Welcome to CON 090 -2

Contract Planning in the FAR

Reminder: Our Overall Course Design

• 4 Modules of Instruction – Module 1

• Contracting Overview: FAR 1-4, 32-39, 41, 52, 53

– Module 2

• Contract Planning: FAR 5-12, 16,19, 22-26

– Module 3

• Contract Formation: FAR 13-15, 17, 18, 30-31

– Module 4

• Contract Administration: FAR 27-29, 32, 33, 42-51

Module 2 – Contract Planning Learn the policies and procedures associated

with acquisition planning • Market research, methods of procurement, contract

types, and socio-economic requirements

• Required sources of supply

• Contractor responsibility

• Small Business assistance

• Pricing arrangements (as pertains to contract type)

• Competition in Contracting Act (CICA)

• Synopsis, pre-solicitation requirements

Some of the FAR’s Guiding Principles “All members of the Team are required to employ planning as an integral part of the overall process of acquiring products or services. Although advance planning is required, each member of the Team must be flexible in order to accommodate changing or unforeseen mission needs. Planning is a tool for the accomplishment of tasks, and application of its discipline should be commensurate with the size and nature of a given task.”

“The Government must not hesitate to communicate with the commercial sector as early as possible in the acquisition cycle to help the Government determine the capabilities available in the commercial marketplace.” -- FAR 1.102-2(a)

(and be sure to read OFPP’s “Myth-Buster” memos on the

Academy’s CON 090 Student Resources web page.)

4

A “Given”

A well-planned procurement will be structured

to comply with the numerous acquisition laws and regulations

as well as to obtain the goods or services

needed by the agency.

5

Role of Contract Planning

The goal of acquisition planning:

• Issue a solicitation that is clearly written to obtain the best value for the Government.

– Avoid repeated amendments to the solicitation and wasteful clarifications and discussions during the process of selecting the winning contractor.

– Enable the agency to award a substantial portion of its contracts without conducting discussions – with commensurate savings of time and resources by both the agency and the competing offerors.

6

9 Lessons in Contract Planning Lesson Topic

1 Acquisition Planning

2 Required Sources of Supplies and Services

3 Competition Requirements

4 Contracting Methods

5 Contracting Types

6 Special Contracting Methods

7 Describing Agency Needs

8 Publicizing Contract Actions

9 Socioeconomic Programs

Let’s do a quick review of these 9 lessons …

Lesson 1 – Acquisition Planning

• What acquisition planning consists of – FAR 2.101

• What market research is and how you conduct it – FAR 10.001

• Eight definitions of a commercial item – FAR 2.101

• When acquisition planning should begin – FAR 7.104(a)

• Written acquisition plans – FAR 7.103(e)

• Availability/non-availability of commercial items – FAR 10.002(d)(1)&(2)

Lesson 2 – Required Sources of Supplies and Services

• Priorities for use of Government supply and services sources – FAR 8.002(a)(1) and (2)

• Interagency acquisition, multi-agency contract (MAC) and Governmentwide acquisition contract (GWAC) – FAR 2.101

• Small business, small disadvantaged business, women-owned small business, HUBZone small business, veteran-owned small business, and service-disabled veteran-owned small business –

FAR 19-202-1

Lesson 3 – Competition Requirements

• A primary goal of acquisition planning: promoting and providing for “full and open competition” –FAR 6.101(a) and FAR 7.105(b)(2)

• Seven situations where the use of full and open competition after exclusion of sources is authorized – FAR 6.202-208

• Contracting without providing for full and open competition – FAR 6.301-302

• Set-asides (including partial set-asides) and sole source – FAR Part 19

Lesson 4 –Contracting Methods • The competitive procedures – FAR 6.102

– Sealed bidding – FAR 6.401(a)

– Evaluation factors – FAR 14.101

– Competitive proposals – FAR 6.401(b)

– Best value – FAR 15.101

– Tradeoff process and LPTA source selection processes – FAR 15.101-1&2

– Two-step sealed bidding – FAR 14.502

– Simplified acquisition procedures – FAR 13.003

– A&E contracts – FAR 36.601-3(b)

– BAA with peer or scientific review – FAR 35.016(a)

Lesson 5 – Contracting Types

• Contractor responsibility for the cost of performance and profit incentive – FAR 16.101

• Policies for selecting contract types – FAR 6.102

• Two broad categories: fixed-price contracts and cost-reimbursement contracts – FAR 16.101

– Six types of fixed-price contracts and five types of cost-reimbursement contracts – FAR 16.302-306 and FAR 16.202-207

– Characteristics and use of cost-reimbursement contracts, incentive contracts, time and materials contracts, and letter contracts – FAR 16.301, 16.401, 16.601, 16.603-1

Lesson 6 – Special Contracting Methods

• Multiyear contract – FAR 17.103, 17.105-2

• Contract options – FAR 2.201 and 17.202

• Indefinite delivery contract – FAR 16.501-2

• Indefinite quantity contract – FAR 16.504

• Delivery order and task order contracts – FAR 16.501-1

• Requirements contract – FAR 16.503

Lesson 7 – Describing Agency Needs

• Design and performance specifications

• Order of precedence for requirements documents – FAR 11.101

• Performance-based acquisition – FAR 2.101, FAR 37.102

• Bundling – FAR 2.101, FAR 7.107

Lesson 8 – Publicizing Contract Actions

• Policy for publicizing contract actions – FAR 5.002

• Governmentwide point of entry – FAR 2.101

• Methods of disseminating information – FAR 5.101

• Publicizing and response time – FAR 5.203

Lesson 9 – Socioeconomic Programs

• Davis-Bacon Act – FAR 22.403-1

• Walsh-Healey Public Contracts Act – FAR 22.602

• Service Contract Act of 1965 – FAR 22.1002-1

• The Buy American Act – FAR 25.101

• The Trade Agreements Act – FAR 25.402

• Balance of Payments Program – DFARS 225.7501

• Foreign products/services DoD is restricted from acquiring – DFARS Subpart 225.70

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M T W Th F

Introduction to

Contract

Planning

Acquisition

Planning

Required

Sources

(Homework)

Competition

Requirements

Quiz #3

Contracting

Methods

Contract

Types

Quiz #4

(Homework)

Special

Contracting

Methods

Quiz #5

Describing

Agency

Needs

Publicizing

Contract

Actions

(Homework)

Socio-

Economic

Programs

Quiz #6

(Study for

Exam)

Exam #2

Begin Module

3:

Contract

Formation

The Module 2 Schedule

Page 5 of Module 2 of Student Guide.

Assignments, Homework, and Quiz Planning

See activity and homework details on page 6 of Module 2 of Student Guide.

Lesson FAR Parts Topic Activities / Estimated Time

1 7,10,11,12 Acquisition Planning

In-class Exercises – 1 ½ hours

2

8

Required Sources In-class Exercise – 1 ½ hours

Homework: 1) Complete Lesson 3 Questions -1 ½ hours;

2) Memorize titles and part numbers to FAR Parts 1-26

3

6

Competition Requirements In-class Exercise - 1 ½ hours

CON 090 Quiz #3

4 16 Contracting Methods In-class Exercise - 1 ½ hours

5

16,17

Contract Types

In-class Exercise - 1 ½ hours

CON 090 Quiz #4

Homework: 1) Complete Lesson 6 Questions -1 ½ hours;

2) Memorize titles and part numbers to FAR Parts 1-33

6 19-26

Special Contracting Methods In-class Exercise - 1 ½ hours

CON 090 Quiz #5

7 28, 32 Describing Agency Needs In-class Exercises - 1 ½ hours

8

9

Publicizing Contract Actions In-class Exercise - 1 ½ hours

Homework: 1) Complete Lesson 9 Questions -1 ½ hours;

2) Memorize titles and part numbers to FAR Parts 1-41

9

5

Socioeconomic Programs In-class Exercises - 1 ½ hours

CON 090 Quiz #6

Homework: Study for CON 090 Exam #2