How Do You Ensure Compliance?
To produce an effective contractor compliance process, you need to set up an organized framework to prequalify contractors, monitor their activities, and stay on top of the required documentation. It may be beneficial to seek help from an external provider. There are a few ways to set up and monitor contractor compliance, including contractor compliance software to onboard, verify, manage and pay contractors. Some other ways to ensure contractor compliance include:
Requiring contractors to submit progress or status reports will allow you to keep track of staffing progress, licenses obtained, materials acquired, technical progress, problems encountered, upcoming challenges, plans to address these challenges, and sub contractor progress.
Review committees should determine what information is needed and add the reporting requirements as well as frequency to the statement of work. They should also document their review of the progress and status report through a memo or an email to the contracting officer as well as retain it in the contract file.
Site visits and inspections
This is often considered the best way to ensure that contractors are meeting contractor compliance requirements. Representatives who are authorized by the U.S. Government have the right to inspect and test the product or service being generated under the contract at all stages and wherever the work is being conducted.
These inspections can be performed periodically. However, inspections and tests must not be performed in a way that excessively delays the work.
Some projects may be broken up into performance milestones. These milestones should be met on time to provide enough information to determine if contractors are meeting compliance requirements and if contractor performance is adequate. Not reaching these milestones on time or not completing them at all may be an indication of issues with the contractors.
Another way to monitor contractor compliance is by keeping track of contractor outputs. If the contractor will be providing outputs (number of vehicles repaired, students trained, etc.) both the amount and quality of output should be monitored.
Financial status reports allow you to monitor the contractor's expenditures and compare technical progress with costs incurred. Significant differences between the expenditure of resources and technical progress are often an indication that there’s a problem with contractor performance.
End user feedback
If the contract is supporting end users, try using surveys or other methods to obtain end user feedback on contractor performance. This is especially true for a customer centric company and will help you determine if contractor compliance is being met by showing whether customers are satisfied with the results and experience as well as if they find contractor performance to be timely and high quality.