Acquisition Test 3 Flashcards
(91 cards)
Define procurement.
Purchase/Acquisition of required supplies & services.
What are the objectives of the procurement process?
- Right quality
- Right quantity
- Right time
- Right price
- Right supplier
What are the responsibilities of the Program Manager?
Responsible for meeting program objectives within cost, schedule, & performance.
PM Chain of Authority: PEO, CAE, DAE
What are the responsibilities of the Contracting Offier?
Provide procurement support to the PM & ensure contracts comply with statute.
- Authority from Constitution and FAR.
- Chain of Authority: Head of Contracting, Head of Agency, SECDEF, President
What is a contract and the basic elements?
A mutually binding legal relationship obligating the seller to furnish supplies or services & the buyer to pay.
Elements:
- Offer
- Acceptance
- Consideration
- Competency of parties
- Legality of purpose
- Certainty of terms
What are the 6 phases of the procurement process?
- Procurement Planning
- Solicitation Planning
- Solicitation
- Source Selection
- Contract Admin
- Contract Close-Out
Define Procurement Planning and list at least one activity.
Determine what to procure & when.
Identifying what needs are best met by procuring products or services outside the organization.
Activities:
- Whether to procure (outsource)
- How to procure
- What to procure
- How much to procure
- When to procure
Define Solicitation Planning and list at least one activity.
Document requirements & identify potential sources.
- State requirement in terms of Mission need & minimum Operational performance.
- Use performance objectives rather than design requirements
- ID min threshold & objectives & performance values
- Develop eval factors that communicate program priorities in order of importance.
Define Solicitation and list at least one activity.
Invitation for offerors to submit a bid or proposal.
- Post formal public advertisement
- Obtain quotes, bids, offers, or proposals
Define Source Selection and list at least one activity.
Evaluate proposals and select Best Value.
- Maximize Competition
- Minimize Complexity
- Ensure Impartial Evaluation
- Select proposal with highest degree of Realism
Define Contract Admin and list at least one activity.
Manage relationship with the contractor.
Manage (activities):
- Changes
- Performance
- Disputes
- Termination
- Close Out
Define Contract Close-Out and list at least one activity.
Completion and settlement of the contract and resolution of any open items.
Activities:
- ID & resolve any uncompleted obligations or pending liabilities on part of either party.
- Document contract decisions & actions
How is the procurement process integrated with the acquisition framework?
The procurement process occurs at the beginning of each phase of the acquisition framework, which helps minimize Risk during progression through life cycle.
What are the 3 methods of procurement?
Competitive:
- Sealed Bidding: lowest-priced/tech acceptable (LP/TA). “Silent Bidding.” No communication or negotiations. Used with Well-Defined Requirements(i.e., blueprints/desing/drawings provide detailed specifications) and with Firm-Fixed Price Contracts.
- Competitive Negotiations: Best Value. Contract may be awarded to other than lowest bidder. **Quantity is important **(blueprint/design/drawings are not provided). Used with any auth contract type.
Noncompetitive:
- Sole-Source: only 1 contractor can provide service or product.
What are 4 objectives in selecting contract type?
- Place as much cost responsibility on the contractor as reasonable.
- Allocate risk between buyer & contractor.
- Maximize contractor incentive.
- Minimize contract administration cost for both parties.
What are 3 factors to consider in selecting contract type?
- Capability of seller’s accounting system
- Uncertainty in cost estimate
- Type & complexity of requirements
- Urgency of requirement
- Marketplace & competition
- Seller’s technical capability
- Admin costs
- Size & amount of the contract
What’s the difference between Fixed Price & Cost Type contracts?
Fixed Price:
- Contractor bears Risk
- Risk of performance is **low **
-Contractor only receives agreed to amount & profit is dependent on costs incurred.
Cost Type:
-Gov’t bears Risk
- Risk performance is high
- Gov’t obligated to reimburse contractor for all allowable, reasonable, & allocable costs incurred.
- Contractor provides “Best Effort”
- Cost savings is returned to Gov’t
- Cost overrun paid by Gov’t
What are the 3 types of contract fee?
- Fixed Fee: Used with Cost type or Cost Plus Fixed Fee. Lowest risk to Contractor/Hightest risk to Gov’t. Paid regardless of Contractor’s performance.
- Award Fee: Award Fee pool (funding) available at contract initiation, Award Fee Plan states criteria for % of fee awarded, Award Fee Board meets at intervals to determine fee, may include fixed base fee. Subjective tip-like fee given for exceeding requirements. NOT Disputable.
- Incentive Fee: Used to incentivize cost, schedule, or performance, Fee determined by a calculation & is disputable, may specify minimum fee & always specifies max fee, Contractor must perform satisfactory on all contract elements to qualify.
What’s the relationship between requirement, buyer’s risk, seller’s risk, and contract type?
Cost Type Fixed Price
<————————————————>
**CPFF CPAF CPIF FPI FP/EPA FFP **
High <——–Buyer’s Risk——–> Low
**Low <——–Seller’s Risk——–>High **
**Less **Defined<—Requiremnet—> More Defined
What’s the purpose of the SOW and its relationship to WBS?
The Statement of Work establishes and defines a standard for contractor performance. Such as:
- What the Contractor must do
- What goods or services are to be performed
**Each SOW Task corresponds to a WBS Element from the Systems Engineering Process. **
What is SOO and how is it different from SOW?
Statement of Objectives are high level objectives stated in broad terms of desired results, but not how to accomplish the results IOT garner max innovation.
SOO does NOT become part of the contract (like SOW)
Contractor proposes How and the SOO replaces the SOW in the RFP.
Differentiate between IFB and RFP.
Invitation for Bid:“Sealed Bidding” price based selection, discussions not allowed.
Request for Proposal:“Best Value” based selection. LPTA or other than LPTA, discussions are allowed.
List 3 source selection goals.
- Max Competition
- Minimize Complexity of Solicitation, Evaluation, & Selection decisions
- Ensure Impartial Evaluation
- Selet Proposal with highest degree of Realism
Describe the “Best Value” continuum.
LP/TA Highest Tech
Rated Offeror
<—————————————>
Tradeoff Process