BOP Program Statement 7740.02 § 2

a. Award Fee. Payments made to the contractor for achieving optimum performance.

Granting an award fee is the unilateral right of the Government. The award fee process is

administered in accordance with the contract.

b. Contract. A mutually binding legal relationship obligating the seller to furnish the services

and the buyer to pay for them. It includes all types of commitments that obligate the Government

to an expenditure of appropriated funds and is done in writing. Specifically, the private vendor

(seller) owns and operates a private correctional facility and the Bureau (buyer) pays for their

services as outlined in the Statement of Work (SOW)/Performance Work Statement (PWS).

c. Contract Facility Monitoring (CFM). A team of subject matter experts (SMEs) who

conduct on-site monitorings at secure adult correctional contract facilities to ensure the

government receives quality, competent services from the contractor.

d. Contracting Officer (CO). A U.S. Government employee who, by virtue of a Contracting

Officer’s Warrant, is empowered to negotiate, award, cancel, and terminate contracts on behalf of

the Government.

e. Contracting Officer’s Representative (COR). Government employees; the CO’s

authorized representatives for a specific contract. The COR is the senior Bureau employee

responsible for contract administration and ensures contractor performance.

The authority of the COR to act on contractual matters is set forth in individual letters of

appointment signed by the CO and provided to the contractor. Any changes in the authority of the

COR must be officially made by the CO.

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f. Deduction. Used to reduce a contractor’s invoice commensurate to the value of any service

not performed as required by the contract.

g. Performance Evaluation. A periodic evaluation of the contractor’s performance in carrying

out its obligations under a Government contract.

h. Performance Evaluation Board (PEB). The entity within the Bureau that evaluates the

contractor’s overall performance for the evaluation period and recommends the value of the award

fee in accordance with the contract, if applicable. The board is composed exclusively of Bureau

personnel whose experience allows them to analyze and evaluate the contractor’s performance.

The PEB is headed by the Administrator, PMB, and appointed by the Assistant Director.

i. Privately-Operated Secure Adult Correctional Facility. A place of continuous

confinement for Federal inmates managed and operated under an SOW/PWS established in a

contract between the Bureau and a contract provider.

j. Privatization Management Branch (PMB). Staff located in Washington, DC (PMB-DC

staff) and at various field sites across the country (PMB-Field staff).

k. Quality Assurance. A system developed by the Government to monitor the quality of the

contractor’s products and services to ensure contract requirements are defined and satisfactory

performance is achieved.

l. Quality Control. Actions performed by the contractor to ensure products and services are

provided. The contract requires the contractor to provide a Quality Control Plan (QCP) to ensure

the work meets contract requirements, as well as identifies and corrects deficiencies. Quality

control consists of:

■ Setting performance standards.

■ Comparing the quality of services in relation to those standards.

■ Taking corrective action when necessary.

■ Planning for improvements.

m. Statement of Work (SOW); also known as a Performance Work Statement (PWS).

Outlines the requirements for operating under the contract. Specifically, the SOW /PWS contains

information about administrative and program requirements, as well as all services the contractor

will be required to perform throughout the life of the contract. The SOW /PWS also contains

measurable performance standards. Per the Federal Acquisition Regulation (FAR), the

SOW/PWS is Section C in all Government contracts.

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