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Warrant Board (SAT)

Terms in this set (43)

What are some of the benefits of competition? What Government inadequacies or mistakes in the specifications/PWS could cause a lack of competition?
Benefits: Better price, innovative solutions, more choices, allows strengths and weaknesses of vendors to be identified, allows us to spread the wealth

Inadequacies: Poorly defined requirement, too restrictive specifications (i.e. brand name), proprietary technology, lack of market research, customer loyalty (i.e. RA happy with current contractor)
When acquiring commercial items, what contract type(s) are normally used? What type(s) are prohibited?
FAR 12.207: FFP, FFP w/EPA and TM/LH are acceptable. Any type of cost contracts or CLINs are prohibited.
Why is it important to fully document the contract file? What is the current required methodology for maintaining the history of each action?
- For continuity and legal purposes. Your file should tell the story so anyone can come in and take it over. For legal purposes, you want to have all the proper documentation in case of a protest, claim, etc.

-Entries for each action should be made in PCF acquisition milestones using the comments field. The complete file chronology can be printed out using "export" function.
What is price analysis & what are some of the methods used?
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.
As cited at FAR Part 12.403 Termination, the clause at 52.212-4 permits the Government to terminate a contract for commercial items either for the convenience of the Government or for cause. Please explain the difference between these two types of terminations.
Termination for cause.

- The paragraph in 52.212-4 entitled "Excusable Delay" requires contractors notify the contracting officer as soon as possible after commencement of any excusable delay. In most situations, this requirement should eliminate the need for a show cause notice prior to terminating a contract. The contracting officer shall send a cure notice prior to terminating a contract for a reason other than late delivery.

- The Government's rights after a termination for cause shall include all the remedies available to any buyer in the marketplace. The Government's preferred remedy will be to acquire similar items from another contractor and to charge the defaulted contractor with any excess reprocurement costs together with any incidental or consequential damages incurred because of the termination.

In almost all cases of termination for cause, the Gov't can use the remaining funds to re-procure. This becomes an issue with many of our small ACS and Chaplain services contracts; A spouse needs to PCS and the Gov't is reluctant to call that a termination for cause, but if we don't, the garrison loses the funding to re-establish the services.

Termination for the Government's convenience.

When the contracting officer terminates a contract for commercial items for the Government's convenience, the contractor shall be paid -

- The percentage of the contract price reflecting the percentage of the work performed prior to the notice of the termination for fixed-price or fixed-price with economic price adjustment contracts, or
- An amount for direct labor hours (as defined in the Schedule of the contract) determined by multiplying the number of direct labor hours expended before the effective date of termination by the hourly rates(s) in the Schedule; and
- Any charges the contractor can demonstrate directly resulted from the termination. The contractor may demonstrate such charges using its standard record keeping system and is not required to comply with the cost accounting standards or the contract cost principles in Part 31. The Government does not have any right to audit the contractor's records solely because of the termination for convenience.

Generally, the parties should mutually agree upon the requirements of the termination proposal. The parties must balance the Government's need to obtain sufficient documentation to support payment to the contractor against the goal of having a simple and expeditious settlement.
What determines a "personal" vs. "nonpersonal" services contract?
Personal:
1. Appearance of employer/employee relationship between Govt and contractor
2. Requires HCA approval
3. Only authorized by law

Nonpersonal:
1. Consumer/provider relationship
2.Contractor directs his employees
Define market research and why we do it. What are some examples of techniques for market research?
Market research means collecting and analyzing information about capabilities within the market to satisfy agency needs.

Market research is conducted to—
Ø Determine if commercial items or non-developmental items are available to meet the Government's needs.
Ø Customary practices regarding customizing, modifying or tailoring of items to meet customer needs and associated costs;
Ø Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products are made;
Ø The requirements of any laws and regulation unique to the item being acquired;
Ø The availability of items that contain recovered material and items that are energy efficient
Ø The distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and
Ø Size and status of potential sources
Some techniques are --
Ø Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements;
Ø Reviewing the results of recent market research undertaken to meet similar or identical requirements;
Ø Publishing formal requests for information in appropriate technical or scientific journals or business publications;
Ø Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other source;
Revising catalogs and other general available product literature published by manufacturers, distributors, and dealers or available on-line.
FAR 12 is used in conjunction with the policies and procedures for solicitation, evaluation and award prescribed in what other parts of the FAR?
Part 13, Simplified Acquisition Procedures
Part 14, Sealed Bidding
Part 15, Contracting by Negotiation
Explain the legal effect of quotations and how a contractor indicates acceptance of a purchase order?
A quotation is not an offer and, consequently, cannot be accepted by the Government to form a binding contract. Therefore, issuance by the Government of an order in response to a supplier's quotation does not establish a contract. The order is an offer by the Government to the supplier to buy certain supplies or services upon specified terms and conditions. A contract is established when the supplier accepts the offer.

Supplier may indicate its acceptance of an order by notification to the Government, preferably in writing.Supplier may indicate acceptance by furnishing the supplies or services ordered or by proceeding with the work to the point where substantial performance has occurred.
Bona Fide Needs Rule. What is the Bona Fide Needs Rule? Is it possible to fund a severable service
contract with current year funds when the period of performance crosses fiscal years?
The Bona Fide Needs rule is essentially a timing rule that requires both the timing of the obligation and the bona fide need to be within the fund's period of availability. 10 USC 2410a allows DOD to obligate funds current at the time of contract award to finance a severable service contract with a period of performance that does not exceed one year.

Determine whether funds are available in the same fiscal year as the Gov't need.

- Service Contracts - need is determined by the year the Contractor will perform the service
- Supply Contracts - need is determined by date Gov't will actually be able to use the supplies

Exceptions are long lead time and stock level.
On 3 Sep 15 the CO awarded a contract for computer purchases using FY15 O&M funds. The
computers were to be delivered upon completion of a new building expected sometime early in FY 16, but the contractor could have delivered the computers almost immediately upon contract award. Are there any fiscal issues here?
Authority: 31 USC 1502(a) "Bona Fide Needs Rule"
Yes.O&M funds are current for one year.You cannot cross FYs unless there is an exception.This could be considered a violation of the bona fide need rule as the computers were for next year's requirement.The lead-time exception does not apply since the delivery delay is based on the government's request and not the reality of when the contractor could actually deliver the computers.
Describe the Anti-deficiency Act (ADA) and list some actions that would constitute a violation of it. What are the potential penalties for a violation of the ADA?
Potential violations include: (1) Making or authorizing an expenditure or obligation exceeding an amount available in an appropriation unless authorized by law; (2) involve the government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law; (3) make or authorize an expenditure or obligation exceeding an apportionment (or the amount permitted by regulations); (4) accept voluntary services [for the United States] or employ personal services... except for emergencies involving the safety of human life or the protection of property or unless authorized by law.

Penalties include adverse personnel actions (even when there is a good faith error or mistake of fact) and criminal penalties. Adverse personnel actions include suspension without pay, removal from office. Military may be subject to action under the UCMJ. For a violation to be a felony, it must be a knowing and willful violation and may include a $5,000 fine, confinement for up to two years, or both.
When do you have adequate price competition?
Ø Offers are solicited
Ø Two or more responsive/responsible offerors
Ø Independent competition (No collusion)
What can the KO do when the Contractor is late on deliveries?
Ø Seek consideration from the contractor
Ø Withhold progress payments.
Ø Increase the liquidation rate
Ø Terminate for cause/default
What is the difference between obligation and commitment of funds?
Ø Obligation - Act legally binding the Government to make payment (liability resulting from a contractual action i.e., supplemental agreement).
Commitment - The administrative reservation of funds in anticipation of future obligation.
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