Efficiency-Reducing Transaction Costs Flashcards
FAR Parts 8, 12, 13, 17, 18, and 38
Efficiency-Reducing Transaction Costs: FAR Parts 8, 12, 13, 17, 18, and 3
Efficiency-Reducing Transaction Costs: FAR Parts 8, 12, 13, 17, 18, and 38
FAR Part 8 - Required Sources of Supplies and Services
FAR Part 12 - Acquisition of Commercial Products and Commercial Services
FAR Part 13 - Simplified Acquisition Procedures
FAR Part 17 - Special Contracting Methods
FAR Part 18 - Emergency Acquisitions
FAR Part 38 - Federal Supply Schedule Contracting
Public Law _____________ authorizes extraordinary contractual actions to facilitate the national defense.
85-804
112-61
65-804
112-110
FAR 18.127
85-804
Which of these mandatory government supply sources has the highest priority for supplies?
Federal Supply Schedule
Service Disabled
Veteran Owned Small Businesses
Federal Prison Industries, Inc.
Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled
FAR 8.002
Federal Prison Industries, Inc.
The contracting officer may exercise options only after determining that all of the following are true, except:
Funds are available.
The requirement covered by the option fulfills an existing Government need.
The contractor has consented to the exercise of the option.
The contractor’s performance on the contract has been acceptable.
FAR 17.207(c)
The contractor has consented to the exercise of the option.
Which of the following is an order for supplies or services for which the price is not established at the time of issuance of the order?
Purchase order
Unpriced Purchase Order
Letter Contract
Blanket Purchase Order
FAR 13.302-2
Unpriced Purchase Order
An acquisition of supplies or services that has an anticipated dollar value exceeding the micro-purchase threshold and not exceeding the simplified acquisition threshold:
Is reserved exclusively for small business concerns and shall be set aside
Shall be fulfilled with the acquisition of commercial items
Must be purchased using a government-wide commercial purchase card
Must be set aside for HUBZone small business concerns or service-disabled veteranowned small business concerns
FAR 13.003
Is reserved exclusively for small business concerns and shall be set aside
Except for information technology contracts and unless otherwise approved in accordance with agency procedures, the total of the basic and option periods shall not exceed ___ years in the case of services, and the total of the basic and option quantities shall not exceed the requirement for ___ years in the case of supplies.
10; 10
10; 5
5; 10
5; 5
FAR 17.204(e)
5; 5
When identical services are on the Procurement List issued by Federal Prison Industries, Inc. that is on the Procurement List issued by AbilityOne, what is the priority for ordering services?
Commercial sources
Federal Prison Industries, Inc.
General Services Administration (GSA)
AbilityOne participating nonprofit agencies
FAR 8.704
AbilityOne participating nonprofit agencies
When identical supplies are on the Procurement List issued by Federal Prison Industries, Inc. that is on the Procurement List issued by Ability One, what is the priority for ordering supplies?
General Services Administration (GSA)
Federal Prison Industries, Inc.
AbilityOne participating nonprofit agencies
Commercial sources
FAR 8.704
Federal Prison Industries, Inc.
Which of the following is not a method for simplified acquisition?
Blanket purchase agreement
Purchase order
Governmentwide commercial purchase card
Advance agreement
FAR 13.3
Advance agreement
Which of the following is the Government’s preferred method to purchase and pay for micro purchases?
Firm-Fixed-Price contract
Purchase order
Government-wide commercial purchase card
Cost Plus Fixed Fee contract
FAR 13.201
Government-wide commercial purchase card
______________ is an online shopping service through which ordering activities may search specific information (national stock number, part number, common name), review delivery options and place orders directly with schedule contractors
E-Buy
SAM.gov
GSA Advantage!
Federal Supply
Schedule (FSS)
FAR 8.402
GSA Advantage!
Federal Supply
mplied warranty of merchantability means:
items are reasonably fit for ordinary purposes for which such items are sold or used.
it is within the merchant’s ability to repair or replace any defective item.
items have a warranty that is specified in terms of months or years.
the seller refuses to put the warranty in writing.
FAR 12.404
items are reasonably fit for ordinary purposes for which such items are sold or used.
Contracts for commercial items shall ______________.
rely on the contractor’s existing quality assurance systems.
rely on either the contractor’s quality assurance system or the government system, whichever is more stringent.
include all relevant government specifications.
include provisions for source inspection.
FAR 12.207
rely on the contractor’s existing quality assurance systems.
To meet the implied warranty of merchantability, the commercial items acquired by the government must be ______________.
manufactured to the highest commercial standards.
of at least average, fair, or medium-grade quality.
factory seconds if they are available.
of at least AAA+ or very high quality.
FAR 12.404
of at least average, fair, or medium-grade quality.
Which of these mandatory Government supply sources has the highest priority for services?
Service Disabled Veteran Owned Small Businesses
Federal Prison Industries, Inc.
Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled
Federal Supply Schedule
FAR 8.002
Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled
Which of the following contract types can be used for the acquisition of commercial items?
Firm-Fixed-Price or Cost Plus Fixed Fee
Firm-Fixed-Price or Fixed Price with Economic Price Adjustment
Any contract type authorized in the FAR
Firm-Fixed-Price only
FAR 12.207(a)
Firm-Fixed-Price or Fixed Price with Economic Price Adjustment
Which of the following is not included in an Interagency Acquisition?
Funds citation
Small business subcontracting plan
Delivery requirements
A description of the supplies and services
FAR 17.503
Small business subcontracting plan
To the extent practicable, acquisition officials should define requirements in terms that enable and encourage offerors to supply what?
Developmental items
Commercial items
Nondevelopmental items, or commercial items if nondevelopmental items are not available
Real property
FAR 12.101
Commercial items
What provides federal agencies with a simplified process of acquiring commercial supplies and services in varying quantities while obtaining discounts associated with volume buying?
Effective competition.
Federal Supply Schedule.
Modular contracting.
Service contract.
FAR 38.101
Federal Supply Schedule.
When contracting for commercial items, the contracting officer must establish price reasonableness and take into account which of the following customary commercial terms and conditions?
Speed of delivery
Quantities ordered
Length of performance period
All of the above
FAR 12.209
All of the above
All of the following statements concerning Federal Supply Schedules are true EXCEPT:
They provide Federal agencies with a simplified process of acquiring commercial supplies and services in varying quantities while obtaining volume discounts.
Firms provide supplies and services at stated prices for given periods of time, for delivery within a stated geographic area.
Federal agencies not identified in the schedules as mandatory users may issue orders under the schedules.
Federal agencies not identified in the schedules as mandatory users may NOT issue orders under the schedules.
FAR 38.101
Federal agencies not identified in the schedules as mandatory users may NOT issue orders under the schedules.
Which FAR part prescribes policies and procedures for contracting for supplies and services under the Federal Supply Schedule program?
Part 42
Part 19
Part 6
Part 38
FAR 38
Part 38
What is the relationship between the Economy Act and more specific statutory authority, like the statutory authorities for the Federal Supply Schedules or Governmentwide acquisition contracts?
The Economy Act applies when more specific statutory authority does not exist.
The Economy Act always applies, regardless of whether more specific statutory authority exists.
Orders using the Federal Supply Schedules or Governmentwide acquisition contracts are to be treated as Economy Act orders.
The Contracting Officer must use discretion in deciding whether to use the Economy Act or more specific statutory authority that may apply to an acquisition.
FAR 17.502-2(b)
The Economy Act applies when more specific statutory authority does not exist.
Imprest Funds are used for cash purchases below what level?
$1,000
$500
$2,500
$750
FAR 13.305
500
Which of the following statements is true in regard to contracting officers tailoring the clause at FAR 52.212-4, Contract Terms and Conditions-Commercial Products and Commercial Services?
Contracting officers may not tailor this clause.
Contracting officers may tailor any paragraph of this clause.
Contracting officers may tailor any paragraph of this clause if a waiver is approved.
Contracting officers shall tailor this clause by addenda to the solicitation and contract.
FAR 12.302.
Contracting officers shall tailor this clause by addenda to the solicitation and contract.
What method of special contracting is used to acquire known requirements in quantities and total cost not over planned requirements for up to five years unless otherwise authorized by statute, even though the total funds ultimately to be obligated may not be available at the time of contract award?
Multi-Year Contracting
Indefinite-Delivery Contracting
Time & Material Contracting
Option Contracting
FAR 17.104
Multi-Year Contracting
Which of the following statements are not true regarding emergency acquisitions conducted under FAR Part 18:
A Waiver of electronic funds transfer payments is prohibited for acquisitions to support unusual and compelling needs or emergency acquisitions.
The use of the no-setoff provision never appropriate in order to facilitate the national defense in the event of a national emergency or natural disaster.
The chief of the contracting office may waive the requirement to obtain a bid guarantee for emergency acquisitions when a performance bond or a performance bond and payment bond is required.
Agencies may authorize advance payments to facilitate the national defense for actions taken under Public Law 85-804 as specified in subpart 50.1.
FAR 18.124
The use of the no-setoff provision never appropriate in order to facilitate the national defense in the event of a national emergency or natural disaster.
The Federal Supply Schedule Program is also known as the:
Central Contractor Registry (CCR)
E-Buy Program
Source-Supply List (SSL)
Multiple Award Schedule Program
FAR 8.402
Multiple Award Schedule Program
When does a quotation become a contract?
When the government issues an order in response to a supplier’s quotation, and the supplier accepts by furnishing these supplies or services
Only when the contractor and government’s agent have agreed to terms and put it in writing
A quote can be accepted by the government without negotiation and is a contract when the government awards the contract.
When the government issues an order to buy certain supplies or services upon specified terms and conditions in response to a supplier’s quotation
FAR 13.004b
When the government issues an order in response to a supplier’s quotation, and the supplier accepts by furnishing these supplies or services
Emergency acquisition flexibilities, as used in this part, means flexibilities provided with respect to any acquisition of supplies or services by or for an executive agency that, as determined by the head of an executive agency, may be used except:
In support of a contingency operation.
To facilitate the defense against or recovery from cyber, nuclear, biological, chemical, radiological attack against the United States.
When the Secretary of Homeland Security issues an emergency declaration, or a major disaster declaration.
In support of a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate the provision of international disaster assistance.
FAR 18.001
In support of a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate the provision of international disaster assistance.
Which of the following acquisitions may not use the acquisition procedures of FAR Part 12?
Performance-based acquisition
Acquisition of a commercial-off-the-shelf item
A purchase made directly from another Federal agency
Acquisition based on the results of market research
FAR 12
A purchase made directly from another Federal agency
What is a multi-year contract?
A contract for the purchase of supplies or services for more than one, but not more than five, program years, under which the contracting officer must establish and exercise an option for each program year after the first.
A contract for the purchase of supplies or services for more than one, but not more than five, program years, under which the contracting officer does not have to establish and exercise an option for each program year after the first, and performance during the second and subsequent years of the contract may be contingent upon the appropriation of funds.
A contract which is funded with multi-year appropriations.
A contract for the purchase of supplies or services for more than one, but not more than five, program years, under which full funding for all program years must be obligated at contract inception.
FAR 17.103
A contract for the purchase of supplies or services for more than one, but not more than five, program years, under which the contracting officer does not have to establish and exercise an option for each program year after the first, and performance during the second and subsequent years of the contract may be contingent upon the appropriation of funds.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What is the GSA Schedules Program and what is its purpose?
The General Services Administration (GSA) administers a wide variety of federal contracts for commercial supplies and services. Any federal agency can place orders against these large, indefinite-delivery, indefinite-quantity (IDIQ) contracts.
The paramount idea behind the GSA Schedules Program is for agencies to save time and money by ordering goods and services with pre-negotiated terms and conditions and with prices associated with bulk-buyer discounts. GSA performs all the upfront work and every agency reaps the benefits-along with the taxpayer.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What is an indefinite delivery, indefinite-quantity contract?
An indefinite-delivery, indefinite-quantity or IDIQ contract allows agencies the flexibility to place orders for amounts they need when the need arises. If the agency knew it needed 1,000 computers in 30 days, the agency could sign a simple purchase order for 1,000 computers. This purchase order would have a definite quantity (1,000) and a definite delivery schedule (within the next 30 days).
But what if the agency knows it needs between 1,000 and 1,000,000 computers at various points within the next 5 years? Enter the IDIQ contract, which establishes a minimum and maximum quantity (between 1,000 and 1,000,000) and an ordering period (today through the next 5 years). Through this IDIQ contract, the agency can easily satisfy its needs for computers whenever they arise. Next month, the agency can order 2,000 computers. The following month, the agency can place zeroorders. At the end of next year, the agency can order 30,000 computers. This flexibility is very convenient for the agency and the contracting office.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What is an order for supplies called?
A delivery order is for supplies. Sometimes a delivery order is abbreviated as “DO.”
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What is an order for services called?
A task order is for services. Sometimes a task order is abbreviated as “TO.”
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What is an ordering activity?
The ordering activity is the federal agency (or office) that places the order.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What is the requiring activity?
The requiring activity is the federal agency (or office) that needs the supplies or services.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
Is the ordering activity always the same as the requiring activity
No, sometimes the ordering activity is different from the requiring activity. For example, the Washington Headquarters Services has a contracting office that performs contracting on behalf of several other Department of Defense agencies. For example, the Office of the Secretary of Defense needs something, so it is the requiring activity. Washington Headquarters
Services places the order, so it is the ordering activity.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
What are the various names for the GSA
Schedule contracts?
GSA Schedule contracts are also called Federal Supply Schedule (FSS) contracts or Multiple Award
Schedule (MAS) contracts.
FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES
FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.
Are GSA Schedule contracts and pricing available to the public?
Yes, you can examine GSA Schedule contracts and pricing on the Internet. GSA maintains a website called GSA Advantage and publishes the
“Authorized Federal Supply Schedule Pricelist.”
The GSA Advantage website also contains the GSA E-Library, which lists plenty of information about the GSA Schedule contract-holders. Your company can and should use this free resource to perform market research, evaluate your competitors, and gather open-source intelligence.
