LTC Spurlock FINAL Flashcards
CCO may not accept gifts from “prohibited sources. A “prohibited source” is:
a “prohibited source” is one who does, or seeks, DOD business or one who could be substantially affected by CCO official decisions
CCO may not accept gifts because of official position as a Government official
Anti-Kickback Act of 1996 states giving or accepting a bribe is a crime punishable by
fine and/or up to 10 years in prison
Anti-Kickback Act of 1996 prohibits:
“Prohibits actual or attempted payments or offers to provide kickbacks, which include any money, fees, commission, credit, gift, gratuity, thing of value, or compensation of any kind, to include obtaining or rewarding favorable treatment”
Bribery - 18 USC 201(b)(1) states that Whoever . . . . .
(1) directly or indirectly, . . ., offers . . . anything of value to any public official . . . with intent . . . . . to influence any official act; . . . . . “shall be fined under this title or not more
“shall be fined under this title or not more than three times the monetary equivalent of the thing of value, whichever is greater, or imprisoned for not more than fifteen years, or both, and may be disqualified from holding any office of honor, trust, or profit under the United States.“
Fraud is:
the misrepresentation of a material fact with the intent to deceive
Fraud commonly includes:
Bribery, kickbacks, & gratuities – Most Common!
Making or using a false statement
Falsely making or altering a document
Making or presenting a false claim
Companies conducting business under several names
Collusive bidding
Conflicts of interest
Kickbacks can be
% of the contract
Gratuity is
TIPS
Most common fraud occurrences are:
Bribery, kickbacks, & gratuities
US Gov’t GSA/GPC cardholder and you purchase $5,000 in toner cartridges and they give you a $50 gift card, can you keep it?
NO!
When making determinations of fair/reasonable prices, can you take into account future discounts?
NO! Promises for future discounts cannot be used in price reasonableness/determinations in fair/price reasonableness.
The most basic ethical principle: 18 USC §208
An employee is prohibited from participating personally and substantially in an official capacity in any particular matter in which he (or any person whose interests are imputed to him) has a financial interest if the matter will have a direct and predictable effect on that interest
If CCO is officially involved in a matter that could affect personal financial interests, or those of someone related to or associated with, CCO must be removed from acting on that matter in an official capacity
A closely-related rule: if official involvement creates even the appearance of a conflict of interest to a reasonable person, CCO must be removed from that matter or, at a minimum, seek legal advice
Disqualification or recusal is:
stepping aside from decisions that could affect financial interests
Waivers of disqualification
is continuing involvement, but only with full disclosure and permission from Agency officials
Divestiture
is removing the financial interest that creates the conflict, which often involves selling the financial interest at issue
Common exceptions to the gift ban include:
Gifts valued at $20 or less, per occasion
Up to $50 from the same source in a calendar year
If in a foreign area, CCO may accept food, refreshments, or entertainment during meals or meetings, if:
The US market value does not exceed the Dept. of State’s maximum per diem allowance
Guests include non-US citizens or foreign diplomats
Attendance is part of official duties
The gifts are not from foreign governments (cannot award a contract to a foreign government)
Employees who must file financial disclosure reports must report travel-related cash reimbursements or gifts totaling more than
$285 from any one source, received by the employee, spouse or dependent children
Financial Disclosure reports for reporting of gifts is done on:
Reporting is done on OGE Form 450, Part V or on SF 278, Schedule B, Part II
The two types of authority are:
Contracting Authority
Command Authority
The term ‘Contingency Contracting’ means
all stages of the process of acquiring property or services by DoD during a Contingency Operation in the continental United States (CONUS) or outside the continental United States (OCONUS)
Contingency Operation’ (10 U.S.C. 101(a)(13)) means a military operation that:
DESIGNATED BY SECDEF by Secretary of Defense when armed forces used against an enemy; or
DECLARED BY PRESIDENT OR CONGRESS when Reserves activated under Title 10, U.S.C.
The purpose of the Contingency Contracting Officer (CCO) is to
acquire supplies, services, and minor construction as needed by the war fighter to support essential missions in response to a crisis, contingency, or declaration of war
to deliver supplies, services or construction, on time and on target….from the observer’s point of view”
“Contracting Authority” is
the legal authority to enter into binding contracts and obligate funds for the US government.
Command Authority” includes
the authority and responsibility for effectively using available resources and for planning the employment of, organizing, directing, coordinating, and controlling military forces for the accomplishment of assigned missions.
CCOs receive their contracting warrants from
a source of contracting authority, not command authority
Warranting CCOs is based on:
Experience
Education
Knowledge of acquisition policies and procedures
Training (meeting minimum DAWIA standards)
A CCO’s warrant is recorded on a
Recorded on SF 1402
Contracting structure flows
Flows from Joint Contracting Commander / Head of Contracting Activity
Through the Senior Contracting Official (SCO) or Principal Assistant Responsible for Contracting (PARC) – same person
Senior Contracting Official (SCO) warranting authority includes:
Selecting CCOs
Appointing CCOs
Terminating CCOs
Who selects, appoints, terminates CCOs?
The Senior Contracting Official (SCO)
Head of Contracting Activity (HCA) Responsibilities include:
Provides overall guidance
Acts as the approving authority
Provides contractual policies and procedures
Responsible oversight of Contracting within AOR
Senior Contracting Official (SCO) Responsibilities
Establishes policies and procedures for developing, reviewing, and managing the contingency contracting process to include administration plans
Contracting Officer’s Representatives (CORs) are
Nominated by requiring activity
Appointed by CCO
Small-scale contingency operations:
Service Component provides own contracting support
Retains control of their own theater support authority
HCA assignment will remain within the Service channels
Large-scale contingency operations:
A lead Service or Joint Theater Support Contracting Command (JTSCC) structure is required (OCONUS)
The Joint Theater Support Contracting Command (JTSCC) provides
more oversight than typically provided through the lead Service organizational option
The JTSCC, by design, is a Joint command that has command and control authority over designated Service component theater support contracting organizations and personnel within a designated support area
Directed by and reports to the Joint Forces Command (JFC)
Materializes in larger or more complex contingency operations
J1-Manpower and Personnel Directorate:
performs personnel actions
Officer with no specific rank or contracting-related experience
J2-Intelligence Directorate, J3-Operations Directorate, and J5-Plans Directorate:
focuses on supporting the JFC commander’s intent with effective and efficient contracting actions
Normally an O-5 WITH CONTRACTING EXPERIENCE
Responsible to assist the commander and SCO
Synchronize support to on-going and future operations
Reviews daily JARB submissions and PWS validation
J4-Logistics Directorate:
performs logistics actions - The CCO woks mainly with the J4 is in contingency operations
Normally a logistics officer with no specific rank or contracting-related experience.
J6-Communications System Directorate:
performs communications support-related actions
A communications or signal officer with no specific rank or contracting-related experience
Legal Staff Function
Legal advisors to the JTSCC and JFC commander
Establishes and implements JFC acquisition legal policy
Responsible for solicitation and contract reviews
Develop and provide ethics counseling /training
Contracting Officers (KOs), pursuant to (Federal Acquisition Regulation [FAR] 1.602), are the
only personnel authorized to enter into, administer, or terminate contracts and make related determinations and findings.
Performance Work Statement (PWS)” means
a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes.
is written incorporating measurable standards that that informs the contractor of the outcomes desired.
defines the requirements in terms of results, should include:
Description of services and general information (definitions and so forth)
Government-furnished property and services, if applicable
Measurable performance standards
Method of assessing contractor performance against performance standards
Performance incentives where appropriate
A Statement of Work (SOW)
is written in terms to direct the contractor specifically how to do the job
A purchase request must have 2 things:
Clear and detailed description of what is required of the contractor/vendor
Certification of Funds
Conversion rates should also be noted when?
at the time of funds certification
Army appropriation codes:
Military Personnel 212010
Operations and Maintenance 212020
Research, Development, Testing & Evaluation 212040
Military Construction 212050
Navy appropriation codes:
Military Personnel 171453
Operations and Maintenance 171804
Research, Development, Testing & Evaluation 171319
Military Construction 171205
Air Force appropriation codes:
Military Personnel 573500
Operations and Maintenance 573400
Research, Development, Testing & Evaluation 573600
Military Construction 573300
Fund Cite Example:
57 0 3400 310 67A2 231010 01 59290 503300 ESP 8Z
57: Agency
0: Fiscal Year
3400: Type of Appropriation
310: Fund Code and Fiscal Year
67A2: Operating Agency Code (OAC) and Operating Budget Account Number (OBAN)
231010: Responsibility Center (RC) and Cost Center (CC) Code
01: Budget Activity Code
503300: Element of Expense/Investment Code (EEIC)
ESP: Accounting and Disbursing Number
8Z: Emergency and Special Projects
US Constitution, Art. 1 Section 8 grants to Congress the power to
“lay and collect taxes, duties, imports, and excise, to pay the debts and provide for the common defense and general welfare of the United States”
US Constitution, Art. 1 Section & 9 provides that
“no money shall be drawn from the treasury but in consequence of an appropriation made by law”
Appropriations have a definite “life span”
Military Personnel: 1 Year Operations & Maintenance: 1 year Research, Development, Test & Evaluation: 2 years Procurement: 3 years Military Construction: 5 years
Bona Fide Needs Rule
Provides that fiscal year’s (FY) multi-year appropriations only be obligated to meet a bona fide need arising in (or sometimes before) the FY for which the appropriation was made
Restricts the use of existing FY’s appropriated funds on the next FY’s requirements
Bona Fide Needs Rule SEVERABLE service implies it is
continuing and recurring in nature and can be separated into components that independently provide value to customer’s needs
10 USC §2410a: permits funding for severable services using an annual appropriation for up to a total of 12 months when the contract is awarded, even if the period of performance will begin in one FY and continue into a subsequent FY (DFARS 232.703-1)
Bona Fide Needs Rule NON-SEVERABLE service implies
a single undertaking that cannot be feasibly subdivided or only produces a single or unified outcome, product, or report
Must be funded in full at the time of award with a then current appropriation
Note: lead time exception can apply to the start date of service type contracts
The Anti-Deficiency Act prohibits
obligating or spending money before it is appropriated or in amounts in excess of the amount appropriated
Violation of the Anti-Deficiency Act is punishable by
Punishable by a fine up to $5K, 2 years in prison, or both
Joint Acquisition Review Board (JARB):
a Service-unique requirements board to validate and prioritize the Service’s requests
Commander’s Emergency Response Program (CERP):
Military commanders can quickly direct money to meet humanitarian, relief, and reconstruction needs that immediately assist the indigenous population
Not subject to Contract Dispute Act – Program, not contract; programmed funds, not contracted funds
Funds Certification Officer:
J8 / G8 / Comptroller / Resource Manager
Certifies on the purchase request that funds are available prior to processing by the contracting office under peacetime conditions
During contingencies, the issue of funding becomes more involved because of the urgency and source of the requirements
Conversion rates at the time of funds certification should also be noted
Appropriated funds are subject to three basic fiscal constraints:
Time: A current fiscal year’s (FY) funds must be used for current needs
Purpose: Funds must be expended for the purpose established by Congress
Amount: The Anti-Deficiency Act (ADA) prohibits obligating or spending money before it is appropriated or in excess of a specific appropriation, the acceptance of voluntary services, and employing personal services in excess of authorized amounts (Bouncing a check)
Contingency contracting officers (CCOs) should consult
with the finance office to ensure proper use of each type of funding under their control
Are contractors on the battlefield susceptible to US Law?
Yes!
In addition to domestic US Laws and International Agreements, contractor employees are subject to the UCMJ in time of war, as declared by Congress
Contractors who are retired US military personnel may be subject to charges under UCMJ during non-declared wars and other contingency operations as well as peace time
Operational Contract Support defined:
Orchestrate and synchronize provision of integrated
contract support and management of the contractor personnel providing that support to the joint force in a designated operational area
Purchase request is:
The document that communicates the customer’s requirement and provides the funds for that requirement
Allows the vendor to quote properly and deliver the correct item
Utilized to request supplies/services or construction
Purchase request is submitted on what forms?
AF Form 9 • DA Form 3953
AF Form 4009 • AF Form 616
DD Form 1348 • Navy Supplement Form 1250-2
DD Form 448-2 - Military Interdepartmental Purchase Request
Book used to list/maintain private/public property seized is:
Property Control Record Book
Property Control Record Book is
Book used to list/maintain private/public property seized
SF 1442
Solicitation, Offer and Award (Construction, Alteration or Repair)
SF 1449
Solicitation/Contract/Order for Commercial Items
DD 1155
is used by the government as an order for supplies or services.
Blanket Purchase Agreement
Iraq/Afghan micro purchase agreement limit is
$30,000
Domestic Emergency Micro purchase limit increases to
$15,000 CONUS
$30,000 OCONUS
Domestic Emergency Simplified Acquisition Threshold increases to
$300,000 CONUS
$1 Million OCONUS
Who maintains ethical responsibility for the US Government?
All government representatives
CCOs must not avoid:
A particular matter without a direct financial impact
For companies that offer product incentives with a purchase, the CCO may keep the item since the government did not necessarily pay for it.
False
You may accept gifts from a prohibited source with a face value up to a total of $________ per calendar year, but any gifts on a single occasion may not exceed $_______ in value.
$50 and $20
Which of the following is considered fraud?
Suppression of truth
A gesture or innuendo
Misleading representation
All of the above
When in a foreign area, the CCO may accept food, refreshments, or entertainment during meals or meetings so long as which of the following conditions are met:
The US market value does not exceed the DoS per diem rate for the foreign area, when converted to US Dollars
Guests include non-U.S. citizens or foreign representatives
Attendance at the meeting or event is part of the employee’s official duties
The gifts are not from foreign governments
All of the above
If you have any doubt about what you should or should not accept, who should you consult?
Legal Office or Ethics Advisor
As the CCO, you know that offices order supplies at the end of the month. However, you noticed that a specific office has also been randomly ordering every two weeks. What is your first thought:
This could be an indication of fraud; further investigation is needed
If a gratuity is delivered to you (e.g., left on your desk or car), what should you NOT do?
Keep it because the giver is unknown
Always
Return it to the person who left it immediately
Pay the fair market value
Donate it to charity
As a last resort, if the contractor appears to be offended, accept the gratuity and perform which of the following steps?
Have your finance officer safeguard the gratuity by placing it in a safe and ask for a receipt
Turn the gratuity over to —–Consult with the legal office
Write a memo for record (MFR) explaining the circumstances/approx value of the item and mention legal advice was obtained
All of the above
The Anti-Kickback Act of 1996 does NOT apply to:
Money, fees, commissions, gifts, gratuities
Things of value
Compensation of any kind
Favorable treatment
None of the above
Any person who knowingly and willfully engages in conduct prohibited by the Anti-Kickback Act shall be imprisoned for not more than _____ years or shall be subject to a fine or both.
Ten years
The DoD does not tolerate any form of trafficking in persons (TIP). When should a TIP-related situation be reported to the appropriate officials?
Always, it is a CCO responsibility
As the CCO, if I am offered an “escort” by a local vendor, which of the following should I do?
Immediately inform counsel
Inform your chain of command
Take immediate action to impose suitable remedies, including termination, on contractors that support or promote trafficking or fail to monitor the conduct of their employees or subcontractors with regard to trafficking.
All of the above
Contracting and procurement fraud schemes involve which of the following:
Product substitution
Government employee collusion
Bribes, gratuities and kick-backs
All of the above
Professional friendships with contractors or subcontractors are prohibited.
False
A “prohibited source” is defined as ___________.
Company doing business/seeking to do business with the Federal gov
Many foreign business cultures do NOT expect kick-backs, finders fees, exchange of gifts, or other gratuities.
False
Which of the following does the CCO not have the authority to do?
Grant home leave to a supporting contractor
Has the authority to:
Use judgment to protect the warfighter and taxpayer
Assist contractors finding experts since none are available in the DoD
Encourage personnel to speak up if ethics are not being upheld
Command Authority vs Contracting Authority
Command Authority:
Combatant Commander
Service Component Commander
Joint Task Force Commander
Contracting Authority:
Agency Heads
Head of Contracting Authority
Senior Contracting Officer
Both streamline down to:
Chief of Contracting Office
Contingency Contracting Officers and Appointed Reps
A CCO’s warrant is derived from which of the following?
Contracting Authority
What is the term also identified with the SCO?
Principal Authority Responsible for Contracting (PARC)
The SCO establishes policies and procedures for developing, reviewing and managing the contingency contracting process.
True
Contracting Authority is the authority to
enter into binding contracts
Command Authority is the authority to
effectively use available resources
Who plans, directs and supervises purchasing and contracting for supplies, services and construction for assigned customers?
COCO
RCC
The HCA is responsible for
Oversight of contracting
Compliance with statutes and regulations
Appoints SCO
The only personnel authorized to enter into, administer, or terminate contracts is:
The CCO
Contingency Contracting Officers have which of the following duties and responsibilities?
Maintain contract oversight with respect to contract performance by the contractor.
Ensure contracts are competed and awarded to the local populace to the fullest extent possible in order to aid the development of the local economy while ensuring fair and reasonable prices.
The ___________________ provides overall contracting oversight throughout the contingency and ensures compliance with law, regulation, policy, and good business practice.
Head of Contracting Activity
Who would assist the commander and SCO(s) to synchronize support to on-going and planning future operations?
J2/3/5
The J-1 office normally performs what functions?
Joint personnel actions to include working personnel assignments, JMD related actions, awards & ratings
Who would perform normal joint communications support?
J6
The J-3 would normally perform joint logistic actions.
False
In general, a Joint Theater Support Contracting Command will only be stood up for what type of operations?
Major sustained operations
General responsibilities of the SCO include:
Managing and executing the Procurement Management Reviews
Within contingency operations, who does the CCO mainly work with?
J-4 officer
Who provides quality inspections on contractor performance?
COR
What are the three basic fiscal constraints appropriated funds are subjected to?
Time, amount, purpose
The Bona Fide Needs rule provides for what?
Funds are available only to satisfy requirements during period of availability
Fill in the period of availability for the following funds:
MILCON 5 years RDT&E 2 years Procurement 3 years O&M 1 year MILPER 1 year
The Bona Fide Need for supplies exists when:
The Government actually will be able to use such item(s)
The funds are presumed to be available
The Bona Fide Needs for severable services pertains to the:
Period in which the services are performed
The Bona Fide Needs for non-severable services generally apply to the:
Year in which a contract is executed
Construction contracts obligated and awarded late in the fiscal year must have a performance start within how many days?
90
The “Purpose Statute” prohibits what?
Spending money on objects other than those for which appropriations have been made
At what point must the Bona Fide Need exist?
At time of award, not performance
A knowing and willful violation of the “Anti-Deficiency Act” is punishable by:
Up to $5K fine and two years in prison, or both
What are the three parts of the “Necessary Expense Doctrine” for expenditures?
Logically related to the appropriation, not prohibited by law, and not otherwise provided for
What type of funds are used for the day-to-day expenses incurred during training exercises and deployments?
Operation and Maintenance (O&M)
Commanders may use O&M funds to purchase unit coins for the purpose of:
Recognizing excellence in accomplishments
What funding may only be used for providing official courtesies to authorized guests?
Official Representation Funds (ORF)
What funding can be spent on unanticipated, short notice construction, but cannot exceed $500K without the Secretary of Defense notifying Congress?
Emergency and Extraordinary Expenses (E&EE)
Who may direct Foreign Disaster Assistance (FDA) be used outside the United States to respond to manmade or natural disasters when necessary to prevent loss of life?
President of the United States (POTUS)
All purchase requests must meet two requirements:
Good item description, certified funds
The principal features of a purchase description may be determined by answering questions such as:
What is it?
What is it used for?
What does it do?
All of the above
When defining and specifying requirements, contracting activities and their customer will consider:
Technical needs and business strategies