Provide a 2 pages analysis while answering the following question: Commercial versus Non-Commercial Services. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Commercial versus Non-Commercial Services
As stated by Part 2 of the Federal Acquisition Regulation (FAR), a commercial service is utilized by the overall population or nongovernmental elements for non-governmental purposes. Noncommercial services, on the other hand, are defined as those services that serve no public or non-governmental function and are not available on the open market, in essence, those items that do not fall under Part 2 of the Federal Acquisition Regulation (Federal Acquisition Regulation, n.d).
.Describe the DOD (department of defense) contracting officer’s responsibilities with regard to the use of non-commercial service
The Department of Defence is a perfect example of commercial services that have increased implementation, development and competition between firms tendering for projects. The contracting officer acts as the main authority, business guide and primary executor for the government. The officer is also entitled to identify the need, the primary source choice, and dealing with the resultant contract and business game plan. In addition, he investigates companies in the market to distinguish general business practices. For example, business terms and conditions, contract type and the utilization of incentives are perfect examples of commercial services offered to the society (Federal Acquisition Regulation, n.d.).
.Discuss how the terms and conditions for the purchase of non-commercial supplies or services differ? For example, the use of warranties, how terminations are executed
On the other hand, terms and conditions of non-commercial contract and services vary in a number of ways. They are under constant monitoring through a contract screening framework of past execution. This involves the formal Contractor Performance Assessment Reporting System (CPARS), and Construction Contractor Appraisal Support System (CCASS). These contracts contain a change clause that allows the contracting officer to make independent changes to specific areas within the broad-spectrum scope of the contract. There are slight distinctions in the particular change clauses, depending on the item being purchased such as supplies, services, or construction. The distinctions also affect the type of contract awarded such as fixed price or cost reimbursable, as described in FAR Subpart 43.2. Any alterations must be within the broad extent of the contract. In addition, the change order must be in writing, and only the contracting officer may issue a change order. Quantities may not be independently altered by use of the changes clause “A decrease in quantity can be affected by a partial termination for convenience.” These items may, however, be returned at the contractor’s expense.” The termination of contracts exists basically in two options. T4C and termination for default (T4D) or cause. After deciding which method to use, the CCO should be prepared to negotiate an amicable settlement (Federal Acquisition Regulation, n.d.).
Termination means a breach of contract, and adequate compensation is appropriate. The CCO must follow local procedures for reporting and reviewing any termination actions. The notice of termination should be in writing and must specify the termination of the contract, extent of the termination, any special directives, and steps that the contractor should take to reduce the brunt on workers if the termination, in concert with all other pending terminations, will result in a major cutback in the contractor employees (Defense Standardization Program).
.Discuss how the GAO (government accountability office) has ruled on challenges to the contracting officer’s determination of a commercial purchase requirement
The GAO review indicates that contracting officers have always accepted the offered price. They found that the price analysis performed by contracting officer was limited to ensure that prices were rational. Most officers proposed that when the existing price was similar to the list price, it was taken as a reasonable price. In many cases, they did not use relevant historical pricing information. Additionally, they did not apply the discretionary solicitation clause that necessitates applicants to present the information instead of certified cost and pricing data. Also, a number of contracting officers paid charges that involved unnecessary services. That is why many officers were not documenting how they determined that the prior prices were unreliable in evaluating the current quoted prices. The contracting officers have reduced negotiation leverage when acquiring commercial items from a single-source environment (Defense Standardization Program, n.d.).
Federal Acquisition Regulation (n.d). Federal Acquisition Regulation. Retrieved on 29th March 2014 from http://www.acquisition.gov/far/current/pdf/FAR.pdf, 2014.
Defense Standardization Program. (n.d). Defense Standardization (DSP) Portal.Dsp. Retrieved on 29th Mar 2014 from http://www.dsp.dla.mil/APP_UIL/displayPage.aspx?action=content&accounttype=displayHTML&contentid=21,2014.
ACQuipedia. (n.d). Contract Modifications and Changes. Retrieved on 29th Mar 2014 from https://dap.dau.mil/acquipedia/Pages/ArticleDetails.aspx?aid=ad7f10df-7780-418c-a6fb-709c1014532c,2014.