1 where do i find it in the contract? understanding government contracts for the property manager:...
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Where Do I Find it in the Contract? Understanding Government
Contracts for the Property Manager: Part 1 of 2 C-200-INT
NPMA
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What is a Contract
Black’s Law Dictionary: “An agreement, enforceable by law, between two or
more parties, to do or not do something not prohibited by law, for a legal CONSIDERATION.”
Federal Government procurement contracts are governed by the Federal Acquisition Regulations (FAR).
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What is a Contract FAR
FAR 2.101 definition: “A mutually binding legal relationship that
obligates the seller to furnish supplies or services (including construction) and the buyer to pay for them.”
FAR – Federal Acquisition Regulation DFAR – Department of Defense Supplement
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Contract Types
The type of contract we enter into is based on the level of risk.
The lower the customer risk the higher the contractor fee.
As customer risk goes up fee goes down
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What’s the Process?
Requirement identified and documented
Request for Proposal / Quote (RFP or RFQ)
Type of contract specified here
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What’s the Process?
Analysis of RFP/RFQ – Proposal development and submission
Negotiation (maybe) sole source, competitive, sealed bid
issuance of contract /purchase order
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Types of Contracts
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Fixed Price
FFP – Been there done that – we have produced this item or a similar item in the past.
Contractor carries most risk ( ^ Higher contractor fee expectation)
Low (customer) risk / High contractor fee
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Cost Reimbursable and T&M
CP / T&M – New development or a complex modification
Customer carries most risk ( v lower contractor fee expectation)
Higher (customer) risk / lower contractor fee
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Contract Type and Property
Cost – Normally the customer owns everything products and material
Fixed price – Normally the customer only owns specific defined deliverables
Wild card - Commercial Contracts and Subcontracts
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Where to find it in the contract
PART I - THE SCHEDULE SECTION B - Supplies or Services and Price/Costs What SECTION C - Description/Specifications/Work Statement How SECTION D - Packaging, Marking and Shipping
SECTION E - Inspection and Acceptance SECTION F - Deliveries or Performance Where and When SECTION G - Contract Administration Data Property SECTION H - Special Contract Requirements PART II - CONTRACT CLAUSES
SECTION I - Contract Clauses Property Clauses PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER
ATTACHMENTS SECTION J - List of Attachments Property list
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Shall – Should – May ???
Shall - means the imperative – must do
Should - means an expected course of action or policy that is to be followed unless inappropriate for a particular circumstance
May - denotes the permissive
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First page of the contract
Contract Number Who it is from - Who it is to Defense Priorities & Allocations System
(DPAS) rating (DX, DO, none) Start Date Contract Value
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Who are we and where do we live
Who– DUNS Number / Central Contractor Registration– Tax ID
Where do we live– CAGE Code (could be down to building)
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Property – We’re here to help
Just what are we delivering? – Know the product
Where is it being produced? Know where and how the item is manufactured
Who is making it – Know the people
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Part of the problem or part of the solution?
Work with the programs – explain what is required then ask how you can help
Carrot or the stick?
“You need to give me” vs. “where can I find”
Know the customer (internal and external)
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More Information
The Government Contracts Reference Book: A Comprehensive Guide to the Language of Procurement, Third Edition, Soft coverRalph C. Nash, Jr., Karen R. O’Brien-DeBakey, Steven L. Schooner, Vernon J. Edwards
Written by noted government contracting experts, The Government Contracts Reference Book provides clear explanations of both general and agency-specific terms from the Department of Defense, General Services Administration, Department of Energy, NASA and others followed by a summary of where the term is used in the statutes or regulations dealing with the procurement process. Organized in an easy-to-use alphabetical format and fully cross-referenced, this essential reference will help you procure goods and services efficiently and with confidence.
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Questions