Where Do I Find it in the Contract

Where Do I Find it in the Contract? Understanding Government Contracts for the Property Manager: Part 1 of 2 C-200 -INT NPMA 1

What is a Contract Black’s Law Dictionary: l “An agreement, enforceable by law, between two or more parties, to do or not do something not prohibited by law, for a legal CONSIDERATION. ” l 2 Federal Government procurement contracts are governed by the Federal Acquisition Regulations (FAR).

What is a Contract FAR l l 3 FAR 2. 101 definition: “A mutually binding legal relationship that obligates the seller to furnish supplies or services (including construction) and the buyer to pay for them. ” FAR – Federal Acquisition Regulation DFAR – Department of Defense Supplement

Contract Types 4 l The type of contract we enter into is based on the level of risk. l The lower the customer risk the higher the contractor fee. l As customer risk goes up fee goes down

What’s the Process? 5 l Requirement identified and documented l Request for Proposal / Quote (RFP or RFQ) l Type of contract specified here

What’s the Process? 6 l Analysis of RFP/RFQ – Proposal development and submission l Negotiation (maybe) sole source, competitive, sealed bid l issuance of contract /purchase order

Types of Contracts. 7

Fixed Price l FFP – Been there done that – we have produced this item or a similar item in the past. l Contractor carries most risk ( ^ Higher contractor fee expectation) l 8 Low (customer) risk / High contractor fee

Cost Reimbursable and T&M 9 l CP / T&M – New development or a complex modification l Customer carries most risk ( v lower contractor fee expectation) l Higher (customer) risk / lower contractor fee

Contract Type and Property 10 l Cost – Normally the customer owns everything products and material l Fixed price – Normally the customer only owns specific defined deliverables l Wild card - Commercial Contracts and Subcontracts

Where to find it in the contract l l l 11 PART I - THE SCHEDULE SECTION B - Supplies or Services and Price/Costs What SECTION C - Description/Specifications/Work Statement How SECTION D - Packaging, Marking and Shipping SECTION E - Inspection and Acceptance SECTION F - Deliveries or Performance Where and When SECTION G - Contract Administration Data Property SECTION H - Special Contract Requirements PART II - CONTRACT CLAUSES SECTION I - Contract Clauses Property Clauses PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS SECTION J - List of Attachments Property list

Shall – Should – May ? ? ? 12 l Shall - means the imperative – must do l Should - means an expected course of action or policy that is to be followed unless inappropriate for a particular circumstance l May - denotes the permissive

First page of the contract l l l 13 Contract Number Who it is from - Who it is to Defense Priorities & Allocations System (DPAS) rating (DX, DO, none) Start Date Contract Value

Who are we and where do we live l Who – – l Where do we live – 14 DUNS Number / Central Contractor Registration Tax ID CAGE Code (could be down to building)

Property – We’re here to help 15 l Just what are we delivering? – Know the product l Where is it being produced? Know where and how the item is manufactured l Who is making it – Know the people

Part of the problem or part of the solution? 16 l Work with the programs – explain what is required then ask how you can help l Carrot or the stick? l “You need to give me” vs. “where can I find” l Know the customer (internal and external)

More Information The Government Contracts Reference Book: A Comprehensive Guide to the Language of Procurement, Third Edition, Soft cover Ralph C. Nash, Jr. , Karen R. O’Brien-De. Bakey, Steven L. Schooner, Vernon J. Edwards l 17 Written by noted government contracting experts, The Government Contracts Reference Book provides clear explanations of both general and agency-specific terms from the Department of Defense, General Services Administration, Department of Energy, NASA and others followed by a summary of where the term is used in the statutes or regulations dealing with the procurement process. Organized in an easy-to-use alphabetical format and fully cross-referenced, this essential reference will help you procure goods and services efficiently and with confidence.

Questions 18