Contracting Processes Part II, Above SAT

1. Contracting ProcessesPart II, Above SAT Chapter 5

2. HIGH RELIABILITY LOW RELIABILITY OF COST ESTIMATE OF COST ESTIMATE HIGH CONFIDENCE LOW CONFIDENCE OF OUTCOME OF OUTCOME PRICE ANALYSIS COST ANALYSIS FFP FP/EPA FPAF FPIF/FPIS CPIF CPAF CPFF RISK TO CONTRACTOR RISK TO GOVERNMENT Micro Simplified Commercial Systems Purchase Acquisition Acquisition Development Contract Types - Spectrum

3. Source Selection Procedures • Objective: to select the proposal that represents the best value to the Government (FAR 15.302) • Broad discretion allowed in fashioning evaluation procedures for competitive contract actions using SAP apply (FAR 13.106) • Source Selection Plan • shall be prepared for each source selection and approved by the SSA for all contract actions over $1M that utilize FAR 15.3 source selection procedures. • A source selection plan is not required for commercial actions <$11M using FAR 13 simplified acquisition • Best Value. Best Value can be obtained by using any one or a combination of source selection approaches. The evaluation factors and their relative importance (when not using SAP) must be clearly stated in the solicitation and otherwise comply with the requirements of FAR 15.101-1. The perceived benefits of a higher priced proposal must be demonstrated to merit the additional cost.

4. Source Selection Process • Evaluation Factors for Award • Proposal Evaluation / Discussions • Source Selection Decision and Documentation • Responsibilities of SSA (Formal Source Selection) • Establish/Appoint Source Selection Evaluation Board (SSEB). • Approve Strategy/Acquisition Plan (AP) before solicitation release. • Approve Source Selection Plan (SSP). • Approve RFP prior to release. • Ensure that conflicts of interest, or the appearance thereof, are avoided. • Ensure that premature or unauthorized disclosure of source selection information is avoided. • Ensure evaluation of proposals is based solely on factors/subfactors in the RFP. • Review SSEB evaluation results. • Approve Competitive Range Determination. • Perform an integrated assessment of the evaluation results and select the source whose proposal represents the Best Value to the Government.

5. Price Negotiations In awarding negotiated contracts, contracting officers should always engage in aggressive negotiations based on pre-negotiation objectives. FAR 15.405. All negotiation results must be documented in a price negotiation memorandum. FAR 15.406-3.

6. Oral Solicitations • FAR 15.203(f) for use of oral solicitations • FAR 6.302-2 for other than full and open competition due to urgency • FAR 5.202(a)(2) or (12) for waiving synopsis • Requires file documentation for oral solicitations, J&A for OTF&OC, and D&F for synopsis

7. Letter Contracts • FAR 16.603 • Gets contractor on the job quickly • HCA approval required prior to award • Must contain NTE amount • Definitize before completing 40%, expending 50% of NTE, or 180 days

8. Indefinite Delivery Contracts • Task and Delivery Characteristics: • Do not contain all UCF/Commercial parts and terms and conditions, normally just those applicable to the Order such as: • CLINs • SOW/PWS • Delivery Instructions • Unique requirements • Typically awarded using the DD Form 1155 or SF1449 Indefinite-Delivery Contracts Slang “IDIQ” • Task/Delivery Order terminology also used when procuring off of FSS or GWACs • CORs designated at the “Order” level

9. IDIQ Characteristics • Types of indefinite delivery contract • Funded minimum up front • Individual delivery orders funded • Multiple awards per commodity/service • Compete among holders or rotate • No guarantee after minimum

10. Ordering • Similar to BPA Call • More complex products/services • Written against indefinite delivery contracts • Executed on SF1449 / DD1155 • Delivery orders (supplies) • Task orders (services)

11. Supporting Documentation • Justifications and Approvals • other than full and open competition, out of scope mods • Determinations and Findings • oral solicitations, advance payments, letter contracts, waiving synopsis, ratifications • Equipment Lease or Purchase

12. Requirements Contract • Type of indefinite delivery contract • No money obligated up front • Individual delivery orders funded • Only one source per commodity/service • Contractor must perform

13. Contract Action Accountability • PIIN Log • Every purchase! • Report every contract action through the proper reporting system

14. Contract Forms • SF 44, Purchase Order-Invoice-Voucher • DD 1155, Order for Supplies or Services • SF 1449, Solicitation/Contract/Order for Commercial Items • SF 30, Amendment of Solicitation/Modification of Contract • SF 18, Request for Quotation • SF 26, Award/Contract • SF 33, Solicitation, Offer and Award • SF 1442, Solicitation, Offer, and Award (Construction, Alteration, or Repair)

15. Other Considerations

16. Theater Business Clearance (TBC) • The process which provides Joint Force Commanders and the CENTCOM Contracting Commander (C3) visibility over all contracts and contractors performing work in their area of responsibility. • TBC facilitates a common operating picture of contracted support in a Joint Operations Area, ensures that solicitations and contracts contain provisions to meet Commanders’ requirements, and assures that life support requirements are addressed and coordinated prior to contractor personnel arrival in theater.

17. Theater Business Clearance Con’t • TBC procedures apply to all contracts equal to or greater than $1 million and are: • Contracts awarded to non-Host Nation vendors that require contractor personnel to perform in Theater.   • Contracts that require delivery of material in Theater under Freight On Board (FOB) Destination delivery terms using commercial transportation outside the Defense Transportation System; • Contracts, whether currently being performed or newly awarded that authorize contractor personnel, including subcontractors at all tiers, to carry weapons in Theater, regardless of contract end date.

18. DoD Wide Area Workflow (WAWF) DoD Wide Area Workflow – Receipt & Acceptance (WAWF-RA) • DoD developed system for Government vendors and authorized DoD users to generate, capture, and process receipt/payment documents • Interactive web-based application • Eliminates paper from contracting life cycle • Electronic receipt/acceptance process • Electronic invoice/payments process • Provides complete transaction visibility • Reduces interest penalties

19. Vendor Electronic Invoicing Mandate • Contractors must submit invoices electronically. • Mandated by Public Law: Section 1008 of National Defense Authorization Act of FY 2001 • DFAS updated to include requirement for electronic invoicing, effective for contracts issued after Feb 28, 2003. • DFARS Clause 252.232-7003 (March 08 Update) • Requires electronic invoicing. • Requires electronic supporting documentation. • Identifies three acceptable electronic forms for transmission of invoices (WInS, WAWF and EDI). • Identifies situations where EC is not required. 91229122

20. Practical Exercises Part II • Contractual Instruments Above the SAT • Each team must turn in completed forms • This is a graded exercise – see exercises for point values (assign PIIN and Point POCs)

21. Questions or comments?