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AF Contracting Officer Study Guide (unofficial)
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AF Contracting Officer warrant board study questions. Material Sources: Todd Bales, Jamie Brunner, Dana King, and jrkdsmith
Terms in this set (261)
Source Selection
FAR 1.602-2; 3.104-4; 15.207
(2016-05-31)
Q: What are the CO's responsibilities in source selection?
1. Procedures to safeguard source selection information.
2. Approve access to/release source selection information.
3. Maintain SS evaluation records.
Source Selection
2016 DoD Source Selection Manual, 1.4.1.2
(2016-05-31)
Q: What are the SSA responsibilities?
1. Proper and efficient conduct of SS process.
2. Appoint respective chairpersons.
3. Establish SS team and ensure their knowledge of policy/procedure.
4. Ensure pace is event and not schedule driven (realistic SS schedule).
Financing
FAR 32.106
(2016-05-31)
Q: Name the different types of government financing in order of their preference
1. Private financing (most preferred).
2. Performance based payments.
3. Customary progress payments.
4. Guaranteed loans.
5. Unusual progress payments.
6. Advance payments (least preferred).
Acquisition Strategy Panel (ASP)
AFFARS 5307.104-92; AFICA MP 5307.104-92
(2016-05-31)
Q: Who prepares the ASP minutes, when are they prepared and who approves them?
AIR FORCE ONLY
Program manager, CO or Commodity Council Director prepares following the conclusion of the ASP briefing, and approved by the ASP chairperson.
Cost Analysis
FAR 15.404-1 (c)
(2016-05-31)
Q: What is cost analysis?
Review and evaluation of separate elements and profit of contractor's proposal. The application of judgment to determine how well proposed costs represent what the cost of the contract should be assuming reasonable economy and efficiency. Techniques include verification of cost or pricing data and evaluation of cost elements; projection of offeror's cost trends based on current/historical cost/pricing data; audit and negotiated indirect cost, labor and COM rates.
IDIQ
FAR 16.504 (a)
(2016-05-31)
Q: How does the PCO compute the minimum and maximum quantity on an IDIQ contract?
1. Minimum-Should be more than a nominal quantity but should not exceed amount the Government is fairly certain to order.
2. Maximum - A reasonable max should be established by conducting market research trends on recent contracts for similar supply/svcs, survey of potential users, other rational basis.
Estimating Systems
FAR 15.407-5
(2016-05-31)
Q: Define estimating system and cost reimbursement.
Estimating system is contractor's policies/procedures/practices for generating estimates. Includes organizational structure, internal controls, and managerial reviews, work flow, est methods, techniques, accumulation of historical costs and other analysis. Cost reimbursement - Contractor's ability to accurately and reliable estimate costs could lead to cost overruns and increased risk for the Government.
Defective Pricing
FAR 15.407-1
(2016-05-31)
Q: What are six conditions which must exist to have defective pricing?
1. Information fits the definition of cost and pricing data.
2. Accurate data was available to the contractor before the agreement on price.
3. Data was not accurate, current, complete as of date of agreement.
4. Data was not submitted to CO.
5. Government must have relied on the data.
6. An increase in cost as a result of Government reliance on the data.
Contract Elements
Common Law
(2016-05-31)
Q: What are the essential elements of a contract?
1. Offer.
2. Acceptance.
3. Consideration.
4. Lawful purpose.
5. Competency of parties.
6. Certainty of terms.
Economy Act
31 U.S.C. 1535; FAR 17.502-2
(2016-05-31)
Q: Describe the Economy Act
Allows agencies to procure goods/services from other agencies at cost, a D&F is required. Intra-agency, activity within the Dod, you may not need D&F, Inter-agency, activity outside DoD like DOE, D&F signed by General or SES. Economy act does not apply to FSS acquisitions under FAR 8 or GSA, FPI, and other required sources of supplies.
Contract Award
FAR 32.703-2
(2016-05-31)
Q: You have just completed a long and complex negotiation for a large IDIQ contract and are ready to make award. In terms of funding, what must you ensure before awarding this contract?
Sufficient funds are available to be obligated for minimum order quantity.
Funds
DoD Financial Management Regulation, Volume 3, Chapter 10, Appendix C
(2016-05-31)
Q: When speaking of funds, what does "Current", "Expired", and "Cancelled" funds mean?
1. Current - funds available for obligation.
2. Expired - funds available only for recording, adjusting and liquidating obligations properly chargeable to the appropriation. Funding in this phase remains available for 5 years from the year the appropriation expires, regardless of the appropriation type.
3. Cancelled - funds not available for any purpose.
Finance
US Code, Title 31, Section 1502(a); DoD Financial Management Regulation (FMR) 7000.14-R, Volume 11A, Paragraph 020510
(2016-05-31)
Q: What is the Bona Fide Need rule?
Appropriated funds will be obligated for effort that is a current, valid (legitimate) need/requirement that arises during the FY that the funding was appropriated. (i.e. current dollars for current needs). Current needs typically defined by when agency will use item or receive service. Can have lead-time exceptions.
Advocate for Competition
FAR 6.5
(2016-05-31)
Q: What is the Advocate for Competition?
An employee of a contracting activity assigned the task of challenging barriers to competition/promoting full and open competition. 41 USC 418 requires each executive agency/contracting activity to appoint a competition advocate. Usually hig-rank employee reporting directly to the heads of their Agency or Activity.
Cost Reasonableness and Cost Realism
FAR 15.404
(2016-05-31)
Q: What is the difference between cost realism and cost reasonableness?
1. Cost realism - is the cost too low for the contractor to be successful with the contract action. The costs must be realistic for the work to be performed. Costs must reflect a clear understanding of the requirements and are consistent with the various elements of the offeror's technical proposal.
2. Cost reasonableness - Can the price be determined to be fair & reasonable through one of the methods as outlined in FAR. Price and/or cost analysis is used to determine reasonableness.
Cost Reasonableness and Cost Realism
FAR 15.404
(2016-05-31)
Q: What is realism?
The analysis of reviewing/evaluating specific elements to determine if proposed cost is: 1.realistic for work to be performed, 2. reflects a clear understanding of the effort, and 3. is consistent with methods of performance /materials.
Advocate for Competition
FAR 6.502
(2016-05-31)
Q: What are the duties of the Advocate for Competition?
1. Promote full and open competition and challenging barriers to it.
2. Reviewing contracting operations to identify opportunities/actions necessary to achieve f&o competition and the conditions that unnecessarily restrict it.
3. Preparing annual reports.
4. Recommending goals and plans for increasing competition.
5. Recommending a system of personal and organizational accountability - one that motivates individuals to promote competition and recognizes those who do.
6. Train workforce on competitive acquisitions.
Justification & Approval (J&A)
AFFARS 6.304(a); AFICA MP 6.304(a)
(2016-05-31)
Q: What are the J&A approval thresholds within the Air Force?
AIR FORCE ONLY
Dollar Thresholds............Operational Contracting
<=$700K..................................Contracting Officer
>$700K<=$13.5M..................Competition Advocate
>$13.5M<=$93M........PEO/Head of Procuring Activity
>$93M......................Senior Procurement Executive
Clearance Approve Thresholds
AFICA Appendix A
(2016-05-31)
Q: What are the clearance approval thresholds?
AIR FORCE ONLY - 771st ESS
Dollar Thresholds............Operational Contracting
<$5M............................................................PCO
$5 - $50M..................................................COCO
Source Selection
DoD Source Selection Manual; AFFARS MP 5315
(2016-05-31)
Q: What are the purpose of evaluation factors and the AF mandated factors?
AIR FORCE ONLY
The purpose is to describe how to meet requirements, are discriminators, what constitutes acceptability. Factors: Mission capability, Past Performance, Cost/Price.
Changes Clause
FAR 52.243-1
(2016-05-31)
Q: What type of changes are covered with the changes clause?
1. Drawings, designs, or specifications
2. Method of shipment or packing
3. Place of delivery
Ratifications
FAR 1.602
(2016-05-31)
Q: What is a ratification under FAR 1.602?
The act of approving an unauthorized commitment. Ratification must: Svc/Supply provided or Gov't benefitted, ratification official has authority, resulting contract would have been appropriate anyway, price fair and reasonable, CO/Legal recommend payment, funds are/were available, action complies with agency procedures.
Contractor Responsibility
FAR 9.104-1
(2016-05-31)
Q: What are the elements to be looked at when determining if the contractor is responsible?
1. They have adequate financing.
2. Can comply with delivery requirements.
3. They have satisfactory past performance.
4. They have a satisfactory record of integrity/ethics.
5. They have the technical capability.
6. They have adequate equipment/facilities.
7. They are otherwise eligible by law/regulation
Performance Based Payments
FAR 32.10
(2016-05-31)
Q: What are the pro's and con's of performance based payments?
Pros - Can be made for up to 90% of contract of CLIN price. Fully recoverable like
progress payments
, even if contractor default.
Cons - If contractor doesn't meet goals, payments delayed, negative effect on cash flow.
Performance Based Payments
FAR 32.10
(2016-05-31)
Q: What is the intent of including performance based payments?
Improve contractor's cash flow. Especially for contractors who don't have approved accounting system that are (needed)(required) for progress payments (based on cost).
Certified Cost or Pricing Data
FAR 15.402
(2016-05-31)
Q: What is the intent of obtaining certified cost or pricing data?
1. Ensure negotiations conducted on a level playing field.
2. Ensure Government has current/complete/accurate data.
3. Method of reducing negotiated amount based on impact of contractor providing data not current/accurate/complete.
Technical Incentive
16.402-2
(2016-05-31)
Q: What is a tech incentive? What must the contractor provide (factors to consider) if proposing use of tech incentive.
Factors for Tech Factor
1. Acquisitions that include development, production or application on innovative new technologies. Does not apply to studies, analyses, demonstrations.
2. Technology being applied or developed by contractor; technology complexity; maturity; performance specs/tolerances; delivery schedule, extent of warranty/guarantee.
Military Equipment
Chief Financial Officer's Act of 1990; DoDI 5000.64 (19 May 2011)
(2016-05-31)
Q: What is MEV?
Military Equipment Valuation
1. Method to capture values/cost for military equipment.
2. Apply categories to equip expenditures and financial statements.
3. DoD goal of improved financial reporting for military equipment.
To implement Federal accounting standards requiring all military equipment with unit cost > threshold be treated as capitalized assets. Provides sound financial stewardship of Congressional funding. CLINs now established to distinguish between capitalized vs. expenses items. PM, FM and CO all have roles in the process. Auditable accountability/visibility of Government property. Methodology to valude government property. ME has useful life > 2 years, not for resale, used in performance of military missions, /$100K cost.
Military Equipment
Chief Financial Officer's Act of 1990; DoDI 5000.64 (19 May 2011)
(2016-05-31)
Q: What is the definition of Military Equipment?
1. Weapon system used by armed forces to carry out battlefield mission
2. expected useful life of 2+ years
3. Not intended for sale in ordinary course of business
4. Doesn't lose identity or become part of another article.
5. Available for the use of reporting entity for intended purpose.
6. Value >$100K will be MIL equipment or general equipment (i.e. test equipment)
Funding
FAR 32.702
(2016-05-27)
Q: What are the limitations on use of appropriated funds?
1. Can't expend/obligate in excess or advance of appropriation, apportionment or reapportionment.
2. Can't expend/obligate in advance of appropriation
3. Don't accept voluntary/personal services other than authorized law.
4. A violation of Purpose / Time / Amount may be a potential anti-deficiency violation.
Funding
31 U.S.C. § 1301(a); Mr. Stephen M. Bodolay, 1996 WL 112423, at 1, Comp. Gen. No. B-240365.2 (March 14, 1996); Hon. Bill Alexander, 63 Comp. Gen. 422, 427-428 (1984); Secretary of Interior, 34 Comp. Gen. 195, 196 (1954)
(2016-05-31)
Q: What is the three-part test for purpose?
1. Must be for a particular statutory purpose, or necessary and incident to the proper execution of the general purpose of the appropriation.
2. Must not be prohibited by law.
3. Must not be otherwise provided for within scope of another appropriation.
Award Fee
Fiscal Law Deskbook, 2014, Chapter 5
(2016-05-31)
Q: What are the award fee funding requirements?
1. Award fee requirements must be budgeted in/funded with same appropriation/FY as effort.
2. Must be set-aside as contingent liability - don't rely on promise to pay back in future using different FY funds.
Market Research
FAR 10
(2016-05-31)
Q: A program manager has a new effort. As a business advisor (Contracting Officer), what information is needed to determine how you will acquire and where and how will you obtain the information?
1. Is effort adequately and correctly described?
2. Is the effort RDT&E, production, supply or service?
3. Government cost estimate and funds availability, typ, amount.
4. Market research; sources sought, research, industry day
5. Any existing contracts available (i.e. either within your Agency or in other Government departments).
Unsolicited Proposals
FAR 15.6
(2016-05-31)
Q: What five elements are found in a valid unsolicited proposal ?
1. Be innovative and unique.
2. Independently originated/developed by offeror.
3. Prepared without Government supervision, endorsement, direction, or involvement.
4. Include sufficient detail to permit determination of benefit.
5. Not be an advanced proposal for a known requirement (or previous requirement).
Defective Pricing
FAR 15.407
(2016-05-31)
Q: What three conditions must exist to have defective pricing?
1. Data was not current, accurate or complete at the time of the price agreement.
2. The Government relied on the data. (note: the PNM shall say this).
3. A cost increase was the result on the dependence on defective pricing.
Foreign Military Sales Contingent Fees
DFARS 225.7303-4; DFARS 225.7306
(2016-05-26)
Q: What are FMS contingent fees and offsets and tell where to check to see if these costs are allowable?
Contingent fees, sometimes known as commissions are paid to a bona fide employee or bona fide established commercial or selling agency maintained by the prospective contractor for the purpose of securing business. DoD 5105.38-M, defines a list of countries where contingent fees are unallowable unless the contractor identifies the payments and the foreign customer approves the payments in writing prior to contract award. If a country is listed, you should read the LOA to determine if the foreign customer has an agreement in writing. A $50K ceiling exists for contingent fees, unless the contractor identifies the payment and the foreign customer approves the payment in writing before contract award. In accordance with the Presidential policy statement of April 16, 1990, DoD does not encourage, enter into, or commit U.S. firms to FMS offset arrangements. The decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, resides with the companies involved. (Also see 225.7303-2(a)(3).)
Integrated Product Team Pricing
FAR
(2016-05-31)
Q: There is a new sole source effort. It's a modification estimated at $7M for systems engineering support. The PM asks if IPT pricing can be used as he did last year. What would you tell him about IPT pricing? Please explain the steps, including reviews/clearances, that you would consider to build your timeline?
AIR FORCE ONLY
1. IPT pricing is no longer a pricing method available, traditional pricing will be the path forward. IPT pricing tool rescinded IAW 27 Apr 09 AFMC Policy letter 2009-PK-003
2. Steps to award include proposal, necessary audits or pricing activity to build objective, policy review, business clearance ($7M - Group PK), negotiations, legal, policy review, contract clearance, settlement, contractor certification (CorP), award.
Claims
FAR 33.2
(2016-05-31)
Q: What is a claim?
1. Written demand/assertion seeking money and/or adjustment of terms.
2. If over $100K, claim must be certified. Claim may be executed by any person authorized to bind the contractor with respect to the claim.
3. Must be submitted within 6 years after the accrual of a claim.
4. The Government shall pay interest on a contractor's claim on the amount found due and unpaid from the date that the CO receives the claim or payment was otherwise would be due.
Disputes
FAR 33.202
(2016-05-31)
Q: What is a dispute?
An issue in controversy that results in a contractor claim.
-Request for Equitable Adjustment initiates dialog
-Try informal discussions/negotiations to resolve, if fail to work, a claim may be submitted.
-The Contract Disputes Act give fixed timeframe for resolution.
-CO's final decision is the final work. The Contractor may appeal as described in FAR 33.
Alternative Dispute Resolution (ADR)
FAR 33.215
(2016-05-31)
Q: What is the objective of ADR?
ADR is a method to increase the opportunity for relatively inexpensive and expeditious resolution of controversial issues.
-a neutral person, uninterested party, facilitates the resolution.
-methods include arbitration and mediation
Appeals
FAR 33.2
(2016-05-31)
Q: What is an appeal?
Written request to higher court to modify or reverse a judgment.
-For CO Final Decision - appeal to Armed Services Board of Contract Appeals or US Court of Federal Claims.
-For SB Set-Asides - appeal to the Agency head.
Service Contracts
FAR 37
(2016-05-31)
Q: What does a service contract accomplish?
A contract that directly engages the time and effort of a contract whose primary purpose it is to perform an identifiable task rather than to furnish an end item of supply. May be either personal or non-personal contract. Can cover services performed by professional or non-professional whether on individual or organizational basis.
Data Rights
FAR 27
(2016-05-31)
Q: What are restrictive legends and what circumstances dictate their use?
-Required on all non-commercial deliverables
-Authorized: Copyright, GPR/SBIR data rights, limited/restricted, special license
-Nonconforming; may not be used
-Unjustified: Government can challenge
-Unmarked: Presume "unlimited"
Technical Data
FAR 27.401
(2016-05-31)
Q: What is technical data?
Recorded information, regardless of form or method of recording, of a scientific or technical nature (including computer software documentation).
Not Technical Data - data describing contractor, info incidental to performance of contract, oral information not recorded, physical manifestation of the product whose design is described in the data (i.e. hardware item).
Intellectual Property
FAR 27
(2016-05-31)
Q: What is intellectual property?
A product of the intellectual processes that has commercial value. It is divided into two main categories:
1)Patent Rights and
2)Technical Data and Computer Software Rights.
Public Law
FAR 22
(2016-05-31)
Q: List three (3) major labor laws which a contracting office routinely incorporates into contracts?
1. Davis Bacon Act - Construction.
2. Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 Statute (formerly Walsh Healey Act) - Manufacture or furnishing of materials, supplies,articles or equipment.
3. Service Contract Labor Standards - All Government service contracts, where the principle purpose of which is to furnish services thru the use of employees.
Equitable Adjustment
FAR 33.214
(2016-05-31)
Q: What is the strategy for resolving equitable adjustments?
AIR FORCE ONLY
The CO shall use ADR to the maximum extent possible to resolve. If the REA is over $500K, refer to AFLOA/JACQ and SAF/GCD if at impasse to develop a dispute resolution strategy.
Business & Contract Clearance
AFFARS 5301
(2016-05-31)
Q: What is the objectives of business and contract clearance?
AIR FORCE ONLY
Negotiations result in business arrangement that is Fair and Reasonable. Negotiations actions are IAW laws, regulations, policies; independent review is accomplished; acquisitions strategy are implemented effectively.
Cost Efficiency Factor
DFARS 215.404-71-5
(2016-05-31)
Q: What is a cost efficiency factor and when may it be used?
Allows up to 4% profit/fee for demonstrated contractor efforts that will reduce costs on pending contract. Participation in SPIs, actual reductions from prior contracts, process improvements, subcontractor cost reduction efforts, investment in new facilities, cost reduction initiatives.
Cost and Pricing Data
FAR 15.403-1
(2016-05-31)
Q: What are the prohibitions on obtaining certified cost and pricing data?
1. Below SAT
2. Adequate price competition
3. Price set by law or regulation
4. Commercial item
5. Waiver
6. Modification for commercial item
7. Exercise of priced option
8. Overrun funding or interim billing price adjustments.
Contract Type
FAR 16.104
(2016-05-31)
Q: What ten (10) factors should be considered in determining contract type?
1. Price competition - results in realistic pricing (FP).
2. Price/cost analysis - which can you do? uncertainties?
3. Type/complexity of requirement - greater risk?
4. Urgency of requirement - government accept > risk?
5. Period of performance - long (EPA clause)?
6. Adequacy of contractor's accounting system - if not FFP?
7. Concurrent contracts - same types?
8. Extent/nature of proposed subcontracting - contractor's actual risk?
9. Acquisition history - risk decreases with age.
10. Contractor's technical capability and financial responsibility.
Deviations
FAR 1.4
(2016-05-31)
Q: What is a deviation?
1. Issuance of policy/procedure/provision/clause/method/practice that is inconsistent with FAR.
2. Omission/mod of required provision/clause authorized by FAR.
3. Use of provision/clause with modified altered language not authorized by FAR.
4. Use of provision / clause prescribed on "substantially as follows" or "substantially same as" basis.
5. Authorization of lesser/greater limitations on use of any provision/clause/policy/procedure prescribed by FAR.
6. Issuance of policies/procedures that govern contract process/control contract relationships that aren't incorporated into agency regulations.
Options
FAR 17.207 (c)
(2016-05-31)
Q: What must the Contracting Officer have to exercise an option?
1. Written determination to contractor IAW option clause.
2. Funds are available.
3. There is still a Government need.
4. This is still the most advantageous method to fulfill need (price and other factors, market survey, time, continuity of ops).
5. Was synopsized IAW FAR 5 unless exempt by FAR 6.
6. Determination in file that exercised IAW Ts & Cs.
7. Contractor not harmed.
Contingent Liability
AFFARS 5317.101
(2016-05-31)
Q: What is contingent liability?
A liability which is not fixed or absolute but will become so upon occurrence of uncertain event(s). May/may not become actual liability depending on future event. Must reserve funds as soon as aware of the potential.
Examples: Award fee, EPA, Incentives, REA/claim.
Deviations
FAR 1.403; FAR 1.404
(2016-05-31)
Q: What are deviations and what are the two types?
What: Policy/procedure/provision/clause inconsistent with FAR. Omission of required or use of a non-authorized provision/clause. Provision/clause using "substantially" that is inconsistent with intent. Authorization of/or use of policy/procedure/provision/clause prescribed. Policy/procedures authorized that are not part of acquisition regulations.
Types: Class & Individual
Undefinitized Contract Action (UCA)
DFARS 217.74
(2016-05-31)
Q: If a sudden conflict happens overseas, how would the CO determine if a UCA should be used and what funding constraints are there?
-Does the Government's interest demand binding commitment for immediate work?
-Is there sufficient time to negotiate
-Are requirements defined as well as possible?
-If HCA determines no other contract type suitable, the UCA must have a not to exceed amount. No more than 50% of NTE (unless qual proposal submitted than 75%)
Single Process Initiatives (SPI)
DFAR 215.404-71-5
(2016-05-31)
Q: What are SPIs?
DEF: Among things to consider when determining if cost efficiency factor should be applied.
Purpose: SPI is acquisition reform initiative designed to reduce costs associated with doing business with the Government. SPI allows block contract changes to implement common processes and replace/eliminate MIL Standards and specs and business requirements when they don't add value. Gives contractors flexibility to use most efficient business and manufacturing processes for individual facilities/products they produce. Goal of SPI is to reduce contract costs associated with unnecessary Government oversight, to more towards total performance based acquisition practices within DoD.
Progress Payments
FAR 32.5
(2016-05-31)
Q: What rights does the Government have with regards to progress payments? What steps does a PCO have to go through to suspend or reduce progress payments?
Progress payments provide Government rights to reduce/suspend progress payments or to increase liquidation rate under specified conditions.
PCO must take following steps prior to suspending:
-notify contractor of intended action and provide opportunity to discuss
-evaluate the effect of the action on contractor's operation based on the contractor's financial condition, projected cash requirement and existing credit.
Consider general equities of situation, PCO can take unilateral action only if warranted by circumstances like overpayments or unsatisfactory performance. PCO shall always act fair and reasonably, based decisions on substantial evidence, document contract file.
Clearance Process
AF AFICA MP 5301.90 - Clearance
(2016-05-31)
Q: Describe how clearance approval steps differ for competitive vs. non-competitive actions.
AIR FORCE ONLY
Business clearance for competitive acquisition is approval to issue solicitation. For non-competitive is approval to begin negotiations. Contract clearance for competitive acquisition is approval by CAA for SSA to make the decision to award w/out discussions or request FPRR. For non-comp is approval by CAA to award contract or modification.
MIRT applies to all actions over $50M.
Judgment Fund
31 U.S.C. 1304; Fiscal Law Deskbook, 2014, Chapter 11, VI.
(2016-05-31)
Q: What is the judgment fund?
If funds not available, the CO may refer a claim to the ASBCA and request they approve the settlement of the claim from the Judgment Fund (refer to FM regulations). Judgment Fund is available for court judgments and Justice Department compromise settlements of actual or imminent lawsuits against the Government. Payment of final judgments not otherwise provided for. No FY.
Forms
1279 - DFARS 205.303
AF Form 3059 -
DD Form 2579 - DFARS 219.201
(2016-05-31)
Q: What is the difference between a 1279, 3059 and DD2579
AIR FORCE ONLY
1279 Synopsis of contract award. Report all actions including mods that have face value excluding unexercised options of more that $7.0. For UCA report NTE, when definitized, if exceeds NTE by more than $7M report only amount exceeding original NTE. Send to SAF/LLP.
AF 3059 - Staff Judge Advocate coordination sheet. Route files through legal for review/coordination for actions over $1M
DD2579 - Small business coordination record.
Software Markings
DFARS 227
(2016-05-31)
Q: What is the difference between nonconforming markings versus unjustified markings?
Government's right to establish conformity of markings.
-Nonconforming - any marking that are not authorized. A marking that is not in the form, or differs in substance, from the markings required in the clause. CO shall return technical data containing nonconforming markings to the person that placed the markings on the data so they can correct at their own expense. Must return.
-Unjustified - Authorized marking that doesn't depict accurately restrictions applicable for Government use, modification, reproduction, release, performance, display, or disclosure of marked technical data. CO has right to review & challenge. Upon agreement CO may mark or correct or return for correction at contractor expense.
Contract Elements
Common Law
(2016-05-31)
Q: What is consideration?
Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration). In a contract, one consideration (thing given) is exchanged for another consideration.
Solicitation Elements
FAR 2
(2016-05-31)
Q: What is the difference between a SOO, SOW, and PWS?
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.
Full & Open Competition
FAR 15
(2016-05-31)
Q: What exceptions to Full & Open Competition don't require a J&A?
1. International Agreement.
2. Authorized/Required by Statute (e.g. 8(a)).
3. Public Interest (if HCA determines). However a D&F is required.
J&A
FAR 6.303
(2016-05-31)
Q: A contract was awarded for $8M (amount of the approved J&A). The CO anticipates issuing a change to add work outside the scope of the contract for $4M. What does this mean for your J&A?
A new J&A must be submitted by the CO to the appropriate approving official.
Funding
DFARS 232.703-1
(2016-05-31)
Q: What are the exceptions to "full funding" of fixed price contracts?
Should be fully funded, but exceptions are:
1. Contract or option if a severable service, not over 12 months period of performance, and uses funds as the date funds obligated or
2. Uses multiple year funds and is R&D funding or Congress has otherwise authorized incremental funding.
Protests
FAR 33.1
(2016-05-31)
Q: Name the types of protests.
1. Agency.
2. GAO.
3. US Court of Federal Claims.
4. Small business size standard representation
Protests
FAR 33
(2016-05-31)
Q: What is a protest?
Written objection by interested party to any of the following:
1. Solicitation or other request for offers for a contact.
2. Cancellation of such solicitation or request.
3. Award or proposed award of the contract.
4. Termination or cancellation of award of the contract.
*Interested party means actual or prospective offeror whose direct economic interest would be affected by the award or failure to award the contract.
Performance-Based Service Acquisitions (PBSA)
https://www.acquisition.gov/seven_steps/home.html
(2016-05-31)
Q: What are the seven steps to Performance-Based Service Acquisitions?
1. Establish team.
2. Decide what problem needs solving.
3. Examine private-sector and public sector solutions (market research).
4. Develop of PWS or SOO.
5. Decide how to measure and manage performance.
6. Select the right contractor.
7. Manage performance.
Personal Service
FAR 37.104
(2016-05-31)
Q: What is personal service?
1. Characterized by employer/employee relationship between Government and contractor's personnel.
2. Under continuous supervision and control of Government person.
*Don't award unless authorized by statute.
Non-Personal Service
FAR 37.102
(2016-05-31)
Q: What is non-personal service?
Personnel performing are not subject to supervision/control usually prevailing in relationship between Government and its employees.
*All service contracts should be non-personal in nature with very few exception (e.g. medical doctors/nurses/some highly specialized technical support/consultants)
Review
AFFARS 5301.9001 (b)
(2016-05-31)
Q: What is a MIRT?
AIR FORCE ONLY
Multifunctional Independent Review Team
1. Competitive acquisitions over $50M.
2. Assists in clearance processes at five critical decision points
Exchanges
FAR 15.306
(2016-05-31)
Q: What are the three types of exchanges between the Government and offerors?
Clarifications - limited exchanges when award without discussions is contemplated. Includes relevance of past performance, adverse past performance, or minor/clerical errors.
Communications - exchanges after receipt of proposals leading to the establishment of the competitive range. Limit to offerors who past performance is affective placement in the competitive range and those whose inclusion is affecting understanding of proposal. No changes may be made to the proposal.
Discussions - To maximize the Government's ability to obtain best value. Can discuss adverse past performance, uncertainties, weaknesses, deficiencies, strengths. Only with offerors within the competitive range.
Options
FAR 17.207
(2016-05-31)
Q: You have a contract that was awarded under full & open competition, with NTE options. What must the CO do to exercise the option?
Synopsize as a new requirement and execute a J&A prior to exercising the option. Accomplish the D&F as required and ensure funds are available. (if addressed in the original PCM and considered in initial award, different rules).
Urgent Need
10 U.S.C. 2326; DFAR 217.74
(2016-05-27)
Q: Your PM comes to you with an urgent need for a modification to a weapon that is needed in the field immediately. What do you do? What do you need to accomplish it?
Key thoughts:
1. Is there an existing contract? If so, could a NTE modification be issued? If not, can you issue a UCA. The J&A would be based on unusual and compelling urgency (can be written after the UCA issued). Would need authority to award UCA.
2. Is funding available? Can't obligate over 50% of NTE/need new start. Need definitization schedule & NTE proposal from contractor.
Early Effective Date
AFMCFARS 5304
(2016-05-31)
Q: Who approves the use of an early effective date and what are the limitations of their use?
AIR FORCE ONLY
-Wing PK approves.
-Must have agreement on price and terms & conditions and have funding.
-Direction must be in writing and include notice of allowability of costs and risk if no contract award.
-EED shall not be earlier than date of price agreement.
-Obtain legal review for effective date that is more than 30 days prior to envisioned award date
Changes
10 U.S.C. 2373; AFMC SUPPLEMENT 5335.018-90
(2016-05-31)
Q: You are the PCO on a contract that will deliver 4 assets to your program office. The contract was awarded competitively. The PM comes to you and explains that he needs a 5th unit so the project can undergo some survivability testing. What do you need in order to acquire the unit?
AIR FORCE ONLY
Can use Acquisition Experimental & Test Purpose 10 USC 2373, which exists for limited quantities for test purposes. Or you can synopsize and write J&A and procure.
Funding
AFMAN 65-604
(2016-05-31)
Q: You are the PCO on a program that has fielded units and is still in production. The initial deliveries highlighted a need for better packaging in the shipping containers. Your PM wants to contract for the design of this packaging and once developed, wants to purchase these new protective devices for all assets in the field as well as those currently being produced. What type(s) of funds do you need?
AIR FORCE ONLY
Design/test of new design: 3600 (RDT&E)
New packaging/containers for assets in field: 3400 (O&M)
New packaging/containers for assets being produced: 3011 (Production)
Government Furnished Property
FAR 45.104; FAR 52.245-1(h)
(2016-05-31)
Q: Who is responsible for the cost to repair GFP that has been broken by normal use?
The Government.
Military Interdepartmental Purchase Request (MIPR)
31 U.S.C. 1535; FAR 17.502-2
(2016-05-31)
Q: What are the CO's responsibilities when reviewing MIPRs?
1. Does it reflect appropriate business approach.
2. Is it complete.
3. Is the description adequacy for supplies or PWS complete for services.
4. Is there a fee associated with the MIPR and has the Requiring Activity been advised of this fee.
5. Is there other required documentation.
6. Is D&F for Economy Act been completed?
7. Non-DoD/Services Designated Official D&F complete?
8. Are required footnotes/business rules/interagency agreements followed?
Program Should-Cost Review
FAR 15.407-4
(2016-05-31)
Q: What are the elements of a program should-cost review/analysis?
1. Two types - "program should-cost review" and "overhead should-cost review".
2. A program should-cost review is used to evaluate significant elements of direct costs, such as material and labor, and associated indirect costs, usually associated with the production of major systems.
3. An overhead should-cost review is used to evaluate indirect costs, such as fringe benefits, shipping and receiving, real property and equipment, depreciation, plant maintenance and security, taxes, and general and administrative activities.
Claims and REA
41 U.S.C. Chapter 71, Contract Disputes; FAR 2; FAR 52.233-1
(2016-05-31)
Q: What is the difference between a claim and a request for equitable adjustment?
1. Claim - written demand for payment/adjustment. Lengthy, more formal process. Issued via disputes clause.
2. REA - usually result of a unilateral change order. CO should negotiate timely. Issued via changes clause, stop-work order, Government delay of work, Government property or suspension of work clauses.
Justification & Approval
FAR 6.303
(2016-05-31)
Q: What is a class J&A?
A class J&A provides authority for a class (group) of contracts for the same or related supplies/services that require essentially identical justifications. The CO must make written determination that an individual contract action may be awarded within the scope of a class J&A before such actions are awarded.
Contracting Officer Responsibilities
FAR 1.602
(2016-05-31)
Q: What are the roles and responsibilities of a CO?
1. Ensure all requirements of law, executive orders, regulations, procedures, clearances and approvals are met.
2. Ensure compliance with terms of contract.
3. Safeguard the interest of the Government.
4. Ensure requirements of FAR 1.602.1(b) have been met.
5. Ensure sufficient funds are available for obligation.
6. Ensure contractors receive impartial, fair, and equitable treatment.
7. Consider the advice of DACC, legal, engineering, transportation, and other fields.
Anti-Deficiency Violation
FAR 32.702
(2016-05-31)
Q: You're the PCO on a $125M new start for a RDT&E effort. The PoP is expected to be 5 years and the PM only has enough funds to cover the first year's effort, expected to cost $25M. However, the remaining funds are budgeted in the subsequent 4 years. Can the CO make award without full funding or would such an action be considered an anti-deficiency violation?
The CO can award. RDT&E contracts can be incrementally funded and remaining funds are included in out year budgets. Also, Government is protected from any anti-deficiency violation because the limitation of funds clause would limit the Government liability to amount obligated.
Cost and Pricing Data
FAR 15.403-1
(2016-05-31)
Q: You have just received a requirement to purchase 3 small utility trailers that can be used to ferry supplies and equipment between locations on the flight line. The customer tells you that a type of trailer used by the airlines would be acceptable if 1 minor change can be made to the placement of tie down bolts on the trailer. The estimated price for the trailers is $600K. Do you need to obtain certified cost or pricing data?
IAW FAR 15 a commercial item, or modified commercial item as defined in FAR 2, is exempt from the requirement to obtain cost or pricing data. It also is below the threshold of $700K for requiring Cost and Pricing Data.
Government Furnished Property (GFP)
FAR 45.103
(2016-05-31)
Q: Related to GFP, what is meant by the term competitive advantage during a source selection? How do you ensure this issue is addressed or eliminated during the source selection?
Meaning: advantage contractor may have by using Government property.
Addressed: CO shall consider potential unfair competitive advantage that may result from Contractor possessing Government property. Do this by adjusting offers by applying, for evaluation purposes only, a rental equivalent evaluation factor.
-Ensure maximum practical reutilization of Contractor inventory for Government contracts.
-Require contractors use GFP already in their possession to maximum extent practical in performing Government contracts.
-Charge appropriate rentals if GFP authorized for use on other than rent-free basis
-Require contractors justify retaining GFP not needed/declare excess
-Not generally require contractors establish separate property management systems.
Service Contract Labor Standards
41 U.S.C. Chapter 67, FAR 22.1000
(2016-05-27)
Q: Describe Service Contract Labor Standards (formerly know as the Service Contract Act of 1965)
Provides for minimum wages and fringe benefits as well as other conditions of work under certain types of service contracts. Service contracts over $2,500 shall contain mandatory provisions regarding minimum wages and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates. Under 41 U.S.C. 6707(d), service contracts may not exceed 5 years.
Contract Type
FAR 16.3
(2016-05-27)
Q: You're preparing CR RFP for fabricating a unique, one-of-a-kind item that has never been built. The exact level of effort required is unknown. The contractor feel there's significant risk, given schedule and potential for failure. Which type of contract would you recommend, what are some of its features and why would you recommend it?
A Cost-Plus-Fixed-Fee contract provides for payment to the contractor of a negotiated fee that's fixed at the inception of the contract. Fixed fee doesn't vary with actual costs, but may be adjusted as a result of change in the work performed under the contractor. This type permits contracting for efforts that might otherwise present too great a risk, but provides the contractor only minimum incentive to control costs.
Ratifications
FAR 1.602-3
(2016-05-31)
Q: What is the difference between an unauthorized commitment and a ratification?
1. Unauthorized commitment - the act of giving direction to a contractor without have the authority to do so. Proceeds a ratification.
2. Ratification - The act, by an official with the authority to do so, of approving an unauthorized commitment if all conditions are met.
Acquisition Planning
FAR 7
(2016-05-31)
Q: What is the policy regarding acquisition planning?
Agencies share perform acquisition planning and conduct market research for all acquisitions in order to promote/provide for 1) the acquisition of commercial items, or to the extent that commercial items suitable to meet the agency need aren't available, non-developmental items to the maximum extent practicable 2) full and open competition (unless not required).
Purpose: Ensure the Government's needs are met in the most effective, economical, timely manner.
Truthful Cost or Pricing Data (Formerly TINA)
FAR 15.403-1(c) (4)
(2016-05-31)
Q: What are the three criteria for receiving a waiver to the act formally known as TINA?
HCA may waive Truthful Cost or Pricing Data requirements:
1. Property or services can't be reasonably obtained without waiver or
2. Price can be determined fair & reasonable without Cost or Pricing Data submission or
3. There are demonstrated benefits to granting the waiver.
Scope
FAR 6.3, FAR 6.2, FAR 6.4
(2016-05-31)
Q: If a CO determines changes to a requirement are outside the general scope of the contract, may those changed requirements still be added? If so how?
Yes, changed requirements may be added to the existing contract by modification if the requirement for other than Full & Open Competition, a J&A is obtained, and the requirement is synopsized IAW FAR 5. If no exceptions to FAR 6.3 apply, the requirement may still be procured as new work under the F&OC requirement of FAR 6.2 after exclusion of sources if applicable or the Sealed Bidding & Competitive requirements of FAR 6.4 assuming the contractor won the competition.
Discussions
FAR 15.306 (d)(3)
(2016-05-31)
Q: What constitutes meaningful discussions?
Discussions must be meaningful, they can't be misleading and must identify proposal deficiencies and significant weaknesses that could reasonably be addressed in a manner to materially enhance the offeror's potential receiving award. We should not spoon-feed an offeror during discussions; they need only lead offerors into the areas of the proposal that require amplification.
Business Clearance
AFFARS 5301.90, AFFARS MP5301.9001(f), AFICA MP5301.9001
(2016-05-27)
Q: One of the buyers in your program office comes to you to brief a sole source pre-negotiation objective for business clearance. The proposed amount is $5.3M. The Government objective is $4.8M and the negotiation range is up to $5.1M. What do you do?
AIR FORCE ONLY
Obtain approval from Clearance Approval Authority (CAA) at the appropriate values. Note that the thresholds vary from MAJCOM to MAJCOM. AF CO's need to consult the appendix to the MP.
Contract Type
FAR 16.405-1
(2016-05-31)
Q: What are the elements of CPIF?
Target cost, target fee, minimum fee, maximum fee, fee adjustment formula, share ratio.
When the contractor reaches the high cost estimate the contract converts to a CPFF with a minimum fee.
Costs
FAR 31.202
(2016-05-31)
Q: What are direct costs?
Identified to a single cost objective, contract or organizational unit. example: direct labor, material, ODC
Request for Proposals
FAR 10; FAR 15
(2016-05-31)
Q: For a new requirement, what are the steps before issuing an RFP?
1. Issue sources sought synopsis.
2. Conduct market research.
3. Conduct industry day.
4. Write draft RFP.
5. Issue draft RFP for comments.
Cost Realism
FAR 2101; FAR 15.305
(2016-05-31)
Q: Describe cost realism
Cost realism means the costs in the proposal
1. are realistic for work to be performed
2. reflect a clear understanding of the requirements
3. are consistent with the various elements of the technical proposal.
Cost realism is performed on all CR contracts
Purpose: assesses specific viability of an offer against proposed technical solution and current capability. Must be determined without regard to proposed ceiling on Government obligation and gives an accurate forecast of offer's likely success in performing the program.
Funding
FAR 32.706-2; FAR 52.232-22
(2016-05-31)
Q: Why do we use FAR 52.232-22, Limitation of Funds clause? What is the contractor's responsibility under this clause?
1. Incrementally funded CR contract. Schedule specifies amount presently available for payment by Government and allotted to contractor.
2. Use best efforts to keep work within the estimated cost. Agrees to perform or have performed work up to point at which total amount paid/payable under the contract doesn't exceed total amount actually allotted by Government. Notify PCO when costs are expected to exceed 75% of total contract in next 60 days. Also state funds needed to complete. Not obligated to complete or continue performance if funds are not available.
Weighted Guidelines
DFARS 215.404-4, Tool DD Form 1547
(2016-05-31)
Q: When are you to use weighted guidelines?
Must be a structured approach for developing a pre-negotiation profit or fee objective on any negotiated contract action when cost or pricing data is obtained, except CPAF.
WGL provides a vehicle for performing the analysis necessary to develop a profit objective. Also serves as a principle source document for reporting profit statistics to DoD management information system.
Resolving Inconsistencies
FAR.209
(2016-05-31)
Q: What clauses in a contract cites the method for resolving inconsistencies in non-commercial solicitations and contracts? What is the order of resolving inconsistencies? What type efforts are exempted from the clause and why are they exempt?
52.215-8 Order of Preference - Uniform Contract Format
1. Schedule (except specs).
2. representation and other instruction.
3. contract clauses.
4. Other documents.
5. Specifications.
Type efforts exempt (b/c they don't require UCF)
1. construction/A&E.
2. subsistence.
3. supplies/services requiring special format prescribed.
4. letter RFP.
5. contract exempt by agency head or designee.
Costs
FAR 31.203
(2016-05-31)
Q: What are indirect costs elements?
Costs that apply to two or more contracts or cost objectives. Example: supervisory staff, legal, employee payroll taxes, retirement expense, custodial expense.
Weighted Guidelines
DFARS 215.404-4
(2016-05-31)
Q: You are preparing a weighted guidelines and have determined the appropriate weighting for technical, management/cost control, contract type and performance. As a PCO you may also consider using the cost efficiency factor. When is it appropriate to use this factor and are there any limitations when applying this factor?
1.Cost efficiency factor is used as an incentive for contractors to reduce costs.
2. To the extent the contractor can demonstrate cost reduction efforts that benefit the pending contract, the CO may increase the pre-negotiation profit objective by an amount not to exceed 4% of the total objective cost to recognize these efforts.
Progress Payments
FAR 32.503-6
(2016-05-31)
Q: What activities can a CO take to ensure that any excess of the unliquidated progress payments over the contractual limitation is promptly corrected?
1. Increase the liquidation rate.
2. Reduce progress payment rate.
3. Suspend progress payments.
Cost
FAR 31.201-2
(2016-05-31)
Q: What is an allowable cost?
A cost the Government will permit to be reimbursed by the Government for performance of a contract. Factors to be considered include:
1. Reasonableness- cost doesn't exceed what a prudent person would expend in conduct of competitive business.
2. Compliance with CAS
3. Allocable
4. IAW terms of contract
5. Any limitations set forth in FAR 31
Weighted Guidelines
DFARS 215.404-4 (b)
(2016-05-31)
Q: When are weighted guidelines prohibited?
WGLs are used for any negotiated action when cost or pricing data is obtained except:
1. Cost-Plus-Award-Fee contracts.
2. Contracts with Federally Funded Research and Development Centers (FFRDC)
Costs
FAR 16:601 (b)
(2016-05-31)
Q: What do fully burdened rates include?
1. Wage.
2. Overhead.
3. General & Administration.
4. Fee/Profit.
Responsiveness and Responsibility
FAR 9.104-1 vs. FAR 14.301
(2016-05-31)
Q: What is the difference between the terms responsiveness and responsibility?
1. Responsiveness - responsive to a solicitation. Contractor makes an offer in a manner that the Government said it had to be made. A term from sealed bidding (FAR 14)
2. Responsibility - The contractor is capable to do the work. Ability to perform, financial capability, past performance history, organization, facilities and equipment.
Price Analysis
FAR 15.404-1 (b)(1)
(2016-05-31)
Q: What is price analysis and what are the methods that can be used from the most preferred to the least preferred?
The process of examining/evaluating a proposed price without evaluating its separate cost elemetns and proposed profit. The following are techniques used in price analysis:
1. Review of proposed prices.
2. Review of previously proposed prices.
3. Review of previous Government commercial contract prices with current proposed prices for same/similar items.
4. Competitive published price list/published market prices.
5. Comparison of proposed prices with independent IGE
6. Comparison of proposed prices with prices obtained through market research for the same or similar items.
7. Analysis of data other than certified cost or pricing data provided by the offeror.
Subject Invention and Background Invention
FAR 27.301
(2016-05-31)
Q: Describe the difference between a subject invention and a background invention.
1.
Subject invention
- one made during the performance of the contract. Generally the contractor retains title and the Government get non-exclusive right to use the invention for Governmental purposes.
2.
Background invention
- one that is owned/licensed by the contractor and that will be incorporated into the contract deliverables.
Options
FAR 17.207 (c)
(2016-05-31)
Q: You are a PCO on a missile program and you have an upcoming FFP option to exercise. All the data you have shows that the contractor will lose $$$ is you exercise the option rather than re-negotiate. What do you consider prior to exercising?
Determine that:
1. Funds are available.
2. Requirement covered by option fulfills existing Government need.
3. The exercise of the option is the most advantageous to the Government based on need, price and other factors.
4. Option was synopsized IAW Part 5 unless exempt.
5. Potential negative behavior by the contractor and how your contract will allow you to address any such negative behavior.
Berry Amendment
USC Title 10, DFARS 225.7002
(2016-05-31)
Q: What is the Berry Amendment?
The purpose of the Act is maintain and support the defense industry base for items covered. Prohibits using appropriated funds to purchase any item/article on restricted list from a non-qualifying country. Compliant mean melted/produced in the US. Law restricts specialty metals for A/C, missile, space systems, ships, tanks,auto items, weapons, ammo.
-Acquisition of certain items from domestic sources.
J&A
FAR 6.303-1
(2016-05-31)
Q: If you had a definitive "C" type contract worth $60M that was negotiated sole-source with Raytheon under the authority of a $65M J&A, and 1 year later due to cost overruns you needed an additional $20M, would you need a J&A and who would approve it?
Yes. You need to notify the original J&A approval authority (PE) via a J&A amendment. Even though you will not be exceeding the original J&A by more than 50%, you have jumped beyond the PEO's approval threshold ($78.5M) so you must obtain SAF/AQ's signature approval on the J&A amendment.
Facilities Capital
48 CFR 9904.414; FAR 2.101 (b)
(2016-05-31)
Q: What is facilities capital and when is it used?
Focus on encouraging and rewarding capital investment in facilities that benefit DoD. It recognizes both the facilities capital that the contractor will employ in contract performance and the contractor's commitment to improving productivity.
Award Fee
FAR 16.401 (e)(4)
(2016-05-31)
Q: Under DoD award fee contracts, what is the maximum amount of unearned fee that a fee determining official (FDO) can rollover to a future award fee pool?
Rollover of unearned award fee. The use of rollover of unearned award fee is prohibited.
Modifications
FAR 43
(2016-05-31)
Q: One of your buyers comes to you with a request to modify a contract she awarded two days ago to add some effort that the customer really wants. You buyer is anxious to support and sees no harm in adding the work. The contract is for demolition and removal of two buildings. The price for the basic contract is less than the customer expected. The add-on is to remove and replace a fence surrounding the area where the two buildings are and maybe pour three concrete slabs to put some trailers on. Lead us through the conversation with your buyer on whether the effort should be added.
1. Scope of contract - to permit the modification within the changes clause (contractual authority issue) should a demolition contractor have to be prepared to build fences/pour slabs (upon unilateral direction)?
2. Scope of competition - to permit the modification without new competition (CICA compliance, fairness to competition).
3. Did the criteria for the demolition contract fairly proved the best contractor to do both?
4. How substantial is the added effort? Reasonable view from street and protest potential, examine alternative approaches.
5. Recognize how easily avoidable this could have been if included in original solicitation.
Source Selection & Inherently Governmental Functions
FAR 7.503(c)(12)(ii); 7.503(d)(8) & (14)
(2016-05-31)
Q: What involvement can non-Government personnel have with a source selection?
NGP can't have any financial interests nor be the SSA, chairperson of the SSA/SSET or an advisor to or member of the PCAG. Nor can they be voting members of any source selection boards.
Performance/Price Tradeoff
FAR 15.101-1
(2016-05-31)
Q: Describe a performance/price tradeoff.
Simplified best value source selection that permits a tradeoff between price and performance in reaching the award decision. Applies to commercial/noncommercial. Some benefits: permits recognition of good performer; minimize risk of awarding to contractor that can't perform; SSP not required for PPT.
Two PPT Best Value Models (with or without technical proposal).
Recency, current-taking place at present time, and Relevant, performance being considered must have logical connection to work described in the solicitation.
Three approaches:
1. Evaluate technical proposals, rank by price, assess performance.
2. Rank by price, evaluate a specified # for technical, assess performance;
3. Evaluate technical, rank by price, assess performance until proposal rate "substantial confidence"
1279
MP5305.303, DFARS 205.302 and AFFARS 5317.191
(2016-05-31)
Q: What is a 1279 report and when is it used? When do you include subcontracts on a 1279?
1. The DD-LA-(AR) 1279 is a report which is submitted to Congress for DoD awards above $7M. The report must be submitted to the office of the Assistant Secretary of Defense by the close of business the day before the date of the proposed award. 2. List all contract and subcontracts performing 25% or more of the current effort and location when 25% or more of the current effort is being performed. Following each location, indicate which contractor is performing the effort.
ORM
DoD Policy
(2016-05-31)
Q: As a PCO, you will be called upon to make lots of decisions. In this context, what is "ORM"? What are the six steps of ORM in this context? How would you apply those steps to your decision making process?
ORM - Operational Risk Management
Management tool to help in effective and correct decision making. Use risk analysis to determine the potential postivie/negative results of a potential decision and work through various potential consequences prior to making a formal decision at the appropriate level.
Steps:
1. Identify real/potential hazards.
2. Assess the risk
3. Analyze risk control measures
4. Make the decision
5. Implement the controls
6. Supervise and review.
Data Rights
FAR 27.401
(2016-05-31)
Q: Who owns and what are the respective rights of the Government and its contractors in deliverable noncommercial technical data and computer software as provided in the standard clauses that are included in most DoD contracts and what generally determines the rights? If the Government fully funded the development, does the contractor nevertheless have proprietary rights and can the contractor place proprietary markings on the data?
1. The contractor owns the technical data and the Government gets license rights. Rights may be unlimited, Government purpose or limited. Funding general determines the rights of the Government, unlimited rights comes with the Government's exclusive funding of the development of technical data pertaining to items, components and processes. Government purpose comes with mixed funding. Limited rights comes with technical data developed at private expense. Private expense includes IR&D. For software, rights are unlimited, general purpose and restricted, again based on funding.
2. Contractor has proprietary rights. Government rights not exclusive but we can require appropriate Government marking on Government deliverables. A proprietary legend uses a commercial world term.
Contract Type
FAR 16.301; FAR 16.601
(2016-05-31)
Q: Policy has been issued by the Office of the Under Secretary of Defense regarding service contracts, specifically focusing on CR and T&M contracts. It provides guidance on the need to revisit the contract type before reissuing such contracts. Why is this necessary and what would you consider before preparing a follow-on CR/T&M service contract?
Consider:
1. Experience gained on previous contract, may provide basis to reasonably price similar future efforts on FP basis.
Why
1. To determine if any portion can be broken out/ordered on FP basis.
2. Statutory preference for performance based specs, which clearly defines desired outcomes, as an additional step facilitating FP contracts.
3. FP contracts result in cost savings/reduced oversight.
J&A
FAR 6.303
(2016-05-31)
Q: When should you amend a J&A versus getting a new J&A?
1. Regardless of $ value, if proposed change is for new effort outside scope of the original J&A, submit new J&A as stand-along document to the appropriate approving authority. New work should not commence until the J&A is approved.
2. Before contract award, if $ value is expected to exceed the original J&A approval authority, CO should submit amended J&A to appropriate approval authority, CO should submit amended J&A to appropriate approval authority clearly identify the $ increase. After award if $ value increased by 50% or more CO shall submit amended J&A. New or amended not required for: decrease in $ value or scope; increase in estimated $ value of in-scope effort (except as listed above)
Performance Based Payments
FAR 31.10
(2016-05-31)
Q: With respect to performance based payments, what are some of the PBP guidelines?
1. PBP are preferred method of Government financing when CO finds practical and contractor agrees to use.
2. Fully recoverable, like progress payments, even in event of default.
3. CO must not use when other payment methods are used.
4. Performance measured by objective, quantifiable methods, accomplishment of defined events or other quantifiable measure of results.
5. Contract must be fixed price.
6.Total payment can't exceed 90% of total contract or delivery line item.
7. Events may be severable or cumulative.
Inspection of Services
FAR 46.202-3; FAR 46.301
(2016-05-31)
Q: What are the responsibility of the Contractor and the Government in regards to inspection of services?
Contractor - from contract clauses for fixed price and cost reimbursement contracts the contractor shall provide and maintain inspection system acceptable to the Government covering the services under the contract. Complete records of all inspected work shall be maintained and made available to the Government during performance and as long after as the Government requires.
Government - has the right to test all services and perform tests and inspections.
Order of Precedence for Required Documents
FAR 11.101
(2016-05-31)
Q: What is the order of precedence for requirements documents?
1. Those mandated for use by law.
2. Performance oriented (PWS, SOW, SOO) docs.
3. Detail design - oriented docs.
4. Standards, specs, related pubs.
MIRT
AFFARS 5301.9001 (b)
(2016-05-31)
Q: At what stages does the MIRT need to review the procurement?
AIR FORCE ONLY
For contracts greater than or equal to $50M
1. Draft Request for Proposal.
2. Draft Acquisition Plan.
3. Review of draft competitive range or award without discussions.
4. Review of draft Final Proposal Request (FPR).
5. Request of draft Source Selection Decision Document (SSDD).
Authority
DAU Contracting Officer's Representative Course
(2016-05-31)
Q: What is the difference between express and implied authority?
1. Express - specifically set forth in writing or orally.
2. Implied - The second type of actual agency or authority is implied authority. Usually this term means incidental authority. It frequently happens that an agent is expressly assigned a task to accomplish, but the minor details are not spelled out in the oral or written authority given to him.
It can be safely assumed that the agent has implied authority to do what must be done in order to accomplish the purpose of the express agency. This implied authority is usually defined in general terms to include authority to do what is usual, customary and necessary.
Both are actual authority
Extra
Apparent authority is not real or actual authority, but is invoked by the courts on equitable grounds. The purpose in finding such authority is to prevent unjust injury of a third party that relies on the appearance, created by the principal, that the agent is authorized to act for the principal.
Performance Price Trade-Off (PPT)
FAR 15.101-1, IG5315.101-1 (Jan 2008)
(2016-05-31)
Q: What are performance price trade-offs?
The PPT process is a simplified best value source selection strategy that permits a tradeoff between price and performance in reaching the award decision. It applies to both commercial and non-commercial acquisitions.
-Only rate technical proposal as acceptable/unacceptable.
-Best suited for operational, spares, some construction, non-developmental and build-to-print.
Berry Amendment
USC Title 10, DFARS 225.7002-2
(2016-05-31)
Q: What are the 15 exceptions to the Berry Amendment?
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.)
Quality Assurance
MP5301.602-2(d)
(2016-05-31)
Q: What are the responsibilities of quality assurance personnel?
AIR FORCE ONLY
1. Maintain technical expertise/knowledge.
2. Inspect contractor performance.
3. Evaluate/Report findings.
4. Develop/maintain surveillance folders.
5. Refer questions to contracting officer (always)
IDIQ Contracts
Reference
(2016-05-31)
Q: What are the indefinite delivery contract types and how do they relate to "min/max" and why would you use them?
Definite Quantity - No min/max as quantity is fixed so it sets consideration and scope. Use when item regularly available and short lead time.
Indefinite Quantity - Min and max, min sets consideration. Max bounds scope.
Requirements - the consideration is getting all the future work, minimum is not necessary. Use when recurring requirement but no precise quantity during contract period.
J&A and Scope
FAR 6.303
(2016-05-31)
Q: How does scope play into the decision to create a J&A document?
1. Regardless of $ value, out of scope requires new J&A as stand-alone document.
2. If in scope, and $ value exceeds 50% of the original J&A, submit an amended J&A. Watch amended value for change in approval authority.
Deficiency
FAR 15.001
(2016-05-31)
Q: Regarding proposals, what is the definition of "deficiency"?
1. A material failure of a proposal to meet a Government requirement or
2. a combination of significant weaknesses in a proposal that increases the risk of unsuccessful contract performance to an unacceptable level.
Unbalance Pricing
FAR 15.404-1(g)
(2016-05-31)
Q: What is unbalanced pricing and when does it exist?
1. Exists when, despite acceptable total evaluated price, the price of CLIN(s) is significantly over or understated.
2. Increases performance risk.
3. Requires price or cost analysis.
4. Could result in rejection of offer if risk to the Government is unacceptable.
Change
Reference
(2016-05-31)
Q: Your PM comes to you after receiving a call from your user with an urgent request to add an additional capability to a system you already have on contract for them. The PM has already spoken with the contractor and they can do the work. The program can save $ if the contractor can be given the go-ahead within the next couple of weeks. How would you advise your PM?
First, the CO would need to determine whether the task is within scope. Can the contract be modified under the changes clause or is it considered new work? To assist in determining need to look at original program synopsis, acquisition plan, and work statement. If effort is determined out of scope, must be synopsized and probably can't meet couple of week window. If within scope, need program directions and funds.
Data Rights
FAR 27.4
(2016-05-31)
Q: What are the types of data rights?
1. Unlimited - The Government has paid for the development. As such, the Government can use the data any way it sees fit.
2. Government - Mixed funding. Can be released within the Government and to those authorized to work on the Government's behalf.
3. Limited Rights - Funded by the Contractor. Can be distributed within the Government and must have written authorization to distribute outside of the Government.
4. Specifically negotiated license rights.
Unique Item Identification
DFARS 211
(2016-05-31)
Q: You are the PCO for a brand new personnel transport system program. The system is made of several components which, once integrated will be able to move 100 soldiers across mountainous terrain @ 65 mph. There's a requirement to place an identifying # on the system and perhaps some of the subsystems. What is the requirement, why does the DoD need it, and what determines if and at what level (system or component) the ID is required?
Unique Item Identification (IIUID) permanently identifies an individual item distinctly from all other individual items that the DoD buys/owns. Provides for marking personal property items with machine- readable unique item identifier, which is a set of globally unique data elements. DoD need to identify items to which it takes title in order to have better asset accountability, valuation, and life cycle management. IUID required when unit acquisition cost is >$5K or less when requiring activity decides permanent ID is required. Also DoD serially managed subassembly/component/part embed within delivered item.
Deviations
FAR 1.4
(2016-05-31)
Q: Define what a deviation from regulations is?
1. Noncompliance with a mandatory procurement regulations. FAR 1.4 sets forth the procedures to be used. Deviation mean any one or combination of
a. issuance/use of policy/procedure/provision/clause/method/ practice of conducting acquisition actions that is inconsistent with FAR.
b. omission of provision/clause required by prescription
c. use of provision/clause prescribed on a "substantially as follows" or "substantially the same as" basis if inconsistent with intent of prescription.
d. authorization of lesser/greater limitations on use of any provision/clause/policy/procedure prescribed.
e. Issuance of policies/procedures governing contract process or control contract relationships that aren't incorporated into agency regulations.
Special Tooling
FAR 45
(2016-05-31)
Q: What is special tooling?
Gigs, dies, fixtures, molds, patterns, taps, gauges, other equipment and manufacturing aids and all components/replacements of these items that are of such specialized nature that without substantial modifications or alteration their use is limited to the development or production of a particular supply or parts thereof or to the performance of a particular service. It does not include material, special test equipment, facilities (except foundations and similar improvements necessary for installing special tooling), general or special machine tools, or similar capital items.
Sources of Supply
FAR 8.002(a)(1)
(2016-05-31)
Q: What are the mandatory sources of supply?
1. Inventories of the requiring agency.
2. Excess from other agencies.
3. Federal Prison Industries, Inc.
4. Supplies that are on Procurement List (NISH).
5. Wholesale supply sources stock programs (i.e. GSA, DLA, Veterans Affairs, and Military Inventory Control Points).
6. Recommended Only Source: Federal Supply Schedules.
Public Law
GL Christian vs US
(2016-05-31)
Q: What is the basis for the Christian Doctrine and where does it come from?
"Significantly or deeply ingrained strand of public policy"
Derives its name from Court of Claims decision in GL Christian and Associates vs. the US. The Contractor sought to recover damages, including lost profits, for the Government's alleged breach of contract that resulted from the Government's unilateral termination of a contract that contained no express T4C clause. The Government argued that it was not in breach and contractor was not entitled to recover lost profits because the contract should of had the clause. Court reviewed the claim, determined that the clause was deeply ingrained...and stated that it is fitting and legally sound to read the T4C clause required by regulation as necessarily applicable.
Personal Service Contract
Reference
(2016-05-31)
Q: What is a personal service contract?
A contract that creates the appearance of contractor personnel functioning as Government employees. Personal service contracts are not allowed unless specifically authorized by statute. When authorized, personal service contracts may be used to acquire temporary services of experts. Services limited to one year. Examples: Doctors/nurses; consultants with specialized skills.
Public Law
See references in answer
(2016-05-27)
Q: Name four important laws that govern the federal procurement process?
Below are listed four Acts. Note however that this list is not all inclusive and other Acts may be named.
1. Anti-Kickback Act (42 U.S.C. § 1320a-7b) - criminal offense for any subcontractor under a prime Government contract to knowingly influence the award of a subcontract by making payments of any kind to any higher level prime or subcontractor.
2. The False Statements Accountability Act (1996) (18 U.S.C. § 1001) - criminal offense for a contractor to make false statements or provides false information to the Government. Also provides for criminal penalties against individuals who submit false statements.
3. False Claims Act (31 U.S.C. §§ 3729-3733) - both criminal and civil penalties can be enforced under the act against contractors that knowingly submit false claims for payments or improperly and intentionally substitute specific products or services without
Government prior knowledge or consent.
4. Sherman Antitrust Act (15 U.S.C. §§ 1-7) - bid rigging and collusive pricing are covered under the Act. Corporate officers and directors can be held personally liable for the awareness of contract compliance violations and the conscious failure to address and resolve violations.
AF Clearance Process
AFFARS 5301.9000(c) & (e)
(2016-05-31)
Q: Describe the clearance process
AIR FORCE ONLY
The purpose of clearance is effective implementation of approved acquisition strategies, result in fair and reasonable business arrangements, consisten with laws, regulations and policies, and is an independent review and assessment.
Business Clearance - Competitive, approval to issue solicitation, non-competitive, approval to begin negotiations.
Contract Clearance - Competitive, approval to award without discussions or request final proposal revisions. Non-competitive, approval to award.
Adequate Price Competition (APC)
Reference
(2016-05-31)
Q: You are preparing to competitively award a contract for an item and market research indicated several companies are capable of performing the work. Several attend industry day and 3 companies requested the RFP, so you believe there will be several offerors. The proposal cutoff date arrives and you only receive one proposal. Do you have adequate price competition? Why or why not?
Adequate price competition - two or more responsible offerors, competing independently, submit priced offers that satisfy the Government requirement and if:
1. award is to be made to the offeror whose proposal represents the best value where price is a substantial factor in source selection AND
2. There is no finding that the otherwise successful offeror's price is unreasonable.
There was also reason to suspect, based on the market research, that two or more responsible offerors would submit offers independently. Price analysis clearly demonstrates the proposed price is reasonable in comparison with current, recent prices for the same and/or similar items.
Incremental Funding
Volume 1, Chapter 5 Red Book; DFARS 232.703-1
(2016-05-31)
Q: The PM wants you to incrementally fund a fixed-priced supply contract through September 5 with what is left of the O&M funds. What are the rules for incremental funding?
DFARS 232.703-1 allows incrementally funding a FP contract in certain circumstances; severable services not over 12 months and uses funds as of date of obligation OR action uses funds from multiple FYs and is funded with R&D funds or is authorized by Congress for incremental funding.
Fair Opportunity
Reference
(2016-05-31)
Q: What is fair opportunity under multiple award contracts?
The Contracting Officer must provide each awardee a fair opportunity to be considered for each order exceeding $3K.
Exceptions: requirements so urgent that providing fair opportunity would result in unacceptable delays, one awardee is capable of providing the supplies/services because it is a logical follow-on to order already issued, necessary to place order to satisfy a minimum guarantee.
CO must issue decision document for each order-include rational for placement and price of each order including basis for award and rationale for any trade-offs.
Probable Cost
FAR 15
(2016-05-31)
Q: Describe the concept of "Probable Cost" and when and how is it used?
Cost realism analysis is used to determine the most probably cost. Is done on cost reimbursement contracts and competitive FPI contracts. Probable cost may differ from proposed costs and should reflect the Government's best estimate of the cost and any contract that is likely to result from the offeror's proposal. Probable cost shall be used for purposes of evaluation to determine best value. Probable cost is determined by adjusting each offeror's proposed cost and fee when appropriate to reflect any additions/reductions in cost elements to realistic levels based on the results of the cost realism analysis. Use when using cost/price risk (ACAT SDD)
Multiple Award Contracts
FAR 16.504 (c)
(2016-05-31)
Q: What factors must be considered when determining whether to use a Multiple Award Contract (MAC)?
The Contracting Officer must, to the maximum extent practicable, give preference to making multiple awards of IDIQs under a single solicitation for the same or similar supplies/services to 2 or more sources. The CO must consider the following:
-Scope and complexity of the contract requirement.
-Expected duration and frequency of task or delivery orders.
-Mix of resources a contractor must have to perform requirements.
-The ability to maintain competition among awardees throughout the period of performance.
*CO must document in Acquisition Plan or contract file why they're using a MAC.
Multiple Award Contracts
FAR 16
(2016-05-31)
Q: When can you NOT use a multiple award contract?
1. Only 1 contractor is capable of providing performance at level of quality required because the supplies or services are unique or highly specialized.
2. Based on CO's knowledge of market, more favorable terms and conditions, including pricing will be provided if single award is made.
3. Expected costs of administering multiple contract award outweighs benefits.
4. Projected orders are so integrally related that only a single contractor can reasonably perform the work.
5. Total estimated contract award is less than SAT.
6. Multiple awards would not be in the best interest of the Government.
Funding
Reference
(2016-05-31)
Q: You have a service contract that was funded with FY 05 annual O&M funds and ended in August 2005. The Command came down in July and gave the PM some extra funds for FY05. The PM comes to you and wants you to write a new contract for the services to run through September 06 and to fund the effort with the FY05 funds. Can you do this?
If services are non-severable, obligate current funds for the full amount of the contract. If the services are severable, normal rule is to obligate current funds in the amount of the contract or enough to fund until FY end. An exception exists under 10 USC 2410a to award for 12 months. Thus if severable you could only award for 12 month from award date.
Source Selection
MP 4.1.4.2.
(2016-05-31)
Q: What are the most likely times we might have a problem with the inappropriate release of procurement information in a source selection>?
Most likely occurrences are when we release evaluation notices (ENs) and the ratings charts. When ENs are released we must ensure they go to the appropriate contractor. If wrong contractor sees another's EN, they can gain insight into that approach. When we release charts, ensure no embedded comments that reveal other offeror information.
Obligation of Funds
Reference
(2016-05-31)
Q: Do you obligate or commit base fee promised but not yet payable to the contractor? Do you obligate or commit the discretionary part of the award fee?
1. Obligate.
2. Commit.
Unauthorized Commitment
FAR 1.602-3(c)
(2016-05-31)
Q: If the PE or PM directs contractor and the contractor incurs cost, is the Government obligated to pay? What if it's the second time and the Government paid the first time?
1. Could be a constructive change depending on the contract clauses and circumstances. Such acts can contractually bind the Government if the result is the contractor performing work beyond that required by the contract. A constructive change is an oral or written act (or failure to act) by the Government official (in a position of authority) that the contractor construes as having the same effect as a written change order.
2. Probably would be a constructive change unless the first time was heavily caveated to preclude recurrence.
Fees & Profits
FAR 15.404-4(c)(4)(I)(C)
(2016-05-31)
Q: Are there any maximum fee or profit limitations that the PCO can't exceed?
(A) For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract's estimated cost, excluding fee.
(B) For architect-engineer services for public works or utilities, the contract price or the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications shall not exceed 6 percent of the estimated cost of construction of the public work or utility, excluding fees.
(C) For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the contract's estimated cost, excluding fee.
Organizational Conflict of Interest
FAR 9.502
(2016-05-31)
Q: Give example of a contract or contract requirement where you might be concerned about an Organizational Conflict of Interest.
Situations where contractor independence and absence of bias are integral to products and services being provided. Also see FAR 9.502 - OCI most likely to occur in contracts involving management support services, consultant or other professional services, contractor performance/assistance in technical evaluations, system engineering or technical direction work by contractor who doesn't have overall development/production responsibility.
Claims
FAR 33
(2016-05-31)
Q: You have received a claim, what is the process you must go through?
First, refer to FAR 33. Notify chain. Review facts pertinent to the claim. Seek legal counsel. Prepare a written decision that includes description of claim, reference to pertinent terms, statement of factual areas of agreement/disagreement, a decision which states our decision and what action contractor may take if they disagree with the final ruling.
Next step for contractor: Appeal decision to Agency board of Contract Appeals.
Cost Allowability
FAR 31.201-2
(2016-05-31)
Q: When is a cost allowable?
A cost is allowable only when it complies with all of the following:
1. Reasonableness.
2. Allocability.
3. Meets standards promulgated by the CAS Board; generally accepted accounting principles and practices.
4. Terms/Conditions of the contract.
5. Doesn't violate any limitations set forth in this subpart.
Ratification
FAR 1.602-3(c)
(2016-05-31)
Q: As the PCO, you are in a tech meeting with the contractor. The program office is also there. The program office asks the contractor for an additional communication line. You remain silent. Sometime later, the contractor submits a request for equitable adjustment (REA) for the extra work, which they see as being outside the scope of the contract. What do you have and what action would you take?
You have a request for equitable adjustment which must be investigated. If the request is valid and outside the scope of the existing contact, the Government must do a ratification action.
Terminations
FAR 49
(2016-05-31)
Q: You have a cost type contract and the contractor is facing extreme schedule delays/cost overruns. Your Program Manager is screaming that "we need to terminate for default" and cut our losses. How do you handle the situation? What are your options?
Cost contracts do not contain default clauses (i.e. the Government is paying for best effort). The contractor will get paid for work accomplished/costs incurred.
Alternatives are "get well plans" or alternative technical solutions.
Modifications
FAR 43
(2016-05-31)
Q: Your Program Manager comes to you with an urgent requirement for a technical advancement required by a weapon that is needed in the field immediately. What do you do? What do you need to accomplish it?
Existing contract can issue not to exceed (NTE) mod; A undefinitized contracting action (UCA) may be issued with an Unusual and Compelling J&A (after UCA issue) Get authority to issue UCA obligate 50% (75% WAR on Terrorism) Need Liability Clause and definitized schedule. NTE proposal from contractor.
Fair & Reasonable
FAR 15.404
(2016-05-31)
Q: As you may know, the DoD has recently been heavily scrutinized concerning many of its determinations of fair and reasonable pricing. In you opinion, under what situation is the Government most likely to receive the best pricing and receive the least amount of scrutiny?
Adequate price competition is the preferred method of establishing fair & reasonable pricing.
Undefinitized Contracting Action (UCA)
DFARS 252.217-7027
(2016-05-31)
Q: You awarded an Undefinitized contract action 5.5 months ago. Despite your best efforts you are not making progress in settling the definitized negotiations. What are your options?
Elevate; Unilateral PCO Price Determination IAW DFARS 252.217-7027 the Contracting Officer may, with the approval of the head of the contracting activity, determine a reasonable price or fee in accordance with Subpart 15.4 and Part 31 of the FAR, subject to Contractor appeal as provided in the Disputes clause
Fair & Reasonable
FAR 15.404
(2016-05-31)
Q: You are the PCO on a new weapons contract that is critical in the global war on terrorism. You have completed your evaluation of the contractor's proposal and have a 20% price delta position from that of the contractor. The contractor offers to split the difference with you, but you do NOT believe this would represent a fair and reasonable price to the Government. Given this effort is for the global war on terrorism, do you agree to split the difference and award the contract? (Follow-On)? If you don't agree, what specifically can you do to resolve the issue?
No; because the Government must award a contract that establishes best value utilizing fair and reasonable prices. Elevate to supervisor and prepare for continued negotiations based on where the Government feels the proposal is high (if this isn't a commercial purchase, use cost analysis to determine where the delta lies in the cost elements).
Options
FAR 2.101 & 17.2, DFARS 217.2, AFFARS 5317.2, AFMC MP 5317.2
(2016-05-31)
Q: You are the PCO on a missile program and you have an upcoming FFP option to exercise. All the data you have shows that the contractor will lose money if you exercise the option rather that renegotiate the FFP. What do you consider prior to exercising?
Determine that option may be exercised:
1. Funds are available.
2. The requirement covered by the option fulfills an existing Gov't need.
3. The exercise of the option is the most advantageous method of fulfilling Government's need, price and other factors.
4. The option was synopsized IAW FAR 5, unless exempted.
5. Other considerations include the potential negative behavior by the contractor and how your contract, etc will allow you to address any such negative behavior.
Cost & Pricing Data
FAR 15.403-4 (b)(2), 15.406-2
(2016-05-31)
Q: You have just reached price agreement on a sole-source contract negotiation. You ask the offeror to provide you a certificate of current cost or pricing data. What will you be asking the contractor to certify to? Generally speaking, what is the purpose of the cert? What is the current threshold for requiring cost or pricing data? What are the exceptions?
"15.403-4 (b) (2) A Certificate of Current Cost or Pricing Data, in the format specified in 15.406-2, certifying that to the best of its knowledge and belief, the cost or pricing data were accurate, complete, and current as of the date of agreement on price or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price. Gives the Gov't the right to a price adjustment for bad contractor provided data. The current Threshold for CPD is $750K.
Exceptions for CPD are
1. Adequate price competition.
2. Prices set by law or regulation.
3. Commercial items.
4. Waivers.
5. Other Exception may be when (a) The exercise of an option at the price established at contract award or initial negotiation does not require submission of certified cost or pricing data. (b) Certified cost or pricing data are not required for proposals used solely for overrun funding or interim billing price adjustments.
Cost & Pricing Data
FAR 15.403-4
(2016-05-31)
Q: You have just reached price agreement on a contract negotiation. You ask the offeror to provide you a certificate of current cost or pricing data. What will you be asking the contractor to certify to?
"FAR 15.403-4 certifying that to the best of its knowledge and belief, the cost or pricing data were
accurate, complete, and current
as of the date of agreement on price or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price.
Unauthorized Commitment
FAR 1.602-3(c)
(2016-05-27)
Q: Your Program Manager directs the contractor to increase the number of widgets by 100. This results in an increase of $300K. What has just occurred and how to you correct?
1. An unauthorized commitment has just occurred.
2. Go through the steps to ratify the unauthorized commitment.
3. Modify the existing contract if ratification is approved.
Contract Clauses
FAR 32.706-2; FAR 52.232-22
(2016-05-31)
Q: As a PCO you may write contracts that use the clauses "Limitation of Funds, Limitation of Cost, and Limitation of Liability". When is each clause appropriate and what is the common purpose of all the clauses?
The purpose of all these clauses is to limit the Government's liability to the amount of funding that is on the contract thereby complying with appropriation laws.
1. Limitation of Funds - Used with incrementally funded Cost Reimbursement contract. Limits obligation to the amount obligated under the contract.
2. Limitation of Cost - Used with a fully funded Cost Reimbursement contract. Limits obligation to estimated cost plus fee.
3. Limitation of Liability - Limits the Contractor's liability once the good or service has been accepted, except when there is instances of willful misconduct or lack of good faith on the part of management.
Changes
AETP 10 USC 2373, FAR 6
(2016-05-31)
Q: You are the PCO on a contract that will deliver four prototypes to your program office. This contract was awarded competitively. The Program Manager comes to you and explains that he will need a 5th unit so the project can undergo some survivability testing. What do you need in order to acquire that unit?
Can use Acquisition Experimental & Test Purpose (AETP) 10 USC 2373, exists for limited quantities. Synopsize and J&A. FAR 6
Fair & Reasonable
FAR 15.403-1(c)(1); FAR 15.404-1(b)(2)
(2016-05-31)
Q: You have just received a contractor's proposal for a commercial item. Since commercial items are exempt from the requirement to obtain cost and pricing data, how will you determine if the contractor's proposal is fair and reasonable?
"Price analysis is the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit. Normally, adequate price competition establishes a fair and reasonable price (see 15.403-1(c)(1)). (i) Comparison of proposed prices received in response to the solicitation, (ii) Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items, (iii) Use of parametric estimating methods/application of rough yardsticks; (iv) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements; (v) Comparison of proposed prices with independent Government cost estimates; (vi) Comparison of proposed prices with prices obtained through market research for the same or similar items; (vii) Analysis of data other than certified cost or pricing data provided by the offeror.
Fair & Reasonable
FAR 15.403-4
(2016-05-31)
Q: Contracting Officers must obtain goods and services at fair and reasonable prices. To this end, there are those who believe that the Government should obtain as much information as possible. Do you think this is a good idea? Why or why not?
FAR 15.403-4, "obtain data other than certified cost or pricing data as necessary to establish a fair and reasonable price, generally using the following order of preference in determining the type of data required: at a minimum, appropriate data on the prices at which the same or similar items have been sold previously, adequate for evaluating the reasonableness of the price. (2) Required by Truthful Cost or Pricing Data. Creates increased cost and therefore CO should only require enough data to establish a fair and reasonable price.
Options
FAR 17.202 (c)
(2016-05-31)
Q: When should you NOT use options?
The contracting officer shall not employ options if --
1. The contractor will incur undue risks; e.g., the price or availability of necessary materials or labor is not reasonably foreseeable.
2. Market prices for the supplies or services involved are likely to change substantially; or
3. The option represents known firm requirements for which funds are available unless--
(a) The basic quantity is a learning or testing quantity and
(b) Competition for the option is impracticable once the initial contract is awarded.
Price Analysis
FAR 15.403-1(c)(1)
(2016-05-31)
Q: Your buyer asks "what is price analysis & what are some of the methods used to do it"?
"Price analysis is the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit. Normally, adequate price competition establishes a fair and reasonable price (see 15.403-1(c)(1)). (i) Comparison of proposed prices received in response to the solicitation, (ii) Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items, (iii) Use of parametric estimating methods/application of rough yardsticks; (iv) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements; (v) Comparison of proposed prices with independent Government cost estimates; (vi) Comparison of proposed prices with prices obtained through market research for the same or similar items; (vii) Analysis of data other than certified cost or pricing data provided by the offeror.
Adequate Price Competition (APC)
FAR 15.403-1
(2016-05-31)
Q: A contract specialist comes to you with a proposal that does NOT contain any cost or pricing information because the contractor has claimed an exception based on adequate price competition. The contract specialist knows the program is a sole-source effort and does not understand the standards for the exception based on adequate price competition. Describe how you would explain to the contract specialist the three standards under APC.
FAR 15.403-1 (I) Two or more responsible offerors, competing independently, submit priced offers that satisfy the Government's expressed requirement; or (ii) There was a reasonable expectation, based on market research or other assessment, that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation's expressed requirement, even though only one offer is received from a responsible offeror; or (iii) Price analysis clearly demonstrates that the proposed price is reasonable in comparison with current or recent prices for the same or similar items, adjusted to reflect changes in market conditions, economic conditions, quantities, or terms and conditions under contracts that resulted from adequate price competition.
A&E Contracts
FAR 36.602-3 (c) & (d)
(2016-05-31)
Q: Please describe to the panel the process for awarding A&E contracts to include the pricing of these efforts?
A&E are considered competitive awards. They are ranked technically from top to bottom. Hold discussions with at least three of the most highly qualified firms regarding concepts and the relative utility of alternative methods of furnishing the required services.
Fair & Reasonable
FAR 15.404-1
(2016-05-31)
Q: You just reviewed a draft PNM developed by a buyer. The PNM, for the sole-source effort, states that the item procured is a commercial item and that the agreed to price has been determined fair and reasonable because it was the same price as the contractor's published price list. Do you have any concerns?
"Although possible? Question why is a commercial item sole-source. Most commercial items have history, therefore; FAR 15.404-1 (ii) Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. This method may be used for commercial items including those "of a type" or requiring minor modifications.
Price Negotiation Memorandum
FAR 15.406-3
(2016-05-31)
Q: Please explain what a Price Negotiation Memorandum (PNM) is and why it is important?
"Pricing" means the process of establishing a reasonable amount or amounts to be paid for supplies or services. FAR 15.406-3 Documenting the Negotiation. The contracting officer shall document in the contract file the principal elements of the negotiated agreement
Weighted Guidelines
DFARS 215.404-71-5
(2016-05-31)
Q: You are evaluating a proposal where the contractor has proposed a 4% Cost Efficiency Factor be added in your consideration of your price objective. What is this factor and how will you determine if it is appropriate?
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.
Modifications
FAR 43
(2016-05-27)
Q: You have a contract with established terms and conditions. A FAC adds a new clause and makes it mandatory for all contractual efforts that are funded with RDT&E funds. What do you do?
There are two options, with the first being the preferred initial approach:
1. Negotiate to add clauses - how the new requirement will impact the contract.
2. Submit waiver to not include the clauses within the contract.
Contract Administration
FAR 42
(2016-05-31)
Q: While administering a contract, you find that the contractor had been submitting the Material Inspection and Receiving Report (DD250) with language included in the body of the DD250 that represents an additional contract term or condition not captured in the contract. (1) Assume you disagree with the content of the language and (2) the Gov't has previously signed some DD250's that included the language. (3) What are your actions?
At a minimum, I would submit a PCO letter to the contractor informing them that the added language is inappropriate and the language does not constitute any change to current contract conditions and the language shall be removed from the DD250 and resubmitted. Discuss with Legal.
Options
FAR 2.101 & 17.2, DFARS 217.2, AFFARS 5317.2, AFMC MP 5317.2
(2016-05-31)
Q: You have a contract with an options clause. The option expires Oct 1, it is now Oct 5th. The Program Office wants the work done immediately and he tells you get the option on contract ASAP. What do you do?
1. The contract is DEAD at this point.
2. Another option would be to do a short contract after getting a J&A approved. This option would be in place until a full contract could be pulled together.
Fair & Reasonable
FAR 15.402
(2016-05-31)
Q: I recently read a DoD IG finding that examined a case were the PCO stated in the PNM that the price agreed to was not fair and reasonable, but due to an urgent need the contract was awarded anyway. The DoD IG commended the activity for acknowledging this. Would you award a contract at a price that you thought was unreasonable? IF so why? If not why?
Don't award. The Government must award a contract that establish best value utilizing fair and reasonable prices.
Military Interdepartmental Purchase Request (MIPR)
31 U.S.C. 1535; FAR 17.502-2
(2016-05-31)
Q: Your program is experiencing problem related to its GPS system. The PM wants to send money to the Department of Energy to support various software patches that may fix the issue. The PM asks you to approve the MIPR for this action. What do you consider prior to coordinating on the MIPR? Are you the final approver?
An Economy Act D&F must be completed and executed before placing an order for supplies or services with another Government agency. The D&F documents the specific rationale and required justification that use on an interagency acquisition is in the best interest of the Government. The approver is the Wing Director.
Excessive Pass Through Costs
FAR 52.215-22 and 23
(2016-05-31)
Q: You are evaluating a proposal and find a large primary component of the proposal is subcontractor quote of $800K. At what point do you have to consider excessive pass through costs?
If 70% of the proposed effort is being accomplished by subcontractors you have to look at excessive pass through FAR 52.215-22 and 23. There are things the sub and prime have to submit and the CO has to evaluate.
Weighted Guide Lines
DFAR 215.404-74
(2016-05-31)
Q: A junior buyer presents you a contractor's proposal that contains a cost plus award fee (CPAF) contract and asks you for assistance in working the WGL to establish a Government objective. How do you respond?
215.404-74 Fee requirements for cost-plus-award-fee contracts.
Fee Objective
FAR 15.404 (c) (4) (i)
(2016-05-31)
Q: Your buyer is working the negotiation of a contractor's proposal for a multimillion dollar Cost Plus Fixed Fee (CPFF) effort for a highly visible, munitions upgrade development program. He comes to you and states that he has successfully reached price agreement, just above the Government's fee objective of 15%. What is your response?
The contracting officer shall not negotiate a price or fee that exceeds the following statutory limitations, imposed by 10 U.S.C. 2306(d) and 41 U.S.C. 254(b):
(A) For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract's estimated cost, excluding fee.
(B) For architect-engineer services for public works or utilities, the contract price or the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications shall not exceed 6 percent of the estimated cost of construction of the public work or utility, excluding fees.
(C) For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the contract's estimated cost, excluding fee.
Undefinitized Contract Action
DFARS 217.74
(2016-05-31)
Q: As a PCO you may be required to issue an Undefinitized Contract Action (UCA). Please explain what two clauses you would want to ensure was in the contract and why?
1. FAR 52.216-24, Limitation of Government Liability
2. DFARS 252.217-7027, Contract Definitization
The purpose of the clauses is to limit the Government's liability and to set up the process and timeline for definitizing the contract.
Fair & Reasonable
FAR 15.405 (d)
(2016-05-31)
Q: The need date for contract award had passed, but you are in a deadlock negotiation. After several counter-offers the contractor finally states that he will split the difference. After analyzing the offer you believe this offered price is not reasonable. What part of the FAR allows you to split the difference and award the contract? What do you do?
1. No part of FAR allows the CO to split the difference.
2. If, however, the contractor insists on a price or demands a profit or fee that the contracting officer considers unreasonable, and the contracting officer has taken all authorized actions (including determining the feasibility of developing an alternative source) without success, the contracting officer shall refer the contract action to a level above the contracting officer. Disposition of the action should be documented.
3. From a negotiations standpoint, the CO would also not want to offer a "split", as that would indicate how high the Government would be willing to go and would leave the Government with no additional negotiation room if the Offeror declined the 50/50 split.
Contract Type
FAR 16
(2016-05-31)
Q: You are a PCO on a R&D, FFP Satellite contract with a 3-YR PoP. The PO has directed a major program restructure due to amazing tech advances. The PO is looking at new risk reductions, new long lead items, a more robust program and expects the contract to double. (1) What considerations will you have as a PCO? (2) Tell us what you will review before processing? (3) What changes can you make?
1. As the PCO, the contract type must be considered. Is the new technology more or less risky? What is the anticipated PoP under the new technology. Is FFP really the best vehicle for this RDT&E requirement?
2. As the PCO, I'd have to review the current contract as well as current market research to determine which way to go forward.
3. Changes would be determined based on the existing contract. If a specific technology was called out in the original contract, the new technology may be a significant change which may not be allowed with the current contract. A stop work order may have to be issued which contract options are evaluated.
Nonconforming Supplies or Services
DFARS 246.407
(2016-05-27)
Q: You have just been advised by your program manager that missiles coming off the production line are questionable as to whether or not the meet requirements of system performance specification and may contain defective material incorporated by defective workmanship. What questions might you ask and what actions would you recommend utilizing applicable contract provisions?
1. Determine how the determination has been made by the Government that the missiles are questionable.
2. Find out whether the contractor has been spoken to about the issue and his QA records examined to verify problem.
3. If #1 & #2 done, notify the contractor in writing of issue. Request that the contractor repair or replace the material and perform the service, at no cost to the Government.
Certified Cost & Pricing Data
FAR 15
(2016-05-31)
Q: Your just received a phone call from a prospective contractor who is interested in doing business with the Government, but is concerned that the company does not have the resources necessary to provide cost or pricing information on proposals. What is your response?
There are exceptions to the contractor providing certified cost and pricing data. If the item is commercial or the Government anticipates competition, the prospective offeror won't have to provide certified cost and pricing data. The firm will have to have the ability to be responsible. As part of the resources of an responsible offeror is the ability to meet all the Section L and Section M of the solicitation.
Government Furnished Property (GFP)
FAR 45
(2016-05-31)
Q: Who is responsible for the cost of repair Government Furnished Property that has been broken under normal use?
The Government is responsible for the cost of repair to GFP that has been broken under normal use.
Certified Cost & Pricing Data
FAR 15.403-4 (b) (2)
(2016-05-31)
Q: You have just reached price agreement on a sole-source contract negotiation. You ask the offeror to provide you a certificate of current cost or pricing data. What will you be asking the contractor to certify to? Generally speaking, what is the purpose of the cert? What is the current threshold for requiring cost or pricing data? What are the exceptions?
15.403-4 (b) (2) A Certificate of Current Cost or Pricing Data, in the format specified in 15.406-2, certifying that to the best of its knowledge and belief, the cost or pricing data were accurate, complete, and current as of the date of agreement on price or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price. Gives the Gov't the right to a price adjustment for bad contractor provided data. The current threshold for CPD is $750K.
Exceptions for CPD are
(1) Adequate price competition.
(2) Prices set by law or regulation.
(3) Commercial items.
(4) Waivers.
(5) exercise of an option at the price established at contract award or initial negotiation does not require submission of certified cost or pricing data.
(6) Overrun funding or interim billing price adjustments.
Funding
FAR 52.232-22
(2016-05-31)
As a PCO, you have incrementally funded CR contract. The KTR tells you that funds will expire in 90 days. The KTs PoP runs for an additional 18 months. What options do you have as a PCO? What obligations does the contractor have? What advice would you give the contractor and PO.
1. PCO -
a. Terminate the contract.
b. Secure additional funding to complete the work.
c. Modify the work to reduce the scope of the work to accommodate the funds available.
2. Contractor - The Contractor agrees to use its best efforts to perform the work specified in the Schedule and all obligations under this contract within the estimated cost, which, if this is a cost-sharing contract, includes both the Government's and the Contractor's share of the cost. The Contractor shall notify the Contracting Officer in writing whenever it has reason to believe that the costs it expects to incur under this contract in the next 60 days, when added to all costs previously incurred, will exceed 75 percent of
(1) the total amount so far allotted to the contract by the Government or,
(2) if this is a cost-sharing contract, the amount then allotted to the contract by the Government plus the Contractor's corresponding share.
Sixty days before the end of the period specified in the Schedule, the Contractor shall notify the Contracting Officer in writing of the estimated amount of additional funds, if any, required to continue timely performance under the contract or for any further period specified in the Schedule or otherwise agreed upon, and when the funds will be required.
3. Advice - Tell the program office to either revise the scope of the project so that a modification can be made or prepare to notify the contractor that the contract will be terminated under the appropriate clause.
Acquisition Process
FAR 5, FAR 15
(2016-05-31)
Q: Describe the milestones in the source selection process?
1. Develop Acq Strategy
a. Publicize Contract Action (FBO)
b. Develop RFP (determine evaluation factors)
c. Source Selection Plan
d. Solicitation Review Boards.
2. Evaluations Proposals
a. determine competitive range
b. Conduct written/oral exchanges with offerors
c. Selecting the Source
d. Awarding the contract.
Contracting Officer
FAR 1.602-2 & AFFARS 5301.602-2
(2016-05-31)
Q: What are the contracting officer's responsibilities?
FAR 1.602-2: Ensure performance of all necessary actions for effective contracting ensuring compliance with the terms of the contract and safeguarding interests of the US in its contractual relationships & SHALL:
1. Ensure no contract is entered into unless all requirements of law, Exec. Orders, regulations, & all other applicable procedures, including clearances & approvals have been met (1.602-1(b) & sufficient funds are available for obligation.
2. Ensure contractors receive fair, impartial, fair, & equitable treatment.
3. Request & consider the advice of specialists in law, audit, engineering, information security, etc. as appropriate.
4. Designate a COR unless the CO retains COR duties.
AFFARS 5301.602-2: COs must obtain legal advice during all phases of acquisitions
AF Guiding Principles
Air Force
(2016-05-31)
Q: What are the AF's contracting guiding principles?
AIR FORCE ONLY
AF CONTRACTING 5 GUIDING PRINCIPLES
1. S = Stand up & do the right thing to ensure integrity & fairness of the procurement system (Integrity).
2. N = Never award a contract at the expense of integrity (Conflicts of Interest).
3. P = Passionately protect the image of our Nation, our Air Force, & our contracting profession (Passion).
4. K = Know the fundamentals, think innovatively, & remain focused on the details (Follow the rules & find ways to "make it happen").
5. C = Care for one another by sharing our knowledge & experiences (be a Leader).
Better Buying Power
Better Buying Power Website
(2016-05-31)
Q: What is the intent of each Better Buying Power iteration?
BBP is based on the principle that continuous improvement is the best approach to improving the performance of the defense acquisition enterprise
BBP 1.0 to BBP 2.0 reflected a change in emphasis from specific "best practices" to an increased emphasis on helping acquisition professionals think critically and make better decisions as they confront the myriad, complex situations we encounter in defense acquisition
BBP 3.0 continues that approach with a shift in emphasis toward achieving dominant capabilities through innovation and technical excellence
Funding
Fiscal Law Overview, Ethics Counselor's Deskbook (November 2013)
(2016-05-31)
Q: What are the stages of accounting?
1. COMMITMENT: An administrative reservation of funds based on firm written evidence (e.g., Firm requisitions or Certified purchase requests).
Funds must be committed for a contingent liability at the time of contract award and based on the estimate provided by the Contracting Officer.
DO NOT CONFUSE COMMITTED WITH OBLIGATED, FOR CONTINGENT LIABILITY.
2. OBLIGATION: Documented transactions, constituting a legal requirement to provide a product/service to the Government in return for payment upon completion.
Downward adjustments of previously recorded obligations are deobligations.
3. EXPENDITURE: Invoice & payment is made to fulfill an obligation. Ends the accounting process through payment or actual disbursement of $.
After 5 years in expired status: Appropriations close or cancel & are no longer available for any purpose.
Funding
Title 31, U.S.C. 1502(a); Principles of Federal Appropriations Law, Volume 1.
(2016-05-31)
Q: What three elements must be considered when evaluating funding?
1. PURPOSE, TIME & AMOUNT
a. Appropriations (Purpose)
b. Bona Fide Needs Rule (Time)
c. Anti-Deficiency Act (Amount)
2. APPROPRIATIONS CODES AND LIFE CYCLE
Funding
AFMAN 65-604
2015 Fiscal Law Deskbook, Chapter 8
(2016-05-31)
Q: What are the funding types, length of funds, and the AF accounting code?
3400.....O&M..................................1 year
3600.....RDT&E...............................2 years
3010.....Aircraft Procurement..........3 years
3020.....Missile Procurement...........3 years
3080.....Other Procurement.............3 years
3300.....MILCON (Construction).......5 years
Note: MILCON funds over $1M.
Public Laws
Title 31, U.S.C.
(2016-05-31)
Q: What is the Anti-Deficiency Act?
Prohibits obligations and expenditures in excess of or before an appropriation
• PTA =
PURPOSE (of Appropriation)
TIME (Bona Fide Need)
AMOUNT (ADA)
PURPOSE
• Obligations shall be made ONLY for the objects for which the appropriations were made
• Example: Don't buy Simulator Maintenance AF 3400) with Aircraft procurement (AF 3010) funds
TIME
Appropriations are only available for a fixed-term for obligation and payment
◦ When properly incurred during the available period or;
◦ To complete contracts properly made and obligated within a Period
Unexpired vs. Expired vs. Cancelled
Remember Bona Fide Need Rule?!??!?!?
AMOUNT
Any officer or employee of the USG may not:
◦ Make an obligation, expenditure, or authorize an obligation or expenditure that exceeds the amount available in an appropriation
◦ Involve the government in any contract or obligation for the payment of money before an appropriation is available
Funding
FAR Part 32
(2016-05-31)
Q: When can you use expired funds & what are limitations and parameters?
Upon expiration of a fixed appropriation, the obligated and unobligated balances retain their fiscal year identity in an expired account for that appropriation for an additional five fiscal years.
As a practical matter, agencies must maintain separate obligated and unobligated balances within the expired account as part of their internal financial management systems in order to insure compliance with the Anti-deficiency Act.
Also relevant in this connection is 31 U.S.C. 1554(a), under which applicable audit requirements, limitations on obligations, and reporting requirements remain applicable to the expired account.
During the 5-year period, the expired account balance may be used to liquidate obligations properly chargeable to the account prior to its expiration. The expired account balance also remains available to make legitimate obligation adjustments, that is, to record previously unrecorded obligations and to make upward adjustments in previously under recorded obligations.
Ratification
FAR 1.602-3(c)
(2016-05-31)
Q: What are the seven conditions to ratify an unauthorized commitment?
1. Supplies/services have been provided and accepted by the Government.
2. The ratifying official has the authority to enter into contractual agreements.
3. It would have been proper if the award was made by the CO.
4. The price can be determined to be fair and reasonable by the CO.
5. The CO and legal recommend payment.
6. Funds are available and were available when the commitment was made.
7. The ratification is IAW any other Agency limitation.
Full & Open Competition
FAR 6.3
(2016-05-31)
Q: What are the seven exceptions to full & open competition?
1. 6.302-1 Only one responsible source.
2. 6.302-2 Unusual and compelling urgency.
3. 6.302-3 Industrial mobilization; engineering; developmental or research capability; or expert services.
4. 6.302-4 International agreement (e.g. F-16).
5. 6.302-5 Authorized or required by statute (e.g. an 8a contract).
6. 6.302-6 National security.
7. 6.302-7 Public interest.
J&A
FAR 6.303-1
(2016-05-31)
Q: When is a J&A used and actions the CO must take if a J&A will be used?
1. A government document required by 10 USC (Armed Forces) & 41 USC (Public Contracts) when an agency is going to award a contract without full & open competition.
2. CO must justify the action in writing, certify the accuracy & completeness of the justification, and obtain the approval of the appropriate individual (Must do these 3 things).
3. There are 7 exceptions to full & open competition FAR 6.302.
4. Must be done before negotiations begin (unless 6.302-2 Unusual and compelling urgency)
Competition in Contract Act (CICA)
FAR 6
(2016-05-31)
Q: What are the three levels of competition as described by CICA?
1. Full & Open Competition.
2. Full & Open Competition After Exclusion of Sources.
3. "Other than Full & Open Competition (& exceptions to justify use of this & need a written J&A).
CICA passed in 1984 - Must compete every acquisition or J&A required. We are relying on competition to get the best deals.
Need to write a J&A if "Other than full & open competition".
J&A
FAR 6.303-2
(2016-05-31)
Q: What 13 elements must be present in a J&A?
1. Agency - Contracting activity & title of document (i.e., J&A for other than full and open competition.
2. Description of action being approved.
3. Description of supply/svc & $ value.
4. Statutory authority permitting other than full & open competition.
5. Demonstration of proposed contractor's unique qualifications or nature of acquisition requires use of authority cited.
6. Description of efforts made to obtain competition.
7. CO determination anticipated cost will be fair & reasonable.
8. Description of market research conducted.
9. Any other facts supporting other than full & open competitions to remove barrier.
10. List of sources expressing an interest.
11. Statement of actions to remove barriers to competition in follow-on.
12. CO Certification that justification is accurate & complete to best of their knowledge & belief.
13. Approved by proper authority
J&A
FAR 6.304
AFFARS MP 5306.304
(2016-05-31)
Q: What are the approval levels for an AF J&A?
Dollar Thresholds............Operational Contracting
<=$700K..................................Contracting Officer
>$700K<=$13.5M..................Competition Advocate
>$13.5M<=$93M........PEO/Head of Procuring Activity
>$93M......................Senior Procurement Executive
Synopsizing
FAR 5.202
(2016-05-31)
Q: What are the 13 exceptions to synopsizing a proposed action?
1. Under terms of existing contract.
2. Unusual and compelling urgency.
3. Industrial mobilization, essential engineering, expert for litigation.
4. Foreign Gov't Purchase.
5. Outside United States.
6. Authorized or required by statute.
7. Utility.
8. Order under the Small Business Innovation Development Act.
9. National security where disclosure can't be changed.
10. Below SAT, will be made through GPE, and permits electronic submittal of proposal.
11. Orders under IDIQ.
12. Acceptance of an unsolicited proposal.
13. Perishable subsistence supplies.
Bundling
FAR 7.107
(2016-05-31)
Q: What is bundling?
• Bundling is defined at FAR 7.107
• "Market research may indicate that bundling is necessary and justified if an agency or the Government would derive substantial benefits."
1. Cost savings, price reduction of 10% or 5% based on $ value (10% contract value < $94M or 5% contract value > $95M.
2. Quality, performance, or efficiency improvements.
3. Reduction in cycle times.
4. Better terms and conditions.
Services
FAR 8.002 (a)(2)
(2016-05-31)
Q: What is/are the mandatory source(s) of services per FAR?
1. Procurement List (Ability One)
Federal Prison Industries & FSS follow mandatory as recommended sources for Services
Organizational Conflicts of Interest
FAR Subpart 9.5
DFARS Subpart 209.5
AFFARS Subpart 5309.5
AFICA MP Guidance 5309.506
(2016-05-31)
Q: What is the definition of Organizational Conflicts of Interest?
OCI Defined
A conflict of interest of a government contractor that arises or may arise because the nature of the work to be performed may, absent some restriction on future activities, result in an UNFAIR COMPETITITVE ADVANTAGE to the contractor, impair the contractor's objectivity in performing the contract work, or make the contractor unable or potentially unable to render impartial assistance or advice to the government.
Recuse yourself even if you THINK there is a conflict of interest or a potential perception of.
Prevent the existence of conflicting roles that might bias judgement & PREVENT unfair competitive advantage.
Market Research
FAR 2.101, DFARS 210.001
(2016-05-31)
Q: Define market research and when should it be used?
"Market research" means collecting and analyzing information about capabilities within the market to satisfy agency needs.
• ...appropriate to the circumstances
• Considered fresh for 18 months
• Helps answer the Acq Plan questions about
- Commerciality
- Competition
- Customary practices
- Size and status of potential sources
Simplified Acquisition Procedures (SAP)
FAR 13, 13.3
(2016-05-27)
Q: List when SAP procedures can be used and the SAP methods available.
Each acquisition of supplies or services that has an anticipated dollar value exceeding $3,500 and not exceeding $150,000 is reserved exclusively for small business concerns and shall be set aside ($300,000 for acquisitions described in paragraph (1) of the Simplified Acquisition Threshold definition at 2.101). FAR 13.5 authorizes use of SAP procedures for commercial supplies and services up to $7M. Also may go up to $13M for items purchased in support of contingency operations or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack or the item is commercial IAW 12.102(f)(1).
Simplified Acquisition Methods (FAR 13.3):
Methods:
1. Governmentwide Commercial Purchase Card.
2. Purchase Orders.
3. Blanket Purchase Agreements (BPAs): Simplified method of filling anticipated repetitive needs for supplies or services by establishing "charge accounts'' with qualified sources of supply. BPAs may be established with a single firm, more than one supplier to provide maximum practicable competition or Federal Supply Schedule contractors.
4. Imprest Funds and Third Party Drafts.
Quotes
FAR 2.101, FAR 13.004
(2016-05-31)
Q: What is the legal effect of a quotation?
Legal Effect of Quotations: A quotation is not an offer and cannot be accepted by the Government to form a binding contract.
A contract is established when the supplier accepts the offer.
Quotation vs. Proposal
FAR 2.101: "Offer" means a response to a solicitation that, if accepted, would bind the Offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers.
Source Selection
FAR 2.101 and 3.104
(2016-05-31)
Q: What documents/submittals would be considered source selection information?
• Bid prices submitted in response to an agency invitation for bids, or lists of those bid prices before bid opening.
• Proposed costs or prices submitted in response to an agency solicitation, or lists of those proposed costs or prices.
• Source selection plans.
• Technical evaluation plans.
• Technical evaluations of proposals.
• Cost or price evaluations of proposals.
• Competitive range determinations that identify proposals that have a reasonable chance of being selected for award of a contract.
• Rankings of bids, proposals, or competitors.
• Reports and evaluations of source selection panels, boards, or advisory councils.
• Other information marked as "Source Selection Information - See FAR 2.101 and 3.104"
Truthful Cost or Pricing Data (formerly TINA)
FAR 15.403-1
(2016-05-31)
Q: What are the five exceptions to Truthful Cost or Pricing Data?
Truthful Cost or Pricing Data is for actions over $750k
Exceptions:
1. Price based on adequate competition.
2. Prices set by law or regulation (e.g., utilities).
3. If the item is commercial in nature.
4. Truthful Cost or Pricing Data waiver has been granted by HCA.
5. When modifying a contract or subcontract for commercial items (e.g., C-130 is a commercial item, Ktr. Didn't want to give us their data)
NEVER At or below the SAT
Normally, APC establishes a fair & reasonable price.
Director of Procurement Memo (2019) states expecting 2 or more offers is NOT enough to call it APC
Multiple Award IDIQ
FAR 16.505(b)(2), DFARS 216.5, AFFARS 5316.5, MP5316.504
(2016-05-31)
Q: What are the six exceptions to fair opportunity with multiple award IDIQs?
1. Only one awardee is capable at the level of quality required because the supplies or services ordered are unique or highly specialized.
2. No expectation that anyone else can complete follow on action. It is in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.
3. Urgency - need so urgent that providing a fair opportunity would result in unacceptable delays.
4. Minimum guarantee order necessary to place an order to satisfy a minimum guarantee.
5. Statute authorizes or requires that the purchase be made from single source.
6. Compete only among small business IAW section 1331 of Public Law 111-240.
Clearance
AFFARS 5301.90
(2016-05-31)
Q: What is the purpose of clearance?
AIR FORCE ONLY
The objectives of the business and contract clearance process are to ensure that:
1. Contract actions effectively implement approved acquisition strategies.
2. Negotiations and contract actions result in fair and reasonable business arrangements.
3 Negotiations and contract actions are consistent with laws, regulations, and policies.
4. An independent review and assessment (e.g., by the clearance authority) for the proposed contract action is accomplished.
The clearance approval authority must ensure that the clearance process meets the objectives in paragraph (a) above.
Source Selection Decision Document (SSDD)
FAR 15.308
(2016-05-27)
Q: What information has to be included on a source selection decision document?
The source selection decision shall be documented, and the documentation shall include the rationale for any business judgments and tradeoffs made or relied on by the SSA, including benefits associated with additional costs. Although the rationale for the selection decision must be documented, that documentation need not quantify the tradeoffs that led to the decision.
Contract Type
FAR 16.202
(2016-05-31)
Q: When should a firm-fixed price contract be used?
FFP Suitable for:
1. Commercial services or supplies.
2. Other than commercial items when there is adequate price competition and supplies or services can be acquired on the basis of reasonably definite functional or detailed specifications when the contracting officer can establish fair and reasonable prices at the outset.
FFP When to Use:
1. Requirement is well-defined; reasonably definite design or performance spec available.
2. Fair and reasonable pricing can be established at outset; adequate price competition.
3. Prior purchase experience (same or similar) of supplies/services in a competitive environment.
4. Valid cost or pricing data.
5. Realistic estimates of proposed costs.
6. Possible uncertainties in performance can be identified and costed.
7. Contractor experienced willing to accept contract at a level which causes them to take all financial risks.
8. Any other reasonable basis for pricing can be used to establish fair and reasonable pricing.
9. Market conditions are stable.
10. Financial risks are otherwise insignificant
Contract Type
FAR 16.302.303
AFMC MP 5316.3
(2016-05-31)
Q: When should a cost type contract be used?
Definition: Cost-Reimbursement type contracts provide for payment to the contractor of allowable incurred costs to the extent provided in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the contracting officer.
16.301-2 -- Application.
(a) The contracting officer shall use cost-reimbursement contracts only when—
(1) Circumstances do not allow the agency to define its requirements sufficiently to allow for a fixed-price type contract (see 7.105); or
(2) Uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract
The use of cost-reimbursement contracts is prohibited for the acquisition of commercial items (see Parts 2 and 12).
Contract Type
FAR 16
(2016-05-31)
Q: What are the six main contract types?
1. Subpart 16.2 -- Fixed-Price Contracts.
2. Subpart 16.3 -- Cost-Reimbursement Contracts.
3. Subpart 16.4 -- Incentive Contracts.
4. Subpart 16.5 -- Indefinite-Delivery Contracts.
5. Subpart 16.6 -- Time-and-Materials, Labor-Hour, and Letter Contracts.
6. Subpart 16.7 -- Agreements
Contract Type
FAR 16.601, DFARS 216.601, AFFARS 5316.6, AFMC MP 5316.6
(2016-05-31)
Q: When can a time & material contract be utilized and what must go into the mandatory determination and finding document?
T&M
The LEAST preferred contract type
Use ONLY when no other contract type is suitable & it is NOT possible to estimate extent ur duration of the work
Requires a written D&F
Must include a ceiling price that the contractor exceeds at its own risk
The D&F must:
1. Include a description of market research conducted.
2. Establish that it is not possible at the time of placing the contract or order to accurately estimate the extent or duration of the work or to anticipate costs with any reasonable degree of certainty.
3. Address why CPFF or other CR, incentive, or FP contract is not appropriate.
4. Establish that the requirement has been structured to minimize the use of T &M and labor-hour requirements.
5. Describe the actions planned to minimize the use of T &M/labor hour contracts on future acquisitions for the same requirements.
Multi-Year vs Multiple Year
FAR Part 17
(2016-05-31)
Q: What is the difference between a multi-year and multiple year contract?
The key distinguishing feature difference between multi-year contracts and multiple year contracts is that multi-year contracts, defined in the statutes cited in FAR 17.101, buy more than 1 year's requirement (of a product or service) without establishing and having to exercise an option for each program year after the first.
Multi-year contracting is a special contracting method to acquire known requirements in quantities and total cost not over planned requirements for up to 5 years unless otherwise authorized by statutes, even though the total funds ultimately to be obligated may not be available at the time of contract award. This method may be used in sealed bidding or contracting by negotiation.
Multi-year contracting is a flexible contracting method applicable to a wide range of acquisitions. The extent to which cancellation terms are used in multi-year contracts will depend on the unique circumstances of each contract. Accordingly, for multi-year contracts, the agency head may authorize modification of the requirements of this subpart and the clause at 52.217-2, Cancellation under Multi-Year Contracts.
Assistance Instruments
FAR 35.003
(2016-05-31)
Q: What are the two types of assistance instruments?
1. Grant - May not be used when Government wants involvement in the process.
2. Cooperative Agreement - Substantial involvement between the Government and the Contractor.
Options
FAR 2.101 & 17.2, DFARS 217.2, AFFARS 5317.2, AFMC MP 5317.2
(2016-05-31)
Q: What is an option and when should and shouldn't it be used?
FAR 2.101 - A unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract.
Need a D& F upon award & upon exercise of each option.
USE WHEN:
FAR 17.202 - When it is in the Government's interest.
SHOULD NOT USE when:
1. Minimum economic quantities.
2. Rqmt far into the future to permit competitive acquisitions.
3. An ID or rqmts contracts would be appropriate.
4. Contractor incurs undue risk.
5. Market prices are likely to change substantially (may use an Economic Price Adjustment).
6. The option represents firm rqmts which funds are available unless
a. basic qty is a learning or testing qty and
b. Competition for the option is impracticable once the contract is awarded.
Socioeconomic Categories
FAR 19
(2016-05-31)
Q: What are the socioeconomic categories used in Federal contracting?
There is no order of precedence among the 8(a) Program (subpart 19.8), HUBZone Program (subpart 19.13), Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (subpart 19.14), or the Women-Owned Small Business (WOSB) Program (subpart 19.15).
Socioeconomic Categories
1. 8(a) Program (subpart 19.8)
2. HUBZone Program (subpart 19.13)
3. Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (subpart 19.14)
4. Women-Owned Small Business (WOSB) Program (subpart 19.15).
Set Asides
FAR 19.502-3
(2016-05-31)
Q: When should a partial set-aside be utilized in a procurement?
• Provides for a single DD Form 2579 to be processed covering all orders to be written where a set-aside decision is not required.
• Interim Policy maintained until incorporated in AFICA Mandatory Procedures.
PARTIAL SET-ASIDE (19.502-3):
CO's shall set aside a portion of an acquisition, except for construction, for exclusive small business participation when:
1. Total set aside is not appropriate (19.502-2);
2. The requirement is severable;
3. One or more SB concerns are expected to have the technical competence and productive capacity to satisfy the set-aside portion of the requirement at a fair market price;
4. The acquisition is not subject to SAP.
5. A partial set-aside shall not be made if there is a reasonable expectation that only two concerns (one large and one small) with capability will respond with offers unless authorized by the head of a contracting activity on a case-by-case basis.
Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 Statute
FAR 22.6, DFARS 22
(2016-05-27)
Q: What is the Walsh-Healey Act?
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
Public Law
FAR 22.6, DFARS 22
(2016-05-31)
Q: What are the exceptions to the Walsh-Healey Act?
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.
Public Law
FAR 22.802
(2016-05-31)
Q: What is EEO?
Definition: Equal Employment Opportunity (EEO)
22.802 -- General.
(a) Executive Order 11246, as amended, sets forth the Equal Opportunity clause and requires that all agencies --
(1) Include this clause in all nonexempt contracts and subcontracts (see 22.807); and
(2) Act to ensure compliance with the clause and the regulations of the Secretary of Labor to promote the full realization of equal employment opportunity for all persons, regardless of race, color, religion, sex, sexual orientation, gender identity, or national origin.
(b) No contract or modification involving new acquisition shall be entered into, and no subcontract shall be approved by a contracting officer, with a person who has been found ineligible by the Deputy Assistant Secretary for reasons of noncompliance with the requirements of E.O. 11246.
(c) No contracting officer or contractor shall contract for supplies or services in a manner so as to avoid applicability of the requirements of E.O. 11246.
(d) Contractor disputes related to compliance with its obligation shall be handled according to the rules, regulations, and relevant orders of the Secretary of Labor (see 41 CFR 60-1.1).
affirmative action programs within 120 days
Public Law
USC Title 10, DFARS 225.7002
(2016-05-31)
Q: What is the Berry Amendment?
What it is: a domestic sourcing requirement for specialty metals, textiles, food stuffs and other specified items, applies only to Department of
Defense (DOD)
The Berry Amendment limits the use of funding appropriated or otherwise made
available to DOD from being used to buy certain end items, components, or materials unless they are wholly of US origin or, in some circumstances, sourced from a qualifying country.
Remedies if a competition indicates that the Berry Amendment can't be met:
1. Change product(s) so that offerors can comply with the BA.
2. Write a Determination of Domestic Non-Availability.
Financing
FAR 32.102
(2016-05-31)
Q: What are the methods of contract financing?
(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.
Contract Clauses
FAR 32.706-2
(2016-05-31)
Q: What is the difference between "the limitation of cost clause" and "the limitation of funds clause"?
32.706-2 -- Clauses for Limitation of Cost or Funds.
Limitation of Cost Clause
-Application - Use on fully funded cost reimbursement contracts.
-Does: Limits obligation to estimated cost plus fee.
Limitation of Funds
-Application-Used on incrementally funded cost contracts.
-Does: Limits obligation to amount obligated under the contract.
Protests
FAR 33.10
(2016-05-31)
Q: When is a protest possible?
A written objection by an interested party to any of the following:
1. A solicitation.
2. The cancellation of the solicitation or other request.
3. An award or proposed award of the contract.
4. A termination or cancellation of an award of the contract
Clauses
52.233-2: >$150k
52.233-3: Shall be in all solicitations and contracts
Terminations
FAR 49.402-3
(2016-05-31)
Q: What are the steps leading to termination?
1. Cure Notice - Used if there are more than 10 days left on contract. Must be left out a minimum of 10 days.
2. Show Cause - Used when there is less than 10 days left on the contract and/or there isn't enough time on the contract for the KTR to fix.
3. Termination Notice
Terminations
FAR 49.4; FAR 49.502
(2016-05-31)
Q: What are the types of terminations and when are they used?
1. Termination for Default (non-commercial) - Actual or anticipated failure to perform its contractual obligations.
2. Termination for Convenience (commercial or non-commercial) - Government's requirement has changed. The Government is responsible for actual costs.
3. Termination for cause (commercial) - Actual or anticipated failure to perform its contractual obligations.
Delays
FAR 52.249-14 IAW FAR 49.505
(2016-05-31)
Q: What is the definition of an excusable delay and when shall the applicable clause be placed in the contract?
Excusable Delay. The Contractor shall not be in default because of any failure to perform this contract under its terms if the failure arises from causes beyond the control and without the fault or negligence of the Contractor.
The contracting officer shall insert the clause at 52.249-14, Excusable Delays, in solicitations and contracts for supplies, services, construction, and research and development on a fee basis, when a cost-reimbursement contract is contemplated. The contracting officer shall also insert the clause in time-and-material contracts, and labor-hour contracts.
Alternative Dispute Resolution (ADR)
FAR 33.214, AFFARS 5333.214
(2016-05-31)
Q: What is ADR and when should it be utilized?
Definition: Alternative Dispute Resolution refers to any means of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration. The acquisition team must use ADR to the maximum extent practicable (see AFPD 51-12, Alternate Disputes Resolution). ADR must also be used to resolve protests to the maximum extent practicable. The acquisition team must attempt to use ADR prior to the commencement of litigation once unassisted negotiations have reached an impasse. Further, ADR must be offered in litigation, unless one of the exceptions in 5 U.S.C. 572(b) applies or the policy set forth by Deputy General Counsel (Contractor Responsibility & Conflict Resolution (SAF/GCR)) indicates that ADR is not appropriate.
Contract Type
FAR 16.603-2
(2016-05-31)
Q: What are the reasons to use a letter contract?
1. The Government's interest demand that the contractor be given a binding commitment so that work can start immediately and;
2. Negotiating a definitive contract is not possible in sufficient time to meet the requirement.
Bundling
FAR 7.107
(2016-05-31)
Q: What are the parameters for justifying bundling?
1. Cost savings, price reduction of 10% or 5% based on $ value (10% contract value < $94M or 5% contract value > $95M)
2. Quality, performance, or efficiency improvements.
3. Reduction in cycle times.
4. Better terms and conditions.
Warranties
FAR 46.303
(2016-05-31)
Q: What are exceptions to warranties in cost-reimbursement contracts?
1. 52.246-3 Inspection of Supplies - Cost Reimbursement.
2. 52.246-8 Inspection of R&D.
3. 252.246-7001 Clause for Warranty of Data.
Synopsizing
FAR 5.202
(2016-05-31)
Q: What are the 13 exceptions to synopsizing proposed actions?
1. National security where disclosure can't be changed.
2. Unusual and compelling urgency.
3. Foreign Government purchase.
4. Authorized or required by statute.
5. Utility - Only one source available.
6. Orders under an IDIQ contract.
7. Orders under the Small Business Innovation Development Act.
8. Acceptance of an unsolicited proposal.
9. Perishable subsistence supplies.
10. Industrial mobilization, essential engineering, expert for litigation.
11. Under terms of existing contract.
12. Outside the United States.
13. Below SAT, will be made thru GPE, permits electronic submittal of proposal.
Price Reasonableness vs. Price Realism
FAR 15.305; FAR 15.404-1(d)(3)
(2016-05-31)
Q: What is the difference between price reasonableness and price realism?
1. Price reasonableness - Answers the question is the price to be paid too much.
2. Price Realism - Looks at the risk of a low-priced proposal and whether or not an offerors price is overly optimistic or impractically low. (Note: If called out in the solicitation, price realism must be done).
Debriefing
FAR 15.505
(2016-05-31)
Q: What elements must be covered in a pre-award debriefing?
1. The Agency's evaluation of significant elements.
2. A summary of rationale for eliminating the offeror.
3. Reasonable responses to relevant questions whether the process was followed.
Debriefing
FAR 15.506
(2016-05-31)
Q: What elements must be covered in a post-award debriefing?
1. The Agencies evaluation of significant weaknesses or deficiencies.
2. The technical and price comparison of successful offeror vs. the unsuccessful offeror.
3. A summary of the rationale for award.
4. Rankings (if developed).
5. Make and model of item(s) (if commercial item).
6. Reasonable responses to relevant questions whether the process was followed.
Price Evaluation
FAR 15.404-1(b)(2)
(2016-05-31)
Q: List price evaluation techniques from the most preferred to the least preferred method.
1. Comparison of proposed prices (competition).
2. Comparison with historical pricing.
3. Parametric estimating methods.
4. Competitive (published) price lists.
5. Independent Government Estimate (IGE).
6. Compare to cost estimates as found in the market research document.
7. Analysis of data other than certified cost or pricing data.
Defective Pricing
FAR 15.407
(2016-05-31)
Q: What is defective pricing?
Defective pricing is the contractor's failure to provide current, accurate, and complete data at the conclusion of negotiations that resulted in an increase to the contract price.
Responsible Contractor
FAR 9.104
(2016-05-31)
Q: What are the elements of a responsible contractor?
1. Adequate financial resources.
2. Be able to complete the required delivery, taking into consideration existing commercial and Government business.
3. Have a satisfactory performance record.
4. Have a satisfactory record of business ethics and integrity.
5. Have necessary organization, experience, accounting, and technical skills or the ability to have them.
6. Have the necessary production, construction, and technical equipment or facilities, or the ability to obtain them.
7. Be otherwise qualified and eligible to receive an award.
Responsible Contractor
FAR 9.104
(2016-05-31)
Q: What sources can be used to help determine whether a contractor is responsible?
1. Past performance questionnaires.
2. Past Performance Information Retrieval System (PPIRS).
3. Review of Electronic Data Access (EDA) entries.
4. Federal Awardee Performance & Integrity Information System (FAPIIS).
5. Personal experience from your contracting office or other contracting offices.
6. Pre-award survey report.
7. Excluded Parties List as found in the System for Award Management (SAM).
Finance
FAR 32.10
(2016-05-31)
Q: What is the difference between performance-based payments and progress-based payments?
Performance-based payments - Used in non-commercial firm-fixed price contract actions. 90% is paid at each milestone and the remaining 10% is paid at the conclusion of the contract. Payment must be made on defined codes only.
Progress-based payments - Based on actual costs incurred for cost type contracts. 80% payment is customary or 85% for small business.
Nonmanufacturer Rule
FAR 19.102 (f)(1)
(2016-05-31)
Q: What is the Nonmanufacturer's Rule?
Small business set-aside for actions greater than or equal to $25K. The business must supply the product of a small business manufacturer. This rule applies to supply contracts only and DOES NOT apply to services. The product may come from a large business if SBA issues a waiver (exception). The small business must take possession of product before shipping to the Government.
Strategic Sourcing
AFICA Website
(2016-05-26)
Q: What are the seven steps of strategic sourcing?
AIR FORCE ONLY
1. Sourcing Team. Process map, process step descriptions, tools, and training.
2. Current strategy review.
3. Market intelligence.
4. Requirements definition.
5. Sourcing strategy development.
6. Strategy execution.
7. Performance management.
Spend Analysis
AFICA Website
(2016-05-31)
Q: What are some of the factors which will be considered in an Air Force spend analysis?
AIR FORCE ONLY
1. Total Project Spend. Look at how much money has been spent by the AF over the historic period of interest.
2. Spend by Specific Contractor.
3. Spend by Specific Business Type.
4. Historical Spend by Fiscal Year
5. Spend by Fiscal Year by Quarter.
6. Spend by MAJCOM.
7. Spend by Socio-economic Award Type.
8. Spend by Business Type (Large v. Small).
Better Buying Power
http://bbp.dau.mil
(2016-05-31)
Q: What are the seven BBP Focus Areas?
1. Achieve Affordable Programs
2. Control Costs Throughout the Product Lifecycle.
3. Incentivize Productivity and Innovation in Industry and Government.
4. Eliminate Unproductive Processes and Bureaucracy.
5. Promote Effective Competition.
6. Improve Tradecraft in Acquisition of Services.
7. Improve the Professionalism of the Total Acquisition Workforce.
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