Transcript V T TIDEWATER GOVERNMENT INDUSTRY COUNCIL www.tasc-tgic.org RY ST O E DU G E M IN N N R TGIC EDUCATION Tidewater Government Industry Council How to Analyze Party Obligations Under a Contract By Damien Walsh and Beverly Arviso TASC TIDEWATER ASSOCIATI0N OF SERVICE.

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EDUCATION
Tidewater Government Industry Council
How to Analyze Party
Obligations Under a Contract
By
Damien Walsh and Beverly Arviso
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Objectives
Tidewater Government Industry Council
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Learn how to read/review a solicitation
Learn contract types and payment matters by
contract type
Learn the legal and pricing obligations stated in the
RFP
Are you willing and capable to assume the
performance risks?
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Uniform Contract Format
EDUCATION
Tidewater Government Industry Council
SECTION
TITLE
Part I—The Schedule
A
Solicitation/contract form
B
Supplies or services and prices/costs
C
Description/specifications/statement of work
D
Packaging and marking
E
Inspection and acceptance
F
Deliveries or performance
G
Contract administration data
H
Special contract requirements
Part II—Contract Clauses
I
Contract clauses
Part III—List of Documents, Exhibits, and Other Attachments
J
List of attachments
Part IV—Representations and Instructions
K
Representations, certifications, and other statements of offerors or respondents
L
Instructions, conditions, and notices to offerors or respondents
M
Evaluation factors for award
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Anatomy of Contract Numbers
EDUCATION
Tidewater Government Industry Council
Position
1-6
7-8
9
10-13
Contents
Identification of
department/agency office
Last two digits of the
fiscal year in which the
procurement
instrument is issued or
awarded
Type of
instrument
Four position serial number
N00062
09
C
0001
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Anatomy of Contract Numbers
Tidewater Government Industry Council
“Position 9”
Letter
Description
A
Blanket Purchase Agreement
B
Invitation for Bids
C
Contracts of all types except IDIQs
D
IDIQ Contracts
F
Contracting actions placed with or through other
Government agencies or departments, e.g., AbilityOne
and UNICOR
G
Basic Ordering Agreement
P
Purchase Orders
Q
Request for Quote
R
Request for Proposal
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Understanding the Contract Type
Tidewater Government Industry Council
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Firm Fixed Price (FFP)
Time-and-Materials (T&M)
Cost Reimbursement
Indefinite Delivery/Indefinite Quantity (IDIQ)
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Delivery vs. Task Order
Permits multiple contract types
• Government Wide Acquisition Contracts (GWACs)
• Multiple Award Contracts
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Understanding the Contract Type
Tidewater Government Industry Council
• Contract Type Examples:
• FFP contracts place all the burden on the
contractor
• Cost Reimbursement type shares
responsibility between the government and
contractor
• T&M contracts impose more of a burden on
the government (not a preferred method)
• Are the deliverables clear?
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Payment Issues by Contract Type
Tidewater Government Industry Council
• Cost type contract
• date sensitive
• contractors are entitled to be paid allowable costs
which have been incurred (not necessarily paid)
regardless of whether work has been completed up to
the established estimated cost ceiling
• Fixed fee is paid up to the established fixed fee
ceiling
• Fee withholds can be imposed once fixed fee has
reached 85% of the funded fee
• Incurred cost submissions are due within 6 months
after the fiscal year end
• Invoice dates are subsequent to month end
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Payment Issues by Contract Type
Tidewater Government Industry Council
• T&M type contract
• date sensitive
• contractor is entitled to be paid hourly rate for each
hour worked as supported by timesheets and any
other direct cost and applicable handling rates
• Withholds can be imposed at 5% of the labor portion
up to $50,000
• Fixed price type contract
• contractor is only entitled to be paid for accepted work
• milestone or progress payments are permitted
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Understanding the Contract Type
Tidewater Government Industry Council
Impact of Contract Types
• The amount of government financial review and
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surveillance is determined by the type of contract
awarded
The government will have greater interest in the
company’s accounting practices where incurred costs are
the primary factor in establishing the amount the
contracting agency ultimately pays for the work performed
When the final contract price is unaffected by actual cost
or performance, government procurement policy requires
considerably less review and surveillance
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Understanding the Requirements
Tidewater Government Industry Council
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Obtain a clear understanding of the requirements
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Read the solicitation (and read it again, and again, and
again…..)
Determine the contract type(s) (See Section M)
Section B, Supplies or Services and Prices/Cost
Section C, Statement of Work
Section L, Instructions, Conditions, and Notices to Offerors
Section M, Evaluation Factors for Award
Clarifications, discussions, and negotiations
Evaluated price vs. proposed price
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Reviewing the Solicitation
Tidewater Government Industry Council
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Identify legal and pricing responsibilities to see if they
are worth pursing
Start with identification of the contract type. This is
found in the last section of the RFP as one of the
FAR 52.215 clauses (e.g. FFP, Cost Reimbursement,
etc.)
Identify the pricing and payment risks
Do the requirements fall with the scope of your core
skills and business model?
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Reviewing the Solicitation
Tidewater Government Industry Council
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Review Section B CLIN structure
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Does it align with invoice instructions?
Will you have trouble getting paid?
Labor category requirements and implications postaward
Cost volume should align with the technical volume
Provide the government what they ask for and deliver
what is promised in the proposal
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Optional and/or alternate proposals may not be permitted
or evaluated
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Reviewing the Solicitation
Tidewater Government Industry Council
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Section I Clauses
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Allowable Cost and Payment (52.216-7)
Penalties (52.242-3)
Data Rights
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Questions
Tidewater Government Industry Council
Damien Walsh, Attorney Advisor Joint Staff
[email protected]
Beverly Arviso, CPA, CPCM, CFCM, NCMA Fellow
Arviso, Inc.
[email protected]
757-373-9536
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