Contracting Presented by: Meddie Katongole

As a tool Business arrangement between an agency and a private entity. All agencies do some form of contracting

Key features..as a tool Choice by government NOT to produce product or service Business arrangement Analogous to private sector Procurement vs. POS contracting Products and services used by the agency vs. use by third parties

Comparing with other tools Directness – medium Entity involved in the execution of contract Automaticity – medium Use of existing admin structure Coerciveness – medium Restriction of behavior Visibility – relatively high Resources in the budget process

Design features Good deal Good price and performance Prevent corruption, promote integrity Awarding contracts, accepting work Fairness Decisions impartial, efficient and effective

Major Variants Source selection How, who and why? Pricing Cost reimbursement and fixed price Discretion of government officials Decisions based on their best judgment Oversight Inspection or testing

Major Variants cont’d Type of contract vehicle Task order or delivery order contract Type of performance commitment Achieve specific results or products Primary purpose Incidental-support or Mission-critical

Example NYSTRS RFI and RFP Bidding process Selection process

Example cont’d Legacy Systems to PeopleSoft $25 mil project, $25 mil over budget 2 years project, not done in 5 + years Training employees Employees forced into retirement Benefit to members and employees

Quote “When reporters asked Alan Shepard what he thought about as he sat atop the Redstone rocket, waiting for liftoff, he had replied, 'The fact that every part of this ship was built by the low bidder.'”