Understanding Government Contracting
Understanding Government Contracting John H. Martinez-D. President Gary Harlin Program Director
Understanding Government Contracting <ul><li>Henry Vinson,   </li></ul><ul><li>  CCAS, CBDS </li></ul><ul><li>18 Years Exp...
Agenda <ul><li>Objectives </li></ul><ul><li>Historical Perspectives </li></ul><ul><li>Overall Contracting Issues </li></ul...
Objectives <ul><ul><li>Subjects Necessary for you to Start or Continue Government Contracting with Confidence </li></ul></...
Historical Perspective
Historical Perspective   <ul><li>The constitution provides the authority for the Government to contract </li></ul>
Historical Perspective . <ul><li>1792 - Department of Treasury was delegated authority for all government contracting </li...
Historical Perspective <ul><li>1947  -  DEFENSE PROCUREMENT ACT – </li></ul><ul><li>Approximately  100 pages </li></ul><ul...
Historical Perspective <ul><li>1976  - DEFENSE ACQUISITION REGULATION </li></ul><ul><li>  - OFFICE OF FEDERAL PROCUREMENT ...
Historical Perspective <ul><li>WE HAVE SEEN INCREASED GOVERNMENT LEGISLATION AND COMPLIANCE ACTIVITY OVER THE PAST DECADE ...
USS Carl Vinson,  USS Sacramento, USS Ingraham Why Get Into  Government  Contracting?  The Government is the  Largest Buye...
Understanding Government Contracting
There are Many Governments  Therefore many Buyers
Understanding Government Contracting <ul><li>There is a Process to Government Acquisition and….. </li></ul><ul><li>It can ...
Understanding Government Contracting <ul><li>THE GOVERNMENT AS A CUSTOMER </li></ul><ul><li>-  THE GOVERNMENT DEFINES THE ...
Understanding Government Contracting <ul><li>  RTC </li></ul><ul><li>It’s in there  (You gotta do it) </li></ul><ul><li>It...
Understanding Government Contracting
Government-Commercial  The Differences <ul><li>Unilateral Right to Make Changes  </li></ul><ul><li>Equitable Adjustments –...
Rules, Regulations & The Law <ul><li>The FAR </li></ul><ul><li>(Federal Acquisition Regulation) </li></ul><ul><li>The Gove...
Rules, Regulations & The Law <ul><li>The FAR </li></ul><ul><li>(Published Daily as part of the Federal Register)  </li></u...
The Government Contracts Reference Book <ul><li>This quick-reference guide provides ready definitions for more than 1,500 ...
FAR Overview <ul><li>AGENCY ACQUISITION REGULATIONS </li></ul><ul><ul><li>Federal agencies may issue their own regulations...
FAR Overview <ul><li>REQUIREMENTS </li></ul><ul><ul><li>Government requirements are established by the FAR </li></ul></ul>...
FAR Overview   <ul><li>EXEMPT </li></ul><ul><ul><li>Some government organizations claim to be exempt from the FAR. Example...
Break
Solicitation Phase (In the beginning)
Understanding Government Contracting The Governmental Procurement Process Negotiation Solicitation Prepared & Published Pr...
Definitions  <ul><li>Warranties </li></ul><ul><li>& </li></ul><ul><li>Latent  </li></ul><ul><li>Defects </li></ul>
Definitions <ul><li>Liquidated Damages </li></ul>
Statement of Work
Definitions <ul><li>Defective Spec. or Implied Warranty of Specifications  </li></ul><ul><ul><li>Constructive Change claim...
Definitions <ul><li>Ambiguity  – Two or more interpretations of a solicitation or contract requirement   </li></ul>
Ambiguity   <ul><li>Honey I’ve won the Lottery…..Pack  Your Bags! </li></ul>
Ambiguity <ul><li>After an argument  </li></ul><ul><li>he says, </li></ul><ul><li>“ I’m Sorry,  </li></ul><ul><li>I love y...
Responsive vs. Responsible
Bid/Proposal  due Time & Date
Payment Process <ul><ul><li>Gettin’ Paid </li></ul></ul><ul><ul><li>In the Beginning </li></ul></ul><ul><ul><li>During </l...
Definitions  <ul><li>Should </li></ul><ul><li>Shall </li></ul><ul><li>May </li></ul><ul><li>Must </li></ul><ul><li>Will </...
Definitions <ul><li>Should </li></ul><ul><li>May </li></ul><ul><li>Must </li></ul><ul><li>Will </li></ul><ul><li>Shall  </...
Definitions  <ul><li>Requirements Person  </li></ul><ul><li>vs </li></ul><ul><li>Contracting Person </li></ul><ul><li>(Cos...
Definitions  <ul><li>Contracting Officers (COs or KOs) have  Warrants </li></ul><ul><li>Many Types: The Procuring CO (PCO)...
Break
Understanding Government Contracting <ul><li>IFB vs RFP </li></ul>
Understanding Government Contracting <ul><li>IFB  –  Bid  </li></ul><ul><li>(not negotiable & public opening) </li></ul><u...
IFB <ul><li>Invitation for Bid – IFB </li></ul><ul><li>FAR Part 14 – Sealed Bidding </li></ul>
IFB  <ul><li>Invitation must describe the Requirements </li></ul><ul><ul><li>Clearly </li></ul></ul><ul><ul><li>Accurately...
IFB <ul><li>Unnecessarily restricted specifications or requirements that might unduly limit the number of bidders are proh...
RFP <ul><li>Request for Proposal – RFP </li></ul><ul><li>FAR Part 15 – Contracting by Negotiation  </li></ul>
RFP <ul><li>Types  (15.002) </li></ul><ul><ul><li>Sole Source </li></ul></ul><ul><ul><ul><li>(Unsolicited proposals) </li>...
More Definitions RFP <ul><li>Fair  not Equal  Treatment: </li></ul><ul><li>As of January 1998 they don’t have to treat you...
More Definitions RFP <ul><li>Competitive Range </li></ul><ul><li>No longer have to include all proposals when they have a ...
More Definitions RFP <ul><li>Exchanges - (Conversations) </li></ul><ul><ul><li>Pre-proposal  – COs now have broad discreti...
More Government Contracting Perversion of Words RFP <ul><li>After receipt of proposals </li></ul><ul><li>There are  three ...
More Definitions RFP <ul><ul><li>2.  Communications –  If CO conducts discussions….then Exchanges must occur before compet...
More Definitions RFP <ul><ul><li>3.  Discussion  – (Negotiations) Occurs after the competitive range has been established....
More Definitions RFP <ul><ul><li>3.  Discussion  – contd. </li></ul></ul><ul><ul><li>No more “Best and Final.” Offerors no...
More Definitions RFP <ul><ul><li>3.  Discussion  – contd. </li></ul></ul><ul><ul><li>Auctioning is still law in so far as ...
RFP <ul><li>Source Selection Process and Techniques </li></ul><ul><ul><li>Best Value –  (15.101) Risk of unsuccessful cont...
RFP <ul><li>Trade Off condt.   </li></ul><ul><ul><li>Must be authorized by the solicitation </li></ul></ul><ul><ul><li>Sol...
RFP <ul><li>Lowest Price -Technically Acceptable (15.101-2) </li></ul><ul><li>a. Appropriate when best value is expected t...
RFP <ul><li>Lowest Price -Technically Acceptable (15.101-2) Condt. </li></ul><ul><li>If a small business past performance ...
RFP <ul><li>Oral Presentation (15.102) </li></ul><ul><ul><li>Qualifications of presenters </li></ul></ul><ul><ul><li>Restr...
Break
Uniform Contract Format Details in Proposal Writing Course
Registration & Certifications <ul><li>  </li></ul><ul><ul><li>8 (a) </li></ul></ul><ul><ul><li>HubZone </li></ul></ul><ul>...
North American Industry Classification Code (NAICS) Codes, Product Codes, & Service Codes   <ul><li>NAICS: </li></ul><ul><...
Electronic Commerce <ul><li>Cross Timbers  </li></ul><ul><li>Web Sites to find Bid Opportunities </li></ul><ul><ul><li>---...
Cross Timbers Procurement Center <ul><li>Gary Harlin </li></ul><ul><li>Roger Flores </li></ul><ul><li>817-272-5978 </li></ul>
Web Sites <ul><li>Feds: www.fbo.gov </li></ul><ul><li>Local: www.hcadfw.org </li></ul><ul><li>State & Local: www.state.tx....
Contract Termination  Contrary to Popular Belief, this is  not  the Way the Department Of Defense Terminates it’s Contracts
TYPES OF TERMINATIONS <ul><li>There are  five  recognized reasons for termination of a contract, they are: </li></ul><ul><...
CONTRACT TERMINATION DEFINITION <ul><li>THE CANCELING OF ALL OR A PART OF A PRIME CONTRACT OR SUBCONTRACT PRIOR TO ITS COM...
MORE DEFINITIONS <ul><li>TERMINATION COSTS - Such costs as disposal of inventory, severance pay, rehabilitation, professio...
T4C <ul><li>TERMINATION FOR CONVENIENCE (T4C) - The Government’s unilateral contractual right to terminate a contract, in ...
T4C  Equitable Adjustment
T4D <ul><li>TERMINATION FOR DEFAULT (T4D) - The government’s contractual right to terminate a contract, in whole or in par...
T4D <ul><li>Phone Call – Call Henry  </li></ul><ul><li>Letter of Warning – Call Henry </li></ul><ul><li>Cure Letter – Call...
T4D <ul><li>Phone Call – Call Henry  </li></ul><ul><li>Letter of Warning – Call Henry </li></ul><ul><li>Cure Letter – Call...
T4D <ul><li>If possible convert to  T4C </li></ul>
Claims <ul><li>Contract Disputes Act of 1978 </li></ul><ul><ul><li>Must be in writing </li></ul></ul><ul><ul><li>Must ask ...
Claims <ul><li>Follow instructions outlined in the Solicitation/Contract. If that don’t work…. </li></ul><ul><li>Ask CO fo...
Government Contracting Basics <ul><li>Email Henry: hvinson@uta.edu </li></ul><ul><ul><li>Counseling </li></ul></ul><ul><ul...
I hope you had this much fun, I did! THANK YOU!
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  • JOKE: Limousine driver with college professor. How some folks think you get a government contract. Tell story of three old ladies got a contract by going to their Senator. Lady that was driving around and heard on the radio that they were handing out contracts at The Holiday Inn on Mechum Blvd. In Fort Worth.
  • Explain why the presentation is in this order. Overall contracting issues, FAR, IFB/RFP, Uniform Contract Format, So on.
  • I spent over a year putting this together. Some comes from what I saw as a CO Some from what I have seen as a Government Contract Consultant Some from the 7 classes I taught for the Dallas County Community College
  • Government Contracting has been around for a long time.
  • Article I, Section 8
  • If you stacked all the Government Rules, Regulations and Laws in one pile it would probably be as high as the Sears tower. We’ll cover only about ¼ inch today. Wright brothers’ first contract to build an airplane was 2 pages long. We’re going to go over all 20,000 pages today.
  • We’re going to cover the FAR Part 15 rewrite in detail later.
  • After all the Ships, Aircraft, Major Weapons Systems and other large purchases are make, Almost everything left is set-a-side for Small and Disadvantaged Business.
  • The government buys everything from bullets to biscuits. There should be a certain amount of pride in doing business with the DoD. Just knowing that you are a direct supporter of the American War Fighter. Government Contracting shouldn’t just be all about money.
  • Federal, State, City, County, Dart, DFW Airport, Dallas County Community College…. The list of governments goes on and on. Basically, they all use the same system. The names may be slightly changed but the system is similar. I’ve found that the further you go toward local governments….the less trained the government contracting folks are…..there are exceptions tho.
  • Just as this War Fighter is taught to carry ordinance….you can be trained to do government contracting. However, I say we are practicing government contracting. Just as a doctor or lawyer is in practice.
  • 19 19 Discuss: Which golden rule? Remark how rules and terms encased in statute It’s a well defined part of government contract law…..The government has the right to buy what it wants when it wants it. (No matter how stupid it is)
  • The contract says a wall goes here The contract says a wall don’t go here. but it looks like one should go here. The contracts says a structure goes here but there are no drawings and the spec book don’t address it.
  • The thought process about your contract or solicitation is jus like the though process from the pilot with the rubber side down. I know he’s there It’s in there I know he’s not there I know it’s not in there I’m not sure if he’s there. Then he reacts as if he is there I don’t know if it’s in there or not…..Then you react if it’s in there until you can get a decision from the CO. (or your government contracting consultant or attorney)
  • 21 21 In some cases Cos may change your contract without your signature. Some classes teach that they can do this without your permission. Not so. You sign a contract giving them permission. If it’s not in your contract that they can make unilateral changes….they can’t do it. (Not to be confused with T4C) Example of having a contract with me and I want to go through your desk. Talk in some detail about changes and adjustments Then remark about implementation of social/economic programs via contracting process Discuss termination kinds and when Equitable adjustments – What are you entitled to? Audits – If you have a contract the government has the right to come into you office and rifle through you desk.
  • Provide a copy of a page out of the FAR and go over how the paragraphs are laid out. Go to hand out.
  • Turn to copy of the web site page.
  • Agencies my make requirements more stringent but may not lessen the requirements.
  • Not only do they not have the authority to change the rules, they don’t have the desire. These rules have served them well for many years. They don’t want to tinker with it.
  • Basically, they have thrown out the parts of the FAR they don’t like and kept the ones they do like. Their reason they got permission to be exempt? They serve a customer and have convinced congress and the courts that their first obligation is to it’s customers.
  • JOKE: When they return from Break. Young man told me it was the worst presentation he had ever seen
  • Read the entire solicitation. Now is the time to make clear any proprietary information. Mark it on each page of you proposal. Count the pages. Yes, count the pages. Sometimes they leave out a page and no one catches it. You will be expected to perform all the contract including what is on the missing page. Prove you didn’t get it Fill in all the blanks, even if it is with N/A/ Acknowledge all amendments.
  • 12 12 Comment on: Three tier level of processes Contracting process Importance of Pre-Bid conference What you can accomplish there Overlay of funding profile Importance until first invoice, voucher paid on Role of business plan and loans Role of SBA and loan programs s and their impact here Regulations How they control what happens Not all must be learned, only those that apply
  • There are two differences in a 10 year roof and a 20 year roof: 1.) 10 Years 2.) Price
  • Liquidated Damages is where government property is damaged and there is water involved. Then explain what it is and why and where they use it.
  • SOW, Requirements, Specifications, Scope of Work….all the same thing! Read Follow and Understand. Believe it or not, some contractors don’t even read them. If you suspect an error in the SOW, report it to the CO. If they don’t change it….don’t bid it. Let some other sucker bid it and win in the disputes clause. The disputes clause is not a way to make money. It’s a clause to stay away from.
  • Talk about the work SHALL. When do they (government) use shall. (When you gotta do it) When do they use the other words. (When they gotta do it) Examples coming up. This something that if you don’t know….you shouldn’t be doing government contracting. The reason I highlighted the word SHALL in yellow is because I want you to highlight the word SHALL in yellow when you read the solicitation. In fact, we’ll talk about it more later but the first three things I want you do when you pick up the solicitation the first time is to: 1.) Count the pages to make sure they are all there. 2.) Highlight the word SHALL in yellow. 3.) Read schedule “M” first.
  • The contract says a wall similar to the adjacent wall shall be constructed. Do you have an obligation to point it out to the CO during the solicitation phase? Yes During contract performance ask the CO for a clarification. May have to ask for a Contracting Officers final decision – cover later.
  • Explain how the CO goes through the process when opening the solicitations. 1 st looks for responsible – does he qualify? Can a person selling electrical cord bid on building this aircraft? Even tho he does not sell them can he bid on telephone cables? The government will probably make that leap. 2 nd looks at responsive – did the contractor do anything to change the specifications? One guy sent in a brochure that said their company only used a certain high quality product but a specific brand was specified. He is non-responsive. The bid goes in the trash can. Include no conditions on------if I get this contract I will insure a higher quality product is used than what the solicitation requires. Include no Exceptions – We will do everything in the specs except…… You might get an opportunity to change your proposal but never in a bid. Your included brochures, cover letter, even you notes on the inside of the envelope is part of you proposal or bid. Tell story about the sub contractor that wanted to use a narrower kitchen counter top because he thought it was his responsibility to save the government money. After all, he said, “no one uses that width anyway.” Ask the question, “If the Wright brothers’ first contract to build an airplane was 2 pages, How many pages do you think the contract to build this airplane was?”
  • I don’t care how you get it there on time just get it there! One minute late and they will not accept it. Tell story about the mayor of Miami accepting a late bid that would have save the city $2 million. Explain how most of them work. It’s your responsibility to get to the right location. #1 excuse for late bid…..I was on base but couldn’t find the building. Tough! It’s not UPS or FedEx responsibility to get it to the CO. Tell story about bids in Great Lakes.
  • Explain what can happen in the beginning. IE bill after 30 days, takes 30 days to process, mistake on invoice (such as 2 digits as the invoice number when contract requires 3 digits). The invoice is returned (has to be with in 7 days) and the 30 days starts all over again. Note: if the government makes a mistake…..the 30 days does not start over again. Explain Prompt Payment Act. Explain that all contract close out requirements must be met before last invoice is submitted. If they are then prompt payment act applies.
  • The government’s perversion of words. Should &amp; Shall have the same definition – Something that will take place or exist in the future. May – Used to indicate a certain measure of likelihood or possibility. Must – To be obligated or required by morality, law, or custom. Will – The mental faculty by which one deliberately chooses or decides upon a course of action.
  • Talk about the work SHALL. When do they (government) use shall. (When you gotta do it) When do they use the other words. (When they gotta do it) Examples coming up. This something that if you don’t know….you shouldn’t be doing government contracting. The reason I highlighted the word SHALL in yellow is because I want you to highlight the word SHALL in yellow when you read the solicitation. In fact, we’ll talk about it more later but the first three things I want you do when you pick up the solicitation the first time is to: 1.) Count the pages to make sure they are all there. 2.) Highlight the word SHALL in yellow. 3.) Read schedule “M” first.
  • Use the janitorial example to explain a Constructive Change.
  • Explain my logic on the Mini judges.
  • JOKE: When they return from Break. Three Texans go to heave. One had IQ of 135, One had IQ of 130, One had IQ of 22.
  • BID is not used in an RFP and…..Offer or Proposal is not used in a BID.
  • Explain how the KO goes through the awards process.
  • Read the beginning of Part 14.
  • Read the beginning of the Part 15 from the FAR.
  • Unsolicited Proposals – (Sole Source) Used by the government under two circumstances. 1.) The government needs something but don’t know where to find it. 2.) The government needs something but don’t know it needs it. Tell story about the guy in Arlington that was an accountant that paid your personal bills. Another use of the Sole Source paragraph is the source may be the only one known to the government.
  • Use to have to say the same words during negotiations and give them the same amount of time to respond. Not so anymore.
  • Explain what a competitive range is and how it’s established. It means there are the only ones the CO intends to negotiate with. The CO is the deciding official on who makes the competitive range. You’re wasting you time to protest not making the competitive range. It’s subjective. Although the CO must document the file on how he established the Competitive range.
  • Use to have to say the same words during negotiations and give them the same amount of time to respond. Not so anymore. Exchanges -
  • In Webster, the word “exchange” means to give in return for something received. In government contracting however it means discussion. Clarification in Webster means to make clear or easier to understand. In government contracting however it means there will be no negotiations during our exchange (discussion).
  • Communications in Webster means the exchange of thoughts, messages, or information. In government contracting however it means a conversation must occur before the CO establishes the competitive range.
  • In Webster Discussion means Consideration on a subject by a group. In government contracting it means negotiations after the competitive range has been established.
  • Use to have to say the same words during negotiations and give them the same amount of time to respond. Not so anymore.
  • Use to have to say the same words during negotiations and give them the same amount of time to respond. Not so anymore.
  • Most of the time they only allow three folks from the company and they must be senior or principals in the company.
  • JOKE: After they return from Break. Man dies and goes to heaven and Gabriel ask him what he had done to gain entry. Gave homeless man 25 cents once, etc etc etc
  • 31 31 Go to Tab B Make recommendation for first quarter to aid decision and then go for extended time
  • Discuss Cross Timbers here.
  • Search by product or service code. Search by key word. SBA’s ProNet and SubNet
  • Talk about judges and how they got started. (congress set them up because they each time they went to court, the judges had to be trained) That’s why the BCA goes into the process trying to find the government at fault. If they found in favor of the government all the time…..congress would do away with them. The judges are hard on Cos. First question they usually ask the construction CO is how many times did you visit the job site. If they were there two times (Precon and Final inspection) they will probably lose. Operation of Law: One of the owners dies.
  • Means reasonable and fair profit. Some contractors think the definition means “Windfall Adjustment.”
  • If you ask for the Co’s final decision and the CO tells you to perform and you believe it’s not in the contract. You SHALL perform. You may, however, file a claim asking for equitable adjustment.
  • Allowable by the FAR if The CO agrees.
  • Claim that is certified and FALSE could mean fine or imprisonment. Board of Contract Appeal (BCA) is from whatever department you are contracted with. IE Armed Services Board of Contract Appeal, GSA Board of Contract Appeal, etc. Ethics – The government is mandated to be fair and reasonable. It’s only right that you be fair and reasonable as well. Profits should be in line, Contracting Officers should not be expected to accept gifts, and you should comply with ALL requirements of the contract. (This includes paying employees and subs as the contract dictates)
  • Company Review – See if you are doing what other successful companies are doing. If not, get you set up on those items. See what you are doing right and maybe improve on those items as well. Retainer – Do searches daily or weekly for bid opportunities. Critique your proposals before you send them in to insure you are giving the CO what they want. As Needed – Occasionally go over your proposals or put your proposals together. Protest awards or write letters if you are in trouble.
  • Henry Vinson

    1. 1. Understanding Government Contracting
    2. 2. Understanding Government Contracting John H. Martinez-D. President Gary Harlin Program Director
    3. 3. Understanding Government Contracting <ul><li>Henry Vinson, </li></ul><ul><li> CCAS, CBDS </li></ul><ul><li>18 Years Experience Managing Large Retail Shopping Centers for Military Forces </li></ul><ul><li>14 Years Government Contracting Experience (Including Chief, Construction & Equipment Division ) </li></ul><ul><li>10 Years Small Business Owner: Government Contracting Consultant (Included total preparation of Construction Technical Proposals) </li></ul><ul><li> </li></ul>
    4. 4. Agenda <ul><li>Objectives </li></ul><ul><li>Historical Perspectives </li></ul><ul><li>Overall Contracting Issues </li></ul><ul><li>Rules, Regulations & The Law </li></ul><ul><li>The Procurement Process </li></ul><ul><li>IFB vs. RFP </li></ul><ul><li>Uniform Contract Format </li></ul><ul><li>Registrations & Certifications </li></ul><ul><li>Electronic Commerce & </li></ul><ul><li>Marketing </li></ul><ul><li>Contract Terminations </li></ul><ul><li>Claims and Ethics </li></ul>
    5. 5. Objectives <ul><ul><li>Subjects Necessary for you to Start or Continue Government Contracting with Confidence </li></ul></ul><ul><ul><li>Subjects that if you don’t know, your shouldn’t be doing Government Contracting </li></ul></ul><ul><ul><li>How to stay out of Trouble </li></ul></ul><ul><ul><li>Have Fun! </li></ul></ul>
    6. 6. Historical Perspective
    7. 7. Historical Perspective <ul><li>The constitution provides the authority for the Government to contract </li></ul>
    8. 8. Historical Perspective . <ul><li>1792 - Department of Treasury was delegated authority for all government contracting </li></ul><ul><li>1809 - Advertised bidding was authorized by law </li></ul><ul><li>1861 - During the civil war, The Sundry Appropriations Act was passed </li></ul><ul><li>1941 - War Powers Act </li></ul>
    9. 9. Historical Perspective <ul><li>1947 - DEFENSE PROCUREMENT ACT – </li></ul><ul><li>Approximately 100 pages </li></ul><ul><li>1948 - ARMED SERVICES PROCUREMENT ACT </li></ul><ul><li> - CREATED THE ARMED SERVICES </li></ul><ul><li>PROCUREMENT REGULATION </li></ul><ul><li>1970 - DEFENSE PROCUREMENT ACT – </li></ul><ul><li>Approximately 3000 pages </li></ul><ul><li>- CREATED COST ACCOUNTING </li></ul><ul><li>STANDARD BOARD </li></ul>
    10. 10. Historical Perspective <ul><li>1976 - DEFENSE ACQUISITION REGULATION </li></ul><ul><li> - OFFICE OF FEDERAL PROCUREMENT POLICY </li></ul><ul><li> ACT </li></ul><ul><li>1984 - FEDERAL ACQUISITION REGULATION – </li></ul><ul><li>Approximately 20,000 pages </li></ul><ul><li>Note: We’ll cover all 20,000 pages today! </li></ul><ul><li> - CREATED A SINGLE ACQUISITION </li></ul><ul><li>REGULATION SYSTEM </li></ul><ul><li>OF RULES AND REGULATIONS) FOR </li></ul><ul><li>GOVENNMENT WIDE USE - DAR (DEFENSE ACQUISITION REGULATIONS) </li></ul><ul><li>- FPR (FEDERAL PROCUREMENT </li></ul><ul><li> REGULATIONS) </li></ul><ul><li>- NASAPR (NATIONAL AERONAUTICS AND </li></ul><ul><li>SPACE ADMINISTRATION PROCUREMENT </li></ul><ul><li>REGULATIONS) </li></ul>
    11. 11. Historical Perspective <ul><li>WE HAVE SEEN INCREASED GOVERNMENT LEGISLATION AND COMPLIANCE ACTIVITY OVER THE PAST DECADE </li></ul><ul><li>COMPETITION IN CONTRACTING ACT ( 1984 ). </li></ul><ul><li>ANTI-KICKBACK LEGISLATION ACT ( 1986 ). </li></ul><ul><li>FALSE CLAIMS AMENDMENTS ACT ( 1986 ). </li></ul><ul><li>AMENDMENTS TO TRUTH IN NEGOTIATIONS ACT ( 1986 ). </li></ul><ul><li>DEFENSE ACQUISITION IMPROVEMENT ACT ( 1986 ). </li></ul><ul><li>DoD IG ( DEPARTMENT OF DEFENSE - INSPECTOR </li></ul><ul><li>GENERAL) FRAUD INDICATORS </li></ul><ul><li>AUDITS : DCAA, DCAS, DoD IG, GAO ( DEFENSE </li></ul><ul><li>CONTRACT AUDIT AGENCY, DEFENSE CONTRACTS </li></ul><ul><li>ADMINISTRATIVE SERVICES, DEPARTMENT OF </li></ul><ul><li>DEFENSE INSPECTOR GENERAL, GENERAL </li></ul><ul><li>ACCOUNTING OFFICE) </li></ul><ul><li>FAR Part 15 Rewrite (1997) </li></ul><ul><li>PROGRAM FRAUD CIVIL REMEDIES ACT (1986) </li></ul>
    12. 12. USS Carl Vinson, USS Sacramento, USS Ingraham Why Get Into Government Contracting? The Government is the Largest Buyer of Goods And Services in the World
    13. 13. Understanding Government Contracting
    14. 14. There are Many Governments Therefore many Buyers
    15. 15. Understanding Government Contracting <ul><li>There is a Process to Government Acquisition and….. </li></ul><ul><li>It can be learned </li></ul>
    16. 16. Understanding Government Contracting <ul><li>THE GOVERNMENT AS A CUSTOMER </li></ul><ul><li>- THE GOVERNMENT DEFINES THE BUSINESS AND ESTABLISHES THE RULES </li></ul><ul><ul><li>IF YOU WANT TO DO BUSINESS WITH THE GOVERNMENT - YOU DO IT ON THEIR TERMS </li></ul></ul><ul><ul><li>FEW OF THE RULES ARE “NEGOTIABLE” </li></ul></ul><ul><ul><li>GOVERNMENT REPRESENTATIVES HAVE LITTLE DISCRETION IN ESTABLISHING THE RULES </li></ul></ul><ul><ul><li>WAIT ! But I can save the government money if they will only do it my way. </li></ul></ul>The Golden Rule Applies Here
    17. 17. Understanding Government Contracting <ul><li> RTC </li></ul><ul><li>It’s in there (You gotta do it) </li></ul><ul><li>It’s not in there </li></ul><ul><li>(You ain’t gotta do it) </li></ul><ul><li>It’s open for interpretation (You gotta do it) </li></ul>
    18. 18. Understanding Government Contracting
    19. 19. Government-Commercial The Differences <ul><li>Unilateral Right to Make Changes </li></ul><ul><li>Equitable Adjustments – cover later </li></ul><ul><li>Audit and Surveillance Rights </li></ul><ul><li>Compliance With Social and Economic Programs </li></ul><ul><li>May be Limitation on Profit or Amount and Type of Costs </li></ul><ul><li>Absolute Right to Terminate – cover later </li></ul>
    20. 20. Rules, Regulations & The Law <ul><li>The FAR </li></ul><ul><li>(Federal Acquisition Regulation) </li></ul><ul><li>The Government Contracting Bible </li></ul><ul><li>http://www.arnet.gov/far/ </li></ul><ul><ul><li>http://business.cch.com/ </li></ul></ul>
    21. 21. Rules, Regulations & The Law <ul><li>The FAR </li></ul><ul><li>(Published Daily as part of the Federal Register) </li></ul><ul><li>http://www.arnet.gov/far/ </li></ul><ul><ul><li>http://business.cch.com/ </li></ul></ul>$79.00
    22. 22. The Government Contracts Reference Book <ul><li>This quick-reference guide provides ready definitions for more than 1,500 terms, phrases and acronyms used in government procurement. </li></ul>$60.00
    23. 23. FAR Overview <ul><li>AGENCY ACQUISITION REGULATIONS </li></ul><ul><ul><li>Federal agencies may issue their own regulations that “implement or supplement” the FAR </li></ul></ul><ul><ul><li>DOD FAR supplement (DFARS) applies to DOD and foreign military sales and NATO projects </li></ul></ul><ul><ul><li>DFARS is published as chapter 2 in title 48 of the code of federal regulations </li></ul></ul><ul><ul><li>GSA acquisition regulation (GSAR) supplements FAR and contains other provisions </li></ul></ul><ul><ul><li>GSAR is published in the code of federal regulations </li></ul></ul><ul><ul><li>NASA, DOE, DOT, and EPA have implementing regulations as well </li></ul></ul>
    24. 24. FAR Overview <ul><li>REQUIREMENTS </li></ul><ul><ul><li>Government requirements are established by the FAR </li></ul></ul><ul><ul><li>The rules are fixed and there is little flexibility - on your part or the government’s </li></ul></ul>
    25. 25. FAR Overview <ul><li>EXEMPT </li></ul><ul><ul><li>Some government organizations claim to be exempt from the FAR. Examples are: </li></ul></ul>
    26. 26. Break
    27. 27. Solicitation Phase (In the beginning)
    28. 28. Understanding Government Contracting The Governmental Procurement Process Negotiation Solicitation Prepared & Published Proposal Phase Pre-Bid Conf Contract Award Contract Performance Contract Closeout Funding Continued Funding and Payment Final Payment <ul><li>FAR </li></ul><ul><li>Municipality Policy </li></ul><ul><li>State Regs </li></ul>
    29. 29. Definitions <ul><li>Warranties </li></ul><ul><li>& </li></ul><ul><li>Latent </li></ul><ul><li>Defects </li></ul>
    30. 30. Definitions <ul><li>Liquidated Damages </li></ul>
    31. 31. Statement of Work
    32. 32. Definitions <ul><li>Defective Spec. or Implied Warranty of Specifications </li></ul><ul><ul><li>Constructive Change claim to obtain Equitable Adjustment is possible </li></ul></ul>
    33. 33. Definitions <ul><li>Ambiguity – Two or more interpretations of a solicitation or contract requirement </li></ul>
    34. 34. Ambiguity <ul><li>Honey I’ve won the Lottery…..Pack Your Bags! </li></ul>
    35. 35. Ambiguity <ul><li>After an argument </li></ul><ul><li>he says, </li></ul><ul><li>“ I’m Sorry, </li></ul><ul><li>I love you! </li></ul>
    36. 36. Responsive vs. Responsible
    37. 37. Bid/Proposal due Time & Date
    38. 38. Payment Process <ul><ul><li>Gettin’ Paid </li></ul></ul><ul><ul><li>In the Beginning </li></ul></ul><ul><ul><li>During </li></ul></ul><ul><ul><li>Close-out </li></ul></ul>
    39. 39. Definitions <ul><li>Should </li></ul><ul><li>Shall </li></ul><ul><li>May </li></ul><ul><li>Must </li></ul><ul><li>Will </li></ul><ul><li>Government contracting’s perversion of words </li></ul>
    40. 40. Definitions <ul><li>Should </li></ul><ul><li>May </li></ul><ul><li>Must </li></ul><ul><li>Will </li></ul><ul><li>Shall </li></ul>
    41. 41. Definitions <ul><li>Requirements Person </li></ul><ul><li>vs </li></ul><ul><li>Contracting Person </li></ul><ul><li>(Cos have no money, their purpose is to insure compliance of rules, regulations, and laws…. </li></ul><ul><li>(on both sides) </li></ul><ul><li>Note: Constructive Changes ! A No No </li></ul><ul><li>Only COs with Warrants have authority to Obligate Government Funds </li></ul>
    42. 42. Definitions <ul><li>Contracting Officers (COs or KOs) have Warrants </li></ul><ul><li>Many Types: The Procuring CO (PCO), the Administrative CO (ACO), The Purchasing and Administrative CO (PACO), Corporate Administrative CO (CACO), Contracting Officer’s Representative (COR) and the TCO. (TCO is a specialist in terminations and settlements) </li></ul><ul><li>Be careful, there are Purchasing Agents & Buyers who may or may not be Cos </li></ul><ul><li>Note: Contracting Officers are Mini-Judges </li></ul>
    43. 43. Break
    44. 44. Understanding Government Contracting <ul><li>IFB vs RFP </li></ul>
    45. 45. Understanding Government Contracting <ul><li>IFB – Bid </li></ul><ul><li>(not negotiable & public opening) </li></ul><ul><li>RFP – Offer </li></ul><ul><li>Well then…..What’s a RFP? </li></ul>
    46. 46. IFB <ul><li>Invitation for Bid – IFB </li></ul><ul><li>FAR Part 14 – Sealed Bidding </li></ul>
    47. 47. IFB <ul><li>Invitation must describe the Requirements </li></ul><ul><ul><li>Clearly </li></ul></ul><ul><ul><li>Accurately </li></ul></ul><ul><ul><li>Completely </li></ul></ul>
    48. 48. IFB <ul><li>Unnecessarily restricted specifications or requirements that might unduly limit the number of bidders are prohibited </li></ul><ul><li>Must be posted in public places </li></ul><ul><li>No discussion – cover later </li></ul><ul><li>Award only to responsible, responsive bidders and is most advantageous to the government – cover later </li></ul><ul><li>Must use Uniform Contract Format – cover later </li></ul><ul><li>Late bids and offers will not be opened or considered – cover later </li></ul><ul><li>Fax bids – only if authorized by the solicitation </li></ul><ul><li>Electronic bids – only if authorized by the solicitation </li></ul>
    49. 49. RFP <ul><li>Request for Proposal – RFP </li></ul><ul><li>FAR Part 15 – Contracting by Negotiation </li></ul>
    50. 50. RFP <ul><li>Types (15.002) </li></ul><ul><ul><li>Sole Source </li></ul></ul><ul><ul><ul><li>(Unsolicited proposals) </li></ul></ul></ul><ul><ul><li>Competitive (The preferred method) </li></ul></ul>
    51. 51. More Definitions RFP <ul><li>Fair not Equal Treatment: </li></ul><ul><li>As of January 1998 they don’t have to treat you equal any more </li></ul><ul><li>Contractors are treated fairly and impartially but need not be treated the same </li></ul>
    52. 52. More Definitions RFP <ul><li>Competitive Range </li></ul><ul><li>No longer have to include all proposals when they have a reasonable chance for award. In fact, the rule is….when in doubt, throw it out </li></ul><ul><li>CO uses only the most highly rated proposals . Further, they throw out what exceeds the number of which an efficient competition can be conducted….only use the number of offerors that permits efficient competition </li></ul>
    53. 53. More Definitions RFP <ul><li>Exchanges - (Conversations) </li></ul><ul><ul><li>Pre-proposal – COs now have broad discretion to talk with industry before issuing the solicitation. Cos may also have “one on one” meetings with potential offerors </li></ul></ul>
    54. 54. More Government Contracting Perversion of Words RFP <ul><li>After receipt of proposals </li></ul><ul><li>There are three types of Exchanges </li></ul><ul><ul><li>1. Clarifications – only when CO contemplates awarding without discussion . This type is used to resolve minor or clerical errors or clarify past performance “information” which it has not had a prior opportunity to respond. </li></ul></ul>
    55. 55. More Definitions RFP <ul><ul><li>2. Communications – If CO conducts discussions….then Exchanges must occur before competitive range is established. Thus it’s called Communications. </li></ul></ul><ul><ul><ul><li>Requires CO to discuss with the offerors any adverse past performance before being excluded from competitive range. CO may address: </li></ul></ul></ul><ul><ul><ul><li>A. ambiguities </li></ul></ul></ul><ul><ul><ul><li>B. perceived weakness or deficiencies </li></ul></ul></ul><ul><ul><ul><li>C. information relevant to performance </li></ul></ul></ul>
    56. 56. More Definitions RFP <ul><ul><li>3. Discussion – (Negotiations) Occurs after the competitive range has been established. CO must discuss: </li></ul></ul><ul><ul><li>A. significant weakness </li></ul></ul><ul><ul><li>B. deficiencies </li></ul></ul><ul><ul><li>C. Other items that may be altered or explained to enhance the proposal’s possibility of award </li></ul></ul>
    57. 57. More Definitions RFP <ul><ul><li>3. Discussion – contd. </li></ul></ul><ul><ul><li>No more “Best and Final.” Offerors no longer have the same number of times to revise their proposal. After discussions are concluded a common date/time is established for all proposals. </li></ul></ul>
    58. 58. More Definitions RFP <ul><ul><li>3. Discussion – contd. </li></ul></ul><ul><ul><li>Auctioning is still law in so far as revealing an offeror’s price. However, CO may state the offeror’s price is to high or to low. Further, CO may disclose to all offerors the government estimate. </li></ul></ul>
    59. 59. RFP <ul><li>Source Selection Process and Techniques </li></ul><ul><ul><li>Best Value – (15.101) Risk of unsuccessful contract performance is minimal, cost or price may play a dominant role </li></ul></ul><ul><ul><li>Trade Off – (15.101-1)Best interest of the Gov. to award to other than lowest price or highest technically rated offeror </li></ul></ul>
    60. 60. RFP <ul><li>Trade Off condt. </li></ul><ul><ul><li>Must be authorized by the solicitation </li></ul></ul><ul><ul><li>Solicitation must state all evaluation factors (other than price) when combined are significantly more important, equal to, or significantly less important than price – Cover later </li></ul></ul><ul><ul><li>Note: CO must document the file with rationale </li></ul></ul>
    61. 61. RFP <ul><li>Lowest Price -Technically Acceptable (15.101-2) </li></ul><ul><li>a. Appropriate when best value is expected to result from selection of the technically acceptable proposal with the lowest price. </li></ul><ul><li>b. Solicitation shall specify that award will be made on the basis of the lowest evaluated price of proposals meeting or exceeding the acceptability standards for non-cost factors. </li></ul>
    62. 62. RFP <ul><li>Lowest Price -Technically Acceptable (15.101-2) Condt. </li></ul><ul><li>If a small business past performance is not acceptable, it’s referred to the Small Business Administration (SBA) for a Certificate of Competency (COC) determination. </li></ul><ul><li>Tradeoffs are not permitted </li></ul><ul><li>Non-price factors are not rated </li></ul><ul><li>“ Exchanges” may occur </li></ul>
    63. 63. RFP <ul><li>Oral Presentation (15.102) </li></ul><ul><ul><li>Qualifications of presenters </li></ul></ul><ul><ul><li>Restrictions on Time (or not fair) </li></ul></ul><ul><ul><li>“ Discussions” not allowed </li></ul></ul><ul><ul><li>Must comply with rules pertaining to “Communications” </li></ul></ul><ul><ul><li>Note: Questions & Answers are considered “Discussions” </li></ul></ul>
    64. 64. Break
    65. 65. Uniform Contract Format Details in Proposal Writing Course
    66. 66. Registration & Certifications <ul><li> </li></ul><ul><ul><li>8 (a) </li></ul></ul><ul><ul><li>HubZone </li></ul></ul><ul><ul><li>CCR (update monthly) </li></ul></ul><ul><ul><li>www.sba.gov </li></ul></ul><ul><ul><li>Texas Hub </li></ul></ul><ul><ul><li>(512) 463-5872 </li></ul></ul><ul><ul><li>NCTRCA </li></ul></ul><ul><ul><li>www.nctrca.org </li></ul></ul>
    67. 67. North American Industry Classification Code (NAICS) Codes, Product Codes, & Service Codes <ul><li>NAICS: </li></ul><ul><li>236220 Barracks Const. </li></ul><ul><li>Product & Service: </li></ul><ul><li>77 – Musical Instruments </li></ul><ul><li>11 – Nuclear Ordnance </li></ul><ul><li>Y - Construction </li></ul>http://www.census.gov/eos/www/naics /
    68. 68. Electronic Commerce <ul><li>Cross Timbers </li></ul><ul><li>Web Sites to find Bid Opportunities </li></ul><ul><ul><li>---Both as a Prime and as a Sub --- </li></ul></ul>
    69. 69. Cross Timbers Procurement Center <ul><li>Gary Harlin </li></ul><ul><li>Roger Flores </li></ul><ul><li>817-272-5978 </li></ul>
    70. 70. Web Sites <ul><li>Feds: www.fbo.gov </li></ul><ul><li>Local: www.hcadfw.org </li></ul><ul><li>State & Local: www.state.tx.us/portal/tol/en/gov/2/9 </li></ul>
    71. 71. Contract Termination Contrary to Popular Belief, this is not the Way the Department Of Defense Terminates it’s Contracts
    72. 72. TYPES OF TERMINATIONS <ul><li>There are five recognized reasons for termination of a contract, they are: </li></ul><ul><li>Performance </li></ul><ul><li>Mutual Consent </li></ul><ul><li>Operation of Law </li></ul><ul><li>Termination for Convenience (T4C) </li></ul><ul><li>Termination for Default/Cause (T4D) </li></ul>                      
    73. 73. CONTRACT TERMINATION DEFINITION <ul><li>THE CANCELING OF ALL OR A PART OF A PRIME CONTRACT OR SUBCONTRACT PRIOR TO ITS COMPLETION THROUGH PERFORMANCE </li></ul>
    74. 74. MORE DEFINITIONS <ul><li>TERMINATION COSTS - Such costs as disposal of inventory, severance pay, rehabilitation, professional services and other settlement expenses. (Anticipatory profits are not an allowable item) </li></ul>
    75. 75. T4C <ul><li>TERMINATION FOR CONVENIENCE (T4C) - The Government’s unilateral contractual right to terminate a contract, in whole or in part, whenever it is in the best interest of the Government to do so. (note: A contractor has a right to be compensated fairly in accordance with the T4C clause of the contract. </li></ul>
    76. 76. T4C Equitable Adjustment
    77. 77. T4D <ul><li>TERMINATION FOR DEFAULT (T4D) - The government’s contractual right to terminate a contract, in whole or in part, for failure of the contractor to perform any provision of the contract, failure to deliver, or failure to make progress so as to endanger the performance of the contract. A contractor has the right to appeal this decision under the disputes Clause. (Note: Also known as Termination for Cause) </li></ul>
    78. 78. T4D <ul><li>Phone Call – Call Henry </li></ul><ul><li>Letter of Warning – Call Henry </li></ul><ul><li>Cure Letter – Call Henry </li></ul><ul><li>Show Cause Letter </li></ul><ul><li>Default Letter </li></ul>
    79. 79. T4D <ul><li>Phone Call – Call Henry </li></ul><ul><li>Letter of Warning – Call Henry </li></ul><ul><li>Cure Letter – Call Henry </li></ul><ul><li>Show Cause Letter – Call your Attorney </li></ul><ul><li>Default Letter – Call your Attorney </li></ul>
    80. 80. T4D <ul><li>If possible convert to T4C </li></ul>
    81. 81. Claims <ul><li>Contract Disputes Act of 1978 </li></ul><ul><ul><li>Must be in writing </li></ul></ul><ul><ul><li>Must ask CO for Final Decision </li></ul></ul><ul><ul><li>Over $100,000 must be certified (Ethics?) </li></ul></ul><ul><ul><li>May appeal CO final decision within 90 days to BCA or to US Court of Federal Claims within 12 months </li></ul></ul>
    82. 82. Claims <ul><li>Follow instructions outlined in the Solicitation/Contract. If that don’t work…. </li></ul><ul><li>Ask CO for instructions on how to file a claim. If that don’t work…. </li></ul><ul><li>Call Henry </li></ul>
    83. 83. Government Contracting Basics <ul><li>Email Henry: hvinson@uta.edu </li></ul><ul><ul><li>Counseling </li></ul></ul><ul><ul><li>Construction Contracting Questions </li></ul></ul><ul><ul><li>Proposal Review </li></ul></ul><ul><ul><li>Problems </li></ul></ul>
    84. 84. I hope you had this much fun, I did! THANK YOU!

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