2024: The FAR, Federal Acquisition Regulations - Part 28

Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos

1. 2024 Webinar Series The FAR: Federal Acquisition Regulations Understand the rules of the federal contracting game - and play to win ! J Schaus & Associates, WASHINGTON DC – [email protected]

2. 2024 Webinar Series THE FAR ABOUT THE SERIES : We’ll cover each PART of THE FAR Typically held Wednesdays and Fridays, 12pm Complimentary Recorded Video Posted on YouTube https://www.youtube.com/@jenniferschaus/videos PPT Posted on SlideShare.net Sponsor/Advertising Options Available J Schaus & Associates, WASHINGTON DC – [email protected]

3. 2024 Webinar Series THE FAR J Schaus & Associates, WASHINGTON DC – [email protected]

4. 2024 Webinar Series THE FAR J Schaus & Associates, WASHINGTON DC – [email protected]

5. 2024 Webinar Series THE FAR ABOUT US: Services for FED GOV CONTRACTORS: Washington DC based; Professional services for established gov cons; Market Analysis to GSA Schedules; Contract Administration, etc. J Schaus & Associates, WASHINGTON DC – [email protected]

6. 2024 Webinar Series THE FAR ABOUT US: Services for those selling TO FED CONTRACTORS: Newsletter Advertising; Webinar Advertising; Social Media Advertising; Event Sponsorship; Ask for our MEDIA KIT! J Schaus & Associates, WASHINGTON DC – [email protected]

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8. TUESDAY 04/30 10am FinCEN – Corporate Transparency Act Room: 360 House-Rayburn THURSDAY 05/02 10am INTERIOR – FY25 Budget Room: SD66 - Senate- Dirkson US SENATE – & - HOUSE OF REPRESENTATIVES Scheduled Hearings

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10. TUESDAY, MAY 21 st 9-11am “GSA Schedules: The What, Why, How To - And Fine Print!” REGISTER: https://events.teams.microsoft.com/event/01d60a75-d77d-44d0-a501-9f74ff47c4ef@253e7787-672d-4071-9290-fc3db5246db7 TUESDAY, JUNE 4 th 9-11am “Federal Contractors Basic Marketing Guide” REGISTER: https://events.teams.microsoft.com/event/70f1a706-f1b3-46e1-9f88-d769e16075f3@253e7787-672d-4071-9290-fc3db5246db7 LIVE WEB BASED TRAINING

11. VA APEX ACCELERATOR - 2024 TRAINING EVENTS THURSDAY, JUNE 13 th 11.30am-1.30pm GSA Schedules: Requirements, Proposal Prep and – What’s Next REGISTER: https://virginiaptac.ecenterdirect.com/events/4448 TUESDAY, AUGUST 6 th 1pm-3pm Marketing 101 For Federal Contractors: Attract The Primes, Attract The Government REGISTER: https://virginiaptac.ecenterdirect.com/events/4452 TUESDAY, NOVEMBER 12 th 9.30am-11.30am GSA Schedules: Requirements, Proposal Prep and – What’s Next REGISTER: https://virginiaptac.ecenterdirect.com/events/4456

12. 2024 Webinar Series - THE FAR THANK YOU TO OUR WEBINAR SPONSORS J Schaus & Associates, WASHINGTON DC – [email protected]

13. The FAR – Federal Acquisition Regulations - WEBINAR SERIES 2024 JSchaus & Associates – Washington DC – [email protected]

14. Full training calendar: virginiaptac.org & useful links Register for free counseling: https://virginiaptac.org/services/counseling/ Your “one stop” shop for Government Contracting assistance Reach us at [email protected] or 703-277-7750 This APEX Accelerator is funded in part through a cooperative agreement with the Department of Defense. Next Steps?

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17. 2024 Webinar Series THE FAR THE FAR – PART 28 J Schaus & Associates, WASHINGTON DC – [email protected]

18. 2024 Webinar Series THE FAR FAR PART #28: Bonds & Insurance SPEAKER: Timothy Laughlin FIRM: Schoonover & Moriarty EMAIL: [email protected] J Schaus & Associates, WASHINGTON DC – [email protected]

19. 2024 Webinar Series - THE FAR What is the Subject of FAR PART 28? Describes the requirements to obtain financial protection against losses in sealed bid or negotiated contracts Includes Bid guarantees Bonds Alternative payment protections Security for bonds Insurance J Schaus & Associates, WASHINGTON DC – [email protected]

20. 2024 Webinar Series - THE FAR Bid guarantees A form of security that provides that the bidder . . . Will not withdraw the bid during the period for acceptance Will execute the contract, furnish any required bonds, including coinsurance or reinsurance requirements, within the time specified Required when a bond is required Can be waived if not in the government’s best interests (overse as, emergency, and sole-source contracts) J Schaus & Associates, WASHINGTON DC – [email protected]

21. 2024 Webinar Series - THE FAR Amount of bid guarantees The contracting officer is the one to determine the amount of the bid guarantee It has to be “adequate to protect the Government from loss should the successful bidder fail to execute further contractual documents and bonds as required.” Must be at least 20 percent of the bid price BUT no more than $3 million J Schaus & Associates, WASHINGTON DC – [email protected]

22. 2024 Webinar Series - THE FAR Noncompliance with bid guarantee requirements Sealed bid: Failure to provide a bid guarantee = rejection Negotiation: Failure requires rejection of initial proposal as unacceptable BUT . . . there are some notable exceptions, including Only one offer is received The bid guarantee is late, and late receipt is waived An otherwise acceptable bid bond is undated or wrongly dated, or was not signed (in the right circumstances), or fails to list the United States as the obligee but is correct otherwise J Schaus & Associates, WASHINGTON DC – [email protected]

23. 2024 Webinar Series - THE FAR Bonds A bond is a written instrument between the bidder and surety that assures fulfillment of the obligations to the government . If the obligations are not met, the bond assures payment Types of bonds (alphabetical order) Advance payment bond Annual bid bond – in lieu of separate bonds to secure all bids Annual performance bond – in lieu of separate bonds to ensure performance Patent infringement bond Payment bond – secures payment to all person’s supplying labor or material (basically subcontractors) Performance bond – ensures the contractor will perform J Schaus & Associates, WASHINGTON DC – [email protected]

24. 2024 Webinar Series - THE FAR Performance and payment bonds - construction Required for any contract exceeding $150K May be waived if Much of the work is performed in a foreign country and a bond there is impractical Authorized by other statute or law J Schaus & Associates, WASHINGTON DC – [email protected]

25. 2024 Webinar Series - THE FAR Performance and payment bonds - construction For contracts more than $35k but less than $150k Alternative payment protection CO must choose two of the following Payment bond Irrevocable letter of credit Tripartite escrow agreement Certificates of deposit Security deposit J Schaus & Associates, WASHINGTON DC – [email protected]

26. 2024 Webinar Series - THE FAR Performance and payment bonds - construction Amount required > $150K Performance bond – 100 percent of the contract price plus any increases UNLESS the CO determines a lesser amount is adequate Payment bond – 100 percent of the contract price plus any increases UNLESS the CO makes a written determination that amount is impractical Must be no less than the performance bond > $35K Payment bond and alternative payment protection – 100 percent of the contract price plus any increases UNLESS the CO determines a lesser amount is adequate J Schaus & Associates, WASHINGTON DC – [email protected]

27. 2024 Webinar Series - THE FAR Performance and payment bonds – nonconstruction Performance bond – may be required for contracts greater than simplified acquisition threshold if necessary to protect the government’s interest Examples: Government property or funds are furnished Post novation when the government wants assurances that successor is financially capable Substantial progress payments are made before delivery The contract is for dismantling or demo Does not take the place of a responsibility determination Payment bond – only required when a performance bond is required AND the use of a payment bond is also in the government’s interest J Schaus & Associates, WASHINGTON DC – [email protected]

28. 2024 Webinar Series - THE FAR Other types of bonds Annual performance bonds - when the contractor furnishes one bond fo r the year that applies to several contracts O nly for nonconstruction contracts Penal sum is equal to the total amount of all covered contracts Advance payment bonds – for contracts with an advance payment provision but no performance bond Patent infringement bonds – only if a performance bond is not furnished and the financial responsibility of the contractor is unknown or in doubt J Schaus & Associates, WASHINGTON DC – [email protected]

29. 2024 Webinar Series - THE FAR Consent of surety When the contract is modified, the contractor must get the consent of surety if An additional bond is ob tained from a different surety No additional bond is required and the modification is beyond the scope of the original contract or changes the price by more than 25 percent or $50k A novation J Schaus & Associates, WASHINGTON DC – [email protected]

30. 2024 Webinar Series - THE FAR Security for bonds Thre e options Approved corporate surety Individual surety who pledges assets Contractor pledging assets directly – (rare) J Schaus & Associates, WASHINGTON DC – [email protected]

31. 2024 Webinar Series - THE FAR Corporate sureties The Treasury keeps a list of approved corporate sureties Penal amount can’t be more than surety’s underwriting limit unless Excess amount is coinsured or reinsured The coinsurance or reinsurance does not exceed that entity’s underwriting limit J Schaus & Associates, WASHINGTON DC – [email protected]

32. 2024 Webinar Series - THE FAR Individual sureties Must pledge acceptable collateral – Treasury has a list Net adjusted value of collateral must exceed the penal amount of the bond Can submit up to three individual sureties per bond Treasury will assess eligibility and valuation Can later request substitution of an asset J Schaus & Associates, WASHINGTON DC – [email protected]

33. 2024 Webinar Series - THE FAR Exclusion of individual sureties Exclusion is listed in SAM Causes: Failure to fulfill obligations of a bond Failure to disclose bond obligations Misrepresentation of the value of assets or liabilities False or misleading statements Any other cause of serious or compelling nature J Schaus & Associates, WASHINGTON DC – [email protected]

34. 2024 Webinar Series - THE FAR Contractor assets Any person can provide security in the form of US bonds or notes Certified/cashier’s checks, bank drafts, money orders, or cash Irrevocable letter of credit J Schaus & Associates, WASHINGTON DC – [email protected]

35. 2024 Webinar Series - THE FAR Insurance Insurance is required when The contractor is subject to Cost Accounting Standard (CAS) 416 (accounting for insurance costs) When the contractor is required by law to provide insurance (e.g. workers’ compensation) When the commingling of property, type of operation, circumstances of ownership, or condition of the contract make it necessary for the protection of the Government When the award is for healthcare services must maintain medical liability insurance J Schaus & Associates, WASHINGTON DC – [email protected]

36. 2024 Webinar Series - THE FAR Fixed-price contracts Government is normally hands-off when the contract is fixed price But may require insurance when The contractor is principally engaged in government work Government property is involved The work is at a government installation The government assumes risks that would normally be covered by commercial insurance J Schaus & Associates, WASHINGTON DC – [email protected]

37. 2024 Webinar Series - THE FAR Liability coverage Workers’ Compensation – at least $100,000 General Bodily injury – at least $500,000 per occurrence Property damage – only required in special circumstances Automobile – at least $200,000 per person and $500,000 per occurrence for bodily injury and $20,000 per occurrence for property damage Aircraft public and passenger – at least $200,000 per person and $500,000 per occurrence for bodily injury, other than passenger liability, and $200,000 per occurrence for property damage Vessel – collision, protection, and indemnity amounts determined by the contracting officer J Schaus & Associates, WASHINGTON DC – [email protected]

38. 2024 Webinar Series - THE FAR Self-insurance Requires a written proposal and contracting officer approval The contractor must demonstrate the ability to sustain the potential loss involved Factors: The soundness of the contractor’s financial condition, including available lines of credit The geographic dispersion of assets, so that the potential of a single loss depleting all the assets is unlikely The history of previous losses The type and magnitude of risk Compliance with Federal and State laws and regulations. J Schaus & Associates, WASHINGTON DC – [email protected]

39. 2024 Webinar Series THE FAR THANK YOU FOR ATTENDING! FAR PART #28: Bonds & Insurance SPEAKER: Timothy Laughlin FIRM: Schoonover & Moriarty EMAIL: [email protected] J Schaus & Associates, WASHINGTON DC – [email protected]

40. 2024 Webinar Series THE FAR Please subscribe to our YouTube Channel for Gov Con Content Uploads including THESE WEBINARS! https://www.youtube.com/@jenniferschaus/videos J Schaus & Associates, WASHINGTON DC – [email protected]

41. 2024 Webinar Series The FAR: Federal Acquisition Regulations THANK YOU FOR JOINING US! J Schaus & Associates, WASHINGTON DC – [email protected]