# Presentation: 525546

## Introduction to Contracting

**M. Brenda Hebert**
**Senior Contract Manager, ORD**
**AO & Compliance Training**
**February 26, 2004**

## Basic Elements of a Contract

- Legally enforceable
- Requires at least 2 parties

## Prerequisites to a Legal Contract 

- Competency- All parties must be legally capable of entering into a binding contract.
- Offer & Acceptance- Legal offer must be made & accepted by all parties
- Mutual consideration- Contract must be reciprocal, tangible results by contractor are exchanged for payment by the government.
- Lawful purpose- Contract must meet the mission of the agency, or authority/appropriation exists.

## Who can act as a government agent???

- ONLY THOSE GOVERNMENT EMPLOYEES WHO:
- Have been authorized to sign contracts by the assignment of a warrant.
- Have warrant authority for purchase.

## CONTRACTS CAN ONLY BE ENTERED INTO AND MODIFIED BY CONTRACTING OFFICERS.

## Acquisition Cycle

**Planning phase **
- Advance planning, determines needs, develops Statement of Work (SOW), purchase request.
**Contract formation phase**
- Program official/project manager works with CO in contract solicitation, evaluation and awarding.
**Contract administration phase**
-  COTR monitors contract performance.

## Acquisition Planning Phase 

- Background Information
- Objective/Purpose
- Delivery & Performance Schedule
- Independent Government Cost Estimate- IGCE
- Delivery & Performance

## Acquisition Planning Phase (cont’d) 

- Requirements Documents - SOW
- Recommended Sources & Competition
- Technical Evaluation Criteria
- Funding Document
- Miscellaneous

## Statement of Work/Requirements

- 	A well written statement of work is:
-  	 _clear_, _concise_ and _easy to understand_.
- 	Sets forth actual needs
- 	Contains appropriate QA provisions-
-    how to determine requirements are
-    met!

## 5 Simple Tips to Improving Your Contracts

- Do not use abstract, vague or ambiguous terms/words.
- Be consistent in words or phrases used.
- Use “shall”, “must” or “will”.
- Use active rather than passive voice.
- Be specific.

## Two Golden Rules:

- “Brevity is the soul of wit.”
- “If it is NOT written down, it didn’t happen.”

## Statement of Work Sections

- Background
- Scope & Purpose
- Description of Tasks
- Place of Performance
- Period of Performance & Milestones
- Travel
- Contractor Staff Training

## Statement of Work Sections (cont’d)

- Contractor Provided Space
- Government Furnished Property
- Contractor Furnished Property
- Transition Plan
- Confidentiality & Non-Disclosure
- Written Reports/Deliverables
- Labor Categories
- Project Resource Requirements

## Contract Formation Phase

- Determine type of contract to be used
- Determine competition requirements
- Evaluation of Proposals - Technical vs Cost
- Award of Contract

## The 7 Exceptions to Full and Open

- Sole Source
- National Security
- Unusual & Compelling Urgency
- Authorized/required by stature
- In public interest
- National Emergency/Industrial Mobilization
- R&D Capability or services of an expert for litigation or dispute

## The final step......

- 		....and if you’re lucky, no bid 	protest....

## Types of Contracts

- Fixed Price
- 		Firm Fixed Price
- Cost Reimbursement
- Cost Reimbursement
- Time & Materials (Labor-Hour)

## 
Indefinite Delivery
Definite Quantity
Requirements
Indefinite Quantity

- Indefinite Delivery
- Definite Quantity
- Requirements
- Indefinite Quantity

- Types of Contracts (cont’d)

## Contract Administration Phase

- COTR monitors contract performance
- Final close out

## Special Contracts

- Advisory and Assistance management and professional support services
- 	(For example: consultants)
- Additional information available in VAAR 37.200
- Deputy Secretary approval levels
- Quarterly Reporting

## Additional Contracting Information

- Web Sites
- GSA
- 	_[http://www.gsa.gov/](http://www.gsa.gov/)_
- GSA MOBIS (Management, Organizational and Business Improvement Services
- GSA FAST
- 	8(a) Small Business Set-Aside Contracts for Information Technology Solutions
- OA&MM e-library
- 	_[http://vaww1.va.gov/oamm/elibrary/index.htm](http://vaww1.va.gov/oamm/elibrary/index.htm)_

## A Final Source of Information

- 		ORD Contracting Staff
- M. Brenda Hebert	202-254-0204
- Bridgett Ann Baer	202-254-0482
- Greg Johnson	202-254-0193