Con 3900 Test Questions and Complete Solutions Graded A+.

Con 3900 Test Questions and Complete Solutions Graded A+ Express Actual Authority: - Answer: Authority explicitly given to the agent through the principal's written or oral instructions Implied Actual Authority: - Answer: authority to do what is usual, customary and necessary to accomplish the action. No express agreement Apparent Authority: - Answer: someone reasonably believes an individual has the authority to act on the behalf of the government Delegation of authority: - Answer: he FAR and states that each authority is delegable unless specifically stated otherwise (FAR 1.108(b)). contract: - Answer: mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them in writing Mutual Assent: - Answer: meeting of the minds. parties involved in a contract must come to an agreement about the details of the transaction and each party either makes a promise or begins or renders performance. Capacity: - Answer: refers to the legal competence of a person to enter a valid contract. Consideration: - Answer: something of value that a promisor (the offeror) receives from a promisee (the offeree) in return for his or her offer. Lawful Purpose: - Answer: the contract must not be for an unlawful purpose or contrary to public policy Essential elements of a contract: - Answer: Capacity Mutual assent Consideration Lawful purpose FAR part 10: - Answer: market research Market research: - Answer: the process used to determine if industry can support the acquisition "needs" of the Government. a continuous process for gathering and analyzing information about products and services that are available in marketplace. Market research is conducted to determine: - Answer: if commercial products/services or non-developmental items are available to meet the Government's needs or could be modified to meet the Government's needs (FAR10.002(b)). Strategic market research: - Answer: continuous. overall market developments, trends and capabilities. An example of strategic research is attending a trade show for a specific industry. Tactical Market: - Answer: conducted at specific points during the acquisition process. provides a deeper understanding of the market and answer specific questions about the capabilities, products or services available in the market. Market research can be: - Answer: Strategic or Tactical The Competition in Contracting Act of 1984, (CICA): - Answer: Generally, unless an exception applies or is otherwise expressly authorized by statute, Contracting Officers shall promote and provide for full and open competition in soliciting offers and awarding Government contracts. Competitive Procedures: - Answer: Sealed bids. Competitive proposals Combination of competitive procedures.(e.g., two-step sealed bidding). Other competitive procedures Full and Open Competition: - Answer: With certain limited exceptions contracting officers shall promote and provide for full and open competition in soliciting offers and awarding Government contracts Full and Open Competition After Exclusion of Sources: - Answer: Agencies may exclude a particular source from a contract action in order to establish or maintain an alternative source or sources Exclusion of Sources examples: - Answer: small business Establishing or maintaining alternative sources 8(a Hubzone women-owned small business(EDWOSB) concerns or women-owned small business (WOSB) concerns eligible under the WOSB Program local firms during a major disaster or emergency Other Than Full and Open Competition: - Answer: Contracting without providing for Full and open is authorized under certain conditions with justification Other Than Full and Open Competition Examples: - Answer: Sole Source Unusual and compelling urgency Industrial mobilization; engineering, developmental, or research capability ;or expert services International agreement Authorized or required by statute National security Public Interest Contracting officers shall purchase: - Answer: supplies and services from responsible sources at fair and reasonable prices (FAR15.402 In establishing the reasonableness the contracting officer shall: - Answer: obtain certified cost or pricing data when required shall obtain data other than certified cost or pricing data if certified cost or pricing data are not required Data other than certified cost or pricing data such as: - Answer: market prices, sales to non-governmental and governmental entities rely first on data available within the Government second, on data obtained from sources other than the offeror; and, if necessary, on data obtained from the offeror. Ethics; The general rule is: - Answer: to avoid strictly any conflict of interest or even the appearance of a conflict of interest in government-contractor relationships. Violating compliance rules can subject a contractor to: - Answer: contractual and financial harm, but also potentially to civil monetary penalties and criminal sanctions No Government employee may solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from anyone who: - Answer: Has or is seeking to obtain Government business with the employee's agency Conducts activities that are regulated by the employee's agency Has interests that may be substantially affected by the performance or nonperformance of the employee's official duties. Certain limited exceptions are authorized in agency regulations. Acceptance means: - Answer: the act of an authorized representative of the Government acknowledges that the supplies or services conform with applicable contract quality and quantity requirements. Responsibility for Acceptance: - Answer: Acceptance of supplies or services is the responsibility of the Contracting Officer Supplies accepted at a place other than destination shall: - Answer: not be re-inspected at destination for acceptance purposes, but should be examined at destination for quantity, damage in transit, and possible substitution or fraud. Place of Acceptance: - Answer: Contracts that provide for Government contract quality assurance at source shall ordinarily provide for acceptance at source. Contracts that provide for Government contract quality assurance at destination shall ordinarily provide for acceptance at destination Certificate of Conformance: - Answer: may be used in certain instances instead of source inspection at the discretion of the contracting officer Certificate of Conformance conditions: - Answer: may be used in certain instances instead of source inspection (whether the contract calls for acceptance at source or destination) at the discretion of the contracting officer if the following conditions apply: Title to supplies shall pass to the Government upon: - Answer: formal acceptance, regardless of when or where the Government takes physical possession, unless the contract specifically provides for earlier passage of title Title Transfer and Risk of Loss: - Answer: shall remain with the contractor until, and shall pass to the Government upon- Delivery of the supplies to a carrier if transportation is f.o.b. origin; or Acceptance of supplies at the destination specified in the contract, whichever is later, if transportation is f.o.b. destination. Excusable Delays Clause: - Answer: is included in solicitations on a fee basis for cost-reimbursement contracts, time-and-material contracts, and labor-hour contracts. Delay Default: - Answer: Except for defaults of subcontractors at any tier the Contractor will not default because from delays caused beyond their control and without the fault or negligence Default: - Answer: failure to make progress in the work so as to endanger performance. Subcontractor Default: - Answer: The subcontracted supplies or services were obtainable from other sources; The Contracting Officer ordered the Contractor in writing to purchase these supplies or services from the other source The Contractor failed to comply reasonably with this order. FAR part 7: - Answer: Acquisition Planning FAR part 11: - Answer: Describing Agency Needs FAR part 15: - Answer: Contracting by Negotiation FAR part 14: - Answer: Sealed Bidding FAR part 13: - Answer: Simplified Acquisition Procedures FAR part 12: - Answer: Acquisition of Commercial Products and Commercial Services FAR part 16: - Answer: Contract Types FAR part 45: - Answer: Government Property Pre-Award: - Answer: Develop Solicitation Develop Offer FAR Part 2: - Answer: Definitions Acquisition: - Answer: acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government Acquisition Team: - Answer: ll participants in Government acquisition including not only representatives of the technical, supply, and procurement communities but also the customers they serve, and the contractors who provide the products and services. Contracting officer role on acq team: - Answer: he authority to the maximum extent practicable and consistent with law, to determine the application of rules, regulations, and policies, on a specific contract. KO qualifications: - Answer: completed all contracting courses at least 2 years experience baccalaureate degree Meet additional requirements established by the Secretary of Defense Contracting Officer Representative (COR): - Answer: Assigned to a specific contract and is the person who oversees the process, making sure that all of the necessary requirements are being met by the contracting officer designated in writing Far Part 3: - Answer: Improper Business Practices and Personal Conflicts of Interest Organizational conflict of interest: - Answer: a contractor (or potential contractor) is in a situation which by way of contract performance gives them an unfair advantage or will bias their performance in making recommendations to the Government FAR PART 9: - Answer: Contractor Qualifications 9.5 Organizational conflicts of interest Openness for the contracting officer applies primarily to: - Answer: Acquisition Team, Contractors, Offerors, The Contracting Team FAR PART 4: - Answer: Administrative Matters 4.8 provides guidance on establishing, maintaining, and disposing of Government contract files. FAR 1.108: - Answer: Conventions Determination and Findings: - Answer: written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions The "determination" is: - Answer: a conclusion or decision supported by the "findings.'' The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation. Justification and Approval (J&A): - Answer: FAR 6.303-1(a) states a contracting officer shall not commence negotiations for a sole source contract, without providing for full and open competition unless the contracting officer Justifies Certifies the accuracy Obtains the approval Deviations: - Answer: The issuance or use of a policy at any stage of the acquisition process that is inconsistent with the FAR At the conclusion of negotiations, the contracting officer will complete a: - Answer: Price Negotiation Memorandum SF 26 - Answer: Award/Contract - used to award negotiated contracts in which signatures of both parties on a single document is appropriate. SF 30 - Answer: Amendment of Solicitation/Modification of Contract SF 33 - Answer: Solicitation, Offer, and Award - may be used to award either negotiated contracts or contracts utilizing sealed bidding. SF 44 - Answer: Purchase Order/Invoice/Voucher Used for simplified acquisitions at or below the micro-purchase threshold (except compelling urgency or contingency operations). SF 1409 - Answer: Abstract of Offers Prescribed for use in recording bids. SF 1449 - Answer: Solicitation/Contract/Order for Commercial Items Required for Commercial items over SAT (encouraged for under SAT) DD 254 - Answer: Contract Security Classification Specification DD 1155 - Answer: Order for Supplies and Services place orders on IDIQ or as an alternate to SF 1449 DD 1547 - Answer: Record of Weighted Guidelines Application profit/fee analysis DD 1861 - Answer: Contract facilities capital cost of money Contracting Officers shall use electronic commerce: - Answer: whenever practicable or cost-effective. Methods of Disseminating Information - Answer: For proposed contract actions expected to exceed $25,000, by synopsizing in the Government-wide Point of Entry (GPE). For proposed contract actions expected to exceed $15,000, but not expected to exceed $25,000. by displaying in a public place. Postaward orientation - Answer: aids both Government and contractor personnel to (1) achieve a clear and mutual understanding of all contract requirements, and (2) identify and resolve potential problems. Rule on accepting gifts from contractor/employees - Answer: You may not solicit gifts from anyone, for any reason. Anti-Kickback Act of 1986 - Answer: to deter subcontractors from making payments and contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment Disclosure of contractor l information - Answer: No person or other entity may disclose contractor bid or proposal information or source selection information to any person other than a person authorized Contractor bid or proposal information - Answer: Cost or pricing data Indirect costs and direct labor rates Proprietary information about manufacturing processes, operations, or techniques marked by the contractor Information marked by the contractor as "contractor bid or proposal information" Information marked IAW 52.215-1(e), (marked as restricted by the contractor) Inappropriately marked proprietary information - Answer: the contracting officer must notify the contractor in writing if the contracting officer believes that proprietary information has been inappropriately marked. The contractor must be given an opportunity to justify the marking. A contracting officer shall not knowingly award a contract - Answer: to a Government employee or to a business concern or other organization owned or substantially owned or controlled by one or more Government employees Special Government employee - Answer: experts, advisors, or consultants, or as members of advisory committees, are not considered Government employees (with exceptions) Unequal Access - Answer: when a contractor obtains information not generally available to competitors where such information would assist the contractor in winning the contract award Impaired Objectivity - Answer: This may happen when a support contractor is performing duties that involve assessing or evaluating itself or a related entity Biased Ground Rules - Answer: This most often occurs when the contractor is writing the Statement of Work, performing systems engineering, or providing technical direction efforts. three basic approaches for dealing with OCI issues - Answer: Avoid Neutralize Mitigate If an OCI exists - Answer: best to cancel the RFP and make any needed changes to eliminate any conflict. A contractor may be suspended and/or debarred - Answer: or knowing failure by a principal to timely disclose to the Government a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations A contracting officer who receives a complaint of reprisal - Answer: shall forward it to legal counsel or to the appropriate party in accordance with agency procedures Pricing and enforcement of warranties - Answer: KO shall Exact nature of the item under warrant contractor's obligations to the Government for breach of warranty remedies Scope and duration Contractor's obligation for warranties - Answer: extend to all defects discovered during the warranty period, but do not include damage caused by the Government. Special protection warranty - Answer: When a warranty for the entire item is not advisable, a warranty may be required for a particular aspect of the item that may require special protection Warranty- correction of defects - Answer: the contractor's obligations for correction of defects shall usually be limited to defects in material and workmanship or failure to conform to specifications. Express Warranties - Answer: If express warranties are included in a contract (except contracts for commercial items), all implied warranties of merchantability and fitness for a particular purpose shall be negated by the use of specific language in the clause Warranty Remedies - Answer: a warranty provide an equitable adjustment and/or repair or replace items at contractor's expense. Duration of the warranty - Answer: must be clearly specified based on (i) the estimated useful life of the item, (ii) the nature of the item including storage or shelf-life, and (iii)trade practice. Warranty period - Answer: shall not extend the contractor's liability for patent defects beyond a reasonable time after acceptance by the Government. Warranty Notice - Answer: The warranty shall specify a reasonable time for furnishing notice to the contractor regarding the discovery of defects. Warranty Notice based on - Answer: time to discover the defects. time to take administrative steps The time required to discover and report defective replacements. Warranty Consistency - Answer: Contracting officers shall ensure that the warranty clauses are consistent and all warranties are expressed Warranty Marking - Answer: The purpose of the markings or notice is to inform Government personnel who store, stock, or use the supplies that the supplies are under warranty. Implied Warranty of Merchantability - Answer: The items must be of at least average, fair or medium-grade quality and must be comparable in quality to those that will pass without objection in the trade or market for items of the same description. Implied Warranty of Fitness - Answer: seller knows the particular purpose of intended use Government relied upon the contractor's skill and judgment KO should consult with legal counsel prior to asserting any claim for a breach of an implied warranty. Commercial warranties - Answer: KO are required to take advantage of commercial warranties. Who is responsible for payment terms - Answer: Agency heads When drafting solicitations and contracts contracting officers must identify - Answer: each line item number, subline item number, or exhibit line item number the applicable Prompt Payment clauses Bilateral Modification - Answer: Make negotiated equitable adjustments resulting from the issuance of a change order; Definitize letter contracts; Reflect other agreements modifying the terms of contracts. Unilateral Modification - Answer: Make administrative changes Issue change orders Make changes authorized by clauses other than a changes clause (e.g., Property clause, Options clause, or Suspension of Work clause) Issue termination notices The contracting officer should terminate contracts - Answer: when it is in the Government's best interest Termination can apply to - Answer: the entire contract or parts of a contract - partial termination Termination notice shall state - Answer: That the contract is being terminated under the contract clause authorizing the termination The effective date The extent special instructions The steps the contractor should take to minimize the impact on personnel if the termination results in a significant reduction in the contractor's work force. Duties of the Prime Contractor Termination - Answer: Stop work Terminate all subcontracts advise the TCO of any special circumstances Perform the continued work for partial determination and request equitable adjustment protect and preserve property Government may acquire Promptly notify the TCO in writing of any legal proceedings for subcontractors Settle outstanding liabilities and proposals arising out of termination of subcontracts submit settlement proposal Dispose of termination inventor The TCO should attempt to settle - Answer: in one agreement all rights and liabilities of the parties under the contract except those arising from any continued portion of the contract. TCO shall not attempt to make - Answer: partial settlements covering particular items of the prime contractor's settlement proposal. partial settlement requirements - Answer: The issues on which agreement has been reached are clearly severable from other issues and The partial settlement will not prejudice the Government's or contractor's interests in disposing of the unsettled part of the settlement proposal. No-Cost Settlement Agreement requirements - Answer: The contractor has not incurred costs for the terminated portion of the contract. The contractor is willing to waive the costs incurred. No amounts are due the Government under the contract. Termination for Convenience (T4C) - Answer: government's unilateral contractual right to partially or completely terminate a contract without being required to pay damages, despite full contractor compliance with its contractual obligations. Termination for Default (T4D) - Answer: the Government's contractual right to completely or partially terminate a contract because of the contractor's actual or anticipated failure to perform its contractual obligations. Delinquency Notices - Answer: sent if it appears that the contractor has breached the contract and the Government is considering a termination action. time sensitive Use a cure notice when: - Answer: Contractor fails to make progress and performance is endangered Performance problems do not involve terms for delivery At least 10 days remain for contract performance and correction of the problem can be reasonably expected in the time remaining. show cause - Answer: after the cure notice fails to correct the delinquency or when there is insufficient time remaining in the schedule - less than 10-days. The requirements of FAR part 49 do not apply when - Answer: terminating contracts for commercial items and contracting officers shall follow the procedures in FAR Part 12. Termination for Cause - Answer: commercial products and commercial services either for the convenience of the Government or for cause. Government's Policy on Describing Agency Needs - Answer: Promote full & open competition Minimize restrictive provisions State requirements in terms of function, performance, & essential physical characteristics Needs Assessment - Answer: 1st step/ A needs assessment identifies and characterizes gaps in existing capabilities that are impediments to achieving the mission area objectives. Requirements Analysis - Answer: systematic review Describing the work in terms of required results, rather than either "how" the work is to be accomplished or the number of hours to be provided Identifying the essential processes and outputs or results required Planning Phase: - Answer: Step One: Form the Team Step Two: Review Current Strategy Step Three: Market Research Development Phase: - Answer: Step Four: Requirements Definition Step Five: Acquisition Strategy performance work statement (PWS) and quality assurance surveillance plan (QASP) Execution Phase: - Answer: Step Six: Execute Strategy Step Seven: Performance Management Acquisition planning should begin - Answer: as soon as the agency need is identified GFP requirements - Answer: in the Government's best interest That the overall benefit to the acquisition significantly outweighs the increased cost of administration does not substantially increase the Government's assumption of risk Government requirements cannot otherwise be met Before executing any contract, the contracting officer shall- - Answer: Obtain written assurance from responsible fiscal authority that adequate funds are available Expressly condition the contract upon availability of funds No officer or employee of the Government may create or authorize an obligation - Answer: n excess of the funds available, or in advance of appropriations (Anti-Deficiency Act) Agencies must conduct market research - Answer: Before new requirements soliciting offers for acquisitions above the SAT soliciting offers that could lead to a bundled contract On an on-going basis to identify capabilities for meeting contingency contracting requirements Market research is an essential process enabling the government to - Answer: buy best-value products and services that solve mission-critical problems. ultimate goal of market research is - Answer: to help the acquisition team become informed consumers, to understand the cost drivers in providing the product or service, and to research what leverage the team may discover in the marketplace that could affect both the requirement and the business strategy. Why The Preference for Commerciality - Answer: Govt does not want to pay the cost and time required for new item development! Methods of Industry Engagement - Answer: "Sources Sought" solicitation Request for Information (RFI) distribution Pre-Solicitation Conference or Industry Day One-on-one interactions Solicitation of feedback on Draft RFP Commercial service - Answer: Installation services, maintenance services, repair services, training services, and other service in support of a commercial product Agencies shall use (contract type) - Answer: firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial items. Time-and-materials contract or labor-hour contract type requirements - Answer: may be used for the acquisition of commercial services that require: Competitive procedures other than full and open competition fair opportunity procedures if placing an order under a multiple-award delivery-order contract; For Time-and-materials contract or labor-hour contracts the KO shall - Answer: create a determination and findings (D&F) Includes a ceiling price in the contract or order that the contractor exceeds at its own risk. (D&F) Time and Material contract - Answer: include a description of the market research note that it is impossible to accurately estimate the extent or duration of the work or to anticipate costs describe that the contract has been structured to maximize the use of firm-fixed-price or fixed-price with economic price adjustment contracts Describe actions planned to maximize the use of firm-fixed-price or fixed-price with economic price adjustment contracts on future acquisitions for the same requirements The use of simplified acquisition procedures - Answer: Reduces administrative costs. Improves opportunities for small business Promotes efficiency and economy Avoids unnecessary burdens SAP exceptions - Answer: FAR part 8 (such as Federal Prison Industries and Committee for Purchase from People Who are Blind or Severely Disabled, (Ability One)), existing indefinite-delivery/indefinite-quantity contracts, or other established contracts. In most cases, purchase orders - Answer: are issued on a fixed-price basis simplified acquisition methods include - Answer: Government-wide commercial purchase card purchase orders blanket purchase agreements, imprest funds third-party drafts. a quotation is - Answer: not an offer, and consequently, cannot be accepted by the government to form a binding contract. Subpart 13.5 provides special authority for - Answer: acquisitions of commercial products and commercial services exceeding the simplified acquisition threshold but not exceeding $7.5 million ($15 million emergencies, disasters, attacks, etc Sealed bidding - Answer: method of contracting that employs competitive bids, public openings of bids, and awards. Sealed bidding steps - Answer: preparing an invitation for bids, publicizing the invitation for bids, submission of bids, evaluation of bids, and awarding the contract. Sealed bidding award - Answer: bidder whose bid is responsive to the terms of the invitation for bids (IFB) and is most advantageous to the government, considering only price and price related factors included in the invitation. Sealed bidding can only be used with (contract type) - Answer: Firm-Fixed-Price and Fixed-Price with Economic Price Adjustment contracts Sealed bidding requirements - Answer: Time permits the solicitation, submission, and evaluation of sealed bids. The award will be made on the basis of price and other price-related factors. It is not necessary to conduct discussions with the responding offerors about their bids. There is a reasonable expectation of receiving more than one sealed bid. Two step sealed bidding - Answer: is a combination of competitive procedures designed to obtain the benefits of sealed bidding when adequate specifications are not available. Two step sealed bidding Step 1 - Answer: requests for submission, evaluation, and discussion of technical proposals. No pricing is involved. Two step sealed bidding Step 2 - Answer: submission of sealed bids by those who submitted acceptable technical proposals in step one Two-step sealed bidding may be used in preference to negotiation when - Answer: Available specifications or purchase descriptions are not definite/complete/restrictive without technical evaluation Definite criteria exists for evaluating technical proposals More than one technically qualified source is expected to be available Sufficient time will be available for use of the two-step method. A firm-fixed price contract or fixed-price contract with economic price adjustment will be used. Negotiation must be used - Answer: whenever one or more of the four prerequisites to sealed bidding (sufficient time, award based on price or price-related factors, well-defined specifications, adequate competition) is lacking the contracting officer must discuss with each offeror in the competitive range - Answer: any deficiencies, significant weaknesses, and adverse past performance information to which the offeror has not yet had an opportunity to respond. A major feature of negotiated procurement is - Answer: its emphasis on the technical aspects of proposals, in addition to price, rather than on price factors alone. Contracting by negotiation steps: - Answer: Draft specification or performance work statement Prepare request for proposals (RFP) Publicize RFP Submit proposals Evaluate proposals Conduct discussions Request final proposal revisions Evaluate final proposal revisions Award contract Draft specification or performance work statement - Answer: The requirements office (or contracting officer's representative (COR)) provides this description Invitation for Bid (IFB) - Answer: the U.S. Government describes its requirements clearly, accurately, and as fully as possible, and does so without unnecessarily restrictive requirements which would unduly limit the number of offerors. Publicize RFP: - Answer: contracting officer publicizes the RFP through all appropriate means, including SAM.gov/ (FedBizOpps), local newspapers, embassy, consulate or procurement office website, or any other locally acceptable means of advertising the requirement. technical evaluation panel (TEP) - Answer: evaluates the technical proposals against the technical evaluation criteria included in the RFP. Who determines competitive range - Answer: The contracting officer then determines which proposals are in the competitive range considering both technical and price factors. Discussions - Answer: The Contracting officer holds oral and/or written discussions with each offeror in the competitive range to resolve uncertainties and to provide each offeror with an understanding of the technical or price weaknesses in its proposal. When discussions are concluded - Answer: the contracting officer issues a written request for final proposal revisions from all offerors in the competitive range. Evaluate final proposal revisions: - Answer: The TEP and the contracting officer evaluate final proposal revisions in the same manner as initial offers. FAR part 12 does not apply to the acquisition of commercial items: - Answer: At or below the micro-purchase threshold. Using the Standard Form 44 . Using the imprest fund. Using the Government-wide commercial purchase card Directly from another Federal agency What contract type should not be used - Answer: cost-plus-a-percentage-of-cost No contract may be awarded before the execution of - Answer: any determination and findings (D&F's) required by FAR part 16. Firm-Fixed-Price - Answer: in which the contractor has full responsibility for the performance costs and resulting profit (or loss) Cost-Plus-Fixed-Fee - Answer: in which the contractor has minimal responsibility for the performance costs and the negotiated fee is fixed. Cost-reimbursement types of contracts require the contractor to - Answer: put forth a 'best effort' to perform, and provide for payment of the contractor's allowable, allocable, and reasonable incurred costs. The chosen contract type and negotiated pricing should: - Answer: result in a balance of risks Provide the contractor with the greatest incentive for efficient and economical performance. A volatile market will - Answer: increase the cost risk involved in contract pricing, particularly when the contract period will extend several years When large market fluctuations are significant - Answer: contract period risk becomes an important consideration in selection of contract type. In an FFP arrangement the slope is - Answer: -1. this means that for every change in contract cost there is an equal change in profit to the contractor. the contractor can complete the contract for less than the negotiated price, the contractor would realize an additional profit equal to the cost savings. fixed-price contract with an economic price adjustment (FPEPA) are used when - Answer: market prices at risk are severable and significant. The risk stems from industry-wide contingencies beyond the contractor's control. The dollars at risk outweigh the administrative burdens of an FPEPA. Market or labor conditions are projected to be unstable during an extended contract performance period. FPEPA contract may incentivize a contractor to - Answer: accept a fixed-price effort without inflating the price to cover the risk due to the variability of a cost element three general types of adjustments - Answer: Adjustments based on established prices. Adjustments based on actual costs of labor or material. Adjustments based on cost indices of labor or material. The firm-fixed-price, level-of-effort term contract - Answer: provides an agreement for a specified level of effort over a period of time on work that can only be described in general terms. the Government pays the contractor a fixed dollar amount based on the level of effort rather than for results achieved. Firm-Fixed-Price Level-of-Effort used in contracts - Answer: less than or equal to Simplified Acquisition Threshold (SAT) however the chief of the contracting office can approve a higher limit. Micropurchase threshold - Answer: supplies 10k, services 2.5k SAP threshold normal commercial products - Answer: 7.5 M When to use Firm Fixed Price - Answer: adequate competition reasonable price comparisons with prior purchases realistic estimates Performance uncertainties can be identified incentives can include both - Answer: positive rewards and/or negative rewards (FAR 16.401(b)). Incentives can be used for - Answer: cost, performance or delivery (FAR 16.402). No incentive contract can - Answer: provide other incentives without also providing a cost incentive or constraint (FAR 16.402-1(a)). Fixed-Price Incentive Contracts - Answer: formula based on the relationship of final negotiated total cost to the total target cost. because profit varies inversely with the cost, this contract type provides a positive profit incentive for contractors to control costs. fixed-price incentive contracts: firm target - Answer: specifies a target cost, a target profit, a price ceiling (but not a profit ceiling or floor), and a profit adjustment formula. Two types of fixed-price incentive contracts: - Answer: firm target and successive targets Cost-Plus-Incentive-Fee Contracts - Answer: an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. CPIF contract for noncommercial - Answer: cost-reimbursement contract is necessary negotiated fee adjustment formula incentive that can range over foreseeable variations high maximum fee/low minimum fee/negative fee technical performance incentives types of incentive contracts that incentivize subjective elements - Answer: Fixed-price Award Fee Cost Plus Award Fee A cost-plus-award-fee (CPAF) contract consists of: - Answer: base fee fixed at inception not exceeding 3%. award fee pool that the contractor may earn in whole or in part during performance cost reimbursement contracts are used for: - Answer: Research and development Major system development Prototype development and testing Low rate initial production The cost-reimbursement family of contracts includes: - Answer: Cost Cost-sharing Cost-plus-incentive-fee Cost-plus-award-fee Cost-plus-fixed-fee cost-reimbursement contracts may only be used when: - Answer: written acquisition approved at one level above the contracting officer contractor's accounting system is adequate adequate Government resources are available to award and manage a contract other than FFP (one COR) Government surveillance exists no fee Cost-reimbursement contracts - Answer: Cost-Sharing Contracts Cost Contracts Uniform Contract Format exceptions - Answer: Construction and architect-engineer contracts Subsistence contracts Supplies or services contracts requiring special contract formats Letter requests for proposals Contracts exempted by the agency head or designee Section A - Answer: Solicitation/contract form Section B - Answer: Supplies or Services and Prices/Costs Section C - Answer: Description/specifications/statement of work Section D - Answer: Packaging and marking Section E - Answer: Inspection and acceptance Section F - Answer: Deliveries or Performance Section G - Answer: Contract Administration Data Section H - Answer: Special Contract Requirements Section I - Answer: Contract Clauses Section J - Answer: List of Attachments Section L - Answer: Instructions, conditions, and notices to offerors or respondents Section M - Answer: Evaluation factors for award Amendments issued before receipt of proposals - Answer: shall be issued to all parties receiving the solicitation. Amendments issued after receipt of proposals - Answer: shall be issued to all offerors that have not been eliminated from the competition. Exhibits are particularly useful - Answer: in buying spare parts. Each exhibit shall apply to only one - Answer: contract line item or subline item. Numbering exhibits and attachments - Answer: Use alpha characters to identify exhibits. Do not use the letters I or O. Use numbers to identify attachments An early exchange of information - Answer: can identify and resolve concerns regarding the acquisition strategy the feasibility of the requirement the suitability of the proposal instructions and evaluation criteria the availability of reference documents Prior to receipt of proposals, one-on-one meeting with potential offerors are? - Answer: Encouraged solicitation provision - Answer: only in solicitations and applying only before contract award. contract clause or "clause" - Answer: used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award. pre-award guidance is covered by - Answer: solicitation provisions Contracting officers must publicize contract actions in order to: - Answer: Increase competition, industry participation, small business Contract actions exceeding $25,000 must - Answer: synopsize in the Governmentwide point of entry (GPE). Contract actions exceeding $15,000, but not expected to exceed $25,000 - Answer: the contracting officer must post in a public place. Who is the focal point of any exchange with potential offerors. - Answer: The KO Amending an Invitation for Bids - Answer: Standard Form 30 KO must consider the period of time remaining until bid opening and the need to extend this period. given to all oprospective bidders as an amendment to the invitation. Amending a Request for Proposal - Answer: Amendments issued before receipt of proposals must be issued to all parties receiving the solicitation. Amendments issued after the established time and date for receipt of proposals must be issued to all offerors that have not been eliminated from the competition. If an amendment is so substantial as to exceed what prospective offerors reasonably could have anticipated - Answer: the contracting officer should cancel the original solicitation and issue a new one, regardless of the stage of the acquisition. For commercial acquisitions that exceed the Simplified Acquisition Threshold, the SF 1449- - Answer: Shall be used Buying-in - Answer: a contractor submits an offer below anticipated costs, expecting to: increase the contract amount after award Receive follow-on contracts at artificially high prices to recover losses incurred on the buy-in contract. Contractor team arrangement - Answer: Two or more companies form a partnership or joint venture to act as a potential prime contractor A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program. Responsible Prospective Contractors (FAR subpart 9.1) - Answer: Have adequate financial resources comply with performance schedule satisfactory performance record satisfactory record of integrity and business ethics necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them qualified and eligible to receive an award under applicable laws and regulations A fixed-price contract with economic price adjustment provides for - Answer: upward and downward revision of the stated contract price upon the occurrence of specified contingencies. fixed-price contract with economic price adjustment may be used when: - Answer: serious doubt concerning the stability of market or labor conditions Contingencies that would otherwise be included in the contract price can be identified and covered separately in the contract. Costs that are unallowable - Answer: shall be identified and excluded from any billing, claim, or proposal applicable to a Government contract. Government officials meet one-on-one with potential offerors as long as - Answer: no vendor receives preferential treatment. In regards to price when it states, contracting officers shall: - Answer: Purchase supplies and services from responsible sources at fair and reasonable prices Price each contract separately and independently Not include a price adjustment based upon the occurrence of that contingency. Price each contract separately and independently - Answer: not use Use proposed price reductions under other contracts as an evaluation factor Consider losses or profits realized or anticipated under other contracts Price - Answer: cost plus any fee or profit What is Pricing? - Answer: The process of establishing a reasonable amount or amounts to be paid for supplies or services. When contracting on a firm-fixed-price basis, what will usually satisfy the requirement to perform a price analysis? - Answer: A comparison of proposed prices cost-reimbursement basis - Answer: what the Government should realistically expect to pay for the the offeror's understanding of the work, and the offeror's ability to perform the contract. Can Cost realism analysis be used on fixed-price incentive contracts? - Answer: yes price is reasonable meaning - Answer: They made a decision based on what a prudent and competent buyer would be willing to pay. Price analysis is used when - Answer: certified cost or pricing data are not required. To verify that the overall price offered is fair and reasonable. Cost analysis is used when - Answer: certified cost or pricing data are required. To evaluate the reasonableness of individual cost elements to evaluate data other than certified cost or pricing data to determine cost reasonableness or cost realism when a fair and reasonable price cannot be determined through price analysis alone. Price analysis is - Answer: the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit. Price Analysis Techniques - Answer: 1. Comparison of proposed prices received from a solicitation (preferred) *Comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. (preferred) Use of parametric estimating methods/application of rough yardsticks (such as dollars per pound or per horsepower, or other units). Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements. Comparison of proposed prices with independent Government cost estimates. Comparison of proposed prices with prices obtained through market research for the same or similar items. Analysis of data other than certified cost or pricing data (as defined at 2.101) provided by the offeror. Price analysis contract type - Answer: fixed-price, cost-reimbursement and time-and-materials contract types. Cost Analysis is - Answer: the review and evaluation of separate cost elements, determine a fair and reasonable price, evaluate the reasonableness of individual cost elements. Allocable Costs - Answer: incurred specifically for the contract Benefits both the contract and other work Is necessary to the overall operation of the business Unallowable Costs - Answer: Expressly unallowable IAW the cost principles in FAR 31.201-2(a) Mutually agreed to be unallowable written decision by contracting officer Direct Costs - Answer: any cost that can be identified specifically with a particular final cost objective which may include: Manufacturing supplies Equipment Raw materials Labor costs Other production costs Indirect Costs - Answer: Employee benefits Overhead, which tend to be costs involved with running the company General and Administrative, also known as G&A, which may include office space, salaries for management where management overlooks more than one project, salaries o Structured Approach for Profit Analysis - Answer: Contractor effort Contractor cost risk Federal socioeconomic programs Capital investments Cost control Independent development weighted guidelines method - Answer: DoD's structured approach to profit analysis Performance risk Contract type risk Facilities capital employed Cost efficiency. Cost Realism Analysis - Answer: realistic, reflect a clear understanding, consistent with technical proposal. Truth in Negotiations Act (TINA) - Answer: Provides for full & fair disclosure by contractors when negotiating with the government. empowers the Contracting Officer with the ability to obtain the data needed to determine a fair and reasonable price when normal market forces are not present. A price is based on adequate price competition when - Answer: In receipt of offers from two or more responsible offerors exceptions to obtaining certified cost of pricing data - Answer: Adequate price competition Commercial items Prices set by law Waivers Modifying a contract for a commercial item Clarifications - Answer: Limited exchanges between government and offerors that may occur when award without discussions is contemplated clarify certain aspects of proposals Communications - Answer: exchanges, between the Government and offerors, after receipt of proposals, leading to establishment of the competitive range. communications held when - Answer: past performance prevents from being in a competitive range May only be held with those offerors whose exclusion from, or inclusion in, the competitive range is uncertain; May be conducted to enhance Government understanding of proposals addressing issues that must be explored to determine whether a proposal should be placed in the competitive range. The contracting officer may limit the number of proposals in the competitive range to the - Answer: greatest number that will permit an efficient competition among the most highly rated proposals Discussions - Answer: exchanges (i.e., negotiations) in a competitive environment that are undertaken with the intent of allowing the offeror to revise its proposal. 100M+ required Discussions must be conducted with - Answer: each offeror within the competitive range Discussions include - Answer: discuss with, each offeror still being considered for award, deficiencies, significant weaknesses, and adverse past performance information to which the offeror has not yet had an opportunity to respond SSA Award w/o discussions - Answer: the SSEB shall document its final evaluation results in an SSEB report. SSAC Award w/o discussions - Answer: document its comparative analysis in an SSAC report, and the SSA shall prepare the source selection decision document (SSDD). The contracting officer shall establish pre-negotiation objectives - Answer: before the negotiation of any pricing action. When using a tradeoff process, the following apply: - Answer: Evaluation factors stated in solicitation The solicitation shall state whether all evaluation factors other than cost or price are more/less/equal to the significance of than cost or price. Tradeoff - Answer: in the best interest of the Government to consider award to other than the lowest priced offeror or other than the highest technically rated offeror. The perceived benefits of the higher priced proposal shall merit the additional cost Tradeoffs are not permitted in - Answer: LPTA acquisitions lowest price technically acceptable - Answer: Evaluation factors stated in solicitation Proposals are evaluated for acceptability but not ranked using the non-cost/price factors. Exchanges may occur Source Select Authority (SSA) - Answer: the best value decision and selects the contractor to be awarded a contract usually the ko Source Select Authority (SSA) 100M+ - Answer: the Agency head shall appoint, in writing, an individual other than the contracting officer as the SSA Source Select Advisory Council (SSAC) - Answer: provide a written comparative analysis of offers and recommendation to the SSA. Mandatory for 100M+ Source Selection Evaluation Board (SSEB) - Answer: SSEB is comprised of a Chairperson (overall mgmt) and Evaluators shall prepare documentation of the final evaluation results. past performance shall be evaluated in all source selections for negotiated competitive acquisitions as follows: - Answer: For systems and operations support acquisitions expected to exceed $5,000,000 For services and information technology acquisitions expected to exceed $1,000,000 For ship repair and overhaul acquisitions expected to exceed $500,000. If an offeror's proposal is eliminated - Answer: no further revisions to that offeror's proposal shall be accepted or considered. At the conclusion of discussions, each offeror still in the competitive range - Answer: can submit a final proposal revision. If only one offer is received when competitive procedures were used and the solicitation allowed fewer than 30 days for receipt of proposals, the contracting officer shall— - Answer: see if the requirement should be revised in order to promote more competition Resolicit, allowing an additional period of at least 30 days for receipt of proposals Single offeror exceptions - Answer: Below SAT humanitarian or peacekeeping operations, defense of attack, emergency/disaster SB Set asides Acquisitions for science technology or architect engineer services Which two evaluation factors shall be evaluated in every source selection? - Answer: Price or cost and quality Preaward notices - Answer: state the basis for the determination and that a proposal revision will not be considered. Postward notices - Answer: Within 3 days, all who were in range the number of offerors solicited The number of proposals received The name and address of each offeror receiving an award The items, quantities, and any stated unit prices of each award unless the price information readily reveals the reason Preaward Debriefing - Answer: excluded from cr within 3 days, written request maybe be delayed until after reward based on offerors request only on type of debriefing is allowed preaward debriefings shall include- - Answer: significant elements rationale for elimination Reasonable responses to relevant questions Postaward Debriefing - Answer: within 3 days after award within 5 days after receipt of the written request. may be done orally, in writing, or by any other method acceptable to the contracting officer. post award debriefings shall include- - Answer: significant weaknesses or deficiencies The overall evaluated cost or price (including unit prices) and technical rating ranking rationale for award commercial items, the make and model of the item to be delivered by the successful offeror Reasonable responses to relevant questions post award debriefings shall NOT include- - Answer: Trade secrets Privileged or confidential manufacturing processes and techniques Commercial and financial information that is privileged or confidential, including cost breakdowns, profit, indirect cost rates, and similar information; and The names of individuals providing reference information about an offeror's past performance. protest is defined as - Answer: a written objection by an interested party for A solicitation cancellation of the solicitation award or proposed award of the contract termination or cancellation of an award Interested Party - Answer: actual or prospective offeror whose direct economic interest would be affected by the award Protest Venue means protests filed with - Answer: The agency The Government Accountability Office (GAO), or The U.S. Court of Federal Claims. Who does not have any bid protest jurisdiction. - Answer: (U.S. District Courts ) Day means - Answer: a calendar day, unless otherwise specified. In the computation of any period: - Answer: The day of the act, event, or default from which the designated period of time begins to run is not included The last day after the act, event, or default is included, unless the last day is a Saturday, Sunday, or Federal holiday Filed means - Answer: the complete receipt of any document by an agency before its close of business. Protests shall include the following: - Answer: Name, address, and phone numbers of the protester Solicitation or contract number Detailed statement of the legal and factual grounds for the protest Copies of relevant documents Request for a ruling by the agency Statement as to the form of relief requested Adequate information establishing that the protester is an interested party All information establishing the timeliness of the protest All protests filed with the agency will be addressed to the - Answer: contracting officer or other official If the protester is unsuccessful receiving relief from the agency - Answer: the protester has 10 days from receiving knowledge of the adverse decision to file the protest with the GAO. Protests based on alleged apparent improprieties in a solicitation shall be filed before - Answer: bid opening or the closing date for receipt of proposals. In all other cases, protests shall be filed no later than 10 days after the basis of the protest is known Upon receipt of a protest before award, a contract may not be - Answer: awarded, pending agency resolution of the protest, unless contract award is justified, in writing, for urgent and compelling reasons or is determined, in writing, to be in the best interest of the Government. shall be approved at a level above the contracting officer Upon receipt of a protest within 10 days after contract award or within 5 days after a debriefing date the contracting officer shall - Answer: suspend performance, pending resolution of the protest within the agency, including any review by an independent higher level official, unless continued performance is justified, in writing, for urgent and compelling reasons or is determined, in writing, to be in the best interest of the Government. shall be approved at a level above the contracting officer A protester is required to furnish a copy of its complete protest to - Answer: the official and location designated in the solicitation or, in the absence of such a designation, to the contracting officer, so it is received no later than 1 day after the protest is filed with the GAO. The agency shall submit a complete report to the GAO within - Answer: 30 days after the GAO notifies the agency by telephone that a protest has been filed. At least 5 days prior to the filing of the report the agency shall provide to all parties and the GAO a list of - Answer: the agency has released to the protester or intends to produce in its report as well as documents excluded + rationale Accrual of a Claim - Answer: The date when all events, that fix the alleged liability of either the Government or the contractor and permit assertion of the claim, were known or should have been known Alternative Disputes Resolution (ADR) - Answer: voluntarily used to resolve issues in controversy. These procedures may include, but are not limited to, conciliation, facilitation, mediation, fact-finding, minitrials, arbitration, and use of ombudsmen. Issue in Controversy - Answer: a material disagreement between the Government and the contractor that: May result in a claim; or Is all or part of an existing claim Misrepresentation of Fact - Answer: false statement of substantive fact made with intent to deceive or mislead. the Government's policy is to try to resolve all contractual issues in controversy by - Answer: mutual agreement at the contracting officer's level. mutual agreement at the contracting officer's level. - Answer: The payment of interest on contractor claims; Certification of contractor claims A civil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact. Contractor claims shall be submitted, in writing witihin - Answer: 6 years after accrual of a claim, unless the contracting parties agreed to a shorter time period. the contractor must certify the claim for amounts - Answer: exceeding $100,000 Contractor certification may be executed by - Answer: any person authorized to bind the contractor with respect to the claim. For claims the contracting officer shall: - Answer: Review the facts Consult with legal Coordinate with the contract administration office Prepare a written decision known as the "Contracting Officer's Final Decision" (COFD) (appeal guidance) The contractor may appeal to: - Answer: The agency board of contract appeals within 90 days of receiving the COFD The United States Court of Federal Claims within 12 months receiving the COFD. T or F If a contracting officer denies a contractor's claim in a Contracting Officer's Final Decision, the contractor must continue contract performance. - Answer: True Acquisition Team - Answer: all participants in Government acquisition including not only representatives of the technical, supply, and procurement communities but also the customers they serve, and the contractors who provide the products and services Administrative contracting officer (ACO) - Answer: refers to a contracting officer who is administering contracts. Termination contracting officer (TCO) - Answer: refers to a contracting officer who is settling terminated contracts. Contracting officer's representative (COR) - Answer: is an individual, including a contracting officer's technical representative (COTR), designated and authorized in writing by the contracting officer to perform specific technical or administrative functions. The authority of the COR shall be - Answer: designated in writing, with a copy given to the contractor and the contract administration office FAR Part 42 - Answer: Contract Administration and Audit Services QASP - Answer: not apart of the contract prepared in conjunction with the PWS or SOO outlines all work that requires surveillance and the method of surveillance. contract administration begins - Answer: after a contract is awarded. T or F There is no regulatory requirement for a contract administration plan. - Answer: True Payment due dates - Answer: later of the two: The 30th day after the designated billing office receives a proper invoice The 30th day after Government acceptance of supplies delivered or services performed. Payment final invoice - Answer: when the payment amount is subject to contract settlement actions, acceptance is deemed to occur on the effective date of the contract settlement. All invoice payments - Answer: must be supported by a receiving report or other Government documentation authorizing payment The Government will not make invoice payments earlier than - Answer: 7 days prior to the due dates specified in the contract unless on a case-by-case basis use of accelerated payment methods are necessary When a discount for prompt payment is taken - Answer: payment office will make payment as close as possible to, but not later than, the end of the discount period. Interest penalties. - Answer: proper invoice receiving report or other Government documentation with no disagreements final invoice with no contract settlement actions paid after the due date interim payments on cost-reimbursement contracts for services, when payment is made more than 30 days after the designated billing office receives a proper invoice. Advance payments - Answer: they are not measured by performance, they differ from partial, progress, or other payments based on the performance or partial performance of a contract. Progress payments - Answer: Payments based on the percentage or stage of completion accomplished Payments for partial deliveries accepted by the Government Partial payments for a contract termination proposal Performance-based payments. Partial Delivery Payments - Answer: agencies must pay for partial delivery of supplies or partial performance of services unless specifically prohibited by the contract Progress payments based on a percentage or stage of completion - Answer: used as a payment method under agency procedures. may not exceed 80 percent of the eligible costs of work accomplished on undefinitized contract actions. Performance-based payments - Answer: Performance measured by objective, quantifiable methods Accomplishment of defined events Other quantifiable measures of results FAR Policy for Furnishing Property to contractors - Answer: FAR 45 Government's best interest overall benefit to the acquisition significantly outweighs the increased cost does not substantially increase the Government's assumption of risk Government requirements cannot otherwise be met T or F Government property shall normally be provided on a rent-free basis - Answer: true The KO may authorize the rent-free use by nonprofit organizations when - Answer: used for research, development, or educational work national interest will not be used for the direct benefit of a profit-making organization receives some direct benefit, such as rights to use the results of the work without charge