Introduction to Contracting

M. Brenda HebertSenior Contract Manager, ORD

AO & Compliance TrainingFebruary 26, 2004

Basic Elements of a Contract

Legally enforceable

Requires at least 2 parties

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.

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.

CONTRACTS CAN ONLY BE ENTERED INTO AND

MODIFIED BY CONTRACTING OFFICERS.

Acquisition CyclePlanning 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.

Acquisition Planning Phase

Background InformationObjective/PurposeDelivery & Performance ScheduleIndependent Government Cost

Estimate- IGCEDelivery & Performance

Acquisition Planning Phase (cont’d)

Requirements Documents - SOW Recommended Sources &

Competition Technical Evaluation Criteria Funding Document Miscellaneous

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!

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.

Two Golden Rules:

“Brevity is the soul of wit.”

“If it is NOT written down, it didn’t happen.”

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

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

Contract Formation Phase

Determine type of contract to be used

Determine competition requirements

Evaluation of Proposals - Technical vs Cost

Award of Contract

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

The final step……

….and if you’re lucky, no bid protest….

Types of Contracts

Fixed Price Firm Fixed Price

Cost ReimbursementCost Reimbursement

Time & Materials (Labor-Hour)

Indefinite DeliveryDefinite QuantityRequirementsIndefinite Quantity

Types of Contracts (cont’d)

Contract Administration Phase

COTR monitors contract performance

Final close out

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

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

A Final Source of Information

ORD Contracting Staff

M. Brenda Hebert 202-254-0204Bridgett Ann Baer 202-254-0482

Greg Johnson202-254-0193