METHODS OF CONTRACTING

Transcription

1 METHODS OF CONTRACTING Your CON 120 pre-class assignment is to read and be prepared to use the following material in classroom exercises and case studies. Please note that this chart includes only the three major methods of acquisition contracting. For information purposes, it is noted that this chart is missing the Broad Agency Announcement and Small Business Innovative Research methods which are also acquisition contracting. "Other Transactions for Prototypes" is another method of acquisition contracting, not subject to the FAR. Assistance methods include the BAA, Grants, Cooperative Agreements and Technology Investment Agreements (TIA's). (TIA's are also known as "Other Transactions for Research.") Methods of property transfer include Loan Agreements and Bailments. Methods of Technology Transfer include Cooperative Research and Development Agreements (CRADAs), Partnership Intermediary Agreements (PIA's), "Work for Others", and other specific statutory authorities. Commercial Contracts FAR Part 12 Simplified Acquisition FAR Part 13 1 Sealed Bidding FAR Part 14 Negotiation FAR Part 15 Appropriate for Use Make maximum use. Other procedures may be used if further competition is judged to be in the best interest of the Government in terms of quality, responsiveness or cost. Commercial items Items for recovery from biological/terrorist attack Non-commercial performance based services FAR & Items at or below Simplified Acquisition Threshold ($100,000) Items for recovery from biological/terrorist attack over $250,000 in US or $1 million outside US Commercial items valued at up to $5.5 million FAR (g) Time permits Award based solely on price Not necessary to conduct discussions Expectation of more than one bid FAR 6.401(a) Sealed bids are not appropriate Discussions are likely to occur FAR 6.401(b) 1 Simplified Acquisition Procedures are sub-divided into five different methods. These are the (1) Commercial Purchase Card ; (2) Purchase Orders ; (3) Blanket Purchase Agreements ; (4) Imprest funds and third party drafts ; and (5) SF44 Purchase Order/Invoice/Voucher. For purposes of this chart, the method described is "purchase orders" at

2 Solicitation 2 Types Request for Quotation Request for Quotation (RFQ) Invitation for Bid (IFB) Request for Quotation (RFQ) Request for Offer 3 Invitation for Bid (IFB) Request for Proposal (RFP) 05-2(c) Request for Proposal (RFP) FAR FAR (a)(2) FAR FAR Form 4 SF 1449 FAR (a) SF 1449 FAR (a) SF 44 SF1449 OF 347 SF 1165 FAR SF 33 SF 1447 SF 26 FAR (a)(1) & (d) Letter RFP's OF 307 Of 308 SF 33 SF 26 FAR (a) & (c) 2 Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called invitations for bids. Solicitations under negotiated procedures are called requests for proposals. Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer. (FAR 2.101) Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Reponses to invitations for bids (sealed bidding) are offers called bids or sealed bids ; responses to requests for proposals (negotiation) are offers called proposals ; however, responses to requests for quotations (simplified acquisition) are quotations, not offers. For unsolicited proposals, see FAR subpart (FAR 2.101). 3 A purchase order, when issued by the Government, means an offer by the Government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures. (FAR 2.101) A quotation is not an offer and, consequently, cannot be accepted by the Government to form a binding contract. Therefore, issuance by the Government of an order in response to a supplier's quotation does not establish a contract...a contract is established when the supplier accepts the offer. (FAR (a)) 4 Special forms are used for Construction (FAR the SF 1442) and for Architect - Engineer ( the SF 252)

3 Authorized Types of Contracts Time and Materials or Labor Hour Time & Materials Fixed Price EPA Time & Materials Fixed Price EPA Any type or combination of types except for cost plus a percentage of cost 04(d) IDIQ's okay with FFP orders FAR FAR (a) FAR & (a) FAR (b) Contract Format Shall include information listed at (a)-(p) Special commercial format Shall include information at (b) Uniform Contract Format Uniform Contract Format 06-1(a)-(p) FAR FAR (b) FAR to 5 FAR to 5 Synopsis Required Open Market items procured against schedule over $2,500. Oral & FACnet exempt 02(f) FAR 5.101(a); See FAR 5.101(a) & ; see FAR 5.101(a); See FAR 5.101(a); See Solicitation Response Time Use appropriate time from part 13, 14 or 15 for open Market items procured against schedule. 02(f) May be fewer than 30 days Also, no need for prior synopsis when using combined synopsis/solicitation procedures at FAR Reasonable opportunity FAR 5.203(b) 30 days 40 days (NAFTA) FAR 5.203(d) & (h) 30 days (all) 45 days (R&D) 40 days (NAFTA) FAR 5.203(c)(e)&(h) FAR 5.203(a) & (c)

4 Evaluation for Award Price For services level-of-effort and mix of labor must be considered Technical Price Past Performance Use factors prescribed in 14 and/or 15 as appropriate. Price & price related factors only Price/Cost (mandated) Quality (mandated) Past Performance (mandated) Small Business Participation (mandated) when unrestricted Additional as determined appropriate 05-2(d) FAR FAR (b) FAR (c) & Formal Source Selection Plan required for high-dollar value items prescribed by agency procedures FAR

5 Cost/Price Analysis GSA obtained competition when placing schedules, therefore price is considered "fair and reasonable" (for items and services under $100,000) For orders over $100,000 need to compete amongst schedule holders to obtain best price Don't need to use schedules if they do not provide the best price 04(d) Use the standards from the applicable part utilized (FAR , or 15.4). Additionally, apply the customary commercial pricing when appropriate. FAR (1) Competition (2) Market Research (3) Comparison with prior reasonable prices (4) Catalog prices (5) Comparison with similar items (6) Contracting Officer's personal knowledge of items (7) Comparison to Government Cost Estimate (8) Other reasonable basis FAR (a) Lowest priced bid May use price analysis techniques at FAR (b) as guidelines. FAR (1) Price Analysis per (b) (seven methods listed) (2) Cost Analysis per (c) (approximately 13 methods listed) (3) Cost Realism Analysis per (d) (4) Technical evaluation per (e) (5) Profit analyzed using and Weighted Guidelines Method for cost analysis FAR Special Cost/Price Issues Cost & Pricing Data not applicable as orders are placed against already awarded contracts FAR CAS exempt Exempt from Cost & Pricing Data except for modifications over $100,000 FAR & (c)(3) Cost & Pricing Data shall not be obtained FAR (a) Cost & Pricing Data not applicable as sealed bids are awarded using competition or other price reasonableness FAR (c)(1) Cost & Pricing Data applicable as described in Field Pricing & Audit Assistance should be used FAR & (a) & (c) Negotiations/ discussions For open market items procured against schedule follow appropriate procedures from FAR 13, 14 or 15 02(f) May or may not hold discussions depending on whether using FAR 13, 14 or 15 procedures Hold discussions if following FAR 15 Do not hold discussion if following FAR 14 FAR (b) Do not hold discussions FAR (d) May hold discussions if required FAR (a) - (e); &

6 Commercial Contracts FAR Part 12 Simplified Acquisition FAR Part 13 1 Sealed Bidding FAR Part 14 Negotiation FAR Part 15 Debriefings "brief explanation" (for services) 05-2(d) Follow appropriate FAR 13, 14 or 15 procedures If requested "brief explanation" FAR (d) Only when award is made to other than low bidder FAR (a) When requested. If preaward follow FAR ; if postaward follow FAR FAR & Post Award Notification & Award Synopsis Timely notification after award (for services) Follow appropriate FAR 13, 14 or 15 procedures Notification is only if requested Award synopsis when applicable Notification of unsuccessful bid after award Award synopsis when applicable Notification is formal (follow FAR ) Award synopsis when applicable 05-2(d) FAR (c) & FAR FAR ; FAR & FAR ; FAR &