10 myths of government contracting kate Whitby 1 North Brentwood, Suite 1000

10 MYTHS OF GOVERNMENT CONTRACTING

• Kate Whitby

• 1 North Brentwood, Suite 1000

• St. Louis, MO 63130

• [e-mail]

GOALS

• Identify “Good” Contracts / Work

• Steer Away From “Bad” Contracts / Work

• Survive Audits

• Get Paid

• Don’t Get Sued

• Get Hired Again For Government Work

MYTH #1

• When The Government Asks For Bids, It Really Wants To Buy Something, Can Buy It, And Will Buy It

• Funding
• “Commercial Items”
• Contracting Officer
• Task order work awards

MYTH #2

• The Government’s Request For Bids Is Realistic And The Government Will Negotiate Fairly

• Market research
• Multiple Award Schedule contracts
• The False Claims and Trade Agreements Acts

MYTH #3

• The Government Will Be Fair And Reasonable Regarding Changes

• Change Orders
• Must be approved by CO
• Inside or outside scope of contract is important
• Constructive change orders
• Notice and equitable adjustment
• Differing Site Conditions

MYTH #4

• The Government Can’t Make Me Stay On A Contract That Is A Money Loser

• Unilateral Change Orders
• Contract Disputes
• “Mistakes”
• Termination for Government Convenience
• “Claims”

MYTH #5

• I Won’t Be Audited

• Pre-Award
• Proposal Review
• Provisional Billing Rate Review
• Past Performance
• Capacity
• Completion and After
• Final Overhead Rate

MYTH #6

• The Financial Accounting System I Use Is Good Enough For Government Work

• Cost Accounting Standards (CAS)
• Cost Principles and Procedures
• Direct vs. Indirect Costs and Indirect Cost Accounting
• General & Administrative Costs
• Accounting changes to indirect cost rate structures

MYTH #7

• I Don’t Need To Know Anything About The FARs

• Construction and Architect-Engineering Contracts (Part 36)
• Service Contracting (Part 37)
• Contract Admin & Audits (Part 42)
• Contract Modifications (Part 43)
• Subcontracting (Part 44)

MYTH #8

• At Least The Government Has The Money To Pay

• Appropriations
• Funding / deobligation of funds
• Fiscal year budgets
• 80% rate for progress payments
• Standard invoicing forms

MYTH #9

• Starting The Work Without A Signed Contract And Working In-Between Contract Renewals Or Extensions Is Not A Problem

• No.
• No.
• No.

MYTH #10

• I Am Not Responsible For A Sub’s Personnel or Employment Practices

• FAR Subpart 22.4, Labor Standards for Construction Contracts
• ADA
• EEO
• Davis-Bacon Act
• Stafford Act
• OSHA

LAWS/REGULATIONS

• Competition In Contracting Act
• Buy American Act
• Federal Acquisition Streamlining Act
• Truth In Negotiation Act
• False Claims Act
• Armed Services Procurement Act
• Federal Property & Administrative Services Act
• Contract Disputes Act of 1978
• Federal Acquisition Regulations (FARs)
• Defense Federal Acquisition Regulation Supplement (DFARS)

ADDITIONAL RESOURCES

• www.fedbizopps.gov

• www.arnet.gov/far

• www.ccr.gov

• www.sba.gov

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