What are some of the benefits of competition? What Government inadequacies or mistakes in the
specifications/PWS could cause a lack of competition? correct answers Benefits: Better price,
innovative solutions, more choices, allows strengths and weaknesses of vendors to be identified,
allows us to spread the wealth
Inadequacies: Poorly defined requirement, too restrictive specifications (i.e. brand name),
proprietary technology, lack of market research, customer loyalty (i.e. RA happy with current
contractor)
When acquiring commercial items, what contract type(s) are normally used? What type(s) are
prohibited? correct answers FAR 12.207: FFP, FFP w/EPA and TM/LH are acceptable. Any type
of cost contracts or CLINs are prohibited.
Why is it important to fully document the contract file? What is the current required
methodology for maintaining the history of each action? correct answers - For continuity and
legal purposes. Your file should tell the story so anyone can come in and take it over. For legal
purposes, you want to have all the proper documentation in case of a protest, claim, etc.
-Entries for each action should be made in PCF acquisition milestones using the comments field.
The complete file chronology can be printed out using "export" function.
What is price analysis & what are some of the methods used? correct answers Price analysis is
the process of examining and evaluating a proposed price without evaluating its separate cost
elements and proposed profit. Normally, adequate price competition establishes a fair and
reasonable price (see 15.403-1(c)(1)). (i) Comparison of proposed prices received in response to
the solicitation, (ii) Comparison of proposed prices to historical prices paid, whether by the
Government or other than the Government, for the same or similar items, (iii) Use of parametric
estimating methods/application of rough yardsticks; (iv) Comparison with competitive published
price lists, published market prices of commodities, similar indexes, and discount or rebate
arrangements; (v) Comparison of proposed prices with independent Government cost estimates;
(vi) Comparison of proposed prices with prices obtained through market research for the same or
,similar items; (vii) Analysis of data other than certified cost or pricing data provided by the
offeror.
As cited at FAR Part 12.403 Termination, the clause at 52.212-4 permits the Government to
terminate a contract for commercial items either for the convenience of the Government or for
cause. Please explain the difference between these two types of terminations. correct answers
Termination for cause.
- The paragraph in 52.212-4 entitled "Excusable Delay" requires contractors notify the
contracting officer as soon as possible after commencement of any excusable delay. In most
situations, this requirement should eliminate the need for a show cause notice prior to
terminating a contract. The contracting officer shall send a cure notice prior to terminating a
contract for a reason other than late delivery.
- The Government's rights after a termination for cause shall include all the remedies available to
any buyer in the marketplace. The Government's preferred remedy will be to acquire similar
items from another contractor and to charge the defaulted contractor with any excess
reprocurement costs together with any incidental or consequential damages incurred because of
the termination.
In almost all cases of termination for cause, the Gov't can use the remaining funds to re-procure.
This becomes an issue with many of our small ACS and Chaplain services contracts; A spouse
needs to PCS and the Gov't is reluctant to call that a termination for cause, but if we don't, the
garrison loses the funding to re-establish the services.
Termination for the Government's convenience.
When the contracting officer terminates a contract for commercial items for the Government's
convenience, the contractor shall be paid -
- The percentage of the contract price reflecting the percentage of the work performed prior to
the notice of the termination for fixed-price or fixed-price with economic price adjustment
contracts, or
, - An amount for direct labor hours (as defined in the Schedule of the contract) determined by
multiplying the number of direct labor hours expended before the effective date of termination
by the hourly rates(s) in the Schedule; and
- Any charges the contractor can demonstrate directly result
What determines a "personal" vs. "nonpersonal" services contract? correct answers Personal:
1. Appearance of employer/employee relationship between Govt and contractor
2. Requires HCA approval
3. Only authorized by law
Nonpersonal:
1. Consumer/provider relationship
2.Contractor directs his employees
Define market research and why we do it. What are some examples of techniques for market
research? correct answers Market research means collecting and analyzing information about
capabilities within the market to satisfy agency needs.
Market research is conducted to—
Ø Determine if commercial items or non-developmental items are available to meet the
Government's needs.
Ø Customary practices regarding customizing, modifying or tailoring of items to meet customer
needs and associated costs;
Ø Customary practices, including warranty, buyer financing, discounts, contract type considering
the nature and risk associated with the requirement, etc., under which commercial sales of the
products are made;
Ø The requirements of any laws and regulation unique to the item being acquired;
Ø The availability of items that contain recovered material and items that are energy efficient
Ø The distribution and support capabilities of potential suppliers, including alternative
arrangements and cost estimates; and