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Homeland Security Contracting

Homeland Security Contracting. Jack Friery NCMA San Diego Chapter November 21, 2002. Outline. Department of Homeland Security—new procurement rules Contracting experiences Predictions for the future & recommendations. Original DHS bill (HR 5005).

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Homeland Security Contracting

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  1. Homeland Security Contracting Jack Friery NCMA San Diego Chapter November 21, 2002 Jack Friery

  2. Outline • Department of Homeland Security—new procurement rules • Contracting experiences • Predictions for the future & recommendations Jack Friery

  3. Original DHS bill (HR 5005) • Other transactions (five year pilot program) • Personal services OK • Micro-purchases <$5k • SAP <$175k • SAP for commercial <$7.5m (liberal definition of “commercial”) • Liability limits for contractors Jack Friery

  4. House-Approved DHS Bill (HR 5710) • Other transactions (five year pilot program) • Personal services OK • Micro-purchases <$7500 • SAP <$200k ($300k overseas) • SAP for commercial <$7.5m (liberal definition of “commercial”) Jack Friery

  5. Friery’s Homeland Security Contracting Experiences • Process • Terms & Conditions • End result Jack Friery

  6. Contracting Process • FAR not applicable • U.S. Government issued a Request for White Papers rather than RFP • Required proposal for Proof of Concept <10 pages • Evaluated tech, PP, best value • Very fast turnaround Jack Friery

  7. Process (con’t) • Awarded four parallel cooperative agreements—Phase I • Cost-sharing • Very short POP Jack Friery

  8. Terms & Conditions: Going In • No “best efforts” language despite a cost-sharing R&D contract • U.S. Government wanted commercial source code delivered • U.S. Government requested all IP become “Government property”/GPLR Jack Friery

  9. T’s & C’s: Going In • Contractor indemnifies Government • Indemnity of contractor not on table (U.S. Government suggested no contractor liability because U.S. Government operating system) • Disputes: informal resolution only • Bilateral T for C right Jack Friery

  10. T’s & C’s: the Result • Best efforts language added to SOW • Added ADR to disputes clause • Added U.S. Government indemnity of contractor for U.S. Government acts Jack Friery

  11. T’s & C’s: the Result (con’t) • Capped contractor indemnity of U.S. Government to amount of Government payment • Payments clause added • Two signatures required Jack Friery

  12. T’s & C’s: IP Rights • Deleted IP as “Government property” • Deleted GPLR references • Standard AMS (FAR) IP clauses added • All data “developed” under k would be delivered • Agreed to negotiate license for privately-developed data Jack Friery

  13. Phase II • Government directed two contractors to team to deliver prototype • Selected “best” features of each tech approach • Directed “joint proposal”--prime/sub relationship • Twelve day turnaround for proposal • FAR clauses, except Disputes Jack Friery

  14. Lessons Learned • No more standard procurement system? • FAR provides safeguards • “Commercial” contracting can be painful • Be ready/willing to negotiate T’s & C’s even in FAR contracts (FAR 12.302: contracting officer may tailor FAR-standard commercial clauses) Jack Friery

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