6C051 VOL 4

Who receives the specifications for inspection, testing, and other contract quality requirements and includes them in the contract?

Contracting office.

At a minimum, who is provided a copy of signed contracts and modifications as part of the distribution process?

Contractor and paying office.

According to the courts, when does additional work added to a contract fall within the general scope of the contract?

Could be regarded as fairly and reasonably within the contemplation of the parties when the contract was entered into.

What action must a contractor take after receiving a cure notice?

Cure the specific condition(s) identified by the government within 10 days after receipt of notice.

What two clauses may be used as the authority for granting delivery extensions?

Default clause or Excusable Delays clause.

List the changes authorized in fixed-price contracts for services not including supplies.

Description of services to be performed. Time of performance (hours, days, etc.). Place of performance of the services.

If an equitable adjustment could not be reached and a release of claims is not signed, what may the contractor do?

Dispute the CO's final decision under the Disputes clause.

When the appropriate clauses are included in a contract, what action(s) may a CO take when a delivery is late?

Enter into negotiations with the contractor to extend the delivery date, provided the government receives appropriate consideration for doing so. Invoke liquidated damages in the agreed amount until delivery is made or the delivery schedule is renegotiated (if liquidated damages are included in the contract). Terminate the contract for default in accordance with Part 49 of the FAR.

What action must a contracting office take to ensure the ability to promptly locate contract files?

Establish a central control or locator system.

What reporting method may be used when the total volume of monthly actions makes the use of individual CARS overly burdensome?

Express reporting.

Administrative changes are limited to what types of changes?

Extension errors (not errors in unit price or quantity) in the schedule. (2) Typographical or other administrative errors may be corrected if such correction does not change the terms or conditions of the order and does not require acceptance by the contractor.

Describe the contents of a show cause notice.

FAR Part 49 provides the exact verbiage and requests the contractor to show cause explaining why the contract should not be terminated for default. The notice may further state that failure of the contractor to present an explanation may be taken as an admission that no valid explanation exists. When appropriate, the notice may invite the contractor to discuss the matter at a conference.

What system is used to report contract actions?

Federal Procurement Data System-Next Generation (FPDS-NG).

At what dollar threshold are contractor performance evaluations required?

For systems and operations support contracts that exceed $5,000,000. For services and information technology contracts that exceed $1,000,000. For all other contracts that exceed the SAT.

In what two ways can a CO terminate a commercial purchase or delivery order under 52.212-4?

For the convenience of the government or for cause.

What five conditions must be met by the CO's written determination prior to exercising an option?

Funds are available. The requirement covered by the option fulfills an existing government need. The exercise of the option is the most advantageous method of fulfilling the government's need, price, and other factors considered. The option was synopsized in accordance with FAR Part 5, unless an exemption applies. The contractor is not listed in the Excluded Parties List System.

What action does a CO take when it is discovered that an actual debt is due the government?

Furnish a copy of the demand for payment to the contractor by certified mail, return receipt requested, or by other method that provides evidence of receipt.

What two problems between government receiving and disbursing activities will make it impractical to make timely payment based on evidence of government acceptance?

Geographical separation, lack of adequate communication facilities.

Before a determination of termination settlement is issued, what must the TCO do?

Give the contractor at least 15 days notice by certified mail (return receipt requested) to submit written evidence substantiating the contractor's previously proposed amount.

Under what conditions may a CO terminate a contract for default?

If the contractor fails to Make delivery of the supplies or perform services within the time specified in the contract. Perform any other provision of the contract. Make progress, and that failure endangers performance of the contract.

Under fixed-price construction contracts, what actions by the contractor permit the government to terminate for default?

If the contractor refuses or fails to prosecute the work with such diligence as to ensure its completion within the time specified in the contract--or fails to complete the work within the time specified in the contract.

When does it become necessary for a contractor to sign a modification exercising an option?

If the option modification must be executed bilaterally as a result of failing to provide the necessary notifications.

List five exceptions to FPDS-NG reporting.

Imprest fund transactions below the micro-purchase threshold, including those made via the GPC (unless specific agency procedures prescribe reporting these actions). Orders from GSA stock and the GSA Global Supply Program. Purchases made at GSA or AbilityOne service stores, as these items stocked for resale have already been reported by GSA. Purchases made using non-appropriated fund activity cards, chaplain fund cards, individual government personnel training orders, and Defense Printing orders. Actions that, pursuant to other authority, will not be entered in FPDS-NG (e.g., reporting of the information would compromise national security).

What should be included in the notice to the contractor if supplies or services are rejected as nonconforming? When should the notice be furnished to the contractor?

Include the reasons for rejection. Furnish the notice promptly to the contractor.

At a minimum, what four pieces of information must be included on the termination for cause notice?

Indicate the contract is terminated for cause. Specify the reasons for the termination.

How does the CO cancel the order if the contractor has not accepted a purchase order in writing?

Indicate which remedies the government intends to seek, or provides a date by which the government will inform the contractor of the remedy. State that the notice constitutes a final decision of the CO and that the contractor has the right to appeal under the Disputes Clause.

Explain what is meant and not meant by terminating a contract "in whole."

It does not mean the entire contract is void. Even if performance has not begun, the contractor is entitled to fair compensation for any preparations made for the terminated contract. If performance has not begun, the government will attempt to secure a no-cost settlement from the contractor.

What is the effect of a release of claims?

It terminates a contractor's right to further claims regarding the subject.

What action should the CO take if the government requests a change to an order that causes an increase or decrease in the cost of, or the time required for, performance?

Make an equitable adjustment in the contract price, the delivery schedule, or both, and modify the contract.

Contract actions must be reported when they exceed what dollar threshold?

Micro-purchase threshold.

What modification authority is used as a last resort when no specific clause can be cited?

Mutual Agreement of the Parties, FAR 43.103(a)(3).

What are three examples of errors that may be corrected by an administrative change?

Name changes, updating a payment office, correcting a fund cite.

What contract authority is cited when making administrative changes?

No further authority is cited since the authority is provided within the SF 30's text.

Can a contract be written to preclude the government's right to perform inspections?

No.

What actions must a contractor take under the terms of "excusable delay?"

Notify the CO as soon as possible after commencement of any excusable delay.

How is a government inspection documented?

On an inspection or receiving report form or commercial shipping document (packing list).

When should the CO exercise the government's right to terminate a contract for commercial items, either for convenience or for cause?

Only when it is in the best interest of the government.

Who has primary responsibility for collecting contract debts?

Payment office.

What must a contractor do after receiving a notice of partial termination?

Perform continuing portion of the contract, submit request for an equitable adjustment, protect and preserve property in its possession, and deliver the property to the government as directed.

In lieu of termination for default, list three courses of action available to the CO.

Permit the contractor, the surety, or the guarantor to continue performance of the contract under a revised delivery schedule. Permit the contractor to continue performance of the contract by means of a subcontract or other business arrangement with an acceptable third party, provided the rights of the government are adequately preserved. If the requirement for the supplies and services in the contract no longer exists, and the contractor is not liable to the government for damages, execute a no-cost termination settlement agreement.

What authorizes the government to make inspections and tests while work is in progress?

Product specifications and inspection clauses.

Cite four examples when settlement on a total-cost basis would be appropriate.

Production has not commenced and the accumulated costs represent planning and pre-production or "get ready" expenses. Under the contractor's accounting system, unit costs for work in process and finished products cannot be readily established. The contract does not specify unit prices. The termination is complete and involves a letter contract.

What act requires federal agencies to pay vendors in a timely manner upon receipt of a timely and proper invoice?

Prompt Payment Act.

What actions can a CO take to discourage the repeated tender of nonconforming supplies?

Reject consecutive delivery of nonconforming supplies or services and document the contractor's performance record.

What requirements should be included in contracts, POs, or BPAs using fast payment procedures?

Requirements that the supplies be shipped transportation or postage prepaid, and that invoices are submitted directly to the finance or other office designated in the order.

List the changes authorized for fixed-price contracts for construction.

Specifications, including drawing and designs. Method or manner of performance of the work. Government-furnished facilities, equipment, materials, services, or site. Directing acceleration in the performance of the work.

When an adjustment in price is necessary as a result of unreasonable government delays, which clauses may be cited as the modification authority?

Suspension of Work clause or Government Delay of Work clause.

When an undefinitized modification is issued, what provision must be included?

That a definitized modification, settling all terms of the agreement, will follow.

When can the Changes clause be used on a commercial contract?

The Changes clause is not used on commercial contracts; use 52.212-4 instead.

Define acceptance.

The act of an authorized representative of the government by which the government, for itself or as an agent of another, assumes ownership of existing identified supplies tendered or approves specific services rendered as partial or complete performance of the contract.

A contractor remains liable for failure due to the actions of its subcontractors unless what determination can be made?

The cause of default was beyond the control of both the contractor and subcontractors.

What are the minimum statements contained in a notice of termination?

The contract is being terminated for convenience (or for default). The effective date of the termination. The extent of the termination (in whole or in part). Any special instructions (e.g., continuation of remaining work, clean up, disposition of inventory). The steps the contractor should take to minimize impact on personnel if the termination will likely result in a significant reduction in the contractor's work force.

What is the terminated contractor entitled to when a CO terminates a contract for commercial items for the convenience of the government?

The contractor is paid the percentage of the contract price reflecting the percentage of the work performed before the notice of the termination, in addition to any charges the contractor can demonstrate directly resulted from the termination.

After receiving a notice of termination, what actions must a contractor take?

The contractor must comply with the termination notice and clause, immediately stop work on the portion terminated, terminate all related subcontracts, and advise the TCO immediately of any circumstances precluding work stoppage.

If a change order causes an increase or decrease in cost of performance or time required for the performance, can the contractor elect to discontinue performance until an equitable adjustment can be made to the contract?

The contractor must continue performance of the contract as changed.

After termination for default of a fixed-price construction contract, what are the responsibilities of the contractor?

The contractor must continue to work on any parts that have not been terminated. The government can require preservation and protection of its property in the possession of the contractor. Furthermore, the government may require transfer of title and delivery of material the contractor has produced or acquired to the extent directed by the CO.

What recourse does the government have if items are not received at destination, are damaged in transit, or do not conform to purchase requirements?

The contractor shall replace, repair, or correct supplies not received at destination, damaged in transit, or not conforming to purchase requirements.

What substitutes for government inspection and testing of commercial items?

The contractor's existing quality assurance system.

What is payment for supplies based on under fast pay procedures?

The contractor's submission of an invoice that constitutes a representation that the supplies have been delivered to a post office, common carrier, or point of first receipt by the government.

Unless specifically reserved, who performs all inspections and tests as required by the contract?

The contractor.

What determines the effective date of a supplemental agreement?

The date agreed upon by the contracting parties.

Under the Default clause, if the government repurchases an item elsewhere due to a termination, who must pay for the excess cost?

The defaulting contractor.

What is the impact of the government not providing a contractor preliminary notice of its intent to exercise the option within the designated time frame?

The government loses its unilateral right to extend the term of the contract.

For acquisitions at or below the SAT, what should the CO consider in determining the type and extent of government contract quality assurance to be required?

The government relies on the contractor to accomplish all inspection and testing needed.

How is information uploaded into CPARS used in source selections?

The information is uploaded to the Past Performance Information Retrieval System and made available for use in source selections.

Within how many days must a payment be made on a commodities contract?

The later of the following two events: The 30th day after receipt of a proper invoice or the 30th day after government acceptance of supplies delivered or services performed.

When negotiating a settlement for a termination for convenience, how may the parties come to an agreement on price?

The parties may agree upon a total amount to be paid the contractor without agreeing on or segregating the particular elements of costs or profit comprising this amount.

From requesting activity to the TCO, describe the processing of AF Form 3056.

The requesting activity completes the AF Form 3056 and forwards the request to the CO who reviews it for completeness and accuracy and ensures that termination is in the best interest of the government. The form is then forwarded to the TCO for action.

What authority must be used when a CO makes a determination to include out-of-scope changes in a contract?

The same authority cited in the J&A.

What authority must the CO use when exercising options?

The specific option clause number and title.

If it is determined that a contractor's failure to perform is excusable, what happens to a termination for default?

The termination for default will be considered to have been a termination for the convenience of the government.

How many days does a contractor normally have to assert his or her right to an adjustment under the Changes clause?

Thirty days from receipt of the written order.

Detailed government inspection requirements should be limited to what characteristics?

Those characteristics that are special or likely to cause harm to personnel or property.

What is the purpose of a release of claims?

To help avoid controversy over supplemental agreements that resulted from unilateral modifications.

How may a unilateral modification be used?

To make administrative changes, issue change orders, make changes authorized by clauses other than a changes clause, or issue termination notices.

If no other contract provision allows the government to assume title of completed supplies and materials, what may the CO elect under the Default clause?

To require the contractor to transfer title and deliver to the government completed supplies and manufacturing materials, which are then furnished to another contractor to complete the requirement.

Title to the supplies will vest in the government upon the completion of what action(s)?

Upon delivery to a post office or common carrier for mailing or shipment to destination or upon receipt by the government if the shipment is by means other than Postal Service or common carrier.

When a termination notice must be issued, how does the CO determine the contents of the notice?

Use the specific format provided in FAR Part 49.6. Generally the notice states the acts or omissions constituting the default, the contractor's right to proceed is terminated, terminated supplies or services may be purchased against the contractor's account, the contractor is liable for any excess cost, the termination notice constitutes the CO's final decision, the contractor's failure to perform was inexcusable, any disagreement must be appealed under the Disputes clause, the government reserves all rights and remedies.

Instead of issuing a termination notice, when does the CO effect a no-cost settlement?

When it is known that the contractor will accept one, when government property was not furnished, and when there are no outstanding payments, debts due the government, or other contractual obligations.

Under what conditions is a show cause notice issued?

When it is necessary to formally ensure the contractor understands the predicament of potential default.

When must GPC purchases be reported on an individual basis to FPDS-NG?

When the GPC is used as the method of payment on delivery orders exceeding $25,000.

When should a contract run to completion rather than be terminated for convenience?

When the price of the undelivered balance of the contract is less than $5,000.

Under the Commercial Items clause, when must the government exercise post-acceptance rights?

Within a reasonable time after the defect was discovered or should have been discovered; or (2) Before any substantial change occurs in the condition of the item, unless the change is due to the defect in the item.

Within how long after contract award must an action be reported?

Within three business days after award when a contract writing system is not used or within 30 days after award for any action awarded using the authority of FAR 6.302-2, Unusual and Compelling Urgency.

What two factors does a CO consider when determining whether a change is in scope?

Work is the same or similar in nature to work already identified in the contract and additional work does not increase the quantity of work by such a level that an additional contract should be contemplated.

Can the TCO allow profit on preparations made, on work done by the contractor for the termination portion of the contract, and on settlement expenses?

Yes, for preparations and work done, but no, not for settlement expenses.

When changes affect the substantive rights of either party and the time exists to negotiate an agreement, which type of modification is appropriate?

A bilateral (supplemental) agreement.

Who is authorized to compromise contractor debts?

Agency finance office.

What is the intent of fast pay procedures?

Allows payment, under limited conditions, to a contractor before the government's verification that supplies have been received and accepted.

What is a contract debt?

Amounts that have been paid to a contractor for which the contractor is not currently entitled under the terms and conditions of the contract or are otherwise due from the contractor under the terms and conditions of a contract.

What opportunity is ordinarily given to the contractor when supplies or services are rejected?

An opportunity to correct or replace any nonconforming supplies or services, when it can be accomplished within the required delivery schedule, at no additional cost to the government.

If a contractor is terminated for cause, for what is he or she held liable to the government?

Any and all rights and remedies provided by law.

If a repurchase is for a quantity over the undelivered quantity terminated for default, how should the CO treat the entire quantity?

As a new acquisition.

What action should the CO take for each contract under which nonconforming or otherwise incomplete supplies or services are accepted?

Attempt to obtain an equitable price reduction or other consideration and modify the contract accordingly.

Besides the "original" contractual instrument, what two types of copies are acceptable for official contract files?

Authenticated and conformed.

When must a cure notice be issued?

Before terminating a contract for any reason other than late delivery.

How should work determined out-of-scope be procured?

By separate contract.

When constructive changes are allowed to take place, what impact does this have on the government?

Can contractually bind the government or result in contractor claims.

What action may the CO take if the contractor fails to comply with contract terms and conditions or fails to provide the government, upon request, with adequate assurance of future performance?

Consider the contractor to be in default and liable to termination for cause.

What is the first step a CO must take in determining whether or not to exercise an option?

Contact the customer to validate whether or not the need still exists.