PAR Part 2

Question 1

2.101 Definitions.

A word or a term, defined in this section, has the same meaning throughout this chapter (the Federal Acquisition Regulation (FAR)) unless

Answer 1

the context in which the word or term is used clearly requires a different meaning or another FAR part, subpart, or section provides a different definition for the particular part or portion of the part.

Question 2

Acquisition means the acquiring by contract with

Answer 2

appropriatedfundsofsupplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated.

Question 3

Acquisition begins at the point when

Answer 3

agencyneedsareestablishedandincludes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract.

Question 4

Acquisition Plan means

Answer 4

a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost.

It includes elements such as acquisition background and objectives, the plan of action, and milestones for accomplishing the acquisition. The plan addresses all the technical, business, management, and other significant considerations that will control the acquisition.

The specific content of plans will vary according to the nature, circumstances, and stage of the acquisition.

Question 5

Best Value

Answer 5

Best Value means the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.

Best value is determined through a process that considers cost or price and other factors as specified in the solicitation, such as technical capability, past performance, and other relevant criteria.

The objective is to select the offer that provides the most advantageous balance of price, quality, and other performance factors, consistent with the goals of the acquisition.

Question 6

Commercial product means

Answer 6

(1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental
entities for purposes other than governmental purposes, and–
* (i) Has been sold, leased, or licensed to the general public; or
* (ii) Has been offered for sale, lease, or license to the general public;

(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;

(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition,
* (i) Modifications of a type customarily available in the commercial marketplace; or
* (ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;

(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;

(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or

(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments.

Question 7

Contract

Answer 7

Contract means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing.

In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications.

Contracts do not include grants and cooperative agreements covered by 31U.S.C. 6301, et seq.

Question 8

Contracting

Answer 8

Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or
services from non-Federal sources.

Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration.

It does not include making grants or cooperative agreements.

Question 9

Contracting Officer

Answer 9

Contracting Officer means a person with the authority to enter into, administer,
and/or terminate contracts and make related determinations and findings.

The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer. Contracting Officers have the authority to bind the Government only to the extent of the authority delegated to them.

Contracting Officers may bind the Government only to the extent of the authority delegated to them.

Question 10

Micro-Purchase Threshold

Answer 10

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

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

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

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

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

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

Question 11

Nondevelopment Item

Answer 11

Nondevelopmental Item means:

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

(2) Any item described in paragraph (1) of this definition that requires only minor modification or modifications of a type customarily available in the commercial marketplace in order to meet the requirements of the procuring department or agency; or

(3) Any item currently being produced that does not meet the requirements of paragraph (1) or (2) solely because the item is not yet in use.

Question 12

Simplified Acquisition Threshold

Answer 12

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

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

Question 13

FAR Part 2

Answer 13

Defines words and
terms that are frequently used in the
FAR,

Provides cross-references to other definitions in the FAR of the same word or term, and

Provides for the incorporation of these definitions in solicitations and contracts by reference.

Other parts, subparts, and sections of this regulation
(48 CFR Chapter 1) may define other words or terms and
those definitions only apply to the part, subpart, or section where the word or term is defined.

Question 14

A word or a term, defined in this section, has the same meaning throughout this regulation, unless:

Answer 14

The context in which the work or term is used clearly requires a different meaning, or

Another FAR part, subpart, or section provides adifferent definition for the particular part or portion of the part.

Question 15

If a word or term that is defined in this section is defined differently in another part, subpart, or section of this regulation, the definition in:

Answer 15

This section includes a cross-reference ot the other definitions, and

That part, subpart, or section applies to the word or term when used in that part, subpart, or section.

Question 16

Acquisition plan

Answer 16

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

The acquisition plan includes the development of the overall strategy for managing the acquisition.

Question 17

Commercial product

Answer 17

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

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

Question 18

Nondevelopmental item (NDI)

Answer 18

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

Not available to general public

Question 19

Commercial service

Answer 19

• Installation services, maintenance services, repair services, training services, and other services
• Services of a type offered and sold ni the commercial marketplace
• Transferred between or among separate divisions, subsidiaries, or affiliates of a contractor

Such services are procured for support of a commercial product as defined ni this section, regardless of whether such services are provided by the same source or at the same time a s the commercial product; and

The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal
Government;

Servicesofatypeofferedandsoldcompetitivelynisubstantialquantitiesni the commercial marketplace based on established catalog or market prices for specific
tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions.

Question 20

Contract

Answer 20

• Amutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them
• Includes al types of commitments that obligate the government to an expenditure of appropriated funds and that, except as otherwise authorized, are ni writing

Question 21

May

Answer 21

Denotes the permissive

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

Question 22

Shall

Answer 22

• Denotes the imperative

Question 23

Should

Answer 23

Means an expected course of action or policy that si to be folowed unless inappropriate for a particular circumstance

Question 24

Offer

Answer 24

A response to a solicitation that, fi accepted, would bind the offeror to perform the resultant contract

Responses to invitations for bids (sealed bidding) are offers called “bids” or “sealed bids”.

Responses to requests for proposals (negotiation) are offers called “proposals”.

Responses to requests for quotations (simplified acquisition) are “quotations”, and are not offers.

Question 25

Offeror

Answer 25

One who makes an offer, or a bidder

Question 26

Performance-based acquisition

Answer 26

An acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed.

Question 27

Performance-based contract

Answer 27

A contract distinguished by its use of measurable performance standards and quality assurance plans

Question 28

Pricing

Answer 28

The process of establishing a reasonable amount or amounts to be paid for supplies or services

Question 29

Purchase Order (PO)

Answer 29

An offer by the government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures

Question 30

Written
Writing In writing

Answer 30

Any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information

Question 31

Signed Signature

Answer 31

• The discrete, verifiable symbol of an individual that, when affixed to a writing with the knowledge and consent of the individual, indicates a present intention to authenticate the writing
• May include electronic symbols

Question 32

Simplified acquisition

Answer 32

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

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

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

Question 33

Simplified Acauisition Threshold (SAT)

Threshold amount updated in FAR 2.101

Answer 33

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

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

Question 34

Micropurchase

Answer 34

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

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

Question 35

Solicitation

Answer 35

Any request to submit offers or quotations to the government

FAR part 13 Simplified Acquisition Procedures Quotation or Offer
FAR part 14 Sealed Bidding Invitation for Bids

FAR part 15 Contracting by Negotiation Request for Proposal

Question 36

Micro Purchase

Answer 36

10k everything

2k construction

25k services

Question 37

Simplified Acquisition Treshold

Answer 37

250k except

contingent 800k 1.5m international

humanity 800k 1.5m international

Question 38

CLAIM:

Answer 38

A written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract. However, a written demand or written assertion by the contractor seeking the payment of money exceeding the threshold found in the FAR is not a claim under the Contract Disputes statute (Contracts Disputes Act of 1978) until certified as required by the statute.