1 / 20

Breakout Session # 809 Doris Gray, Sr. Contracts Manager Avnet, Inc. April 16, 2008 10:50 AM – 11:50 AM

Waiting to Exhale:  Subcontractors Selling Commercial Items to Government Prime Contractors . Breakout Session # 809 Doris Gray, Sr. Contracts Manager Avnet, Inc. April 16, 2008 10:50 AM – 11:50 AM. About The Company. > Electronics Marketing 57%. Double digit growth annually

Thomas
Download Presentation

Breakout Session # 809 Doris Gray, Sr. Contracts Manager Avnet, Inc. April 16, 2008 10:50 AM – 11:50 AM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Waiting to Exhale:  Subcontractors Selling Commercial Items to Government Prime Contractors Breakout Session # 809 Doris Gray, Sr. Contracts Manager Avnet, Inc. April 16, 2008 10:50 AM – 11:50 AM

  2. About The Company >Electronics Marketing 57% • Double digit growth annually • 12,600 employees • 300 Suppliers • 70 countries • More than 275 locations • Serving 100,000 customers in the technology supply chain through two operating groups: • Electronics Marketing • Technology Solutions • Primarily Commercial Business >Technology Solutions 43%

  3. The Value ofCommercial Suppliers • Shorter lead times • Best commercial practices • Quality products • Latest technology • Lower costs • Improved supply chain management

  4. Laws and Regulations Governing the Sale of Commercial Items to the Government • Federal Acquisition Streamlining Act of 1994 (FASA), Public Law 103-355 • Federal Acquisition Circular (FAC) 90-32 (10/1994) • Clinger-Cohen Act of 1996 (CCA), Public Law 104-106 • FAR Part 12, Acquisition of Commercial Items

  5. FASA • Established a preference for the acquisition of commercial items (CIs) and non-developmental items (NDIs) • Expanded the definition of CIs • Directed the FAR to contain a list of clauses to be included in contracts and subcontracts for CIs • Eliminated the applicability of many government-unique laws and clauses to CIs

  6. FAC 90-32 • Promulgated 3 FAR clauses to implement the directive of FASA: • 52.212-4 Contract Terms and Conditions— Commercial Items • 52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Order—Commercial Items • 52.244-6 Subcontracts for Commercial Items

  7. CCA • Defined the term “Commercial-off-the-shelf” items (COTS) • Exempted the acquisition of CIs from the Truth In Negotiations Act and Cost and Accounting Standards • Allowed CI purchases to be made under the simplified acquisition procedures of FAR Part 13

  8. FAR Part 12 • Implements FASA, CCA and FAC 90-32 • Must be used for the acquisition of supplies and services that meet the definition of CIs in FAR 2.101 • Prescribes the terms and conditions to be used for and the policies and procedure that apply to contracts and subcontracts for CIs • Requires the use of FFP or FFP with economic price adjustment for the acquisition of CIs.

  9. Definitions Used for Commercial Items FAR 2.101 defines CIs very broadly: • COTS • Any item that evolved from COTS • Modifications: • Modifications of a type customarily available in the marketplace • Minor modifications of a type not customarily available in the market place • Any combination of items of the 1st three CIs

  10. Definitions Used for Commercial Items (con’t.) There are 8 categories of CIs • Services procured in support of a CI • Stand alone services • Any item, combination of items or services that meet the criteria of CI • NDIs

  11. Commercial Item Determination Flow Chart for Products and Supplies

  12. Commercial Item Determination Flow Chart for Services

  13. Commercial Item Determination“Of A Type” The following items and service need only be “of a type” sold to the general public in order to qualify as a CI • COTS items • Modifications and minor modifications • Items evolved from COTS items • Any combination of the first three categories • Stand-alone services • Modifications to NDIs

  14. Terms and Conditions Applicable to Prime Contracts for Commercial Items • FAR 52.212-3 Offerors Representations and Certifications—Commercial Items • FAR 52.212-4 Contract Terms and Conditions—Commercial Items • FAR 52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items

  15. Terms and Conditions Applicable to Subcontracts for Commercial Items • FAR 52 244-6 Subcontracts for Commercial Items • FAR 52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items Additionally, if under DOD prime contract: • DFARS 252.244-7000, Subcontracts for Commercial Items and Commercial Components

  16. Impediments to Subcontracts for Commercial Items • Lack of training in the acquisition of CIs • Do not possess the knowledge to make CI determinations • Do not know which terms apply to CIs • Inapplicable flow down of non-commercial terms and conditions • Inapplicable flow down of representations and certifications • Inflexible procurement organizations

  17. Consequences of Impediments • More commercial subcontractors at every tier will refuse to accept Government business • Higher costs will be paid by the Government for commercial items • Great liability imposed on commercial subcontractors • Breach of contracts • False Claims Act • False Statements Act

  18. How Primes and Subs Can Work Together to Achieve the Goals of FASA • Subcontractors • Determine which of 8 categories for CIs apply to your products and services • Prime contractors • Request support from subcontractors in making CI determination • Flow down the clauses prescribed by Part 12 • Prime contractor and subcontractor • Determine what additional clauses are needed to accomplish contractual intent

  19. Contact Information Doris Gray Doris.Gray@Avnet.com Office: (480) 794-6334

More Related