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Contract Types While there appears to be many types of contracts, all can be placed in one of two familiesWhile there appears to be many types of contracts,

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Presentation on theme: "Contract Types While there appears to be many types of contracts, all can be placed in one of two familiesWhile there appears to be many types of contracts,"— Presentation transcript:

1 Contract Types While there appears to be many types of contracts, all can be placed in one of two familiesWhile there appears to be many types of contracts, all can be placed in one of two families Fixed-price Fixed-price Cost reimbursement Cost reimbursement

2 Contract Types A few contract types have characteristics of both familiesA few contract types have characteristics of both families Fixed-price characteristics Fixed-price characteristics Detailed specification or other detailed descriptionDetailed specification or other detailed description Performance regardless of costPerformance regardless of cost Little contract administration on the part of govtLittle contract administration on the part of govt Much contract administration on the part of the contractorMuch contract administration on the part of the contractor Cost reimbursement characteristics Cost reimbursement characteristics A less detailed description of the workA less detailed description of the work Best efforts on the part of the contractorBest efforts on the part of the contractor Greater contract administration on the part of the govtGreater contract administration on the part of the govt

3 Contract Types The Real Differences Fixed Price Cost Reimbursement Work Requirements Measured exactly to WSBest Efforts Default Termination No Cost/no profitCost/no fee Convenience Termination All cost/partial profitall cost/partial fee Change Orders Contractor risk ceiling protection Govt Property Contractor risk of lossgovt risk of loss

4 Contract Types Firm-Fixed Price Firm-Fixed Price Once price is set it doesnt change unless there is a contract changeOnce price is set it doesnt change unless there is a contract change Proposals sometimes identify cost and profit separatelyProposals sometimes identify cost and profit separately Or in highly competitive situations it may just identify a price Or in highly competitive situations it may just identify a price However, even when cost and profit are negotiated separately, the contract just identifies a price However, even when cost and profit are negotiated separately, the contract just identifies a price The detailed requirements of the SOW or specifications are used to accept or reject the item or serviceThe detailed requirements of the SOW or specifications are used to accept or reject the item or service

5 Contract Types Fixed Price – Redeterminable Fixed Price – Redeterminable The contract could be Firm Fixed Price (FFP) except forThe contract could be Firm Fixed Price (FFP) except for One or more areas that could significantly change One or more areas that could significantly change Example – labor rates, product components, cost of materialsExample – labor rates, product components, cost of materials The contract provides for adjustments, up or down, if certain specified events occurThe contract provides for adjustments, up or down, if certain specified events occur

6 Contract Types Fixed Price Incentive Fixed Price Incentive Price is fixed like FFPPrice is fixed like FFP But contract shows cost and profit separatelyBut contract shows cost and profit separately Profit varies upward or downward with cost outcome to specified limitsProfit varies upward or downward with cost outcome to specified limits

7 Contract Types Cost Reimbursement Cost Reimbursement Cost OnlyCost Only Appropriate in circumstances where the contractor has a mutual interest in the work Appropriate in circumstances where the contractor has a mutual interest in the work No fee is provided No fee is provided Example, contracts with universities, state and local govt, non-profits Example, contracts with universities, state and local govt, non-profits Cost SharingCost Sharing Same circumstances as cost only but the contractors level of interest in the work is so high that they will assume part of the cost Same circumstances as cost only but the contractors level of interest in the work is so high that they will assume part of the cost Commercial entity has an expectation of receiving substantial benefits Commercial entity has an expectation of receiving substantial benefits Example, R&D may result in products or processes with broad applicability and significant commercial potential Example, R&D may result in products or processes with broad applicability and significant commercial potential

8 Contract Types Cost Plus Fixed FeeCost Plus Fixed Fee Most common type Most common type Fee is mixed at the beginning but cost may be adjusted up or down Fee is mixed at the beginning but cost may be adjusted up or down Fee is fixed regardless of the cost outcome Fee is fixed regardless of the cost outcome Cost Plus Award FeeCost Plus Award Fee Often used where work is on a govt site Often used where work is on a govt site The govt evaluators are in a position to evaluate contractor performance on a regular basis The govt evaluators are in a position to evaluate contractor performance on a regular basis There may be a base fee There may be a base fee The award fee is earned based on performance The award fee is earned based on performance

9 Contract Types Cost Plus Percentage of Cost Cost Plus Percentage of Cost Prohibited – illegal form of contractProhibited – illegal form of contract Why illegal – fee is paid as a percent – no incentive to economizeWhy illegal – fee is paid as a percent – no incentive to economize

10 Contract Types Mixed Contracts Mixed Contracts Letter ContractLetter Contract Used in urgent situations Used in urgent situations A letter type direction to proceed immediately A letter type direction to proceed immediately But there are often limitations on detail But there are often limitations on detail The FAR encourages negotiations of as many definite provisions as possible before issuance The FAR encourages negotiations of as many definite provisions as possible before issuance Requires definitization in accordance with a strict schedule Requires definitization in accordance with a strict schedule

11 Contract Types Time and Materials and Labor Hour Time and Materials and Labor Hour Used primarily in a repair situationsUsed primarily in a repair situations Labor is on a Fixed Price Loaded Labor Rate basisLabor is on a Fixed Price Loaded Labor Rate basis Material is on a cost plus handling charge basisMaterial is on a cost plus handling charge basis The contract contains a capThe contract contains a cap Labor hour arrangement does not involve materialsLabor hour arrangement does not involve materials

12 Contract Types Indefinite Delivery/Indefinite Quantity Indefinite Delivery/Indefinite Quantity Contains all the provisions of a contract except the details on specific ordersContains all the provisions of a contract except the details on specific orders Contains a minimum guarantee which is usually a few thousand dollars to 5% to 10% of the estimated annual workContains a minimum guarantee which is usually a few thousand dollars to 5% to 10% of the estimated annual work Sometimes are awarded to multiple contractors and their orders are competed among those contractorsSometimes are awarded to multiple contractors and their orders are competed among those contractors The type of orders may vary – some may be FFP, labor hour/time and materials or Cost Plus Fixed FeeThe type of orders may vary – some may be FFP, labor hour/time and materials or Cost Plus Fixed Fee If varying type orders are allowed, the contract should contain clauses covering the different typesIf varying type orders are allowed, the contract should contain clauses covering the different types

13 Contract Types Requirement Type Contracts Requirement Type Contracts Could be the same as IDIQ but there is no money guaranteeCould be the same as IDIQ but there is no money guarantee The guarantee is that there will only be one contract awarded for the covered commodity or service by the agency – if there are any orders they will go to the contractor awarded the requirements contractThe guarantee is that there will only be one contract awarded for the covered commodity or service by the agency – if there are any orders they will go to the contractor awarded the requirements contract

14 Financial Basic Financial Goals of All types of Business Basic Financial Goals of All types of Business Make or offer a saleable product or serviceMake or offer a saleable product or service Control costs to be price competitiveControl costs to be price competitive Keep cask flowing to assist in controlling costsKeep cask flowing to assist in controlling costs Make as much profit as possibleMake as much profit as possible

15 Financial Financial Team Players Financial Team Players Financial Manager – sometimes known as the CFOFinancial Manager – sometimes known as the CFO Comptroller – could be same as CFO in small companiesComptroller – could be same as CFO in small companies TreasurerTreasurer Auditors – internal and externalAuditors – internal and external Government Players Government Players The Procurement Contracting Officer – negotiates original contract and primary changesThe Procurement Contracting Officer – negotiates original contract and primary changes Administrative CO – conducts systems reviews including finance, sets billing and overhead rates and approves invoicesAdministrative CO – conducts systems reviews including finance, sets billing and overhead rates and approves invoices Program Manager – agrees on quantities and changes and approves invoicesProgram Manager – agrees on quantities and changes and approves invoices Auditor – conducts financial reviews for the COAuditor – conducts financial reviews for the CO

16 Financial CAS – Cost Accounting Standards Board CAS – Cost Accounting Standards Board 1970 Congress created – to implement standards that would achieve uniformity and consistency in the cost accounting practices and reporting of costs under negotiated different prime and sub contracts1970 Congress created – to implement standards that would achieve uniformity and consistency in the cost accounting practices and reporting of costs under negotiated different prime and sub contracts CAS applies to contracts over $500,000 CAS applies to contracts over $500,000 Exceptions to CASExceptions to CAS Contracts under 500K Contracts under 500K Sealed bid contracts Sealed bid contracts Contracts w/ small business and foreign gov't Contracts w/ small business and foreign gov't Contracts where price is set by law Contracts where price is set by law Contracts and subcontracts performed entirely outside the US Contracts and subcontracts performed entirely outside the US FFP contract award on basis of adequate price competition FFP contract award on basis of adequate price competition

17 Financial Also, may be waived for a particular prime contract (or sub contract) under $15 million if the head of the contracting agency determines, in writing, that the performing business isAlso, may be waived for a particular prime contract (or sub contract) under $15 million if the head of the contracting agency determines, in writing, that the performing business is 1) Engaged in the sale of commercial items and 2) Would not be subject to CAS other than size of contract

18 Financial Contractor Obligations under CAS Contractor Obligations under CAS Disclose in writing the cost accounting practices by completing a disclosure statementDisclose in writing the cost accounting practices by completing a disclosure statement Follow the disclosed practices consistently in estimating and reporting costsFollow the disclosed practices consistently in estimating and reporting costs Comply with CAS in effect at the time of awardComply with CAS in effect at the time of award Agree to price adjustment in the event govt shows contractor failed to comply w/ existing CAS or its own approved practicesAgree to price adjustment in the event govt shows contractor failed to comply w/ existing CAS or its own approved practices

19 Financial Costing Principals Costing Principals Are used when cost analysis is requiredAre used when cost analysis is required When negotiating a fixed price contract – used a guide in both the pricing and any subsequent changesWhen negotiating a fixed price contract – used a guide in both the pricing and any subsequent changes They apply to proposals and cost incurred after award for cost reimbursement arrangementsThey apply to proposals and cost incurred after award for cost reimbursement arrangements For post award incurred cost, they only apply to Cost Reimbursement situationsFor post award incurred cost, they only apply to Cost Reimbursement situations Cost reimbursement does not mean that a contractor will be reimbursed all of their costsCost reimbursement does not mean that a contractor will be reimbursed all of their costs Do be reimbursed a cost must be allowableDo be reimbursed a cost must be allowable

20 Financial Costing Principles Costing Principles To be allowable - FAR requires that a cost must beTo be allowable - FAR requires that a cost must be Reasonable – (vague) prudent person in the conduct of competitive business Reasonable – (vague) prudent person in the conduct of competitive business Allocable – if it chargeable, and if it is incurred specifically for the K or benefits K and other work (make a pro-rata distribution) Allocable – if it chargeable, and if it is incurred specifically for the K or benefits K and other work (make a pro-rata distribution) Meet accounting standards or generally accepted accounting principles Meet accounting standards or generally accepted accounting principles Meet terms of contract Meet terms of contract Meet FAR principles Meet FAR principles

21 Financial Reasonable meansReasonable means In nature and amount its reasonable In nature and amount its reasonable It is the type cost that a prudent person would have incurred in the conduct of competitive business It is the type cost that a prudent person would have incurred in the conduct of competitive business Allocable meansAllocable means The cost was incurred specifically for the contract (direct), or The cost was incurred specifically for the contract (direct), or That the cost benefits both the contract and other work and can be reasonably That the cost benefits both the contract and other work and can be reasonably That the cost is necessary for overall business operation (G&A) That the cost is necessary for overall business operation (G&A) Meets accounting standards meansMeets accounting standards means It meets established CAS, or It meets established CAS, or It meets generally acceptable principles recognized in the industry It meets generally acceptable principles recognized in the industry

22 Financial Meets the terms of the contract means Meets the terms of the contract means It meets any special provisions on the contractIt meets any special provisions on the contract These provisions cannot violate cost principlesThese provisions cannot violate cost principles Examples of some provisions:Examples of some provisions: Special treatment for the project Special treatment for the project Pre-contract costs included Pre-contract costs included Meets FAR Principles means Meets FAR Principles means It does not violate FAR part 31It does not violate FAR part 31 FAR part 31 identifies 53 types of costs and provides guidelines for their acceptability (outlined in the text) FAR part 31 identifies 53 types of costs and provides guidelines for their acceptability (outlined in the text) Unallowables Unallowables Contractors must account forContractors must account for Fee or profit pays for unallowables Fee or profit pays for unallowables

23 Financial Some Selected Costs Some Selected Costs Many public relation and most advertising – generally non-allowable but selling costs are allowableMany public relation and most advertising – generally non-allowable but selling costs are allowable Allowable PR costs – trade shows, public communication, stockholder communication, general news/media liaison, community event support Allowable PR costs – trade shows, public communication, stockholder communication, general news/media liaison, community event support Interest – non-allowableInterest – non-allowable Bad debts – non-allowableBad debts – non-allowable Compensation for personal servicesCompensation for personal services CAS has guidance for all types of compensation CAS has guidance for all types of compensation Executive compensation is a hot issueExecutive compensation is a hot issue Severance pay is also an issue covered Severance pay is also an issue covered Salary surveys are conducted within the commercial sector to determine reasonableness Salary surveys are conducted within the commercial sector to determine reasonableness

24 Financial Some Selected Costs Some Selected Costs Employee morale – health and welfare – allowableEmployee morale – health and welfare – allowable Examples Examples Employer/employee relationsEmployer/employee relations Crisis consultationCrisis consultation Health clinicsHealth clinics Employee publicationEmployee publication Dining roomsDining rooms Recreation facilitiesRecreation facilities Picnics/partiesPicnics/parties Awards\Awards\ Entertainment costs – unallowableEntertainment costs – unallowable

25 Financial Some Selected Costs Some Selected Costs Pre-contract costsPre-contract costs Costs incurred before effective date of contract Costs incurred before effective date of contract Allowable to extent they would have been allowable after award Allowable to extent they would have been allowable after award If necessary to meet delivery schedule If necessary to meet delivery schedule Good idea to get letter of agreement Good idea to get letter of agreement Costs of fines, penalties and mischarging – generally unallowableCosts of fines, penalties and mischarging – generally unallowable Losses on other contracts – generally unallowableLosses on other contracts – generally unallowable Training, education, trade, business, technical and professional activity costs - generally allowableTraining, education, trade, business, technical and professional activity costs - generally allowable

26 Financial Payment Withholding Payment Withholding Payments on CR contracts may be withheld for many reasonsPayments on CR contracts may be withheld for many reasons Failure to make progress on contract Failure to make progress on contract Labor standards violation Labor standards violation Contract violation Contract violation Payments withheld for unallowable costsPayments withheld for unallowable costs Withholding payment can either involve suspension or disallowanceWithholding payment can either involve suspension or disallowance Suspension = temporary withholding pending a final determinationSuspension = temporary withholding pending a final determination The ACO, PCO or in some cases, auditor can suspend payments or disallow costsThe ACO, PCO or in some cases, auditor can suspend payments or disallow costs If auditor, then ACO makes a final decision on disputed issuesIf auditor, then ACO makes a final decision on disputed issues

27 Financial Important Contract Administration Functions Important Contract Administration Functions Establishes labor rates and material estimates to be used in proposalsEstablishes labor rates and material estimates to be used in proposals Establishes company overhead (OH) and general and administrative (G&A) ratesEstablishes company overhead (OH) and general and administrative (G&A) rates Develops cost reports for project managersDevelops cost reports for project managers Assures cash flowAssures cash flow Obtains money to run projectsObtains money to run projects

28 Financial Cash Flow Analyses Cash Flow Analyses When are payments of bills due and how muchWhen are payments of bills due and how much Labor Labor Materials Materials Rent Rent Utilities Utilities Installment/loan payments Installment/loan payments When is income scheduled to come inWhen is income scheduled to come in How will income be used to pay billsHow will income be used to pay bills Financing necessary?Financing necessary?

29 Financial Labor Rate Composites Labor Rate Composites Example – the contract may have 3 fixed price labor categoriesExample – the contract may have 3 fixed price labor categories Engineer$75 p/h5000 max. hours Technician $ Analyst$ How does the Finance Manager calculate – justify the calculations

30 Financial Overhead Rate Development Overhead Rate Development Direct cost of unitDirect cost of unit Sales of unitSales of unit Overhead pool expensesOverhead pool expenses Example Example Product direct cost per unit$1.00Product direct cost per unit$1.00 Estimated annual sales (units)100,000Estimated annual sales (units)100,000 Direct cost of product$100,000Direct cost of product$100,000 Estimated annual overhead cost$100,000Estimated annual overhead cost$100,000 Overhead to be applied to each unit100%Overhead to be applied to each unit100% Total cost of each unit$2.00Total cost of each unit$2.00 Add profit (assume 10%).20Add profit (assume 10%).20 Unit selling price$2.20Unit selling price$2.20

31 Financial How much money is needed? How much money is needed? Fixed –Price ContractsFixed –Price Contracts Payment upon acceptable delivery is normal rule Payment upon acceptable delivery is normal rule But progress payments are possible But progress payments are possible Delivery may be broken into segments with payment schedule Delivery may be broken into segments with payment schedule May be able to get advance on contract (rare) May be able to get advance on contract (rare) Cost Reimbursement ContractsCost Reimbursement Contracts Periodic payments every 2 weeks or once a month possible Periodic payments every 2 weeks or once a month possible But payment delays may occur after approval of invoices But payment delays may occur after approval of invoices Advance available Advance available

32 Financial Truth in Negotiation Act (TINA) 1962 Truth in Negotiation Act (TINA) 1962 Applies to negotiated contracts or modifications with a value of $550,000 or more.Applies to negotiated contracts or modifications with a value of $550,000 or more. Exempted from TINA if there is adequate price competition, procurement of commercial items or service, or price set by law or waiver from requirementsExempted from TINA if there is adequate price competition, procurement of commercial items or service, or price set by law or waiver from requirements Requires certification of cost or pricing data (by prime contractors and sub-contractors)Requires certification of cost or pricing data (by prime contractors and sub-contractors) Cost or pricing data is defined asCost or pricing data is defined as All factsAll facts Existing at the date of the agreement of priceExisting at the date of the agreement of price That are significant to price negotiationsThat are significant to price negotiations

33 Financial TINA TINA Certification requires that data must beCertification requires that data must be Accurate Accurate Current Current Complete Complete Use standard forms 1411 and 1448 Use standard forms 1411 and 1448 Data is information that isData is information that is Factual, historical – not estimates Factual, historical – not estimates FASA amended TINA – FASA amended TINA – raised the threshold from $500K to $550Kraised the threshold from $500K to $550K Made exceptions to TINA mandatoryMade exceptions to TINA mandatory Broadened exemption categoriesBroadened exemption categories Created commercial item exception Created commercial item exception

34 Financial TINA TINA Certification is as of the date of the agreementCertification is as of the date of the agreement All info to be submitted before award is made All info to be submitted before award is made Contract clause provides for defective price audit – FP or CR (both)Contract clause provides for defective price audit – FP or CR (both) If defective pricing is found – remediesIf defective pricing is found – remedies Repayment of excess Repayment of excess Interest on excess Interest on excess Penalty Penalty Criminal prosecution if fraud (disbarment/suspension) Criminal prosecution if fraud (disbarment/suspension) SubcontractorSubcontractor Sub should certify to prime Sub should certify to prime Prime certifies to government Prime certifies to government No privity of contract between sub and govt No privity of contract between sub and govt Always in a prime contract with a sub – have provision that sub will make prime whole in the case of defective pricing Always in a prime contract with a sub – have provision that sub will make prime whole in the case of defective pricing

35 Fraud & Ethics Civil Fraud Civil Fraud False Claims Act – allows recover of damages/penalties from anyone who submits a false claim to a federal agencyFalse Claims Act – allows recover of damages/penalties from anyone who submits a false claim to a federal agency Knowingly presents or causes to be presented to the govt a false/fraudulent claim for payment or approval Knowingly presents or causes to be presented to the govt a false/fraudulent claim for payment or approval Uses a false record or statement to get claim paid/approved Uses a false record or statement to get claim paid/approved Conspires to defraud govt by getting a false claim paid/approved Conspires to defraud govt by getting a false claim paid/approved Knowingly uses a false record/statement to conceal; avoid or decrease an obligation to pay or transmit money or property to govt Knowingly uses a false record/statement to conceal; avoid or decrease an obligation to pay or transmit money or property to govt

36 Fraud & Ethics False Claims Act False Claims Act Burden of Proof – on govt by a preponderance of the evidenceBurden of Proof – on govt by a preponderance of the evidence Knowledge = actual knowledge or deliberate ignorance Knowledge = actual knowledge or deliberate ignorance Innocent mistakes/negligence (even gross negligence) not enough for a conviction Innocent mistakes/negligence (even gross negligence) not enough for a conviction Qui Tam whistleblower provision of law – fixed by 1986 amendment to False Claims Act Qui Tam whistleblower provision of law – fixed by 1986 amendment to False Claims Act Made it more attractiveMade it more attractive Especially in areas of Medicare/Medicaid – Especially in areas of Medicare/Medicaid – Syracuse example Syracuse example

37 Fraud & Ethics Qui Tam Qui Tam ExceptionsExceptions Suits between members of military and govt Suits between members of military and govt Suits based on info known to govt Suits based on info known to govt Suits based on allegations that are subject of a civil suit to which govt is a party Suits based on allegations that are subject of a civil suit to which govt is a party

38 Fraud & Ethics False Statements Act False Statements Act Widely used in prosecuting criminal fraud casesWidely used in prosecuting criminal fraud cases Supreme Court – has repeatedly stated that statute should be broadly and liberally interpretedSupreme Court – has repeatedly stated that statute should be broadly and liberally interpreted Practical effect – govt may use this statute, even where a more narrowly defined and more specific statute could be applied.Practical effect – govt may use this statute, even where a more narrowly defined and more specific statute could be applied. Conviction requires a showing of Conviction requires a showing of 1)A statement was made 2)The statement made was false 3)The person making the statement knew it to be false when the statement was made 4)Statement was material 5)Statement concerned a matter w/in federal jurisdiction

39 Fraud & Ethics Major Fraud Act of 1988 Major Fraud Act of 1988 Covers Govt prime contracts over $1,000,000Covers Govt prime contracts over $1,000,000 Subcontractors are also subject to statute Subcontractors are also subject to statute Contains whistleblower protection and rewards Contains whistleblower protection and rewards

40 Fraud & Ethics Government Corruption Anti-Kick Back Act – 1986 Anti-Kick Back Act – 1986 Covers prohibited conduct – forbids any individual or business fromCovers prohibited conduct – forbids any individual or business from Providing/attempting to provide any kickbacks Providing/attempting to provide any kickbacks Soliciting or accepting (or attempting to accept) a kickback Soliciting or accepting (or attempting to accept) a kickback Includes the amount of any kickback that may be in the price charged by a subcontractor to a prime contractor (or a higher tier subcontractor) in the price charged by the prime to the Govt Includes the amount of any kickback that may be in the price charged by a subcontractor to a prime contractor (or a higher tier subcontractor) in the price charged by the prime to the Govt Kick-back is defined as: money/fee/commission/credit/gift/gratuity/thing of value or compensation of any kind (directly or indirectly) for the purpose of improperly obtaining or rewarding favorable treatment in connection w/ a government contractKick-back is defined as: money/fee/commission/credit/gift/gratuity/thing of value or compensation of any kind (directly or indirectly) for the purpose of improperly obtaining or rewarding favorable treatment in connection w/ a government contract Applies to all government contractsApplies to all government contracts

41 Fraud & Ethics Procurement Integrity Act – 1996 (as amended) Procurement Integrity Act – 1996 (as amended) Conflicts of interest Conflicts of interest Improper disclosures and Improper disclosures and Receipt of procurement information Receipt of procurement information Restricts acceptance of employment by former agency officials with govt contractors and employment contracts/consultants for procurements over $10 million for one yearRestricts acceptance of employment by former agency officials with govt contractors and employment contracts/consultants for procurements over $10 million for one year Loophole – no restriction on working for another division or affiliate of the contractorLoophole – no restriction on working for another division or affiliate of the contractor designed to restore public confidence in govt procurement processdesigned to restore public confidence in govt procurement process

42 Fraud & Ethics Procurement Integrity Act Also prohibits current and former federal official from knowingly disclosing or knowingly obtaining contractor bid or proposal information before the award of a contract, to which info relates to, is awardedAlso prohibits current and former federal official from knowingly disclosing or knowingly obtaining contractor bid or proposal information before the award of a contract, to which info relates to, is awarded Example – cost/pricing data, indirect costs, labor costs, trade secrets, other proprietary informationExample – cost/pricing data, indirect costs, labor costs, trade secrets, other proprietary information

43 Fraud & Ethics Lobbying Restrictions Byrd Amendment – govt-wide restrictions on contractors use of federally appropriated funds for legislative and executive branch lobbying (looking to deal with improper influence peddling?!)Byrd Amendment – govt-wide restrictions on contractors use of federally appropriated funds for legislative and executive branch lobbying (looking to deal with improper influence peddling?!) Lobbying Disclosure Act – 1995Lobbying Disclosure Act – 1995 Created more govt employees by creating a comprehensive scheme for reporting and registering lobbyists Created more govt employees by creating a comprehensive scheme for reporting and registering lobbyists

44 Fraud & Ethics Suspension & Debarment May preclude contractor from getting contracts for up to 3 yearsMay preclude contractor from getting contracts for up to 3 years FAR procedure - suspensionFAR procedure - suspension Notice to contractor – stating when suspension will take effect/cause Notice to contractor – stating when suspension will take effect/cause Contractor has 30 days to submit information in opposition but no right to a pre-suspension hearing Contractor has 30 days to submit information in opposition but no right to a pre-suspension hearing May obtain a post-suspension fact-finding hearing based on the strength of submission May obtain a post-suspension fact-finding hearing based on the strength of submission DebarmentDebarment Right to a detailed statement of reasons for proposed debarment Right to a detailed statement of reasons for proposed debarment 30 days to respond 30 days to respond

45 Fraud & Ethics Protests – contents Protests – contents Must be signed by the protestor or legally authorized agent and addressed to GAOMust be signed by the protestor or legally authorized agent and addressed to GAO Protestors – name/address/phone and fax numbersProtestors – name/address/phone and fax numbers Name of contracting agency and solicitation #Name of contracting agency and solicitation # A detailed statement of the legal factual grounds of protestA detailed statement of the legal factual grounds of protest Copies of relevant documentsCopies of relevant documents All info establishing that protestor is an interested party and protest is timelyAll info establishing that protestor is an interested party and protest is timely Request for a ruling by GAORequest for a ruling by GAO Statement of relief requestedStatement of relief requested Example – protective order, hearing, specific documents Example – protective order, hearing, specific documents GAO – decision issued w/in 100 daysGAO – decision issued w/in 100 days

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