AF Contracting Officer Study Guide (unofficial)
*Undefinitized Contract Action (UCA)* DFARS 217.74 (2016-05-31) Q: If a sudden conflict happens overseas, how would the CO determine if a UCA should be used and what funding constraints are there?
-Does the Government's interest demand binding commitment for immediate work? -Is there sufficient time to negotiate -Are requirements defined as well as possible? -If HCA determines no other contract type suitable, the UCA must have a not to exceed amount. No more than 50% of NTE (unless qual proposal submitted than 75%)
*Data Rights* FAR 27 (2016-05-31) Q: What are restrictive legends and what circumstances dictate their use?
-Required on all non-commercial deliverables -Authorized: Copyright, GPR/SBIR data rights, limited/restricted, special license -Nonconforming; may not be used -Unjustified: Government can challenge -Unmarked: Presume "unlimited"
*Early Effective Date* AFMCFARS 5304 (2016-05-31) Q: Who approves the use of an early effective date and what are the limitations of their use? *AIR FORCE ONLY*
-Wing PK approves. -Must have agreement on price and terms & conditions and have funding. -Direction must be in writing and include notice of allowability of costs and risk if no contract award. -EED shall not be earlier than date of price agreement. -Obtain legal review for effective date that is more than 30 days prior to envisioned award date
*Protests* FAR 33.1 (2016-05-31) Q: Name the types of protests.
1. Agency. 2. GAO. 3. US Court of Federal Claims. 4. Small business size standard representation
*Award Fee* Fiscal Law Deskbook, 2014, Chapter 5 (2016-05-31) Q: What are the award fee funding requirements?
1. Award fee requirements must be budgeted in/funded with same appropriation/FY as effort. 2. Must be set-aside as contingent liability - don't rely on promise to pay back in future using different FY funds.
*Unsolicited Proposals* FAR 15.6 (2016-05-31) Q: What five elements are found in a valid unsolicited proposal ?
1. Be innovative and unique. 2. Independently originated/developed by offeror. 3. Prepared without Government supervision, endorsement, direction, or involvement. 4. Include sufficient detail to permit determination of benefit. 5. Not be an advanced proposal for a known requirement (or previous requirement).
*Cost and Pricing Data* FAR 15.403-1 (2016-05-31) Q: What are the prohibitions on obtaining certified cost and pricing data?
1. Below SAT 2. Adequate price competition 3. Price set by law or regulation 4. Commercial item 5. Waiver 6. Modification for commercial item 7. Exercise of priced option 8. Overrun funding or interim billing price adjustments.
*Funding* FAR 32.702 (2016-05-27) Q: What are the limitations on use of appropriated funds?
1. Can't expend/obligate in excess or advance of appropriation, apportionment or reapportionment. 2. Can't expend/obligate in advance of appropriation 3. Don't accept voluntary/personal services other than authorized law. 4. A violation of Purpose / Time / Amount may be a potential anti-deficiency violation.
*Personal Service* FAR 37.104 (2016-05-31) Q: What is personal service?
1. Characterized by employer/employee relationship between Government and contractor's personnel. 2. Under continuous supervision and control of Government person. *Don't award unless authorized by statute.
*Claims and REA* 41 U.S.C. Chapter 71, Contract Disputes; FAR 2; FAR 52.233-1 (2016-05-31) Q: What is the difference between a claim and a request for equitable adjustment?
1. Claim - written demand for payment/adjustment. Lengthy, more formal process. Issued via disputes clause. 2. REA - usually result of a unilateral change order. CO should negotiate timely. Issued via changes clause, stop-work order, Government delay of work, Government property or suspension of work clauses.
*Cost Reasonableness and Cost Realism* FAR 15.404 (2016-05-31) Q: What is the difference between cost realism and cost reasonableness?
1. Cost realism - is the cost too low for the contractor to be successful with the contract action. The costs must be realistic for the work to be performed. Costs must reflect a clear understanding of the requirements and are consistent with the various elements of the offeror's technical proposal. 2. Cost reasonableness - Can the price be determined to be fair & reasonable through one of the methods as outlined in FAR. Price and/or cost analysis is used to determine reasonableness.
*Funds* DoD Financial Management Regulation, Volume 3, Chapter 10, Appendix C (2016-05-31) Q: When speaking of funds, what does "Current", "Expired", and "Cancelled" funds mean?
1. Current - funds available for obligation. 2. Expired - funds available only for recording, adjusting and liquidating obligations properly chargeable to the appropriation. Funding in this phase remains available for 5 years from the year the appropriation expires, regardless of the appropriation type. 3. Cancelled - funds not available for any purpose.
*Defective Pricing* FAR 15.407 (2016-05-31) Q: What three conditions must exist to have defective pricing?
1. Data was not current, accurate or complete at the time of the price agreement. 2. The Government relied on the data. (note: the PNM shall say this). 3. A cost increase was the result on the dependence on defective pricing.
*Public Law* FAR 22 (2016-05-31) Q: List three (3) major labor laws which a contracting office routinely incorporates into contracts?
1. Davis Bacon Act - Construction. 2. Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 Statute (formerly Walsh Healey Act) - Manufacture or furnishing of materials, supplies,articles or equipment. 3. Service Contract Labor Standards - All Government service contracts, where the principle purpose of which is to furnish services thru the use of employees.
*Military Interdepartmental Purchase Request (MIPR)* 31 U.S.C. 1535; FAR 17.502-2 (2016-05-31) Q: What are the CO's responsibilities when reviewing MIPRs?
1. Does it reflect appropriate business approach. 2. Is it complete. 3. Is the description adequacy for supplies or PWS complete for services. 4. Is there a fee associated with the MIPR and has the Requiring Activity been advised of this fee. 5. Is there other required documentation. 6. Is D&F for Economy Act been completed? 7. Non-DoD/Services Designated Official D&F complete? 8. Are required footnotes/business rules/interagency agreements followed?
*Changes Clause* FAR 52.243-1 (2016-05-31) Q: What type of changes are covered with the changes clause?
1. Drawings, designs, or specifications 2. Method of shipment or packing 3. Place of delivery
*Contracting Officer Responsibilities* FAR 1.602 (2016-05-31) Q: What are the roles and responsibilities of a CO?
1. Ensure all requirements of law, executive orders, regulations, procedures, clearances and approvals are met. 2. Ensure compliance with terms of contract. 3. Safeguard the interest of the Government. 4. Ensure requirements of FAR 1.602.1(b) have been met. 5. Ensure sufficient funds are available for obligation. 6. Ensure contractors receive impartial, fair, and equitable treatment. 7. Consider the advice of DACC, legal, engineering, transportation, and other fields.
*Certified Cost or Pricing Data* FAR 15.402 (2016-05-31) Q: What is the intent of obtaining certified cost or pricing data?
1. Ensure negotiations conducted on a level playing field. 2. Ensure Government has current/complete/accurate data. 3. Method of reducing negotiated amount based on impact of contractor providing data not current/accurate/complete.
*Performance-Based Service Acquisitions (PBSA)* https://www.acquisition.gov/seven_steps/home.html (2016-05-31) Q: What are the seven steps to Performance-Based Service Acquisitions?
1. Establish team. 2. Decide what problem needs solving. 3. Examine private-sector and public sector solutions (market research). 4. Develop of PWS or SOO. 5. Decide how to measure and manage performance. 6. Select the right contractor. 7. Manage performance.
*Integrated Product Team Pricing* FAR (2016-05-31) Q: There is a new sole source effort. It's a modification estimated at $7M for systems engineering support. The PM asks if IPT pricing can be used as he did last year. What would you tell him about IPT pricing? Please explain the steps, including reviews/clearances, that you would consider to build your timeline? *AIR FORCE ONLY*
1. IPT pricing is no longer a pricing method available, traditional pricing will be the path forward. IPT pricing tool rescinded IAW 27 Apr 09 AFMC Policy letter 2009-PK-003 2. Steps to award include proposal, necessary audits or pricing activity to build objective, policy review, business clearance ($7M - Group PK), negotiations, legal, policy review, contract clearance, settlement, contractor certification (CorP), award.
*Defective Pricing* FAR 15.407-1 (2016-05-31) Q: What are six conditions which must exist to have defective pricing?
1. Information fits the definition of cost and pricing data. 2. Accurate data was available to the contractor before the agreement on price. 3. Data was not accurate, current, complete as of date of agreement. 4. Data was not submitted to CO. 5. Government must have relied on the data. 6. An increase in cost as a result of Government reliance on the data.
*Full & Open Competition* FAR 15 (2016-05-31) Q: What exceptions to Full & Open Competition don't require a J&A?
1. International Agreement. 2. Authorized/Required by Statute (e.g. 8(a)). 3. Public Interest (if HCA determines). However a D&F is required.
*Market Research* FAR 10 (2016-05-31) Q: A program manager has a new effort. As a business advisor (Contracting Officer), what information is needed to determine how you will acquire and where and how will you obtain the information?
1. Is effort adequately and correctly described? 2. Is the effort RDT&E, production, supply or service? 3. Government cost estimate and funds availability, typ, amount. 4. Market research; sources sought, research, industry day 5. Any existing contracts available (i.e. either within your Agency or in other Government departments).
*Deviations* FAR 1.4 (2016-05-31) Q: What is a deviation?
1. Issuance of policy/procedure/provision/clause/method/practice that is inconsistent with FAR. 2. Omission/mod of required provision/clause authorized by FAR. 3. Use of provision/clause with modified altered language not authorized by FAR. 4. Use of provision / clause prescribed on "substantially as follows" or "substantially same as" basis. 5. Authorization of lesser/greater limitations on use of any provision/clause/policy/procedure prescribed by FAR. 6. Issuance of policies/procedures that govern contract process/control contract relationships that aren't incorporated into agency regulations.
*Request for Proposals* FAR 10; FAR 15 (2016-05-31) Q: For a new requirement, what are the steps before issuing an RFP?
1. Issue sources sought synopsis. 2. Conduct market research. 3. Conduct industry day. 4. Write draft RFP. 5. Issue draft RFP for comments.
*IDIQ* FAR 16.504 (a) (2016-05-31) Q: How does the PCO compute the minimum and maximum quantity on an IDIQ contract?
1. Minimum-Should be more than a nominal quantity but should not exceed amount the Government is fairly certain to order. 2. Maximum - A reasonable max should be established by conducting market research trends on recent contracts for similar supply/svcs, survey of potential users, other rational basis.
*Funding* 31 U.S.C. § 1301(a); Mr. Stephen M. Bodolay, 1996 WL 112423, at 1, Comp. Gen. No. B-240365.2 (March 14, 1996); Hon. Bill Alexander, 63 Comp. Gen. 422, 427-428 (1984); Secretary of Interior, 34 Comp. Gen. 195, 196 (1954) (2016-05-31) Q: What is the three-part test for purpose?
1. Must be for a particular statutory purpose, or necessary and incident to the proper execution of the general purpose of the appropriation. 2. Must not be prohibited by law. 3. Must not be otherwise provided for within scope of another appropriation.
*Contract Elements* Common Law (2016-05-31) Q: What are the essential elements of a contract?
1. Offer. 2. Acceptance. 3. Consideration. 4. Lawful purpose. 5. Competency of parties. 6. Certainty of terms.
*Contract Type* FAR 16.104 (2016-05-31) Q: What ten (10) factors should be considered in determining contract type?
1. Price competition - results in realistic pricing (FP). 2. Price/cost analysis - which can you do? uncertainties? 3. Type/complexity of requirement - greater risk? 4. Urgency of requirement - government accept > risk? 5. Period of performance - long (EPA clause)? 6. Adequacy of contractor's accounting system - if not FFP? 7. Concurrent contracts - same types? 8. Extent/nature of proposed subcontracting - contractor's actual risk? 9. Acquisition history - risk decreases with age. 10. Contractor's technical capability and financial responsibility.
*Financing* FAR 32.106 (2016-05-31) Q: Name the different types of government financing in order of their preference
1. Private financing (most preferred). 2. Performance based payments. 3. Customary progress payments. 4. Guaranteed loans. 5. Unusual progress payments. 6. Advance payments (least preferred).
*Source Selection* FAR 1.602-2; 3.104-4; 15.207 (2016-05-31) Q: What are the CO's responsibilities in source selection?
1. Procedures to safeguard source selection information. 2. Approve access to/release source selection information. 3. Maintain SS evaluation records.
*Advocate for Competition* FAR 6.502 (2016-05-31) Q: What are the duties of the Advocate for Competition?
1. Promote full and open competition and challenging barriers to it. 2. Reviewing contracting operations to identify opportunities/actions necessary to achieve f&o competition and the conditions that unnecessarily restrict it. 3. Preparing annual reports. 4. Recommending goals and plans for increasing competition. 5. Recommending a system of personal and organizational accountability - one that motivates individuals to promote competition and recognizes those who do. 6. Train workforce on competitive acquisitions.
*Source Selection* 2016 DoD Source Selection Manual, 1.4.1.2 (2016-05-31) Q: What are the SSA responsibilities?
1. Proper and efficient conduct of SS process. 2. Appoint respective chairpersons. 3. Establish SS team and ensure their knowledge of policy/procedure. 4. Ensure pace is event and not schedule driven (realistic SS schedule).
*Contractor Responsibility* FAR 9.104-1 (2016-05-31) Q: What are the elements to be looked at when determining if the contractor is responsible?
1. They have adequate financing. 2. Can comply with delivery requirements. 3. They have satisfactory past performance. 4. They have a satisfactory record of integrity/ethics. 5. They have the technical capability. 6. They have adequate equipment/facilities. 7. They are otherwise eligible by law/regulation
*Program Should-Cost Review* FAR 15.407-4 (2016-05-31) Q: What are the elements of a program should-cost review/analysis?
1. Two types - "program should-cost review" and "overhead should-cost review". 2. A program should-cost review is used to evaluate significant elements of direct costs, such as material and labor, and associated indirect costs, usually associated with the production of major systems. 3. An overhead should-cost review is used to evaluate indirect costs, such as fringe benefits, shipping and receiving, real property and equipment, depreciation, plant maintenance and security, taxes, and general and administrative activities.
*Ratifications* FAR 1.602-3 (2016-05-31) Q: What is the difference between an unauthorized commitment and a ratification?
1. Unauthorized commitment - the act of giving direction to a contractor without have the authority to do so. Proceeds a ratification. 2. Ratification - The act, by an official with the authority to do so, of approving an unauthorized commitment if all conditions are met.
*Military Equipment* Chief Financial Officer's Act of 1990; DoDI 5000.64 (19 May 2011) (2016-05-31) Q: What is the definition of Military Equipment?
1. Weapon system used by armed forces to carry out battlefield mission 2. expected useful life of 2+ years 3. Not intended for sale in ordinary course of business 4. Doesn't lose identity or become part of another article. 5. Available for the use of reporting entity for intended purpose. 6. Value >$100K will be MIL equipment or general equipment (i.e. test equipment)
*Claims* FAR 33.2 (2016-05-31) Q: What is a claim?
1. Written demand/assertion seeking money and/or adjustment of terms. 2. If over $100K, claim must be certified. Claim may be executed by any person authorized to bind the contractor with respect to the claim. 3. Must be submitted within 6 years after the accrual of a claim. 4. The Government shall pay interest on a contractor's claim on the amount found due and unpaid from the date that the CO receives the claim or payment was otherwise would be due.
*Options* FAR 17.207 (c) (2016-05-31) Q: What must the Contracting Officer have to exercise an option?
1. Written determination to contractor IAW option clause. 2. Funds are available. 3. There is still a Government need. 4. This is still the most advantageous method to fulfill need (price and other factors, market survey, time, continuity of ops). 5. Was synopsized IAW FAR 5 unless exempt by FAR 6. 6. Determination in file that exercised IAW Ts & Cs. 7. Contractor not harmed.
*Forms* 1279 - DFARS 205.303 AF Form 3059 - DD Form 2579 - DFARS 219.201 (2016-05-31) Q: What is the difference between a 1279, 3059 and DD2579 *AIR FORCE ONLY*
1279 Synopsis of contract award. Report all actions including mods that have face value excluding unexercised options of more that $7.0. For UCA report NTE, when definitized, if exceeds NTE by more than $7M report only amount exceeding original NTE. Send to SAF/LLP. AF 3059 - Staff Judge Advocate coordination sheet. Route files through legal for review/coordination for actions over $1M DD2579 - Small business coordination record.
*Contract Type* FAR 16.3 (2016-05-27) Q: You're preparing CR RFP for fabricating a unique, one-of-a-kind item that has never been built. The exact level of effort required is unknown. The contractor feel there's significant risk, given schedule and potential for failure. Which type of contract would you recommend, what are some of its features and why would you recommend it?
A Cost-Plus-Fixed-Fee contract provides for payment to the contractor of a negotiated fee that's fixed at the inception of the contract. Fixed fee doesn't vary with actual costs, but may be adjusted as a result of change in the work performed under the contractor. This type permits contracting for efforts that might otherwise present too great a risk, but provides the contractor only minimum incentive to control costs.
*Justification & Approval* FAR 6.303 (2016-05-31) Q: What is a class J&A?
A class J&A provides authority for a class (group) of contracts for the same or related supplies/services that require essentially identical justifications. The CO must make written determination that an individual contract action may be awarded within the scope of a class J&A before such actions are awarded.
*Service Contracts* FAR 37 (2016-05-31) Q: What does a service contract accomplish?
A contract that directly engages the time and effort of a contract whose primary purpose it is to perform an identifiable task rather than to furnish an end item of supply. May be either personal or non-personal contract. Can cover services performed by professional or non-professional whether on individual or organizational basis.
*Contingent Liability* AFFARS 5317.101 (2016-05-31) Q: What is contingent liability?
A liability which is not fixed or absolute but will become so upon occurrence of uncertain event(s). May/may not become actual liability depending on future event. Must reserve funds as soon as aware of the potential. Examples: Award fee, EPA, Incentives, REA/claim.
*J&A* FAR 6.303 (2016-05-31) Q: A contract was awarded for $8M (amount of the approved J&A). The CO anticipates issuing a change to add work outside the scope of the contract for $4M. What does this mean for your J&A?
A new J&A must be submitted by the CO to the appropriate approving official.
*Intellectual Property* FAR 27 (2016-05-31) Q: What is intellectual property?
A product of the intellectual processes that has commercial value. It is divided into two main categories: 1)Patent Rights and 2)Technical Data and Computer Software Rights.
*Alternative Dispute Resolution (ADR)* FAR 33.215 (2016-05-31) Q: What is the objective of ADR?
ADR is a method to increase the opportunity for relatively inexpensive and expeditious resolution of controversial issues. -a neutral person, uninterested party, facilitates the resolution. -methods include arbitration and mediation
*Acquisition Planning* FAR 7 (2016-05-31) Q: What is the policy regarding acquisition planning?
Agencies share perform acquisition planning and conduct market research for all acquisitions in order to promote/provide for 1) the acquisition of commercial items, or to the extent that commercial items suitable to meet the agency need aren't available, non-developmental items to the maximum extent practicable 2) full and open competition (unless not required). Purpose: Ensure the Government's needs are met in the most effective, economical, timely manner.
*Economy Act* 31 U.S.C. 1535; FAR 17.502-2 (2016-05-31) Q: Describe the Economy Act
Allows agencies to procure goods/services from other agencies at cost, a D&F is required. Intra-agency, activity within the Dod, you may not need D&F, Inter-agency, activity outside DoD like DOE, D&F signed by General or SES. Economy act does not apply to FSS acquisitions under FAR 8 or GSA, FPI, and other required sources of supplies.
*Cost Efficiency Factor* DFARS 215.404-71-5 (2016-05-31) Q: What is a cost efficiency factor and when may it be used?
Allows up to 4% profit/fee for demonstrated contractor efforts that will reduce costs on pending contract. Participation in SPIs, actual reductions from prior contracts, process improvements, subcontractor cost reduction efforts, investment in new facilities, cost reduction initiatives.
*Advocate for Competition* FAR 6.5 (2016-05-31) Q: What is the Advocate for Competition?
An employee of a contracting activity assigned the task of challenging barriers to competition/promoting full and open competition. 41 USC 418 requires each executive agency/contracting activity to appoint a competition advocate. Usually hig-rank employee reporting directly to the heads of their Agency or Activity.
*Disputes* FAR 33.202 (2016-05-31) Q: What is a dispute?
An issue in controversy that results in a contractor claim. -Request for Equitable Adjustment initiates dialog -Try informal discussions/negotiations to resolve, if fail to work, a claim may be submitted. -The Contract Disputes Act give fixed timeframe for resolution. -CO's final decision is the final work. The Contractor may appeal as described in FAR 33.
*Finance* US Code, Title 31, Section 1502(a); DoD Financial Management Regulation (FMR) 7000.14-R, Volume 11A, Paragraph 020510 (2016-05-31) Q: What is the Bona Fide Need rule?
Appropriated funds will be obligated for effort that is a current, valid (legitimate) need/requirement that arises during the FY that the funding was appropriated. (i.e. current dollars for current needs). Current needs typically defined by when agency will use item or receive service. Can have lead-time exceptions.
*Clearance Process* AF AFICA MP 5301.90 - Clearance (2016-05-31) Q: Describe how clearance approval steps differ for competitive vs. non-competitive actions. *AIR FORCE ONLY*
Business clearance for competitive acquisition is approval to issue solicitation. For non-competitive is approval to begin negotiations. Contract clearance for competitive acquisition is approval by CAA for SSA to make the decision to award w/out discussions or request FPRR. For non-comp is approval by CAA to award contract or modification. MIRT applies to all actions over $50M.
*Changes* 10 U.S.C. 2373; AFMC SUPPLEMENT 5335.018-90 (2016-05-31) Q: You are the PCO on a contract that will deliver 4 assets to your program office. The contract was awarded competitively. The PM comes to you and explains that he needs a 5th unit so the project can undergo some survivability testing. What do you need in order to acquire the unit? *AIR FORCE ONLY*
Can use Acquisition Experimental & Test Purpose 10 USC 2373, which exists for limited quantities for test purposes. Or you can synopsize and write J&A and procure.
*Exchanges* FAR 15.306 (2016-05-31) Q: What are the three types of exchanges between the Government and offerors?
Clarifications - limited exchanges when award without discussions is contemplated. Includes relevance of past performance, adverse past performance, or minor/clerical errors. Communications - exchanges after receipt of proposals leading to the establishment of the competitive range. Limit to offerors who past performance is affective placement in the competitive range and those whose inclusion is affecting understanding of proposal. No changes may be made to the proposal. Discussions - To maximize the Government's ability to obtain best value. Can discuss adverse past performance, uncertainties, weaknesses, deficiencies, strengths. Only with offerors within the competitive range.
*Contract Elements* Common Law (2016-05-31) Q: What is consideration?
Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration). In a contract, one consideration (thing given) is exchanged for another consideration.
*Foreign Military Sales Contingent Fees* DFARS 225.7303-4; DFARS 225.7306 (2016-05-26) Q: What are FMS contingent fees and offsets and tell where to check to see if these costs are allowable?
Contingent fees, sometimes known as commissions are paid to a bona fide employee or bona fide established commercial or selling agency maintained by the prospective contractor for the purpose of securing business. DoD 5105.38-M, defines a list of countries where contingent fees are unallowable unless the contractor identifies the payments and the foreign customer approves the payments in writing prior to contract award. If a country is listed, you should read the LOA to determine if the foreign customer has an agreement in writing. A $50K ceiling exists for contingent fees, unless the contractor identifies the payment and the foreign customer approves the payment in writing before contract award. In accordance with the Presidential policy statement of April 16, 1990, DoD does not encourage, enter into, or commit U.S. firms to FMS offset arrangements. The decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, resides with the companies involved. (Also see 225.7303-2(a)(3).)
*Cost Realism* FAR 2101; FAR 15.305 (2016-05-31) Q: Describe cost realism
Cost realism means the costs in the proposal 1. are realistic for work to be performed 2. reflect a clear understanding of the requirements 3. are consistent with the various elements of the technical proposal. Cost realism is performed on all CR contracts Purpose: assesses specific viability of an offer against proposed technical solution and current capability. Must be determined without regard to proposed ceiling on Government obligation and gives an accurate forecast of offer's likely success in performing the program.
*Single Process Initiatives (SPI)* DFAR 215.404-71-5 (2016-05-31) Q: What are SPIs?
DEF: Among things to consider when determining if cost efficiency factor should be applied. Purpose: SPI is acquisition reform initiative designed to reduce costs associated with doing business with the Government. SPI allows block contract changes to implement common processes and replace/eliminate MIL Standards and specs and business requirements when they don't add value. Gives contractors flexibility to use most efficient business and manufacturing processes for individual facilities/products they produce. Goal of SPI is to reduce contract costs associated with unnecessary Government oversight, to more towards total performance based acquisition practices within DoD.
*Funding* AFMAN 65-604 (2016-05-31) Q: You are the PCO on a program that has fielded units and is still in production. The initial deliveries highlighted a need for better packaging in the shipping containers. Your PM wants to contract for the design of this packaging and once developed, wants to purchase these new protective devices for all assets in the field as well as those currently being produced. What type(s) of funds do you need? *AIR FORCE ONLY*
Design/test of new design: 3600 (RDT&E) New packaging/containers for assets in field: 3400 (O&M) New packaging/containers for assets being produced: 3011 (Production)
*Discussions* FAR 15.306 (d)(3) (2016-05-31) Q: What constitutes meaningful discussions?
Discussions must be meaningful, they can't be misleading and must identify proposal deficiencies and significant weaknesses that could reasonably be addressed in a manner to materially enhance the offeror's potential receiving award. We should not spoon-feed an offeror during discussions; they need only lead offerors into the areas of the proposal that require amplification.
*Clearance Approve Thresholds* AFICA Appendix A (2016-05-31) Q: What are the clearance approval thresholds? *AIR FORCE ONLY - 771st ESS*
Dollar Thresholds............Operational Contracting <$5M............................................................PCO $5 - $50M..................................................COCO
*Justification & Approval (J&A)* AFFARS 6.304(a); AFICA MP 6.304(a) (2016-05-31) Q: What are the J&A approval thresholds within the Air Force? *AIR FORCE ONLY*
Dollar Thresholds............Operational Contracting <=$700K..................................Contracting Officer >$700K<=$13.5M..................Competition Advocate >$13.5M<=$93M........PEO/Head of Procuring Activity >$93M......................Senior Procurement Executive
*Estimating Systems* FAR 15.407-5 (2016-05-31) Q: Define estimating system and cost reimbursement.
Estimating system is contractor's policies/procedures/practices for generating estimates. Includes organizational structure, internal controls, and managerial reviews, work flow, est methods, techniques, accumulation of historical costs and other analysis. Cost reimbursement - Contractor's ability to accurately and reliable estimate costs could lead to cost overruns and increased risk for the Government.
*Technical Incentive* 16.402-2 (2016-05-31) Q: What is a tech incentive? What must the contractor provide (factors to consider) if proposing use of tech incentive.
Factors for Tech Factor 1. Acquisitions that include development, production or application on innovative new technologies. Does not apply to studies, analyses, demonstrations. 2. Technology being applied or developed by contractor; technology complexity; maturity; performance specs/tolerances; delivery schedule, extent of warranty/guarantee.
*Software Markings* DFARS 227 (2016-05-31) Q: What is the difference between nonconforming markings versus unjustified markings?
Government's right to establish conformity of markings. -Nonconforming - any marking that are not authorized. A marking that is not in the form, or differs in substance, from the markings required in the clause. CO shall return technical data containing nonconforming markings to the person that placed the markings on the data so they can correct at their own expense. Must return. -Unjustified - Authorized marking that doesn't depict accurately restrictions applicable for Government use, modification, reproduction, release, performance, display, or disclosure of marked technical data. CO has right to review & challenge. Upon agreement CO may mark or correct or return for correction at contractor expense.
*Truthful Cost or Pricing Data (Formerly TINA)* FAR 15.403-1(c) (4) (2016-05-31) Q: What are the three criteria for receiving a waiver to the act formally known as TINA?
HCA may waive Truthful Cost or Pricing Data requirements: 1. Property or services can't be reasonably obtained without waiver or 2. Price can be determined fair & reasonable without Cost or Pricing Data submission or 3. There are demonstrated benefits to granting the waiver.
*Cost and Pricing Data* FAR 15.403-1 (2016-05-31) Q: You have just received a requirement to purchase 3 small utility trailers that can be used to ferry supplies and equipment between locations on the flight line. The customer tells you that a type of trailer used by the airlines would be acceptable if 1 minor change can be made to the placement of tie down bolts on the trailer. The estimated price for the trailers is $600K. Do you need to obtain certified cost or pricing data?
IAW FAR 15 a commercial item, or modified commercial item as defined in FAR 2, is exempt from the requirement to obtain cost or pricing data. It also is below the threshold of $700K for requiring Cost and Pricing Data.
*Costs* FAR 31.202 (2016-05-31) Q: What are direct costs?
Identified to a single cost objective, contract or organizational unit. example: direct labor, material, ODC
*Judgment Fund* 31 U.S.C. 1304; Fiscal Law Deskbook, 2014, Chapter 11, VI. (2016-05-31) Q: What is the judgment fund?
If funds not available, the CO may refer a claim to the ASBCA and request they approve the settlement of the claim from the Judgment Fund (refer to FM regulations). Judgment Fund is available for court judgments and Justice Department compromise settlements of actual or imminent lawsuits against the Government. Payment of final judgments not otherwise provided for. No FY.
*Performance Based Payments* FAR 32.10 (2016-05-31) Q: What is the intent of including performance based payments?
Improve contractor's cash flow. Especially for contractors who don't have approved accounting system that are (needed)(required) for progress payments (based on cost).
*Urgent Need* 10 U.S.C. 2326; DFAR 217.74 (2016-05-27) Q: Your PM comes to you with an urgent need for a modification to a weapon that is needed in the field immediately. What do you do? What do you need to accomplish it?
Key thoughts: 1. Is there an existing contract? If so, could a NTE modification be issued? If not, can you issue a UCA. The J&A would be based on unusual and compelling urgency (can be written after the UCA issued). Would need authority to award UCA. 2. Is funding available? Can't obligate over 50% of NTE/need new start. Need definitization schedule & NTE proposal from contractor.
*Government Furnished Property (GFP)* FAR 45.103 (2016-05-31) Q: Related to GFP, what is meant by the term competitive advantage during a source selection? How do you ensure this issue is addressed or eliminated during the source selection?
Meaning: advantage contractor may have by using Government property. Addressed: CO shall consider potential unfair competitive advantage that may result from Contractor possessing Government property. Do this by adjusting offers by applying, for evaluation purposes only, a rental equivalent evaluation factor. -Ensure maximum practical reutilization of Contractor inventory for Government contracts. -Require contractors use GFP already in their possession to maximum extent practical in performing Government contracts. -Charge appropriate rentals if GFP authorized for use on other than rent-free basis -Require contractors justify retaining GFP not needed/declare excess -Not generally require contractors establish separate property management systems.
*Military Equipment* Chief Financial Officer's Act of 1990; DoDI 5000.64 (19 May 2011) (2016-05-31) Q: What is MEV?
Military Equipment Valuation 1. Method to capture values/cost for military equipment. 2. Apply categories to equip expenditures and financial statements. 3. DoD goal of improved financial reporting for military equipment. To implement Federal accounting standards requiring all military equipment with unit cost > threshold be treated as capitalized assets. Provides sound financial stewardship of Congressional funding. CLINs now established to distinguish between capitalized vs. expenses items. PM, FM and CO all have roles in the process. Auditable accountability/visibility of Government property. Methodology to valude government property. ME has useful life > 2 years, not for resale, used in performance of military missions, /$100K cost.
*Review* AFFARS 5301.9001 (b) (2016-05-31) Q: What is a MIRT? *AIR FORCE ONLY*
Multifunctional Independent Review Team 1. Competitive acquisitions over $50M. 2. Assists in clearance processes at five critical decision points
*Business & Contract Clearance* AFFARS 5301 (2016-05-31) Q: What is the objectives of business and contract clearance? *AIR FORCE ONLY*
Negotiations result in business arrangement that is Fair and Reasonable. Negotiations actions are IAW laws, regulations, policies; independent review is accomplished; acquisitions strategy are implemented effectively.
*Business Clearance* AFFARS 5301.90, AFFARS MP5301.9001(f), AFICA MP5301.9001 (2016-05-27) Q: One of the buyers in your program office comes to you to brief a sole source pre-negotiation objective for business clearance. The proposed amount is $5.3M. The Government objective is $4.8M and the negotiation range is up to $5.1M. What do you do? *AIR FORCE ONLY*
Obtain approval from Clearance Approval Authority (CAA) at the appropriate values. Note that the thresholds vary from MAJCOM to MAJCOM. AF CO's need to consult the appendix to the MP.
*Non-Personal Service* FAR 37.102 (2016-05-31) Q: What is non-personal service?
Personnel performing are not subject to supervision/control usually prevailing in relationship between Government and its employees. *All service contracts should be non-personal in nature with very few exception (e.g. medical doctors/nurses/some highly specialized technical support/consultants)
*Acquisition Strategy Panel (ASP)* AFFARS 5307.104-92; AFICA MP 5307.104-92 (2016-05-31) Q: Who prepares the ASP minutes, when are they prepared and who approves them? *AIR FORCE ONLY*
Program manager, CO or Commodity Council Director prepares following the conclusion of the ASP briefing, and approved by the ASP chairperson.
*Progress Payments* FAR 32.5 (2016-05-31) Q: What rights does the Government have with regards to progress payments? What steps does a PCO have to go through to suspend or reduce progress payments?
Progress payments provide Government rights to reduce/suspend progress payments or to increase liquidation rate under specified conditions. PCO must take following steps prior to suspending: -notify contractor of intended action and provide opportunity to discuss -evaluate the effect of the action on contractor's operation based on the contractor's financial condition, projected cash requirement and existing credit. Consider general equities of situation, PCO can take unilateral action only if warranted by circumstances like overpayments or unsatisfactory performance. PCO shall always act fair and reasonably, based decisions on substantial evidence, document contract file.
*Performance Based Payments* FAR 32.10 (2016-05-31) Q: What are the pro's and con's of performance based payments?
Pros - Can be made for up to 90% of contract of CLIN price. Fully recoverable like *progress payments*, even if contractor default. Cons - If contractor doesn't meet goals, payments delayed, negative effect on cash flow.
*Service Contract Labor Standards* 41 U.S.C. Chapter 67, FAR 22.1000 (2016-05-27) Q: Describe Service Contract Labor Standards (formerly know as the Service Contract Act of 1965)
Provides for minimum wages and fringe benefits as well as other conditions of work under certain types of service contracts. Service contracts over $2,500 shall contain mandatory provisions regarding minimum wages and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates. Under 41 U.S.C. 6707(d), service contracts may not exceed 5 years.
*Technical Data* FAR 27.401 (2016-05-31) Q: What is technical data?
Recorded information, regardless of form or method of recording, of a scientific or technical nature (including computer software documentation). Not Technical Data - data describing contractor, info incidental to performance of contract, oral information not recorded, physical manifestation of the product whose design is described in the data (i.e. hardware item).
*Cost Analysis* FAR 15.404-1 (c) (2016-05-31) Q: What is cost analysis?
Review and evaluation of separate elements and profit of contractor's proposal. The application of judgment to determine how well proposed costs represent what the cost of the contract should be assuming reasonable economy and efficiency. Techniques include verification of cost or pricing data and evaluation of cost elements; projection of offeror's cost trends based on current/historical cost/pricing data; audit and negotiated indirect cost, labor and COM rates.
*Solicitation Elements* FAR 2 (2016-05-31) Q: What is the difference between a SOO, SOW, and PWS?
SOO - Statement of Objectives - The SOO is an alternative to a performance work statement (PWS). It is a summary of key agency goals, outcomes, or both, that is incorporated into performance-based service acquisitions in order that competitors may propose their solutions, including a technical approach, performance standards, and a quality assurance surveillance plan based upon commercial business practices. SOW- Statement of Work - The SOW should specify in clear, understandable terms the work to be done in developing or producing the goods to be delivered or services to be performed by a contractor. Preparation of an effective SOW requires both an understanding of the goods or services that are needed to satisfy a particular requirement and an ability to define what is required in specific, performance-based, quantitative terms. A SOW prepared in explicit terms will enable offerors to clearly understand the government's needs. This facilitates the preparation of responsive proposals and delivery of the required goods or services. A well written SOW also aids the Government in the conduct of the source selection and contract administration after award. PWS - Performance Work Statement - The PWS should state requirements in general terms of what (result) is to be done, rather than how (method) it is done. The PWS gives the contractor maximum flexibility to devise the best method to accomplish the required result. The PWS must be written to ensure that all offerors compete equally. The U.S. Government must remove any features that could restrict a potential offeror. However, the PWS must also be descriptive and specific enough to protect the interests of the U.S. Government and to promote competition. The clarity and explicitness of the requirements in the PWS will invariably enhance the quality of the proposals submitted. A definitive PWS is likely to produce definitive proposals, thus reducing the time needed for proposal evaluation.
*Funding* DFARS 232.703-1 (2016-05-31) Q: What are the exceptions to "full funding" of fixed price contracts?
Should be fully funded, but exceptions are: 1. Contract or option if a severable service, not over 12 months period of performance, and uses funds as the date funds obligated or 2. Uses multiple year funds and is R&D funding or Congress has otherwise authorized incremental funding.
*Contract Award* FAR 32.703-2 (2016-05-31) Q: You have just completed a long and complex negotiation for a large IDIQ contract and are ready to make award. In terms of funding, what must you ensure before awarding this contract?
Sufficient funds are available to be obligated for minimum order quantity.
*Options* FAR 17.207 (2016-05-31) Q: You have a contract that was awarded under full & open competition, with NTE options. What must the CO do to exercise the option?
Synopsize as a new requirement and execute a J&A prior to exercising the option. Accomplish the D&F as required and ensure funds are available. (if addressed in the original PCM and considered in initial award, different rules).
*Contract Type* FAR 16.405-1 (2016-05-31) Q: What are the elements of CPIF?
Target cost, target fee, minimum fee, maximum fee, fee adjustment formula, share ratio. When the contractor reaches the high cost estimate the contract converts to a CPFF with a minimum fee.
*Anti-Deficiency Violation* FAR 32.702 (2016-05-31) Q: You're the PCO on a $125M new start for a RDT&E effort. The PoP is expected to be 5 years and the PM only has enough funds to cover the first year's effort, expected to cost $25M. However, the remaining funds are budgeted in the subsequent 4 years. Can the CO make award without full funding or would such an action be considered an anti-deficiency violation?
The CO can award. RDT&E contracts can be incrementally funded and remaining funds are included in out year budgets. Also, Government is protected from any anti-deficiency violation because the limitation of funds clause would limit the Government liability to amount obligated.
*Equitable Adjustment* FAR 33.214 (2016-05-31) Q: What is the strategy for resolving equitable adjustments? *AIR FORCE ONLY*
The CO shall use ADR to the maximum extent possible to resolve. If the REA is over $500K, refer to AFLOA/JACQ and SAF/GCD if at impasse to develop a dispute resolution strategy.
*Government Furnished Property* FAR 45.104; FAR 52.245-1(h) (2016-05-31) Q: Who is responsible for the cost to repair GFP that has been broken by normal use?
The Government.
*Ratifications* FAR 1.602 (2016-05-31) Q: What is a ratification under FAR 1.602?
The act of approving an unauthorized commitment. Ratification must: Svc/Supply provided or Gov't benefitted, ratification official has authority, resulting contract would have been appropriate anyway, price fair and reasonable, CO/Legal recommend payment, funds are/were available, action complies with agency procedures.
*Cost Reasonableness and Cost Realism* FAR 15.404 (2016-05-31) Q: What is realism?
The analysis of reviewing/evaluating specific elements to determine if proposed cost is: 1.realistic for work to be performed, 2. reflects a clear understanding of the effort, and 3. is consistent with methods of performance /materials.
*Source Selection* DoD Source Selection Manual; AFFARS MP 5315 (2016-05-31) Q: What are the purpose of evaluation factors and the AF mandated factors? *AIR FORCE ONLY*
The purpose is to describe how to meet requirements, are discriminators, what constitutes acceptability. Factors: Mission capability, Past Performance, Cost/Price.
*Deviations* FAR 1.403; FAR 1.404 (2016-05-31) Q: What are deviations and what are the two types?
What: Policy/procedure/provision/clause inconsistent with FAR. Omission of required or use of a non-authorized provision/clause. Provision/clause using "substantially" that is inconsistent with intent. Authorization of/or use of policy/procedure/provision/clause prescribed. Policy/procedures authorized that are not part of acquisition regulations. Types: Class & Individual
*Protests* FAR 33 (2016-05-31) Q: What is a protest?
Written objection by interested party to any of the following: 1. Solicitation or other request for offers for a contact. 2. Cancellation of such solicitation or request. 3. Award or proposed award of the contract. 4. Termination or cancellation of award of the contract. *Interested party means actual or prospective offeror whose direct economic interest would be affected by the award or failure to award the contract.
*Appeals* FAR 33.2 (2016-05-31) Q: What is an appeal?
Written request to higher court to modify or reverse a judgment. -For CO Final Decision - appeal to Armed Services Board of Contract Appeals or US Court of Federal Claims. -For SB Set-Asides - appeal to the Agency head.
*Scope* FAR 6.3, FAR 6.2, FAR 6.4 (2016-05-31) Q: If a CO determines changes to a requirement are outside the general scope of the contract, may those changed requirements still be added? If so how?
Yes, changed requirements may be added to the existing contract by modification if the requirement for other than Full & Open Competition, a J&A is obtained, and the requirement is synopsized IAW FAR 5. If no exceptions to FAR 6.3 apply, the requirement may still be procured as new work under the F&OC requirement of FAR 6.2 after exclusion of sources if applicable or the Sealed Bidding & Competitive requirements of FAR 6.4 assuming the contractor won the competition.