Contracting 101 Kimberly Kilpatrick MSG Joey Barden MAJ Michael Spahr - PowerPoint PPT Presentation

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Contracting 101 Kimberly Kilpatrick MSG Joey Barden MAJ Michael Spahr
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Contracting 101 Kimberly Kilpatrick MSG Joey Barden MAJ Michael Spahr

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  1. Mission Installation Contracting Command Contracting 101 Kimberly Kilpatrick MSG Joey Barden MAJ Michael Spahr

  2. Chief, Operational Contracting Branch Mission and Installation Division Mission Contracting Office – Fort Bragg (910) 910-907-3911

  3. Mission Statement Provide operational contracting and acquisition management support to the U.S. Army Garrison, FORSCOM, USARC, and the military organizations stationed at Fort Bragg, NC

  4. Technical Team Resource Management Logistics Specialist Cost/Price Analyst The Acquisition Team War-Fighter/User Legal Counsel COR/QAE DCAA/ DCMA Small Business Administration Contracting Officer/Specialist

  5. Roles & Responsibilities Customer Customer/Contracting Contracting Acquisition Process – Steps that may be required (based on total price) Required Authorization Identify Requirement or Need Develop Requirements Package Funding / PR / IGCE COR Nomination Pkg Issue Sol & Rec proposals Sol approval Solicitation prep & rvw ASSP / Acq Plan approval Requirements Rvw / Dev & RvwAcq Strategy / Plan Award Rec / Eval Proposals & prep POM POM approval Nego & Rec/ EvalF&RP PNM approval Contract Closeout Acceptance / Payment Contract Administration

  6. Project Planning Process (Days)

  7. Federal Acquisition Regulation (FAR) • FAR • Principal set of rules, uniform policies, and procedures for acquisition by almost all Executive agencies • Defense Federal Acquisition Regulation (DFAR) • Procedures, Guidance, and Information (PGI) • Companion resource to the DFARs • Army Federal Acquisition Regulation (AFARS)

  8. FAR Structure • The FAR (and supplements) are comprised of 53 Parts • Each of the first 51 Parts deal with a specific aspect of contracting • Part 52 contains solicitation provisions and contract clauses • Part 53 contains forms FAR Web Site: http://farsite.hill.af.mil/

  9. FAR Structure (cont.) • Simplified Acquisition Procedures • FAR Part 13 • Sealed Bidding • FAR Part 14 • Contracting by Negotiations • FAR Part 15

  10. Government Purchase Card (GPC) • May be used to purchase authorized supplies, equipment, and non-personal services up to the micro-purchase thresholds • <$3,000 for Supplies • <$2,500 for Services • <$2,000 for Construction (If your requirement involves altering Real Property or disturbing dirt, you should contact your Contracting Office for a determination on whether or not it is classified as construction)

  11. GPC – Special Authorizations • Contracting Officers can authorize a GPC cardholder with appropriate training to utilize the GPC as a payment instrument for orders exceeding $3,000 • Federal Supply Schedule • General Service Administration (GSA) contracts • Blanket Purchase Agreement (BPA) • Orderers placed against Indefinite Delivery/Indefinite Quantity (IDIQ) • Army Computer Hardware Enterprise Software and Solutions (CHESS)

  12. GPC – Special Authorizations (cont.) • Contracting Officers may also authorize a GPC cardholder to make payments for commercial off-the-shelf (COTS) training up to $25,000. • Training must be funded prior to the event • Only individual authorized to reserve the training is the cardholder Specialized training and appointment are required prior to these types of purchases being authorized

  13. GPC – Split Purchases • Intentional dividing of a bona -fide need into smaller purchases to avoid going over the established spending threshold • “Appearance” is enough to draw attention to an account • Multiple purchases of similar or like items, from same merchant, within a short period of time, with a combined total exceeding the single purchase limit, and the total requirement was known at the time of the first purchase • Several cardholders under one billing official making purchases for similar or like items within a short period of time

  14. Competing a Requirement • Full and Open Competition Generally required • Evaluators must not have a Conflict of Interest, actual or apparent, with a potential offeror • Competition (including follow-ons) must be fair and unbiased (don’t fall in love with your incumbent!) • Evaluation and award must be in strict accordance with the solicitation (must play the cards we dealt) • Evaluation and award must be adequately documented

  15. Simplified Acquisition Procedures (SAP) -FAR Part 13 • Three Levels • Micro Purchase • Simplified Acquisition Threshold (SAT) • Purchase Order: Supplies or Services: Aggregate amount <$150K • Commercial Test Program - Purchase Order for Commercial Items: <$6.5M • Advantages • Faster turnaround • Saves money for Government/Contractor • Promotes Small Business Opportunities

  16. Request for Quote (RFQ) • SAP • Communicates requirement and solicits proposals via phone or internet • Must convey necessary information to enable contractors to prepare proposals properly • Ensure all vendors contacted are given same information • Used for non-complex requirements

  17. Sealed Bidding - FAR Part 14 • Invitation for Bids (IFBs) • Must describe requirement clearly, accurately, and completely • Award on basis of price and price related factor • Requirement is definitive, pricing is stable, competition is expected, and there is not a need to hold discussions

  18. Contracting by Negotiations - FAR Part 15 • Negotiated procurements • Communicates requirement and solicits proposals • Must contain necessary information to enable contractors to prepare proposals properly • Used for more complex requirements – may be a need to negotiate or hold discussions with potential offerors

  19. Solicitation Forms – FAR Part 53 • SF1449, Solicitation/Contract/ Order for Commercial Items • Used with FAR Part 12 and 13 • SF33, Solicitation, Offer and Award • Invitation for Bid (IFB) and Request for Proposal (RFP) • SF 1442, Solicitation, Offer and Award (Construction, Alteration, or Repair

  20. Requirements Package • Each document is an essential part of the acquisition • Establishes the basis upon which bids are made, proposals offered, negotiations conducted, and contracts awarded and administered • Developed by customer • Contract Specialist/Contracting Officer act as business advisors

  21. Justification and Approval (J&A) for Sole Source • When Required? • Whenever a prospective contract requirement is not fully competitive for various reasons • Who is responsible for completing? • Technical and requirements personnel • Contracting Officer is ultimately responsible for ensuring J&A is IAWAFARS 5153.9004 and 9005

  22. J&A (cont.) • Statutory Authorities for Exceptions to Full and Open Competition • Only one responsible source and no other supplies or services will satisfy agency requirements • Unusual and Compelling urgency • Industrial mobilization; engineering, developmental, or research capability; or expert services • International agreement • Authorized or required by statute • National security • Public Interest

  23. Brand Name or Equal • While the use of performance specifications is preferred to encourage offerors to propose innovative solutions, the use of brand name or equal purchase descriptions may be advantageous under certain circumstances • Used when the salient characteristicsare firm requirements

  24. Brand Name or Equal (cont.) • Purchase descriptions must include, in addition to the brand name, a general description of those salient physical, functional, or performance characteristics of the brand name item that an “equal” item must meet to be acceptable for award. • Offerors shall be given the opportunity to offer products equal to the brand name if those products (including modifications thereto) satisfy the minimum needs of the Government. Therefore, all salient characteristics of the ``brand name or equal'' product.

  25. Brand Name or Equal (cont.) • ALL characteristics of the ``brand name or equal'' product which are determined by the office initiating the purchase request to be essential to the Government's minimum needs shall be identified separately under the heading of ``Salient Characteristics'' and included in the purchase description contained in the solicitation so the offeror understands the information to be submitted with its bid when offering an ``equal'' product for evaluation.

  26. Returned Without Action • Incomplete packages • Contract Specialist contacts client via phone and email - Three business days • Contracting Officer contacts client’s supervisor via phone and email - Three business days • Branch Chief contacts personnel one level above the client’s supervisor or PR&C approval authority and the appropriate resource manager of PR&C via phone and email - Three business days

  27. Independent Government Cost Estimate (IGCE) • Government’s estimate of the resources and projected cost of resources a contractor will incur in performance of a contract • Direct costs: Labor, products, equipment, travel, and transportation • Indirect costs: Labor overhead, material overhead • General and administrative (G&A) expenses • Profit or fee

  28. Independent Government Estimate (IGE) • A Commercial Supply IGCE is less complex then a service contract and is considered a “Price Estimate” or Independent Government Estimate (IGE) • Developing IGCE/IGE thru Market Research • Industry meetings/conferences • Agency Specific IDIQs • GSA Price Lists • Published Price Lists • Internet Search • Catalogs, local newspapers, advertisements

  29. IGCE or IGE • Required for every procurement action > SAT • $150K for non-commercial items • Up to $6.5 for commercial items • Requiring activity responsible for developing • Used to establish a realistic price/cost for budget purposes • Documents are procurement sensitive and should be handled accordingly • Access is on a need to know basis within the Government

  30. IGCE or IGE (cont.) • NOT based on • Best guess • Particular contractor providing an estimate • Pricing should NOT be obtained directly by contacting vendors • Disclosure of advance procurement information is considered sensitive • Vendor might consider the contact a commitment by the government • Gives contractor an unfair advantage and could force us to eliminate them from the competition altogether

  31. Unauthorized Commitments • Non-binding agreement • Government representative who lacks the authority to enter into an agreement on behalf of the government - “Lack of authority to make the obligation” • Someone other than cardholder using the GPC • Individuals exceeding their appointed authority • When training is reserved by someone other than the cardholder (i.e. unit member, training manager), the cardholder is asked to pay for the training after the fact

  32. Operations NCO Business Operations Branch Mission Contracting Office – Fort Bragg (910) 432-7834

  33. Market Research • When required? • Pre-solicitation phase when estimated acquisition value exceeds the SAT ($150K) • Under SAT IF adequate information is not available • Anytime Justification and Approval (J&A) for Sole Source is required • On-going and continuous process of Collecting, Organizing, Analyzing, and Presenting data from industry sources to develop best acquisition strategy

  34. Market Research (cont.) • Through Market Research you obtain • Data on market characteristics and alternate solutions • Reliability and quality of product or service • Understanding current business practices and market trends • Determine availability of commercial sources • Feasibility of requirements in terms of complexity, delivery, and timeliness • Pricing and warranty provisions • Required certifications • Other technical information

  35. Market Research (cont.) • Must answer • Can the Government's needs be met by a product or service available in the commercial marketplace? • Are there qualified small businesses capable of meeting the product or service required by the Government?

  36. Market Research (cont.) • Customer Functions • Other installations with similar requirements • Contact your counterparts at other installations for information, samples, and feed back • Explore possible solutions through trade shows and specialized journals • Obtain “informational quotes” • Insert statement regarding forms of market research and results of findings with submission of requirements package

  37. Market Research (cont.) • How much documentation • The extent of market research will vary, depending on • Urgency • Estimated dollar value • Complexity • Past experience • Obtain information specific to the item or service being acquired

  38. Conducting Market Research • Become familiar with DoD Instruction 5500.7-R, Joint Ethics Regulations (http://www.dod.mil/dodgc/defense_ethics/ethics_regulation/) • DO NOT favor, nor create the appearance of favoritism of, one source over others • DO NOT release information to sources, either before or during the contracting process, which would give a competitive advantage. This includes, but is not limited to, details of the requirement, government estimates, and the number of competing firms.

  39. Conducting Market Research (cont.) • DO NOT ask a prospective contractor to help prepare the specification or SOW without a contract to do so • Using a vendor’s plan or proposal as the basis for establishing a government requirement is generally prohibited • DO NOT permit vendor to prepare government estimates • DO NOT use prospective contractor’s price estimates as the sole determining basis of the Government estimate • Utilize Government sources for estimate development

  40. Conducting Market Research (cont.) • Obtaining informational quotes or obtaining general information • Clarify that the Government’s intent is only to seek price and availability information, not to make a purchase

  41. Purchase Request (PR) • Official request for action initiated by the requiring activity • PR Web/General Fund Enterprise Business System (GFEBS) or DA Form 3953 • Authorizes contracting process to begin • Coordinated and signed by a responsible official of the initiating office • Provides funding and financial officer certification as to the availability of funds

  42. Service Contract Approval Form (SCAF) • Why required? • Secretary of the Army Memo,10 July 2009 • 10 USC Sections 2463, 2330a, 2383 & 2434 • Memo, President of the United States, 4 March 2009 • Memo, Deputy Secretary of Defense, 28 May 2009 http://www.asamra.army.mil/insourcing/

  43. SCAF (cont.) • Secretary of the Army Memo, 10 July 2009 • “Senior Commanders and HQDA Principals must ensure service contract requirements do not include inherently governmental functions and that use of personal services contracts is limited to circumstances where specific authority exists” • “The Accountable General Officer or Senior Executive Service official for the requiring activity will certify compliance.” “Accountable officials may delegate certification responsibilities for service contract requirements valued at $100,000 or less IAW Command policy”

  44. Description of the Requirement • Describing the work to be accomplished • Statement of Work (SOW) • Performance Work Statement (PWS) • Statement of Objectives (SOO) • Heart of the Requirements package • Each Requirement is Unique • Expresses the needs of the organization • Specifications, drawings, maps

  45. Describing the Work • Specification for supplies or services • Function to be performed, • Performance Required, or • Essential characteristics or design requirements • Preferences • Performance oriented specifications over design-oriented specs • Commercial items requires the use performance specs

  46. Describing the Work (cont.) • Performance specifications • States the government’s needs • Contractor is expected to select a method to meet that need • Must achieve an objective or standard of performance

  47. Describing the Work (cont.) • Design specifications • Describes in precise detail the materials to be used and the manner in which the work is to be performed • Contractor has no discretion to deviate from the spec • The government gives an implied warranty that the specification is suitable for its intended purpose