FAR Part 11 Flashcards
Describing Agency Needs
FAR Part 11
Describing Agency Needs
Overview of FAR Part 11 - Describing Agency Needs
Purpose: Establishes policies and procedures for determining agency needs (FAR 11.000).
Key Sections:
11.1 Selecting and Developing Requirements Documents
11.2 Using and Maintaining Requirements Documents
11.3 Acceptable Material
11.4 Delivery or Performance Schedules
11.5 Liquidated Damages
11.6 Priorities and Allocations
11.7 Variation in Quantity
11.8 Testing
FAR Part 11: Describing Agency Needs
Subpart 11.1 - Selecting and Developing Requirements Documents
Purpose: Establishes the need for accurate and thorough requirements documents (FAR 11.101).
Key Points:
Requirements must be clearly defined to ensure effective procurement (FAR 11.101(a)).
Use of performance-based acquisition methods where possible (FAR 11.101(b)).
Coordination with stakeholders to ensure requirements are complete and achievable (FAR 11.102).
FAR Part 11: Describing Agency Needs
Instructor Dialogue
“FAR Part 11 focuses on the policies and procedures for determining and describing agency needs.
This part helps mitigate risks by ensuring that requirements are clearly defined and properly documented.
By following these guidelines, agencies can ensure that procurement processes are efficient and meet the intended goals.”
Subpart 11.1 - Selecting and Developing Requirements Documents
Instructor Dialogue
Subpart 11.2 focuses on the use and maintenance of requirements documents.
It’s essential to regularly review and update these documents to ensure they remain relevant and compliant with current policies.
This practice helps mitigate risks by preventing outdated or incorrect requirements from affecting procurement outcomes.”
FAR Part 11: Describing Agency Needs
Subpart 11.2 - Using and Maintaining Requirements Documents
Purpose: Ensures requirements documents are kept up-to-date and relevant (FAR 11.201).
Key Points:
Regular review and update of requirements documents (FAR 11.201(a)).
Ensuring consistency with current policies and regulations (FAR 11.201(b)).
Maintaining clear and accessible documentation for all stakeholders (FAR 11.201(c)).
FAR Part 11: Describing Agency Needs
Subpart 11.2 - Using and Maintaining Requirements Documents
Instructor Dialogue:
Subpart 11.2 focuses on the use and maintenance of requirements documents.
It’s essential to regularly review and update these documents to ensure they remain relevant and compliant with current policies.
This practice helps mitigate risks by preventing outdated or incorrect requirements from affecting procurement outcomes
FAR Part 11: Describing Agency Needs
Subpart 11.3 - Acceptable Material
Purpose: Defines the standards for acceptable materials in procurement (FAR 11.301).
Key Points:
Specifications must reflect the minimum needs of the agency (FAR 11.301(a)).
Consideration of commercial standards and practices (FAR 11.301(b)).
Ensuring materials meet environmental and safety regulations (FAR 11.302).
FAR Part 11: Describing Agency Needs
Subpart 11.3 - Acceptable Material
Instructor Dialogue
Subpart 11.3 establishes standards for acceptable materials in procurement.
Specifications should reflect the agency’s minimum needs and consider commercial standards. Ensuring that materials meet environmental and safety regulations is crucial for reducing risks associated with non-compliance and ensuring the safety and effectiveness of procured items.”
FAR Part 11: Describing Agency Needs
Subpart 11.4 - Delivery or Performance Schedules
Purpose: Establishes guidelines for setting delivery and performance schedules (FAR 11.401).
Key Points:
Schedules must be realistic and achievable (FAR 11.401(a)).
Consideration of contractor capabilities and workload (FAR 11.402).
Flexibility to accommodate unforeseen circumstances (FAR 11.403).
FAR Part 11: Describing Agency Needs
Subpart 11.4 - Delivery or Performance Schedules
Instructor Dialogue
Subpart 11.4 provides guidelines for setting realistic and achievable delivery and performance schedules.
Considering contractor capabilities and allowing for flexibility can help mitigate risks associated with delays and ensure that projects are completed on time and within budget.”
FAR Part 11: Describing Agency Needs
Subpart 11.5 - Liquidated Damages
Purpose: Provides a mechanism to compensate for delays in contract performance (FAR 11.501).
Key Points:
Establishing liquidated damages clauses in contracts (FAR 11.502).
Calculation of liquidated damages based on potential harm (FAR 11.503).
Enforcement of liquidated damages to incentivize timely performance (FAR 11.504).
FAR Part 11: Describing Agency Needs
Subpart 11.5 - Liquidated Damages
Instructor Dialogue
Subpart 11.5 introduces the concept of liquidated damages, which serve as a mechanism to compensate for delays in contract performance.
By including liquidated damages clauses and calculating potential harm, agencies can incentivize timely performance and mitigate risks associated with project delays
FAR Part 11: Describing Agency Needs
Subpart 11.6 - Priorities and Allocations
Purpose: Ensures prioritization of contracts that support national defense and other critical needs (FAR 11.601).
Key Points:
Implementation of the Defense Priorities and Allocations System (DPAS) (FAR 11.602).
Prioritizing contracts that support national defense and critical infrastructure (FAR 11.603).
Coordination with relevant agencies to ensure proper allocation of resources (FAR 11.604).
FAR Part 11: Describing Agency Needs
Subpart 11.6 - Priorities and Allocations
Instructor Dialogue:
Subpart 11.6 ensures that contracts supporting national defense and other critical needs are prioritized appropriately.
The Defense Priorities and Allocations System (DPAS) helps agencies allocate resources effectively, mitigating risks associated with shortages or delays in critical supplies and services
FAR Part 11: Describing Agency Needs
Subpart 11.7 - Variation in Quantity
Purpose: Allows for flexibility in contract quantities to accommodate production variances (FAR 11.701).
Key Points:
Establishing acceptable variation ranges in contracts (FAR 11.702).
Addressing the impact of quantity variations on pricing and delivery (FAR 11.703).
Ensuring transparency and fairness in handling quantity variations (FAR 11.704).
FAR Part 11: Describing Agency Needs
Subpart 11.7 - Variation in Quantity
Instructor Dialogue:
“Subpart 11.7 addresses variations in contract quantities, allowing for flexibility to accommodate production variances.
Establishing acceptable variation ranges and addressing their impact on pricing and delivery helps mitigate risks and ensures transparency and fairness in contract performance.”
FAR Part 11: Describing Agency Needs
Subpart 11.8 - Testing
Purpose: Ensures that products meet required standards through rigorous testing (FAR 11.801).
Key Points:
Implementing testing requirements in contracts (FAR 11.802).
Conducting inspections and tests to verify compliance (FAR 11.803).
Using testing results to inform acceptance or rejection of products (FAR 11.804).
FAR Part 11: Describing Agency Needs
Subpart 11.8 - Testing
Instructor Dialogue:
Subpart 11.8 focuses on the importance of testing to ensure that products meet required standards.
By implementing testing requirements, conducting thorough inspections, and using the results to inform acceptance or rejection, agencies can mitigate risks associated with non-compliant or substandard products.”
DescribingAgencyNeeds
Agencies shall specify needs using
market research in a manner designed to promote full and open
competition, or maximum practicable competition
when using simplified acquisition procedures, with due regard to the nature of the supplies or services to
be acquired; and only include restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or as authorized by law.
Acquisition officials should state requirements with respect to an acquisition of supplies or services in terms of:
- Functions to be performed,
- Performance required, or
- Essential physical characteristics.
Preference for Commercial Items
Acquisition officials should define requirements in terms that enable and encourage offerors to supply
commercial items, or,
to the extent that commercial items suitable to meet the agency’s needs are not available, non-developmental items, in response to the agency solicitations.
Offerors of commercial items and non-developmental items should be provided an opportunity to compete
in any acquisition to fil such requirements. Prime contractors and subcontractors at all tiers should be required to incorporate commercial items or non- developmental items as components of items supplied
to the agency.
Requirements (in appropriate cases) should be modified to ensure that they can be met by commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, non-developmental items.
Weightsa n dMeasures
The Metric Conversion Act of 1975 designates the metric
system as the
preferred system of weights and measures for United States trade and commerce.
Its use is required except to the extent that such use is impracticable or is likely to cause significant inefficiencies or
loss of markets to United States firms.
Consideration of Sustainable Acquisition
Various statutes and executive orders require consideration of sustainable acquisition, including
energy-efficient and water-efficient products and services that may utilize renewable energy technologies, recovered materials, bio-based products, and other environmentally preferable products and services, including EPEAT-registered
electronic products.
Requirements Documents
Agencies may select from existing requirements documents, modify or combine existing requirements documents, or create new requirements documents to meet agency needs.
The order of precedence for requirements documents is:
- Documents mandated for use by law
- Performance-oriented documents (such as a PWS or SOO)
- Detailed design-oriented documents
- Standards, specifications and related publications issued by the government outside the Defense or Federal series
Market Acceptance
The head of an agency may require offerors to demonstrate that the items offered have either
achieved commercial market acceptance or have
been satisfactorily supplied to an agency under current or recent contracts for the s a m e or similar
requirements, and otherwise meet the criteria in the solicitation.
Market Acceptance
Criteria for demonstrating an item’s commercial market acceptance shall:
- Reflect the minimum need of the agency and be reasonably related to the demonstration of an item’s acceptability
- Relate to an item’s performance and intended use, not an offeror’s capability
- Be supported by market research
- Consider the entire relevant commercial market, including small business concerns
MarketAcceptance
Commercial market acceptance shall not
be used as a sole criterion to evaluate whether an item meets the government’s requirements.
Using Brand-Name Specifications
The use of brand name or equal purchase descriptions may be advantageous under certain circumstances.
Brand name or equal purchase descriptions must include, in addition to the brand name, a general description of those
salient physical, functional, or performance characteristics of the brand name item that an “equal” item must meet to be
acceptable for award.
Use brand name or equal descriptions when the salient characteristics are firm requirements.
Delivery and Performance Schedules
Time of delivery or performance must be
realistic and clearly stated within the solicitation.
Unreasonable delivery or performance schedules are inconsistent with
small business policy, may restrict competition, and may result ni higher contract prices.
Delivery and Performance Schedules
For supplies or services, relevant factors when establishing a contract delivery or performance schedule include:
- Urgency of need
- Industry practices * Market conditions
- Transportation time * Production time
- Capabilities of small business concerns
- Administrative time to obtain and evaluate offers and award contracts
- Time for contractors to comply with conditions of contract performance * Time for the government to perform its obligations
Delivery and Performance Schedules
Additional relevant factors when establishing a contract delivery or
performance schedule for construction include:
- Nature and complexity of the project
- Construction s e a s o n s involved
- Required completion date
- Availability of materials and equipment
- Capacity of the contractor to perform
- Use of multiple completion dates
LiquidatedDamages
FAR 11.500 prescribes policies and procedures for using liquidated damages clauses ni solicitations and
contracts for
supplies, services, research and development, and construction.
This subpart does not apply to liquidated damages for subcontracting plans
or liquidated damages related to the Contract Work Hours and Safety Standards Act.
Use liquidated damages clauses only when:
- The time of delivery or timely performance is so important that the government may reasonably expect to suffer damage if the delivery or performance is delinquent, and
- The extent or amount of such damage would be difficult or impossible to estimate accurately or prove.
Liquidated Damages
The amount to be paid as liquidated damages is generally expressed as
a percentage of the total contract value and usually contains an amount to be assessed over a specified period of time, up to a specified maximum.
Priorities and Allocations
The Defense Priorities and Allocations System (DPAS) authorizes the use of priorities to
require that contracts ni support of the national defense be accepted and performed on a preferential or priority basis over al other contracts, and to allocate materials and facilities in such a manner as to promote the
national defense.
Priorities and Allocations
DX = #1 First rated and second rated treated equally
DO = #2 First rated and second rated treated equally
Unrated = #3 First rated and second rated treated equally
Variation in Quantity
For construction, variation in estimated quantities of unit- priced items may be authorized.
When the variation between
the estimated quantity and the actual quantity of a unit-priced
item is more than plus or minus 15 percent, an equitable adjustment in the contract price shall be made upon the demand of either the government or the contractor.
The contractor may request an extension of time fi the quantity variation is such as to cause an increase in the time
necessary for completion.
The contracting officer must receive
the request in writing within 10 days from the beginning of the period of delay.
FAR PART 11. DESCRIBING
AGENCY NEEDS
A. POLICY (FAR 11.002)
Agencies shall specify needs using
market research in a manner designed to promote full and open competition and only include restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or
as authorized by
Acquisition officials, to the maximum extent practicable, should state requirements with respect to an acquisition of supplies or services in terms
*Functions to be performed,
- Performance required, or
- Essential physical characteristics.
Acquisition officials should define requirements in terms that enable and encourage offerors to supply
commercial items,
or to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental items, in response to the agency solicitations.
Offerors of commercial items and nondevelopmental items should be provided an opportunity to compete in any acquisition to fill such requirements.
Prime contractors and subcontractors at all tiers should be required to incorporate commercial items or nondevelopmental items as components of items supplied to the agency.
Requirements (in appropriate cases) should be modified to ensure that they can be met by commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental
In the process of defining government requirements for products and services, various statutes and executive orders require consideration
of sustainable acquisition, including energy-efficient and water-efficient products and services that may utilize renewable energy technologies, recovered materials, bio-based products, and other environmentally preferable products and services, including EPEAT-registered electronic products.
Additionally, the Metric Conversion Act of 1975, as amended by the Omnibus Trade and Competitiveness Act of 1988, requires that each agency
use the metric system of measurement in its acquisitions, except to the extent that such use is impracticable or is likely to cause significant inefficiencies or loss of markets to United States firms. Requiring activities are responsible for establishing guidance implementing this policy in formulating their requirements of acquisitions.
While the use of performance specifications is preferred to encourage offerors to propose innovative solutions, the use of
brand name or equal purchase descriptions may be advantageous under certain circumstances.
“Brand name or equal” purchase descriptionsinclude, in addition to the brand name, a general description of those salient physical, functional, or performance characteristics of the brand name item that an “equal” item must meet to be acceptable for award.
Use “brand name or equal” descriptions when the salient characteristics are firm requirements. (See FAR 11.104.)
B. DELIVERY OR PERFORMANCE
SCHEDULES (FAR 11.4)
Time of delivery/performance must
be realistic and clearly stated within the solicitation. Unreasonable delivery or performance schedules are inconsistent with small business policy, may restrict competition, and may result in higher contract prices. Factors to be considered in establishing schedules are listed in FAR 11.402.
Contract delivery or performance may be expressed in terms of specific calendar dates, specific periods from the date of the contract or from the date of receipt by the contractor of the notice of award or acceptance by the government, or specific time for delivery after receipt the contractor of each individual order issued under the contract.
C. LIQUIDATED DAMAGES (FAR 11.5)
This section contains policies and procedures for using liquidated damages clauses in solicitations and contracts for supplies, services, research and development, and construction. This subpart does not apply to liquidated damages for subcontracting plans (see 19.705-7) or liquidated damages related to the Contract Work Hours and Safety Standards (Contract Work Hours and Safety Standards Act). (See subpart 22.3.)
The contracting officer must consider
the potential impact on pricing, competition, and contract administration before using a liquidated damages clause.
Liquidated damages clauses should be used only when
(1) the time of delivery or timely performance is so important that the government may reasonably expect to suffer damage if the delivery or performance is delinquent, and
(2) the extent or amount of such damage would be difficult or impossible to estimate accurately or prove.
Liquidated damages are not punitive in nature nor are they negative performance incentives (see 16.402-2).
Liquidated damages are used to compensate the government for the probable damages it will experience.
Therefore, the liquidated damages rate must be a reasonable forecast of fair compensation for the harm that will be caused by late delivery or untimely performance of the particular contract.
D. PRIORITIES AND ALLOCATIONS (FAR
11.6)
The Defense Priorities and Allocations System (DPAS) authorizes the use of priorities to require
that contracts in support of the national defense be accepted and performed on a preferential or priority basis over all other contracts, and to allocate materials and facilities in such a manner as to promote the national defense.
There are two levels of priority, identified by the rating symbols “DO” and “DX.” DO-rated orders have equal priority with each other and take preference over unrated orders. DX-rated orders have equal priority with each other and take preference over both DO-rated and unrated orders.
E. VARIATION IN QUANTITY (FAR 11.7)
The government may authorize the acceptance of a variation in the quantities delivered under a fixed-price supply contract.
There should be no standard or usual variation percentage, and the variance amount should be based on the normal commercial practices of a particular industry. Generally, the difference should not exceed 10 percent, unless a different limitation is established by agency regulations. Consideration shall be given to the quantity to which the percentage variation applies.
