(a) Adding Items. Items may be added to the contract in accordance with the pricing model for the contract.
(b) 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, quarterly, and annual basis.
(i) The Supply Chain Contracting Officers 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 Contracting Officer shall forward the results to the Tailored Logistics Program Manager for higher level review and approval. The Procurement Process Support Directorate's Contract Administration & Compliance Division or the Contract Review Division shall also verify the monthly Supply Chain reports by completing separate reviews and providing their monthly reports to J-73 no later than 45 days after the end of the month. Pricing review tools include but are not limited to the tools found in PGI 17.9507(c)(ii).
(ii) The Contract Administration & Compliance Division or the Contract Review Division shall perform quarterly contract audits for vendors compliance with non-pricing contract terms. The Contract Administration & Compliance Division or the Contract Review Division shall verify the quarterly audits are performed satisfactorily. The Contract Administration & Compliance Division or the Contract Review Division shall furnish a copy of the report on quarterly contract audits to J-73 no later than 45 days after the end of the quarter. The J-73 Center of Excellence for Pricing (COEP) audit shall perform quarterly contract audits The audit will examine the sufficiency of the contracting officer’s price documentation and the vendors adherence to the pricing methodology. The COEP shall furnish a copy of the report on quarterly contract audits to J-7 no later than 45 days after the end of the quarter.
(iii) The COEP shall perform annual audits for each fiscal year. The annual audit is a risk assessment. It is a compilation of at least 12 audits performed during the year targeted to specific vendors who were chosen for inclusion as a result of quarterly audit results in paragraph (ii) of this section. For those supply chains with fewer than 12 TLS contracts, the COEP 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.
(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).
