Contract Administration & Modifications
Post-award contract administration procedures, modification processes, performance monitoring, and closeout requirements for SBIR Phase III contracts.
Post-Award Contract Administration Overview
Post-award contract administration generally follows standard FAR Part 42 procedures for surveillance, inspection, payment, and closeout.
A key distinction for SBIR Phase III is that CICA requirements were met upon entry into the SBIR program; therefore, modifications to scope and ceiling do not require a justification, as required for other contracts.
Key Distinction for SBIR Phase III Modifications
No J&A Required
Per 15 U.S.C. §638(r)(4) and SBA Policy Directive Section 4(c)(5), there is no statutory limit on the number, duration, or dollar value of Phase III modifications.
Scope modifications (No J&A needed)
- Add new tasks or deliverables
- Remove or reduce tasks
- Adjust performance standards
- Change technical approach
Ceiling increases (No J&A needed)
- Increase contract value
- Add funding for new capabilities
- Extend period of performance
- Scale services up or down
Contracting Officer Discretion:
However, contracting officers retain discretion within available funding. Modifications must: be within general scope of original contract, have funding available, be in government's best interest, and be properly documented.
FAR Part 42 Procedures
Contract Surveillance
COR Responsibilities:
- • Monitor contractor performance against PWS
- • Implement QASP
- • Review deliverables for technical adequacy
- • Document surveillance results
- • Recommend acceptance or rejection
Surveillance Methods:
- • Monthly deliverable reviews
- • Quarterly performance assessments
- • Site visits (as required)
- • Technical reviews with SMEs
- • Stakeholder feedback collection
Inspection & Acceptance
Inspection:
- • Verify deliverables meet requirements
- • Check technical accuracy and completeness
- • Validate data sources and methodology
- • Confirm professional quality standards
- • Assess timeliness
Acceptance/Rejection:
- • COR recommends acceptance
- • CO makes final decision
- • Document in contract file
- • Trigger payment or request correction
Payment Processing
Invoice Submission:
- • Wide Area Workflow (WAWF) system
- • Monthly invoicing
- • Supporting documentation (CPFF CLIN)
Invoice Review & Payment:
- • COR reviews for accuracy
- • Validates work performed
- • CO approves payment
- • Processed through DFAS
- • Typically 30 days from receipt
Modification Process
Modification Request
- • Contractor or Government initiates
- • Description of proposed change
- • Cost/schedule impact analysis
- • Justification for change
Government Review
- • Technical review by COR
- • Cost analysis
- • Funding availability check
- • Determine if within scope
Negotiation (if applicable)
- • Discuss technical approach
- • Negotiate cost/price
- • Agree on schedule
- • Finalize terms
Modification Issuance
- • Prepare modification
- • Obtain required approvals
- • Execute modification
- • Notify contractor
- • Update contract file
Bilateral Modifications (Both parties agree)
- • Scope changes
- • Ceiling increases
- • Schedule adjustments
- • Technical approach changes
Unilateral Modifications (CO authority)
- • Administrative changes
- • Exercise of options
- • Funding changes (within scope)
- • Definitization
Performance Monitoring
Quality Assurance Surveillance Plan (QASP)
Systematic method to monitor contractor performance and ensure PWS requirements are met.
Performance Standards
| Standard | Metric | Target |
|---|---|---|
| Timeliness | On-time delivery rate | > 95% |
| Quality | First-time acceptance rate | > 90% |
| Responsiveness | Response time to requests | 24hrs (urgent), 5 days (routine) |
| Accuracy | Error rate in deliverables | < 5% |
QASP Elements: Performance standards (from PWS), surveillance methods, surveillance frequency, acceptable quality levels, documentation requirements
Monthly Activities
- • Review all deliverables
- • Monitor cost accumulation (CPFF CLIN)
- • Check invoice accuracy
- • Document surveillance results
Quarterly Activities
- • Comprehensive performance assessment
- • Trend analysis
- • Issue identification and resolution
- • Performance counseling (if needed)
Annual Activities
- • Complete CPARS evaluation
- • Option period exercise recommendation
- • Lessons learned documentation
Contract Performance Assessment Reporting System (CPARS)
Assessment Frequency:
- • Annual evaluations required
- • Interim evaluations for option period decisions
- • Final evaluation at contract completion
Assessment Areas:
- • Technical performance
- • Schedule adherence
- • Cost control
- • Management effectiveness
- • Small business utilization (if applicable)
CPARS Ratings:
Closeout Procedures
Technical Closeout
- • Verify all deliverables received and accepted
- • Confirm all technical requirements met
- • Obtain final reports
- • Archive deliverables
Financial Closeout
- • Final invoice processing
- • Cost reconciliation (for CPFF)
- • Close out funding
- • Final payment
Administrative Closeout
- • Complete final CPARS
- • Document lessons learned
- • Archive contract file
- • Release bonds (if any)
- • Close contract in system
Deliverable Archive
Required archives: All monthly, quarterly, annual reports; all software deliverables; all documentation; correspondence file; performance evaluations
Duration: Per FAR and agency-specific records retention requirements
Best Practices
Proactive Communication
- • Regular status meetings
- • Early identification of issues
- • Collaborative problem-solving
- • Clear expectations
Documentation
- • Document all significant events
- • Maintain correspondence file
- • Track modifications
- • Archive decisions and rationale
Performance Management
- • Address issues promptly
- • Provide constructive feedback
- • Recognize exceptional performance
- • Use CPARS effectively
Data Rights Management
- • Verify proper marking
- • Protect SBIR data appropriately
- • Train personnel
- • Monitor compliance
Related Resources
- Process Flow - View contracting process
- Acquisition Strategy - Section F - Performance evaluation approach
- Data Rights Guide - SBIR data rights obligations
- Resources & Tools - Checklists and templates