HOW TO POLISH YOUR SKILLS AS A FEDERAL GOVERNMENT CONTRACT SPECIALIST

THE PROFESSIONAL 1102 ©

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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

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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

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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)

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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

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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

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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

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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

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STRATEGIC PROCUREMENT PLANNING

• Profile of baseline information• Risks

• Markets• Forecasts• Capacity of procurement

department• Procurement performance

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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

conference call in real life

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

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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.

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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

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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

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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>

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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

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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>

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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

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GOALS OF PROCUREMENT PROCESS• Delegation of authority• Law of Agency• Accountability• Promotion of domestic industry• Foster socio-economic objectives• Reliability• Effectiveness

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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

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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

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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

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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

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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

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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

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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

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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

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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

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GENERAL TERMS AND CONDITIONS• Governing law and compliance• Safety and health• Ownership & intellectual property• Disclosure, confidentiality and

public information• Indemnity• Policy compliance• Infringement

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EXAMPLE OUTLINE OF UNIFORM CONTRACT FORMAT

COMMON TERMS• Acceptance• Rejection• Force Majeure• Non-waiver• Funding• Financial conditions• Non-Collusion

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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

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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