AF Contracting Officer Study Guide Questions And
Well Elaborated Solutions
*Acquisition Strategy Panel (ASP)*
AFFARS 5307.104-92; AFICA MP 5307.104-92
(2016-05-31)
Q: Who prepares the ASP minutes, when are they prepared and who approves them?
*AIR FORCE ONLY* -ANSWER Program manager, CO or Commodity Council Director
prepares following the conclusion of the ASP briefing, and approved by the ASP
chairperson.
*Modifications*
FAR 43
(2016-05-27)
Q: You have a contract with established terms and conditions. A FAC adds a new
clause and makes it mandatory for all contractual efforts that are funded with RDT&E
funds. What do you do? -ANSWER There are two options, with the first being the
preferred initial approach:
1. Negotiate to add clauses - how the new requirement will impact the contract.
2. Submit waiver to not include the clauses within the contract.
*Contract Administration*
FAR 42
(2016-05-31)
Q: While administering a contract, you find that the contractor had been submitting the
Material Inspection and Receiving Report (DD250) with language included in the body
of the DD250 that represents an additional contract term or condition not captured in
the contract. (1) Assume you disagree with the content of the language and (2) the
Gov't has previously signed some DD250's that included the language. (3) What are
your actions? -ANSWER At a minimum, I would submit a PCO letter to the contractor
,informing them that the added language is inappropriate and the language does not
constitute any change to current contract conditions and the language shall be removed
from the DD250 and resubmitted. Discuss with Legal.
*Options*
FAR 2.101 & 17.2, DFARS 217.2, AFFARS 5317.2, AFMC MP 5317.2
(2016-05-31)
Q: You have a contract with an options clause. The option expires Oct 1, it is now Oct
5th. The Program Office wants the work done immediately and he tells you get the
option on contract ASAP. What do you do? -ANSWER 1. The contract is DEAD at this
point.
2. Another option would be to do a short contract after getting a J&A approved. This
option would be in place until a full contract could be pulled together.
*Fair & Reasonable*
FAR 15.402
(2016-05-31)
Q: I recently read a DoD IG finding that examined a case were the PCO stated in the
PNM that the price agreed to was not fair and reasonable, but due to an urgent need
the contract was awarded anyway. The DoD IG commended the activity for
acknowledging this. Would you award a contract at a price that you thought was
unreasonable? IF so why? If not why? -ANSWER Don't award. The Government must
award a contract that establish best value utilizing fair and reasonable prices.
*Military Interdepartmental Purchase Request (MIPR)*
31 U.S.C. 1535; FAR 17.502-2
(2016-05-31)
Q: Your program is experiencing problem related to its GPS system. The PM wants to
send money to the Department of Energy to support various software patches that may
fix the issue. The PM asks you to approve the MIPR for this action. What do you
consider prior to coordinating on the MIPR? Are you the final approver? -ANSWER An
Economy Act D&F must be completed and executed before placing an order for
supplies or services with another Government agency. The D&F documents the
specific rationale and required justification that use on an interagency acquisition is in
the best interest of the Government. The approver is the Wing Director.
,*Excessive Pass Through Costs*
FAR 52.215-22 and 23
(2016-05-31)
Q: You are evaluating a proposal and find a large primary component of the proposal is
subcontractor quote of $800K. At what point do you have to consider excessive pass
through costs? -ANSWER If 70% of the proposed effort is being accomplished by
subcontractors you have to look at excessive pass through FAR 52.215-22 and 23.
There are things the sub and prime have to submit and the CO has to evaluate.
*Weighted Guide Lines*
DFAR 215.404-74
(2016-05-31)
Q: A junior buyer presents you a contractor's proposal that contains a cost plus award
fee (CPAF) contract and asks you for assistance in working the WGL to establish a
Government objective. How do you respond? -ANSWER 215.404-74 Fee requirements
for cost-plus-award-fee contracts.
*Fee Objective*
FAR 15.404 (c) (4) (i)
(2016-05-31)
Q: Your buyer is working the negotiation of a contractor's proposal for a multimillion
dollar Cost Plus Fixed Fee (CPFF) effort for a highly visible, munitions upgrade
development program. He comes to you and states that he has successfully reached
price agreement, just above the Government's fee objective of 15%. What is your
response? -ANSWER The contracting officer shall not negotiate a price or fee that
exceeds the following statutory limitations, imposed by 10 U.S.C. 2306(d) and 41
U.S.C. 254(b):
(A) For experimental, developmental, or research work performed under a cost-
plusfixed-fee contract, the fee shall not exceed 15 percent of the contract's estimated
cost, excluding fee.
(B) For architect-engineer services for public works or utilities, the contract price or
the estimated cost and fee for production and delivery of designs, plans, drawings, and
specifications shall not exceed 6 percent of the estimated cost of construction of the
public work or utility, excluding fees.
, (C) For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the
contract's estimated cost, excluding fee.
*Undefinitized Contract Action*
DFARS 217.74
(2016-05-31)
Q: As a PCO you may be required to issue an Undefinitized Contract Action (UCA).
Please explain what two clauses you would want to ensure was in the contract and
why? -ANSWER 1. FAR 52.216-24, Limitation of Government Liability
2. DFARS 252.217-7027, Contract Definitization
The purpose of the clauses is to limit the Government's liability and to set up the
process and timeline for definitizing the contract.
*Cost Analysis*
FAR 15.404-1 (c)
(2016-05-31)
Q: What is cost analysis? -ANSWER Review and evaluation of separate elements and
profit of contractor's proposal. The application of judgment to determine how well
proposed costs represent what the cost of the contract should be assuming reasonable
economy and efficiency. Techniques include verification of cost or pricing data and
evaluation of cost elements; projection of offeror's cost trends based on
current/historical cost/pricing data; audit and negotiated indirect cost, labor and COM
rates.
*IDIQ*
FAR 16.504 (a)
(2016-05-31)
Q: How does the PCO compute the minimum and maximum quantity on an IDIQ
contract? -ANSWER 1. Minimum-Should be more than a nominal quantity but should
not exceed amount the Government is fairly certain to order.
2. Maximum - A reasonable max should be established by conducting market research
trends on recent contracts for similar supply/svcs, survey of potential users, other
rational basis.
Well Elaborated Solutions
*Acquisition Strategy Panel (ASP)*
AFFARS 5307.104-92; AFICA MP 5307.104-92
(2016-05-31)
Q: Who prepares the ASP minutes, when are they prepared and who approves them?
*AIR FORCE ONLY* -ANSWER Program manager, CO or Commodity Council Director
prepares following the conclusion of the ASP briefing, and approved by the ASP
chairperson.
*Modifications*
FAR 43
(2016-05-27)
Q: You have a contract with established terms and conditions. A FAC adds a new
clause and makes it mandatory for all contractual efforts that are funded with RDT&E
funds. What do you do? -ANSWER There are two options, with the first being the
preferred initial approach:
1. Negotiate to add clauses - how the new requirement will impact the contract.
2. Submit waiver to not include the clauses within the contract.
*Contract Administration*
FAR 42
(2016-05-31)
Q: While administering a contract, you find that the contractor had been submitting the
Material Inspection and Receiving Report (DD250) with language included in the body
of the DD250 that represents an additional contract term or condition not captured in
the contract. (1) Assume you disagree with the content of the language and (2) the
Gov't has previously signed some DD250's that included the language. (3) What are
your actions? -ANSWER At a minimum, I would submit a PCO letter to the contractor
,informing them that the added language is inappropriate and the language does not
constitute any change to current contract conditions and the language shall be removed
from the DD250 and resubmitted. Discuss with Legal.
*Options*
FAR 2.101 & 17.2, DFARS 217.2, AFFARS 5317.2, AFMC MP 5317.2
(2016-05-31)
Q: You have a contract with an options clause. The option expires Oct 1, it is now Oct
5th. The Program Office wants the work done immediately and he tells you get the
option on contract ASAP. What do you do? -ANSWER 1. The contract is DEAD at this
point.
2. Another option would be to do a short contract after getting a J&A approved. This
option would be in place until a full contract could be pulled together.
*Fair & Reasonable*
FAR 15.402
(2016-05-31)
Q: I recently read a DoD IG finding that examined a case were the PCO stated in the
PNM that the price agreed to was not fair and reasonable, but due to an urgent need
the contract was awarded anyway. The DoD IG commended the activity for
acknowledging this. Would you award a contract at a price that you thought was
unreasonable? IF so why? If not why? -ANSWER Don't award. The Government must
award a contract that establish best value utilizing fair and reasonable prices.
*Military Interdepartmental Purchase Request (MIPR)*
31 U.S.C. 1535; FAR 17.502-2
(2016-05-31)
Q: Your program is experiencing problem related to its GPS system. The PM wants to
send money to the Department of Energy to support various software patches that may
fix the issue. The PM asks you to approve the MIPR for this action. What do you
consider prior to coordinating on the MIPR? Are you the final approver? -ANSWER An
Economy Act D&F must be completed and executed before placing an order for
supplies or services with another Government agency. The D&F documents the
specific rationale and required justification that use on an interagency acquisition is in
the best interest of the Government. The approver is the Wing Director.
,*Excessive Pass Through Costs*
FAR 52.215-22 and 23
(2016-05-31)
Q: You are evaluating a proposal and find a large primary component of the proposal is
subcontractor quote of $800K. At what point do you have to consider excessive pass
through costs? -ANSWER If 70% of the proposed effort is being accomplished by
subcontractors you have to look at excessive pass through FAR 52.215-22 and 23.
There are things the sub and prime have to submit and the CO has to evaluate.
*Weighted Guide Lines*
DFAR 215.404-74
(2016-05-31)
Q: A junior buyer presents you a contractor's proposal that contains a cost plus award
fee (CPAF) contract and asks you for assistance in working the WGL to establish a
Government objective. How do you respond? -ANSWER 215.404-74 Fee requirements
for cost-plus-award-fee contracts.
*Fee Objective*
FAR 15.404 (c) (4) (i)
(2016-05-31)
Q: Your buyer is working the negotiation of a contractor's proposal for a multimillion
dollar Cost Plus Fixed Fee (CPFF) effort for a highly visible, munitions upgrade
development program. He comes to you and states that he has successfully reached
price agreement, just above the Government's fee objective of 15%. What is your
response? -ANSWER The contracting officer shall not negotiate a price or fee that
exceeds the following statutory limitations, imposed by 10 U.S.C. 2306(d) and 41
U.S.C. 254(b):
(A) For experimental, developmental, or research work performed under a cost-
plusfixed-fee contract, the fee shall not exceed 15 percent of the contract's estimated
cost, excluding fee.
(B) For architect-engineer services for public works or utilities, the contract price or
the estimated cost and fee for production and delivery of designs, plans, drawings, and
specifications shall not exceed 6 percent of the estimated cost of construction of the
public work or utility, excluding fees.
, (C) For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the
contract's estimated cost, excluding fee.
*Undefinitized Contract Action*
DFARS 217.74
(2016-05-31)
Q: As a PCO you may be required to issue an Undefinitized Contract Action (UCA).
Please explain what two clauses you would want to ensure was in the contract and
why? -ANSWER 1. FAR 52.216-24, Limitation of Government Liability
2. DFARS 252.217-7027, Contract Definitization
The purpose of the clauses is to limit the Government's liability and to set up the
process and timeline for definitizing the contract.
*Cost Analysis*
FAR 15.404-1 (c)
(2016-05-31)
Q: What is cost analysis? -ANSWER Review and evaluation of separate elements and
profit of contractor's proposal. The application of judgment to determine how well
proposed costs represent what the cost of the contract should be assuming reasonable
economy and efficiency. Techniques include verification of cost or pricing data and
evaluation of cost elements; projection of offeror's cost trends based on
current/historical cost/pricing data; audit and negotiated indirect cost, labor and COM
rates.
*IDIQ*
FAR 16.504 (a)
(2016-05-31)
Q: How does the PCO compute the minimum and maximum quantity on an IDIQ
contract? -ANSWER 1. Minimum-Should be more than a nominal quantity but should
not exceed amount the Government is fairly certain to order.
2. Maximum - A reasonable max should be established by conducting market research
trends on recent contracts for similar supply/svcs, survey of potential users, other
rational basis.
