e88_8e8888e_88e_e_e8_e8_e8_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_ee_eee_eee_eee_eee_eee_eee_eee_eee_88e8_8e_8e88e8e888e8e8e_e8_eee_e88_8_e8e8888e88e88_8e_8eee_88e8ee_eee_eee_eee_eee_eee_eee_eee_ee_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e8888__88e_e_888_e88_e_8_888_8888e_e_8e_e_e_8888_e_e88_e8e888e_88888_88e_e888e_e_8888e_888_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_e_eeee_eee_eee_eee_eee_eee_eee_eee_ee8ee8eee_eee_eee_eee_eee_eee_8e_eee8ee_ee8ee_eee_eee_eee_eee_eee_eee_eee_eee_ee8eee_eee_eee_eee_eee_eee_eee_eee_eee_eee_?@ABCDEFGHIJKLMNOPQRSUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~Root EntrydO)Current UserSummaryInformation(T(UPowerPoint Document(DocumentSummaryInformation8