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Introduction to Contracting

Introduction to Contracting. M. Brenda Hebert Senior Contract Manager, ORD AO & Compliance Training February 26, 2004. Basic Elements of a Contract. Legally enforceable Requires at least 2 parties. Prerequisites to a Legal Contract.

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Introduction to Contracting

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  1. Introduction to Contracting M. Brenda Hebert Senior Contract Manager, ORD AO & Compliance Training February 26, 2004

  2. Basic Elements of a Contract Legally enforceable Requires at least 2 parties

  3. Prerequisites to a Legal Contract • Competency- All parties must be legally capable of entering into a binding contract. • Offer & Acceptance- Legal offer must be made & accepted by all parties • Mutual consideration- Contract must be reciprocal, tangible results by contractor are exchanged for payment by the government. • Lawful purpose- Contract must meet the mission of the agency, or authority/appropriation exists.

  4. Who can act as a government agent??? ONLY THOSE GOVERNMENT EMPLOYEES WHO: Have been authorized to sign contracts by the assignment of a warrant. Have warrant authority for purchase.

  5. CONTRACTS CAN ONLY BE ENTERED INTO AND MODIFIED BY CONTRACTING OFFICERS.

  6. Acquisition Cycle Planning phase • Advance planning, determines needs, develops Statement of Work (SOW), purchase request. Contract formation phase • Program official/project manager works with CO in contract solicitation, evaluation and awarding. Contract administration phase • COTR monitors contract performance.

  7. Acquisition Planning Phase • Background Information • Objective/Purpose • Delivery & Performance Schedule • Independent Government Cost Estimate- IGCE • Delivery & Performance

  8. Acquisition Planning Phase (cont’d) • Requirements Documents - SOW • Recommended Sources & Competition • Technical Evaluation Criteria • Funding Document • Miscellaneous

  9. Statement of Work/Requirements • A well written statement of work is: clear, concise and easy to understand. • Sets forth actual needs • Contains appropriate QA provisions- how to determine requirements are met!

  10. 5 Simple Tips to Improving Your Contracts • Do not use abstract, vague or ambiguous terms/words. • Be consistent in words or phrases used. • Use “shall”, “must” or “will”. • Use active rather than passive voice. • Be specific.

  11. Two Golden Rules: “Brevity is the soul of wit.” “If it is NOT written down, it didn’t happen.”

  12. Statement of Work Sections • Background • Scope & Purpose • Description of Tasks • Place of Performance • Period of Performance & Milestones • Travel • Contractor Staff Training

  13. Statement of Work Sections (cont’d) • Contractor Provided Space • Government Furnished Property • Contractor Furnished Property • Transition Plan • Confidentiality & Non-Disclosure • Written Reports/Deliverables • Labor Categories • Project Resource Requirements

  14. Contract Formation Phase • Determine type of contract to be used • Determine competition requirements • Evaluation of Proposals - Technical vs Cost • Award of Contract

  15. The 7 Exceptions to Full and Open • Sole Source • National Security • Unusual & Compelling Urgency • Authorized/required by stature • In public interest • National Emergency/Industrial Mobilization • R&D Capability or services of an expert for litigation or dispute

  16. The final step…… ….and if you’re lucky, no bid protest….

  17. Types of Contracts • Fixed Price • Firm Fixed Price • Cost Reimbursement • Cost Reimbursement • Time & Materials (Labor-Hour)

  18. Types of Contracts (cont’d) • Indefinite Delivery • Definite Quantity • Requirements • Indefinite Quantity

  19. Contract Administration Phase • COTR monitors contract performance • Final close out

  20. Special Contracts • Advisory and Assistance management and professional support services (For example: consultants) • Additional information available in VAAR 37.200 • Deputy Secretary approval levels • Quarterly Reporting

  21. Additional Contracting Information • Web Sites • GSA http://www.gsa.gov/ • GSA MOBIS (Management, Organizational and Business Improvement Services • GSA FAST 8(a) Small Business Set-Aside Contracts for Information Technology Solutions • OA&MM e-library http://vaww1.va.gov/oamm/elibrary/index.htm

  22. A Final Source of Information ORD Contracting Staff M. Brenda Hebert 202-254-0204 Bridgett Ann Baer 202-254-0482 Greg Johnson 202-254-0193

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