1100 Flashcards
How do you determine if a change is within the scope of an existing contract?
For a proposed change to be considered within the general scope of an existing contract, it must pass both “scope tests.” (Based on Court Precedent)
First scope test
Proposed change must be a change that could have been fairly and reasonably contemplated by the contracting parties when the contract was awarded.
Second scope test
Proposed change must be a change that could have been fairly and reasonably contemplated by potential offerors during the original competition
Field of competition altered so significantly from original field of competition due to change?
4 Essential Elements of Contracts
Capacity, Mutual Assent, Consideration, Lawful Purpose
2 Types of Authority
Actual (Express Actual and Implied Actual) and Apparent
KOs have both types of Actual authority
2 Types of Authority
Actual (Express Actual and Implied Actual) and Apparent
KOs have both types of Actual authority
7 Exceptions to Full and Open Competition
- Only one responsible source and no other supplies or service will satisfy agency requirements
- Unusual and compelling urgency
- Industrial mobilization; engineering, developmental, or research capability; or expert services
- International agreement
- Authorized or required by statute
- National security
- Public interest.
KO then required to document reason with a J&A
Prices Fair and Reasonable?
Use Price and Cost Analysis
Price analysis is used when certified cost or pricing data are not required.
Cost analysis evaluates the reasonableness of individual cost elements and is used when certified cost or pricing data is required.
7 Proposal Analysis Techniques for Fair and Reasonable Price Determination
- Comparison of proposed prices received in response to the solicitation;
- Comparison of previously proposed prices and previous Government and commercial contract prices with current proposed prices for like items;
- Use of parametric estimating methods or application of rough yardsticks to highlight significant inconsistencies that warrant additional pricing inquiry;
- Comparison with competitive published price lists, published market prices of commodities, similar indexes and discount or rebate arrangements;
- Comparison of proposed prices with Independent Government Cost Estimates, also known as an IGCE;
- Comparison of proposed prices with prices obtained through market research for the same or similar items; or
- Analysis of pricing information provided by the offeror.
TINA
Designed to safeguard the Government from excessive expenditures when there is no other way to determine a fair and reasonable price except to rely on information provided by the offeror
When the estimated dollar value of an acquisition exceeds the TINA threshold set forth in FAR 15.403-4(a)(1), and none of the exceptions to certified cost or pricing data requirements apply, the offeror must provide “certified cost and pricing data”. The offeror is certifying that at the time of the agreement on price, the cost or pricing data submitted in response to the proposal were accurate, complete, and current. When certified cost and pricing data is not required, the contracting officer still may request other than certified cost and pricing data to help them determine a fair and reasonable price. When certified cost or pricing data is not required, Contracting officers are required to limit the request for cost and pricing data to only that necessary to determine a fair and reasonable price.
DoD Risk Management Process
Risks are potential future events or conditions that may have a negative effect on achieving program objectives for cost, schedule, and performance. Risks are defined by (1) the probability/likelihood of an undesired event or condition and (2) the consequences, impact, or severity of the undesired event, were it to occur.
Issues are events or conditions with negative effect that have occurred, such as realized risks, or are certain to occur that should be addressed.
Opportunities have potential future benefits to the program’s cost, schedule, and/or performance baseline.
- Process Planning - What are the program’s risk and issue management processes?
- Identification - What has, can, or will go wrong?
- Analysis - What is the likelihood of the risk and the consequence of the risk or issue?
- Mitigation / Correction - What, if anything, will be done about the risk or issue?
- Monitoring - How has the risk or issue changed?
THEN REPEAT
The goal is to reduce or burn-down the risks identified through risk management. As a result of the risk analysis, you have identified low, moderate and high risks. You will start by managing the high risks first, and then move to the moderate risks. Anything that is a low risk may be risks that the team is willing to acknowledge, accept, and move on.
Consequence x Probability/Likelihood (X and Y axes)
Accept, Avoid, or Transfer Risk
What are the Closeout Time Standards?
Simplified Acquisition Procedures (SAP): closed when evidence of receipt of supplies/services and final payment is received.
Firm-Fixed-Price: 6 months after physical completion
Contracts requiring settlement of indirect cost rates: 36 months after
physical completion
All others: 20 months after physical completion
Contract Closeout Documents
DD 1597 Contract Closeout Checklist
DD 1593 Contract Administration Completion Record
DD 1594 Contract Completion Statement
Quick Closeout
KO can negotiate settlement of direct and indirect costs for a specific contract to be closed in advance of the determination of final indirect cost rates.
Can be used when:
- Contract is physically complete
- Unsettled costs insignificant <$2M
- Risk assessment performed
- Agreement can be reached on reasonable estimate
DO NOT USE UCF, USE FORMS AND PROCEDURES:
Commercial acquisitions using FAR part 12
Acquisitions using the simplified procedures in FAR part 13
- Construction, Architecture and Engineering, Shipbuilding/Overhaul/Repair
- Letter requests for proposals in accordance with FAR 15.203€
- Contracts that use the simplified format in FAR 14.201-9
- Contracts exempted by the Agency Head or designee
- Acquisitions for supplies or services that require special contract forms that are inconsistent with the UCF
USE UCF:
FAR part 14 – Sealed Bidding (method of contracting that utilizes competitive bids, public opening of bids, and awards)
FAR part 15 – Contracting by Negotiation (other than sealed bidding procedures)
