Contracting Officer warrant board questions
Save
You are the PCO for a You can accept the offeror's proposal under certain
major competitive circumstances. Firstly, what did the RFP say about
negotiated source alternate proposals? Is this a situation where
selection. The RFP, which requirements are changed and the other offerors
reflects the user's should be allowed to propose on the basis of the
requirements and is based changed requirements? You need to ask the user if he
on the user's budget, has a wants all 220 in the first year and are the operating
requirement for 220 cargo locations physically able to accommodate their
loaders to be delivered at loaders in the first year. Finally, the offeror could be
55 per year over the next taken into discussions and asked to conform to the
four years. One offeror RFP with there being the possibility of not being
proposes to deliver all 220 selected for award or elimination from the
loaders in the first year at competitive range if the proposal is not made
a dramatically reduced compliant with the RFP.
price. Can you accept the
offeror's proposal? What
factors should you
consider in your decision?
, There are a number of considerations for the colonel:
The desired additional speed should provide benefit
to the Government in order to justify the expenditure
You are the PCO on a new
of funds to achieve it. The colonel should be able to
$2B aircraft development
articulate the justification.
program. The program is
The situation is very amenable to a classic
in contract negotiations
performance incentive that would allow the
for a Fixed Price Incentive
contractor to earn profit for achieving the desired
(Firm Target) System
speed above and beyond what the final FPIF profit
Development and
would be for achieving threshold speed. If the
Demonstration contract
contractor perceives this can't happen, he will either
award to a sole source
not sign up to the incentive or will ignore it from Day
contractor. The program
One.
director, a fast-burning
The incentive and resulting payment have to be
young colonel, e-mails
structured so as to be based on observable,
you that she is very
measurable results that would determine how much is
concerned with the
earned by the contractor. Subjectivity is not allowable
aircraft's ultimate speed at
under current AF policy without HCA approval.
the full specification
We have to be very careful to understand what
payload. She would like
possible unintended consequences could be caused
the contractor to achieve
by the existence of this feature in the contract. For
the faster, desired
example, will the contractor reduce aircraft weight
objective speed rather
beyond safe limits in order to help achieve the
than the mandatory
payment? Also, will the contractor consume excessive
threshold speed, and
schedule to get the extra speed?
thinks that an objective
There has to be a cost incentive in place so that the
performance incentive
contractor doesn't spend an unconstrained amount of
would be the way to go to
money to win the payment, such as under a CPFF
achieve her goal. You are
contract. The FPIF share line serves this purpose when
asked to go to her office
balanced against the incentive.
and discuss the matter and
The incentive has to be balanced with the FPIF share
the issues involved in
line so that the contractor doesn't spend more money
using such an incentive.
to achieve the desired speed than he has potential to
What do you tell the
earn by receiving the payment. Similarly, the
colonel?
contractor can't be allowed to spend an excessive
amount of money with little cost penalty to achieve
success.
, When the principal purpose is to transfer a thing of
value, to carry out a public purpose of support or
stimulation authorized by law of the United States, it is
Assistance.
Acquisition, by contrast, has the principal purpose of
acquiring property or services for the direct benefit or
use of the United States Government.
Federal agencies must be authorized by statute to
support or stimulate a public purpose. The statutory
In some cases, authority from Congress must exist either in broad
Contracting Officers are legislation or in a program-specific statute. Absent
also Grants Officers. They that statutory authority, a Grants Officer may not use
can award Grants and an assistance instrument.
Assistance Instruments as Authorities to issue Assistance can be of three types:
well as contracts. What is (1) Provide to the Secretary of Defense by statute, e.g.,
Assistance? How does it 10 U.S.C. 2391; (2) Authority provided to DoD
differ from Acquisition? components that requires no delegation by the
What gives the Grants Secretary of Defense, e.g., 10 U.S.C. 2358; (3) Authority
Officers their authority to coming indirectly from statutes, i.e., federal statute
enter into assistance? authorizing a program that is consistent with using a
What are the types of grant or cooperative agreement.
Assistance? Two types of Assistance are Grants and Cooperative
Agreements. They differ in the following way: In a
Grant, substantial involvement is not expected
between the agency and the recipient. In Cooperative
Agreement, substantial involvement is expected
between the agency and the recipient. Cooperative
Agreements, then, are particularly useful in the
research arena when the Government is interested in
being involved in program decisions or may be doing
some testing or research themselves.
, You are the Contracting The statutory limitation on fee for CPFF type contracts
Officer on a new Research do no permit exceeding 15% of estimated cost for
and Development experimental, developmental, or research performed
program. Proposals were under a CPFF contract. Since the proposed amount of
recently received in fee is outside the statutory limitations you need to
response to a Broad determine what a fair and reasonable rate is that falls
Agency Announcement, within the limitations. The FAR recommends a
and a Cost Plus Fixed Fee structured approach for determining fee such as
contract type is Weighted Guidelines. If a cost reasonableness review
anticipated. The proposal determines the estimated costs to be acceptable, we
most favored by the can still negotiate and adjust the fee.
technical team was priced
significantly under what
was estimated for the
effort. The contractor
proposed fee in an
amount that equates to
20% of the estimated cost.
The users have more than
enough funds to cover the
proposal and want you to
accept the price as is.
How should you advise
the user and what factors
should you consider in
determining a reasonable
fee?
Save
You are the PCO for a You can accept the offeror's proposal under certain
major competitive circumstances. Firstly, what did the RFP say about
negotiated source alternate proposals? Is this a situation where
selection. The RFP, which requirements are changed and the other offerors
reflects the user's should be allowed to propose on the basis of the
requirements and is based changed requirements? You need to ask the user if he
on the user's budget, has a wants all 220 in the first year and are the operating
requirement for 220 cargo locations physically able to accommodate their
loaders to be delivered at loaders in the first year. Finally, the offeror could be
55 per year over the next taken into discussions and asked to conform to the
four years. One offeror RFP with there being the possibility of not being
proposes to deliver all 220 selected for award or elimination from the
loaders in the first year at competitive range if the proposal is not made
a dramatically reduced compliant with the RFP.
price. Can you accept the
offeror's proposal? What
factors should you
consider in your decision?
, There are a number of considerations for the colonel:
The desired additional speed should provide benefit
to the Government in order to justify the expenditure
You are the PCO on a new
of funds to achieve it. The colonel should be able to
$2B aircraft development
articulate the justification.
program. The program is
The situation is very amenable to a classic
in contract negotiations
performance incentive that would allow the
for a Fixed Price Incentive
contractor to earn profit for achieving the desired
(Firm Target) System
speed above and beyond what the final FPIF profit
Development and
would be for achieving threshold speed. If the
Demonstration contract
contractor perceives this can't happen, he will either
award to a sole source
not sign up to the incentive or will ignore it from Day
contractor. The program
One.
director, a fast-burning
The incentive and resulting payment have to be
young colonel, e-mails
structured so as to be based on observable,
you that she is very
measurable results that would determine how much is
concerned with the
earned by the contractor. Subjectivity is not allowable
aircraft's ultimate speed at
under current AF policy without HCA approval.
the full specification
We have to be very careful to understand what
payload. She would like
possible unintended consequences could be caused
the contractor to achieve
by the existence of this feature in the contract. For
the faster, desired
example, will the contractor reduce aircraft weight
objective speed rather
beyond safe limits in order to help achieve the
than the mandatory
payment? Also, will the contractor consume excessive
threshold speed, and
schedule to get the extra speed?
thinks that an objective
There has to be a cost incentive in place so that the
performance incentive
contractor doesn't spend an unconstrained amount of
would be the way to go to
money to win the payment, such as under a CPFF
achieve her goal. You are
contract. The FPIF share line serves this purpose when
asked to go to her office
balanced against the incentive.
and discuss the matter and
The incentive has to be balanced with the FPIF share
the issues involved in
line so that the contractor doesn't spend more money
using such an incentive.
to achieve the desired speed than he has potential to
What do you tell the
earn by receiving the payment. Similarly, the
colonel?
contractor can't be allowed to spend an excessive
amount of money with little cost penalty to achieve
success.
, When the principal purpose is to transfer a thing of
value, to carry out a public purpose of support or
stimulation authorized by law of the United States, it is
Assistance.
Acquisition, by contrast, has the principal purpose of
acquiring property or services for the direct benefit or
use of the United States Government.
Federal agencies must be authorized by statute to
support or stimulate a public purpose. The statutory
In some cases, authority from Congress must exist either in broad
Contracting Officers are legislation or in a program-specific statute. Absent
also Grants Officers. They that statutory authority, a Grants Officer may not use
can award Grants and an assistance instrument.
Assistance Instruments as Authorities to issue Assistance can be of three types:
well as contracts. What is (1) Provide to the Secretary of Defense by statute, e.g.,
Assistance? How does it 10 U.S.C. 2391; (2) Authority provided to DoD
differ from Acquisition? components that requires no delegation by the
What gives the Grants Secretary of Defense, e.g., 10 U.S.C. 2358; (3) Authority
Officers their authority to coming indirectly from statutes, i.e., federal statute
enter into assistance? authorizing a program that is consistent with using a
What are the types of grant or cooperative agreement.
Assistance? Two types of Assistance are Grants and Cooperative
Agreements. They differ in the following way: In a
Grant, substantial involvement is not expected
between the agency and the recipient. In Cooperative
Agreement, substantial involvement is expected
between the agency and the recipient. Cooperative
Agreements, then, are particularly useful in the
research arena when the Government is interested in
being involved in program decisions or may be doing
some testing or research themselves.
, You are the Contracting The statutory limitation on fee for CPFF type contracts
Officer on a new Research do no permit exceeding 15% of estimated cost for
and Development experimental, developmental, or research performed
program. Proposals were under a CPFF contract. Since the proposed amount of
recently received in fee is outside the statutory limitations you need to
response to a Broad determine what a fair and reasonable rate is that falls
Agency Announcement, within the limitations. The FAR recommends a
and a Cost Plus Fixed Fee structured approach for determining fee such as
contract type is Weighted Guidelines. If a cost reasonableness review
anticipated. The proposal determines the estimated costs to be acceptable, we
most favored by the can still negotiate and adjust the fee.
technical team was priced
significantly under what
was estimated for the
effort. The contractor
proposed fee in an
amount that equates to
20% of the estimated cost.
The users have more than
enough funds to cover the
proposal and want you to
accept the price as is.
How should you advise
the user and what factors
should you consider in
determining a reasonable
fee?
