Federal Contracting

Background
There are more than 60 federal

government agencies
There are more than 1,500 federal government buying offices
The U.S. federal government is the biggest buyer of supplies and services in the world
More than 14 million procurement actions occur

every fiscal year
More than $195 billion is appropriated every fiscal year

Procurement Actions
Of all federal government procurements….
Small purchases (those under $25,000) have made up more than 50%
Orders (issued per existing task order contracts, basic ordering agreements, and so on) have made up more than 30%
New contracts (those over $25,000) have made up less than 1%

Department of Defense (DOD)
Procurements
DOD has spent more than $115 billion each

year during the past five fiscal years
Which DOD departments spend the most?
Air Force
Navy
Army
Defense Logistics Agency (DLA)

The Federal Acquisition Process
Preaward Phase
Needs Recognition

Award Phase
Contract
Award

Postaward Phase
Contract
Administration

Acquisition
Planning

Solicitation/
Evaluation

Contract Budgeting and Funding
Key Terms and Concepts
Authorization
Appropriation
Apportionment
Allocation and allotment
Administrative commitment
Obligation and expenditure

Authorization and Appropriation
Congressional functions
Provide approval and funding
Strict limits on government acquisition
Annual appropriations (one year money)
Multiyear appropriations (color of money)
No-year appropriations (unlimited)
Anti-Deficiency Act (prohibits an agency from committing money they do not have)

Apportionment
Office of Management and Budget (OMB)

function (distribution function)
Time period distribution to agencies
Limit on obligations
Controls rate of expenditure

Allocation and Allotment
Agency functions
Limits on obligations
Administrative control and expenditures

Administrative Commitment
Agency budget office function
Sets funds aside for procurement
Ensures availability of funds
Anticipates obligation

Obligation
Appropriated funds
Legally binding commitment to spend
Function of contracting officer
Accomplished by contract award
Full funding
Incremental funding

The Federal Acquisition Regulations (FAR)
Federal Statutes and Regulations
No single procurement law
Governed by many laws
Laws in United States Code (USC)
Laws implemented by regulations
Code of Federal Regulations (CFR)
Federal Register (FR) (announcements of changes to the FAR)

FAR 1.102-4(e)
The FAR outlines procurement policies and procedures that are used by members of the
Acquisition Team. If a policy or procedure, or a particular strategy or practice, is in the best interest of the Government and is not specifically addressed in the FAR, nor prohibited by law
(statute or case law), Executive order or other regulation, Government members of the Team should not assume it is prohibited. Rather, absence of direction should be interpreted as permitting the Team to be innovative and use sound business judgment that is otherwise consistent with law and within the limits of their authority. Competition Requirements
Policies
Full and open competition
Full and open after exclusions
Other than full and open competition (required by law to write a justification)
Competitive procedures
 Justification and approval
 Public notice


Full and Open Competition
All responsible sources may compete
Competitive procedures
Sealed bidding
Competitive negotiation
Architect-engineer selections
Research and development (R&D) announcements/reviews Multiple-award schedules

Full and Open Competition After Exclusions
To establish or maintain sources
Requires documentation
Requires approval of agency head
Set-asides
Small business
Section 8(a)

Other Than Full and Open Competition
Only one responsible source
Unusual and compelling urgency
Mobilization or R&D capability
International agreement
Authorized or required by statute
National Security
Public