LESSON 2 | FRAUD AND HOW TO HANDLE IT 2.3 EXERCISE: PROBLEM RESOLUTION #2 Directions 1. Working in groups, read the newest memo from Carl Customs on what is happening on the Profitable contract (assume each problem is accurately described in the memo). 2. Then, work through this list to decide the best way to resolve each problem based on what you know about the contract and the requiring activity's needs: Verify the problem Establish the impact Decide whether to issue a stop work order Decide whether to use an informal solution Decide if modification is necessary Decide whether to issue a formal remedy Decide whether to terminate the contractMODULE 7 | FORMAL REMEDIES Scenario: Memorandum TO: Terry O'Day, Contract Specialist FROM: Carl Customs, contracting officer's representative COR) RE: Profitable Building Services Contract No. FCA-FY-C-2121 Thank you for your fine assistance in resolving past problems on this contract. Unfortunately, two new problems have emerged that also require your attention. First, contractor employees increasingly are reporting for work in their street clothes rather than in uniforms. Usually, they change in the locker room and leave their uniforms here until they become soiled. They then take them home for washing. Many employees have only one uniform, however, and forget to bring it back to work after washing it or did not have an opportunity to wash it before reporting back to work. Uniforms are required by the contract, for ready identification by building occupants and the security staff. I've raised this issue on several occasions with the contractor's onsite supervisor, but the problem persists. Second, the contractor completed the stripping and waxing of the garage floors, as required under paragraph 5.7, PWS and as specified by the annual cleaning schedule submitted by the contractor. The work appeared satisfactory when it was accomplished and was approved by my inspector. Three or four weeks later, however, the wax began peeling away. When I called this to the attention of Profitable's onsite supervisor, he said it was due to applying it in below freezing weather in an unheated area, and that Profitable would change the dates for this work in its subsequent annual schedules. He is refusing to redo this work, however, because the manufacturer's directions do not caution about application in cold weather and I approved the schedule that specified the work would be done that day. 1. How would you address these problems