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AF Contracting Officer Study Guide (unofficial)

Terms in this set (261)

SOO - Statement of Objectives - The SOO is an alternative to a performance work statement (PWS). It is a summary of key agency goals, outcomes, or both, that is incorporated into performance-based service acquisitions in order that competitors may propose their solutions, including a technical approach, performance standards, and a quality assurance surveillance plan based upon commercial business practices.

SOW- Statement of Work - The SOW should specify in clear, understandable terms the work to be done in developing or producing the goods to be delivered or services to be performed by a contractor. Preparation of an effective SOW requires both an understanding of the goods or services that are needed to satisfy a particular requirement and an ability to define what is required in specific, performance-based, quantitative terms. A SOW prepared in explicit terms will enable offerors to clearly understand the government's needs. This facilitates the preparation of responsive proposals and delivery of the required goods or services. A well written SOW also aids the Government in the conduct of the source selection and contract administration after award.

PWS - Performance Work Statement - The PWS should state requirements in general terms of what (result) is to be done, rather than how (method) it is done. The PWS gives the contractor maximum flexibility to devise the best method to accomplish the required result. The PWS must be written to ensure that all offerors compete equally. The U.S. Government must remove any features that could restrict a potential offeror. However, the PWS must also be descriptive and specific enough to protect the interests of the U.S. Government and to promote competition. The clarity and explicitness of the requirements in the PWS will invariably enhance the quality of the proposals submitted. A definitive PWS is likely to produce definitive proposals, thus reducing the time needed for proposal evaluation.
1. Below SAT.
2. Approved Agency Secretary waiver (e.g. Secretary of the Air Force).
3. List at 25.104(a).
4. Acquisitions outside US in support of combat operations.
5. Acquisitions of perishable foods by or for activities located outside the U.S. for personnel of those activities.
6. Acquisitions of food or hand or measuring tools in support of contingency operations or for which the use of other than competitive procedures has been approved on the basis of unusual and compelling urgency in accordance with FAR 6.302-2.
7. Emergency acquisitions by activities located outside the United States for personnel of those activities.
8. Acquisitions by vessels in foreign waters.
9. Acquisitions of items specifically for commissary resale.
10. Acquisitions of incidental amounts of cotton, other natural fibers, or wool incorporated in an end product, for which the estimated value of the cotton, other natural fibers, or wool—(1) Is not more than 10 percent of the total price of the end product; and (2) Does not exceed the simplified acquisition threshold.
11. Acquisitions of waste and byproducts of cotton or wool fiber for use in the production of propellants and explosives.
12. Acquisitions of foods manufactured or processed in the United States, regardless of where the foods (and any component if applicable) were grown or produced. However, in accordance with section 8118 of the DoD Appropriations Act for Fiscal Year 2005 (Pub. L. 108-287), this exception does not apply to fish, shellfish, or seafood manufactured or processed in the United States or fish, shellfish, or seafood contained in foods manufactured or processed in the United States.
13. Acquisitions of fibers and yarns that are for use in synthetic fabric or coated synthetic fabric (but not the purchase of the synthetic or coated synthetic fabric itself), if the fabric is to be used as a component of an end product that is not a textile product. Examples of textile products, made in whole or in part of fabric, include (i) Draperies, floor coverings, furnishings, and bedding (Product or Service Group (PSG) 72, Household and Commercial Furnishings and Appliances); (ii) Items made in whole or in part of fabric in PSG 83, Textile/leather/furs/apparel/findings/tents/flags, or PSG 84, Clothing, Individual Equipment and Insignia; (iii) Upholstered seats (whether for household, office, or other use); and
14. Parachutes (PSC 1670); or (2) The fibers and yarns are para-aramid fibers and continuous filament para-aramid yarns manufactured in a qualifying country.
15. Acquisitions of chemical warfare protective clothing when the acquisition furthers an agreement with a qualifying country. (See 225.003(10) and the requirement in 205.301 for synopsis within 7 days after contract award when using this exception.)
1. This special factor provides an incentive for contractors to reduce costs. To the extent that the contractor can demonstrate cost reduction efforts that benefit the pending contract, the contracting officer may increase the prenegotiation profit objective by an amount not to exceed 4 percent of total objective cost (block 20 of the DD Form 1547) to recognize these efforts (Block 29).
2. To determine if using this factor is appropriate, the contracting officer shall consider criteria, such as the following, to evaluate the benefit the contractor's cost reduction efforts will have on the pending contract. (1) The contractor's participation in Single Process Initiative improvements;
(2) Actual cost reductions achieved on prior contracts;
(3) Reduction or elimination of excess or idle facilities;
(4) The contractor's cost reduction initiatives (e.g., competition advocacy programs, technical insertion programs, obsolete parts control programs, spare parts pricing reform, value engineering, outsourcing of functions such as information technology). Metrics developed by the contractor such as fully loaded labor hours (i.e., cost per labor hour, including all direct and indirect costs) or other productivity measures may provide the basis for assessing the effectiveness of the contractor's cost reduction initiatives over time;
(5) The contractor's adoption of process improvements to reduce costs;
(6) Subcontractor cost reduction efforts;
(7) The contractor's effective incorporation of commercial items and processes; or
(8) The contractor's investment in new facilities when such investments contribute to better asset utilization or improved productivity.
PLEASE NOTE as of 29 MAY 2014 (FAC 2005-73) (Positive law Codification of Title 41) the Walsh-Healey Public Contracts Act is now known as the 'Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 statute' per 41 USC Chapter 65.
Except for the exemptions at 22.604, all contracts subject to 41 U.S.C. chapter 65, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding $15,000, shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.
When understanding the term "minimum wage" you need to understand which Act you are referencing. The Fair Labor Standards Act established the national minimum wage. A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. The FLSA applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless an exemption from coverage applies. So if I work at Walmart, I am guaranteed this minimum wage as long as I am a non-exempt employee.
The Walsh-Healey Act or Walsh-Healey Public Contracts Act, applies to covered contracts for the manufacture or furnishing of materials, supplies, articles or equipment in an amount that exceeds $15,000.
Walsh-Healey is different than the FLSA, as it sets the minimum wage equal to the prevailing wage as determined by the Secretary of Labor. Non-exempt employees who work on covered contracts are guaranteed to be paid the prevailing wage rate as determined by the Department of Labor. This prevailing wage rate is usually higher than the FLSA minimum wage, and is based on DOL's analysis of what the prevailing wages are for a given location, or can be based on a union's collective bargaining agreement. The Department of Labor website has prevailing wage rates for non-exempt employees covered under the Walsh-Healey Act (supplies), the Service Contract Act (services), and the Davis Bacon Act (construction). Contractors working on covered Federal contracts must pay at least the minimum applicable prevailing wage and benefits, covered by the Act(s), and as set forth by the DoL, for all non-exempt employees working on the contract regardless of the FLSA minimum rate
22.604-1 -- Statutory Exemptions.
Contracts for acquisition of the following supplies are exempt from the statute:
(a) Any item in those situations where the contracting officer is authorized by the express language of a statute to purchase "in the open market" generally (such as commercial items, see Part 12); or where a specific purchase is made under the conditions described in 6.302-2 in circumstances where immediate delivery is required by the public exigency.
(b) Perishables, including dairy, livestock, and nursery products.
(c) Agricultural or farm products processed for first sale by the original producers.
(d) Agricultural commodities or the products thereof purchased under contract by the Secretary of Agriculture.
22.604-2 -- Regulatory Exemptions.
(a) Contracts for the following acquisitions are fully exempt from the statutes (see 41 CFR 50-201.603):
(1) Public utility services.
(2) Supplies manufactured outside the United States, Puerto Rico, and the U.S. Virgin Islands.
(3) Purchases against the account of a defaulting contractor where the stipulations of the statute were not included in the defaulted contract.
(4) Newspapers, magazines, or periodicals, contracted for with sales agents or publisher representatives, which are to be delivered by the publishers thereof.
(b)
(1) Upon the request of the agency head, the Secretary of Labor may exempt specific contracts or classes of contracts from the inclusion or application of one or more of the Act's stipulations; provided, that the request includes a finding by the agency head stating the reasons why the conduct of Government business will be seriously impaired unless the exemption is granted.
(a) Advance payments are advances of money by the Government to a prime contractor before, in anticipation of, and for the purpose of complete performance under one or more contracts. They are expected to be liquidated from payments due to the contractor incident to performance of the contracts. Since they are not measured by performance, they differ from partial, progress, or other payments based on the performance or partial performance of a contract. Advance payments may be made to prime contractors for the purpose of making advances to subcontractors.
(b) Progress payments based on costs are made on the basis of costs incurred by the contractor as work progresses under the contract. This form of contract financing does not include --
(1) Payments based on the percentage or stage of completion accomplished;
(2) Payments for partial deliveries accepted by the Government;
(3) Partial payments for a contract termination proposal; or
(4) Performance-based payments.
(c) Loan guarantees are made by Federal Reserve banks, on behalf of designated guaranteeing agencies, to enable contractors to obtain financing from private sources under contracts for the acquisition of supplies or services for the national defense.
(d) Payments for accepted supplies and services that are only a part of the contract requirements (i.e., partial deliveries) are authorized under 41 U.S.C. chapter 45 and 10 U.S.C. 2307. In accordance with 5 CFR 1315.4(k), agencies must pay for partial delivery of supplies or partial performance of services unless specifically prohibited by the contract. Although payments for partial deliveries generally are treated as a method of payment and not as a method of contract financing, using partial delivery payments can assist contractors to participate in contracts without, or with minimal, contract financing. When appropriate, contract statements of work and pricing arrangements must permit acceptance and payment for discrete portions of the work, as soon as accepted (see 32.906(c)).
(e)
(1) Progress payments based on a percentage or stage of completion are authorized by the statutes cited in 32.101.
(2) This type of progress payment may be used as a payment method under agency procedures. Agency procedures must ensure that payments are commensurate with work accomplished, which meets the quality standards established under the contract. Furthermore, progress payments may not exceed 80 percent of the eligible costs of work accomplished on undefinitized contract actions.
(f) Performance-based payments are contract financing payments made on the basis of --
(1) Performance measured by objective, quantifiable methods;
(2) Accomplishment of defined events; or
(3) Other quantifiable measures of results.