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FAC exam prep by FAR Parts 16-30 > FAR Part 17 Deck 1 > Flashcards

FAR Part 17 Deck 1 Flashcards

(79 cards)

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1
Q

What is the scope of Part 17 in the Federal Acquisition Regulation?

A

Policies and procedures for the acquisition of supplies and services through special contracting methods, including:
* Multi-year contracting
* Options
* Leader company contracting
* Reverse auctions

This part prescribes methods to obtain competitive pricing and manage contracts effectively.

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2
Q

What does Subpart 17.1 cover?

A

Multi-year Contracting

This subpart includes authority, applicability, definitions, general policies, and procedures related to multi-year contracts.

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3
Q

What is the authority for multi-year contracting according to 17.101?

A

41 U.S.C. 3903 and 10 U.S.C. 3501

These statutes provide the legal framework for implementing multi-year contracting policies.

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4
Q

What is the definition of a multi-year contract?

A

A contract for the purchase of supplies or services for more than 1, but not more than 5 program years.

It allows performance contingent upon the appropriation of funds for subsequent years.

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5
Q

What is meant by ‘Cancellation’ in the context of multi-year contracts?

A

Cancellation means the cancellation of the total requirements of all remaining program years due to nonavailability of funds or failure to notify the contractor of available funds.

This can occur within a contractually specified time frame.

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6
Q

What is the ‘Cancellation ceiling’?

A

The maximum cancellation charge that the contractor can receive in the event of cancellation.

It reflects the unrecovered costs that would have been amortized over the full term of the contract.

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7
Q

What are ‘Nonrecurring costs’?

A

Costs incurred on a one-time basis, such as:
* Plant or equipment relocation
* Special tooling
* Preproduction engineering
* Specialized workforce training

These costs do not recur with each production cycle.

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8
Q

What are ‘Recurring costs’?

A

Costs that vary with the quantity being produced, such as labor and materials.

These costs are ongoing and incurred regularly during the production process.

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9
Q

What is a key distinguishing difference between multi-year contracts and multiple year contracts?

A

Multi-year contracts buy more than 1 year’s requirement without needing to exercise an option for each subsequent year after the first.

This provides flexibility and security in long-term planning.

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10
Q

What are the objectives of using multi-year contracting?

A

To achieve:
* Lower costs
* Enhancement of standardization
* Reduction of administrative burden
* Continuity of production
* Stabilization of contractor workforces
* Avoiding annual quality control re-establishment
* Broadening the competitive base
* Providing incentives for contractor productivity improvement

These objectives aim to enhance efficiency and effectiveness in government procurement.

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11
Q

True or False: Multi-year contracts can only be used for the acquisition of supplies.

A

False

Multi-year contracts can be used for both supplies and services.

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12
Q

What should solicitations for multi-year contracts reflect?

A

All factors for evaluation, including:
* Requirements for the first program year
* Multi-year contract requirements
* Criteria for comparing submissions
* Separate cancellation ceilings and dates
* A statement regarding award conditions

These factors ensure clarity in contract expectations and evaluations.

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13
Q

What is the role of the contracting officer regarding cancellation ceilings?

A

The contracting officer must establish cancellation ceilings for each program year subject to cancellation and may revise them as necessary.

This includes adjusting ceilings based on evaluations and negotiations during the contract process.

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14
Q

Fill in the blank: Multi-year contracting is a special contracting method to acquire known requirements in quantities and total cost not over planned requirements for up to ______ years.

A

5

This is unless otherwise authorized by statute.

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15
Q

What defines the ‘Termination for convenience’ procedure in multi-year contracts?

A

It can be effected at any time during the life of the contract and can be for total or partial quantities.

This differs from cancellation, which must be for all subsequent fiscal years’ quantities.

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16
Q

What is the purpose of the Economy Act mentioned in Subpart 17.502-2?

A

To provide a framework for interagency acquisitions.

This Act governs the acquisition of supplies and services from other federal agencies.

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17
Q

What are the special procedures applicable to DoD, NASA, and the Coast Guard as per 17.106-3?

A

To broaden the defense industrial base by:
* Seeking, retaining, and promoting subcontractors, suppliers, and vendors
* Ensuring timely delivery of payments and benefits to participating companies

These procedures aim to enhance participation and efficiency in defense contracting.

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18
Q

What must be delivered to a subcontractor, supplier, or vendor under a multi-year contract?

A

Payment or benefit shall be delivered in the most expeditious manner practicable

This ensures timely compensation for services provided under the contract.

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19
Q

What is the protection of existing authority in multi-year contracting?

A

Multi-year contracting shall not preclude or curtail the ability to terminate a deficient prime contract

This allows agencies to maintain control over contract performance.

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20
Q

What happens if funds are not available for a multi-year contract?

A

The contract shall be canceled or terminated

This ensures that contracts do not continue without funding.

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21
Q

What types of contracts are awarded under the multi-year procedure?

A
  • Firm-fixed-price
  • Fixed-price with economic price adjustment
  • Fixed-price incentive

These types provide different levels of risk and cost management.

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22
Q

What is an exception to normal contract financing arrangements in multi-year contracts?

A

Inclusion of recurring costs in cancellation ceilings requires approval by the agency head

This is to manage financial commitments effectively.

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23
Q

Why obtain both annual and multi-year offers?

A

It provides reduced lead time for annual awards and a basis for savings computation

However, it may increase administrative costs.

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24
Q

What is level unit pricing in multi-year contracts?

A

Amortization of certain costs over the entire contract quantity resulting in identical unit prices

This can help in budget predictability.

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25
What clause must be inserted in solicitations and contracts for multi-year contracts?
The clause at 52.217-2, Cancellation Under Multi-year Contracts ## Footnote This clause is essential for contract management.
26
What is required for a multi-year contract with a cancellation ceiling exceeding $15 million?
Written notification to the committees on appropriations of the House and Senate ## Footnote This is necessary for transparency and oversight.
27
What must the contract specify regarding options?
Limits on the purchase of additional supplies or services and the duration of the contract ## Footnote This helps to control scope and budget.
28
What should solicitations include when options are anticipated?
Appropriate option provisions and clauses ## Footnote This aids in ensuring that all parties are aware of potential future needs.
29
What is the maximum total period for basic and option periods in service contracts?
Not to exceed 5 years ## Footnote This limitation helps to ensure competitive practices.
30
What must be justified in writing by the contracting officer?
Quantities or term under option, notification period, and any limitation on option price ## Footnote This documentation is crucial for accountability.
31
What must be determined before exercising an option?
* Funds are available * Requirement fulfills existing Government need * Exercise is the most advantageous method ## Footnote These criteria ensure responsible use of taxpayer funds.
32
What does the contracting officer need to consider about the contractor before exercising an option?
Contractor's past performance evaluations and whether their performance has been acceptable ## Footnote This evaluation helps mitigate risks in contract execution.
33
What should solicitations state about options at unit prices?
That offerors may offer varying prices for options based on quantities and dates ## Footnote This allows flexibility in pricing based on market conditions.
34
What is the role of the contracting officer in evaluating option quantities?
Evaluate offers for any option quantities if there is a likelihood that the Government will exercise them ## Footnote This helps in making informed decisions about future needs.
35
What is the purpose of including options in service contracts?
To ensure continuity of operations and manage potential costs of disrupted support ## Footnote This is especially important in critical service areas.
36
What is required if options are included in a contract?
The contract shall specify the period within which the option may be exercised ## Footnote This provides clarity on the timeline for decision-making.
37
What is a price subject to economic price adjustment?
A specific price that is subject to an economic price adjustment provision ## Footnote This refers to contract prices that may change based on economic factors.
38
What must a contract modification cite when notifying a contractor of the exercise of an option?
The option clause as authority ## Footnote This ensures that the contractor is aware of the legal basis for the option exercise.
39
What provision should be inserted in solicitations with an option clause according to 17.208(a)?
A provision substantially the same as 52.217-3, Evaluation Exclusive of Options ## Footnote This applies when the solicitation does not include specific provisions prescribed in paragraphs (b) or (c).
40
Under what conditions should 52.217-4 be included in solicitations?
When the contracting officer determines a reasonable likelihood that the option will be exercised at the time of contract award ## Footnote This clause evaluates options exercised at the time of award.
41
What is leader company contracting?
An extraordinary acquisition technique limited to special circumstances where a developer assists follower companies ## Footnote The technique aims to enhance production capabilities and reduce delivery times.
42
What are the objectives of leader company contracting? List at least three.
* Reduce delivery time * Achieve geographic dispersion of suppliers * Maximize the use of scarce tooling or special equipment ## Footnote These objectives aim to improve efficiency in the production and supply chain.
43
What are the limitations of leader company contracting?
* Leader company must have necessary production know-how * No other source can meet requirements without assistance * Assistance must be essential for production ## Footnote These limitations ensure that leader company contracting is used appropriately.
44
What is required for each Economy Act order according to 17.502-2(c)?
A determination and findings (D&F) statement ## Footnote The D&F must support the use of interagency acquisitions for obtaining supplies or services.
45
Fill in the blank: The Economy Act authorizes agencies to enter into agreements to obtain supplies or services from another _______.
agency ## Footnote This act facilitates interagency cooperation in procurement.
46
What should an interagency acquisition not be used to do?
Circumvent conditions and limitations imposed on the use of funds ## Footnote This ensures compliance with funding regulations.
47
What is a requirement for the requesting agency when placing an order for supplies or services?
Follow the procedures in 17.502-1 and, if under the Economy Act, also 17.502-2 ## Footnote This includes obtaining necessary agreements and approvals.
48
What must be included in an interagency acquisition order?
* Description of supplies or services * Delivery requirements * Funds citation * Payment provision * Acquisition authority ## Footnote These elements ensure clarity and compliance in the order.
49
What are the requirements for a contractual action?
Adequate statutory authority and compliance with competition requirements of part 6 ## Footnote If the servicing agency is not subject to the Federal Acquisition Regulation, contracts must protect the Government from inappropriate charges.
50
Under what conditions can nonsponsoring Federal agencies use an FFRDC?
If the terms of the FFRDC's sponsoring agreement permit work from other than a sponsoring agency ## Footnote Work must also be accepted by the sponsor and fall within the FFRDC's purpose or competency.
51
What must the senior procurement executive submit annually?
An annual report on interagency acquisitions to the Director of OMB ## Footnote This is directed by OMB.
52
Define 'management and operating contract'.
An agreement for the operation, maintenance, or support of a Government-owned or -controlled establishment ## Footnote It is devoted to one or more major programs of the contracting Federal agency.
53
Who can authorize contracting officers to enter into management and operating contracts?
Heads of agencies with requisite statutory authority ## Footnote This authority cannot be delegated.
54
What criteria must be met to identify management and operating contracts?
Utilization of Government-owned facilities and a special relationship between Government and contractor ## Footnote Other criteria include the nature of work and its relation to agency's mission.
55
What limitations apply to management and operating contracts?
They cannot be authorized for functions like direction of Government personnel or determination of basic Government policies ## Footnote They are also not for day-to-day staff functions.
56
What is required for the award and renewal of management and operating contracts?
Contracting officers must ensure sufficient technical and managerial capacity of prospective contractors ## Footnote They should also review contracts at least once every 5 years.
57
What is the scope of subpart 17.7?
Policies and procedures for acquisitions by nondefense agencies on behalf of the Department of Defense ## Footnote It complements the policies set forth in subpart 17.5.
58
What defines a nondefense agency?
Any department or agency of the Federal Government other than the Department of Defense ## Footnote This includes intelligence community elements as specified in 50 U.S.C. 3003(4).
59
What must a nondefense agency certify for a DoD acquisition?
That it will comply with applicable procurement requirements for that fiscal year ## Footnote This includes laws and regulations specific to DoD procurements.
60
What is the purpose of reverse auctions?
To obtain pricing for an acquisition where a competitive marketplace exists ## Footnote Multiple offerors should be able to satisfy the agency's requirement.
61
What are the requirements for using reverse auction service providers?
They must allow free registration for potential offerors and not imply they can obtain Government contracts ## Footnote Contracting officers must detail the provider's fee structure in contracts.
62
What types of data are involved in reverse auctions?
Government data and Government-related data ## Footnote Government data is created or obtained by the Government; Government-related data is created by contractors.
63
What must contracting officers ensure when acquiring reverse auction services?
That the contract includes descriptions of Government data and specific data instructions ## Footnote This includes transition of data in non-proprietary formats.
64
What must contracting officers ensure about reverse auction service providers?
Contracting officers shall only use providers that do not imply they can obtain a Government contract for participants ## Footnote This ensures that the reverse auction process remains fair and transparent.
65
What registration opportunity must reverse auction service providers offer to entities?
Providers must allow entities to register, at no cost, as potential offerors for reverse auctions ## Footnote This encourages participation from a wider range of potential contractors.
66
What type of agreement must entities have the opportunity to execute during registration?
A proprietary data protection agreement ## Footnote This agreement must not affect the terms of a Government solicitation or contract.
67
What information must be protected by reverse auction service providers?
All contractor bid or proposal information and source selection information ## Footnote This includes task order or delivery order information and any information marked as restricted by an offeror.
68
True or False: Reverse auction service providers can participate as offerors in auctions they host.
False ## Footnote This prohibition includes relationships that create conflicts of interest.
69
What must contracting officers do at the close of each auction?
Provide the Government with the successful offer and all information received from offerors ## Footnote This includes the identification of the offeror’s price and any provider fees.
70
Who is authorized to exclude an offeror from participating in an auction?
Only a contracting officer ## Footnote This ensures that the decision is made by an authorized individual.
71
What types of contracts are not applicable for reverse auction processes?
Design-build construction contracts, architect-engineer services, sealed bidding procedures, and acquisition of personal protective equipment ## Footnote Specific laws govern these exclusions, such as the NDAA for Fiscal Years 2017, 2018, and 2019.
72
What must contracting officers conduct when considering a reverse auction service provider?
Market research for available sources of reverse auction services ## Footnote This may include existing agency contracts or agreements.
73
Fill in the blank: Contracting officers must evaluate the _______ for each reverse auction service provider.
[fee structure] ## Footnote This evaluation is critical for determining cost-effectiveness.
74
What must contracting officers document in the contract file regarding reverse auctions?
That the use of a reverse auction service provider is cost effective ## Footnote Documentation is important for accountability and transparency.
75
What should contracting officers allow offerors to do during a reverse auction?
Continually revise their prices downward until the close of the auction ## Footnote This encourages competitive pricing.
76
What happens if only one offeror participates in an auction?
The contracting officer may cancel the auction or accept the offer if determined fair and reasonable ## Footnote This ensures that the auction process is still valid.
77
What provision must contracting officers insert in solicitations when using a reverse auction?
The provision at 52.217-10, Reverse Auction ## Footnote This formalizes the use of reverse auctions in contract awards.
78
What clause must be inserted in contracts for multiple-award contracts when using reverse auctions?
The clause at 52.217-11, Reverse Auction—Orders ## Footnote This is necessary when reverse auctions may be used to place orders.
79
What clause must be included in all contracts for purchasing reverse auction services?
The clause at 52.217-12, Reverse Auction Services ## Footnote This clause outlines the terms for using reverse auction services.

FAC exam prep by FAR Parts 16-30 (16 decks)

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