1 Click to add the title of your presentation Breakout Session # F18, CFCM FAR REVIEW 4 Name Jack R. Hott, CPCM, Fellow Manager, Contract Compliance Fluor-B&W Portsmouth LLC Date July 31, 2012 Time 4:00 PM – 5:15 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 32; Contract Financing 6 FAR Subpart 32.1; Non-commercial item purchase financing Advance payments Progress payments based on cost Loan guarantees Partial payments for accepted supplies and services Progress payments based on a percentage or stage of completion Performance-based payments FAR Subpart 32.2; Commercial item purchase financing Commercial advance payment Commercial interim payment Delivery payment

FAR Part 32; Contract Financing 7 FAR Subpart 32.8; Assignment of claims Assignment to a bank, trust company or other financing institutions for contracts greater than $1,000 FAR Subpart 32.9; Prompt payment Payment thirty days after receipt of a receipt of a proper invoice Interest due after thirty days Constructive acceptance of invoice after seven days Electronic funds transfer Payments shall be made via EFT unless it falls under an exception

FAR Part 32; Contract Financing Performance-based payments shall be used only: a.when the Contracting Officer and the offeror are able to agree on the performance-based payment terms. b.when the contract is a fixed-price type contract. c.when the contract does not provide for other methods of contract financing. d.when all of the above conditions are met. ANSWER: ____SOURCE(S): FAR

FAR Part 34; Major System Acquisition 9 FAR Subpart 3.002; Policy Promote innovation and full and open competition Express needs in terms of mission and not specified systems to satisfy needs Focus resources on activities conducted in the initial stage of major programs Sustain effective competition between alternative system concepts and sources for as long as it is beneficial

FAR Part 34; Major System Acquisition 10 FAR Subpart ; General requirements Effective competition Mission-oriented solicitation Concept exploration contracts Demonstration contracts Full-scale development contracts Full production FAR Subpart 34.1; Testing, Qualification and use of industrial resources developed under Title III, Defense Production Act Government shall pay for testing and qualification for use of resources covered under the Act

FAR Part 34; Major System Acquisition 11 FAR Subpart 34.2; Earned Value Management System Required for major system acquisition, IAW OMB Circular A-11 System must comply with ANSI Standard-748, Earned Value Management Systems System must pass an Integrated Baseline Review covering the ability to project and attain cost objectives recognizing the relationship between budget, funding, schedule and work performed

FAR Part 34; Major System Acquisition The acquisition strategy tailored to a particular major system acquisition shall be developed by the a. Contracting Officer. b. program manager. c. Head of a Contracting Activity. d. acquisition manager. ANSWER: _____SOURCE(S): FAR

FAR Part 43; Contract Modifications 13 FAR Subpart 43.1; General Only Contracting Officers are empowered to execute contract changes Bilateral modifications vs. unilateral modifications Availability of funds FAR Subpart 43.2; Change orders FAR , Changes-Fixed Price (AUG1987), CO authority to make unilateral changes with the scope of the contract FAR , Change Order Accounting (APR 1984), accounting for cost of changes Unpriced change order require a bilateral supplemental agreement

FAR Part 43; Contract Modifications Supplemental agreements are used to: a. issue change orders. b. issue termination notices. c. definitize letter contracts. d. make administrative changes. ANSWER: ____ SOURCE(S): FAR a

FAR Part 17; Special Contracting Methods 15 FAR Subpart 17.1; Multiyear contracting Used to acquire know requirements up to five years Take advantage of lower costs, standardization, continuity of production, annual startup costs, etc. FAR Subpart 17.2; Options Unilateral right of the buyer Exercise of options is by written notice IAW terms of the contract May require some “new award” acitions (EPLS, wage determination, etc.)

FAR Part 17; Special Contracting Methods 16 FAR Subpart 17.4; Leader company contracting Unique technique to develop additional sources FAR Subpart 17.5; Interagency acquisitions Indefinite delivery contracts allowing other agencies to place orders FAR Subpart 17.6; Management and Operating contracts Operation, maintenance, or support, on behalf of a Government-owned or controlled research, development, special production, or testing establishment

FAR Part 17; Special Contracting Methods The Contracting Officer may exercise options only after determining that a.funds are available. b.funds are available and the requirements covered by the option fulfills an existing Government need. c.market prices for supplies or services are likely to change substantially. d.the requirements covered by the option fulfills an existing Government need ANSWER: _____ SOURCE(S): FAR (c)(2), (c)

FAR Part 49; Termination of Contracts 18 Subpart 49.1; General principles The government reserves the right to termination (in whole or in part) a contract without breach of contract Subpart 49.2; Termination for convenience (fixed-price) Terminate without cause BUT contractor is entitled to an equitable adjustment which will reflect in a supplemental agreement establishing the final contract price Subpart 49.3; Reimbursement contracts termination for convenience Settlement of costs (including rate adjustments) and final fee

FAR Part 49; Termination of Contracts 19 FAR Subpart 49.4; Termination for default (fixed-price) Under default, the government is not liable for contractor cost of undelivered work FAR Subpart 49.5; Contract termination clauses Must be present in the contract FAR Subpart 49.6; Contract termination forms and formats Important to follow since terminations can lead to litigation

FAR Part 49; Termination of Contracts A contract should not normally be terminated for convenience but should be permitted to run to completion when the price of the undelivered balance of the contract is less than: a. $25,000 b. $1,000 c. $5,000 d. $10,000 ANSWER: ____ SOURCE(S): FAR (c)

FAR Part 24; Protection of Privacy and Freedom of Information 21 FAR Subpart 24.1; Protection of individual privacy Application of the Privacy Action of 1974 requirements to contracts/subcontracts involving design, development, or operation of a system of records on individuals FAR Subpart 24.2; Freedom of information act Contracting Officer responsibilities for release of information under FOIA and protection of exempted from release information (classified, proprietary proposal information, personal, confidential commercial or financial information, etc.)

FAR Part 24; Protection of Privacy and Freedom of Information The Freedom of Information Act provides that information is to be made available to the public a.by publication in the Washington Post. b.within 72 hours of the initial request. c.seven years after the contract is closed. d.upon request, providing a copy of a reasonably described record. ANSWER: _____SOURCE(S): FAR

FAR Part 16; Types of Contracts 23 FAR Subpart 16.1; Selecting contract types Sealed-bid contracts shall be FFP or FP-EPA Cost-plus-percentage-of-cost are prohibited by law Factors to consider: Price competition (price analysis/cost analysis) Type & complexity of the requirement Combining contract types Urgency of requirement Period of performance Contractor technical capability and financial responsibility Adequacy of contractor’s accounting system Concurrent contracts Extent and nature of proposed subcontracting

FAR Part 16; Types of Contracts 24 FAR Subpart 16.2; Fixed-Price contracts FAR Subpart 16.3; Cost-Reimbursement contracts FAR Subpart 16.4; Incentive contracts FAR Subpart 16.5; Indefinite-Delivery contracts FAR Subpart 16.6; Time-And-Materials, Labor-Hour, and Letter contracts FAR Subpart 16.7; Agreements

FAR Part 16; Types of Contracts Which of the following is a true contract type allowed by the FAR? a. cost-plus-allowable-fee contract b. cost-plus-fixed-fee contract c. cost-plus-a-percentage-of-cost contract d. cost-plus-firm-fee contract ANSWER: _____ SOURCE(S): FAR ,