Introduction to Contracting

1
Introduction to Contracting

• M. Brenda Hebert
• Senior Contract Manager, ORD
• AO Compliance Training
• February 26, 2004

2
Basic Elements of a Contract

• Legally enforceable
• Requires at least 2 parties

3
Prerequisites to a Legal Contract

• Competency- All parties must be legally capable
  of entering into a binding contract.
• Offer Acceptance- Legal offer must be made
  accepted by all parties
• Mutual consideration- Contract must be
  reciprocal, tangible results by contractor are
  exchanged for payment by the government.
• Lawful purpose- Contract must meet the mission of
  the agency, or authority/appropriation exists.

4
Who can act as a government agent???

• ONLY THOSE GOVERNMENT EMPLOYEES WHO
• Have been authorized to sign contracts by the
  assignment of a warrant.
• Have warrant authority for purchase.

5
CONTRACTS CAN ONLY BE ENTERED INTO AND
MODIFIED BY CONTRACTING OFFICERS.
6
Acquisition Cycle

• Planning phase
• Advance planning, determines needs, develops
  Statement of Work (SOW), purchase request.
• Contract formation phase
• Program official/project manager works with CO in
  contract solicitation, evaluation and awarding.
• Contract administration phase
• COTR monitors contract performance.

7
Acquisition Planning Phase

• Background Information
• Objective/Purpose
• Delivery Performance Schedule
• Independent Government Cost Estimate- IGCE
• Delivery Performance

8
Acquisition Planning Phase (contd)

• Requirements Documents - SOW
• Recommended Sources Competition
• Technical Evaluation Criteria
• Funding Document
• Miscellaneous

9
Statement of Work/Requirements

• A well written statement of work is
• clear, concise and easy to understand.
• Sets forth actual needs
• Contains appropriate QA provisions-
• how to determine requirements are
• met!

10
5 Simple Tips to Improving Your Contracts

• Do not use abstract, vague or ambiguous
  terms/words.
• Be consistent in words or phrases used.
• Use shall, must or will.
• Use active rather than passive voice.
• Be specific.

11
Two Golden Rules

• Brevity is the soul of wit.
• If it is NOT written down, it didnt happen.

12
Statement of Work Sections

• Background
• Scope Purpose
• Description of Tasks
• Place of Performance
• Period of Performance Milestones
• Travel
• Contractor Staff Training

13
Statement of Work Sections (contd)

• Contractor Provided Space
• Government Furnished Property
• Contractor Furnished Property
• Transition Plan
• Confidentiality Non-Disclosure
• Written Reports/Deliverables
• Labor Categories
• Project Resource Requirements

14
Contract Formation Phase

• Determine type of contract to be used
• Determine competition requirements
• Evaluation of Proposals - Technical vs Cost
• Award of Contract

15
The 7 Exceptions to Full and Open

• Sole Source
• National Security
• Unusual Compelling Urgency
• Authorized/required by stature
• In public interest
• National Emergency/Industrial Mobilization
• RD Capability or services of an expert for
  litigation or dispute

16
The final step

• .and if youre lucky, no bid protest.

17
Types of Contracts

• Fixed Price
• Firm Fixed Price
• Cost Reimbursement
• Cost Reimbursement
• Time Materials (Labor-Hour)

18
Types of Contracts (contd)

• Indefinite Delivery
• Definite Quantity
• Requirements
• Indefinite Quantity

19
Contract Administration Phase

• COTR monitors contract performance
• Final close out

20
Special Contracts

• Advisory and Assistance management and
  professional support services
• (For example consultants)
• Additional information available in VAAR 37.200
• Deputy Secretary approval levels
• Quarterly Reporting

21
Additional Contracting Information

• Web Sites
• GSA
• http//www.gsa.gov/
• GSA MOBIS (Management, Organizational and
  Business Improvement Services
• GSA FAST
• 8(a) Small Business Set-Aside Contracts for
  Information Technology Solutions
• OAMM e-library
• http//vaww1.va.gov/oamm/elibrary/index.htm

22
A Final Source of Information

• ORD Contracting Staff
• M. Brenda Hebert 202-254-0204
• Bridgett Ann Baer 202-254-0482
• Greg Johnson 202-254-0193