ACQUISITION & CONTRACTING EXAM
1
Acquisitionhb-
hbacquiringhbbyhbcontracthbwithhbappropriatedhbfundshbofhbsupplieshborhbserviceshbbyhbandhbforhbthehb
usehbofhbthehbFederalhbGovernmenthbthroughhbpurchasehborhblease,hbwhetherhbthehbsupplieshborhbserv
iceshbarehbalreadyhbinhbexistencehborhbmusthbbehbcreated,hbdeveloped,hbdemonstratedhbandhbevaluate
d
Procurementhb-hbacquiringhbgoods,hbservices,hbworkshbfromhbanhbexternalhbsource
Contractinghb-
hbpurchasing,hbrenting,hbleasinghborhbotherwisehbobtaininghbsupplieshborhbserviceshbfromhbnonfederalhb
sources.hbincludeshbdescriptionhbofhbsupplieshbandhbservices,hbselectionhbandhbsolicitationhbofhbsources
,hbpreparationhbandhbawardhbofhbcontractshbandhballhbphaseshbofhbcontracthbadministration
subcontractinghb-hbwhenhbsomehbofhbthehbefforthbishbcontractedhbtohbanotherhbparty
Contracthbmanagementhbashbahbcompetitivehbadvantagehb-
hbImportanthbparthbofhbthehbvaluehbchainhbthathbcanhbcreatehbsignificanthbvaluehboverhbandhbabovehbth
ehbcosthbofhboperations.hbEnableshbotherhbpartshbofhbthehborganizationhbtohbachievehbgreaterhbvaluehb
whenhbcontractinghbishbablehbtohbkeephbpriceshblowhbandhbdeliveryhbonhbtime.
Provideshbinsighthbandhbvaluehbtohbthehb'links'hbinhbthehbvaluehbchain.hbMakehborhbbuyhboutsourcinghbd
ecisionshbcanhbcreatehbcosthborhbdifferentiationhbadvantages.
ContracthbElementshb-
hbOffer,hbAcceptance,hbExchangehbofhbconsideration,hbCompetenthbparties,hbLegalityhbofhbpurpose
, LawhbofhbAgencyhb-
hbrelationshiphbbasedhbonhbthehbdelegationhbofhbauthorityhbbyhbthehbprincipalhbtohbthehbagenthbtohbact
hbonhbthehbprincipal'shbbehalf.
PrivityhbofhbContracthb-
hbthehblegalhbconnectionhborhbrelationshiphbthathbexistshbbetweenhbthehbcontractinghbpartieshballowing
hbeitherhbpartyhbtohbenforcehbcontractualhbrightshbandhbseekhbrestitution.hbBuyerhbhashbprivityhbofhbco
ntracthbwithhbthehbprimehbvendor/
contractorhbandhbthehbprimehbcontractorhbtohbsubcontractor.hbThehbbuyerhbdoeshbnothbhavehbprivityhbo
fhbcontracthbwithhbthehbsubcontractor.
Sourceshbofhbcontractinghbauthorityhb-hb-
Constitutionhbprovideshblegalhbauthorityhbofhbgovernmenthbtohbenterhbintohbcontractshbforhbsupplieshba
ndhbservices.
-StatuteshbandhblawshbofhbthehbUSChbTitlehb10
-FARhb1.602-1hbprovideshbactualhbcontractinghbofficerhbauthority
-Numeroushbexecutivehborders,hbregulations,hbdirectives
AuthoritieshbofhbKOhb-hbFARhb1602-
1:hbEnterhbinhbtohbcontracts,hbadministerhbandhbterminatehbcontracts,hbmakehbdeterminationshbandhbfi
ndings
ExpresshbAuthorityhb-hbActualhbauthorityhbashbdefinedhbinhbwriting
ImpliedhbAuthorityhb-hbActualhbauthorityhbbyhbpositionhb-hbnothbinhbwriting
ApparenthbAuthorityhb-
hbnothbintentionallyhbgranted,hbbuthbmayhbresthbwithhbthehbagenthbifhbthehbprincipalhborhbagencyhballo
wshbthehbagenthbtohbexercisehbsuchhbauthorityhbandhbthehbotherhbpartyhbbelieveshbthathbthehbagenthbi
ndeedhbpossesseshbsuchhbauthority.
Dangershbinhbapparenthbauthorityhb-
hbActinghbouthbofhbscopehbmayhbmakehbthehbagenthbliablehbandhbnohblimits
1
Acquisitionhb-
hbacquiringhbbyhbcontracthbwithhbappropriatedhbfundshbofhbsupplieshborhbserviceshbbyhbandhbforhbthehb
usehbofhbthehbFederalhbGovernmenthbthroughhbpurchasehborhblease,hbwhetherhbthehbsupplieshborhbserv
iceshbarehbalreadyhbinhbexistencehborhbmusthbbehbcreated,hbdeveloped,hbdemonstratedhbandhbevaluate
d
Procurementhb-hbacquiringhbgoods,hbservices,hbworkshbfromhbanhbexternalhbsource
Contractinghb-
hbpurchasing,hbrenting,hbleasinghborhbotherwisehbobtaininghbsupplieshborhbserviceshbfromhbnonfederalhb
sources.hbincludeshbdescriptionhbofhbsupplieshbandhbservices,hbselectionhbandhbsolicitationhbofhbsources
,hbpreparationhbandhbawardhbofhbcontractshbandhballhbphaseshbofhbcontracthbadministration
subcontractinghb-hbwhenhbsomehbofhbthehbefforthbishbcontractedhbtohbanotherhbparty
Contracthbmanagementhbashbahbcompetitivehbadvantagehb-
hbImportanthbparthbofhbthehbvaluehbchainhbthathbcanhbcreatehbsignificanthbvaluehboverhbandhbabovehbth
ehbcosthbofhboperations.hbEnableshbotherhbpartshbofhbthehborganizationhbtohbachievehbgreaterhbvaluehb
whenhbcontractinghbishbablehbtohbkeephbpriceshblowhbandhbdeliveryhbonhbtime.
Provideshbinsighthbandhbvaluehbtohbthehb'links'hbinhbthehbvaluehbchain.hbMakehborhbbuyhboutsourcinghbd
ecisionshbcanhbcreatehbcosthborhbdifferentiationhbadvantages.
ContracthbElementshb-
hbOffer,hbAcceptance,hbExchangehbofhbconsideration,hbCompetenthbparties,hbLegalityhbofhbpurpose
, LawhbofhbAgencyhb-
hbrelationshiphbbasedhbonhbthehbdelegationhbofhbauthorityhbbyhbthehbprincipalhbtohbthehbagenthbtohbact
hbonhbthehbprincipal'shbbehalf.
PrivityhbofhbContracthb-
hbthehblegalhbconnectionhborhbrelationshiphbthathbexistshbbetweenhbthehbcontractinghbpartieshballowing
hbeitherhbpartyhbtohbenforcehbcontractualhbrightshbandhbseekhbrestitution.hbBuyerhbhashbprivityhbofhbco
ntracthbwithhbthehbprimehbvendor/
contractorhbandhbthehbprimehbcontractorhbtohbsubcontractor.hbThehbbuyerhbdoeshbnothbhavehbprivityhbo
fhbcontracthbwithhbthehbsubcontractor.
Sourceshbofhbcontractinghbauthorityhb-hb-
Constitutionhbprovideshblegalhbauthorityhbofhbgovernmenthbtohbenterhbintohbcontractshbforhbsupplieshba
ndhbservices.
-StatuteshbandhblawshbofhbthehbUSChbTitlehb10
-FARhb1.602-1hbprovideshbactualhbcontractinghbofficerhbauthority
-Numeroushbexecutivehborders,hbregulations,hbdirectives
AuthoritieshbofhbKOhb-hbFARhb1602-
1:hbEnterhbinhbtohbcontracts,hbadministerhbandhbterminatehbcontracts,hbmakehbdeterminationshbandhbfi
ndings
ExpresshbAuthorityhb-hbActualhbauthorityhbashbdefinedhbinhbwriting
ImpliedhbAuthorityhb-hbActualhbauthorityhbbyhbpositionhb-hbnothbinhbwriting
ApparenthbAuthorityhb-
hbnothbintentionallyhbgranted,hbbuthbmayhbresthbwithhbthehbagenthbifhbthehbprincipalhborhbagencyhballo
wshbthehbagenthbtohbexercisehbsuchhbauthorityhbandhbthehbotherhbpartyhbbelieveshbthathbthehbagenthbi
ndeedhbpossesseshbsuchhbauthority.
Dangershbinhbapparenthbauthorityhb-
hbActinghbouthbofhbscopehbmayhbmakehbthehbagenthbliablehbandhbnohblimits
