Final Key Cards Round 2 Flashcards

1
Q
A
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2
Q

______________ products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product or service.

Environmentally Friendly
Environmentally Conscientious
Environmentally Preferable
Environmentally Advantageous
FAR 2.101

A

Environmentally Preferable

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3
Q

Where can executive agencies obtain standard and optional forms?

GSA Forms Library
Acquisition.gov
From the prescribing agency
Via internet search
FAR 53.107

A

GSA Forms Library

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4
Q

Which of the following is correct about the FAR citation 15.506(a)?

15 is the part, 5 is the subpart, 06 is the section, and a is the paragraph.

1 is the part, 5 is the subpart, 506 is the section, and a is the paragraph.

15 is the part, 5 is the subpart, 06 is the paragraph, and a is the sentence.

15 is the part, 50 is the subpart, 6 is the section, and a is the paragraph.
FAR 1.105-2

A

15 is the part, 5 is the subpart, 06 is the section, and a is the paragraph.

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5
Q

he FAR is prepared, issued, and maintained by:

The Executive Office of the President.

The Office of Management and Budget and the General Services Administration.

The National Contract Management Association.

The Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration.
FAR 1.103

A

The Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration.

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6
Q

Who is responsible for printing, publishing, and distributing the Federal Acquisition Regulation?

The DAR Council and CAA Council, jointly

The FAR Secretariat, as authorized by GSA

A FAR Representative authorized by the Secretary of Defense

The Administrator of General Services
FAR 1.201-2

A

The FAR Secretariat, as authorized by GSA

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7
Q

Revisions to the FAR will be prepared and issued through the coordinated action of:

The Defense Logistics Agency and the General Services Administration.

The General Services Administration and the FAR Secretariat.

The Defense Acquisition Regulations Council and the Civilian Acquisition Council.

The FAR Revisions Board and the FAR Secretariat.
FAR 1.201-1

A

The Defense Acquisition Regulations Council and the Civilian Acquisition Council.

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8
Q

distinct six-position code consisting of a combination of alpha and/or numeric characters assigned to identify specific agency offices, units, activities, or organizations by the General Services Administration for civilian agencies and by the Department of Defense for defense agencies is the:

Activity Address Code (AAC)

Procurement Instrument Identification (PIID)Â

Line Item Number

CAGE Code Number
FAR 2.101

A

Activity Address Code (AAC)

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9
Q

Governmentwide point of entry (GPE) means the single point where Government business opportunities greater than ___________, including synopses of proposed contract actions, solicitations, and associated information, can be accessed electronically by the public.
35000
20000
35000
25000
FAR 2.101

A

25000

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10
Q

In the FAR citation “FAR 25.1102(a)(2),” what is referred to by the number 11?
Subsection 25.11
Subpart 25.11
Paragraph 11
Section 11
FAR 1.105-2

A

Subpart 25.11

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11
Q

Where can you make a recommendation for a new form if you are not affiliated with an executive agency?

Government Accountability Office

General Services Administration

the FAR Secretariat

Recommendations are not permitted
FAR 53.108

A

the FAR Secretariat

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12
Q

hen might contracting offices request exceptions to standard forms?
Overprinting forms
Computer generated forms
Special construction and printing forms
Continuation sheets
FAR 53.106

A

Overprinting forms

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13
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering.

What is the Federal Acquisition Regulation?

A

The Federal Acquisition Regulation (FAR) is a set of instructions written for federal employees conducting
“acquisitions,” or buying goods and services. This acquisition process is also called contracting, procurement, purchasing, or “buying stuff.”
The FAR explains to the government employees
—mostly government contracting officers-what processes to follow when “buying stuff” on behalf of the federal agency. For example, the FAR prescribes which clauses to insert depending on the substance and purpose of a federal contract.

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14
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering.

What are the guiding principles of the FAR?

A

The guiding principles of the FAR are as follows:

Satisfy the federal client in terms of cost, quality, and delivery.

Maximize the use of commercial products and commercial services.

Select contractors with good past performance or the ability to perform.

Promote competition among contractors.

Conduct business with integrity, fairness, and transparency.

Fulfill government policy objectives.

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15
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is the most interesting section in the FAR?

A

The most interesting section is FAR 1.102-5(e), which states the following:
“If a policy or procedure, or a particular strategy or practice, is in the best interest of the Government and is not specifically addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, Government members of the Team should not assume it is prohibited.
Rather, absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority.
Contracting officers should take the lead in encouraging business process innovations and ensuring that business decisions are sound.”

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16
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

To whom does the FAR apply?

A

The FAR applies to federal employees conducting acquisitions, a function otherwise known ascontracting, procurement, purchasing, or “buying stuff.” The FAR is written primarily for contracting officers, who have the authority to sign, modify, administer, and terminate contracts on behalf of the federal government.

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17
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

Where can I find the official text of the FAR?

A

The official, online source of the FAR is www.acquisition.gov, which is maintained by the General Services Administration. However, I must warn you: I have found several errors over the years in this “official” source. For that reason, although www.acquisition.gov is convenient and easy to use, I do not trust it fully.

Another official source for any regulation, including the FAR, is the electronic Code of Federal Regulations,
available online at www.ecfr.gov. Many other websites reproduce the FAR or discuss the FAR. Just remember that the official website for the FAR is www.acquisition.gov and the official website for all regulations, including the FAR, is www.ecfr.gov.

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18
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is the Code of Federal Regulations?

A

The Code of Federal Regulations (CFR) is the organized set of all federal regulations, including the FAR. The CFR is organized by titles and chapter. The FAR is Chapter 1 of Title 48 of the CFR.

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19
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

Is there a pattern I can recognize in every single FAR clause in my government contract?

A

A simple pattern applies to all FAR clauses, telling you the origin and purpose of each FAR clause. Every FAR clause starts with 52 because all FAR clauses are found in FAR Part 52. After the number 52, every FAR clause has a period or dot, then three numbers, then a dash, then more numbers. Pay attention to the first three numbers after the period.

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20
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

Why should I pay attention to the first three numbers after the period in the FAR clause?

A

Of those three numbers, the first will be the number two. That detail is not important. But the second and third numbers tell you something very important about the FAR clause.

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21
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What do the second and third numbers indicate?

A

If the FAR clause starts with 52.219, that clause derives from FAR Part 19, Small Business Programs.
Ignore the 52 and ignore the number two after the period. You are left with 19, which tells you that FAR clause comes from FAR Part 19, Small Business Programs. Another example is a FAR clause that starts with 52.249. Any FAR clause that starts with 52.249 derives from FAR Part 49, Termination of Contracts.

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22
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

How should you interpret imperative sentences within the FAR?

A

If you read an “imperative sentence” in the FAR, or a
sentence that requires action, the general rule is that the contracting officer is responsible for this action.
Unless another person or party is expressly listed as responsible, the contracting officer is responsible by default.

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23
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is a deviation?

A

A deviation occurs when the government breaks the rules of the FAR in any one of several specific ways, such as the following:

Including a contract clause that is inconsistent with
the FAR

Including a solicitation provision that is inconsistent
with the FAR

Failing to include a clause or provision when the FAR requires it
Using unauthorized, “modified” versions of clauses or provisions

Think of a deviation as a limitation of the power of federal agencies, which are supposed to follow the FAR. If the agency starts “home-brewing” its own FAR clauses, this practice diminishes the authority of the FAR system and creates confusion in the government contracting industry.

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24
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is a ratification?

A

A ratification is the formal process whereby an agency
“fixes” an unauthorized commitment using the approval of a federal employee who has the authority to sign the original contract.

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25
Q

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is a determination and findings (D&F)?

A

A determination and findings (D&F) is a formal memo in a special format, signed by the appropriate federal employee, who is often the contracting officer. Some actions or decisions require a D&F to document that the contracting officer thoroughly examined and considered the action or decision. In the D&F, the “determination” (conclusion, decision to act) is supported by the “findings” (facts, data, or evidence).

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26
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What is the difference between a clause and provision?

A

Clauses go in the contract. Provisions go in the solicitation. Therefore, we call them contract clauses and solicitation provisions. There may be some overlap, such as when a contract clause is found in both the solicitation and resulting contract, but that overlap is to give every potential contractor notice that the clause will apply. If you see the contract clause in the solicitation, that indicates any resulting contract will also include the clause.

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27
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What is the secret code of all FAR clause numbers?

A

If the FAR clause starts with 52.219, that clause derives from FAR Part 19, Small Business Programs.
Ignore the 52 and ignore the number two after the period. You are left with 19, which tells you that FAR clause comes from FAR Part 19. Another example is a FAR clause that starts with 52.249. Any FAR clause that starts with 52.249 derives from FAR Part 49, Termination of Contracts.

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28
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

Why should I care about the FAR Part that corresponds to the FAR clause?

A

Each FAR clause has specific directions to the contracting officer about when to insert the clause.
This detail helps you understand the purpose of the
FAR clause and gives you negotiating leverage if you want to remove it before signing the contract.

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29
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What is a prescription clause?

A

Every FAR clause has a prescription clause in the beginning of the text of the clause. The prescription clause tells the contracting officer to insert the clause into contracts under certain circumstances.

For example, insert the clause into any contracts for construction greater than $5 million, or insert the clause into any contracts performed overseas.

If the circumstances of your government contract do not match the prescription clause for a FAR clause currently in your contract, try to get the contracting officer to remove the FAR clause. If you find this discrepancy before signing the contract, ask to remove the clause before signature.

Even if you are performing a contract that you signed years ago, you might be able to persuade the contracting officer to remove an inappropriate clause. Your most powerful method of persuasion is to reference the prescription clause and demonstrate that your contract is not applicable.

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30
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What does “ALT” or “alternate” signify in the title of a FAR clause?

A

Some FAR clauses have alternate versions to use for different circumstances, although the substance or topic of each clause remains the same. For example, there are several alternates for the Changes clause for cost-reimbursement contracts. The alternate versions apply depending on whether the contract is for services, supplies, or construction. Yet all versions or alternates are Changes clauses which apply to the cost-reimbursement contracts.

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31
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What does the date after the FAR clause mean?

A

You may notice the FAR clauses in your contract have a date, usually within parentheses, after the number and title. Just as the rest of the FAR is updated constantly, FAR clauses are also frequently updated.
Therefore, the date after the FAR clause refers to the last update to that FAR clause. The date is referred to as the “version” of the FAR clause to distinguish it from earlier or later revisions of the same FAR clause.

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32
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

Can the contracting officer update my FAR clauses when exercising the option?

A

Yes, but by changing the FAR clauses, the government loses its right to exercise the option unilaterally (without your permission). Your company agreed to perform the option period when it signed the contract, but your company did not agree to the updates to the FAR clause. The contracting officer must separate these modifications to retain the right to unilaterally exercise your option.

While the contracting officer can combine the option exercise with other changes, this combination means your company may be entitled to an “equitable adjustment,” meaning money, schedule extensions, or other contractual relief.

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33
Q

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What are the Limitations on Subcontracting clauses?

A

The Limitations on Subcontracting clauses strictly control how much and to whom you can subcontract work under your prime contract with the government.
For more information, read Part 19, Small Business Programs.

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34
Q

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is the Standard Form (SF) 1402?

A

SF 1402, Certificate of Appointment, is the form for a contracting officer warrant to sign, administer, modify, and terminate contracts. The SF 1402 is referred to as the contracting officer’s “warrant.” You can request a copy of the warrant of your contracting officer to verify the ability to sign your company’s contracts. Learn more about contracting officer warrants in Introductory Chapter 1.

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35
Q

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 1449?

A

SF 1449, Solicitation/Contract/Order for Commercial Items, is the preferred form for solicitationsor purchase orders for commercial products or commercial services. You may encounter the SE 1449 during simplified acquisition procedures of FAR Part 13, or when the government combines the commercial procedures of FAR Part 12 with other contract competition methods.

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36
Q

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 18?

A

SF 18, Request for Quotations, is the form for requesting price quotations.

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37
Q

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 30?

A

SE 30, Amendment of Solicitation/Modification of Contract, is the form for amending the solicitation or modifying your government contract. You can expect to see several modifications using the SF 30 during your contracting career.

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38
Q

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 26?

A

SE 26, Award/Contract, is the form to sign a new contract with your company. Hopefully, you will

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39
Q

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is the DD 254 form?

A

You will become familiar with the DD 254 if you perform contracts with security classification requirements. Department of Defense (DD) Form 254 conveys the security requirements for contractors who require access to classified information. You may secret and top secret

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40
Q

Governmentwide point of entry (GPE) means the single point where Government business opportunities greater than ___________, including synopses of proposed contract actions, solicitations, and associated information, can be accessed electronically by the public.
35000
20000
35000
25000
FAR 2.101

A

25000

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41
Q

SF 1402 form

A

SF 1402, Certificate of Appointment, is the form for a contracting officer warrant to sign, administer, modify, and terminate contracts. The SF 1402 is referred to as the contracting officer’s “warrant.” You can request a copy of the warrant of your contracting officer to verify the ability to sign your company’s contracts. Learn more about contracting officer warrants in Introductory Chapter 1.

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42
Q

SF 1449 form

A

SF 1449, Solicitation/Contract/Order for Commercial Items, is the preferred form for solicitationsor purchase orders for commercial products or commercial services. You may encounter the SE 1449 during simplified acquisition procedures of FAR Part 13, or when the government combines the commercial procedures of FAR Part 12 with other contract competition methods.

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43
Q

SF 18 form

A

SF 18, Request for Quotations, is the form for requesting price quotations.

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44
Q

SF 30 form

A

SE 30, Amendment of Solicitation/Modification of Contract, is the form for amending the solicitation or modifying your government contract. You can expect to see several modifications using the SF 30 during your contracting career.

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45
Q

SF 26 form

A

SE 26, Award/Contract, is the form to sign a new contract with your company. Hopefully, you will

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46
Q

DD 254 form

A

You will become familiar with the DD 254 if you perform contracts with security classification requirements. Department of Defense (DD) Form 254 conveys the security requirements for contractors who require access to classified information. You may secret and top secret

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47
Q

The statutory limit for fee for experimental, developmental, or research work performed under a cost-plus-Fixed-fee contract is ____ of the contractor’s estimated cost, excluding fee.
15%
6%
10%
25%
FAR 15.404-4

A

15%

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48
Q

Which of the following is not an exception to certified cost or pricing data requirements?
Emergency acquisition

Adequate price competition

Commercial items

Prices set by law or regulation
FAR 15.403-1

A

Emergency acquisition

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49
Q

An offeror may request a post-award debriefing by submitting a written request for debriefing to the Contracting officer to be received within _____ days after receipt of a notice of contract award.
3
7
5
10
FAR 15.506

A

3

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50
Q

A post-award debriefing should ideally occur within ____ days after receipt of the written request for a debriefing by the offeror.
7
3
5
10
FAR 15.506

A

5

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51
Q

The Contracts Dispute Act of 1978 states contractors shall provide certification as specified in FAR 33.
$100,000
$15,000
$65,000
$150,000
FAR 33.207(a)

A

100,000

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52
Q

Within _____ work day(s) of filing a protest with the GAO, a copy must be provided to the contracting officer.
5
1
3
7
FAR 33.104(a)(1)

A

1

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53
Q

When must contracting officers synopsize contract awards?
When contract awards exceed $25,000
When contract awards exceed $15,000
When contract awards exceed $30,000
When contract awards exceed $20,000
FAR 5.3

A

When contract awards exceed $25,000

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54
Q

When should a Contracting Officer publicize a requirement in the GPE though a synopsis?

The Contracting Officer should publicize 1 week prior to solicitation.

The Contracting Officer should publicize 30 days prior to solicitation.

The Contracting Officer should publicize 1 month prior to solicitation.

The Contracting Officer should publicize 15 days prior to solicitation.
FAR 5.203

A

The Contracting Officer should publicize 15 days prior to solicitation.

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55
Q

Imprest Funds are used for cash purchases below what level?
$1,000
$500
$2,500
$750
FAR 13.305

A

500

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56
Q

The Bonds statute requires performance and payment bonds for any construction contract valued in excess of _________?
$150,000
$650,000
$1,000,000
$2000
FAR 28.102-1(a)

A

$150,000

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57
Q

A contractor may assign monies due or to become due under a government order/contract only when the contract value totals _________ or more.
$25,000
$1,000
$100
$500
FAR 32.802

A

1,000

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58
Q

Service Contracts valued in excess of ___________ must contain mandatory provisions regarding minimum wage and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates.
$2,000
$1,000
$1,500
$2,500
FAR 22.1002-1

A

2500

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59
Q

All contracts subject to 41 U.S.C. chapter 65, (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding _______shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.
$250,000
$2,500
$10,000
$15,000
FAR 22.6

A

15,000

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60
Q

An Independent Government Estimate of construction costs shall be prepared and furnished to the Contracting officer for each proposed contract and contract modification anticipated to exceed:
$100,000
$1,000,000
$150,000
$500,000
FAR 36.203(a)

A

150,000

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61
Q

Micro purchase threasholds

A

10k everything

2k construction

2.5k services

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62
Q

Simplified acquisition threashold

A

250k except

contingent operation 800k intl 1.5m

humanity 800k 1.5m intl

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63
Q

Forms

A

SF18 request quote
SF30 amendment
SF44 PO
OF336 contingency-

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64
Q

Which of the following is not a reason to allocate a cost to a government contract?

It is necessary to the overall operation of the business.

Bona fide need.

It benefits both the contract and other work, and can be distributed to them in a reasonable manner.

It is incurred specifically for the contract.
FAR 31.201-4

A

Bona fide need.

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65
Q

FAR PART 3, IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

FAR Part 3 covers the ethical rules of government contracting, including conflicts of interest.

What can my company do to avoid or mitigate conflicts of interest?

A

Create a written Code of Business Ethics and Conduct and tailor your documents to comply with government contracting policy. Designate an “ethics official” for your company, who is responsible for all such issues, including fielding questions from your employees.

Provide your employees thorough and regular training about ethics. Train your employees to recognize when the work they perform may “conflict out” your company (may prevent your company from proposing to win an upcoming government contract because of a conflict of interest). If necessary, set up “firewalls” (physical or abstract separations or preventative measures) between your employees who perform onsite support services versus employees who write proposals and develop new business (win contracts). If you do not have a qualified expert on staff, hire an outside consultant to help you with these processes.

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66
Q

FAR PART 3, IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

FAR Part 3 covers the ethical rules of government contracting, including conflicts of interest.

Why is the Procurement Integrity Act important for government contractors?

A

If your pricing, financial, or other proprietary information were released to your competitors, your company would encounter substantial problems.
Your competitors could undercut your pricing or steal your “secret sauce.” For these reasons, the Procurement Integrity Act restricts the government from releasing your proprietary information. In addition to protecting your proprietary information, the
Procurement Integrity Act also protects government source selection sensitive information.

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67
Q

FAR PART 3, IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

FAR Part 3 covers the ethical rules of government contracting, including conflicts of interest.

What is the difference between proprietary information versus source selection sensitive information?

A

Ask yourself who cares more about protecting the information. You can easily distinguish between proprietary information versus source selection sensitive information. Both are protected from improper disclosure by the Procurement Integrity Act. However, controlling proprietary information protects your company. Controlling source selection sensitive information protects the government’s selection process.

For example, the names of government source selection decisionmakers and the draft version of a proposal evaluation are both source selection sensitive. The names and draft provide intimate details about the government’s selection process.
In contrast, your company’s pricing and financial details are proprietary information. Spreading this information will hurt your company.

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68
Q

FAR PART 24, PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

FAR Part 24 provides details about Freedom of Information Act (FOIA) requests

How are FOIA requests relevant to government contractors?

A

You can use FOIA requests to gather business intelligence on your clients and competitors. If there is no easier way to obtain information about your competitors, FOIA can force the government to divulge information about the current or prior contractor as well as the federal contract itself, within certain limitations.

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69
Q

FAR PART 31, CONTRACT COST PRINCIPLES AND PROCEDURES

FAR Part 31 provides a long list of allowable and unallowable costs.

What are the three considerations for determining whether a cost can be reimbursed?

A

To determine if a cost is reimbursable (under a cost-reimbursement contract), you need to evaluate three factors: allowability, allocability, and reasonableness.
Ask these three questions: Is this cost allowable? Is this cost properly allocated (to the contract)? Is this cost reasonable?

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70
Q

FAR PART 31, CONTRACT COST PRINCIPLES AND PROCEDURES

FAR Part 31 provides a long list of allowable and unallowable costs.

What is an allowable cost?

A

Allowability refers to whether that specific cost is explicitly allowed in your contract or in FAR Part 31.
You can find a long list of allowable and unallowable costs in FAR Part 31. For example, entertainment costs like season tickets for the regional sports team are unallowable. For another example, the cost of holding shareholders’ meetings is allowable.

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71
Q

FAR PART 31, CONTRACT COST PRINCIPLES AND PROCEDURES

FAR Part 31 provides a long list of allowable and unallowable costs.

What is a reasonable cost?

A

Determining whether a cost is reasonable is a check
mostly used against ridiculous prices or unnecessary expenses. Determining reasonableness is rather subjective, of course.

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72
Q

For a seller who has multiple Defense Priorities and Allocation System (DPAS) orders from federal agencies, the correct order of priority (highest being ?first) for orders from contracts in support of the national defense:

DO rated orders, DX rated orders, unrated orders

DX rated orders, DO rated orders, unrated orders

DO rated orders, unrated orders, DX rated order

Unrated orders, DO rated orders, DX rated orders
FAR 11.603

A

DX rated orders, DO rated orders, unrated orders

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73
Q

What are the two types of contract modifications?

Negotiated and administrative
Limited and unlimited
Enforceable and unenforceable
Unilateral and bilateral
FAR 43.103

A

Unilateral and bilateral

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74
Q

A Department of Commerce regulation in support of approved national defense, emergency preparedness, and energy programs is known as the _____________.

Defense Priorities and Allocation System.

DOC Emergency Authorization System.

Approved program.

Defense Authorization Act.
FAR 11.600

A

Defense Priorities and Allocation System.

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75
Q

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What does life-cycle cost mean?

A

Life-cycle cost means the total cost for the government of acquiring, operating, supporting, maintaining, and eventually disposing of whatever the government buys. The important concept is that the government’s total cost does not stop after the contract is signed, or even after the contract period of performance is completed.

For complex purchases, such as multi-million-dollar programs, the life-cycle costs can span decades. The cost of supporting or maintaining major weapons systems can be several multiples of the upfront purchase price. You can compare this process to the life-cycle cost of your car. In addition to the purchase price of the car, you must pay for parking, maintenance, repairs, insurance, fuel, and other lifecycle costs.

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76
Q

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is consolidation?

A

Consolidation refers to when the government combines two or more requirements into a single contract. In other words, instead of awarding two or more contracts, the government awards only one contract. Consolidation of contracts can save time and money but can also prevent smaller companies from competing on the consolidated contract. Larger contracts provide a distinct advantage for larger companies.

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77
Q

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is bundling?

A

Bundling is a minority subset of consolidation. Not all consolidation qualifies as bundling, but all bundling is also consolidation. Bundling occurs when the government consolidates two or more requirements that were previously performed by small businesses, and that consolidated contract is no longer suitable for performance by small businesses. Therefore, bundling is a subset of consolidation that shuts out the possibility of small business performing as the prime contractor. For these reasons, the government avoids bundling requirements. When the government decides to bundle contracts, they must justify the decision in writing.

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78
Q

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is an inherently governmental function?

A

An inherently government function is a service, action, determination, or duty so intimately related to the public interest that it requires a federal employee’s performance (rather than a contractor’s).
Some activities cannot or should not be outsourced to contractors, we call them inherently governmental functions.

The simplest example is the President of the United States, whom Americans elect via the electoral college to be the chief executive. Although the following example is silly, it colorfully illustrates the principle of inherently governmental activities.

If the duly elected President of the United States hired a contractor to make every single decision, while the President drank margaritas in the Florida Keys, most Americans would be rightfully angry. Why is the President outsourcing the principal duties of the Office of the Presidency? Why is a contractor— who was not elected-making decisions that affect the entire nation? Why is a contractor writing and signing executive orders and negotiating deals with foreign leaders? Keep this silly example in the back of your mind when you consider other examples of inherently governmental activities.

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79
Q

FAR PART 11, DESCRIBING AGENCY NEEDS

FAR Part 11 explains how the government describes what it wants to buy.

What does it mean to describe requirements in terms of functions to provide, performance specifications, or essential physical characteristics?

A

The goal of these policies is to shape government solicitations towards objective outcomes or characteristics so that any qualified contractor can win and perform the contract. Avoid using a brand name or proprietary technology in the description of the requirement so that many companies can compete, instead of just one or few.

For example, let’s discuss the agency’s need for laptop computers. We will start with a very poor, anticompetitive description of the agency’s needs:

“The agency needs an Apple-branded laptop computer that has smooth edges.”

This description is anticompetitive because only Apple can manufacture the laptop. There are no required functions or performance specifications. Also, having smooth edges sounds like a personal preference, not an essential physical characteristic that will help the agency or its employees.

Let’s modify the agency’s description to fit the policy goals found in FAR Part 11:
“The agency needs a laptop computer that contains a disk drive, performs with no interruption in very hot weather (above 90 degrees Fahrenheit), and can fit within a backpack that is 16 inches wide, 20 inches long, and 8 inches deep.”

Now the requirements follow the policy goals of
FAR Part 11 by describing objective performance specifications, functions, or physical characteristics.

Disk drive (function to be provided)

Performs in hot weather (performance specification)
Fits in a backpack (essential physical characteristic)

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80
Q

FAR PART 11, DESCRIBING AGENCY NEEDS

FAR Part 11 explains how the government describes what it wants to buy.

What rules must the government follow to restrict the solicitation to a brand name?

A

If the solicitation is restricted to a particular brand name only, the government must say so explicitly and explain its justification. It is acceptable to limit competition to a brand name, but there must be a reason the government needs the brand name. It cannot be based solely on a brand preference. There must be some other relevant or “salient” characteristic of the brand name that benefits the government.

Requiring Apple products is an example of a government contract competition restricted to a brand name. The justification could be that the entire information technology system of the government is compatible only with Apple products. However, the justification cannot be that the government employees simply “like” Apple products.

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81
Q

FAR PART 43, CONTRACT
MODIFICATIONS

FAR Part 43 explains the various types of contract modifications you may encounter.

Do commercial government contracts allow for unilateral change orders?

A

No, commercial government contracts using FAR Part 12 procedures do not allow for unilateral changes.
All changes under commercial government contracts must be agreed upon by signature of the contracting officer and contractor. If your commercial government contract includes some version of the Changes clause, you should negotiate to remove it. For more info about commercial contracting procedures, read Part 12, Acquisition of Commercial Items.

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82
Q

FAR PART 43, CONTRACT
MODIFICATIONS

FAR Part 43 explains the various types of contract modifications you may encounter.

What is an equitable adjustment?

An equitable adjustment is a modification to the contract price, schedule, or other terms to reflect changed circumstances. Most equitable adjustments are in response to a change order directed by the contracting officer under the Changes clause. For example:

A
  1. Contracting officer issues a change order to use more expensive material
  2. Your company complies with the change order because of the Changes clause
  3. Your company incurs greater
    costs
    than
    contemplated under the original contract
  4. Your company submits a request for equitable adjustment (REA) for more money
  5. Contracting officer grants your REA
  6. Contracting officer modifies the contract to pay you more money (equitable adjustment)
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83
Q

FAR PART 43, CONTRACT
MODIFICATIONS

FAR Part 43 explains the various types of contract modifications you may encounter.

What is a request for equitable adjustment or REA?

A

Learn more about requests for equitable adjustment
(REA) and claims under the Contract Disputes Act in Part 33, Protests, Disputes, and Appeals. You can also read my full-length article on this topic by emailing me at Christoph@ChristophLLC.com.

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84
Q

A competition advocate:

is appointed by the Officer of Federal Procurement Policy

is the Head of the Procuring Activity

promotes acquisition of commercial items; promotes full and open competition; challenges ambiguous and restrictive work statements; challenges barriers to the acquisition of commercial items and full and open competition

is the Head of the Agency who promotes competition
FAR 6.502

A

promotes acquisition of commercial items; promotes full and open competition; challenges ambiguous and restrictive work statements; challenges barriers to the acquisition of commercial items and full and open competition

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85
Q

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

Is a small business set-aside an example of full and open competition after exclusion of sources?

A

Yes, the most common example of using full and open competition after exclusion of sources is whenthe government solicits a contract as a small business set-aside. When only small businesses are eligible to compete for the contract, we have full and open competition but only among small businesses. The
“exclusion of sources” refers to all the large businesses that are ineligible to compete.

Another example is when the government solicits a contract as a women-owned small business (WOSB) set-aside. In this example, the excluded sources include all large businesses and also small businesses that do not qualify as WOSB.

Yet another example is when the government restricts award to local companies after a major disaster or emergency. By excluding any companies not in the disaster area, the government helps the local economy recover by stimulating local businesses.

Apart from set-asides or preference for local companies, the government has one more reason to exclude certain sources. Sometimes the government wants to create or maintain alternative sources, so the government decides to “spread the wealth.” By excluding certain sources, the government “spreads the wealth” to alternative sources.

For example, company XYZ wins 90 percent of the contracts for medical devices. By excluding company XYZ, the government diversifies its supplier base for medical devices. The other companies receive more contracts, increase their revenue, and expand their market share to become an alternative source for the government.

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86
Q

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What types of contracting procedures qualify as full and open competition?

A

FAR Part 6 lists the following as methods of contract competition that satisfy the requirements of full and open competition: sealed bidding, competitive proposals, combinations of competitive procedures (such as two-step sealed bidding), and other competitive procedures.

Other competitive procedures (that also satisfy full and open competition) include the following: selection of sources under architect-engineer contracts using the procedures of the Brooks Act, orders from General Services Administration (GSA) Schedule contracts, and Broad Agency Announcements (BAA) for research that use peer or scientific review for selection decisions.

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87
Q

FAR PART 6, COMPETITION REQUIREMENTS

FAR Part 6 explains the different levels of competition and provides instructions for limiting competition by issuing a Justification and Approval (J&A).

What are the seven acceptable reasons for the government to issue a J&A for other than full and open competition?

A

This mnemonic device will help you to remember the seven reasons for a J&A or justification and approval for other than full and open competition: IOUSNIP.
Each of the letters stands for a possible reason for issuing the J&A. The most common reason is “sole source,” which is “only one source” in the mnemonic device, IOUSNIP. Here’s the complete list:

International agreement
Only one source
Urgency
Statute (a specific law)
National security
Industrial mobilization
Public interest

International agreement means a treaty with a foreign country requires a particular vendor to win the government contract. The term only one source is self-explanatory. Only one source can perform the service or deliver the product. Urgency means an unusual and compelling urgency threatens serious injury to the government. Lack of planning does not count!

Statute means that a law passed by Congress requires a particular vendor to win the government contract.

National security is a vague reason that can mean almost anything, depending on your opinion.

Industrial mobilization means the government needs to bolster specific industries or certain technological capabilities. Therefore, the government will award contracts to certain companies to keep this industry strong or influence it toward new priorities. Finally, public interest is a vague excuse that can be abusedeasily. What is the public interest? You tell me! Let’s argue for a few hours. To protect against overuse of the public interest exception, federal agencies must notify Congress if they intend to use public interest to avoid full and open competition.

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88
Q

FAR PART 7, ACQUISITION PLANNING

FAR Part 7 explains how the government makes acquisition decisions and what qualifies as inherently governmental functions.

What is an inherently governmental function?

A

An inherently government function is a service, action, determination, or duty so intimately related to the public interest that it requires a federal employee’s performance (rather than a contractor’s).
Some activities cannot or should not be outsourced to contractors, we call them inherently governmental functions.

The simplest example is the President of the United States, whom Americans elect via the electoral college to be the chief executive. Although the following example is silly, it colorfully illustrates the principle of inherently governmental activities.
If the duly elected President of the United States hired a contractor to make every single decision, while the President drank margaritas in the Florida Keys, most Americans would be rightfully angry. Why is the President outsourcing the principal duties of the Office of the Presidency? Why is a contractor— who was not elected —making decisions that affect the entire nation? Why is a contractor writing and signing executive orders and negotiating deals with foreign leaders? Keep this silly example in the back of your mind when you consider other examples of inherently governmental activities.

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89
Q

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

How does the government select a winner under sealed bidding?

A

Price is supposed to be the primary decision factor for award. Ideally, the government shared a precise and exhaustive list of specifications so that all bidders understand exactly what must be performed under the contract. Therefore, the only evaluation factor should be price or price-related factors.

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90
Q

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

What does “responsive” mean under sealed bidding?

A

Responsive refers to whether the bid conforms to all material elements of the IFB or government specifications. If your company leaves out an important item required by the IFB, or fails to follow the IFB, your bid may be considered nonresponsive. If your bid is nonresponsive, you are not eligible for award.

The requirement of responsiveness is one way to keep all sealed bidders on equal footing. If one bidder tries to get an unfair advantage by submitting a lower price based on a material deviation from the IFB, the government cannot possibly reward that bidder because such a bid is nonresponsive and therefore ineligible for award.

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91
Q

FAR PART 14, SEALED BIDDING

FAR Part 14 provides procedures for using sealed bidding.

Why would the government use two-step sealed bidding?

A

Two-step sealed bidding makes sense when the government does not have a precise set of technical standards already developed, which is a requirement for traditional sealed bidding.
Two-step sealed bidding allows creative input and ideas from industry, and helps the government decide what it wants and what is available in the first step. Then, in the second step, the government takes those specifications and follows a process like traditional sealed bidding.

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92
Q

The objective of source selection under FAR Part 15 is to select the proposal that represents the _____________________.
best value
lowest risk
best quality
lowest price
FAR 15.302

A

best quality

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93
Q

The statutory limit for fee for experimental, developmental, or research work performed under a cost-plus-Fixed-fee contract is ____ of the contractor’s estimated cost, excluding fee.
15%
6%
10%
25%
FAR 15.404-4

A

15%

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94
Q

he threshold for obtaining certified cost or pricing data is ________ for prime contracts awarded before July 1, 2018, and __________ for prime contracts awarded on or after July 1, 2018.
$750,000; $2 million
$600,000; $7.5 million
micro-purchase threshold; simplified acquisition threshold
$250,000; $3 million
FAR 15.403-4

A

$750,000; $2 million

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95
Q

In which FAR Part is the Uniform Contract Format outlined?
Part 44
Part 2
Part 15
Part 16
FAR 15

A

Part 15

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96
Q

Which of the following is not one of the four parts in the Uniform Contract Format?

Contract Clauses

Representations and Instructions

The Schedule

Statement of Work
FAR 15.204-1

A

Statement of Work

The four parts of the Uniform Contract Format (UCF) are:

The Schedule (Part I)

Contract Clauses (Part II)

List of Documents, Exhibits, and Other
Attachments (Part III)

Representations and
Instructions (Part IV)

The Statement of Work (SOW) is included in “The Schedule” but is not a separate part of the UCF.

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97
Q

FAR PART 10, MARKET
RESEARCH

FAR Part 10 directs the government to perform market research to make better contracting decisions. Savvy contractors influence the process of market research

How can contractors influence the market research process?

A

Market research is your opportunity to be heard. The government collects market research to make decisions. If you provide the market research, you influence the decisions. If you do not provide any information for the government’s market research, you have ceded the opportunity to your competitors.

Therefore, tell the government why you deserve the contract. Are you the best? Fastest? Lowest priced (but are you technically acceptable)?
What’s your special set-aside signal? Are you a small business? Women-owned small business or WOSB? Let the government know. Explain why your type of business is the only type of business that should qualify.

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98
Q

FAR PART 10, MARKET
RESEARCH

FAR Part 10 directs the government to perform market research to make better contracting decisions. Savvy contractors influence the process of market research

What is a Sources Sought Notice?

A

Sources Sought Notice or SSN means the government wants to know what types of businesses will compete for an upcomingcontract.

Think of the SSN as a special type of maybe the contract will be a women-owned RFI. Instead of general information like the RFI small business set-aside. requests, the SSN explores what businesses exist, what products and services they offer, and most importantly, how these businesses are classified for potential contract set-asides. Government contracts can be “set aside” for specific types of businesses, like small businesses or women-owned small businesses. Read Part 6, Competition Requirements, and Part 19, Small Business Programs for more information.

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99
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

Does the source selection authority read every proposal?

A

No, the source selection authority (SSA) will probably not read every proposal. Nor must the SSA evaluate every proposal, nor must the SSA read every evaluation. Instead, the SSA may receive a high-level briefing from the evaluation team (the people who actually read the proposals and provide written evaluations based on the evaluation factors). The high-level briefing will review the final evaluation ratings of the top proposals and may recommend selection of a particular contractor.

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100
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is an evaluation factor?

A

Government contracting competitions disclose evaluation factors to let potential contractors know what is important to the clients. If price is important, price will be an evaluation factor.
If past performance and technical specifications are important, those too will be evaluation factors.

Evaluation factor is a term of art in government contracting. Think of the evaluation factor as some attribute or characteristic of the potential contractor that generates a benefit to the government (or which creates a risk if it is absent or deficient).

Let’s say one evaluation factor is a security mitigation plan for power outages. If a potential contractor has a thorough, logical, and time-tested security mitigation plan, that plan is a significant benefit to the government client.
It may contain one or more strengths thatIf a different potential contractor has a nonsensical plan, that detail is certainly a risk for the government client.
This weakness can translate into a poor evaluation factor rating. In this example, these two potential contractors will be scored or evaluated differently on the evaluation factor of a security mitigation plan.

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101
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is the most common evaluation factor for government contract competitions?

A

The most common evaluation factor is price. Unless there is a special exception, price will be evaluated for all government contract awards. Even during competitions where price is the least important factor, such as in some tradeoff competitions, price is still evaluated.

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102
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is technical approach?

A

Technical approach is a very broad evaluation factor that may include subfactors. Sometimes the technical approach factor is simply to evaluate exactly how the potentialcontractor will perform the contract. Overreliance on technical approach may indicate that this government contracting opportunity is an “essay-writing contest.” In other words, how you write the proposal may be just as important as the objective content or promises within your proposal. Style and presentation may matter more than substance!

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103
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is a past performance questionnaire or PPQ?

A

Sometimes the government evaluates your past performance using questionnaires. These questionnaires are sometimes called past performance questionnaires or PPQs. Your company submits several past performance descriptions along with the contact information for each client. The government sends questionnaire forms to each client you chose for your past performance. The clients send the questionnaires back to the government. Your company never sees the questionnaire replies, although you can find out how the government rated or evaluated your overall past performance.

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104
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is CPARS?

A

Sometimes the government reads about your company in the Contractor Performance Assessment Reporting System
(CPARS). The CPARS database contains records, both positive and negative, on government contractor past performance.

If your contract is eligible, the government will enter information about your company, the contract, and your performance into CPARS. This information should be objectively based on facts, dates, data, and be verifiable.
However, opinions about performance will always be
somewhat subjective.

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105
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

Can my company submit written comments to defend or
explain itself within CPARS?

A

Yes, as a government contractor, you can make comments about your company in CPARS. This opportunity is
available whenever the government records negative information in CPARS. Your one chance to correct the
record is to state your case in writing.

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106
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

How can my company prepare for CPARS evaluations?

A

To prepare for CARS evaluations, your company must collect and organize important information about its performance of all its government contracts. Keep any email messages, memoranda, or documents that show praise or positive feedback from the government. If the praise comes in person or on the phone, write a memorandum to file documenting the praise.

Keep track of key dates and deliverables. Document any problems that arise and explain what your company did to help. Information like this, based on objective documents and dates, will be helpful when you need to retell your side of the story in CARS. Keep your response objective, organized, and focused.

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107
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What info will my company receive during the debriefing?

A

A debriefing must include at least the following info:
Significant weaknesses and deficiencies of your proposal, if any
Overall evaluated cost or price and technical rating of the winner
Overall evaluated cost or price and technical rating of your proposal
Past performance info about your company
Overall ranking of the competitors, if such a ranking occurred
Summary of the rationale for picking the winner For commercial items, the make and model of the winner’s commercial item
Reasonable responses to relevant questions about whether the source selection
followed the solicitation rules, laws, regulations, and other applicable authorities

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108
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is TINA

A

TINA is the Truth in Negotiations Act. Congress passed a law which became known as the Truth in Negotiations Act to give the government a huge advantage in sole-source negotiations. Since there is no competition, the government requires the contractor to disclose the “cost or pricing data” associated with the final cost or price.
This is like playing poker with your cards facing up on the table. This disclosure of cost or pricing data allows the government to look at your proprietary financial information to pressure you into a lower cost or price.
If the cost or pricing data is certified, you expose your company to a significant amount of risk, so these situations should be avoided whenever possible.

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109
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What does TINA require my company to disclose?

A

TINA requires the contractor to disclose “cost or pricing data” and to certify the data in certain circumstances.
The government uses this information to negotiate with the contractor. Let’s be clear about this. No company would disclose this proprietary financial information (cost or pricing data) voluntarily. This deal is bad for

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110
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

Why did Congress pass TINA to level the playing field when negotiating with large defense contractors?

A

Large defense contractors have billions of dollars and hundreds or thousands of highly paid employees. These defense contractors run rings around the government contracting officers and program managers. There is no comparison if one side has 30 players while the other side has a team of 3.
To level the playing field, Congress passed a law which became known as the Truth in Negotiations Act or TINA.
If there is competition, meaning two or more contractors, the government can assume the invisible hand of the free market pushes prices down to a competitive level.
However, in a sole-source negotiation, a contractor has significant power to determine pricing. TINA diminishes that power.

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111
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What does “other than certified cost or pricing data” mean?

A

Sometimes the contractor has an exemption where it does not have to provide certified cost or pricing data. In these cases, the contracting officer may still request other than certified cost or pricing data. This is precisely the same information, except that your company is not required to certify the information. If this sounds like a strangely convenient benefit the government created for itself, you’re on the right track.

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112
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

Does my company have to submit cost or pricing data?

A

No, you can always refuse to submit. However, in such a case the government is likely to decline awarding you the contract.

When you are in a sole-source negotiation for a government contract, you have a lot of leverage. You are the only potential contractor. Therefore, you might be able to get away with refusing to disclose any cost or pricing
data, despite what the laws and regulations require of the contracting officer.

There are also waiver procedures for the contracting officer to give your company a pass or exception to providing cost or pricing data. You are not guaranteed to get a waiver or pass. Nor are you guaranteed to get the government contract. You must analyze your competitive negotiation position and decide whether to play nice. If you push things too far, you might lose the government contract.

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113
Q

FAR PART 15, CONTRACTING BY NEGOTIATION

FAR Part 15 explains the process for the most complicated source selection process and provides the rules for submitting certified cost or pricing data

What is so dangerous about certified cost or pricing data?

A

When an employee of your company certifies the cost or pricing data, it creates significant risk. If the cost or pricing data is wrong or defective, the government can “claw back” or demand money back from your company. Your company also risks being accused of submitting a false claim, which is a serious charge.
For these reasons, you should always consult a competent government contracting expert when you are making decisions about certified cost or pricing data. It’s also important to know the rules of whether you need to submit cost or pricing data. If you are not a rules expert you need to hire one.

114
Q

FAR PART 46, QUALITY ASSURANCE

FAR Part 46 explains how the government will verify that your performance or delivery meets the quality standards of your government contract.

What does acceptance mean within the context of FAR
Part 46, Quality Assurance?

A

Acceptance is when an authorized representative of the government takes ownership of supplies delivered under a contract or approves specific services performed under a contract. Acceptance acknowledges that your company’s supplies or services conform with all quality or quantity requirements of the contract. Think of acceptance as the formal, official “thumbs up.”

You must distinguish acceptance from delivery or performance. Just because your company mailed products to the federal agency does not mean they were accepted.
Just because a federal employee signed for the mailed products does not mean they were accepted. Just because you performed the services does not mean they were accepted. You need to read your contract carefully to determine what constitutes acceptance.

In summary: Delivery is not (necessarily) acceptance.
Performance is not (necessarily) acceptance. Acceptance is the official act of the government verifying that whatever your company provided or performed met all requirements of the contract.

115
Q

FAR PART 46, QUALITY ASSURANCE

FAR Part 46 explains how the government will verify that your performance or delivery meets the quality standards of your government contract.

What is conditional acceptance?

A

Conditional acceptance means your company’s delivery or performance was “close, but no cigar.” Your company needs to fix, cure, correct, supplement, or change something to achieve complete acceptance. Full acceptance is conditioned upon your company making the changes.

116
Q

FAR PART 47, TRANSPORTATION

FAR Part 47 provides transportation policy for government contracting.

What is a bill of lading?

A

A bill of lading is a document used in transport services.
The carrier provides a copy of the bill of lading to the shipper. The bill of lading is a receipt of the items to be transported by the carrier. When passing through checkpoints or customs clearance, the carrier can present the bill of lading to show title to the items, a list of all items in transport, or as proof of a contract to transport the items.

117
Q

FAR PART 48, VALUE ENGINEERING

FAR Part 48 explains how your company may suggest contractual efficiencies through the value engineering process.

What is value engineering?

A

Value engineering is the process whereby the contractor suggests changes to the contract or statement of work that may save cost or time. By proposing a different way of performing the work, the contractor reduces acquisition, operation, or support costs—or finishes the work faster.
The government encourages value engineering because the contractor often has a better understanding of the best way forward, so why not listen to what they have to say?

118
Q

FAR PART 48, VALUE ENGINEERING

FAR Part 48 explains how your company may suggest contractual efficiencies through the value engineering process.

What are the two approaches to value engineering?

A

The two approaches are incentive-based value engineering and mandatory value engineering.

119
Q

An offeror may request a post-award debriefing by submitting a written request for debriefing to the Contracting officer to be received within _____ days after receipt of a notice of contract award.
3
7
5
10
FAR 15.506

A

3

120
Q

Who can authorize continued performance in the face of a protest after award?
The head of the contracting activity.
The commanding officer.
The chief of the contracting office.
The contracting officer provided his findings are documented in the file.
FAR 33.1

A

The head of the contracting activity.

121
Q

A post-award debriefing should ideally occur within ____ days after receipt of the written request for a debriefing by the offeror.
7
3
5
10
FAR 15.506

A

5

122
Q

The Contracts Dispute Act of 1978 states contractors shall provide certification as specified in FAR 33.
$100,000
$15,000
$65,000
$150,000
FAR 33.207(a)

A

100000

123
Q

Permitted exchanges of information with industry prior to receipt of proposals include all of the following except:
Site visits
Including the Independent Government Cost Estimate (IGCE)
Pre-proposal conferences
Requests for Information (RFIs)
FAR 15.201

A

Including the Independent Government Cost Estimate (IGCE)

124
Q

When there is a contract dispute, the __________ __________ ________ refers to any procedure or combination of procedures voluntarily used to resolve issues in controversy.
Alternative Dispute Resolution
Allowance Dispute Resolution
Allowance Deduction Refund
Alternative Discourse Reflection
FAR 33.201

A

Alternative Dispute Resolution

125
Q

Within _____ work day(s) of filing a protest with the GAO, a copy must be provided to the contracting officer.
5
1
3
7
FAR 33.104(a)(1)

A

1

126
Q

When must contracting officers synopsize contract awards?
When contract awards exceed $25,000
When contract awards exceed $15,000
When contract awards exceed $30,000
When contract awards exceed $20,000
FAR 5.3

A

When contract awards exceed $25,000

127
Q

Protests may be filed with ______________________.
either the contracting officer or the United States Court of Federal Claims

either the agency or the General Accountability Office

the agency, the GAO, or the General Services Board of Contract Appeals (ADP acquisition)

Small Claims Court for awards under the Simplified Acquisition threshold
FAR 33.102

A

either the agency or the General Accountability Office

128
Q

The Uniform Contract Format (UCF) is a standardized structure used for preparing solicitations and contracts in federal acquisitions. The UCF is divided into four main parts, which are further broken down into specific sections:

A

Part I - The Schedule
Section A: Solicitation/Contract Form - The cover sheet of the solicitation or contract.
Section B: Supplies or Services and Prices/Costs - Description of supplies or services, pricing, or costs.
Section C: Description/Specifications/Statement of Work - Detailed description of the work or supplies required.
Section D: Packaging and Marking - Requirements for packaging, packing, and marking.
Section E: Inspection and Acceptance - The criteria for inspection and acceptance of the goods or services.
Section F: Deliveries or Performance - Terms related to the time, place, and method of delivery or performance.
Section G: Contract Administration Data - Information on how the contract will be administered.
Section H: Special Contract Requirements - Any special requirements that do not fit elsewhere.

Part II - Contract Clauses
Section I: Contract Clauses - General and special contract clauses that are applicable to the contract.

Part III - List of Documents, Exhibits, and Other Attachments
Section J: List of Attachments - A list of all attachments, exhibits, and other documents that are part of the solicitation or contract.

Part IV - Representations and Instructions
Section K: Representations, Certifications, and Other Statements of Offerors - Information the offeror must submit with its offer, including certifications and representations.
Section L: Instructions, Conditions, and Notices to Offerors or Respondents - Instructions for preparing and submitting offers.
Section M: Evaluation Factors for Award - Criteria used to evaluate offers and make an award decision.

These sections provide a comprehensive framework for organizing the contents of a federal contract or solicitation.

129
Q

Unless otherwise excepted, the Contracting Officer must transmit a notice of proposed contract action to the governmentwide point of entry for each of the following situations, except:

Proposed contract action in an estimated amount of $30,000.

Proposed modification to an existing contract for additional supplies or services outside the existing contract scope in an estimated amount of $30,000.

Proposed contract termination for the convenience of the Government in an estimated amount of $30,000.

Proposed contract action in an estimated amount of $20,000, if the notice is advantageous to the Government.
FAR 5.201

A

Proposed contract termination for the convenience of the Government in an estimated amount of $30,000.

However, contract terminations for the convenience of the Government are not generally required to be publicly posted through the GPE, making it the correct exception in this context.

130
Q

When should a Contracting Officer publicize a requirement in the GPE though a synopsis?

The Contracting Officer should publicize 1 week prior to solicitation.

The Contracting Officer should publicize 30 days prior to solicitation.

The Contracting Officer should publicize 1 month prior to solicitation.

The Contracting Officer should publicize 15 days prior to solicitation.
FAR 5.203

A

The Contracting Officer should publicize 15 days prior to solicitation.

131
Q

FAR PART 5, PUBLICIZING CONTRACT ACTIONS

FAR Part 5 prescribes policy for publicizing contract actions to increase competition

Why should you care about SAM and the so-called governmentwide point of entry?

A

The official website is your official source for finding new contract opportunities. Although you can subscribe to paid services that filter, organize, or highlight data about new contract opportunities, the originating source for these services is SAM.

You can pay for services that make searching for contracts easier, or you can perform this research on your own, for free, using the official government website. You can easily create a free account.

Much like the Federal Procurement Data System or FPDS (described in FAR Part 4, Administrative and Information Matters), the System for Award Management is a powerful resource for free market research, competitive analysis, and open-source intelligence. Bookmark these websites and practice navigating them. You can search for government contracts by location, federal agency, type of work, and many other search terms.

132
Q

FAR PART 5, PUBLICIZING CONTRACT ACTIONS

FAR Part 5 prescribes policy for publicizing contract actions to increase competition

Can contractors submit contract opportunities to SAM?

A

Yes, prime contractors can submit notices of subcontracting opportunities to attract potential subcontractors. Even subcontractors can submit notices for further (lower-tier) subcontracting opportunities.
These notices of subcontracting opportunities should include a description of the business opportunity, any prequalification requirements, and a contact or resource for learning more about the technical requirements.

133
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act.

What is the Changes clause?

A

The Changes clause allows the government to make unilateral changes to certain parts of the contract. You must comply if the Changes clause is in your contractbecause that was part of the deal you negotiated. If these changes cost money, then the government must pay you.

134
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act.

What is one way to request more money due to changes in the contract?

A

You can submit a request for equitable adjustment (REA), which is one type of written request for more money due to changes in the contract.

135
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act

What are the basic differences between a claim and REA?

A

Here are the basics. REAs and claims are two methods for asking for more money on your government contracts. Although REAs and claims are similar, you must understand their important differences. The biggest differences involve the processes after you submit the REA or claim.

136
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act

Is the REA contract administration or litigation?

A

REAs are considered contract administration, not litigation. When you submit the REA, you are not taking the first step in suing the government. REAs are not lawsuits. They are considered a normal part of government contract administration. Contract administration costs can be paid by the government.

137
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act

Does the REA automatically create a deadline for the government to respond?

A

No. Unfortunately, there is no automatic deadline for the government to respond to your REA. The government can ignore your REA indefinitely. The government could stall, postpone, and delay your REA for months or years.
For this reason, you should set firm deadlines for when the government must respond. If you get no response by the deadline, either forward the REA to higher level government officials, or choose to submit a claim instead.

138
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act

Does the claim automatically create a deadline for the government to respond?

A

Yes. The claim starts a process with a deadline requiring a written response from the government, but the REA does not. Unlike REAs, claims force the government contracting officer to respond within a certain time period.

139
Q

FAR PART 33, PROTESTS, DISPUTES, AND APPEALS

FAR Part 33 explains how contractors can protest to the agency, GAO, or Court of Federal Claims, and also explains the process for filing a claim under the Contract Disputes Act

Can you summarize the major differences between claims and REAs?

A

Request for equitable adjustment or REA:

Considered contract administration
You can include preparation costs
Not litigation and not the start of a lawsuit Less formal and less aggressive than a claim
No timeline for the contracting officer to respond

Claim under the Contract Disputes Act:
Considered litigation
You cannot include preparation costs
Starts with the contracting officer
Can result in a lawsuit
More formal and more aggressive than REA
Strict time limits for the contracting officer to respond

140
Q

Efficiency-Reducing Transaction Costs: FAR Parts 8, 12, 13, 17, 18, and 3

A

Efficiency-Reducing Transaction Costs: FAR Parts 8, 12, 13, 17, 18, and 38

FAR Part 8 - Required Sources of Supplies and Services

FAR Part 12 - Acquisition of Commercial Products and Commercial Services

FAR Part 13 - Simplified Acquisition Procedures

FAR Part 17 - Special Contracting Methods

FAR Part 18 - Emergency Acquisitions

FAR Part 38 - Federal Supply Schedule Contracting

141
Q

Public Law _____________ authorizes extraordinary contractual actions to facilitate the national defense.
85-804
112-61
65-804
112-110
FAR 18.127

A

85-804

142
Q

When identical services are on the Procurement List issued by Federal Prison Industries, Inc. that is on the Procurement List issued by AbilityOne, what is the priority for ordering services?

Commercial sources

Federal Prison Industries, Inc.

General Services Administration (GSA)

AbilityOne participating nonprofit agencies
FAR 8.704

A

AbilityOne participating nonprofit agencies

143
Q

When identical supplies are on the Procurement List issued by Federal Prison Industries, Inc. that is on the Procurement List issued by Ability One, what is the priority for ordering supplies?

General Services Administration (GSA)

Federal Prison Industries, Inc.

AbilityOne participating nonprofit agencies

Commercial sources
FAR 8.704

A

Federal Prison Industries, Inc.

144
Q

Which of the following is not a method for simplified acquisition?
Blanket purchase agreement
Purchase order
Governmentwide commercial purchase card
Advance agreement
FAR 13.3

A

Advance agreement

145
Q

______________ is an online shopping service through which ordering activities may search specific information (national stock number, part number, common name), review delivery options and place orders directly with schedule contractors

E-Buy

SAM.gov

GSA Advantage!
Federal Supply

Schedule (FSS)
FAR 8.402

A

GSA Advantage!
Federal Supply

146
Q

What provides federal agencies with a simplified process of acquiring commercial supplies and services in varying quantities while obtaining discounts associated with volume buying?
Effective competition.
Federal Supply Schedule.
Modular contracting.
Service contract.
FAR 38.101

A

Federal Supply Schedule.

147
Q

What is the relationship between the Economy Act and more specific statutory authority, like the statutory authorities for the Federal Supply Schedules or Governmentwide acquisition contracts?

The Economy Act applies when more specific statutory authority does not exist.

The Economy Act always applies, regardless of whether more specific statutory authority exists.

Orders using the Federal Supply Schedules or Governmentwide acquisition contracts are to be treated as Economy Act orders.

The Contracting Officer must use discretion in deciding whether to use the Economy Act or more specific statutory authority that may apply to an acquisition.
FAR 17.502-2(b)

A

The Economy Act applies when more specific statutory authority does not exist.

148
Q

Imprest Funds are used for cash purchases below what level?
$1,000
$500
$2,500
$750
FAR 13.305

A

500

149
Q

The Federal Supply Schedule Program is also known as the:

Central Contractor Registry (CCR)

E-Buy Program

Source-Supply List (SSL)

Multiple Award Schedule Program
FAR 8.402

A

Multiple Award Schedule Program

150
Q

Which of the following acquisitions may not use the acquisition procedures of FAR Part 12?

Performance-based acquisition

Acquisition of a commercial-off-the-shelf item

A purchase made directly from another Federal agency

Acquisition based on the results of market research
FAR 12

A

A purchase made directly from another Federal agency

151
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What is an indefinite delivery, indefinite-quantity contract?

A

An indefinite-delivery, indefinite-quantity or IDIQ contract allows agencies the flexibility to place orders for amounts they need when the need arises. If the agency knew it needed 1,000 computers in 30 days, the agency could sign a simple purchase order for 1,000 computers. This purchase order would have a definite quantity (1,000) and a definite delivery schedule (within the next 30 days).

But what if the agency knows it needs between 1,000 and 1,000,000 computers at various points within the next 5 years? Enter the IDIQ contract, which establishes a minimum and maximum quantity (between 1,000 and 1,000,000) and an ordering period (today through the next 5 years). Through this IDIQ contract, the agency can easily satisfy its needs for computers whenever they arise. Next month, the agency can order 2,000 computers. The following month, the agency can place zeroorders. At the end of next year, the agency can order 30,000 computers. This flexibility is very convenient for the agency and the contracting office.

152
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What is an order for supplies called?

A

A delivery order is for supplies. Sometimes a delivery order is abbreviated as “DO.”

153
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What is an order for services called?

A

A task order is for services. Sometimes a task order is abbreviated as “TO.”

154
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What are the various names for the GSA
Schedule contracts?

A

GSA Schedule contracts are also called Federal Supply Schedule (FSS) contracts or Multiple Award
Schedule (MAS) contracts.

155
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What is the GSA CALC Tool?

A

GSA also maintains a website called the GSA CALC Tool. CALC stands for Contract-Awarded Labor Category. The CALC Tool lets you search for actual, historical, awarded prices for orders against the various GSA Schedule contracts.

You can search by labor category and filter by education level, hourly rate, years of experience, and other factors. The CALC Tool will return the average, median, and ranges of prices (within a few standard deviations) for whatever labor category using real, historical pricing data. This CALC Tool is invaluable for your market research on the competitive labor rates for services available to the federal government. Use it!
Bookmark it among your favorite websites!

156
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What is GSA Advantage?

A

GSA Advantage is an online shopping service (website) for agencies to place orders against
GSA Schedule contracts. Think of GSA
Advantage as the central marketplace for GSA
Schedule contract-holders to sell to the federal government. The government contracting officers peruse the GSA Advantage website to
“shop around” and place orders against the GSA
Schedule contracts.

157
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

What is GSA E-Buy?

A

E-Buy, E-Buy, E-Buy…Hmm, what does that sound like? The federal government is in no danger of being successfully sued for trademarkinfringement by E-Bay, which is a different online commerce website. Let’s get back to GSA E-Buy.

GSA E-Buy is an online tool within GSA
Advantage. In GSA E-Buy, agencies can publicize requirements, request price quotes, and issue orders electronically. Think of GSA E-Buy as the “online shopping center” and “checkout counter” within GSA Advantage.

158
Q

FAR PART 8, REQUIRED SOURCES OF SUPPLIES AND SERVICES

FAR Part 8 explains the rules for placing orders against GSA Schedule contracts and directs the government to consider certain internal sources before issuing contracts.

If my company receives an order against my
GSA Schedule contract, what terms apply to the order?

A

The terms and conditions of your underlying
GSA Schedule contract apply to each and every
order. Just because you do not see a particular clause in the order does not mean you are “off the hook.” When performing a GSA order, your company is obligated to follow every clause, term, and condition found in the GSA Schedule contract.

159
Q

FAR PART 12, ACQUISITION OF COMMERCIAL ITEMS

FAR Part 12 provides streamlined procedures for buying commercial items and encourages the purchase of commercial items whenever possible.

Who determines whether the item (product or service) qualifies as commercial?

A

The contracting officer has the final say in determining whether a product or service qualifies as a “commercial item.” By writing a determination and findings (D&F) or commerciality determination memo, the contracting officer makes the final decision.

160
Q

FAR PART 12, ACQUISITION OF COMMERCIAL ITEMS

FAR Part 12 provides streamlined procedures for buying commercial items and encourages the purchase of commercial items whenever possible.

Can my company be subject to Cost Accounting Standards under a commercial contract?

A

No, the general rule is that Cost Accounting Standards (CAS) do not apply to commercial contracts. For more information about CAS, read Part 30, Cost Accounting Standards Administration and Part 31, Contract Cost Principles and Procedures.

161
Q

FAR PART 13, SIMPLIFIED ACQUISITION PROCEDURES

FAR Part 13 explains the simplified acquisition procedures and their dollar thresholds

What is one more reason to memorize the simplified acquisition threshold?

A

Any government contract at or below the simplified acquisition threshold is-by default-reserved exclusively for small businesses. The government must “rebut the presumption” (provide good reason) for not using a small business set-aside within the simplified acquisition threshold. The Small Business Administration closely tracks each agency’s adherence to this special rule favoring small businesses.

162
Q

FAR PART 13, SIMPLIFIED ACQUISITION PROCEDURES

FAR Part 13 explains the simplified acquisition procedures and their dollar thresholds

What is the government’s competition standard when using simplified acquisition procedures?

A

When using simplified acquisition procedures, the government must promote competition to the “maximum extent practicable.” This competition standard is significantly less stringent than the “full and open competition” required under FAR Part 15 (Contracting by Negotiation) or other procedures.

163
Q

FAR PART 13, SIMPLIFIED ACQUISITION PROCEDURES

FAR Part 13 explains the simplified acquisition procedures and their dollar thresholds

What makes the simplified acquisition procedures so simple?

A

Many of the benefits of simplified acquisition procedures are because of what is not required.
Simplified acquisitions relax or omit several onerous rules. While complex source selections under FAR Part 15 require the following, simplified acquisition procedures do not require:

Establishment of a competitive range
Formal evaluation plans
Formal discussions with each company in the competitive range
Strict adherence to deadlines for receipt of proposals
Extensive documentation of the evaluation and negotiation process
Notification of unsuccessful companies
Formal debriefings of unsuccessful companies
Evaluation factors stated in terms of their relative importance to each other
Using simplified acquisition procedures, the government can skip everything in the list.
The complicated procedures of FAR Part 14 and FAR Part 15 are expressly exempted from FAR Part 13. The lack of rigorous procedures in FAR Part 13 leaves ample room for interpretation. Contracting officers are encouraged to use “innovative approaches” when awarding contracts using simplified acquisition procedures.

164
Q

FAR PART 13, SIMPLIFIED ACQUISITION PROCEDURES

FAR Part 13 explains the simplified acquisition procedures and their dollar thresholds

Is a price quotation the same as submitting an offer to the government?

A

No! A quotation is not an offer, despite how people mix up the two. There is an important contractual distinction between a quotation (a price quote) and an offer in government contracting. A valid contract needs an offer, an acceptance, and consideration (exchange of value). Let’s consider formal proposals before we return to mere price quotes.

165
Q

FAR PART 13, SIMPLIFIED ACQUISITION PROCEDURES

FAR Part 13 explains the simplified acquisition procedures and their dollar thresholds

Is the SF 1449 an offer to my company?

A

Yes, the SF 1449 (purchase order) is an offer. The proof is on the front page, which will specify whether the contractor is required to sign the purchase order and return it to the government.

166
Q

FAR PART 13, SIMPLIFIED ACQUISITION PROCEDURES

FAR Part 13 explains the simplified acquisition procedures and their dollar thresholds

What if the SF 1449 does not require a signature from my company?

A

You can accept this offer (purchase order) “by performance” rather by signature. When the SF 1449 (purchase order) does not require your signature, you accept the offer-and form a binding contract-by performing the actual contract.
If the purchase order is for supplies, when you deliver the goods, you show that you accepted the contract. If the SF 1449 is for services, you accept the contract by performing the services.

167
Q

FAR PART 17, SPECIAL CONTRACTING METHODS

FAR Part 17 explains how options work in government contracting

What is a Contract Line Item Number or CLIN?

A

Most government contracts use Contract Line Item Numbers (CLINs) to track different goods or services provided under the contract. Under the usual numbering convention, the base period of performance will be numbered CLIN 0001.
The first option period will be CLIN 1001, the second will be CLIN 2001, the third will be CLIN 3001, and the fourth will be CLIN 4001. So, the typical numbering convention starts with “0” for the base period, “I” for the first option, “2” for the second option, and so on. Sometimes the numbers will be different, but this is the most common arrangement.

The second, third, fourth, and fifth periods of performance are option periods, meaning the government has the unilateral choice (“option”) to continue performance or not. Your company started performance under the base period, CLIN 0001, shortly after signing the contract.
However, your company may perform some, all, or none of the option periods, depending on the decisions of the government.

The government gets your company to continue performance through the option periods by exercising an option. If the government does not exercise the next option period, your contractual obligations to perform are finished.

168
Q

FAR PART 17, SPECIAL CONTRACTING METHODS

FAR Part 17 explains how options work in government contracting

What do you mean by unilateral right?

A

The government’s right to exercise the option is unilateral because your company cannot reject the exercised option. Your company need not sign or agree to anything. The government sends you a written modification that exercises the option, and your company is obligated to perform.

169
Q

FAR PART 18, EMERGENCY ACQUISITIONS

FAR Part 18 identifies special flexibilities for emergency acquisitions, such as contracting within disaster areas or warzones.

What contracting flexibilities are available for emergency acquisitions?

A

Many! Most of these contracting flexibilities allow for a significant increase in the dollar value threshold for using certain contracting procedures. For example, emergencies allow for a larger dollar threshold for using simplified acquisition procedures. The intent behind these policies is to acquire goods and services faster in an emergency. Other flexibilities include the ability to waive or relax documentation procedural requirements. Again, the policy is to speed things along to respond quickly to the emergency. Understandably, the priority is to save lives, not “check the boxes” on the forms or
write memos.

170
Q

The Bonds statute requires performance and payment bonds for any construction contract valued in excess of _________?
$150,000
$650,000
$1,000,000
$2000
FAR 28.102-1(a)

A

$150,000

171
Q

Which agency operates SAM?

Department of Defense (DoD)

General Services Administration (GSA)
Government

Accountability Once (GAO)

Department of State (DOS)
FAR 9.404

A

General Services Administration (GSA)
Government

172
Q

A contractor may assign monies due or to become due under a government order/contract only when the contract value totals _________ or more.
$25,000
$1,000
$100
$500
FAR 32.802

A

1,000

173
Q

The least preferred method of contract financing is:
Loan guarantees
Advance payments
Unusual contract financing
Private financing
FAR 32.106

A

Advance payments

174
Q

Acceptable forms of security include all of the following except:
Certified cashier’s checks
Credit card
U.S. bonds or notes
Cash
FAR 28.203-2(a)

A

Credit card

175
Q

No officer or employee of the Government may create or authorize an obligation in excess of funds available, otherwise they have violated the:
Anti-Deficiency Act
Prompt Payment Act
Beeker Act
Availability of Funds clause
FAR 32.702

A

Anti-Deficiency Act

Under the Anti-Deficiency Act, no officer or employee of the Government may create or authorize an obligation in excess of available funds, nor may they obligate the Government in advance of appropriations. Violating this act is a serious offense.

176
Q

Which of the following is not a type of surety?
Co-surety
Individual
Corporate
Multiple
FAR 28.001

A

Multiple

“Multiple” is not a recognized type of surety under FAR. The three types of sureties recognized in FAR are:

Co-surety
Individual
Corporate

177
Q

Which of the following contract types is prohibited by the FAR?

Cost Plus Percentage of Cost

Cost Plus Award Fee

Firm Fixed Price

Fixed ceiling price with retroactive price redetermination
FAR 16.102

A

Cost Plus Percentage of Cost

FAR prohibits Cost Plus Percentage of Cost contracts because they provide no incentive for contractors to control costs. The other contract types are allowed under specific circumstances.

178
Q

Which of the following terms means a list of products that have been examined and tested, and have satisfied all applicable requirements?

Procurement list

Evaluated products list

Federal Supply Schedule

Qualified products list
FAR 9

A

Qualified products list

A Qualified Products List (QPL) refers to a list of products that have been examined, tested, and found to meet all applicable requirements before being approved for procurement.

179
Q

____________ are 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.

Indefinite-Delivery Arrangements

Blanket Purchase Agreements

Basic Ordering Agreements

Fixed-Price Contracts
FAR 16.703

A

Basic Ordering Agreements

Basic Ordering Agreements are 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.

180
Q

FAR PART 9, CONTRACTOR QUALIFICATIONS

FAR Part 9 explains how federal contractors qualify for contracts by the contracting officer’s determination of “responsibility

What is CARS?

A

CPARS is incredibly important for the success (or failure!) of your company in government contracting. Every federal contract above a certain dollar threshold requires the contracting officer to record an assessment of the performance of your company into CPARS.
Therefore, CARS is an online database of past performance of federal contractors.

Other contracting officers and other federal agencies will look up the past performance evaluations of your company within CPARS. If you have negative evaluations or disagreeable information in CPARS, other federal clients will see it and will avoid your company like the plague.

181
Q

FAR PART 9, CONTRACTOR QUALIFICATIONS

FAR Part 9 explains how federal contractors qualify for contracts by the contracting officer’s determination of “responsibility

Are you saying it is difficult and unlikely for my company to change the negative information entered into CPARS?

A

Yes, it is difficult and unlikely for your company to succeed in changing CARS information.
CARS is a tool designed, created, and maintained for the government’s benefit, so the government wants its employees to have broad discretion to be honest and candid about CPARS evaluations.

182
Q

FAR PART 11, DESCRIBING AGENCY NEEDS

FAR Part 11 explains how the government describes what it wants to buy

Why would the government restrict the solicitation to brand name or equal?

A

Brand name or equal allows slightly broader competition than a solicitation limited to a specific brand name. If the government knows that the objective specifications of a brand-name product will meet the requirement, reliance on brand name or equal could make sense.
Whenever possible, the government should restrict to brand name or equal rather than brand name only.
The government does not need the specific brand, but it knows that the performance characteristics of a particular brand will satisfy its needs. If there is some other brand or manufacturer that can provide at least the same objective specifications, the government will have no problem contracting with the alternative brand or manufacturer.
For example, the government could restrict competition to something brand name or equal to the Apple iPhone X. The government could list the objective specifications of the Apple iPhone X, which the contractor must meet or exceed to win the contract. Apple can win this competition by supplying the iPhone X.
However, any Apple competitor can also win this competition if it supplies a cell phone that meets or exceeds the same specifications. In this way, brand name or equal provides more competition,

183
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contracts.

I’m still confused about contract types. Can you provide more guidance?

A

This example will be my last to explain the different “types of types” of contract.
You can find
a government contract
that is cost-reimbursement (payment type);
that is indefinite-delivery, indefinite-quantity or IDIQ (delivery type); that deliversproducts (as opposed to services); and that delivers noncommercial items (as opposed to commercial items).

When someone asks a vague question about this contract- “What type of contract is it?”— what will be your answer? My answer will be: “The payment type is cost-reimbursement.
The delivery type is IDIQ. The contract delivers products, and the products are noncommercial.
Did you want to know about any other aspects of the contract?” Be precise!

184
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contracts

Does the government accept more risk when using a cost-reimbursement contract?

A

Cost-reimbursement contracts make the government nervous. The nature of the work is too complex or difficult to define properly. If the government could define exactly what work needs to be performed, your company would instead receive a fixed-price contractWhenever the project or work is vague and ill-defined, the government may decide to pay your company for its best efforts, rather than for a specified deliverable. Your company gets paid for all its allowable, allocable, and reasonable costs.
This makes the government nervous because there is a very probable risk of a cost overrun.

185
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contrac

What does it mean to say that costs must bereasonable, allowable, and allocable?

A

In cost-reimbursement contracts, the government will reimburse your costs only if they are reasonable, allowable, and allocable.
The contracting officer decides if the costs are reasonable, and the determination is mostly used as a check on ridiculous prices or unnecessary expenses. Allocable means you can tie the costs or a portion of the costs to the particular contract you’re charging them against. The cost might be 100% allocable to a single contract
—a direct cost. Alternatively, the cost might be spread across several contracts-in other words, an indirect cost. The good news is the government will reimburse you for both direct and indirect costs.

Allowability is more complicated. The FAR lists allowable and unallowable costs in FAR Part 31, Contract Cost Principles and Procedures.
Don’t forget that your contract itself might also preclude certain costs from being reimbursed,and that contract language will trump any other guidance you find. In other words, if CAS or the FAR says the cost is allowable but your contract says the cost is unallowable, the cost is unallowable. To read more about these concepts, check out Part 30, Cost Accounting Standards Administration and Part 31, Contract Cost Principles and Procedures.

186
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contract

What is a time and materials contract?

A

Time and materials government contracts are very similar to contracts you see for plumbers, attorneys, or car mechanics. You pay your attorney by the hour, and you pay for your attorney’s costs, such as postage or court filing fees. You pay your plumber by the hour, and you pay for your plumber’s costs, such as pipes, equipment, and new toilets.
When the government is the client, the government pays your company by the hour, and the government also pays for your materials used in the contract. This is the time and materials contract.

187
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contract

What is a labor-hour contract?

A

Labor-hour contracts are a subset of time and materials contracts. Labor-hour contracts are basically the same, except they involve no materials.

The government pays your company only by the hour, for labor. No materials exist in a labor-hour contract. For example, your labor-hour contract pays your company an hourly rate for every hour of work your employee completes onsite at the government building.

188
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contract

What is a wrap rate?

A

The wrap rate is the multiplier your company uses to transform the employee’s direct, hourly cost into a fully loaded labor rate. In the earlier example, the wrap rate is calculated by dividing the fully loaded labor rate by the direct cost of $50 per hour.

Wrap rate = fully loaded labor rate / direct labor
rate
1.3 = $65 / $50
$65 is 130% of $50

n this example, the wrap rate or wrap multiplier is 1.3 or 130%. The fully loaded labor rate is 130% of the direct labor rate your company pays the employee. If you multiply the direct labor rate by 1.3, you arrive at the fully loaded labor rate.

189
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contract

What is an indefinite-delivery, indefinite-quantity or IDIQ contract?

A

An indefinite-delivery, indefinite-quantity or IDIQ contract allows agencies the flexibility to place orders for the amounts they need when the need arises. If the agency knew it needed 1,000 computers in 30 days, the agency could sign a simple purchase order for 1,000 computers. This purchase order would have a definite quantity (1,000) and a definite delivery schedule (within the next 30 days).

But what if the agency knows it needs between 1,000 and 1,000,000 computers at various
points within the next 5 years? Enter the IDIQ contract, which establishes a minimum and maximum quantity (between 1,000 and 1,000,000) and an ordering period (today through the next 5 years). Through this IDIQ contract, the agency can easily satisfy its needs for computers whenever they arise. Next month, the agency can order 2,000 computers. The following month, the agency can place zero orders. At the end of next year, the agency can order 30,000 computers. This flexibility is very convenient for the agency and the contracting office.

If you remember our earlier discussion about the “types of types” of contracts, the IDIQ description pertains to the delivery type.

190
Q

FAR PART 16, TYPES OF CONTRACTS

FAR Part 16 is a useful reference guide for the myriad types of contracts and explains how the government places orders against IDIQ contract

How does the government decide which of the three companies wins each order?

A

Usually, the government will compete each order among the three companies. The terms of the multiple-award, IDIQ contract will usually require the government to give each of the three companies a fair opportunity.

191
Q

FAR PART 28, BONDS AND INSURANCE

FAR Part 28 explains how and when the government requires bonds or insurance

How does the bond, issued by the surety company, protect the government?

A

The bond is a written instrument (contract) between the surety company and a contractor.
The terms of the bond will state that if the contractor fails to fulfill its obligations to the government, the surety company will pay a certain amount of money to compensate the government for its loss. In this way, a bond is somewhat like an insurance policy.

192
Q

FAR PART 28, BONDS AND INSURANCE

FAR Part 28 explains how and when the government requires bonds or insurance

What types of bonds are relevant to government contracting?

A

Bid bond: This type of bond serves as a bid
guarantee, discussed earlier.

Annual bid bond: Instead of executing a series of individual bid bonds, a contractor can provide an annual bid bond that covers all its bids within the same year.

Advance payment bond: Sometimes the government pays a contractor before completing the work. The government wants assurance that the contractor will finish the work (that was already paid for). The advance payment bond covers the cost of the contractor’s obligations.

Performance bond: This type of bond provides coverage for the possibility that the contractor fails to complete performance of the contract.
Be careful to distinguish a performance bond from a bid bond. The bid bond assures against a bidder failing to honor its bid (before beginning work on the contract). The performance bond assures against a contractor failing to complete its contract (after the contract is signed).

Annual performance bond: Instead of executing a series of individual performance bonds, a contractor can provide an annual performance bond that secures performance for all the contractor’s contracts within the same year.

Payment bond: This type of bond assures that the contractor will pay its employees and subcontractors involved in the government contract.

Patent infringement bond: This type of bond secures fulfillment of the contractor’s obligations under a patent clause in a contract.

193
Q

FAR PART 28, BONDS AND INSURANCE

FAR Part 28 explains how and when the government requires bonds or insurance

What types of insurance should I explore to protect my company while performing government contracts?

A

Many! You need to find an excellent insurance broker, agent, or professional to give you insurance advice. Remember, my book is not legal advice, nor is it tax advice, and it is not insurance advice. Contact a qualified professional insurance advisor to meet your insurance needs. This book provides you only the broad strokes to start you on your journey.

As a government contractor, your company probably needs several types of insurance. Even if your company has no government contracts and participates only in the private sector, your company probably needs insurance. Let’s explore the different types:

General liability insurance protects against risks like bodily injury or property damage, which are physical, tangible risks. For example, general liability insurance may cover your company for litigation claims if your employee hurts someone else or destroys someone else’s computer while performing work. General liability is important for any company, including government contractors.

Professional liability insurance protects against abstract risks like errors or omissions in the services your company provides. For exampleprofessional liability insurance may cover your
compensation requirements, but your company
company for litigation claims if your employees
is required to pay these costs to employees
provide inaccurate advice
and commit
who get hurt “in the course and scope” of
negligence. Just like general liability insurance,
their job. If you have no workers’ compensation
professional liability insurance is important for
insurance, your company must pay these costs
any company providing professional services,
out-of-pocket. If you have insurance, the insurer
including government contractors.
pays these costs (in exchange for your monthly premiums). Many states require companies to

Workers’ compensation insurance pays for
carry workers’ compensation insurance.
medical expenses, lost wages, and rehabilitation costs to your employees who become injured or sick at work. Each state has different workers’

194
Q

FAR PART 32, CONTRACT FINANCING

FAR Part 32 explains financing policies for government contracts.

Are prime contractors required to pay small business subcontractors faster?

A

Yes, at least sometimes. The federal.government’s Office of Management and Budget
(OMB) released a memo called “Providing PromptPayment to Small Business Subcontractors.” This policy memo requires that prime contractorsthat receive accelerated payment schedules from the government client must also pay small business subcontractors on an accelerated schedule. The idea is that if the primecontractor gets money faster, the prime contractor is supposed to pay any small business subcontractors faster.

195
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience.

How does a termination clause work in government contracting?

A

In government contracting, the Termination clauses allow the government to abruptly fire or terminate your company. You need to understand the three types of Termination clauses: convenience, default, and cause.

196
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience.

What is the scariest clause in all of government contracting?

A

The scariest clause in all of government contracting is Termination for Convenience of the Government. This clause allows the government to abruptly fire or terminate your company without paying the rest of the money from the remaining contract. To put this in perspective, let’s contrast it with private sector contracts.

You sign a contract with Donald Trump for $500 million worth of supplies across 5 years, $100 million per year. Your company provides the supplies, Donald Trump provides the $500 million. At the end of the first year, Donald Trump delivers his famous line, “You’re fired!”
There is no reason for the termination. It occurs simply for the convenience of The Donald.
In private sector contract law, you are entitled now to sue Donald Trump for at least some of the remaining money on the contract. You spent millions of dollars preparing for this 5-year contract. You hired hundreds of professionals.
By breaking the deal and violating the contract, The Donald harmed your company or deprived it of future revenue. You can sue The Donald for this future revenue-it’s called expectation damages. Expectation damages can be thought of as the dollars you expected to receive if The Donald had carried out the terms of the contract rightfully to its conclusion.

Contrast this private sector example with the frightening realm of government contracting.
Instead of The Donald, you sign a government contract with the Department of Justice for $500 million worth of services over 5 years, $100 million per year. At the end of the first year, the Department of Justice contracting officer writes you an email that states: “You are hereby terminated for the convenience of the government.” Guess what? You cannot sue the government or Department of Justice for the future revenue you lost. You can try, but you will lose. You are not entitled to the expectation damages of the broken deal.

Now you see the reasoning behind why the Termination for Convenience of the Government is the scariest clause in government contracting.
Although you can get paid for a few things after your company is terminated for convenience, you are not entitled to expectation damages.
Aside from some minor costs your company incurred to wind down the contract, the government walks away with zero liability. This extraordinary power of the government can bankrupt your company.

Terminations for convenience are a risk that almost every government contractor assumes, whether knowingly or in ignorance. You must price in the risk of these terminations for your long-term business plans. Every day thesun rises is another day the government can terminate your entire contract and not pay your company for breaking the deal. Technically, the
“deal” or contract says the government can do this and your company agrees!

197
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience.

What if my company is the subcontractor performing work for a prime contractor?

A

If your company is the subcontractor, you should check your subcontract to see if the prime contractor has the right to terminate your company for convenience. If so, you should negotiate to change the subcontract terms to allow the prime contractor to terminate your company only if the government terminates the prime contractor.

In other words, do not give any prime contractor the discretion to terminate your subcontract.
Allow the prime contractor to terminate your company only to comply with a termination by the government. Include a requirement for the prime contractor to show proof of this termination.

198
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience.

What is the Termination for Cause clause?

A

When the government procures commercial items (which can be products or services), the government is supposed to use a different clause that does not allow terminations for default.
Commercial government contracts should include a clause that allows for terminations “for cause.”

Terminations for cause in commercial government contracts must be based on some failure of your company. This process differs completely from the scary Termination for Convenience of the Government clause. Contract language about termination for cause is nothing to lose sleep over, but actually getting terminated for cause is a nightmare! You can read more about terminations for default to understand why you must avoid terminations for cause or for default.

199
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience

What are the warning signs that the government plans to terminate my contract?

A

The government may send you two warning signs before terminating your company. If you see any correspondence with the words Cure Notice or Show Cause, you need to go on red alert. Assemble your company’s chain of command and get in touch with your expert for government contracting.

200
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience

What is a Cure Notice?

A

The Cure Notice provides your company a
written warning that something is wrong. Your company is doing something or failing to do something that may breach the contract and result in a termination for default.

201
Q

FAR PART 49, TERMINATION OF CONTRACTS

FAR Part 49 explores the scariest clause in all of government contracting, and explains the difference between termination for default (or cause) and termination for convenience

What is a Show Cause Notice?

A

Show Cause is a more urgent notice that your company may soon be terminated for default.
It warns your company to spell out any reasons.why the government should not terminate you for default. Usually the Cure Notice comes before the Show Cause Notice, which comes just before your oncoming termination for default.
Receiving a Show Cause Notice is like hearing the ominous question, “Any last words?” or “What do you want on your tombstone?” It is your last opportunity for rescue before termination.

202
Q

Rights of the government to use, disclose, reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display publicly, in any manner and for any purpose, and to have or permit others to do so, is called:

Unrestricted rights
Restricted rights
Unlimited rights
Limited rights
FAR 27.401

A

Unlimited rights

203
Q

This law states laborers and mechanics must be paid time and a half for overtime work (over 40 hours/week)?

Wage Rate Requirements statute

Kickbacks statute

Minimum Wage Act

Contract Work Hours and Safety Standards Act
FAR 22.403-3

A

Contract Work Hours and Safety Standards Act

204
Q

A Certificate of Competency is:

A Certificate issued by the Contracting officer upon reviewing a small business concern and determining the concern is capable of performing a specific Government contract.

The Certificate by the small business concern stating its ability to perform a specific Government contract.

A Certificate issued by the Department of Labor upon reviewing a small business concern and determining the concern is capable of paying prevailing wage rates on a specific Government contract.

A Certificate issued by the SBA stating that the holder is responsible for the purpose of receiving and performing a specific Government contract.
FAR 19.601(a)

A

A Certificate issued by the SBA stating that the holder is responsible for the purpose of receiving and performing a specific Government contract.

205
Q

Which of the following is a true statement about small business set-asides?
The purpose of small business set-asides is to award certain acquisitions exclusively to women-minority, women-disabled small businesses.

Contracting officers may not reject SBA’s set-aside recommendations.

Small businesses are determined by gross rentable square footage.

Set-asides may be total or partial.
FAR 19.5

A

Set-asides may be total or partial.

206
Q

The Service Contract Labor Standards includes which of the following statutory exceptions where it does not apply.

Any contract for janitorial services.

Any contract for nonseverable services.

Any contract for severable services.

Any contract for public utility services.
FAR 22.1003-3 and 22.604

A

Any contract for public utility services.

207
Q

Where can contracting officers find available contractors for activities related to disaster or emergency relief inside the United States and outlying areas?
FEMA.gov
SAM.gov
GSA.gov
Vendor Websites
FAR 26.205

A

SAM.gov

208
Q

The NAICS Code stands for _______ Code:
New Age Industrial Category System

Native American Industrial Code System

North American Industry Classification System

Novel American Industrial Cross-reference Standards
FAR 19.102

A

North American Industry Classification System

209
Q

The __________ Act makes it unlawful to induce, by force, intimidation, threat of procuring dismissal from employment, or otherwise, any person employed in the construction or repair of public buildings or public works, financed in whole or in part by the United States, to give up any part of the compensation to which that person is entitled under a contract of employment.

Copeland (Anti-Kickback) Act

Contract Work Hours and Safety Standards Act

Wage Rate Requirements Statute

Minimum Wage Act
FAR 22.403-2

A

Copeland (Anti-Kickback) Act

210
Q

This law provides that federal contracts in excess of $2,000 to which the United States or the District of Columbia is a party for construction, alteration, or repair (including painting and decorating) of public buildings or public works within the United States, shall contain a clause that no laborer or mechanic employed directly upon the site of the work shall receive less than the prevailing wage rates as determined by the Secretary of Labor.

Wage Rate Requirements (Construction)

Contract Work Hours and Safety Standards Act

Minimum Wage Act

Kickbacks statute
FAR 22.404-1(b)

A

Wage Rate Requirements (Construction)

The correct law is the Wage Rate Requirements (Construction), formerly known as the Davis-Bacon Act.

This law mandates that federal contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works within the United States must include a clause ensuring that laborers and mechanics working directly on the site are paid no less than the locally prevailing wage rates, as determined by the Secretary of Labor.

211
Q

Service Contracts valued in excess of ___________ must contain mandatory provisions regarding minimum wage and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates.
$2,000
$1,000
$1,500
$2,500
FAR 22.1002-1

A

2500

Service contracts valued in excess of $2,500 must contain mandatory provisions regarding minimum wage and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates, as per FAR 22.1002-1.

212
Q

What does FEMP stand for?

Federal Energy Management Program

Federal Energy Management Products

Federal Environment Management Program

Federal Environment Management Products
FAR 23.103

A

Federal Energy Management Products

213
Q

All contracts subject to 41 U.S.C. chapter 65, (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding _______shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.
$250,000
$2,500
$10,000
$15,000
FAR 22.6

A

15,000

Contracts subject to 41 U.S.C. chapter 65, which includes the Service Contract Act and the Walsh-Healey Public Contracts Act, and entered into by the entities mentioned, must include the required stipulations if the contract amount exceeds $15,000.

214
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories.

Is there a specific goal for how many contracts should be set aside for small businesses?

A

Yes, small businesses are supposed to receive about 23 percent of all eligible government contracts each year. Yet small businesses are not the only category eligible for contract set-asides. Other categories, which are subsets of the general category of small business, also have set-aside goals.

215
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories.

What are the other socioeconomic categories that receive special preferences in government contracting?

A

The variety of small business and socioeconomic categories can be overwhelming:

-small business (SB)

-veteran-owned small business (VOSB)

-service-disabled, veteran-owned small business (SDVOSB)

-women-owned small business (WOSB)

-economically disadvantaged, women-owned small business (EDWOSB)

-historically underutilized business zone small business (HUBZone)

-Small Business Administration’s 8(a) business development program (8a)

-small disadvantaged business (SDB)

216
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories.

What is a NAICS code?

A

NAICS codes consist of six numbers. The government uses NAICS codes to classify companies and to track economic data. In government contracting, the NAICS code really matters in determining what standards a small business must meet to qualify for a small business set-aside contract. These NAICS code standards rely on employee count and average revenue.

The NAICS code determines the revenue or employee limitations that apply to that particular set-aside. For example, one NAICS code has an employee limit of 50. Another NAICS code has a revenue limit of $500 million.

217
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories.

How does the NAICS code relate to a small business set-aside?

A

Each NAICS code corresponds to a particular industry subset. For example, there is a NAICS code for computer hardware and a NAICS code for custom computer programming services.
There is also a NAICS code for management consulting. Your company can qualify as a small business under several different NAICS codes. Or your company may qualify under no NAICS codes if it exceeds all the relevant size and revenue standards. In contrast, the smallest companies may qualify under every single
NAICS code.

Your company is only a small business for government contract set-asides that designate the particular NAICS codes that qualify you as a small business. In other words, you must read each government contract set-aside, look for the NAICS code, and confirm that your company qualifies as a small business under that particular NAICS code.

If the set-aside contract specifies a NAICS code that qualifies you as a small business, you are eligible as a prime contractor. If the set-aside contract designates one of the NAICS codes that does not qualify you as a small business, you are not eligible.

Again, your company is a small business only under certain NAICS codes. The only way for.your company to be a “universal small business” under every NAICS code-with no possibility of being considered a large business-is if your company employee count and revenue are below every single NAICS code standard that exists.

218
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories.

Who assigns my company its NAICS codes?

A

Nobody assigns a NAICS code or NAICS codes to your company. You self-assign your companyone or more NAICS codes. Your primary NAICS code should be whatever activity dominates or generates the most revenue for your business.
Although you can assert whatever NAICS codes you want, remember that competitors can challenge your status as a small business under a particular NAICS code.

219
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories.

What are the small business andsocioeconomic categories and whom do they benefit
?

A

VOSB: Veteran-owned small businesses are owned and controlled by veterans of the United States military. The policy purpose is to help veterans in government contracting.

SDVOSB: Service-disabled, veteran-owned small businesses are owned and controlled by veterans who have a documented disability resulting from their service in the US military. The policy purpose is to help service-disabled veterans in government contracting.

WOSB: Women-owned small businesses are owned and controlled by women, of course. The policy purpose is to help women in government contracting.

EDWOSB: Economically disadvantaged, women-owned small businesses are owned and controlled by women who qualify under certain wealthor income limitations. The policy purpose isto help relatively poor women in government contracting.

HUBZone: Historically underutilized business zone small businesses must be located in poor, underdeveloped, or damaged areas. The policy purpose is to increase employment opportunities, investment, and economic development in specific areas. You can research what areas qualify as HUBZones on the Small Business Administration website. You might be surprised at what areas qualify. For example, about one-half of Washington, DC qualifies as a HUBZone.

8(a) business development program: The name comes from Section 8(a) of the Small Business Act. The 8(a) program helps small disadvantaged businesses grow and compete in government contracting. The 8(a) company is eligible for procurement assistance, business consulting, financial assistance, and other advantages provided by the Small Business Administration.
The hope is that after years of this help from the Small Business Administration, the 8(a) company will be able to compete in the open market.

SDB: Small disadvantaged businesses are owned and controlled by socially and economically disadvantaged people. These standards are subject to change, such as the specific net worth and total assets limitations to qualify as economically disadvantaged. Socially disadvantaged individuals currently means people who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control. Currently, the Small Business Administration presumes that these groups are socially disadvantaged: African American, Native American, Asian-Pacific American, Subcontinent Asian American, and other groups specially designated by the Small Business Administration. People not clearly in these presumptive groups must prove their disadvantage by submitting evidence.

220
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories

How much of the prime contract must my company perform when subject to one of the
Limitations on Subcontracting clauses?

A

Again, each version of the Limitations on
Subcontracting clause is slightly different.
There are differing percentage limitations and differing ways to calculate the percentage. Some calculate based on money paid to employees, some allow contractors to subtract the cost of materials, and some examine total contract values rather than company expenses. Generally, these Limitations on Subcontracting clauses prohibit your company from subcontractingaway more than 50 percent or one-half of the contract.

Sometimes the percentage limitation is greater than 50 percent. In those cases, your company can subcontract away more work. For example, construction contracts have more flexibility because it’s common for complex construction projects to have many different subcontractors.

221
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories

What is the Limitations on Pass-Through
Charges clause?

A

The Limitations on Pass-Through Charges clause is similar to the Limitations on Subcontractingclause. The difference is that the Limitations on Pass-Through Charges clause can be inserted into government contracts that are not set aside for small businesses.

The similarity between the two clauses is that they both create strict limitations on how much work the prime contractor can subcontract. A second similarity is that both clauses enforce the government expectation that any company that receives a contract will perform a significant amount of the work.

222
Q

FAR PART 19, SMALL BUSINESS PROGRAMS

FAR Part 19 explains how the government encourages the award of prime contracts and subcontracts to small businesses and other socioeconomic categories

What is the policy goal for the Limitations on Pass-Through Charges clause?

A

The Limitations on Pass-Through Charges clause prevents a prime contractor from getting the government to pay for the middleman. In this discussion, the “middleman” does not provide value and collects fees only by connecting the government to a lower-tier subcontractor.

The government expects subcontracting, but it does not want to pay excessive fees to middleman government contractors. This is the purpose of the Limitations on Pass-Through
Charges clause.

Always read the specific language of this clause, but it generally requires the prime contractor to report to the contracting officer if any subcontractor will perform more than 70 percent of the work. It also requires a report if any lower tier subcontractor will perform more than 70 percent of the work of the higher tier subcontractor.

The Limitations on Pass-Through Charges clause prohibits the government from paying
“excessive” pass-through charges. The trigger for investigating whether pass-through charges are
“excessive” is any subcontract for more than 70
percent of the work.

You must distinguish between the threshold for notification (70 percent) and the prohibition on paying “excessive” pass-through charges.
“Excessive” is a relative and subjective term. The government contracting officer will determine whether the pass-through charges are excessive.

Sometimes the government will pay pass-through charges if the contracting officer determines they are not excessive.

223
Q

FAR PART 22, APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

FAR Part 22 prescribes policy for the implementation of labor laws in government contracts.

How does the SCA protect these service employees?

A

The SCA requires your company to pay these employees the prevailing wages and benefits in the local region. The Department of Labor issues a wage determination that defines the minimum level of wage you must pay these workers to satisfy the “prevailing wages.” In some contracts above a certain dollar threshold, the SCA also requires your company to pay overtime of 150% of the worker’s regular pay rate for any hours worked beyond 40 hours in a workweek. In this way, the SCA prevents contractors from undercutting the wages and benefits of its service employees.

224
Q

FAR PART 22, APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

FAR Part 22 prescribes policy for the implementation of labor laws in government contracts.

What is the Davis-Bacon Act?

A

Think of the Davis-Bacon Act (DBA) as a variation of the SCA used for government contracts for construction. While the SCA protects service employees, the DBA protects construction workers on certain government contracts.

225
Q

FAR PART 22, APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

FAR Part 22 prescribes policy for the implementation of labor laws in government contracts

How does the DBA protect construction workers on certain government contracts?

A

Like the SCA, the DBA requires your company to pay covered employees the prevailing wages and benefits in the local region. Once again, the Department of Labor determines the prevailing wages and benefits for the local region. In some contracts above a certain dollar threshold, the DA also requires your company to pay overtime of 150% of the worker’s regular pay rate for any hours worked beyond 40 hours in a workweek.

226
Q

FAR PART 22, APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

FAR Part 22 prescribes policy for the implementation of labor laws in government contracts

What is the Walsh-Healey Public Contracts
Act?

A

Think of the Walsh-Healey Public Contracts Act
(PCA) as a variation of the SCA used for government contracts for manufacturing, or for furnishing materials, supplies, articles, or equipment.

227
Q

FAR PART 22, APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

FAR Part 22 prescribes policy for the implementation of labor laws in government contracts

How does the PCA protect these manufacturing, materials, supplies, articles, or equipment employees?

A

Unlike the SCA and DBA, the PCA does not use a prevailing wages analysis. Instead, the PCA requires your company to pay covered employees the federal minimum wage from the Fair Labor Standards Act (FLSA) and overtime pay of 150% of the regular pay rate for any hours worked beyond 40 hours in a workweek. The PCA also sets certain safety and health standards for your covered employees.

228
Q

FAR PART 22, APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

FAR Part 22 prescribes policy for the implementation of labor laws in government contracts

What do the Service Contract Act, Davis-Bacon, and Walsh-Healey laws have in
common?

A

Each of these laws, applicable to certain government contracts, protect American workers by setting standards for wages, benefits, safety precautions, or work schedules.
SCA protects contractors qualifying as service employees. DBA protects contractor employees in construction and related activities. PCA protects contractor employees in manufacturing, materials, supplies, articles, or equipment activities.

229
Q

FAR PART 25, FOREIGN ACQUISITION

FAR Part 25 prescribes policy for acquiring foreign supplies, services, and construction materials, as well as policy for contracts performed outside the United States

What are some of the laws or regulations discussed or implemented in FAR Part 25?

A

Buy American Act (BAA)
Trade Agreements Act (TAA)
International Traffic in Arms Regulation (ITAR)

230
Q

FAR PART 26, OTHER SOCIOECONOMIC PROGRAMS

FAR Part 26 explains the Indian Incentive Program and the Stafford Ac

What kind of preference does the Stafford Act provide for local companies?

A

There are two types of preference under the Stafford Act: evaluation preference and set-asides. An evaluation preference means that local companies get a higher evaluation rating because they are local, providing them a distinct advantage in competitive contracts.
A local area set-aside is much stronger and means that only local companies are eligible for the contracts, reserving the contracts exclusively for local companies. When using an evaluation preference, nonlocal companies can win the contracts. When using a local area set-aside, nonlocal companies are barred from the competition.

231
Q

Types of Services

A

Types of Services:

FAR parts 34, 35, 36, 37, 39, and 41

FAR Part 34 - Major System Acquisition

FAR Part 35 - Research and Development Contracting

FAR Part 36 - Construction and Architect-Engineer Contracts

FAR Part 37 - Service Contracting

FAR Part 39 - Acquisition of Information Technology

Part 41 - Acquisition of Utility Services

232
Q

An Independent Government Estimate of construction costs shall be prepared and furnished to the Contracting officer for each proposed contract and contract modification anticipated to exceed:
$100,000
$1,000,000
$150,000
$500,000
FAR 36.203(a)

A

150,000

233
Q

______________ means the lead agency responsible for managing, administering, or monitoring overall use of the FFRDC under a multiple sponsorship agreement
Non-Sponsor
Multiple Sponsor
Primary Sponsor
Sponsor
FAR 35.017(b)

A

Primary Sponsor

234
Q

GSA is authorized by 40 U.S.C.501 to contract for utility services for periods not exceeding ___ years.
10
5
15
25
FAR 41.103(a)

A

10

235
Q

Explain the differences between the following Acts:
Davis-Bacon Act
Walsh-Healy Act
Equal Opportunity Act
Service Contract Act

A
  1. Davis-Bacon Act
    Purpose: The Davis-Bacon Act (1931) ensures that laborers and mechanics employed on federal construction projects receive wages and benefits that are not less than the local prevailing wage.
    Scope: Applies to federal or federally assisted construction contracts over $2,000 for public buildings or public works projects.
    Key Provisions:
    Contractors must pay workers at least the locally prevailing wages and fringe benefits, as determined by the Secretary of Labor.
    Applies specifically to construction, alteration, or repair of public buildings and public works.
  2. Walsh-Healy Public Contracts Act
    Purpose: The Walsh-Healy Act (1936) applies to contracts for the manufacture or furnishing of materials, supplies, articles, and equipment to the federal government, ensuring fair labor practices.
    Scope: Covers supply contracts exceeding $15,000, specifically dealing with goods and equipment procurement by the federal government.
    Key Provisions:
    Workers must be paid at least the federal minimum wage.
    Limits work hours to 40 hours per week and mandates overtime pay for hours worked over 40.
    Prohibits child labor and ensures safe and sanitary working conditions.
    Does not apply to construction contracts, which are covered by the Davis-Bacon Act.
  3. Equal Opportunity Act
    Purpose: The Equal Opportunity Act refers to anti-discrimination laws and regulations aimed at preventing employment discrimination on the basis of race, color, religion, sex, national origin, and other protected classes.
    Scope: The most relevant to federal contracting is Executive Order 11246, which applies to federal contractors and subcontractors.
    Key Provisions:
    Requires affirmative action plans from contractors to ensure equal employment opportunities.
    Enforced by the Office of Federal Contract Compliance Programs (OFCCP).
    Often associated with fair hiring practices, this act promotes nondiscrimination across a broad range of industries and government contractors.
    This differs from the other acts, as it focuses on anti-discrimination rather than wages and labor conditions.
  4. Service Contract Act (SCA)
    Purpose: The Service Contract Act of 1965, also known as the McNamara-O’Hara Service Contract Act, ensures that service employees working on federal contracts are paid fair wages and receive adequate benefits.
    Scope: Applies to federal contracts over $2,500 that involve services provided to the federal government, such as janitorial, maintenance, or security services.
    Key Provisions:
    Requires contractors to pay service employees wages and fringe benefits at least equal to those prevailing in the locality.
    Enforces safe and sanitary working conditions.
    Covers a broad range of service contracts but does not apply to goods or construction contracts (which fall under Davis-Bacon or Walsh-Healy).

Summary of Differences:
Davis-Bacon Act: Governs wages on construction contracts.

Walsh-Healy Act: Governs wages, hours, and labor standards for supply contracts.

Equal Opportunity Act: Prevents discrimination in employment for federal contractors.

Service Contract Act: Governs wages and benefits for service employees on federal contracts.

236
Q

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review.

What is the primary purpose of research and development contracting?

A

The primary purpose of research and development contracting is to advance scientific and technical knowledge, which is an abstract goal. Other types of contracting have concrete goals, such as delivering 2,000 pounds of crude oil or mowing 100 square miles of grass on an Army base.

Research and development contracts have abstract goals that cannot be described in advance, in contrast to supplies and services, which can be defined clearly. The government cannot predict the future, nor can it predict which research programs will succeed or fail. Therefore, research and development contracting encourages the top minds in science, technology, and industry to submit unique, creative proposals, usually through the Broad Agency Announcement process. The government uses experts in the same fields to judge the technical merits of these proposals with the lofty goal of advancing the state of the art.

237
Q

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review.

What is a Broad Agency Announcement?

A

Broad Agency Announcements (BAA) are used to announce the government’s interest in one or more research topics.
BAAs should only be used when the government expects meaningful proposals with varying technical or scientific approaches. In other words, the government does not know what it wants, other than to explore new frontiers of science or technology.

238
Q

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

Why are research BAAs so different from traditional government contracting?

A

Remember this phrase: “No common Statement of Work.” When using BAAs, the government expects a wide variety of possible research programs, which is different from most government contracting competitions. In most competitions, each company competes to provide the best solution for the same Statement of Work. In a BAA competition, every company submits a different researchidea making it nearly impossible to compare the proposals against one another sensibly. When contracting for research, there is no common Statement of Work.

239
Q

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What are the four requirements of a BAA?

A

The BAA must describe the agency’s research interest(s), so that industry understands the broad topics of the BAA. The method of evaluation, including the criteria for selection and their relative importance, must be described in the BAA. The government must specify the period during which proposals will be accepted. Finally, the BAA must contain instructions for preparing and submitting proposals.
Therefore, the BAA must answer the following questions:
What is the research topic?
How will proposals be evaluated?
When can proposals be submitted and accepted?
What must proposals contain and how must they be submitted?

240
Q

FAR PART 35, RESEARCH AND DEVELOPMENT CONTRACTING

FAR Part 35 provides special contracting procedures for research and development, including Broad Agency Announcements with peer or scientific review

What are grants, cooperative agreements, and Other Transactions?

A

Grants are appropriate when the research topic stimulates an area that benefits public policy, such as cancer research, but the government needs little to no involvement in the process. If you receive a grant, your company may receive money with little expected in return other than a final report of research results. Cooperative agreements are much like grants-stimulating research rather than obtaining direct benefits or deliveries-yet cooperative agreements allow greater government involvement in the research process.
Other Transactions use a special authority that allows the government to craft flexible contracts for research or prototypes, with almost as much leeway as a private-sector contract, unburdened from most of the laws, regulations, and policy shackles that handcuff traditional government contracts. One policy goal of Other Transactions is to attract nontraditional, innovative companies that otherwise avoid government contracts because of restrictive regulations like the FAR, grasping intellectual property clauses, or complicated Cost Accounting Standards. Any BAA should specify exactly which types of government contracts or agreements it intends to award, such as FAR-based procurement contracts, grants, cooperative agreements, and Other Transactions.

241
Q

FAR PART 36, CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

FAR Part 36 provides contracting procedures for the special fields of construction, architecture, engineering, and related services.

Why is construction contracting different?

A

Construction creates a building or other structure, possibly from the ground up. So many things can go wrong: accidents, delays, shady subcontractors, weather problems, structural collapses, and unforeseen conditions. With so many different steps in the construction process
-excavation, foundation, concrete, drywall, insulation, masonry-construction involves an exceptionally long chain of subcontractors, and “subcontractors to the subcontractors.” Construction involves many points of failure and catastrophic failure can literally kill people.

Government contracts for construction use special clauses to mitigate these risks, such as clauses for site inspection, subcontracting, liquidated damages,
workmanship,
permits, accident prevention, and cleaning up. You will not encounter these special construction clauses in the performance of government contracts for supplies, services, or research and development. Construction is a special breed.

242
Q

FAR PART 36, CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

FAR Part 36 provides contracting procedures for the special fields of construction, architecture, engineering, and related services.

What are architect-engineer services?

A

Architect-engineer (A-E) services include professional services required by state law to be performed by licensed architects or engineers, such as the design or construction of real estate property. A-E services can also include incidental services like surveying property boundaries, performing studies, mapping, or soil engineering.

243
Q

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What is the difference between a PWS and SOW?

A

A Performance Work Statement (PWS) describes measurable performance standards (quality, timeliness, quantity) and focuses on the desired outcome. In contrast, a Statement of Work (SOW) provides detailed instructions for how to perform the work.

For example, a SOW might state that “the contractor shall use a gas-powered lawn mower, three times per month, during daylight hours to mow the grass on the Army base.” In contrast, a PWS might state that “the contractor shall keep the grass on the Army base between three and five inches in height at all times.” The SOW dictates exactly how the contractor will cut the grass, while the PWS lets the.contractor figure out the most sensible way to achieve the desired result.

This example PWS has measurable performance standards: the height of the grass should be always between three and five inches. In this example, the government’s method of measuring the contractor’s performance might be a “spot check” once per week with measuring tape.

244
Q

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

What are personal services?

A

In government contracting, personal services refers to a contract that creates an employer-employee relationship.
Of course, hiring “contractors” is designed specifically to avoid creating an employer-employee relationship. The government employee is supposed to hire a contractor to perform a contract, wherein the contractor uses its own employees. In this way, the government maintains a contractual relationship with its contractor, and does not create an employer-employee relationship.

245
Q

FAR PART 37, SERVICE CONTRACTING

FAR Part 37 encourages performance-based acquisition and provides contracting policy for service contracts.

Why does the government avoid creating personal services contracts?

A

I will tell you a secret. The secret reason is that if a government contractor performs personal services, the government may be liable for benefits owed to employees, such as overtime, health care, and pensions. You may have heard that federal employees have extraordinary benefits when compared to the private sector. The government fears the possibility of a government contractor successfully suing the government for a lump-sum payment representing these benefits.

246
Q

As part of the Homeland Security Act of 2002, Pub. L. 107-296, Congress enacted the SAFETY Act to:
Promote a safe workplace including a drug free workplace.

Encourage contractors not to text while driving.

Provide risk management and litigation management protections for sellers of Qualified Anti-Terrorism Technology (QATT) in the supply and distribution chain.

Require cybersecurity protocols and related technologies.
FAR 50.203

A

Provide risk management and litigation management protections for sellers of Qualified Anti-Terrorism Technology (QATT) in the supply and distribution chain.

247
Q

If the contractor does not have an approved purchasing system, consent to subcontract is required for all of the following except which?

Cost-reimbursement contracts

Fixed-price contracts below the simplified acquisition threshold

Time-and-materials contracts

Letter contracts
FAR 44.201-1(b)

A

Fixed-price contracts below the simplified acquisition threshold

248
Q

If the Government has determined that it is in its best interests to purchase from the committee for Purchase from People Who Are Blind or Severely Disabled, the contracting officer shall authorize contractors purchasing supply items for Government use that are available from the Committee for Purchase from People Who Are Blind or Severely Disabled to purchase such items if they are available from the following agencies through their distribution facilities except for:

Defense Logistics Agency (DLA),

General Services Administration (GSA)

National Aeronautics Space Administration (NASA)

Department of Veterans Affairs (VA)
FAR 51.101

A

National Aeronautics Space Administration (NASA)

249
Q

What law empowers the President to authorize agencies exercising functions in connection with the national defense to enter into, amend, and modify contracts, without regard to other provisions of law related to making, performing, amending, or modifying contracts, whenever the President considers that such action would facilitate the national defense?
Executive Law 49-005
Public Law 85-804
E.O. 10673
OMB Circular 90-043
FAR 50.101-1

A

Public Law 85-804

250
Q

Which instrument is indicated by the letter designation A, in position 9 of the PIID?
Basic ordering agreements.
Basic purchasing agreements
Blanket ordering agreements
Blanket purchase agreements
FAR 4.1603(3)

A

Blanket purchase agreements

he Procurement Instrument Identifier (PIID) is a unique identifier used for contracts, orders, and other procurement instruments. The PIID format is standardized by FAR and provides essential information about the instrument type. Here’s a breakdown of the positions in the PIID:

Positions 1–6: Issuing Agency Code (AAC)
A six-character code that identifies the contracting office or agency issuing the procurement instrument.
Example: “W912QR” (Army Corps of Engineers).
Positions 7–8: Fiscal Year
A two-digit code indicating the fiscal year in which the procurement instrument was issued.
Example: “23” for the fiscal year 2023.
Position 9: Instrument Type
A one-letter code that identifies the type of procurement instrument:
A: Blanket Purchase Agreement (BPA)
B: Invitation for Bid (IFB)
C: Contract of all types (except IDIQ and GWAC)
D: Indefinite Delivery Contract (including task orders and delivery orders)
F: Purchase Order (PO)
G: Basic Ordering Agreement (BOA)
H: Other Transactions
I: Agreements (cooperative and other non-procurement agreements)
Positions 10–17: Serial Number
An eight-character code that uniquely identifies the specific procurement instrument. This is usually alphanumeric and assigned by the agency.
Example: “00012345” (sequential identifier of the specific instrument).

251
Q

In the elements of a PIID, positions 7 through 8 are the last two digits of the fiscal year in which the procurement instrument is issued or awarded. What do these digits refer to?
The date the action is signed, rather than the effective date
The date the effective date was awarded, rather than signed
The date the action was drafted, rather than the effective date
The date the effective date was signed, rather than the date the action was signed
FAR 4.1603(2)

A

The date the action is signed, rather than the effective date

252
Q

The National Industrial Security Program Operating Manual (NISPOM) is implemented in which two publications? The National Industrial Security Program Operating Manual (NISPOM) (32 CFR part 117) and the _________:
DoD Manual 5220.22, Volume 2, National Industrial Security Program: Industrial Security Procedures for Government Activities.

DoD Manual 5220.20, Volume 5, National Industrial Security Program: Industrial Security Procedures for Government Activities.

DoD Manual 5220.22, Volume 5, National Industrial Security Program: Industrial Security Procedures for Civilian Activities.

DoD Manual 5220.20, Volume 2, National Industrial Security Program: Industrial Security Procedures for Civilian Activities.
FAR 4.402(b)

A

DoD Manual 5220.22, Volume 2, National Industrial Security Program: Industrial Security Procedures for Government Activities.

253
Q

Who is responsible for performing CAS administration for all contracts and subcontracts in a business unit?
Cognizant Federal Agency Official
Contracting Officer
Head of Contracting Agency
Head of Agency
FAR 30.601

A

Cognizant Federal Agency Official

254
Q

FAR PART 4, ADMINISTRATIVE AND INFORMATION MATTERS

FAR Part 4 describes the administrative aspects of contract execution, including distribution, signatures, numbering, reporting, file retention, and the Federal Procurement Data System.

What is a Procurement Instrument Identifier (PIID)?

A

Procurement Instrument Identifier or PIID is a fancy name for the contract number. Most federal government contract numbers look like this:

AA1234-20-A-0005

Six characters, a dash, two numbers, a dash, one letter, a dash, followed by four numbers. You may find the entire contract number written with no dashes.

The first six characters (in my example, “AA1234”) identifies the contract office. Each contract office has its own set of six characters, often consisting of two letters and four numbers.

The second set of two numbers (in my example, “20”) refers to the fiscal year during which the contract was signed. If you see “20,” that contract was signed in fiscal year 2020. If you see “15,” that contract was signed in fiscal year 2015.
Remember, the government’s fiscal year starts October 1 and ends September 30.

The single letter (in my example, “A”) gives you a clue about the contract type.

Finally, the last set of four numbers (in my example, “0005”) is a numerical counter for agency convenience. The first contract of that fiscal year will end with “0001.” The second contract will end with “0002,” and so on.

255
Q

FAR PART 4, ADMINISTRATIVE AND INFORMATION MATTERS

FAR Part 4 describes the administrative aspects of contract execution, including distribution, signatures, numbering, reporting, file retention, and the Federal Procurement Data System.

Does the contracting officer have a duty to distribute copies of the signed contract or modification?

A

Yes. Within 10 working days after everyone signs, the contracting officer is supposed to send your company a copy of the executed contract or modification. Expect your copy to be sent by email.

256
Q

FAR PART 4, ADMINISTRATIVE AND INFORMATION MATTERS

FAR Part 4 describes the administrative aspects of contract execution, including distribution, signatures, numbering, reporting, file retention, and the Federal Procurement Data System.

What is the Federal Procurement Data System (FPDS)?

A

The Federal Procurement Data System (FPDS) is a public database of government contract actions. Various data elements about contract actions are available on the FPDS website, which is www.fpds.gov.

257
Q

FAR PART 4, ADMINISTRATIVE AND INFORMATION MATTERS

FAR Part 4 describes the administrative aspects of contract execution, including distribution, signatures, numbering, reporting, file retention, and the Federal Procurement Data System.

Who uses the data in FPDS?

A

Congress, the Government Accountability Office, the President of the United States, and other federal agencies monitor and analyze the data in FPDS to track various policy goals. For example, the Small Business Administration can generate reports on the percentage of government contracts awarded to small businesses, women-owned small businesses (WOSB), or other categories. Congress can analyze FPDS reports to determine how many contracts are awarded with or without competition.

258
Q

FAR PART 4, ADMINISTRATIVE AND INFORMATION MATTERS

FAR Part 4 describes the administrative aspects of contract execution, including distribution, signatures, numbering, reporting, file retention, and the Federal Procurement Data System.

Can or should I look at the data in FPDS?

A

Yes, you can and should use FPDS, which is a free resource, available to anyone with an Internet connection. You can search FPDS to see what types of contracts your competitors hold, what your potential federal clients are buying, and how much money is spent on the goods or services in your target market. FPDS is a powerful resource for open-source intelligence, market research, and competitive analysis.

259
Q

FAR PART 4, ADMINISTRATIVE AND INFORMATION MATTERS

FAR Part 4 describes the administrative aspects of contract execution, including distribution, signatures, numbering, reporting, file retention, and the Federal Procurement Data System

Do modifications count as contract actions?

A

Yes, modifications to contracts count as contract actions that must be reported to FPDS.

260
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulations.

What is the Cost Accounting Standards Board?

A

The Cost Accounting Standards Board (CASB) was created by Congress to establish cost accounting standards for uniformity and consistency in the measurement, assignment, and allocation of costs for certain government contracts. The CASB established the Cost Accounting Standards.

261
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulations

What are the Cost Accounting Standards?

A

The Cost Accounting Standards (CAS) are 19 guidelines or standards created by the CASB specifically for government contracts. If your company wins a CAS-covered government contract, you may be required to follow some or all the Cost Accounting Standards for that specific contract.

262
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulations

Are you saying that CAS coverage applies to my entire company?

A

No, CAS coverage applies on a contract-by-contract basis.
Companies are not subject to CAS coverage. Only contracts may be subject to CAS coverage.

Some, all, or none of your company’s government contracts may be subject to CAS coverage. In any case, CAS coverage is applicable to the contract, not to your company. However, your company may need to make companywide changes to accommodate the CAS rules, even though CAS coverage applies on a contract-by-contract basis.

263
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulations

What are some examples of the 19 Cost Accounting
Standards?

A

Accounting for Unallowable Costs

Accounting for Acquisition Costs of Materials

Allocation of Direct and Indirect Costs

Consistency in Allocating Costs Incurred for the Same Purpose

264
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulation

What does modified CAS coverage mean?

A

A contract requiring modified CAS coverage must follow only four specific Cost Accounting Standards.

265
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulation

What is the purpose of applying modified CAS coverage
versus full CAS coverage?

A

Think of modified CAS coverage as “dipping your toe in the water.” The dollar thresholds and number of CAS-covered government contracts will determine whether your
contract(s) require full CAS coverage or modified CAS coverage.

If your company wins a single contract
greater than the
CAS-coverage dollar threshold, and has no other CAS-covered contracts, you will likely be subject only to modified CAS coverage. In contrast, if your company wins many large contracts, all covered by CAS, you will likely be subject to full CAS coverage. In this way, the government lets your company “ease into” the Cost Accounting Standards

266
Q

FAR PART 30, COST ACCOUNTING STANDARDS ADMINISTRATION

FAR Part 30 describes how and when contractors must follow the Cost Accounting Standards Board rules and regulation

What types of contracts are subject to CAS coverage?

A

Generally, cost-reimbursement contracts above a certain dollar threshold are subject to CAS coverage. This rule makes sense because in a cost-reimbursement contract, the government repays your company for any incurred costs which are allowable, allocable, and reasonable. Therefore, the government has a direct interest in how your company keeps track of costs, and the government prefers the Cost
Accounting Standards.

267
Q

FAR PART 42, CONTRACT ADMINISTRATION AND AUDIT SERVICES

FAR Part 42 explains how the government may assign certain contract administration and audit tasks to other personnel or agencies.

Can the contracting officer delegate contract administration responsibilities?

A

Yes, under certain contracts, such as complex, cost-reimbursement contracts, the contracting officer may delegate several responsibilities to the administrative contracting officer (ACO). The procurement contracting officer or PCO signed the contract, the ACO may later administer many aspects of the contract. The PCO may delegate administrative powers to an ACO who works for a different federal agency, such as the Defense Contract Management Agency (DCMA).

268
Q

FAR PART 42, CONTRACT ADMINISTRATION AND AUDIT SERVICES

FAR Part 42 explains how the government may assign certain contract administration and audit tasks to other personnel or agencies.

What types of functions might the ACO perform?

A

The ACO may be involved in many activities with your company, especially on complex, cost-reimbursement contracts. These functions may include:

Negotiating forward pricing rate agreements (FPRA)
Negotiating advance agreements for contract costs
Determining whether to allow reimbursement of specific costs
Establishing final indirect cost rates or billing rates
Determining the adequacy of your company’s accounting system
Processing any formal name changes of your company
Approving your company’s subcontracts

269
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process.

I thought subcontracting is between my company and its subcontractors, and therefore none of the government’s business. Are you saying the government must approve all my subcontracting decisions?

A

Not exactly. Check your contract for FAR clause 52.244-2, Subcontracts. The answer depends on the type of government contract and whether your company has an approved purchasing system. For most fixed-price contracts, you do not need government approval for your subcontracts. For many cost-reimbursement contracts, and for many time and materials contracts, it gets significantly more complicated if your contract includes FAR clause
52.244-2, Subcontracts…

If your company has an approved purchasing system, you need government approval for only the subcontracts specifically identified in the contract. In such cases, the contracting officer will list subcontracts or categories thereof that require government approval.

If your company does not have an approved purchasing system, you need government approval for subcontracts that are cost-reimbursement or time-and-materials, or that are fixed-price yet represent five percent or more of the total estimated value of the prime contract.

Note: For the special category of fixed-price subcontracts that require consent, there are two different dollar value thresholds for two sets of federal agencies, so actually, five percent of the prime contract value is not the only threshold. For the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration, the threshold is the greater of the simplified acquisition threshold or five percent. For other federal agencies, the dollar value threshold is either the simplified acquisition threshold or five percent. Run the numbers in your head and you will find that it is more practicable to simply explain the threshold of five percent.

270
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process.

What is an approved purchasing system?

A

An approved purchasing system refers to your company’s subcontracting (purchasing) processes, policies, and procedures. If the government has formally reviewed and approved your company’s subcontracting operations, then your company has an approved purchasing system. If your company fails this test, or has never been subject to a review, then your company does not have an approved purchasing system.

271
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process.

How important is the success or failure of my company’s
CPSR?

A

A successful CPSR is vitally important to the future of your company as a government contractor. If you expect a CPSR soon, you should invest time and money to prepare your company to be approved. Do not try to figure this process out by yourself.

Hire experienced accountants and compliance experts who specialize in government contracting and CPSRs. Search for experts who have participated in successful (approved) CPSRs. Be careful with accountants who say they can help you with a CPSR but have never actually been through asuccessful CPSR. You need an experienced specialist with proven success.

272
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process.

What happens if my company fails a CPSR?

A

If you fail a CPSR, your priority is to immediately improve your operations to succeed in the next CPSR. Without an approved purchasing system, your company is at a competitive disadvantage for many types of contracts.
Remember, an approved purchasing system means your company can skip most of the subcontracting approval process.

273
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process.

What will the government examine during a CPSR?

A

The CPSR will pay special attention to the following factors in your company’s operational policy for awarding
subcontracts:
Market research
Price competition
Pricing policy, such as requesting certified cost or pricing data
Evaluation of subcontractor responsibility, such as checking
SAM.gov
Policies related to encouraging small business participation as a subcontractor
Planning, award, and post-award management of larger subcontracts
Compliance with Cost Accounting Standards (CAS) rules
Selecting the appropriate payment arrangement for subcontracts
Management internal controls
Periodic self-assessments or self-audits of your company’s subcontracting operations

274
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process

What is “privity of contract?”

A

Only the prime contractor has a direct contractual relationship with the government client. This direct contractual relationship is called privity of contract-an important concept to understand. If you have a contract with another party, then you have “privity of contract” with that other party. The two of you share a relationship in that you are both parties to a single contract that applies to both of you.

275
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process

What are the advantages of being the prime contractor?

A

With greater risk comes greater rewards. Prime contractors have several advantages over subcontractors. Your cash flow is better because you get paid first. Imagine being a 3rd. tier subcontractor. The 3rd-tier subcontractor waits for the prime contractor to get paid, then the subcontractor, then the 2nd-tier subcontractor. You’re lucky if each stage takes only 30 days. That’s why the negotiation of payment terms is so important.

Not only is the prime contractor paid first, it also gets the lion’s share of the profits. Any subcontractor is negotiating for a subset or fraction of the entire profit of the government contract-whatever the prime contractor is willing to subcontract away. Profit margins for lower tier subcontractors usually get smaller and smaller as each middleman takes a cut.

Prime contractors are closer to the government client. The United States of America is the largest client in world history. It pays to work with a client that spends more than a trillion dollars every year in government contracts and grants. Your book of business can grow as contact with one federal agency leads to new work or new clients at other federal agencies.

276
Q

FAR PART 44, SUBCONTRACTING POLICIES AND PROCEDURES

FAR Part 44 explains when the government may require approval of your subcontracting decisions, and also covers the Contractor Purchasing System Review process

What are the advantages of being a subcontractor?

A

Maybe you don’t want to do business with the government.
Remember, a subcontractor does not have “privity of contract” or a direct contractual relationship with the government. That lack of a direct contractual relationship can be a significant advantage.

As a subcontractor, you have a contract simply with another private business. If you have problems or litigation, you aresubject to private sector contract law rather than federal contract law. As a professor and expert witness in federal contract law, I can assure you that several aspects of federal contract law favor the government and not the contractors.
Subcontractors can avoid most of the aspects of federal contract law that heavily favor the government. A subcontract between two businesses will be subject to the same legal conventions as any other private sector contract.
Litigation between two subcontractors (or between a prime contractor and subcontractor) will often take place in state court, rather than federal court. In contrast, contract litigation between a prime contractor and the federal government will be subject to federal contract law, and will likely take place in federal court.

Subcontracts have greater freedom to design and negotiate contract terms. Government contracts with the prime contractor are bound by strict regulations like the Federal Acquisition Regulation (FAR), but subcontracts have more flexibility. Take advantage of this flexibility whenever possible. Negotiate terms that protect you as a subcontractor.

Your negotiating position will likely be weak in relation to the prime contractor or a higher tier subcontractor. Do not let the prime contractor push you into an unfavorable subcontract. Be prepared to walk away, if necessary. Another advantage of being a subcontractor is the reserved power to choose your contracts carefully, and to walk away from unwise opportunities or shady business partners.

Subcontractors can get a foot in the door by performing smaller portions of government contracts without shouldering all the risk and responsibility. Subcontractors can target new types of work and gain valuable experience and contacts while avoiding the crushing possibility of failure in front of the government client. In this way, subcontractors can practice in the minor leagues (subcontracts with other companies) before stepping up to the major leagues (prime contracts with the government).

277
Q

FAR PART 45, GOVERNMENT PROPERTY

FAR Part 45 explains the contractor’s responsibility for handling government property, such as Government Furnished Property and Contractor Acquired Property.

What are the two most important types of government property for government contracts?

A

Government Furnished Property (GFP) and Contractor
Acquired Property (CAP).

278
Q

FAR PART 45, GOVERNMENT PROPERTY

FAR Part 45 explains the contractor’s responsibility for handling government property, such as Government Furnished Property and Contractor Acquired Property.

What is GFP and what is CAP?

A

Government Furnished Property (GFP) is possessed or acquired by the government and furnished to the contractor for performance of the contract. Contractor Acquired Property (CAP) is purchased or fabricated by the contractor for use in the contract, but the government retains title (ownership) and has not yet received and accepted the property. CAP is usually encountered under cost-reimbursement or time-and-material contracts.

For example, if the government gives your company a special entry badge to swipe into the building doors, that is GFP. If your company fabricates a special weapon during a cost-reimbursement contract, and the government will receive and accept that weapon under the contract, that is likely CAP. Both GFP and CAP are types of government property. Both these examples-the badge and weapon-are owned by the government, although they are possessed by the contractor during performance.

279
Q

FAR PART 50, EXTRAORDINARY CONTRACTUAL
ACTIONS AND THE SAFETY ACT

FAR Part 50 provides special powers for the government to create or change contracts to aid the national defense or to fight terrorism.

What is the SAFETY Act?

A

The full name of the SAFETY Act is the Support AntiTerrorism by Fostering Effective Technologies Act of 2002.
Congress loves awkward acronyms!

280
Q

FAR PART 50, EXTRAORDINARY CONTRACTUAL
ACTIONS AND THE SAFETY ACT

FAR Part 50 provides special powers for the government to create or change contracts to aid the national defense or to fight terrorism

Can you provide hypothetical examples of the use of these extraordinary powers?

A

Imagine the United States is currently at war. One of the biggest defense contractors supplies one-half of American military weapons in this war. One of this defense contractor’s contracts has a mistake that will cause the company to go bankrupt. If the company goes bankrupt, the military will not get the weapons to fight the war.
So, at the President’s direction, the contract is modified without consideration to fix this mistake and “bail out” the contractor.

In another plausible example, no mistake exists in the contract. Instead, by the negotiated terms of the contract, the same defense contractor will sustain heavy financial losses through performance of a vital contract for military weapons. Eventually, the contractor may go bankrupt or become unable to fulfill the contract. Departing from normal contracting laws and regulations due to threats to the national defense, the government can change or adjust the contract or its payment terms to “fix” the situation.

You can see these extraordinary powers allow the government to play favorites and help certain companies to support the national defense. The existence of this policy suggests that President Dwight D. Eisenhower was prophetic when he warned American citizens of the growth of the “military-industrial complex.” Some defense contractors and some defense contracts are so important to the national defense that the government reserved the right to suspend contracting laws and regulations to prevent the failure or disruption of these contracts and contractors.

281
Q

FAR PART 51, USE OF GOVERNMENT SOURCES BY CONTRACTORS

FAR Part 51 explains how contractors can save time and money by using contracts that would otherwise be available only to the government.

Within FAR Part 51, what does the phrase “government sources” mean?

A

When you read government sources within FAR Part 51, that phrase refers to government contracts that are (usually) available only to the government. If your government contract authorizes you to use government sources, your company may save time and money with this special privilege.

One of the most prominent of these “government sources” is the General Services Administration’s Federal Supply Schedule, also called the “GSA Schedule,” “GSA Schedule contracts,” “FSS contracts,” “Multiple Award Schedule,” or
“the Schedule.” You can read more about these contracts in Part 8, Required Sources of Supplies and Services.

In short, GSA Schedule contracts provide bulk-pricing
discounts for any federal agency that places orders. GSA Schedule contracts offer both supplies and services, all with prenegotiated terms and conditions, including price ceilings (maximum prices that can be negotiated even lower).

282
Q

FAR PART 51, USE OF GOVERNMENT SOURCES BY CONTRACTORS

FAR Part 51 explains how contractors can save time and money by using contracts that would otherwise be available only to the government.

Why should my company care about using government sources, like GSA Schedule contracts?

A

Because you can save money and make your government client happy. Your company-if contractually authorized by a clause prescribed by FAR Part 51-may be able to take advantage of the great deals the government negotiated.