MEO or Contract Implementation
Many tasks must be completed to transition the current in-house operation to the
new operation, whether a contract (to a private sector organization) or MEO (still
in-house but subject to the new management plan). A transition plan is developed
and executed to take care of the many details, including such items as equipment
turnover, personnel actions, training, inventory, and procedural changes, as well
as telephone number changes and other housekeeping items caused by the transition.
Regardless of the outcome of a CA study, special care must be taken to avoid unnecessary
trauma and turmoil in the organization that was the object of the study. In the
case when the MEO is implemented, a formal review and inspection of the MEO should
be conducted typically following the end of the first full year of performance.
The Post-MEO Performance Review confirms that the MEO has been implemented in accordance
with the Transition Plan, establishes the MEO's ability to perform the services
of the PWS and confirms that actual costs are within the estimates contained in
the in-house estimate. Adjustments may be made for formal mission or scope of work
changes.
What is a tentative cost comparison decision?
This is the point in time when the Government makes its initial decision based on
a comparison of the in-house offer against the contract/ISSA offer (i.e., cost comparison).
This is prior to the Public Review Period and Administrative Appeal Process (after
which the Government makes the final cost comparison decision).
What is the best way to get the MEO out to all affected parties, since the public
review period cannot start until after this occurs?
The public review period begins on the day the completed cost comparison form and
all supporting documentation is made available to directly affected parties. Of
course, with today's technology, electronic copies of this documentation are a reasonable
solution to getting information to many people at nearly the same time. However,
this solution should only be used where the affected parties have convenient access
to computers and e-mail. Hard copies are not mandated. (Remember that if the documentation
is not available when the tentative cost comparison decision is announced, the time
allotted for submitting appeals is extended by the number of days equal to the delay.)
What happens if the final cost comparison favors an in-house (Government) decision?
The solicitation is cancelled and the Most Efficient Organization (MEO) is implemented
in accordance with the Government Management Plan.
What happens if the final cost comparison decision favors contract/ISSA performance?
The contractor is awarded the contract. The Human Resources Office begins to process
appropriate personnel actions such as voluntary early retirement authority, voluntary
separation incentive pay, priority placement programs, transition assistance, reduction
in force, etc.
Is the contractor required to hire the Government civilian employees who may
lose their jobs?
The Federal Acquisition Regulation (FAR) 52.207-3 (Right of First Refusal of Employment)
states:"The contractor shall give Government employees who have been or will be
adversely affected or separated as a result of award of this contract the right
of first refusal for employment openings under the contract in positions for which
they are qualified ..." This FAR clause is included in the contract solicitation.
It requires contractors to give qualified civilian employees adversely affected
as a result of the conversion the Right of First Refusal for job vacancies under
the contract. It does not require the contractor to hire any Government employee
who the contractor believes is not qualified. Historically, the contractor hires
many of the displaced Government employees.
Resources:
Policy
Guides And Recommended Readings