1 Click to add the title of your presentation Breakout Session # A18, CFCM FAR REVIEW 1 Name Jack R. Hott, CPCM, Fellow Manager, Contract Compliance Fluor-B&W Portsmouth LLC Date July 30, 2012 Time 11:15 AM – 12:30 PM

2 Session A18 Part 1; Federal Acquisition Regulations System Part 2; Definitions of Words and Terms Part 10; Market Research Part 6; Competition Part 9; Contractor Qualifications Part 12; Acquisition of Commercial Items Part 13; Simplified Acquisition Procedures Certified Federal Contracts Manager

3 Session B 18 Part 14; Sealed Bidding Part 15; Contracting By Negotiation Part 39; Acquisition of Information Technology Part 36; Construction and Architect-Engineer Contracts Part 19; Small Business Programs Part 29; Taxes

Certified Federal Contracts Manager 4 Session E18 Part 37; Service Contracting Part 22; Application of Labor Laws to Government Acquisitions Part 44; Subcontracting Policies and Procedures Part 45; Government Property Part 38; Federal Supply Schedule Contracting Part 42; Contract Administration and Audit Services Part 51; Use of Government Sources by Contractor

Certified Federal Contracts Manager 5 Session F18 Part 32; Contract Financing Part 34; Major System Acquisition Part 43; Contract Modifications Part 17; Special Contracting Methods Part 49; Termination of Contracts Part 24; Protection of Privacy and Freedom of Information Part 16; Types of Contracts

FAR Part 1, Federal Acquisition Regulations System 6 FAR 1.102; Guiding principals Deliver timely, best value to customers while maintaining the public’s trust and fulfilling public policy objectives How? Maximize use of commercial products and service Use Contractors who a record of good past performance Promote competition Minimize administrative operating costs Conduct business with integrity, fairness, and openness Fulfill public policy objectives Exercise of personal initiative and sound business judgment (see )

FAR Part 1, Federal Acquisition Regulations System 7 FAR Subpart 1.2; Administration Two councils( DAR Council and CAA Council must agree on all revisions) FAR Secretariat ( GSA supports, publishes and prints) FAR Subpart 1.3; Agency Acquisition Regulations Limited to those necessary to implement FAR policies Additional policies, procedures, provisions or clauses that supplement FAR to satisfy specific agency needs

FAR Part 1, Federal Acquisition Regulations System 8 FAR Subpart 1.6; Contracting Officers Contracting Officers have authority to enter into, administer, or terminate contracts No contract shall be entered into unless the CO ensures that all requirements of law, executive orders, regulations, and all other applicable procedures clearances and approvals have been met Unauthorized commitment & ratification A contracting officer's representative (COR) assists in the technical monitoring/administration of a contract

FAR Part 1, Federal Acquisition Regulations System 9 FAR Subpart 1.7; Determinations and Findings D&F is a special form of written approval by an authorized official that is required by statue or regulation as a prerequisite to take certain contract actions The “determination” is a conclusion or decision supported by the “findings” A D&F may be for a single contract action or a class of contract actions

FAR Part 1, Federal Acquisition Regulations System According to the FAR: a.An unauthorized commitment may be ratified as long as funds are available. b.The Contracting Officer is the ratification approval authority for actions up to $2,500. c.Agencies should take positive action to preclude the need for ratification actions. d.Proper delegation of micro-purchase authority eradicates any need for ratification procedures. ANSWER: _____SOURCE(S): FAR

FAR Part 2; Definitions of Words and Terms 11 FAR Subpart 2.0; Scope of Part Defines words and terms that are frequently used in the FAR Cross-references to other definitions in the FAR of the same word or term Provides for incorporation of these terms in solicitations and contracts by reference Other parts/subparts may define words/terms only applying to the part, subpart or section where it is defined

FAR Part 2; Definitions of Words and Terms 12 FAR Subpart 2.1; Definitions (Examples) Commercial Item means – Certified cost or pricing data means – Data other than cost or pricing data means – Micro-purchase means – Simplified acquisition threshold means – Inherently governmental function means –

FAR Part 2, Federal Acquisition Regulations System Which of the following is a commercial item? a. A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple state and local governments. b. An item that evolved from an item which has not been sold to the general public c. A commercial item that has received modifications not available in the commercial marketplace. d. A nondevelopmental item used exclusively for governmental purposes ANSWER: _____SOURCE(S): FAR 2.101

FAR Part 9; Contractor Qualifications 14 FAR Subpart 9.1 Responsible Prospective Contractors Adequate financial resources Comply with delivery/performance schedules Satisfactory past performance Necessary organization, experience, accounting controls Necessary production, construction, equipment, facilities Otherwise qualified and eligible to receive award Special standards Special standards may be particularly desirable for unusual expertise or specialized facilities needed for adequate contract performance

FAR Part 9; Contractor Qualifications 15 FAR Subpart 9.3; First Article Testing and Approval Contractor has not previously furnished the item Changes in processes or specifications Production discontinued for an extended period History of problems during product life Product is described by a performance specification FAR Subpart 9.4; Debarment/Suspension Agencies shall solicit offers from, award contracts to, and consent to subcontracts with responsible contractors only May continue contracts/subcontracts in existence at the time of debarment/ suspension

FAR Part 9; Contractor Qualifications 16 Subpart 9.5; Organizational Conflicts of Interest Management support services Consultant or other professional services Assistance in technical evaluations Engineering and technical direction May create an actual or potential conflict of interest on future acquisition Contracting Officers is required to – Identify/evaluate potential OCI Avoid, neutralize or mitigate significant potential conflicts before award

FAR Part 9; Contractor Qualifications 17 FAR Subpart 9.6; Contractor Team Arrangements Teaming arrangements may be desirable and the Government will recognize its validity provided the arrangements are identified and relationships fully disclosed in an offer or after submission before the arrangement becomes effective Does not limit the right to consent Does not relieve the prime contractor responsibility Does not limit policies on competitive contracting, subcontracting, and component breakout after initial production or at any other time

FAR Part 9; Contractor Qualifications Normally, testing and approval is appropriate in contracts for a. Research and Development. b. products requiring qualifications before award. c. products normally sold in commercial market. d. products requiring an approved first article to serve as a manufacturing standard. ANSWER: SOURCE(S): FAR 9.303

FAR Part 10; Market Research 19 When to conduct market research Before developing new requirements Before soliciting offers in excess of the SAT Before soliciting offers less than the SAT and adequate information is not available Before soliciting offers that could lead to a bundled contract Before awarding a task order under an IDIQ in excess of SAT Ongoing basis to identify capabilities of small businesses and new entrants

FAR Part 10; Market Research 20 What to look for in market research Whether needs can be met by commercial items Customary practices regarding modifications, warranty, buyer financing, discounting, contract type, quality, distribution and support, size and status of potential sources Techniques for conducting market research Knowledgeable individuals, recent market research, query government-side data, internet, catalogs, interactive meetings If research indicates no commercial or nondevelopmental items available, then reevaluate the need

FAR Part 10; Market Research If market research indicates that neither commercial items nor nondevelopmental items are available to satisfy agency needs, agencies a. must reevaluate the need and determine whether it can be restated to permit commercial or nondevelopmental items to satisfy them. b. may set-aside the procurement. c. are authorized to pursue the acquisition as a restricted procurement. d. shall solicit and award any resultant contract using FAR Part 12 policies and procedures. ANSWER: _____SOURCE(S): FAR (c), (d)

FAR Part 13; Simplified Acquisition Procedures 22 Use simplified acquisition procedures to the maximum below the SAT Use of request for quotes and purchase orders Limitation of certain laws below the SAT Use of “bulk funding” Maintain competition Use of blanket purchase agreements, unpriced purchase orders, imprest funds, purchase cards, and SF 44 (Purchase Order-Invoice-Voucher) Use of micro-purchase

FAR Part 13; Simplified Acquisition Procedures Which of the following is true concerning the use of simplified acquisition procedures? a.Purchases above the micro-purchase level are generally set-aside for small business. b.b. They can be used in the acquisition of commercial items without any limits. c.They cannot be employed when the Government-wide commercial purchase card is used. d.There is no requirement for competition. ANSWER: ____SOURCE(S): FAR (b)(1)

FAR Part 6; Competition Requirements 24 Full and Open Competition (FAR 2.101) when used with respect to a contract action, means that all responsible sources are permitted to compete Exclusions Establishing or maintaining alternative sources Set-asides: 8 (a), SB, HUBZone, SDVOSB, EDWOSB, local firms during major disaster or emergency Competition Advocates, review and report and take action - Acquire commercial items Achieve full and open competition Challenge requirements restricting competition and commercial item

FAR Part 6; Competition Requirements 25 Other than full and open competition ; Only one responsible source and no other supplies or services will satisfy agency requirements ; Unusual or compelling urgency ; Industrial mobilization; engineering, developmental, or research capability; or expert services ; International agreement ; Authorized or required by statue ; National security ; Public interest

FAR Part 6; Competition Requirements The Contracting Officer's certification can serve as approval of the justification for other than full and open competition for a proposed contract NOT exceeding a. $25,000. b. $650,000. c. $1,500,000. d. $5,500,000. ANSWER: ____SOURCE(S): FAR 6.304(a)(1)

FAR Part 12; Acquisition of Commercial Items 27 Preference for commercial items (Title VIII of the Federal Acquisition Streamlining Act of 1994) FAR Part 12 takes precedence over other parts of the FAR ( (c)) note: n/a below micro-purchase threshold and P-Card Policy (12.101) Conduct market research to meet needs with commercial items Acquire commercial items or nondevelopmental items when available Require prime contractors and subcontractors to incorporate commercial or nondevelopmental items as components of items supplied

FAR Part 12; Acquisition of Commercial Items 28 Commercial item defined in FAR as both goods and services Any item, other than real property, that is of a type customarily used by the general public or by non- governmental entities for purposes other than government purposes, and Has been sold, leased, or licensed to the general public; or Has been offered for sale, lease, or license to the general public Any item that evolved from a commercial item and is not yet available in the commercial market place

FAR Part 12; Acquisition of Commercial Items 29 Commercial item defined in FAR as both goods and services Installation, maintenance, repair, training and other services in connection with commercial items regardless of whether the services are provided by the same source or at the same time Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices

FAR Part 12; Acquisition of Commercial Items 30 Commercial limited to Firm-Fixed-Price, Fixed-Price-EPA and Time & Materials Commercial items shall rely on contractors’ existing quality assurance systems Commercial items limit the solicitation provisions and contract clauses Commercial items use of commercial warranties Past performance should be an important element of every evaluation and contract award for commercial items

FAR Part 12; Acquisition of Commercial Items Unless otherwise provided in section (b), agencies shall use which of the following contract type(s) for the acquisition of commercial items? a. Any type of contract b. Fixed-price contract with prospective price redetermination c. Firm-fixed-price or fixed-price with economic price adjustment contracts d. Cost plus incentive fee contracts only ANSWER: _____SOURCE(S): FAR