14 FAH-2 H-520
MONITORING CONTRACTOR PERFORMANCE
(CT:COR-51; 04-19-2019)
(Office of Origin: A/OPE)
14 FAH-2 H-521 ELEMENTS OF CONTRACT ADMINISTRATION
(CT:COR-43; 11-10-2015)
a. The contractor has primary responsibility for performance of the contract. However, both the contracting officer and the contracting officer’s representative (COR) have an interest in monitoring contractor performance because unsatisfactory performance may jeopardize a project or even an entire program.
b. It is the COR's responsibility to ensure that the Department gets what it pays for through good contractor performance. This responsibility requires the COR to develop a contract monitoring plan commensurate with the complexity and criticality of the contract, and to ensure the COR is timely in performing U.S. Government contract administration responsibilities.
14 FAH-2 H-522 MONITORING METHODS AVAILABLE TO THE contracting officer’s representative (COR)
14 FAH-2 H-522.1 Progress or Status Reports
(CT:COR-43; 11-10-2015)
a. Contracts may require the submission of progress or status reports to assist the COR in gauging progress. Technical progress and problems encountered, upcoming challenges and plans to address these challenges, staffing progress, licenses obtained, materials acquired, and progress of subcontractors are all potential topics. CORs should determine what information is needed and add the reporting requirement and frequency to the statement of work for inclusion into the solicitation. CORs should document review of the progress and status report with an email or memo to the contracting officer and retention of the report in the contract file.
b. The best method for monitoring the contractor's work is through actual inspection. The Federal Acquisition Regulation (FAR) 48 CFR 46.3 and other FAR sections provide for various contract clauses in U.S. Government contracts which give the U.S. Government's authorized representative the right to inspect and test what is being generated under the contract at all stages of performance and wherever the work is being conducted (i.e., both contractor and subcontractor work sites). However, while the U.S. Government may have the right to inspect when it chooses, the various inspection clauses specify that U.S. Government inspections or tests must not be performed in such a manner as to unduly delay the work. Additionally, 48 CFR 12.402 outlines the unique limits on commercial item inspections when the U.S. Government is acquiring noncomplex commercial items, plus requirements in the clause 48 CFR 52.212-4 Contract Terms and Conditions - Commercial Items.
c. The COR may perform inspections by using several techniques and procedures including spot checks, scheduled inspections of functions performed by the contractor on a periodic basis, random sampling of routine functions, use of contract monitoring and user reports, and periodic review of the contractor’s quality control program and reports.
d. The need for monitoring is variable. Factors such as the complexity of the work, the size of the job, the importance of the expected results, and the expertise of contractor and U.S. Government personnel involved, determine the amount and level of monitoring required. For example, if a contractor’s quality control program works and achieves a good level of performance on a consistent basis, the amount of monitoring can be minimal.
e. The place of performance, type of contract, and kind of work required, each influence the feasibility of using inspection as the main tool for monitoring progress. The place of performance may make frequent inspections impractical, simply because the U.S. Government does not have sufficient travel funds or personnel.
14 FAH-2 H-522.2 Milestone Reviews
(CT:COR-43; 11-10-2015)
Some programs may be broken up into discrete performance milestones. Timely completion of these milestones provides the COR with information on adequate performance. Late or incomplete performance may indicate contractor problems.
14 FAH-2 H-522.3 Site Visits
(CT:COR-43; 11-10-2015)
Inspection of the contractor worksite is an effective method of monitoring contractor performance for non-commercial items. Discussions with contractor personnel and physical observations should be documented and included in the COR official file.
14 FAH-2 H-522.4 Contractor Outputs
(CT:COR-43; 11-10-2015)
a. If the contractor will be providing outputs such as number of repaired vehicles, students trained or barriers installed, the COR should monitor both the number and quality of the output. Financial status reports (often used in cost-reimbursement type contracts) provide a means of monitoring the contractor's expenditures and comparing costs incurred with technical progress. Significant differences between technical progress and the expenditure of resources often indicate problems in contract performance.
b. The amount of detailed financial information needed depends on the type of contract, the nature of the work, and the method of payment. Financial reports are especially important in cost-reimbursement contracts for determining contractor progress.
14 FAH-2 H-522.5 End User Feedback
(CT:COR-43; 11-10-2015)
Where the contract is supporting end users, try surveys or other methods of obtaining end user feedback on performance. Are customers satisfied with the results and the experience? Do they find performance timely and of high quality?
14 FAH-2 H-522.6 Inspection Sampling
(CT:COR-43; 11-10-2015)
Where safety and health are an issue, 100 percent inspection may be warranted. Periodic, planned or random sampling may be used to inspect. Random sampling allows the inspection of a limited number of parts to serve as a surrogate for the inspection of the entire lot.
14 FAH-2 H-522.7 Validating Contractor Systems
(CT:COR-43; 11-10-2015)
Contractors are required by FAR 48 CFR 46.2, "Contract Quality Requirements" to have systems for monitoring performance and ensuring quality. The COR can obtain information on these systems to determine if they will produce an acceptable result. Many contractors performing work for the Department of Defense have U.S. Government-monitored and approved systems. The output of an approved inspection system is more likely to be contract compliant.
14 FAH-2 H-522.8 Creative Monitoring
(CT:COR-43; 11-10-2015)
Creative monitoring methods may include the use of technology such as:
(1) Cameras on vehicles;
(2) Global positioning systems (GPS) units to determine and track the location and travel of contractors;
(3) Tracking the trip mileage against forecasted travel distances;
(4) Guard or employee check-in at designated locations;
(5) Use of badge readers to determine number of individuals served at mess halls;
(6) Use of satellite imagery; and
(7) Use of radio frequency identification (RFID) to track property, deliveries, and locations.
14 FAH-2 H-522.9 Monitoring Service Contracts
(CT:COR-43; 11-10-2015)
a. Labor-hour and time-and-material contracts require special attention. Under these contracts the contractor has no incentive to control the number of hours worked or labor efficiency. Try to determine if tasks can be defined as much as possible to ensure productive use of time. If the requirement is repetitive and continuing, the contracting officer should determine if the task can be fixed-priced.
b. The COR must have a method of validating the hours worked through sampling or other surveillance methods. Observation of the efficiency of work performance may be needed. Where contracts specify personnel qualifications, verify that the employees billed meet the qualifications.
14 FAH-2 H-522.10 Reviewing Invoices
(CT:COR-51; 04-19-2019)
a. Contractors must periodically submit invoices to the "designated billing office" (48 CFR 32.001) in the contract to request payment. Contracts instruct the contractor to forward invoices to the designated billing office and an information copy the COR. CORs should become familiar with the invoicing submission and U.S. Government acceptance requirements of their contracts to ensure receiving reports or other U.S. Government documentation authorizing payment meets the minimum requirements (48 CFR 32.905 (c)) and reaches the designated payment office within the timeframes for prompt payment (48 CFR 32.9).
b. If the contract requires COR review, the COR should determine the validity of the costs claimed. The COR may request such backup information as is needed to verify the invoice. In some cases, the invoice review may be validation of quantities received against contractual requirements. In other cases, such as in cost-reimbursement contracts or contracts with reimbursable contract line items, invoice review may be more elaborate.
c. Keep in mind that all U.S. Government contracts have a prompt payment clause which requires that the U.S. Government make payment within 30 calendar days of acceptance of the supplies/services or the date the designated billing office receives a proper invoice from the contractor, whichever is later. The U.S. Government pays interest if the 30-day deadline is not met. Therefore, if payment is contingent upon the COR’s review, the COR must review the invoice/voucher promptly to avoid the payment of interest (reference FAR 48 CFR 32.9, Prompt payment).
d. Some common invoice errors include wrong contract or order number, date of invoice or period of performance, outside the scope of the contract; vendor name does not match the contractor name identified on the contract; item, part number, quantity or price in error; math is incorrect duplicate billing or sent to the wrong office.
e. Items requiring special attention include:
(1) Determining whether payment of tax, such as value added tax (VAT) at a post is appropriate or exempt;
(2) Unsupported lump-sum travel or other costs;
(3) Were trips authorized and was travel at coach or lowest expense?
(4) Is the labor category in the contract?
(5) Is the worker qualified at that labor category level? and
(6) Was the overtime approved?
f. Cost-reimbursement contracts:
(1) Questioning the reasonableness of costs: Under cost-reimbursement type contracts, the U.S. Government is entitled to ask the contractor for information that is necessary to understand whether the charges billed are "reasonable," "allocable," and "allowable," as the basic tests that the contractor's costs must pass to be reimbursed (reference FAR 48 CFR 31.201-2 Determining Allowability, 48 CFR 31.201-3 Determining Reasonableness, and 48 CFR 31.201-4 Determining Allocability). If it appears from charges billed that the contractor may be spending more than is reasonably necessary for the work, the COR should contact the contractor for additional explanation or substantiation for those costs. If the additional information fails to establish that the contractor is proceeding in a reasonably efficient way, the COR should discuss the matter with the contractor to make sure that there is not an equally effective way to get the work done. If agreement cannot be reached, the COR should consult with the contracting officer;
(2) The right to disallow costs: While the contractor is entitled to latitude and exercise of judgment in managing the contract work, the U.S. Government contracting officer has the right to "disallow" and not reimburse the contractor for costs that are unreasonable in nature or amount. This right constitutes a powerful lever for persuading a contractor to manage efficiently. The more the contractor realizes that the U.S. Government is keeping a close watch on costs and is ready to raise questions where warranted, the more effective the power to disallow costs will be as an incentive for economical management by the contractor. It should be stressed, however, that only the contracting officer may disallow costs. The COR should bring any questions or problems with a contractor's vouchers to the contracting officer's attention; and
(3) Audit support: CORs should contact the contracting officer for any audit support needed to verify cost reimbursement invoices. The Business Operations Division, A/OPE/AQM/BOD, negotiates agreements with the Department of Defense for audit support and also coordinates with Office of Inspector General and commercial audit support.
14 FAH-2 H-522.11 Technical Direction
(CT:COR-43; 11-10-2015)
A means of directing contractor performance is through "technical direction," a concept used in cost-reimbursement contracts. Because work statements in cost-reimbursement contracts are typically not specific enough in terms of approach or methodology, the U.S. Government needs to have the ability to work closely with and guide the contractor along the most beneficial lines of effort. Technical direction constitutes direction by the U.S. Government to the contractor as to which areas or lines (within and without changing the description of work) the contractor is to emphasize or pursue:
(1) Technical direction must not require the contractor to perform work different from that which he or she has agreed to do, nor may it change other provisions of the contract such as deliverable due dates, total price or estimated cost, total period of performance, or any administrative provisions; and
(2) Whenever the contracting officer’s representative (COR) provides technical direction, it must be in writing, with a copy provided to the contracting officer. It is good practice to coordinate such direction in advance with the contractor. If the contractor considers the direction an imposition of work that is over and above what the contract requires, the matter should be discussed with the contracting officer.
14 FAH-2 H-522.12 Contractor Personnel Assignments
(CT:COR-43; 11-10-2015)
a. The key personnel clause: To assure that the work is performed by personnel with the qualifications needed to assure satisfactory quality, some Department contracts for professional services contain a key personnel clause. In this clause, the contractor:
(1) Must assign work under the contract to certain named individuals (sometimes also indicating the capacity in which each named individual will act and the number of hours they will devote to the contract); and
(2) Must not remove or divert any of the named key personnel from the contract unless the contracting officer consents.
b. Monitoring assignments of key personnel: To assure that the Department benefits from the key personnel clause, the contracting officer’s representative (COR) must keep in touch with the key personnel and with what they are doing. This will help to assure that the key personnel are not completely taken off the contract work, and also know whether they apply the kind and amount of effort that is necessary to get the work done properly. For example, it is obviously not expected that a key person designated in the contract as "project director" will personally do all the work that the contract requires. However, he or she is expected to devote the time and effort needed to direct and guide the work. Keeping in touch with the director can disclose what degree of control the director has over his or her assistants, how well he or she is informed of what they do, and what their state of progress is. Changes to key personnel must be approved by the contracting officer who will request inputs from the COR.
14 FAH-2 H-522.13 The Limitation-of-Cost Clause
(CT:COR-43; 11-10-2015)
a. All cost-reimbursement and labor-hour type contracts contain a clause entitled "Limitation of Cost" at FAR 48 CFR 52.232-20. This clause limits the U.S. Government's obligation to reimburse the contractor to the amount stated in the contract as the total estimated cost. Because completion of the contract work may turn out to cost more than the estimated cost, the "Limitation-of-Cost" clause provides that the contractor has no obligation to continue with the work once incurred costs reach the total estimated cost. It makes no difference if the contract is unfinished when this point is reached. The contractor is entitled to stop work until and unless the contract is modified to increase the total estimated cost. The U.S. Government must reimburse the contractor for "best efforts" in completing the work within the total estimated amount.
b. The "Limitation-of-Cost" clause requires the contractor to notify the contracting officer and provide a revised estimate of the total cost of the contract, whenever a contractor has reason to believe:
(1) That the costs the contractor expects to incur in the next 60 days plus costs already incurred will exceed 75 percent of the total estimated cost of the contract; or
(2) That the total costs of performance (exclusive of fee) will exceed or be substantially less than the estimated cost stated in the contract.
c. This notification is a useful tool for identifying and dealing with potential problems.
d. The U.S. Government is not obligated to reimburse the contractor for costs incurred in excess of:
(1) The estimated cost specified in the schedule; or
(2) If a cost-sharing contract, the estimated cost to the U.S. Government specified in the schedule.
14 FAH-2 H-523 QUALITY ASSURANCE
(CT:COR-43; 11-10-2015)
a. The Code of Federal Regulations (CFR) 48 CFR 46.000 prescribes policies and procedures to ensure that supplies and services acquired under U.S. Government contracts conform to the contract's quality and quantity requirements. Included are inspection, acceptance, warranty, and other measures relating to quality assurance.
b. The requirements office is responsible for developing specifications for inspection, testing, and other quality measures to be included in solicitations and contracts. When administering the contract, the contracting officer’s representative (COR) is responsible for developing quality assurance procedures, verifying whether the supplies or services conform to contract quality requirements, and maintaining quality assurance records. In some cases, the contract will contain a quality assurance plan (QAP) and the COR will use the procedures in this plan to evaluate the quality of services or deliverables provided.
c. The contractor is responsible for fulfilling its obligations under the contract by:
(1) Controlling product quality;
(2) Providing the U.S. Government only supplies and services conforming to contract requirements;
(3) Monitoring the quality of materials supplied by its suppliers or subcontractors;
(4) Maintaining substantiating evidence that the supplies and services conform to contract quality requirements; and
(5) Performing all inspections and testing required by the contract (reference FAR 48 CFR 46.105).
d. Although contracts generally make the contractor responsible for performing inspection before tendering supplies to the U.S. Government, some specialized inspections are performed solely by U.S. Government personnel, e.g., tests that require use of specialized test equipment or facilities and U.S. Government testing for first-article approval (reference FAR 48 CFR 46.201(c) and 48 CFR 9.302).
14 FAH-2 H-523.1 Warranties
(CT:COR-43; 11-10-2015)
a. A warranty is a promise given by the contractor to the U.S. Government regarding the nature, usefulness, or condition of the supplies or services furnished under the contract. The purpose of a warranty is to delineate the rights and obligations of the contractor and the U.S. Government for defective items and services and to foster quality performance.
b. The use of warranties is not mandatory. The contracting officer determines whether a warranty is appropriate based on the nature and use of the supplies and services, cost, administrative system for enforcement, and trade practice. The COR usually knows more about the product and provides a recommendation based on research on warranty considerations for the contracting officer to make a decision.
c. CORs managing contracts with warranties should ensure a method of collecting warranty paperwork and retaining the information on a shared drive where other program personnel can locate the information if future service is required.
14 FAH-2 H-523.2 Inspection
(CT:COR-43; 11-10-2015)
a. Inspection means examining and testing supplies or services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether they conform to contract requirements (reference FAR 48 CFR 2.101).
b. It is the contracting officer’s representative’s (COR) responsibility to determine that the work is complete and conforms to the technical requirements of the contract. The COR may perform quality assurance inspections at such times and places as may be necessary to determine conformance with contract requirements, including inspections at the source or at destination.
c. The COR must ensure that the work performed under the contract is measured against the contract performance requirements. If performance does not meet contract requirements, the COR must identify deficiencies and advise the contracting officer so that remedial action can be taken before final payment and contract closeout.
d. If the contract contains a quality assurance plan (QAP), the COR must follow the terms established in the QAP to measure contractor performance. If performance does not meet the acceptable quality levels, the contracting officer will follow the procedures established in the plan to determine the appropriate course of action.
14 FAH-2 H-523.3 Acceptance
(CT:COR-50; 03-08-2019)
a. Acceptance is an acknowledgement by an authorized U.S. Government representative that supplies or services conform to the contract’s quality and quantity requirements. Acceptance may take place before delivery, at the time of delivery, or after delivery depending on the contract provisions. However, supplies or services are not, ordinarily, accepted before quality assurance actions have been completed (reference FAR 48 CFR 46.501).
b. The contracting officer’s representative (COR) indicates acceptance by executing an acceptance document. The Integrated Logistics Management System (ILMS) has an "acceptance" module for recording the "acceptance" of goods and services:
(1) Ariba is the procurement module of ILMS and has a receive services task that links to the ILMS final receipt module. The ILMS final receipt module is used to receive all "supplies and services" line items and generates the Form DS-0127, Receiving and Inspection Report. Additionally the "status tracking" component of ILMS allows for tracking vendor payment information and receipt status along with managing and uploading documents; and
(2) If ILMS is not available, the COR may indicate acceptance by using the Form DS-0127, Receiving and Inspection Report, or by approving a contractor’s invoice with an acceptance stamp allowing signature with date.
c. The COR should bear in mind that once formal acceptance has been accomplished, the contractor is generally excused from further performance. After final acceptance, the contractor can no longer be held responsible for unsatisfactory effort, unless otherwise specified in the contract or by warranty.
d. The COR should clearly indicate the nature and extent of any rejection. Contractors must be advised of deficient performance. The COR should communicate directly with the contractor with a copy to the contracting officer. The COR may reject the entire lot or may partially accept (reference FAR 48 CFR 46.407, Nonconforming supplies or services).
e. Remedies for defective performance vary based on contract type. In general, the U.S. Government is entitled to require the contractor to correct any deficiencies and to resubmit the items or services for inspection. Fixed-priced contracts require correction at no cost to the U.S. Government (48 CFR 52.246-2). Cost-reimbursement contracts for supplies require payment by the U.S. Government for correction as allowable cost but no additional fee shall be paid (48 CFR 52.246-3). Labor-hour and time-and-materials contracts typically require the U.S. Government to bear the cost, less profit, of correcting work (48 CFR 52.246-6).
f. The U.S. Government is not without protection in the event that defects are discovered after acceptance. The terms of the standard inspection clauses give the U.S. Government remedies after acceptance in the case of latent defects, fraud, or gross mistakes that amount to fraud. In addition, warranty clauses can be used which give the U.S. Government rights after acceptance.
14 FAH-2 H-524 Preventing Trafficking in Persons (TIP)
(CT:COR-43; 11-10-2015)
a. The U.S. Government is a world leader in the fight to eradicate human trafficking. The Office to Monitor and Combat Trafficking in Persons (J/TIP) website contains many resources available for the COR and contractors on trafficking in persons, including training available on TIP awareness.
b. The U.S. Government defines trafficking in persons as modern slavery for commercial sexual exploitation or forced labor.
c. Combating trafficking in persons for both sexual and labor exploitation is specifically addressed in 48 CFR 22.1700. FAR 48 CFR 22.1703 states that the U.S. Government has adopted a zero-tolerance policy regarding trafficking in persons criminal activity. Every instance must be investigated and appropriate action taken.
d. The FAR clause located at 48 CFR 52.222-50, Combating Trafficking in Persons (which implements 48 CFR 22.1700), must be included in every U.S. Government contract. Contracting officer’s representatives (CORs) should verify that the clause is in their contracts. The contractor is required to brief their agents and employees on the requirements of the clause.
e. Every year, the Department of State produces the Trafficking in Persons Report, the world’s most comprehensive resource of governmental and anti-human trafficking efforts. This report can be used as a resource for country assessments of country-specific risks that may be inherent in the contracts.
f. The Trafficking Victims Protection Act (TVPA) 22 U.S.C. 7101 guides the U.S. Government’s approach to combating trafficking in persons (TIP). It closely tracks, and expands upon, the UN Palermo Protocol to the UN’s Convention on Transnational Organized Crime. It is important to note that a victim need not be physically transported from one location to another in order for the crime to fall within these definitions. Neither the TVPA, nor the Palermo Protocol, require movement as a requisite element of human trafficking.
g. The COR plays an important role in preventing TIP. CORs should take the following actions:
(1) Ensure contracts contain the required Trafficking in Persons clause: Review your contract to verify that the appropriate FAR clause 48 CFR 52.222-50 is included. Contact the contracting officer if it is missing;
(2) Create a trafficking in persons monitoring plan appropriate to the acquisition. The place of performance and the nature of the contract may require more stringent monitoring by the COR. Performance in countries with a poor record of dealing with trafficking in persons issues may require more monitoring. A contractor recruiting third-country nationals for contract performance may require COR monitoring of recruitment practices and employer-provided housing. Countries with legal prostitution may require added emphasis at post award meetings, since individuals performing under U.S. Government contracts are not permitted to engage in any commercial sex while employed by the contractor. This prohibition includes locally legal commercial sex. See 14 FAH-2 Exhibit H-524, Preventing Trafficking in Persons (TIP) Sample Monitoring Plan Elements;
(3) Understand the U.S. Government’s policy toward trafficking in persons, the FAR requirements regarding trafficking, and most importantly, the red flags that might indicate that contractors’ staffs are potential trafficking victims. The COR must be alert to the possible warning signs and notify the appropriate personnel for follow up and investigation:
(a) Coordination with the regional security officer can assist the COR in planning for TIP prevention oversight; and
(b) Coordination with appropriate offices such as human resources regarding local labor laws can help in obtaining information on area working conditions;
(4) Be aware that a contractor found to engage in severe forms of trafficking, procuring commercial sex acts, or using forced labor, may be terminated for default by the contracting officer; and
(5) Discuss the importance of preventing TIP in post-award orientation. The requirements of the Combating Trafficking in Persons clause and contractor efforts to comply should be an agenda item for every post-award contractor briefing. This ensures that all parties are aware of their responsibilities.
h. Post-award TIP briefing agenda: The U.S. Government’s zero tolerance toward TIP and the importance of preventing TIP must be emphasized. The Department of State’s Office to Monitor and Combat Trafficking in Persons leads the U.S. Government’s global engagement on the fight against human trafficking. The U.S. Government feels strongly about this issue. The requirements of 14 FAH-2 H-516, paragraph d, 48 CFR 22.1700, and 48 CFR 52.222-50, Combating Trafficking in Persons, provide the foundation for the post-award TIP briefing.
14 FAH-2 H-525 THROUGH H-529 UNASSIGNED
14 FAH-2 Exhibit H-524
Preventing Trafficking in Persons (TIP) Sample Monitoring Plan Elements
(CT:COR-43; 11-10-2015)
a. CONTRACT INFORMATION:
(1) Plan Date: 12/9/2015
(2) Plan Monitor: Jane Smith, COR
(3) Contract Number: SAQMMA09D0002
(4) Contractor: Overseas Industries
(5) Contract Purpose: Embassy Construction
(6) Contract Value: $1,240,000
b. RISK FACTORS:
(1) Place of Performance: Performance in Gulf State with history of recruited labor and labor problems. HIGH RISK
(2) Trafficking in Persons Report Tier Level: Level 2. HIGH RISK
(3) Third-Country National Recruitment: Contractor will recruit Indian nationals for construction. HIGH RISK
(4) Employer Provided Housing: Contractor is constructing a man camp to house workers. Housing plan provided with proposal. HIGH RISK
(5) Legal Prostitution in Country: No. LOW RISK
(6) Contract with Foreign Performance Valued Over $500,000 Requiring Contractor Compliance Plan: Yes. HIGH RISK. Compliance plan submitted showing a strategy for briefing employees. Subcontracts will contain flow-down clauses. Contractor will be using a professional recruitment firm with fees paid by the prime contractor. Contractor personnel are briefed on the prohibitions on commercial sex. Contractor management is briefed on the requirements of not withholding travel documentation.
c. CONTRACT MONITORING METHODS SELECTED:
(1) Verify the contractor does not hold employees’ passports and visas: Employee mobility may be severely limited if an employer holds the employee’s travel documents. This activity may also be in violation of local labor laws. CORs should determine if the contractor is holding travel documents by interviewing employees during site visits to the work location. ___ Selected ___ Not Selected
(2) Ensure contractor doesn’t use work permits or physical force or threats to compel labor or obtain sexual activity: The COR should use locally employed staff or others with knowledge of other languages to engage contractor employees who cannot communicate effectively in English in their own native language in order to determine if coercion or threats are being used. ___ Selected ___ Not Selected
(3) Determine that contractor is knowledgeable about local labor laws: This assessment can be performed at the post-award meeting and periodically through discussions with contractor management as work progresses. It is the contractor’s responsibility to obtain this information from the host country, not the COR’s. ___ Selected ___ Not Selected
(4) Verify that workers and agents are informed about labor policies: Verification can be obtained through interviews with contractor employees. ___ Selected ___ Not Selected
(5) Verify that contractor is providing advice of salary deductions through periodic review: Employees who are not informed on the nature of salary deductions may find themselves in situations similar to bonded labor by owing more than they make. Verify that employees have the information they need to understand salary deductions. ___ Selected ___ Not Selected
(6) Verify that contractor is briefing employees on the requirements of the Trafficking in Persons clause: This briefing is a requirement of the Trafficking in Persons clause. The COR should interview contractor management as well as select employees to verify compliance. The COR should obtain a copy of the contractor’s briefing materials. ___ Selected ___ Not Selected
(7) Verify that the contractor is briefing subcontractors and including the TIP clause in subcontracts: Ask the contractor to identify any subcontracts and show that the subcontracts contain the TIP clause. Have the contractor provide a copy of briefing materials provided to subcontractors. ___ Selected ___ Not Selected
(8) Obtain information on employer-furnished housing and periodically visit to assess adequacy: The adequacy of self-selected housing is the responsibility of the employee. Employer-furnished accommodations represent an expenditure of U.S. Government funds that should not be exploitative. Where housing is employer-provided, particularly to third-country national employees, CORs should obtain information on the location and nature of the housing. CORs will then better understand the contractor’s costs and housing plan. CORs should visit the housing periodically, at least semi-annually, to ensure adequacy. Any concerns or requests for corrective action should be coordinated through the contracting officer to avoid any potential claims. ___ Selected ___ Not Selected
(9) Audit support: CORs may work with their contracting officer to contract with an audit firm to assist in implementing TIP monitoring responsibilities. ___ Selected ___ Not Selected
d. ADDITIONAL MONITORING GUIDANCE:
Problems with employer-provided housing to watch for, based on previous Office of Inspector General reports:
(1) Sharing a dilapidated apartment building with numerous fire and safety hazards, including exposed, frayed wiring; extensive water damage; and mice and insect infestation.
(2) Of an apartment building’s three bathrooms, only one had a working sink; one had a broken toilet and an uncovered floor drain; and one small bathroom had a washing machine that partially blocked access to the toilet.
(3) Conditions for employees were dilapidated, unsanitary, unsafe, cramped, and located on the roof of the company’s administration building.
(4) Failure to meet the minimum 50-square-feet-per-person space allocation without contracting officer approval.