(a) This guidance establishes agency-wide policy for LoO issuance, acceptance, and roles and responsibilities of key personnel associated with the LoO. It is applicable to LoOs resulting from competitive sourcing competitions under Office of Management and Budget (OMB) Circular A-76 and the establishment of high performing organizations (HPOs). The LoO is a formal agreement between the government and the in-house service provider that incorporates the cost and performance obligations that the Most Efficient Organization (MEO) or HPO shall meet throughout the performance period.
(b) LoOs will be issued upon completion of the contest period for competitive sourcing competitions or prior to nominating an activity for HPO designation by the Deputy Under Secretary of Defense (Installations and Environment). Subject to J-75 concurrence, the Procuring Contracting Officer (PCO) will issue a LoO to either the Agency Tender Official (ATO) or the official responsible for the performance of the MEO for competitive sourcing competitions, or to the official responsible for the performance of the HPO when HPOs are established. The ATO and the official responsible for the performance of the MEO/HPO will hereafter be called the LoO designee.
(c) The Administrative Contracting Officer (ACO) will administer the LoO, including monitoring and enforcing adherence to performance requirements and standards, negotiating and executing modifications, resolving disputes, exercising options, assessing quality of performance and accepting services and work, and terminating performance when appropriate. The ACO will appoint a Contracting Officer’s Representative (COR) in the Continuing Government Activity (CGA) to monitor and accept services provided by the MEO/HPO. The COR will monitor the MEO/HPO performance in accordance with the quality assurance surveillance plan (QASP) to ensure compliance with the acceptable performance levels specified in the LoO.
(d) The LoO designee is responsible for the success of the MEO/HPO and has oversight responsibility for controlling quality and cost of the MEO/HPO in its execution of and adherence to the LoO over all performance periods. The LoO designee’s signature on the LoO signifies acceptance of its requirements, and the LoO designee thereby commits that the MEO/HPO shall meet the LoO’s cost and performance goals for all performance periods. The LoO designee may delegate authority over the MEO/HPO to a designee, but cannot delegate responsibility. The LoO designee’s responsibilities shall be reflected in the performance plan for the individual appointed as the LoO designee. The LoO designee shall not be in the same rating chain as the ACO.
