Uniformity and Conclusion Flashcards

FAR Parts 4, 29, 30, 42, 44, 45, 50, and 51

1
Q

Uniformity and Conclusion

A

Uniformity and Conclusion:

FAR Parts 4, 29, 30, 42, 44, 45, 50, and 51

FAR Part 4 - Administrative and Information Matters

FAR Part 29 - Taxes

FAR Part 30 - Cost Accounting Standards Administration

FAR Part 42 - Contract Administration and Audit Services

FAR Part 44 - Subcontracting Policies and Procedures

FAR Part 45 - Government Property

FAR Part 50 - Extraordinary Contractual Actions and the safety act

FAR Part 51 - Use of Government Sources by Contractors

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2
Q

What is the primary purpose of a post-award orientation?
To provide understanding for a contractor that did not understand the work requirements at the time offers were submitted.

To achieve a clear and mutual understanding of all contract requirements and identify and resolve potential problems.

To make adjustments to any subcontracts which may be necessary under the prime contract.

To alter the final agreement arrived at in negotiations which led to the contract award.
FAR 42.501

A

To achieve a clear and mutual understanding of all contract requirements and identify and resolve potential problems.

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3
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.

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4
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

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5
Q

What does CASB stand for?

Contract Administration Standards Bulletin

Citizen Accounting Standards Board

Cost Accounting Standards Board

None of the above
FAR 30.000

A

Cost Accounting Standards Board

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6
Q

Contractors must retain all records pertaining to a government contract for a minimum of ____________ from the date final payment is made under the contract.
Three years
Ten years
Six years
One year
FAR 4.7

A

Three years

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7
Q

To which of the following subcontracts may a contracting officer consent?

A subcontract that makes the results of arbitration between the prime contractor and subcontractor binding on the Government

A subcontract obligating the contracting officer to deal directly with the subcontractor

A subcontract providing for payment on a fixed-price incentive basis

A subcontract providing for payment on a cost-plus-a-percentage-of-cost basis
FAR 44.203(b)

A

A subcontract providing for payment on a fixed-price incentive basis

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8
Q

For a contract with which of the following would the DCAA generally not be the responsible audit agency?
Federal Prison Industries
An 8(a) small business
An educational institution
Any contractor providing architect-engineer services
FAR 42.101(b)

A

An educational institution

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9
Q

Prohibition on a ByteDance Covered Application includes the social networking service TikTok or any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited. This prohibition applies to the presence or use of a covered application on any information technology owned or managed by______, or on any information technology used or provided by the _______ under a contract, unless an exception is granted.
the Government, Contractor
the Contractor, Vendor
the Vendor, Government
the Government, Government
FAR 4.2202 (b)

A

the Government, Contractor

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10
Q

A legal instrument in which a contractor guarantees performance of the contract, the obligations under the contract are assumed by a successor in interest, and the government recognizes the transfer of the contract and related assets is called what?
Assignment
Novation agreement
Transfer agreement
Change-of-name agreement
FAR 42.12

A

Novation agreement

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11
Q

The federal government shall use electronic commerce:
Only if there is no risk of loss or misuse of the information
As long as signatures are not provided electronically.
Whenever it is practicable or cost-effective.
For all transactions above the simplified acquisition threshold.
FAR 4.5

A

Whenever it is practicable or cost-effective.

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12
Q

Generally, purchases and leases made by the Federal Government are:
subject to state and local taxation

immune from state and local taxation

eligible for state and local tax rebates

subject to taxation only in states with
Value Added Tax
FAR 29.3

A

immune from state and local taxation

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13
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)

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14
Q

An indirect cost rate established temporarily for interim reimbursement of incurred indirect costs and adjusted as necessary pending establishment of final indirect cost rates is called what?
Billing rate
Prevailing rate
Required rate
Interim rate
FAR 42.7

A

Billing rate

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15
Q

Which of the following is true about requests for the use of Government property by international organizations?
The foreign organization may receive title to the Government-furnished property

Such requests shall never be granted

The Government must charge the international organization a rental fee

Such requests shall be processed in accordance with agency procedures
FAR 45.302

A

Such requests shall be processed in accordance with agency procedures

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16
Q

The Contracting Officer shall not award a CAS-covered contract until the _____________ has made a written determination that the required disclosure statement is adequate
Program Manager
Agency Head
Cognizant Federal Agency Official
Contracting Activity
FAR 30.202-6

A

Cognizant Federal Agency Official

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17
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

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18
Q
A
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19
Q

Regarding the authority to use extraordinary contractual actions, agencies shall maintain complete records of all actions taken under FAR 50.1.For request for relief processed, these records shall include, as a minimum the following except:
Approval above the contracting officer.

The contractor’s request.

All relevant memorandums, correspondence, affidavits, and other pertinent documents.

A copy of the contractual document implementing an approved request.
FAR 50.101-3

A

Approval above the contracting officer.

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20
Q

If a contractor is infringing a copyright with the consent of the government:
the copyright holder may receive injunctive relief.

the copyright holder may sue the government for monetary damages.

the copyright is transferred to the contractor.

the copyright holder may sue the contractor for monetary damages.
FAR 29.201

A

the copyright holder may sue the government for monetary damages.

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21
Q

Which of the following is an example of a contract under which contractors could be authorized to use government supply sources?

Government firm-fixed price contract

Contract under the Javits-Wagner-O’Day Act (known as AbilityOne)

A negotiated contract with a contractor that has no other government cost reimbursement type contracts

Time-and-materials contracts for repair of commercial equipment
FAR 51.101

A

Government firm-fixed price contract

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22
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).

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23
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

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24
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.

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25
Q

The following are examples when special-fuels excise taxes are NOT imposed in many contracting situations when the supplies are for any of the following except:

The exclusive use of any State or political subdivision, including the District of Columbia (26 U.S.C.4041 and 4221).

A nonprofit educational organization (26 U.S.C.4041 and 4 221)

Purchases under the Ability One program (41 U.S.C. chapter 85)

Emergency vehicles (26 U.S.C.4053 and 4 064(b)(1)(c)).
FAR 29.202

A

Purchases under the Ability One program (41 U.S.C. chapter 85)

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26
Q

A prospective contractor would be obligated to register in the System for Award Management database prior to contract award in which of the following cases?
A contract awarded by a deployed contracting officer in the course of military operations

A micropurchase using the electronic funds transfer method for payment

A contract with an individual for performance outside the United States and its outlying areas

A contract for emergency operations in response to a natural disaster
FAR 4.1102

A

A contract for emergency operations in response to a natural disaster

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27
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

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28
Q

If an agency requires a short retention period than those identified in FAR 4.805, Table 4-1 Retention Periods, who shall request approval from the National Archives and Records Administration (NARA)?
The agency’s Contracting Officer
The agency’s Records Officer
The agency’s Security Officer
The agency’s Administrative Officer
FAR 4.805 (c)

A

The agency’s Records Officer

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29
Q

What shall the ACO use as a basis for granting, withholding, or withdrawing approval of the contractor’s purchasing system?
Only the past performance of the contractor
Contractor purchasing system review
Quality assurance surveillance
Postaward survey
FAR 44.302

A

Contractor purchasing system review

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30
Q

roperty acquired, fabricated, or otherwise provided by the contractor for performing a contract, and to which the Government has title, is called what?
Government-furnished property
Government-leased property
Contractor inventory
Contractor-acquired property
FAR 45.402

A

Contractor-acquired property

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31
Q

On what basis is Government property normally provided in performance of the contract under which it is authorized?
Rental
Cost-reimbursement
At-cost
Rent-free
FAR 45.301(a)

A

Rent-free

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32
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.

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33
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 has the authority to sign contracts on behalf of the federal government?

A

Contracting officers! Also, the head of a federal agency has inherent power to sign contracts on behalf of the agency, but agency heads usually delegate this power to the contracting officers.

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34
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.

Most contracts require two signatures: one by the contracting officer, one on behalf of the contractor. Who signs first?

A

The contracting officer normally signs the contract after it has been signed by the contractor. So, typically, the contractor signs first.

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35
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 should sign contracts on behalf of my company?

A

Anyone with the authority to bind your company contractually can sign the government contract. My recommendation is that your company create a policy that one specific person be solely responsible for signing all government contracts.

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36
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.

Should I sign my legal name, or the company’s legal name?

A

Remember that your contract with the government is with your company, not with you personally. For that reason, you should type the name of your company (because you are signing on behalf of the company). Then you should type your name and your job title as it relates to the company. For example, you could sign your name above this text:

Acme Manufacturing North America, LLC
Cornelius Stark, Managing Member

If you run a sole proprietorship or if you will sign
the contract as an individual, then maybe you sign and type only your name. However, be careful. Consider forming a company (corporation, limited liability company, etc.) rather than operating as an individual or sole proprietorship. Of course, you should consult a business attorney and tax professional when making these decisions.

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37
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.

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38
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.

Why should I expect the copy of my signed contract or modification to be sent via email?

A

The federal government’s policy is to use electronic commerce (which includes email) whenever practicable or cost-effective. In fact, when you read the FAR, you may find terms like “copy,” “document,” “page,” etc., but you should not interpret that to mean you will receive or work with printed paper copies.

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39
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.

40
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.

41
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.

42
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 reports data to FPDS?

A

Contracting officers are required to report certain data elements for every contract action. The contracting officers certify a contract action report or CAR.

43
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 qualifies as a “contract action” that is reportable in FPDS?

A

A contract action is any oral or written action that results in the government spending appropriated money in an amount greater than the micro-purchase threshold, and also modifications thereof. Appropriated money means money that Congress authorized and appropriated the agency to spend. The micro-purchase threshold is a dollar figure that changes periodically. You can find the definition (current dollar value) of the micro-purchase threshold in FAR Part 2, Definitions of Words and Terms.

44
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.

45
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 about different types of government agreements that are not traditional, FAR-based contracts? Do those other types of agreements count as contract actions?

A

No,
grants,
cooperative
agreements,
“Other
Transactions” (for research or prototypes), real property leases, requisitions from federal stock, and training authorizations do not count as contract actions. Therefore, according to FAR Part 4, they are not reportable to FPDS.
You should know that some agencies, like the Department of Defense, report some Other Transactions in FPDS, but this practice is not mandated by the FAR.

46
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

How long should a contractor keep records of government contracts?

A

If you wish, you can carefully read through FAR Part 4 to find out the various retention periods (how long you must keep your files available for inspection). You will find that some documents must be retained for 3 years, or 6 years, or some other length of time. My recommendation is to keep all your government contracting files for at least 6 years after you think the contract is completed, paid, and “closed out.”

47
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

Why should I keep my files for 6 years? Why should I keep any files longer than the minimum length of time?

A

The reason I recommend you retain your files for a minimum of 6 years is because any formal claim under the Contract Disputes Act must be filed within 6 years of when you knew or should have known about the basis of the claim. So, my advice is practical. Keep your government contract files for at least 6 years.

48
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

At least 6 years from when? From when the contract is signed, or from when the contract is completed?

A

Six years from when the contract is completed, paid, and you reasonably believe there are no outstanding issues, such as cost reconciliations, audits, or outstanding claims.
Remember, many government contracts have a potential period of performance of 5 years. If you start the clock at contract signature, you will retain your documents for just 1 year after the end of the last period of performance.
Five years later, you arrived at the end of the period ofperformance, and you retained your files for an additional year. Potentially, this practice is a big mistake!
You have 6 years from the time you knew or should have known about the basis of the claim to file a formal claim under the Contract Disputes Act. If the basis of the claim started during the last year of the 5-year contract, you want to have all those files on hand if you discover or decide you have a claim a few years later.

49
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

Should I store my government contracting files electronically or in paper copies?

A

If your company uses paper files instead of digital storage, I wish you “Good luck.” You will need it. Digital storage is cheaper, faster, and easier. I prefer digital storage. I have worked in federal agencies that use paper contracts, and I have worked in federal agencies that use digital contracts. I am certain that digital storage is superior.

50
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.

51
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.

52
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.

53
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

54
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 are CAS-covered contracts?

A

Contracts that require contractors to follow the Cost
Accounting Standards (CAS).

55
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 full CAS coverage mean?

A

A contract requiring full CAS coverage must follow all 19
Cost Accounting Standards. Furthermore, your company may need to submit a disclosure statement that describes your company’s accounting practices.

56
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.

57
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

58
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.

59
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 exempt from CAS coverage?

A

You should learn all the CAS exemptions, but the most common are contracts performed by a small business, contracts using the commercial procedures of FAR Part 12, and contracts under the dollar threshold for submitting certified cost or pricing data.

60
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

Are any subcontracts subject to CAS coverage?

A

Yes, some subcontracts are subject to CAS coverage through requirements imposed by the prime contract.

61
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

My subcontract is between my company and the prime contractor- not the government- so how can the
government force CAS coverage on my company as a subcontractor?

A

The government includes a clause in the prime contract requiring the prime contractor to force your company (and any other subcontractors) to adhere to the Cost Accounting Standards in certain situations. In this way, the government
“flows down” the CAS coverage requirement through the prime contractor to the subcontractor.

62
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).

63
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

64
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 audit responsibilities?

A

Yes, contracting officers may delegate audit responsibilities to other agencies that specialize in such audits, such as the Defense Contract Audit Agency (DCAA), which is tasked with performing all contract audits for the Department of Defense.

65
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.

66
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.

Do I need consent to subcontract for my commercial prime contracts?

A

No, the FAR provides an exception to the consent-to-subcontract requirement for commercial prime contracts that use FAR Part 12 procedures (so-called “commercial government contracts”). For more info, read Part 12, Acquisition of Commercial Items.

67
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.

Can my company receive advance approval for certain subcontracts?

A

Yes, if you know your company will be subject to FAR clause
52.244-2, Subcontracts, you should ask the contracting officer to provide advance approval by listing your expected subcontracts in that clause. Save time by planning ahead!

68
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.

69
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 the name for the process whereby the government reviews, evaluates, and (hopefully) approves my company’s purchasing system?

A

Contractor purchasing system review (CPSR) refers to a complete evaluation-by the government-of your company’s
subcontracting and purchasing process,
including how your company selects and manages subcontractors.

70
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.

71
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.

72
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

73
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.

Who will provide or withhold subcontracting approval?

A

The contracting officer provides approval to subcontract.
There are different types of contracting officers.

The procurement contracting officer (PCO) is the contracting officer who negotiated and signed your contract. Sometimes the PCO will delegate administrative duties to an administrative contracting officer (ACO). In that case, the ACO is responsible for providing consent to subcontract. If the PCO retained this duty and did not delegate it to the ACO, the PCO is responsible for providing consent to subcontract.In either situation, it will be a contracting officer who gives your company permission to subcontract, if required.

74
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.

Should I position my company as a prime contractor or subcontractor?

A

With few exceptions, prime contractors get better profit margins and closer relationships with the government client. Prime contractors also bear the full responsibility for the contract, even if subcontractors fail. Subcontractors give up workshare and profit margins, but they get to work on smaller contracts and avoid having a direct contract with the government, a condition that has significant advantages. Many government contracting companies start with subcontracts to gain experience and confidence, and then pursue prime contracts later.

75
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 a prime contractor?

A

Government contracts are often performed by several different companies in a cascading pattern. The first contractor wins a government contract. The first contractor is known as the prime contractor.

76
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 a subcontractor?

A

The prime contractor cannot or does not want to perform 100 percent of the work, so the prime contractor finds a second contractor to perform a portion of the work. The second contractor is known as the subcontractor.
When the first contractor (prime contractor) and second contractor (subcontractor) sign a contract to perform some of the work—a portion of the original government prime contract-that is called a subcontract.

77
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

Is “subcontract” a relative term?

A

Yes, the term “subcontract” is always relative to the original contract with the government. The subcontractor, of course, can also subcontract a portion of its work to other companies. “Subcontract of a subcontract” sounds awkward, so you call it a 2nd-tier subcontract performed by a 2nd-tier subcontractor.

The 2nd-tier subcontractor, of course, can also subcontract a portion of its work to a 3rd-tier subcontractor, and so forth.
The various “tiers” or “levels” of subcontracting indicate the distance from the original government contract, which is a contract between the government and the prime contractor.

78
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.

79
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

Do subcontractors have privity of contract with the government?

A

The prime contractor has privity of contract with the government. The prime contractor also has privity of contract with the subcontractor. However, the subcontractor does not have privity of contract with the government. The subcontractor only has a direct contractual relationship with the prime contractor, in the form of a subcontract. You must understand this dynamic.

80
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

Who bears all the risk of failure under a government contract-the prime contractor or subcontractor?

A

Although a subcontractor may also support the government client, there is only one prime contractor. The risk of failure for the entire government contract belongs to the prime contractor, not the subcontractor. As a prime contractor, blaming a subcontractor, even if the subcontractor fails, is simply not an option. The prime contractor bears all the risk and responsibility for its entire chain of subcontracts.

81
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.

82
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).

83
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 government property?

A

Government property is any property owned or leased by the government.

84
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 the overall policy for government property versus contractor property?

A

Generally, the contractor should furnish all property needed to perform the government contract. Contracting officers may, at their discretion, provide your company government property to use during the contract.

85
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).

86
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.

87
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.

Does my company have a responsibility to keep track of
GFP, CAP, and government property under the contract?

A

Yes, check your contract for any government property clause(s), which may require you to control, use, preserveprotect, repair, track, organize, account, or deliver these items.

88
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!

89
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 policy goal of the SAFETY Act?

A

The SAFETY Act provides liability protection for contractors that deliver or perform antiterrorism technology or services. This law shields such contractors from lawsuits and other legal liability, so that such contractors will not be afraid to work with the government on contracts related to preventing or deterring terrorism.

90
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

How do I know if my contract is covered by the SAFETY
Act protections?

A

Look for a citation to the SAFETY Act in your contract and look for a FAR clause that starts with “FAR 52.250.”

91
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 an extraordinary contractual action?

A

To provide special powers for government contracts to support national defense, Congress passed Public Law
85-804 and President Eisenhower signed Executive Order
10789. This law and Executive Order give the President and some federal agencies authorization to enter into, amend, and modify contracts in ways that would be otherwise forbidden or unlawful. These special powers are reserved for emergency situations or to support the national defense.
FAR Part 50 implements these special powers, which include the ability to:

Amend contracts without consideration
Correct or mitigate mistakes in contracts
Formalize informal commitments

92
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.

93
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).

94
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.

95
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 would the government let my company use its government sources?

A

If your company saves time and money in performance of the government contract, your company can pass those savings on to the government client. We have a classic
“win-win” situation! If the government is paying for your company’s costs in performing the government contract, why wouldn’t the government client want your company to minimize costs? Your company is happy, the government client is happy, the American taxpayer is happy.

96
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.

I noticed how FAR Part 51 also mentions something calledthe “Interagency Fleet Management System Vehicles.”What does that mean?

A

The Interagency Fleet Management System (IFMS) isadministered by the General Services Administration (GSA)and provides vehicles for official government usage. So,when you read “IFMS,” consider it another “government source” that focuses on vehicles. GSA maintains a fleet of vehicles and vehicle-related products or services,

97
Q
A