Contracting Test 3 Flashcards
What type of modification requires the signature of the Contracting Officer and the contractor
Bilateral Modification
Written order signed by PCO, directing the contractor to make a change without prior agreement
Change Order Authorized by the “Changes Clause” Limitations to Changes: Place of delivery Change in packaging Change to design or specifications
Oral or written act or failure to act by Government official (in a position of authority) construed by contractor as having same effect as a written change order
Constructive Change
Must involve:
Change in performance beyond minimum contract requirements, and
Word or deed by Government representative which requires contractor effort that is not a necessary party of the contract
Requires Ratification
What is a change to a contract called?
Modification
In scope modifications will not ______ or ________
Place an undue burden on the contractor
Does not disrupt the competitive aspect
Which part of the FAR covers contract financing
Part 32
Least preferred contract financing method?
Advance payments
Why does the gov’t provide contract financing?
- To expedite the performance of essential contracts
- Increase competition
- High dollar production
- Aid Small Business
- Meets contractors need/minimizing Government risk
Preferred financing method?
Performance-based payments
A written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract
Claim
The date when all events, that fix the alleged liability of either the Government or the contractor and permit assertion of the claim, were known or should have been known
Accrual of a Claim
Any type of procedure or combination of procedures voluntarily used to resolve issues in controversy
ADR
A certificate which alters or otherwise deviates from the language in 33.207(c) or which is not executed by a person duly authorized to bind the contractor with respect to the claim.
Defective Certification
A material disagreement between the Government and the contractor that:
May result in a claim
Is all or part of an existing claim
Issue in controversy
A false statement of substantive fact, or any conduct which leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead
Misrepresentation of fact
Contract Disputes Act of 1978
Establishes procedures and requirements for asserting and resolving claims subject to the Act
When does the Contract Disputes Act of 1978 apply?
Contract Disputes Act applies to any express or implied contract covered by the Federal Acquisition Regulation unless:
The contract is with a foreign government or agency of that government, or
An international organization or a subsidiary body of that organization if the agency head determines that the application of the Act to the contract would not be in the public interest
What are the 6 essential elements of a contract?
- Mutual Assent
- Consideration
- Capacity
- Lawful Purpose
- Certainty of Terms
- Form Provided by law
What type of authority does a KO have? Express or implied?
Express Authority
What is an unauthorized commitment?
An agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government
What is ratification?
The act of approving an unauthorized commitments by an official who has the authority to do so.
Does the gov’t recognize apparent authority?
No
Define Mutual Assent
Meeting of the Minds
What is consideration?
Each party receives something of value and gives something of value
Define Capacity
Right to legally contract
What does lawful purpose mean?
Contracts which violate a statute or conflict with public welfare will not be enforced
What does certainty of terms mean?
Term must be unambiguous and include:
price, delivery schedule, quantity and pws/sow.
What are the three type of contracting authority?
- Express
- Implied
- Apparent
What is express authority
Contracting Officer authority through formal appointment
Appointed on SF 1402 (warrant)
Implied actual authority
Some authorized reps may have implied actual authority
Inspectors may have this type of authority when they are authorized to accept/reject work
Apparent Authority
a principal leads a third party to believe that an agent has authority to bind the principal, even where the agent lacks the actual authority to bind the principal
Define Solicitation
A document sent to prospective contractors by a Government agency, requesting the submission of offers or information.
You are required to put 3 provisions and 3 clauses in solicitations for commercial items.
True or False
False - only two provisions and two clauses are mandatory for commercial item solicitations
Most common form of solicitation?
Written
What is the form used for Army solicitation/contracts for commercial items?
SF 1449
What is a provision?
A written term or condition used only in solicitation and applies only before contract award.
- Required provisions: 52.212-1, 52.212-3
What is a clause?
A term or condition that is used in a Solicitation and a contract
- Required clauses: 52.212-4, 52.212-5
FOB
Free on Board
FOB Origin: the unit will pick up from vendor
FOB Delivery: vendor is responsible for delivery to the unit
What SHALL be considered when evaluating source selection for awards exceeding the SAT?
Past performance shall be evaluated for negotiated competitive procurements exceeding the SAT
What are benefits of providing financing?
increased competition
aid to small businesses