2010 Government Resources and Opportunities for Business Conference

Jeffrey W. Sneddon

Supervisory Contract Specialist

Yellowstone National Park

What you should learn• What it takes to do business with the government• How to get started, what is required• How to find your market in the government• Understanding the market• What has the government purchased• Can you be competitive• Preparing bids/proposals• Pre-Post Award Requirements• Most government business is done online, learn where

and how• How to fund and understand opportunities• How to get paid and submit invoices• Sub-Contracting

2

Contractor

A business, or corporation which provides supplies, services, or construction to another entity under terms specified in a contract. The contractor is responsible for the means and methods to be used in the execution of the project in accordance with the contract documents. Contractor ownership is willing to accept a high level of personal, professional or financial risk to pursue opportunity

Contracting Officer (CO)

A Federal Employee delegated authority pursuant to the Federal Acquisition Regulations (FAR) to obligate Government funds, award, administer, and terminate contracts.

CO RESPONSIBILITIES- Sign contracts - Obligate Government Funds - Commit Government Property- Authorize Contract Deviations- Direct Changes- Suspend or Terminate Performance- Recoup Funds from Contractor- Suspend Payment to Contractor- Ensure that Contractors receive impartial, fair and equitable

treatment.- Comply with:

- Code of Federal Regulation (CFR);- Federal Acquisition Regulation (FAR);- Executive Orders (E.O.) ;- Department of the Interior (DOI) Regulations; - National Park Service (NPS) Regulations and Instructions; and- Other applicable governmental laws and regulations.

CONTRACT SPECIALIST• A Contracting Officer who serves as an authorized

representative of the awarding Contracting Officer and is responsible for the management, monitoring, and many other aspects of the contract.

PURCHASING AGENT• A Purchasing Agent is a Contracting Officer, with

delegated authority to make small purchases for supplies and non-personal services.

• A small purchase is generally $100,000 or less on the open market and can be larger on a GSA schedule contract.

CONTRACTING OFFICER’S REPRESENTATIVE (COR)

• A person who is delegated SPECIFIC AUTHORITY, in writing, from the Contracting Officer to oversee a particular contract.

COR RESPONSIBILITIES- Ensure that requirements are clearly specified and

defined- Ensure that quality standards are provided and met- Provide for a detailed Independent Government

Estimate (IGE)- Monitor the Contractor’s technical progress- Interpret the Scope of Work- Perform technical evaluations- Perform technical inspection and acceptance- Assist the Contracting Officer in the resolution of

technical problems- NOT AUTHORIZED TO EFFECT CONTRACT

CHANGES OR OBLIGATE GOVERNMENT MONEY!!!!

STANDARD OF CONDUCT

The business ethics of all who are charged with administration and expenditure of public funds must be above reproach at all times.

Gov/Contractor Relationships

• Maintain objectivity and a professional working relationship

• All communications in writing to create an audit trail

• Government will conduct performance reviews

• Contractor motivated by profit motive vs agency mission

• Government close holds information

• Lengthy statements of work with an attempt to document every possible situation, process, regulation, service, and expectation

• Request for Proposal describes services and scope of work in great detail

• Contract administration role vs partner role

• Only acceptable relationship is a contractual one

• Expert role assigned to government employee

• An adversarial relationship between government and contractor may develop

11

Customer Responsibilities  We consider teamwork an essential part of the acquisition process. An

informed customer is our best customer. The following are a few customer responsibilities.

• Avoid unauthorized commitments• Develop accurate, independent cost estimates• Plan ahead for your requirements by allowing adequate contract

administrative lead-time • Develop adequate purchase descriptions, specifications or statements of

work• Properly prepare purchase requests to include sufficient funding• Provide proper justification when restricting competition or seeking special

contractual actions• Perform timely follow-up and quality assurance actions• Promptly sign and forward contract acceptance documents to the paying

office

 

WHAT IS THE FAR?Federal Acquisition Regulation

• The primary document that establishes policies and procedures for acquisition by all Executive Agencies.

WHAT IS A CONTRACT?

• A contract is a means of communication

• A contract is a promise for a promise

• It includes five elements

- offer, acceptance, consideration,

legal substance and competent parties

• May be oral or written

• Must have a “Meeting of the Minds”

CONTRACT TYPES

• FIRM-FIXED-PRICE (99%)

** Lump Sum or Unit Pricing

• COST REIMBURSEMENT (1%)

FIRM-FIXED-PRICE• The most common form of contract used in

the Government• The most preferred by the Government• Majority of the risk is assumed by the

Contractor• Price is set in advance and not altered.• Used for acquiring both goods and

services

Micro-

Purchase Simplified Acquisition Full and Open

- 0 - $3,000 $25,000 $100,000

Micro-

Purchase Simplified Acquisition Full and Open

- 0 - $3,000 $25,000 $100,000

No

Competition

Construction$2,000 Services $2,500 Supplies $3,000

Micro-

Purchase Simplified Acquisition Full and Open

- 0 - $3,000 $25,000 $100,000

No

Competition Limited Competition

Construction$2,000 Three Quotes Services $2,500 Oral Supplies $3,000 Written RFQ

Micro-

Purchase Simplified Acquisition Full and Open

- 0 - $3,000 $25,000 $100,000

No

Competition Limited Competition Advertised Competition FedBizOpps-15 day presolicitation + 30 days Commercial Items: days can be reduced

Construction$2,000 Three Quotes Services $2,500 Oral Supplies $3,000 Written RFQ

Award with Purchase Orders or Contracts Award with Contracts

Components of the Acquisition Cycle• Generate Acquisition Plan• Scope of Work• Source Selection Plan• Acquisition Package Preparation includes PR, SOW and IGCE• Purchase Request (submission and acceptance)• Justification and approval for Other than Full and Open Competition• Advertising the requirement• Legal review and approval (as required)• Issuance of the solicitation• Evaluation of proposals• Obtaining audits (as required)• Pre-award Surveys• Development of pre-negotiation plan• Completion of negotiations (Revised Proposal)• Contract preparation• Contract review and approval (as required)• Legal review and approval (as required)• Contract award• Notification to unsuccessful offerors/Debriefings• Contract Performance/Administrations• Contract Close Out

Purchase Description

• The supplies/services must be described in a manner that will encourage maximum competition and eliminate any restrictive features that limit acceptable quotes to one Contractor’s product.

ANTI-DEFICIENCY ACT

• Provides that no Government Officer or employee shall authorize or create any obligation, or make any expenditure, in excess of the funds available, or in advance of being appropriated.

GSA Schedules• GSA Schedules are contracts that are awarded

by GSA and are available for use by Government agencies.

• Each schedule has multiple awards with Contractors that meet the minimum requirements.

• Regulations require fair opportunity (three or more quotes) when placing orders against a GSA schedule.

• Award using best value or best price.

Although government contractors use many of the same business practices as commercial contractors, a number of characteristics clearly differentiate

the two.

Government Contracting Commercial Contracting

Federal policy established formal competition criteria for purchases or procurements

Company determines competition criteria

Congress appropriates all available funds

Many sources provide funds

Laws, directives, policies, and procedural regulations define procurement actions

Company determines procurement actions with legal boundaries

Government Contracting Commercial Contracting

Federal contracts contain extensive clauses, many of which are “take-it-or-leave-it”

Standard commercial code and those clauses agreed to by the parties regulate performance

The government may terminate a contract for failure to make progress

Commercial regulations (such as Uniform Commercial Code) ensure adequate performance

The government may terminate a contract for its convenience

Termination for convenience is not available to commercial contractors

Government Contracting Commercial Contracting

Federal contract must incorporate social and economic policies

Social pressures typically dictate company policies; however, some policies are required by law

The government may use social and economic incentives

Commercial contractors rarely use incentive contracts

Federal law prohibits gratuities Company policy determines gratuities

The government may invoke liquidated damages to contractors for noncompliance

Penalties are illegal in commercial contracts

TEN REASONS WHY PROCUREMENT ACTIONS

ARE DELAYED…10. Type of Procurement9. Requirement for Pre-Proposal Conference8. Requirement for a Pre-Proposal Site Visit7. Justification for Other Than Full and Open Competition

and/or Sole Source Challenge6. Complexity of Procurement5. Poor Scope of Work or Specifications4. Change to Requirement3. Protests2. Lack of adequate funding1. Incomplete Purchase Request Package!!!

Questions?

30

"United States procurement policy aspires to obtain quality supplies, services, and construction economically, efficiently, and in a timely manner. Federal procurement law, regulation, and policy seek to procure the best value for the taxpayer in a system that is transparent, maximizes competition, and ensures integrity. At the same time, our government utilizes its purchasing power as a means of promoting numerous social policies.”

31

“Government contracts further goals such as fostering small businesses, overcoming regional unemployment, assisting minority workers, ensuring fair treatment of employees, protecting the environment, and, where appropriate, providing preferences to domestic and other special sources of supply, such as the blind and severely handicapped. These policies, and the requirements that implement them, impose certain burdens upon the procurement process, most noticeably by adding complexity to our statutes, regulations, and policy guidance. “