prime contractor’s responsibilities regarding prime contractor’s responsibilities regarding...

Download Prime Contractor’s Responsibilities Regarding   Prime Contractor’s Responsibilities Regarding Subcontractors Presented By: Rich Wilkinson, Director ... Subcontract Type Selection

Post on 13-Mar-2018

212 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • ThePrimeContractorsResponsibilitiesRegardingSubcontractors

    PresentedBy:RichWilkinson,DirectorWatkinsMeeganLLC

    RebeccaKehoe,ManagerWatkinsMeeganLLC

  • AreasofResponsibility

    AccountingSystemAdequacy Price/CostAnalysis TechnicalAnalysis Reps&Certs Reporting Audit Closeout

    2Copyright2013WatkinsMeeganLLC

  • TheBeginning

  • AssemblingaWinningTeam

    4Copyright2013WatkinsMeeganLLC

    SourceselectionconsiderationsCapabilitiesandqualificationsSocioeconomicsubcontractingplancompliancePastPerformanceBusinessSystemStatus

    SourceSelectionResponsibilitiesAlloftheabove,plusDocumentDocumentDocument

    CheckSuspension/Debarmentstatus

  • ClearallSubsforOCI

    OCIisthenumberonebasisforsuccessfulprotests KnowtheTypesofOCI UnequalAccesstoNonPublicInformation haveanyofyoursubs

    everhadaccesstocompetitordataorsourceselectioninformation? BiasedGroundRules Haveanyofyoursubseverparticipatedin

    writingtheSOWforthisprocurement? ImpairedObjectivity Doesanypartofyoursubsorganizationdo

    ANYworkthatcouldbeinterpretedas EvaluatinganypartoftheworkunderthesolicitationSOW? AdvisingtheGovernmentonanyissuesofsignificancethatmightariseduringperformanceofthecontract?

    MitigateorEliminateALLOCIpotentialamongALLsubs RequireNonConflictcertificationspriortosubstantive

    discussions

    5

  • WritingtheProposal

    NormallytheEXCLUSIVEresponsibilityofthePrime UsingaSubtoassistintheTechnicalProposalmaygivethemrightstheTeamingagreementdidnot Doesnotincludecostvolume Doesnotincludedocumentationofbusiness

    considerations SubscoststoparticipateinauthoringtheTechnicalProposalnotnormallyallowableasB&P

    CostcanbeallowableasB&PforthePrimeiftheSubisPAIDtowrite

  • SubcontractTypeSelection

    DoesNOThavetofollowthePrimecontracttypeandoftenSHOULDNOT

    ShouldbedrivenbytheessentialnatureoftheWork

    Otherconsiderations Subsbusinesssystemstatus Subsindirectratestructure Subsauditstatus(rates,complianceandhistory)

    Takesubcontractcloseoutintoconsideration

  • PricingtheContract

    Whowillpricethesubcontract(s) Howwilltheybepriced? ConsidercompetitionBEFOREselection Ifnegotiated,howwillratesbeverified? Willthesubcontractorpermitaccesstobooks?

  • TimingConsiderations

    Sourceselection,subcontracttypeandpricingdecisionsareallEASIERBEFOREAWARD Whenthoroughlydocumentedintheproposal,awardofacompetitivecontractcan constituteconsenttoawardoftheproposedsubcontracts

    Disputeswithsubsontypeandpricingaremuchmoredifficulttoresolvepostaward

    9Copyright2013WatkinsMeeganLLC

  • Price/CostAnalysis

  • Price/CostAnalysisTHEFAR

    15.401 Definitions Asusedinthissubpart Pricemeanscostplusanyfeeorprofitapplicabletothecontracttype.

    Subcontract(exceptasusedin15.4072)alsoincludesatransferofcommercialitemsbetweendivisions,subsidiaries,oraffiliatesofacontractororasubcontractor(10 U.S.C. 2306a(h)(2) and41 U.S.C. 254b(h)(2)).

    11Copyright2013WatkinsMeeganLLC

  • Cost/PriceAnalysisTHEFAR

    15.402 Pricingpolicy Contractingofficers(readPrimeContractors)must

    (a)Purchasesuppliesandservicesfromresponsiblesourcesatfairandreasonableprices.Inestablishingthereasonablenessoftheofferedprices,thecontractingofficermustnotobtainmoreinformationthanisnecessary.

    12Copyright2013WatkinsMeeganLLC

  • Cost/PriceAnalysisTHEFAR

    Thecontractingofficer(readPrimeContractor)mustgenerallyusethefollowingorderofpreferenceindeterminingthetypeofinformationrequired: (1)Noadditionalinformationfromtheofferor,ifthepriceisbasedonadequatepricecompetition,exceptasprovidedby15.4033(b).

    (2)Informationotherthancostorpricingdata:Catalogprices;GSASchedulepricing,etc.

    (3)Costorpricingdata

    13Copyright2013WatkinsMeeganLLC

  • Cost/PriceAnalysisTHEFAR

    15.4034 Requiringcostorpricingdata(10 U.S.C. 2306aand41 U.S.C. 254b) (a)(1)Thecontractingofficer(readPrimeContractor)mustobtaincostorpricingdataonlyifthecontractingofficer(readPrimeContractor)concludesthatnoneoftheexceptionsapplies.

    Thethresholdforobtainingcostorpricingdatais$700,000.

    14Copyright2013WatkinsMeeganLLC

  • Cost/PricingAnalysisTHEFAR

    15.4034 Requiringcostorpricingdata(10 U.S.C. 2306aand41 U.S.C. 254b). (b)Whencostorpricingdataarerequired,thecontractingofficershallrequirethecontractororprospectivecontractortosubmittothecontractingofficer(andtohaveanysubcontractororprospectivesubcontractorsubmittotheprimecontractororappropriatesubcontractortier)thefollowinginsupportofanyproposal: (1)Thecostorpricingdata,AND....

    15Copyright2013WatkinsMeeganLLC

  • Cost/PriceAnalysisFAR

    15.4034 Requiringcostorpricingdata(10 U.S.C. 2306aand41 U.S.C. 254b). (b)(2)Acertificateofcurrentcostorpricingdata,intheformatspecifiedin15.4062,certifyingthattothebestofitsknowledgeandbelief,thecostorpricingdatawereaccurate,complete,andcurrentasofthedateofagreementonpriceor,ifapplicable,anearlierdateagreeduponbetweenthepartiesthatisascloseaspracticabletothedateofagreementonprice.

    16Copyright2013WatkinsMeeganLLC

  • Cost/PriceAnalysisPRIMECONTRACTOR

    Price/CostAnalysisMemototheSubcontractFile TypeofAnalysis:Competition/OtherSource/CostorPriceData

    RecapofAnalysis PricesreceivedinCompetition Pricesfromothersourceswithreferences Cost/Pricedatawithanalysisastoreasonableness

    ConclusionastoReasonableness

    17Copyright2013WatkinsMeeganLLC

  • TechnicalAnalysis

  • TechnicalAnalysisPRIMECONTRACTOR

    TechnicalAnalysisMemototheSubcontractFile Subcontractorhaspersonnelqualifiedtoperform Subcontractorhasadequate/successfulpastperformanceinthefieldofwork

    Subcontractorhasadequatefacilities/finances/businesssystemstoperformthescopeofwork

    19Copyright2013WatkinsMeeganLLC

  • Reps&Certs

  • Reps&CertsTHEFAR

    4.1201 Policy (a)Prospectivecontractorsshallcompleteelectronicannualrepresentationsandcertificationsathttp://orca.bpn.gov inconjunctionwithrequiredregistrationintheCentralContractorRegistration(CCR)database(seeFAR 4.1102).

    ThisisnowSAM.GOVwhereallFederalContractorinformationfromoldCCRandORCAarenowentered.

    21Copyright2013WatkinsMeeganLLC

  • Reps&CertsTHEFAR

    4.1201 Policy (b)(1)ProspectivecontractorsshallupdatetherepresentationsandcertificationssubmittedtoORCAasnecessary,butatleastannually,toensuretheyarekeptcurrent,accurate,andcomplete.Therepresentationsandcertificationsareeffectiveuntilone yearfromdateofsubmissionorupdatetoORCA.

    22Copyright2013WatkinsMeeganLLC

  • Reps&CertsTHEFAR

    4.1201 Policy (2)Whenanyoftheconditionsinparagraph(b)oftheclauseat52.21928,PostAwardSmallBusinessProgramRerepresentation,apply,contractorsthatrepresentedtheyweresmallbusinessespriortoawardofacontractmustupdatetherepresentationsandcertificationsinORCAasdirectedbytheclause.

    23Copyright2013WatkinsMeeganLLC

  • Reps&CertsTHEFAR

    52.21928 PostAwardSmallBusinessProgramRerepresentation (1)Within30daysafterexecutionofanovationagreement

    (2)Within30daysafteramergeroracquisitionthatdoesnotrequireanovation

    (3)Forlongtermcontracts (i)Within60to120dayspriortotheendofthefifthyearofthecontract;and

    (ii)Within60to120dayspriortothedatespecifiedinthecontractforexercisinganyoptionthereafter.

    24Copyright2013WatkinsMeeganLLC

  • Reps&CertsPRIMECONTRACTOR

    IntheSubcontractFile: ObtainsignedprintoutofSubcontractorsORCAfromSAM.GOVdatedPRIORtoawardofSubcontract,butwithin30daysofawardofSubcontract.

    FORSMALLBUSINESSSUBCONTRACTORS:PleasereadandensurethatSubcontractorsORCAcontainstheappropriateCertificationsforSizeandStatusbeforeincludingSubcontractorinyourSmallBusinessSubcontractingPlan.

    25Copyright2013WatkinsMeeganLLC

  • AftertheWin

  • ConsenttoSubcontract

    FARSubpart44.2ConsenttoSubcontracts 44.201(a)Ifthecontractorhasanapprovedpurchasingsystem,consent

    isrequired(only)forsubcontractsspecificallyidentifiedbythecontractingofficerinthesubcontractsclauseofthecontract.(Commentadded)

    44.201(b)Absentanapprovedpurchasingsystem,consentisrequiredfor Costreimbursement,timeandmaterials,laborhour,orlettercontracts,

    andunpricedmodificationsordeliveryordersunderfixedpricecontractsthatexceedthesimplifiedacquisitionthreshold(currently$150k),and

    Fixedpricesubcontractsthatexceedthegreaterof$150kor5%ofthecontract

    FailuretoobtainconsentcanresultinALLsubcostsbeingquestionedonaudit

  • TheAward(s)

    ShouldFOLLOWConsenttoSubcontractWell,thatoneseemedobvious,didntit?

    MustaddressanyOCImitigationrequired Mustincludeallmandatoryclauseflowdowns Shouldincludeotherflowdownsasnecessarytoprotectthe

    Prime SinceSequestration,terminationclauseshavebeenthe#1boneof

    contentioninsubcontractnegotiations ConsidernegotiatingthetermsandconditionsPRIORTOsubmission

    oftheproposal ConsiderEXECUTINGthesubcontractpriortosubmissionofthe

    proposalwithaclausethatmakesiteffectiveonlyuponawin CheckSuspension/Debarmentstatusthedayofaward

  • SubcontractorReporting

    FAR52.20410,ReportingExecutiveCompensationandFirstTierSubcontractAwards Requiredinallsolicitationsandcontractsof$25,000ormore Exceptions:Classifiedsolicitationsandcontracts,contractswithindividuals.

    RequirementsforSubcontracts: Timing bytheendofthemonthfollowingthemonthofaward Threshold $25,000ormore

    RequirementsforSubcontractorExecComp Timing endofthemonthfollowingthemonthofsubcontractaward,

    annuallythereafter FivemosthighlycompensatedexecutivesfortheSubspriorfiscalyear Reportingthreshold(s)

    80%ormoreofrevenuesfromFederalcontracts,and $25MormoreinFederalcontractrevenues,and Nootherpublicaccesstodata

  • SubcontractorReporting

    PertheSmallBusinessJobsAc

Recommended

View more >