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 modifications to scope or ceiling do not require a separate Justification & Approval (J&A) under FAR Part 42, provided they remain within the original scope of SBIR-derived work.
Key Distinction for SBIR Phase III Modifications
No Modification J&A Required
Modifications to Phase III contracts—including scope additions and ceiling adjustments—do not require a separate J&A under FAR Part 42, provided they remain within the original scope of SBIR-derived work. 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
- Data Rights Guide - SBIR data rights obligations
- Resources & Tools - Checklists and templates