CORB STUDY QUESTIONS & ANSWERS
1. Under what circumstances is ratification of an unauthorized commitment permitted? -
Answers :If the contract award would have been proper if executed by a warranted
PCO, the price can be determined to be fair and reasonable, and there must have been
enough of the proper type of funding available to pay for the item both at the time of the
commitment and at the time of the ratification.
In general, what are the generic procedures for handling ratification actions? - Answers
:Legal review is required.
An investigation is required to be completed within 30 days of discovery of the
unauthorized commitment explaining
-how and why it occurred,
-how future occurrences will be avoided, and
-describing any corrective actions taken against responsible individuals.
Who are the approval authorities for ratifications? - Answers :The ratification approving
official for all unauthorized commitments valued at or above $1M is the Senior
Procurement Executive (SPE).
The ratification approving official for all Non-DISA unauthorized commitments
(regardless of amount) and DISA unauthorized commitments valued below $1M is the
Head of Contracting Activity (HCA). (DARS 1.602-3(b)(2))
Under 10K is the CCC.
What is the purpose of ratification? - Answers :A ratification is the act of approving an
unauthorized commitment.
What conditions must first be met before ratification? - Answers :Unauthorized
commitments may be ratified only when the conditions of FAR 1.602-3(c) are met.
o Use of appropriated funds
o Provided to or accepted by the Government - received a benefit
o Ratification official has the authority to ratify
o Resulting contract must otherwise be proper
o Price must be fair & reasonable
o Funds are available and were available at the time the action occurred
o The Contracting Officer recommends payments and legal concurs
o It is IAW the requirements and limitations
Currently there is a non-Government contractor employee who is working in a unique
technical area. A new source selection is planned, and the technical director would like
to make this contractor employee chief of the technical evaluation team. As such, this
employee would be a voting member of the source selection board. Is it permissible to
,have a non-Government contractor employee as chief of the technical evaluation team
and a voting member of the source selection board? - Answers :It is not permissible to
have a non-Government employee as a voting member of any source selection board.
FAR 7.503 states that contracts shall not be used for the performance of inherently
governmental functions. Inherently governmental functions include, but not all inclusive:
control of criminal investigations or prosecutions, command of military forces,
determination of agency policy and application of regulations, determining budget
priorities, and direction and control of federal employees, among others.
What are Inherently Governmental Functions? - Answers :FAR 7.503
A function that is so intimately related to the public interest as to mandate performance
by government employees. These functions include those activities that require either
the exercise of discretion in applying government authority or the making of value
judgments in making decisions for the Government.
Two categories:
o The Act of Governing
o Monetary transactions and entitlements
Some examples of inherently governmental functions which involve the interpretation
and execution of the laws of the U.S. are: - Answers :o To bind the U.S. to take or not to
take some action by contract, policy, regulation, authorization, or order
o To determine, protect, and advance its economic, political, territorial, property or other
interest by military or diplomatic action or criminal judicial proceedings or contract
management
o To significantly affect the life, liberty, or property of private persons
o To commission, appoint, direct or control officers of U.S. employees
o To exert ultimate control over the acquisition, use or disposition of U.S. property
including the collection, control, or disbursement of federal funds
1. You are the Contracting Officer for a follow-on buy source selection. The current
effort has had the same Program Manager for over 10 years. She began as the PM
while still a Military Officer and then retired and was re-hired as an A&AS employee to
continue to manage the program. She has extensive experience on the program and is
considered a primary "Go To" person for all Program-related managerial issues. The
Program Director fully wants to utilize the PM's experience possible and has proposed
that the PM be listed as chief of the technical evaluation team and a voting member of
the source selection board. Is it permissible to have a non-Government employee
(A&AS contractor) as chief of the technical evaluation team and a voting member of the
source selection board? - Answers :It is not permissible to have a non-Government
employee as a voting member of any source selection board.
FAR 7.503(c)(12)(ii). FAR policy states that contracts shall not be used for the
performance of inherently governmental functions.
,OMB may review Agency decisions to determine whether a function is or is not an
inherently governmental function, but a list of examples is in FAR 7.503(c). They include
-control of criminal investigations or prosecutions,
-command of military forces,
-determination of agency policy and application of regulations,
-determining budget priorities, and
-direction and control of federal employees.
Specifically, included in this list are determining what supplies or services shall be
acquired by the Government on a prime contract and being a voting member of any
source selection boards.
1. Expired Contract. You have a contract for engineering services with a basic period of
performance and several one-year options for continued performance. The contract
states that all options must be exercised by 1 October of each year. The basic period of
performance has just expired and on 5 October you realize that you never exercised the
option for continued performance. There is still an immediate need for the services. How
would you try to rectify this situation? - Answers :Once the option has expired there is
no contract. Contract is dead.
If the requirement still exists, other options are to
-do a new contract (with a J&A);
-borrow capacity from other Districts; or
-re-solicit if time allows.
What six things must the PCO do before exercising an Option? - Answers :FAR 17.207
● Make sure that funds are available.
● Make sure that the requirement fulfills an existing Government need.
● Exercising the option is the most advantageous method price and other factors
considered.
● The option was synopsized IAW FAR 5 or exempted from synopsis.
● The PCO should have a written D&F in the file to use options.
● The PCO should also consider if the contractor is responsible and performance is
satisfactory.
When utilizing the appropriate option clause, what is the maximum time limit and how
long are rates good for? - Answers :FAR 52.217-8 state we can extend for an additional
6 months at the same rates evaluated at the time of proposal.
The KO can invoke the dash 8 clause if it is included in the base contract.
How to rectify an expired option? - Answers :Once the option is expired, there is no
contract.
, The Contracting Officer may have to prepare a J&A depending on the original
authorizations and enter into a bilateral agreement with the Contractor to obtain
continued performance by the same Contractor.
The Contractor is entitled to renegotiate the price.
The Contracting Officer can also look at:
o Borrowing capacity
o Solicit other districts
o Resolicit the contract
Please define a Certificate of Current Cost or Pricing Data. - Answers :A Certificate of
Current Cost or Pricing Data certifies that to the best of the company's knowledge, the
cost or pricing data submitted 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.
What is the purpose of a Certificate of Current Cost or Pricing Data? - Answers :The
purpose is to have the company commit as to the accuracy, completeness, and
currency of submitted data. If the data is later found to be incorrect or appropriate data
was not submitted, the Government reserves the right to a downward contract price
adjustment for any monetary damages incurred.
What are some of the key things you would expect to see or review before accepting
the certificate? - Answers :Key things expected in a Certificate are:
-The certificate is in the format shown in FAR 15.406-2;
-Current as of the date of agreement on price or an earlier agreed upon date;
-Signed by an authorized representative of the company and dated as close as
practicable to the date when price negotiations were concluded.
What are the exceptions to Certificate of Current Cost or Pricing Data? - Answers :FAR
15.403-1(b)
a. Adequate price competition
b. Prices set by law or regulation
c. Commercial Item
d. Waiver has been granted
e. Mod to a contract or subcontract for commercial items
What dollar threshold would you require a certificate of current cost or pricing data? -
Answers :$750,000 before July 1, 2018
$2 million after July 1, 2018
What are the five (5) TINA Exceptions? - Answers :o Adequate price competition
o Price set by law or regulation - very, very RARE!! (An example is prices set by
local/regional Government utilities.)
1. Under what circumstances is ratification of an unauthorized commitment permitted? -
Answers :If the contract award would have been proper if executed by a warranted
PCO, the price can be determined to be fair and reasonable, and there must have been
enough of the proper type of funding available to pay for the item both at the time of the
commitment and at the time of the ratification.
In general, what are the generic procedures for handling ratification actions? - Answers
:Legal review is required.
An investigation is required to be completed within 30 days of discovery of the
unauthorized commitment explaining
-how and why it occurred,
-how future occurrences will be avoided, and
-describing any corrective actions taken against responsible individuals.
Who are the approval authorities for ratifications? - Answers :The ratification approving
official for all unauthorized commitments valued at or above $1M is the Senior
Procurement Executive (SPE).
The ratification approving official for all Non-DISA unauthorized commitments
(regardless of amount) and DISA unauthorized commitments valued below $1M is the
Head of Contracting Activity (HCA). (DARS 1.602-3(b)(2))
Under 10K is the CCC.
What is the purpose of ratification? - Answers :A ratification is the act of approving an
unauthorized commitment.
What conditions must first be met before ratification? - Answers :Unauthorized
commitments may be ratified only when the conditions of FAR 1.602-3(c) are met.
o Use of appropriated funds
o Provided to or accepted by the Government - received a benefit
o Ratification official has the authority to ratify
o Resulting contract must otherwise be proper
o Price must be fair & reasonable
o Funds are available and were available at the time the action occurred
o The Contracting Officer recommends payments and legal concurs
o It is IAW the requirements and limitations
Currently there is a non-Government contractor employee who is working in a unique
technical area. A new source selection is planned, and the technical director would like
to make this contractor employee chief of the technical evaluation team. As such, this
employee would be a voting member of the source selection board. Is it permissible to
,have a non-Government contractor employee as chief of the technical evaluation team
and a voting member of the source selection board? - Answers :It is not permissible to
have a non-Government employee as a voting member of any source selection board.
FAR 7.503 states that contracts shall not be used for the performance of inherently
governmental functions. Inherently governmental functions include, but not all inclusive:
control of criminal investigations or prosecutions, command of military forces,
determination of agency policy and application of regulations, determining budget
priorities, and direction and control of federal employees, among others.
What are Inherently Governmental Functions? - Answers :FAR 7.503
A function that is so intimately related to the public interest as to mandate performance
by government employees. These functions include those activities that require either
the exercise of discretion in applying government authority or the making of value
judgments in making decisions for the Government.
Two categories:
o The Act of Governing
o Monetary transactions and entitlements
Some examples of inherently governmental functions which involve the interpretation
and execution of the laws of the U.S. are: - Answers :o To bind the U.S. to take or not to
take some action by contract, policy, regulation, authorization, or order
o To determine, protect, and advance its economic, political, territorial, property or other
interest by military or diplomatic action or criminal judicial proceedings or contract
management
o To significantly affect the life, liberty, or property of private persons
o To commission, appoint, direct or control officers of U.S. employees
o To exert ultimate control over the acquisition, use or disposition of U.S. property
including the collection, control, or disbursement of federal funds
1. You are the Contracting Officer for a follow-on buy source selection. The current
effort has had the same Program Manager for over 10 years. She began as the PM
while still a Military Officer and then retired and was re-hired as an A&AS employee to
continue to manage the program. She has extensive experience on the program and is
considered a primary "Go To" person for all Program-related managerial issues. The
Program Director fully wants to utilize the PM's experience possible and has proposed
that the PM be listed as chief of the technical evaluation team and a voting member of
the source selection board. Is it permissible to have a non-Government employee
(A&AS contractor) as chief of the technical evaluation team and a voting member of the
source selection board? - Answers :It is not permissible to have a non-Government
employee as a voting member of any source selection board.
FAR 7.503(c)(12)(ii). FAR policy states that contracts shall not be used for the
performance of inherently governmental functions.
,OMB may review Agency decisions to determine whether a function is or is not an
inherently governmental function, but a list of examples is in FAR 7.503(c). They include
-control of criminal investigations or prosecutions,
-command of military forces,
-determination of agency policy and application of regulations,
-determining budget priorities, and
-direction and control of federal employees.
Specifically, included in this list are determining what supplies or services shall be
acquired by the Government on a prime contract and being a voting member of any
source selection boards.
1. Expired Contract. You have a contract for engineering services with a basic period of
performance and several one-year options for continued performance. The contract
states that all options must be exercised by 1 October of each year. The basic period of
performance has just expired and on 5 October you realize that you never exercised the
option for continued performance. There is still an immediate need for the services. How
would you try to rectify this situation? - Answers :Once the option has expired there is
no contract. Contract is dead.
If the requirement still exists, other options are to
-do a new contract (with a J&A);
-borrow capacity from other Districts; or
-re-solicit if time allows.
What six things must the PCO do before exercising an Option? - Answers :FAR 17.207
● Make sure that funds are available.
● Make sure that the requirement fulfills an existing Government need.
● Exercising the option is the most advantageous method price and other factors
considered.
● The option was synopsized IAW FAR 5 or exempted from synopsis.
● The PCO should have a written D&F in the file to use options.
● The PCO should also consider if the contractor is responsible and performance is
satisfactory.
When utilizing the appropriate option clause, what is the maximum time limit and how
long are rates good for? - Answers :FAR 52.217-8 state we can extend for an additional
6 months at the same rates evaluated at the time of proposal.
The KO can invoke the dash 8 clause if it is included in the base contract.
How to rectify an expired option? - Answers :Once the option is expired, there is no
contract.
, The Contracting Officer may have to prepare a J&A depending on the original
authorizations and enter into a bilateral agreement with the Contractor to obtain
continued performance by the same Contractor.
The Contractor is entitled to renegotiate the price.
The Contracting Officer can also look at:
o Borrowing capacity
o Solicit other districts
o Resolicit the contract
Please define a Certificate of Current Cost or Pricing Data. - Answers :A Certificate of
Current Cost or Pricing Data certifies that to the best of the company's knowledge, the
cost or pricing data submitted 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.
What is the purpose of a Certificate of Current Cost or Pricing Data? - Answers :The
purpose is to have the company commit as to the accuracy, completeness, and
currency of submitted data. If the data is later found to be incorrect or appropriate data
was not submitted, the Government reserves the right to a downward contract price
adjustment for any monetary damages incurred.
What are some of the key things you would expect to see or review before accepting
the certificate? - Answers :Key things expected in a Certificate are:
-The certificate is in the format shown in FAR 15.406-2;
-Current as of the date of agreement on price or an earlier agreed upon date;
-Signed by an authorized representative of the company and dated as close as
practicable to the date when price negotiations were concluded.
What are the exceptions to Certificate of Current Cost or Pricing Data? - Answers :FAR
15.403-1(b)
a. Adequate price competition
b. Prices set by law or regulation
c. Commercial Item
d. Waiver has been granted
e. Mod to a contract or subcontract for commercial items
What dollar threshold would you require a certificate of current cost or pricing data? -
Answers :$750,000 before July 1, 2018
$2 million after July 1, 2018
What are the five (5) TINA Exceptions? - Answers :o Adequate price competition
o Price set by law or regulation - very, very RARE!! (An example is prices set by
local/regional Government utilities.)
