Module 6 - Contract Management Flashcards
Six Essential elements of a Contract
Mutual Assent
Bargain and Exchange
Competency
Lawful purpose
Certainty of Terms
Form Required by Law
Essential elements of a Contract: Mutual Assent
Both parties agree to the terms of the contract
Essential elements of a Contract: Bargain and Exchange
Each party receives and gives something of value
Essential elements of a Contract: Competency
Parties must have the capacity to understand the terms of the contract
Essential elements of a Contract: Lawful purpose
Contracts cannot violate or cause others to violate the law or public policy
Essential elements of a Contract: Certainty of Terms
All requirements and stipulations are known to the contracting parties
Essential elements of a Contract: Form Required by Law
Parties express the contract in a form required by law
Contracting Officer (CO / KO)
Has authority to enter into, administer, and terminate contracts, as well as make related determinations and findings
May be appointed to a contracting role including Procuring, Administrative, and Termination
Administrative Contracting Officer (ACO)
Perform contract administartion functions on high-dollar supply contracts as delegated by the Procurring Contracting Officer (PCO)
FAR 42.302(a) lists normal ACO functions
FAR 42.302(b) list additional functions
Termination Contracting Officer (TCO)
Negotiates an equitable settlement with the contractor after the Procuring Contracting Officer (PCO) issues a notice of termination.
Procuring Contracting Officer (PCO)
Handles the procurments from the pre-solicitation phase through contract award to include contract signing on behalf of the Government
After signing contract normally assigned to ACO but PCO maintains overall responsibility until contract is completed and closed out
Five phases of Contract Process
Planning
Solicitation
Evaluation
Award
Post-Award
Key Steps in Contract Planning Phase
Determine the Capability Need
Create the Requirements Package
Select the Contracting Method
identify the Contract Type
Contents of Requirements Package
Described in FAR 11.1
Performance/Detail Specifications
Statement of Work
Purchas Description
When to Use Sealed Bidding
Requirements are well-defined.
Award is based on price and related factors.
There is time for competition.
Can not discuss bids with bidders
Two Contracting Methods
Sealed Bidding
Contracting by negotiations
Contract Types
Fixed Price
Cost Reimbursement
Indefinite Delivery
Time and Material
Labor Hours
Letters
Fixed Price Contracts
Cost-surety
low-cost risk
Suitable for well-defined requirements
guarantee delivery
Payment after delivery or performance
Cost Reimbursement Contracts
High risk
Suitable for less defined requirements
Government assumes cost risk
Compensate for costs incurred
Require an RFP
Formal Selection Process Steps
KO issues the RFP
Source Selction Evaluation Board (SSEB) uses eval criterial to eval each proposal
Source Selection Advisory Council (SSAC) uses SSEB results to compare all propsals
SSAC makes recommendation to Source Selection Authority (SSA)
SSA decision is sent to KO who signs and awards contract
Defense Contract Management Agency
Roles defined in FAR 42.302
Provides Contort Administrative Services
- Contract Management
-Quality Assurance
- Engineering
- Production and Industrial Resources
- Supply Chain Analysis
Roels of Defense Finance and Accounting Service (DFAS)
Responsible for timely payment of contracts
Role of Defense Contract Audit Agency (DCAA)
Performs contract audit services
Finacial advisory services related to:
- Negotiating
- Administering
- Closing
Privity of Contract
Legal relationship between parties established by a contract
Govenrment only has a relationship with the prime, not subcontractors
