10 MYTHS OF GOVERNMENT CONTRACTING

Kate Whitby

1 North Brentwood, Suite 1000

St. Louis, MO 63130kwhitby@spencerfane.com

Kate Whitby

1 North Brentwood, Suite 1000

St. Louis, MO 63130kwhitby@spencerfane.com

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GOALS

Identify “Good” Contracts / Work Steer Away From “Bad” Contracts / Work Survive Audits Get Paid Don’t Get Sued Get Hired Again For Government Work

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MYTH #1

When The Government Asks For Bids, It Really Wants To Buy Something, Can Buy It, And Will Buy It Funding “Commercial Items” Contracting Officer Task order work awards

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MYTH #2

The Government’s Request For Bids Is Realistic And The Government Will Negotiate Fairly Market research Multiple Award Schedule contracts The False Claims and Trade Agreements

Acts

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MYTH #3

The Government Will Be Fair And Reasonable Regarding Changes Change Orders

Must be approved by CO Inside or outside scope of contract is

important Constructive change orders Notice and equitable adjustment

Differing Site Conditions

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MYTH #4

The Government Can’t Make Me Stay On A Contract That Is A Money Loser Unilateral Change Orders Contract Disputes “Mistakes” Termination for Government

Convenience “Claims”

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MYTH #5

I Won’t Be Audited Pre-Award

Proposal Review Provisional Billing Rate Review Past Performance Capacity

Completion and After Final Overhead Rate

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MYTH #6

The Financial Accounting System I Use Is Good Enough For Government Work Cost Accounting Standards (CAS) Cost Principles and Procedures Direct vs. Indirect Costs and Indirect Cost

Accounting General & Administrative Costs Accounting changes to indirect cost rate structures

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MYTH #7

I Don’t Need To Know Anything About The FARs Construction and Architect-Engineering

Contracts (Part 36) Service Contracting (Part 37) Contract Admin & Audits (Part 42) Contract Modifications (Part 43) Subcontracting (Part 44)

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MYTH #8

At Least The Government Has The Money To Pay Appropriations Funding / deobligation of funds Fiscal year budgets 80% rate for progress payments Standard invoicing forms

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MYTH #9

Starting The Work Without A Signed Contract And Working In-Between Contract Renewals Or Extensions Is Not A Problem No. No. No.

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MYTH #10

I Am Not Responsible For A Sub’s Personnel or Employment Practices FAR Subpart 22.4, Labor Standards for

Construction Contracts ADA EEO Davis-Bacon Act Stafford Act OSHA

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LAWS/REGULATIONS

Competition In Contracting Act Buy American Act Federal Acquisition Streamlining Act Truth In Negotiation Act False Claims Act Armed Services Procurement Act Federal Property & Administrative Services Act Contract Disputes Act of 1978 Federal Acquisition Regulations (FARs) Defense Federal Acquisition Regulation Supplement

(DFARS)

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ADDITIONAL RESOURCES

www.fedbizopps.gov www.arnet.gov/far www.ccr.gov www.sba.gov