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From page 39... ...
39 The negotiating and contracting phase establishes the basis and tone for a successful project. It is the time when expectations are established between the agency and PSP, the terms of engagement are framed, desired outcomes are outlined, and the tone is set for a successful relationship (see Figure 4-1)
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From page 40... ...
40 Procuring and Managing Professional Services for Airports desired end should be substantially the same. A good contract serves the interests of both parties in a manner that is fair and consistent with industry best practices and contains clear, fair, and reasonable terms.
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From page 41... ...
Negotiating and Contracting for Professional Services 41 Controlling the Negotiations Negotiation responsibilities should be assigned to individuals with the authority to fulfill them. An experienced contract specialist who can control the meeting should lead the negotiation team.
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From page 42... ...
42 Procuring and Managing Professional Services for Airports If the funding for the project includes an FAA AIP grant, the agency will need to have an independent third-party prepare an IFE of the project prior to beginning the negotiations. The requirement for an IFE may be waived at the discretion of the FAA if the project is below $100,000.
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From page 43... ...
Negotiating and Contracting for Professional Services 43 phase, both parties should acknowledge the restrictions and include them in the pricing of the services. Quality Assurance/Quality Control The requirements for QA/QC should be defined and the expectations of the agency communicated to the PSP.
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From page 44... ...
44 Procuring and Managing Professional Services for Airports principles of contracting that frame such activities. For most public-sector organizations, the principles established in the Federal Acquisition Regulations (FAR)
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From page 45... ...
Negotiating and Contracting for Professional Services 45 The Contracting Officer and the Project Manager: Navigating the "Constructive Tension" A core principle of governmental contracting is the distinction between the procurement and project management functions. The procurement/contracting staff seek to obtain the best value, ensure compliance with regulations and procedures, and obtain an agreement which is in the best interests of the agency.
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From page 46... ...
46 Procuring and Managing Professional Services for Airports • Termination -- convenience, cause; and • As-built drawings. Contract Restrictions The use of restrictions (e.g., salary caps, overhead caps, escalation, overtime limit, and set asides for local or DBE firms)
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From page 47... ...
Negotiating and Contracting for Professional Services 47 • Procedures for publicity releases, normally to be approved by the contracting officer prior to release; and • Build-out procedures and restrictions, if appropriate, including inspection procedures and insurance issues. Forms and Agreements The agency should provide to the PSP all required forms and standard agreements to be used during the duration of the project.
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From page 48... ...
48 Procuring and Managing Professional Services for Airports and necessary, only the contracting officer or his or her designee (agency's project manager) has the right to contractually commit the agency.
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From page 49... ...
Negotiating and Contracting for Professional Services 49 Broward County Aviation Department has developed a novel approach to preventing disputes by implementing a Dispute Avoidance Panel, which acts as an independent third party to help the Aviation Department resolve any disputes with PSPs, thereby precluding many issues from escalating to litigation. Tools and Technology Tools Tools useful in preparing for negotiation and developing contracts include Standards of Performance internal to the agency to guide the process; a pre-negotiation plan along with relevant project documents such as scope-schedule-cost; risk questionnaires; historical data on similar projects undertaken by the agency and/or PSP; contract forms, agreements, and boilerplate contract language; and plans for change management and QA/QC.
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