Contracting Officer Podcast Slides Knowledge Insights From Contracting

Contracting Officer Podcast Slides Knowledge & Insights From Contracting Officers 1

Episode 024 Listener Questions & Answers Vol. 2 Original Air Date: April 27, 2015 Hosts: Kevin Jans & Paul Schauer 2

Formatting notes • Hyperlinks: Blue font indicates hyperlinks – presentation must be in ‘Slide Show’ mode to activate the link • Red bold font indicates a point of emphasis • Green bold font indicates CO’s personal comment or perspective 3

Introduction • Purpose of this podcast: To answer listener questions over these four topics: 1. What is an ‘award fee’ contract? 2. What does ‘incremental funding’ mean? 3. What are “Certified Cost & Pricing Data? ” 4. What does “Commercial Acquisition” mean? 4

1. What is an ‘award-fee’ contract? • FAR 16. 401(e) • They are a type of incentive contract. (An unpopular type, by the way) • Award-fee amount is commensurate with the contractor's overall cost, schedule, and technical performance as measured in the award-fee plan • Government must write an award fee plan too: this establishes • Procedures for evaluating the award fee • Award-Fee Board for conducting the award-fee evaluation 5

1. What is an ‘award-fee’ contract? • Fee Determining Official decides if the offeror met the award fee plan: • Excellent 91%--100% Contractor exceeded almost all significant award-fee criteria, and met overall cost, schedule, and technical performance • Very Good 76%--90% Contractor exceeded many significant award-fee criteria, and met overall cost, schedule, and technical performance • Good 51%--75% Contractor exceeded some significant award-fee criteria, and met overall cost, schedule, and technical performance • And so on… 6

2. What does ‘incremental funding’ mean? • On cost-type contracts • FAR 52. 232 -22 -- Limitation of Funds • 60 -day period may be varied from 30 to 90 days • 75% may be varied from 75 -85% • “Task Order” or other appropriate designation may be substituted for “Schedule” wherever that word appears in the clause 7

2. What does ‘incremental funding’ mean? • On fixed-price contracts • Generally not allowed but… • DFARS 232. 703 -1 – Contract Funding 8

3. What are “certified Cost & Pricing Data? ” • FAR 15. 403 -4 – Obtaining Certified Cost and Pricing Data • This certification states that, to the best of the person’s knowledge and belief, the cost or pricing data are accurate, complete, and current as of a date certain before contract award • Required on action worth over $700, 000 (absolute value) • Preference is NOT to use it • The “certificate” is at FAR 15. 406 -2 – Certificate of Current Cost or Pricing Data 9

4. What does “Commercial Acquisition” mean? • FAR Part 12 – Acquisition of Commercial Items • Goods and services used by the public, or • have been sold or offered for sale competitively to the public, or • has evolved into such an item, or • can be modified to be such an item • NOTE: FAR Part 2. 101 has the full definition 10

Contact us • We are on Linked. In, Twitter and Facebook • We also started the Government Contracting Network Group on Facebook. Join us there! • Send your topics to paul@Contractingofficerpodcast. com • For Community support, contact Shelley Hall at shelley. hall@skywayacquisition. com 11