Government Acquisition Contract Requirements A. Johnson. Reyte on Publishing 2012.

Government contracts vary greatly from typical business or commercial contracts in several areas. There are various requirements within the federal contract that are required by the government such as how to manage changes within the scope of the work. How a contract ends or is terminated. Lastly, managing payments and buying patterns for different types of contracts. Acquisition Planning A federal contracting officer is assigned the task of working with the contractor or business entity. The amount of the bid should encourage competition and consider satisfying the demands that are best for the government (Acquisition.gov, 2008). The process of procurement is highly regulated and has its own set of guidelines referred as to the Federal Acquisition Regulation or FAR. FAR refers to the process of purchasing products or services in a government contract. The rules are designed to ensure fair and standard treatment with impartiality to parties submitting a contract for federal acquisition (Acquisition.gov, 2008). Regardless of the size of the business, the number of previous successful bids accepted, or the experience of the contractor. However, it is important to understand the provisions involved in FAR to avoid costly mistakes. The authorizing agencies of FAR requirements are the Department of Defense, National Aeronautics and Space Administration, and Government Services Administration (Acquisition.gov, 2008). The types of products for which the federal government contracts with businesses include

anything from consumer products such as dairy or toiletry items to military goods such as uniforms, guns, military equipment and even jets. There are three differentiators in government contract acquisitions and privatized spending (Longley, 2012). The first is the extensive regulation to thwart the occurrence of misappropriated funding and the managed control through all contracted agencies involved (Acquisition.gov, 2008). The second term is the development and review of the contract by government lawyers who are experienced in the process. Therefore it is wise for any contractor to also have legal representation that has a sound background in government contracting as well. Lastly if there is a dispute related to the terms of the contract, the government has very unique procedures that are far different from those of private enterprise. Responsibilities of Contractor If a bid proposal is accepted by the government, it should be reviewed thoroughly before any signatures are given (Acquisition.gov, 2008). The contract will be quite lengthy and detailed. The parts of the contract include the standard terms and conditions also called the boilerplate terms. Within this section are the names of the agency or office which will be the primary contact of the contractor in delivering any product or receiving any requirements. With the Department of Defense, for example a specific office may be selected to administer the terms. They are the ones to contact with any questions or to get any required signoffs (Acquisition.gov, 2008). If they have not approved the requirements, or agreed that the work is in compliance with terms, the project is on hold until these approvals are received. Acquisition Strategy Scope of Work The strategy involves in-depth knowledge centered approach with the purpose of

assisting decision making, decrease any risk associated with manufacturing, technology or integration of systems. In addition the acquisition strategy should represent a predictable outcome of the contracted product or service. This is not an area where research and development or innovation are under consideration. FAR expects all the business and contract terms to be executed with the utmost attention to detail and thoroughness. A representative, program officer, is chosen to represent the federal interest in the contract terms, designated the program acquisition or principal experts in the case of a Department of Defense acquisition. The staff of the program acquisition has the job of advising all critical points within the decision making especially of automated information technology. The staff is trained and experienced in production team planning, peer reviews, and integration of product teams. Termination by Default Termination for default occurs when the federal government perceives that the contractor has not completed their part of the contract terms and failed to meet contracted obligations. When this is the case, the government has the right to terminate the contract. However, if the contractor can prove that they are not at fault for the failure to complete the terms of the contract or that the breach was not due to negligence, the government can still choose to terminate (Acquisition.gov, 2008). Yet the contractor does not receive a penalty according to FAR 52.249 that states the termination for default is at the convenience of the government based on its rights and obligations (FAR, 2012). The contract can be reinstated, if the terms for default are corrected or deemed amenable by the contractor and the government when it is an advantage to the government (FPDS,

2011). Termination for Convenience Termination for convenience of the Government. In the case of a Fixed price contract when acquisition can be fulfilled with a reduced contract amount also called a Short Form. This is used when a contract includes a Research and Development clause related to education or non for profit organizations. Also used when working with construction institutions such as architects, demolition, or engineering services. The clause is also applicable with partial payments. If the terms of the contract require interest that exceeds the partial payment, this may be considered in appropriate by the federal or state contracting officer. The Termination for Convenience is accepted when the fixed price contract is expected and will not require substantial charges to carry out the contract terms that would exceed expected date for the completion of services. Examples would be rentals beyond the completion date, laundry or dry cleaning services 52.249-4 (FAR, 2012). Payments and Buying Patterns There are two types of federal contracts in terms of payments. They are fixed price and cost reimbursement. The Contracting Program Officer had to determine how much risk is assigned to delivering the terms of the contract. Based on this assessment as in the instance of no R & D and less risk such as an off the shelf type solution, a fixed price would be acceptable. However if there are unforeseeable costs such as in a R & D contract, the contractor is reimbursed for the costs after they have been incurred, plus a fee for completing the terms.

In the case where the federal government needs to repurchase the same type of product on an ongoing basis. A Basic Order Agreement as described in FAR 13, is acceptable based on a preset cost considered fair and reasonable (FPDS, 2011). This BOA is considered for repeatedly making a purchase of the exact same product or service.

References Acquisition.gov. (2008). Federal acquisition system requirements document. Retrieved April 26, 2012 from https://www.acquisition.gov/fas_doc.html FAR. (2012). Federal acquisitions regulations. Retrieved April 26, 2012 from http://usgovinfo.about.com/gi/o.htm? zi=1/XJ&zTi=1&sdn=usgovinfo&cdn=newsissues&tm=169&gps=641_435_1281_603& f=00&su=p284.13.342.ip_&tt=2&bt=0&bts=0&zu=http %3A//www.acquisition.gov/FAR/ FPDS. (2011). Federal procurement data system. Retrieved April 26, 2012 from https://www.fpds.gov/fpdsng_cms/index.php/reports Longley, R. (2012). Government contracting: government acquisitions regulations. Retrieved April 25, 2012 from http://usgovinfo.about.com/od/moneymatters/a/ctfar.htm