Types of Services

Question 1

Types of Services

Answer 1

Types of Services:

FAR parts 34, 35, 36, 37, 39, and 41

FAR Part 34 - Major System Acquisition

FAR Part 35 - Research and Development Contracting

FAR Part 36 - Construction and Architect-Engineer Contracts

FAR Part 37 - Service Contracting

FAR Part 39 - Acquisition of Information Technology

Part 41 - Acquisition of Utility Services

Question 2

Personnel rendering services who are not subject to the supervision and control usually prevailing in relationships between the government and its employees are performing under:

Performance-based contracts

Personal services contracts

Supply contracts

Non-personal services contracts
FAR 37.101

Answer 2

Non-personal services contracts

Question 3

Generally, which type of contract shall be used to acquire construction?
Cost-plus-award fee
Cost-plus-incentive fee
Firm-fixed-price
Letter contracts
FAR 36.207(a)

Answer 3

Firm-fixed-price

Question 4

Reasonable risk taking is appropriate as long as risks are:
Controlled and unmitigated
Uncontrolled and unmitigated
Controlled and mitigated
Controlled and inexpensive
FAR 39.102

Answer 4

Controlled and mitigated

Question 5

A performance work statement:

includes measurable performance standards

is difficult to evaluate based on contractor performance

must include performance incentives

always results from a Statement of Objectives
FAR 37.601(b)(2)

Answer 5

includes measurable performance standards

Question 6

An Independent Government Estimate of construction costs shall be prepared and furnished to the Contracting officer for each proposed contract and contract modification anticipated to exceed:
$100,000
$1,000,000
$150,000
$500,000
FAR 36.203(a)

Answer 6

150,000

Question 7

What is a market condition that exists when two or more contractors, acting independently, actively contend for the government’s business in a manner that ensures that the government will be offered the lowest cost or price alternative or best technical design meeting its minimum needs?
National Security System
Non-Personal Services Contract
Effective Competition
Modular Contracting
FAR 34.001

Answer 7

Effective Competition

Question 8

To the maximum extent practicable, FAR Part 37 requires the use of what for acquisitions of services?
Cost-reimbursement contracts
Multiyear contracts
Performance-based acquisition
Negotiated extensions to existing contracts
FAR 37

Answer 8

Performance-based acquisition

Question 9

______________ means the lead agency responsible for managing, administering, or monitoring overall use of the FFRDC under a multiple sponsorship agreement
Non-Sponsor
Multiple Sponsor
Primary Sponsor
Sponsor
FAR 35.017(b)

Answer 9

Primary Sponsor

Question 10

What is the preferred method for acquiring services?
Sealed Bidding procedures
Bundling
Multi-year contracting
Performance-based acquisition
FAR 37.102(a)

Answer 10

Performance-based acquisition

Question 11

When should agencies utilize modular contracting?
Whenever practicable.

When contracting for construction and architect-engineer supplies and services.

When contracting with industries where technology is not likely to change.

To acquire major systems of information technology.
FAR 39.103(a)

Answer 11

To acquire major systems of information technology.

Question 12

Which of the following shall be used when the principle purpose of the transaction is to stimulate or support research and development for another public purpose?

Firm-fixed-price contracts

Sealed bids

Letter contracts

Grants or cooperative agreements
FAR 35.003(a)

Answer 12

Grants or cooperative agreements

Question 13

What kind of contract directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply?

Nonpersonal services contract.

Federal Supply Schedule.

Service contract.

Modular contract.
FAR 37.101

Answer 13

Service contract.

Question 14

What is the purpose of the monthly review of utility service invoices?
To review the financial status of the contract.

To examine competitive markets for better service offerings.

To review that the contract remains under the simplified acquisition threshold.

To ensure the accuracy of the invoices.
FAR 41.401

Answer 14

To ensure the accuracy of the invoices.

Question 15

Which type of construction contract should be used when the price for materials is likely to fluctuate with market conditions?
Cost reimbursement
Firm-fixed-price contract
Fixed-price contract with economic price adjustment
Time & Materials contract
FAR 36.207(c

Answer 15

Fixed-price contract with economic price adjustment

Question 16

Which of the following is a true statement?
Contracting officers shall acquire construction using simplified Acquisition Procedures

Generally, Contracting officers shall acquire construction using cost-reimbursement contracts.

Contracting officers shall acquire construction using sealed bid procedures.

Contracting officers shall acquire architect-engineer services using an SF-44 form.
FAR 36.103

Answer 16

Contracting officers shall acquire construction using sealed bid procedures.

Question 17

Drawings submitted by a contractor to show the construction of a particular structure as actually completed under the contract are called what?
Plans
Design drawings
Record drawings
Specifications
FAR 36

Answer 17

Record drawings

Question 18

In which of the following cases is a Research and Development contract most appropriate?
Whenever the agency head deems it appropriate.

When the work or methods cannot be precisely described in advance.

When the success of the agency’s goals is fully assured.

When supplies or services are being acquired for a purpose other than Federal use.
FAR 35.002

Answer 18

When the work or methods cannot be precisely described in advance.

Question 19

In preparing work statements, technical and contracting personnel shall consider and, as appropriate, provide in the solicitation all of the following EXCEPT:
a statement of the area of exploration, tasks to be performed, and objectives of the research or development effort.

reporting requirements and information on any additional items that the contractor is require to furnish as the work progresses.

information on factors such as personnel, environment, and interfaces that may constrain the results of the effort.

a precise description of the work and methods.
FAR 35.005

Answer 19

a precise description of the work and methods.

Question 20

Which of the following is NOT considered a utility service under FAR Part 41?
Electric service

Cable television (CATV) and telecommunications service

Natural gas service

Sewage service
FAR 41.102

Answer 20

Cable television (CATV) and telecommunications service

Question 21

Which of the following is not an example of information technology?
A building’s digital thermostat
A modem
A computer hard drive
Software development
FAR 39

Answer 21

A building’s digital thermostat

Question 22

GSA is authorized by 40 U.S.C.501 to contract for utility services for periods not exceeding ___ years.
10
5
15
25
FAR 41.103(a)

Answer 22

10

Question 23

After a Broad Agency Announcement, the primary basis for selecting proposals shall be:
Cost realism and reasonableness.

Cost, quality, and timeliness.

Technical basis, importance to agency programs, and fund availability.

Cost reasonableness, specificity of the solution, and importance.
FAR 35.106

Answer 23

Technical basis, importance to agency programs, and fund availability.

Question 24

Which Act provides for minimum wages and fringe benefits as well as other conditions of work?
Davis-Bacon Act
Walsh-Healy Act
Equal Opportunity Act
Service Contract Act
FAR 37.107

Answer 24

The Service Contract Act (also known as the Service Contract Labor Standards statute) provides for minimum wages, fringe benefits, and other conditions of work for service contracts.

This is outlined in FAR 37.107

The Davis-Bacon Act is a federal law that requires contractors and subcontractors working on federally funded or assisted construction projects over $2,000 to pay laborers and mechanics the locally prevailing wages and fringe benefits as determined by the Department of Labor. These requirements apply to the construction, alteration, or repair (including painting and decorating) of public buildings or public works.

This ensures that workers on public projects are paid wages comparable to local standards. The relevant clause is often included in federal construction contracts, and the Act is outlined in FAR 22.4.

The Walsh-Healy Public Contracts Act (also known as the Walsh-Healy Act) applies to contracts exceeding $15,000 for the manufacture or furnishing of materials, supplies, articles, or equipment for the U.S. government. The Act requires that contractors and subcontractors:

Pay employees at least the federal minimum wage and overtime (time and a half) for hours worked beyond 40 in a week.
Ensure that no workers under 16 years of age or convicts (except under certain conditions) are employed.
Provide safe and sanitary working conditions.
Comply with maximum hours, child labor, and convict labor restrictions.
This Act aims to ensure fair labor standards in the performance of government contracts and is codified in FAR Subpart 22.6.

The Equal Opportunity Act refers to legislation designed to prohibit discrimination and promote equal opportunity in employment, credit, education, and other areas of public life. In the context of federal contracting, the term most closely aligns with laws and regulations that enforce equal employment opportunity (EEO) for government contractors.

Question 25

Explain the differences between the following Acts:
Davis-Bacon Act
Walsh-Healy Act
Equal Opportunity Act
Service Contract Act

Answer 25

1. Davis-Bacon Act
   Purpose: The Davis-Bacon Act (1931) ensures that laborers and mechanics employed on federal construction projects receive wages and benefits that are not less than the local prevailing wage.
   Scope: Applies to federal or federally assisted construction contracts over $2,000 for public buildings or public works projects.
   Key Provisions:
   Contractors must pay workers at least the locally prevailing wages and fringe benefits, as determined by the Secretary of Labor.
   Applies specifically to construction, alteration, or repair of public buildings and public works.
2. Walsh-Healy Public Contracts Act
   Purpose: The Walsh-Healy Act (1936) applies to contracts for the manufacture or furnishing of materials, supplies, articles, and equipment to the federal government, ensuring fair labor practices.
   Scope: Covers supply contracts exceeding $15,000, specifically dealing with goods and equipment procurement by the federal government.
   Key Provisions:
   Workers must be paid at least the federal minimum wage.
   Limits work hours to 40 hours per week and mandates overtime pay for hours worked over 40.
   Prohibits child labor and ensures safe and sanitary working conditions.
   Does not apply to construction contracts, which are covered by the Davis-Bacon Act.
3. Equal Opportunity Act
   Purpose: The Equal Opportunity Act refers to anti-discrimination laws and regulations aimed at preventing employment discrimination on the basis of race, color, religion, sex, national origin, and other protected classes.
   Scope: The most relevant to federal contracting is Executive Order 11246, which applies to federal contractors and subcontractors.
   Key Provisions:
   Requires affirmative action plans from contractors to ensure equal employment opportunities.
   Enforced by the Office of Federal Contract Compliance Programs (OFCCP).
   Often associated with fair hiring practices, this act promotes nondiscrimination across a broad range of industries and government contractors.
   This differs from the other acts, as it focuses on anti-discrimination rather than wages and labor conditions.
4. Service Contract Act (SCA)
   Purpose: The Service Contract Act of 1965, also known as the McNamara-O’Hara Service Contract Act, ensures that service employees working on federal contracts are paid fair wages and receive adequate benefits.
   Scope: Applies to federal contracts over $2,500 that involve services provided to the federal government, such as janitorial, maintenance, or security services.
   Key Provisions:
   Requires contractors to pay service employees wages and fringe benefits at least equal to those prevailing in the locality.
   Enforces safe and sanitary working conditions.
   Covers a broad range of service contracts but does not apply to goods or construction contracts (which fall under Davis-Bacon or Walsh-Healy).

Summary of Differences:
Davis-Bacon Act: Governs wages on construction contracts.

Walsh-Healy Act: Governs wages, hours, and labor standards for supply contracts.

Equal Opportunity Act: Prevents discrimination in employment for federal contractors.

Service Contract Act: Governs wages and benefits for service employees on federal contracts.

Question 26

FAR PART 34, MAJOR SYSTEM ACQUISITION

FAR Part 34 provides limited directions for acquiring major systems.

What does “major systems” mean?

Answer 26

Large, grand, complex, expensive— measured in the millions or billions of dollars. The Department of Defense uses terms like “Major Defense Acquisition Program” (MDAP) to describe its biggest contracts.

Question 27

FAR PART 34, MAJOR SYSTEM ACQUISITION

FAR Part 34 provides limited directions for acquiring major systems.

Do I need a team of lobbyists?

Answer 27

If your company delivers products or services related to major systems, measured in the millions or billions of dollars, you should consider hiring a team of lobbyists to influence Congress. Why? Because all your major competitors already have lobbyists in Washington, DC.

I am not endorsing, praising, or condoning the system that all but requires lobbyists. I am merely informing you about the reality of the American defense and contracting industry. President Eisenhower called it the “military-industrial complex” in his farewell address in 1961.

Do you think Lockheed Martin hires lobbyists? Do you think Boeing hires lobbyists? They do. Why do you think Amazon opened an office right outside of Washington, DC? Again, I am not endorsing, praising, or condoning this system. I am describing real conditions and events on planet Earth, the United States of America.

Question 28

FAR PART 34, MAJOR SYSTEM ACQUISITION

FAR Part 34 provides limited directions for acquiring major systems.

What do federal contractors need to know about FAR Part 34, Major System Acquisition?

Answer 28

Not much, spend your valuable time elsewhere.

Question 29

FAR PART 34, MAJOR SYSTEM ACQUISITION

FAR Part 34 provides limited directions for acquiring major systems.

Why do you say so?

Answer 29

I worked as a federal employee (contract specialist) for the Air Force Space Command, Space and Missile Systems Center, specializing in major, space-based weapons systems, measured in the billions of dollars. Think of satellites, rockets, global positioning systems. FAR Part 34 (Major System Acquisition) was not important to my on-the-job education or experience. If you read through FAR Part 34 and find something to blow my hair back and knock my socks off, please email me at Christoph@ChristophLLC.com.

Question 30

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review.

What is the primary purpose of research and development contracting?

Answer 30

The primary purpose of research and development contracting is to advance scientific and technical knowledge, which is an abstract goal. Other types of contracting have concrete goals, such as delivering 2,000 pounds of crude oil or mowing 100 square miles of grass on an Army base.

Research and development contracts have abstract goals that cannot be described in advance, in contrast to supplies and services, which can be defined clearly. The government cannot predict the future, nor can it predict which research programs will succeed or fail. Therefore, research and development contracting encourages the top minds in science, technology, and industry to submit unique, creative proposals, usually through the Broad Agency Announcement process. The government uses experts in the same fields to judge the technical merits of these proposals with the lofty goal of advancing the state of the art.

Question 31

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review.

What is a Broad Agency Announcement?

Answer 31

Broad Agency Announcements (BAA) are used to announce the government’s interest in one or more research topics.
BAAs should only be used when the government expects meaningful proposals with varying technical or scientific approaches. In other words, the government does not know what it wants, other than to explore new frontiers of science or technology.

Question 32

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

Why are research BAAs so different from traditional government contracting?

Answer 32

Remember this phrase: “No common Statement of Work.” When using BAAs, the government expects a wide variety of possible research programs, which is different from most government contracting competitions. In most competitions, each company competes to provide the best solution for the same Statement of Work. In a BAA competition, every company submits a different researchidea making it nearly impossible to compare the proposals against one another sensibly. When contracting for research, there is no common Statement of Work.

Question 33

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

Why must BAAs request general topics for research rather than specific goods or services?

Answer 33

The BAA process is a special procurement method for exploring new areas of research, not for buying things like supplies or services that the government can adequately describe. If the agency needs a specific system or hardware solution, then BAAs are not appropriate and the agency should use other methods of competitive contracting.

Question 34

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What are the four requirements of a BAA?

Answer 34

The BAA must describe the agency’s research interest(s), so that industry understands the broad topics of the BAA. The method of evaluation, including the criteria for selection and their relative importance, must be described in the BAA. The government must specify the period during which proposals will be accepted. Finally, the BAA must contain instructions for preparing and submitting proposals.
Therefore, the BAA must answer the following questions:
What is the research topic?
How will proposals be evaluated?
When can proposals be submitted and accepted?
What must proposals contain and how must they be submitted?

Question 35

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

How are BAA proposals evaluated?

Answer 35

BAA proposals are evaluated using either peer or scientific review.

Question 36

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What is peer or scientific review?

Answer 36

Peer or scientific review is a group of experts evaluating proposals from BAAs. These experts should be qualified within the field(s) of expertise related to the proposal topic. For example, if the BAA calls for proposals for cancer research, the group of experts may consist of cancer research scientists and medical doctors specializing in cancer (oncologists). If the BAA asks for research proposals about artificial intelligence, the group of experts may consist of mathematicians and computer scientists.

Question 37

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

Is price important in a BAA for research?

Answer 37

Price is not really important, and this difference distinguishes the BAA process from almost every other competitive process in the FAR. Since BAAs are designed to get the best research available from cutting-edge scientists, research institutions, and technology companies, other factors overshadow price. Although the agency will evaluate your cost and price, those details will not be the primary basis for selection.

Question 38

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What factors do agencies use to select proposals from
BAAS?

Answer 38

Proposal selection decisions are based on the following factors: technical, importance to agency programs, and
“funding availability.”

Question 39

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What does “funding availability” mean?

Answer 39

Usually, the government has a fixed budget to spend on the research area(s) and topic(s) covered by the BAA. The government selects the best proposals until it runs out of money. So, funding availability just means the government has money remaining in the budget to fund the research project. Funding availability should be distinguished from concepts like “getting the lowest price” or “tradeoffs between price and technical factors.”

Question 40

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What do “technical” and “importance to agency programs” mean?

Answer 40

These factors indicate how much discretion agencies have in the evaluation and selection of proposals under research BAAs. Technical is a broad and subjective term to describe the research merits of the proposal. Since research, by definition, explores possibilities that do not yet exist, evaluating proposals based on their technical merit calls for quite a bit of discretion. The agency’s peer or scientific review team will decide whether your proposal’s “technical” merit deserves the award. Importance to agency programs simply describes how well your research proposal lines up with the goals of the agency and its research programs).

Question 41

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

Can agencies award other instruments from BAAs, like grants?

Answer 41

Yes, BAAs often allow funding of FAR-based procurement contracts, assistance instruments like grants and cooperative agreements, and even “Other Transactions,”a special type of government contract for research or prototypes (and sometimes full manufacturing production from the prototypes).

Question 42

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What are grants, cooperative agreements, and Other Transactions?

Answer 42

Grants are appropriate when the research topic stimulates an area that benefits public policy, such as cancer research, but the government needs little to no involvement in the process. If you receive a grant, your company may receive money with little expected in return other than a final report of research results. Cooperative agreements are much like grants-stimulating research rather than obtaining direct benefits or deliveries-yet cooperative agreements allow greater government involvement in the research process.
Other Transactions use a special authority that allows the government to craft flexible contracts for research or prototypes, with almost as much leeway as a private-sector contract, unburdened from most of the laws, regulations, and policy shackles that handcuff traditional government contracts. One policy goal of Other Transactions is to attract nontraditional, innovative companies that otherwise avoid government contracts because of restrictive regulations like the FAR, grasping intellectual property clauses, or complicated Cost Accounting Standards. Any BAA should specify exactly which types of government contracts or agreements it intends to award, such as FAR-based procurement contracts, grants, cooperative agreements, and Other Transactions.

Question 43

FAR PART 36, CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

FAR Part 36 provides contracting procedures for the special fields of construction, architecture, engineering, and related services.

Why is construction contracting different?

Answer 43

Construction creates a building or other structure, possibly from the ground up. So many things can go wrong: accidents, delays, shady subcontractors, weather problems, structural collapses, and unforeseen conditions. With so many different steps in the construction process
-excavation, foundation, concrete, drywall, insulation, masonry-construction involves an exceptionally long chain of subcontractors, and “subcontractors to the subcontractors.” Construction involves many points of failure and catastrophic failure can literally kill people.

Government contracts for construction use special clauses to mitigate these risks, such as clauses for site inspection, subcontracting, liquidated damages,
workmanship,
permits, accident prevention, and cleaning up. You will not encounter these special construction clauses in the performance of government contracts for supplies, services, or research and development. Construction is a special breed.

Question 44

FAR PART 36, CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

FAR Part 36 provides contracting procedures for the special fields of construction, architecture, engineering, and related services.

What are architect-engineer services?

Answer 44

Architect-engineer (A-E) services include professional services required by state law to be performed by licensed architects or engineers, such as the design or construction of real estate property. A-E services can also include incidental services like surveying property boundaries, performing studies, mapping, or soil engineering.

Question 45

FAR PART 36, CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

FAR Part 36 provides contracting procedures for the special fields of construction, architecture, engineering, and related services.

Why is A-E contracting different?

Answer 45

Congress passed a law called the Brooks Act that mandates a special qualifications-based selection of government contractors for A-E services. Contractors are selected primarily on competence and qualifications, with the negotiation of price coming a distant second. First, the government selects the highest rated contractor, then negotiates a reasonable price. If the second step fails to produce a reasonable price or a signed contract, the government moves to the second-best choice, and so forth.

The policy justification for A-E contracting is that you must
“get it right the first time” by hiring qualified professionals, rather than saving money with a cheap, unqualified contractor that causes a building to collapse or creates a million-dollar lawsuit by performing the boundary survey wrong. Focusing on qualifications and competence makes sense when you consider the dire consequences of hiring inferior professionals for these A-E services.

Question 46

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What is a service contract?

Answer 46

A service contract pays for a contractor to perform a task, rather than to supply an item. For example, cleaning a toilet, analyzing the FAR, and collecting garbage are all services.

Question 47

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What is the government’s preferred method for acquiring services?

Answer 47

The government encourages the use of performance-based acquisition for service contracts. Architect-engineering, construction, and utility services represent exceptions to this rule and do not require performance-based acquisition.

Question 48

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What is the difference between a PWS and SOW?

Answer 48

A Performance Work Statement (PWS) describes measurable performance standards (quality, timeliness, quantity) and focuses on the desired outcome. In contrast, a Statement of Work (SOW) provides detailed instructions for how to perform the work.

For example, a SOW might state that “the contractor shall use a gas-powered lawn mower, three times per month, during daylight hours to mow the grass on the Army base.” In contrast, a PWS might state that “the contractor shall keep the grass on the Army base between three and five inches in height at all times.” The SOW dictates exactly how the contractor will cut the grass, while the PWS lets the.contractor figure out the most sensible way to achieve the desired result.

This example PWS has measurable performance standards: the height of the grass should be always between three and five inches. In this example, the government’s method of measuring the contractor’s performance might be a “spot check” once per week with measuring tape.

Question 49

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What is performance-based acquisition?

Answer 49

Performance-based acquisition uses a Performance Work Statement (PWS) instead of a Statement of Work (SOW), measurable performance standards, and a method of measuring contractor performance against these objective standards.

The goal of performance-based acquisition is to save money and achieve better results by using commercial solutions.
Instead of telling the experts in industry how to perform services, ask for the desired outcome and let the contractor impress the client with its ingenuity.

Question 50

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

Is the difference between a PWS and SOW sometimes illusory, and merely “form over substance?”

Answer 50

Yes, unfortunately. In the real world, sometimes the government employee literally deletes the title of
“Statement of Work” and substitutes “Performance Work
Statement,” with no substantive differences whatsoever.
This so-called “PWS” describes exactly how your company must perform the work, rather than describing the desired results. When this tomfoolery happens, we have a classic case of form over substance. The document has a new title (PWS) but nothing changed. You may encounter a so-called
“PWS” that is merely a SOW in disguise.

Question 51

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

How does the government measure whether the contractor meets performance standards of a PWS?

Answer 51

One common method for measuring the contractor’s adherence to the performance standards of a PWS is called a Quality Assurance Surveillance Plan or QASP (rhymes with “wasp”). Sometimes the government designs the QASP and sometimes the government requires the contractor to design the QASP. Either way, the QASP will be a critical document to measure your success under the government contract. Become familiar with the QASP, which will describe exactly how and when the government will
“checkup” on your performance.

Question 52

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What are personal services?

Answer 52

In government contracting, personal services refers to a contract that creates an employer-employee relationship.
Of course, hiring “contractors” is designed specifically to avoid creating an employer-employee relationship. The government employee is supposed to hire a contractor to perform a contract, wherein the contractor uses its own employees. In this way, the government maintains a contractual relationship with its contractor, and does not create an employer-employee relationship.

Question 53

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

Why does the government avoid creating personal services contracts?

Answer 53

I will tell you a secret. The secret reason is that if a government contractor performs personal services, the government may be liable for benefits owed to employees, such as overtime, health care, and pensions. You may have heard that federal employees have extraordinary benefits when compared to the private sector. The government fears the possibility of a government contractor successfully suing the government for a lump-sum payment representing these benefits.

Question 54

FAR PART 39, AQUISITION OF INFORMATION TECHNOLOGY

FAR Part 39 covers special issues in contracting for information technology.

What do federal contractors need to know about FAR Part 39, Aquisition of Information Technology?

Answer 54

Not much. Spend your valuable time elsewhere, but make sure you read my answer to the final question in this chapter.

Question 55

FAR PART 39, AQUISITION OF INFORMATION TECHNOLOGY

FAR Part 39 covers special issues in contracting for information technology.

If FAR Part 39 is not helpful, what advice do you have for federal IT contractors?

Answer 55

Know your client. Learn and understand as much as you can about the mission of the federal agency client. Try to conceptualize the operational constraints of the employees who work for that agency. Clients will trust your company and its products and services if you demonstrate a commitment to understanding the agency.

Be extremely careful with “scope creep”” which is a colloquial phrase for when the government’s requirements expand beyond what was written or contemplated in the contract. For example, during performance of your contract, the government realizes it wants much more than what is required by the statement of work. Understand your statement of work and its limitations. Do not work for free but do not upset the client.

Manage your client’s expectations. Do not promise or agree to unrealistic requests. Walk your client “away from the cliff.” Do not be afraid to say, “We cannot do that for the following reasons.” However, you should offer an alternative solution that solves the problem. Avoid handing complete control of your project schedule to the government client.
Watch your deadlines and deliverables.

If your company is asked to perform work that is not required by the contract, think very carefully about performing that work “for free.” Do not be afraid to respectfully push back on any request to perform work that is outside the scope of the contract. Ask for a written contract modification to change the statement of work, which will entitle your company to an “equitable adjustment” (more money to pay for the new work).

If you provide onsite IT support for a federal client, train your employees to observe the working environment to better understand the client. Having “boots on the ground” is invaluable intelligence to help you better serve your client. Listen to your line-level employees and ask them what problems they see at the agency. Those problems can be solved by your company, perhaps winning you more contracts and greater client trust.

You might know much more about IT than your government client, but do not rub it in anyone’s face.
Be professional, be patient, and never be arrogant or condescending. The government outsources most of its IT knowledge, which means it hires smart contractors to do the heavy lifting. You can be that smart contractor, but nobody will like you (or hire you) if you come across as unpleasant.

Be kind, be courteous, be humble.
If you sell software, consider how you will sell it. Will you sell software licenses? Will the license be for the entire agency’s use? One license per office? One license per person? Will your license be subscription-based, with annual renewals? Will your license be a one-time payment?
Will you require upgrade costs? What about maintenance?
Can your company offer tailored solutions as the agency’s needs change? Will your company offer a team of onsite support specialists to complement the software licenses, thereby expanding your software company into