CONTRACTING OFFICER WARRANT BOARD QUESTIONS AND ANSWERS.CONTRACTING OFFICER WARRANT BOARD QUESTIONS AND ANSWERS.CONTRACTING OFFICER WARRANT BOARD QUESTIONS AND ANSWERS.

CONTRACTING OFFICER WARRANT e e


BOARD QUESTIONS AND ANSWERS
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You e are e the e PCO e for e a e major e competitive e negotiated e source e selection. e The
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e RFP, e which e reflects e the e user's e requirements e and e is e based e on e the e user's
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e budget, e has e a e requirement e for e 220 e cargo e loaders e to e be e delivered e at e 55 e per
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e year e over e the e next e four e years. e One e offeror e proposes e to e deliver e all e 220
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e loaders e in e the e first e year e at e a e dramatically e reduced e price. e Can e you e accept
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e the e offeror's e proposal? e What e factors e should e you e consider e in e your e decision? e -
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e Correct e Answer e - e You e can e accept e the e offeror's e proposal e under e certain
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e circumstances. e Firstly, e what e did e the e RFP e say e about e alternate e proposals? e Is
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e this e a e situation e where e requirements e are e changed e and e the e other e offerors
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e should e be e allowed e to e propose e on e the e basis e of e the e changed e requirements?
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e You e need e to e ask e the e user e if e he e wants e all e 220 e in e the e first e year e and e are
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e the e operating e locations e physically e able e to e accommodate e their e loaders e in e the
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e first e year. e Finally, e the e offeror e could e be e taken e into e discussions e and e asked e to
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e conform e to e the e RFP e with e there e being e the e possibility e of e not e being e selected
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e for e award e or e elimination e from e the e competitive e range e if e the e proposal e is e not
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e made e compliant e with e the e RFP.
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You e are e the e PCO e on e a e new e $2B e aircraft e development e program. e The
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e program e is e in e contract e negotiations e for e a e Fixed e Price e Incentive e (Firm e Target)
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e System e Development e and e Demonstration e contract e award e to e a e sole e source
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e contractor. e The e program e director, e a e fast-burning e young e colonel, e e-mails e you
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e that e she e is e very e concerned e with e the e aircraft's e ultimate e speed e at e the e full
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e specification e payload. e She e would e like e the e contractor e to e achieve e the e faster,
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e desired e objective e speed e rather e than e the e mandatory e threshold e speed, e and
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e thinks e that e an e objective e performance e incentive e would e be e the e way e to e go e to
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e achieve e her e goal. e You e are e asked e to e go e to e her e office e and e discuss e the
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e matter e and e the e issues e involved e in e using e such e an e incentive. e What e do e you
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e tell e the e colonel? e - e Correct e Answer e - e There e are e a e number e of e considerations
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e for e the e colonel:
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The e desired e additional e speed e should e provide e benefit e to e the e Air e Force e in
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e order e to e justify e the e expenditure e of e funds e to e achieve e it. e The e colonel e should
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e be e able e to e articulate e the e justification.
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The e situation e is e very e amenable e to e a e classic e performance e incentive e that e would
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e allow e the e contractor e to e earn e profit e for e achieving e the e desired e speed e above
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e and e beyond e what e the e final e FPIF e profit e would e be e for e achieving e threshold
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e speed. e If e the e contractor e perceives e this e can't e happen, e he e will e either e not e sign
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e up e to e the e incentive e or e will e ignore e it e from e Day e One.
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The e incentive e and e resulting e payment e have e to e be e structured e so e as e to e be
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e based e on e observable, e measurable e results e that e would e determine e how e much e is
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,ecearned ecby ecthe eccontractor. ecSubjectivity ecis ecnot ecallowable ecunder eccurrent ecAF
ecpolicy ecwithout ecHCA ecapproval.
We e have e to e be e very e careful e to e understand e what e possible e unintended
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e consequences e could e be e caused e by e the e existence e of e this e feature e in e the
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e contract. e For e example, e will e the e contractor e reduce e aircraft e weight e beyond e safe
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e limits e in e order e to e help e achieve e the e payment? e Also, e will e the e contractor
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e consume e excessive e schedule e to e get e the e extra e speed?
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There e has e to e be e a e cost e incentive e in e place e so e that e the e contractor e doesn't
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e spend e an e unconstrained e amount e of e money e to e win e the e payment, e such e as
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e under e a e CPFF e contract. e The e FPIF e share e line e serves e this e purpose e when
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e balanced e against e the e incentive.
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The e incentive e has e to e be e balanced e with e the e FPIF e share e line e so e that e the
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e contractor e doesn't e spend e more e money e to e achieve e the e desired e speed e than e he
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e has e potential e to e earn e by e receiving e the e payment. e Similarly, e the e contractor
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e can't e be e allowed e to e spend e an e excessive e amount e of e money e with e little e cost
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e penalty e to e achieve e success.
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: e In e AFRL, e Contracting e Officers e are e also e Grants e Officers. e They e can e award
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e Grants e and e Assistance e Instruments e as e well e as e contracts. e What e is
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e Assistance? e How e does e it e differ e from e Acquisition? e What e gives e the e Grants
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e Officers e their e authority e to e enter e into e assistance? e What e are e the e types e of
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e Assistance? e - e Correct e Answer e - e When e the e principal e purpose e is e to e transfer e a
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e thing e of e value, e to e carry e out e a e public e purpose e of e support e or e stimulation
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e authorized e by e law e of e the e United e States, e it e is e Assistance.
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Acquisition, e by e contrast, e has e the e principal e purpose e of e acquiring e property e or
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e services e for e the e direct e benefit e or e use e of e the e United e States e Government.
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Federal e agencies e must e be e authorized e by e statute e to e support e or e stimulate e a
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e public e purpose. e The e statutory e authority e from e Congress e must e exist e either e in
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e broad e legislation e or e in e a e program-specific e statute. e Absent e that e statutory
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e authority, e a e Grants e Officer e may e not e use e an e assistance e instrument.
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Authorities e to e issue e Assistance e can e be e of e three e types: e (1) e Provide e to e the
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e Secretary e of e Defense e by e statute, e e.g., e 10 e U.S.C. e 2391; e (2) e Authority
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e provided e to e DoD e components e that e requires e no e delegation e by e the e Secretary
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e of e Defense, e e.g., e 10 e U.S.C. e 2358; e (3) e Authority e coming e indirectly e from
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e statutes, e i.e., e federal e statute e authorizing e a e program e that e is e consistent e with
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e using e a e grant e or e cooperative e agreement.
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Two e types e of e Assistance e are e Grants e and e Cooperative e Agreements. e They e differ
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e in e the e following e way: e In e a e Grant, e substantial e involvement e is e not e expected
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e between e the e agency e and e the e recipient. e In e Cooperative e Agreement, e substantial
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e involvement e is e expected e between e the e agency e and e the e recipient. e Cooperative
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e Agreements, e then, e are e particularly e useful e in e the e research e arena e when e the
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e Government e is e interested e in e being e involved e in e program e decisions e or e may e be
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e doing e some e testing e or e research e themselves.
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You e are e the e Contracting e Officer e on e a e new e Research e and e Development
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e program. e Proposals e were e recently e received e in e response e to e a e Broad e Agency
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,ecAnnouncement, ecand eca ecCost ecPlus ecFixed ecFee eccontract ectype ecis ecanticipated. ecThe
ecproposal ecmost ecfavored ecby ecthe ectechnical ecteam ecwas ecpriced ecsignificantly ecunder
ecwhat ecwas ecestimated ecfor ecthe eceffort. ecThe eccontractor ecproposed ecfee ecin ecan
ecamount ecthat ecequates ecto ec20% ecof ecthe ecestimated eccost. ecThe ecusers echave ecmore
ecthan ecenough ecfunds ecto eccover ecthe ecproposal ecand ecwant ecyou ecto ecaccept ecthe ecprice
ecas ecis. ecHow ecshould ecyou ecadvise ecthe ecuser ecand ecwhat ecfactors ecshould ecyou
ecconsider ecin ecdetermining eca ecreasonable ecfee? ec- ecCorrect ecAnswer ec- ecThe ecstatutory
eclimitation econ ecfee ecfor ecCPFF ectype eccontracts ecdo ecno ecpermit ecexceeding ec15% ecof
ecestimated eccost ecfor ecexperimental, ecdevelopmental, ecor ecresearch ecperformed ecunder
eca ecCPFF eccontract. ecSince ecthe ecproposed ecamount ecof ecfee ecis ecoutside ecthe
ecstatutory eclimitations ecyou ecneed ecto ecdetermine ecwhat eca ecfair ecand ecreasonable ecrate
ecis ecthat ecfalls ecwithin ecthe eclimitations. ecThe ecFAR ecrecommends eca ecstructured
ecapproach ecfor ecdetermining ecfee ecsuch ecas ecWeighted ecGuidelines. ecIf eca eccost
ecreasonableness ecreview ecdetermines ecthe ecestimated eccosts ecto ecbe ecacceptable, ecwe
eccan ecstill ecnegotiate ecand ecadjust ecthe ecfee.


You e are e the e Contracting e Officer e for e a e well e established e transport e aircraft
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e program. e The e program e is e nearing e the e end e of e production. e A e Program
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e Manager e approaches e you e requesting e that e you e issue e a e Broad e Area
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e Announcement e (BAA) e to e support e the e development e of e a e source e list e to e supply
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e active e noise e reducing e headsets. e The e headsets e are e commercially e available
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e from e multiple e sources e and e the e PM e wants e to e receive e performance
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e specification e sheets e from e each e offeror e and e then e request e sample e headsets e be
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e submitted e for e testing. e The e end e result e of e the e effort e will e be e the e development
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e of e a e source e list e that e can e be e used e by e various e Air e Force e Bases e to
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e individually e procure e the e needed e headsets e for e the e Base's e specific
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e requirements. e The e PM e tells e you e that e he e will e not e be e procuring e any e of e the
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e headsets e as e a e result e of e the e BAA. e What e do e you e advise e the e PM? e - e Correct
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e Answer e - e You e should e advise e the e PM e that e BAAs e are e a e method e of
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e solicitation e and e can e only e be e used e if e the e Government e intends e to e award e a
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e contract. e You e might e suggest e that e the e development e of e the e source e list e could
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e be e achieved e by e issuing e a e Sources e Sought e Synopsis e with e the e synopsis
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e specifying e the e 2 e step e process e (spec e sheets e first e and e then e sample e headsets
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e from e selected e offerors), e and e the e ultimate e intent e of e the e process, e e.g., e a
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e source e list e for e use e by e individual e users e in e future e procurements. e You e might
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e also e advise e the e PM e that e there e could e be e liability e issues e associated e with e the
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e use, e handling, e and e return e of e the e headsets e to e the e offerors e and e that e it e might
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e be e appropriate e for e the e Government e to e cover e shipping e and e any e damage/wear
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e to e the e units e for e the e testing.
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A. e Under e what e circumstances e is e ratification e of e an e unauthorized e commitment
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e permitted?
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B. e In e general, e what e are e the e generic e procedures e for e handling e ratification
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e actions?
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C. e Who e are e the e approval e authorities e for e ratifications? e - e Correct e Answer e - e A.
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e If e the e contract e award e would e have e been e proper e if e executed e by e a e warranted
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, ecPCO, ecthe ecprice eccan ecbe ecdetermined ecto ecbe ecfair ecand ecreasonable, ecand ecthere
ecmust echave ecbeen ecenough ecof ecthe ecproper ectype ecof ecfunding ecavailable ecto ecpay ecfor
ecthe ecitem ecboth ecat ecthe ectime ecof ecthe eccommitment ecand ecat ecthe ectime ecof ecthe
ecratification.
B. e An e investigation e is e required e to e be e completed e within e 30 e days e of e discovery
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e of e the e unauthorized e commitment e explaining e how e and e why e it e occurred, e how
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e future e occurrences e will e be e avoided, e and e describing e any e corrective e actions
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e taken e against e responsible e individuals. e Legal e review e is e also e required. e
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C. e HCA e for e actions e of e $30K e or e more e and e COCO e for e actions e under e $30K
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You e are e the e Contracting e Officer e for e a e much-delayed e effort. e On e Friday e you
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e finally e receive e the e necessary e authority e to e release e the e contract e for e signature.
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e It's e late e on e Friday e afternoon e when e you e e-mail e the e modification e to e the
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e contractor e for e signature. e The e only e person e at e the e contractor's e office e on e Friday
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e afternoon e is e the e Company e President's e 17 e year e old e daughter e who e is e working
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e there e as e a e summer-hire e secretary. e She e knows e her e father e urgently e wants e the
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e contract e modification e so e she e signs e the e document e and e returns e it e to e your
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e office. e You e note e the e last e name e is e the e same e as e the e President's e so e assume
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e that e he's e the e one e who e signed e the e modification. e Is e this e a e legal e agreement? e -
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e Correct e Answer e - e Probably e not. e The e elements e of e a e contract e are e - e offer,
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e acceptance, e consideration, e for e a e lawful e purpose, e certainty e of e terms, e and e legal
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e capacity. e It e is e unlikely e that e a e 17 e year e old e summer e hire e would e have e the
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e authority e to e bind e the e company, e regardless e of e her e relationship e to e the
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e Company e President. e Courts e may e generally e find e that e individuals e lack e "the e age
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e majority" e if e they e are e under e 18 e years e of e age. e
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The e law e in e a e given e jurisdiction e may e never e actually e use e the e term e "age e of
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e majority" e and e the e term e thereby e refers e to e a e collection e of e laws e bestowing e the
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e status e of e adulthood. e The e age e of e majority e is e a e legally e fixed e age, e concept, e or
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e statutory e principle, e which e may e differ e depending e on e the e jurisdiction, e and e may
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e not e necessarily e correspond e to e actual e mental e or e physical e maturity e of e an
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e individual.
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In e practical e terms, e there e are e certain e specific e actions e which e a e person e who
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e attains e the e age e of e majority e is e permitted e to e take, e which e they e could e not e do
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e before. e These e may e include e entering e into e a e binding e contract, e buying e stocks,
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e voting, e buying e and/or e consuming e alcoholic e beverages, e driving e motor e vehicles
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e on e public e roads, e and e marrying e without e obtaining e consent e of e others. e The
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e ages e at e which e these e various e rights e or e powers e may e be e exercised e vary e as
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e between e the e various e rights e and e as e between e different e jurisdictions. e For
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e example, e the e ages e at e which e a e person e may e obtain e a e license e to e drive e a e car
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e or e consume e alcoholic e beverages e vary e considerably e between e and e also e within
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e jurisdictions.
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You e are e the e Contracting e Officer e for e a e follow-on e buy e source e selection. e The
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e current e effort e has e had e the e same e Program e Manager e for e over e 10 e years. e She
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e began e as e the e PM e while e still e a e Military e Officer e and e then e retired e and e was e re-
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hired e as e an e A&AS e employee e to e continue e to e manage e the e program. e She e has
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