FINAL_DBA_Industry_Day_2016.pdf

US Army Corps of Engineers

BUILDING STRONG®

Contracting with the U.S. Government

Presented by:

Mr. Kenneth G. Baker Contract Specialist U.S. Army Corps of Engineers Transatlantic, Middle East District

22-23 March 2016

BUILDING STRONG®UNCLASSIFIED

Major Topics

Understanding the basics of Contract Surety Bonds

DBA Insurance Requirements

International Balance of Payments - Trade Agreements Act

System for Award Management (SAM)

Synchronized Pre-Deployment Operational Tracker (SPOT)

Understanding the Basics of Contract Surety Bonds

Surety Bonds Outline

What is a Surety Bond

Types of Bonds

Surety Prequalification of a Contractor

Who Requires Bonds

What is a Surety Bond?

A “Surety” means an individual or corporation legally liable for the debt, default or failure of a principal to satisfy a contractual obligation.

A “Bond” is a written instrument executed by the contractor (principal), and a second party (Surety) to fulfill the principal’s obligation to a third party (Obligee or Government), identified in the bond.

If the principal’s (contractor) obligations are not met, the bond assures payment, to the extent stipulated, of any loss sustained by the obligee.

Types of Bonds Bonds written by a Surety for construction projects are referred to as contract surety bonds.

Two main types of contract surety bonds are:

Performance Bonds and Payment Bonds.

The basic functions of these bonds are:

Financial protection if the contractor defaults on its obligation – guarantee that the contract will be performed and certain laborers and suppliers will be paid for the work and materials.

Performance Bonds Performance bond provides an obligee with a guarantee that, in the event of a contractor’s default, the surety can be called upon to meet its obligations under the bond.

Bonds differ in terms of the types of options available to the surety, and to the obligee, in the event of a default.

If the bonded contractor fails to perform its work in accordance with the plans and specifications, the owner, which has performed its contractual obligations, has a right of action against the surety to obtain completion of the contract and enforce the owner’s rights under the contract.

Payment Bonds

A payment bond provides security for payment for labor and materials incorporated into the project by certain laborers, subcontractors, and suppliers, if the principal fails to pay for labor & materials supplied for the project.

Who requires Contract Bonds

Federal Acquisition Regulations (FAR) Part 28 requires the contractor to obtain Contract Performance and

Payment bonds on all construction contracts in excess of

$150,000 surety acceptable to the officer awarding the contract.

Bottom Line

Providing Bonds is a contract requirement.

Typically required within 15 days of contract award.

A Notice to Proceed (NTP) will not be issued if Bonds are not provided.

Defense Base Act (DBA) Insurance Requirement

DBA Insurance Outline

What it is

Who is covered

Roles & Responsibilities

References

DBA, what it is Provides disability compensation and medical benefits to employees and death benefits to eligible survivors of employees under contract with US Government.

Required by Federal Law (33 USC 901 et. seq.)

The Federal Acquisition Regulation (FAR) sets out the workers' compensation insurance requirements for all overseas contracts at 52-228-3 and 52-228-4.

Who is Covered The Defense Base Act provides workers' compensation protection to employees working outside the United States.

It includes ALL employees, regardless of nationality:

U.S. citizens and residents, Host country nationals (local hires), and Third country nationals (individuals hired from another country to work in the host country)

Roles and Responsibilities

- Contracting Officer -

Ensure contractor compliance with the Federal Acquisition Regulation for Defense Base Act Insurance

FAR 52.228‐3 & 52.228-4 requires that solicitations and contracts include the requirement for Defense Base Act insurance where applicable

Contract will not be awarded without it!

- Contractor -

Obtain DBA Insurance coverage from a Department of Labor authorized insurance carrier before employees are deployed overseas The DOL table of authorized carriers and self-insured employers is available at http://www.dol.gov/owcp/dlhwc/lscarrier.html

Notify the insurance carrier of employee injury or death

Authorize medical care when requested or upon knowledge of injury

Assist the employee or survivors to file claim for benefits

Bottom Line

Providing DBA Insurance is a contract requirement.

Typically required within 15 days of contract award.

A Notice to Proceed (NTP) will not be issued if proof of payment of DBA policy is not provided.

Proof is normally an invoice marked as “PAID”.

International Balance of Payment

– Trade Agreements Act

Domestic Source Restrictions

Foreign Acquisitions, FAR Part 25 and DFARS Part 225:

Balance of Payments Program

Applies to purchases of supplies or construction materials for use outside the US. Exceptions found in DFARS 225.75

Trade Agreements Act Presidential authority to waive the Buy American Act, for eligible products from countries that have signed an international trade agreement with the U.S., (19 USC 2501;

FAR 25.4)

Balance of Payment Program Restricts the purchase of supplies that are not domestic end products, for use outside the United States, and restricts the use of construction materials that are not domestic, for performance of construction contracts outside the United States.

Exceptions to the Balance of Payments Program, especially for construction materials, are generally determined prior to solicitation and assignment of contracting responsibility.

Exceptions are found at FAR 25.3

Trade Agreements Act (TAA) Governs trade agreements negotiated between the

United States and other countries. TAA can restrict procurement of goods and services for federal contracts.

FAR 25.4 includes guidance for TAA compliance. In general, a product is “Compliant" if it is made in the United States or a "Designated Country,” including Those with a free trade agreement with the U.S.

Countries that participate in the World Trade Organization

Government Procurement Agreement

A full list of Designated/Qualifying Countries is in FAR 25.003

System for Award Management (SAM) Registration

SAM Outline

What is the System for Award Management (SAM)

Why Register

Mandatory information required

What is SAM?

SAM is the Official U.S. Government system that consolidated the capabilities of CCR/FedReg, ORCA, and EPLS

There is no fee to register for this site. Entities may register at no cost directly from the SAM website located at HTTPS:WWW.SAM.GOV

User guides and webinars are available under the HELP tab.

Why Register?

The FAR requires all prospective vendors to be registered in SAM prior to the award of a contract

Reduces the time it takes to award a contract

Federal agencies will be able to look in one place for entity pre-award information

SAM is streamlining processes, eliminating the need to enter the same data multiple times, and consolidating hosting to make the process of doing business with the government more efficient

Mandatory Information Required DUNS number from Dun & Bradstreet, and the name and address associated with that DUNS (2 days)

Your CAGE Code, if you already have one (if you don't, one will be assigned to you during registration)

Your Electronic Funds Transfer information, such as your financial institution’s ABA Routing Number and your account number, with the bank phone or fax number

You will be unable to submit your registration online unless all the mandatory information is provided

- Contractor -

Synchronized Pre-Deployment Operational Tracker (SPOT)

SPOT Outline

What is SPOT?

Access and access requirements

User Groups and Roles

Capabilities by Roles

What is SPOT?

A single source for the management, tracking and visibility of contractors accompanying U.S. forces overseas and contingency operations.

Captures movement and location information about operating forces, government civil servants, and government contractors in specified operational theaters.

Providing dynamic, ad hoc reporting by putting the power of data reporting and analysis in the hands of the analyst.

SPOT Access SPOT is restricted to authorized, registered users through the on-line registration process via the below URL ► https://spot.dmdc.mil/privacy.aspx

Click register link and follow the prompts to complete the registration. Access will be granted after SPOT’s Help Desk receives confirmation.

Individuals who are NOT citizens of the United States, United Kingdom, Canada, Australia and New Zealand are permitted to obtain a SPOT User Name and Password account

Access Requirements

SPOT access authorized by one of the following:

SPOT User ID and Password

Common Access Card (CAC)

DoD approved Public Key Infrastructure (PKI) certificate

Users Groups and Roles Three Primary User Groups (Roles) Contractor

Company Administrator Company Employee (Self Tracker)

Government Organization Government Administrator / Government Authority

Contracting Community Contracting Officer (KO)

Each role limits access to data and functionality

Capabilities by Roles Company Administrator

- Add/Maintain Contract

- Add/Maintain Persons

- Initiate Deployment

- Maintain Deployment

Information

- Initiate LOA

Government Authority

- Add/Maintain

Contract

- Add/Maintain

Persons

- Initiate Deployment

- Maintain Deployment

Information

- Initiate LOA

- Authorize LOA

(Government Authority Only)

Contracting Officer

- Add/Maintain

Contract

- Approve LOA

(Contracting Officer only)

SPOT Produced LOA

Policy

Acquire only domestic end products for use outside the

United States, and use only domestic construction material for construction to be performed outside the

United States, including end products and construction material for foreign military sales, unless –

Before Issuing the Solicitation

The Contracting Officer determines that a requirement can best be filled by a foreign end product or construction material

This includes determinations that the product is perishable and delivery from the United States would significantly impair the quality at the point of consumption;

The construction material, by its nature or as a practical matter, can best be acquired in the geographic area concerned, e.g., bulk material, such as sand, gravel, or other soil material, stone, concrete masonry units, or fired brick;