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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

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

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