Below is literature to assist you

Fundamentals of Contracting

FAR Part 1 – Federal Acquisition Regulation System

The Federal Acquisition Regulation Systems was established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations System is Title 48 – Federal Acquisition Regulations Systems of the Code of Federal Regulations. It is composed of seven volumes.

The chapters in these volumes are arranged as follows:

• Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts 201 to 299), chapters 3 to 6, chapters 7 to 14, chapters 15 to 28 and chapter 29 to end. The Federal acquisition regulations in chapter 1 are those Government-wide acquisition regulations jointly issued by the General Services Administration, the Department of Defense, and the National Aeronautics and Space Administration.
• Chapters 2 through 99 are acquisition regulations issued by individual Government agencies. Parts 1 to 69 in each of chapters 2 through 99 are reserved for agency regulations implementing the federal acquisition regulations in chapter 1 and are numerically keyed to them. Parts 70 to 99 in chapters 2 through 99 contain agency regulations supplementing the federal acquisition regulations.

The Federal Acquisition Regulation (FAR) is prepared, issued, and maintained by the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration.

• The FAR contains eight Subchapters with 53 Parts. A numbering system permits discrete identification of every FAR paragraph.
• The digits to the left of the decimal represent the part number; the numbers between the decimal and the dash indicate the subpart (first one or two digits) and the section (last two digits); the number following the dash represents the subsection (see Figure 1).

Figure 1. Subdivisions below the section or subsection level consist of parenthetical alpha numeric using the following sequence: (a)(1)(i)(A)(1)(i).

The Defense Acquisition Regulations Council and the Civilian Agency Acquisition Council are responsible for revisions to the FAR. Each council is responsible for

• (a) agreeing on all revisions with the other council,
• (b) submitting the required information to the FAR Secretariat for publication in the Federal Register,
• (c) considering all comments received in response to notice of proposed revisions,
• (d) arranging for public meetings,
• (e) preparing any final revision in the FAR format and language, and
• (f) submitting any final revision to the FAR Secretariat for publication in the Federal Register and printing for distribution.

Publicizing in the Federal Register provides the public a forum for submitting written commenting on proposed significant revisions to the FAR. A minimum of 30 days is required, but 60 days is preferred.

All agencies are required to adhere to the FAR unless a deviation has been approved. Deviations are not permitted with respect to FAR Subparts 30.201-3 and 30.201-4, or the requirements of the Cost Accounting Standards Board rules and regulations.

There are three types of deviations: Individual, Class, and deviations pertaining to treaties and executive agreements. Individual deviations affect only one contract action; class deviations affect more than one contract action.

Executive agreements are Government-to-Government agreements. Any deviation from the FAR required to comply with an executive agreement is authorized unless it would be inconsistent with FAR coverage based on law.

USING FAR SUBPARTS 52.2 AND 52.301

FAR Subpart 52.2 sets forth the text of all FAR provisions and clauses. Provisions are written term or condition used in the solicitation and applied before contract award. Clauses are terms and conditions used in solicitations and incorporated into resultant contracts. The clauses are keyed to the subject matter or part of the FAR for which they pertain.

• All FAR Clause numbers begin with “52.2”. The next two numbers correspond to the number of the FAR subpart where the provision or clause is prescribed.
• In each part of the FAR, clauses and provisions that implement subpart policies and procedures are listed in the subsection and are entitled “Contract Clauses”.

The FAR clauses are prescribed in the FAR Part in which they are applicable. Each FAR section that has applicable clauses will contain a subsection titled, “Contract clause”.

• The clause 52.203-16, Preventing Personal Conflicts of Interest, prescription for use is outlined in FAR Subpart 3.1106, Contract clause. Within the clause itself, the first sentence will lead the reader back to the prescription subsection of the FAR. The FAR accommodates a major variation in provisions or clause through the use of alternates; these are titled accordingly e.g. Alternate I, Alternate II, etc.

FAR Subpart 52.301, Solicitation provisions and contract clauses (Matrix) provides guidance for applicable provisions and clauses. The Matrix includes the type of contract and contract purpose. In the Provision or Clause column, it lists the provision or clause by keyed number. Each provision or clause has the prescription location listed and whether it is a provision or clause (P or C).

The Matrix provides whether the provision or clause is authorized to be incorporated by reference (IBR). The matrix further provides the location in the Uniform Contract Format in which the provision or clause is to be incorporated. Lastly, the matrix provides a quick reference whether the provision or clause is required, required when applicable, optional, or is a revision is available. Many contract writing systems provide for automatic clause insertion, but it is a best practice to ensure the information in your solicitation or clause is the most current.

Identifying the Acquisition Team

The acquisition team should be identified as early in the procurement process as possible, and the members should remain active on the team through the acquisition process. This practice allows for continuity and helps offset any potential or actual conflicts of interest.

• The acquisition team 13 includes personnel from both the contracting office and the program office. In addition to the end user/customer and the contractor, Table 1 provides examples of the specialties needed to complete the acquisition team.

The program office and Contracting Officer work together to define the agency’s need, determine the appropriate method and type of contract, source selection and evaluation standards, and postaward administration procedures. The communication can include early communication with industry to gain a better understanding of the marketplace and the requirement.

The goal of the acquisition team is to efficiently and effective procure the agency’s needs at the best value to the Government.

The Contracting Officer is responsible for ensuring performance of all necessary actions for effective contracting, ensuring compliance with terms of the contract, and safeguarding the interest of the United States (FAR Subpart 1-603). The Contracting Officer is appointed in writing on an SF 1402, Certificate of Appointment (FAR Subpart 53.301-1402 Standard Form 1402, Certificate of Appointment) and is the only individual authorized to sign contracts on behalf of the Government.

Termination of a Contracting Officer’s appointment will be by letter unless the Certificate of Appointment contains provisions for automatic terminations. The Contracting Officer may designate in writing a Contracting Officer’s representative (COR) to assist in ensuring performance and compliance. When a COR is designated, the Contracting Officer must ensure that the individual has completed the proper training and has experience commensurate with the responsibilities (FAR Subpart 1.602, Contracting Officers). The COR may be assigned some duties outlined in FAR Subpart 42.302, Contract administration functions.

FAR PART 3 – IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

Conducting business as a Government employee requires the highest degree of public trust and an impeccable standard of conduct. Executive Order (EO) 11222 and 5 CFR 735 prescribe Standards of Conduct.

FAR Part 3, Improper Business Practices and Personal Conflicts of Interest, provides guidance for avoiding improper business practices and personal conflicts of interest. FAR Subpart 3.1, Safeguards, states no Government employee may solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from anyone who:

• Has or is seeking to obtain Government business with the employee’s agency;
• Conducts activities that are regulated by the employee’s agency; or
• Has interests that may be substantially affected by the performance or nonperformance of the employee’s official duties.

Executive Order 12674, issued by President Bush in 1989 and modified in 1990 by Executive Order 12731) outlines 14 general principles that define the obligations of public service. There are two core concepts: Employees shall not use their position for private gain and employees shall not act impartially and not give preferential treatment to any private organization or individuals.

It is the responsibility of the Government employee to conduct their private and professional lives in such a fashion as to avoid any action that would create the appearance that they are violating the law or ethical conduct. The principles that underpin ethics and procurement integrity are

• (a) fairness and impartiality,
• (b) transparency and consistency through the procurement process,
• (c) appropriate competition,
• (d) security and confidentiality procedures enforced,
• (e) identification and management of actual and potential conflicts of interest, and
• (f) compliance with the FAR and supplemental regulations.

To that end, an individual should recuse or disqualify or seek to disqualify from participation on the acquisition team to avoid a conflict of interest.

 

Below is literature to assist you

Fundamentals of Contracting

FAR Part 1 – Federal Acquisition Regulation System

The Federal Acquisition Regulation Systems was established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations System is Title 48 – Federal Acquisition Regulations Systems of the Code of Federal Regulations. It is composed of seven volumes.

The chapters in these volumes are arranged as follows:

• Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts 201 to 299), chapters 3 to 6, chapters 7 to 14, chapters 15 to 28 and chapter 29 to end. The Federal acquisition regulations in chapter 1 are those Government-wide acquisition regulations jointly issued by the General Services Administration, the Department of Defense, and the National Aeronautics and Space Administration.
• Chapters 2 through 99 are acquisition regulations issued by individual Government agencies. Parts 1 to 69 in each of chapters 2 through 99 are reserved for agency regulations implementing the federal acquisition regulations in chapter 1 and are numerically keyed to them. Parts 70 to 99 in chapters 2 through 99 contain agency regulations supplementing the federal acquisition regulations.

The Federal Acquisition Regulation (FAR) is prepared, issued, and maintained by the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration.

• The FAR contains eight Subchapters with 53 Parts. A numbering system permits discrete identification of every FAR paragraph.
• The digits to the left of the decimal represent the part number; the numbers between the decimal and the dash indicate the subpart (first one or two digits) and the section (last two digits); the number following the dash represents the subsection (see Figure 1).

Figure 1. Subdivisions below the section or subsection level consist of parenthetical alpha numeric using the following sequence: (a)(1)(i)(A)(1)(i).

The Defense Acquisition Regulations Council and the Civilian Agency Acquisition Council are responsible for revisions to the FAR. Each council is responsible for

• (a) agreeing on all revisions with the other council,
• (b) submitting the required information to the FAR Secretariat for publication in the Federal Register,
• (c) considering all comments received in response to notice of proposed revisions,
• (d) arranging for public meetings,
• (e) preparing any final revision in the FAR format and language, and
• (f) submitting any final revision to the FAR Secretariat for publication in the Federal Register and printing for distribution.

Publicizing in the Federal Register provides the public a forum for submitting written commenting on proposed significant revisions to the FAR. A minimum of 30 days is required, but 60 days is preferred.

All agencies are required to adhere to the FAR unless a deviation has been approved. Deviations are not permitted with respect to FAR Subparts 30.201-3 and 30.201-4, or the requirements of the Cost Accounting Standards Board rules and regulations.

There are three types of deviations: Individual, Class, and deviations pertaining to treaties and executive agreements. Individual deviations affect only one contract action; class deviations affect more than one contract action.

Executive agreements are Government-to-Government agreements. Any deviation from the FAR required to comply with an executive agreement is authorized unless it would be inconsistent with FAR coverage based on law.

USING FAR SUBPARTS 52.2 AND 52.301

FAR Subpart 52.2 sets forth the text of all FAR provisions and clauses. Provisions are written term or condition used in the solicitation and applied before contract award. Clauses are terms and conditions used in solicitations and incorporated into resultant contracts. The clauses are keyed to the subject matter or part of the FAR for which they pertain.

• All FAR Clause numbers begin with “52.2”. The next two numbers correspond to the number of the FAR subpart where the provision or clause is prescribed.
• In each part of the FAR, clauses and provisions that implement subpart policies and procedures are listed in the subsection and are entitled “Contract Clauses”.

The FAR clauses are prescribed in the FAR Part in which they are applicable. Each FAR section that has applicable clauses will contain a subsection titled, “Contract clause”.

• The clause 52.203-16, Preventing Personal Conflicts of Interest, prescription for use is outlined in FAR Subpart 3.1106, Contract clause. Within the clause itself, the first sentence will lead the reader back to the prescription subsection of the FAR. The FAR accommodates a major variation in provisions or clause through the use of alternates; these are titled accordingly e.g. Alternate I, Alternate II, etc.

FAR Subpart 52.301, Solicitation provisions and contract clauses (Matrix) provides guidance for applicable provisions and clauses. The Matrix includes the type of contract and contract purpose. In the Provision or Clause column, it lists the provision or clause by keyed number. Each provision or clause has the prescription location listed and whether it is a provision or clause (P or C).

The Matrix provides whether the provision or clause is authorized to be incorporated by reference (IBR). The matrix further provides the location in the Uniform Contract Format in which the provision or clause is to be incorporated. Lastly, the matrix provides a quick reference whether the provision or clause is required, required when applicable, optional, or is a revision is available. Many contract writing systems provide for automatic clause insertion, but it is a best practice to ensure the information in your solicitation or clause is the most current.

Identifying the Acquisition Team

The acquisition team should be identified as early in the procurement process as possible, and the members should remain active on the team through the acquisition process. This practice allows for continuity and helps offset any potential or actual conflicts of interest.

• The acquisition team 13 includes personnel from both the contracting office and the program office. In addition to the end user/customer and the contractor, Table 1 provides examples of the specialties needed to complete the acquisition team.

The program office and Contracting Officer work together to define the agency’s need, determine the appropriate method and type of contract, source selection and evaluation standards, and postaward administration procedures. The communication can include early communication with industry to gain a better understanding of the marketplace and the requirement.

The goal of the acquisition team is to efficiently and effective procure the agency’s needs at the best value to the Government.

The Contracting Officer is responsible for ensuring performance of all necessary actions for effective contracting, ensuring compliance with terms of the contract, and safeguarding the interest of the United States (FAR Subpart 1-603). The Contracting Officer is appointed in writing on an SF 1402, Certificate of Appointment (FAR Subpart 53.301-1402 Standard Form 1402, Certificate of Appointment) and is the only individual authorized to sign contracts on behalf of the Government.

Termination of a Contracting Officer’s appointment will be by letter unless the Certificate of Appointment contains provisions for automatic terminations. The Contracting Officer may designate in writing a Contracting Officer’s representative (COR) to assist in ensuring performance and compliance. When a COR is designated, the Contracting Officer must ensure that the individual has completed the proper training and has experience commensurate with the responsibilities (FAR Subpart 1.602, Contracting Officers). The COR may be assigned some duties outlined in FAR Subpart 42.302, Contract administration functions.

FAR PART 3 – IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

Conducting business as a Government employee requires the highest degree of public trust and an impeccable standard of conduct. Executive Order (EO) 11222 and 5 CFR 735 prescribe Standards of Conduct.

FAR Part 3, Improper Business Practices and Personal Conflicts of Interest, provides guidance for avoiding improper business practices and personal conflicts of interest. FAR Subpart 3.1, Safeguards, states no Government employee may solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from anyone who:

• Has or is seeking to obtain Government business with the employee’s agency;
• Conducts activities that are regulated by the employee’s agency; or
• Has interests that may be substantially affected by the performance or nonperformance of the employee’s official duties.

Executive Order 12674, issued by President Bush in 1989 and modified in 1990 by Executive Order 12731) outlines 14 general principles that define the obligations of public service. There are two core concepts: Employees shall not use their position for private gain and employees shall not act impartially and not give preferential treatment to any private organization or individuals.

It is the responsibility of the Government employee to conduct their private and professional lives in such a fashion as to avoid any action that would create the appearance that they are violating the law or ethical conduct. The principles that underpin ethics and procurement integrity are

• (a) fairness and impartiality,
• (b) transparency and consistency through the procurement process,
• (c) appropriate competition,
• (d) security and confidentiality procedures enforced,
• (e) identification and management of actual and potential conflicts of interest, and
• (f) compliance with the FAR and supplemental regulations.

To that end, an individual should recuse or disqualify or seek to disqualify from participation on the acquisition team to avoid a conflict of interest.