17.9507 Post Award Actions & Management Oversight.

Adding Items. Items may be added to the contract in accordance with the pricing model for the contract.

Obtaining refunds, rebates, and volume discounts. Refunds, rebates and volume discounts from contractors should be sought in accordance with clause 52.217-9017, Tailored Logistics Support Purchasing Reviews, or as otherwise specified in the contract if the clause is not used.

(c) Management Oversight. Tailored Logistics Support Contracts are subject to continuous and rigorous oversight as follows:

(1) Reviews/Audits shall be conducted on a monthly, semi-annual, and annual basis.

(i) The Program Manager/IST Chief (i.e. one level above the contracting officer) for each Tailored Logistic Support Program (i.e. the team administering the program, for example Metals, MRO Supplies, Spec Ops) shall perform monthly pricing reviews. Reports will include a representative sample based on the total number of orders for that month. Upon completion of these reviews, the Tailored Logistics Support program manager/IST chief shall forward the results to the Director of Supplier Operations for review and approval. Pricing review tools include but are not limited to the tools found in PGI 17.9507(c)(ii) mandatory guidance. In addition, each activity shall perform a monthly review on the progress and completion of corrective actions planned as a result of J-73 Procurement Management Review and Center of Excellence for Pricing report findings. The CCO or designee shall provide a consolidated report on the status of open corrective actions to J-73, including a copy to the local Center of Excellence for Pricing on-site representative, on or before the last day of each month.

(ii) The Contract Administration & Compliance Division or the Contract Review Division shall perform contract audits for vendors' compliance with non-pricing contract terms on a semi-annual basis (or quarterly at the discretion of the supply chain), and shall furnish a copy of the contract audit report to J-73 no later than 45 days after the end of the semi-annual period, or no later than 45 days after the end of the quarter if quarterly reviews are conducted in lieu of semi-annual.

(iii) The J-73 Center of Excellence for Pricing (COEP) will examine the sufficiency of the Contracting Officer's price documentation and the vendor's adherence to the pricing methodology as required by the contract terms, the contract management plan and the approved PV pricing model, on a semi-annual basis. The COEP shall perform one review concurrently with the Prime Vendor PMR, if one is scheduled. The subsequent COEP review shall be performed six months following the previous review. The COEP shall furnish a copy of the semi-annual contract pricing audit report to J-7 within 21 days of the last day of the review for reviews conducted in conjunction with the PV PMR, and no later than 45 days after the end of the semi-annual period for subsequent reviews. J-7 shall furnish a copy of the final COEP report to the PLFA HCA or designee.

(iv) The COEP shall perform annual audits for each fiscal year, examining the vendor's adherence to contractual pricing methodology. The annual audit is a risk assessment targeted to specific vendors who were chosen for inclusion based on contract dollar value, audit results in paragraph (iii) of this section, previous annual audits, or other criteria. A minimum of 12 vendors per year shall be reviewed. Low risk programs may be subjected to limited review, including deferral of the review. The determination for limited review, including deferral, will be made by J-73. Some indicators of low risk include programs operating under multiple award ID/IQ type contracts where competition at the PV level drives the prices, the government does not rely on the vendor's purchasing system, prices are firm fixed and are determined fair and reasonable prior to order issuance, and there are no opportunities for rebates or refunds. For those supply chains with fewer than 12 TLS contracts, the COEP shall conduct an annual audit of all TLS vendors. The COEP shall furnish a copy of the annual audits to J-7 no later than 45 days after the close of the fiscal year. J-7 shall furnish a copy of the final COEP report to the PLFA HCA or designee.

(2) Management tools used for oversight as appropriate to the program shall include but are not limited to the tools found in PGI 17.9507(c)(v).