Order Types

Under Alliant, the Ordering Contracting Officer (OCO), under FAR 16.505(b)(1)(ii), has broad discretion in developing appropriate order placement procedures.  The goal is to keep submission requirements to a minimum and OCOs may use streamlined procedures, including oral presentations.  The competition requirements in FAR Part 6 and policies in FAR Part 15.3 do not apply to orders issued under Alliant.

All types of Fixed-Price (FP), Cost-Reimbursement, Incentive, Time-and-Materials (T&M), and Labor-Hour (L-H) can be used, as well as Award Term Incentive provisions.

The preference is for performance-based contracts. The Office of Federal Procurement Policy (OFPP) recommends that performance work statements (PWS)/statements of objectives be utilized, to the maximum extent practicable, when acquiring services. A T&M contract may be used only if the OCO prepares a determination and findings that no other contract type is suitable or if the order includes a ceiling price that the contractor exceeds at its own risk.

Where feasible, the OCO should use performance-based acquisition methods to the maximum extent practicable using the following order of precedence:

* A firm fixed price, performance-based order.
* A performance-based order that is not firm fixed price.
* An order that is not performance-based.

The Order Process

Step 1: Plan the Acquisition  
Orders issued under a Task Order or Delivery Order contract awarded through a GWAC or MAC must develop acquisition plans in accordance with FAR Part 7.  When developing the acquisition plan, the competition requirements in FAR Part 6 and the policies in Subpart 15.3 do not apply to the ordering process.  OCOs should also address bundling (FAR 2.101) considerations if applicable.

Step 2: Define Requirement (SOW, PWA, SOO) and Develop Solicitation (RFP/RFQ)
The Administration has stated agencies are encouraged to use firm-fixed price, performance-based orders whenever possible. OCOs may request scope reviews at any time during the acquisition process and are encouraged to do so prior to soliciting proposals.

Performance-based contracting means an acquisition structured around the results to be achieved, as opposed to the manner by which the work is to be performed, and they must include: a performance work statement (PWS); measurable performance standards; a method of assessing contractor performance against performance standards; and performance incentives where appropriate.

The PWS identifies the technical, functional and performance characteristics of the government’s requirements. The PWS describes the work in terms of the purpose of the work to be performed rather than how the work is to be accomplished or the number of hours to be provided.

Statement of Objectives (SOO) is a variant of the PWS which summarizes key agency goals and outcomes, to which contractors respond with solutions. It is different from a PWS approach in that offerors are asked to develop and propose a PWS, technical approach, performance standards/metrics and acceptable quality levels, incentives/disincentives, a quality assurance surveillance plan and pricing.

At a minimum, a SOO should contain the following information: purpose; scope or mission; period and place of performance; background; performance objectives (i.e., required results); and any operating constraints.

A solicitation may be in the form of a Request For Proposal (RFP) or a Request For Quote (RFQ).  It must include a SOW/PWS/SOO, evaluation factor(s), contract type, period and place of performance, due date, applicable proposal instructions, and other information (e.g., agency specific clauses) identifiable to the work effort.

Cost or price must be an evaluation factor for all orders. Other factors should be limited to meaningful discriminators including: past performance (strongly encouraged); a risk analysis of the order performance; strengths and weaknesses in performing the desired outcomes; management approach; technical approach; or experience of key personnel.

The OCO is responsible for clearly identifying the applicable provision and clause configuration in order solicitations. (See Alliant website www.gsa.gov/Alliant for a link to “Seven Steps to Performance Based Acquisition.”)

Step 3: Issue Solicitation – Offer Fair Opportunity to All Alliant Primes

A solicitation may be issued either by using the “RFP to All” link at www.gsa.gov/alliant, or through the OCO Agency’s preferred method which may be via e-mail, facsimile, GSA’s e-Buy at www.gsa.gov/ebuy or other electronic means as prescribed by the OCO’s agency.

Solicitation synopsis in FedBizOpps is not required or recommended for orders issued against indefinite-delivery contracts. The use of any one of the preceding mediums to broadcast an RFQ/RFP notice to all contract holders satisfies the fair opportunity to be considered notification requirement.

Various multiphased approaches are acceptable and are totally discretionary on the part of the OCO.  The multiphased approach may be appropriate when the effort required to respond to a potential order is resource intensive.

Step 4: Evaluate Proposals – Price & Other than Price 

OCOs should evaluate proposals based on the methodology stated in the solicitation to maintain fairness in the order process and mitigate protest risk.  Technically acceptable evaluations are valid best-value methods, and are authorized at the order level.  FAR-based and client agency policy-based evaluation methods for assessing price and/or cost, and non-price/non-cost aspects of quotes and proposals in order to achieve best value, are useful guides for OCOs.

The OCO is responsible for analyzing order proposals and documenting the cost or price evaluation to include a determination that the final agreed-to price is fair and reasonable, irrespective of contract type(s). The OCO must determine fair and reasonable pricing for all fixed-price orders. For all cost reimbursement orders the OCO must determine cost allowability, allocability and realism and also must analyze and negotiate the fee.

Alliant provides loaded hourly labor rates for T&M and LH contract types.  However, these rates are NOT fixed or ceiling hourly labor rates for purposes of pricing T&M or LH Orders.  The loaded hourly labor rates can be used as benchmark comparisons for proposed rates on T&M or LH Orders or to develop an Independent Government Cost Estimate (IGCE).

The OCO is authorized to establish different hourly rates suited to meet the ordering agency’s specific requirements and determine fair and reasonable pricing in accordance with FAR 15.4.

Step 5: Order Award Documentation, Debriefings and Protests Order Award Documentation

The OCO must document in the order file the rationale for placement and price of each order, including the basis for award and the rationale for any tradeoffs among cost or price and non-cost considerations in making the award decision. The contract file shall also identify the basis for using an exception to the fair opportunity process.

Debriefings are required when timely requested for orders greater than $5,000,000.  The new debriefing requirement is an impetus for the recommendation that order awards be announced in a verifiable way (see ordering guide topic “Announcement of Order Award”), as announcement will trigger the opportunity period for requesting timely debriefings. Debriefings for orders less than $5,000,000 are also encouraged, but are not required.

If there is a dispute, Alternative Dispute Resolution (ADR) procedures increase the opportunity for relatively inexpensive and expeditious resolution of issues in controversy.

Further, no protest under $10,000,000 is authorized in connection with the issuance or proposed issuance of an order under a Task Order Contract or Delivery Order Contract, except for a protest on the grounds that the order increases the scope, period of performance, or maximum value of the contract.

Step 6: Administer and Closeout Order

The OCO is responsible for insuring contractor performance meets the minimum requirements established in the order, documenting the order file and communicating with the contractor to ensure the government is receiving the contracted services.

At completion, the client agency is required to complete a past performance record for the contractor.  The OCO is encouraged to share findings on the performance of Alliant contractors.

The OCO is responsible for preparing and submitting the Federal Procurement Data System (FPDS) data for each order awarded as well as applicable modifications. They are also required to provide an order completion statement to the GWAC CO verifying that all terms of the contract have been met and there are no remaining open items.  Closeout procedures shall include a Release of Claims from the Contractor.

OCOs are strongly encouraged to utilize Quick Closeout procedures in, when applicable, because it is a faster method of completing the closeout process.

Source: GSA