Air Force Materiel Command
772 ESS
Lesson Learned
Briefing
Mrs. Sally Kite
772 ESS/PKA
21 Aug 13
Integrity  Service  Excellence
1
From “The 100 Worst”
From “The 100 Worst Mistakes in Government
Contracting” (NCMA 2008)
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Solicitation
Proposal Preparation and Submission
Defective Pricing and Truth in Negotiations Act
Subcontract Management
Contract Administration
Contract Disputes
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Solicitation
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Failure to Read Solicitation – “read it again, and again, and
again”
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Failure to Consider all Subsequent Amendments
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Scour the solicitation for ambiguities prior to submission of offer
Contractor has duty to seek clarification
Patent vs. Latent
Relying on Verbal vs. Written Instructions
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Read, consider, and formally acknowledge all amendments as part of the offer
Read solicitation to see if there are updates that you are responsible for (i.e. Davis-Bacon)
Material amendments must be formally acknowledged
Failure to Question Patent Ambiguities
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Due Date & Time/Delivery Instructions/Comply/Ask ??s
Not binding w/few exceptions (micropurchases, simplified acquisitions etc.)
Failure to Request a Debrief
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Request in timely fashion per guidance (i.e. FAR)
Learning Experience
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Proposal Preparation and
Submission
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Failure to Follow Instructions
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Base Offer on Evaluation Factors
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Get a receipt - if electronic – ask for read receipt
Allow for base access time (if applicable)
Violating Limitations on Subcontracting (FAR 52.219-14)
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All factors/subfactors along w/relative importance will be stated in RFP
Submit Offer on Time
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Comply w/everything
Services 50%, Supplies 50%; GC 15%, Construction (special trade) 25%
Expectation that Government will Hold Discussions
Failure to Understand the Importance of Past Performance
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Must be considered in every solicitation over SAT
All relevant information may be considered even if not provided directly by
offeror
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Defective Pricing and Truth in
Negotiations Act
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Failure to Understand Cost or Pricing Data
Truth in Negotiations Act (TINA)
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Cost or Pricing Data
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All facts prudent buyer would reasonably expect to significantly affect price
negotiations that were available at the time the contract’s price was agreed
to.
Must be certified as “accurate, current, and complete” as of date price
agreed upon
Other than cost or pricing data
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Requires contractors to furnish cost or pricing data before an agreement on
price for most negotiated procurements >$700,000.
Appropriate information on the prices at which same or similar items have
previously sold, and are adequate for determining reasonableness of price
Less onerous on the contractor
Defective cost or pricing
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Law provides for price reductions
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Subcontract Management
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Failure to Flow Down FAR Clauses to Subcontractors
Lessons Learned
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Pricing Arrangements
Prompt Payment
Notice of Withholding
Retainage
Manage your subcontractor/suppliers – gov’t would prefer not too
Failure to Include a Disputes Clause in the Subcontract
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Recommend that prime include specifically tailored dispute clause in
subcontract, including a statement that the subcontractor must continue
performance as directed by the prime contractor during the pendency of the
dispute.
Procedures for resolving disputes
Forum for Appeal
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Contract Administration
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Accepting Direction from Unauthorized Government Officials
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Following Oral Promises vs. the Written Contract
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Only Contracting Officer has authority
Ask for written delegation of authority
Ask for direction in writing
Courts historically find against contractor and deny claim if a contractor
takes direction form someone without authority
Only the written word is binding
Reliance on oral advice from unauthorized gov’t officials is at contractor’s
risk and the government is not bound by risk
Failure to Comply with Quality Control/Quality Assurance in the
Contract
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Contractor is responsible for quality control/quality assurance
Government is entitled to insist on strict compliance w/contract
specifications and may order the correction of nonconforming work at no
additional cost to gov’t
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Contract Administration
Continued
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Failure to Deliver on Time = Serious Consequences
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Failure to Submit a Proper Invoice
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Understand payment procedures and what constitutes a proper invoice
Government will only pay proper invoices (Prompt Payment generally
requires Gov’t to reject within 7 and pay proper invoice within 30 days)
Payment clauses applicable to contract normally very specific on format
Subcontractors must be paid within 7 days of prime receiving payment
Incurring Cost Before the Contract is Signed
Failure to Pay the Minimum Wage Benefits Required
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Loss of current contract (i.e. T4D)
Liability for excess re-procurement costs
Loss of future contracts (i.e. negative past performance)
Federal constructino over $2,000 or service contracts over $2,500 are
required to include minimum wage and fringe benefits
Wages also apply to subcontractors
Failure to Comply with the Limitations of Funds Clause
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Contract Disputes
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Failure to Submit a Proper Claim
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Proper claim must be in writing to CO
Must request final decision
Must be properly certified if over $100,000
Must include sum certain (cannot state “no more than, no less than”)
Failure to Request an Equitable Adjustment When Warranted
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Recommend requesting REA prior to submitting claim
If over $100,000 – must certify
CO has “reasonable period” to respond
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