203 - Contract Administration Strategies

Question 1

Acceptance of Sampling (Acceptance Testing)

Answer 1

A quality control technique used to evaluate the overall condition of a given lot by physically inspecting a portion or sample of the lot

Question 2

Acquisition

Answer 2

1.The process of obtaining supplies, services, or construction through purchase, lease, or grants

2. Means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated

Question 3

Addendum/Addenda

Answer 3

A written change, addition, alteration, correction or revision to bid, proposal or contract document

-commonly, the name given to the document used to revise a solicitation

Question 4

Administer Contract

Answer 4

This is the post-award life cycle phase of contract management, and it is the “perform contract” domain.

-process of: establishing expectations, maintaining communication channels, processing contract documentation, conducting post-award performance reviews and assessing contract performance

Question 5

Administrative change

Answer 5

A unilateral change to a contract in writing that does not affect the substantive rights of the parties

Ex: a change in the address to which an invoice is mailed

Question 6

Administrative Contracting Officer

Answer 6

The contracting officer who is authorized to perform post - award contract administration duties, monitor the contractor’s performance and perform post-award contractual functions delegated by the purchasing office

Question 7

Agency

Answer 7

1. A legal relationship that exists between two parties by which one (the agent) is authorized to perform or transact specified business activities for the other (the principal).
2. An administrative or organizational division of a government.

Question 8

Ambiguity

Answer 8

Contract language that can be construed to have more than one meaning, definition, or interpretation

Question 9

Amendment

Answer 9

An agreed addition to, deletion from, correction, or modification of a document or contract

Question 10

Anti-trust Laws

Answer 10

State and federal laws enacted to ensure free, fair, and open competition by prohibiting monopolies or conspiracies in restraint of trade in interstate and foreign commerce

Question 11

Appropriation

Answer 11

Legislative authorization to expend public funds for a specific purpose. Funds that have been set aside for a specific purpose

Question 12

Assure Quality

Answer 12

The post-award life cycle phase of contract management, and it is in the “perform contract” domain. It is the process of: planning for contract performance delivery and monitoring and inspecting and accepting contract performance.

Question 13

Bid

Answer 13

The response submitted by a bidder to an Invitation for Bids (IFB)

Question 14

Bilateral Modification

Answer 14

Requires the written approval of both parties to a contract in signatory form and is often related to some alteration of one or more substantive terms of the contract.

Question 15

Breach of contract

Answer 15

Failure by either contracting party to fulfill a contract, wholly or in part, without legal excuse.

Question 16

Breach of warranty

Answer 16

The failure to meet an express or implied agreement as to the title, quality, content, or condition of something sold.

Question 17

Change Order (CO)

Answer 17

A written alteration that is issued to modify or amend a contract or purchase order.

-bilateral or unilateral request that directs the contractor to make changes to the contracted scope of work or specifications

Question 18

Close contract

Answer 18

The process of verifying all the requirements of the contract are satisfied, settling unresolved matters, and reconciling the contract to make final payment.

-takes place in the post-award life cycle phase of the contract management standard

Question 19

Commodity

Answer 19

A marketable item produced to fulfill a need or want, and references both goods and services

Question 20

Conflict of Interest (COI)

Answer 20

1. A situation that can undermine a person due to self interest and public interest.
2. A situation when parties discharge responsibility to a third party.

Question 21

Contract

Answer 21

1. An obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act
2. A legally binding promise, enforceable by law
3. An agreement between parties with binding legal and moral force, usually exchanging goods or services for money or other considerations

Question 22

Contract Administration

Answer 22

A term used to describe the functions that are performed after the parties have signed the contract

-activities are goal oriented, aimed at ensuring enforcement of the contract terms and conditions while giving attention to the achievement of the stated output and outcome of the contract

Question 23

Contract Administrator

Answer 23

Monitors progress to verify that services are performed as required and that all deadlines are being met

Question 24

Convenience Contracts

Answer 24

Indefinite quantity contracts that are used by state agencies to purchase goods or services at the agency’s discretion

Question 25

Cure Notice

Answer 25

A delinquency notice that must be issued prior to termination for default of a supply or service contract before the contract’s delivery date -failure to issue a cure notice when required may result in an invalid termination for default

Question 26

Debarment

Answer 26

1. To prohibit a seller/contractor from bidding on future requirements for cause for a certain period of time 2. A sanction brought against a seller whereby they may not engage in future procurement actions 3. To exclude or shut out of future solicitations and contracting opportunities

Question 27

Default

Answer 27

1. The omission or failure to fulfill a duty, observe a promise, discharge an obligation, or perform an agreement 2. Failure to make scheduled payments of interest or principal on a loan, bond, or other types of debt

Question 28

Dispute

Answer 28

A contractual disagreement or misunderstanding between contracting parties specific to contract provisions or language -When a resolution cannot be achieved, the parties may resort to alternative dispute resolution or litigation

Question 29

Elements of a contract

Answer 29

must be present in a contract if the contract is to be binding. Offer, Acceptance, Consideration and Intent to create a legal relationship.

Question 30

Indemnify

Answer 30

1. To protect against hurt or loss; to exempt from incurred penalties or liabilities. 2. To compensate or pay for damage.

Question 31

Inspection

Answer 31

Examining and testing supplies or services to determine whether they conform to contract requirements -The buyer’s legal right to inspect goods is stated in the Uniform Commercial Code (U.C.C.), Section 2-513(1)

Question 32

Intellectual Property

Answer 32

Includes inventions, patents, copyrights, trade secrets, trademarks, technical data, industrial designs that are generally protected and proprietary

Question 33

Invitation for Bids (IFB)

Answer 33

A procurement method used to solicit competitive sealed bid responses, sometimes called a formal bid, when price is the basis for award

Question 34

Invoice

Answer 34

A supplier may submit an invoice (a bill) to the buyer for payment for contract performance -made for the purpose of honoring a contractual obligation to pay for work accepted

Question 35

Liquidated Damages

Answer 35

Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract

Question 36

Liquidated Damages

Answer 36

Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract

Question 37

Milestone Payments

Answer 37

payments to be made for this contract shall be based upon satisfactory completion by the Contractor of the milestones established in the schedule

Question 38

Milestones

Answer 38

Designated steps of the planned acquisition which usually signify a completion of a requirement or delivery of materials

Question 39

Modification

Answer 39

Any written alteration to a provision of any contract accomplished by mutual agreement of the parties to the contract

Question 40

Broad Goals of Contract Administration

Answer 40

1. The governent receives the needed performance on time and at the level of quality called for by the contract 2. The contractor receives proper compensation

Question 41

Contract Management

Answer 41

the overarching contracting process that can include activities in the pre-award, award, and post award phases

Question 42

Contract Administration

Answer 42

Describes the activities in the post-award phase, or after a contract has been signed, and is only one part of the entire contract management process

Question 43

Nondisclosure Agreement

Answer 43

egally binding document setting forth the conditions under which proprietary information is offered, received, used and protected between two or more parties

Question 44

Offer

Answer 44

response to a solicitation that, if accepted, would bind the offeror to honor what was submitted

Question 45

Offeror

Answer 45

generic term that refers to a person or entity who submits an offer in response to a solicitation

Question 46

Partial Payments

Answer 46

Payment amount that is less than the due amount, is a part payment for an unfinished work -can also occur when there is a dispute over the invoice amount when not in accordance with the contract

Question 47

Privity of Contract

Answer 47

The direct contractual relationship existing between parties that allows either party to enforce contractual rights against the other and seek remedy directly from the other party with whom the relationship exists OR a doctrine of contract law that states that contracts should not give rights or obligations to entities other than those who are parties to the contract

Question 48

Progress Payments

Answer 48

A timed sequence of payments made during the performance of contract; periodic payments made over the life of contract -allow the contractor to submit invoices for payment as progress made in performing the contract

Question 49

Proprietary (Information)

Answer 49

Owned by a private individual or corporation under a patent, copyright, trademark or other exclusive right -Usually protected from release to the general public. Not subject to public disclosure

Question 50

Purchase Order

Answer 50

A purchaser’s written document to a supplier formalizing all the terms and conditions of a proposed transaction -such as description of the requested items, cost of items being purchased, delivery schedule, terms of payment, and transportation

Question 51

Qualified Products List (QPL)

Answer 51

A list of products identified by manufacturers’ names and model numbers that are the only items that meet the minimum specifications as determined by the using entity -used when quality is such a critical factor and testing so lengthy or expensive that the entity wants to stay with proven products -prepared by testing products, either in the lab or in daily use

Question 52

Quality Assurance (QA)

Answer 52

1. Assuring that quality performance criteria contained within the contract is provided during contract delivery 2. Specific to technology, a planned and systematic pattern of all actions necessary to provide adequate confidence that the product optimally fulfills customers’ expectations

Question 53

Request for Proposal (RFP)

Answer 53

The document used to solicit proposals from potential providers (proposers) for goods and services -Price is usually not a primary evaluation factor - Provides for the negotiation of all terms, including price, prior to contract award

Question 54

Request for Quotation (RFQ)

Answer 54

Purchasing method generally used for small orders under a certain dollar threshold, such as $1000.00

Question 55

Scope of Work/Statement of Work (SOW)

Answer 55

Developed at the beginning of the procurement cycle and is a written description of the entity’s needs and desired outcomes for the procurement and becomes the basis for any resulting solicitation -helps to ensure that the product or service meets the stated outcome and establishes the parameters of the resulting contract

Question 56

Subcontractor

Answer 56

Any person or business entity employed to perform part of contractual obligation under the control of the principal contractor

Question 57

Supplier, Vendor and Contractor

Answer 57

A person or entity that provides goods and/or services

Question 58

Termination for Convenience (T4C)

Answer 58

A contract clause that may be contained within boilerplate language that allows for contract to be ended at the discretion of the governmental entity

Question 59

Termination for Default (T4D)

Answer 59

A contract clause that may be contained within boilerplate language that allows either contracting party the right to cancel a contract, either in whole or in part, due to failure of the other party to perform satisfactorily

Question 60

Terms and Conditions

Answer 60

Standard boilerplate language that includes standard clauses and rules that apply to bids and proposals formally solicited that may become incorporated into the final contract

Question 61

Waiver

Answer 61

The intentional or voluntary relinquishment of a known right, or conduct that warrants an inference that the right has been relinquished

Question 62

Warranty

Answer 62

A promise made by a seller to a buyer that is legally enforceable -may be expressed or implied and is legally binding

Question 63

Role of Administer Contract

Answer 63

- Establishing expectations, - Maintaining communication channels, - Processing contract documentation, - Conducting post-award performance reviews, and - Assessing contract performance

Question 64

If it isn't documented...

Answer 64

it doesn't exist

Question 65

The Contract Administrator MUST...

Answer 65

make written record of what they know, when they know it

Question 66

Performance problems fall into two broad categories

Question 67

International Standards Organization (ISO)

Answer 67

Organizes and creates quality specifications and standards throughout almost every industry. The ISO 9000 family creates a framework of standards for quality management.

Question 68

International Standards Organization (ISO)

Answer 68

Organizes and creates quality specifications and standards throughout almost every industry. The ISO 9000 family creates a framework of standards for quality management.

Question 69

Prime Contract

Answer 69

When a business entity enters into a direct contract with a jurisdiction

Question 70

Prime Contractor

Answer 70

The business entity that signed a direct contract with a jurisdiction

Question 71

Subcontract Management

Answer 71

The process of the prime contractor managing the supply chain it creates by subcontracting work to other business entities -prime contractor is responsible for its own subscontracts

Question 72

Prime Contractor is responsible for:

Answer 72

-Find its own subcontractors that meet the needs -Technical and financial performance of its subcontractors -Monitoring performance, and ensuring correct and timely payment is provided to any subcontractors or suppliers

Question 73

Show Cause Letter

Answer 73

his type of remedy asks the contractor for explanation regarding the nonperformance, but does not ask for action like the “notice to cure” letter does. -This letter asks the contractor to show why the contract should not be terminated for default.