Federal Source Selection James E. Krause, Attorney 219 N. Newnan Street Fourth Floor, Jacksonville, Florida 32202 Dial 904.353.5533 Email [email protected].

Federal Source Federal Source SelectionSelection

James E. Krause, Attorney219 N. Newnan Street Fourth Floor, Jacksonville, Florida 32202

Dial 904.353.5533 Email [email protected]

Selecting the Winning ContractorBasics of Federal Source Selection

January 19, 2010

Overview - Public ContractsOverview - Public Contracts Public contracts derive from statutes, Public contracts derive from statutes,

regulations, ordinances, etc.regulations, ordinances, etc. It is common for Public sector contracts to It is common for Public sector contracts to

require competitive procurement. require competitive procurement. Contracting officers for Public Agencies Contracting officers for Public Agencies

have limited authority, and cannot commit have limited authority, and cannot commit the Agency or Government beyond their the Agency or Government beyond their authority. authority.

Public contracts are standardized – there is Public contracts are standardized – there is little room for bargaining.little room for bargaining.

Overview – Public OwnersOverview – Public Owners

Public Owners were not typically Public Owners were not typically allowed to use negotiated or sole allowed to use negotiated or sole source contract acquisition. source contract acquisition.

Public Owners were looking for a Public Owners were looking for a method to increase flexibility in their method to increase flexibility in their acquisition.acquisition.

““Best Value” procurement is the new Best Value” procurement is the new tool for Public Agencies. (Also referred tool for Public Agencies. (Also referred to as “Best Interest” in Florida)to as “Best Interest” in Florida)

Overview - OwnersOverview - Owners

Public (Government) contracts differ from Public (Government) contracts differ from nonpublic contracts in that private sector nonpublic contracts in that private sector contracts have few constraints, while contracts have few constraints, while public sector contracts involve extensive public sector contracts involve extensive regulations imposed by the government. regulations imposed by the government.

Public OwnersPublic Owners

AuthorityAuthority Contracting officials have limited authorityContracting officials have limited authority Contractor must be aware of that authority Contractor must be aware of that authority

or risk not getting paid for services and or risk not getting paid for services and materials provided outside that authoritymaterials provided outside that authority

Contractor is responsible for determining Contractor is responsible for determining contracting officers authority. contracting officers authority.

Sovereign ImmunitySovereign Immunity

Project AcquisitionProject Acquisition

SOURCE SELECTION SOURCE SELECTION HOW THE OWNER CHOOSES THE HOW THE OWNER CHOOSES THE

ENGINEER/CONTRACTORENGINEER/CONTRACTOR

Vs.Vs.

PROJECT DELIVERY SYSTEMPROJECT DELIVERY SYSTEM HOW THE OWNER CONTRACTS WITH THE HOW THE OWNER CONTRACTS WITH THE

ENGINEER/CONTRACTORENGINEER/CONTRACTOR

Project AcquisitionProject Acquisition

1.1. Invitation for Bid (IFB, ITB)Invitation for Bid (IFB, ITB)Low, Sealed Bid on a particular projectLow, Sealed Bid on a particular project

2.2. Request for Proposals (RFP)Request for Proposals (RFP)Selection based on solutions presented by the Proposer regarding Selection based on solutions presented by the Proposer regarding

a particular projecta particular project

3.3. Request for Qualifications (RFQ) (QBS)Request for Qualifications (RFQ) (QBS)Selection by Engineer/Contractor general capabilities rather than Selection by Engineer/Contractor general capabilities rather than

performance on a particular projectperformance on a particular project

4.4. Sole Source SelectionSole Source SelectionSelection of contractor for project without competitive negotiationsSelection of contractor for project without competitive negotiations

5.5. Reverse AuctionsReverse Auctions6.6. Best Value Source SelectionBest Value Source Selection

Low (Sealed) Competitive BidLow (Sealed) Competitive Bid(IFB or ITB)(IFB or ITB)

Plans and Specifications produced by Plans and Specifications produced by Owner and submitted to industry.Owner and submitted to industry.

Industry estimates costs and submits Industry estimates costs and submits bid to Owner.bid to Owner.

Owner determines winner based on low Owner determines winner based on low bid and responsiveness. bid and responsiveness.

Characterized by the Invitation for Bid Characterized by the Invitation for Bid (IFB or ITB)(IFB or ITB)

Low (Sealed) Competitive BidLow (Sealed) Competitive Bid(IFB or ITB)(IFB or ITB)

The GoodThe Good Straightforward, easily understood process. The Straightforward, easily understood process. The

Industry standard for many years. Industry standard for many years. The BadThe Bad

Takes a long time for the Owner to prepare plans Takes a long time for the Owner to prepare plans and specifications. and specifications.

Many Owners don’t want to produce plans and Many Owners don’t want to produce plans and specifications.specifications.

Encourages antagonistic relationships between the Encourages antagonistic relationships between the Contractor, Owner, and Designer when there are Contractor, Owner, and Designer when there are conflicts or errors in the plans and specifications. conflicts or errors in the plans and specifications.

Want to see more?Want to see more?

James E. Krause, AttorneyJames E. Krause, Attorney

219 N. Newnan Street, Fourth Floor 219 N. Newnan Street, Fourth Floor Jacksonville, Florida 32202Jacksonville, Florida 32202Telephone 904.353.5533Telephone 904.353.5533

Cell 904.553.0336Cell 904.553.0336Email [email protected] [email protected]

Contact the Law Office of Jim Krause today to Contact the Law Office of Jim Krause today to request the complete 59 slide presentation.request the complete 59 slide presentation.

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