10 MYTHS OF GOVERNMENT CONTRACTING Kate Whitby 1 North Brentwood, Suite 1000 St. Louis, MO 63130 kwhitby@spencerfane. com 6/27/2007
GOALS u u u 6/27/2007 Identify “Good” Contracts / Work Steer Away From “Bad” Contracts / Work Survive Audits Get Paid Don’t Get Sued Get Hired Again For Government Work 2
MYTH #1 u 6/27/2007 When The Government Asks For Bids, It Really Wants To Buy Something, Can Buy It, And Will Buy It ¡ Funding ¡ “Commercial Items” ¡ Contracting Officer ¡ Task order work awards 3
MYTH #2 u The Government’s Request For Bids Is Realistic And The Government Will Negotiate Fairly ¡ ¡ ¡ 6/27/2007 Market research Multiple Award Schedule contracts The False Claims and Trade Agreements Acts 4
MYTH #3 u The Government Will Be Fair And Reasonable Regarding Changes ¡ Change Orders n n ¡ 6/27/2007 Must be approved by CO Inside or outside scope of contract is important Constructive change orders Notice and equitable adjustment Differing Site Conditions 5
MYTH #4 u The Government Can’t Make Me Stay On A Contract That Is A Money Loser ¡ ¡ ¡ 6/27/2007 Unilateral Change Orders Contract Disputes “Mistakes” Termination for Government Convenience “Claims” 6
MYTH #5 u I Won’t Be Audited ¡ Pre-Award n n ¡ Completion and After n 6/27/2007 Proposal Review Provisional Billing Rate Review Past Performance Capacity Final Overhead Rate 7
MYTH #6 u The Financial Accounting System I Use Is Good Enough For Government Work ¡ ¡ ¡ Cost Accounting Standards (CAS) Cost Principles and Procedures Direct vs. Indirect Costs and Indirect Cost Accounting n n 6/27/2007 General & Administrative Costs Accounting changes to indirect cost rate structures 8
MYTH #7 u I Don’t Need To Know Anything About The FARs ¡ ¡ ¡ 6/27/2007 Construction and Architect-Engineering Contracts (Part 36) Service Contracting (Part 37) Contract Admin & Audits (Part 42) Contract Modifications (Part 43) Subcontracting (Part 44) 9
MYTH #8 u At Least The Government Has The Money To Pay ¡ ¡ ¡ 6/27/2007 Appropriations Funding / deobligation of funds Fiscal year budgets 80% rate for progress payments Standard invoicing forms 10
MYTH #9 u Starting The Work Without A Signed Contract And Working In-Between Contract Renewals Or Extensions Is Not A Problem ¡ ¡ ¡ 6/27/2007 No. No. 11
MYTH #10 u I Am Not Responsible For A Sub’s Personnel or Employment Practices ¡ ¡ ¡ 6/27/2007 FAR Subpart 22. 4, Labor Standards for Construction Contracts ADA EEO Davis-Bacon Act Stafford Act OSHA 12
LAWS/REGULATIONS ¡ ¡ ¡ ¡ ¡ 6/27/2007 Competition In Contracting Act Buy American Act Federal Acquisition Streamlining Act Truth In Negotiation Act False Claims Act Armed Services Procurement Act Federal Property & Administrative Services Act Contract Disputes Act of 1978 Federal Acquisition Regulations (FARs) Defense Federal Acquisition Regulation Supplement (DFARS) 13
ADDITIONAL RESOURCES u u 6/27/2007 www. fedbizopps. gov www. arnet. gov/far www. ccr. gov www. sba. gov 14
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