Jump to content

General

COs: Follow OMB?s Guidance at Your Peril

There has been a considerable amount of controversy over the last year or so in the area of small business programs. In International Program Group, Inc., (B?400278, B?400308, 19 September 2008) the Government Accountability Office (GAO) held that HUBZone set-asides took priority over service-disabled veteran-owned small business (SDVOSB) set-asides and SDVOSB sole source acquisitions. This was unsurprising given the clear language in the FAR. In Mission Critical Solutions (B?401057, 4 May 2009)

Calculating Cost Impacts on CPAF Contracts: A Reasonable Assumption?

When taking a class on the Cost Accounting Standards (CAS) last year, I came across a DCAA rule that made perfect sense to the auditors, but left some of the contracting officers scratching their heads. The rule deals with how to calculate the cost impact of a CAS noncompliance or accounting change on a cost-plus-award-fee (CPAF) contract. Chapter 8 of the DCAA Contract Audit Manual (CAM) contains guidance on how to evaluate cost impact proposals submitted to the Government as a result of a C

Magnetic Properties of Metals with Partially Filled 4f Electron Subshells

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 s

Funding UCAs that Cross Fiscal Years

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 activit

Myth-Information: Price Analysis is Always Required

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: 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 s

Sometime In Your Career . . .

Sometime in your career, you will be faced with a decision that will affect the way you perceive yourself. It may be an immediate career changer or it may be one of those little decisions that help to define your career. You will know it when you encounter it and you will think about it before you take action at least the first time. There will be rules designed to lead you in your decision, but in the end, it will be your decision. Your choice may be as easy as right or wrong or it may be in va

Small Business Order of Priority Table (HOLD THE PRESS!)

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, t

Inconsistent Decisions?

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: As a result, the Air Force reopened

GAO Issues Apology to DoD

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 init

Myth-Information: Communication is 93% Nonverbal

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 vari

Myth-Information: Proposal Rating

Myth-Information: 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 facto

Myth-Information: Neutral Past Performance

Some of you were confused when I classified the following statement as myth-information in the Federal Contracting Myths thread: 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: In November of 1994, the Federal Acquisition St
FWS

First The Wind . . . .

"We're going to develop a trained, professional workforce." A professional workforce has been a goal of decades worth of commissions, panels, etc. For example, last week before the Senate Committee on Armed Services, Secretary of Defense Gates said: "Since the end of World War II, there have been nearly 130 studies on these problems." Secretary Gates went a bit further and noted a list of systemic problems that went beyond the contracting workforce such as: Entrenched attitudes thro

Myth-Information: Obligating the Minimum in IDIQ Contracts

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. This belief usually stems from a fundamental misunderstanding of the difference between creating and obligation and recording an obligation. The difference

Myth-Information: Exchanges with Offerors

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: While I hadn't thought about it, I like the distinction that Retreadfed made. Myth-information exis

Delivery Orders Not Binding? Huh?

I read something that I found remarkable in the recently published GAO decision Master Lock Company, LLC, B-309982.2, June 24, 2008. Bob posted the decision on the Wifcon home page. The protester argued that the agency's evaluation of the awardee's past performance should have taken into account the fact that they had declined a delivery order under a different IDIQ contract. In response, the agency argued that a delivery order was not binding and the GAO agreed. Here's an excerpt: "Du

Myth-information in Federal Contracting

"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 profes