CONTRACTING OFFICER WARRANT BOARD QUESTIONS WITH CORRECT ANSWERS CONTRACTING OFFICER WARRANT BOARD QUESTIONS WITH CORRECT ANSWERSCONTRACTING OFFICER WARRANT BOARD QUESTIONS WITH CORRECT ANSWERSCONTRACTING OFFICER WARRANT BOARD QUESTIONS WITH CORRECT ANSWE

CONTRACTING OFFICER WARRANT f f


BOARD QUESTIONS WITH CORRECT
f f f f


ANSWERS
f




You f are f the f PCO f for f a f major f competitive f negotiated f source f selection. f The f RFP,
c c c c c c c c c c c c


f which f reflects f the f user's f requirements f and f is f based f on f the f user's f budget, f has f a
c c c c c c c c c c c c c c


f requirement f for f 220 f cargo f loaders f to f be f delivered f at f 55 f per f year f over f the f next
c c c c c c c c c c c c c c c


f four f years. f One f offeror f proposes f to f deliver f all f 220 f loaders f in f the f first f year f at f a
c c c c c c c c c c c c c c c c


f dramatically f reduced f price. f Can f you f accept f the f offeror's f proposal? f What f factors
c c c c c c c c c c c


f should f you f consider f in f your f decision? f - f Correct f Answer f - f You f can f accept f the
c c c c c c c c c c c c c c


f offeror's f proposal f under f certain f circumstances. f Firstly, f what f did f the f RFP f say
c c c c c c c c c c c


f about f alternate f proposals? f Is f this f a f situation f where f requirements f are f changed
c c c c c c c c c c c


f and f the f other f offerors f should f be f allowed f to f propose f on f the f basis f of f the
c c c c c c c c c c c c c c


f changed f requirements? f You f need f to f ask f the f user f if f he f wants f all f 220 f in f the
c c c c c c c c c c c c c c c


f first f year f and f are f the f operating f locations f physically f able f to f accommodate f their
c c c c c c c c c c c c


f loaders f in f the f first f year. f Finally, f the f offeror f could f be f taken f into f discussions f and
c c c c c c c c c c c c c c


f asked f to f conform f to f the f RFP f with f there f being f the f possibility f of f not f being
c c c c c c c c c c c c c c


f selected f for f award f or f elimination f from f the f competitive f range f if f the f proposal f is
c c c c c c c c c c c c c


f not f made f compliant f with f the f RFP.
c c c c c c




You f are f the f PCO f on f a f new f $2B f aircraft f development f program. f The f program f is
c c c c c c c c c c c c c


f in f contract f negotiations f for f a f Fixed f Price f Incentive f (Firm f Target) f System
c c c c c c c c c c c


f Development f and f Demonstration f contract f award f to f a f sole f source f contractor. f The
c c c c c c c c c c c


f program f director, f a f fast-burning f young f colonel, f e-mails f you f that f she f is f very
c c c c c c c c c c c c


f concerned f with f the f aircraft's f ultimate f speed f at f the f full f specification f payload. f She
c c c c c c c c c c c c


f would f like f the f contractor f to f achieve f the f faster, f desired f objective f speed f rather
c c c c c c c c c c c c


f than f the f mandatory f threshold f speed, f and f thinks f that f an f objective f performance
c c c c c c c c c c c


f incentive f would f be f the f way f to f go f to f achieve f her f goal. f You f are f asked f to f go f to
c c c c c c c c c c c c c c c c c


f her f office f and f discuss f the f matter f and f the f issues f involved f in f using f such f an
c c c c c c c c c c c c c c


f incentive. f What f do f you f tell f the f colonel? f - f Correct f Answer f - f There f are f a f number
c c c c c c c c c c c c c c c


f of f considerations f for f the f colonel:
c c c c c


The f desired f additional f speed f should f provide f benefit f to f the f Air f Force f in f order f to
c c c c c c c c c c c c c


f justify f the f expenditure f of f funds f to f achieve f it. f The f colonel f should f be f able f to
c c c c c c c c c c c c c c


f articulate f the f justification.
c c c


The f situation f is f very f amenable f to f a f classic f performance f incentive f that f would
c c c c c c c c c c c


f allow f the f contractor f to f earn f profit f for f achieving f the f desired f speed f above f and
c c c c c c c c c c c c c


f beyond f what f the f final f FPIF f profit f would f be f for f achieving f threshold f speed. f If f the
c c c c c c c c c c c c c c


f contractor f perceives f this f can't f happen, f he f will f either f not f sign f up f to f the f incentive
c c c c c c c c c c c c c c


f or f will f ignore f it f from f Day f One.
c c c c c c c


The f incentive f and f resulting f payment f have f to f be f structured f so f as f to f be f based f on
c c c c c c c c c c c c c c


f observable, f measurable f results f that f would f determine f how f much f is f earned f by f the
c c c c c c c c c c c c

,fccontractor. fcSubjectivity fcis fcnot fcallowable fcunder fccurrent fcAF fcpolicy fcwithout fcHCA
fcapproval.
We f have f to f be f very f careful f to f understand f what f possible f unintended
c c c c c c c c c c


f consequences f could f be f caused f by f the f existence f of f this f feature f in f the f contract.
c c c c c c c c c c c c c


f For f example, f will f the f contractor f reduce f aircraft f weight f beyond f safe f limits f in
c c c c c c c c c c c c


f order f to f help f achieve f the f payment? f Also, f will f the f contractor f consume f excessive
c c c c c c c c c c c c


f schedule f to f get f the f extra f speed?
c c c c c c


There f has f to f be f a f cost f incentive f in f place f so f that f the f contractor f doesn't f spend
c c c c c c c c c c c c c c


f an f unconstrained f amount f of f money f to f win f the f payment, f such f as f under f a f CPFF
c c c c c c c c c c c c c c


f contract. f The f FPIF f share f line f serves f this f purpose f when f balanced f against f the
c c c c c c c c c c c c


f incentive.
c


The f incentive f has f to f be f balanced f with f the f FPIF f share f line f so f that f the f contractor
c c c c c c c c c c c c c c


f doesn't f spend f more f money f to f achieve f the f desired f speed f than f he f has f potential
c c c c c c c c c c c c c


f to f earn f by f receiving f the f payment. f Similarly, f the f contractor f can't f be f allowed f to
c c c c c c c c c c c c c


f spend f an f excessive f amount f of f money f with f little f cost f penalty f to f achieve f success.
c c c c c c c c c c c c c




: f In f AFRL, f Contracting f Officers f are f also f Grants f Officers. f They f can f award f Grants
c c c c c c c c c c c c


f and f Assistance f Instruments f as f well f as f contracts. f What f is f Assistance? f How f does
c c c c c c c c c c c c


f it f differ f from f Acquisition? f What f gives f the f Grants f Officers f their f authority f to f enter
c c c c c c c c c c c c c


f into f assistance? f What f are f the f types f of f Assistance? f - f Correct f Answer f - f When
c c c c c c c c c c c c c


f the f principal f purpose f is f to f transfer f a f thing f of f value, f to f carry f out f a f public
c c c c c c c c c c c c c c c


f purpose f of f support f or f stimulation f authorized f by f law f of f the f United f States, f it f is
c c c c c c c c c c c c c c


f Assistance.
c


Acquisition, f by f contrast, f has f the f principal f purpose f of f acquiring f property f or
c c c c c c c c c c


f services f for f the f direct f benefit f or f use f of f the f United f States f Government.
c c c c c c c c c c c c


Federal f agencies f must f be f authorized f by f statute f to f support f or f stimulate f a f public
c c c c c c c c c c c c


f purpose. f The f statutory f authority f from f Congress f must f exist f either f in f broad
c c c c c c c c c c c


f legislation f or f in f a f program-specific f statute. f Absent f that f statutory f authority, f a
c c c c c c c c c c c


f Grants f Officer f may f not f use f an f assistance f instrument.
c c c c c c c c


Authorities f to f issue f Assistance f can f be f of f three f types: f (1) f Provide f to f the
c c c c c c c c c c c c


f Secretary f of f Defense f by f statute, f e.g., f 10 f U.S.C. f 2391; f (2) f Authority f provided f to
c c c c c c c c c c c c c


f DoD f components f that f requires f no f delegation f by f the f Secretary f of f Defense, f e.g.,
c c c c c c c c c c c c


f 10 f U.S.C. f 2358; f (3) f Authority f coming f indirectly f from f statutes, f i.e., f federal f statute
c c c c c c c c c c c c


f authorizing f a f program f that f is f consistent f with f using f a f grant f or f cooperative
c c c c c c c c c c c c


f agreement.
c


Two f types f of f Assistance f are f Grants f and f Cooperative f Agreements. f They f differ f in
c c c c c c c c c c c


f the f following f way: f In f a f Grant, f substantial f involvement f is f not f expected f between
c c c c c c c c c c c c


f the f agency f and f the f recipient. f In f Cooperative f Agreement, f substantial f involvement
c c c c c c c c c c


f is f expected f between f the f agency f and f the f recipient. f Cooperative f Agreements,
c c c c c c c c c c


f then, f are f particularly f useful f in f the f research f arena f when f the f Government f is
c c c c c c c c c c c c


f interested f in f being f involved f in f program f decisions f or f may f be f doing f some f testing
c c c c c c c c c c c c c


f or f research f themselves.
c c c




You f are f the f Contracting f Officer f on f a f new f Research f and f Development f program.
c c c c c c c c c c c


f Proposals f were f recently f received f in f response f to f a f Broad f Agency f Announcement,
c c c c c c c c c c c


f and f a f Cost f Plus f Fixed f Fee f contract f type f is f anticipated. f The f proposal f most
c c c c c c c c c c c c c

,fcfavored fcby fcthe fctechnical fcteam fcwas fcpriced fcsignificantly fcunder fcwhat fcwas fcestimated
fcfor fcthe fceffort. fcThe fccontractor fcproposed fcfee fcin fcan fcamount fcthat fcequates fcto fc20% fcof
fcthe fcestimated fccost. fcThe fcusers fchave fcmore fcthan fcenough fcfunds fcto fccover fcthe
fcproposal fcand fcwant fcyou fcto fcaccept fcthe fcprice fcas fcis. fcHow fcshould fcyou fcadvise fcthe
fcuser fcand fcwhat fcfactors fcshould fcyou fcconsider fcin fcdetermining fca fcreasonable fcfee? fc-
fcCorrect fcAnswer fc- fcThe fcstatutory fclimitation fcon fcfee fcfor fcCPFF fctype fccontracts fcdo fcno
fcpermit fcexceeding fc15% fcof fcestimated fccost fcfor fcexperimental, fcdevelopmental, fcor
fcresearch fcperformed fcunder fca fcCPFF fccontract. fcSince fcthe fcproposed fcamount fcof fcfee
fcis fcoutside fcthe fcstatutory fclimitations fcyou fcneed fcto fcdetermine fcwhat fca fcfair fcand
fcreasonable fcrate fcis fcthat fcfalls fcwithin fcthe fclimitations. fcThe fcFAR fcrecommends fca
fcstructured fcapproach fcfor fcdetermining fcfee fcsuch fcas fcWeighted fcGuidelines. fcIf fca fccost
fcreasonableness fcreview fcdetermines fcthe fcestimated fccosts fcto fcbe fcacceptable, fcwe fccan
fcstill fcnegotiate fcand fcadjust fcthe fcfee.


You f are f the f Contracting f Officer f for f a f well f established f transport f aircraft f program.
c c c c c c c c c c c


f The f program f is f nearing f the f end f of f production. f A f Program f Manager f approaches
c c c c c c c c c c c c


f you f requesting f that f you f issue f a f Broad f Area f Announcement f (BAA) f to f support f the
c c c c c c c c c c c c c


f development f of f a f source f list f to f supply f active f noise f reducing f headsets. f The
c c c c c c c c c c c c


f headsets f are f commercially f available f from f multiple f sources f and f the f PM f wants f to
c c c c c c c c c c c c


f receive f performance f specification f sheets f from f each f offeror f and f then f request
c c c c c c c c c c


f sample f headsets f be f submitted f for f testing. f The f end f result f of f the f effort f will f be
c c c c c c c c c c c c c c


f the f development f of f a f source f list f that f can f be f used f by f various f Air f Force f Bases
c c c c c c c c c c c c c c c


f to f individually f procure f the f needed f headsets f for f the f Base's f specific f requirements.
c c c c c c c c c c c


f The f PM f tells f you f that f he f will f not f be f procuring f any f of f the f headsets f as f a f result
c c c c c c c c c c c c c c c c c


f of f the f BAA. f What f do f you f advise f the f PM? f - f Correct f Answer f - f You f should
c c c c c c c c c c c c c c c


f advise f the f PM f that f BAAs f are f a f method f of f solicitation f and f can f only f be f used f if
c c c c c c c c c c c c c c c c


f the f Government f intends f to f award f a f contract. f You f might f suggest f that f the
c c c c c c c c c c c c


f development f of f the f source f list f could f be f achieved f by f issuing f a f Sources f Sought
c c c c c c c c c c c c c


f Synopsis f with f the f synopsis f specifying f the f 2 f step f process f (spec f sheets f first f and
c c c c c c c c c c c c c


f then f sample f headsets f from f selected f offerors), f and f the f ultimate f intent f of f the
c c c c c c c c c c c c


f process, f e.g., f a f source f list f for f use f by f individual f users f in f future f procurements.
c c c c c c c c c c c c c


f You f might f also f advise f the f PM f that f there f could f be f liability f issues f associated
c c c c c c c c c c c c c


f with f the f use, f handling, f and f return f of f the f headsets f to f the f offerors f and f that f it
c c c c c c c c c c c c c c c


f might f be f appropriate f for f the f Government f to f cover f shipping f and f any
c c c c c c c c c c c


f damage/wear f to f the f units f for f the f testing.
c c c c c c c




A. f Under f what f circumstances f is f ratification f of f an f unauthorized f commitment
c c c c c c c c c


f permitted?
c


B. f In f general, f what f are f the f generic f procedures f for f handling f ratification f actions?
c c c c c c c c c c c


C. f Who f are f the f approval f authorities f for f ratifications? f - f Correct f Answer f - f A. f If f the
c c c c c c c c c c c c c c


f contract f award f would f have f been f proper f if f executed f by f a f warranted f PCO, f the
c c c c c c c c c c c c c


f price f can f be f determined f to f be f fair f and f reasonable, f and f there f must f have f been
c c c c c c c c c c c c c c


f enough f of f the f proper f type f of f funding f available f to f pay f for f the f item f both f at f the
c c c c c c c c c c c c c c c c


f time f of f the f commitment f and f at f the f time f of f the f ratification.
c c c c c c c c c c c


B. f An f investigation f is f required f to f be f completed f within f 30 f days f of f discovery f of
c c c c c c c c c c c c c


f the f unauthorized f commitment f explaining f how f and f why f it f occurred, f how f future
c c c c c c c c c c c

, fcoccurrences fcwill fcbe fcavoided, fcand fcdescribing fcany fccorrective fcactions fctaken fcagainst
fcresponsible fcindividuals. fcLegal fcreview fcis fcalso fcrequired. fc
C. f HCA f for f actions f of f $30K f or f more f and f COCO f for f actions f under f $30K
c c c c c c c c c c c c c




You f are f the f Contracting f Officer f for f a f much-delayed f effort. f On f Friday f you f finally
c c c c c c c c c c c c


f receive f the f necessary f authority f to f release f the f contract f for f signature. f It's f late f on
c c c c c c c c c c c c c


f Friday f afternoon f when f you f e-mail f the f modification f to f the f contractor f for f signature.
c c c c c c c c c c c c


f The f only f person f at f the f contractor's f office f on f Friday f afternoon f is f the f Company
c c c c c c c c c c c c c


f President's f 17 f year f old f daughter f who f is f working f there f as f a f summer-hire
c c c c c c c c c c c c


f secretary. f She f knows f her f father f urgently f wants f the f contract f modification f so f she
c c c c c c c c c c c c


f signs f the f document f and f returns f it f to f your f office. f You f note f the f last f name f is f the
c c c c c c c c c c c c c c c c


f same f as f the f President's f so f assume f that f he's f the f one f who f signed f the
c c c c c c c c c c c c c


f modification. f Is f this f a f legal f agreement? f - f Correct f Answer f - f Probably f not. f The
c c c c c c c c c c c c c


f elements f of f a f contract f are f - f offer, f acceptance, f consideration, f for f a f lawful
c c c c c c c c c c c c


f purpose, f certainty f of f terms, f and f legal f capacity. f It f is f unlikely f that f a f 17 f year f old
c c c c c c c c c c c c c c c


f summer f hire f would f have f the f authority f to f bind f the f company, f regardless f of f her
c c c c c c c c c c c c c


f relationship f to f the f Company f President. f Courts f may f generally f find f that f individuals
c c c c c c c c c c c


f lack f "the f age f majority" f if f they f are f under f 18 f years f of f age. f
c c c c c c c c c c c c c


The f law f in f a f given f jurisdiction f may f never f actually f use f the f term f "age f of f majority"
c c c c c c c c c c c c c c


f and f the f term f thereby f refers f to f a f collection f of f laws f bestowing f the f status f of
c c c c c c c c c c c c c c


f adulthood. f The f age f of f majority f is f a f legally f fixed f age, f concept, f or f statutory
c c c c c c c c c c c c c


f principle, f which f may f differ f depending f on f the f jurisdiction, f and f may f not
c c c c c c c c c c c


f necessarily f correspond f to f actual f mental f or f physical f maturity f of f an f individual.
c c c c c c c c c c c


In f practical f terms, f there f are f certain f specific f actions f which f a f person f who f attains
c c c c c c c c c c c c


f the f age f of f majority f is f permitted f to f take, f which f they f could f not f do f before. f These
c c c c c c c c c c c c c c c


f may f include f entering f into f a f binding f contract, f buying f stocks, f voting, f buying f and/or
c c c c c c c c c c c c


f consuming f alcoholic f beverages, f driving f motor f vehicles f on f public f roads, f and
c c c c c c c c c c


f marrying f without f obtaining f consent f of f others. f The f ages f at f which f these f various
c c c c c c c c c c c c


f rights f or f powers f may f be f exercised f vary f as f between f the f various f rights f and f as
c c c c c c c c c c c c c c


f between f different f jurisdictions. f For f example, f the f ages f at f which f a f person f may
c c c c c c c c c c c c


f obtain f a f license f to f drive f a f car f or f consume f alcoholic f beverages f vary
c c c c c c c c c c c c


f considerably f between f and f also f within f jurisdictions.
c c c c c c




You f are f the f Contracting f Officer f for f a f follow-on f buy f source f selection. f The f current
c c c c c c c c c c c c


f effort f has f had f the f same f Program f Manager f for f over f 10 f years. f She f began f as
c c c c c c c c c c c c c c


f the f PM f while f still f a f Military f Officer f and f then f retired f and f was f re-hired f as f an
c c c c c c c c c c c c c c c


f A&AS f employee f to f continue f to f manage f the f program. f She f has f extensive
c c c c c c c c c c c


f experience f on f the f program f and f is f considered f a f Primary f "Go f To" f person f for f all
c c c c c c c c c c c c c c


f Program-related f managerial f issues.
c c c


The f Program f Director f wants f to f utilize f the f PM's f experience f to f the f fullest f extent
c c c c c c c c c c c c


f possible f and f has f proposed f that f the f PM f be f listed f as f chief f of f the f technical
c c c c c c c c c c c c c c


f evaluation f team f and f also f a f voting f member f of f the f source f selection f board.
c c c c c c c c c c c c


Is f it f permissible f to f have f a f non-Government f employee f (A&AS f contractor) f as f chief
c c c c c c c c c c c


f of f the f technical f evaluation f team f and f a f voting f member f of f the f source f selection
c c c c c c c c c c c c c


f board? f - f Correct f Answer f - f It f is f not f permissible f to f have f a f non-Government
c c c c c c c c c c c c c


f employee f as f a f voting f member f of f any f source f selection f board. f FAR f 7.503(c)(12)
c c c c c c c c c c c c