The purpose of the NOAA Executive Acquisition Handbook (the Handbook) is to provide you,

NOAA’s non-contracting executives, with a convenient and condensed source of basic

information about the acquisition process and many of the most frequently asked questions for

some of the common acquisition topics.

It includes flowcharts to help you navigate through the procurement process. It provides the

average procurement processing times by action type to assist you in planning and processing

procurement requests by the date established for each fiscal year. Finally, it includes a glossary

and acronym list to help you better understand acquisition terminology.

This guide is not intended to answer all of your questions, nor does it contain the detailed

information required by Contracting Officer’s Representatives (CORs) to do their jobs. It is

intended to familiarize you with the Government contracting process, with emphasis on the

things you, the non-contracting executive, most need to know.

Government contracting is as much art as a science. There are many ways to accomplish

something while complying with the spirit and letter of the law, regulations, and policy.

Therefore, although the Handbook can provide you with general information, for more details

you should contact a contract specialist or contracting officer within your servicing Acquisition

Division. He or she can assist you with every aspect of your procurement needs.

It is the goal of the Acquisition and Grants Office to provide you with the best services possible.

If you have any suggestions on how we can do that more effectively, please let me know.

Jeffrey S. Thomas

Director, Acquisition and Grants Office

February 2018

Table of Contents

Section A Introduction

Section B The Acquisition and Grants Office

Section C The Regulations

Section D Acquisition vs. Financial Assistance

Section E Interagency and Intra-Agency Agreements

Section F General Acquisition Background

Section G Pre-Solicitation Activities Phase

Section H Solicitation, Evaluation, and Award Phase

Section I Post-award Administration Phase

Section J Ethics and Standards of Conduct

Section K Glossary of Acquisition Terms

Section L Acronyms and Abbreviations

Appendix A Decision Diagram for Selection of Legal Instrument

Appendix B Negotiated Competitive Procurement

Appendix C

Procurement Action Lead Times

Appendix D

Do’s and Don’ts

Appendix E

Dealing with Unsatisfactory Performance

A. Introduction

The Handbook has been written

specifically for non-contracting

executives. It is intended to orient

you to the NOAA acquisition

process. The Handbook outlines and

explains many factors affecting the

Federal acquisition process, as well

as the major steps in the process itself

and the responsibilities and functions

of the participants in that process.

The guiding principles for the Federal

Acquisition System are to: 1) satisfy

the Client in terms of cost, quality,

and timeliness of the delivered product or service; 2) conduct business with integrity, fairness,

and openness; 3) fulfill public policy objectives; and 4) minimize administrative costs. The

policies and procedures established in the Federal Acquisition Regulation (FAR) support those

principles.

Once a decision is made to acquire supplies or services through the acquisition process, a

Contracting Team (Team) is established. The Team consists primarily of the Client’s technical

representative, the contracting officer (CO), the Contracting Officer’s Representative (COR), and

the contractor selected to provide the required goods or services. Participants in the acquisition

process must work together and be empowered to make decisions within their area of

responsibility. The role of each member of the Team is to exercise personal initiative and sound

business judgment in providing the best value product or service to meet the Client’s needs.

The Client ensures that technical requirements are clearly defined and helps ensure that the

contract is designed to meet those requirements. In addition, the Client assists the CO in

identifying, evaluating and selecting competitive sources and ensuring that the price the

Government pays for the products or services it acquires is fair and reasonable.

The CO has the overall responsibility for the end-to-end procurement process. The CO is

responsible for guiding activities of the Team members, ensuring performance of all necessary

actions for effective contracting, ensuring compliance with the terms of the contract,

safeguarding the interests of the United States in its contractual relationships, and exercising

sound business judgment.

The CO may choose to delegate some contract administration responsibilities to a qualified

individual within the Client organization to serve as the COR for a contract. CORs must be

Government employees, be qualified by training and experience commensurate with the duties to

be delegated, and hold the appropriate level Federal Acquisition Certification for Contracting

Officer Representatives (FAC-COR). CORs are primarily responsible for providing technical

direction to the contractor, ensuring that all technical requirements are met, and inspecting and

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AGO has been assigned the primary responsibility of fulfilling the acquisition and grants

requirements of NOAA’s Line and Staff Offices by purchasing products and services required to

meet NOAA’s mission. AGO works with NOAA’s Line and Staff Offices in acquisition and

grants planning, soliciting, awarding, and administration activities. Additionally, AGO is

responsible for developing NOAA acquisition and grants policy and procedures and providing

advice and assistance to Clients.

AGO is organized into divisions that serve specific Clients. The AGO Home Page, located at

http://www.ago.noaa.gov, is a resource available to NOAA Clients to identify each of AGO’s

divisions and also includes the Client Service Matrix detailing the Clients that each division

serves.

accepting the contractor’s goods or services on behalf of the Government. The COR has no

authority to make any commitments or changes that affect price, quality, quantity, delivery, or

any terms and conditions of the contract.

The Handbook provides a general overview of the contracting process. It begins with a section

on acquisition basics that explains the fundamentals of contracting and the basic principles of the

acquisition process. It discusses the different funding mechanisms, methods of acquisition, and

types of contracts. Sections G through I deal with the three distinct phases of the contracting

process and the specific responsibilities of the Client in each phase. Section G covers pre­

solicitation activities; Section H the process of solicitation and award; and Section I the crucial

process of post-award administration. Section J covers the standards of conduct that are

particularly applicable to Clients. Section K contains a glossary that defines standard acquisition

terms, and Section L provides a comprehensive list of acronyms. There are multiple terms that

are used to describe parts of the acquisition process. People often use the terms acquisition,

contracting, procurement, and purchasing interchangeably, and while there are explicit

differences between each of these terms, for the purposes of this Handbook, we will use the term

contracting to describe the buying process.

B. The Acquisition and Grants Office

C. The Regulations and Policies

AGO follows several sets of the law, regulations and policies governing the Federal acquisition

process including: the Code of Federal Regulations Title 41 of United States Code (Public

Contracts), the FAR and its DOC FAR supplement, the Commerce Acquisition Regulation

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(CAR). We are also guided by various

Executive Orders, Office of Federal

Procurement Policy (OFPP), the Department

of Commerce (DOC) Commerce Acquisition

Manual (CAM), and the NOAA Acquisition

Manual (NAM). Although Clients do not

usually use these documents extensively, they

should be familiar with them.

The Department of Labor establishes the

wage standards and employee benefits and is

also responsible for enforcing related

programs under its cognizance, such as the

Fair Labor Standards Act and the Service

Contract Labor Standards. These regulations

pertain to contractors performing on service

contracts in excess of $2,500 to which no

predecessor contractor’s collective bargaining

agreement applies shall pay their employees

at least the wages and fringe benefits found

by the Department of Labor to prevail in the

locality or, in the absence of a wage

determination, the minimum wage set forth in the Fair Labor Standards Act.

The Small Business Administration (SBA) establishes rules for socioeconomic objectives and

the related programs under its cognizance, including among others the small business set-aside

program and 8(a) program. The Small Business Act, as amended, establishes statutory prime and

subcontracting goals for small, service-disabled veteran-owned, HUBZone, small disadvantaged,

and women-owned small business concerns. Furthermore, the Act directs the SBA to negotiate

annual goals with federal agencies. Toward this end, DOC negotiates very robust small business

goals for prime and subcontract awards to small and socioeconomic business concerns and has

consistently maintained an impressive track record toward statutory goal achievement.

The CO makes the determination as to whether to set aside an acquisition exclusively for

participation by concerns in one of the small business categories. While NOAA strives to meet

the Small Business Program goals established each fiscal year, we will not sacrifice timeliness or

quality to do so and must receive a fair market price in order to consider setting aside our

requirements for small business.

D. Acquisition vs. Financial Assistance

The term “Acquisition” encompasses the processes the Government uses to obtain supplies or

services primarily through contracts and purchase orders. The acquisition process usually results

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in a contract. In general, the acquisition process is used when the principal purpose of the effort

is for the direct benefit or use of the Federal Government.

Financial Assistance describes the process by which the Government transfers money, property,

services, or anything of value to recipients to accomplish a public purpose of support or

stimulation authorized by a Federal statute. The instruments used to carry out the financial

assistance process are grants and cooperative agreements.

Grants or cooperative agreements should generally be used when there is a broader public

purpose for:

General financial assistance (stimulation and support) to eligible recipients under

specific legislation authorizing the assistance; and

Financial assistance (stimulation or support) to a specific program activity eligible for

assistance under specific legislation authorizing the assistance.

Grants and cooperative agreements are quite similar. NOAA awards a grant when it

contemplates no substantial involvement between itself and the recipient. When there is likely to

be substantial Government involvement during performance, a cooperative agreement is used.

This distinction in the degree of federal involvement is the major practical difference between

the two award instruments. Appendix A depicts this process.

E. Interagency and Intra-agency Agreements

An assisted acquisition is a type of interagency acquisition where a servicing agency performs

acquisition activities on a requesting agency’s behalf, such as awarding and administering a

contract, task order, or delivery order. The Economy Act provides the authority for the transfer

of funds to another Federal agency for such acquisitions if it can be shown that the receiving

agency is able to provide the required goods or services more economically or efficiently than

the funding agency. The receiving agency may provide the goods or services directly using its

own employees or may contract for them (in whole or in part). The authority to transfer and

receive funds to or from another agency is also provided for under the National Aeronautics and

Space Act when necessary to advance the mission and program objectives of the National

Aeronautical and Space Administration (NASA).

Two types of agreements may be used to transfer funds:

Interagency Agreement - an agreement between NOAA and another Federal entity other than a DOC component.

Intra-agency Agreement - an agreement between NOAA and another DOC component.

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The respective roles of both the funding and receiving agencies are spelled out in the agreement.

If the receiving agency contracts out, the procurement is accomplished under its rules and that

agency normally carries out both the CO and COR functions.

The process for interagency and intra-agency agreements is governed by the procedures of the

Agencies involved and the FAR. Prior to requesting that another agency conduct an acquisition

on its behalf, the requesting agency must make a determination that the use of an interagency

acquisition represents the best procurement approach. The determination must include an

analysis of procurement approaches, including an evaluation by the requesting agency that using

the acquisition services of another agency: 1) satisfies the requesting agency’s schedule,

performance, and delivery requirements; 2) is cost effective; and 3) will result in the use of funds

in accordance with appropriation limitations and compliance with the requesting agency’s laws

and policies. As part of the best procurement approach determination, the requesting agency

must obtain the concurrence of the requesting agency’s responsible contracting office in

accordance with internal agency procedures.

F. General Acquisition Background

Depending on factors such as what is being purchased and how much money is being spent, the

acquisition staff has a number of specific methods available to meet your needs. Appendix B

depicts a typical flow from your identification of need to contract closeout. Below is a list of

frequently asked questions (FAQs) and the corresponding responsesregarding the process.

1. How long will it take to process my requirement?

Depending upon the complexity of the requirement, it can take from a few weeks (for an

administrative change) to 12 months (for a complex, high dollar, competitive contract).

Appendix C presents typical time frames for various types of actions. These are the normal time

frames; however, the processing time for a given acquisition may take longer, especially during

the fourth quarter of the fiscal year.

2. Is there a quicker way?

Yes. There are a number of methods available to reduce procurement times when buying

commercial items and services. Orders may be placed against

existing GSA Federal Supply Schedule contracts and Government-wide Indefinite Delivery

contracts established by other Federal agencies and NOAA that provide a broad range of

products and services. When the requirement fits within one of those established contracts,

issuing an order against the contract takes far less time than processing a new procurement.

Additionally, under FAR Subpart 13.5, COs may use simplified acquisition procedures for the

procurement of commercial items up to a specified maximum dollar threshold (currently $7

million ($13 million for acquisitions as described in FAR 13.500(c)). Use of those procedures

significantly decreases procurement processing times.

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3. What are the levels of competition?

Competition is a cornerstone of the Federal acquisition system. The Competition in Contracting

Act of 1984 requires that Federal Government agencies use full and open competition and

competitive procedures in their procurement activities with certain limited exceptions. The

benefits of competition in acquiring goods and services from the private sector are well

established. Competitive contracts can save money, improve contractor performance, and

promote accountability for results. For those reasons, full and open competition is preferred over

either limiting competition or going to a single source. AGO embraces the use of competition to

obtain the best possible value for Clients and deviates from competition only when justified in

accordance with applicable regulations.

4. Are there mandatory sources?

Yes. Mandatory sources must be considered for certain goods and services in preference to use

of commercial sources. These include Federal Prison Industries (UNICOR) and the Committee

for Purchase from People Who Are Blind or Severely Disabled.

5. What about commercial items or services?

Commercial items or services are preferred if they are available and meet the Government's

requirements. The use of commercial items and services should result in savings in acquisition

cost, processing time, and post-award administration, thereby requiring fewer NOAA Client and

contract office resources. To further reduce processing time, commercial items can be bought at

any dollar level and can employ simplified acquisition procedures for purchases up to $7 million

($13 million for acquisitions as described in FAR13.500(c)).

6. What socioeconomic programs apply to NOAA?

The Small Business Act establishes the policy for each agency to place a fair proportion of its

acquisitions with various types of small

business concerns. Consequently, when

NOAA acquires goods or services in the

open market, a number of socioeconomic

programs or sources are considered such

as the 8(a) program, small businesses,

women-owned small businesses, and

service disabled veteran-owned small

businesses. AGO fully supports the

Federal socioeconomic programs and

strives each year to meet the established

program goals; however, we do so only

when contracts awarded will meet the

Client’s technical requirements at fair

and reasonable prices.

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7. What are the methods of contracting?

There are three basic methods: Sealed Bidding, Contracting by Negotiation, and Simplified

Acquisition Procedures.

Sealed Bidding is a method of contracting prescribed in FAR Part 14, that employs competitive

bids, public opening of bids, and award to the lowest priced acceptable bidder.

Contracting by Negotiation is a method of contracting prescribed in FAR Part 15 and is the

process used most often by NOAA when conducting acquisitions over the Simplified Acquisition

Threshold. When using contracting by negotiation methods, Federal contracting agencies solicit

proposals from the public. After receipt of proposals, the negotiation process allows

for discussions, clarifications, revision of proposals and allows for the Government to negotiate

pricing and other critical aspects that may lead to better value.

Simplified Acquisition Procedures (SAP) are the methods prescribed in FAR Part 13 for

purchasing supplies or services. They are designed for relatively simple Government

requirements, and their use is subject to designated dollar thresholds. Examples of items

commonly purchased using SAP include office supplies, computer software, and groundskeeping

services. The procedures exempt contracts at or below $150,000 from a variety of laws and

regulations, reduce administrative costs, improve opportunities for small businesses to obttain a

fair portion of Government contracts, and promote efficiency and economy in contracting.

Awards can be made by using one of the following simplified procedures:

Purchase Orders

Government-wide Commercial Purchase Card

Blanket Purchase Agreements

Electronic Commerce

GSA Federal Supply Schedule Contracts

Clients should take full advantage of using these streamlined procedures to meet the Client’s

needs when feasible rather than pursuing more complex contracting procedures. Note that there

are no dollar limits when using GSA Federal Supply Schedules. Since the contracting has

already been done, orders may be placed against these contracts far more quickly than initiating a

new procurement. Visit the GSAeLibrary link to find supplies/services that meet the Client’s

needs, determine delivery information, and compare prices.

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8. What contract types are available

when contracting?

The FAR provides for two broad categories

of contract types—fixedprice and cost-

reimbursement. The first category is a

fixed-price contract, which provides for a

price that is not subject to any adjustment

on the basis of the contractor’s cost

experience in performing the contract. The

second category consists of a cost-

reimbursement contract, which provides for

payment of allowable, allocable, and

reasonable incurred costs to the extent

prescribed in the contract. A cost-reimbursement contract establishes an estimate of total cost for

the purpose of obligating funds and establishing a ceiling that the contractor may not exceed

(except at its own risk) without the approval of the CO. Each category consists of many

variations of these two types of contracts, but the essential characteristics within each category

are the same.

9. What are the key differences?

The contract types differ in two key respects. One difference is the amount of risk placed on the

Government and the contractor which varies based on the specific contract type. The other is the

degree of contract management or administration that each type places on the Government.

10. Why are fixed-price contracts preferred?

Fixed-price contracts are not necessarily preferred. The benefit of the firm-fixed-price contract

type is that it places maximum cost risk on the contractor and little cost risk on the Government.

The contractor makes a commitment in the contract to deliver all supplies or perform specified

services at the times specified in return for the fixed price. A contractor that fails to perform the

contract is liable for breach of contract, which can bring severe additional costs on the

contractor.

11. What contract type would be appropriate when our needs cannot be stated with

certainty?

Cost-reimbursement contracts may be used when circumstances do not allow the agency to

define its requirements sufficiently to allow for a fixed-price type contract or when uncertainties

involved in contract performance do not permit costs to be estimated with sufficient accuracy to

use any type of fixed-price contract.

Like fixed-price contracts, there are a number of variations. A common type of cost-

reimbursement contract used by NOAA is the cost-plus-fixed-fee (CPFF) contract. This type of

contract provides for payment to the contractor of a negotiated fee that is fixed at the inception of

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the contract. A CPFF contract is suitable for the performance of research or preliminary

exploration or study when the level of effort required is unknown or when the contract is for

development and test and use of a different type of cost-reimbursement contract is not practical.

Another contract type that can be used is a time-and-materials contract. This contract type

provides for acquiring supplies or services on the basis of direct labor hours at specified fixed

hourly rates (that include wages, overhead, general and administrative expenses, and profit) and

actual cost for materials. This contract type is suitable only when it is not possible to estimate

accurately the extent or duration of the work required or to anticipate costs with any reasonable

degree of confidence. A labor-hour contract is a variation of a time-and-materials contract,

differing only in that materials are not supplied by the contractor.

12. What is the key difference with cost-reimbursement?

Rather than guaranteeing to perform all contract terms and conditions at a specified price, cost-

reimbursement type contracts provide for payment of allowable incurred costs, to the extent

prescribed in the contract. These contracts establish an estimate of total cost for the purpose of

obligating funds and establishing a ceiling that the contractor may not exceed (except at its own

risk) without the approval of the contracting officer. The contractor agrees to deliver its best

efforts to perform the requirements in return for reimbursement of their costs incurred.

13. Is their a better way given uncertain requirements?

Yes. NOAA can employ one of two incentive-type contracts. When the Client can identify

objective measurements, a cost-plus-incentive fee (CPIF) contract may be used. Otherwise, a

cost­plus-award-fee (CPAF) contract that employs subjective measurements can be written. In

either type, the contractor's fee can be adjusted downward for unsatisfactory performance or

increased for exceeding the contract’s required standards.

14. Is there another popular contract type used by NOAA?

AGO continually seeks to reduce procurement lead-times to better serve our Clients. The best

way to expedite procurements is to utilize existing Federal contracts to purchase required

products and services. This approach includes utilizing contracts issued by the GSA Schedules

program under which GSA establishes long-term Government-wide contracts with commercial

companies to provide access to millions of commercial products and services at volume discount

pricing. AGO COs simply issue task or delivery orders against the GSA contracts to purchase the

required products or services, thereby eliminating many of the steps and time required to solicit

and award a new open market contract. The orders can be placed either directly with the GSA

Schedule contractors or through the GSA Advantage!® online shopping and ordering system.

If repetitive requirements will be required over a specified period of time, COs can establish

Blanket Purchase Agreements under any GSA contract for convenience, efficiency, and reduced

costs. The CO simply evaluates different contractors on the applicable GSA Schedule for a

particular category of supply or service, and then establishes an ongoing agreement for

repetitive orders from the selected contractor. This process simplifies the filling of recurring

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needs for supplies and services, while leveraging the AGO’s buying power by taking advantage

of quantity discounts, saving administrative time, and reducing paperwork.

Other options for reducing procurement times are use of already established Indefinite-Delivery­

Indefinite-Quantity contracts awarded by DOC, NOAA, and other Federal agencies (known as

Government-wide Acquisition Contracts, or GWACS). Typically, the agencies make multiple

awards to a number of contractors that can be considered for award of orders depending upon the

ordering agencies’ specific requirements. Award of the task order is typically made on a best-

value basis, which is an expected outcome of an acquisition that, in the Government’s

estimation, provides the greatest overall benefit to the Government in response to the

requirement.

G. Pre-Solicitation Phase

Lead: Client Office

Support: Acquisition Office

The steps in this first phase of the acquisition

process are accomplished in a logical

sequence and are designed to produce the

following two major documents: (a) the

acquisition plan and (b) the procurement

request (PR) package. Appendix B depicts the

overall process.

1. What is acquisition planning all about?

Acquisition planning is the best way of

ensuring that the product or service will be acquired in the most efficient, trouble-free manner.

This process should begin as soon as a Client need is identified and it is obvious that the need

must be met outside the Government. Acquisition planning involves a general consideration of

all the elements that will be required in connection with a particular acquisition. This process

may be simple or elaborate, depending on the cost, political sensitivity, complexity, or

importance of the item or service being acquired. Advanced planning helps both the CO and the

Client to efficiently procure products and services by enabling them to allocate and schedule the

work involved in an acquisition and to resolve potential problems early in the process.

Remember the old adage: "Failing to plan is planning to fail?" Failing to plan the overall

acquisition workload of an office may result in awarding an inordinate percentage of contracts in

the closing months, weeks, and even days of the fiscal year. This excessive year-end spending

invites increased intervention and scrutiny from Congress, the Office of Management and

Budget (OMB), and the media. The key to avoiding this is to begin advance acquisition planning

early in the fiscal year.

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2. What is Pre-Solicitation all about?

This phase consists of those exploratory and planning activities including: defining the

requirement; conducting market research; planning for the acquisition, including determining

the potential for alternative ways of meeting the requirement and considering approaches that

foster contractor innovation and creativity; and preparing the necessary documentation to

publicize the acquisition.

3. What is the concern over personal services?

A personal services contract is characterized by the employer-employee relationship it creates

between the Government and the contractor’s personnel. The Government is normally required

to obtain its employees by direct hire under competitive appointment or other procedures

required by the civil service laws. Obtaining personal services by contract, rather than by direct

hire, circumvents those laws unless Congress has specifically authorized acquisition of the

services by contract. Agencies are

therefore prohibited from awarding

personal services contracts unless

specifically authorized by statute to do

so.

An employer-employee relationship

under a service contract occurs when,

as a result of either the contract’s terms

or the manner of its administration

during performance, contractor

personnel are subject to the relatively

continuous supervision and control of a

Government employee. These

inappropriate relationships tend to

occur most often when the contractor’s

personnel are performing work on-site at a Government facility, contractor employees work side-by-side with civil service employees, and the services are ongoing for a year or more.

Extra care must be taken in writing the contract statement of work to ensure that it does not lead to contracting for personal services. The statement of work must avoid references to direct Government supervision or evaluation of contractor employees or other statements that would appear to reflect a less-than-arm's-length arrangement. Even if this pitfall is avoided at this stage, Government personnel monitoring work under the contract must be continuously mindful of the personal services question during post­award contract administration. A properly written contract can become an illegal personal services contract through treating contractor employees as though they are Federal employees.

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H. Solicitation, Evaluation, and Award

Lead: Contacting Office

Support: Client Office

1. That is a long title. What is going on in this phase?

Procurements over the simplified acquisition threshold typically involve (a) issuing the

solicitation to the public; (b) conducting a pre­proposal conference (if necessary); (c) dealing

with contractor queries about the solicitation; (d) amending the solicitation (if required); (e)

receiving and evaluating proposals and determining capability of prospective contractors; (f)

selecting the proposal offering the best value; and (g) awarding the contract. The CO has the lead

responsibility for ensuring that these activities are carried out fairly and equitably and in

accordance with governing laws and regulations. The Client provides the necessary technical

advice and input for evaluating proposals. Appendix B depicts the overall process.

The CO develops the solicitation based on input from the Client which was provided to the

acquisition division in the form of a PR package. The PR package is a set of documents prepared

by the Client that serves to initiate the procurement process for a new requirement or

modification of an existing contract. The content of that package and the discussions between the

Client and the CO leading to its development are critical to ensuring a timely solicitation that

will be effective in communicating the requirement to the potential offerors.

2. How do companies find out about my requirement?

A "synopsis" is prepared that tells prospective offerors, in general terms, the requirements of the

contract. The synopsis is posted on the Federal Business Opportunities (FedBizOpps) website.

The purpose of FedBizOpps is to collect, maintain, and disseminate information on Federal

procurement solicitations to the public. The system also collects voluntary contact information

(e-mail addresses) on individuals and company information on vendors who use FedBizOpps to

find and respond to Federal business opportunities for their products and/or services. After the

required publication time, a solicitation is issued to those parties expressing an interest in the

procurement.

3. What is the next step?

Offerors then prepare and submit proposals either electronically or in writing as directed. The

proposals are evaluated by individuals designated by the Client against the evaluation factors and

significant sub-factors that are tailored to the acquisition and identified in the solicitation.

Evaluation factors represent the key areas of importance and emphasis to be considered in the

source selection decision and support meaningful comparison and discrimination between and

among competing proposals. Both the CO and the Client determine whether the proposed costs

are reasonable and the offeror exhibits an understanding of the work to be accomplished. Award

is made on the basis of the best value to the Government.

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4. How long do we have to review proposals?

Appendix C presents typical time frames for various types of procurement actions. The time

required for the technical evaluation panel to review proposals is dependent on a number of

factors, such as the complexity of the selection procedures, the number of proposals received,

and the availability of the reviewers to conduct and document evaluations. There is a direct

correlation between the time the technical evaluation panel takes to complete its review and the

time it takes to award the contract. The procurement time can be reduced by expediting the

technical review process and providing a well-documented evaluation to the CO.

5. When can I tell people that a contract has been awarded?

The CO is responsible for making all the necessary award notifications. Often, there are

requirements to notify the public, upper management, other Federal agencies, and Congress

(when applicable) prior to any public announcement of the contract award. When the

procurement is conducted under formal source

selection procedures, Federal statutes prohibit the

disclosure of source selection information.

Individuals disclosing such information are

subject to criminal and civil penalties. Therefore,

Clients are advised to contact the CO for guidance

before disclosing any information about a

proposed contract awardee.

6. What is a “protest” and why should I care?

Generally, a protest is a complaint against the solicitation, the evaluation process, or the award

decision. A protest may be filed within DOC, with various Courts, or with the Government

Accountability Office (GAO). While only a very small percentage of awards are protested, the

major concern for the Client is that when a protest is received, the procurement process may

stop. If filed prior to award, then no award may be made. If filed subsequent to award, the

contractor is ordered to stop work. A protest can take many months depending upon where it is

filed. Should the protest be denied, then the procurement process resumes where it left off. If a

protest is upheld, corrective action must be taken before the procurement can proceed. This can

result in additional costs to the Government.

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I. Post-Award Administration Phase

Lead: Acquisition Office

Support: Client Office

1. What are the key post-award goals?

Ensure that purchased supplies and services are:

Delivered or performed when and where specified in the contract;

Acceptable in terms of conforming to the contract’s specifications or work statement; and

Furnished in compliance with all other terms and conditions of the contract.

2. What do you mean by contract administration?

Contract administration involves ensuring that the contractor and the Government fulfill their

obligations under the contract awarded and that delivery of goods and services is in accordance

with contract requirements to meet the Client’s needs. A breakdown in administration can undo

all previous achievements discussed in the other sections of the Handbook.

3. How does the COR relate to the CO?

Contract administration is the legal responsibility of the CO. The CO is the only individual

authorized to award, modify, terminate, or make official decisions regarding the contract. The

CO delegates certain limited authority to the COR, designating him or her as the CO's technical

representative. The COR must obtain DOC-mandated training and certification and is

accountable to exercise his/her authority properly.

4. What are typical COR duties?

In most cases, the CO authorizes the COR to perform the following functions in administering

the contract:

Provide technical direction to the contractor as necessary in technical matters when such

direction will not affect cost, period of performance, or other terms or conditions of the

contract.

Hold conferences with the contractor;

Conduct on-site visits and perform surveillance;

Approve all products, services and technical data submitted by the contractor; and

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Review invoices submitted prior to payment.

The COR is not authorized to enter into any agreement that results in a change in the cost,

quantity, schedule, or other terms and conditions of the contract.

5. How long do we have to process an invoice?

Invoices should be processed within 4 days of receipt. The Prompt Payment Act requires the

Government to notify a contractor within 7 days if we believe there is something wrong with

their invoice. This must be done by the CO, or, if delegated, this can be performed by the COR.

Furthermore, the Office of Finance has only 30 days from submission to pay a proper invoice.

Please note that if an acceptable invoice is not paid timely, the Client is responsible to pay

interest charges regardless of why it was paid late; consequently, everyone involved must

process invoices promptly.

6. What are the basic types of modifications?

A “unilateral” modification is signed solely by the CO for such actions as exercising options,

making administrative changes, and issuing change orders. When the contractor is required to

sign the modification, it is called "bilateral" modification, also known as a "supplemental

agreement." A supplemental agreement typically adds time or effort or revises the existing terms

of the contract.

7. What does “scope” have to do with it?

Before initiating a modification, it is necessary to determine whether it is within the scope of the

existing contract or order, or outside the scope constituting a "new procurement." If the action is

within scope, the contract or order may be modified as requested. If it is outside the scope of the

contract or order, it must be treated as a new sole source requirement and processed as such with

the appropriate justification and approvals.

8. What is a “constructive change?”

A constructive change arises whenever, by action or inaction of the Government, the situation of

the contractor is so altered as to have the same effect as though a change order had been issued

by the CO under the Changes clause. Thus, the constructive change is a situation that can be

construed as having the effect of a change order.

An “unauthorized commitment” occurs when a COR or any other individual without contracting

authority directs a contractor to perform work not required by the contract. The responsible party

must perform the documentation requirements to ratify the unauthorized commitment and may

be subject to appropriate disciplinary actions.

15

9. What is a contract closeout?

The primary objectives of a contract closeout are to (a) identify and resolve any outstanding

obligations or pending liabilities of either the Government or the contractor, (b) deobligate

excess funds, and (c) ensure that contract-related decisions and actions have been properly

documented.

10. What is the Client’s role in closeouts?

The Client and the COR are responsible for (a) certifying that all deliverables required by the

contract have been received, (b) assisting with obligation or deobligation of funds, (c) accounting

for any Government property furnished or acquired, and (d) assisting the CO in addressing a

number of administrative matters. Also, the COR is required to complete an "Evaluation of

Contractor's Performance" that will serve as the basis for evaluating contractor past performance

when conducting future procurements.

J. Ethics and Standards of Conduct

Each year, the Federal Government spends over $400 billion on acquisitions. With this

magnitude of spending, it is inevitable that public officials who participate in the acquisition

process will come under close public scrutiny and may occasionally be subjected to situations

that may lead to improprieties, abuse of office, fraud, or theft.

By virtue of their position and responsibilities regarding the acquisition process, Clients are

particularly susceptible to improper influences from those who seek to do business with the

Government. This section briefly discusses those ethical conduct standards that are particularly

relevant to Clients. Government-wide standards are found at 5 CFR Part 2635.

1. Who is covered?

Federal employees are prohibited from soliciting or accepting gifts from prohibited sources or

gifts given because of their official position.

The term “prohibited source” includes anyone

seeking business with or official action by an

employee’s agency and anyone substantially

affected by the performance of an employee’s

official duties.

The Government-wide Standards of Ethical

Conduct deal with Government employees’

participation in matters affecting a personal

financial interest. The standards prohibit an

employee from participating “personally and substantially” as a Government employee in a matter in which they have a financial interest.

16

2. What are the possible consequences?

Criminal penalties may be imposed under 18 U.S.C. 208 for violations of these prohibitions. The

Standards provide alternatives to non-participation, which may involve selling or giving up the

conflicting financial interest or obtaining a statutory waiver that will permit the employee to

continue to perform specific duties.

3. What should I do if I have a conflict of interest?

Generally, employees who have a conflict of interest, as described above, must disqualify

themselves from participating in the acquisition process; however, this discussion of conflict of

interest is only a general treatment of a complex subject. The best advice is to contact the DOC’s

Office of General Counsel Ethics Law and Program Division.

4. Are there restrictions on the acquisition documents I may handle?

The public interest requires that certain information in the possession of the Government be kept

confidential and released only with

general or specific authority under

DOC or other regulations. Such

information may involve the national

security or be private, personal, or

business information that has been

furnished to the Government in

confidence. In addition, information in

the possession of the Government and

not generally available to the public

may not be used for private gain.

Federal statutes and regulations govern

the use and release of certain types of acquisition-related information. These requirements are

intended to promote the integrity of the Federal acquisition process. They permit non-Federal

participants to be confident that their protected data will be handled appropriately, and they

reduce the possibility that individuals will improperly benefit from the process through

inappropriate activity.

The "Standards of Conduct" include a prohibition against engaging in financial transactions

using nonpublic information, or allowing the improper use of nonpublic information to further

private interests. Most of the prohibitions against use of official information also apply to the

regulations governing conflict of interest. Government employees are sometimes able to obtain

information about an action the Government is about to take or some other matter that is not

generally known. Any inappropriate use of such official information is clearly a violation of a

public trust. Employees shall not, directly or indirectly, make use of official information not

made available to the general public for the purpose of furthering any private interest.

17

5. How does this apply to me?

Client representatives may be involved in formal exchanges of information with industry or may

receive communications about a requirement prior to the issuance of a solicitation, the receipt of

proposals, or the decision to award. Any use of acquisition-related information must be

consistent with requirements governing the use of procurement-sensitive information and other

aspects of procurement integrity. If necessary, Clients should consult with the CO to make the

necessary judgments on the use of acquisition-related information.

6. How do we protect the integrity of the acquisition process?

The term "integrity of the acquisition process'' in this instance means allowing private sector

firms to compete for the Government's business on a scrupulously fair basis. The emphasis here

is on the word "fair." Not only is fairness a prerequisite in Government acquisition due to the

Government's unique position as representative of the American people, but fairness also helps

ensure that the Government will obtain its supplies and services at the best price available.

Government personnel who are associated with the acquisition process have a responsibility to

protect its integrity, maintaining fairness in the Government's treatment of all vendors. There are

numerous points within the acquisition process where the potential to lose this fairness is high.

During the conduct of any acquisition, no person who has access to proprietary information may

make unauthorized disclosure of that information.

7. Are there post-employment restrictions if I work on an acquisition?

Yes. Post-employment restrictions are covered by 18 U.S.C. 207 and 5 CFR Parts 2637 and

2641, which prohibit certain activities by former Government employees, including

representation of an employee before the Government in relation to any contract or other

particular matter on which the former employee participated personally and substantially while

employed by the Government.

Although the above-mentioned requirements may have some punitive aspects in the event they

are violated, they should be understood in terms of their basic intent, such as to ensuring the

integrity of these processes. They also assist individuals to withstand pressures to approve the

expenditure of funds for purposes or recipients that could not otherwise stand the tests of

objective evaluation.

18

K. Glossary of Acquisition Terms

8(a) Program. A program, established by Section 8(a) of the Small Business Act that authorizes

the Small Business Administration to enter into all types of contracts with other agencies and

award subcontractors for performing those contracts to firms eligible for program participation.

Acceptance. An act by an authorized Government agent by which the Government assumes

ownership of supplies or approves services rendered. Acceptance may be either total or partial

and constitutes acknowledgement that the goods or services conform to applicable contract

quality and quantity requirements.

Acquisition. Acquiring by contract, using appropriated funds, supplies, or services (including

construction) by and for the use of the Federal Government through purchase or lease.

Acquisition Milestone Schedule. A time schedule planned jointly by the contracting office and

Client for accomplishing the major milestones in the placement of a contract.

Administrative Change. A unilateral contract change, in writing, that does not affect the

substantive rights of the parties.

Advance Payments. A method of contract financing where the Government makes partial

payments in anticipation of performance. They are liquidated as performance is completed.

Allowable Cost. A contractor cost that the Government will reimburse for the performance of a

contract, provided that it is allocable, reasonable, in accordance with generally accepted

accounting principles and practices, and complies with the terms of the contract.

Alternative Dispute Resolution (ADR). Any type of procedure or combination of procedures

voluntarily used to resolve issues in controversy.

Annual Appropriations. An appropriation that is available for incurring obligations only

during the single fiscal year specified in the Appropriations Act.

Antideficiency Act (ADA). Legislation enacted by the United States Congress to prevent the

incurring of obligations or the making of expenditures (outlays) in excess of amounts available in

appropriations or funds.

Apparent Authority. In commercial contracts, apparent authority is that which an agent

possesses by virtue of his or her title or position with the principal; however, actual authority is

required to bind the Federal Government.

Best Value. The expected outcome of an acquisition that, in the Government's estimation,

provides the greatest overall benefit in response to the requirement.

19

Bid. An offer submitted in response to an Invitation for Bids (IFB) to furnish supplies or

services to the Government under certain prescribed conditions at a stated or determined price, or

the act of submitting a bid.

Board of Contract Appeals. A Board that presides over various disputes involving Federal

executive branch agencies whose primary responsibility is to resolve contract disputes between

Government contractors and agencies under the Contract Disputes Act.

Bona Fide Need. An appropriations law rule mandating that a fiscal year's appropriation may be

obligated only to meet a legitimate need arising in (or sometimes before) the fiscal year for

which the appropriation was made.

Commercial Item. Any item, other than construction, that is of the type customarily used by the

general public or by non-Governmental entities for purposes other than Governmental purposes

and has been sold, leased, or licensed to the general public or offered for sale, lease, or license to

the general public.

Competition Advocate. An agency designee responsible for promoting the acquisition of

commercial items; promoting full and open competition; challenging requirements that are not

stated in terms of functions to be performed, performance required, or essential physical

characteristics; and challenging barriers to the acquisition of commercial items and full and open

competition.

Constructive Change. A constructive change order is an oral or written act or omission by the

contracting officer or other authorized Government official that is of such a nature that it has the

same effect as a formal written change order under the Changes clause of a contract.

Contract. A mutually binding legal relationship obligating the seller to furnish supplies or

services (including construction) and the buyer to pay for them.

Contract Administration. Contract administration is the management of all actions from the

time a contract is awarded until the work has been completed and accepted or the contract

terminated, payment has been made, and disputes have been resolved.

Contracting Officer (CO). A designated individual with the authority to enter into, administer,

and/or terminate contracts, and make related determinations and findings.

Contracting Officer’s Representative (COR). An individual designated and authorized in

writing by the contracting officer to perform specific technical or administrative functions.

Contracting. Purchasing, renting, leasing, or otherwise obtaining supplies or services from

nonfederal sources.

Controversy. An actual dispute between adverse parties which is capable of being resolved by

the court. It includes, but is not limited to, facilitation, mediation, fact-finding, mini-trials, and

arbitration.

20

Cost Analysis. The review and evaluation of the separate cost elements and profit or fee in an

offeror’s or contractor’s proposal to determine a fair and reasonable price or cost realism.

Cost or Pricing Data. All facts that, as of the date of price agreement (or, if applicable, an

earlier date agreed upon between the parties that is as close as practicable to the date of

agreement on price) prudent buyers and sellers would reasonably expect to affect price

negotiations significantly.

Cost Realism. An offeror's proposed costs are realistic for the work to be performed, reflect a

clear understanding of the requirements, and are consistent with the offeror's technical proposal.

Cost-Reimbursement Contract. A cost-reimbursement type of contract provides for payment

of allowable incurred costs, to the extent prescribed in the contract; establishes an estimate of

total cost for the purpose of obligating funds; and establishes a ceiling that the contractor may

not exceed (except at its own risk) without the approval of the contracting officer.

Cost Sharing. An explicit arrangement under which the contractor bears some of the burden of

reasonable, allocable, and allowable contract cost.

Day. Means a calendar day unless specified otherwise.

Debarred. When an action has been taken by a debarring official to exclude a contractor from

Government contracting and Government-approved subcontracting for a reasonable, specified

period.

Determination and Findings. Special form of written approval by an authorized official that is

required by statute or regulation as a prerequisite to taking certain contract actions. The

"determination" is a conclusion or decision supported by the "findings.” The "findings" are

statements of fact or rationale essential to support the determination that cover each requirement

of the statute or regulation.

Electronic Commerce. A paperless process, including email, electronic bulletin boards,

electronic funds transfer, electronic data interchange, and similar techniques for accomplishing

business transactions.

Fair Market Price. The price that a buyer is willing, but is not under any duty, to pay for a

particular product or service to a seller who is willing, but not obligated, to sell.

Federal Acquisition Regulation (FAR). The principal set of rules in the Federal Acquisition

Regulations System that governs the acquisition process by which executive agencies of the U.S.

Federal Government acquire goods or services by contract with appropriated funds.

Federal Supply Schedule Contracts. Indefinite delivery contracts awarded by the General

Services Administration that provide Federal agencies with a simplified process for obtaining

commercial supplies and services at stated prices for given periods of time.

21

Freedom of information Act (FOIA). The Freedom of Information Act provides that

information is to be made available to the public either by publication in the Federal Register;

providing an opportunity to read and copy records at convenient locations; or, upon request,

providing a copy of a reasonably described record.

Full and Open Competition. When used with respect to procurement, means that all

responsible sources are permitted to submit sealed bids or competitive proposals on the action.

Government Property. All property owned or leased by the Government (including material,

equipment, special tooling, special test equipment, and real property, but not intellectual property

and software).

Gratuity. Any gift, favor, entertainment, hospitality, transportation, loan, any other tangible

item, and any intangible benefit, given or extended to, or on behalf of, Government personnel or

their spouses, minor children or households, for which fair market value is not paid by the

recipient or the Government.

Head of the Contracting Activity (HCA). The Agency head authorized to contract for supplies

and services and responsible for ensuring that all contract actions comply with the law and

acquisition regulations.

HUBZone Small Business Concern. A small business concern located in an historically

underutilized business zone certified by the Small Business Administration (SBA) and included

on SBA’s list of Qualified HUBZone Small Business Concerns.

Incremental Funding. A method of funding contracts that provide specific spending limits that

are less than the total estimated cost/price of the entire contract, with the understanding that

additional funds are expected to be provided at a later date.

Interagency or Intra-agency Agreement. A formal agreement between two or more

Government agencies (interagency) or two or more DOC Operating Units (intra-agency)

involving a transfer of funds in exchange for supplies or services.

Invitation for Bids (IFB). The solicitation document used in sealed bidding acquisitions that

describes the Government requirements clearly, accurately and completely and includes all

documents furnished to prospective bidders for the purpose of bidding.

Level of Effort. A contract requirement that obligates the contractor to devote a specified level

of effort for a stated period of time on work that can be stated only in general terms.

List of Parties Excluded from Federal Procurement and Non-procurement Programs. A

consolidated list of parties maintained by the GSA of those debarred, suspended, or excluded

from receiving grants, cooperative agreements, or contracts for a specified time.

Micro-purchase. An acquisition of supplies or services, the aggregate amount of which does

not exceed the micro-purchase threshold.

22

Negotiation. Act of two or more parties discussing points of a potential partnership

arrangement, the goal if which is for an agreement to be made that is beneficial to all involved

parties. Discussions may go back and forth between parties until all points have been agreed

upon.

Non-personal Services Contract. A contract under which the personnel rendering the services

are not subject, either by the contract’s terms or by the manner of its administration, to the

supervision and control usually prevailing in relationships between the Government and its

employees.

Offer. A response to a solicitation that, if accepted, would bind the offeror to perform the

resultant contract. Responses to invitations for bids (sealed bidding) are offers called “bids” (see

definition of “bid” above) or “sealed bids”; responses to requests for proposals (negotiation) are

offers called “proposals.” Responses to requests for quotations (simplified acquisition) are

“quotations,” not offers.

Offeror. An individual or firm responding to solicitation.

Option. A unilateral right in a contract by whichthe Government may elect to purchase

additional supplies or services called for by the contract, or may elect to extend the term of the

contract for a specified time.

Partial Termination. The termination of a part, but not all, of the work that has not been

completed and accepted under a contract.

Past Performance Information. Relevant information regarding an offeror’s or contractor’s

performance on active and physically completed contracts that includes such considerations as

quality, timeliness, responsiveness, and cost control.

Performance Based Contract. A contract structured around the results to be achieved as

opposed to the manner by which the work is to be performed.

Performance Work Statement (PWS). A statement of work for performance-based

acquisitions that describes the required results in clear, specific, and objective terms with

measurable outcomes.

Personal Services Contract. A contract that, by its express terms or as administered, makes the

contractor’s personnel appear to be, in effect, Government employees.

Pre-award Survey. An evaluation by a surveying activity of a prospective contractor's

capability to perform a proposed contract.

Price Analysis. The process of examining and evaluating an offeror's price without evaluating

the individual elements of cost and profit that makes up the price.

23

Procurement Request (PR). A document that initiates the contracting process and provides

funding to cover the estimated cost of the goods or services to be purchased.

Proprietary Information. Information contained in a bid or proposal, cost or pricing data, or

any other information submitted to the Government by a contractor that is designated by the

contractor as proprietary and must be treated as proprietary by the CO.

Protest. A written objection by an interested party to a solicitation or award, cancellation, or

termination of a contract.

Quality Assurance. The process performed by the Government at a designated place to

determine that the supplies or services provided by the contractor conform to contract

requirements.

Ratification. The act of approving an unauthorized commitment by an official who has the

authority to do so.

Responsibility Determination. An affirmative determination by the contracting officer that a

contractor has the ability to obtain resources required to perform the contract; has a satisfactory

record of prior contract performance integrity and business ethics; and is otherwise qualified and

eligible to receive a contract award.

Request for Proposal. A document used in negotiated acquisitions to communicate

Government requirements to prospective contractors and to solicit proposals.

Sealed Bidding. A method of contracting that employs competitive bids, public opening of bids,

and awards.

Section 8(a). The section of the Small Business Act [15 USC 637 (a)] that established a

program, commonly referred to as the “8(a) program, authorizing the Small Business

Administration to enter into contracts with other agencies and award subcontracts for performing

those contracts to firms eligible for program participation, referred to as "8(a) contractors.”

Senior Procurement Executive (SPE). The individual who is responsible for managing the

acquisition function of the executive agency, including implementation of the unique acquisition

policies, regulations, and standards of the agency.

Service Contract. A contract that directly engages the time and effort of a contractor whose

primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Service-Disabled Veteran Owned Business. A small business concern at least 51 percent

owned and whose daily management is controlled by one or more service-disabled veterans.

Set-Aside. The restricting of certain acquisitions for participation by only small business

concerns or a specific small business program..

24

Shall. A term used in Government contracts to denote the imperative.

Simplified Acquisition Procedures (SAP). The methods described in Part 13 of the FAR for

making purchases of supplies or services up to the established simplified acquisition threshold.

Simplified Acquisition Threshold. Currently applies to procurements between $3,500 and

$150,000.

Small Business Concern. A domestic company organized for profit that is independently

owned and operated, is not dominant in the field in which it is bidding, and meets the size

standard for a small business as listed and described in the North American Industry

Classification System (NAICS) manual.

Small Disadvantaged Business. A small business concern at least 51 percent owned by one or

more individuals who are both socially and economically disadvantaged.

Sole Source Acquisition. A contract for the purchase of supplies or services that an agency

proposes to enter into after soliciting and negotiating with only one source.

Solicitation Evaluation Factors. Evaluation factors and significant sub-factors enable

meaningful comparison and discrimination between and among competing proposals and

represent the key areas of importance and emphasis to be considered in making the source

selection decision.

Source Selection Authority (SSA). The Government official responsible for selecting a source

or sources in a competitive negotiated acquisition. The title is most often used in conjunction

with high dollar, formal source selection procedures conducted under Part 15 of the FAR.

Source Selection Information (SSI). Information that is prepared, developed, or obtained by

the Government to conduct a particular procurement, of which the disclosure to another

contractor would jeopardize the integrity or successful completion of the procurement concerned,

and that must be handled in a manner that prevents unauthorized disclosure.

Statement of Work (SOW). The document that establishes and defines the Government’s

technical requirements for the goods or services to be purchased and delivered.

Stop-Work Order. A unilateral order of the CO requiring the contractor to halt all or any part

of the work called for under the contract.

Supplemental Agreement. A modification of an existing contract that is accomplished by the

mutual agreement of the parties.

Synopsis. A short description of a Government acquisition published on FedBizOpps (FBO) to

alert interested parties to an upcoming acquisition; find sources to provide products or services to

the Government; or inform interested parties of the results of procurement.

25

CI

Task Order. An order for services placed against an established Government contract.

Technical Evaluation. The process of evaluating an offeror’s proposal against the technical

requirements of the solicitation and rating the proposal accordingly.

Termination. The right of the Government to terminate performance of work under a contract

in whole or in part for either the convenience of the Government or for the contractor's default.

Unauthorized Commitment. An agreement that is not binding solely because the Government

representative who made it lacked the authority to enter into that agreement on behalf of the

Government.

Unsolicited Proposal. A proposal that is made to the Government by a prospective contractor

without prior formal or informal solicitation from a procuring activity.

Veteran-Owned Business. A small business concern at least 51 percent owned, and whose

daily management is controlled, by one or more veterans.

Woman-Owned Business. A small business concern at least 51 percent owned, and whose

daily management is controlled, by one or more women.

L. Acronyms and Abbreviations

ADR Alternate Dispute Resolution

BCA Board of Contract Appeals

CFR Code of Federal Regulations

CG Comptroller General

Commercial Item

CICA Competition in Contracting Act

CO Contracting Officer

COR Contracting Officer’s Representative

CPAF Cost-Plus-Award-Fee type contract

CPAT Cost-Plus-Award-Term type contract

CPFF Cost-Plus-Fixed-Fee type contract

26

CPIF Cost-Plus-Incentive-Fee type contract

FAR Federal Acquisition Regulation

FASA Federal Acquisition Streamlining Act

FFP Firm-Fixed-Price type contract

FFRDC Federally Funded Research and Development Center

FedBizOpps Federal Business Opportunities

FOIA Freedom of Information Act

FPI Fixed-Price-Incentive type contract

FSS Federal Supply Schedule

GAO General Accountability Office

GFP Government-Furnished Property

HCA Head of Contracting Activity

HBCU Historically Black Colleges and Universities

HUBZone Historically Underutilized Business Zone

IDIQ Indefinite-Delivery-Indefinite-Quantity type Contract

IFB Invitation for Bid

JOFOC Justification for Other Than Full and Open Competition

JWOD Javits-Wagner-O’Day Act

LOE Level-of-Effort type contract

MI Minority Institutions

NAICS North American Industry Classification System

NIB National Industries for the Blind

NISH National Industries for the Severely Handicapped

27

OFPP Office of Federal Procurement Policy

OSDBU Office of Small and Disadvantaged Business Utilization

PR Purchase Request

QA Quality Assurance

QC Quality Control

R&D Research and Development

RFP Request for Proposals

SAP Simplified Acquisition Procedures

SBA Small Business Administration

SBS Small Business Specialist

SSA Source Selection Authority

SOW Statement of Work

T for C Termination for Convenience

T for D Termination for Default

T&M Time-and-Materials (type contract)

TEP Technical Evaluation Panel

USC United States Code

28

Appendix A Decision Diagram for Selection of Legal Instrument

Purpose

Is the principle purpose to obtain a

public benefit using NOAA’s support

and assistance?

NO

Is there NOAA legislation

authorizing specific support or

assistance for the proposed activity

and to the proposed recipient?

Is there substantial NOAA

involvement during performance?

NO

NO

YES

YES

YES

Use a

CONTRACT

Re-evaluate or

redefine purpose

Use a GRANT

Use a Cooperative Agreement

29

Appendix B Negotiated Competitive Procurement

Identify Need

Investigate

Socioeconomic

Possibilities

Develop Statement

of Work

Submit PR

Package to AGO

Post Synopsis to

FedBizOpz.gov

Prepare

Solicitation

Package

Receive and

Distribute

Proposals

Post Solicitation to

FedBizOps.gov

Obtain

Management and

Legal Review

Evaluate Technical

Proposals

Evaluate Cost

Proposals

Establish

Competitive Range

(Continued on Next Page)

30

-

-

-

Negotiated Competitive Procurement (Continued)

Conduct Pre

Award Debriefings

(if requested)

Request Final

Revised Proposals

Conduct

Negotiations

Evaluate Final

Revised Proposals

Obtain Pre Award

Reviews and

Approvals

Contractor Returns

Signed Contract

Forward Contract

to Contractor for

Signature

Conduct Post

Award Debriefings

COR Reviews

Contract

Compliance

Contract

Modifications

Issued if Necessary

Award

Contract

Prepare Contract

Document

Close Out Contract

31

Appendix C Procurement Action Lead Times

Lead Time Range Procurement Type Dollar Value

(calender days)

$0 - $3,500 5 - 10 days

$3,501 - $25,000 10 - 30 daysSimplified Acquisition Procedures (Commercial Items)

$25,001 - $700,000 30 - 60 days

Above $700,000 60 - 120 days

$0 - $3,500 5 - 15 daysSimplified Acquisition Procedures (Other than

$3,501 - $25,000 15 - 45 daysCommercial Items)

$25,001 - $150,000 30 - 60 days

Blanket Purchase Agreement (BPA) Orders Any Amount 15 - 30 days

Task Orders under Indefinite Delivery Contracts Any Amount 30 - 60 days

$150,000 - $700,000 90 - 120 days

Sealed Bids (IFB) $700,001 - $1,500,000 120 - 150 days

Above $1,500,000 150 - 180 days

$150,000 - $700,000 90 - 120 days

Competitive Proposals (RFP) $700,001 - $1,500,000 120 - 180 days

Above $1,500,0000 240 - 360 days

Delivery Orders/Task Orders under GSA/FSS (not Any Amount 15 - 60 days

requiring a Statement of Work)

Noncompetitive Actions: Other Than Full and Open $150,000 - $700,000 90 - 120 days

Competition (includes 8(a), sole source, and urgent $700,001 - $1,500,000 120 - 180 daysactions - the latter two requiring submittal of a

Above $1,500,000 240 - 360 dayscompleted Justification & Approval)

$0 - $3,500 15 - 30 days

Task Orders under GSA/FSS (requiring a SOW) $3,501 - $700,000 90 - 150 days

Above $700,000 105 - 165 days

32

Appendix D

Do’s and Don’ts

The following is not an exhaustive listing, but indicates some known pitfalls to be aware of and

avoid.

DO communicate to the maximum extent practicable with industry, academia and other non-

Governmental sources to learn about the capabilities available to meet NOAA’s mission.

DON'T make commitments of any type to provide funding to non­Federal sources or solicit

"unsolicited" proposals as a means of making funds available. Examples include promises to

support conferences or meetings, to make up a shortfall in non-Federal funding, etc. If such

requests can be anticipated, seek the advice and assistance of contracting personnel as to the

propriety of the action and the choice of legal instrument.

DON'T provide any information to non-Federal sources or other Federal employees who do not

have "a need to know" about any planned or pending procurement action. Also, certain

information, such as proprietary and source selection information, is prohibited from being

released, and the release of other information may be inappropriate in a given instance.

DO refer any requests for information, either written or oral, about procurement actions currently

under solicitation to contracting personnel.

DON'T accept money or anything of more than nominal value either as an individual or on

behalf of the organization from any non­Federal organization. Promotional materials such as

pencils or calendars are considered to have nominal value.

DO consult contracting personnel about the propriety of participating in vendor promotional

training and the procedures to be followed.

DO consider engaging in vendor demonstrations to support market research activities and stay

abreast of the types of products, technology, and/or services available in the marketplace. Vendor

demonstrations to NOAA personnel must be authorized and conducted in accordance with the

procedures outlined in NOAA Acquisition Manual 1330-10.002-70. Contact the line or staff

office servicing Acquisition Division for guidance.

DO ensure that financial interests in any companies or organizations to whom NOAA may

potentially award grants or contracts are disclosed.

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Appendix E Dealing with Unsatisfactory Performance

Despite ongoing efforts to select the best contractors and to work with them during performance

to ensure timely, quality performance, sometimes serious problems are encountered. The

following are some of the key actions available.

1. What should be done about unsatisfactory work?

When unsatisfactory contract performance is identified, the COR must notify the Contracting

Officer promptly so remedial steps can be taken. The contractor could interpret silence on the

part of the Government as an acceptance of delinquent or poor performance.

The Government's actions can be oriented to correct the unsatisfactory performance or to protect

the Government's interest in the event of a contractor's default. Depending upon the seriousness

of the unsatisfactory performance, the CO may:

By letter or through a meeting, bring the particular deficiency to the attention of the

contractor and obtain a commitment for appropriate corrective action;

Extend the contract schedule if excusable delays in performance are involved;

Reduce the contract amount commensurate with the value of the unsatisfactory work;

Withhold contract payments in cases where the contractor fails to comply with delivery/performance or reporting provisions of the contract; or

Terminate the contract for default (all or part of the work).

2. What are the key remedies?

A stop-work order is a unilateral order of the CO requiring the contractor to stop all or part of the

work. It may result from a situation beyond the contract (e.g., the temporary shutdown of the

Government), or it may result from the contractor's performance. The contractor may be

compensated for certain losses in the event of a stop-work order, but it is required to resume

performance once the order is lifted.

Under a termination for convenience, which may result from changes in program direction, the

contractor may not challenge the decision but may submit a claim to the Government for costs

associated with the termination.

A contractor may be suspended or debarred from present and future contracts when such action

is required to protect the public interest.

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3. What happens when we cannot resolve issues with the contractor?

No matter how carefully a contract is negotiated and written, disputes can arise under

Government contracts. The Disputes clause is designed to ensure that disagreements between the

Government and the contractor will not interfere with the scheduled performance of the contract.

The Contracting Officer has broad powers to settle contractual matters. If agreement can be

reached between the two parties in regard to the controversy, a supplemental agreement is

negotiated between the two parties. If agreement cannot be reached, the issues are otherwise

resolved under the terms of the contract.

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