Expertise

Competence

Contracting

Contract Administration

Contracting Methods

Contract Administration

Technical Support

                Quality Assurance

Specialties

Need assistance in cost reimbursement contracting? The Chemical Demilitarization Directorate (CD) of the U. S. Army Engineering and Support Center, Huntsville (USAESCH) has gained extensive experience in cost reimbursement contracting providing support to the U. S. Army's Chemical Demilitarization Program. (CDP). We have learned from experience, (both good and bad) that the management of cost reimbursement contracts requires an understanding and appreciation for the special relationship that must exist between the Government and the contractor. Expertise is currently available at the USAESCH through the communities of practice concept.

Since 1991, the USACE has provided support to the U. S. Army in planning, facility design, construction, equipment acquisition and installation as part of a multi-billion dollar program to destroy the US stockpile of chemical weapons. Over the years, CD has gained significant experience in design and construction management of complex facilities that are currently being used to destroy the nation's stockpile of configured and non-configured chemical munitions.

USAESCH, as the USACE Life Cycle Project Manager for facility and equipment design and construction for all MILCON funded portions of the Chemical Demilitarization facilities and equipment, is a team member providing support to an integrated multi-agency team. With a scope including demilitarization plants in eight states, Johnston Atoll, in the Pacific Ocean, and Russia, the CDP has been and is one of the most challenging missions being executed by the US Army.

The Integrated Product Delivery Team management structure of HNC is ideal for the management of cost reimbursement contracts. HNC has the capability and resources to provide expert support in cost reimbursement contracting. Our team is experienced in utilizing automated information management systems and process mapping through our support during the development of flow charts that link all the steps in the PMBP process. Our project managers are experienced in developing effective project management plans in a multi-agency environment consistent with our customers expectations. The CDP team includes stakeholders from several government agencies, citizens groups, state and federal regulators, support contractors, and prime contractors. USAESCH team membership includes employees from administrative and technical elements throughout the Center, formed into co-located units of cross-functional members. This framework promotes open and honest communication, builds trust, and focuses energy on meeting goals and objectives. Members better understand the contribution of different organizational elements to the mission.

Management Philosophy in Cost Reimbursement Contracts

In Cost Reimbursement contracts, Corps representatives must become involved in cost control in a very detailed manner in order to know what is happening with cost. Effective cost-control measures must be developed and implemented with the first obligation or expenditure.

A cost-reimbursement contract, by its very nature, must have a different management culture than a firm fixed price contract. In a cost-reimbursement contract the Government bears the costs and schedule risks. The contractor is only responsible to give you his best effort. Critical in this situation is where the contractor focuses his effort. CD has individuals experienced in working closely with contractors in the production and cost control areas to insure that the contractor is using effective production and project controls so that cost and schedule risks are minimized. CD has successfully implemented a production management process on a major contract that was highly successful. CD assigned construction managers to work with the contractor's cost and schedule managers, superintendents, and craft foremen to review work plans daily, and work toward efficient use of skills and materials each day. This resulted in excellent communication with the contractor, and the entire construction management team. Resources and materials were managed carefully to avoid wasted time, resources and materials. This process proved to be very beneficial to the customer, the Corps and the contractor and resulted in wise decisions that provided cost cutting and time saving opportunities.

Relationships

One of the most important and significant challenges is defining the responsibilities of all team members. An effective tool HNC has used in dealing with multiple agencies is "partnering". Partnering will enhance mutual understanding, establishment of goals, meeting the customers expectations and resolution of complex issues. Partnering will also promote open and honest communication and will assist in building trust among the partners.

Management tools

HNC has learned that the first management tool is the Request for Proposal (RFP). The RFP must communicate the Government's requirements to the contractor. HNC has experience in developing and implementing field office management procedures that are effective in optimizing open communications and minimizing costs and schedule risk.

Scheduling

The complexity of the Chemical Demilitarization Program has challenged our team in the schedule and schedule surveillance department. The HNC Chem Demil Team is experienced in utilization of Earned Value Management Systems and is familiar with the review and certification process.

Advance Agreements

The variety of contract types utilized in the Chem Demil Program have provided our team the opportunity to gain experience in developing and negotiating Government and contractor advance agreements.

Configuration Control

The HNC Chem Demil team has developed and implemented Configuration Control Plans for several large and complex projects, served on configuration control boards and supported customers in development and implementation of their configuration control plans.

Contract Administration

The USAESCH team includes experienced project managers, project engineers, resident engineers, contracting officers, administrative officers, financial account managers, cost account managers, cost estimators and construction schedulers .

Legal Counsel

The USAESCH team includes legal representatives with years of experience in all types of contracts for design and construction and procurement of supplies and services. This experienced team of legal counselors can bring a unique set of skills as a result of their experience in resolving complex issues in multi-million dollar contracts and in a multi-agency environment.

HOW CAN YOU OBTAIN ASSISTANCE?

A variety of ways:

• Short term TDY, longer term on a case by case basis
• Start-up team to assist in field office procedure development
• Advisory and assistance service contracts
• Tele video conferences
• Lessons learned presentations