Week 5 - VOCABULARY Flashcards
Acquisition Planning
The process by which efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the customer need in a timely manner at a reasonable cost; includes developing the overall strategy for managing the acquisition
Acquisition risk
The probability that some element of an acquisition process produces an undesirable result with an adverse effect on system effectiveness, suitability cost, or availability for deployment
Auction
Sale in which property, services, or merchandise are sold to the highest bidder
Basic ordering agreement
Similar to a basic agreement, but may also include terms and conditions intended to describe the types of goods and services that may be ordered in the future, to define pricing methods that will apply, or to define ordering or delivery procedures
Broad agency announcement
General announcement of an agency’s research interests, including criteria for selecting proposals and soliciting the participation of all offerors capable of satisfying the agency’s needs
Business development
This is in the pre-award life cycle phase of contract management and it is in the “develop offer” domain. It is the process of the seller organizing pre-sales activities to develop customer relations and market strategy, and assessing competition
Commercial contract financing
May include
- obtaining loans and lines of credit from financial institutions
- Obtaining advance funding of accounts receivable or funding of purchase orders from private firms
- Obtaining funds from venture capitalists
- Negotiating favorable payment clauses
- Commercial advance payments made before performance has begun
- Commercial interim payments made after some work has been done
- Delivery payments made after receiving and accepting a portion of the total work to be performed
Contract type
A specific pricing arrangement, or combination of pricing arrangements, employed for the performance of work under the contract
Copyright
A royalty-free, nonexclusive, and irrevocable license to reproduce, translate, publish, use, and dispose of written or recorded material, and to authorize others to do so
Cost contract
A cost-reimbursement contract that provides no fee
Cost-plus-fixed-fee
A cost-reimbursement type contract that provides for the payment of a fixed fee to the contractor. The fee does not vary with actual costs, but may be adjusted as a result of any subsequent changes in the work or services to be performed under the contract.
Cost-plus-incentive-fee contract
A cost-reimbursement type of contract with a provision for a fee that is adjusted by a formula in accordance with the relationship between total allowable costs and target costs
Cost reimbursement
A type of contract that provides for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the seller may not exceed (except at its own risk) without the approval of the buyer.
Cost sharing contract
An explicit arrangement under which the seller bears some of the burden of reasonable, allocable, and allowable contract cost. A cost-sharing contract is a cost-reimbursement contract in which the seller receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs.
Debrief(ing)
- An explanation given by buyer personnel to an offeror detailing the reasons its offer was unsuccessful.
- At a minimum, the debriefing information shall include:
- The buyer’s evaluation of the significant weaknesses or deficiencies in the offeror’s proposal, if applicable
- The overall evaluated cost or price (including unit prices) and technical rating, if applicable, of the successful offeror and the debriefed offeror, and past performance information on the debriefed offeror
- The overall ranking of all offerors, when any ranking was developed by the agency during the source selection
- A summary of the rationale for award
- For acquisitions of commercial items, the make and model of the item to be delivered by the successful offeror
- Reasonable responses to relevant questions about whether source selection procedures contained in the solicitation, applicable regulations, and other applicable authorities were followed
Design-to-cost
A concept that established cost elements as management goals to achieve the best balance between life cycle cost, acceptable performance, and schedule; under this concept, cost is a design constraint during the design and development phases and a management discipline throughout the acquisition and operation of the system or equipment
Discussions
Negotiations conducted in a competitive acquisition, after establishment of the competitive range
Electronic commerce (e-commerce)
Refers to a group of automated processes that can be used to accomplish business transactions using the internet
External market research
Market research consisting of looking for useful information about capabilities and limitations in the commercial marketplace in order to find information that can help determine the best method to obtain required goods and services consistent with pertinent laws, regulations, industry standards, and/or organizational policies
Federal Supply Schedules (FSS)
Directed and managed by the General Services Administration, provides federal agencies with a simplified process for obtaining commonly used supplies and services at prices associated with volume buying. There are four types of Federal Supply Schedules:
- Single Award,
- Multiple Award,
- New Item Introductory
- International
Fixed price
A form of pricing that includes a ceiling beyond which the buyer bears no responsibility for payment
Firm fixed price contract
A contract that provides for a price that is not subject to any adjustment by reason of costs experienced by the seller in the performance of the contract
Fixed price incentive contract
A type of contract that provides for adjusting profit and establishing the final contract price by application of a formula based on the relationship of total final negotiated cost to total target cost. The final price is subject to a price ceiling, negotiated at the outset.
Fixed-price incentive (firm target) contract (FPIF)
Specifies a target cost, target profit, price ceiling (but not a profit ceiling or floor), and a profit adjustment formula. These elements are all negotiated at the outset.
Fixed-price-incentive (successive target) contract (FPIS)
Specified the following elements, all of which are negotiated at the outset: an initial target cost, initial target profit, and initial profit adjustment formula
Fixed price with economic price adjustment
A fixed-price contract that permits an element of cost to fluctuate to reflect current market prices; economic price adjustments may be based on established prices, actual costs of labor or material, or cost indexes of labor or material.
Fixed price redeterminable prospective
A contract that provides for a firm-fixed-price for an initial period of contract deliveries or performance and prospective redetermination (at a stated time or times during performance) of the price for subsequent periods of performance
Fixed price redeterminable retroactive
Provides for a fixed ceiling price and a retroactive price determination within the ceiling after completion of the contract