Contracting Processes Part II, Above SAT Chapter 5.

Contracting ProcessesPart II, Above SAT

Chapter 5

Learn. Perform. Succeed.

Micro Simplified Commercial Systems

Purchase Acquisition Acquisition Development

PRICE ANALYSIS COST ANALYSIS

FFP FP/EPA FPAF FPIF/FPIS CPIF CPAF CPFF

HIGH RELIABILITY LOW RELIABILITY OF COST ESTIMATE OF COST ESTIMATE

RISK TO CONTRACTOR RISK TO GOVERNMENT

HIGH CONFIDENCE LOW CONFIDENCE OF OUTCOME OF OUTCOME

Contract Types - Spectrum


• 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.

Source Selection Procedures

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/15.htm






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.


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.

Price Negotiations




• 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

Oral Solicitations


• 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

Letter Contracts


Delivery Orders

Order for Supplies or

Commodities

Task Orders

Order for Services

Definite Quantity Contracts

Indefinite Quantity Contracts

Requirements Contract

• Task/Delivery Order terminology also used when procuring off of FSS or GWACsCORs designated at the “Order” level

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”

Indefinite Delivery Contracts


• 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

IDIQ Characteristics


• Similar to BPA Call• More complex products/services• Written against indefinite delivery

contracts• Executed on SF1449 / DD1155• Delivery orders (supplies)• Task orders (services)

Ordering


• 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

Supporting Documentation


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

Requirements Contract


• PIIN Log– Every purchase!

• Report every contract action through the proper reporting system

Contract Action Accountability


• 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)

Contract Forms


Other Considerations


• 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.

Theater Business Clearance (TBC)


• 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.

Theater Business Clearance Con’t


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


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.

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• 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)

Practical Exercises Part II

Contracting Processes Part II, Above SAT Chapter 5.

Documents

Transcript of Contracting Processes Part II, Above SAT Chapter 5.