Final Key Cards Flashcards

Question 1

Q

What is the FAR?

Answer

A

2,000-page section of U.S. Code of Federal Regulations that lays out all
federal rules and regulations related to contracting

Question 2

Q

How is the FAR issued?

Answer

A

as Chapter 1 of Title 48 of the Code of Federal Regulations and is
published in two volumes. Volume 1 contains Subchapters A through G, and Volume 2
contains Subchapter H. Each of the eight subchapters deals with a different element of
the acquisition process:

Subchapter A: General (Parts 1–4)
Subchapter B: Acquisition Planning (Parts 5–12)
Subchapter C: Contracting Methods and Types (Parts 13–18)
Subchapter D: Socioeconomic Programs (Parts 19–26)
Subchapter E: General Contracting Requirements (Parts 27–33)
Subchapter F: Special Categories of Contracting (Parts 34–41)
Subchapter G: Contract Management (Parts 42–51)
Subchapter H: Clauses and Forms (Parts 52–53)

Question 3

Q

Part 38

Answer

A

Federal Supply Schedule Contracting:

Prescribes policies and procedures for contracting for supplies and services under the Federal Supply Schedule (FSS) program (also called the GSA Schedules Program or the Multiple Award Schedule Program), a GSA program which provides federal agencies with a simplified process for obtaining commercial supplies and services at prices associated with volume buying.

Question 4

Q

applying the FAR to the acquisition of goods and services is how government funds are?

Answer

A

used effectively to reduce waste and get the best value for federal dollars spent. It also
helps protect federal tax dollars from unethical people and businesses. Think of federal
contracting like driving a vehicle and the FAR as a set of traffic laws. The FAR, like traffic
laws, helps us get where we are going, on time, in the safest and best way possible.

Question 5

Q

The FAR System is issued pursuant to

Answer

A

the Office of Federal Procurement Policy (OFPP) Act, which established the Office of Federal Procurement Policy within the Office of Management and Budget (OMB).

Question 6

Q

FAR 1.103 Authority

Answer

A

The Federal Acquisition Regulation (FAR) is issued under the joint authority of the Administrator of General Services, the Secretary of Defense, and the Administrator of the National Aeronautics and Space Administration, under their several statutory authorities.
The FAR System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies.
The FAR is prepared ,issued, and maintained ,and the FAR System is coordinated, by the two agencies acting jointly.

Question 7

Q

FAR 1.105-1 Publication and Code Arrangement

(a) The FAR is published

Answer

A

in the daily issue of the Federal Register and, in
cumulative form, in the Code of Federal Regulations (CFR).

Question 8

Q

FAR 1.105-1 Publication and Code Arrangement

(b) The FAR is codified

Answer

A

in Chapter 1 of Title 48 of the CFR.

Question 9

Q

What Are the Guiding Principles?

Answer

A

The FAR system wil:

Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service by.
* Maximizing the use of commercial products and services,
* Using contractors who have a track record of successful past
performance or who demonstrate a proven ability to perform, and
* Promoting competition

Minimize administrative operating costs

Conduct business with integrity, fairness, and openness

Fulfil public policy objectives

Question 10

Q

The FAR’s Establishment and Authority

Answer

A

Aug 30 1974 Executive Office of the President

OFPP

To create an office of Federal Procurement Policy designed to promote economy, efficiency and effectiveness in procurement of goods, services and facilities by and for the executive branch of the Federal Government

Question 11

Q

How is the FAR maintained

Answer

A

The FAR is published in:

Federal Register: In the daily issue

Code of Federal Regulations: In cumulated form

Loose leaf: As a separate edition

Question 12

Q

Responsible for establishing and operating the FAR

Answer

A

GSA

Secretariat to print, publish, and distribute
the FAR through the Code of Federal Regulations system, including aloose-leaf edition with periodic updates

Question 13

Q

On-going maintenance of FAR

Answer

A

DAR Council: Defense Acquisition Regulations Council

CAA Civilian Agency Acquistion Council

Question 14

Q

On-going maintenance of FAR.

Each council shall be responsible for (DAR Council, CAA Council)

Answer

A

Agreeing on all revisions with the other council,

Submitting to the FAR Secretariat the information required for publication
in the Federal Register of a notice soliciting comments on a proposed
revision to the FAR,
Considering all comments received in response to notice of proposed
revisions,
Arranging for public meetings,
Preparing any final revision in the appropriate FAR format and language, and
Submitting any final revision to the FAR Secretariat for publication in the Federal Register and printing for distribution.

Question 15

Q

GSA Authorizes the FAR Secretariat to print,
publish, and distribute the FAR

Shall provide the two councils with centralized services for:

Answer

A

Keeping a synopsis of current FAR cases and their status,
Maintaining official files,
Assisting parties interested in reviewing the
files on completed cases, and
Performing administrative tasks pertaining to FAR maintenance.

Question 16

Q

How Is the FAR Arranged?

Answer

A

The FAR is divided into subchapters, parts (each of which covers
a separate aspect of acquisition), subparts, sections, and subsections.

9.106-4(d)

9=Part
1=Subpart
06=Section
4=Subsection
(d) paragraph

Question 17

Q

More FAR Conventions

When an imperative sentence directs action,

Answer

A

the contracting officer is responsible for the action, unless another party is expressly cited.
“Must” “Should” “Shall” “Will”

Question 18

Q

What Are Threshold Adjustments?

Answer

A

The FAR Council periodically adjusts all statutory acquisition-
related dollar thresholds in the FAR for inflation, except thresholds
- established by the Wage Rates Requirements
(formerly Davis-Bacon Act),
- the Service Contract Labor
Standards (formerly Service Contract Act of 1965),
- or the United States Trade Representative pursuant to the authority of the
Trade Agreements Act of 1979.

This adjustment is calculated every 5 years, starting in October 2005, using the Consumer Price Index (CPI) for all-urban consumers.

Ref.: FAR 1.109

Question 19

Q

Determination and Findings

Answer

A

A special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions.

The determination is a conclusion or decision supported by the findings.
The findings are statements of fact or rationale essential to support the
determination and must cover each requirement of the statute or regulation

Question 20

Q

IMPERATIVE SENTENCES: When an imperative sentence (containing verbs such as shall, must, or will) directs action,

Answer

A

the contracting officer is responsible for the action, unless another party is expressly cited.

Question 21

Q

Recommended revisions to the FAR shall be transmitted to

Answer

A

the FAR Secretariat by agency heads, or their designees, for authorizing class deviations.

Question 22

Q

Determination and Findings (D&F) means

Answer

A

a special form of written approval by an authorized official

that is required by statute or regulation as a prerequisite to taking certain contract actions.

The “determination” is a conclusion or decision supported by the
“findings.”

The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.

Question 23

Q

At a minimum, a D&E shall include, in the prescribed agency format, the following information:

Answer

A

identification of the agency and of the contracting activity and specific identification of the document as a D&F;

nature and/or description of the action being approved;

citation of the appropriate statute and/or regulation upon which the D&F is based;

findings that detail the particular circumstances, facts, or reasoning essential to support the determination;

a determination, based on the findings, that the proposed action is justified under the applicable statute or regulation;

an expiration date of the D&F, if required;

the signature of the official authorized to sign the D&F; and the date signed.

Question 24

Q

Micro-Purchase Threshold

Answer

A

Micro-Purchase Threshold means $10,000, except it means

(1) For acquisitions of construction subject to the Wage Rate Requirements (Construction), $2,000;

(2) For acquisitions of services subject to the Service Contract Labor Standards, $2,500; and

(3) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, as described in paragraph (1) of the definition of micro-purchase threshold at 2.101, except for construction subject to the Wage Rate Requirements (Construction) (41 U.S.C. 1903)—

(i) $20,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and

(ii) $35,000 for any contract to be awarded and performed, or purchase to be made, outside the United States.

Question 25

Q

Simplified Acquisition Threshold

Answer

A

Simplified Acquisition Threshold means $250,000,except for—
* (1) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack (41 U.S.C. 1903)—
* (i) $800,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and
* (ii) $1.5 million for any contract to be awarded and performed, or purchase to be made, outside the United States; and

(2) Acquisitions of supplies or services that, as determined by the head of the agency, are to support a humanitarian or peacekeeping operation (10 U.S.C. 2302(7))—
* (i) $800,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and
* (ii) $1.5 million for any contract to be awarded and performed, or purchase to be made, outside the United States.

Question 26

Q

Commercial product

Answer

A

Any item, other than real property, that is of a type customarily used for nongovernmental purposes and that:
* Has been sold, leased, or licensed to the general public; or
* Has been offered for sale, lease, or license to the general public

Commercial items also include items that evolved from an item
described in this definition through advances in technology or
performance and that is not yet available in the commercial marketplace, but wil be available ni the commercial marketplace ni time to satisfy the delivery requirements under a government solicitation.

Question 27

Q

May

Answer

A

Denotes the permissive

However, the words “no person may…” mean that no person is required, authorized, or permitted to do the act described

Question 28

Q

Shall

Answer

A

Denotes the imperative

Question 29

Q

Simplified acquisition

Answer

A

A less rigorous method for entering into relatively low-dollar-threshold contracts

Simplified acquisition usually occurs without the elaborate and
formal solicitation techniques required by sealed bidding and negotiation.

Very small purchases should be made using simplified acquisition tools such as charge cards.

Question 30

Q

Simplified Acauisition Threshold (SAT)

Threshold amount updated in FAR 2.101

Answer

A

For acquisitions of supplies or services to support contingency operations, or to
defend against or recover from a nuclear, biological, chemical, or radiological attack:

$300,000 for any contract to be awarded and performed, or purchase to be made, inside the United States
$1,000,000 for any contract to be awarded and performed, or purchase to be made, outside the United States

Question 31

Q

Micropurchase

Answer

A

An acquisition of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed $3,500 (micropurchase threshold)

Does not exceed $2,000 for acquisitions subject to the Wage Rates Requirements statute (Construction)
Does not exceed $2,500 for acquisitions subject to the Service Contract Labor Standards statute
Does not exceed $20,000 for acquisitions of supplies or services to support contingency operations inside the United States
Does not exceed $35,000 for acquisitions of supplies or services to support contingency operations outside the United States

Question 32

Q

Micro Purchase

Answer

A

10k everything

2k construction

25k services

Question 33

Q

Simplified Acquisition Treshold

Answer

A

250k except

contingent 800k 1.5m international

humanity 800k 1.5m international

Question 34

Q

1) Clause means

Answer

A

a term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award.

Question 35

Q

Provision means

Answer

A

a term or condition used only in solicitations and applying only before contract award.

Question 36

Q

(1) FAR provisions and clauses. Provisions and clauses prescribed by this regulation (48 CFR chapter 1) are identified as follows:

Answer

A

(i) A provision or clause is identified by a number in the format 52.xxx-xx, where the first pair of digits is the part number and the second pair (after the decimal) is the sequence number.
(ii) The sequence number shall use 01 for the first provision or clause in each part and be numbered consecutively.

Question 37

Q

Agency provisions and clauses. Agency provisions and clauses are identified by the same number format as FAR provisions and clauses, except that

Answer

A

the number is preceded by a hyphen and the agency’s abbreviation or symbol. For example, a provision or clause prescribed by the Department of the Treasury would be identified as “52.TREAS-xxx-xx.”

Question 38

Q

(d) Matrix.

Answer

A

A matrix listing the FAR provisions and clauses in numerical order and cross-referenced to the appropriate FAR prescription is located in subpart 52.3.

This matrix is a reference tool and should not be used in lieu of the prescriptions in FAR subparts 52.2 and 52.3.

Question 39

Q

Whenever any FAR provision or clause is used without deviation in a solicitation or contract, whether it is incorporated by reference or in full text, it must be identified by

Answer

A

by number, title, and date. This identification shall also be used if the FAR provision or clause is used with an authorized deviation, except that the contracting officer must then insert
“(DEVIATION)” after the date.

Question 40

Q

The FAR accommodates a major variation in a provision or clause by use of an alternate. The FAR prescribes alternates to a given provision or clause in the FAR where the provision or clause is prescribed.

The alternates to each provision or clause are titled

Answer

A

“Alternate I,” “Alternate II,”
“Alternate III,” etc.

When an alternate is used, its date will be cited along with the date of the basic provision or clause; e.g., 52.209-3 First Article Approval-Contractor Testing (OCT 1983)-Alternate I (DEC
1983). When more than one alternate is used, they are cited sequentially (e.g., Alternate I (DEC
1983) and Alternate II (FEB 1984)).

Question 41

Q

53.102 Current editions.

Answer

A

The form prescriptions in subpart 53.2 and the FAR forms located at https://www.gsa.gov/forms contain current edition dates. Contracting officers shall use the current editions unless otherwise authorized under this regulation.

Question 42

Q

The following forms are prescribed as stated in this section for use in simplified acquisition procedures, orders under existing contracts or agreements, and orders from required sources of supplies and services:

(a) SF 18 (Rev.6/95), Request for Quotations, or SF 1449 (Rev. Nov 2021), Solicitation/Contract/Order for Commercial Products and Commercial Services.

Answer

A

SF 18 is prescribed for use in obtaining price, cost, delivery, and related information from suppliers as specified in 13.307(b).

SF 1449, as prescribed in 53.212, or other agency forms/automated formats, may also be used to obtain price, cost, delivery, and related information from suppliers as specified in 13.307(b).

Question 43

Q

The following forms are prescribed as stated in this section for use in simplified acquisition procedures, orders under existing contracts or agreements, and orders from required sources of supplies and services:

(b) SF 30 (Rev.11/2016),

Answer

A

Amendment of Solicitation/ Modification of Contract. SF 30, prescribed in 53.243, may be used for modifying purchase orders, as specified in 13.307(c)(3).

Question 44

Q

The following forms are prescribed as stated in this section for use in simplified acquisition procedures, orders under existing contracts or agreements, and orders from required sources of supplies and services:

(c) SF 44 (Rev.10/83),

Answer

A

Purchase Order Invoice Voucher. SF 44 is prescribed for use in simplified acquisition procedures, as specified in 13.306.

Question 45

Q

Purpose of Par 53

Answer

A

Outlines forms required for procurement by government agencies

Contains requirements and information for the forms prescribed in the FAR

Requirements for use of forms prescribed in FAR

Subpart 53.2 - Specific location of each requirement

Question 46

Q

SF 1449

Answer

A

Solicitation/Contract/Order for Commercial Products and Commercial Services

Question 47

Q

SF 26

Answer

A

Award/Contract

Question 48

Q

SF 33

Answer

A

Solicitation, Offer &Award

Question 49

Q

SF 1442

Answer

A

Solicitation, Offer, Award (Construction, Alteration, or Repair)

Question 50

Q

SF 30

Answer

A

Amendment of Solicitation/Modification of Contract

Question 51

Q

Altering and Overprinting

Answer

A

No alteration for standard forms without exception approval

May be overprinted with names, addresses, and other uniform entries; overprinting does not require exception
approval

Contracting officers may request exceptions
to SFs for special construction and printing.

Question 52

Q

Bona fide agency means

Answer

A

an established commercial or selling agency, maintained by a contractor for the purpose of securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts

nor holds itself out as being able to obtain any Government contract or contracts through improper influence.

Question 53

Q

Bona fide employee means

Answer

A

a person, employed by a contractor and subject to the contractor’s supervision and control as to time, place, and manner of performance,

who neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts

nor holds out as being able to obtain any Government contract or contracts through improper influence.

Question 54

Q

(b) The Government should minimize the opportunity for buying-in by seeking a price commitment covering as much of the entire program concerned as is practical by using-

Answer

A

(1) Multiyear contracting, with a requirement in the solicitation that a price be submitted only for the total multi-year quantity; or

(2) Priced options for additional quantities that, together with the firm contract quantity, equal the program requirements (see subpart 17.2).

Question 55

Q

The Kickbacks statute-

Answer

A

(a) Prohibits any person from-
(1) Providing, attempting to provide, or offering to provide any kickback;
(2) Soliciting, accepting, or attempting to accept any kickback; or
(3) Including, directly or indirectly, the amount of any kickback in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime contractor to the United States.

(b) Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in paragraph (a) of this section.

(c) Provides for the recovery of civil penalties by the United States from any person who knowingly engages in such prohibited conduct and from any person whose employee, subcontractor,
or subcontractor employee provides, accepts, or charges a kickback.

Question 56

Q

Among the sources of personal conflicts of interest are-

Answer

A

(i) Financial interests of the covered employee, of close family members, or of other members of the
covered employee’s household;

(ii) Other employment or financial relationships (including seeking or negotiating for prospective employment or business); and

(iii) Gifts, including travel.

Question 57

Q

Contractors Offering o r Giving Gratuities to Federal Employees

If a violation occurs, the government may:

Answer

A

Terminate the contractor’s
right to
proceed;

Initiate debarment or suspension measures, and

Assess exemplary damages, fi the contract uses money appropriated to the Department of Defense.

Question 58

Q

Contracts may be voided or rescinded by the government if an ethical violation has occurred:

Answer

A

There has been a final conviction for bribery,
conflict of interest, disclosure, or selling of bid or proposal information; or

The agency head determines that bid or proposal information has been sold.

Question 59

Q

Aformer official of a federal agency may not accept compensation from a contractor that
has been awarded a contract within a period of 1 year after such former official:
Personally made for the federal agency a
decision to:

Answer

A

Award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order in excess of $10,000,000 to that contractor;

Establish overhead or other rates applicable to a contract or contracts for that contractor that are valued in excess of
$10,000,000;

Approve issuance of a contract payment or payments in
excess of $10,000,000 to that contractor; or

Pay or settle a claim in excess of $10,000,000 with that
contractor. in excess of $10,000,000 awarded to that contractor

Question 60

Q

Contractor Compensation o f FormerFederalOfficials

The 1-year prohibition begins on the date:

Answer

A

Of contract award, or the date of contractor selection if the official w a s not
serving in the position on the date of
award,

The official last served in one of the
positions described, or

The official made one of the decisions
previously described.

It is not prohibited to accept compensation from a division or affiliate that does not produce the same or similar products or services as the contractor that is responsible for the contract.

Question 61

Q

Part 24

Answer

A

Protection of Privacy and Freedom of Information

This part prescribes policies and procedures that apply requirements of the Privacy Act of1974 ( 5 U.S.C.552a) (the Act)

and OMB CircularNo.A- 130, December 12,1985, to Government contracts and cites the Freedom of Information Act ( 5 U.S.C.552, as amended).

Question 62

Q

How Does the Privacy Act Apply to Contractors?

Answer

A

The Privacy Act requires that when an agency contracts for the design,
development, or operation of a system of records on individuals on behalf of the agency to accomplish an agency function the agency must
apply the requirements of the Act to the contractor and its employees working on the contract.

The contracting officer shall ensure that the contract work statement specifically identifies the system of records on individuals and the
design, development, or operation work to be performed; and make available, in accordance with agency procedures, agency rules and
regulation implementing the Privacy Act.

Question 63

Q

The Freedom of Information Act (5 U.S.C. 552, as amended) (FOIA) provides that information is to be made available to the public either by

Answer

A

Publication in the Federal Register;

Providing an opportunity to read and copy records at convenient locations; or

Upon request, providing a copy of a reasonably described record.

The act, among other things, specifies how agencies shall make their records available upon public request, imposes strict time standards for agency responses, and exempts certain records from public disclosure.

Question 64

Q

Contracting officers may receive requests for records that may be exempted from mandatory public disclosure. The exemptions most often applicable are

Answer

A

those relating to classified information,

to trade secrets and

confidential commercial or financial information,

to interagency or intra-agency memoranda, or

to personal and medical information pertaining to an individual

Answer 65

A

Contract Cost Principles and Procedures

This part contains cost principles and procedures for-
(a)Thepricingofcontracts, subcontracts, and modifications to contracts and subcontracts whenever cost analysis is performed (see 15.404-1(c)); and
(b)Thedetermination, negotiation, or allowance of costs when required by a contract clause.

Answer 66

A

(a) The total cost, including standard costs properly adjusted for applicable variances, of a contract is the sum of the direct and indirect costs allocable to the contract, incurred or to be incurred, plus any allocable cost of money pursuant to 31.205-10, less any allocable credits. In ascertaining what constitutes a cost, any generally accepted method of determining or estimating costs that is equitable and is consistently applied may be used.

(b) While the total cost of a contract includes all costs properly allocable to the contract, the allowable costs to the Government are limited to those allocable costs which are allowablepursuanttopart 31andapplicableagencysupplements.

Answer 67

A

Allocable direct costs

Allocable indirect costs

Allocable cost of money

Minus any
applicable credits

Answer 68

A

Federal, state, and local taxes are generally allowable costs

Federal income tax is unallowable

Other exceptions listed at FAR 31.205-41 (b)

Answer 69

A

entertainment
influence
crime or fraud
fines
alcohol
donations
advertising
promotional items
golden parachutes
severance
insurance own defects
fun not doing it

Answer 70

A

Acquisition Planning

Acquisition Plans

Planning for the Purchase of Supplies in Economic Quantities

Contractor Versus Government Performance

Equipment Lease or Purchase

Inherently Governmental Functions

Answer 71

A

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.

Answer 72

A

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.

Answer 73

A

(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.

Answer 74

A

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

Answer 75

A

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

Answer 76

A

(1) Specify needs using market research in a manner designed to-
(i) 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
(ii) Only include restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or as authorized by law.

11.002 (a)(2) To the maximum extent practicable, ensure that acquisition officials-
(i) State requirements with respect to an acquisition of supplies or services in terms of-
* (A) Functions to be performed;
* (B) Performance required; or
* (C) Essential physical characteristics;

Answer 77

A

*
*
(1) Documents mandated for use by law.

(2) Performance-oriented documents (e.g., a PWS or SOO).

(3) Detailed design-oriented documents.

(4) Standards, specifications and related publications issued by the Government outside the Defense or Federal series for the non-repetitive acquisition of items.

Answer 78

A

Urgency of need, industry practices, market conditions, transportation, production time, capabilities of small businesses, administrative time, conditions precedent to contract performance, and government obligations. (FAR 11.402(a))

Answer 79

A

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.

Answer 80

A

Standard Form 30 (SF 30) is used for amendments, change orders, unilateral contract modifications, administrative changes, supplemental agreements, and fund adjustments. (FAR 43.301(a)(1))

The Optional Form 336 (OF 336) or a blank sheet can be used as a continuation sheet for a contract modification. (FAR 43.301(b))

Answer 81

A

unilateral changes in designated areas within the contract scope.

Upon receipt of the change order, the contractor must comply with the change without stopping work.

Negotiation of equitable adjustments may result from change orders.

Answer 82

A

Full and Open Competition

Full and Open Competition After Exclusion of Sources

Other Than Full and Open Competition

Sealed Bidding and Competitive Proposals

Advocates for Competition

Answer 83

A

Reasons to Exclude Sources:
 Increase or maintain competition and reduce costs
 National defense interests
 Essential engineering, research, or development capability
 Reliable source availability
 High demand history
 Critical medical, safety, or emergency supplies

Documentation (FAR 6.202(b)):
o A determination and findings (D&F) is required, signed by the agency head or designee.

Answer 84

A

OnlyOneResponsibleSource(FAR6.302-1)

Unusual and Compelling Urgency (FAR6.302-2)

Industrial Mobilization, Engineering, Developmental, or Research Capability; Expert Services (FAR 6.302-3)

International Agreement(FAR6.302-4)

Authorized or Required by Statute( FAR6.302-5)

National Security(FAR6.302-6)

Public Interest(FAR6.302-7)

Answer 85

A

Promote Commercial Products and Services:
 Promote full and open competition.
 Challenge non-competitive requirements.

Annual Reports:
 Identify opportunities for commercial products and services.
 Report on actions taken to promote competition.
 Recommend goals and plans for increasing competition.

System of Accountability: Recommend personal and organizational accountability for promoting competition.

Answer 86

A

When the contract has been awarded using
the simplified acquisition procedures of Part 13.

When the contract has been awarded using contracting procedures (other than those addressed ni this part) that are expressly authorized by statute.

In contract modifications, including the exercise of priced options that were evaluated as part of the initial
competition, that are within the scope and under the terms of an existing contract.

In orders placed under requirements contracts or definite-quantity contracts.

In orders placed under indefinite-quantity contracts that were entered into pursuant to this part when:
* The contract was awarded under Subpart 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained in the order, or
* The contract was awarded under Subpart 6.3 and the
required justification and approval adequately covers the requirements contained in the order.
In orders placed under indefinite-quantity contracts that were entered into pursuant to this part when:
* The contract was awarded under Subpart 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained in the order, or
* The contract was awarded under Subpart 6.3 and the
required justification and approval adequately covers the requirements contained in the order.

If the order was placed against task order and delivery order contracts entered into pursuant to subpart 16.5

Answer 87

A

To fulfill the statutory requirements relating to small business concerns, contracting officers may set aside solicitations to allow only such business concerns to compete.

To fulfill the statutory requirements relating to section 8(a) of the Small Business Act, contracting officers may limit competition to eligible 8a contractors

To fulfill the statutory requirements relating to the HUBZone Act of 1997, contracting officers in participating agencies may set aside solicitations to allow only qualified HUBZone small business concerns to

To fulfill the statutory requirements relating to the Veterans Benefits Act of 2003, contracting officers may set aside solicitations to allow only service-disabled veteran-owned small businesses to compete.

To fulfill the statutory requirements relating to 15 U.S.C. 637(m), COs may set aside solicitations for only economically disadvantaged women-owned small business or women-owned small business concerns eligible under the WOSB program.

To fulfill the statutory requirements relating to the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, COs may set aside solicitations to allow only offerors residing or doing business primarily in the area affected by a major disaster or emergency to compete.

Answer 88

A

Only one responsiible source

Unusual and compelling urgency

Industrial mobilization

International agreement

Source authorized or required by statute

National security

Public interest

Answer 89

A

Contracts exceeding $750,000 but less than $15 million are approved by the competition advocate.

Refer to the FAR for the thresholds approving authority for contracts exceeding $15 million

Contracts exceeding this amount must be approved by the senior procurement executive of the agency.

The agency shall make publicly available the justifications required by this part.

Answer 90

A

would increase or maintain competition and

likely result in reduced overall costs;

would be in the interest of national defense;

would ensure the continuous availability of a reliable source of supplies or services;

would satisfy projected needs based on a history of high demand;

or satisfy a critical need for medical, safety, or emergency supplies.

Every proposed contract action that falls under this provision must be supported by a D&F signed by the head of the agency or designee and not made on a class basis.

Answer 91

A

when time permits;

award will be made on the basis of price and other price-related factors,

no discussions are required,

and when there is reasonable expectation of receiving more than one bid

Answer 92

A

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

Answer 93

A

that are primarily ministerial and internal in
nature, such as

security, mail, cafeteria operations, housekeeping and maintenance, or other routine services.

Answer 94

A

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

Answer 95

A

Acquisition of commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable (10 U.S.C. 2377 and 41 U.S.C.
3307.
Full and open competition (see part 6) or, when full and open competition is not required in accordance with part 6, to obtain competition to the maximum extent practicable, with due regard to the nature of the supplies or services to be acquired (10 U.S.C. 2305(a)(1)(A) and 41 U.S.C.
3306(a)(1));
Selection of appropriate contract type in accordance with part 16; and
Appropriate consideration of the use of preexisting contracts, including interagency andintra-agency contracts, to fulfill the requirement, before awarding new contracts.

Answer 96

A

Statement of need: A brief description of the requirement.
Applicable conditions: Discuss any external constraints, in addition to requirements for computability with existing systems.
Cost: This should address cost goals for the acquisition and may include the following types of analysis: life-cycle cost, design-to-cost, or should-cost.
Capability or performance: This should address the required capabilities or performance characteristics and how they relate to the Statement of Need.
Delivery or performance-period
requirements: This should discuss delivery requirements, including the rationale forany urgency that may result in a noncompetitive acquisition.
Trade-offs: Discuss any potential cost, capability performance, and schedule goal trade-offs.
Risks: Discuss any cost, technical, and schedule risks, along with planned efforts to reduce those risks.
Acquisition streamlining: Discuss the use of presolicitation industry outreach efforts and tailoring of requirements vcxz

Answer 97

A

Sources: Discuss potential sources for the need, including consideration of mandatory sources of supply, small business concerns, and interagency contracting vehicles.
Competition: Describe how competition will be sought, promoted, and sustained throughout the course of the acquisition or, if the acquisition will be noncompetitive, discuss which authority from FAR 6.302 applies and why.
Contract type selection: Explain the selection of contract type, including any additional documentation required for use of other than a firm-fixed-price contract.
Source-selection procedures: Discuss the source-selection procedures for the acquisition, including the timing for submission and evaluation of proposals, and the relationship of evaluation factors to the attainment of the acquisition objectives.
Acquisition considerations:
For each contract contemplated, discuss use of multiyear contracting, options, or other special contracting methods (see part 17);any special clauses, special solicitation provisions, or FAR deviations required (see subpart 1.4); whether sealed bidding or negotiation will be used and why; whether equipment will be acquired by lease or purchase (see subpart 7.4) and why; and any other contracting considerations.
Provide rationale if a performance-based acquisition will not be used or if a performance-based acquisition for services is contemplated on other than a firm-fixed-price basis.
Budgeting and funding: Include budget estimates, explain how they were derived, and discuss the schedule for obtaining adequate funds at the time they are required (see subpart 32.7).
Product or service descriptions: Explain the choice of product or service description types (including performance-based acquisition descriptions) to be used in the acquisition.
Priorities, allocations, and allotments:
When urgency of the requirement dictates a particularly short delivery or performance schedule, certain priorities may apply. If so, specify the method for obtaining and using priorities, allocations, and allotments, and the reasons for them (see subpart 11.6).
Contractor versus government performance:
Address the consideration given to OMB
Circular No. A-76 (see subpart 7.3).
Inherently
governmental functions:
Address the consideration given to subpart 7.5.
Management information requirements:
Discuss, as appropriate, what management system will be used by the government to monitor the contractor’s effort. If an Earned Value Management System (EVMS) is to be used, discuss the methodology the government will employ to analyze and use the earnedvalue data to assess and monitor contract performance. In addition, discuss how the offeror’s/contractor’s EVMS will be verified for compliance with the American National Standards Institute/ Electronics Industries Alliance (ANSI/EIA) Standard-748, “Earned Value Management Systems,” and the timing and conduct of integrated baseline reviews (whether prior to or post-award). (See 34.202.)
Make or buy: Discuss any consideration given to make-or-buy programs (see subpart 15.407-2).
Test and evaluation: To the extent applicable, describe the test program of the contractor and the government.
Describe the test program for each major phase of a major system acquisition.
If concurrency is planned, discuss the extent of testing to be accomplished before production release.
Logistics
considerations: Logistics
consideration should discuss
the
assumptions made in determining contractor or agency support, both initially and over the life of the acquisition (see subpart 7.3); the reliability, maintainability, and quality assurance requirements, including any planned use of warranties (see part 46); the requirements for contractor data (including repurchase data) and data rights, their estimated cost, and the use to be made of the data (see part 27); and standardization concepts, including the necessity to designate, in accordance with agency procedures, technical equipment as “standard” so that future purchases of the equipment can be made from the same manufacturing source.
Government-furnished
property:
Indicate any government property to be furnished to contractors, and discuss
any associated considerations, such as its availability or the schedule for its acquisition (see 45.102).
Government-furnished information:
Discuss any government information (such as manuals, drawings, and test data) to be provided to prospective offerors and contractors.
Indicate which information that requires additional controls to monitor access and distribution (e.g., technical specifications, maps, building designs, schedules, etc.), as determined by the agency, is to be posted via the enhanced controls of the GPE, refer to FAR 7.105(b)(16) for the current website. (see
5.102(a)).
Environmental and energy conservation objectives:
Discuss all applicable
environmental and energy conservation objectives
associated with the
acquisition (see
part 23),
the
applicability of an environmental assessment or environmental impact statement (see 40 CFR 1502), the proposed resolution of environmental issues, and any environmentally related requirements to be included in solicitations and contracts (see 11.002 and 11.303).
Security considerations: For acquisitions dealing with classified matters, discuss how adequate security will be established, maintained, and monitored (see subpart 4.4). For information technology acquisitions, discuss how agency information security requirements will be met.
For acquisitions requiring routine contractor physical access to a federally controlled facility and/or access to a federally controlled information system, discuss how agency requirements for personal identity verification of contractors will be met (see subpart
4.13). For acquisitions that may require federal contract information to reside in or transit through contractor information systems, discuss how that information will be safeguarded (see subpart 4.19).
Contract administration: Describe how the contract will be administered.
In contracts for services, include how inspection and acceptance corresponding to the work statement’s performance criteria will be enforced.
Other considerations.
Discuss,
as
applicable:
i. Standardization concept;
ii. The industrial readiness program;
iii. The Defense Production Act;
iv. The Occupational Safety and Health
Act;
v. Support Antiterrorism by Fostering Effective Technologies Act of 2002 (SAFETY Act) (see subpart 50.2);
vi. Foreign sales implications;
vii. Special requirements for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission; and
vili. Any other matters germane to the
plan not covered elsewhere.
Milestones for the acquisition cycle:
Address the major milestones outlined from approval of the acquisition plan through contract award. Add any additional steps as appropriate.
Identification of
participants in
acquisition
plan
preparation: List
the individuals who participated in preparing the acquisition plan, giving contact information for each.

Answer 98

A

length of use, financial and operating advantages, cumulative rent, net purchase price, transportation, maintenance and repair,

and the potential for the equipment to become obsolete due to technological improvement.

The subpart also outlines additional factors that agencies must consider depending on the details of the equipment and planned usage, including availability, flexibilities around cancelling, extending, or swapping, warranties, requirements, and long-term utility considerations such as potential for future use by other agencies, trade-in or salvage, value and imputed interest.

Answer 99

A

pending price adjustments to Federal Supply Schedule (FSS) contracts, recent or imminent technological developments, new techniques, and industry or market trends.

Answer 100

A

*
*
(1) Documents mandated for use by law.

(2) Performance-oriented documents (e.g., a PWS or SOO).

(3) Detailed design-oriented documents.

(4) Standards, specifications and related publications issued by the Government outside the Defense or Federal series for the non-repetitive acquisition of items.

Answer 101

A

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

Answer 102

A

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.

Answer 103

A

Preparation of invitations for bids.

Publicizing the invitation.

Submission of bids.

Evaluation of bids without discussions.

Contract award to the lowest responsive and responsible bidder.

Answer 104

A

Responsiveness of Bids (FAR 14.301)
o Bids must comply in all material respects with the invitation for bids.
o Non-compliance results in rejection.

Submission Guidelines (FAR 14.302)
o Bids must be submitted by the exact time specified. o Various transmission methods allowed if specified.

Modifications and Withdrawals
Modification and Withdrawal Conditions (FAR 14.303)
o Bids can be modified or withdrawn before the opening time.
o Specific protocols for handling facsimile and electronic bids (FAR 14.304).

Late Bids (FAR 14.304)
o Generally not considered unless specific criteria are met.

Answer 105

A

Section A Solicitation/contract form

Section B Supplies or services and prices/costs

Section C Description / specifications / statement of work

Section D Packaging and marking

Section E Inspection and acceptance

Section F Deliveries or performance

Section G Contract administration data

Section H Special contract requirements

Answer 106

A

Standard Form 1447, Solicitation/Contract * Contract schedule

Clauses

List of documents and attachments

Representations and instructions

Answer 107

A

Identify legitimate needs and evaluate trade-offs to acquire items that meet those needs (FAR
10.001(a)(1)).

2.Conduct market research appropriate to the circumstances before developing newr equirements, soliciting offers, and awarding task or delivery orders under ID/IQ contracts (FAR 10.001(a)(2)).

3.Use commercially available market research methods to identify the capabilities of small businesses and new entrants (FAR 10.001(a)(2)(vi)).

Answer 108

A

Commercial products/services (FAR 10.002(b)(1)(i)(A)).

Modified commercial products/services (FAR 10.002(b)(1)(i)(B)).

Products/services used exclusively for governmental purposes (FAR 10.002(b)(1)(i)(C)).

Answer 109

A

Consulting knowledgeable individuals (FAR 10.002(b)(2)(i)).

Reviewing recent market research (FAR 10.002(b)(2)(ii)).

Publishing formal requests for information (FAR 10.002(b)(2)(iii)).

Querying Government and commercial databases (FAR 10.002(b)(2)(iv)). o Participating in online communication (FAR 10.002(b)(2)(v)).

Reviewing catalogs and product literature (FAR 10.002(b)(2)(vii)).

Holding presolicitation conferences (FAR 10.002(b)(2)(viii)).

Reevaluate needs if commercial products/services are not available (FAR 10.002(c)).

Use part 12 policies if needs can be met by commercial products/services (FAR 10.002(d)(1)).

Document market research results appropriately (FAR 10.002(e)).

Answer 110

A

Developing new requirements documents for an acquisition by that agency;

Soliciting offers for acquisitions with an estimated value ni excess of the SAT

Soliciting offers for acquisitions with an estimated value less than SAT when adequate information is not available and the circumstances justify its cost

Soliciting offers that could lead to consolidation or bundling

Awarding a task or delivery order under an IDIQ contract for other than a commercial product or commercial service ni excess of the SAT

On an ongoing basis, take advantage of commercialy available market research methods in order to effectively identify the capabilities of small businesses and new entrants into Federal contracting

Answer 111

A

Contacting knowledgeable individuals in government and industry regarding market capabilities to meet requirements;

Reviewing the results of recent market research undertaken to meet similar or identical requirements;
Publishing formal requests for information in appropriate technical, scientific, or business publications;

Querying government databases that provide information relevant to agency acquisitions;
“Communicating online with industry, acquisition personnel, and customers;

Obtaining source lists of similar items from other contracting activities or agencies;

Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers, or available online; and

Conducting interchange meetings or holding presolicitation conferences.

Answer 112

A

If commercial items or nondevelopmental items can meet the agency’s requirements, could be modified to meet the agency’s requirements, or could meet the agency’s requirements if such requirements were modified to a reasonable extent; and
The extent to which commercial or nondevelopmental items could be incorporated at the component level.

Answer 113

A

Encourages exchanges of information from the earliest identification of a requirement through receipt of proposals (FAR 15.201(a)).

Purpose is to improve understanding of government requirements and industry capabilities to enhance quality and efficiency in procurement (FAR 15.201(b)).

Techniques include industry conferences, market research, and presolicitation notices (FAR 15.201(c)).

Answer 114

A

The expected outcome of an acquisition that, in the government’s estimation, provides the greatest overall benefit in response to the requirement

Lowest price
technically acceptable

Best Value Continuum

Tradeoff analysis

Answer 115

A

A
Solicitation/contract form
Title

B
Supplies or services and prices/costs

C Description/specifications/statement of work

D
Packaging and marking

E
Inspection and acceptance

F
Deliveries or performance

G
Contract administration data

H
Special contract requirements

Answer 116

A

I
Contract Clauses

Answer 117

A

J
List of attachments

Answer 118

A

K
Representations, certifications, and other statements of offerors or respondents

L
Instructions, conditions, and notices to offerors or respondents

M
Evaluation factors for award

Answer 119

A

Issuing agency’s name and address

Solicitation number

Date of issuance

Closing date and time

Number of pages

Purchase authority

Brief description of item
or service

Requirement for offeror to provide information

Offer expiration date

Answer 120

A

Includes a brief description of the supplies or services: * Item number
* National stock number/part number fi applicable * Nouns
* Nomenclature
* Quantities

This includes incidental deliverables such as
manuals and reports

Answer 121

A

Requirements are described in FAR Part 46, Quality Assurance

Answer 122

A

Requirements are described in FAR 11.4, Delivery or Performance Schedules

Answer 123

A

Section A
Title Solicitation/contract form

Section B
Title Supplies or services and prices/costs

Section C
Title Description/specifications/statement of work

Section D
Title Packaging and marking

Section E
Title Inspection and acceptance

Section F
Title Deliveries or performance

Section G
Title Contract administration data

Section H
Title Special contract requirements

Answer 124

A

Section I
Title Contract clauses

Part III: List of documents, exhibits, and other attachments
Section J
Title Contract clauses

Answer 125

A

Upon award, contracting officers shall not physically include Part IV in the resulting contract, but shall retain it in the contract file.

Answer 126

A

Section K
Title Representations, certifications, and other statements of offerors or respondents

Section L
Title Instructions, conditions, and notices to offerors or respondents

Includes solicitation provisions and other information and instructions not required elsewhere for preparing responses to RFPs or RFIs

May contain specific format instructions for proposals or information

May specify further organization of parts, such as:
* Administrative
* Management * Technical
* Past performance
* Certified cost or pricing data or data other than cost or pricing data

Answer 127

A

41 U.S. Code Chapter 35

Formerly the Truth in Negotiations Act (TINA)

Requires offers to submit certified cost or pricing data if a procurement exceeds a certain threshold and none of the exceptions to certified cost or pricing data requirements applies

Answer 128

A

Price analysis

Cost analysis

Cost realism analysis

Technical analysis

Answer 129

A

$15 million or more; or

More than the pertinent certified cost or pricing data threshold and more than 10% of the prime’s proposed price

Answer 130

A

provide a discipline for ensuring that all relevant factors are considered.

Agencies making noncompetitive contract awards over $100,000 totaling $50 million per year shall use a structured approach.

Agencies may use another agency’s
structured approach.

Answer 131

A

the fee shall not exceed 15 percent of the contract’s estimated cost, excluding fee.

Answer 132

A

exceed 6 percent of the estimated cost of construction of the
public work or utility, excluding fees

Answer 133

A

the fee shall not exceed 10 percent of the contract’s estimated cost, excluding fe.

Answer 134

A

The agency’s evaluation of significant elements in the offeror’s proposal,

A summary of the rationale for eliminating the offeror from the
competition, and

Reasonable responses to relevant questions about whether
source selection procedures contained in the solicitation,
applicable regulations, and other applicable authorities were followed in the process of eliminating the offeror from competition.

Answer 135

A

The number of offerors,

The identity of the offerors,

The content of other offeror’s proposals,

The ranking of the offerors,

The evaluation of other offerors,

Point-by-point comparisons of the proposal with those of other offerors,

Trade secrets, or privileged or confidential manufacturing processes,

Commercial or financial information that is privileged or confidential, or

The names of the individuals providing reference information about an offeror’s past performance.

Answer 136

A

The government’s evaluation of the significant weaknesses or deficiencies in
the offeror’s proposal, fi applicable,

The overall evaluated cost or price and technical rating, fi applicable, of * The successful offeror and
* This offeror, and
* Past performance information on this offeror,

For commercial items, the make and model of the item to be delivered,

The overall ranking of all offerors, when any ranking was developed by the agency during the source selection,

A summary of the rationale for award, and

Reasonable responses to relevant questions about whether source selection procedures in the solicitation, applicable regulations, and other applicable authorities were followed

Answer 137

A

Point-by-point comparisons of the proposal with those of other offerors,

Trade secrets, or privileged or confidential manufacturing processes,

Commercial or financial information that is privileged or
confidential (including cost breakdowns, profit, indirect cost rates, or similar information), or

The names of the individuals providing reference information about an offeror’s
past performance.

Answer 138

A

when the government does not presently intend to award a contract,

but wants to obtain price, delivery, other market information, or capabilities for planning purposes.

Responses to these notices are not offers and cannot be accepted by the government to form a binding contract.

There is no required format for RFI’s

Answer 139

A

when prices are based on adequate price competition,

when prices are set by law or regulation,

or for items that meet the commercial item definition in 2.101.

In these instances, the contracting officer shall not require submission of cost or pricing data to support any action (contracts, subcontracts, or modifications), but may require information other than cost or pricing data to support a determination of price reasonableness or cost realism.

Answer 140

A

The HCA may consider waiving the requirement if the price can be determined to be fair and reasonable without submission of certified cost or pricing data.

Consequently, award of any lower-tier subcontract expected to exceed the certified cost or pricing data threshold requires the submission of cost or pricing data unless an exception otherwise applies,

or the wavier specifically includes that subcontract and the rationale supporting the waiver for that subcontract.

Answer 141

A

The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price.

This does not relieve the contracting officer from the responsibility to analyze the contractor’s submission, including the subcontractor’s cost or pricing data.

The prime contractor or subcontractor shall conduct appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices and, if required, submit subcontractor certified cost or pricing data to the government as part of its own certified cost or pricing data.

Any contractor or subcontractor that is required to submit certified cost or pricing data also shall obtain and analyze certified cost or pricing data

Answer 142

A

For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract’s estimated cost, excluding fee.

For architect-engineer services for public works or utilities, the contract price or the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications shall not exceed 6 percent of the estimated cost of construction of the public work or utility, excluding fees.

For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the contract’s estimated cost, excluding fee.

Answer 143

A

The number of offerors solicited;
The number of proposals received;
The name and address of each offeror receiving an award;
The items, quantities, and any stated unit prices of each award, or if impractical, the total contract price. However, the items, quantities, and any stated unit prices of each award shall be made publicly available upon request; and
In general terms, the reason(s) the offeror’s proposal was not accepted, unless the price information readily reveals the reason.

In no event shall an offeror’s cost breakdown,profit, overhead rates, trade secrets, manufacturing processes and techniques, or other confidential business information be disclosed to any other offeror.

The contracting officer shall award a contract to the successful offeror by furnishing the executed contract or other notice of the award to that offeror.

Debriefings may be done verbally, in writing, or by any other method acceptable to the contracting officer.

Answer 144

A

An offeror may request a pre-award debriefing by submitting a written request for debriefing to the contracting officer within three days after receipt of a notice of exclusion from the competition.
Debriefings must include the agency’s evaluation of significant elements in the offeror’s proposal; a summary of the rationale for eliminating the offeror from the competition; and reasonable responses to relevant questions about whethersource selection procedures contained in the solicitation, applicable regulations, and other applicable authorities were followed in the process of eliminating the offeror from the competition.
Debriefings shall not disclose the number of offerors; the identity of other offerors; the content of other offerors’ proposals; the ranking of other offerors; the evaluation of other offerors; point-by-point comparisons of this offeror’s proposal with those of other offerors; trade secrets; privileged or confidential manufacturing processes and techniques; commercial or financial information that is privileged or confidential, including cost breakdowns, profit, indirect cost rates, and similar information; and the names of individuals providing reference information about an offeror’s past performance.

Answer 145

A

An offeror may request a post-award debriefing by submitting a written request for debriefing to the contracting officer within three days after receipt of a notice of contract award. To the maximum extent practicable, the debriefing should occur within five days after receipt of the written request.
Debriefing
must include the government’s
evaluation of the significant weaknesses or deficiencies in the offeror’s proposal, if applicable; the overall evaluated cost or price and technical rating, if applicable, of the successful offeror and this offeror, and past performance information on this offeror; the overall ranking of all offerors, when any ranking was developed by the agency during the source selection; a summary of the rationale for award; for commercial items, the make and model of the item to be delivered by the successful offeror; and reasonable responses to relevant questions about whether source selection procedures containedin the solicitation, applicable regulations, and other applicable authorities were followed.
Debriefings shall not include point-by-point comparisons of this offeror’s proposal with those of other offerors; trade secrets; privileged or confidential manufacturing processes and techniques; commercial or financial information that is privileged or confidential, including cost breakdowns, profit, indirect cost rates, and similar information; and the names of individuals providing reference information about an offeror’s past performance.

Answer 146

A

Acceptance: The Government’s assumption of ownership of supplies or approval of services (FAR 46.101).

Conditional Acceptance: Acceptance of non-conforming supplies/services requiring correction (FAR 46.101).

Contract Quality Requirements: Technical requirements and clauses related to quality assurance (FAR 46.101).

Counterfeit Item: Unauthorized reproduction misrepresented as authentic (FAR 46.101).

Critical and Major Nonconformance: Definitions related to the severity of noncompliance and its potential
impact (FAR 46.101).

Answer 147

A

Commercial Products and Services: Rely on contractors’ existing quality systems, substituting
Government inspection unless market practices dictate otherwise (FAR 46.202-1).

Government Reliance on Contractor Inspection: Standard for acquisitions at or below the simplified acquisition threshold, unless specific Government testing is required (FAR 46.202-2).

Standard Inspection Requirements: Contractors must maintain an acceptable inspection system, with Government rights to in-process inspections (FAR 46.202-3).

Answer 148

A

Technical Description: Items classified either as commercial or military-federal based on
descriptions and standards (FAR 46.203).

Complexity: Differentiates between complex items requiring detailed control and noncomplex items where simple tests are sufficient (FAR 46.203).

Criticality: Distinguishes between critical applications (where failure could cause severe consequences) and noncritical applications (FAR 46.203).

Answer 149

A

Quality assurance depends on the criticality and potential losses. Inspection is generally at the
destination and limited to basic checks unless special situations dictate otherwise (FAR 46.404).

Answer 150

A

A certificate of conformance may be used instead of source inspection if it serves the Government’s interest, considering the contractor’s reliability and the minor impact of potential defects (FAR 46.504).

Answer 151

A

Develop QA procedures

Verify compliance of supplies or services

Implement any instructions

Report defects

Recommend any
needed changes

Answer 152

A

Commercial items: Government shall rely on contractors existing quality assurance systems

At or below the SAT: Government shall rely on the contractor to accomplish all inspection and testing

Above the SAT: Standard inspection requirements

Complex or critical item: Higher-level contract quality requirements or product/process specific quality standards

Answer 153

A

Technical description
* The classification of a contract item as either commercial or
military-federal

Complexity
* Contract items having characteristics which must be
measured, tested, or controlled precisely

Criticality
* Failure of contract items could injure personnel or jeopardize a vital mission

Answer 154

A

Latent defect
* Adefect which existed at the time of acceptance and could not have been discovered by a reasonable inspection

Patent defect
* Any defect which existed at the time of acceptance and is not a latent defect

Answer 155

A

Efficiency and Economy: Ensure contractor instructions result in efficient and economical use of transportation services and equipment.

Assistance: Transportation personnel provide management expertise to CAO.

Regulations: Detailed responsibilities in Federal Management Regulation (41 CFR parts 102-117 and 102-118) and DoD 4500.9-R (Defense Transportation Regulation) (FAR 47.101(b)).

Answer 156

A

Commercial Carriers: Preferred method for transporting supplies.

Government-Owned Vehicles: Used if:
1. Available and not fully utilized.
2. Results in substantial economies.
3. Complies with statutes, policies, and regulations (FAR 47.101(d)).

Answer 157

A

Execution: Agencies can contract for transportation services and execute BOAs unless agency
regulations state otherwise.

Economical and Efficient: Generally more efficient to use term contracts and BOAs executed by experienced agencies like DoD and GSA (FAR 47.205).

Answer 158

A

A transportation document, used as a receipt of goods, as documentary evidence of title, for clearing customs, and generally used as a contract of carriage

A government bil of lading (GBL) is an accountable transportation document, authorized and prepared by a government official.

A commercial bill of lading (CBL) si not an accountable transportation document.

Answer 159

A

Determining Sharing Period (FAR 48.104-1):
o Sharing period starts with the first unit incorporating the VECP and lasts 36-60 months or until the last scheduled delivery date.

Sharing Acquisition Savings (FAR 48.104-2):
o Different sharing rates based on contract type and VE clause used.
o Contractor entitled to a percentage of net acquisition savings.

Sharing Collateral Savings (FAR 48.104-3):
o Government shares collateral savings with contractors.
o Contractor’s share ranges from 20-100% of estimated annual savings, not exceeding the contract’s firm-fixed-price or $100,000

Answer 160

A

Establish guidelines for processing VECP’s,

Process VECP’s objectively and expeditiously

Provide contractors a fair share of the savings on acceptedVECP’s

45 days to process, evaluate, and accept or reject the VECP

Answer 161

A

extent of the change.
complexity of the change.
development risk (contractor’s financial risk).
development cost.
performance and/or reliability impact.
production period remaining at the time of VECP acceptance.
number of units affected.

Value engineering incentive payments do not constitute profit or fee within the limitations imposed by law. (FAR
48.102 (e)).

Answer 162

A

Increase competition (FAR 5.002(a)).

Broaden industry participation (FAR 5.002(b)).

Assist small businesses in obtaining contracts (FAR 5.002(c)).

Answer 163

A

Role of GPE: Central platform for publishing notices of contract actions (FAR 5.003).

Benefits:
* Centralized access to contracting information (FAR 5.101(a)).
* Enhances transparency and accessibility (FAR 5.102).

Requirement: All notices must be transmitted to the GPE to ensure consistent and broad dissemination of information (FAR 5.003).

Answer 164

A

Purpose: Requires publicizing contract awards to ensure transparency (FAR 5.301).

Criteria for Synopses:
* Awards exceeding $25,000 (FAR 5.301(a)(1)).
* Task or delivery orders exceeding the simplified acquisition threshold (FAR 5.301(a)(2)).

Transparency Impact: Ensures the public is informed about the use of federal funds and the awarding of contracts.

Answer 165

A

Steps:
* Include essential details such as contract value, awardee, and contract performance
location (FAR 5.302).
* Use GPE for dissemination (FAR 5.207).

PublicAnnouncement:
* For awards over $4.5 million, information must be made available by 5 p.m. on the
award date (FAR 5.303(a)).

Goal: Maintain a transparent and open federal procurement process.

Answer 166

A

GeneralPublicRequests:
* Process in accordance with FOIA and Privacy Act (FAR 5.402).

Congressional Requests:
* Provide detailed contract information unless classified or confidential (FAR 5.403).

Long-Range Acquisition Estimates:
* Publicize estimates to assist industry planning and locate additional sources (FAR 5.404-1).

Public Disclosure of Justification Documents:
*FAR5.406mandatesthepublicdisclosureofjustificationdocumentsforspecificcontract
actions. This includes:
* Justifications for other than full and open competition.
* Limited-source justifications for Federal Supply Schedule orders.
* Justifications for task or delivery orders awarded without providing fair opportunity.

Answer 167

A

Requirement: Publicize awards exceeding $500,000 (FAR 5.705(a)).

Rationale: Include justification for non-fixed-price or non-competitive
awards (FAR 5.705(b)).

Goal: Enhance transparency and accountability for Recovery Act-funded projects.

Answer 168

A

For proposed contract actions expected to exceed $25,000, by synopsizing in the GPE

For 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, an unclassified notice of the solicitation or a copy of the solicitation

Answer 169

A

https://sam.gov

SAM.GOV is the single government point of entry (GPE) for federal government procurement opportunities over $25,000.

Government buyers are able to publicize their business opportunities by posting information directly to SAM.GOV via the internet.

Through one portal, SAM.GOV commercial vendors seeking federal markets for their products and services can search, monitor, and retrieve opportunities solicited by the entire federal contracting community.

Answer 170

A

A notice of proposed contract action, when required, must be published at least 15 days before issuance of a solicitation.

For acquisitions of commercial items, the contracting officer
may establish a shorter period for issuance of the solicitation, or use the combined synopsis and solicitation procedure.

Contracting officers should consider the circumstances of the
individual acquisition, such as the complexity, commerciality, availability, and urgency when establishing solicitation response times for either contract actions estimated to be
greater than $25,000, but less than the Simplified Acquisition Threshold, or contract actions for the acquisition of
commercial items in an amount estimated to be greater than $25,000.

Except for the acquisition of commercial items, agencies shall
alow at least a 30-day response time for receipt of bids or proposals from the date of issuance of a solicitation, if the proposed contract action is expected to exceed the Simplified
Acquisition Threshold.

All publicizing and response times are calculated on the date
of publication, which is the date the notice appears on the GPE.

Contracting officers may, unless they have evidence to the
contrary, presume the notice was published one day after transmission to the GPE.

Answer 171

A

The business opportunity

Any prequalification requirements

Where to obtain technical data needed to respond to the requirement

Answer 172

A

through the GPE, awards exceeding $25,000 that are covered by the World Trade Organization Government Procurement Agreement
or a Free Trade Agreement, or likely to result in the award of any subcontracts.

The dollar threshold is not a prohibition against publicizing an award of a smaller amount when publicizing would be advantageous toward industry or to the government.

Justifications for other than full and open competition must be
posted. Contracting officers shall release to the public and make information available on awards over $4 million.

Answer 173

A

Interagency Contract Directory

https://www.contractdirectory.gov

A searchable database used to identify existing contracts and
other procurement instruments intended for use by multiple agencies (GWACs, GSA, VA schedules)

Answer 174

A

FederalProcurementDataSystem

https://www.fpds.gov/

Provides data on procurement activities of federal agencies, and contains reporting tools for searching through that
information

Answer 175

A

Definition and Purpose: A protest is a written objection to a solicitation or award, ensuring fairness and transparency (FAR 33.101).

Eligibility: Defines who can file a protest and the grounds for doing so (FAR33.102).

Procedures for Handling Protests

Filing Process: Detailed steps for filing a protest, including timelines and required information (FAR 33.103).
* Protests must be filed within specified time frames (e.g., before bid opening or within 10 days of award) (FAR 33.103).
* Must include details such as the solicitation number, detailed grounds for the protest, and supporting evidence (FAR 33.103).

Impact of Protests: Potential suspension of contract actions during protest resolution (FAR 33.104).
* Contracting officers may withhold the award or suspend performance of an awarded contract pending resolution (FAR 33.104).
* Ensures that procurement actions do not proceed until fairness is ensured (FAR 33.104)

Answer 176

A

Purpose: Establishes procedures for resolving contract disputes and
appeals to maintain transparency (FAR 33.200).

Authority: Defines the contracting officer’s role and authority in resolving disputes (FAR 33.210).
* Contracting officers have the authority to decide claims and must issue written decisions (FAR 33.210).
* Decisions must be based on the facts and include a detailed explanation (FAR 33.210).
* Written Decisions: Contracting officers must provide written decisions on claims, ensuring transparency (FAR 33.211).

Written decisions should include findings of fact, conclusions, and the rationale for the decision (FAR 33.211).
* Claimants must be informed of their right to appeal (FAR 33.211).

Appeals Process: Defines the process for appealing decisions to
boards, ensuring fairness and transparency (FAR 33.212).
* Contractors may appeal to boards such as the Armed Services Board of Contract Appeals (FAR 33.212).
* The appeals process includes deadlines, submission requirements, and hearing procedures (FAR 33.212).

Answer 177

A

A solicitation or other request by an agency for offers,

Cancellation of a solicitation or other request,

An award or proposed award of a contract, or

A termination or cancellation of an award of a contract a s long a s the written objection contains an allegation that the termination or cancellation is based in whole or in part on improprieties concerning the award of the contract

A protest may be filed with either the agency or the Government Accountability Office (GAO).

Answer 178

A

Within one work day of filing a protest with GAO, a copy must be provided to the contracting officer.

The CO must immediately give notice of the protest to the contractor fi
the award has been made, or if no award has been made, to all parties who appear to have a reasonable prospect of receiving award fi the
protest is denied.

Within 30 days (20 if express option is used) after notification, the contracting officer must submit a complete report to the
GAO, with a copy to the protester and any other interested parties.

The protester and other interested parties are required to furnish a copy of any comments on the agency report directly to the GAO within 10 days (5 fi express option is used) after receipt, with copies to the contracting officer and to other participating interested parties.

Answer 179

A

100 days after the final
ruling is rendered, if they would otherwise have
expired.

Answer 180

A

If notified within 10 days or award

If notified within 5 days of debriefing

Contract performance must be immediately suspended or the contract terminated

Answer 181

A

That the claim is made ni good faith

That supporting data are accurate and complete to the best of the contractor’s knowledge and belief

That the amount requested accurately reflects the contract
adjustment for which the contractor believes the government is liable

Answer 182

A

Any procedure or combination of procedures voluntarily used to resolve issues in controversy

Answer 183

A

Conciliation,

Facilitation,

Mediation,

Fact finding,

Mini-trials,

Arbitration, and/or

Use
of ombudsmen.

Answer 184

A

The contracting officer shall issue the decision within:

For claims over $100,000
60 days after receipt of certification, provided that fi a decision wil not be issued within 60 days, the contracting officer notifies the contractor, within 60 days, of the time within which a decision wil be issued.

Answer 185

A

Establishes priorities for acquiring supplies and services to reduce
costs (FAR 8.000).

KeySections:
* 8.1: Excess Personal Property (FAR 8.101).
* 8.4: Federal Supply Schedules (FAR 8.402).
* 8.5: Acquisition of Helium (FAR 8.501).
* 8.6: Acquisition from Federal Prison Industries (FAR 8.602).
* 8.7: Acquisition from Nonprofit Agencies (FAR 8.703).
* 8.8: Acquisition of Printing and Related Supplies (FAR 8.802).
* 8.11: Leasing of Motor Vehicles (FAR 8.1100).

Answer 186

A

Encourage agencies to use excess personal property first (FAR
8.102).

Benefits: Reduces costs by utilizing existing resources, minimizes new purchases (FAR 8.103).

Answer 187

A

Agency inventories

Excess from other agencies

Federal Prison Industries, Inc.

Supplies which are on the Procurement List maintained by the Committee for Purchase from People Who Are Blind or Severely Disabled

Wholesale supply sources, such as stock programs of the GSA, the Defense Logistics Agency, the Department of Veterans Affairs, and military inventory control points

Small business concerns

Optional use Federal Supply Schedules

Commercial sources (including educational and nonprofit institutions)

Answer 188

A

Services which are on the Procurement List maintained by the Committee for Purchase from People Who Are Blind or Severely Disabled

Mandatory Federal Supply Schedules

Optional use Federal Supply Schedules

Federal Prison Industries, Inc.

Commercial sources (including educational and nonprofit institutions)

Answer 189

A

Property under control of an agency or activity that the agency or activity has declared is excess to its needs

Catalogs and bulletins of available excess personal property are available through the General Services Administration.

Procuring agencies may also obtain personal property through the agency or activity which has the property under its control.

Answer 190

A

a simplified process for obtaining commercial supplies and services at prices associated with volume buying.

Also known as the GSA Schedules Program or the Multiple Award Schedule Program.

Indefinite delivery contracts are awarded to provide supplies and services at stated prices for given periods of time.

Department of Defense (DoD) manages similar systems of schedule-
type contracting for military items. GSA has delegated authority to the VA to procure medical supplies under the VA Federal Supply Schedules program.

Answer 191

A

is an online shipping service through which ordering agencies may place orders against Federal Supply Schedules

http://www.gsaadvantage.gov/

Answer 192

A

allows ordering activities to post requirements, obtain quotes, and issue orders electronically.

Answer 193

A

A method for the government to fil purchase requirements for related supplies, material, equipment, or services by establishing accounts with established sources of supply

Includes certain conditions and provisions that have been negotiated and agreed to in advance

Allows the government to make frequent purchases or calls, verbally or in writing, and receive one monthly bill for all supplies or services purchased

Answer 194

A

more than 5 years

Answer 195

A

the prices of supplies and services under Schedule contracts to be fair and reasonable.

By placing an order against a Schedule contract using these
procedures, the ordering activity has concluded that the order represents the best value and results in the lowest overall cost
alternative to meet the government’s needs.

Answer 196

A

self-supporting, wholly owned government corporation of the District of Columbia.

FPI provides training and
employment for prisoners confined in federal penal and correctional institutions through the sale of its supplies and services to government agencies.

FPI diversifies its supplies and services to prevent private industry from experiencing unfair competition from prison workshops or activities.

Supplies manufactured and services performed by FPI are listed in the FPI Schedule.

UNICOR
http://www.unicor.gov

Answer 197

A

conduct market research to determine whether the FPl item is comparable to
supplies available from the private sector that best meet the government’s needs in terms of price, quality, and time of delivery.

If the FPI item is comparable, purchase the item from FPI following the UNICOR ordering procedures.

If the FPl item is not comparable in one or more of the areas of price,
quality, and time of delivery, acquire the item using competitive procedures, set-aside procedures, or FSS.

Answer 198

A

the Committee for Purchase from People Who Are Blind or Severely Disabled. The National Industries for the Blind (NIB) and the National Industries for the Severely Handicapped (NISH) are central nonprofit agencies that were established under the AbilityOne Program.

The Committee for Purchase from People Who Are Blind or Severely Disabled maintains a Procurement List of all supplies and services required to be purchased from AbilityOne participating nonprofit
agencies.

AbilityOne procurement list http://www.abilityone.gov/procurement_list/

Answer 199

A

1 Federal Prison Industries, Inc.

AbilityOne participating nonprofit agencies
Commercial sources

Answer 200

A

1 AbilityOne participating nonprofit agencies

Federal Prison Industries, Inc., or commercial sources

Answer 201

A

Supplies:
* Agency inventories;* Excess from other agencies;
* Federal Prison Industries, Inc.;
* Supplies on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled; and
*Wholesale supply sources, such as stock programs of the General Services Administration (GSA), Defense Logistics Agency, Department of Veterans Affairs, and military inventory control points.

Services:
* Services on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled.

Answer 202

A

a simplified process for obtaining commercial supplies and services at prices associated with volume buying.

Indefinite delivery contracts are awarded to provide
supplies and services at stated prices for given periods of time.

The Department of Defense (DOD) manages similar systems of schedule-type contracting for military items; however, DOD systems are not covered by this subpart.

Answer 203

A

Purpose: Simplify acquisition of commercial items to align with
market practices (FAR 12.000).

KeySections:
* 12.1: General guidelines for acquisition (FAR 12.101).
* 12.2: Special requirements for commercial items (FAR 12.201).
* 12.3: Solicitation provisions (FAR 12.301).
* 12.4: Terms and conditions (FAR 12.401).
* 12.5: Applicability of certain laws (FAR 12.500).
* 12.6: Streamlined procedures (FAR 12.601).

Answer 204

A

Purpose: Use market-driven practices to streamline acquisition (FAR
12.101).
Benefits: Reduces transaction costs, increases procurement efficiency (FAR 12.102).

Answer 205

A

Purpose: Simplify evaluation and solicitation for commercial items(FAR12.601)
* Oral Presentations (FAR 12.602(c)): Allowing offerors to present their proposals orally rather than in writing can significantly speed up the evaluation process.
* Simplified Evaluation Factors (FAR 12.602(b)): Using fewer and less complex evaluation factors, such as technical capability and past performance, helps streamline the process.
* Combined Synopsis/Solicitation (FAR 12.603): Issuing a combined synopsis and solicitation in a single document reduces the administrative burden and accelerates the procurement timeline.
* Electronic Commerce (FAR 12.603(d)): Utilizing electronic commerce methods to distribute solicitations and receive offers improves efficiency and reduces processing times.

Benefits: Reduces administrative costs, speeds up procurement cycles, enhances efficiency (FAR 12.602).

Answer 206

A

Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental
purposes, and
* Has been sold, leased, or licensed to the general public; or
* Has been offered for sale, lease, or license to the general public

Any item that evolved from an item as defined above through advances
in technology or performance and that is not yet available in the
commercial marketplace, but wil be available in the commercial marketplace in time to satisfy the delivery requirements under a
government solicitation, is also a commercial item.

Answer 207

A

commercial items
fi the modification is available commercially. Modifications that are uniquely governmental move the item further from the
definition of commercial item.

Computer

Computer with improved performance

Computer functioning underwater

Answer 208

A

Any previously developed item of supply used exclusively for governmental
purposes by a federal agency, a state or local government, or a foreign government with which the United States has a mutual defense cooperation agreement

Any item so described that requires only minor modification or modifications of a type customarily available in the commercial marketplace in order to meet the requirements of the procuring department or agency

Any item of supply being produced that does not meet the requirements above solely because the item is not yet in use

Answer 209

A

in accordance with the appropriate
FAR clauses, and should also be aware of customary commercial terms and conditions that may affect the pricing being provided to the government.

Answer 210

A

The process by which individual sections, paragraphs, or sentences of a specification or solicitation are modified to meet the minimum requirements and
specific needs of the requestor

The following paragraphs of the Contract Terms and Conditions – Commercial Items clause implement statutory requirements and shall not be tailored:
* Assignments
* Disputes
* Payment (except as provided in Subpart 32.11)
* Invoice
- Compliance with laws unique to government contracts and other compliances
- Unauthorized obligations

Answer 211

A

Permits the government to terminate a contract for either convenience or cause

The government’s rights after a termination for cause
includes all the remedies available to any commercial buyer

The preferred remedy is to acquire similar items and charge the defaulted contractor with excess reprocurement costs and incidental or consequential damages

Answer 212

A

A written statement arising out of a sale to the consumer of a consumer good, pursuant to which the manufacturer, distributor, or retailer undertakes to preserve
or maintain the utility or performance of the consumer good or provide compensation if there is a failure in utility or performance

It is not necessary to the creation of an express warranty that formal words such as “warrant” or “guarantee” be used, or that a specific intention to make a warranty be present.

For commercial contracts, an express warranty must be included in the contract by addendum.

Answer 213

A

A promise arising by operation of law that something that is sold shall be merchantable and fit for the purpose for which the seller has reason to know that ti is required

Some types of implied warranties:
* Implied warranty of merchantability
* Implied warranty of fitness for a particular purpose
* Implied warranty of title
* Implied warranty of wholesomeness
* Spearin Doctrine (implied warranty of specifications)

Answer 214

A

Speed of delivery and distribution channels

Length and extent of warranty

Limitation on seller’s liability

Purchasing in quantity

Length of the performance period

Specific performance requirements

Advances in technology

Answer 215

A

to the acquisition of commercial items at or below the MPT,

or those acquired using the Standard Form 44,

the imprest fund,

the governmentwide commercial purchase card,

or directly from another federal agency.

In general, all provisions that apply to commercial items also apply to commercially available off-the-shelf items.

Answer 216

A

and the rights in that data that are provided to the general public with the commercial item.

The contracting officer shall assume the data was developed exclusively at private expense.

If the government requires technical data rights, the contracting officer must include specific contract clauses.

Answer 217

A

The government’s rights after a termination for cause shall include all the remedies available to any buyer in the marketplace.

The government’s preferred remedy will be to acquire similar items from another contractor and to charge the defaulted contractor with any excess reprocurement costs together with any incidental or consequential damages incurred because of the termination.

Answer 218

A

Purpose: Provide simplified methods for small acquisitions (FAR
13.101).
*CombineRelatedItems(FAR13.101(b)(1)):Include related items in one solicitation and make awards on an “all-or-none” or “multiple award” basis.
*Incorporate Provisions by Reference(FAR13.101(b)(2)):Use provisions and clauses by reference in solicitations and awards when appropriate.
*Maximize Trade and Prompt Payment Discounts(FAR13.101(b)(3)):Make efforts to obtain trade and prompt payment discounts, which should not be considered in the evaluation of quotations.
* Use Bulk Funding (FAR13.101(b)(4)):Utilize bulk funding to streamline financial authorization for numerous purchases over a specified period.

Benefits: Quick and efficient procurement, minimizes costs, reduces paperwork (FAR 13.102).

Answer 219

A

Purpose:Providevariousmethodsforsimplifiedacquisitions(FAR13.301).
*Purchase Orders (FAR13.302): A streamlined method for acquiring goods and services, reducing the need for lengthy contracts.
* Blanket Purchase Agreements(BPAs)(FAR13.303):Allow agencies to establish agreements with suppliers for recurring needs, further simplifying the procurement process.
* Imprest Funds and Third-PartyDrafts(FAR13.305):Methods for small purchases that enable quick transactions with minimal administrative burden.
*Simplified Acquisition Threshold(SAT)(FAR13.000):Increases the threshold for simplified acquisitions, allowing more purchases to qualify for streamlined procedures

Benefits:Offers flexibility in procurement, reduces lead times and administrative costs (FAR 13.302).

Answer 220

A

Purpose: Simplify acquisition of specific commercial products and
services (FAR 13.501).
*Streamlined Solicitation Process(FAR13.501(a)):Contracting officers can combine the synopsis and solicitation in a single document, making it easier and faster to procure necessary items.
*Flexible Evaluation Methods(FAR13.501(b)):Simplified evaluations can be used, such as considering only price and past performance, without needing to use complex scoring systems.

Benefits: Reduces costs and procurement time, streamlines evaluation and award processes (FAR 13.502).

Answer 221

A

A less rigorous method for entering into relatively low-dollar-threshold contracts

Usually occurs without the elaborate and formal solicitation techniques required by
sealed bidding and negotiation

Simplified acquisition procedures are used for acquisitions which do not exceed the simplified acquisition threshold.

They may be used to purchase supplies and services, including construction; research and development; and commercial
items.

Answer 222

A

$270K

$90K $90k$90K

Do not break down requirements aggregating more than the SAT into several purchases that
are less than the SAT merely to permit use of simplified acquisition procedures.

Do not break down requirements aggregating more than the micropurchase threshold into several purchases that are less than the micropurchase threshold merely to avoid requirements for purchases exceeding the micropurchase threshold.

Answer 223

A

Contracting officers should use the SAM database as their primary source of vendor information. Offices maintaining additional vendor source files
or listings should identify the small-business status of each source when known.

The contracting officer shall promote competition to the maximum extent practicable, considering what is most advantageous ot the government.

Authorized individuals do not have to obtain individual
quotations for each purchase. Standing price quotations may
be used fi the pricing information is current, and the government obtains the maximum discounts before award.

Answer 224

A

COs are encouraged to use best value.

COs have broad discretion ni fashioning suitable evaluation procedures. The procedures prescribed in
FAR Parts 14 and 15 are not mandatory.

Prior to award, the contracting officer must determine that the proposed price is fair and reasonable.

Answer 225

A

Market research

Prices previously found reasonable

Price lists, catalogs, or advertisements

Comparison to similar items

Personal knowledge of the item

Independent government estimat

Answer 226

A

An acquisition of supplies or services, the aggregate amount of which does not exceed the micropurchase threshold

The micropurchase threshold is $3,500 generally

For acquisitions of construction subject to 40
U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), the micropurchase threshold is $2,000.

For acquisitions of services subject to 41 U.S.C.
chapter 67, Service Contract Labor Standards, the micropurchase threshold is $2,500.

For acquisitions of supplies or services that are to be used to support a contingency operation or to facilitate defense against or
recovery from nuclear, biological, chemical or radiological attack, the micropurchase threshold is $20,000 for any contract to be
awarded and performed, or purchase to be made, inside the United States.

For acquisitions of supplies or services that are to be used to support a contingency operation or to facilitate defense against or
recovery from nuclear, biological, chemical or radiological attack, the micropurchase threshold is $35,000 for any contract to be awarded and performed, or purchase to be made, outside the United States.

The governmentwide commercial purchase card is the preferred method of payment for micro purchases

Answer 227

A

A simplified method of filing anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply

A wide variety of items is generally purchased, but the exact items, quantities, and delivery requirements are not known

Commercial sources of supply must be provided for offices or projects that do not have authority to purchase otherwise

To avoid writing numerous purchase orders

Answer 228

A

A cash fund of a fixed amount established by advance of funds for disbursement as needed, in cash, for relatively smal purchases.

Used when the transaction does not exceed $500, its use is advantageous to the government, and the use complies with any additional conditions established by agencies

Answer 229

A

An agency bank draft, similar to a check, that is used to acquire and to pay for supplies and
services

Used when the transaction does not exceed $2,500, its use is advantageous to the government, and the use complies with any additional conditions established by agencies

Answer 230

A

SF 44, Purchase Order - Invoice - Voucher, is a multipurpose pocket-size purchase order form designed primarily for on-the-
spot, over-the-counter purchases of supplies and nonpersonal services while
away from the purchasing office or at isolated activities. tI also can be used as a receiving report, invoice, and public voucher.

Answer 231

A

Dollar threshold
for FPP is $35,000

For deliveries of supplies to locations
where there is geographical separation and a lack of communication with
government activities that will make it impractical to make timely payment based on evidence of government acceptance

Answer 232

A

Simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million
including options.

Used when the contracting officer reasonably expects, based on the nature of the supplies or services sought and on market research, that offers wil include only commercial items.

Contracting officers may use any simplified acquisition procedure in this part, subject to any specific dollar limitation applicable to the particular procedure.

The procedure vests contracting officers with discretion and flexibility, so that commercial item acquisitions in this dollar range may be solicited, offered, evaluated, and awarded in a simplified manner.

Answer 233

A

make micro-purchases;

place a task or delivery order (if authorized in the basic contract, basic ordering agreement,

or blanket purchase agreement);

or make payments, when the contractor agrees to accept payment by the card.

Answer 234

A

of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply.

Answer 235

A

(1) when requirements exist for a wide variety of items within a broad class of goods, but the exact items, quantities, and delivery requirements are not known in advance;

(2) when there is a need to provide commercial sources of supply for one or more offices in a given area that do not have or need authority to purchase otherwise;

(3) when the writing of numerous purchase orders can be avoided through the use of this procedure; or

(4) when there is no existing requirements contract for the same supply or service that the contracting activity is required to

Answer 236

A

an authorized purchase requisition, contracting officer verification statement, or another agency approved method of ensuring that adequate funds are available for the purchase.

Normally, purchases should be placed verbally and without soliciting competition if prices are considered reasonable.

For all practical purposes, there is simultaneous placement of the order and delivery of the items.

Therefore, clauses are not required for purchases using imprest funds or third-party

Answer 237

A

Purpose: Provides various contracting methods to enhance flexibility and efficiency in procurement (FAR 17.000).

KeySections:
* 17.1: Multi-Year Contracting (FAR 17.101).
* 17.2: Options (FAR 17.201).
* 17.4: Leader Company Contracting (FAR 17.401).
* 17.5: Interagency Acquisitions (FAR 17.500).
* 17.6: Management and Operating Contracts (FAR 17.600).
* 17.7: Interagency Acquisitions by Nondefense Agencies (FAR 17.700).

Answer 238

A

Lower costs

Enhance standardization

Reduce administrative burden in contract administration

Stabilize contractor work forces

Allow substantial continuity of performance and avoid costs
of startup, preproduction testing, readiness, and phaseout

Avoid establishing new quality control procedures each year *

Encourage participation by firms not willing or able to
compete for lesser quantities

Answer 239

A

Adeveloper or sole producer of a product or
system is designated to be the leader company, to furnish assistance and expertise under an
approved contract to one or more designated
follower companies, so they can become a source of supply

Answer 240

A

To reduce delivery time,

To achieve geographic dispersion of suppliers,

To maximize the use of scarce tooling or special equipment, * To achieve economies in production,

To ensure uniformity and reliability in equipment, compatibility or standardization of components, and interchangeability of parts,

To eliminate problems in the use of proprietary data, and

To facilitate the transition from development to production and to subsequent competitive acquisition of end items or major components

Answer 241

A

the government shall reserve the right to approve
subcontracts between the leader company and the follower company or companies.

The leader company may be the prime contractor, and the
follower company the subcontractor, or both the leader and follower companies may be awarded prime contracts.

Answer 242

A

An agreement under which the government contracts for the operation, maintenance, or support of a government-owned or controlled research, development, special production, or testing establishment

Government-owned or controlled facilities must be utilized; for instance, * In the interest of national defense or mobilization readiness;
* To perform the agency’s mission adequately; or
* Because private enterprise is unable or unwilling to use its own facilities for the work.

The government must maintain a special, close relationship with the contractor and the contractor’s personnel in various important areas such as safety, security, cost control, or site conditions.

The conduct of the work is wholly or at least substantially separate from the contractor’s other business, or the work is closely related to the agency’s mission and is of a long-term or continuing need

Management and operating contracts involve high levels of expertise, continuity of operations and personnel. Because of this, the government is often limited in its ability to effect competition or to replace a contractor.

Answer 243

A

lower costs;

enhancing standardization;

reducing administrative burden in placing and administering contracts;

substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses,

and phase-out costs;

stabilizing contractor work forces;

avoiding the need for establishing quality control techniques and procedures for a new contractor each year;

broadening the competitive base with opportunity for participation by firms not otherwise willing or able to competelesser quantities, particularly in cases involving high startup costs; and providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and advanced technology.

Answer 244

A

indefinite-delivery contracts, such as task-and-delivery-order contracts.

The indefinite-delivery contracts used most frequently to support interagency acquisitions are Federal Supply Schedule (FSS) contracts, governmentwide acquisition contracts (GWACs), and multiagency contracts (MACs).

An agency shall not use an interagency acquisition to circumvent conditions and limitations imposed on the use of funds

Answer 245

A

Purpose: Provides agencies with flexibilities to respond to
emergencies efficiently (FAR 18.000).

KeySections:
* 18.1: Available Acquisition Flexibilities (FAR 18.101).
* 18.2: Emergency Acquisition Flexibilities (FAR 18.201).

Answer 246

A

are generally available when there is an urgent or compelling need for an acquisition, or for work to begin immediately.

System for Award Management
Contractors are not required to be
registered in SAM for contracts to support emergency acquisitions.

Limitation of Sources or Competition
Agencies may limit the number of sources and full and open competition need not be provided for contracting actions involving urgent requirements.

Federal Prison Industries and AbilityOne
Purchase from FPI is not mandatory and a waiver is not required. Contracting officers do not need to notify when changes in AbilityOne specifications are required

LetterContracts
Letter contracts may be used when contract performance must begin immediately.

Streamlined Small Business Programs
Contracts may be awarded for performance by eligible 8(a) or WOSB firms on either a sole source or competitive basis, or to HUBZone or SDVOSB firms on a sole source basis.

Answer 247

A

A military operation that is designated by the Secretary of Defense as an operation
in which members of the armed forces are or may become involved in military
actions, operations, or hostilities against an enemy of the United States or against an opposing military force

A military operation that results in the call or order to, or retention on, active duty of members of the uniformed services under any provision of law during a war or
during a national emergency declared by the President or Congress

Answer 248

A

Micropurchase Threshold

$20,000 for any contract to be awarded and performed, or purchase to be made, inside the
United States

Answer 249

A

Micropurchase Threshold

$35,000 for any contract to be awarded and performed, or
purchase to be made, outside the United States

Answer 250

A

Simplified Acquisition Threshold

$800,000 for any contract to be awarded and performed, or
purchase to be made, inside the United States

Answer 251

A

Simplified Acquisition Threshold

$1.5million for any contract to be
awarded and performed, or
purchase to be made, outside the United State

Answer 252

A

Simplified Acquisition Threshold for Certain Commercial Items

$15 million, including options, if the contracting officer reasonably
expects that offers will include only commercial items

Answer 253

A

System for Award Management (SAM) at the time of submission of offers or quotations for contracts awarded without full and open competition due to unusual and compelling urgency; or contracts awarded by a contracting officer deployed in a military operation or located outside the US for work to be performed in support of diplomatic or developmental operations designated for danger pay; or in the conduct of emergency

However, contractors are required to be registered in SAM to gain access to the Disaster Response Registry which contracting officers use to determine availability of contractor for debris removal, supply distribution, reconstruction, and other disaster or emergency relief activities inside the US.

Answer 254

A

preexisting Federal Supply Schedules, multiagency blanket purchase agreements, and multiagency indefinite-delivery contracts to streamline the contracting process. (FAR
8.405-3(a)(6) and 16.505(a)(7))

Answer 255

A

Public Law 85-804 authorizes extraordinary contractual actions to facilitate the national defense, including the modification of contracts without consideration, correcting or mitigating mistakes in a contract, and formalizing informal commitments. (FAR 50.1)

Federal Prison Industries is not considered a required source when public exigency requires immediate performance. (FAR 8.605(b))

Agencies may relax or not enforce qualification requirements when an emergency exists. (FAR
9.206-1)

Contracting officers may utilize both verbal requests for proposals and letter contracts. (FAR
15.203(f) and 16.603)

Agencies may employ interagency acquisition.
(FAR 17.5)

Agencies may take advantage of streamlined small business programs, including 8(a) awards and sole-source awards to historically underutilized business zone (HUBZone) or service-disabled-veteran-owned small business concerns. (FAR 19.8, 19.1306, 19.1406, and 19.15)

Contracts may be awarded to economically disadvantaged women-owned small business
(EDWOSB) concerns and women-owned small business (WOSB) concerns eligible under the
WOSB Program on a competitive or sole source basis. (See subpart 19.15.)

Contracting officers may retroactively approve overtime. (FAR

Answer 256

A

Purpose: Describes the general policies and procedures for the Federal Supply Schedule program (FAR 38.101).

Benefits: Simplifies procurement, provides access to pre-negotiated contracts, offers competitive pricing (FAR 38.102).

Answer 257

A

A program directed and managed by GSA that provides federal agencies with a simplified process for obtaining commonly used supplies and services at prices associated with volume buying

Answer 258

A

Single Award

Multiple Award

New Item Introductory

International

Answer 259

A

Contracts made with multiple suppliers, pursuant to the Federal Supply Schedule Program, for relatively the same items at varying prices for delivery within the same geographic area.

Answer 260

A

IDIQ contracts

Awarded competitively

To commercial firms

To provide supplies and services
- At stated prices
* For given periods of time
* In the United States and to U.S. activities overseas

Answer 261

A

GSA eLibrary

http://www.gsaelibrary.gsa.gov/

GSA schedules are composed of Special Item Numbers (SINs), which group similar products, services, and solutions together to aid ni the acquisition process

Schedule descriptions are found at the List of Schedules in the GSA eLibrary, categorized by SIN

Products, supplies, and services may be ordered from GSA Schedule contractors or through the GSA Advantage! system

Answer 262

A

Purpose: Outlines the standards for determining contractor responsibility (FAR 9.104).

Key Criteria:
Adequate financial resources (FAR 9.104-1(a)).

Ability to comply with performance schedules (FAR 9.104-1(b)).
Satisfactory performance record (FAR 9.104-1(c)).

Integrity and business ethics (FAR 9.104-1(d)).

Necessary organization, experience, and technical skills (FAR 9.104-1(e)).

Compliance with public policy (FAR 9.104-1(f)).

Necessary equipment and facilities (FAR 9.104-1(g)).

Answer 263

A

“Subpart 9.1 sets the standards for determining the responsibility of prospective contractors.

These standards include financial stability, the ability to meet performance schedules, a satisfactory performance record, and integrity.

Ensuring that contractors meet these criteria is crucial for mitigating risks associated with contract performance and ensuring project success.”

Answer 264

A

Subpart 9.3 deals with the first article testing and approval process.

This step ensures that the initial product meets all contract specifications before mass production begins.

By thoroughly testing the first article, agencies can identify and address any issues early, reducing the risk of widespread defects or non-compliance in subsequent production batches

Answer 265

A

Causes for debarment include fraud, criminal offenses, and serious violations (FAR 9.406-2).

Suspension based on adequate evidence of contractor misconduct (FAR 9.407-2).

Procedures for debarment and suspension ensure fairness and due process (FAR 9.406-3, FAR 9.407-3).

Answer 266

A

Subpart 9.7 focuses on defense production pools and research and development pools.

These pools allow for the sharing of resources, expertise, and costs among multiple contractors, which is particularly beneficial for complex defense and R&D projects.

By pooling resources, agencies can mitigate financial and operational risks while ensuring compliance with relevant legal and regulatory requirements

Answer 267

A

Have adequate financial resources to perform the contract, or the ability ot obtain them
Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments
Have a satisfactory performance record, but a prospective contractor shall not be determined nonresponsible solely on the basis of a lack of relevant performance history
Have a satisfactory record of integrity and business ethics
Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them
Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them
Be otherwise qualified and eligible to receive an award under applicable laws and regulations

Answer 268

A

Generally, prospective prime contractors are responsible for determining the responsibility of their prospective subcontractors.

Determinations of prospective subcontractor responsibility may affect the government’s determination of the prospective prime contractor’s responsibility.

A prospective contractor may be required to provide written evidence of a proposed subcontractor’s responsibility.

When ti is the government’s interest to do so, the contracting officer may directly determine a prospective subcontractor’s
responsibility. In this case, the same standards used to determine a prime contractor’s responsibility shall be used by
the government to determine subcontractor responsibility.

If the pending contract requires a subcontracting plan
pursuant to FAR 19.7, the contracting officer shall also consider the prospective contractor’s compliance with
subcontracting plans under recent contracts in
establishing the prospective contractor’s performance record.

Answer 269

A

Upon making a determination of nonresponsibility with regard to a small business concern, the contracting officer shall refer the matter to the
Small Business Administration, which wil decide whether to issue a Certificate of Competency.

Issued by the Small Business Administration

Certifies that the holder is
responsible for the purpose of receiving and performing a specific government contract

Answer 270

A

Identifies additional factors about which information is needed
Includes the complete solicitation package (unless ti has previously been furnished), and any information indicating prior unsatisfactory performance by the prospective contractor
States whether the contracting office will participate in the survey
Specifies the date by which the report is required
Specifies limitations on the scope of the survey

Answer 271

A

Agovernment requirement for testing or other quality assurance demonstration that must be completed before a contract

If an agency determines that a qualification requirement is necessary, the agency activity responsible for establishing the requirement must urge manufacturers and other potential sources to demonstrate their ability to meet the standards specified for qualification and, when possible, give sufficient time to arrange for qualification before award.

Answer 272

A

Action taken by a suspending official to disqualify a contractor temporarily from government contracting and government-approved subcontracting

Answer 273

A

Action taken by a debarring official to exclude a contractor from government contracting and government-approved subcontracting for a reasonable, specified period.

Answer 274

A

Excluded from government contracting (and subcontracting, iff appropriate) pursuant to statutory, executive order, or regulatory authority (other than the FAR)

Answer 275

A

all contractors debarred, suspended, proposed for debarment, declared ineligible, or
excluded or disqualified by agencies or the GAO.

Each agency is
responsible for updating SAM, generally within five days
after the action becomes effective or is modified or rescinded.

Answer 276

A

A contractor team arrangement is an arrangement in which two or more
companies form a partnership or joint venture to act as a potential prime
contractor; or a potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified government contract or acquisition program.

Contractor team arrangements may be desirable from both a government and industry standpoint in order to enable the companies
involved to complement each other’s unique capabilities and offer the
government the best combination of performance, cost, and delivery for the system or product being acquired.

Answer 277

A

Associated together in order to obtain and perform, jointly or in conjunction with
each other, defense production or research and development contracts;

Entered into an agreement governing their organization, relationship, and
procedures; and

Obtained approval of the agreement

Except as specified in FAR 9.702, a pool shall be treated the same as any other prospective or actual contractor.

The offer leading to the contract submitted by the pool must be submitted ni its own name or by an individual pool member expressly stating that the offer is on behalf of the pool.

The contracting officer shall verify the pool’s approved status and document ni the contract file that the verification was made

Pools approved by the SBA under the Small Business Act are entitled to the preferences and privileges accorded to small business concerns. Approval under
the Defense Production Act does not confer these preferences and privileges

Before awarding a contract to an unincorporated pool, the contracting officer shall require each pool member participating in the contract to furnish a certified copy of a power of attorney identifying the agent authorized to sign the offer or contract on that member’s behalf. The contracting officer shall attach a copy of each power of attorney to each signed copy of the contract.

Answer 278

A

a foreign incorporated entity treated as an inverted domestic corporation under 6 U.S.C.395(b), (ie., a corporation that used to be incorporated in the United States or used to be a partnership in the United States but now is incorporated in a foreign country or is a subsidiary whose parent corporation is incorporated in a foreign country that meets the criteria specified in 6 U.S.C395(b) applied in accordance with the rules and definitions of 6
U.S.C. 395(c)).

Answer 279

A

requirement for testing or other quality assurance demonstration that must be completed before award of a contract.

The activity responsible for establishment of the qualification requirements must periodically furnish through the governmentwide point of entry GPE a seeking additional sources or products for qualification unless the contracting officer determines that such publication would compromise the national security.

Potential offerors need not be on a Qualified Bidders List
(QBL), Qualified Manufacturers List (QML), or Qualified Products List (QPL) if they demonstrate they can meet the requirements before the specified award date.

Answer 280

A

to exclude a contractor from government contracting and government-approved subcontractingfor a reasonable, specified period. Generally, debarment should not exceed three years, though exceptions to this are listed in FAR 9.406-4.

“Suspension” means action taken by a suspending official to disqualify a contractor temporarily from government contracting and government-approved subcontracting.

“Ineligible” means excluded from government contracting (and subcontracting, if appropriate) pursuant to statutory, executive order, or regulatory authority (other than the FAR).

Agencies are to solicit/award/consent to subcontract with responsible contractors only.

Debarment and suspension are discretionary actions that are imposed only in the public interest for the government’s protection and not for the purposes of punishment.

Answer 281

A

SAM lists all contractors debarred, suspended, proposed for debarment, declared ineligible, or excluded or disqualified under the nonprocurement common rule by agencies or by the Government Accountability Office (GAO). Each agency is responsible for updating SAM, generally within five days after the action becomes effective or an action is modified or rescinded. After opening of bids or receipt of proposals, and immediately prior to award, the contracting officer shall review the list to ensure that the agency does not solicit offers, award contracts, or consent to subcontracts with contractors on the list.

Contractors debarred, suspended, or proposed for debarment are excluded from receiving contracts, and agencies shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors, unless the agency head determines that there is a compelling reason for such action. Contractors shall not enter into any subcontract other than a subcontract for a commercially available off-the-shelf item, with a contractor that has been debarred, suspended, or proposed for debarment unless there is a compelling reason to do so, refer to FAR 9.405(b) for limitations.
If a contractor intends to subcontract, other than a subcontract for a commercially available off-the-shelf item, with a party that is debarred, suspended, or proposed for debarment as evidenced by the party’s inclusion in the SAM Exclusions, a corporate officer or designee of the contractor is required by operation of the clause at 52.209-4, “Protecting the Government’s Interests when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment,” to notify the contracting officer in writing before entering into such contract.

Notwithstanding the debarment, suspension, or proposed debarment of a contractor, agencies may continue contracts or subcontracts in existence at the time the contractor was debarred, suspended, or proposed for debarment unless the agency head directs otherwise

Answer 282

A

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

Answer 283

A

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

Answer 284

A

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).

Answer 285

A

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.

Answer 286

A

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

Answer 287

A

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

Answer 288

A

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.

Answer 289

A

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

Answer 290

A

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

Answer 291

A

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.

Answer 292

A

*Functions to be performed,

Performance required, or
Essential physical characteristics.

Answer 293

A

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

Answer 294

A

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.

Answer 295

A

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.

Answer 296

A

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.

Answer 297

A

16.1 Selecting Contract Types
16.2 Fixed-Price Contracts
16.3 Cost-Reimbursement Contracts
16.4 Incentive Contracts
16.5 Indefinite-Delivery Contracts
16.6 Time-and-Materials, Labor Hour, and Letter Contracts
16.7 Agreements

Answer 298

A

Nature and complexity of the requirement (FAR 16.104(a)).

Uncertainties involved in contract performance (FAR 16.104(b)).

Need for flexibility and incentives (FAR 16.104(c)).

Market conditions and competition (FAR 16.104(d)).

Answer 299

A

Contractor assumes full responsibility for performance costs (FAR 16.202-1).

Suitable for projects with well-defined requirements (FAR 16.202-2).

Includes firm-fixed-price and fixed-price with economic price adjustment (FAR 16.203).

Answer 300

A

Government assumes more risk by reimbursing allowable costs (FAR 16.301-1).

Suitable for projects with uncertain or unpredictable costs (FAR 16.301-2).

Includes cost-plus-fixed-fee and cost-plus-incentive-fee contracts (FAR 16.304).

Answer 301

A

Incentives linked to achieving specific performance targets (FAR 16.402).

Includes fixed-price incentive and cost-reimbursement incentive contracts (FAR 16.403).

Encourages cost savings and efficiency (FAR 16.405).

Answer 302

A

Types include definite-quantity, indefinite-quantity, and requirements contracts (FAR 16.504).

Suitable for recurring needs (FAR 16.503).

Allows for flexibility in delivery schedules (FAR 16.505).

Answer 303

A

Suitable for projects with uncertain durations or scopes (FAR 16.601-1).

Includes time-and-materials and labor-hour contracts (FAR 16.602).

Letter contracts allow immediate start of work pending negotiation (FAR 16.603).

Answer 304

A

Includes basic ordering agreements and blanket purchase agreements (FAR 16.702).

Provides pre-negotiated terms and conditions (FAR 16.703).

Facilitates faster procurement processes (FAR 16.704).

Answer 305

A

Fixed Price
- FFP
- FPw/EPA
- FPIncentive

T&M
- T&M
- Labor hour

Cost reimbursement
- Cost
- Cost plus
- Cost plus %

Answer 306

A

Cost-plus-percentage-of-cost contracts pay a fee that rises as the contractor’s costs rise. Because this contract type provides no incentive for the contractor to control costs it is not used.

Answer 307

A

Places maximum risk on the contractor
Places maximum responsibility for profit (or loss) on the contractor
Provides maximum incentive for the contractor to control costs and perform effectively
Imposes minimum administrative burden on the contracting parties
May be used in conjunction with a performance incentive or award fee if not based on cost
Remains a firm-fixed-price contract when used with incentives
May be used to purchase commercial items

Answer 308

A

A type of contract that provides for adjust-ing profit and establishing the final contract price by application of a formula based on the relationship of total final negotiated cost to total target cost

The final price is subject to a price ceiling, negotiated at the outset

Answer 309

A

A contract that provides for a firm-fixed-price for an initial period of contract deliveries or performance and prospective redetermination (at a stated time or times
during performance) of the price for subsequent periods of performance

Answer 310

A

The devotion of talent or capability to a predetermined level of activity, over a stated period of time, on the basis of a fixed-price or cost-reimbursement pricing
arrangement; payment is usually based on effort expended rather than results achieved

Answer 311

A

A form of pricing arrangement that provides for payment of allowable, allocable, and reasonable costs incurred in the performance of a contract to the extent that
such costs are prescribed or permitted by the contract

Types of cost-reimbursement contracts include:
* Cost
* Cost-plus-incentive-fee
* Cost-plus-award-fee
* Cost-plus-fixed-fee

The contracting officer shall document the rationale for selecting the contract type in the written acquisition plan and
ensure that the plan is approved and signed by at least one level above the contracting officer

Cost-reimbursement contracts may
not be used for acquisitions of commercial items

Answer 312

A

A cost-reimbursement type of contract with a provision for a fee that is adjusted by a formula in accordance with the relationship between total allowable costs and
target costs.

Appropriate for services or development and test programs, as wel as others if use of both cost and technical performance incentives is desired and administratively practical.

Answer 313

A

A cost-reimbursement type contract with special incentive fee provisions used to provide motivation for excellence in contract performance

Areas of “excellence” in performance may include:
*Quality
* Timeliness
* Ingenuity
* Cost effectiveness

Answer 314

A

A cost-reimbursement type contract that provides for the payment of a fixed fee to the contractor

The fee does not vary with actual costs, but may be adjusted as a result of any subsequent changes in the work or services to be performed under the contract

There are two types:
* Completion form has a clearly defined task with a definite
goal and specific end product
* Term form comes with a scope of work described in general
terms

Answer 315

A

A type of contract that provides for adjusting profit and establishing the final contract price by application of a formula based on the relationship of total final
negotiated cost to total target cost

The final price is subject to a price ceiling, negotiated at the outset

There are two types of FPI contracts:
- Firm target specifies target cost, target profit, price ceiling, and a profit adjustment formula. These elements are all negotiated at the
outset.
- Successive target negotiates final cost target later.

Answer 316

A

An indefinite-delivery contract that provides for filling all actual purchase requirements of designated government activities for supplies or services during a specified contract period

Deliveries or performance to b scheduled by placing orders with the contractor

Provides for the filling of all actual purchase requirements of specific supplies or services for a designated activity during a specified contract period

Answer 317

A

Provides for acquiring supplies/services on the basis of direct labor hours at
specified fixed hourly rates that include wages, overhead, profit, and materials

Used only when ti is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence

Answer 318

A

A written, preliminary contractual instrument that authorizes the contractor to begin
immediately manufacturing supplies or performing services

Must include price ceiling (“not to exceed”) and milestones for definitization

Used when the government’s interests demand that the contractor’s work must commence
immediately and it is
not possible to negotiate a definitive contract in sufficient time

Must be superseded by a definitized contract at the earliest
possible date

Answer 319

A

Contains terms and conditions for future orders and describes
supplies or services to be provided and methods for pricing, issuing, and delivering the orders

Basic agreements and basic
ordering agreements are not contracts

Answer 320

A

appropriate when the government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively.

Such contracts include a fixed price (including normal profit) for the effort. This price is paid for satisfactory performance.

Award fee earned (if any) is paid in addition to that fixed price. This contract type is appropriate when the administrative cost of conducting award-fee evaluations is not expected to exceed the expected benefits; procedures have been established for conducting the award-fee evaluation; the award-fee board has been established; and an individual above the level of the contracting officer approved the fixed-price-award-fee incentive.

There are two forms of cost-reimbursement incentive contracts: cost-plus-incentive-fee and cost-plus-award-fee (reference paragraph c).

Answer 321

A

for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order.

It is appropriate when it can be determined in advance that a definite quantity of supplies or services will be required during the contract period and the supplies or services are regularly available or will be available after a short lead time.

Answer 322

A

for an indefinite quantity, within stated limits, of specific supplies or services to be furnished during a fixed period, with deliveries or performance to be scheduled by placing orders.

Quantity limits may be expressed in terms of numbers of units or as dollar values. The contract shall require the government to order and the contractor to furnish at least a stated minimum quantity of supplies or services.

In addition, if ordered, the contractor shall furnish any additional quantities, not to exceed the stated maximum.

The contracting officer should use an indefinite-quantity contract only when a recurring need is anticipated. The government prefers to make multiple awards.

The contracting officer must, to the maximum extent practicable, give preference to making multiple awards under a single solicitation for the same or similar supplies or services to two or more sources. (Exception: indefinite-quantity contracts for advisory and assistance services.)

Answer 323

A

Urgency of need results in an unacceptable delay;
Only one awardee is capable of performing;
The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the contract;
It is necessary to place an order to satisfy a minimum guarantee;
For orders exceeding the simplified acquisition threshold a statute expressly authorizes or requires that the purchase be made from a specified source; and
In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for smallbusiness concerns, the specific small business program eligibility requirements identified in part 19 apply. Orders placed under a task-order contract or delivery-order contract awarded by another agency (i.e., a governmentwide acquisition contract or multiagency contract) are not exempt from developing acquisition plans (see subpart 7.1), and an information technology acquisition strategy (see part 39). In addition, placing such orders may not be used to circumvent conditions and limitations imposed on the use of funds (e.g., 31 U.S.C. 1501(a)(1)).

Answer 324

A

for acquiring supplies/services on the basis of direct labor hours at specified fixed hourly rates that include wages, overhead, profit, and materials (at cost).

They may be used only when it is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence.

This contract type is appropriate for engineering and design services.

Answer 325

A

a type of time-and-materials contract differing only in that materials are not furnished by the contractor (often used in conjunction with other contract types).

Answer 326

A

written instruments of understanding that contain terms and conditions that apply to future orders; a description of supplies and services to be provided; and methods for pricing, issuing, and delivering future orders under the basic ordering agreement. They are not contracts.

Answer 327

A

Subpart 28.1 establishes the use of bonds to protect the government against financial loss.“

“Types of bonds include bid bonds, performance bonds, and payment bonds.“

“Bid bonds ensure that bidders will honor their bids.“

“Performance bonds guarantee the contractor’s performance.“

“Payment bonds ensure that subcontractors and suppliers are paid.”

Answer 328

A

Acceptable sureties include corporate sureties and individual sureties (FAR 28.202-1).

Corporate sureties must be listed in the Department of the Treasury’s Listing of Approved Sureties (FAR 28.202-2).

Individual sureties must pledge assets to cover the bond amount (FAR 28.203-1).

Alternatives to sureties include letters of credit and escrow accounts (FAR 28.204).

Answer 329

A

Subpart 28.3 outlines the requirements for insurance in government contracts.“

“Contractors must obtain and maintain insurance as required by the contract.“

“Types of required insurance may include worker’s compensation, liability, and property insurance.“

“Contractors must provide evidence of insurance coverage.”

Answer 330

A

A written instrument executed by a first party and a second party (except as provided in 28.204), to assure fulfillment of the first party’s obligations to a third
party identified in the bond

Assures payment, to the extent stipulated, of any loss sustained by the third party if the bidder or contractors obligations are not met

The first party: the principal - the bidder or contractor

The second party: the surety — usually an insurance company

The third party: the obligee - the government

Answer 331

A

The amount of money specified in a bond (or a percentage of the bid price in a bid bond) as the maximum payment for which the surety is obligated

The amount of security required to be pledged to the government in liuw of a corporate or individual surety for the bond

Answer 332

A

Bonds statute requires performance and payment bonds for any U.S. construction
contract exceeding $150,000

The contractor shall furnish all
bonds or alternative payment protection before receiving a notice to proceed with the work or being allowed to start work

Penal amount of performance bonds must equal 100% of the original contract price

Amount of payment bonds must equal 100% of the original contract price

If the contract price increases, the bond amount must increase
by 100% of the increase

Answer 333

A

Individual surety
* One person, versus a business entity, is liable for the entire penal amount of the bond

Corporate surety
* Licensed under various insurance laws, and, under its charter, has legal power to act as surety for others

Co-surety
* Two or more sureties are jointly liable for the penal sum of the bond

Answer 334

A

Advance payment bond-secures fulfillment of the contractor’s obligations under an advance payment provision;

*Annual bid bond—a single bond, in lieu of separate bonds, which secures all bids on other than construction contracts requiring bonds submitted during a specific fiscal year;

Annual performance bond-a single bond, in lieu of separate performance bonds, to secure fulfillment of the contractor’s obligations under contracts other than for construction requiring bonds entered into during a specific fiscal year;

*Patent infringement bond-secures fulfillment of the contractor’s obligations under a patent provision;

Payment bond-ensures payments as required by law to all persons supplying labor or material in the prosecution of the work provided for in the contract; and

*Performance bond-secures performance and fulfillment of the contractor’s obligations under the contract.

Answer 335

A

for any construction contract valued in excess of the amount referred to in
(FAR 28.102-3(a). Generally, such bonds are not required for other than construction contracts; however, in some situations, performance bonds may be appropriate.

Answer 336

A

32.1 Non-Commercial Item Purchase Financing

32.2 Commercial Item Purchase Financing

32.3 Loan Guarantees for Defense Production

32.4 Advance Payments for Non-Commercial Items

32.5 Progress Payments Based on Costs

32.6 Contract Debts

32.7 Contract Funding

32.8 Assignment of Claims

32.9 Prompt Payment

32.10 Performance-Based Payments

32.11 Electronic Funds Transfer

Answer 337

A

Advance payments
Advances of money by the government to a prime contractor

Loan guarantees
Guarantees backed by the Federal Reserve designed to enable contractors to obtain financing from private sources

Performance-based payments
Made on the basis of performance measured by objective, quantifiable methods, accomplishment of defined events, or other quantifiable measures of results

Answer 338

A

Private financing without government guarantee

Customary contract financing

Loan guarantees

Unusual contract financing

Advance payments

Answer 339

A

Financing for the purchase of
commercial items is normally the contractor’s responsibility.

Commercial advance payment
* The payment is made before any performance of work
* The payment shall not exceed 15% of the contract price
* Payments are not subject to advance payments for noncommercial items

Commercial interim payment
* A payment that is not a commercial advance payment or a delivery payment
* Payment is given to the contractor after some work has been done

Delivery payment
*Payment for accepted supplies or services, including payments for accepted partial deliveries

Answer 340

A

Federal Reserve Banks are authorized to act, on behalf of guaranteeing agencies, such as the DoD, as fiscal agents of the U.S. in the making of loan guarantees for defense
production.

Same as conventional loans made by banks, except:
* The guaranteeing agency is obligated, on demand of the lender, to purchase a stated percentage of the loan
* To share any losses in the amount of the guaranteed percentage

Answer 341

A

No officer or employee of the government may create or
authorize an obligation in excess of the funds available, or in advance of appropriations unless otherwise authorized by law
Before executing a contract, the contracting officer must obtain written assurance from responsible fiscal authority that adequate funds are available, or expressly condition the contract upon availability of funds

Answer 342

A

or Funds clause must be monitored closely

The contracting officer, upon learning that the contractor is approaching the estimated cost or limit of the funds allotted must promptly notify the
contractor in writing that:
* Additional funds have been allotted or the estimated cost increased,
* The contract will not be further funded,
* The contract is to be terminated, or
* The government si considering whether to allot additional funds or increase the estimated cost.

Answer 343

A

The transfer or making over by the contractor to a bank, trust company or other financing institution, as security for a loan to the contractor, of its right to be paid by the government for contract performance

A contractor may assign monies due or to become due under a government contract
only when:
* The value exceeds $1,000,
* The assignment is made to a bank, trust company, or other
financing institution,
* The contractual document does not prohibit the assignment, and
* The assignee sends a written notice of the assignment to the contracting officer or the agency head.

Answer 344

A

Advance payments advances of money by the government to a prime contractor;
Progress payments based on costs-made on the basis of costs incurred by the contract or as work progresses;
Loan guarantees guarantees backed by the Federal Reserve designed to enable contractors to obtain financing from private sources;

*Partial payments for accepted supplies and services-more of a payment versus financing method;

Progress payments based on a percentage or stage of completion-again, more of a payment versus financing method

Performance-based payments-made on the basis of performance measured by objective, quantifiable methods, accomplishment of defined events, or other quantifiable measures of results

Answer 345

A

Private financing without government guarantee (it is not intended, however, that the con-tractor be required to obtain private financing at unreasonable terms or from other agencies); customary contract financing; loan guarantees; unusual contract financing; advance payments.

Unusual contract financing is any contract financing arrangement that deviates from customary contract financing procedures delineated in
Offerors may propose only the customary contract financing specified in the solicitation.

If the contractor is a small business concern, the contracting officer must give special attention to meeting the contractor’s financial need. A contractor’s receipt of a CoC from the Small Business Administration has no bearing on the contractor’s need for or entitle-ment to contract financing

The contracting officer is not to treat the contractor’s need for contract financing as a handicap in making the contract award; e.g, as a responsibility factor or evaluation criterion, as long as the contractor or offeror meets the standards prescribed for responsible prospective contractors at 9.104. Also, if a contractor failed to indicate a need for contract financing before the contract was awarded, it does not disqualify them from seeking contract financing after award.

Answer 346

A

contract item financed is a commercial supply or service; contract price exceeds the simplified acquisition threshold; contracting officer determines it is appropriate/customary in the commercial marketplace to make financing payments for the item and determines it is in the best interest of the government; adequate security is obtained; or prior to any performance of work under the contract, the aggregate of commercial advance payments shall not exceed 15 percent of contract price (competitive environment). If contract is sole source, adequate consideration obtained; and concurrence from the payment office regarding liquidation provisions, if required.

Answer 347

A

in incrementally funded cost-reimbursement contracts.

Contracts that contain a Limitation of Cost or Funds clause must also be monitored closely. The contracting officer, upon learning that the contractor is approaching the estimated cost or limit of funds allotted, must promptly notify the contractor in writing that (1) additional funds have been allotted or the estimated cost increased, (2) the contract will not be further funded, (3) the contract is to be terminated, or (4) the government is considering whether to allot additional funds or increase the estimated cost.

Answer 348

A

49.1 General Principles

49.2 Additional Principles for Fixed-Price Contracts Terminated for Convenience

49.3 Additional Principles for Cost-Reimbursement Contracts Terminated for Convenience

49.4 Termination for Default

49.5 Contract Termination Clauses

49.6 Contract Termination Forms and Formats

Instructor Dialogue:
“FAR Part 49 focuses on the policies and procedures for terminating contracts.”

“This part helps manage risks associated with contract termination, ensuring that the process is handled fairly and efficiently.”

“Understanding these procedures is crucial for mitigating financial and operational risks in contract management.”

Answer 349

A

Termination of a contract by the unilateral right of the government to do so, for the convenience of the government when the contract no longer serves the government’s best interests

Terminations for convenience often result from a change in government
priorities, program termination, downsizing, or other significant events that were not anticipated at the time of contract formation.

When the government pursues a termination for convenience, a termination agreement is negotiated with the seller.

The government always has the right ot terminate a contract for convenience.

“Convenience” means the convenience of the government.

Answer 350

A

Termination of a contract resulting from one party’s failure to perform one or more actions required by the contract

Termination for default is normally a right of law in addition ot a right vested as the result of inclusion of appropriate terms and conditions in the contract.

If the surety does not arrange for completion of the contract,
the contracting officer wil normaly arrange for completion of
the work by awarding a new contract based on the same plans and specifications.

Answer 351

A

The contractor will accept it,

No government-furnished property was furnished, and

The contractor has no outstanding debts or obligations to the government.

Answer 352

A

The contractor shall not be in default because of any failure to perform this contract under its terms fi the failure arises from causes beyond the
control and without the fault or negligence of the contractor. Examples include:

Acts of God or of the public enemy

Acts of the government in either its sovereign or contractual capacity

Fire

Flood

Epidemic

Quarantine restrictions

Strike

Freight embargo

Unusually sever weather

Answer 353

A

No-cost settlements may be effected in lieu thereof only when it is known that the contractor will accept one, government-furnished property was not furnished,
and there are no outstanding payments/debts due the government or other contractor obligations

When the price of the undelivered balance of the contract is less than the amount prescribed in
FAR 49.101(c), the contract should not normally be terminated for convenience but rather permitted to reach completion.

If the same item is under contract with both a large and small business and it becomes necessary to terminate for convenience part of the units, preference will be given to continue performance of the small business over the large business unless not in the government’s interest.

Terminations are generally settled by one of the following methods: negotiated agreement, terminating contracting officer (TCO) determination, costing out under SF 1034, or a combination of these methods.

When possible, the TCO should negotiate a fair and prompt settlement with the contractor. The TCO shall settle a settlement proposal by determination only when it cannot be settled by agreement.

Answer 354

A

stop work immediately on the terminated portion of the contract and stop placing subcontracts; terminate all subcontracts related to the terminated portion of the prime contract; immediately advise the TCO of any special circumstances precluding the stoppage of work; perform the continued portion of the contract and submit promptly any supported request for equitable adjustment; take necessary or directed action to protect and preserve government furnished property and deliver it to the government; promptly notify the TCO in writing of any legal proceedings growing out of any subcontract or other commitment related to the terminated portion of the contract; settle outstanding liabilities; promptly submit the settlement proposal; and dispose of terminated

Answer 355

A

30 days after the receipt of the termination notice, recommend the release of excess funds to the contracting officer.

The initial deobligation of excess funds should be accomplished in a timely manner by the contracting officer (or the TCO, if delegated the responsibility). The TCO shall not recommend the release of amounts under $1,000 unless requested by the contracting officer.

Answer 356

A

a reasonable allowance for profit. Fair compensation is a matter of judgment and cannot be measured exactly.

The use of business judgment, as distinguished from strict accounting principles, is the heart of a settlement.

The primary objective is to negotiate a settlement by agreement.

The TCO shall allow profit on preparations made and work done by the contractor for the terminated portion of the contract but not on the settlement expenses.

Anticipatory profits and consequential damages shall not be allowed. In the negotiation or determination of any settlement, the TCO shall not allow profit if it appears that the contractor would have incurred a loss had the entire contract been completed.

Answer 357

A

19.1 Size Standards
19.2 Policies
19.3 Determination of Small Business Status for Small Business Programs
19.4 Cooperation with the Small Business Administration
19.5 Small Business Total Set-Asides, Partial Set-Asides, and Reserves
19.6 Certificates of Competency and Determinations of Responsibility
19.7 The Small Business Subcontracting Program
19.8 Contracting with the Small Business Administration (The 8(a) Program)
19.13 Historically Underutilized Business Zone (HUBZone) Program
19.14 Service-Disabled Veteran-Owned Small Business Procurement Program
19.15 Women-Owned Small Business Program

Answer 358

A

SBA-issued certificates of competency for qualified small businesses (FAR 19.602).

Subcontracting plans for large contractors to include small businesses (FAR 19.701).

Answer 359

A

The 8(a) program provides opportunities for disadvantaged businesses (FAR 19.801).

Procedures for 8(a) contract awards (FAR 19.802).

Answer 360

A

HUBZone program incentives for businesses in underutilized areas (FAR 19.1301).

Service-disabled veteran-owned small business set-asides (FAR 19.1401).

Answer 361

A

Created by the Small Business Act of 1953

An independent agency of the federal government

Aids, counsels, assist and protects the interests of small business
concerns

FAR Part 19 implements acquisition-related sections of the Small Business Act, applicable sections of the Armed Services Procurement Act, and Executive Order 12138.

Answer 362

A

NAICS codes are updated by the Office of Management and Budget through its Economic Classification Policy Commitee.

North American Industry Classification System

NAICS Manual groups different businesses into industries

Each industry receives a six digit code

Each digit of the NAICS code categorizes the industry more specifically.

Answer 363

A

459210

45 Economic sector
9 Economic subsector
2 Industry group
1 North American Industry
0 National Industry

Answer 364

A

https://www.sba.gov/document/support-table- size-standards

AICS Codes
445291 445292 445298 445320
NAICS Industry Description

Baked Goods Retailers Confectionery and Nut Retailers Al Other Specialty Food Retailers Beer, Wine, and Liquor Retailers

Size standards ni millions of dollars
16, 19, 20

Size starndards in number of employees

Answer 365

A

Updated every five years

New NAICS codes are not
available until the SBA publishes a
corresponding industry size standard

Answer 366

A

Classifying the product or service by its industry ni the NAICS Manual

Identifying the size standard established for that industry *

Specifying the size standard in the solicitation so that offerors can appropriately represent themselves as small or large

For size standard purposes, a product or service shall be classified ni only one industry, whose definition best describes its principal nature.

If a product or service could be
classified ni multiple industries with different size standards, the size standard for the industry accounting for the greatest percentage of the contract price applies.

Answer 367

A

Plan acquisitions such that, fi
practicable, more than one small
business concern may perform the work

Publicize solicitations and contract awards through the
governmentwide point of entry; NCMA

Preparing solicitations that allow the maximum time practical for response

Divide proposed acquisitions of into smaller lots to permit offers on
quantities less than the total requirement

Ensure that delivery schedules are established o n a realistic basis that
will encourage small business participation

Answer 368

A

8(a) Program, HUBZone Program, Service- Disabled Veteran-Owned Small Business
Procurement Program, or Women-Owned Small Business Program.

Answer 369

A

An offeror may represent that it is a small business for a solicitation if:
* It meets the applicable definition, and
* SBA has not determined it a s other than small

A contracting officer who receives a protest, ! or who wishes to protest the small business representation of an offeror, shall forward the protest to the SBA area office where the
concern in question is located

To be timely, a protest must be received by the contracting officer within five days of bid opening (for sealed bids) or receipt of notification of the apparently successful offeror (in negotiated acquisitions).

The SBA will review evidence of the small business status of the offeror and make a decision within 15 days.

Answer 370

A

For acquisitions above the simplified acquisition threshold, the priority shall be:

8(a), HUBZone, Service-Disabled Veteran-Owned Small Business, or Women-Owned Small Business
Small business set-aside
Acquisition using full and open competition

Exceeding Micropurchase Not exceeding SAT
Automatically reserved exclusively for small business concerns
Shall be set aside for small business

Exceeding SAT
Should be set-aside for small business if there is a reasonable expectation of at least two small business offerors.

Answer 371

A

The certificate issued by the Small Business Administration stating that the holder is responsible (with respect to all elements of responsibility) for the purpose of
receiving and performing a specific government contract

If an apparent successful small business is determined to be nonresponsible, the contracting officer shall:
* Withhold contract award, and
* Notify the cognizant SBA area office

Within 15 business days of receiving this notification, the SBA office shall:
* Notify the oferor of the COs’ decision, and 15
* Provide the small business an opportunity ot apply for a COC

Upon timely receipt of an application, the SBA shall:
* Review the offeror’s responsibility,
* Determine whether to issue a COC, and
* Notify the offeror and the contracting officer of the decision

If a COC si issued, the CO shal l award the contract to the offeror.

fI the SBA does not issue a COC within 51 days, award is made to another responsible and appropriately selected offeror.

Answer 372

A

For contracts or contract modifications

For which subcontracting opportunities exist

That are expected to exceed

Supplies o r services
$750,000

Construction $1.5 million

Answer 373

A

Separate percentage goals for using small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors

A description of the supplies and services to be subcontracted, and

Identification of the types planned for subcontracting to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone
small business, small disadvantaged business, and women-owned small business concerns

The name of an individual employed by the offeror who wil administer the offeror’s subcontracting program, and a description of the duties of that individual

Answer 374

A

Be a small business for its primary industry classification

Demonstrate good character and potential for success

Be not less than 51% owned and controlled by socially and
economically disadvantaged individuals who are U.S. citizens and reside in the United States.

Section 8(a) of the Small Business Act authorizes the SBA to enter into all types of contracts with other agencies and let subcontracts for
performing those contracts to firms eligible for program
participation.

Contracts may be awarded to the SBA for performance by eligible 8(a) firms on either a sole source or competitive basis.

The SBA and an agency cooperate to match the agency’s requirements with the capabilities of 8(a) concerns.

Answer 375

A

A small business for its primary industry classification,

Not less than 51%
directly owned and controlled by one or more veterans with a service-
connected disability, as determined by the VA or DoD.

Created by the Veterans Benefit Act of 2003

Developed to provide federal
contracting assistance to service-disabled veteran-owned small business concerns

Answer 376

A

Plan acquisitions such that, if practicable, more than one small business concern may perform the work;
Before issuing solicitations, make every reasonable effort to find additional small business concerns, unless lists are already excessively long and only some of the concerns on the list will be solicited. This effort should include contacting the agency SBA procurement center representative, or if there is none, the SBA office serving the activity;
Publicize solicitations and contract awards through the GPE;
In the event of equal low bids, awarding first to small business concerns which are also labor surplus area concerns, and second to small business concerns that are not also labor surplus
area concerns; and
Preparing solicitations that allow the maximum time practicable for response, and furnishing necessary information or explaining where to obtain or examine it, and other related information.
Divide proposed acquisitions of supplies and services (except construction) into reasonably
small lots to permit offers on quantities less than the total requirement.
Ensure that delivery schedules are established on a realistic basis that will encourage small business participation.

Answer 377

A

Within 30 days of execution of a novation agreement or within 30 days after modification of the contract to include the clause
52.219-28, “Post-Award Small Business Program Rerepresentation,” if the novation agreement was executed prior to inclusion of this clause in the contract;

Within 30 days after a merger or acquisition of the contractor that does not require a novation or within 30 days after modification of the contract to include the clause 52.219-28, “Post-Award Small Business Program Rerepresentation,” if the merger or acquisition occurred prior to inclusion of this clause in the contract; and

For long-term contracts,
* Within 60 to 120 days prior to the end of the fifth year of the contract, and
* Within 60 to 120 days prior to the date specified in the contract for exercising any option thereafter.

Answer 378

A

by any concern or other interested party must be received by the contracting officer by the close of business of the fifth business day after bid opening (for sealed bids) or receipt of the special notification from the contracting officer that identifies the apparently successful offeror (in negotiated acquisitions).

A protest may be made verbally if it is confirmed in writing either within the five-day period or by letter postmarked no later than one business day after the verbal protest.

A protest may be made in writing if it is delivered to the contracting officer by hand, telegram, or letter postmarked within the five-day period.

Answer 379

A

over acquisitions using full and open competition.

The purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns.

Determinations to make a set-aside may be unilateral (made by the contracting officer) or joint (recommended by the SBA procurement center representative and concurred in by the contracting officer). Unilateral determinations are preferred.

Acquisitions that are over the MPT but not over the SAT in E are automatically reserved exclusively for small business concerns and shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery.

The contracting officer shall set aside any acquisition over the SAT for small business participation when there is a reasonable expectation that offers will be obtained from at least two responsible small business concerns offering the products of different small business concerns, and award will be made at fair market prices.
Set-asides may be total or partial.

Total set-asides are addressed at FAR 19.502-2 while FAR 19.502-3 provides details on partial set-asides.

The contracting officershall set aside a portion of an acquisition that is not subject to SAP, except for construction, for exclusive small business participation when a total set-aside is not appropriate and the requirement is severable into two or more economic production runs or reasonable lots where one or more small business concerns are expected to have the technical competence and productive capacity to satisfy the set-aside portion of the requirement at a fair market price. A partial set-aside shall not be made if there is a reasonable expectation that only two concerns (one large and one small) with capability will respond with offers unless authorized by the head of a contracting activity on a case-by-case basis. Similarly, a class of acquisitions, not including construction, may be partially set aside.

Under certain specified conditions, partial set-asides may be used in conjunction with multiyear contracting procedures.

For multiple-award contracts there are three acquisition techniques encouraged to facilitate contracting with small businesses:
* Setting aside part or parts of the requirement.
* Reserving one or more contract awards.
* Setting aside orders place against multiple-award contracts.

None of the following is, in itself, sufficient cause for not setting aside an acquisition: a large percentage of previous contracts for the required items) have been placed with small business concerns, the item is on a qualified products list, a period of less than 30 days is available for receipt of offers, or the acquisition is classified. (See FAR 19.502-6 for additional insufficient causes for not setting aside an acquisition.)

Contracting officers may reject SBA’s set-aside recommendations; however, SBA may appeal. Pending resolution, all action on the acquisition is suspended.

This requirement does not apply to purchases at or below the MPT or purchases from required sources of supply under part 8.

Answer 380

A

consider the contractor’s compliance with the subcontracting plans submitted on previous contracts as a factor in determining contractor responsibility and ensure that a subcontracting plan was submitted when required.

The contracting officer shall notify the SBA procurement center representative of the opportunity to review the proposed contract (including the plan and supporting documentation)
and shall provide the representative a reasonable time to review the material and submit advisory recommendations, but failure of the representative to respond in a reasonable period of time shall not delay contract award.

The contracting officer shall determine any fee that may be payable if an incentive is used in conjunction with the subcontracting plan, and shall ensure that an acceptable plan is incorporated into and made a material part of the contract.

Letter contracts and similar undefinitized instruments, which would otherwise require a sub-contracting plan shall contain at least a preliminary basic plan addressing the requirements of 19.704 and in such cases require the negotiation of the final plan within 90 days after award or before definitization, whichever occurs first.

Answer 381

A

provide federal contracting assistance to service-disabled veteran- owned small business concerns.

At the time that a service-disabled veteran-owned small business concern submits its offer, it must represent to the contracting officer that it is a service-disabled veteran-owned small business concern and a small business concern under the North American IndustryClassification System (NAICS) code assigned to the procurement.

Answer 382

A

Is registered in the System for Award Management (SAM);

Is self-certified as an EDWOSB or WOSB concern in SAM; and

Has submitted documents verifying its eligibility at the time of initial offer to the
WOSB Program Repository.

The contract shall not be awarded until all required documents are received.

Answer 383

A

22.1 Basic Labor Policies

22.2 Convict Labor

22.3 Contract Work Hours and Safety Standards Act

22.4 Labor Standards for Contracts Involving Construction

22.5 Use of Project Labor Agreements for Federal Construction Projects

22.6 Contracts for Materials, Supplies, Articles, and Equipment

22.8 Equal Employment Opportunity

22.9 Nondiscrimination Because of Age

22.10 Service Contract Labor Standards

22.11 Professional Employee Compensation

22.13 Equal Opportunity for Veterans

22.14 Employment of Workers with Disabilities

22.15 Prohibition of Acquisition of Products Produced by Forced or Indentured Child Labor

22.16 Notification of Employee Rights Under the National Labor Relations Act

22.17 Combating Trafficking in Persons

22.18 Employment Eligibility Verification

22.19 Establishing a Minimum Wage for Contractors

22.21 Establishing Paid Sick Leave for Federal Contractors

Answer 384

A

Agencies must maintain sound relations with industry and labor to ensure prompt receipt of information involving labor relations and to assure that the government obtains needed supplies and services without delay.

Agencies shall remain impartial concerning any dispute between labor and contractor management and not undertake the conciliation, mediation, or arbitration of a labor dispute.

To the extent practicable, agencies should ensure that the parties to the dispute use all available methods to resolve it.

Answer 385

A

Services of the National Labor Relations Board

Federal Mediation and Conciliation Service

National Mediation Board

Other federal, state, or local agencies

Private agencies

Answer 386

A

Formerly known as Davis-Bacon Act

No laborer or mechanic employed on the site shall receive less than
prevailing wage rates as determined by the Secretary of Labor

Answer 387

A

Formerly Copeland “Anti-Kickback” Act

Prohibits inducing any person to
give up any compensation to which that person is entitled under a
contract of employment

Answer 388

A

A pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project

Answer 389

A

Addresses minimum wages,

Maximum hours, * Child labor,

Convict labor, and

Safe and sanitary working conditions

Answer 390

A

All nonexempt governmental prime and subcontractors are required to promote equal opportunity for employment to all persons,
regardless of race, color, religion, sex, or national origin.

Answer 391

A

Minimum wage

Fringe benefits

Safe and sanitary working conditions

Notification of minimum allowable compensation, and

Equivalent federal employee classifications and wage rate

Answer 392

A

25.1 Buy American Act—Supplies

25.2 Buy American Act—Construction Materials

25.3 Contracts Performed Outside the United States

25.4 Trade Agreements

25.5 Evaluating Foreign Offers—Supply Contracts

25.6 American Recovery and Reinvestment Act—Buy American Statute—Construction Materials

25.7 Prohibited Sources

25.8 Other International Agreements and Coordination

25.9 Customs and Duties

25.10 Additional Foreign Acquisition Regulations

25.11 Solicitation Provisions and Contract Clauses

Answer 393

A

The Buy American statute restricts the purchase of supplies, that are not domestic end products, for use within the United States.

Answer 394

A

The Buy American statute requires that only domestic construction materials be used in construction contracts
performed in the United States. Exceptions to the act are found at FAR 25.202.

The contracting officer must review allegations of Buy American statute violations and when necessary, take appropriate action such as process a determination concerning the inapplicability of the Buy American statute in accordance with 25.205.

Answer 395

A

Approve and implement the trade agreements negotiated under the Trade Act of 1974

Foster the growth and maintenance of an open world trading system *

Expand opportunities for the commerce of the United States in
international trade, and

Improve the rules of international trade and to provide for the
enforcement of such rules, and for other purposes.

Answer 396

A

not domestic end products. The FAR defines a domestic end product based on where it was manufactured and where the components were sourced, including specific thresholds for all supplies and special thresholds for steel and iron.

A foreign end product may be purchased if an exception applies. These include when the purchase is determined to be in the public interest, products are offered for resale, nonavailability of items items not mined, produced, or manufactured in the U.S., in sufficientquantity, or of a satisfactory quality), or if the price is determined to be unreasonable using a formula detailed in FAR 25.105.

Answer 397

A

Free Trade Agreements and the World Trade Organization (WTO) Government Procurement Agreement specify procurement procedures designed to ensure fairness.

The value of the acquisition is a determining factor in the applicability of the trade agreements.

When the restrictions of the Buy American statute are waived for eligible products, offers of those products (eligible offers) receive equal consideration with domestic offers.

Under the Trade Agreements Act, only United States-made end products or eligible products may be acquired (also see FAR 25.403(c)). FAR 25.402 lists the applicablethresholds. See subpart 25.5 for evaluation procedures for supply contracts subject to trade agreements. The dollar thresholds are subject to revision every two years.

Answer 398

A

27.1 General

27.2 Patents and Copyrights

27.3 Patent Rights Under Government Contracts

27.4 Rights in Data and Copyrights

27.5 Foreign License and Technical Assistance Agreements

Answer 399

A

Encourages commercial use of inventions made under
government contracts

Will not generally refuse to award a contract on the grounds
that a patent may be infringed

Should generally be indemnified against liability for patent
infringement

Recognizes rights in privately-developed data

Requires contractors to obtain permission to use
copyrighted material

Answer 400

A

A government grant of exclusive rights to an inventor that prohibits others from
making, using, or selling an invention

The current term for patents is generally 20 years (increased in 1995 from 17 years)

Answer 401

A

Distinctive mark of authenticity

Words, symbols, devices, or designs affixed to or placed on an article or its container to identify an article offered for sale

Answer 402

A

A royalty-free, non-exclusive, and irrevocable license to reproduce, translate, publish, use, and dispose of written or recorded
material, and ot authorize others ot do so

Valid for the life of the author plus 70 for works published after 1978

Answer 403

A

No injunctive relief is available

There is no direct cause of action against the infringing contractor

Remedy is a suit for monetary damages against the government in the Court of Federal Claim

Answer 404

A

Requires the contractor to report any notices of infringement to the CO

Requires the contractor to provide any relevant evidence in the event of an infringement suit against the government

Answer 405

A

A payment made by one party (the licensee to another that owns a particular asset (the licensor) for the right to ongoing use of that asset

Royalties must be: *Reasonable
* Proper
* Consistent with government patent rights

The contracting officer makes this determination by obtaining royalty information from prospective contractors

Al information about royalties shall be provided to the office having cognizance of patent matters for the contracting agency

Royalty information must be provided for subcontractors fi ti is required for the prime contract

Answer 406

A

The legal right to control and dispose of property

Generally, a contractor may retain title to an invention made under a federal contract, except:
* If the contractor has no place of business in the United States
* In exceptional circumstances, fi the agency determines it to be in the best interest of the government
* To protect foreign intelligence or counterintelligence activities, or certain military and weapons programs
* Pursuant to statute or in accordance with agency regulations

Answer 407

A

Nonexclusive,

Nontransferable,

Irrevocable,

Paid-up license

To practice (use) any subject invention

Or have the invention practiced on its behalf,

Throughout the world.

Answer 408

A

The right of an agency to require a contractor to grant a non-exclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant or applicants, with respect to any invention of the contractor conceived or first actually reduced to practice in the performance of work under a government contract in which the contractor has acquired title

fI the contractor refuses such a request, the agency is granted a license fi the agency determines that such action is necessary.

Answer 409

A

Rights to use, duplicate, release, or disclose technical data or computer software in whole or in part in any manner and for any purpose and to have or permit others to do so

Except for copyrighted works, the government acquires unlimited rights in:
* Data first produced in the performance of a contract
* Except minor modifications to limited rights data or restricted
computer software

Except for copyrighted works, the government acquires unlimited rights in:
* Form, fit, and function data delivered under contract

Except for copyrighted works, the government acquires unlimited rights in:
* All other data delivered under the contract other than limited rights data or restricted computer software.

Answer 410

A

The rights to use, duplicate, or disclose technical data in whole or in part, by or for
the government, with the express written permission of the party furnishing the technical data

Enables the contractor to protect qualifying limited rights data and restricted computer software by withholding the data from the government and instead delivering form, fit, and function data

Answer 411

A

Publishing information concerning an invention before a patent application is filed on a subject invention may create a bar to a
valid patent.

To avoid this bar, agencies may withhold information from the public that discloses any invention in which the government
owns or may own a right, title, or interest.

Agencies shall not restrict the publication or release of the results of unclassified basic or applied research performed under contract with universities or colleges.

Agencies may place limitations or restrictions on the contractor’s exercise of its rights in any other data first produced ni the performance of a contract.

The government may reject any
such data delivered to it that is incorrectly marked.

Answer 412

A

the government will not refuse to award a contract on the grounds that the prospective contractor may infringe a patent.

The government may authorize and consent to the use of inventions in the performance of certain contracts, even though the inventions may be covered by U.S. patents.

Generally, contractors providing commercial items should indemnify the government against liability of the infringement of U.S. patents. The government recognizes rights in data developed at private expense and limits its demands for delivery of that data. When such data is delivered, the government will acquire only those rights essential to its needs.

The government requires that contractors obtain permission from copyright owners before including copyrighted works, owned by others, in data to be delivered to the government.

Answer 413

A

authorization prior to use of the patented technology. However, NAFTA provides that this requirement for authorization may be waived in situations of national emergency or other circumstances of extreme urgency, or for public noncommercial use. Section 6 of Executive Order 12889, “Implementation of the North AmericanFree Trade Act,” of December 27, 1993, waives the requirement to obtain advance authorization for an invention used or manufactured by or for the federal government.

Answer 414

A

Data first produced in the performance of a contract (except to the extent the data constitute minor modifications to data that are limited rights data or restricted computer software);

Form, fit, and function data delivered under contract;

Data (except as may be included with restricted computer software) that constitute manuals or instructional and training material for installation, operation, or routine maintenance and repair of items, components, or processes delivered or furnished for use under a contract; and

All other data delivered under the contract other than limited rights data or restricted computer software. (FAR 27.404-2)

The basic clause at FAR 52.227-14, Rights in Data-General, enables the contractor to protect qualifying limited rights data and restricted computer software by withholding the data from the government and instead delivering form, fit, and function data.

Answer 415

A

Requirements for rigorous testing and qualification of systems (FAR 34.102).

Use of industrial resources developed under Title III of the Defense Production Act (FAR 34.103).

Comprehensive testing protocols to ensure system reliability and performance (FAR 34.102(a)).

Procedures for qualification to verify compliance with specifications (FAR 34.102(b)).

Answer 416

A

Use of EVMS to track performance, schedule, and cost objectives (FAR 34.202).

Requirements for integrating EVMS into the acquisition process (FAR 34.203).

Guidelines for implementing EVMS in major system acquisitions (FAR 34.204).

Specific requirements for contractors to use EVMS (FAR 34.205).

Answer 417

A

Full-scale development contracts provide for the contractors to submit priced proposals for production that are based on latest quantity, schedule, and logistics and other considerations used in making production decisions

Full production awarded fi agency head
- Reaffirms the mission need and program objectives; and
- Grants approval to proceed with production

Pay for any testing and qualifications required to incorporate industrial resources under Title III

Contractors forward requests ot contracting officer ot evalute and determine whether the Title Il industrial resource is being or potentially may be used

Contracting officer determines whether major systems in
production, remaining quantities to be acquired are sufficient to justify incurring the cost of testing and
qualifications

Answer 418

A

part is a market condition that exists when two or more contractors, acting independently, actively contend for the government business in a manner that ensures that the government will be offer the lowest cost or price alternative or best technical design meeting its minimum needs.

Answer 419

A

“describe the nature of the need in terms of mission capabilities required, without reference to any specific systems to satisfy the need;

“indicate and explain when appropriate,
the schedule,
capability, and cost objectives and any known constraints in the acquisition;

provide, or indicate how access can be obtained to, all government data related to the acquisition;
include selection requirements consistent with the acquisition strategy;
clearly state that each offeror or is free to propose its own technical approach, main design features, subsystems, and alternatives to schedule, cost, and capability goals; and

*include of an earned value management system that complies with the guidelines of Electronic Industries Alliance Standard 748.

Answer 420

A

any testing and qualification required for the use or incorporation of the industrial resources manufactured or developed with assistance provided under Title III of the Defense Production Act of 1950.

Answer 421

A

a structured approach toward managing major acquisitions by creating visibility through Integrated Baseline Reviews and frequent reporting of schedule, cost, and resource concerns affecting the major acquisition.

Answer 422

A

the ability of the project’s technical plan to achieve the objectives of the scope of work;
adequacy of the time allocated for performing the defined tasks successfully achieve the project schedule objectives;
ability of the performance measurement baseline (PMB) to successfully execute the project and attain cost objectives, recognizing the relationship between budget resources, funding, schedule, and scope of work;
availability of personnel, facilities, and equipment when required, to perform the defined tasks needed to execute the program successfully; and
the degree to which the management process provides effective and integrated technical/schedule/cost planning and baseline control.

Answer 423

A

Research and development (R&D) contracts are
contracts for basic research, applied research, or development

Basic research
* Research that is directed toward increasing knowledge

Applied research
* Research that is directed toward improving or expanding new scientific discoveries, technologies, materials, processes, or technique

Development
* Directed production of, or improvements in, useful products to meet specific performance requirements through the systematic application of scientific
knowledge

Answer 424

A

The primary purpose of contracted R&D programs is to advance scientific and technical knowledge and apply that knowledge to the extent necessary to achieve agency and national goals

Most R&D contracts are directed toward objectives for which the work or methods cannot be precisely described in advance.
It is difficult to judge the probability of success or required effort for technical approaches, which may not assure full success.

Answer 425

A

Fixed-price contracts are preferred only to the extent
practicable, considering: * Goals
* Objectives
* Specifications * Cost estimates
The type of contract wil depend on how precisely these can be defined

Cost-reimbursement contracts are usually appropriate because of:
*Absence of precise specifications
* Difficulty in accurately estimating costs * Lack of confidence in cost estimates
The nature of development work often requires a cost-reimbursement completion arrangement.

Answer 426

A

A statement of the area of exploration, tasks
to be performed, and objectives of the research or development effort

Background information helpful to a clear understanding of the objective or requirement
(e.g., any known phenomena, techniques, methodology, or results of related work)

Information on factors such as personnel,
environment, and interfaces that may constrain the results of the effort

Reporting requirements and information on any additional items that the contractor is required to
furnish (at specified intervals) as the work progresses

The type and form of contract contemplated by the government and, for level-of-effort work statements, an estimate of applicable professional and technical effort involved

Any other considerations peculiar to the work to
be performed; for example, any design-to-cost requirements

Answer 427

A

The contractor must not subcontract technical or scientific work without the contracting officer’s advance knowledge

The contracting officer shall obtain complete information concerning the contractor’s plans for subcontracting any
portion of the experimental, research, or development effort during the negotiation of cost-reimbursement type contracts.

Answer 428

A

A general announcement of an agency’s research interest including criteria for selecting proposals and soliciting the participation of all offerors capable of satisfying the government’s needs

May be used by agencies to fulfill their requirements for
scientific study and experimentation directed toward advancing the states of the art or increasing knowledge or understanding
rather than focusing on a specific system or hardware solution

Shall only be used when meaningful proposals with varying
technical or scientific approaches can be reasonably anticipated

Proposals received are evaluated ni accordance with specified criteria through a peer or scientific review process

Written evaluation reports on individual proposals wil be necessary, but proposals are not evaluated against each other

Proposals shall be selected based on:
* Technical evaluation
* Importance to agency programs
* Availability
* Cost realism only to the extent appropriate
* Cost reasonableness only to the extent appropriate

Answer 429

A

describe their technical and management approach, identify technical uncertainties, and make specific proposals for the resolution of any uncertainties.

Answer 430

A

that language suitable for a level-of-effort approach, which requires the furnishing of technical effort and a report on the results, is not intermingled with language suitable for a task-completion approach, which often requires the development of a tangible end item designed to achieve specific performance characteristics.

The wording of the work statement should also be consistent with the type and form of contract to be negotiated.

For example, the work statement for a cost-reimbursement contract promising the contractor’s best efforts for a fixed term would be phrased differently than a work statement for a cost-reimbursement completion contract promising the contractor’s best efforts for a defined task.

Differences between work statements for fixed-price contracts and cost-reimbursement contracts should be even clearer.

Answer 431

A

36.1 General

36.2 Special Aspects of Contracting for Construction

36.3 Two-Phase Design-Build Selection Procedures

36.5 Contract Clauses

36.6 Architect-Engineer Services

36.7 Standard and Optional Forms for Contracting for Construction, Architect- Engineer Services, and Dismantling, Demolition, or Removal of Improvements

Answer 432

A

Phase One: Evaluation of technical approach and qualifications (FAR 36.302).

Phase Two: Evaluation of detailed technical and price proposals (FAR 36.303).

Answer 433

A

Contracting officers shall acquire construction using sealed bid procedures for construction contracts performed in the United States fi the conditions in
6.401(a) apply.

Contracting officers shall acquire architect-engineer services by negotiation, and select sources in
accordance with applicable law, Subpart 36.6, and agency regulations.

Answer 434

A

Less than $25,000
Between $25,000 and $100,000

Between $100,000 and $250,000

Between $250,000 and $500,000

Between $500,000 and $1,000,000

Between $1,000,000 and $5,000,000

Between $5,000,000 and $10,000,000

More than $10,000,000

Answer 435

A

Generally, firm-fixed-price contracts shall be used to acquire construction.
They may be priced:
* On a lump-sum basis
* Alump sum is paid for the total work or defined parts of the work
* On a unit-price basis
* Aunit price is paid for a specified quantity of work units
* Using a combination of these two methods

Fixed-price contracts with economic price adjustment may be used if:
* Such a provision is customary ni contracts for the
type of work being acquired, or
* When omission of an adjustment provision would
preclude a significant number of firms from
submitting offers or would result in offerors including unwarranted contingencies in proposed prices.

Answer 436

A

Design
* Defining the construction requirement
(including the functional relationships and technical systems to be used, such as architectural, environmental, structural,
electrical, mechanical, and fire protection), producing the technical specifications and drawings, and preparing the construction cost estimate

Design-bid-build
* The traditional delivery method where design and construction are sequential and contracted for separately with two contracts and two contractors

Design-build
* The combination of design and construction ni a single contract with one contractor
This type of partnership can reduce time, yield better construction cost estimates and therefore save money, provide stronger guarantees, and allocate additional project risk to the private sector.

Answer 437

A

Subsurface or latent physical conditions at the site which differ materially from those indicated in this contract; or

Unknown physical conditions at the site, of an unusual nature, which differ materially from those ordinarily encountered and generally recognized as inherent in work of the character provided
for in the contract

fI differing site conditions cause an increase or decrease in the contractor’s cost, or the time required for performance, an equitable adjustment shall be made and the contract modified in writing

Answer 438

A

Services which include professional services of an architectural or engineering nature that are required to be performed or approved by a person licensed,
registered, or certified to provide such services

Associated with research, planning, development, design, construction, alteration, and repair of real property; and other related professional services, such as studies and surveys

Answer 439

A

An architect-engineer evaluation board is established, composed of people who, collectively, have experience in architecture, engineering, construction, and government and related acquisition matters.

Members shall be appointed from among highly qualified professional employees of the agency or other agencies, and private practitioners of architecture, engineering, or related professions.

The selection authority (designated by Head of Agency) shall review the recommendations of the evaluation board and shall, with the advice of appropriate technical and staff representatives, make the final selection

Al firms on the final selection list are considered “selected firms” with
which the contracting officer may negotiate in accordance with FAR Subpart 36.606.

Answer 440

A

SF 1442
Solicit and award construction contracts over SAT

OF 347
For construction contracts below the SAT

SF 252
For fixed-price AE services in the U.S.

Answer 441

A

be prepared and furnished to the contracting officer for each proposed contract and contract modification anticipated to exceed the simplified acquisition threshold.

Advance notices and solicitations shall state the magnitude of the requirement in terms of physical characteristics and estimated price range.

In no event shall the statement of magnitude disclose the government’s estimate.

Answer 442

A

37.1 Service Contracts—General

37.2 Advisory and Assistance Services

37.3 Dismantling, Demolition, or Removal of Improvements

37.4 Nonpersonal Health Care Services

37.5 Management Oversight of Service Contracts

37.6 Performance-Based Acquisition

Answer 443

A

preferred method for acquiring services.

Use performance-based acquisition methods
to the maximum extent practicable, except for architect-engineer, construction, utility
services, or services that are incidental to supply purchases.

Answer 444

A

1 A firm-fixed price performance-based contract or task order

2 A performance-based contract or task order that is not firm-fixed price

3 A contract or task order that is not performance-based

Answer 445

A

A contract under which the personnel rendering the services are subject, either by the contract’s terms or by the manner of its administration, to the supervision and control usually prevailing in relationships between the government and its employees

A personal services contract is characterized by the
employer-employee relationship it creates between the government and the contractor’s personnel.

The government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws.

Obtaining personal services by contract, rather than by direct hire, circumvents those laws unless Congress has specifically authorized
acquisition
of the services by contract.

Agencies shall not award personal services contracts unless specifically authorized by statute (e.g., 5 U.S.C.3109) to do so.

Answer 446

A

Those services provided under contract by nongovernmental sources to support or improve organizational policy development, decision-making, management and administration, program and/or project management and administration, or research and development activities

The furnishing of professional advice or assistance rendered to improve the effectiveness of federal management processes or procedures (including those of an engineering and technical nature)

Answer 447

A

to either the Service
Contract Labor Standards statute (Service Contract Act)

or the Construction Wage Rate Requirements
statute (Davis-Bacon Act).

If the contract is solely for dismantling, demolition, or removal of improvements, the Service Contract Labor Standards statute applies unless further work which will result in the
construction, alteration, or repair of a public building or public work at that location is contemplated.

Answer 448

A

A contract under which the personnel rendering the services are not subject, either by the contract’s terms or by the manner of its administration, to the supervision and control usually prevailing in relationships between the government and its employees.

Answer 449

A

as a result of either the contract’s terms or the manner of its administration during performance, contractor personnel are subject to the relatively continuous supervision and control of a government officer or employee.

Each contract arrangement must be judged in the light of its own facts and circumstances, the key question always being:

Will the government exercise relatively continuous supervision and control over the contractor personnel performing the contract?

Answer 450

A

Performance on the government’s site;

Principal tools and equipment furnished by the government;

Services are applied directly to the integral effort of agencies or an organizational subpart in furtherance of an assigned function or mission;

Comparable services meeting comparable needs are performed in the same or similar agencies using civil service personnel;

The need for the type of service provided can reasonably be expected to last beyond one year; and

Answer 451

A

may contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the term does not exceed one year.

Answer 452

A

If the contract is solely for dismantling, demolition, or removal of improvements, the Service Contract Labor Standards statute applies unless further work that will result in the construction, alteration, or repair of a public building or public work at that location is contemplated.

If such further construction work is intended, even though by separate contract, then the Construction Wage Rate Requirements statute applies to the contract for dismantling, demolition, or removal.

Answer 453

A

Emphasizes the importance of strategic planning and management in IT
acquisitions (FAR 39.102).

Requires adherence to federal IT standards and guidelines (FAR 39.103).

Answer 454

A

The hardware and software operated by a federal agency, a contractor of a federal agency, or other organization that processes information on behalf of the federal government to accomplish a federal function, regardless of the technology involved, whether computers, telecommunications, or others

Any equipment or interconnected system or subsystem of equipment that is used
ni the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the executive agency

Includes computers, ancillary equipment, software, firmware, services, and related resources

Answer 455

A

OMB Circular A-130
Security of resources
Protection of privacy
National security
Emergency preparedness
Accommodation of disabilities
Energy efficiency

NOTE: Contracting officers shall
not procure or obtain, extend or renew a contract or enter into a
contract for any equipment,
system, or service that uses covered telecommunications
equipment or services as defined in FAR 4.101.

Answer 456

A

Any telecommunications or information system operated by the United States government, the function, operation, or use of which

Involves intelligence activities
Involves cryptologic activities related to national security * Involves command and control of military forces
Involves equipment that is an integral part of a weapon or weapons system; or * Is critical to the direct fulfillment of military or intelligence missions

FAR Part 39 does not apply to acquisition of TI for national security systems

Answer 457

A

Schedule risk
Risk of technical obsolescence
Cost risk
Risk implicit in contract type
Technical feasibility
Dependencies on or of other systems
Number of simultaneous projects
Availability of funding
Program management risk

Answer 458

A

Privacy Act of 1974
No agency shall disclose any record which is contained in a system
of records by any means of communication to any person, or to another agency, except pursuant to a written request by, or with the prior written consent of, the individual to whom the record pertains

Answer 459

A

Section 5 0 8 Accessibility Program
https://www.section508.gov/

Agencies must ensure that federal employees with disabilities have access to and use of information and data, and

Members of the public with disabilities seeking information or services from an agency have access to and use of information and data

Answer 460

A

means any telecommunications or information system operated by the U.S. government, the function, operation, or use of which involves intelligence activities; cryptologic activities related to national defense, command, and control of military forces; equipment that is an integral part of a weapon system; or is critical to the direct fulfillment of military or intelligence missions.

Agencies shall ensure that contracts for information technology address protection of privacy in accordance with the Privacy Act.

Answer 461

A

analyze risks, benefits, and costs. Reasonable risk-taking is appropriate if risks are controlled and mitigated.

Types of risk may include schedule risk, risk of technical obsolescence, cost risk, risk implicit in a particular contract type, technical feasibility, dependencies between a new project and other projects or systems, the number of simultaneous high-risk projects to be monitored, funding availability, and program management risk.

Appropriate techniques should be applied to manage and mitigate risk during the acquisition of information technology.

Answer 462

A

comply with common or commercially acceptable information technology standards when available and appropriate and shall conform to the agency’s master information technology architecture.

Additionally, the performance requirements of each increment should be consistent with the performance requirements of the completed, overall system within which the information technology will function and should address interface requirements with succeeding increments.

For each increment, contracting officers shall choose an appropriate contracting technique that facilitates the acquisition of subsequent increments. Contracts shall be structured to ensure that the government is not required to procure additional increments.

Answer 463

A

equal access to technology as nondisabled members of the public and employees.

This requirement does not apply if the electronic and information technology (EIT) is a micro-purchase; is for a national security system;
is acquired by a contractor incidental to a contract; is in spaces frequented only by service personnel for maintenance, repair, or occasional monitoring of equipment; or would impose an undue burden on the agency.

Answer 464

A

Utility sold by another
Federal agency

Cable television &telecommunications

Natural or manufactured gas

Utility service in foreign countries

Rights in real property

Third part financed shared-savings projects

Answer 465

A

Provision of the utility service capacity

Energy

Water

Quality assurance

System reliability

System operation and maintenance

Sewage Metering

Transportation Billing

Answer 466

A

GSA enters into areawide contracts for use by Federal Agencies to provide a pre-established contractual vehicle for ordering utility services

Full search engine at GSA.gov

Answer 467

A

a contract entered into between the General Services Administration
(GSA) and a utility service supplier to cover utility service needs of federal agencies within the franchise territory of the supplier.

Answer 468

A

a utility services contract (other than a GSA areawide contract, an Authorization under an areawide contract, or aninteragency agreement), to cover the acquisition of utility services.

Answer 469

A

a contingent government obligation to pay a utility supplier the unamortized portion of a connection charge and any other applicable nonrefundable service charge as defined in the contract in the event the government terminates the contract before the cost of connection facilities has been recovered by the utility supplier.

Answer 470

A

requiring utility service contracts for periods over one year, but not exceeding 10 years, may request a delegation of authority from GSA.
In keeping with its statutory authority, GSA will, as necessary, conduct reviews ofensure compliance with the terms of the delegation and applicable laws and regulations.delegated agencies’ acquisitions of utility services to

Answer 471

A

the simplified acquisition threshold, agencies are required to acquire utility services by a bilateral written contract, with required clauses (see 41.501), regardless of whether rates or terms and conditions of service are fixed or adjusted by a regulatory body.

Prior to acquiring electric utility services on a competitive basis, the contracting officer must determine that the competition is not inconsistent with state law governing the provision of electric utility services.

Answer 472

A

order utility services. Agencies may order utility service at rates approved and/or established by a regulatory body or agencies may negotiate other rates and terms and conditions of service with the supplier.

Answer 473

A

service is available from more than one supplier in which case a competitive acquisition is required; and

the head of contracting activity (HCA) or designee determines that use of the areawide contract is not advantageous to the government.

Answer 474

A

The number of available suppliers.
Any special equipment, service reliability, or facility requirements and related costs.
The utility supplier’s rates, connection charges, and termination liability.
Total estimated contract value (including costs in paragraphs (b)(2) and (3) of this subsection).
Any technical or special contract terms required.
Any unusual characteristics of services required.
The utility’s wheeling or transportation policy for utility service.

Answer 475

A

interagency agreements (e.g., consolidated purchase, joint use, or cross-service agreements) when acquiring utility services or facilities from other government agencies. These agreements must comply with the policies and procedures of The Economy Act (see 17.502-2).

Answer 476

A

4.1 Contract Execution
4.2 Contract Distribution
4.3 Paper Documents
4.4 Safeguarding Classified Information Within Industry
4.5 Electronic Commerce in Contracting
4.6 Contract Reporting
4.7 Contractor Records
4.8 Government Contract Files
4.9 Taxpayer Identification Number Information
4.10 Uniform Use of Line Items
4.11 System for Award Management
4.12 Representations and Certifications
4.13 Personal Identity Verification
4.14 Reporting Executive Compensation and First-Tier Subcontract Awards
4.16 Unique Procurement Instrument Identifiers
Covered Contractor Information Systems
4.20 Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by aspersy Lab
4.21 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment
Retention
4.17 Service Contracts Inventory
4.18 Commercial and
Government Entity Code
4.19 Basis Safeguarding of

Answer 477

A

The contracting officer’s name and official title shall be printed on the contract.

The contracting officer signs the contract after it has been signed by the contractor.

Only the contracting officer is authorized to sign a contract on behalf of the government!

The type of signatory required depends on the type of legal entity involved.
-Individual: Contract signed by that individual
-Partnership: Contract signed with the name of the partnership
-Corporation: An individual authorized to bind the corporation, with the corporate name and “by”
-Joint venture: Any combination of individuals, partnershios, or corporations

Answer 478

A

Prospective contractors shall be registered in the SAM database prior to award of a contract or agreement, except for:

SAM

-Purchases that use a
government-wide commercial purchase card as both the
purchasing and payment mechanism

-Classified contracts when
registration in the SAM database, or use of SAM data, could compromise the safeguarding of classified information or national security

-Contracts awarded by deployed contracting officers in the course of
military
operation or contracting officers in the conduct of emergency operations

-Contracts to support unusual or compelling needs

Awards made to foreign vendors for work performed outside the
United States, fi it is impractical to obtain SAM registration

-Micro-purchases that do not use
the electronic funds transfer (EFT) method for payment and
are not required to be reported

Answer 479

A

When contract performance requires
routine access to a federally controlled facility or information
system, a contractor may be required
to implement policies for personal identity verification.

Guidance for these policies will be
provided by the Office of Management and Budget.

Answer 480

A

Contractors are required to report subcontractor award data and the total compensation of the five most highly compensated individuals of the contractor and subcontractor.

This requirement applies to all contracts with a value of
$30,000 or more

Answer 481

A

Procurement Instrument IDentifier
Identifies a solicitation or government action
Is unique government-wide
Identifies solicitation or contract action within the SAM
database, FPDS, and other reporting systems

Answer 482

A

report data to the Federal Procurement Data Center (FPDC), which collects, processes, and disseminates official statistical data on federal contracting.

All federal contract award data must be made public. Executive agencies shall use FPDS to maintain publicly available information about all unclassified contract actions exceeding the micro-purchase threshold, and any modifications to those actions that change previously reported contract action report data, regardless of dollar value (FAR 4.603).

Answer 483

A

increase visibility of vendor sources (including their geographical locations) for specific supplies and services and establish a common source of vendor data for the government. Generally, contractors must be registeredin the SAM prior to contract award. Specific exceptions and guidance are contained within this subpart.

Answer 484

A

the administrative burden for contractors of submitting the same information to various contracting offices and establish a common source for this information to procurement offices across the government. SAM is the one common source for contractors submitting and maintaining representations and certifications.

Contractors shall update the representations and certifications submitted to SAM as necessary, but at least annually, to ensure they are kept current, accurate, and complete.

Answer 485

A

a solicitation or contract action is unique governmentwide and will remain so for at least 20 years from the date of contract award. The PIID shall be used to identify all solicitation and contract actions.

The PIID shall also be used to identify solicitation and contract actions in designated support and reporting systems (e.g., Federal Procurement Data System, System for Award Management), in accordance with regulations, applicable authorities, and agency policies and procedures.

Answer 486

A

Defense articles or services included on the US
Munitions List;
Items included on the Commerce Control List controlled for reasons of national security, chemical and biological weapons proliferation, nuclear nonproliferation, or missile technology; or reasons relating to regional stability or surreptitious listening
Specially designed and prepared nuclear equipment, parts and components, materials, software, and technology relating to assistance to foreign atomic energy activities)
Nuclear facilities, equipment, and material relating to export and import of nuclear equipment and material
Select agents and toxins covered by the Code of Federal Regulations; or
Emerging and foundational technologies controlled pursuant to the Export Control
Reform Act of 2018.

Answer 487

A

29.1 General
29.2 Federal Excise Taxes
29.3 State and Local Taxes
29.4 Contract Clauses

Answer 488

A

Procedures for excluding federal excise taxes from contract prices (FAR 29.202).
Guidelines for obtaining tax exemptions or refunds (FAR 29.203).

Answer 489

A

motor vehicle articles tires inner tubes gasoline lubricating oils etc. other are some special fuels excise tax that are imposed at the retail level and diesel and special motor fuels.

Questions arising in this area should be directed to the agency designated counsel.

Answer 490

A

when it is known that the government is exempt from these taxes and on a tax inclusive basis when no exemption exists, FAR part 29.202 and 29.203 provide further explanation of exemptions.

Answer 491

A

as taxation is a legal matter consultation with the agency designated counsel is advised. When possible, where exemptions do exist the contracting officer shall take maximum advantage.

Two notable exceptions to this are the states of North Carolina and New Mexico.

Answer 492

A

there are state and local laws that might provide exemptions to taxation based on a contract with the federal government.

In such cases consultation with the designated agency counsel is required.

Contractors are encouraged to seek nontaxable transaction exemptions for purchases or subcontracts that are for resale to the federal government to avoid double taxation.

Answer 493

A

special contract terms and conditions, applicable in the of the state local tax, location of use particularly of equipment, and even refunds it.

Where exemptions are available, there must be evidence of exception and the then furnishing proof of exemption.

Answer 494

A

30.1 General

30.2 CAS Program Requirements

30.6 CAS Administration

Answer 495

A

Federal standards designed to provide a consistency and coherency in defense and other government contract accounting

Answer 496

A

An independent board within OFPP

Five members:
* OFPP Administrator
* Two government members (one from DOD, one from GSA) * One person from private industry
* One person from accounting

Answer 497

A

Printed in title 48 of the Code of Federal Regulations, Chapter 99, and incorporated by reference ni FAR Part 30

41 U.S.C. 422 requires certain contractors and subcontractors
ot comply with CAS and ot disclose ni writing and folow consistently their cost accounting practices

Answer 498

A

Awarded using sealed bidding procedures;
Below the threshold for Truthful Cost or Pricing Data;
With small businesses or foreign governments;
In which the price is set by law or regulation;
For commercial items, fi using FFP, FFP with economic price adjustment, time-and-materials, or labor-hour pricing;
Under $7.5 million, fi
the contractor is not
performing any
CAS-covered contracts valued at $7.5 million or greater; or
Awarded without submission of cost or pricing data

Answer 499

A

Requires that the contractor comply with all CAS in effect on the date of award and any CAS that become applicable because of a later award

Applies to contractors receiving $50 million or more in
CAS-covered awards, either as a single award or net awards during its preceding cost accounting period

Answer 500

A

Requires that the contractor comply only with certain CAS

May be applied to a covered contract of less than $50 million awarded to a contractor that received less than $50 million in net CAS-covered awards in the immediately preceding cost accounting period.

Answer 501

A

The value is less than $15 million

The segment of the contractor is primarily engaged ni the sale of commercial items and
has no CAS-subject contracts

OR

The agency head determines and
documents in writing that exceptional circumstances require
a waiver of CAS to meet agency needs

Answer 502

A

Contractors and subcontractors awarded contracts or subcontracts
exceeding the $50 million threshold *

Contractors and subcontractors
whose net CAS-covered awards exceed $50 million in the most recent accounting period

Answer 503

A

General information
Direct costs
Direct vs indirect costs
Indirect costs
Depreciation and capitalization

*Other costs and credits

Deferred compensation and insurance
Home office expenses

Answer 504

A

The contracting officer assigned by the cognizant federal agency to administer the CAS

Responsible for determining that any disclosure statement is adequate and compliant

The contracting officer shall not award a CAS- covered contract until the CFAO has made this
determination in writing

Responsible for performing CAS administration for al contracts and subcontracts ni a business unit notwithstanding retention of other administration functions by the contracting officer

Within 30 days after award of a CAS-covered contract or subcontract, the contracting officer, contractor, or subcontractor making the award shall request the CFAO to perform administration

Answer 505

A

The contract or subcontract value is less than the threshold prescribed in FAR 30.201-5(b)(1), and the segment of the contractor or subcontractor that will perform the contract or subcontract is primarily engaged in the sale of commercial items and has no contracts or subcontracts that are subject to CAS; or

Exceptional circumstances exist whereby a waiver of CAS is necessary to meet the needs of the agency. Exceptional circumstances exist only when the benefits to be derived from waiving the CAS outweigh the risk associated with the waiver. The determination that exceptional circumstances exist must be set forth in writing and include a statement of the specific circumstances that justify granting the waiver.

Answer 506

A

The contractor may unilaterally change its disclosed or established cost accounting practices, but the government shall not pay any increased cost, in the aggregate, as a result of the unilateral change.

Answer 507

A

42.1 Contract Audit Services
42.2 Contract Administration Services
42.3 Contract Administration Office Functions
42.4 Correspondence and Visits
42.5 Postaward Orientation
42.6 Corporate Administrative Contracting Officer
42.7 Indirect Cost Rates
42.8 Disallowance of Costs
42.9 Bankruptcy
42.11 Production Surveillance and Reporting
42.12 Novation and Change-of-Name Agreements
42.13 Suspension of Work, Stop-Work Orders, and Government Delay of Work
42.15 Contractor Performance Information
42.16 Small Business Contract Administration
42.17 Forward Pricing Rate Agreements

Answer 508

A

Agencies requiring field contract administration or audit
services are encouraged to use existing cross-servicing agreements for the audit of costs incurred under contracts of two or more agencies being performed at the same business entity.

When an interagency agreement is established, the agencies are encouraged to consider establishing procedures for the
resolution of issues that may arise under the agreement

Answer 509

A

Submit information and advice on the contractor’s financial and accounting records or other related data as to the acceptability of the
contractor’s incurred and estimated costs,
Review financial and accounting aspects of the contractor’s control systems, and
Perform other analyses and reviews that require access to the
contractor’s financial and accounting records supporting proposed and incurred costs.

Answer 510

A

The Contract Administration Office’s functions are listed in FAR 42.302(a).

The CAO may also perform functions delineated in FAR 42.302(b) when authorized by the contracting office.

Contract administration functions not listed in FAR 42.302 remain the responsibility of the contracting office.

Answer 511

A

The type, value, and extent of the contract;
The complexity and acquisition history of the product or service;
Requirements for additional parts or equipment;
Urgency of delivery schedule and relationship of the product or service to critical programs;
The contractor’s past performance and status as a small business eligible for set-asides.

Answer 512

A

Contractors with more than one operating location often have corporate-wide policies/procedures requiring government review and approval.

The Corporate Administrative Contracting Officer is appointed to deal with corporate management and to perform selected contract administration functions on a corporate-wide basis.

Answer 513

A

Determination of final indirect cost rates for cost- reimbursement contracts,
Establishment of advance agreements on corporate or home office expense allocations, and
Administration of Cost Accounting Standards applicable to the corporate level.

Answer 514

A

to determine contractor progress and identify and factors that may cause delay.

The contractor is responsible for timely contract performance.

The government will maintain surveillance of contractor
performance as necessary to protect its interests.

Answer 515

A

for a reasonable period of time.

Stop Work Orders are used fi it is advisable to suspend work pending a decision by the government, and a supplemental agreement providing for the suspension si not feasible.

Government Delay of Work does not
authorize the contracting officer to order a suspension, delay, or interruption of work, nor is ti to be used as the basis of such an order.

Answer 516

A

The government and the contractor agree to use certain rates
or indices for a specified future period of time in pricing contracts or contract modifications.

Establishment of a Forward Pricing Rate Agreement will be determined by the cognizant contract administration agency.

The government and the contractor agree to use certain rates
or indices for a specified future period of time in pricing contracts or contract modifications.

Answer 517

A

The government and the contractor agree to use certain rates
or indices for a specified future period of time in pricing contracts or contract modifications.

Establishment of a Forward Pricing Rate Agreement will be determined by the cognizant contract administration agency.

The government and the contractor agree to use certain rates
or indices for a specified future period of time in pricing contracts or contract modifications.

Answer 518

A

than one agency through the use of interagency agreements.

Subject to the fiscal regulations of the agencies and applicable interagency agreements, the requesting agency shall reimburse the servicing agency for rendered services in accordance with the Economy Act (31 U.S.C. 1535).

When an interagency agreement is established, the agencies are encouraged to consider establishing procedures for the resolution of issues that may arise under the agreement.

Answer 519

A

submitting information and advice to the requesting activity based on the auditor’s analysis of the contractor’s financial and accounting records or other related data as to the acceptability of the contractor’s incurred and estimated costs; reviewing the financial and accounting aspects of the contractor’s cost control systems; and performing other analyses and reviews that require access to the contractor’s financial and accounting records supporting proposed and incurred costs.

Answer 520

A

final indirect cost rates for each business unit, and these rates shall be binding on all agencies and their contracting offices unless otherwise specifically prohibited.

Final indirect cost rates shall be used for contract closeout unless the quick-closeout procedure is used.

In general, no proposal shall be accepted or agreement made to establish final indirect cost rates unless the contractor has certified the costs.

Answer 521

A

suspension of work for a reasonable period of time under a construction or architectural and engineering contract.

Stop-work orders are generally issued only if it is advisable to suspend work pending a decision by the government and a supplemental agreement is not feasible.

Stop-work orders are applicable to any negotiated fixed-price or cost-reimbursement supply, research, development, or service contract. Issuance ofa stop-work order is approved at a level higher than the contracting officer.

Government delay of work does not authorize the contracting officer to order a suspension, delay, or interruption of work; and it is not to be used as the basis or justification of such an order.

Answer 522

A

time the work under the contract or order is completed.

The content of the evaluations should be tailored to the size, content, and complexity of the contractual requirements.

Past performance evaluations shall be prepared for each construction contract in accordance with FAR 42.1502 and FAR 42.1502.(f) for each architect-engineer services contract or more as well as any contract terminated for default.

Past performance evaluations shall not be done on contracts awarded under subpart 8.7. Past performance evaluations are required for all other contracts and orders greater than the SAT.

In addition, agencies are required to prepare an evaluation if a modification to the order causes the dollar amount to exceed the SAT.

Answer 523

A

CARS.

The contractor will receive a CPARS-system generated notification when an evaluation is ready for comment.

Contractors shall be afforded up to 14 calendar days from the date of notification of availability of the past performance evaluation to submit comments, rebutting statements, or additional information; refer to FAR 42.1503(d).

Agencies shall use the past performance information in
CPARS that is within three years (six for construction and architect-engineer contracts) of the completion of performance of the evaluated contract or order, and information contained in the Federal Awardee Performance and Integrity Information System (FAPIIS), e.g., terminations for default or cause.

Answer 524

A

Issues a final determination that a contractor has submitted defective cost or pricing data;

Makes a subsequent change to the final determination concerning defective cost or pricing data;

*Issues a final termination for cause or default notice;

Makes a subsequent withdrawal or a conversion of a termination for default to a termination for convenience; or
Receives a final determination after an administrative proceeding, in accordance with FAR 22.1704(d)(1), that substantiates an allegation of a violation of the trafficking in persons prohibitions.

Answer 525

A

Defines the responsibilities of prime contractors in managing subcontracts (FAR
44.102).
Emphasizes the need for prime contractors to ensure subcontractor compliance with contract requirements (FAR 44.103).

Answer 526

A

Approved purchasing system
Consent is only required for
a subcontract identified by the contracting officer ni the subcontracts clause of the contract.

No approved purchasing system
Consent is required for all subcontracts.

Answer 527

A

Is the decision to subcontract consistent with the contractor’s
approved make-or-buy program, fi any?

Is the subcontract for
special test equipment, equipment, or real property that is available from government sources?

Has the contractor
complied with the prime contract requirements regarding small business subcontracting and purchase from nonprofit agencies

Was adequate price competition obtained or
its absence properly justified?

Did the contractor adequately assess and dispose of subcontractors’ alternate proposals, fi offered?

Has the contractor
performed adequate cost or price analysis or price
comparisons and obtained
certified cost or pricing data and data other than certified
cost or pricing data

Is the proposed
subcontract type
appropriate for the risks involved and consistent
with current policy

Has adequate consideration been
obtained for any proposed subcontract that will involve
the use of government-
provided equipment and real property?

Has the contractor
adequately and reasonably translated
prime contract technical
requirements into subcontract
requirements?

Does the prime contractor
comply with applicable cost accounting
standards for awarding the subcontract

Is the proposed
subcontractor in the System for Award Management Exclusions?

Answer 528

A

The prime contractor’s purchasing system or performance is inadequate
Close working relationships or ownership affiliations between the prime and subcontractor may preclude free competition or result in higher prices
Subcontracts are proposed for award on a non-
competitive basis, at prices that appear unreasonable, or at prices higher than those offered to the government in comparable circumstances
Subcontracts are proposed on a cost-reimbursement, time-and-materials, or labor-hour basis

Answer 529

A

The objective of the CPSR is to evaluate the efficiency an effectiveness with which the contractor spends government funds and I complies with government policy when subcontracting.

The ACO shall determine the need for a CPSR based on, but not limited to, the past performance of the contractor, and the volume, complexity and dollar value of the subcontracts.

Once an initial determination has been made, at least every
three years the ACO shall determine whether a CPSR is
necessary. fI necessary, the cognizant contract administration office will conduct a review.

Answer 530

A

evaluate the efficiency and effectiveness with which the contractor spends government funds and complies with government policy when subcontracting.

The review provides the administrative contracting officer (ACO) a basis for granting, withholding, or withdrawing approval of the contractor’s purchasing system.

The ACO shall determine the need for a CPSR based on, but not limited to, the past performance of the contractor, and the volume, complexity, and dollar value of the subcontracts. If a contractor’s sales tothe government (excluding competitively awarded firm-fixed-price and competitively awarded fixed-price with economic price adjustment contracts and sales of commercial items pursuant to part 12) are expected to exceed $25 million during the next 12 months, perform a review to determine if a CPSR is needed.

Answer 531

A

to incorporate commercial items or nondevelopmental items as components of items delivered to the government to the maximum extent practicable.

Only contract clauses identified at FAR 52.244-6 are required to be in subcontracts for commercial items or commercial components.

Answer 532

A

45.1 General
45.2 Solicitation and Evaluation Procedures
45.3 Authorizing the Use and Rental of Government Property
45.4 Title to Government Property
45.5 Support Government Property Administration
45.6 Reporting, Reutilization, and Disposal

Answer 533

A

Contractor-acquired property
* Property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the government has title

Government-furnished property
* Property in the possession of, or directly acquired by, the government and subsequently furnished to the contractor for performance of a contract

Government property
* Property owned by or leased to the government, or acquired by the government under the terms of the contract
* Includes both government-furnished property and contractor-acquired property

Answer 534

A

Property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the government has title

Answer 535

A

To be in the government’s best interest

That the overall benefit to the acquisition significantly outweighs the increased cost of administration
That providing the property does not substantially increase the government’s assumption of risk
That government requirements cannot otherwise be met

Answer 536

A

The extent, fi any, of contractor liability based upon the amount of damages corresponding to the associated property loss; and

The appropriate form and method of government recovery
(may include repair, replacement, or other restitution

Answer 537

A

Government property shall normally be provided on a rent-free basis in performance of the contract under which it is accountable i
or otherwise authorized

Requests by,
or for the benefit of, foreign governments or international organizations to use government property shall be processed in accordance with agency procedures.

The government retains title to all government-furnished property until properly disposed of, as authorized by law or regulation.

Answer 538

A

is property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the government has title.

Answer 539

A

property in the possession of, or directly acquired by, the government and subsequently furnished to the contractor for performance of a contract.

Answer 540

A

all property owned by or leased to the government or acquired by the government under the terms of the contract. It includes both government-furnished property and contractor-acquired property.

Answer 541

A

property management systems that are separate from a contractor’s established procedures, practices, and systems used to account for and manage contractor-owned property.

Generally, contractors are not held liable for loss of government property under cost-reimbursement, time-and-materials, labor-hour, or fixed-price contracts awarded on the basis of certified cost or pricing data in accordance with FAR 52.245-1, Government Property. Contracts other than those specified should include Alternate I to FAR 52.245-1,

Government Property, which holds the contractor liable for loss of government property, except for reasonable wear and tear in performing the contract.

Answer 542

A

disposed of.

Title vests in the government for all property acquired or fabricated by the contractor in accordance with the contract requirements for passage of title.

Under cost-type and time-and-materials contracts, the government acquires title to all property to which the contractor is entitled to reimbursement.

Answer 543

A

Guidelines for qualifying technologies under the SAFETY Act (FAR 50.202).
Procedures for obtaining liability protections for anti-terrorism technologies (FAR 50.203).

Answer 544

A

Authority for Specific Federal Agencies

Extraordinary contractual relief
* contractual adjustments,
* advance payments
* the exercise of residual powers

Public Law 85-804

Answer 545

A

1.Amendments without consideration

2 . Correcting Mistakes
* A mistake or ambiguity consisting
of the failure to express
* A contractor’s mistake
* A mutual mistake as to a material fact

3 . Formalizing informal commitments

For all three types of
contractual adjustments, COs shouldrefert oFAR5 0a n d
document appropriately

Answer 546

A

to provide policies and procedures to address emergency matters, by providing additional contract authority to include indemnification protections for contractors and standardizing approvals in government.

Answer 547

A

identifying authorities, policies, and procedures required to implement the statute.

As SAFETY Act is about antiterrorism technologies, it provides considerations for prequalification, approval of technology contingent upon Safety Act designation, and award of contract presuming a SAFETY Act designation is forthcoming

Answer 548

A

51.1 Contractor Use of Government Supply Sources
51.2 Contractor Use of Interagency Fleet Management System (IFMS) Vehicles

Answer 549

A

government cost reimbursement contracts;
other types of negotiated contracts when the agency determines that a substantial dollar portion of the contractor’s contracts are of a government cost reimbursement nature; or
a contract under 41 U.S.C Chapter 85 Committee for the Purchase from People Who Are Blind or Severely Disabled provided that the nonprofit agency is providing a commodity or serviceto the federal government and the supplies or services received are directly used in making providing a commodity or service approved by the committee for the purchase from the Committee for the Purchase from People Who Are Blind or Severely Disabled, to the government.

Answer 550

A

the administrative cost of placing orders with government supply sources and the program impact of delay factors, if any.
the lower cost of items available through government supplies sources.
suitability of items
available through
government supply sources.
delivery factors such as cost and time.
recommendations of the contractor.

Answer 551

A

fuel and lubricants;
vehicle inspection, maintenance, and repair;
vehicle storage; and
commercially rented vehicles for short-term

Answer 552

A

determined that the authorization will accomplish the agency’s contractual obligation and effect demonstrable economies;
received evidence that the contractor has obtained a motor vehicle liability insurance covering bodily injury and property damage, with limits of liability is required or approved by the agency, protecting the contractor and the government against third-party claims arising from ownership, maintenance, or the use of and intra-agency fleet management system vehicle (IFMS);
arranged for periodic checks to ensure that authorize contractors are using vehicles and related services exclusively cost-reimbursement contracts;
ensured that contractor shall establish and enforce suitable penalties for their employees use authorize the use of government other than performance government contracts;
received a written statement that the contractor will assume, without rate of reimbursement from the government, cost or expense of any use intra-agency fleet management vehicles and services (IFMS) not related to contract; and
consider any recommendations
of the contractor.

Answer 553

A

Reducing or preventing pollution;
Managing energy and water use in government facilities efficiently;
Using renewable energy and renewable energy technologies;

Acquiring energy- and water-efficient products and services, environmentally preferable products, and products that use recovered materials and bio-based products;

“Requiring contractors to identify hazardous materials.

*Encouraging contractors to adopt and enforce policies that ban text messaging while driving; and

Requiring contractors to comply with agency environmental management systems.

Answer 554

A

The government’s policy is to acquire supplies and services that promote energy and water efficiency, advance the use of renewable energy products, and help foster markets for emerging technologies.

This policy extends to all acquisitions, including those below the SAT and those at or below the MPT (including those made with a government purchase card).

Answer 555

A

Government policy on the use of products containing recovered materials and bio-based products considers cost, availability of competition, and performance.

Agencies shall purchase these products or require in the acquisition of services the delivery, use, or furnishing of such products.

The objective is to acquire competitively, in a cost-effective manner, products that meet reasonable performance requirements and that are composed of the highest percentage of recovered materials practicable.

Answer 556

A

Agencies must implement cost-effective contracting preference programs promoting energy-efficiency, water conservation, and the acquisition of environmentally preferable products and services; and employ acquisition strategies that maximize the utilization of environmentally preferable products and services (based on EPA-issued guidance); promote energy-efficiency and water conservation; eliminate or reduce the generation of hazardous waste and the need for special material processing (including special handling, storage, treatment, and disposal); promote the use of nonhazardous and recovered materials; promote the use of bio-based products; promote cost-effective waste reduction; purchase only plastic ring carriers that are degradable; and realize life-cycle cost savings.

Answer 557

A

An environmental management system (EMS) is a set of processes and practices that enable an organization to reduce its environmental impacts and to increase its operating efficiency.

Where contractor activities affect the environmental management performance of the agency, the contracting officer is required to specify the EMS directives with which the contractor must comply, and to ensure contractor compliance to the same extent as the agency would be required to comply, if the agency operated the facilities or vehicles.

Answer 558

A

OTHER SOCIOECONOMIC PROGRAMS

This part addresses socioeconomic programs not addressed in FAR part 29 or other FAR parts. It includes the Indian Incentive Program, Major Disaster or Emergency Assistance Activities, Historically Black Colleges and Universities and Minority Institutions, and Food Donations to Nonprofit Organizations.

Answer 559

A

means any Indian-owned (as determined by the Secretary of the Interior) commercial, industrial, or business activity established or organized for the purpose of profit, provided that Indian ownership constitutes not less than 51 percent of the enterprise.

Answer 560

A

contracts awarded by the government. The Indian Incentive Program allows an incentive payment equal to 5 percent of the amount paid to a subcontractor in performing the contract if the subcontractor is an Indian organization or Indian-owned economic enterprise.

Answer 561

A

an interested party timely challenges its status, or the contracting officer has an independent reason to question that status.

The contracting officer must notify the prime contractor upon receipt of a challenge. To be considered timely, a challenge must be in writing, identify the basis of the challenge, provide detailed evidence supporting the claim, and be file with and received by the contracting officer prior to award of the subcontract in question.

Challenges to the representation are to be referredto the BIA, who will determine eligibility and notify the contracting officer. When the prime contractor isnotified prior to award, it must withhold award of itssubcontract pending the BIA investigation. Challengesreceived after award are also forwarded to the BIA forinformation only.

Answer 562

A

This subpart implements the Robert I. StaffordDisaster Relief and Emergency Assistance Act (42U.S.C. 5150), which provides a preference forlocal organizations, firms, and individuals whencontracting for major disaster or emergencyassistance activities.

Answer 563

A

means the area included in the official presidential declaration(s) and any additional areas identified by the Department of Homeland Security. Major disaster declarations andemergency declarations are published in the Federal Register and are available at FEMA’s website.

Answer 564

A

preference should be given to local firms where feasible and practicable.

The preference may take the form of an evaluation preference or a local-area set-aside.

The contracting officer in consultation with the requirements office should define the geographic area for the local set-aside, as well as whether to restrict the set-aside to local small businesses.

Increased micro-purchase and simplified acquisition thresholds are also available (see 2.101 definitions).

Answer 565

A

in writing. The justification should include consideration for the scope of the disaster or emergency and the immediate requirements needed to ensure life is protected, victims are cared for, and property is protected. The justification may be on an individual or class basis and is approved by the contracting officer.

Answer 566

A

means food that meets all quality and labeling standards imposed byfederal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions.

Answer 567

A

insert clause 52.226-6 to encourage food donation by contractors. In the event a contractor donates food, agencies are not to assume any costs or logistics involved, reimburse any costs, or all any costs to be incurred.

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