Procurement Forum Training Presented by Code 210.H

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Procurement Forum Training Presented byCode
210.H

• Type of Procurement Action (TPA)
• Contract Types

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Type of Procurement Action

• Type of Procurement Actions also known as TPAs.
  The purpose of the TPAs is to provide guidance in
  creating milestones for procurements.
• For the contract milestone spreadsheet go to 210
  Procurement Operations Home Page,
  (http//code210.gsfc.nasa.gov/), click on
  Procurement Policy, TPA will be the last item
  under Additional Links.

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Contract Milestones
Start of Proc Clock
Title/Description Requisition Date Complete Requisition Package Synopsis - Presolicitation Notice Published Draft Solicitation Released Final Solicitation Released Offers Received Evaluation Complete Competitive Range Determined Discussions Complete Final Proposal Revisions Received Source Selection Decision Negotiations Complete Award Total
Comp - gt100K - 10M 0 14 7 N/A 22 30 30 15 15 7 5 N/A 10 155
Non-Comp - gt100K - 10M 0 14 14 N/A 60 30 30 N/A N/A N/A N/A 30 30 208
Competitive - gt10M - 50M 0 21 7 30 45 45 40 20 20 10 15 N/A 15 268
Non-Comp - gt10M - 50M 0 21 14 N/A 60 45 30 N/A N/A N/A N/A 45 30 245
Competitive - gt50M 0 30 7 30 50 60 40 20 20 10 15 N/A 15 297
Non-Comp - gt50M 0 30 14 N/A 60 60 45 N/A N/A N/A N/A 45 30 284
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TYPES OF CONTRACTS (FAR PART 16)

• Firm-Fixed-Price Contract (FAR Subpart 16.2)
• Cost Reimbursement Contract (FAR Subpart 16.3)
• Other Contract Types (FAR Subpart 16.5 16.6)

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• FIRM-FIXED-PRICE CONTRACTS

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Firm-Fixed-Price Contracts (FAR 16.202)

• Firm-Fixed-Price (FFP) contracts provide for a
  price that is not subject to any adjustment on
  the basis of the contractors cost experience in
  performing the contract.
• Use FFP when work can be clearly defined.

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Firm-Fixed-Price Contracts (FAR 16.202)

• FFP contract type places upon the contractor
  maximum risk and full responsibility for all
  costs and resulting profit or loss.
• The contractor is required to deliver the product
  specified and there is a maximum limit on the
  amount of money the government must pay.

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Firm-Fixed-Price Contracts (FAR 16.202)

• A FFP contract is suitable when the contracting
  officer can establish fair and reasonable prices
  through
• Adequate price competition
• Reasonable price comparisons with prior purchases
  of the same or similar supplies or services
• Available cost or pricing information permits
  realistic estimates of the probable costs of
  performance

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Firm-Fixed-Price Contracts (FAR 16.202)

• Performance uncertainties can be identified and
  reasonable estimates provided that the contractor
  is willing to accept a FFP representing
  assumption of the risks involved
• FFP is the preferred type when cost risk is none
  or minimal, or can be predicted with an
  acceptable degree of certainty
• Fully funded at time of award
• Incremental funding waiver requires concurrence
  of the Deputy Project Manager-Resources/Deputy
  Resources Manager (DPMR/DRM) and the Director
  prior to concurrence by the Chief Finance Officer
  (CFO) and the approval of the Procurement Officer

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Fixed-Price Incentive (FPI) Contracts (FAR 16.204)

• Fixed-Price Incentive contract is a fixed-price
  type contract, but provides for profit adjustment
  formula to be applied either at a pre-determined
  mid-point of performance or upon completion of
  performance in order to establish the final
  contract price.
• FPI is appropriate when both parties can
  negotiate an initial target and assume an
  appropriate share of the risk.

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• QUESTIONS

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• COST TYPE CONTRACTS

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• Cost Reimbursement (FAR 16.302)
• Cost-Plus-Fixed-Fee (FAR 16.306)
• Cost-Plus-Incentive-Fee (FAR 16.304)
• Cost-Plus-Award-Fee (FAR 16.305)

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Cost Reimbursement Contracts (FAR 16.302)

• These types of contracts provide for payment of
  allowable incurred costs, to the extent
  prescribed in the contract. Cost Reimbursement
  contracts establish an estimate of total cost for
  the purpose of obligating funds and establishing
  a ceiling that the contractor may not exceed
  (except at its own risk) without the approval of
  the contracting officer.
• Cost Reimbursement contracts are Suitable for use
  only when uncertainties involved in contract
  performance do not permit costs to be estimated
  with sufficient accuracy to use any type of
  fixed-price contract. (FAR 16.301-2)

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Cost Reimbursement Contracts (FAR 16.302)

• A cost-reimbursement contract may be used only
  when
• The contractors accounting system is adequate
  for determining costs applicable to the contract
  and
• Appropriate Government surveillance during
  performance will provide reasonable assurance
  that efficient methods and effective cost
  controls are used
• The use of cost-reimbursement contracts is
  prohibited for the acquisition of commercial
  items (See FAR Parts 2 and 12).

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Cost-Plus-Fixed-Fee Contracts (FAR 16.306)

• Provides for payment to the contractor of a
  negotiated fee that is fixed at the inception of
  the contract.
• The fixed fee does not vary with actual cost, but
  may be adjusted as a result of changes in the
  work to be performed under the contract.
• This contract type permits contracting for
  efforts that might otherwise present too great a
  risk to contractors, but it provides the
  contractor only a minimum financial incentive to
  control costs.

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Cost-Plus-Incentive-Fee Contracts (FAR 16.304)

• A cost-plus-incentive-fee contract is appropriate
  for services or development and test programs
  when
• A target cost and a fee adjustment formula can be
  negotiated that are likely to motivate the
  contractor to manage effectively.

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Cost-Plus-Award-Fee Contracts (FAR 16.305)

• Provides for a fee consisting of (1) a base
  amount fixed at inception of the contract and
  (2) an award amount that the contractor may earn
  in whole or in part during performance.
• Amount of the award fee is determined by the
  Government's judgmental Performance Evaluation
  Board (PEB) of the contractor's performance in
  terms of the criteria stated in the contract
  (Performance Evaluation Plan).

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Cost-Plus-Award-Fee Contracts (FAR 16.305)

• The cost-plus-award-fee contract is suitable for
  use when-
• The work to be performed is such that it is
  neither feasible nor effective to devise
  predetermined objective incentive targets
  applicable to cost, technical performance, or
  schedule
• The likelihood of meeting acquisition objectives
  will be enhanced by using a contract that
  effectively motivates the contractor toward
  exceptional performance and provides the
  Government with the flexibility to evaluate both
  actual performance and the conditions under which
  it was achieved

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Cost-Plus-Award-Fee Contracts (FAR 16.305)

• Any additional administrative effort and cost
  required to monitor and evaluate performance are
  justified by the expected benefits and
• Must be approved at Procurement Officer level.

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Profit (FAR 15.404-4)

• The contractor Officer shall not negotiate a
  price or fee that exceeds the following
  statutory limitations, imposed by 10 U.S.C.
  2306(d) and 41 U.S.C. 254(b)
• (A) For experimental, developmental, or research
  work performed under a CPFF contract, the fee
  shall not exceed 15 percent of the contracts
  estimated cost, excluding fee.

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Profit (FAR 15.404-4)

• (B) For architect-engineer services for public
  works or utilities, the contract price or the
  estimated cost or fee for production and delivery
  of designs, plans, drawings, and specifications
  the fee shall not exceed 6 percent of the
  estimated cost of construction of public work or
  utility, excluding fee.
• (C) For other CPFF contracts, the fee shall not
  exceed 10 percent of the contracts estimated
  cost, excluding fee.

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• QUESTIONS

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• OTHER CONTRACT TYPES

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• Award Term
• Indefinite-Quantity (FAR 16.504)
• Indefinite-Delivery (Sub Part 16.605)
• Definite-Quantity (FAR 16.502)
• Time and Materials (FAR 16.601)

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Award Term Contracts

• Provides for a term consisting of an award term
  fixed at inception of the contract.
• The award term is determined by the Government's
  judgmental evaluation of the contractor's
  performance in terms of the criteria stated in
  the contract. The number of evaluation criteria
  and the requirements.

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• Indefinite-Quantity limit government obligation
  to minimum quantity specified in the contract.
• Requirements may permit faster deliveries when
  production lead time is involved.
• Indefinite-Delivery may provide appropriate cost
  or pricing arrangement under FAR Part 16. Cost or
  pricing arrangements that provide for an
  estimated quantity of supplies or services must
  comply with FAR Part 16.

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• Definite-Quantity may be used to determine in
  advance that a definite quantity of supplies or
  services are required during contract period.
  Supplies or Services are regularly available
  after a short lead time.
• Requirements provide for filling all actual
  purchase requirements of designated Government
  activities for supplies or services during a
  specified contract period with deliveries or
  performance scheduled by placing orders with
  contractor.

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• Time and Materials are used only when it is not
  possible to estimate accurately the extent or
  duration of the work or to anticipate costs with
  any reasonable degree of confidence.
• Labor Hour used when materials are not involved.
• Requires Determination and Findings (FAR Subpart
  1.7), reviewed by Legal and approved by Associate
  Division Chief.

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• QUESTIONS