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Essential Guide to Contingency Contracting Instruments and Administration

This guide explores the vital aspects of contingency contracting, focusing on key instruments used in procurement environments, including Warrant information, Justifications and Approvals (J&A), and Determinations and Findings (D&F). It details various contract types such as Purchase Orders and Blanket Purchase Agreements (BPA), outlining necessary clauses and internal control procedures for effective administration. Additionally, it emphasizes the importance of supporting documentation to ensure compliance and accountability in contingency operations.

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Essential Guide to Contingency Contracting Instruments and Administration

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  1. Contractual Instruments Contingency Contracting

  2. WARRANT Who will write the contract? Need J&A or D&F? What Type of Contract? What Clauses to Include? What’s in a BPA?

  3. Lesson Objectives • List, describe and properly apply, using automated resources, • procurement instruments available in a contingency environment • documents required to support contract instruments. • List, describe and prepare reports of procurement actions using automated resources. • Establish internal control procedures for the proper administration of the Contingency Contracting Office.

  4. Types of Instruments • Requirements below the SAT: • PIIN Assignment • Imprest Fund / Third Party Drafts • SF44 • GCPC (was IMPAC) • Purchase Order (PO) • Blanket Purchase Agreement (BPA)

  5. { N00062-99-C-0001 { Fiscal Year Serial Number Proc. Type Contracting Unit Identification PIIN Assignment Example?..

  6. Imprest Fund • Transaction limit $500 • Increases to $2,500 in a contingency • Simultaneous order placement and item delivery • No detailed specs or technical inspections

  7. Third Party Drafts • Same rules as Imprest Fund, except: • Transaction limit $2,500 • Increase only as authorized via Treasury restrictions • Usually check (not cash) transaction

  8. SF 44 • Multipurpose form • Transaction limit $2,500 • Up to SAT for “urgent and compelling” or “declared contingency” • Supplies must be immediately available • One delivery, one payment

  9. Government-wide Commercial Purchase Card (GCPC) • Also known as IMPAC • Transaction limit $2,500 (US) • Transaction limited to $25,000(OCONUS) • Up to SAT for GSA Federal Supply Schedules • Up to SAT as payment method in conjunction with other purchase methods

  10. GCPC Prohibited Uses • Incrementation • Cash advances • Rental/Lease of real estate • Telecommunications • Service specific prohibitions • For example: Navy restrictions

  11. Purchase Order • DD1155 or SF1449 • Self-contained • One-time contract • Individual transactions limited to SAT

  12. Blanket Purchase Agreement • Not a contract • Advance agreement regarding prices and delivery terms • Each BPA call has the same legal effect as a PO and must be funded • Decentralizes purchasing actions

  13. Types of Instruments • Requirements below the SAT: • PIIN Assignment • Imprest Fund / Third Party Drafts • SF 44 • GCPC • Purchase Order • Blanket Purchase Agreement (BPA)

  14. Types of Instruments • Requirements exceeding the SAT • Oral Solicitations • Letter contracts • Indefinite Delivery (ID) Contracts • Indefinite quantity (IDIQ) • Requirements contracts

  15. 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

  16. 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

  17. Indefinite Delivery Contracts • Three Types • Definite Quantity • Indefinite Quantity • Requirements • -Advantages • Pricing is Set • Firm-Fixed Price / Fixed Price with Economic Price Adjustment • Consolidation of Customers' Individual PRs

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

  19. Definite Quantity / Indefinite Quantity • 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

  20. Delivery Order • Similar to BPA Call • More complex products/services • Written against indefinite delivery contracts • Executed on SF1449 / DD1155

  21. Types of Instruments • Requirements exceeding the SAT • Oral Solicitations • Lettercontracts • Indefinite Delivery (ID) Contracts • Indefinite quantity (IDIQ) • Requirements contracts

  22. 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

  23. Accountability • PIIN Log • Every purchase! • DD 1057 • Summary of purchases $25K or less • DD 350 • Individual purchases over $25K • Only required for purchases over the SAT when in a declared contingency

  24. Summary • Application of waivers allows the CCO to complete contractual actions expeditiously • Several vehicles available -- select the one most appropriate to the situation • Support documentation critical to defend against auditors • Tools for accountability ensure proper care of public funds

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