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Determining Responsible Prospective Contractors

Determining Responsible Prospective Contractors. Antwan G. Reid PIP Level II Presentation May 20, 2004. Introduction . Federal Government Procurement -Largest consumer in the world -Importance of finding responsible contractors

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Determining Responsible Prospective Contractors

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  1. Determining Responsible Prospective Contractors Antwan G. Reid PIP Level II Presentation May 20, 2004

  2. Introduction • Federal Government Procurement -Largest consumer in the world -Importance of finding responsible contractors -How does a contracting officer determine if a potential contractor is responsible? (pg.1)

  3. Purpose • Gain subject-matter expertise • Explore the idea of developing a guide for contracting officers. • Find answers to questions developed by interest in “Determining Responsible Prospective Contractors”. (pg. 1)

  4. Sources • Federal Acquisition Regulation (FAR) • NASA FAR Supplement • Books (Business, Financial, Ethics, etc.) • Popular Electronic Search Engines (pg.1)

  5. Background • Final Rule Published in the Federal Register by the FAR Council • Language Added to FAR 9.104-1(d) • General Accounting Office • Opposition to the Final Rule • Bush Administration Proposed Revocation • Previous Responsibility Rules Reinstated (pg.1)

  6. Components • The guide would analyze and break down the following: -Part I-General Standards (FAR 9.1) -Part II-Preaward Surveys (FAR 9.1) -Part III-Certificates of Competency (FAR 19.6) (pg.3)

  7. FAR 9.102 Applicability • Applies to proposed contracts located -In the U.S. or its outlying areas -Elsewhere (unless inconsistent with laws or customs where the contractor is located) • Does not apply to proposed contracts -Foreign, State, or Local Governments -Other U.S. Govt. Agencies -Agencies for the blind or other severely handicapped

  8. FAR 9.103 Policy • Contracts shall be awarded to responsible prospective contractors only. • No purchase or award shall be made unless the contracting officer makes a determination of responsibility. • Award of a contract to a supplier based on lowest evaluated price can be false economy. Note: Check for debarred or suspended offerors before evaluation and award.

  9. Part I-General Standards • FAR 9.104-1(a) Analysis - General Business Information - Financial Statements - Issues with Financial Statements - Financial Ratios/Equations • FAR 9.104-1(b) Analysis - Discussion (pg.4)

  10. Part I-General Standards (cont’d) • FAR 9.104-1(c) Analysis -Application of Standards (FAR) • Importance of NF1680 “Evaluation of Performance” -Big Asset in Determining Responsibility -Input from end users, financial, administrative (pg.8)

  11. Part I-General Standards (cont’d) • FAR 9.104-1(d) Analysis -Integrity -Business Ethics -POGO Investigation -Determining an Ethical Business • FAR 9.104-1(e) Analysis -Discussion (pg.9)

  12. Part I-General Standards (cont’d) • FAR 9.104-1(f) Analysis -Discussion • FAR 9.104-1(g) Analysis -Discussion (pg. 12)

  13. Part II-Preaward Surveys • Preaward Surveys can be accomplished by: -Data already obtained -Data from another Govt. agency -Data from a commercial source -On-site inspection of plant and facilities -Any combination of the above (pg.13)

  14. Part II-Preaward Surveys (cont’d) • In Obtaining Information, use the following: -List of Parties Excluded from Fed. Procurement and nonprocurement Programs -Records and experience data -Commercial sources of supplier information -Preaward surveys -Publications, subcontractors, customers, etc. (pg.14)

  15. Part II-Preaward Surveys (cont’d) • Disclosure of Preaward Information -Discussion • Contract Audit Responsibilities -Discussion • Reports -Discussion (pg.14)

  16. Part III-Certificates of Competency (COC) • Background • Purpose • Referral: C.O. must do the following: -Withhold contract award -Refer the matter to the cognizant SBA Govt. Contracting Area Office (pg.18)

  17. Part III-Certificates of Competency (COC) (cont’d) • Referral must include along with a notice -Solicitation -Final Offer submitted by the concern -Abstract of bids or C.O.’s Price Neg. Memo. -Preaward survey -Technical data package -Any other justification or documentation (pg.19)

  18. Part III-Certificates of Competency (COC) (cont’d) • Issuing/Denying a Certificate of Competency • COC Referrals vs COC’s Issued • Resolving Differences between the Agency and SBA • Awarding the Contract (pg.19)

  19. Summary and Conclusion • Summary • Conclusions -Contracting officers need to compare the benefits of an evaluation against the cost. -Issue of contracting officers placing more value on one general standard over another. -Contracting officers comfort level with respect to evaluating a prospective contractor. (pg. 23)

  20. Recommendations • Recommendations -Submission of the “Determining Responsible Prospective Contractors” guide to the appropriate reviewing committee. -The creator would remain responsible in order to continuously update the guide. -NASA Goddard should develop more subject- matter experts. (pg.23)

  21. Questions

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