As the world’s largest purchaser of goods, services and construction the United States Government annually awards billions of dollars in contracts for everything from office supplies to complex weapons systems. Selecting the most appropriate contract vehicle for a procurement is one of the most important decisions the contracting parties can make and is critical to program success. Selection of the most appropriate contract vehicle is determined through an allocation of cost and performance risks assumed by the vendor and the Government, as well as the financial rewards and compensation that a contractor can achieve by performing the services or delivering the end item(s) under the terms of the contract. Selection of contract type is determined through an assessment of how much oversight and flexibility the Government needs to exercise over the contractor’s performance via contract administration. Indeed, many of the same risks and considerations must be weighed by prime contractors and Government officials when acquiring services, components, supplies, or subsystems at the subcontract level.
This course will introduce attendees to the factors that parties must consider in selecting the best procurement contract type to achieve programmatic objectives and to convey an understanding of the performance, compensation characteristics and risks associated with the various procurement vehicles used by the U.S. Government and its vendors. It will help students, whether a government official, prime/general contractors, subcontractors, or suppliers, understand the practical and legal implications of different contract types and the impact that these types have on each party’s rights and responsibilities under the agreement.
- Demonstrate why it is important to select the most appropriate type of contract and how to do so
- Identify and list the differences between fixed-price and cost contracts
- Demonstrate how incentive contracts work
- Distinguish between how level of effort and indefinite delivery contracts work
- Apply the basic accounting rules that govern government contracting
- Compile what commercial items contracting and performance based contracting involve
- Demonstrate ways to effectively and efficiently manage different types of contracts
- Calculate the cost implications of specific types of contracts
- Allocate the costs to contracts as prescribed by the regulations
Continuing Education Credits
5.5 CLE/7 CPE credits may earned for this course. This course is recommended for 6 CLP credits.