...The contract type (e.g., fixed-price, cost-reimbursement) is a key consideration in any decision-making because the type of contract may determine the financial impact of the decision. For example, the financial effect of schedule changes varies widely, depending on the type of contract. This article focuses on how the type and attributes of government contracts must be considered to support successful financial performance for both the government and the contractor. Such information will be helpful to new project managers and others responsible for contract performance, as well as to more experienced managers who may benefit from a review of the basics of government contracting. The Federal Acquisition Regulation (FAR) allows a wide variety of contract types, based on the financial arrangement. Broadly speaking, these include fixed-price, cost-reimbursement, time-and-materials (T&M), and letter contracts. The various forms of fixed-price contracts and cost-reimbursement contracts are shown in the sidebars on page 45. According to FAR 16.104, the federal government professes a preference for firm-fixed-price type contracts. Contracts also may be distinguished on the basis of their ordering or execution. Under a traditional contract, the contractor performs a specific statement of work for a specified price or cost. More common today are indefinite delivery types, which may be for definite or indefinite quantities or the requirements of the acquiring activity...
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...Reasonable Price And Government Contracts Amy Berdine-Roberts Cost and Price Analysis Professor Rafi January 10, 2008 When you first think about fair and reasonable price, you think about the goods that you buy or the services that you use. When shopping for anything, you do not want to feel buyer’s remorse because you are unhappy with the product or service so research is the key. You would shop around to ensure that you are not paying too much. You compare prices and look at the quality and quantity that you will receive. When looking at specific brands and agencies, you see what others say about their product or service. Without this type of research, you could not only pay too much but you may receive sub par services. Especially with contracts you want to make sure the work the contractor does is not only quality work but will also be completed on time and will not cost more than the original agreed upon price. When it comes to government, they also need to shop around and receive fair and reasonable prices for the products they buy and the services they receive. However, it goes beyond that. They not only need to ensure they are getting a fair and reasonable price, but are also using the correct type of contract for the service that is being done. There are numerous types of government contracts; fixed-price, cost reimbursement, incentive, indefinite delivery, time and materials, labor hour and letter contracts. Fixed price contracts are just as they sound...
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... LEG: 505 Government Contract Law Assignment 1 A company’s reputation is vital when it comes to creating a successful business, and the majority of business a company receives is based on how the company displays their ethics. It is one of the most important aspects of business, and determines the longevity of a business. When building a business, it is said that loyalty is key. If the customers or clients a company receives are extremely loyal, it is usually converted into free publicity. Many customers will continue to give their business to a company that they feel have strong ethical codes, which is why ethics is so important in business. The growth of a business depends on a company creating a clear, concise Code of Conduct so that there is an overall understand of what is expected of each employee within the business. RP Services is a company that is built on integrity and has made it its mission to protect all information with the most advanced products and services. Upon its creation, it has been vital to uphold an unwavering moral code, and has continued to make sure this is throughout its entire company. Even though the company is in its beginning stages, the level of professionalism and security presented by its employees radiates well past its 4 years of experience with data services. RP provides servers and storage for small businesses and government contracts for the purpose of processing any type...
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...Republic of the Philippines PROVINCE OF BUKIDNON Capitol Compound, Malaybalay City General Conditions of the Contract PEEDMO-BPH & PEEDMO-PHS (Val) 1. Definitions 1.1 In this Contract, the following terms shall be interrupted indicated: a) “The Contract “ means the agreement entered into between the PROCURING ENTITY and the Supplier, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. b) “The Contract Price” means the price payable to the Supplier under the Contract for the full and proper performance of its contractual obligations. c) “The GOODS” means all of the supplies, equipment, machinery, spare parts, other materials and or ground support services which the Supplier is required to supply to the PROCURING ENTITY under the Contract. d) “The Services” means those services ancillary to the supply of the GOODS, such as transportation and insurance, and any other incidental services, such as installation, commissioning, provision of technical assistance, training, and other such obligations of the Supplier covered under the Contract. e) “GCC” means the General Conditions of Contract. f) “SCC” means the Special Conditions of Contract. g) “The PROCURING ENTITY” means the organization purchasing the GOODS, as named in the SCC. h) “The PROCURING ENTITY’S country” is the Philippines. ...
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...Contract Administration and Change Issues Government Contract Law/LEG 505 [ June 3, 2011 ] Abstract Contract administration varies from contract to contract and contractor to contractor. There are many factors that come into play when dealing with contractors, government personnel and the demands that each party may bring to the table. The Contracting Officer must be able to handle the administration of the contract, communicate effectively with all stakeholders involved with the contract and ensure that any contractual issues are handled within the legal and federal guidelines for a timely resolution that does not affect the budget or scope of the contracts original intent. However, in the event the contract may need to be modified, the Contracting Officer needs to be fully aware of the appropriate steps to do so. Contract Administration and Change Issues The administration of a contract does not end once the contract is awarded. In all reality, the true administration happens after award and during the life of the contract. It is up to the Contracting Officer to balance the requirements of the Government and the needs of the contractor. It is their responsibility to ensure prompt payment for services rendered or products delivered and that the customer’s needs are being met as detailed in the terms and conditions of the contract. It is also the Contracting Officers role to balance the Government and customer and to ensure that all parties are being treated...
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...types of contracts and cover performance-based acquisition. Discuss which contract that would be warranted on vehicle purchase. Also, evaluate the pros and cons of sealed bidding, and negotiated contracts. Cover, which one would be best purchasing of vehicles in this case. Furthermore, we will cover the responsibilities of the contracting officer during the proposal evaluation. Assess the requirements for performance-based acquisitions and last create requirements for the vehicle purchase that could be included in a performance-based contract with rationale. Examine the types of contacts and performance-based acquisition Types of contracts that can be used are fixed-price, cost-reimbursement,...
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...6 Career Development, Contracting Authority, and Responsibilities 1.7 Determinations and Findings PART 2—DEFINITIONS OF WORDS AND TERMS 2.1 Definitions 2.2 Definitions Clause PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 3.1 Safeguards 3.2 Contractor Gratuities to Government Personnel 3.3 Reports of Suspected Antitrust Violations 3.4 Contingent Fees 3.5 Other Improper Business Practices 3.6 Contracts with Government Employees or Organizations Owned or Controlled by Them 3.7 Voiding and Rescinding Contracts 3.8 Limitations on the Payment of Funds to Influence Federal Transactions 3.9 Whistleblower Protections for Contractor Employees 3.10 Contractor Code of Business Ethics and Conduct 3.11 Preventing Personal Conflicts of Interest for Contractor Employees Performing Acquisition Functions PART 4—ADMINISTRATIVE MATTERS 4.1 Contract Execution 4.2 Contract Distribution 4.3 Paper Documents 4.4 Safeguarding Classified Information Within Industry 4.5 Electronic Commerce in Contracting 4.6 Contract Reporting 4.7 Contractor Records Retention 4.8 Government Contract Files 4.9 Taxpayer Identification Number Information 4.10 Contract Line Items 4.11 Central Contractor Registration 4.12 Representations and Certifications 4.13 Personal Identity Verification 4.14 Reporting Executive Compensation and First-Tier Subcontract Awards 4.15 American Recovery and Reinvestment Act—Reporting Requirements 4.16 Unique Procurement Instrument...
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...Embedded in certain contracts are several types of incentives; cost, performance, and delivery that encourage contractors to perform within contract requirements. Burleson states that cost-incentive contracts are the most common and the target profit or fee is established at the start of the contract. “Full profit or fee is paid when the actual cost meets the target cost. A fee reduction results when the actual cost exceeds the target cost, and an increase in profit or fee results from actual cost that is below the target cost” (Burleson & Wilson, 2007). Performance incentives are appropriate when the results of a contract, service or delivery, are considerably important. Performance incentives can be compared with the contractor’s performance on a service contract, or measured against performance data of a delivered system or product. Both cost and performance incentives also may “include positive and negative performance evaluations and a similar fee increase or reduction using a fee adjustment formula” (Burleson & Wilson, 2007). The FAR states, “No incentive contract may provide for other incentives without also providing a cost incentive (or constraint)” (Federal Acquisition Regulation, 2012). If improvement in the contract delivery schedule is the Government’s focus, then it is appropriate to negotiate a delivery incentive contract. “Deliveries can be objectively measured by the delivery data and quantity delivered; as in other incentive structures, delivery incentives...
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...Time and Material Contracts Scott L. Earle Con 280 - Source Selection and Acquisition of Service Contracts March 12, 2012 Various DAU Faculty from Huntsville, AL Campus Time and Material Contracts Department of Defense (DoD) Contract Officers and Contracting Specialists are tasked with being the stewards of the American taxpayer’s hard earned dollars and it is a responsibility they take personally. Acquisition personnel are tasked with utilizing the proper contract vehicle to procure services, materials, supplies, constructions projects, and countless other items. Contract vehicles are not one size fit all and depending on the circumstance the acquisition personnel will reach into their tool box and choose the correct vehicle to administer the contract. There is a wide selection of contract types available to provide needed flexibility in acquiring the large variety and volume of supplies required by the DoD. The various contract types vary according to the degree and timing of the responsibility assumed by the contractor for the costs of performance, and the amount and nature of the incentive offered to the contractor for achieving or exceeding specified standards or goals. Contract types are grouped into two broad categories; Fixed-price contracts and Cost-reimbursement contracts. The specific contract types range from firm-fixed price, in which the contractor has full responsibility for the performance costs and resulting profit (or loss), to cost-plus-fixed-fee...
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...Discuss the critical behaviors that you should be mindful of during the negotiating process with the industry members in the scenario. Justify your response. A negotiation process generates one of four emotions, 1) pride-achievement, 2) gratitude, 3) guilty-shame, and 4) anger. The effect of the negotiator’s behavior is mediated by social motive. It is important to control emotions during a negotiation because it will influence the outcome. Negotiator's appraised a negotiation by using two main criteria’s: valence (success and failure) and agency (self or other), these are part of the cognitive behavior. Positive and negative moods interpret mood influences when planning a negotiation strategy, and bargaining tactics that are mediated by the negotiator. Pride-achievement and gratitude are positive emotions related to competitive behavior. Gratitude positively relates to collaborative motive, and not competitive motive. Negative emotion, anger increases the competitive behavior and guilt-shame decreases collaborative motive. It is critical for the negotiator to do research on the opponent because it helps the negotiator set the tone of the negotiation. It is important not to let one emotion overtake the other as it can jeopardize the outcome of the deal. Negotiators that want to increase the integrative behavior of the other party will evoke the altruistic motives in them. This will make them feel happy or grateful. However, this tactic should be used...
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...GSA Vernessa L. Minnifield Dr. Canuto Campos LEG 505 Abstract The company, Network Appliance Inc., also known as NetApp, paid the government $128 million to settle allegations it overcharged GSA customers for information technology products. The case alleged that NetApp did not give accurate information about discounts offered to commercial customers. Under federal rules, companies are required to disclose how much commercial customers pay to ensure that GSA can negotiate the lowest price for the government. This paper will provide an ethical analysis of the case, identify contributing factors, and recommend corrective actions for the issues addressed. The False Claims Act The False Claims Act is an important tool for U.S. taxpayers. It is used to recover monies stolen through fraud by government contractors. Under the False Claims Act, 31 U.S.C. §§ 3729-3733, those who knowingly submit, or cause another person to submit, false claims for payment of government funds are liable for three times the government’s damages plus civil penalties of $5,500 to $11,000 per false claim (TAF, 2011). The act imposes liability on any person who (1) submits a claim to the federal government that he or she knows is false, (2) knowingly submits a false record in order to obtain payment from the government, or (3) obtains money from the government to which he or she may not be entitled and then uses false statements in order to retain the money. In the case involving NetApp and GSA...
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...Acquisition Planning Kirby Washington Professor Phil Campos July 31, 2011 Government Contract Law LEG 505 Abstract Acquisition planning is very important in providing the government with the best supplies and services. There are six phases in the government acquisition process. Those six steps are requirements determination, acquisition planning, negotiation, contract award, and performance after contract award, and contract close out (Engelbeck, 2002, pg. 77). Acquisition planning involves determining what to purchase and when. Acquisition planning is designed to coordinate effectively the efforts of all personnel responsible for the multi-faceted aspects of procuring supplies and services. The purpose of this paper is to (1) determine if a requirement can or is required to be contracted for using other than full and open competition, (2) determine if the agency has satisfied the requirements in deciding to “make or buy the items/services they require”, and (3) determine if that portion of the contract text is ambiguous and if so, explain why or why not. Given a situation of a federal agency with a requirement, determine if that requirement can or is required to be contracted for using other than full and open competition. Cite the authorization and provide the rationale/requirement for using that method. Acquisition planning process demands teamwork. The procurement plan should contain all applicable technical, contracting, fiscal, business, and program/project management...
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...Introduction to contract …………………………………………………………....1 2. Age of majority …………………………………………………….……..1 3. What contract that a minor can enter?......................................................................2 4. Contract of necessaries ……………………………………………………………3 5. Contract of scholarships………………………………………………………..….4 6. Contract of employment ………………………………………………………..…4 7. Contract of marriage ………………………………………………………..…5 8. Reference ……………………………………………………..……6 Introduction to contract Contract (or informally known as an agreement in some jurisdictions), can define as an agreement having lawful object entered into voluntarily by parties or a legally binding or enforceable agreement. Each of whom intends to create one or more legal obligations between them. The legislation in Malaysia governing contract is the Contract Act 1950(Act 136), which revised in year 1974. Contracts are an integral part of our daily lives. There are constantly being entered into by individuals with other individuals or business, as well as businesses with other businesses, to sell or transfer property, to provide and receive services and other rights and obligations created (Lee Mei Pheng & Ivan Jeron Dette, 2014). Contracts are closed connected with our daily life, for example, the sales and purchase of goods in based on contract, the employer hiring employees is based on contract, the bank provide...
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...Procurement and Contract Law Professor Levasseur Introduction The government pays to its contractors when they submit invoices containing the prices of the supplies or the services rendered according to the contract’s terms. The invoices also contain any discounted or deducted amounts. The government is obligatory to pay upon deliveries unless they specify a due time to pay. For the purpose of selecting payments methods for the services and products purchased by the government agencies, FAR 32.113 should be referenced (Legal Information Institute, 1992). The purpose of this paper is to discuss the three payments options available to government and their advantages and disadvantages, three elements of the prompt Payment Act; next, it will discuss the key areas of cutting government costs, two revisions to TINA that will decrease the requirements for the government’s procurement of technical data and computer software. In the end, the paper will discuss the Buy American Act’s exceptions. Government Payment Options For purchasing the software for tax returns processing, contacting officers on behalf of Internal Revenue Service’s (IRS) can select various effective payment methods. Contracting officer uses the customary contract financing ref. 32.113 for review and uses it without getting the permission from top management. The Contracting officer can select three payment methods that are progress payment, performance-based payments, and payment by government charge cards (52...
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...The Social Contract Randy Smith LAW 421 May 27, 2015 Bob Casey The Social Contract and Government “Between 1787 and 1791 the Framers of the U.S. Constitution established a system of government upon principles that had been discussed and partially implemented in many countries over the course of several centuries, but never before in such a pure and complete design, which we call a constitutional republic. Since then, the design has often been imitated, but important principles have often been ignored in those imitations, with the result that their governments fall short of being true republics or truly constitutional. Although these principles are discussed in civics books, the treatment of them there is often less than satisfactory.” Jon Roland of the Constitution Society (internet website). Origins of the Social Contract In this article their valid contract was a social contract of a government for everyone to live as equals and to live in a utopia kind of place. This type of contract will make a new way of living to have harmony with everyone around while also having mutual benefits. The contract has to cover the normal rights that are given and have to retain them while also having certain restricting liberties. With any civilization we would have to assume that people would have their own duties such as which certain powers shall be used together. The contract is simple, and has two basic terms which is one, the mutual defense...
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