CONTRACTING OFFICER WARRANT
BOARD QUESTIONS & ANSWERS
(RATED A+)
A. Under what circumstances is ratification of an unauthorized commitment
permitted?
B. In general, what are the generic procedures for handling ratification actions?
C. Who are the approval authorities for ratifications? - ANSWERA. If the contract
award would have been proper if executed by a warranted PCO, the price can be
determined to be fair and reasonable, and there must have been enough of the
proper type of funding available to pay for the item both at the time of the
commitment and at the time of the ratification.
B. An investigation is required to be completed within 30 days of discovery of the
unauthorized commitment explaining how and why it occurred, how future
occurrences will be avoided, and describing any corrective actions taken against
responsible individuals. Legal review is also required.
C. The ratification approving official for all unauthorized commitments valued at or
above $1M is the SPE. The ratification approving official for all Non-DISA
unauthorized commitments (regardless of amount) and DISA unauthorized
commitments valued below $1M is the HCA. (DARS 1.602-3(b)(2))
The law in a given jurisdiction may never actually use the term "age of majority" and
the term thereby refers to a collection of laws bestowing the status of adulthood. The
age of majority is a legally fixed age, concept, or statutory principle, which may differ
depending on the jurisdiction, and may not necessarily correspond to actual mental
or physical maturity of an individual.
In practical terms, there are certain specific actions which a person who attains the
age of majority is permitted to take, which they could not do before. These may
include entering into a binding contract, buying stocks, voting, buying and/or
consuming alcoholic beverages, driving motor vehicles on public roads, and
marrying without obtaining consent of others. The ages at which these various rights
or powers may be exercised vary as between the various rights and as between
different jurisdictions. For example, the ages at which a person may obtain a license
to drive a car or consume alcoholic beverages vary considerably between and also
within jurisdictions.
You are the Contracting Officer for a follow-on buy source selection. The current
effort has had the same Program Manager for over 10 years. She began as the PM
while still a Military Officer and then retired and was re-hired as an A&AS employee
to continue to manage the program. She has extensive experience on the program
and is considered a Primary "Go To" person for all Program-related managerial
issues.
The Program Director wants to utilize the PM's experience to the fullest extent
possible and has proposed that the PM be listed as chief of the technical evaluation
team and also a voting member of the source selection board.
,Is it permissible to have a non-Government employee (A&AS contractor) as chief of
the technical evaluation team and a voting member of the source selection board? -
ANSWERIt is not permissible to have a non-Government employee as a voting
member of any source selection board. FAR 7.503(c)(12)(ii). FAR policy states that
contracts shall not be used for the performance of inherently governmental functions.
OMB may review Agency decisions to determine whether a function is or is not an
inherently governmental function, but a list of examples is in FAR 7.503(c). They
include: control of criminal investigations or prosecutions, command of military
forces, determination of agency policy and application of regulations, determining
budget priorities, and direction and control of federal employees. Specifically,
included in this list are determining what supplies or services shall be acquired by
the Government on a prime contract and being a voting member of any source
selection boards
You have a contract for engineering services with a basic period of performance and
several one year options for continued performance. The contract states that all
options must be exercised by 1 October of each year. The basic period of
performance has just expired and on 5 October you realize that you never exercised
the option for continued performance. There is still an immediate need for the
services. How would you try to rectify this situation? - ANSWEROnce the option has
expired there is no contract. You may have to prepare a J&A (depending on your
original authorizations) and enter into a bilateral agreement with the contractor to
obtain continued performance by the same contractor. The contractor is entitled to
renegotiate the price.
The end of the fiscal year 10 is coming up and you get a phone call from HQ telling
you that several million dollars just became available - they don't want the money to
go to waste and want to give it to you to support your requirements. Your Program
Director urges you to use the money to buy spare parts for his aircraft which have
been operating 24/7 since "the war" began. The Program Director has estimated the
funds will by enough replenishment spares for the remainder of the war. Do you
have any concerns? - ANSWERYou have two major concerns. First, you have to ask
HQ the color of money and year of the funds they want to send you. Do not assume
that they are sending you FY10 O&M funds. If they are sending you FY10 O&M
funds you can use the funds for "operations and maintenance' but you will have to
obligate the money before the end of the fiscal year closes out.
Once you have determined the kind and year of money, you can address the
Program Director's request. Since the Program Director is asking you to buy
replenishment spares, you can use the money to buy these spares assuming the
Program Director can show you a bona fide need for the spares. This means you
can buy sufficient spares for a current need (which includes a reasonable inventory)
but you cannot stockpile. Even if the contractor cannot deliver the spares in FY10,
you still have a bona fide need of FY10 if the contractor can deliver the spares in a
"reasonable" time.
Here the Program Director appears to want you to buy spares sufficient to satisfy his
needs for the entire war, a sure indication of his intent to stockpile. You will have to
go back to the program director to find out the spares he can actually put on an
aircraft right now plus find out what a reasonable inventory is for his program. You
cannot use current O&M funds to satisfy a "future" need since that violates the bona
fide needs rule.
, You are the Contracting Officer for a much-delayed effort. On Friday you finally
receive the necessary authority to release the contract for signature. It's late on
Friday afternoon when you e-mail the modification to the contractor for signature.
The only person at the contractor's office on Friday afternoon is the Company
President's 17 year old daughter who is working there as a summer-hire secretary.
She knows her father urgently wants the contract modification so she signs the
document and returns it to your office. You note the last name is the same as the
President's so assume that he's the one who signed the modification. Is this a legal
agreement? - ANSWERProbably not. The elements of a contract are - offer,
acceptance, consideration, for a lawful purpose, certainty of terms, and legal
capacity. It is unlikely that a 17 year old summer hire would have the authority to
bind the company, regardless of her relationship to the Company President. Courts
may generally find that individuals lack "the age majority" if they are under 18 years
of age.
Please define a Certificate of Current Cost or Pricing Data and its purpose. What are
some of the key things you would expect to see or review before accepting the
certificate? There are several exceptions to obtaining a Certificate - please list some
of them. - ANSWERThe definition is as follows: A Certificate of Current Cost or
Pricing Data certifies that to the best of the company's knowledge, the cost or pricing
data submitted were accurate, complete, and current as of the date of agreement on
price or, if applicable, an earlier date agreed upon between the parties that is as
close as practicable to the date of agreement on price. The purpose is to have the
company commit as to the accuracy, completeness, and currency of submitted data.
If the data is later found to be incorrect or appropriate data was not submitted, the
government reserves the right to a downward contract price adjustment for any
monetary damages incurred.
Key things we would expect to see or review in a Certificate are:
The certificate is in the format shown in FAR 15.406-2
Current as of the date of agreement on price or an earlier agreed upon date
Signed by an authorized representative of the company and dated as close as
practicable to the date when price negotiations were concluded
Check for qualifications or new information disclosed by the sweep and evaluate its
impact on the negotiated price
Exceptions:
Adequate Price Competition
Prices set by law or regulation
Commercial Item
Waiver has been granted
Mod to a contract/subcontract for commercial items
What is the requirement for obligating funds when awarding indefinite-quantity
contracts? - ANSWER(1) For indefinite-delivery indefinite-quantity (IDIQ) contracts
all supplies and services to be furnished shall be obtained via delivery orders(s) or
task order(s) issued by individuals designated in the contract.
(2) Upon execution of the contract, an obligation shall be recorded based upon the
issuance of a delivery or task order for the cost/price of the minimum quantity
specified. Obtaining a certification of availability of funding from the finance office
BOARD QUESTIONS & ANSWERS
(RATED A+)
A. Under what circumstances is ratification of an unauthorized commitment
permitted?
B. In general, what are the generic procedures for handling ratification actions?
C. Who are the approval authorities for ratifications? - ANSWERA. If the contract
award would have been proper if executed by a warranted PCO, the price can be
determined to be fair and reasonable, and there must have been enough of the
proper type of funding available to pay for the item both at the time of the
commitment and at the time of the ratification.
B. An investigation is required to be completed within 30 days of discovery of the
unauthorized commitment explaining how and why it occurred, how future
occurrences will be avoided, and describing any corrective actions taken against
responsible individuals. Legal review is also required.
C. The ratification approving official for all unauthorized commitments valued at or
above $1M is the SPE. The ratification approving official for all Non-DISA
unauthorized commitments (regardless of amount) and DISA unauthorized
commitments valued below $1M is the HCA. (DARS 1.602-3(b)(2))
The law in a given jurisdiction may never actually use the term "age of majority" and
the term thereby refers to a collection of laws bestowing the status of adulthood. The
age of majority is a legally fixed age, concept, or statutory principle, which may differ
depending on the jurisdiction, and may not necessarily correspond to actual mental
or physical maturity of an individual.
In practical terms, there are certain specific actions which a person who attains the
age of majority is permitted to take, which they could not do before. These may
include entering into a binding contract, buying stocks, voting, buying and/or
consuming alcoholic beverages, driving motor vehicles on public roads, and
marrying without obtaining consent of others. The ages at which these various rights
or powers may be exercised vary as between the various rights and as between
different jurisdictions. For example, the ages at which a person may obtain a license
to drive a car or consume alcoholic beverages vary considerably between and also
within jurisdictions.
You are the Contracting Officer for a follow-on buy source selection. The current
effort has had the same Program Manager for over 10 years. She began as the PM
while still a Military Officer and then retired and was re-hired as an A&AS employee
to continue to manage the program. She has extensive experience on the program
and is considered a Primary "Go To" person for all Program-related managerial
issues.
The Program Director wants to utilize the PM's experience to the fullest extent
possible and has proposed that the PM be listed as chief of the technical evaluation
team and also a voting member of the source selection board.
,Is it permissible to have a non-Government employee (A&AS contractor) as chief of
the technical evaluation team and a voting member of the source selection board? -
ANSWERIt is not permissible to have a non-Government employee as a voting
member of any source selection board. FAR 7.503(c)(12)(ii). FAR policy states that
contracts shall not be used for the performance of inherently governmental functions.
OMB may review Agency decisions to determine whether a function is or is not an
inherently governmental function, but a list of examples is in FAR 7.503(c). They
include: control of criminal investigations or prosecutions, command of military
forces, determination of agency policy and application of regulations, determining
budget priorities, and direction and control of federal employees. Specifically,
included in this list are determining what supplies or services shall be acquired by
the Government on a prime contract and being a voting member of any source
selection boards
You have a contract for engineering services with a basic period of performance and
several one year options for continued performance. The contract states that all
options must be exercised by 1 October of each year. The basic period of
performance has just expired and on 5 October you realize that you never exercised
the option for continued performance. There is still an immediate need for the
services. How would you try to rectify this situation? - ANSWEROnce the option has
expired there is no contract. You may have to prepare a J&A (depending on your
original authorizations) and enter into a bilateral agreement with the contractor to
obtain continued performance by the same contractor. The contractor is entitled to
renegotiate the price.
The end of the fiscal year 10 is coming up and you get a phone call from HQ telling
you that several million dollars just became available - they don't want the money to
go to waste and want to give it to you to support your requirements. Your Program
Director urges you to use the money to buy spare parts for his aircraft which have
been operating 24/7 since "the war" began. The Program Director has estimated the
funds will by enough replenishment spares for the remainder of the war. Do you
have any concerns? - ANSWERYou have two major concerns. First, you have to ask
HQ the color of money and year of the funds they want to send you. Do not assume
that they are sending you FY10 O&M funds. If they are sending you FY10 O&M
funds you can use the funds for "operations and maintenance' but you will have to
obligate the money before the end of the fiscal year closes out.
Once you have determined the kind and year of money, you can address the
Program Director's request. Since the Program Director is asking you to buy
replenishment spares, you can use the money to buy these spares assuming the
Program Director can show you a bona fide need for the spares. This means you
can buy sufficient spares for a current need (which includes a reasonable inventory)
but you cannot stockpile. Even if the contractor cannot deliver the spares in FY10,
you still have a bona fide need of FY10 if the contractor can deliver the spares in a
"reasonable" time.
Here the Program Director appears to want you to buy spares sufficient to satisfy his
needs for the entire war, a sure indication of his intent to stockpile. You will have to
go back to the program director to find out the spares he can actually put on an
aircraft right now plus find out what a reasonable inventory is for his program. You
cannot use current O&M funds to satisfy a "future" need since that violates the bona
fide needs rule.
, You are the Contracting Officer for a much-delayed effort. On Friday you finally
receive the necessary authority to release the contract for signature. It's late on
Friday afternoon when you e-mail the modification to the contractor for signature.
The only person at the contractor's office on Friday afternoon is the Company
President's 17 year old daughter who is working there as a summer-hire secretary.
She knows her father urgently wants the contract modification so she signs the
document and returns it to your office. You note the last name is the same as the
President's so assume that he's the one who signed the modification. Is this a legal
agreement? - ANSWERProbably not. The elements of a contract are - offer,
acceptance, consideration, for a lawful purpose, certainty of terms, and legal
capacity. It is unlikely that a 17 year old summer hire would have the authority to
bind the company, regardless of her relationship to the Company President. Courts
may generally find that individuals lack "the age majority" if they are under 18 years
of age.
Please define a Certificate of Current Cost or Pricing Data and its purpose. What are
some of the key things you would expect to see or review before accepting the
certificate? There are several exceptions to obtaining a Certificate - please list some
of them. - ANSWERThe definition is as follows: A Certificate of Current Cost or
Pricing Data certifies that to the best of the company's knowledge, the cost or pricing
data submitted were accurate, complete, and current as of the date of agreement on
price or, if applicable, an earlier date agreed upon between the parties that is as
close as practicable to the date of agreement on price. The purpose is to have the
company commit as to the accuracy, completeness, and currency of submitted data.
If the data is later found to be incorrect or appropriate data was not submitted, the
government reserves the right to a downward contract price adjustment for any
monetary damages incurred.
Key things we would expect to see or review in a Certificate are:
The certificate is in the format shown in FAR 15.406-2
Current as of the date of agreement on price or an earlier agreed upon date
Signed by an authorized representative of the company and dated as close as
practicable to the date when price negotiations were concluded
Check for qualifications or new information disclosed by the sweep and evaluate its
impact on the negotiated price
Exceptions:
Adequate Price Competition
Prices set by law or regulation
Commercial Item
Waiver has been granted
Mod to a contract/subcontract for commercial items
What is the requirement for obligating funds when awarding indefinite-quantity
contracts? - ANSWER(1) For indefinite-delivery indefinite-quantity (IDIQ) contracts
all supplies and services to be furnished shall be obtained via delivery orders(s) or
task order(s) issued by individuals designated in the contract.
(2) Upon execution of the contract, an obligation shall be recorded based upon the
issuance of a delivery or task order for the cost/price of the minimum quantity
specified. Obtaining a certification of availability of funding from the finance office
