Contract Principles Flashcards
(30 cards)
Which authority is legally binding in Government contracting and recognized by the courts?
a. Apparent Authority
b. Actual Authority
c. Guaranteed Authority
b. Actual Authority
In DoD contracting, who has the authority to enter into a legally binding contract?
a. Contracting Officer
b. Program Manager
c. Financial Manager
d. Engineer
a. Contracting Officer
Each authority is NOT delegable unless specifically stated otherwise.
True
False
False
What is a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them.
Contract
Which of the following are essential elements of a contract (select all that apply)?
a. Capacity
b. Consideration
c. Common Ground
d. Mutual Assent
e. Lawful Purpose
a. Capacity
b. Consideration
d. Mutual Assent
e. Lawful Purpose
A contract is defined as a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them.
True
False
True
Capacity is when each party either makes a promise or begins to render performance.
True
False
False
Market research can be ______________.
a. Strategic
b. Tactical
c. Both A and B
c. Both A and B
The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience.
True
False
True
Generally, unless an exception applies or is otherwise expressly authorized by statute, Contracting Officers shall promote and provide for full and open competition in soliciting offers and awarding Government contracts.
True
False
True
The competitive procedures available for use in fulfilling the requirement for full and open competition are - (select all that apply).
a. Sealed bids
b. Competitive proposals
c. Set-aside
d. Combination of competitive procedures
e. Other competitive procedures
a. Sealed bids
b. Competitive proposals
d. Combination of competitive procedures
e. Other competitive procedures
Agencies may exclude a particular source from a contract action in order to establish or maintain an alternative source or sources. These include - (select all that apply).
a. Establishing or maintaining alternate sources.
b. Set asides for small business concerns.
c. Section 8(a) competition.
d. Set asides for Hubzone small business concerns.
e. Set-asides for economically disadvantaged women-owned small business (EDWOSB) concerns or women-owned small business (WOSB) concerns eligible under the WOSB Program.
f. Set-asides for local firms during a major disaster or emergency.
g. None of the above.
a. Establishing or maintaining alternate sources.
b. Set asides for small business concerns.
c. Section 8(a) competition.
d. Set asides for Hubzone small business concerns.
e. Set-asides for economically disadvantaged women-owned small business (EDWOSB) concerns or women-owned small business (WOSB) concerns eligible under the WOSB Program.
f. Set-asides for local firms during a major disaster or emergency.
The following statutory authorities (including applications and limitations) permit contracting without providing for full and open competition: (select 4 that apply).
a. Only one responsible source and no other supplies or services will satisfy agency requirements.
b. Unusual and compelling urgency.
c. Lack of advance planning on the part of the requirements activity.
d. National security.
e. Public Interest.
f. Executive Request from Authoritative Source
a. Only one responsible source and no other supplies or services will satisfy agency requirements.
b. Unusual and compelling urgency.
d. National security.
e. Public Interest.
Contracting officers shall purchase supplies and services from responsible sources at fair and reasonable prices.
True
False
True
Conflict of Interest
Company A agrees to provide systems engineering and technical direction for the Navy on the powerplant for a group of submarines (i.e., turbines, drive shafts, propellers, etc.). Should Company A be allowed to supply any powerplant components?
No. Company A should not be allowed to supply any powerplant components.
Conflict of Interest
Company A agrees to provide systems engineering and technical direction for the Navy on the powerplant for a group of submarines (i.e., turbines, drive shafts, propellers, etc.). Would Company A be allowed to supply components of the submarine unrelated to the powerplant (e.g., fire control, navigation, etc.)?
Yes. Company A can supply components of the submarine unrelated to the powerplant. In this example, the system is the powerplant, not the submarine.
Acceptance constitutes acknowledgment that the supplies or services conform with applicable contract quality and quantity requirements, except as subject to other terms and conditions of the contract.
True
False
True
Supplies accepted at a place other than _____________ shall not be re-inspected at destination for acceptance purposes, but should be examined at destination for quantity, damage in transit, and possible substitution or fraud.
Destination
Origin
Destination
Title to supplies shall pass to the Government upon formal acceptance, regardless of when or where the Government takes physical possession, unless the contract specifically provides for earlier passage of title.
True
False
True
Except for defaults of subcontractors at any tier, the Contractor shall not be in default because of any failure to perform the contract under its terms if the failure arises from causes beyond the control and without the fault or negligence of the Contractor.
True
False
True
Examples of excusable delays are - (select all that apply).
a. Acts of the Government in either it’s sovereign or contractual capacity
b. Fires
c. Bad weather
d. Quarantine restrictions
e. Freight embargoes
f. Contractor human resource constraints
a. Acts of the Government in either it’s sovereign or contractual capacity
b. Fires
d. Quarantine restrictions
e. Freight embargoes
There are two types of warranties: Implied Warranties and Express Warranties.
True
False
True
When drafting solicitations and contracts, contracting officers must identify for each line item number, subline item number, or exhibit line item number the applicable Prompt Payment clauses that apply to each item when the solicitation or contract contains items that will be subject to different payment terms.
True
False
True
Only contracting officers acting within the scope of their authority are empowered to execute contract modifications on behalf of the Government. Government personnel shall not - (select all that apply).
a. Execute contract modifications.
b. Act in such a manner as to cause the contractor to believe that they have authority to bind the Government.
c. Direct or encourage the contractor to perform work that should be the subject of a contract modification.
d. None of the above.
a. Execute contract modifications.
b. Act in such a manner as to cause the contractor to believe that they have authority to bind the Government.
c. Direct or encourage the contractor to perform work that should be the subject of a contract modification.
