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Don Mansfield

“When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”

“The question is,” said Alice, “whether you can make words mean so many different things.”

“The question is,” said Humpty Dumpty, “which is to be master—that’s all.”

--Lewis Carroll, Through the Looking Glass

When Better Buying Power (BBP) 1.0 was first issued in September 2010, then Undersecretary of Defense for Acquisition, Technology, & Logistics (USD(AT&L)) Ashton Carter used the word “tradecraft” when describing one of the five “areas” of BBP initiatives. The area was called “Improving Tradecraft in Services Acquisition.” The initiatives that were subsequently identified under this area were:

· Create a senior manager for acquisition of services in each component, following the Air Force’s example

· Adopt uniform taxonomy for different types of services

· Address causes of poor tradecraft in services acquisition

· Increase small business participation in providing services

“Tradecraft” was also used by current USD(AT&L) Frank Kendall in the 2015 Defense Acquisition Performance Assessment:

The objective is to see how well we are doing, learn from these generalities, and change our policies and tradecraft as we seek to improve outcomes.

It would seem that both Carter and Kendall are using “tradecraft” to mean the knowledge and skills for a particular occupation. However, that’s not what “tradecraft” actually means, nor is it commonly used in that sense. According to Merriam-Webster online dictionary (www.m-w.com), “tradecraft” means “the techniques and procedures of espionage”. The Oxford English Dictionary (OED) online (www.oed.com), gave three definitions of “tradecraft” dating as far back as 1812:

a. A trade-guild

b. Skill or art in connection with a trade or calling; specifically skill in espionage and intelligence work

c. The craft or art of trading or dealing

In “’Tradecraft’ Infiltrates the Language” lexicographer Neal Whitman describes the resurgence of “tradecraft” in the language:

Tradecraft, which has been spy jargon since at least the 1960s, has been making its way into more mainstream consciousness recently, as we hear about operations like the search for Osama bin Laden, or about Edward Snowden's training as a spy. Maybe you were thinking that it referred to the knowledge and skills for any particular occupation, but tradecraft is a good example of how words, compounds, or phrases with seemingly transparent meanings can settle into semantic idiosyncrasy through historical circumstance.

Whitman uses a quote from Agent Maya in the movie Zero Dark Thirty to illustrate its most common use:

“Over the course of two months he's called home from six different pay phones, from two different cities, never using the same phone twice. And when his mother asked him where he was, he lied. He said that he was in a place in the country with bad cell reception—implying he was in the Tribals—but he was in Peshawar. I'm sorry, but that's not normal guy behavior. That's tradecraft.

The article continues:

These days, the most common meaning of tradecraft is indeed the one that Agent Maya had in mind. The Corpus of Contemporary American English, which contains 450 million words of English from 1990 through 2012, has 56 examples of tradecraft or trade craft, and of them only four (about 7%) do not have an espionage-related meaning. One of them refers author Paul Theroux's craft as a writer; one refers to medical skill; one refers to political savvy in dealing with upset constituents; and the last is a proper noun, apparently the name of an online travel advisory service (though I was unable to locate a current website for it). The remaining 93% of the COCA hits are more like these:

"Poor tradecraft, meeting in the open like this," Jake said.

It sure didn't sound like any CIA tradecraft I'd ever learned—but I wasn't going to argue.

Regarding the OED definition, Whitman explains:

However, tradecraft didn't start out with this intelligence-related meaning. The Oxford English Dictionary has it from 1812 with the meaning "the craft or art of trading or dealing." This citation from 1899 illustrates it well: "It is a lesson in tradecraft … to see how the girl holds her own with the dealers." And even now you can find examples like those lonely four that I found in COCA, as well as the occasional company name...

While it would not seem out of the ordinary to hear this use of “tradecraft” on an episode of Downton Abbey, the broad meaning of the word is virtually dead in Contemporary English. “Tradecraft” has settled into semantic idiosyncrasy. While I’m not above purloining a word from another field if I find no other word as apt, there are plenty of words that could have been used to describe the particular BBP area (“skill”, “expertise”, and “proficiency” come to mind). As acquisition professionals, we have a hard enough time communicating in the language of acquisition without adopting words from other fields (no matter how cool they sound). The Plain Language Action and Information Network (PLAIN) advises us to “understand your readers and match your language to their needs” (see http://www.plainlanguage.gov/howto/wordsuggestions/index.cfm). When choosing words, the objective should be to communicate, not to impress. Even if “tradecraft” meant what the authors of BBP thought it meant, its obscurity would still have made it a poor choice.

Eavesdropping, making dead drops, drycleaning--that's tradecraft. Creating senior manager positions in charge of service acquisition, adopting a uniform taxonomy for different types of services, increasing small business participation in service acquisition--that’s not tradecraft.

Don Mansfield

I read a lot of rules—proposed rules, interim rules, final rules, second proposed rules, second interim rules, etc. In fact, I decided a year or so ago that I would read all new rules in the Federal Register that affect the FAR or DFARS (I’m only a few rules behind as of this writing). In my reading, I noticed a strange phenomenon that went unexplained in the Federal Register notices—the letters “P” and “S” were getting smaller. That is, citations to FAR parts and subparts were being changed from “FAR Part X” and “FAR Subpart X.1” to “FAR part X” and “FAR subpart X.1” (Notice the lower-case “p” and “s”). I wondered what was going on. Who decided that lower case “p” and “s” were now correct? Why wasn’t the FAR Council following its own rules in the FAR Drafting Guide or at FAR 1.105-2( c)(3) (recently amended—more on that later), which both showed the correct way to cite a part or subpart is with an upper-case “P” or “S.”

I also submit a lot of public comments. My comments usually are usually technical in nature—I don’t get into whether this or that policy is good or bad for the Government. They are usually of something like “If you mean this, then I suggest you say it this way.” As such, I started pointing out that use of the lower-case “p” in “part” and “s” in “subpart” was inconsistent with both the FAR Drafting Guide and FAR 1.105-2( c)(3). Yes, important stuff. I was convinced that there was some unreasonable bureaucrat in the labyrinthine review process of FAR rules who would arbitrarily withhold approval until the “p” and “s” were lower-case. All they had to do was simply read either the FAR Drafting Guide or FAR 1.105-2( c)(3) and they would be forced to relent, I thought.

Eventually, I found out that there was more to the story. The change from upper-case to lower-case could be traced back to the 2008 version of the Government Printing Office Style Manual. The manual contains an entire chapter of capitalization rules (Chapter 3). Rule 3.9 states as follows:

A common noun used with a date, number, or letter, merely to denote time or sequence, or for the purpose of reference, record, or temporary convenience, does not form a proper name and is therefore not capitalized.

The list of examples following Rule 3.9 (or is it “rule 3.9”?) contains the entry “part I”. Chapter 4, which contains a list of capitalization examples, contains the entry “part 2, A, II, etc.; but Part 2, when part of title: Part 2: Iron and Steel Industry”. Ok, so there was no unreasonable bureaucrat to blame. However, the GPO Style Manual was inconsistent with both the FAR Drafting Guide and FAR 1.105-2( c)(3). “What a crisis!”, I thought.

This brings us to a technical amendment published in Federal Acquisition Circular 2005-60 (77 FR 44065) that formally amended FAR 1.105-2( c)(3) to illustrate the “correct” way to cite a part or subpart of the FAR:

Using the FAR coverage at 9.106-4(d) as a typical illustration, reference to the—

(i) Part would be “FAR part 9” outside the FAR and “part 9” within the FAR.

(ii) Subpart would be “FAR subpart 9.1” outside the FAR and “subpart 9.1’’ within the FAR.

Crisis averted. However, there still is a lot of text within the FAR that uses upper-case when referencing parts and subparts. These co-exist in the FAR with citations of parts and subparts that are lower-case. For example, FAR 4.1402( b ) starts with:

When contracting officers report the contract action to the Federal Procurement Data System (FPDS) in accordance with FAR subpart 4.6, certain data will then pre-populate from FPDS, to assist contractors in completing and submitting their reports.

The very next paragraph, FAR 4.1402( c) states:

If the contractor fails to comply with the reporting requirements, the contracting officer shall exercise appropriate contractual remedies. In addition, the contracting officer shall make the contractor’s failure to comply with the reporting requirements a part of the contractor’s performance information under Subpart 42.15.

It’s fair to say that my prodding probably had something to do with the change in FAR 1.105-2( c)(3). However, in retrospect, I’m not sure that the desired result—consistency—was achieved.

Don Mansfield

It seems that every few months we see a new article, report, or hear testimony predicting a mass exodus of "experienced" 1102s from the Federal workforce. Citing workforce data, the conclusion that is commonly drawn is that a "crisis" will result. If we just look at numbers it would seem that this would be a reasonable conclusion. However, has anyone given any thought to the caliber of the 1102s that are leaving the Federal workforce and those that are entering? Do we really need one new 1102 for every 1102 that leaves?

Consider the fact that one must now have a college degree to even be considered for an 1102 position, whereas most of the "experienced" 1102s that will soon be leaving did not have to meet such requirements. Many "experienced" 1102s entered the Federal workforce as clerks, typists, secretaries, etc., and stuck around the organization long enough to move into an 1102 position. That's not to say that these folks did not work hard or that they don't deserve their positions. I'm sure each office has its own success story to share in this regard.

In my experience, I have worked with "experienced" 1102s and I currently teach newbie 1102s. To generalize, the newbie 1102s are smarter, more motivated, and have more respect for the laws and regulations that govern their agency's acquisitions. Give me an office full of 1102s with less than 10 years of experience and we will work circles around an office of "experienced" 1102s with twice the staff. Our processes will be more streamlined, our employees more productive, and our acquisitions fully compliant with law and regulation.

Nothing is more discouraging than to hear stories of how newbie 1102s return to their offices after training, intent on making the necessary changes to ensure that their acquisitions comply with the FAR, only to effectively be told by "experienced" 1102s "I don't care what the FAR says, this is the way we've always done it and we're not about to change." I say good riddance to those folks.

To be fair, there are some "experienced" 1102s who are excellent--the Government will suffer when these folks leave. However, I would not place the majority of "experienced" 1102s in this category. When I hear about the impending exodus of "experienced" 1102s and the ensuing crisis, I'm reminded of a line from an REM song..."It's the end of the world as we know it...and I feel fine." How do you feel?

Don Mansfield

An interesting aspect of the new socioeconomic parity rules issued in Federal Acquisition Circular 2005-50 (see 76 FR 14566) is that we now have some scenarios where a contractor is better off not being a small business concern. The Discussion and Analysis section of the Federal Register notice contains the following statement:

For acquisitions exceeding the simplified acquisition threshold, the contracting officer must consider a set-aside or sole source acquisition to a small business under the 8(a), HUBZone, or SDVOSB programs before the contracting officer proceeds with a small business set-aside. See FAR 19.203( c ) and 19.502-2(B).

This policy is implemented at the new FAR 19.203( c ). Further, the new FAR 19.203(d) states the following:

Small business set-asides have priority over acquisitions using full and open competition.

Thus, for acquisitions over the simplified acquisition threshold (SAT), an agency must first consider the 8(a), HUBZone, SDVOSB, and WOSB programs (the latter recently being added by FAC 2005-51). If a requirement can be satisfied under one of these programs, the agency must use one of these programs. The agency is free to choose which of the four programs to use. If a requirement cannot be satisfied under one of these four programs, then the agency must consider a small business set-aside. If the requirement cannot be met by means of a small business set-aside, then the agency may solicit offers on an unrestricted basis.

Let?s assume the following scenario. There?s a requirement over the SAT and under the threshold for a HUBZone sole source (currently $6.5 million for manufacturing and $4 million for other acquisitions) that can be satisfied by three potential offerors. We?ll call them Offerors A, B, and C. Offeror A is a HUBZone small business concern and Offerors B and C are plain old small business concerns. Pursuant to FAR 19.203( c ), the agency would be required to proceed with a HUBZone sole source, since the HUBZone program takes precedence over small business set-asides. Offerors B and C would not have a chance to compete for the requirement.

Now let?s assume the same scenario, except Offerors B and C are large businesses. In this case, the agency would not be required to proceed with a HUBZone sole source. Offerors B and C would have an opportunity to compete for the requirement, if the agency chose not to proceed with a HUBZone sole source. FAR 19.203 gives priority to HUBZone sole source over small business set-asides, but is silent on the relationship between a HUBZone sole source and full and open competition (ditto for 8(a) sole source and SDVOSB sole source). FAR 19.1306 simply states:

A contracting officer may award contracts to HUBZone small business concerns on a sole source basis (see 6.302-5(B)(5)) before considering small business set-asides (see 19.203 and subpart 19.5), provided none of the exclusions at 19.1304 apply; and?

(1) The contracting officer does not have a reasonable expectation that offers would be received from two or more HUBZone small business concerns;

(2) The anticipated price of the contract, including options, will not exceed?

(i) $6.5 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing; or

(ii) $4 million for a requirement within all other NAICS codes;

(3) The requirement is not currently being performed by an 8(a) participant under the provisions of Subpart 19.8 or has been accepted as a requirement by SBA under Subpart 19.8;

(4) The acquisition is greater than the simplified acquisition threshold (see Part 13);

(5) The HUBZone small business concern has been determined to be a responsible contractor with respect to performance; and

(6) Award can be made at a fair and reasonable price.

[bold added].

According to FAR 2.101, ?may denotes the permissive.? ?May? is also used at FAR 19.1406 regarding SDVOSB sole source awards.

It would be reasonable to infer that competitive 8(a), HUBZone set-asides, and SDVOSB set-asides take precedence over full and open competition, because the conditions permitting any of these would imply that the conditions for a small business set-aside were present. However, the same cannot be said for HUBZone or SDVOSB sole source. The conditions permitting either a HUBZone or SDVOSB sole source do not imply that the conditions requiring a small business set-aside exist.

So there you go. Sometimes you?re better off being large. It will be interesting to see if the FAR Council will leave things as they are when the rule becomes final. If they do, we can expect this to be the next great debate in small business program policy.

Don Mansfield

NOTICE: The table originally posted contained an error in Step 4 of the HUBZone Program Decision Table. The entries for "Yes" and "No" were reversed, which implied that a HUBZone sole source was only permitted below the simplified acquisition threshold. In fact, the opposite is true. This has been corrected.

I created a Small Business Decision Table to help navigate the new small business rules contained in the FAR. Note that there is a lack of clarity on some issues in the interim rule on Socioeconomic Parity (implemented at FAR 19.203) and, as a result, I had to make some assumptions until these issues are clarified (hopefully) in the final rule. Specifically, I assumed that when the FAR says that the contracting officer "shall consider" course of action A before proceeding with course of action B, that means that course of action A would be required if the conditions permitting both course of action A and B were present. For example, FAR 19.203( c ) states:

Above the simplified acquisition threshold. The contracting officer shall first consider an acquisition for the 8(a), HUBZone, SDVOSB, or WOSB programs before using a small business set-aside (see 19.502-2( b )).

I interpret that to mean that if a contracting officer can satisfy a requirement using the 8(a), HUBZone, SDVOSB, or WOSB Programs, then she must do so?she has no discretion to bypass these programs and proceed with a small business set-aside because she thinks doing so would be in the best interests of the Government.

In public comments submitted to the FAR Councils, the Professional Service Council criticized the use of "shall first consider" at FAR 19.203( c ) as follows:

Section 19.203( c ) mandates that contracting officers "shall first consider" socioeconomic programs, in effect creating a disparity within the small business set-aside programs. However, the regulation fails to define what constitutes adequate consideration, or how the contracting officer is to demonstrate it?

...In the absence of a clear standard for "consideration," it is possible for contracting officers to construe this coverage as a mandate to use socioeconomic program acquisition programs ahead of and to the exclusion of other business categories. By removing the statutory preference for HUBZone awards, we do not believe that Congress intended to create another set of preferences through regulation.

I would prefer that the FAR Councils not attempt to define "adequate consideration," but instead cut to the chase. If the intent is to require use of the 8(a), HUBZone, SDVOSB, and WOSB Programs if possible, then state the rule using unambiguous language. For example, FAR 19.203(d) states:

Small business set-asides have priority over acquisitions using full and open competition.

Nobody is going to argue over what that means.

Lastly, there is an error in FAR 19.203 in that it implies that the SBA rule that once a requirement is in the 8(a) Program it must stay in the 8(a) Program only applies over the simplified acquisition threshold. That's wrong?it applies regardless of dollar value. The SBA regulations make no such distinction regarding dollar value. I'm told that this will be corrected in the final rule.

Don Mansfield

WARNING: OMB issued a memorandum on July 10 directing executive agencies to temporarily disregard the two GAO decisions discussed below until a full review can be conducted. Until such a review is conducted, do not use the table.

Depending on your point of view, two recent GAO decisions have either clarified or muddied our understanding of the rules pertaining to the order of priority for small business programs. In International Program Group, Inc., B-400278; B-400308, September 19, 2008, the GAO held that HUBZone set-asides take precedence over service-disabled veteran-owned small business (SDVOSB) set-asides and SDVOSB sole sources (a highly criticized decision). In Mission Critical Solutions, B-401057, May 4, 2009, the GAO held that HUBZone set-asides take precedence over the 8(a) program. In both cases, the GAO sought, and disagreed with, the SBA's interpretation of the relevant statutes.

Based on these two decisions, and the current rules that in FAR Part 19, I have created a table to assist in determining the order of priority for small business programs. Instructions and relevant references are provided in the table. The table assumes that the acquisition exceeds the simplified acquisition threshold.

Take a look and let me know if you have any questions or comments.

Don Mansfield

In a recent blog post, Steve Kelman took issue with GSA for the way they intend to evaluate past performance under the One Acquisition Solution for Integrated Services (OASIS) procurement (see “GSA is Saying What?"). Specifically, the evaluation scheme in the draft request for proposals (RFP) shows that GSA intends to weigh past performance with federal customers more heavily than past performance with nonfederal customers (the draft RFP is available for viewing on FedBizOpps). Kelman says that GSA’s approach is “not a good idea” and is hopeful that the OASIS program will “rectify this mistake.”

Kelman seems to acknowledge the uniqueness of the Government as a buyer and describes the accompanying problems as follows—

One of the problems with the government's procurement system is that government-unique regulations create a barrier to commercial, predominantly private-sector oriented companies doing more business in the government marketplace. This is a problem because -- like any tariff barrier -- it creates a hothouse environment where competition is lower and insiders can gain business based on mastery of procurement rules more than satisfying their customers. And the commercial environment is one where performance is strongly prioritized, and failure to perform is punished more swiftly than in a government environment. It's good for the government to hire firms that are used to such an environment.

Further, Kelman states—

Some government folks feel more comfortable with government-unique contractors who know the government's environment better. But if I were in the government and wanted to put a premium on performance, I would want to be sure I had access to predominantly commercial firms. At a minimum, such firms should be in a multiple-award mix, to increase the range of options available to government customers.

Kelman’s argument boils down to this—nontraditional Government contractors (what Kelman terms “commercial firms”) would be just as good, if not better, than traditional Government contractors (what Kelman terms “government-unique” contractors) at performing the work. That may be so, but it would be naïve to ignore the risk posed by an offeror with no Government contracting experience. Such an offeror will be faced with having to comply with a plethora of rules and regulations that would be new to them. In a blog post, Vern Edwards describes the situation as follows (see “Tips for the Would-be Clueless Contractor”):

Many small to medium sized companies go into government contracting without any idea of what they are getting themselves into. That might be okay with very small sales, but, otherwise, contracting with the U.S. government is the most complex business in the world. It’s right up there with trading derivatives. There are countless rules and contract clauses, many of which are exceedingly hard to understand.

As a buyer, there is value in an offeror having sold to you before—if for no other reason that the parties have a better idea of what to expect from each other. If this were not true, preferred supplier programs would not be so popular with the “commercial firms” that Kelman advocates for. If you are an extraordinarily unique buyer, like the U.S. Government, there is even greater value in an offeror that has sold to you before.

I don’t fault GSA for having a preference for offerors with more Government contracting experience. This is especially true given that the OASIS contracts will be noncommercial and will provide for orders on a cost-reimbursement basis. GSA did not make Government contracting as complicated for contractors as it is. If we want to criticize the procurement system, there’s plenty to talk about. But we shouldn’t react with feigned surprise and indignation when an agency is taking reasonable steps to operate within it.

Don Mansfield

It’s time we rethink our approach to the training problem. Our traditional approach is to dictate a blueprint of training classes that must be followed in order to obtain prescribed levels of certification. To put it in acquisition terms, we’ve been using a design specification. What if we were to use a performance specification instead? What might that look like? Before answering these questions, we should identify what it is we are trying to achieve with training.

The purpose of training is to make the trainee proficient in performing one or more defined learning objectives by means of specialized instruction and practice. A learning objective consists of three parts—an action, a condition, and a standard. For example, someone new to federal contracting will likely receive training to select FAR provisions and clauses (action) given a set of facts about an acquisition and access to the FAR (condition) (the implied standard would be “correctly”). It follows that if an individual already behaves in the prescribed way under the prescribed conditions to the prescribed standard, then training would be unnecessary for that individual—they’ve already attained the learning objective.

Under the “design specification” training model that we currently use, there is an implied assumption that an individual cannot attain the requisite learning objectives without following the prescribed blueprint of training classes. Further, there is no method of demonstrating the attainment of the requisite learning objectives prior to the prescribed training classes. As a result, everyone must take the required training classes, regardless of individual necessity. Considering the resources involved in carrying out such a program, this is an expensive proposition.

While the implied assumption of the “design specification” training model may prove true in some cases, a more reasonable assumption would be that some individuals need to follow the prescribed training blueprint and some do not. Those that do not would include those that have already attained the requisite learning objectives by other means and those that could without following the prescribed training blueprint. Thus, the challenge would be to identify those that don’t need a particular training class before requiring their attendance at the training class.

What if we borrowed the thinking behind performance-based acquisition and applied it to the training problem (i.e., a “performance specification” training model)? That is, instead of dictating how the workforce is to attain requisite learning objectives, we specify the requisite learning objectives (performance outcomes) and method of assessment, and let the workforce decide how they are going to attain them. Some workforce members may choose a program of self-study, others may study in informal groups, some contracting offices may develop their own ongoing training programs, etc. Still others may choose to follow the existing blueprint of training classes. Regardless of how one attains the requisite learning objectives, all are held to the same standard using the same method of assessment.

For an illustration of how such a model might look, consider the profession of actuarial science. Beanactuary.org contains the following description:

Like other top-ranked professions (such as law and medicine), one must pass a set of examinations to achieve professional status as an actuary. Unlike other professions, in actuarial science you’ll have the opportunity to work as an actuary while completing the examination process—employers often allow study time during working hours, pay exam fees, provide internships, and even award raises for each exam passed. Though, to get the best start on a rewarding career, many soon-to-be actuaries begin taking exams while still in college. Of those that do, most achieve associateship in three to five years. All candidates acquire a core set of knowledge from required preliminary exams. The preliminary exams and Validation by Educational Experience requirements are the starting points for an actuarial career.

To attain an “Associate of the Society of Actuaries” (ASA) designation from the Society of Actuaries, one must pass exams in probability, financial mathematics, models for financial economics, models for life contingencies, and construction and evaluation of actuarial models. In addition, there is one required e-Learning course and a required one-day seminar in professionalism. After attaining the ASA designation, one typically pursues a “Fellow of the Society of Actuaries” (FSA) designation within one of six specialties: corporate finance and enterprise risk management, quantitative finance and investment, individual life and annuities, retirements benefits, group and health, and general insurance. To attain the designation, the FSA candidate must take 3-4 more exams unique to the specialty, complete four e-learning courses, and attend a three-day case-based fellowship admissions course that requires each candidate to deliver an oral presentation on a topic within the field. In case you weren’t keeping track, that’s a total of four days of required attendance in classrooms to achieve the highest designation in the field. In contrast, DoD contract specialists must attend 32 days of classroom training to attain the lowest level of certification.

What if to attain level 1 certification in contracting, one had to pass exams in, for example: acquisition planning, contracting methods, contract types, socioeconomic programs, and contract administration, and attend a one-day seminar on ethics? After level 1, contract specialists would choose a specialty in which they would pursue Level 2 certification. Specialties would be, for example, major system acquisition, research and development contracting, construction and A/E contracting, service contracting, IT acquisition, acquisition of commercial items, contract administration, etc. To attain Level 2 certification, contract specialists would have to pass a series of exams unique to that specialty. For example, to attain Level 2 certification in service contracting, there would be exams on specification of service requirements, source selection for services, pricing services, and service contract administration. There could also be a Level 2 admissions course where the candidate would have to submit and present a paper on a topic related to their specialty.

If nothing else, use of the performance specification training model would cost less than the design specification model currently in use. I would go as far as to say that, on the whole, the workforce would be at least as competent as it is now.

What’s your opinion? We’d like to know.

Don Mansfield

Section 1331 of the Small Business Jobs Act of 2010 (Pub.L. 111-240) recognizes the significant opportunities that exist to increase small business participation on multiple award contracts and the ability of set-asides— the most powerful small business contracting tool—to unlock these opportunities. Under Section 1331, Federal agencies may: (1) set aside part or parts of multiple award contracts for small business; (2) reserve one or more awards for small businesses on multiple award contracts that are established through full and open competition; and (3) set aside orders under multiple award contracts awarded pursuant to full and open competition that have not been set-aside or partially set-aside, nor include a reserve for small businesses.

You can download the article "Section 1331 Authorities: A Primer" by clicking here.

Don Mansfield

I recently heard from a contractor regarding an experience he had with reverse auctions. A federal agency was conducting a reverse auction using FedBid and he decided to compete (FedBid, Inc., provides a service whereby federal agencies can conduct reverse auctions). Although he submitted several bids, he ultimately lost the reverse auction. When he checked to see who had won, he was surprised to see that the federal agency that was in need of the required items was the low bidder. In other words, the federal agency was submitting bogus bids in an effort to get the contractor to reduce his bid price. The federal agency then contacted him and offered to purchase the items from the contractor at his lowest bid price. Feeling that he had been duped, he told them to get lost.

The tactic employed by the federal agency, called phantom bidding, is not new. Many view the practice as unethical while others see it as a legitimate tactic. In regular auctions, the legality of seller participation in bidding varies from state to state. For those states that allow it, sellers typically must disclose that they reserve the right to participate in the bidding.

In any case, should the Federal Government be allowed to place phantom bids in reverse auctions? Would your answer be different if the disclosure of the practice was required prior to the reverse auction?

Don Mansfield

Myth-Information:

You have to rate proposals in a source selection.

When discussing the evaluation of competitive proposals with my students, I make a point of asking the following two questions (in order):

1. Are agencies required to evaluate proposals?

2. Are agencies required to rate proposals?

Usually, students respond affirmatively to question #1 and are able to support their answers by citing FAR 15.305(a), which states "An agency shall evaluate competitive proposals and then assess their relative qualities solely on the factors and subfactors specified in the solicitation." However, confusion sets in when I follow with question #2 and students read the very next sentence of FAR 15.305(a), which states "Evaluations may be conducted using any rating method or combination of methods, including color or adjectival ratings, numerical weights, and ordinal rankings." Clearly, the language regarding use of a rating method in conjunction with an evaluation is permissive, not mandatory.

"What's the difference?", "Why wouldn't you rate proposals?", "How do you decide who is the better value if you don't rate the proposals?" are typical student responses. These are all good questions.

Evaluation v. Rating

A good way to understand the difference between evaluation and rating is to look at a typical article in Consumer Reports (CR). Here?s an example of a summary evaluation of a new car?s ?Driving Experience? (model name omitted):

The ride is steady and composed. It absorbs bumps smoothly but is firm. Road noise is reduced, but the tires still rumble noticeably and slap over pavement joints. Routine handling is responsive and fairly agile. Body lean is suppressed, and the quick steering has good weight and feedback. It displayed good grip and balance in emergency maneuvers, and its standard electronic stability control is well calibrated. The [car] posted a commendable speed in our avoidance maneuver. The smooth 166-hp, 2.4-liter, four-cylinder engine provides adequate acceleration. The five-speed automatic transmission is very smooth and responsive. We measured 21 mpg overall on regular fuel. The all-wheel-drive system sends power to the rear wheels when needed more quickly than in the previous [model]. The brakes provided short, straight stops on wet and dry pavement. Low-beam headlights reached only a fair distance, and high beams reached a good distance.

?Driving Experience? was one evaluation factor under the heading ?Road Test.? CR also evaluated ?Reliability?, ?Safety?, and ?Owner Satisfaction?, to name a few. According to the Web site, there were over 50 different tests and evaluations performed on the car. Presumably, this produced a mountain of data. However, the typical car buyer does not have the time to peruse the data, nor do they fully understand it. As such, CR established a 100-point scale and a set of predetermined criteria to translate test and evaluation results into scores on the scale. In addition, they partitioned the scale into quintiles and assigned an adjective to each (Poor, Fair, Good, Very Good, and Excellent). Using this rating method, the car described above received a score of 74 and an adjectival rating of ?Very Good.? In this case, CR used a combination of rating methods (numerical scoring and adjectival rating) to translate complex evaluation results into an easily consumable format for its readers.

But Teach, Why Wouldn?t you Rate Proposals?

First, it's not required. Besides that, the results of the evaluation may not be particularly complex. For example, let?s say I used price and performance risk as my evaluation factors in a source selection. Performance risk had two subfactors?past performance and experience. In the solicitation, I instructed offerors to submit a one-page write-up and customer point of contact for each of their relevant contracts. The evaluation of performance risk consisted of an assessment of the write-ups as well as interviews with the customer points of contact to validate the offeror?s claimed experience as well as to ascertain how well the offeror performed. The evaluators then wrote an evaluation of each offeror?s performance risk, documenting the relative strengths and weaknesses of each. Why would it be necessary to translate this information into a rating? How would this aid my decision-making? I?m not going to be faced with volumes of information.

Another reason I would avoid the use of ratings is when I was dealing with evaluators that didn?t understand them. In my experience, when ratings are used, ratings are all you get. I can recall receiving technical evaluations that had nothing more than the word ?Excellent? (when I used adjectival ratings) or ?95? (when I used a numerical rating). I wanted an evaluation and I got a rating.

How do you decide who is the better value if you don't rate the proposals?

The answer is the same way that you would if you did rate proposals?by performing a comparative assessment of proposals against all source selection criteria in the solicitation. A source selection authority (SSA) relies on ratings to make their source selection decision at their peril. See, for example, Si-Nor, Inc., B-282064, 25 May 1999, where the source selection authority based her decision to award to a higher-priced offeror on the fact that the offeror had a higher past performance rating. One of the reasons the protest was sustained was because the SSA did not describe the benefits associated with the additional costs, as required by FAR 15.308. ?Because they had a higher rating? will typically fail to meet this requirement.

So we shouldn?t use ratings?

Not necessarily. The point is that you have discretion to use or not use ratings. Most people don?t know why they use ratings other than the fact that it?s traditional where they work. The decision to use (or not use) ratings should result from thoughtful deliberation, not a successful copy and paste from your office mate?s old source selection plan. A wise man once said ?Tradition is the hobgoblin of mediocre minds.?

Don Mansfield

There seems to be a closely held belief by some in the Federal contracting community that the FAR requires the contracting officer to perform a price analysis before awarding any contract. CON 111 used to contain the following statements:

You must use price analysis to ensure that the overall price is fair and reasonable. Even when an offeror is required to provide the most in depth type of proposal data ? data known as "cost or pricing data" -- you will still need to use price analysis to ensure that the overall price is fair and reasonable. Point: You'll always, always, always use price analysis!

A number of my colleagues, both practitioners and instructors, would agree with those statements. Further, I have had a number of students pre-programmed by their contracting offices to believe that price analysis is always required.

What does the FAR say?

Subparagraphs a(2) and a(3) of FAR 15.404-1 discuss the requirements for the performance of price and cost analysis:

(2) Price analysis shall be used when cost or pricing data are not required (see paragraph (B) of this subsection and 15.404-3).

(3) Cost analysis shall be used to evaluate the reasonableness of individual cost elements when cost or pricing data are required. Price analysis should be used to verify that the overall price offered is fair and reasonable.

Note that a(2) qualifies the requirement for price analysis with the language "when cost or pricing data are not required." To interpret a(2) to mean that price analysis is always required would render meaningless the qualifying language in the statement ("when cost or pricing data are not required"). Such an interpretation would be inconsistent with the fundamental principle that statutes and regulations must be read and interpreted as a whole, thereby giving effect to all provisions. See Waste Mgmt. of North Am., B-225551, B-225553, Apr. 24, 1987, 87-1 CPD ? 435 at 5.

Subparagraph a(3) sets forth the requirement for performing cost analysis (i.e., when cost or pricing data are required) and contains the statement that "Price analysis should be used to verify that the overall price offered is fair and reasonable." Does this statement require price analysis when cost or pricing data are required? To answer this, we need to review the definitions of "should" and "shall" in FAR 2.101:

"Should" means an expected course of action or policy that is to be followed unless inappropriate for a particular circumstance.

"Shall" means the imperative.

Thus, when cost or pricing data are required, the contracting officer is 1) required to perform cost analysis and 2) expected to perform price analysis unless it's inappropriate for a particular circumstance. That's different than stating that the contracting officer must perform both price and cost analysis when cost or pricing data are required. The implicit acknowledgement that price analysis could be inappropriate in a particular circumstance (and thus, not required) contradicts the assertion that price analysis is always required.

Why the Confusion?

I'm not sure why some folks think that price analysis is always required. Perhaps they haven't read the FAR carefully. I recently had my students read subparagraphs a(2) and a(3) and asked them whether it was true or false that price analysis was always required. They were split about 50% true 50% false. When I had the students who answered "False" re-read a(2) and a(3), I was able to get the split to about 15% true 80% false and 5% I don't know. I can live with that.

A more likely reason behind the existence of this myth is that an uncomfortably large number of people in our field do not know what the FAR says because they do not read it. Instead, they are guided by, and they repeat, rumors.

Don Mansfield

If the preconceived notions that our students are bringing to the classroom is any indication, there's a good deal of myth-information being spread regarding indefinite-delivery indefinite-quantity (IDIQ) contracts. The one belief that I want to focus on today deals with obligating the contract minimum upon award of an IDIQ contract.

You don't have to obligate the minimum when you award an IDIQ contract. You can wait until you issue an order to make obligations.

This belief usually stems from a fundamental misunderstanding of the difference between creating and obligation and recording an obligation. The difference is explained in Chapter 7 of the GAO Redbook (p. 7-8):

It is important to emphasize the relationship between the existence of an obligation and the act of recording.

Recording evidences the obligation but does not create it. If a given transaction is not sufficient to constitute a valid

obligation, recording it will not make it one. E.g., B-197274, Feb. 16, 1982 (?reservation and notification? letter held not

to constitute an obligation, act of recording notwithstanding, where letter did not impose legal liability on government

and subsequent formation of contract was within agency?s control). Conversely, failing to record a valid obligation

in no way diminishes its validity or affects the fiscal year to which it is properly chargeable. E.g., B-226782, Oct. 20,

1987 (letter of intent, executed in fiscal year 1985 and found to constitute a contract, obligated fiscal year 1985 funds,

notwithstanding agency?s failure to treat it as an obligation). See also 63 Comp. Gen. 525 (1984); 38 Comp. Gen. 81,

82?83 (1958).

[bold added].

When a contracting officer awards an IDIQ contract, she has obligated the Government to purchase the contract minimum. She has created an obligation. When that same contracting officer cites a long line of accounting (containing the appropriation citation) and a dollar amount on the award document, she has recorded an obligation (when she distributes the award document to her accounting office, they will record the obligation in the agency's books).

Let's say that the contracting officer awards the IDIQ contract, but does not record the amount of the Government's obligation on the award document. What has happened? An obligation has been created, but has not been recorded. Is there a problem with that? (Yes, go back and read the bolded sentence in the citation that I provided above). The problem is that the contracting officer has caused her agency to violate the ?recording statute,? 31 USCA ? 1501, which sets forth the criteria for recording an obligation as follows:

(a) An amount shall be recorded as an obligation of the United States Government only when supported

by documentary evidence of?

(1) a binding agreement between an agency and another person (including an agency) that is?

(A) in writing, in a way and form, and for a purpose authorized by law; and

(B.) executed before the end of the period of availability for obligation of the appropriation or fund used

for specific goods to be delivered, real property to be bought or leased, or work or service to be provided?..

In the second example I provided, there exists a binding document that meets the criteria of (1)(A) and (B.) (the IDIQ contract), but no obligation would have been recorded. The agency would have underrecorded its obligations. That's bad. Chapter 7 of the GAO Redbook (p. 7-6) states the following regarding under- and overrecording of obligations:

The overrecording and the underrecording of obligations are equally improper. Both practices make it impossible

to determine the precise status of the appropriation and can lead to other adverse consequences. Overrecording

(recording as obligations items that are not) is usually done to inflate obligated balances and reduce unobligated balances

of appropriations expiring at the end of a fiscal year. Underrecording (failing to record legitimate obligations)

may result in violating the Antideficiency Act. 31 U.S.C. ? 1341.

I always urge my students to take a course in Federal Appropriations Law at some time in their career--the sooner the better. Unlike Federal Acquisition Law, where the acquisition team is permitted to "assume if a specific strategy, practice, policy or procedure is in the best interests of the Government and is not addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, that the strategy, practice, policy or procedure is a permissible exercise of authority", there is very little flexibility when it comes to applying the rules Federal Appropriations Law.

Don Mansfield

Some of you were confused when I classified the following statement as myth-information in the Federal Contracting Myths thread:

Offerors with no record of past performance must be rated neutral.

Let me explain where I was coming from.

In April of 1994, OFPP used a variation of the word neutral with the term "past performance" in a Federal Register notice soliciting comments on their proposed pilot program to increase the use of past performance information in source selections. The notice stated:

"New" Firms. One of the most frequently asked questions about using past performance information in source selections is, "How are new firms to be treated?" In OFPP's view, new firms should be neither rewarded nor penalized as a result of their lack of performance history. If, for example, past performance is to be rated on a scale of one to ten, a new firm should be given the average score of the other competing offerors. Unless the RFP contains a specific requirement for prior performance based on safety, health, national security, or mission essential considerations, agencies should "neutralize" the past performance factor and evaluate the merits of proposals received from new firms in accordance with other stated evaluation criteria. [59 FR 18168-02]

In November of 1994, the Federal Acquisition Streamlining Act (FASA) (Public Law 103-355) amended 41 USC 405 to include a new subsection (j) implementing the Government's policy of considering past performance in source selections. (j)(2) contains the following language:

In the case of an offeror with respect to which there is no information on past contract performance or with respect to which information on past contract performance is not available, the offeror may not be evaluated favorably or unfavorably on the factor of past contract performance.

The FAR Council attempted to "plain language" the statute when it came time to implementing the new policy. In a proposed rule implementing the past performance information policy, FAR 15.608(a)(2)(iii) contained the following statement:

Firms shall be allowed to compete for contracts even though they lack a history of relevant past performance. [59 FR 8108]

When the final rule came out in March 1995 (FAC 90-26), the proposed rule was changed to read as follows:

Firms lacking relevant past performance history shall receive a neutral evaluation for past performance.

The background statement of the FAC stated that the final rule "clarifies that firms lacking relevant performance history shall receive a neutral evaluation for past performance." (60 FR 16718-01) However, since there is no discussion of the comments received in response to the proposed rule, it is unclear why the proposed rule needed clarification.

Apparently, the FAR Council thought that the rule needed even further clarification and proposed the following definition of a neutral evaluation in the first proposed FAR Part 15 Rewrite:

Firms lacking relevant past performance history shall receive a neutral evaluation for past performance. A neutral evaluation means

any assessment that neither rewards nor penalizes firms without relevant performance history. [61 FR 4830]

However, this only muddied the waters. The background of the second proposed rule provides the following explanation:

Several public comments requested that a definition of "neutral'' past performance rating be included in the final rule. This proposed

rule provides only general guidelines for establishing a neutral rating, since what constitutes "neutral'' seems to change with the

circumstances of each individual source selection. However, suggestions from the general public for a more rigorous definition are solicited

and will be considered by the FAR Council in drafting the final rule. [62 FR 26639]

The second proposed rule also contained a valiant attempt to define a neutral past performance evaluation as follows:

Firms lacking any relevant past performance history shall receive a neutral evaluation for past performance. The evaluation

approach shall reflect the circumstances of each acquisition. A neutral evaluation is one that neither rewards nor penalizes offerors without

relevant performance history (41 U.S.C. 405). While a neutral evaluation will not affect an offeror's rating, it may affect the

offeror's ranking if a significant number of the other offerors participating in the acquisition have past performance ratings either above or below satisfactory.[62 FR 26639]

This language failed to clarify anything, so in the final rule the FAR Council said the heck with it, let's just parrot the statute:

Definition of neutral past performance evaluations. The proposed rules provided a definition of neutral past performance evaluations. Public comments recommended that we revise the definition and provide detailed instructions on how to apply neutral past performance ratings in any source selection. 41 U.S.C. 405(j)(2) requires offerors without a previous performance history, to be given a rating that neither rewards nor penalizes the offeror. We did not adopt the public comment recommendations, opting instead to revise the final rule to reflect the statutory language, so that the facts of the instant acquisition would be used in determining what rating scheme is appropriate. This alternative provides for flexible compliance to satisfy requirements of the statute. [62 FR 51224-01, FAC 97-02]

This final rule gave us the rule as it is stated now at FAR 15.305(a)(2)(iv):

In the case of an offeror without a record of relevant past performance or for whom information on past performance is not available, the offeror may not be evaluated favorably or unfavorably on past performance.

So the FAR Council took the language of the statute, attempted to clarify it by introducing the term "neutral past performance evaluation", tried again to clarify it by defining "neutral past performance evaluation", confused a lot of people, then gave up. "Neutral past performance" was removed from the FAR over 11 years ago after a brief and infamous appearance. Despite this fact, it remains popular in the federal contracting vernacular.

Don Mansfield

First, I'd like to thank everyone that contributed to my thread seeking myth-information in federal contracting. I culled another 20 pieces to add to the seven that I was able to come up with. If you come across any or are able to think of any more, please add to the thread or send me a message.

Second, I'd like to comment on something that Retreadfed wrote in the aforementioned thread:

I presume Don's point in starting this discussion was to demonstrate the many points of ignorance (not stupidity) that exist in the procurement world.

While I hadn't thought about it, I like the distinction that Retreadfed made. Myth-information exists due to ignorance of the rules. If you want to read about stupidity, there's an excellent compilation of it in DoD's Encyclopedia of Ethical Failures (don't miss the 2008 update).

Now, back to the point of this entry. Vern Edwards contributed the following nugget to the misinformation thread:

During a source selection, anything that you say to one offeror you must say to all other offerors.

No doubt this belief is the result of overlawyering and/or taking the "better safe than sorry" approach to source selection. Let's take a look at what the FAR says concerning this subject. FAR 15.201(f) states:

General information about agency mission needs and future requirements may be disclosed at any time. After release of the solicitation, the contracting officer must be the focal point of any exchange with potential offerors. When specific information about a proposed acquisition that would be necessary for the preparation of proposals is disclosed to one or more potential offerors, that information must be made available to the public as soon as practicable, but no later than the next general release of information, in order to avoid creating an unfair competitive advantage. Information provided to a potential offeror in response to its request must not be disclosed if doing so would reveal the potential offeror?s confidential business strategy, and is protected under 3.104 or Subpart 24.2. When conducting a presolicitation or preproposal conference, materials distributed at the conference should be made available to all potential offerors, upon request.

[bold added].

As you can see, the scope of the information that must be shared with all offerors when it is shared with one offeror prior to receipt of proposals is much narrower than "anything that you say." However, it is common practice at some contracting activities to record every question received and answer provided regarding an RFP (no matter how mundane) in an amendment and issue to all prospective offerors (the better safe than sorry approach). While such an approach is compliant, it is not required and makes for long amendments and the excessive provision of information.

Regarding what can be said during discussions, FAR 15.306(d)(1) states:

Discussions are tailored to each offeror's proposal, and shall be conducted by the contracting officer with each offeror in the competitive range.

[italics added].

Tailored. This necessarily means that you are not required to discuss the same areas with each offeror. In Trident Sys., Inc., Comp. Gen. Dec. B-243101, the rule was stated as follows:

nsofar as Trident alleges the Navy did not hold equal discussions because the offerors were not asked the same questions, the only additional question Trident was asked concerned its relationship with its subcontractor; SPA was not asked this question because SPA did not propose to use a subcontractor. In any case, in order for discussions to be meaningful, contracting agencies must furnish information to all offerors in the competitive range as to the areas in which their proposals are believed to be deficient so that the offerors have a chance to revise their proposals to fully satisfy the agency requirements...In other words, since the number and type of proposal deficiencies will vary among offerors the agency should tailor the discussions for each offeror, based on the offerors' evaluated deficiencies.

Exchanging information with offerors involves thoughtful judgement and discretion. Unlike some other areas of contracting, it is not a mechanical exercise governed by a simple mandatory rule. Those who shy away from using their judgment and discretion (probably to avoid criticism) are always in search of mandatory rules (even if none exist) such as "During a source selection, anything that you say to one offeror you must say to all other offerors." This contributes to the persistence of myth-information. Don't be one of those people.

Don Mansfield

The myth about communication being 93% nonverbal probably didn't start in the contracting field, but we are partly responsible for its spread. This is especially true when it comes to the subject of contract negotiation. The course manual for CON 100 used to state that communication was 90% nonverbal as a matter of fact. A speaker at a recent conference that I attended used a figure of 93% in a presentation on contract negotiation. The current Contract Pricing Reference Guides contain a variation of this claim in a chapter titled "Nonverbal Communication" (Volume V, Chapter 5):

Communication Is More Than Verbal. Good negotiators must first be good communicators. Unfortunately, many negotiators think of communication only as oral or written verbal exchanges. But verbal exchanges account for only a fraction of the messages people send and receive. Research has shown that between 70 and 90 percent of the entire communication spectrum is nonverbal. Consequently, you should be aware of the different forms of nonverbal communication that you are likely to encounter during negotiation conferences. [bold added]

Whenever this claim is made, it's almost always accompanied by a statement that it is supported by "research", but what "research"?

Well, there actually was a research study done in 1967 that found that 93% of communication was nonverbal...under very specific conditions. The following excerpt from The Virtual Handshake explains just what the study found:

Albert Mehrabian, a UCLA professor, completed research in 1967 showing the significance of non-verbal cues in communications. He concluded, in part, ?The combined effect of simultaneous verbal, vocal and facial attitude communications is a weighted sum of their independent effects ? with the coefficients of .07, .38, and .55, respectively.? (Albert Mehrabian and Susan R. Ferris, ?Inference of attitudes from nonverbal communication in two channels.? Journal of Consulting Psychology 31 (1967): 248-252. ) Out of context, this implies that in face-to-face conversation, 38% of communication is inflection and tone of voice, 55% is facial expression, and only 7% is based on what you actually say.

This statistic has grown into a very widely quoted and oft-misunderstood urban legend. Many communication skills teachers and image consultants misuse this data to indicate that your intonation, speaking style, body language, and other non-verbal methods of communication overpower your actual words. As a result, many people are concerned that online communication is much more difficult because body language, tone of voice, and facial expressions cannot today be effectively conveyed over the internet.

Not true. Mehrabian?s study only addressed the very narrow situation in which a listener is analyzing a speaker?s general attitude towards that listener (positive, negative, or neutral). Also, in his experiments the parties had no prior acquaintance; they had no context for their discussion. As Mehrabian himself has said explicitly, these statistics are not relevant except in the very narrow confines of a similar situation.

Mehrabian's exact words appear in a description of his book "Silent Messages" -- A Wealth of Information About Nonverbal Communication (Body Language):

Inconsistent communications -- the relative importance of verbal and nonverbal messages. My findings on this topic have received considerable attention in the literature and in the popular media. "Silent Messages" contains a detailed discussion of my findings on inconsistent messages of feelings and attitudes (and the relative importance of words vs. nonverbal cues) on pages 75 to 80.

Total Liking = 7% Verbal Liking + 38% Vocal Liking + 55% Facial Liking

Please note that this and other equations regarding relative importance of verbal and nonverbal messages were derived from experiments dealing with communications of feelings and attitudes (i.e., like-dislike). Unless a communicator is talking about their feelings or attitudes, these equations are not applicable. Also see references 286 and 305 in Silent Messages -- these are the original sources of my findings. [bold added].

For a thorough debunking of this myth, see Contributions of Different Modalities to "Content".

Nonverbal communication is important in a contract negotiation. Eye-rolling usually communicates disagreement. A long sigh usually communicates frustration. Busting out laughing at the other party's counteroffer can be an effective way of communicating your intent to consider it. However, unless the parties intend to discuss their emotions in lieu of contract terms, they shouldn't go in to the negotiation thinking that 93% of the message they are sending is nonverbal. If they do, they'll find themselves focusing too much on the form of the negotiation instead of the substance.

As contracting professionals, we all need to do our part to stop the spread of this common communication myth.

Don Mansfield

I have recently noticed an interesting phenomena regarding how the term "statement of work" is being used and understood in practice. If what many of my students are being taught in their contracting offices is any indication, "statement of work" (SOW) has come to mean a work statement that is not performance-based--the opposite, if you will, of a "performance work statement." Why is this happening? The definition of "performance work statement" (PWS) at FAR 2.101 could not be more clear:

“Performance Work Statement (PWS)” means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes.

A PWS is an SOW--an SOW for performance-based acquisitions.

In researching the origin of this phenomena, I came across the "A COR's Guide to Statements of Work, Performance Work Statements, and Statements of Objectives". Citing nothing, the author asserts the following regarding SOWs:

SOWs are detailed descriptions telling the contractor what to do and how to do it. By describing the work in such detail, the Government essentially provides the preferred approach or solution to the problem and locks in the approach the contractor must take. The danger of this method, of course, is that if the contractor follows the government's SOW and the result is unacceptable, it is the government's fault.

The guide goes on to explain the difference between the SOW and the PWS:

The distinguishing difference between a SOW and a PWS is that the PWS does not tell the contractor how to do the work, but rather describes the work in terms of outcomes or results. As an example, let's use mowing a lawn. A SOW would define how and when to mow the lawn (the contractor shall mow the grass once a week using a gasoline-powered lawn mower set at a two-inch height), whereas a PWS would define the required outcome (the contractor shall mow the grass so that it is maintained at a level that is two to four inches at all times). The SOW requirement does not take into account seasonal variations, such as weeks when it rains continuously and weeks when it does not rain at all and the grass does not grow. The PWS attains the same objective--maintaining the grass at a certain height--but without dictating how often it must be done.

Sigh. Believe it or not people were charged for this misinformation--the fine print of the guide says that it is part of a subscription service. Ironically, the article refers the reader to the "Seven Steps" library, which also contains the DoD Handbook for the Preparation of Statement of Work (SOW) (MIL-HDBK-245D). Paragraph 3.1 of the Handbook contains the following description of the purpose of the SOW:

The SOW should specify in clear, understandable terms the work to be done in developing or producing the goods to be delivered or services to be performed by a contractor. Preparation of an effective SOW requires both an understanding of the goods or services that are needed to satisfy a particular requirement and an ability to define what is required in specific, performance-based, quantitative terms.

Emphasis added.

The truth is that some SOWs are performance-based, some are not. We refer to those that are as PWSs.

Don Mansfield
"You can't be distracted by the noise of misinformation."
-James Daly


In my career as a contracting professional and now an educator, I have come to appreciate the growing body of misinformation in Federal contracting. Contracting misinformation is pervasive. You can see it in the popular press, periodicals dedicated to the contracting profession, in posts at the Wifcon forum, internal policy memoranda at a Government agency, etc. As I'm writing this, somewhere a senior contracting professional is imparting misinformation on a newbie, and the newbie is believing him.

A certain amount of misinformation is understandable in Federal contracting, given the volumes of regulations and case law that govern Federal acquisition. I can accept that (it keeps me employed). However, certain contracting misinformation seems to resist any efforts to eradicate it. This class of misinformation has its origins in the operational contracting offices of the Federal Government and is usually created in the form of rules that have no basis in law or regulation, but sound like they do (especially when spoken by senior contracting professionals, legal counsel, or contract policy office personnel). It is this class of misinformation that is most aptly described as contracting "myth-information."

As a service to my profession, I will attempt to bust some of the more popular contracting myth-information that I have heard. I've created my own list of myth-information and am collecting more from participants in the Wifcon discussion forum (thank you to those that have contributed). I'll try to debunk at least one myth per blog entry. If you think you have heard some contracting myth-information and would like to share with others, please contact me and I will include it in the blog. Think of the blog as a clearinghouse for busted contracting myth-information.

Don Mansfield

Did you ever wonder about the type of debate that goes on before an acquisition rule becomes final and is incorporated into the Federal Acquisition Regulation System? This information can be found in the Background section of the final rule when it appears in the Federal Register. I make a point of reading this section whenever a new rule comes out because it tells the story behind the rule?who the rule is going to affect, who is happy about the rule, who is upset about the rule, who thinks it should be scrapped, what the rule makers were thinking when they created and revised it, etc. This section is also a valuable reference when you are trying to interpret a rule in the FAR System that is unclear or ambiguous.

Typically, the comments received range from pointing out errors in the rule to blatantly self-serving statements from private parties either praising the wisdom of the rule or explaining how the rule will inevitably bankrupt small business concerns, cost the Government more money, and lead to a widespread malaise in the country. The rule makers' responses to the comments range from nonresponsive or evasive to well-written explanations of why the comment is or is not valid (I've generally had good responses to comments that I have submitted for consideration).

DoD recently issued a final rule revising the existing rules on the restriction on the acquisition of specialty metals (DFARS Case 2008-D003). The rule contained a straightforward definition of "high-performance magnet" in the new clause at DFARS 252.225-7009, Restriction on Acquisition of Certain Articles Containing Specialty Metals, as follows:

High performance magnet means a permanent magnet that obtains a majority of its magnetic properties from rare earth metals (such as samarium).

Apparently, the Background statement pertaining to this definition that accompanied the interim rule drew criticism from a number of interested parties. The comments received went so far as to suggest that the definition, as written, would pose a threat to national security:

The respondent disagreed with DoD's Background statement that magnets containing rare earth elements are technologically superior in magnetic performance to other types of magnets, because the technological superiority of one magnet over another is ultimately driven by the requirements of the application where it is used. The respondent also stated that, in addition to maximum energy product, parameters such as temperature stability, temperature range, resistance to demagnetization, corrosion resistance, mechanical toughness, and machinability contribute to the decision as to which type of magnet to use for a military application.

These respondents were also concerned that limiting the definition to rare earth (such as samarium-cobalt) magnets and excluding alnico magnets would increase dependency on Chinese magnets and threaten national security. For example, one respondent expressed concern that, if alnico magnets are not included in the definition, alnico magnets that are COTS items will be exempt from the specialty metals restriction.

DoD's response to these comments brought me back to high school physics class (God bless you, Mr. Michel). Here is an excerpt:

With regard to whether it is meaningful to define ``high performance magnet'' as a permanent magnet that obtains a majority of its magnetic properties from rare earth metals: Cobalt, iron, and nickel are the three primary ferromagnetic metals and, therefore, are present in most, if not all, permanent magnets. However, it is the very strong magneto-crystalline anisotropy (the property of being directionally dependent) of certain rare earth elements that produces the exceptional magnetic behavior in the materials to which they are added. The partially filled 4f electron subshells in rare earths lead to magnetic properties in a manner similar to the partially filled 3d electron subshells in transition elements such as cobalt, iron, and nickel. However, the magnetic moment of a rare earth material is typically an order of magnitude greater than that in a transition element; and rare earths exhibit a large anisotropy due to dipolar interactions. In summary, rare earths possess very unique electron structures that produce extreme anisotropy in their magnetic properties.

I don't know if that is right. However, I did learn a new word (anisotropy) and I now know something about the magnetic properties of rare earth metals and transition elements that I didn't know before.

You may ask: "what good is knowing this?" Other than trying to make someone think that you are smarter than you actually are, there may be no value. However, as evidenced by the discussion in the Background section of the rule, there was a great deal of deliberation about the final definition. A contracting officer may encounter situations where he or she needs to apply the new rule and knowing that the definition of "high-performance magnet" is very narrow will help.

Take a look at the Background section of an acquisition rule the next time one comes out (FAC 2005-036 was just issued last week). Not only will it add some life to the rule as it appears in the regulation, you may learn something.

Don Mansfield

In TYBRIN Corporation, B-298364.6; B-298364.7, March 13,2007, the GAO held that an offeror's cost estimate that indicated that it would not perform 51% of the contract work on a small business set-aside rendered the offer unacceptable, even though the offeror did not explicitly take exception to the solicitation's limitation on subcontracting clause (FAR 52.219-14) and the SBA granted the offeror a certificate of competency. The GAO reasoned as follows:

[T]he issue here does not concern whether a bidder or offeror can or will comply with the subcontracting limitation requirement during performance of the contract (where we recognize that the matter is one of responsibility (or in certain cases, contract administration, see, e.g., Raloid Corp., B‑297176, Nov. 10, 2005, 2005 CPD para. 205 at 4)), but rather, whether the bidder or offeror has specifically taken exception to the subcontracting limitation requirement on the face of its bid or proposal. Given that the determination in this latter, limited circumstance involves the evaluation of a bid or proposal for compliance with a material term of the solicitation, the determination is one of responsiveness or acceptability, rather than responsibility.

As a result, the Air Force reopened discussions with offerors and sought revised proposals. This action was unsuccessfully challenged in the Court of Federal Claims (see The Centech Group, Inc., v. U. S. and Tybrin, Inc., 07-513C, Filed December 7, 2007, Refiled December 13, 2007) and unsuccessfully appealed to Court of Appeals for the Federal Circuit (The Centech Group, Inc., v. U. S. and Tybrin Corporation, No. 08-5031, February 3, 2009).

Thus, it would seem that we have a general rule that if information in a cost estimate indicates that an offeror will not comply with a material term of a solicitation, then the offeror has implicitly taken exception to that term of the solicitation, which would make their offer unacceptable (or nonresponsive).

However, in Group GPS Multimedia, B-310716, January 22, 2008, the opposite conclusion was reached. In that case, the successful offeror submitted a cost estimate that contained a proposed labor rate that was below the labor rate stated in the Department of Labor Wage Determination (the contract would be subject to the Service Contract Act). The protester argued that this gave the awardee an unfair price advantage. The GAO held as follows:

On a fixed-price contract, as here, under which the awardee is required to pay the actual SCA wages and benefits out of whatever price it offers, and where the proposal contains no indication that the company will not meet its statutory obligations in this regard, labor rates or benefits that are less than the SCA-required rates or benefits may constitute a below-cost offer but one which is legally unobjectionable. Biospherics, Inc., B-285065, July 13, 2000, 2000 CPD para. 118 at 12. That is, regardless of what wage rates K-MAR used in calculating its proposed price, it will still be required to compensate its employees at the appropriate prescribed SCA wage rates. Free State Reporting Inc., B-259650, Apr. 4, 1995, 95-1 CPD para. 199 at 7. Further, the determination of prevailing wages and fringe benefits, and the issuance of appropriate wage determinations under the SCA, are matters for the Department of Labor (DOL). Concerns with regard to establishing proper wage rate determinations or the application of the statutory requirements should be raised with the Wage and Hour Division in DOL, the agency that is statutorily charged with the implementation of the Act. See 41 U.S.C. sections 353(a); 40 U.S.C. sect. 276a; SAGE Sys. Techs., LLC, B-310155, Nov. 29, 2007, 2007 CPD para. 219 at 3. Thus, to the extent the protester?s contention is that K-MAR may not properly categorize its employees under the SCA or compensate some of its employees at the required SCA wage rate, it is not a matter for our consideration, since the responsibility for the administration and enforcement of the SCA is vested in DOL, not our Office, and whether contract requirements are met is a matter of contract administration, which is the function of the contracting agency. SAGE Sys. Techs., LLC, supra; Free State Reporting Inc., supra, at 7 n.7.

This raises several questions. Why wouldn't a cost estimate that contains proposed labor rates below the SCA-minimum labor rates render an offer unacceptable, but a cost estimate that shows an offeror performing less than 51% of the contract work on a small business set-aside would? In neither circumstance does the cost estimate indicate compliance with a material term of the solicitation (the Limitation on Subcontracting clause and the Service Contract Act, respectively). Yet, we have different results. Is compliance with the Limitation on Subcontracting clause a special case? If so, why? Or is proposed compliance with the SCA (as evidenced in a cost proposal) a special exception to the rule? If so, why?

Any ideas?

Don Mansfield

In January 1944, the Office of Strategic Services, a wartime intelligence agency and predecessor to the modern Central Intelligence Agency (CIA), issued Strategic Services Field Manual No.3 (Simple Sabotage Field Manual) to its agents to aid the Allied war effort in Europe. The purpose of the classified document was to explain the technique of simple sabotage, outline its possible effects, and present suggestions for inciting and executing it. It introduced the concept of simple sabotage as follows:

Quote

Sabotage varies from highly technical coup de main acts that require detailed planning and the use of specially trained operatives, to innumerable simple acts which the ordinary individual citizen-saboteur can perform. This paper is primarily concerned with the latter type. Simple sabotage does not require specially prepared tools or equipment; it is executed by an ordinary citizen who may or may not act individually and without the necessity for active connection with an organized group; and it is carried out in such a way as to involve minimum danger of injury, detection, and reprisal.

 

 

The manual goes on to describe two types of simple sabotage: destructive and nondestructive. Regarding the latter type, the manual explains that—       

Quote

 

“It is based on universal opportunities to make faulty decisions, to adopt a non-cooperative attitude, and to induce others to follow suit. Making a faulty decision may be simply a matter of placing tools in one spot instead of another. A non-cooperative attitude may involve nothing more than creating an unpleasant situation among one’s fellow workers, engaging in bickerings, or displaying surliness and stupidity.

This type of activity, sometimes referred to as the ‘human element,’ is frequently responsible for accidents, delays, and general obstruction even under normal conditions. The potential saboteur should discover what types of faulty decisions and non-cooperation are normally found in his kind of work and should then devise his sabotage so as to enlarge that ‘margin for error.’”

 

 

 

The manual has a section titled “Specific Suggestions for Simple Sabotage” that provides suggestions for how to execute simple sabotage for different targets. There are suggestions on how to innocently start fires in buildings, set off automatic sprinklers to ruin warehouse stock, change sign posts at intersections and forks, dilute gasoline with water, wine, or urine so it won’t combust, and other Dennis the Menace type hijinks. What seemed most familiar were the suggestions under “General Interference with Organizations and Production.” Here are a few:

Quote

 

(a)    Organizations and Conferences

 

(1)    Insist on doing everything through “channels.” Never permit short-cuts to be taken in order to expedite decisions.

(2)    Make “speeches.” Talk as frequently as possible and at great length. Illustrate your “points” by long anecdotes and accounts of personal experiences. Never hesitate to make a few appropriate “patriotic” comments.

(3)    When possible, refer all matters to committees, for “further study and consideration.” Attempt to make committees as large as possible—never less than five.

(4)    Bring up irrelevant issues as frequently as possible.

(5)    Haggle over precise wordings of communications, minutes, resolutions.

(6)    Refer back to matters decided upon at the last meeting and attempt to re-open the question of the advisability of that decision.

(7)    Advocate “caution.” Be “reasonable” and urge your fellow conferees to be “reasonable” and avoid haste which might result in embarrassments or difficulties later on.

(8)    Be worried about the propriety of any decision—raise the question of whether such action as is contemplated lies within the jurisdiction of the group or whether it might conflict with the policy of some higher echelon.

(b)    Managers and Supervisors

 

[…]

(9)    When training new workers, give incomplete or misleading instructions.

(10)  To lower morale and with it, production, be pleasant to inefficient workers; give them undeserved promotions. Discriminate against efficient workers; complain unjustly about their work.

(11)  Hold conferences when there is more critical work to be done.

(12)  Multiply paper work in plausible ways. Start duplicate files.

(13)  Multiply the procedures and clearances involved in issuing instructions, pay checks, and so on. See that three people have to approve everything where one would do.

(14)  Apply regulations to the last letter.

(c)    Office Workers

[…]

(7) Spread disturbing rumors that sound like inside dope

               (d) Employees

 

                       […]

(4) Pretend that instructions are hard to understand, and ask to have them repeated more than once. Or pretend that you are particularly anxious about your work, and pester the foreman with unnecessary questions.”

 

 

               The manual was declassified in 2008, but I suspect it fell in to enemy hands long before that. The question is, though, why is the enemy targeting Federal contracting offices?

Don Mansfield

In a remarkable statement issued today, the Government Accountability Office (GAO) apologized to the Department of Defense for what it called "decades of unwarranted and unsubstantiated criticism." The admission came in the wake of the release of a March 2009 GAO report titled Defense Acquisitions: Assessments of Selected Weapon Programs that claims that for 2008 programs, research and development costs are now 42 percent higher than originally estimated and the average delay in delivering initial capabilities has increased to 22 months.

"Who knows if any of that stuff is true" said the author of the study. "We write these reports years in advance when there are no data. Last month, I completed documenting my 'findings' for a 2010 report on DoD's mismanagement of 2009 stimulus funding." He added, "From what I do know of DoD, they are a stellar organization."

GAO also recanted recent Congressional testimony that stated:

Since 1990, GAO has consistently designated DOD's management of its major weapon acquisitions as a high-risk area. A broad consensus exists that weapon system problems are serious, but efforts at reform have had limited effect. For several years, GAO's work has highlighted a number of strategic- and program-level causes for cost, schedule, and performance problems in DOD's weapon system programs. At the strategic level, DOD's processes for identifying warfighter needs, allocating resources, and developing and procuring weapon systems, which together define the department's overall weapon system investment strategy, are fragmented.

"That was a gross mischaracterization and we regret those statements. Truth be told, DoD's weapon system programs, in particular the Future Combat Systems program, are models of responsible program management. They represent the Federal Government at its best" said the GAO.

When asked what motivated today's statement, a GAO spokesperson responded that "we can't keep up with the demand for this type of criticism. The DoD-bashing crowd is insatiable. It's getting to the point where we are ignoring some real problems in other agencies, like NASA", an obvious reference to the recent expose of former astronauts at the space agency.

GAO had painted DoD as a largely dysfunctional, overinflated, and wasteful bureaucracy in numerous reports dating back to the 1970s. One retired GAO auditor, who now runs a Web site dedicated to Federal contracting, added some insight: "DoD wasn't half as bad as what we wrote about them, but nobody wanted to hear it."

DoD has yet to formally respond to the GAO's apology.

Don Mansfield

The end of the fiscal year is always a good time to start brush up on fiscal law?particularly the bona fide needs rule. Contracting offices may soon face questions of fiscal law that have already been answered in Volume I, Chapter 5, of Principles of Federal Appropriations Law (GAO Red Book).

One interesting case of fiscal law, which you won't find in the Red Book, deals with funding undefinitized contract actions (UCAs) that cross fiscal years. Consider the following scenario:

A DoD activity issues a UCA in late fiscal year 2009 with a not-to-exceed price of $1,000,000. In accordance with DFARS 217.7404-4(a), the agency obligates $500,000 of the not-to-exceed price (the DFARS limit is currently 50% of the price ceiling, or 75% if the agency is in receipt of a "qualifying proposal"). The agency does not get around to definitizing the UCA until early FY 2010. When they do, the contracting officer and the contractor agree to a final contract price of $950,000. The unfunded balance is $450,000 (assuming actual costs prior to definitization were $500,000).

Assuming the contract is funded with annual appropriations, which fiscal year's appropriation must be charged to fund the additional $450,000?

Believe it or not, fiscal year 2010 funds must be used. A number of people that I have spoken to are befuddled by this, because they believe that the definitizing contract modification would be fulfilling a bona fide need of FY 2009, which would thus require the use of FY 2009 funds. However, this is incorrect.

The Comptroller General answered this question in Obligating Letter Contracts, B-197274, September 23, 1983. In that case, a procurement official from the Department of Justice requested guidance on how to fund letter contracts that crossed fiscal years. Agency practice had been to record an obligation for the amount of the price ceiling and include a clause that limited the liability of the Government to 50% of the price ceiling. In other words, they would overrecord their obligation. The procurement official described his dilemma as follows:

"GIVEN THE 'BONA FIDE NEED' RULE, THE APPLICATION OF YOUR DECISION B-197274 TO LETTER CONTRACTS UNDER THE CIRCUMSTANCES SET FORTH ABOVE PLACES CONSIDERABLE PRESSURE ON THE GOVERNMENT TO SETTLE WITH CONTRACTORS AND DEFINITIZE THESE LETTER CONTRACTS NOT LATER THAN THE END OF THE FISCAL YEAR IN WHICH THEY WERE EXECUTED. IF THE GOVERNMENT DID NOT DO SO, NEITHER FUNDS FOR THAT FISCAL YEAR NOR THE FOLLOWING FISCAL YEAR APPEAR TO BE AVAILABLE FOR DEFINITIZATION. FURTHERMORE, THE MAXIMUM GOVERNMENT COST LIABILITY SET FORTH IN EACH OF THESE LETTER CONTRACTS WOULD BECOME THE PRICE CEILING FOR A CONTRACT DEFINITIZED IN A SUBSEQUENT FISCAL YEAR. BECAUSE THIS DOLLAR AMOUNT IS GENERALLY 50 PER CENT OR LESS OF THE TOTAL ESTIMATED COST, IT IS HIGHLY UNLIKELY THAT SETTLEMENT AND DEFINITIZATION WOULD OCCUR. MOST LIKELY, THESE LETTER CONTRACTS WOULD HAVE TO BE TERMINATED, THE CONTRACTOR WOULD RECEIVE PAYMENT FOR THE WORK HE HAD PARTIALLY PERFORMED AND THE GOVERNMENT WOULD BE WITHOUT THE COMPLETED PRODUCT OR SERVICE FOR WHICH IT HAD CONTRACTED."

The Comptroller General responded as follows:

IT APPEARS THAT THE QUESTION PRESENTED ARISES FROM A MISCONCEPTION OF THE BONA FIDE NEED RULE. UNDER THAT RULE, OBLIGATIONS MAY ONLY BE INCURRED TO SATISFY BONA FIDE NEEDS OF THE PERIOD OF APPROPRIATION AVAILABILITY. THAT IS NOT TO SAY, HOWEVER, THAT THE NEEDS OF A PARTICULAR PERIOD MUST BE FULLY SATISFIED DURING THAT PERIOD. AN UNFULFILLED NEED OF ONE PERIOD MAY WELL BE CARRIED FORWARD TO THE NEXT AS A CONTINUING NEED WITH THE NEXT PERIOD'S APPROPRIATION BEING AVAILABLE FOR FUNDING.

[?]

CONSEQUENTLY, WHERE A LETTER CONTRACT AND THE SUBSEQUENT SUPERSEDING AGREEMENT ARE ENTERED INTO DURING THE SAME FISCAL YEAR, THE COST OF BOTH CONTRACTS IS OBLIGATED AGAINST THE SAME FISCAL YEAR APPROPRIATION. HOWEVER, WHEN THE LETTER CONTRACT IS ENTERED INTO DURING ONE YEAR AND THE DEFINITIZED AGREEMENT DURING THE NEXT, THEN IT IS APPROPRIATE TO OBLIGATE ONLY THE AMOUNT OF THE MAXIMUM LIABILITY WHICH MAY BE INCURRED UNDER THE LETTER CONTRACT SINCE THE UNDERLYING CONTRACT DOCUMENT SUPPORTS OBLIGATING NO MORE. ONCE THE AGREEMENT IS DEFINITIZED (WHICH IS BY NO MEANS A CERTAINTY) THE LETTER CONTRACT IS SUPERSEDED AND THE LEGAL LIABILITY OF THE PARTIES IS MERGED INTO THE NEW CONTRACT. THE DEFINITIZED CONTRACT THEN SUPPORTS OBLIGATING AGAINST THE APPROPRIATION CURRENT AT THE TIME IT IS ENTERED INTO SINCE IT IS, IN FACT, A BONA FIDE NEED OF THAT YEAR. THE AMOUNT OF THE DEFINITIZED CONTRACT WOULD ORDINARILY BE THE TOTAL CONTRACT COST LESS EITHER THE ACTUAL COSTS INCURRED UNDER THE LETTER CONTRACT (WHEN KNOWN) OR THE AMOUNT OF THE MAXIMUM LEGAL LIABILITY PERMITTED BY THE LETTER CONTRACT (WHEN THE ACTUAL COSTS CANNOT BE DETERMINED).

Following the initial example, the $450,000 to be added to the contract when the definitizing contract modification is executed covers a bona fide need of fiscal year 2010. This need was originally a bona fide need of FY 2009, but it went unsatisfied within the time period available for new obligations. As such, the bona fide need was carried forward to FY 2010.

UCAs have become a hot topic in contracting, particularly in DoD. In response to a GAO report that found a significant number of UCAs still undefinitized beyond the 180-day window imposed at DFARS 217.74, the DFARS was recently revised to include more rules pertaining to UCAs. However, I never saw any discussion about how to fund UCAs that cross fiscal years (maybe everybody already knows the rule :lol: ). Based on the GAO report, I'm willing to speculate that a good number of UCAs are left undefinitized until the fiscal year following their issuance. For UCAs funded by annual appropriations, I wonder what fiscal year's funds are being obligated when the UCAs are definitized. My guess is, in most cases, the same fiscal year's funds that were obligated for the UCA.

Don Mansfield

I always thought that the FAR Matrix was a good idea that was poorly executed. To begin with, it's notorious for containing errors. Second, most of the entries in the "Principle Type and/or Purpose of Contract" columns are "A", Required when applicable, which means you have to look up the prescription anyway. Lastly, the matrix isn't going to tell you if your agency deviates from the FAR prescription, which DoD does a lot. As such, I created a matrix that I think overcomes these problems.

A few things about the matrix:

  • It contains every provision and clause in the FAR, DFARS, and in DoD Class Deviation memoranda.
  • It doesn't have any "Principle Type and/or Purpose of Contract" columns except for a Commercial Items column.
  • It contains the actual prescription of the provision or clause. For readability, I removed the number and title of the provision or clause in the block and just wrote "use this provision..." or "use this clause..." The identifying information for the provision or clause is already contained in the row.
  • For DoD, it contains additional instructions for the use of FAR clauses that is contained in the DFARS or in a class deviation. This information appears in bold. If you work for a civilian agency, just ignore what's in bold.
  • In the "IBR" column (Incorporation by Reference), there are no "N" entries for "no", with the exception of the provisions and clauses prescribed at FAR 52.107. This may cause some people to freak out, so I'll explain. FAR 52.102(c) states:
Quote

Agency approved provisions and clauses prescribed in agency acquisition regulations, and provisions and clauses not authorized by Subpart 52.3 to be incorporated by reference, need not be incorporated in full text, provided the contracting officer includes in the solicitation and contract a statement that—

(1) Identifies all provisions and clauses that require completion by the offeror or prospective contractor;

(2) Specifies that the provisions and clauses must be completed by the offeror or prospective contractor and must be submitted with the quotation or offer; and

(3) Identifies to the offeror or prospective contractor at least one electronic address where the full text may be accessed.

Thus, if the FAR Matrix contained a "Y" in the IBR column, my matrix will also contain a "Y". If the FAR Matrix contained an "N" in the IBR column, or the provision or clause came from the DFARS or a DoD class deviation, then my matrix will contain a "Y*". The key at the top of the matrix contains an explanation for the "Y*" entry. If you're wondering how to incorporate a provision or clause that contains fill-in material or something the offeror must complete, see FAR 52.102(a) and FAR 52.104(d).

You can see the matrix on the DAU Acquisition Community Connection. I'm open to suggestions for making it better. Also, I would like to think that it doesn't contain any errors. However, if you spot one please let me know. As an incentive, I will add your agency's provisions and clauses (the ones in Title 48 of the CFR) to the matrix if you point out a mistake.

 

Don Mansfield

In a earlier blog entry, I posted a draft version of the provision at FAR 52.212-1 tailored for simplified acquisition procedures and requested comments. First, I'd like to thank everyone who provided comments. I believe the final version (below) is an improvement over the draft. Second, Carl Culham suggested that I include instructions on how to incorporate a tailored version of FAR 52.212-1 into a solicitation. I thought that was a good idea, so I will include instructions in this entry. Third, Vern Edwards tailored FAR 52.212-1 for SAP using plain language. His version is clear and easy to read, which may cause some of your lawyers and policy folks to balk at using it. If that's the case, you may want to refer them to plainlanguage.gov so they can familiarize themselves with the Federal Government's policy on the use of plain language to communicate with the public. Vern's plain language version is also posted below.

Incorporating a Tailored Version of FAR 52.212-1

FAR 12.302(d) contains the following guidance regarding tailoring:

Tailoring shall be by addenda to the solicitation and contract. The contracting officer shall indicate in Block 27a of the SF 1449 if addenda are attached. These addenda may include, for example, a continuation of the schedule of supplies/services to be acquired from blocks 18 through 21 of the SF 1449; a continuation of the description of the supplies/services being acquired; further elaboration of any other item(s) on the SF 1449; any other terms or conditions necessary for the performance of the proposed contract (such as options, ordering procedures for indefinite-delivery type contracts, warranties, contract financing arrangements, etc.).

According to the format prescribed at FAR 12.303(e)(2), the addendum to FAR 52.212-1 should be located with the solicitation provisions. The addendum should be clearly identified as such (e.g., "Addendum to FAR 52.212-1"). Carl Culham suggested, and I agree, that there should also be some kind of lead in statement that indicates that the version of FAR 52.212-1 in the addendum supersedes the version of FAR 52.212-1 contained in the FAR (e.g., "FAR 52.212-1 is replaced in its entirety by this addendum"). If using the streamlined solicitation for commercial items discussed at FAR 12.603, then you must include a statement that the provision at 52.212-1, Instructions to Offerors -- Commercial, applies to the acquisition and a statement regarding any addenda to the provision. The addendum should then be included in full text.

FAR 52.212-1 Tailored for SAP

Here's the final version of the provision at FAR 52.212-1 tailored for SAP:

Instructions to Quoters—Commercial Items

(a) North American Industry Classification System (NAICS) code and small business size standard. The NAICS code and small business size standard for this acquisition appear in Block 10 of the solicitation cover sheet (SF 1449). However, the small business size standard for a concern which submits a quotation in its own name, but which proposes to furnish an item which it did not itself manufacture, is 500 employees.

( b ) Submission of quotations. Submit quotations to the office specified in this solicitation at or before the exact time specified in this solicitation. Quotations may be submitted on the SF 1449, letterhead stationery, or as otherwise specified in the solicitation. As a minimum, quotations must show-

(1) The solicitation number;

(2) The time specified in the solicitation for receipt of quotations;

(3) The name, address, and telephone number of the quoter;

(4) A technical description of the items being quoted in sufficient detail to evaluate compliance with the requirements in the solicitation. This may include product literature, or other documents, if necessary;

(5) Terms of any express warranty;

(6) Price and any discount terms;

(7) “Remit to” address, if different than mailing address;

(8) A completed copy of the representations and certifications at FAR 52.212-3 (see FAR 52.212-3( b ) for those representations and certifications that the quoter shall complete electronically);

(9) Acknowledgment of Solicitation Amendments;

(10) Past performance information, when included as an evaluation factor, to include recent and relevant contracts for the same or similar items and other references (including contract numbers, points of contact with telephone numbers and other relevant information); and

(11) If the quotation is not submitted on the SF 1449, include a statement specifying the extent of agreement with all terms, conditions, and provisions included in the solicitation. Quotations that fail to furnish required representations or information, or reject the terms and conditions of the solicitation may be excluded from consideration.

( c ) Reserved.

(d) Product samples. When required by the solicitation, product samples shall be submitted at or prior to the time specified for receipt of quotations. Unless otherwise specified in this solicitation, these samples shall be submitted at no expense to the Government, and returned at the sender’s request and expense, unless they are destroyed during testing.

(e) Multiple quotations. Quoters are encouraged to submit multiple quotations presenting alternative terms and conditions or commercial items for satisfying the requirements of this solicitation. Each quotation submitted will be evaluated separately.

(f) Late submissions.

(1) Quoters are responsible for submitting quotations so as to reach the Government office designated in the solicitation by the time specified in the solicitation. If no time is specified in the solicitation, the time for receipt is 4:30 p.m., local time, for the designated Government office on the date that quotations are due.

(2) Any quotation received at the Government office designated in the solicitation after the exact time specified for receipt of quotations is late and will not be considered unless it is received before purchase order issuance and the Contracting Officer determines that accepting the late quotation would not unduly delay the acquisition.

(3) If an emergency or unanticipated event interrupts normal Government processes so that quotations cannot be received at the Government office designated for receipt of quotations by the exact time specified in the solicitation, and urgent Government requirements preclude amendment of the solicitation or other notice of an extension of the closing date, the time specified for receipt of quotations will be deemed to be extended to the same time of day specified in the solicitation on the first work day on which normal Government processes resume.

(g) Issuance of purchase order. Quotations should contain the quoter’s best technical and price terms. The Contracting Officer may reject any or all quotations. The Contracting Officer may issue a purchase order to other than the quoter with the lowest priced quotation. After the evaluation of quotations, the Contracting Officer may negotiate final terms with one or more quoters of the Government’s choice before issuing any purchase order. The Contracting Officer will not negotiate with any quoters other than those of the Government’s choice and will not use the formal source selection procedures described in FAR part 15.

(h) Multiple purchase orders. The Government may issue a purchase order for any item or group of items of a quotation, unless the quoter qualifies the quotation by specific limitations. Unless otherwise provided in the Schedule, quotations may not be submitted for quantities less than those specified. The Government reserves the right to issue a purchase order for a quantity less than the quantity quoted, at the unit prices quoted, unless the quoter specifies otherwise in the quotation.

(i) Availability of requirements documents cited in the solicitation.

(1)(i) The GSA Index of Federal Specifications, Standards and Commercial Item Descriptions, FPMR Part 101-29, and copies of specifications, standards, and commercial item descriptions cited in this solicitation may be obtained for a fee by submitting a request to-

GSA Federal Supply Service Specifications Section

Suite 8100

470 East L’Enfant Plaza, SW

Washington, DC 20407

Telephone (202) 619-8925

Facsimile (202) 619-8978.
(ii) If the General Services Administration, Department of Agriculture, or Department of Veterans Affairs issued this solicitation, a single copy of specifications, standards, and commercial item descriptions cited in this solicitation may be obtained free of charge by submitting a request to the addressee in paragraph (i)(1)(i) of this provision. Additional copies will be issued for a fee.

(2) Most unclassified Defense specifications and standards may be downloaded from the following ASSIST websites:

(i) ASSIST (https://assist.dla.mil/online/start/).

(ii) Quick Search (http://quicksearch.dla.mil/).

(iii) ASSISTdocs.com (http://assistdocs.com).

(3) Documents not available from ASSIST may be ordered from the Department of Defense Single Stock Point (DoDSSP) by-

(i) Using the ASSIST Shopping Wizard (https://assist.dla.mil/wizard/index.cfm);

(ii) Phoning the DoDSSP Customer Service Desk (215) 697-2179, Mon-Fri, 0730 to 1600 EST; or

(iii) Ordering from DoDSSP, Building 4, Section D, 700 Robbins Avenue, Philadelphia, PA 19111-5094, Telephone (215) 697-2667/2179, Facsimile (215) 697-1462.

(4) Nongovernment (voluntary) standards must be obtained from the organization responsible for their preparation, publication, or maintenance.

(j) Data Universal Numbering System (DUNS) Number. (Applies to all quotations exceeding $3,000, and quotations of $3,000 or less if the solicitation requires the Contractor to be registered in the System for Award Management (SAM) database.) The quoter shall enter, in the block with its name and address on the cover page of its quotation, the annotation “DUNS” or “DUNS+4” followed by the DUNS or DUNS+4 number that identifies the quoter’s name and address. The DUNS+4 is the DUNS number plus a 4-character suffix that may be assigned at the discretion of the quoter to establish additional SAM records for identifying alternative Electronic Funds Transfer (EFT) accounts (see FAR Subpart 32.11) for the same concern. If the quoter does not have a DUNS number, it should contact Dun and Bradstreet directly to obtain one. A quoter within the United States may contact Dun and Bradstreet by calling 1-866-705-5711 or via the internet at http://fedgov.dnb.com/webform. A quoter located outside the United States must contact the local Dun and Bradstreet office for a DUNS number. The quoter should indicate that it is a quoter for a Government contract when contacting the local Dun and Bradstreet office.

(k) System for Award Management. Unless exempted by an addendum to this solicitation, by submission of a quotation, the quoter acknowledges the requirement that a prospective contractor shall be registered in the SAM database prior to purchase order issuance, during performance and through final payment of any contract resulting from this solicitation. If the quoter does not become registered in the SAM database in the time prescribed by the Contracting Officer, the Contracting Officer will proceed to issue the purchase order to the next otherwise successful registered quoter. Quoters may obtain information on registration and annual confirmation requirements via the SAM database accessed through https://www.acquisition.gov.

(l) Requests for information. The contracting officer will not notify unsuccessful quoters that responded to this solicitation. Quoters may request information on purchase order(s) resulting from this solicitation from the contracting officer.

FAR 52.212-1 Tailored for SAP (Plain Language Version)

Here's Vern's plain language version of FAR 52.212-1 tailored for SAP:

INSTRUCTIONS TO QUOTERS

Submitting your quote. Submit your company’s quote in writing and on paper to the address specified in Block __ of this Request For Quotes (RFQ). You may submit more than one quote. If you do, we will evaluate each separately.

Submission deadline. We must receive your quote at the address specified in Block __ by the deadline specified in Block __. We will not consider any quote that we receive after the deadline unless we receive it before we issue a purchase order and considering it will not delay our purchase. In case of an emergency that delays our operations and makes submission or receipt of your quote impossible, we will extend the deadline by one working day.

Terms and content of your quote. Your quote must be based on the terms of this RFQ. We might reject any quote that is not based on these terms in every respect. Your quote must contain all of the information described below.

Small Business Status. In order to submit a quote, you must know whether your company is a small business. The small business size standard that applies to this purchase is stated in Block __ of the cover sheet of this RFQ, along with the North American Industry Classification System (NAICS) code on which it is based. Regardless of the information in Block __, the small business size standard is 500 employees if you are submitting your quote in your own name but intend to provide a product that you did not manufacture yourself.

Issuance of purchase order. Your quote should contain your best terms. The Contracting Officer may reject any or all quotes. After the evaluation of quotes, the Contracting Officer may negotiate final terms with one or more quoters of the Government’s choice before issuing a purchase order. The Contracting Officer will not negotiate with any quoters other than those of the Government’s choice and will not use the formal source selection procedures described in FAR Part 15.

The Contracting Officer may issue a purchase order to other than the quoter with the lowest price. We might issue multiple orders, purchasing various items or groups of items from different quoters. We might issue an order for less than the quantity on which your quote is based, at the quoted price, unless you tell us that you will not accept an order on that basis.

Information to be submitted. Put the following information on the first page of your quote:

1. the number of this RFQ;

2. your company name, address, DUNS number (see below) and telephone number;

3. your price and any discount terms;

4. acknowledgement of any amendments to this RFQ; and

5. a statement that you assent to all terms of this RFQ.

Beginning on the second page of your quote, provide the following information in the following order:

1. a detailed description of the product or service that you will provide, including any product or service literature that you wish to give us;

2. the terms of any express warranty;

3. your payment address;

4. references to current or former customers who will attest to the quality of your product or service in the within the past three years, including (i) customer name, (ii) customer address, (iii) contract or purchase order numbers, (iv) persons to contact, and (v) telephone numbers.

Product samples. If this RFQ requires that you submit product samples, you must deliver them to us at the location specified for our receipt on or before the deadline for submission of your quote. We will not pay for the samples, and we will return them to you only upon request and at your expense, unless they are destroyed during testing.

Availability of Government Documents. If the descriptions in this RFQ of the products or services we want to buy refer to any Government specification, standard, or commercial item description, you may obtain a copy of any such documents from the places listed in Federal Acquisition Regulation 52.212-1, paragraph (i).

System for Award Management (SAM). Unless exempted by the Contracting Officer, you must register in SAM before we will issue a purchase order to you. If you do not register by the date set by the Contracting Officer, the Contracting Officer might issue the order to a different quoter. Once registered, you must remain registered throughout performance until final payment. Go tohttps://www.acquisition.gov for information on SAM registration and annual confirmation.

DUNS Number (Data Universal Numbering System Number). [This applies to all quote if the solicitation requires that you be registered in the System for Award Management (SAM).] Place the annotation “DUNS” or “DUNS+4” next to your name and address on the first page of your quote followed by the DUNS or DUNS+4 number that identifies the quoter’s name and address.

If you do not have a DUNS number, contact Dun and Bradstreet to obtain one. If you are located within the United States, you may contact Dun and Bradstreet by calling 1-866-705-5711 or via the internet at http://fedgov.dnb.com/webform.

If you are located outside the United States, you must contact the local Dun and Bradstreet office for a DUNS number. Tell Dun and Bradstreet that you are a quoter for a Government contract when contacting the local Dun and Bradstreet office.

The DUNS+4 is the DUNS number plus a 4-character suffix that you may use at your discretion to establish additional SAM records for identifying alternative Electronic Funds Transfer (EFT) accounts (see FAR Subpart 32.11) for your company.

I hope some of you will try these provisions. If you do, let us know how it goes.