FAR part 16 Deck 2 (Types of Contracts)

Question 1

What is the scope of subpart 16.5?

Answer 1

Prescribes policies and procedures for making awards of indefinite-delivery contracts and establishes a preference for making multiple awards of indefinite-quantity contracts.

Question 2

Does subpart 16.5 limit the use of other competitive procedures?

Answer 2

No, it does not limit the use of other than competitive procedures authorized by part 6.

Question 3

What authority does the General Services Administration (GSA) have regarding contracts?

Answer 3

GSA has the authority to enter into schedule, multiple award, or task or delivery order contracts under any other provision of law.

Question 4

To which contracts does the statutory multiple award preference not apply?

Answer 4

It does not apply to architect-engineer contracts subject to the procedures in subpart 36.6.

Question 5

What is a delivery-order contract?

Answer 5

A contract for supplies that does not procure or specify a firm quantity of supplies and provides for the issuance of orders for delivery during the contract period.

Question 6

What is a task-order contract?

Answer 6

A contract for services that does not procure or specify a firm quantity of services and provides for the issuance of orders for the performance of tasks during the contract period.

Question 7

What are the three types of indefinite-delivery contracts?

Answer 7

Definite-quantity contracts, requirements contracts, and indefinite-quantity contracts.

Question 8

What are the advantages of indefinite-delivery contracts?

Answer 8

Permits minimum government stocks, direct shipment to users, flexibility in quantities and scheduling, and limiting the Government’s obligation.

Question 9

What is a definite-quantity contract?

Answer 9

A contract that provides for delivery of a definite quantity of specific supplies or services for a fixed period.

Question 10

When may a definite-quantity contract be used?

Answer 10

When a definite quantity of supplies or services will be required during the contract period and are regularly available.

Question 11

What is a requirements contract?

Answer 11

A contract that provides for filling all actual purchase requirements of designated Government activities during a specified contract period.

Question 12

What must a contracting officer state in a requirements contract?

Answer 12

A realistic estimated total quantity in the solicitation and resulting contract.

Question 13

What is the maximum amount for a requirements contract to a single source without a determination?

Answer 13

No requirements contract estimated to exceed $100 million may be awarded to a single source without a determination.

Question 14

What is an indefinite-quantity contract?

Answer 14

A contract that provides for an indefinite quantity of supplies or services during a fixed period, with the Government placing orders for individual requirements.

Question 15

What must an indefinite-quantity contract specify?

Answer 15

The period of the contract, total minimum and maximum quantity, statement of work, and procedures for issuing orders.

Question 16

What is the preference for awarding indefinite-quantity contracts?

Answer 16

Preference for making multiple awards of indefinite-quantity contracts under a single solicitation.

Question 17

What documentation is required for decisions on multiple awards?

Answer 17

The contracting officer must document the decision in the acquisition plan or contract file.

Question 18

What is the limit for a task or delivery order contract to a single source?

Answer 18

No task or delivery order contract estimated to exceed $100 million may be awarded to a single source without specific determinations.

Question 19

What must individual orders under indefinite-delivery contracts clearly describe?

Answer 19

All services to be performed or supplies to be delivered.

Question 20

True or False: The contracting officer must synopsize orders under indefinite-delivery contracts.

Answer 20

False.

Question 21

What must be justified when procuring items peculiar to one manufacturer?

Answer 21

The contracting officer must justify restricting consideration to an item peculiar to one manufacturer.

Question 22

What is a brand-name item?

Answer 22

An item peculiar to one manufacturer, even if available on more than one contract.

Question 23

Under what conditions can brand-name specifications be used?

Answer 23

When the brand-name, product, or feature is essential to the Government’s requirements and market research indicates no similar products meet the agency’s needs.

Question 24

What is required to justify the use of items peculiar to one manufacturer?

Answer 24

Requirements must be justified and approved using specific formats and requirements, modified to show the brand-name justification.

Question 25

Is a justification required for brand-name specifications?

Answer 25

Yes, unless previously approved or the base contract is a single-award contract under full and open competition.

Question 26

What must be done for orders over $30,000 regarding justifications?

Answer 26

The justification and supporting documentation must be posted on the agency website or provided with the solicitation to all contract awardees.

Question 27

When do the requirements for justification not apply?

Answer 27

When disclosure would compromise national security or create other security risks.

Question 28

What is modular contracting?

Answer 28

A method to reduce program risk when acquiring information technology and related services.

Question 29

What must orders placed under indefinite-delivery contracts contain?

Answer 29

Details like date of order, contract number, line item numbers, delivery schedule, and payment information.

Question 30

Are orders under multi-agency contracts exempt from acquisition plans?

Answer 30

No, they are not exempt and must comply with all FAR requirements.

Question 31

What are the requirements for orders funded by the American Recovery and Reinvestment Act of 2009?

Answer 31

Notices of proposed orders and award notices must follow specific posting procedures.

Question 32

What is the micro-purchase threshold?

Answer 32

The limit for which orders placed using the Governmentwide commercial purchase card are exempt from certain requirements.

Question 33

What is required for fair opportunity in multiple-award contracts?

Answer 33

Each awardee must be given a fair opportunity to be considered for orders exceeding the micro-purchase threshold.

Question 34

What are exceptions to the fair opportunity process?

Answer 34

Urgent needs, unique capabilities of one awardee, logical follow-on orders, minimum guarantees, specific statutes, and small business set-asides.

Question 35

What must a justification for an exception to fair opportunity include?

Answer 35

Identification of the agency, nature of action, description of needed supplies/services, identification of the exception, and a fair and reasonable cost determination.

Question 36

What is the approval requirement for proposed orders exceeding $750,000?

Answer 36

The justification must be approved by the advocate for competition or a specified official.

Question 37

True or False: Protests are authorized for any order under a task-order contract.

Answer 37

False, only under specific conditions.

Question 38

Fill in the blank: Orders exceeding the simplified acquisition threshold must be placed on a ______ basis.

Answer 38

competitive

Question 39

What information should be included in a notice for orders exceeding $6 million?

Answer 39

Clear agency requirements, reasonable response period, significant factors for evaluation, and post-award debriefing opportunities.

Question 40

What is the contracting officer's responsibility in developing order placement procedures?

Answer 40

To ensure fair opportunity is provided to each awardee and reflect the requirements and contracting environment.

Question 41

What serves as approval for knowledge and belief unless a higher approval level is established?

Answer 41

Knowledge and belief ## Footnote This indicates that approval can be based on the contracting officer's understanding unless specified otherwise.

Question 42

For a proposed order exceeding $750,000 but not exceeding $15 million, who must approve the justification?

Answer 42

Advocate for competition or designated official ## Footnote This authority is not delegable.

Question 43

What is the approval requirement for a proposed order exceeding $15 million but not exceeding $75 million?

Answer 43

Approval by the head of the procuring activity or designated official ## Footnote This includes specific qualifications for designees.

Question 44

What is required for a proposed order exceeding $75 million?

Answer 44

Approval by the senior procurement executive ## Footnote This authority is not delegable except in specific cases.

Question 45

Within how many days must a notice be published after placing an order exceeding the simplified acquisition threshold?

Answer 45

14 days ## Footnote This applies when fair opportunity is not provided.

Question 46

Where must the justification for an order be made publicly available?

Answer 46

GPE, agency website ## Footnote Justifications must remain posted for a minimum of 30 days.

Question 47

What happens if the justification contains proprietary data?

Answer 47

Contracting officer must remove proprietary data before public inspection ## Footnote Contractors may review justifications for proprietary data before posting.

Question 48

List two scenarios where posting requirements do not apply.

Answer 48

* Disclosure would compromise national security * Small business set-aside ## Footnote These exceptions prevent the disclosure of sensitive information.

Question 49

What must the contracting officer establish for pricing orders if the contract did not establish the price?

Answer 49

Prices for each order using policies and methods in subpart 15.4 ## Footnote This ensures compliance with procurement regulations.

Question 50

What is required for cost reimbursement orders?

Answer 50

See 16.301-3 ## Footnote This section outlines additional requirements specific to cost reimbursement.

Question 51

What is the notification requirement for unsuccessful awardees when the total price exceeds $6 million?

Answer 51

Notify unsuccessful awardees ## Footnote Procedures for notification and debriefing must be followed.

Question 52

What must the contracting officer document in the contract file?

Answer 52

Rationale for placement and price of each order ## Footnote This includes the basis for award and tradeoff rationale.

Question 53

Who must the head of the agency designate regarding task-order and delivery-order complaints?

Answer 53

Task-order and delivery-order ombudsman ## Footnote The ombudsman must be a senior official independent of the contracting officer.

Question 54

What is the normal maximum ordering period for task-order contracts for advisory and assistance services?

Answer 54

5 years ## Footnote This includes all options or modifications.

Question 55

Under what conditions can the 5-year limitation on task-order contracts be waived?

Answer 55

* Longer ordering period authorized by statute * Services are incidental to supplies or services ## Footnote These exceptions allow for flexibility in contract duration.

Question 56

What clause must be inserted in solicitations for indefinite-quantity contracts?

Answer 56

Clause at 52.216-22, Indefinite Quantity ## Footnote This clause governs the terms of indefinite-quantity contracts.

Question 57

What defines direct materials in the context of time-and-materials contracts?

Answer 57

Materials that enter directly into the end product or are consumed directly ## Footnote This definition is crucial for understanding cost allocations.

Question 58

What does a time-and-materials contract provide for?

Answer 58

* Direct labor hours at specified fixed hourly rates * Actual cost for materials ## Footnote This structure allows for flexibility in contracting when costs are uncertain.

Question 59

What must a contracting officer prepare to justify the use of a time-and-materials contract?

Answer 59

Determination and findings that no other contract type is suitable ## Footnote This ensures the appropriateness of the contract type.

Question 60

What limitations apply to time-and-materials contracts?

Answer 60

* Requires a ceiling price * Determination must be signed and approved ## Footnote These restrictions are designed to mitigate financial risks.

Question 61

What is required before increasing the ceiling price of a time-and-materials contract?

Answer 61

Analysis of pricing and relevant factors ## Footnote This ensures that the increase is in the best interest of the Government.

Question 62

What is a ceiling price in a time-and-materials contract?

Answer 62

The maximum price that the contractor can exceed at its own risk.

Question 63

What must a contracting officer do prior to increasing the ceiling price of a contract?

Answer 63

Conduct an analysis of pricing and other relevant factors, document the decision, and follow specific procedures for modifications.

Question 64

Which procedures must be followed when modifying the general scope of a contract?

Answer 64

* Follow procedures at 6.303 for contracts * Follow procedures at 8.405-6 for Federal Supply Schedules * Follow procedures at 16.505(b)(2) for multiple award task and delivery order contracts

Question 65

What provision must be included in solicitations for time-and-materials contracts expecting adequate price competition?

Answer 65

52.216-29, Time-and-Materials/Labor-Hour Proposal Requirements Other Than Commercial Acquisition With Adequate Price Competition.

Question 66

What provision is used in solicitations when price competition is not expected?

Answer 66

52.216-30, Time-and-Materials/Labor-Hour Proposal Requirements Other Than Commercial Acquisition Without Adequate Price Competition.

Question 67

What is a labor-hour contract?

Answer 67

A variation of the time-and-materials contract where materials are not supplied by the contractor.

Question 68

What is a letter contract?

Answer 68

A written preliminary contractual instrument authorizing the contractor to begin work immediately.

Question 69

Under what conditions can a letter contract be used?

Answer 69

* Government's interests demand immediate work * Negotiating a definitive contract is not possible in time

Question 70

What must a letter contract include if based on price competition?

Answer 70

An overall price ceiling.

Question 71

What is the target date for definitization of a letter contract?

Answer 71

Within 180 days after the date of the letter contract or before completion of 40 percent of the work.

Question 72

What is the maximum liability of the Government in a letter contract?

Answer 72

The estimated amount necessary to cover the contractor’s requirements, not exceeding 50% of the estimated cost of the definitive contract.

Question 73

What is a basic agreement?

Answer 73

A written instrument of understanding that contains clauses applying to future contracts between an agency and a contractor.

Question 74

When should a basic agreement be used?

Answer 74

When a substantial number of separate contracts may be awarded to a contractor and significant recurring negotiating problems have been experienced.

Question 75

What limitations exist for basic agreements?

Answer 75

* Cannot cite appropriations or obligate funds * Cannot imply agreement for future contracts * Cannot restrict competition

Question 76

What is a basic ordering agreement?

Answer 76

A written instrument of understanding containing terms and clauses for future contracts between an agency and a contractor.

Question 77

What is the purpose of a basic ordering agreement?

Answer 77

To expedite contracting for uncertain requirements for supplies or services.

Question 78

What must contracting officers do before issuing an order under a basic ordering agreement?

Answer 78

* Obtain competition * Ensure no prejudice to other offerors * Sign or obtain applicable justifications and approvals

Question 79

What is the requirement for pricing under a basic ordering agreement?

Answer 79

Prices must be established before making commitments or authorizing work unless a ceiling price is set.