CON 290 Exam Flashcards by Bryson Sane

What are the four types of data rights licenses for technical data?

Unlimited Rights – most Gov’t rights
Government Purpose Rights 
Limited Rights – least Gov’t rights
Specifically Negotiated License Rights 
(SNLR or “Special License”)

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Is fact-finding the same as negotiations?

No!

Essentially preparing for Negotiations.

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What is the purpose of fact-finding?

FAR 15.406-1

To obtain a clear understanding of the contractor’s proposal, Gov’t requirements, and any alternatives proposed by the contractor.

Both Gov’t and contractor personnel should view fact-finding as an opportunity to exchange information and eliminate misunderstandings or erroneous assumptions that could impede the upcoming negotiation.

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What is “business clearance” known also known as and what is it for?

also referred as the “review board briefing”

To gain approval from management to begin negotiations

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What is negotiation?

Negotiations are exchanges, in either a competitive or sole source environment, between the Government and offerors, that are undertaken with the intent of allowing the offeror to revise its proposal.

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What is the contracting officer’s objective when negotiating price?

The contracting officer’s objective is to negotiate a contract of a type and with a price providing the contractor the greatest incentive for efficient and economical performance.

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What is Position-Based Negotiation?

Position-based negotiation (PBN) involves each party taking a position and arguing for it without learning the interests of the other party. It focuses on obtaining your position through the use of power and adversarial tactics and techniques without consideration of the other side’s interests or needs.

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What is Interest-Based Negotiation?

Interest-based negotiation (IBN) is a step-by-step approach used to identify common interests of the parties. Identifying common interests promotes solutions that satisfy the needs of both parties.

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What is the BATNA?

Best alternative to a negotiated agreement – your absolute bottom line. If an agreement isn’t better than your BATNA, it actually makes you worse off. Your BATNA may be an alternative that doesn’t involve a contract w/the current offeror.

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What is your reservation price?

Reservation Price is the value below which you would rather accept impasse and settle for your best alternative. You must sometimes show willingness to walk away from marginal agreements in order to achieve excellent ones.

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What is an anchor?

An initial number or position offered, purposely or inadvertently, by one party. When a second anchor is set, a range for negotiation is establish

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Briefly define what cost and pricing data is?

prudent buyers and sellers would reasonably expect to affect price negotiations significantly

accurate, complete, and current
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What are the exemptions to defective pricing?

Exemptions? Commercial, Competition, Waiver

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What is the preferred method for calculating absorbe cost for equitable adjustment?

Eichley Formula

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This refers to the “clarification not negotiation”?

Fact Finding

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How many days does the contractor have to submit their comments after reviewing a CPARS?

60 calendar days

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How much time should the past performance be retained?

Not for longer than 3 years(6 for construction and A-E contracts) after completion of contract performance

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What is a contractor sweep?

Date in which KTR goes back and sees if data is accurate ; certifies as of data end of negotiation

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What types of issues would prevent a contract from being closed out?

FAR 4.804-1 – Closeout by the office administering the contract.

(c) A contract file shall not be closed if –
(1) The contract is in litigation or under appeal; or
(2) In the case of a termination, all termination actions have not been completed.

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What cost is not considered when making a change?

Cost impacts on other contracts
Cost of changes made by other KOs
Cost of prosecuting claim
Unallowable Cost

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What is the term which “is the best of the person’s knowledge that the data is accurate, complete, and current as of a date certain before contract award”

Certified Cost and Pricing Data

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T/F Question: Certified Cost or Pricing data SHALL be requested for any acquisition valued less than the SAT.

False, Shall not be requested for any acquisition valued less than SAT

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What are the exceptions to Cost or Pricing Data?

1) . Adequate Price Competition
2) . Prices set by law/regulation
3) . Commercial Item Acquisitions
4) . Waiver granted by HCA
5) . Modification of commercial item conducts or subcontracts

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T/F If cost statement are unallowable under the contract, they are unallowable for the modification.

True

______change by implication & occurs when the KO or other authorized government personnel, by their actions, changes the contract without specifically adhering the requirements of the “changes” clause

Constructive Change

T/F J&A (Justification & Approval) is required for out of scope

True

What part of the FAR addresses modifications?

FAR Part 43

What action should you take if you suspect antitrust violations such as collusive briefing

Report it…through the agency and up to the Attorney General

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Below are examples of what:

1) . Award
2) . Authorize work outside the scope of contract
3) . Authorize a constructive change
4) . obiligate
5) . give direction to contractor
6) . resolve any dispute concerning a question of law or fact arising under the contract.
7) . re-delegate any assigned duties
8) . cause the contractor to incur costs

These are functions that cannot be delegated by PCO

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What are the elements of fraud?

False
Reliance
Damage
Intent

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How does suspension, government delays, and the occurrence of a stop-work order influence the contractor?

Contractor will not receive profit

What types of contract financing are available?

(i) Advance payments;
(ii) Performance-based payments;
(iii) Commercial advance and interim payments;
(iv) Progress payments based on cost ;
(v) Progress payments based on a percentage or stage of
completion; and
(vi) Interim payments under a cost reimbursement contract

What is the preferred method of payment?

Performance based payments

What are the exceptions to submitting cost/ pricing data?

FAR 15.403-1(b) exceptions
Competition
Commercial
Waivers

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What would happen if The Government failed to provide the property in good working condition and on time?

the KTR may request an equitable adjustment

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Explain business clearance.

To gain approval from management to begin negotiations

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What is the contracting officer’s objective when negotiating price?

The contracting officer’s objective is to negotiate a contract of a type and with a price providing the contractor the greatest incentive for efficient and economical performance.

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Is a contractor’s goal different?

Negotiate a contract type and price that minimizes risk and maximizes net profit

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What is Position-Based Negotiation?

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What is Interest-Based Negotiation?

Interest-based negotiation (IBN) is a step-by-step approach used to identify common interests of the parties. Identifying common interests promotes solutions that satisfy the needs of both parties.

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Below are the characteristics of what:

ceiling price
Point of Total Assumption (PTA)

FPIF Contract

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What is PTA?

PTA is the point at which Gov’t stops sharing any cost overrun. The KTR pays for all costs over the PTA.

When Final Cost = PTA, Final Price will = Cost Ceiling

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What are performance-based payments?

performance measured by objective, quantifiable methods
accomplishment of defined events, or
other quantifiable measures of results.

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What are the types of post-award orientation?

Telephonic – a good way to quickly cover the required information without holding a face-to-face meeting. This is not covered in the FAR. Should be followed with written document to confirm discussion by all parties.

Letter – Can be used for less complex contract actions to meet the basic requirements of the orientation.

Formal Conference – probably the best method. Allows face-to-face meeting to provide real time feedback to questions, concerns or issues.

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What are the most common types of procurement fraud?

Defective products and services that do not meet contract specifications
Product substitution (used and reconditioned versus contract requirement for new components)
False testing certification
False claims, false invoices
Defective pricing
Bribery
Illegal Gratuity

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What Federal statutes address fraudulent conduct?

Criminal Fraud Statutes:
Conspiracy to Defraud: 18 USC 286 (with claims) and 18 USC 1371 (in general)
False Claims: 18 USC 287
False Statements: 18 USC 1001
Major Fraud Act: 18 USC 1031
Civil False Claims Act: 31 USC 3729-33:

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Describe the “Scope of the Contract Test.”

Applies to potential contractor scope challenges
“In scope” if the change would have been fairly
& reasonably contemplated by the contracting parties when the contract was entered into.
Sometimes called “Contemplation of the Parties Test”.

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Describe the “Scope of the Competition Test”

Applies to potential third-party scope challenges
“In scope” if the change would have been fairly
& reasonably contemplated by potential bidders to the original competition

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Is the contractor required to perform out-of-scope (also called cardinal) changes?

The KTR is under no obligation to perform out-of-scope changes. However, failure to do so is risky because if the change is later found to be a proper in-scope change under the Changes clause, the contractor risks breach for failure to perform the change.

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Does the Changes Clause apply to FAR Part 12 commercial contracts?

Changes in a commercial contract must be in writing and mutually agreed.

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What is a dispute?

A disagreement between the Government and the contractor.

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What method(s) are used to settle a dispute?

ADR, appeals to the Agency Board of Contract Appeals, or Court of Federal Claims.

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What is the preferred method for settling this claim?

The Government’s policy is to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. Reasonable efforts should be made to resolve controversies prior to the submission of a claim. Agencies are encouraged to use ADR procedures to the maximum extent practicable.

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What is your responsibility, as contracting officer, during this process?

When a claim by or against a contractor cannot be satisfied or settled by mutual agreement and a decision on the claim is necessary, the contracting officer shall –

(1) Review the facts pertinent to the claim;
(2) Secure assistance from legal and other advisors;
(3) Coordinate with the contract administration office or contracting office, as appropriate; and
(4) Prepare a written decision

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What is defective pricing?

Certified cost or pricing data are found to be inaccurate, incomplete, or noncurrent as of the date of final agreement on price or an earlier date agreed upon by the parties given on the contractor’s or subcontractor’s Certificate of Current Cost or Pricing Data

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How does TINA apply to change orders?

applies to change orders when the absolute value of the increase and decrease exceeds the applicable dollar thresholds.

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If the Government ____ rely on the Contractor’s data, then there is ___ defective Pricing

DID NOT
NO
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When should a performance report be done?

If it will exceed 18 months then an interim PAR
is done at 12 months and annually until
physical completion(at which point a final CPAR is done.)

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CON 290 Exam Flashcards

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