FARS and DFARS Flashcards
When is an indefinite delivery contract appropriate?
Under certain conditions the Government may not be able to specify its required delivery and/or quantity or may not have sufficient funds for obligation of the entire needed quantity at that time.
What are the three types of indefinite delivery contracts?
Definite Quantity Contract
Requirements Contracts
Indefinite Delivery Indefinite Quantity (IDIQ Contract)
What is an option?
a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract.
When can an option be exercised?
only after determining that–
Funds are available
Option fulfills an exiting need
Option is most advantageous method of fulfilling need
Option was synopsized IAW FAR Part 5
Determination & Findings
What requirements must be fulfilled to exercise an option?
(Option Documentation)
The contracting officer shall justify in writing—
Quantities or terms of option
Period for exercising option
Any limitation on option price
Statement that option is in Government’s interest
Statement that likelihood option(s) will be exercised
What is a multiple year contract?
Not the same as Multi-year contracts
May be IDIQ contracts or contracts with annual options
Does NOT require Congressional Approval
Multiyear Contracts:
Acquires known requirements for up to 5 years
52.217-2, Cancellation Under Multi-year Contracts
Cancellation ceiling
Funds to cover cancellation or termination
Present value analysis of multi-year to annual procurements
President’s Budget—requires Congressional approval
Delivery order contract is:
A contract for supplies that does not procure or specify a firm quantity of supplies and that provides for the issuance of orders for the delivery of supplies during the period of the contract
Task order contract is:
A contract for services that does not procure or specify a firm quantity of services and that provides for the issuance of orders for the performance of tasks during the period of the contract
Definite Quantity Contract provides:
Provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order
Exact quantity is known
Exact times/places unknown
Funds obligated for total quantity at time of award
Each order awarded will specify quantity and location
Requirements Contracts provides:
Provides for filling all actual purchase requirements of designated Government activities for supplies or services during a specified contract period, with deliveries or performance to be scheduled by placing orders with the contractor
May be appropriate for acquiring any supplies or services when the Government anticipates recurring requirements but cannot predetermine the precise quantities of supplies or services that designated Government activities will need during a definite period
Indefinite Delivery Indefinite Quantity (IDIQ Contract) is:
An IDIQ contract provides for an indefinite quantity, within stated limits, of supplies or services within a fixed period
Government must order and contractor furnish a stated minimum. If ordered, the contractor must furnish any additional quantities, not to exceed the stated minimum
Reasonable ceiling amount should be developed
Multiple award preference
What is the policy for providing for full and open competition?
(Required by CICA)
Contracting Officers shall promote and provide for full and open competition in soliciting offers and awarding Government contracts
Competitive procedures available for fulfilling full and open competition are:
Sealed bids- Part 14
Competitive proposals- Part 15
Combination of competitive procedures- Part 13 &15
What is Other than Full and Open Competition?
Limited competition required to meet requirements
Seven statutory exceptions
Each contract awarded without providing for full and open competition shall contain a reference to the specific authority that it was awarded under
Contracting without providing for full and open competition may NOT be justified due to:
Lack of advance planning
Year end expenditures (funds availability)
What is the Competition Advocate (CA) and what are they responsible for?
Designated at the agency and each procuring activity
Promotes the acquisition of commercial items
Promotes full and open competition
Helps the agency to meet their small business goals
Recommends a system of personal and organizational accountability for competition
What are the dollar thresholds for J&A approval?
$650,000 or less – Contracting Officer
$650,000 - $12.5 Million – Competition Advocate for the procuring activity (not delegable)
$12.5 Million - $85.5 Million – Head of the Contracting Activity
What Act provides for full and open competition?
Competition in Contracting Act (CICA)
What are the three types of competition?
Full and open competition
Full and open after exclusion of sources
Other than full and open competition
What document is required for other than full and open competition?
Justification and Approval with: Sufficient justification for the authority cited Agency identification Description of the supply/service Statutory requirement Authority cited is appropriate Market research Any facts supporting sole-source
Who is responsible for assuring that full and open competition will occur?
Contracting Officers
What is the first order of preference or priority for the required sources of supply?
(i) Agency Inventories (Subpart 8.1) – Defense Reutilization and Marketing Services (DRMS) – www.drms.dla.mil
(ii) Excess from other agencies (Subpart 8.1) – GSAXcess – http://gsaxcess.gov
(iii) Federal Prison Industries, Inc. (Subpart 8.6) Also known as UNICOR – www.unicor.gov
(iv) Supplies which are on the Procurement List maintained by the Committee for Purchase from People Who are Blind or Severely Disabled (Subpart 8.7) Ability One – www.abilityone.gov
What is the first order of priority for required sources of services?
(i) Services which are on the Procurement List maintained by the Committee for Purchase From People Who are Blind or Severely Disabled (Subpart 8.7)
What is the Federal Supply Schedule Program?
Agencies are authorized to add “open market items” to a FSS Blanket Purchase Agreement (BPA) or individual task or delivery order (FAR 8.402(f))
Acquisition Regulations must be followed
Price is fair and reasonable
Items are labeled
All applicable clauses are incluced
What is a HUBZone Small Business Concern?
a small business concern that the SBA identifies as operating in a historically underutilized business zone