10 MYTHS OF GOVERNMENT CONTRACTING Kate Whitby 1 North Brentwood, Suite 1000 St. Louis, MO Kate Whitby 1 North Brentwood, Suite 1000 St. Louis, MO

6/27/20072 GOALS  Identify “Good” Contracts / Work  Steer Away From “Bad” Contracts / Work  Survive Audits  Get Paid  Don’t Get Sued  Get Hired Again For Government Work

6/27/20073 MYTH #1  When The Government Asks For Bids, It Really Wants To Buy Something, Can Buy It, And Will Buy It  Funding  “Commercial Items”  Contracting Officer  Task order work awards

6/27/20074 MYTH #2  The Government’s Request For Bids Is Realistic And The Government Will Negotiate Fairly  Market research  Multiple Award Schedule contracts  The False Claims and Trade Agreements Acts

6/27/20075 MYTH #3  The Government Will Be Fair And Reasonable Regarding Changes  Change Orders Must be approved by CO Inside or outside scope of contract is important Constructive change orders Notice and equitable adjustment  Differing Site Conditions

6/27/20076 MYTH #4  The Government Can’t Make Me Stay On A Contract That Is A Money Loser  Unilateral Change Orders  Contract Disputes  “Mistakes”  Termination for Government Convenience  “Claims”

6/27/20077 MYTH #5  I Won’t Be Audited  Pre-Award Proposal Review Provisional Billing Rate Review Past Performance Capacity  Completion and After Final Overhead Rate

6/27/20078 MYTH #6  The Financial Accounting System I Use Is Good Enough For Government Work  Cost Accounting Standards (CAS)  Cost Principles and Procedures  Direct vs. Indirect Costs and Indirect Cost Accounting General & Administrative Costs Accounting changes to indirect cost rate structures

6/27/20079 MYTH #7  I Don’t Need To Know Anything About The FARs  Construction and Architect-Engineering Contracts (Part 36)  Service Contracting (Part 37)  Contract Admin & Audits (Part 42)  Contract Modifications (Part 43)  Subcontracting (Part 44)

6/27/ MYTH #8  At Least The Government Has The Money To Pay  Appropriations  Funding / deobligation of funds  Fiscal year budgets  80% rate for progress payments  Standard invoicing forms

6/27/ MYTH #9  Starting The Work Without A Signed Contract And Working In-Between Contract Renewals Or Extensions Is Not A Problem  No.

6/27/ MYTH #10  I Am Not Responsible For A Sub’s Personnel or Employment Practices  FAR Subpart 22.4, Labor Standards for Construction Contracts  ADA  EEO  Davis-Bacon Act  Stafford Act  OSHA

6/27/ LAWS/REGULATIONS  Competition In Contracting Act  Buy American Act  Federal Acquisition Streamlining Act  Truth In Negotiation Act  False Claims Act  Armed Services Procurement Act  Federal Property & Administrative Services Act  Contract Disputes Act of 1978  Federal Acquisition Regulations (FARs)  Defense Federal Acquisition Regulation Supplement (DFARS)

6/27/ ADDITIONAL RESOURCES    