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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

Determining Responsible Prospective Contractors

Antwan G. Reid

PIP Level II Presentation

May 20, 2004

introduction
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
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)

sources
Sources
  • Federal Acquisition Regulation (FAR)
  • NASA FAR Supplement
  • Books (Business, Financial, Ethics, etc.)
  • Popular Electronic Search Engines

(pg.1)

background
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)

components
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)

far 9 102 applicability
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

far 9 103 policy
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.

part i general standards
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)

part i general standards cont d
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)

part i general standards cont d11
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)

part i general standards cont d12
Part I-General Standards (cont’d)
  • FAR 9.104-1(f) Analysis

-Discussion

  • FAR 9.104-1(g) Analysis

-Discussion

(pg. 12)

part ii preaward surveys
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)

part ii preaward surveys cont d
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)

part ii preaward surveys cont d15
Part II-Preaward Surveys (cont’d)
  • Disclosure of Preaward Information

-Discussion

  • Contract Audit Responsibilities

-Discussion

  • Reports

-Discussion

(pg.14)

part iii certificates of competency coc
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)

part iii certificates of competency coc cont d
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)

part iii certificates of competency coc cont d18
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)

summary and conclusion
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)

recommendations
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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