FAR Part 7

Question 1

FAR Part 7

Answer 1

Acquisition Planning

Acquisition Plans

Planning for the Purchase of Supplies in Economic Quantities

Contractor Versus Government Performance

Equipment Lease or Purchase

Inherently Governmental Functions

Question 2

Acquisition planning means

Answer 2

the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost.

It includes developing the overall strategy for managing the acquisition.

Question 3

Acquisition Plans

FAR 7.102(b) … The purpose

Answer 3

of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner.

Agencies that have a detailed acquisition planning system in place that generally meets the requirements of 7.104 and 7.105 need not revise their system to specifically meet all of these requirements.

Question 4

Acquisition Plans

7.104 General procedures.

FAR7.104 (a) Acquisition planning should begin

Answer 4

as soon as the agency need is identified, preferably well in advance of the fiscal year in which contract award or order placement is necessary.

In developing the plan, the planner shall form a team consisting of all those who will be responsible for significant aspects of the acquisition, such as contracting, small business, fiscal, legal, and technical personnel.

The planner should review previous plans for similar acquisitions and discuss them with the key personnel involved in those acquisitions.

At key dates specified in the plan or whenever significant changes occur, and no less often than annually, the planner shall review the plan and, if appropriate, revise it.

Question 5

Acquisition Plans

7.102 Policy

FAR 7.102 (a) Agencies shall perform acquisition planning and conduct market
research (see part 10) for all acquisitions in order to promote and provide for

Answer 5

1) Acquisition of commercial products or commercial services, or to the extent that commercial products suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable ( 10 U.S.C. 3453 and 41 U.S.C. 3307); and

2) Selection of appropriate contract type in accordance with part 16; and

3)Appropriate consideration of the use of pre-existing contracts, including interagency and intra-
agency contracts, to fulfill the requirement, before awarding new contracts. (See 8.002 through 8.004 and subpart 17.5).

Question 6

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Statement of need

Answer 6

Introduce the plan by a brief statement of need.

Summarize the technical and contractual history of the acquisition.

Discuss feasible acquisition alternatives, the impact of prior acquisitions, and any related in-house effort.

Question 7

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Applicable conditions

Answer 7

State significant conditions affecting the acquisition.

Requirements for compatibility with existing or future systems or programs.

Any known cost, schedule, and capability or performance constraints.

Question 8

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Cost

Answer 8

Established cost goals and supporting rationale.

Discuss related cost concepts, including:

Life-cycle cost

Design-to-cost

Application of should-cost analysis

Question 9

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Capability or performance

Answer 9

Specify required capabilities or performance characteristics of the supplies or
services being acquired.

Question 10

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Delivery or performance-period requirements

Answer 10

Describe the basis for establishing delivery or performance-period requirements.

Provide reasons for any urgency.

Question 11

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Trade-Offs

Answer 11

Discuss expected consequences of trade-offs among cost, capability, performance,
and schedule goals.

Question 12

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Risks

Answer 12

Discuss technical, cost, and schedule risks and efforts to reduce them.

Effects of concurrency of development and production on cost and schedule risks.

Question 13

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Acquisition streamlining

Answer 13

Encourage industry participation.

Select and tailor only necessary and cost-effective requirements.

State timeframe for identifying mandatory specifications and standards.

Question 14

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Sources

Answer 14

Indicate prospective sources of supplies or services.

Consider required sources and databases.

Include consideration of small business concerns.

Address impact of consolidation or bundling on small businesses.

Market research impact on the plan

Question 15

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Competition

Answer 15

Describe how competition will be sought, promoted, and sustained.

Authority and basis for not providing full and open competition.

Competition for major components or subsystems, spares, and repair parts.

Effective subcontract competition.

Question 16

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Contract type selection

Answer 16

Rationale for contract type selection.

Document acquisition plan with findings supporting the contract type selection.

Question 17

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Source-section procedures

Answer 17

Discuss source selection procedures and evaluation factors.

Consideration of pre-award IBR in source selection decision.

Question 18

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing procedures.

Acquisition considerations

Answer 18

Use of multiyear contracting, options, special clauses, sealed bidding or negotiation.

Capital planning and investment control requirements for information technology acquisitions.

Compliance with ICT accessibility standards.

Strategy to transition to firm-fixed-price contracts.

Question 19

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Budgeting and funding

Answer 19

Include budget estimates and schedule for obtaining funds.

Product or service descriptions

Explain choice of product or service description types.

Question 20

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Priorities, allocations, and allotments

Answer 20

Specify method for obtaining and using priorities and allocations.

Question 21

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Contractor versus Government performance

Answer 21

Consideration given to OMB Circular No. A-76.

Question 22

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Inherently governmental functions

Answer 22

Consideration given to subpart 7.5.

Question 23

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Management information requirements

Answer 23

Management system to monitor contractor’s effort.

Use of Earned Value Management System.

Question 24

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Make or Buy

Answer 24

Consideration given to make-or-buy programs.

Question 25

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Test and evaluation

Answer 25

Describe test program for the contractor and the Government.

Question 26

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Logistics considerations

Answer 26

Contractor or agency support, reliability, maintainability, quality assurance, data requirements, and standardization concepts.

Question 27

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Government-furnished property

Answer 27

Indicate any Government property to be furnished to contractors.

Question 28

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Government-furnished information

Answer 28

Discuss any Government information to be provided to prospective offerors and contractors.

Question 29

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Environmental and energy conservation objectives

Answer 29

Environmental and energy conservation objectives associated with the acquisition.

Question 30

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Security considerations

Answer 30

Adequate security for classified matters and information technology acquisitions.

Question 31

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Contract administration

Answer 31

How the contract will be administered.

Question 32

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Other considerations

Answer 32

Standardization concepts, industrial readiness program, Defense Production Act, OSHA, SAFETY Act, foreign sales implications, special requirements for designated operational areas, and other relevant matters.

Question 33

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Milestones for the acquisition cycle

Answer 33

Acquisition plan approval, statement of work, specifications, data requirements, acquisition-package preparation, purchase request, justification and approval for other than full and open competition, issuance of synopsis, solicitation, evaluation of proposals, negotiations, contract preparation, review, clearance, and contract award.

Question 34

7.105 Contents of written acquisition plans.

In preparing the plan, the planner must follow the applicable instructions in paragraphs (a) and (b) of this section, together with the agency’s implementing

Identification of participants in acquisition plan preparation

Answer 34

List individuals who participated in preparing the acquisition plan with contact
information.

Question 35

FAR 2.101 Bundling means:

Answer 35

a subset of consolidation that combines two or more requirements for supplies or services, previously provided or performed under separate smaller contracts into a solicitation for a single contract, a multiple-award contract, or a task or delivery order that is likely to be unsuitable for award to a small business concern…

Question 36

7.107-3 (a) Bundling may provide substantial benefits to the Government.

Answer 36

However, because of the potential impact on small business participation, before conducting an acquisition strategy that involves bundling, the agency shall make a written determination that the bundling is necessary and justified in accordance with 15 U.S.C. 644(e).

A bundled requirement is considered necessary and justified if the agency would obtain measurably substantial benefits as compared to meeting its agency’s requirements through separate smaller contracts or orders.

Question 37

7.202 (a) Agencies are required by 10 U.S.C. 3242 and 41 U.S.C.3310 to procure supplies in
such quantity as-

Answer 37

(1) Will result in the total cost and unit cost most advantageous to the Government, where practicable; and

(2) Does not exceed the quantity reasonably expected to be required by the agency.

Question 38

7.401 Acquisition considerations.

7.401 (a) (1)Agencies shall acquire equipment using the method of acquisition

Answer 38

most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors in accordance with this subpart and agency procedures.

Question 39

(2) The methods of acquisition to be compared in the analysis shall include, at a minimum—

Answer 39

(i)Purchase;

(ii)Short-term rental or lease;

(iii)Long-term rental or lease;

(iv)Interagency acquisition ;and

(v)Agency acquisition agreements, if applicable, with a State or local government.

Question 40

Equipment Lease or Purchase

(b) (1)The factors to be compared in the analysis shall include, at a minimum

Answer 40

(i) Estimated length of the period the equipment is to be used and the extent of use within that
period;

(ii) Financial and operating advantages of alternative types and makes of equipment;

(iii) Cumulative rent, lease, or other periodic payments, however described, for the estimated period of use;

(iv) Net purchase price;

(v) Transportation, installation, and storage costs;

(vi) Maintenance, repair, and other service costs; and

(vii) Potential obsolescence of the equipment because of imminent technological improvements.

Question 41

Subpart 7.3 - Contractor Versus Government Performance

7.301 Definitions.

Definitions of “inherently governmental activity” and other terms applicable to this subpart are set forth at Attachment D of the Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (the Circular).

An inherently governmental activity is described

Answer 41

as one that is so intimately related to the public interest that it mandates performance by government personnel.

These activities require the exercise of substantial discretion in applying government authority and/or making decisions for the government.

Examples include activities that involve binding the government to take or not take some action by contract, policy, regulation, authorization, order, or otherwise; activities that significantly affect the life, liberty, or property of private persons; and activities that exert ultimate control over the acquisition, use, or disposition of government property.

Question 42

Contractor Versus Government Performance
7.302 Policy.

7.302 (a) The Circular provides that it is the policy of the Government to-

Answer 42

(1) Perform inherently governmental activities with Government personnel; and

(2) Subject commercial activities to the forces of competition.

(b) As provided in the Circular, agencies shall

(1) Not use contractors to perform inherently governmental activities…

Question 43

Acquisition planning

Answer 43

The process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost

Includes the overall strategy for managing the acquisition

The purpose of acquisition planning is to ensure that the government meets its needs in the most effective,
economical, and timely manner.

Question 44

Acquisition planning should begin

Answer 44

as soon as the
agency need is identified, preferably well in advance
of the fiscal year in which contract award or order placement is necessary.

Question 45

The acquisition team

Answer 45

consists of al personnel who are responsible for significant aspects of the acquisition.

Question 46

The acquisition planner

Answer 46

is the person or office designated as responsible for developing and
maintaining the acquisition plan.

Question 47

When ful and open competition is not required,

Answer 47

acquisition planning promotes and provides for competition to be obtained to the maximum extent
practicable.

Question 48

Acquisition planning promotes and provides for:

Answer 48

Acquisition of commercial or nondevelopmental items to the maximum extent practicable

Full and open competition when required, or the
maximum amount of competition practicable

Selection of the appropriate contract type

Appropriate consideration of
the use of preexisting contracts before awarding
new contracts

Question 49

Agencies are required to procure supplies in the quantities that

Answer 49

will result ni the total cost and unit cost that are most advantageous to the government.

Question 50

Agencies are required to procure supplies in the quantities that wil result

Answer 50

in the total cost and unit cost that are most advantageous to the government.

Acquisitions of supplies shall not exceed the quantity
reasonably expected to be required by
the agency.

Question 51

Acquisition Plan Contents

Background and objectives

Answer 51

Defining the government’s needs,
performance requirements, and capabilities

Describing the conditions

Identifying trade-offs and risks * Estimating costs

Question 52

Acquisition Plan Contents

Plan of action

Answer 52

Competition, sources, source selection procedures

Contract type, bundling, funding

Make or buy, inherently governmental considerations

Logistical considerations, testing requirements, government property

Milestone / performance schedules * Participants and responsibilities

Question 53

Bundling

Answer 53

Consolidating two or more requirements for supplies or services, previously
provided or performed under separate smaller contracts, into a solicitation for a single contract

Bundling may provide substantial benefits to the
government, but, due to the potential impact on small business, market research should be conducted to
determine whether bundling is justified.
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Question 54

Inherently Governmental Activity

It is the policy of the government to:

Answer 54

Perform inherently governmental activities with government
personnel, and

Subject commercial activities to the forces of competition.

Question 55

Inherently Governmental Activity

Inherently governmental function

Answer 55

As a matter of policy, a function that is so intimately related to the public interest as to mandate performance by government employees

An inherently governmental function includes activities
that require either the exercise of discretion in applying government authority, or the making of value judgments in making decisions for the government.

Question 56

Inherently governmental functions do not include

Answer 56

functions that are primarily ministerial and internal in
nature, such as security, mail, cafeteria operations, housekeeping and maintenance, or other routine services.

Question 57

Inherently governmental functions do not normally
include

Answer 57

gathering information for or providing advice, opinions, recommendations, or ideas to government officials.

Question 58

InherentlyGovernmentalActivity

It is the policy of the government to

Answer 58

Perform inherently governmental activities with government personnel

Subject commercial activities to the forces of competition
Agencies shall

Not use contractors to perform inherently governmental activities

Conduct public-private competitions

Give appropriate consideration relative to cost when making
performance decisions between agency and contractor performance in public-private competitions

Question 59

Lease of equipment is generally more appropriate than
purchasing,

Answer 59

except in cases where purchase is clearly advantageous to the government.

Question 60

Lease of equipment should be done, when possible,

Answer 60

with an option to purchase the equipment. The contract shall state the
purchase price or the formula by which the purchase price will be determined,.

Question 61

Considerations When Determining Whethert oLeaseo rBuyEquipment

Answer 61

Estimated length of the period the equipment is to be used, and the extent of use within that period

Financial and operating advantages of alternative types and makes of equipment

Cumulative rental payments for the estimated period of use

Net purchase price

Transportation and installation costs

Maintenance and other service costs

Potential obsolescence of the equipment because of imminent technological improvements

Question 62

7.105 acquisition plan objections

Answer 62

statement of need

applicable conditions

cost

Capability or performance

POP

Trade offs

risks

aquistion streamlining

Question 63

Plan of Action

Answer 63

Sources,

competition

contract type selection

source selection

procedures

acquitision

considerations

budgeting and funding

product or service

descriptions

priorties allocations and
allotments

contractors vs government performance

inherently governmental functions

management information requirements

make or buy

test and evaluation

logistics considerations

government furnished property

environmental and energy

security considerations

contract administration