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Determining Responsible Prospective Contractors. Antwan G. Reid PIP Level II Presentation May 20, 2004. Introduction . Federal Government Procurement -Largest consumer in the world -Importance of finding responsible contractors

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Determining responsible prospective contractors l.jpg

Determining Responsible Prospective Contractors

Antwan G. Reid

PIP Level II Presentation

May 20, 2004


Introduction l.jpg
Introduction

  • Federal Government Procurement

    -Largest consumer in the world

    -Importance of finding responsible contractors

    -How does a contracting officer determine if a potential contractor is responsible?

    (pg.1)


Purpose l.jpg
Purpose

  • Gain subject-matter expertise

  • Explore the idea of developing a guide for

    contracting officers.

  • Find answers to questions developed by interest in “Determining Responsible Prospective Contractors”.

    (pg. 1)


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Sources

  • Federal Acquisition Regulation (FAR)

  • NASA FAR Supplement

  • Books (Business, Financial, Ethics, etc.)

  • Popular Electronic Search Engines

    (pg.1)


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Background

  • Final Rule Published in the Federal Register by the FAR Council

  • Language Added to FAR 9.104-1(d)

  • General Accounting Office

  • Opposition to the Final Rule

  • Bush Administration Proposed Revocation

  • Previous Responsibility Rules Reinstated

    (pg.1)


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Components

  • The guide would analyze and break down the following:

    -Part I-General Standards (FAR 9.1)

    -Part II-Preaward Surveys (FAR 9.1)

    -Part III-Certificates of Competency (FAR 19.6)

    (pg.3)


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FAR 9.102 Applicability

  • Applies to proposed contracts located

    -In the U.S. or its outlying areas

    -Elsewhere (unless inconsistent with laws or

    customs where the contractor is located)

  • Does not apply to proposed contracts

    -Foreign, State, or Local Governments

    -Other U.S. Govt. Agencies

    -Agencies for the blind or other severely handicapped


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FAR 9.103 Policy

  • Contracts shall be awarded to responsible prospective contractors only.

  • No purchase or award shall be made unless the contracting officer makes a determination of responsibility.

  • Award of a contract to a supplier based on lowest evaluated price can be false economy.

    Note: Check for debarred or suspended offerors before evaluation and

    award.


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Part I-General Standards

  • FAR 9.104-1(a) Analysis

    - General Business Information

    - Financial Statements

    - Issues with Financial Statements

    - Financial Ratios/Equations

  • FAR 9.104-1(b) Analysis

    - Discussion

    (pg.4)


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Part I-General Standards (cont’d)

  • FAR 9.104-1(c) Analysis

    -Application of Standards (FAR)

  • Importance of NF1680 “Evaluation of Performance”

    -Big Asset in Determining Responsibility

    -Input from end users, financial, administrative

    (pg.8)


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Part I-General Standards (cont’d)

  • FAR 9.104-1(d) Analysis

    -Integrity

    -Business Ethics

    -POGO Investigation

    -Determining an Ethical Business

  • FAR 9.104-1(e) Analysis

    -Discussion

    (pg.9)


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Part I-General Standards (cont’d)

  • FAR 9.104-1(f) Analysis

    -Discussion

  • FAR 9.104-1(g) Analysis

    -Discussion

    (pg. 12)


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Part II-Preaward Surveys

  • Preaward Surveys can be accomplished by:

    -Data already obtained

    -Data from another Govt. agency

    -Data from a commercial source

    -On-site inspection of plant and facilities

    -Any combination of the above

    (pg.13)


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Part II-Preaward Surveys (cont’d)

  • In Obtaining Information, use the following:

    -List of Parties Excluded from Fed. Procurement

    and nonprocurement Programs

    -Records and experience data

    -Commercial sources of supplier information

    -Preaward surveys

    -Publications, subcontractors, customers, etc. (pg.14)


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Part II-Preaward Surveys (cont’d)

  • Disclosure of Preaward Information

    -Discussion

  • Contract Audit Responsibilities

    -Discussion

  • Reports

    -Discussion

    (pg.14)


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Part III-Certificates of Competency (COC)

  • Background

  • Purpose

  • Referral: C.O. must do the following:

    -Withhold contract award

    -Refer the matter to the cognizant

    SBA Govt. Contracting Area Office

    (pg.18)


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Part III-Certificates of Competency (COC) (cont’d)

  • Referral must include along with a notice

    -Solicitation

    -Final Offer submitted by the concern

    -Abstract of bids or C.O.’s Price Neg. Memo.

    -Preaward survey

    -Technical data package

    -Any other justification or documentation (pg.19)


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Part III-Certificates of Competency (COC) (cont’d)

  • Issuing/Denying a Certificate of Competency

  • COC Referrals vs COC’s Issued

  • Resolving Differences between the Agency and SBA

  • Awarding the Contract

    (pg.19)


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Summary and Conclusion

  • Summary

  • Conclusions

    -Contracting officers need to compare the

    benefits of an evaluation against the cost.

    -Issue of contracting officers placing more value on one general standard over another.

    -Contracting officers comfort level with respect to

    evaluating a prospective contractor. (pg. 23)


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Recommendations

  • Recommendations

    -Submission of the “Determining Responsible Prospective Contractors” guide to the appropriate reviewing committee.

    -The creator would remain responsible in order to continuously update the guide.

    -NASA Goddard should develop more subject- matter experts.

    (pg.23)



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