Contracting Test 2 Flashcards
Different Types of Brainstorming
Structured brainstorming
Free-form brainstorming
Silent-brainstorming
What are the 6 basic problems/decision making steps
Define the Problem: Analyze Potential Causes Identify Possible Solutions: Analyze and compare alternatives Select an alternative(s) Implement the selected alternative(s) and Evaluate Progress
What conclusion does problem solving help you develop
Best fit solution
Which is the most important step?
Properly defining the problem
Group activity that generates ideas without risk
Brainstorming
-Produces a “shopping list” of ideas
Analysis not included
Goal is to Generate Ideas
Structured Brainstorming
Solicit one idea from each person in sequence
Participants may say “pass”
A complete round of passes ends the session
Advantage of structured brainstorming:
Equal participation, regardless of rank or personality
Disadvantage of structured brainstorming
-Lacks spontaneity and can be rigid
Free-Form Brainstorming
Participants contribute ideas as they come to mind
Advantages:
Participants build on each other’s ideas
Relaxed atmosphere
Disadvantages of free-form brainstorming
Less assertive (lower ranking participants may not contribute)
Ideal approach could be combining structured and free-form
Begin with structured brainstorming and finish with unstructured brainstorming
Silent Brainstorming
Sticky notes Post papers for viewing Advantages Prevents disruptive analysis More open if anonymous Disadvantages Group loses synergy that comes from open session
What are the three types of solicitations?
- Request for Quotation – Simplified Acquisition Procedures - FAR Part 13
- Invitation for Bid – Sealed
- Bidding – FAR Part 14
Request for Proposal – Negotiation – FAR Part 15
Which type of contract requires a vendor to give their “best effort”?
Cost Reimbursement
Contracting by negotiation is authorized at any dollar amount when discussions are necessary
True or False
True
When is a Blanket Purchasing Agreement (BPA) appropriate?
Repetitive needs for supplies or services when specific items, quantities, and prices are not known but a substantial number are anticipated (BOA over SAT)
What are the two most common types of best Value evaluations?
Lowest Price Technically Acceptable (LPTA)
-Award is made to lowest priced acceptable offeror
Government has decided lowest price is the best value
Tradeoff
-Award may be made to any acceptable offeror based on integrated assessment of all evaluation factors in addition to cost/price
What does Best Value mean?
Any competitive negotiated acquisition having a basis for award stating that factors in addition to cost/price will be considered in selecting the successful offeror(s)
FAR Part 14
Sealed Bidding
Type of contract where the Contractor is required to deliver the product or perform the service at agree-to price
Firm fixed Price Contract
Contract represents full payment for the work – Contractor exceeds at own risk
Loss of profit
Type of contract where contractor is required to deliver “best effort”
Cost Reimbursement
Reasonable, allowable and allocable costs will be reimbursed
Contract amount represents an estimate of total cost
Cannot be exceeded without KO’s approval
Streamlined method of acquiring supplies and services (including construction, research & development and commercial items
SAP
Generally limited to acquisitions under $150,000, except for certain contingency operations where the dollar threshold may be higher
Cannot split requirements to stay under dollar thresholds
Exceptions—Required sources (Federal Prison Industry or Ability One personnel) or existing contracts
Micro-purchases
$5,000 for supplies and services
$2,000 construction
Actions above the micro-purchase threshold up to SAT
Purchase Order
Specify the quantity of supplies or scope of services ordered
Contain date and place of delivery
Set aside for small businesses.
A document, sent to prospective contractors by a Government agency, requesting the submission of offers or information
Solicitation
Streamlined method of acquiring supplies and services (including construction, research & development and commercial items
SAP
Generally limited to acquisitions under $150,000, except for certain contingency operations where the dollar threshold may be higher
Cannot split requirements to stay under dollar thresholds
Exceptions—Required sources (Federal Prison Industry or Ability One personnel) or existing contracts
Micro-purchases
$5,000 for supplies and services
$2,000 construction
Actions above the micro-purchase threshold up to SAT
Purchase Order
Specify the quantity of supplies or scope of services ordered
Contain date and place of delivery
Set aside for small businesses.
Multi-purpose pocket size purchase order form
SF44 Purchase Order Invoice-Voucher
Primarily for on-the-spot, over-the-counter purchases of supplies and non-personal services while away from the purchasing office or at isolated activities
Preferred method for Solicitation
Sealed Bidding (FAR part 14)
Must be used for construction
Used for easily definable requirements
No discussions with bidders
Government MUST award to lowest responsible bidder
Contract must be fixed price
Government expects to receive more than one bid
Sufficient time for bidders to prepare bids
Discussions with offerors permitted
Negotiations (FAR part 15)
Award can be made based on factors other than price
Contract may be fixed price or cost reimbursement
Used when sealed bidding is not practical
May be used for sole source or competitive actions
Offeror allowed to revise proposal as a result of discussions
Source Selection Boards
Posting threshold >$5K up to SAT (Purchase Order)
5-15K - Advertise Locally
15-25K - Public Display
>25K - Advertised on FedBizOpps
What type of contract must be awarded for a
commercial item?
FFP
How long do you have to definitize a letter
contract
180 Days
What are some of the factors to consider when
selecting a contract type?
Price competition
Price analysis
Cost analysis
Type and complexity of requirement
Urgency of requirement
Period of performance or length of production run
Contractor’s technical capability and financial responsibility
Adequacy of contractor’s accounting system
Concurrent contracts
Extent and nature of proposed subcontract
Acquisition history
What document must be completed prior to
awarding a Time and Materials contract?
KO must complete a Determination and Findings
Which FAR part concerns Contract Types?
FAR Part 16
a wide selection of contract types are available to the Government and contractors to provide flexibility in acquiring the large variety and volume of supplies and services
What types of contracts are used for Sealed Bid contracts?
Sealed bid contracts shall be firm-fixed price or fixed-price economic price adjustment
4 types of FFP Contracts?
Firm fixed price (FFP)
Fixed price with economic price adjustment (FP EPA)
Firm fixed price, level of effort term (FFP LOE)
Fixed price incentive fee (FPIF)
FFP Economic Adjustment
Provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies
Fixed Price Incentive Fee Contract
Incentivizes the KTR to reduce costs
Cost Reimbursement Contracts
Government reimburses allowable and allocable incurred costs, to the extent prescribed in the contract
Used only when performance involves such uncertainties that costs can’t be estimated
Cost reimbursement contracts are covered in FAR 16.3
FAR 31.201-2: Defines allowable costs
FAR 31.201-4: Defines allocation of costs
Time and Materials Contracts
T&M contracts provide for acquiring supplies or services on the basis of –
Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and
Actual cost for materials
What are the three types of indefinite delivery contracts?
Definite Quantity
Indefinite Quantity
Requirements
What is an option?
Unilateral Right
When can an option be exercised?
Funds are available
Option fulfills an existing need
Option is the most advantageous method of fulfilling the need
Option was synopsized IAW FAR Part 5
Determination and Findings
* Supply/Service contracts will not exceed 5 years (Base year plus 4 option years)
What requirements must be fulfilled to exercise an option?
The contracting officer shall justify in writing — (D&F)
Quantities or terms of option
Period for exercising option
Any limitation on option price
Statement that option is in Government’s best interest
Statement about the likelihood of future option(s) being exercised
Multiyear contract
Multi-year contract” means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years
Indefinite Delivery Contracts
Under certain conditions the Government may not be able to specify its required delivery and/or quantity or may not have sufficient funds for obligation of the entire needed quantity at that time
Indefinite delivery Indefinite quantity
An IDIQ contract provides for the procurement of an indefinite quantity of supplies and/or services
Throughout a specified period of performance
Allowing a customer to place Task/Delivery Orders for individual requirements
FAR requires the customer to order and the seller to furnish a Guaranteed Minimum Amount
This amount may be stated as number of units or a dollar value
Contains Maximum or “Ceiling Price” limiting total value of the contract
The sum total of all orders cannot exceed the stated maximum
Example: $100K minimum & $100M Maximum/Ceiling
Indefinite delivery Indefinite quantity
An IDIQ contract provides for the procurement of an indefinite quantity of supplies and/or services
Throughout a specified period of performance
Allowing a customer to place Task/Delivery Orders for individual requirements
FAR requires the customer to order and the seller to furnish a Guaranteed Minimum Amount
This amount may be stated as number of units or a dollar value
Contains Maximum or “Ceiling Price” limiting total value of the contract
The sum total of all orders cannot exceed the stated maximum
Example: $100K minimum & $100M Maximum/Ceiling
Task Order
Services under IDIQ
CLIN
contract line item number
Specifies products or services being procured
Sub-lines
Describe the CLIN; can be priced or informational. Either the CLIN or the Sub-line is priced, not both.
Performance Based Work Statements are the preferred method of describing agency requirements?
True or False
True
What is a commercial item?
Item that has been or will be sold to the general public; may required minor government directed modifications
What is a D&F?
Determination and Findings- Rationale for business decisions made concerning the acquisition
Two parts:
1. Facts that lead to the decision, or findings
- Actual decision, or determination
When is a J&A required?
Justification and Approval -
Sole Source Requirement
Which FAR part concerns describing agency needs?
FAR part 11
Who creates a Purchase/Procurement Request (PR)
The customer
What does a PR Contain?
A description of what is to be acquired Fund citation Required delivery dates Delivery or performance location Requiring activity point of contact
5 types of requirement documents that support a PR
Commercial Item Descriptions (CID) Performance Work Statement Specifications Gov't Standard Industry Standard
Commercial Item Description
- Simplified product descriptions that describe commercial items that are available to meet the Government’s needs
- CIDs are normally used for commercial items that are purchased on a repetitive basis
Statement of Work (SOW)
SOWs are detailed descriptions telling the contractor what to do and how to do it.
Performance Work Statement/Statement of Objectives
Documents that describe a performance outcome rather than how to achieve that outcome
Specifications
Specifications describe a technical requirement for a material or product that includes the criteria for determining whether these requirements are met. There are three types of specs:
a. Design specifications
b. Functional specifications
c. Performance specification
Gov’t Standard
A standard provides established measures of quality, or requirements for materials, engineering practices, performance, design or operation
Industry Standard
Industry Standards are established by a private sector to promote commonality and establishes common requirements that products may adhere to
PR document order of precedence
Documents mandated by law
Performance-oriented (PWS or SOO) documents
Detailed design-oriented documents
Standards, specifications and related publications
When does the Service contract act of 1965 apply?
Contract exceeds $2,500
Service contract
Performance by other than executive, admin or professional employees
Performed in the United States
When must a performance eval be completed?
For all contracts over $700,000 and for any construction contract, regardless of value, if terminated for default. FAR 42.1502(e)
What law requires the purchase of US product over foreign manufacture?
Buy American Act
Exceptions:
Are for use outside the US
Unreasonable cost
Domestic preference inconsistent with public interest
Are not mined, produced or manufactured in the US in sufficient quantities
Purchased specifically for commissary resale
What law states the DoD must buy textiles, fibers, yarns, fabrics or materials grown, reprocessed, reused or produced in the US
Berry Amendment
Exceptions:
Acquisitions at or below the SAT
Acquisitions purchased outside the US in support of combat operations
What is a Synopsis?
a “snapshot” of the requirement that the government is trying to fulfill
What are the exceptions to publicizing?
FAR 5.202
Synopsis cannot be worded to preclude disclosure of an agency’s needs and disclosure would compromise national security
Unusual and compelling urgency
Foreign Military Sales (if source directed)
Required by statute
What are the response times for commercial items and R&D?
30 days response time, KO may reduce time; must be reasonable
45 days R&D that exceeds SAT
Which FAR par concerns Publicizing Contract Actions
FAR Part 5
When Is Publicizing Required?
FAR 5.101(a)(2) Proposed contract actions expected to exceed $15,000, but not expected to exceed $25,000—by displaying in a public place, or by any appropriate electronic means for 10 days.
FAR 5.101(a)(1) Proposed contract actions expected to exceed $25,000—synopsize in GPE (Government-wide Point of Entry)
If a synopsis is published, how long after is the solicitation published
At least 15 days prior to solicitation or proposed contract action
Shorter period as established by Contracting Officer for commercial items
If a synopsis is published, how long after is the solicitation published?
At least 15 days prior to solicitation or proposed contract action
Shorter period as established by Contracting Officer for commercial items
Where do you post a synopsis?
GPE - FedBizOps
What information is included in a Synopsis?
Description of action Quantity Place of performance Competition requirement Date the solicitation will be published
What kind of contract for sealed bidding?
Firm Fixed
Which far part concerns Special Contracting Methods
FAR part 17
