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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
www.JenniferSchaus.com
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
THANK YOU FOR ATTENDING!!
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QUESTIONS? CONTACT OUR SPEAKER Ali Paskun AT ali@abilsolutions.com
SERVICES FOR US FEDERAL CONTRACTORS
OFFICE: 2 0 2 – 3 6 5 – 0 5 9 8