1 Determining Responsible Prospective Contractors Antwan G. Reid PIP Level II Presentation May 20, 2004
2 Introduction Federal Government Procurement -Largest consumer in the world -Importance of finding responsible contractors -How does a contracting officer determine if a potential contractor is responsible? (pg.1)
3 Purpose Gain subject-matter expertise Explore the idea of developing a guide for contracting officers. Find answers to questions developed by interest in “Determining Responsible Prospective Contractors”. (pg. 1)
4 Sources Federal Acquisition Regulation (FAR) NASA FAR Supplement Books (Business, Financial, Ethics, etc.) Popular Electronic Search Engines (pg.1)
5 Background Final Rule Published in the Federal Register by the FAR Council Language Added to FAR (d) General Accounting Office Opposition to the Final Rule Bush Administration Proposed Revocation Previous Responsibility Rules Reinstated (pg.1)
6 Components The guide would analyze and break down the following: -Part I-General Standards (FAR 9.1) -Part II-Preaward Surveys (FAR 9.1) -Part III-Certificates of Competency (FAR 19.6) (pg.3)
7 FAR Applicability Applies to proposed contracts located -In the U.S. or its outlying areas -Elsewhere (unless inconsistent with laws or customs where the contractor is located) Does not apply to proposed contracts -Foreign, State, or Local Governments -Other U.S. Govt. Agencies -Agencies for the blind or other severely handicapped
8 FAR Policy Contracts shall be awarded to responsible prospective contractors only. No purchase or award shall be made unless the contracting officer makes a determination of responsibility. Award of a contract to a supplier based on lowest evaluated price can be false economy. Note: Check for debarred or suspended offerors before evaluation and award.
9 Part I-General Standards FAR (a) Analysis - General Business Information - Financial Statements - Issues with Financial Statements - Financial Ratios/Equations FAR (b) Analysis - Discussion (pg.4)
10 Part I-General Standards (cont’d) FAR (c) Analysis -Application of Standards (FAR) Importance of NF1680 “Evaluation of Performance” -Big Asset in Determining Responsibility -Input from end users, financial, administrative (pg.8)
11 Part I-General Standards (cont’d) FAR (d) Analysis -Integrity -Business Ethics -POGO Investigation -Determining an Ethical Business FAR (e) Analysis -Discussion (pg.9)
12 Part I-General Standards (cont’d) FAR (f) Analysis -Discussion FAR (g) Analysis -Discussion (pg. 12)
13 Part II-Preaward Surveys Preaward Surveys can be accomplished by: -Data already obtained -Data from another Govt. agency -Data from a commercial source -On-site inspection of plant and facilities -Any combination of the above (pg.13)
14 Part II-Preaward Surveys (cont’d) In Obtaining Information, use the following: -List of Parties Excluded from Fed. Procurement and nonprocurement Programs -Records and experience data -Commercial sources of supplier information -Preaward surveys -Publications, subcontractors, customers, etc. (pg.14)
15 Part II-Preaward Surveys (cont’d) Disclosure of Preaward Information -Discussion Contract Audit Responsibilities -Discussion Reports -Discussion (pg.14)
16 Part III-Certificates of Competency (COC) Background Purpose Referral: C.O. must do the following: -Withhold contract award -Refer the matter to the cognizant SBA Govt. Contracting Area Office (pg.18)
17 Part III-Certificates of Competency (COC) (cont’d) Referral must include along with a notice -Solicitation - Final Offer submitted by the concern -Abstract of bids or C.O.’s Price Neg. Memo. -Preaward survey -Technical data package -Any other justification or documentation (pg.19)
18 Part III-Certificates of Competency (COC) (cont’d) Issuing/Denying a Certificate of Competency COC Referrals vs COC’s Issued Resolving Differences between the Agency and SBA Awarding the Contract (pg.19)
19 Summary and Conclusion Summary Conclusions -Contracting officers need to compare the benefits of an evaluation against the cost. -Issue of contracting officers placing more value on one general standard over another. -Contracting officers comfort level with respect to evaluating a prospective contractor. (pg. 23)
20 Recommendations Recommendations -Submission of the “Determining Responsible Prospective Contractors” guide to the appropriate reviewing committee. -The creator would remain responsible in order to continuously update the guide. -NASA Goddard should develop more subject- matter experts. (pg.23)
21 Questions