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Contract Compliance and the FAR

2. Presenters:. Monique AndersonAssistant Director, ORAAX5-6272 ? manders1@umd.eduKatie PetroneContract Manager, ORAAX5-6274 ? kpetrone@umd.edu. 3. We will cover.... Difference between contract (FAR) and grant (OMB Circular A-110)Application of the FAR to contracts. 4. Characteristics of a

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Contract Compliance and the FAR

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    1. 1 Contract Compliance and the FAR

    2. 2 Presenters: Monique Anderson Assistant Director, ORAA X5-6272 – manders1@umd.edu Katie Petrone Contract Manager, ORAA X5-6274 – kpetrone@umd.edu

    3. 3 We will cover... Difference between contract (FAR) and grant (OMB Circular A-110) Application of the FAR to contracts

    4. 4 Characteristics of a Grant Generally used to support an idea conceived by a Principal Investigator Flexible terms and conditions No-cost extensions easy to obtain Limited reporting requirements Due dates easier to change

    5. 5 Characteristics of a Contract Considered procurements - the Government is buying something it needs Terms can be very restrictive Missed due dates can result in penalties Additional reporting requirements Changes to SOW must be approved by the sponsor

    6. 6 Major Differences between Contracts and Grants Contract RFP solicitation Need for specific service/product Schedule technical & expenditure reports and/or other deliverables Grant Standard sponsor guidelines/proposal kits Support for work in general programmatic areas - need to advance knowledge, national interests Requires technical progress reports

    7. 7 More Major Differences Contract Payment often tied to deliverables Numerous special terms and conditions Close control on budget Can be cancelled for nonperformance Grant Payments may be in advance, by schedule, or upon completion General terms and conditions Flexible budget control Rarely cancelled for nonperformance

    8. 8 OMB Circulars and Contracts OMB A-21 Incorporated by FAR 31.3, allowable costs OMB A-110 Sets standards for grants & cooperative agreements Specific actions not applicable to contracts (i.e. expanded authorities) FAR replaces this circular in contracts

    9. 9 OMB Circulars and Contracts (cont’d.) OMB A-133 incorporated by FAR 52.215-02, Alt.II

    10. 10 Contracts & FAR Federal Acquisitions Regulations (FAR) - Uniform policies governance for Federal agencies - Is the “procedure manual” for Federal agencies to acquire goods and services, including research & development

    11. 11 Contracting under the FAR Common Types Cost-Reimbursement Fixed-Price Time & Material/Labor Hour Indefinite Delivery/Indefinite Quantity Purchase Orders

    12. 12 Contracting under the FAR Purpose Construction Research & Development Supply Service

    13. (Clicker question) Are subcontracting plans required on all contracts? Yes No (correct answer) 13

    14. 14 Basic Contracting Issues – Subcontracting Plans FAR 52.219-9, Small Business Subcontracting Plan (JAN 2011) Required for contracts expected to exceed $650,000

    15. (clicker question) Who is responsible for developing subcontracting plans? Department Department and ORAA ORAA Procurement & Supply Department and Procurement & Supply (correct answer) 15

    16. Basic Contracting Issues – Subcontracting Plans Plan is developed jointly by department and Procurement & Supply based on the projected budget. 16

    17. 17 Basic Contracting Issues – More on Subcontracting Plans Plan must detail how much of the contract work will be done by minority-owned, veteran-owned or women-owned small businesses Reports must be submitted semiannually detailing progress toward goals Failure to meet goals may result in fines or penalties

    18. 18 Basic Contracting Issues – Equipment Ownership Government retains ownership of equipment purchased with contract funds: Status of equipment must be reported annually Non-profits must ask permission at the end of the contract to retain the equipment

    19. 19 Basic Contracting Issues – Budget Monitoring Strict Budget vs Flexible Budget Written permission required to deviate from budget - Purchasing Equipment - New Subcontracts - Foreign Travel - Consultants

    20. 20 Basic Contracting Considerations – Notifying the Government FAR 52.232-22, Limitation of Funds (APR 1984) Included when a contract is being funded by the Government incrementally. Requirement to notify the Government when, in the next 60 days, 75% of the current contract value will be spent. Puts Government on notice that University is running out of contract funds.

    21. 21 Other Contract Issues Fixed-price contracts and no-cost extensions (what is meant by “consideration?”)

    22. (clicker question) Can the University of Maryland agree to allow a sponsor to review and approve publications? Yes No (correct answer) It Depends

    23. (clicker question) Can the University of Maryland agree to allow a sponsor to retain rights to data and intellectual property developed under a contract? Yes No It Depends (correct answer)

    24. (clicker question) Can the University of Maryland agree to allow a sponsor to restrict the use of foreign nationals under a contract? Yes No (correct answer) It Depends

    25. USM Board of Regents Policies relating to research http://www.umresearch.umd.edu/ORAA/um_references/um_policies/research_related.html

    26. 26 Monique’s Favorite FAR site http://farsite.hill.af.mil/

    27. 27 Questions?

    28. 28 Case Study

    29. 29 THE END

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