87th Air Base Wing Differences Between Government and Commercial Contracting Mr. James Kelly Contracting Specialist, 87 CONS

2 “WIN AS ONE” Key Differences Eligibility Opportunities Pricing Restrictions Increased Oversight Changes and Terminations Criminal Sanctions Disputes

3 “WIN AS ONE” Eligibility Commercial In Commercial Contracting you are eligible to do business with anyone at anytime. Government For a Government Contract you must take the following actions before becoming eligible to do business with the Government: 1) Obtain a DUNS Number 2) Register with Central Contractors Registration 3) Obtain a Commercial and Government Entity Code(CAGE) 4) Register with Online Representations and Certifications

4 “WIN AS ONE” Opportunity Commercial For commercial contracts you obtain business how ever you can find it. You may perform cold calls or door to door sales to get customers. Government The Government competes their requirements per Federal Acquisition Regulation Part 6.  No door to door or cold call sales with the Government  “Sole-source” contract awards are the exception The Government solicits for its requirements through Government wide Points of Entry like:  Federal Business Opportunities, or  the General Services Administration.

5 “WIN AS ONE” Government-wide Points of Entry Federal Business Opportunities Can be accessed through the Central Contractors Registration Website or through FedBizOpps web site Follow Instructions for Vendors to find Opportunities and to Register General Services Administration(GSA) Follow Instructions for Doing Business With GSA

6 “WIN AS ONE” Pricing Restrictions Commercial In Commercial Contracting profit is based on competition in the industry and what the customer is willing to pay Government In Government Contracting profit is restricted depending on level of risk involved and type of contract due to legislative restrictions. FAR Part 16 explains the types of contracts the Government may use and the restrictions involved with each type of contract.

7 “WIN AS ONE” Increased Oversight Commercial Commercial Contracting only involves two people, the customer and the contractor. The customer has a need and the contractor fulfills the requirement Government Government Contracting involves the Customer, a Contractor, Congress, and the General Public Every purchase made is in the view of the public --we are spending the public’s tax dollars. Must justify every purchase and follow regulatory requirements for each purchase. Publicizes awards-if awarded a contract, your Company Name and dollar value awarded becomes public knowledge.

8 “WIN AS ONE” Changes and Terminations Commercial In Commercial contracting changes in scope can stop a contract in its place Government During the change process in Government contracting, the contractor must continue performance and await relief Can terminate a contract  Termination for Convenience of the Government – Allows for contractor to recover their costs but not recover lost profit  Termination for Default of the Contractor – Default on the part of the contractor--no cost or profit recovery allowed.

9 “WIN AS ONE” Criminal Sanctions The Anti-Kickback Act Deters subcontractor payment to prime contractors for subcontracts The False Statements Accountability Act Criminal Offense to give false statements or information to the Government The False Claims Act Criminal and civil penalties for submitting false claims for payment or substituting products and services without Government consent The Sherman Antitrust Act Oppose the combination of entities that could potentially harm competition, such as monopolies or cartels

10 “WIN AS ONE” Disputes Commercial An award decision is made and is final. No one can question the decision. Government An award decision is made and can be changed. Any interested party can file a protest against the Government’s decision.  Protest - written objection by a interested party to the Governments solicitation, award, termination or cancelation of the solicitation or award.  Disputes and Appeals - Disagreements between the Government and the Contractor that result in a claim

11 “WIN AS ONE” Final Thoughts Government contracting can be profitable for your business. To do business with the Government your business processes, procedures and practices must be designed to comply with the three R’s Rules Regulations Risk

12 “WIN AS ONE” QUESTIONS?