FED GOV CON - Types of Federal Contracts

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Jennifer Schaus & Associates SERVICES FOR US FEDERAL GOVERNMENT CONTRACTORS

WEBINAR WEDNESDAYS – 2018 WASHINGTON, DC OFFICE PHONE: 2 0 2 – 3 6 5 – 0 5 9 8


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Join Us for Our 2018 Series of Complimentary Webinars on various US Federal Government Contracting Topics. Presenters are industry experts sharing knowledge about the competitive government contracting sector. Find all of our Govt Contracting webinars (free download) at www.JenniferSchaus.com

Contact Us @ 2 0 2 – 3 6 5 – 0 5 9 8


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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REMINDERS: All webinars are complimentary. All webinars are recorded. They are found on our website and on YouTube. Please send your questions to the speaker directly. Thank you for participating.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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ABOUT JENNIFER SCHAUS & ASSOCIATES: - Based in downtown Washington, DC; -

A la carte services for Federal Contractors;

- Proposal Writing to GSA Schedules, 8a Cert, Contract Admin & more!; Educational webinars; -

Networking events and seminars;

WEBSITE: http://www.JenniferSchaus.com


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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ABOUT OUR SPEAKER: Ali Paskun, CF.APMP - 35 Years In GOV CON: - Education: Insert School info - Company Name: ABIL Solutions, LLC


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

Types of Federal Contracts Wednesday, November 14, 2018

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Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Introduction • In 2017, the government spent $3.98 trillion (Source: www.USAspending.gov) • Current U.S. government spending is $4.407 trillion. That's the federal budget for the fiscal year 2019 (October 1, 2018, to September 30, 2019). It's 21 percent of the gross domestic product. (Source: www.thebalance.com/current-u-s-federalgovernment-spending-3305763)


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Fixed Price Contracts • Provide for a firm or, in some instances, an adjustable price. An adjustable price may include a ceiling price, a target price (including target cost), or both. • Are suitable when there is adequate price competition, when available cost or pricing information permit realistic estimates of the probable costs, and performance uncertainties can be identified and reasonable estimates of their cost impact can be made.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Fixed Price Contracts •

FAR Part 16 defines six main types of fixed-price contracts:  firm-fixed-price  firm-fixed price level-of-effort  fixed-price contracts with economic price adjustment  fixed-price incentive  fixed-price with prospective price redetermination  fixed-ceiling-price materials reimbursement


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Cost Reimbursement • FAR defines as contracts used only when circumstances do not allow the agency to sufficiently define requirements to allow for a fixed-price type contract. • Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. • A basic cost contract is a cost-reimbursement contract in which the contractor receives no fee. A cost-plus-fixed-fee contract does include a fee.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Cost Reimbursement • FAR Part 16 defines five main types of fixed-price contracts:     

cost contracts cost-sharing contracts cost-plus-incentive-fee contracts cost-plus-award-fee contracts cost-plus-fixed-fee contracts


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Incentive Contracts • Used when:  a firm-fixed-price contract is not appropriate  the customer can obtain the required products or services at a lower cost and sometimes with improved technical performance and/or delivery  the amount of profit or fee payable to the contractor under the contract is related to performance


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Incentive Contracts •

Three major types of incentives: cost incentives, performance incentives, and delivery incentives. • For fixed-price contracts, there are three major types:  fixed-price incentive (firm target) contracts  fixed-price incentive (successive targets) contracts  fixed-price contracts with award fees •

For cost-reimbursement contracts, there are two major types:  cost-plus-incentive-fee contracts  cost-plus-award-fee contract)


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Time and Materials • Used only when it is not possible to accurately estimate the scope of work or anticipate costs. • Provides the contractor no profit incentive. • A labor-hour contract is different from a time-and-materials contract because the contractor does not supply materials.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Government-wide • Consolidates purchasing across several agencies • Provides long-term vendor agreements with fewer vendors • Centralizes contract administration for all participating agencies


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Indefinite Delivery/Indefinite Quantity • Provides for an indefinite, but a limited, quantity of products or services during a fixed period • Requires the customer to order and requires the contractor to provide a stated minimum quantity of products or services • Establishes a maximum quantity provided over the life of the contract


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Task Order •

Contractor provides schedule of job categories, labor rates, and other rates for multiple-award, task-order contracts •

Contracting Officer issues a task order request when specific services are required

• Contractor provides the services at the same or lesser rate than what is given in the contract • Task orders without the competitive element are utilized for single-award, indefinite-delivery contracts. Similar contracts for supplies are called deliveryorder contracts.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Sole Source • Awarded when there is only one person or company that can provide the required services or when attempts to competitively bid the work result in one person or company able to meet the requirements.


Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC

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Summary • Understanding the various types of contracts helps determine how to price the bid and can even affect the bid/no bid decision • Firm Fixed Price contracts are in the customer’s favor and are higher risk for the contractor • Cost Plus contracts are in the contractor’s favor and are higher risk for the customer


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SERVICES FOR US FEDERAL CONTRACTORS

OFFICE: 2 0 2 – 3 6 5 – 0 5 9 8


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