SOLICITATION DEVELOPMENT (RFP) & FEDERAL ACQUISITION REGULATIONS (FAR) OVERVIEW PRESENTED BY The Acquisition Institute Inc. MORNING (AM)—FAR OVERVIEW Understanding the FAR, clauses and provisions Clauses/provisions Q&A period AFTERNOON (PM)—SOLICITATION DEVELOPMENT Developing an IFB or RFP Asking the Right Questions Contract types—with your solicitation (how it affects outcomes) Request for Proposal (RFP) Process diagramed What an RFP contains and why—The Uniform Contract Format Assessing Risk—Should firms respond to an RFP? Why? Reviewing the RFP document requirements-what’s good or bad 1 Described legal requirements of what vendors are expected to do is based on what’s described in the Government Solicitation. Impacts how a firm proposes to perform work if awarded a Government grant, contract or agreement. Controls or impacts the systems, procedures, or processes vendors use to produce products or deliverables….for government. Government Directives Congressional Role ◦ General legislation (e.g., Procurement Integrity Act, 41 U.S.C. 423) ◦ Annual Appropriations Acts ◦ General Accountability Office The FAR System: ◦ Title 48 of the Code of Federal Regulations (CFR) which has 57 Chapters ◦ The FAR is Chapter 1 of Title 48 CFR Legislation passed ends up being codified in the FAR and becomes the basis for procurement. It is an ongoing process… 2 The FAR System ◦ Title 48 of the Code of Federal Regulations ◦ 57 Chapters and the FAR is Chapter 1. The FAR Numbering System 3.104-3 Part Subpart Section Subsection Agency FAR Supplements ◦ Supplement citations combine CFR Chapter number and corresponding FAR section. Example: FAR 16.402-2 216.402-2 AFARS 5116.402-2 DFARS How to Keep Current ◦ http://www.farsite.hill.af.mil or ◦ http://www.acquisition.gov/far/ 3 How to Determine if a Clause, Provision or Form Should Be Included in the Contract ◦ FAR Matrix (FAR 52.301) ◦ FAR Prescription of Clauses (e.g., 15.209) ◦ FAR Prescription of Forms (e.g., FAR 15.210) Numbering System for Clauses and Provisions 52.215-1 Clause/Provision number Indicates FAR Indicates FAR subpart Subpart 52.2 Applicable FAR Part Clause/Provision Number Applicable FAR Part FAR Matrix (Acronyms) 4 15.209 -- Solicitation Provisions and Contract Clauses. When contracting by negotiation (Part 15) -(a) The contracting officer shall insert the provision 52.215-1, Instructions to Offerors -- Competitive Acquisition, in all competitive solicitations where the Government intends to award a contract without discussions, etc….. (b) (1) The contracting officer shall insert the clause at 52.215-2 Audit and Records-Negotiation (10 U.S.C. 2313, 41 U.S.C. 254d, and OMB Circular No. A-133), in solicitations and contracts except those for -(i) Acquisitions not exceeding the simplified acquisition threshold, etc 5 “Guiding Principles” (1.102) FAR Conventions (1.108) ◦ Delegation of authority. Each authority is delegable unless specifically stated otherwise ◦ Imperative sentences. FAR deviations (1.4) Determination and Findings (D&F) ◦ Subpart 1.7 describes how to document decisions required by statute or regulation as prerequisite to taking certain contracting actions. Part 2 definitions apply throughout FAR Definitions applicable only to a Part or Subpart are included in the relevant Part or Subpart Applicable to contracts via the “Definitions Clause” (52.202-1) Some examples: ◦ ◦ ◦ ◦ “agency head” “contracting activity”, “must” and “shall” “United States” 6 Safeguards (3.1) ◦ Certificate of Independent Pricing ◦ The Procurement Integrity Act Procurement Integrity (3.104) Contractor Gratuities (3.2) – Not always obvious! Reporting Suspected Antitrust Violations (3.3) Contingent Fees (3.4) Other Improper Business Practices (3.5) ◦ Buying-in ◦ Subcontractor Kickbacks ◦ Restrictions on subcontractor sales Voiding Contracts for Violations (3.7) Protection for Whistleblowers (3.9) Contractor Code of Business Ethics and Conduct (3.10) Preventing Personal Conflicts of Interests (3.11) 7 Contract Execution (4.1) Contract Distribution (4.2) Paper documents (4.3) Safeguarding Classified Information Within Industry (4.4) Electronic Commerce in Contracting (4.5) Contract Reporting (4.6) Contractor Record Retention (4.7) Government contract files (4.8) Taxpayer ID number (4.9) Contract Line Items (4.10) System for Award Management (SAM) (4.11) Representations & Certifications (4.12) Personal Identity Verification (4.13) Reporting Executive Compensation (4.14) American Recovery and Reinvestment Act— Reporting Requirements (4.15) Unique Procurement Instrument Identifiers (PIID) (4.16) Service Contract Inventory (4.17) 8 Dissemination of information (5.1) Synopsize proposed contract actions over $25K at: www.fbo.gov (5.2) Synopsize contract awards (5.3) Release of Information (5.4) Paid Advertisements (5.5) Multi-Agency Use Contracts (5.6)-- ◦ Increases competition and assists small businesses www.contractdirectory.gov (govt wide database of contracts) Publicizing Requirements Under the American Recovery and Reinvestment Act of 2009 (5.7) Full and Open (6.1): The Default Rule Full and Open Competition After Exclusion of Sources (6.2) Other than Full and Open Competition (6.3) Sealed Bidding vs. Competitive Proposals (6.4) Competition Advocate (6.5) 9 Acquisition Plans (7.1) The Building Blocks for the RFP and resulting contract award. Economic Order Quantities (7.2) Contractor vs. Government Performance (7.3) ◦ OMB Circular A-76 (May 2003) ◦ The Federal Activities Inventory Reform (FAIR) Act Equipment Lease vs. Purchase (7.4) Inherently Governmental Functions (7.5) Excess Personal Property (8.1) Federal Supply Schedules (8.4) Acquisition of Helium (8.5) Federal Prison Industries (8.6) Acquisition from Non-profit agencies Employing people Blind and Severely Disabled (JWOD Act) (8.7) Acquisition of Printing and related supplies (8.8) Leasing of motor vehicles (8.11) 10 Responsibility (9.1) ◦ Preconditions for award ◦ General and special standards Qualification Requirements (9.2) First Article Testing and Approval (9.3) Suspension, Debarment & Ineligibility (9.4) ◦ http://epls.arnet.gov ◦ Certification requirements (52.209-5, 52.209-6) ◦ “Compelling Reason” exception (9.405) Organization and Consultant Conflicts of Interest (OCI) (9.5) (Refer to 9.505). Contractor Team Arrangements (9.6) Part 10 – Market Research ◦ Why do it? ◦ Who does it? ◦ How is it done? Part 11 – Describing Agency Needs ◦ ◦ ◦ ◦ ◦ Order of precedence (11.101) Describing needs in terms of specs, SOW/PWS/SOO Acceptable materials requirements Liquidated damages Priority and allocation system (DPAS) 11 Subparts 11.1 Selecting & Developing Requirements Docs 11.2 Using & Maintaining Requirements Docs 11.3 Acceptable Material 11.4 Delivery or Performance Schedules 11.5 Liquidated Damages 11.6 Priorities and Allocations (DPAS) 11.7 Variation in Quantity 11.8 Testing General Requirements (12.1) ◦ Applicability ◦ “Deemed” commercial items (12.102(f), (g)) Special Requirements (12.2) Commercial Item Provisions and Clauses (12.3) Unique Requirements regarding Terms and Conditions (12.4) List of Inapplicable Laws (12.5) Streamlined Solicitation and Evaluation Methods (12.6) 12 Scope of Part 13 (13.000) Procedures (13.1)--Legal effect of quotations Purpose For and Description of Procedures Actions at or below Micro-purchase Threshold (13.2) ◦ Under $2500--Government Purchase Card is preferred Simplified Acquisition Methods (13.4) Fast Payment Procedures (13.5) Commercial item test program (13.5) Use of Sealed Bidding (14.1) ◦ Once the preferred method of procurement ◦ Only FFP or FP/EPA contract types Solicitation of Bids (14.2) Submission of Bids (14.3) ◦ Responsiveness ◦ Timeliness Opening Bids and Awarding the Contract Two-Step Sealed Bidding: Part 1 RFP and Part 2 is call for sealed bid. 13 Phase I: Pre-solicitation Planning Process EFFORT BEGINS Receive PR Commercial Item PART 12 MARKET Research NONCommercial Item Acquisition Planning (FAR 7.0) Phase II: Solicitation Preparation and Release Process Issue Synopsis FEDBIZOPS Solicitation Preparation & Source Selection Planning (M) Develop PWS and QASP Issue Solicitation RFP and Source Selection Road Map Solicitation Timeline Phase III: Proposal Evaluation & Negotiation CLOSING DATE Final Proposal Revision AWARD W/O DISCUSSIONS EVALUATION Hold Discussions Set the Competitive Range Phase IV: Source Selection and Award Final Evaluation Source Selection by CO / SSA Notifications & Debriefings* Maybe hold more Discussions CONTRACT AWARD 14 Source selection processes & techniques (15.1) ◦ Low price/technically acceptable ◦ Tradeoff ◦ Oral presentations Solicitation and Receipt of Proposals (15.2) Exchanges with Industry (handout pre-award communication) Request for Proposals Contract format (UCF) Uniform Contract Format Part I- The Schedule (A through M) Part II- Contract Clauses Part III -- List of Documents, Exhibits, and Other Attachments 15.204-5 - Part IV -- Representations & Instructions 15.204-1 15.204-2 15.204-3 15.204-4 - Industry response to Request for Information (RFI) ◦ Why is this important? Any ideas? Industry response to Draft Performance Work Statement (PWS) ◦ Why is this important? Industry response to Draft RFP Actual Industry response to RFP once released ◦ Why is this important? Again, another chance to correct mistakes ◦ Off to the races!! Now it’s up to PARSONS Everything rests with Industry Competition but if the government writes a BAD PWS or Solicitation contractors cannot make it ok. 15 Industry Best Practices has adopted the following PWS outline Section C-1 Background Section C-2 Acronyms and Definitions Section C-3 Government Furnished Property Section C-4 Contractor Furnished Property Section C-5 Work or Tasking Descriptions Section C-6 Technical Publications Section C-7 Attachments or Technical Exhibits The above format is just a guide-not set in concrete! Some of the traditional ways to do this include issuing "sources sought" type notices at FEDBIZOPPS; holding Industry Days; issuing Requests for Information (RFI); and holding pre-solicitation conferences. Some work some don’t. 16 Contact with vendors and suppliers for purposes of market research is now encouraged. FAR 15.201(a) specifically promotes the exchange of information "among all interested parties, from the earliest identification of a requirement through receipt of proposals." Exchange of Information can take place right up until the Competitive Range is established PART I - THE SCHEDULE Section A Solicitation/Contract Form Section B Supplies or Services And Price/Costs Section C Description/Specification/Statement Of Work Section D Packaging And Marking Section E Inspection And Acceptance Section F Performance Section G Contract Administration Data Section H Special Contract Requirements PART II - CONTRACT CLAUSES Section I Contract Clauses—per the FAR PART III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS Section J List Of Attachments PART IV - REPRESENTATION AND INSTRUCTIONS Section K Representations, Certifications And Other Statements Of Offerors Section L Instructions, Conditions, And Notices To Offerors Section M Evaluation Factors For Award 17 VENDOR POINT OF VIEW: WHEN REVIEWING AN RFP consider: ◦ What Contract Type is contemplated? Can be trouble if you accept the wrong type ◦ How are Contract Line Items (CLINS) structured? Sometimes payment is problematic by the CLINs and how they are funded. ◦ PWS Tasking clear or loosely worded? When ambiguities abound, it cuts both ways! ◦ PWS Workload realistic or unrealistic? Exist at all? It one of the biggest issues we have with service contracts. ◦ When a PWS or RFP looks really bad—WALK AWAY WHEN REVIEWING AN RFP (Solicitation): ◦ Section B (The Pricing Schedule) you must see how the Govt. desires for you to submit your quote or pricing. If it is FFP, all the risk is on the vendor, if CR, all the risk is on the government, and somewhere in between there are many hybrids and you must weigh the risk with each contract type and CLIN structure. ◦ Section C (actual Performance Work Statement) if you haven’t fully understood everything that the Program Manager and CO put in the RFP, you could be missing something very crucial that your firm is expected to do on the very 1st day of work- this can get you into real hot water with the Government. ◦ Section D (about packaging and marking), if you screw this up you might just have to foot the bill for expensive re-packaging or marking to better meet required Government packaging or marking standards. ◦ Section E (Inspection & Acceptance), you need to be aware of how the Government QA team will monitor and access the quality of your work…do it wrong and you’ll have costly re-work and nasty little Contracting Officer Representative (COR) reports going to the KO about your performance. 18 WHEN REVIEWING AN RFP: ◦ In Section F (Deliveries or Performance) it may not seem problematic, but delivery of goods to the wrong place or at the wrong time and you’ll be in hot water with the Government KO and PM. ◦ Section G (Contract Administration data), there is very important info on the who, when, where and why of submitted invoices, and other unique administrative issues the KO and COR have to properly monitor the contract, such as Contractor submittals and Certifications of Work, Reports, etc. ◦ Section H-(Special Contracting Requirements) this is an area everyone must pay attention to because it is the catch all of the solicitation. Bonding, Security Requirements, Ordering Procedures, Contract Type, ADR process, Advertising of Award, SB SubK Plan, etc. ◦ Section I- (Contract Clauses) you must pay particular attention to the non-routine clauses that can come back to haunt you such asGovernment property management, Liquidated Damages, Hazardous Material ID, Other Contract Terms & Conditions, SCA, DBA, etc. ◦ READ AND KNOW THE CLAUSES-THERE IS NO EXCUSE WHEN REVIEWING AN RFP: ◦ Section J (List of Attachments). This area contains MANY documents that can directly impact your company’s bottom line and how you’ll do work. Maps, layouts, workload, special requirements, special tooling, equipment listings, mandatory directives, and applicable laws, etc…can all be found here (or should be). Failure to read and understand what is listed in Section J, and you’ll suffer the consequences. Ignorance of the RFP is no excuse in the Federal Claims Court. ◦ Section K- (Representations & Certifications) Today most businesses have placed their Certs & Reps online at “ORCA”. Make sure what you have indicated is factual. Penalties exist for falsification. ◦ Section L- (Instructions, Conditions and Notices to Offerors) is probably one of the MOST IMPORTANT areas in an RFP. Here are but a few of the issues that come into play: 19 WHEN REVIEWING AN RFP: ◦ SECTION M- (Evaluation Factor for Award) is the MOST IMPORTANT areas in an RFP. Here are but a few of the issues that come into play: PASS / FAIL METHOD NUMERICAL AVERAGING STANDARDIZED SCORING ON POINT SYSTEM SCORING AND COLOR CODING HYBRID SCORING ETC… LESS COMPLEX IS BETTER ◦ Source Selection Requirements (15.3) ◦ Mandatory evaluation factors include: past performance, quality, cost and price, % small business participation, etc. ◦ Award on initial proposals-Is authorized if contractors are advised of this possibility in the Request for Proposals (e.g., 52.215-1) ◦ Exchanges with offerors include clarifications, communications and discussions (15.306). ◦ Competitive range-includes all the most highly rated proposals, unless the contracting officer reduces the number for efficiency ◦ Submission of final revised proposals-occurs when the contracting officer determines that the discussions process has been completed (BAFOS) ◦ The source selection decision-must represent the Source Selection Authorities independent judgment. 20 Contact pricing and the Truth in Negotiations Act (TINA) (15.4) ◦ Negotiated contracts and mods over $650K ◦ Unless and exception applies ◦ Cost analysis vs. price analysis Notice requirements and debriefings (15.5) ◦ Pre-award debriefing process (15.505) ◦ Post-award debriefing process (15.506) Unsolicited proposals (15.6) Selecting the contract type (16.1) Fixed-price contract types (16.2) ◦ Firm-Fixed Price ◦ Firm-Fixed Price w/EPA ◦ Fixed-Price Redeterminable Cost-reimbursement contract types (16.3) ◦ CPFF ◦ Cost Sharing ◦ Cost Incentive contracts: FPIF, FPAF, CPAF, CPIF 21 Indefinite delivery contract types (16.5) ◦ Definite quantity ◦ Requirements ◦ Indefinite quantity Time and materials (T&M), labor-hour and materials Letter contracts (16.6) REFER TO YOUR CONTRACT MATRIX HANDOUT Factors to consider in selecting and negotiating contract type include: A firm-fixed-price contract is suitable for acquiring commercial items or for acquiring other supplies or services on the basis of reasonably definite functional or detailed specifications when fair and reasonable prices can be established when -◦ (a) There is adequate price competition; ◦ (b) There are reasonable price comparisons with prior purchases of the same or similar supplies or services made on a competitive basis or supported by valid cost or pricing data; ◦ (c) Available cost or pricing information permits realistic estimates of the probable costs of performance; or ◦ (d) Performance uncertainties can be identified and reasonable estimates of their cost impact can be made, and the contractor is willing to accept a firm fixed price contract. 22 Part 17 – Special Contracting Methods Multi-year contracting (17.1) Options (17.2) Leader Company (Sole producer) Interagency acquisitions (e.g., the Economy Act) (17.5) ◦ Management and Operating (M&O) contacts (used by the Department of Energy) (17.6) ◦ ◦ ◦ ◦ Part 18 (Reserved) – What does this mean? Size standards: http://www.sba.gov/size/sizetable2002.html Policies How small business status is determined. Set aside requirements Certificates of Competency (COCs) Small business subcontracting requirements Use of price evaluation adjustment factors Small Disadvantaged Business (SDB) Program HubZone, VOSDB, VOSB, 8a, WOSB, Native 23 Labor Policies (22.1) Contract Work Hours & Safety Standards Act (22.3) Labor Standards for Contracts Involving Construction (22.4) Walsh-Healy Public Contracts Act (22.6) Equal Employment Opportunity (22.8) Ever hear of the Davis-Bacon or Service Contract Acts? Non-Discrimination Because of Age Service Contract Act of 1965 ◦ Service contracts over $2500 ◦ http://www.wdol.gov/sca.aspx Professional Employee Compensation Veterans, workers with disabilities and children A very useful website for keeping track of the labor law requirements is: http://www.dol.gov/esa/whd/contracts/index.htm 24 Purchases of environmentally-preferred products and services encouraged (23.2, 23.7) Hazardous material identification (23.3) Use of recovered materials encouraged (23.4) Drug-free workplace (23.5) Notice of delivery of radioactive material (23.6) Reporting requirements for contractors and the Government (23.9, 23.10) Part 24 – Protection of Privacy and Freedom of Information Part 25 – Foreign Acquisitions ◦ Buy American Act: Supplies and Construction ◦ Trade Agreements are an exception ◦ Evaluating foreign offers ◦ Trade sanctions and prohibited sources http://www.treas.gov/offices/enforcement/ofac/sdn/t11 sdn.pdf Part 26 - Other Socio-Economic Programs 25 Part 27 - Patents, Data and Copyrights ◦ ◦ ◦ ◦ General policy: Allow contractors to benefit Patents Patent rights under Government contracts Rights in data and copyrights Part 28 – Bonds and Insurance Part 29 - Taxes Located at FAR Appendix Provide for standardized method of accumulating and allocating costs Key concepts: ◦ CAS Covered Contract ◦ Full Coverage – all CAS apply ◦ Modified Coverage – CAS 401, 402, 405 and 406 CAS administration ◦ Disclosure Statement ◦ Adjust contracts for CAS changes 26 Applicability of Part 31 (31.1) Contracts with commercial organizations (31.2) ◦ Direct vs. indirect costs ◦ Elements of allowability ◦ Specific categories of costs discussed Contracts with educational institutions (31.3) Contracts with State, Local, and Federally Recognized Indian Tribal Governments (31.6) Contracts with non-profit organizations (31.7) Non-commercial item financing (32.1) Commercial item financing (32.2) Loan guarantees for defense work (32.3) Advance payments for non-commercial items 32.4) Progress payments based on costs (32.5) ◦ ◦ ◦ ◦ Customary (80%/85%) Unusual (higher percentage than customary) Loss adjustments are possible Risk of loss 27 Collecting debts from contractors (32.6) Contract funding (32.7) Assignment of claims (32.8) Prompt Payment Act (32.9) ◦ Invoice vs. financing payments ◦ When is a payment “late” ◦ Interest accrues automatically Performance Based Payments (32.10) Protests (33.1) ◦ Agency protests ◦ GAO protests ◦ Protests to the courts (rarely used) Disputes and Appeals (33.2) ◦ ◦ ◦ ◦ The Contract Disputes Act (CDA) of 1978 Submission of a “claim” Contracting Officer’s “Final Decision” OH NO YOU DIDN’T!! 28 Part 34 – Major Systems Acquisition ◦ General guidance and policy described ◦ More extensive coverage in agency regulations ◦ Title III contracting for national defense 34.1 Testing, Qualifications and Use of Industrial Resources under Title III, Defense Production Act ◦ Requires Competition ◦ Concept Exploration-Demonstration-Full Scale Development-Full Rate Production Part 35 - Research & Development Contracting ◦ Used when goal is to advance knowledge, instead of obtain a specific item or service ◦ Negotiated costs-reimbursement contracts are generally used ◦ Government oversight of subcontractor selection Part 36 – Construction and Architect-Engineer Contracts ◦ Unique aspects of construction contracting ◦ Design-Build contacting procedures Part 37 – Service Contracting ◦ Other specific Parts (e.g., Part 35) take precedence (37.000) ◦ Advisory and Assistance Services (37.2) ◦ Performance Based Contracting (37.6) Part 38 - Federal Supply Schedule Contracting 29 Part 39 - Acquisition of Information Technology ◦ Modular contracting preferred ◦ Section 508 compliance required to ensure access by persons with disabilities (see http://www.section508.gov Part 41 – Acquisition of Utility Services ◦ GSA issues utility services acquisition policy ◦ GSA has area wide contracts for use by Federal agencies that provide a pre-established contractual vehicle for ordering utility services ◦ GSA has delegated authority to DoD and DOE The Corporate Administrative Contracting Officer CACO (42.6) Indirect cost rates (42.7) Disallowance of costs (42.8) Bankruptcy (42.9) Novation (42.12) ◦ Novation agreement when contractor wants Government to recognize a successor in interest Issue arises when contractor transfers substantially all of its assets to another. 30 Stop Work Orders (42.13) Contract Performance Information (42.15) ◦ What is evaluated? (42.1501) ◦ Provides data for past performance evaluation http://www.ppirs.gov ◦ Contractor is provided 30 days to respond Forward Pricing Rate Agreements (42.17) General Guidance ◦ Bilateral vs. unilateral modifications ◦ Contractor notification requirements (43.104) Change Orders (42.2) ◦ ◦ ◦ ◦ Contractor must continue working, unless _____ Change order accounting if over $100,000 Only the CO can Modify or change READ the Clause 31 ◦ Consent to Subcontracts depends on whether a contractor has an approved purchasing system or not. Required for CR, T&M, LH, Letter contracts when no approved Purchasing System. Notification Requirements ◦ Contractor Purchasing System Reviews (CPSR) Generally conducted every three years Subcontracts for Commercial Items encouraged General Policies (45.1) Competitive Advantage Issues (45.2) ◦ How it arises ◦ Contracting Officer’s responsibility Providing GP to Contractors (45.3) Contractor Use and Rental of GP (45.4) A Huge problem area for Govt and vendors but has improved greatly over the last 10 years. 32 Management of GP in Contractor’s Possession (45.5) ◦ Contractor maintains the official record ◦ Contractor must conduct “periodic” inventories ◦ Maintenance obligations Reporting, Redistribution and Disposal of Contractor Inventory (45.6) ◦ Provides screening and disposition guidance ◦ Risk of loss depends on contract type Contract Quality Requirements (46.2): Inspection methods must be reasonable in relation to criticality and complexity of performance inspected Contract Clauses (46.3) Government Contract Quality Assurance (46.4) Acceptance (46.5) Warranties (46.7) Contractor Liability for Loss or Damage to property of the Govt. (45.8) 33 Contracts for Transportation (47.2) or for Transportation-Related Services Transportation in Supply Contracts (47.3) Air Transportation by US Flag carrier (47.4) Ocean Transportation by US Vessel (47.5) Voluntary Program ◦ Incentive approach ◦ Contract specifies “share in savings” Involuntary Program ◦ Requirement specified in contract ◦ Contractor reimbursed 34 General Principles (49.1) ◦ Formal notice required for all termination actions ◦ Contractor duties (49.104) Termination of Fixed-Price Contracts (49.2) Termination of Cost-Reimbursement Contracts (49.3) Termination for Default (49.4) ◦ Effect on contractor ◦ Government’s right to excess reprocurement costs ◦ Conversion to T4C Contract Termination Clauses (49.5) Contract Terminatin Forms and Formats (49.6) ◦ Form are mandatory ◦ Formats are “suggested” 35 Part 50 – Extraordinary Contractual Actions ◦ If essential to national defense, law allows contract adjustments that would not be otherwise authorized ◦ Authority to approve actions over $50,000 may not be delegated below the secretarial level ◦ Indemnification for “unusually hazardous or nuclear risks” Part 51 – Use of Government Sources by Contractors Now that you understand what goes into a SOLICITATION (A-M) let’s take a look at what you must do to have a successful RFP outcome. 36 SECTION C of the RFP provides firms with valuable information on what the Government wants accomplished with the contract work: ◦ Based on resources needed either Government Furnished or Contractor Furnished. ◦ Focused on the Outputs of Product or Service. ◦ Based on the value of performance risk involved. ◦ Based on Historical and projected information to estimate your costs and thus your price. The Attachments/Technical Exhibits include: ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Performance Requirement Summary Historical and Project Workload Required Reports Directives Layouts Examples Lays of the Land Contingency Actions Historical Data Configuration Data 37 Contractors can: ◦ ◦ ◦ ◦ 1. 2. 3. 4. Determine what it is the Govt needs accomplished Determine the skill sets and number of hours Develop equipment and facility estimates Compile a technical and cost proposal Section L of the RFP tell you how to assemble and what to submit with your Technical and Cost Proposal Section M tells how the vendor will be evaluated by the technical evaluation team This is crucial for training, and to live by during the actual source selection process as it will keep the Govt. from being protested or sued. Your ability to select the right contractor comes from the evaluation of technical proposals based on what you asked for in Section L, and what factors and sub-factors you stated the government was going to use per Section M. All vendor Technical proposals should be written in accordance with the instructions listed in Section L and based on Section M criteria in the RFP. 38 SECTION L-INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS Remember this: If the statement of work or PWS includes a specific task, and the contractor is not asked to discuss their experience in performing that task in Section L, then there is no way to properly evaluate the contractor’s solution. You must ask for what you need in SECTION L. SECTION L- INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFEROR will look something like this: L.15 PRICING PROPOSAL (VOLUME I) L.15.1 INSTRUCTIONS FOR COMMERCIAL OFFERORS PRICING L.15.2 INSTRUCTIONS FOR NON-PROFIT– PRICING L.16 TECHNICAL PROPOSAL (VOLUME II) 39 L.16.2 Staffing and Resumes Commercial Offerors shall submit resumes for the “key personnel” labor categories proposed in Section C, of the PWS at 5.2.1 and 5.2.2. What are the biggest issues here with Risk? L.16.6 PAST PERFORMANCE-As Related to Section M For purposes of determining the Government’s overall technical evaluation score, the score assigned for Past Performance shall be equal to the highest score received by any Private Sector offeror. (This only applies to public- private competitions). For all others, without Past Performance, a neutral score will be applied in relation to scoring provided others that propose. Ultimately those with good PP scores have a better chance of being found technically qualified, or highly qualified. 40 M.5 Price Evaluation M.5.3.1.1 Pricing The CO shall ensure that the proposed pricing is (1) calculated correctly (2) is in accordance with the prescribed format and attachment at TE (2a) at Attachment C; (3) is based on acceptable rates and cost factors prescribed by DCAA, or other acceptable standard cost factors in effect on the date of submittal. The CO shall ensure that the version submitted for such rates and factors were valid and in effect on the award decision date. Ensure that the individuals selected to serve on the Technical Evaluation Team, Source Selection Evaluation Team or Source Selection Evaluation Board have direct hands-on experience with the work that is being evaluated, are unbiased, and can maintain a professional demeanor and can be totally available throughout the source selection process. 41 ◦ Request for Proposal (RFP) Good FAA IT RFP Request for Proposal (RFP) Bad This will be a good time for each of you to ASK anything you want to know about the documents or processes. 42