Post on 15-Feb-2017
HOW TO POLISH YOUR SKILLS AS A FEDERAL GOVERNMENT CONTRACT SPECIALIST
THE PROFESSIONAL 1102 ©
cc: semihundido - https://www.flickr.com/photos/20961302@N00
MEET THE TEACHER• James Concannon, MSA• FAC C Level III Contracting Officer• Held Unlimited Senior Warrants in both
Repair, Alteration and Construction branch (PBS) and Supply and Services branch (FAS) of GSA
• Buyer for the Defense Logistics Agency• Instructor for the Graduate School USA and
Federally Employed Women• 32 years of federal government
procurement experience, most of those as a Team Leader
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Contact Information
JIM CONCANNONjamesconcannon122@gmail.com
North Wales, PA
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• Your Name• Your Agency/location• Your Job duties• Your Level of experience
Introductions
10Comprehensive COR Workshop
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COURSE OBJECTIVES• Importance of strategic planning
and analysis• Importance of available resources
in planning• Methods of locating and qualifying
sources• Processes, procedures, documents
and terms for soliciting contracts
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THE COURSE WILL COVER
• Role of procurement• Fundamentals of strategic planning• Strategic procurement planning
(SP2)• Planning for service contracting• Planning for combination
service/product procurements
AND….• Knowing what is needed• Procurement as a team activity• Identifying procurement risks• Budgeting and approvals• Goals of strategic sourcing• Methods of identifying sources• Sourcing strategy• Market research
cc: 401(K) 2013 - https://www.flickr.com/photos/68751915@N05
AS WELL AS…• The importance of specifications• Types of specifications• Standards and the standardization
process• Writing specifications and statements of
work• Sources of specifications• Legal issues• Administrative instructions• General terms and conditions• Special terms and conditions
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Plus…• Essential elements of documents• Optional elements of documents• Checklists for completion• Conflicts of interest• Supporting information• Competition’s value and obstacles• The impact of electronic technology
on planning and sourcing• Partnering
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BUT THERE’S MORE• The need for formal planning,
sourcing and evaluation strategies
• The importance of procurement in the public sector
• Moving beyond the details of the process
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PAST PERCEPTIONS OF PROCUREMENT
• Clerical, service function• Gatekeeper• Bureaucratic• Rule Driven• Obstacle to be overcome
cc: Great Beyond - https://www.flickr.com/photos/26104563@N00
WHO IS RESPONSIBLE?• From FAR 1.602-2, Responsibilities.• Contracting officers are responsible
for ensuring performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the interests of the United States in its contractual relationships.
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NEW PERCEPTION OF ACQUISITION• Cost reduction• Cost avoidance (Category
Management)• Customer services (Spend Analysis)• Continuity of supply• Insures quality• Strategic partner• Expert Support (Assisted
Acquisition)
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THE CURRENT ENVIRONMENT• Changing, diverse marketplace• Globalization• Budget tightening and
downsizing• Higher expectations of public
service• Technological innovations
TRENDS• Electronic sourcing• Cloud• Category Management• Third parties (FedBid)
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WHAT IS A SUCCESSFUL PROCUREMENT?
• Supports strategic plans• Driven by preferred outcomes• Gets best value• Timely• Reduces administrative burden• Expedites routine purchases• Encourages competition• Attracts quality suppliers
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ROLES OF PROCUREMENT
• Directors/Branch Chiefs• Management/Staff• Line (Contract Specialists)• Buyers (Credit Card Holders)
cc: NASA Goddard Space Flight Center - https://www.flickr.com/photos/35278629@N08
PROCUREMENT RESPONSIBILITIES
• Strategic planning• Budget implementation• Specifications and requirement
development (if there is engineering or tech staff)
• Source selection• Purchasing and contracting• Supervising Receiving, inspection
and quality controlcc: downhilldom1984 - https://www.flickr.com/photos/37008167@N06
WHY PLAN?• Plan your work, then work your
plan• Identify functions• Identify direction• Establish decision criteria• Allocate resources• Monitor performance• Evaluate effectiveness
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A TYPICAL PLANNING MODEL
PLANNING PROCESS• SWOT analysis• Strengths• Weaknesses• Opportunities• Threats
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ELEMENTS TO CONSIDER
• Mission• Vision• Goals• Objectives• Standards
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DEVELOPING SOUND OBJECTIVES
• SMART• Specific• Measurable• Assignable• Realistic• Time-related
cc: Wi2_Photography - https://www.flickr.com/photos/41027404@N07
How to Reach a Goal
• Typical goal – lose weight• Goal – lose weight – how much?
Write it down – written goal • Now, outline a plan to reach the goal
– a written goal with an action plan• Next, review the plan regularly to
check progress – goal reviews• Finally, appoint someone (or thing)
to report your progress to – goal reviews with accountability
• Source 20 Retirement Decisions You Need to Make Right now by Ray E Levitre
PERFORMANCE MEASURES• Demand
• Workload• Efficiency
• Effectiveness
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CATEGORIES OF PLANS
• Strategic• Tactical
• Operational• Contingency
• Standby• Single use
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PLANNING IS A TEAM EFFORT
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ROLES OF PLANNING TEAM• Design process• Establish time/resource
constraints• Establish outcomes• Identify participants• Create planning structure
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PLANNING & SCHEDULING ACTIVITIES• Budgeting• Identify need• Determine specifications (SOW, PWS)• Market conditions• Possible substitutes (Excess)• New products/services• Policy, regulation, legislation (SBA,
EPA, NARA)• Requisition• Project management
cc: Gwenaël Piaser - https://www.flickr.com/photos/22841923@N02
ENVIRONMENT FOR STRATEGIC PLANNING
• Leadership• Planning framework & process• Effective internal/external
communication• Control and responsibility• Measurable performance
measures
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LIMITS OF STRATEGIC PLANNING• Lack of commitment• Failure to develop/implement sound
strategies• Lack of meaningful goals/objectives• Rational and creative process• Excess reliance on past• Failure to identify critical factors• Lack of clear delegation, control,
and/or information• Resistance to change
cc: Lenny Flank - https://www.flickr.com/photos/63232896@N00
FACTORS INFLUENCING PLANNING
• Sophistication of process• Dependence on goods and services
• Top management view of procurement
• Status of procurement development
• Professionals’ ability to shift from tactical to strategic role
cc: Mesq - https://www.flickr.com/photos/85517171@N00
STRATEGIC PROCUREMENT PLANNING
• Profile of baseline information• Risks
• Markets• Forecasts• Capacity of procurement
department• Procurement performance
measurescc: pamhule - https://www.flickr.com/photos/58571789@N00
PROCUREMENT PLANNING TEAM
• Procurement• Budget• Using departments (Program
Manager)• Legal• Finance• Information technology
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STRATEGIC PROCUREMENT APPROACH
• Impact of value-chain• Meeting organizational goals
(Mission)• Identifying right good/service
• Reviewing need• Selecting sources
• Achieve specific goal/objective
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INTEGRATED PROCUREMENT PLANNING
• Procurement planning (Acquisition Cadres – cross
agencies)• Procurement formalization
(Synopsis, Solicitation, RFQ, RFP)
• Procurement evaluation (Results achieved?)
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BUDGETARY PERSPECTIVES• Political
• Economic• Finance
• Citizen (FOIA)
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THE BUDGET CYCLE• Planning• Estimates (IGEs)• Expenditures (Prospectus)
• Allocations• Formalizing• Allotments
• Approvalcc: bikeracer - https://www.flickr.com/photos/40713258@N00
THE ROLE OF YOUR FINANCE DEPARTMENT
• Policy document (Mission Statement)• Priorities (Strategic Plan)
• Goals• Operations guide (Tactical Plan)• Resource allocation (Operational Plan)• Objectives and measures (Audit)
• Financial plan• Revenue sources (Budget Activity
Code)• How are funds attached to projects?
(MIPR, RWA, IAA, MOU)
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WHERE DOES THIS FIT?
CLASSIFICATION OF FUNDS• Governmental
• General (Operating)• Special revenue (Project Specific)• Capital (Building, Equipment)
• Multi-year vs. No Year• Color of Money
• Beware of Anti-Deficiency• Fiduciary Responsibility of the CO
• Custodian of Taxpayers fundingcc: 401(K) 2013 - https://www.flickr.com/photos/68751915@N05
FUNDING TYPES• Operating
• Appropriations• Expenditures
• Fees• Capital
• Infrastructure• Infrequent
• Long termcc: c_ambler - https://www.flickr.com/photos/13600186@N06
FORECASTING• Know what you are going to need and
plan for it• Fixed period
• Divide total usage by length of fixed period (ex. 100K copies/12 months*.01/page = $83.33/month)
• Use current data from immediate past period, longer periods should be more accurate
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MORE FORECASTING• Determine future needs
• Examine opportunities• Survey market
• Review price indices & histories• Review lead times
• Understand current & past trends
cc: Images_of_Money - https://www.flickr.com/photos/59937401@N07
RATIONAL DECISION MAKING• Define the problem, characterizing the
general purpose of your decision.• Identify the criteria, specifying the
goals or objectives that you want to be able to accomplish.
• Weight the criteria, deciding the relative importance of the goals.
• Generate alternatives, identifying possible courses of action that might accomplish your various goals.
cc: Dean Hochman - https://www.flickr.com/photos/17997843@N02
RATIONAL DECISION MAKING• Rate each alternative on each criterion,
assessing the extent to which each action would accomplish each goal.
• Compute the optimal decision, evaluating each alternative by multiplying the expected effectiveness of each alternative with respect to a criterion times the weight of the criterion, then adding up the expected value of the alternative with respect to all criteria.
• Use this method to document sensitive or high visibity procurements
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RATIONAL DECISION MODEL• Greatest benefit for dollars expended• Inter-sector efficiency• Public vs private delivery (Inherently
governmental?)• Inter-program efficiency• Evaluate competing programs• Intra-program efficiency• Combine resources for maximum
benefit
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RATIONAL DECISION MODEL
THIS OR THIS
REQUIREMENT CHARACTERISTICS• Compliance evaluation• How to measure completion• Regulatory• Administrative and contractual
elements• Mandatory Guidance• Required• Another agency’s regulations• Priority• Order of preference for requirements
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REQUIREMENT CHARACTERISTICS• Primary
• Unambiguous specification• Derived
• More flexible; accepts deviations within original scope
• Qualitative• Subjective; value laden
• Quantitative• Identifies measurable performance
expectations• Task
• What is being providedcc: freddy - https://www.flickr.com/photos/41894173046@N01
REQUIREMENT ISSUES• Relationships
• Interdependence or interaction• Hierarchy of elements, components,
interfaces• Descriptions
• Need statement• Solution statement• What, not how
• Quality• Program-specific
• Options acceptable• Not ambiguous
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OBJECTIVES• The importance of specifications• Types of specifications• Standards and the
standardization process• Writing specifications and
statements of work• Sources of specifications
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DEFINE CUSTOMER NEEDS• Coordinate with users• Recognize (5 W’s)• Describe• Budget• Market analysis• Information and research
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SPECIFICATION DEFINED
“A precise description of the physical or functional characteristics of a product, good or construction item. A description of goods as opposed to a description of services. A description of what the purchaser seeks to buy and what a bidder must be responsive to in order to be considered for award of a contract.”
Source: The Public Procurement Dictionary of Terms, 2008
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WHY SPECIFICATIONS ARE IMPORTANT
• Fairness• Equity
• Transparency• Provide maximum competition
• Reduce cost• Avoid disputes
• Save time
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WRITING TECHNICAL SPECIFICATION• Identify precisely what is to be
purchased• Accommodate evaluation
• Assist suppliers in preparing offers• Reflect only essential requirements• Establish minimum and maximum limits• Promote open, fair, equal and
transparent • Competition
• Establish quality standards
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SPECIFICATION DO’S AND DON’TS
• Don’t: Include terms and conditions
• Do: Be relevant• Do: Be unambiguous• Do: Describe process and use• Do: Provide for testing,
acceptance and rejectioncc: quinn.anya - https://www.flickr.com/photos/53326337@N00
SPECIFICATION DO’S AND DON’TS• Do: Provide tolerances• Do: Minimize extraneous costs• Do: Use terminology of target
market• Do: Identify physical, functional
and quality characteristics• Do: Identify speed, power, output
or gradecc: Tim Pierce - https://www.flickr.com/photos/48439369@N00
ATTRIBUTES OF SPECIFICATIONS
• General description• Number of units and limitations
• Specific make or model• “Equal to” specific brand, make
or model• Size, weight, etc.
• Component characteristics• Material composition
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ATTRIBUTES OF SPECIFICATIONS• Assembly or construction
• Output characteristics and performance
• Engineering drawings• Method of testing
• Industry standards• Standard grades
• Prototype sample• Tolerance
• Appearance and finishcc: Seattle Municipal Archives - https://www.flickr.com/photos/24256351@N04
PURPOSE OF SPECIFICATIONS• Compare competing products• Articulate minimum
requirements• Identify performance, quality and
operational characteristics• Evaluate solicitation responses• Maximize competition
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TYPES OF SPECIFICATIONS• Industry standard (generic)• •Products that are available without brand name• Market grade• •Rated on pre-determined benchmarks• Material and manufacturing method• •Specific materials and precise manufacturing process• prescribed• Tolerances• •Acceptable deviations• Part drawing/part specification• •Drawings explained in text• Finishes• •Statement of specific look, feel or appearance• 
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PERFORMANCE SPECIFICATION
Standard Defined
“Level of quality accepted as norm; a level of quality or excellence that is accepted as the norm or by which actual attainments are judged.”
Source: The Public Procurement Dictionary of Terms, 2008
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STANDARDS• Similar products used repetitively• Similar conditions• Similar functions• Similar applications• Similar characteristics• Subject to mass production• Available on short notice
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STANDARDIZATION PROGRAM• Methodology and process• Establishes physical and functional• characteristics• Reflects uniform or common
appearance, application or functionality
• Simplifies inventory
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STANDARDIZATION BENEFITS• Fewer varieties• Larger quantities• Volume discounts• Reduces time for sourcing and
competing• Reduces inventory• Better inventory control• Reduces operational and
administrative costscc: ninahale - https://www.flickr.com/photos/94693506@N00
STANDARDS ORGANIZATIONS• Develop internationally agreed product
standards• •Underwriters Laboratories (UL)• •Canadian Standards Association (CSA)• •American National Standards Institute
(ANSI)• •International Organization for
Standardization (ISO)• •ASTM International (Materials
standards and testing)
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STANDARDS COMMITTEE• Identify, evaluate and select
products and components for organization’s overall requirements
• Broad-based membership• Formed by policy or charter• Has top-level support
cc: Jonathan Thorne CC - https://www.flickr.com/photos/69356033@N00
TYPES OF SPECIFICATIONS• Design• Performance• Combination• Brand name or approved equal• Qualified products list (QPL)• Regulatory and testing agency• Restrictive (proprietary)
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DESIGN SPECIFICATION
GETTING WHAT YOU NEED
THE KEY TO QUALITY ACQUISITION• Begins with end user• Accurate and concise description of
product• or service• Suppliers rely on description• Must be reasonable; not overly
restrictive• Must allow for competition
cc: Ian Sane - https://www.flickr.com/photos/31246066@N04
Best Value
“an assessment of the return which can be achieved based on the total life cycle cost of the
item; may include an assessment of the functionality of the item; can use cost/benefit analysis to define the best combinations of
quality, services, time and cost considerations over the useful life of the acquired item. A
procurement method that emphasizes value over price. The best value might not be the
lowest cost.”
Source: Public Procurement Dictionary of Terms, 2008
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Statement of Work Defined
“The portion of a contract or Request for Proposal that describes specifically what is
to be done by the contractor. It may include specifications, performance
outcomes, dates and time of performance, quality requirements, etc.”
Source: The Public Procurement Dictionary of Terms, 2008</div>
cc: f∞lish kamina - https://www.flickr.com/photos/19696550@N04
WRITING STATEMENT OF WORK• Purchasing, end user and support
functions collaborate• Objectives identified• Quantitative background information
provided• Specific outcomes or deliverables
defined• Evaluation criteria established• Schedule for completion included• Address administrative and legal issues
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VALUE ANALYSIS• Value is lowest end cost to
accomplish a function• Establish cross-functional team• Accumulate facts• Identify knowledge required• Efficient knowledge search• Apply creative skills• Apply precise evaluation skills
cc: Q u e n t i n ² - https://www.flickr.com/photos/27704102@N03
Value Analysis
“An organized effort directed at analyzing the functions of a product or service including specifications, standards,
practices and procedures with the intent to satisfy the required functions at the lowest possible cost without impacting
functional need and suitability.”
Public Procurement Dictionary of Terms, 2008</div>
cc: zhouxuan12345678 - https://www.flickr.com/photos/53921113@N02
Value Analysis
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Value Engineering
“A technique by which contractors may (1) voluntarily suggest methods for performing more economically and may share in any resulting savings or (2) be required to establish a program or identify and submit methods for performing more economically.”
Public Procurement Dictionary of Terms, 2008
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VALUE ENGINEERING
GOALS OF PROCUREMENT PROCESS
• Equity• Integrity• Efficiency• Economy• Transparency
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BUYING PLAN• Plan for each major category• Timing• Market stability• Analyze demand• Analyze supply• Know sources
cc: Thomas Hawk - https://www.flickr.com/photos/51035555243@N01
GOALS OF PROCUREMENT PROCESS• Delegation of authority• Law of Agency• Accountability• Promotion of domestic industry• Foster socio-economic objectives• Reliability• Effectiveness
cc: SeeMidTN.com (aka Brent) - https://www.flickr.com/photos/94502827@N00
FIRST ACTIONS BY PURCHASING• Review cost center and accounting
information• Affirm spending authority• Review terms and conditions,
desirable• requirements, delivery, etc.• Review feasibility of solicitation
process• Dictated by policy and procedures
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OBJECTIVES• Goals of strategic sourcing• Methods of identifying sources• Sourcing strategy• Market research• Partnering
cc: Paco CT - https://www.flickr.com/photos/71088059@N00
MARKET RESEARCH• Collect and analyze information• Availability of suitable items• Common practices• Legal/regulatory requirements• Reliability of product• Distribution and support• Capabilities of companies• Best time for solicitation
cc: heipei - https://www.flickr.com/photos/97859317@N00
MARKET RESEARCH TOOLS• Historical Prices Paid (Best)• •Low Risk, the price was already
determined F&R by a• CO• •May not exist if it is a unique project• •GSA Advantage• Price databases – Price Point• • https://gsa.xsb.com/• CALC – GSA’s Professional Services hourly
rate database• Google
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SOURCING STRATEGY• Competitive• Non-competitive
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SOURCING QUESTIONS• Multiple suppliers?• Delegated authority and value of• procurement?• Amount of risk/uncertainty?• Availability of specifications?• Need by date?
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ELEMENTS OF SOURCING MODEL• Cost• Complexity• Uncertainty• Risk• Supplier availability
cc: CIMMYT - https://www.flickr.com/photos/44760652@N05
METHODS OF SELECTING SOURCE• Emergency purchase• •High cost/high risk• Reverse auction• •High cost/low risk• Small purchases• •Low cost/low risk• Purchase card (PCard)• •Low cost/low risk
cc: Rev. Xanatos Satanicos Bombasticos (ClintJCL) - https://www.flickr.com/photos/31355686@N00
METHODS OF SELECTING SOURCE• Request for proposal (RFP)• •High cost/high risk• Invitation to negotiate• •High cost/high risk• Request for information (RFI)/expression of
intent (REI)• •High cost/high risk• Request for statement of qualifications
(RFSQ)• •Low cost/low risk• Request/invitation for quotations
(IFQ/RFQ)• Low cost/low risk
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LOCATING SOURCES• Qualified vendor list• Published directories• Industry publications• Sales literature• Word of mouth• Vendor expos• Internet research
cc: Alexandra*Rae - https://www.flickr.com/photos/22261474@N08
CREATING SUPPLIER LISTS• Commodity code/classification• •Suppliers listed by items furnished
(SAM)• Self registry• •Supplier volunteers company
information• Pre-qualification• •Procurement office seeks
company informationcc: Glyn Lowe Photoworks. - https://www.flickr.com/photos/65354164@N02
SUPPLIER INFORMATION• Company size• Past experience• Financial stability• Management• Procedures• Bonding capacity• References• Locations• Key individuals• Socio-economic status• Commodities/services furnished
METHODS OF SOLICITATION• Determined after
requirement analysis• Policy establishes thresholds• Procurement plans• Market conditions
cc: AndreasPoike - https://www.flickr.com/photos/88798523@N02
OBJECTIVES• Competition’s value and obstacles• The impact of electronic technology
on planning and sourcing• The need for formal planning, sourcing
and evaluation strategies• The importance of procurement in the
public sector• Moving beyond the details of the
process
cc: Bogdan Suditu - https://www.flickr.com/photos/8726888@N08
STRATEGIC PROCUREMENT PLAN• Involves relevant stakeholders• Practical, action-oriented• Examines internal and external
factors• Allocates resources• Identifies challenges• Assigns responsibility• Establishes evaluation and
monitoring processcc: Michele Ficara Manganelli - https://www.flickr.com/photos/23471159@N06
VALUE OF COMPETITION• A fiduciary responsibility• Public scrutiny of government
spending• Fairness to the supplier community• Learn about new products and
services• Encourage socially and
economically disadvantaged to participate in marketplace
cc: AdamKR - https://www.flickr.com/photos/15593996@N08
COMPETITION NEEDS• Full disclosure of public needs• Award based on information in
solicitation• Fair treatment of all participants• Avoid bias and conflicts of interest• Professionals dedicated to the
public interest• Objective evaluation and rejection
based on stated criteriacc: ktgeek - https://www.flickr.com/photos/33003841@N00
BARRIERS TO COMPETITION• Inadequate market research• Pre-selection of suppliers• Lack of planning• Unauthorized commitments• No independent/arms length
transaction• Comfort with previous suppliers• Collusion and fraud
cc: MattysFlicks - https://www.flickr.com/photos/68397968@N07
OBJECTIVES• Legal issues• Administrative instructions• General terms and conditions• Special terms and conditions
COMPARISON OF PUBLIC AND PRIVATE CONTRACTS
• Private• •Prepared document presented by one
party• •Each party sends document with
differing conditions• •Both parties negotiate to define terms• Public• •Purchase order sent based on vendor
prices• •Solicitation includes terms and
conditions• •Negotiation on limited number of issues
cc: matthewreid - https://www.flickr.com/photos/25630000@N05
SOURCING DOCUMENT• Instructions to bidders• General terms and conditions• Special terms and conditions• Specifications/Statement of
Work• Response form• Appendices
cc: Filippo C - https://www.flickr.com/photos/83513840@N00
GENERAL TERMS AND CONDITIONS• Governing law and compliance• Safety and health• Ownership & intellectual property• Disclosure, confidentiality and
public information• Indemnity• Policy compliance• Infringement
cc: Sir. Mo - https://www.flickr.com/photos/33791380@N08
EXAMPLE OUTLINE OF UNIFORM CONTRACT FORMAT
COMMON TERMS• Acceptance• Rejection• Force Majeure• Non-waiver• Funding• Financial conditions• Non-Collusion
cc: KCIvey - https://www.flickr.com/photos/17218700@N00
COMMON TERMS• Amendments and withdrawals• Error in response• Error in pricing• Dispute resolution• Disqualification• Termination for convenience• Performance and default
cc: Horia Varlan - https://www.flickr.com/photos/10361931@N06
SPECIAL TERMS AND CONDITIONS• Unique to a specific solicitation• Pricing• Cost reimbursement• Method of award• Risk management• Financial• Shipping and Delivery• Performance• Reporting• Warranty• Product-related• Other administrative issues
cc: snacktime2007 - https://www.flickr.com/photos/53282124@N00
EXAMPLES OF SPECIAL TERMS AND CONDITIONS
• Leasing• Hazmat Testing• FAA Compliance• Local Ordinances and Codes• Fire and Life Safety• Environmental Preservation• Sound and Light Pollution
Minimizationcc: Presidio of Monterey: DLIFLC & USAG - https://www.flickr.com/photos/38345529@N05
TERMS AND CONDITIONS SOURCES IN LAW
• Common law• Uniform Commercial Code
(UCC)• Public Contract Law and Code
of Federal Regulations
cc: Scott* - https://www.flickr.com/photos/83049159@N00
METHODS OF SOLICITATION• Competitive quotations• •Lower dollar threshold• •Smaller quantity• •Less formal• Competitive sealed bids• •Higher dollar threshold• •More complex requirement• •Formal steps• •More time
cc: 401(K) 2013 - https://www.flickr.com/photos/68751915@N05
METHODS OF SOLICITATION• Competitive sealed proposals• •Complex procedures• •Lengthy process• •For technical or high value requirements• •Negotiation• Sole source• •When competition determined not
available• Small purchases• •Low dollar threshold• •Informal procedures and processes• •Delegated to user
cc: ScoRDS - https://www.flickr.com/photos/61005109@N06
PARTNERSHIP CONSIDERATIONS• Core (inherently government) or
auxiliary service• Hard vs. soft skills• Stand-alone or inter-related• Industry segmentation• Private sector interest• Private sector competitiveness• In-house interest/competitiveness• Political pressures
cc: worldwaterweek - https://www.flickr.com/photos/53569401@N04
SOLICITATION PROCESS• User identifies need• Specific requirements identified• Requirements approved by
authorized official• Funding source verified• Purchase request submitted
cc: davide.tarasconi - https://www.flickr.com/photos/35761379@N00
TYPES OF CONTRACTS• Fixed price• Purchase orders• Cost reimbursable
cc: ewen and donabel - https://www.flickr.com/photos/85979850@N00
DECISION CRITERIA• Responsiveness• Responsibility• Price• Value
cc: ores2k - https://www.flickr.com/photos/63379251@N00
TERM CONTRACTS• Based on historical data• Large quantities• Repetitively used items• Source delivers as needed over
time• Users order directly from supplier• Alternative to warehousing
cc: Uli Harder - https://www.flickr.com/photos/54037354@N00
PURCHASE OR DELIVERY ORDERS• One-time purchase• Small requirements• Unusual circumstance• Emergency• Volatile market• Timing is important
cc: sean dreilinger - https://www.flickr.com/photos/43927576@N00
DEALING WITH THE SERVICE CONTRACT ACT
• Exempt (Professional) vs. Non-Exempt (Wage Grade) Employees
• Non-Exempt Employees must be• paid at a minimum the wage rate
listed on the Federal wage rates http://wdol.gov/dba.aspx
cc: Roger Blackwell - https://www.flickr.com/photos/10630857@N04
RFQ’S, RFPS, RFIS• RFQ is usually used for purchasing
products. It’s used for stand alone, less than SAT procurements and schedule buys, requires SOW for service over $2500
• RFP is used for services, contains a SOW, it seeks a total cost for services, and is more detailed than an RFQ
• RFI seeks information, not fundedcc: vxla - https://www.flickr.com/photos/14812197@N00
OBJECTIVES• Essential elements of
documents• Optional elements of
documents• Checklists for completion• Conflicts of interest• Supporting information
cc: Daniel Kulinski - https://www.flickr.com/photos/7729940@N06
SEALED PROPOSAL ISSUES• Competitors may offer modifications
of content and price before award• Parties may negotiate within scope
of RFP and response• Process takes time• Decision must be based on pre-
published criteria• Price considered along with other
pre-established factors
cc: zappowbang - https://www.flickr.com/photos/72794895@N00
BID/PROPOSAL CLARIFICATION• Pre-Bid Conference• •Announced in solicitation document• •Clarify specifications• •Allow inspection of work site• Pre-Proposal Conference• •Discuss scope, objectives and
techniques• •Clarify issues with scope of work• •Allow Recommendations for
improvement• •Assure request is competitiive
cc: Derek K. Miller - https://www.flickr.com/photos/95601478@N00
UNAMBIGUOUS DOCUMENTS• Requirements stated plainly,
logically and chronologically• Include graphics• No jargon• “Shall” for mandatory; “May” for
optional• Active voice• Verbs identify activity clearly:
“analyze,” “attend,” “auditcc: ilConte - https://www.flickr.com/photos/67165432@N00
UNAMBIGUOUS DOCUMENTS• Avoid “and/or,” “any” and “either”
because of possible conflict with intent• Replace pronouns and nouns that may
be misinterpreted• Be consistent with technical terms• Avoid catch-all phrases• Spell out acronyms and abbreviations
the first time used with abbreviated version in parentheses
• Eliminate loopholes and ambiguities
cc: jon.t - https://www.flickr.com/photos/8402476@N04
COMPONENTS OF PROPOSAL FORMAT• Instructions• •Number of copies• •List of pages where signature required• •List of affidavits• •Implications of late submission• Cover letter• •Overview of submission• Technical proposal• •Details of offer to provide requested
goods/services• Proposed pricing• •Complete details of price to furnish items
requested
cc: tobiastoft - https://www.flickr.com/photos/30656616@N02
COMPONENTS OF PROPOSAL FORMAT• Exceptions and variances• •Bidder must identify all deviations
from entity’s• request• Required attachments• •Certificates of insurance• •Bonds• Conflict of interest form• •Statement of non-collusion with
other bidderscc: colemama - https://www.flickr.com/photos/33901022@N00
Conflict of Interest
“A clash between the public interest and the private pecuniary interest of the
individual concerned....situations where contractors or public officials may obtain a benefit from a public contract....may result in a breach of ethics or ethical code. Actual
or Perceived Conflict of Interest: Any action, decision or recommendation by an agent or public official... (perceived to be of) private pecuniary benefit or detriment
of the person or person’s relative.”cc: CarbonNYC [in SF!] - https://www.flickr.com/photos/15923063@N00
OPTIONAL COMPONENTS• Executive summary• Bidder profile and information• Project approach and work
plan• Sub-contracting and alliances• List of sub-contractors
cc: We have moved! Please visit /highwaysengland - https://www.flickr.com/photos/45393120@N07
OPTIONAL COMPONENTS• References• Financial guarantees• Ineligibility of responses• Agreement documents• Checklist
cc: chunghow33 - https://www.flickr.com/photos/80964197@N00
PRE RFP CONFERENCES• Useful if a walk through of the site is
necessary• Can be conducted by conference call• Offerors are instructed that no answers
given at the conference are final until they are issued as an amendment
• Amendment may or may not extend RFP close date. Amendment is issued to all offerors, not just those who attended
cc: Patrick Gage - https://www.flickr.com/photos/26231875@N00
OFFER ANALYSIS• Check to be able to register in
SAM• Check EPLS when you receive the • offer and before you award• Conduct financial review• Get current Open Ratings• www.PPEReports.com
cc: archer10 (Dennis) (62M Views) - https://www.flickr.com/photos/22490717@N02
DETERMINE COMPETITIVE RANGE• Competitive range is a range of the
most qualified offers for a competitive procurement
• Establish the competitive range based on the ratings of each proposal against all evaluation criteria
• The CO may limit the number of proposals in the range to the number that will permit an efficient competition among the most highly rated proposals
cc: B Tal - https://www.flickr.com/photos/68634595@N00
PRE-NEGOTIATION MEMORANDUM• Not required by FAR• Lays out plan for negotiation, usually
contains• •Market research• •Summary of scope of products and
services• •Price analysis• •Responsibility Determination• •Negotiation objectives• Price Analysis• •Vertical• •Horizontal
cc: MorboKat - https://www.flickr.com/photos/52734530@N06
GOOD THINGS TO KNOW ABOUT DEALING WITH SBA
• If you have to go for a CoC with the SBA...
• •Try to talk the company out of it, it’s a lot more vigorous than the Financial Responsibility check you did, and % fail
• A company can grow to be a large business while in the 8(a) Program...
• •The period is 9 years, and they can be awarded up to $100M 9n government contracts. CO’s like to use them
cc: Andy.Schultz - https://www.flickr.com/photos/63262340@N00
DEALING WITH THE SBA (CONT.)• Because they are an approved sole source exemption (FAR 3.02)• Woman-owned Small Business, Service- Disabled, Vetran-Owned Small Business and• 8(a) Business can all have procurements set- aside, HUB Zone cannot (preference)• Woman-owned Small Business certification process is difficult to use for• Contract Specialists• Because they are an approved sole source exemption (FAR 3.02)• Woman-owned Small Business, Service- Disabled, Vetran-Owned Small Business and• 8(a) Business can all have procurements set- aside, HUB Zone cannot (preference)• Woman-owned Small Business certification process is difficult to use for • Contract Specialists
cc: Philip Taylor PT - https://www.flickr.com/photos/9731367@N02
SUPPLIER SELECTION ACTIVITIES• Check stock (Do we have it in
already?)• Method of purchase• Solicitation/sourcing• Bids/proposals• Tabulate offers• Evaluate proposals• Prepare contract
cc: edwbaker - https://www.flickr.com/photos/76439735@N00
REVIEWS AND APPROVALS• CO must review and sign Pre-
Negotiation Memorandum prior to CS entering negotiations
• Some high dollar value or high visibility procurements may require a review panel or board approval prior to negotiating
• Reviews and Approvals set at each agency, not proscribed by the FAR
cc: hjl - https://www.flickr.com/photos/92605333@N00
TYPES OF AUTHORITY• Spending (expenditure) authority (Purchase
CC)• Permission to spend up to designated limit• Commitment (contract) authority (Warrant)• •Permission to commit funds to 3rd party• Certification and acceptance authority (COR)• •Receive, inspect, test and validate delivery• Payment authority (Finance)• •Disburse funds (checks) against a contract or PO• ACO or TCO• •Some agencies have these, others are “cradle to grave”
cc: vgm8383 - https://www.flickr.com/photos/9147703@N03
TYPES OF AUTHORITY• Apparent• •Assumed because of practice• Express• •Formally designated by law or other
controlling• policy (CO’s warrant)• Implied• •Perceived by another• Delegated• •Given by a principal to an agent (COR)
cc: DragonDrop - https://www.flickr.com/photos/12007971@N00
NEGOTIATIONS• Determine a high, medium and low
position• Low position is what is offered• Medium position is what you really
think is achievable• High position is what you would really
like to get• Never press for such a good deal the
vendor is going to lose money (reverse auction)
cc: CSIS: Center for Strategic & International Studies - https://www.flickr.com/photos/31447736@N06
PRICE NEGOTIATION MEMORANDUM• PNM is required by FAR (15.808)• It has the 5W’s of the negotiation• It is prepared by the CS and
approved by the CO (may be the same person)
• Use a Final Proposal Revision letter to clarify and get vendor to commit to negotiated pricing, terms and conditions
• Incorporate FPR into the contractcc: USCPSC - https://www.flickr.com/photos/39259750@N02
ELEMENTS OF CONTRACT• Offer and acceptance• •Promise to do something• •Promise to comply• Definiteness• •Material terms• •Enforceable• Consideration• •Something of value from both
partiescc: mariadelajuana - https://www.flickr.com/photos/72933117@N07
ELEMENTS OF CONTRACT• Mutuality of obligation• •Both parties bound• Capacity of the Parties• •Authority to enter binding
agreement• Legality of purpose• •Does not violate law or policy
cc: European Southern Observatory - https://www.flickr.com/photos/51207680@N04
SOME BASIC ITEMS THAT BEAR REPEATING...
• Award cannot be made to a DBA, must be in the name of the primary company
• Award cannot be made unless the vendor has the NAICs code listed in the solicitation
• Check to see if the vendor has a remittance address
• FOB Destination or Origin• Prompt pay terms
cc: weesen - https://www.flickr.com/photos/36317426@N00
DEALING WITH OFCCP• Clearance required for contracts
expected to exceed $10M• Most large businesses are already
approved, you can search for them at:• •• http://www.dol-esa.gov/preawvery
reard/pa_reg.html• They are very reluctant to issue
findings about non-compliant vendors
cc: sandklef - https://www.flickr.com/photos/63114905@N06
CONTRACT ADMINISTRATION ACTIVITIES
• Receive goods/services• Payment• Modify contract• Disposal
cc: angela7dreams - https://www.flickr.com/photos/58117789@N00