The Contract Cost and Documentation

Due to its quality-driven and patented principal goods, Gary Lujuan Inc. (GLI) has distinguished itself as a government contractor as being a cut above its rivals. As proof, several bidders have offered to work as subcontractors because one of the company's key products is patented. Therefore, it is crucial to talk about the different documents related to the different phases of federal acquisition, especially contract administration and closeouts. As a key concern in the relationship, the company's position on patent use and infringement must also be addressed.
The United States government does not want to be cited as a violator (Jonas, 2014). It argues that it is a sovereign that agrees to pay for the use of a contractor's patent. If both parties have amenable terms in this regard, the government does not expect any inducement liability because no infringement has been done. It does not mean that that GLI, as a patent owner, is not protected by laws or that it cannot sue the government should it goes overboard with terms of its patent use. Generally, if GJI's refinishing product which is covered by a United States patent, is used or reproduced for or by the U.S. without permission from, or lawful right of the company, then GLI owners can sue the government at the United States Court of Federal Claims for the retrieval of the company's appropriate payment for such use and manufacture. Federal contractors are protected against infringement liability and compensates where it legally applies. Notably, the United States Congress requires the suits to be filed exclusively at the Court of Federal Claims and with no jury trial. The compensation is usually in the form of appropriate royalties (Jonas, 2014).
Although the commercial realm still provides a better scenario for patent owners, the government has greatly improved on the way they deal with patent since the 20th century. Before, an owner's patent is not important in his bid to get the patented goods and services of the government. A patent was even considered a disadvantage. A patent owner had a right but no remedy, and these rights were automatically fought by a sovereign immunity that cannot be waived. In 1910, an immunity waiver and liability assumption by the government gave patent owners remedy and just compensation (Jonas, 2014).
Payment Type
The payment process is a vital part of contract administration. The company will be billing the Navy on a monthly basis, which is similar to the standard federal process of payment processing. From the onset, a good working relationship with the governments contracting officer, COTR and even the financial official is the key to make payment swift. These officers are the ones to review and approve the vouchers that will be sent by GLI. They are also responsible for contacting GLI should there be clarifications in the invoice. Contractors are protected by the Prompt Payment Act, so government is obliged to pay penalties for tardy payments.
To ensure smooth monthly payments, these are the best practices that GLI and government should do: the federal contract officer's technical representative (COTR) should make sure that these monthly payments are implications of progressive work according to the contract. This can be done by thorough monitoring of GLI's work, surveillance reviews and progress reports. Thus, COTR certification on these invoices will mark the receipt and accomplishment of goods and services from GLI, making the payment process even more efficient. GLI will work with government's COTR and financial officer to establish standards and timelines for review and approval of vouchers to avoid tardy payments.  
Quality Control
Strict and constant quality control and inspection procedures will be implemented not only to maintain the quality of floor but to foster cost efficiency for both parties. The standards of the American Society of Testing and Materials will be thoroughly followed to maintain the quality and strength of the flooring, as well as its resistance to external chemicals, abrasion, and slips. It will also be tested for dimensional stability and linear coefficient of thermal expansion. While quality control tests have been conducted in the manufacturing stages of the flooring, the maintenance of these floors is critical to its longevity. It is important for example to break the strength of these floor tiles by using a pressure gauge that measures force in pounds to test the strength of the floor tiles. Another procedure to qualify the resistance of the flooring to chemical substance is the use of potassium hydroxide and hydrochloric acid to check whether the floors are easily worn out or de-colored by alkaline and acids.  
GLI will work together with the COTF to identify and document problems in goods and performance during the contract administration. GLI expects constant monitoring by the COTR so that corrective actions may be implemented when problems arise. The company also expects the COTR to identify problems and the need to involve the contracting officer if the company and COTR cannot solve disagreements of issues by themselves.
Contract Administration
The administration of a contract starts when the contract is awarded to GLI. Soon after it, an orientation will be held among representatives from GLI and the U.S. Navy. While GLI will have its own representative, it is important for the company to meet with the COTR, contracting officer, and financial officer because these people are the ones the company will be dealing with on a regular basis. The orientation will also cover the rules and the flow of operations so the people know who is accountable in every aspect of contract performance. The GLI and COTR in this stage are expected to read the contract thoroughly. For changes and modifications in the contract, the COTR will need the authority of the contracting officer because the COTR does not have power to give direction of things outside the contract's scope.
The administration of contract is the fourth part in the Federal acquisition cycle which begins with market and research planning, solicitation, and negotiation and awarding (Parvey & Alston, 2010). In Federal acquisition, contract administration focuses in getting the goods and services, the required quality within the specified budget and time. The contracts provide the legal requisites, but it takes skills of the government's representatives to exercise judgment to be effective in protecting the interest of the people. The scope and limitations of the contract varies according to the contract, and as such its administration. The effectiveness of the contract administration also depends on the nature of work, commitment of people that are involved and contract type. Contract administration should begin with a clear goal and statements of work so that everyone involved will have a comprehensive idea of their part in the process. It is also important to have a clear administration plan that serves as a measure for the performance of the contractor. It also becomes a guide for the federal contracting party to pay accordingly and on time.
The COTR has a key role in managing federal contracts, and in this case the US Navy's contract with GLI. The COTR acts as the representative of the government. As such one can only become a COTR if he or she has license in Federal Certification in Contracting. He provides the technical direction, eyes and ears, and perspective of the government. However, the COTR is also bound by what is in the contract. As such a remarkable relationship with GLI representatives will help ensure a successful contract administration. The COTR also establishes systems and processes to make sure the terms and conditions of the contract are accomplished, and not just the issues and terms that have been discussed orally or in passing.   
The government's COTR is expected to monitor the contractor's delivery of products and performance. As such, the COTR keeps in mind key elements as measures to successful monitoring. These elements include: delivery of specified products according to specified quality; cost and time efficiency to avoid wastage of money and time, optimized performance that is beneficial for the contract, constraints in time and budget. Monitoring begins with a review of GLI's work plan and inspection clauses. The COTR should follow the terms of these surveillance clauses that enable the COTR visit sites and review progress reports. Effective monitoring provides the COTR with a good view of the progress, improvements and problems of the contractor. 
Closeout
The culmination of the contract period of performance is called closeout (Parvey & Alston, 2010). The closeout process happens when the contract is complete. GLI and COTR will coordinate to make sure the closeout process is smooth and progressive, which happens when services and goods have been delivered according to contract. It is important for GLI to coordinate with COTR because it will closely document the whole process which may include outstanding contractual issues. It may also have to resolve problems during the last phase of the contract administration. It will provide evaluation and expects the COTR to make his own evaluation that is vital for the closeout process.
Closeouts are important from the perspective of the government. It is the phase of the contract administration when everything in the contract has been settles from the administrative actions, dispute settlements, payments of services. Most of the complication arises from the contract and payment type where cost reimbursements are involved. It becomes an issue because cost reimbursements require auditing to determine the viability of costs that have been incurred by the contractor. The audit should reconcile the contractor's cost claim, thus sometimes causing delays in the closeouts.
Statement of Work and Subcontracting
Another key issue in this contract is the use of the US Navy's unused floor equipment since its own floor equipment is dated. Upon discussion and agreement, this remedy will be included in the contract, and will reflect on contract's worth. It is common for contractors to seek the services of other supplier in fulfilling a contract, and so using the floor equipment from other sources is not unusual as long as the terms are reflected in the contract. The contract bares the extent and scope of work that the contractor is expected to accomplish in general and specific terms. The statement of work declares the specifics of the contractors work. In this case, the statement of work features the expected performance and its corresponding flexibility. Thus, these specifications of using the US Navy's floor equipment will be specified in this part of the contract. GLI can also opt to make the US Navy and subcontractor of work instead of using other subcontractor since it is already accessible.
Nature of Federal Contracting
The nature of federal contracting is a thoroughly regulated process because it is governed by many laws and statues to prevent improper and unmerited bidding prospects. These laws are the Federal Property and Administrative Services Act of 1949, the Armed Services Procurement Act of 1947, the Competition in Contracting Act. Aside from these, the Federal Acquisition Regulation (FAR) bestows all the guidelines and policies that all federal agencies should follow in the process of acquisition of goods and services (Parvey & Alston, 2010).
The government also makes sure that the government fosters socioeconomic values through the imposition of varied obligation in the federal contracts. Firstly, federal contractors are entitled to equal opportunity in terms of sex, race, nationality, religion and color. Companies that foster positive actions like subcontracting, the provision of opportunities to veterans and people with handicap are given preference; drug-free workplace and minimum employee salaries. Small businesses are also give preferences, although it is also dependent on the kind of contract.
Being awarded this federal contract will indeed be a remarkable opportunity for GLI because it is an allied effort with the government to promote small business in the United States. (United States Congress House Committee, 2011). Thus it is important for GLI to prepare a work plan so if awarded this project it is able to work effectively with the U.S. Navy. The federal partner, on the other hand, is expected to create an effective contract administration plan that is vital in enhancing contractor performance. The success of the contract depends in thorough and clear planning not just by one party, but by both parties. It is a collaborative process that involves creating systems and services, best practices and attention to operation details that help in the monitoring, problem solving and evaluation processes. Only by having measures that are based on quality of performance, time and budget efficiency will the contract will there be a successful contract implementation
References
Jonas, M.P. (2014). The Federal Contracting Process : Shortcomings, Violators, and
Solutions. New York: Nova Science Publishers Inc
Parvey, M. & Alston, D. (2010). The Definitive Guide to Government Contracts : Everything You Need to Apply for and Win Federal and GSA Schedule Contracts. New Jersey: Career Press.
United States Congress House Committee (2011). Small Business Participation in Federal Contracting : Assessing H.R. 1670, the Federal Acquisition Reform Act of 1995: Hearing Before the Committee on Small Business, House of Representatives, One Hundred Fourth Congress, First Session. Washington, DC: Nab Press.