Contracting Officer Representative (COR) Refresher

“Acquisition Overview”

Brian K. GoodgerAssociate Director, OLAO

May 21, 2015

• Office of Logistics and Acquisition Operations (OLAO) – Office of Acquisitions

• Station Support, Simplified, Agency Wide Vehicles, and Research & Development

– NIH Information Technology Acquisition Assessment Center • CIOSP3 & CIO-CS

– Division of Logistics• Property • Transportation• Supply

– Strategic Sourcing & Data Analysis Branch – 125 people, located on Executive Blvd., support organization– www.olao.od.nih.gov

OLAO overview

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• Started in response to the Executive Officer request for quick, easy, free, COR and Acquisition training of their staff. – Earn 2 CLP/CEU each class – Occurs quarterly, except for the 4th quarter– 11/20/2014 Mock Technical Evaluation Panel (TEP) meeting and

discussion of Broad Agency Announcements (BAA) and Other Transaction Authorities (OTA)

– 6/19/2014 Simplified Acquisitions – Next refresher class will be in November of 2015 – Rotate topics and staff

COR Refresher class history

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• Acquisition Overview – Brian Goodger• Break for 10 minutes • Agency wide contracting vehicles – Susan Cortes-Shrank• Strategic Sourcing – Eric Steinberg • End at 11:55am

Agenda for Today

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• US Government contracting is based on 2 principles:1. Competition. Quality goes up, price goes down.2. Small Business Participation. Creates jobs, stimulates the economy.

• Why does the US Government contract?– Because we cannot produce the product/provide the service in-house.

• Goals of the US Government in contracting:– Award to contractors who will provide a quality product or service, in the

specified amount of time, within cost, while providing customer service to the US Government.

• Contracting Officer’s Representative – The federal employee responsible for the technical direction of the

contract (COR). Writes the SOW, expert in the product or service being procured, cannot award or modify contracts. Reviews monthly reports, inspects product, and works closely with the CO. Reviews invoices. Monitors Cost, Schedule, & Performance.

Fundamentals of USG contracting

Acquisition Relationships

COR (Customer)

Contractor (Private Sector)

CO (Actual Authority)

The CO and the Contractor serve the COR.

The COR determines the need and the requirements.

• Contracting Officer (CO)– A federal employee that has been granted the appointment to bind the US

Government into contracts by obligating taxpayers’ dollars.– Inherently Governmental function– Education, Certification Levels, Experience, and Recommendation to

become a CO – Appointment is in the form of a Warrant (standard form 1402)– The Senior Procurement Executive appoints Contracting Officers – CO has Actual Authority to bind the Government into contracts

• Contracting Officer duties and responsibilities: – Know, comply, and implement the regulations/statutes of the FAR – Provide excellent customer service to our CORs– Compete requirements, Negotiate, and Award and modify contracts – Determine Fair & Reasonable price – Award to a contractor who is deemed to be Responsive & Responsible

Roles & Responsibilities of CO

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• Contracting Officer’s Representative – The federal employee responsible for the technical direction of the

contract (PO/COR/COTR). Writes the SOW, expert in the product or service being procured, cannot award or modify contracts. Reviews monthly reports, inspects product, and works closely with the CO. Reviews invoices. Monitors Cost, Schedule, & Performance.

• Illegal action by CO and COR– CO may not violate the Anti-Deficiency Act; meaning (1a) the CO may not

spend money that was not allocated for a specific product or service or (1b) may not spend more than the amount of money allocated. (2) CO may not take a bribe of any monetary value.

– COR cannot make a constructive change to the contract; meaning the COR cannot change the terms and conditions of the contract to increase the scope of work, increase the price, or change the delivery schedule. May result in a ratification of the unauthorized commitment. May lead to disciplinary action and could result in the COR being held financially responsible.

Roles & Responsibilities of COR

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• Dollar Amounts: $3k Micro, $25k Competition, $150k S.A.T.• Definition of a Contract

– A mutually-binding legal relationship obligating the “seller” (contractor) to furnish supplies or services and the “buyer” (Government) to pay for them.

• Contract Types– Firm-Fixed Price (FFP) – The price is fixed, contractor guarantees

performance of the contracted work as a condition for being paid. – Cost Reimbursement (CR) – The contractor is paid up to a ceiling for all

allowable costs. The contractor must put forth its best efforts in performing all work under the contract.

– IDIQ (Indefinite Delivery/Indefinite Quantity) – The government’s quantity is unknown at time of award. Award Delivery Orders (DOs) off of the IDIQ.

• 5 Elements of a Contract:(1) Offer, (2) Acceptance, (3) Competent Parties, (4) Mutual Consideration, (5) Legality of Purpose

FAR overview

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Phases of the Acquisition Process

Phase I

Acquisition Planning

Phase II

Solicitation / RFP

Phase III

Contract Administration

Takes an Average of 7–9 months for Phases I & II

1 Determine a Need• Identify

service/product desired2 Assemble Acquisition Team

• COR, CO, CS, AO, OGC, program team3 Draft Statement of Work

• Salient Characteristics

• Deliverables• Delivery Schedule • Special

Requirements,• Mandatory & Standard Evaluation Criteria

• Technical Proposal Instructions4 Develop an Acquisition Plan (AP)

• Identify Sources• Conduct Market

Research • Construct IGCE• Availability of

Commercial Item• Competition

Method (RFP)• Select contract

type (FP/CR)• Select TEP

members• Other issues

(warranty/options)5 Meet with Acquisition Team to review Draft

SOW & Draft AP• Make corrections

6 Finalize SOW & Acquisition Plan7 Present Final SOW and Final AP to the

Contracting Officer

Phases of Acquisition Process

1 Draft and Post Final Synopsis• FedBizOpps.gov

2 CO drafts and finalizes RFP for internal review 3 Post Solicitation/RFP (request for proposal)

• FedBizOpps.gov4 Answer Questions submitted by Potential Offerors5 All Communication goes through the Contracting

Officer6 Amend solicitation/RFP7 Receive & Record Proposals8 Distribute Proposals to TEP Team9 CO reviews business proposals and begins cost

and price analysis 10 Hold TEP

• Score Proposals to evaluation criteria• Develop technical score• Vote acceptable/Unacceptable • TEP report to CO

11 Determine Competitive Range12 Submit Questions to Offerors in Competitive

Range. Notify those excluded. May conduct debriefings.

13 Review Answers to Questions14 Negotiate, win-win solution 15 Might need a revised proposal 16 Request and Receive Final Proposal Revisions

(FPR)17 Make a Source Selection18 Award Contract

1 Copy of Contract to Contracting Officer Representative (COR)• Highlight PO duties

2 Post Award Kick-Off Meeting3 Read & Review Monthly Progress

Reports4 Inspect and Accept Product or

Service5 COR reports

issues/concerns/problems to Contracting Officer

6 Execute Contract Modifications• Unilateral or Bilateral• Exercise options

7 Review & Approve Invoices8 Maintain Deliverables of

Contractor9 Perform Site-visits to Contractor10 Perform Annual Evaluation of

Contractor’s Performance11 Assist in Contract Closeout

* On average Contracts have a period of performance of 5 years

* Some have 1 base year + up to 4 option years (could have between 2–5 years total)

Acquisition Planning RFP/Solicitation Contract Administration

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Contracts vs. Grants Contract– For the sole purpose of supporting the Government – Solicitation: RFQ, IFB, RFP– Results in a: Quote, Bid, Proposal– Heavy Government oversight, interaction, and coordination – Procurement mechanism

Grant – For the sole purpose of supporting the Public – Solicitation: FOA, RFA– Results in an: Application – Limited Government oversight, interaction, and coordination – Financial assistance mechanism