1 The FAR and Beyond! Federal Acquisition Regulation S. Brent Owens Procurement Center Representative 2 3 4 5 The FAR…Friend or Foe? 6 The FAR is Your Friend! Get to Know it “Life is tough… It’s tougher if you’re stupid” John Wayne 7 The FAR is Your Friend! • Used by all Federal Executive agencies (supplies/services) • Promotes fairness in the process • Everyone plays by the same rules • Applicable to Government officials , Contractors and the taxpayer (Implemented in 1984 with the goal of creating a uniform structure for federal contracting) 8 The FAR is Your Friend! • Implements laws, regulations, policies (CICA, SBA, SCA, BAA, Drug Free Workplace, Work hrs, Brooks Act…) • Covers all phases of the Acquisition Cycle • Satisfy customer in terms of cost, quantity, delivery • Fulfill public policy objectives 9 Federal Solicitations/Contracts Provisions Clauses Forms 10 Federal Solicitations/Contracts Provisions Clauses Forms 11 12 FAR Organization • Table of Contents Volume 1 (Parts 1-51); Volume 2 (Parts 52-53) A. B. C. D. E. F. G. General Acquisition Planning Contracting Methods/Contract Types Socioeconomic Programs Special Categories of Contracting Contract Management Clauses and Forms • Topical Index 13 Parts of the FAR (A part for everything!) 1. 2. 3. 4. FAR System Definitions Conflicts of Interest Administrative Matters 5. Publicizing 6. Competition Requirements 7. Acquisition Planning 8. Required Sources of Supply 9. Responsible Contractors 14 Parts of the FAR (A part for everything!) 10.Market Research 11.Describing Needs 12.Acquisition of Commercial Items 13.Simplified Acquisition Procedures 14.Sealed Bidding 15.Contracting by Negotiating 16.Types of Contracts 17.Special Contracting Methods 18.(Reserved) 15 Parts of the FAR (A part for everything!) 19.Small Business Programs 20.(Reserved) 21.(Reserved) 22.Labor Laws 23. Environment, Conservation, Occupational Safety, and Drug Free Workplace 24. FOIA 16 Parts of the FAR (A part for everything!) 25. Foreign Acquisition 26. Other Socioeconomic Programs 27.Patents, Data, Copyrights 28.Bonds & Insurance 29.Taxes 30.Cost Accounting 31.Cost Principles 32.Contract Financing 33.Protests, Disputes, Appeals 34.Major Systems Acq 17 Parts of the FAR (A part for everything!) 35.R&D Contracting 36.Construction & A&E Contracting 37.Services Contracting 38.Federal Supply Schedule 39.Acquisition of Information Resources 40.(Reserved) 41.Utility Services 42.Contract Administration 18 Parts of the FAR (A part for everything!) 43.Contract Modifications 44.Subcontracting Policies 45.Government Property 46.Quality Assurance 47.Transportation & Packaging 48.Value Engineering 49.Termination of Contracts 50.Extraordinary Contractual Actions 19 Parts of the FAR (A part for everything!) 51.Use of Government Sources by Contractors 52.Solicitation & Contract Provisions & Clauses 53. Forms 20 21 FAR Numbering (FAR Part 1.105-2) 22 FAR Numbering (example) Part 19 Small Business Programs Subpart 19.5 Set-Asides for Small Business Section 19.502 Setting Aside Acquisitions Subsection 19.502-1 Requirements for... 23 FAR Supplements (The FAR and Beyond) There are Agency Acquisition Regulations Too! • Referred to as “Supplements” • Implement or supplement the FAR • Coincide with the same Parts of the FAR • Numbering is similar but with unique prefixes for each agency 24 FAR Supplements (examples) Department Prefix Supplement Defense (DoD) Air Force Army 2 53 51 DFARS AFFARS AFARS Veterans Affairs Interior Agriculture 8 14 4 VAAR DIAR AGAR 25 FAR Supplements (numbering example for DOD Supp ) Part 219 Small Business Programs Subpart 219.5 Set-Asides for Small Business Section 219.502 Setting Aside Acquisitions Subsection 219.502-1 Requirements… 26 FAR Supplements (numbering example for DOI Supp ) Part 1419 Small Business Programs Subpart 1419.5 Set-Asides for Small Business Section 1419.502 Setting Aside Acquisition Subsection 1419.502-1 Requirements… 27 FAR Supplements (FAR and AFFARS example) 19.704 -- Subcontracting Plan Requirements. (a) Each subcontracting plan required under 19.702(a)(1) and (2) must include – (1) Separate percentage goals for using small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteranowned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns as subcontractors; 5319.704 Subcontracting Plan Requirements (a) (1) Small Business subcontracting goals must be expressed in terms of percent of contract value in addition to percent of subcontracted amount. 28 FAR and Supplements (Numbering Examples) Prefix Part Subpart Section Subsection FAR - 19 19.5 19.502 19.502-1 DFARS 2 219 219.5 219.502 219.502-1 AFARS 51 5119 5119.5 5119.502 5119.502-1 VAAR 8 819 819.5 819.502 819.502-1 DIAR 14 1419 1419.5 1419.502 1419.502-1 AFFARS 53 5319 5319.5 5319.502 5319.502-1 29 FAR Provisions/Clauses Part 52 of the FAR and all Supplements • If the citation begins with 52.2 then you are looking at a provision/clause • Agency Supplements also contain provisions and clauses • Clause numbers identify the applicable FAR part 30 Provisions/Clauses (examples) Citation No Regulation Applicable FAR part 19 52.219-14 FAR 252.217-7008 DFARS 17 1452.233-2 DIAR 33 31 52.219-27 Notice of Total Service Disabled Veteran-Owned Small Business Set-Aside 32 FAR Clause Logic 52.219-27 Notice of SDVOSB Set-Aside 19.1407 Clause required as prescribed by… 19.1405 SDVOSB Set Aside Procedures… 33 52.219-27 -- Notice of Service-Disabled Veteran-Owned Small Business Set-Aside. As prescribed in 19.1407, insert the following clause: Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (Nov 2011) (a) Definition. “Service-disabled veteran-owned small business concern”-………………………………………………………… ………………………………………………………… (End of Clause) 34 19.1407 -- Contract Clauses. The contracting officer shall insert the clause 52.219-27, Notice of Service-Disabled VeteranOwned Small Business Set-Aside, in solicitations and contracts for acquisitions that are set aside or reserved for, or awarded on a sole source basis to, service-disabled veteran-owned small business concerns under 19.1405 and 19.1406… 35 19.1405 -- Service-disabled Veteran-owned Small Business Setaside Procedures. (a) The contracting officer-(1) Shall comply with 19.203 before deciding to set aside an acquisition under the SDVOSB Program; (2) May set-aside acquisitions exceeding the micro-purchase threshold for competition restricted to SDVOSB concerns when the requirements of paragraph (b) of this section can be satisfied; and (3) Shall consider SDVOSB set-asides before considering SDVOSB sole source awards (see 19.1406) or small business set-asides (see Subpart 19.5). (b) To set aside an acquisition for competition restricted to servicedisabled veteran-owned small business concerns, the contracting officer must have a reasonable expectation that-(1) Offers will be received from two or more service-disabled veteranowned small business concerns; and (2) Award will be made at a fair market price. 36 Unique Government Clauses 52.249-x 52.243-x 52.233-1 52.232-x 52.246-x 52.211-x 52.211-x Termination for Default/Convenience Contract Changes Disputes/Claims Payments Inspection and Acceptance Liquidated Damages Specifications 37 Small Business Clauses 52.219-1 52.219-6 52.219-8 52.219-9 52.219-11 52.219-14 52.219-27 52.219-28 52.219-30 Small Business Program Representations Notice of Total Small Business Set-Aside Utilization of Small Business Concerns Small Business Subcontracting Plan Special 8(a) Contract Conditions Limitations on Subcontracting* Notice of SDVOSB Set-Aside Post Award Small Business Rerepresentation Notice of Set-Aside for WOSB* *Changes forthcoming… 38 39 Uniform Contract Format (FAR 15.204-1) Part I – The Schedule (A-H) Part II – Contract Clauses (I) Part III – List of Documents, Exhibits, Attachments (J) Part IV – Representations & Instructions (K-M) 40 UCF-Part I The Schedule A. Solicitation/contract form B. Supplies/Services, prices/costs C. Description/Specifications/SOW D. Packaging and marking E. Inspection and acceptance F. Deliveries or performance G. Contract administration data H. Special contract requirements 41 UCF-Part II Contract Clauses I. Contract Clauses • Many clauses are standard and in most contracts…(usually by reference only) • Some are unique and specific such as: – – – – Type of Contract / Pricing Arrangements Options Limitations on Subcontracting Progress Payments 42 UCF-Part III List of Documents, Exhibits, Attachments J. List of Attachments • • • • Drawings/Diagrams Statement of Work Performance Work Statement Wage Determinations (Generally no FAR clauses are identified in this section of the solicitation/contract) 43 UCF-Part IV Representations and Instructions K. Representations and certifications L. Instructions to offerors M. Evaluation factors for award Critical to understand all requirements within sections L&M!! 44 45 Where’s the FAR? Electronic Versions available: http://farsite.hill.af.mil http://acquisition.gov/far Hard copies available: Various publishing companies Code of Federal Regulations-Title 48 46 FAR Updates “Limitations on Subcontracting” 52.219-14 (Current) Services: 50% of the labor costs Supplies: 50% of the labor costs Construction: 15% or 25% of the labor costs 52.219-14 (Proposed) Services: 50% of the contract (also includes *SB subs) Supplies: 50% of the contract (also includes *SB subs) Construction: TBD *”Similarly Situated status at any tier” 2013 NDAA 47 FAR Updates “Non Manufacturer Rule” 52.219-6(d) (Current) Non Manufacturer Rule applicable on contracts exceeding $25,000 52.219-6(d) (Proposed) Non Manufacturer Rule applicable on contracts exceeding $150,000 2013 NDAA 48 FAR Updates “Notice of Set-Aside for WOSB” 52.219-30 (Current) Set asides available to all eligible WOSB (competition limited to eligible WOSBs) Self Certification 52.219-30 (Proposed) Sole source awards to WOSB will become available Formal Certification will be required 2015 NDAA 49 FAR Updates “Mentor-Protégé Program” (Current) • Limited to only 8(a) business development program participants (Proposed) • Open to all small businesses • Would allow small business proteges to joint venture with their large business mentors… 2013 NDAA 50 51 52 Contact Information S. Brent Owens U.S. Small Business Administration Government Contracting, Area VI 6038 Aspen Ave, Building 1289 CE Hill AFB, UT 84056-5805 (801) 775-4141 brent.owens@hill.af.mil 53