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SGE

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Alias Born 01/01/2001

SGE

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Re: Tinroad post# 20435

Monday, 12/09/2002 8:35:05 PM

Monday, December 09, 2002 8:35:05 PM

Post# of 93821
OT - LOI, MOU, MOA, Contracts

When contemplating business with a Gov't agency, via timely submittal of a response to an Invitation to Bid or Request for Proposal, if your bid/proposal is accepted (with Factfinding/negotiations completed in the case of a proposal), usually the Gov't will simply issue a formal contract. There is typically no intermediary stepping through MOA/MOU. Letters of intent are typically put into play when there is an urgency to the effort to be performed, and Gov't approvals or funding are lagging. The contractor, having the letter of intent in hand, will begin work using either internally available funding (if available) or may use the LOI when pursuing funding elsewhere (as "collateral"). MOU/MOA are binding as contracts and, in my experiance, put in play to resolve minor issues or establish planning. Also in my experience, they rarely involve funding - more along the lines of who's going to do what when in conjunction with an existing contract or complliance obligation. Gov't systems "prefer" a standard contract with appropriate and complete terms and conditions when there is any funding involved.

Hope this helps...

SGE (formerly Manager, Contracts Compliance and Services at a sub of Hughes Aircraft)

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