FARS and DFARS Flashcards

1
Q

When is an indefinite delivery contract appropriate?

A

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.

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2
Q

What are the three types of indefinite delivery contracts?

A

Definite Quantity Contract

Requirements Contracts

Indefinite Delivery Indefinite Quantity (IDIQ Contract)

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3
Q

What is an option?

A

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.

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4
Q

When can an option be exercised?

A

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

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5
Q

What requirements must be fulfilled to exercise an option?

A

(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

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6
Q

What is a multiple year contract?

A

Not the same as Multi-year contracts

May be IDIQ contracts or contracts with annual options

Does NOT require Congressional Approval

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7
Q

Multiyear Contracts:

A

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

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8
Q

Delivery order contract is:

A

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

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9
Q

Task order contract is:

A

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

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10
Q

Definite Quantity Contract provides:

A

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

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11
Q

Requirements Contracts provides:

A

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

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12
Q

Indefinite Delivery Indefinite Quantity (IDIQ Contract) is:

A

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

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13
Q

What is the policy for providing for full and open competition?

A

(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

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14
Q

What is Other than Full and Open Competition?

A

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)

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15
Q

What is the Competition Advocate (CA) and what are they responsible for?

A

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

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16
Q

What are the dollar thresholds for J&A approval?

A

$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

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17
Q

What Act provides for full and open competition?

A

Competition in Contracting Act (CICA)

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18
Q

What are the three types of competition?

A

Full and open competition
Full and open after exclusion of sources
Other than full and open competition

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19
Q

What document is required for other than full and open competition?

A
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
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20
Q

Who is responsible for assuring that full and open competition will occur?

A

Contracting Officers

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21
Q

What is the first order of preference or priority for the required sources of supply?

A

(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

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22
Q

What is the first order of priority for required sources of services?

A

(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)

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23
Q

What is the Federal Supply Schedule Program?

A

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

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24
Q

What is a HUBZone Small Business Concern?

A

a small business concern that the SBA identifies as operating in a historically underutilized business zone

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25
What is the Government’s policy concerning the use of Small Business Concerns?
Policy – FAR 19.201 “….provide maximum practicable opportunities in [Government] acquisitions to small business, veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.”
26
What are the advantages of the 8(a) Program?
the opportunity to receive “sole source” contracts (not exceeding $3.5 million for goods and services, and $5.5 million for manufacturing from Government agencies and the opportunity to bid for 8(a) set-aside contracts
27
What is an Acquisition Plan?
the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost. It includes developing the overall strategy for managing the acquisition.
28
Where are Acquisition plans found in the FAR?
Part 7
29
What is market research? When should it begin?
A process used to collect information about the marketplace in order to meet the agency’s needs Continuous process Requires documentation of data collected Market research should be continuous
30
What are the methods of conducting market research?
Team Approach to Market Research Provides collaborative effort to problem solving Establish IPT Teams early Members may include Finance Contract specialists Program managers Industry reps Customer Potential vendors Logistics
31
How much market research should we do?
``` The extent of market research will vary, depending upon factors such as: Urgency Estimated dollar value Complexity Past experience ``` Conduct market research appropriate to the circumstances
32
What are the two types of market research and how do they differ?
Strategic market research serves as surveillance of the marketplace Tactical market research requires investigation into a specific need or requirement
33
What are the potential sources for conducting market research?
``` Central Contractor Registration (CCR) System for Award Management-www.sam.gov FedBizOps Catalogs Trade shows Historical acquisition data GSA Advantage – Federal Supply Schedules ```
34
What does an Acquisition Plan contain?
``` Milestones at which decisions must be made Acquisition background and objectives Statement of need Applicable conditions such as compatibility with other systems Cost, schedule and capability or performance constraints Cost Life-cycle cost Tradeoffs Risks Acquisition Streamlining Sources and Competition Source selection procedures ```
35
What is the “rulemaking process”?
The process of creating and issuing federal regulations
36
What is the goal of the FAR System?
is to deliver on a timely basis the best value product or service to the customer, while maintaining the public’s trust and fulfilling public policy objectives
37
How many “parts” does the FAR contain?
53
38
How many “subparts/subchapters” does the FAR contain?
8
39
What is the FAR Matrix?
For each provision or clause, the matrix provides information on: Whether incorporation by reference is or is not authorized Where it is located in the Uniform Contract Format (UCF) Its number Citation of the FAR that it prescribes Its title or full text
40
The FAR Matrix is located in what FAR Part?
52
41
What is a supplement to the FAR?
DFARS adding information that is not already found in the FAR
42
What is an implement to the FAR?
DFARS adds to information that exists in the FAR already
43
What is a class deviation?
Affect more than one contract action A FAR revision should be requested if an agency knows it will require a class deviation on a permanent basis Civilian agencies, other than NASA, must furnish copy of approved deviation to the FAR Secretariat
44
Want is an individual deviation?
Affect only one contract action May be authorized by the Agency Head unless FAR 1.405(e) is applicable Justification and agency approval must be documented in the contract file
45
Where are the required sources of supply and services located in the FAR?
FAR Part 8
46
What takes precedence for supplies on the required sources list?
Agency inventories
47
What takes precedence for services?
Services on the Procurement List maintained by NIB/NISH/Ability One
48
What are the simplified acquisition methods?
``` GPC Purchase Order SF 44 Imprest Fund BPA Third Party Draft ```
49
When is a Blanket Purchase Agreement (BPA) appropriate?
- repetitive needs/requirements (ex: gravel, cell phones) - agreement is in place - more economical to use BPA (saves time, competitive costs) when filling anticipated repetitive needs for supplies or services by establishing "charge accounts'' with qualified sources of supply. BPA has pricing, Basic Ordering Agreement (BOA) does not!
50
What are the three types of solicitations?
Request for Quotation – Simplified Acquisition Procedures - FAR Part 13 Invitation for Bid – Sealed Bidding – FAR Part 14 Request for Proposal – Negotiation – FAR 15
51
What are the three types of competition?
-Full and open competition Everyone is allowed to bid -Full and open after exclusion Ex: Reserved for small business -Other than full and open competition Sole source FMS
52
What are the two basic types of contracts?
Firm Fixed Price - Technical requirements and cost are not uncertain - Work can be clearly defined Cost reimbursable - Costs cannot be estimated with any certainty - Work may not be clearly defined - Amount of tasks may not be known
53
Which type of contract requires a vendor to give their “best effort”?
Cost Reimbursement
54
SF 44 Purchase Order Invoice-Voucher is:
Multi-purpose pocket size purchase order form Primarily for on-the-spot, over-the-counter purchases of supplies and non-personal services while away from the purchasing office or at isolated activities
55
Base contract funded is:
5 years for supplies | 5 years for services
56
Firm Fixed Price contract type is:
Technical requirements and cost are not uncertain Work can be clearly defined Contractor is required to deliver the product or perform the service at agree-to price Contract represents full payment for the work – Contractor exceeds at own risk Loss of profit
57
Cost reimbursable contract type is:
Costs cannot be estimated with any certainty Work may not be clearly defined Amount of tasks may not be known Contractor is required to deliver “best effort” Reasonable, allowable and allocable costs will be reimbursed Contract amount represents an estimate of total cost Cannot be exceeded without KO’s approval
58
Which contract types places risk on gov't?
Cost reimbursable
59
What contract types places risk on contractor?
Firm Fixed Price
60
Commercial Items are:
Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and— Has been sold, leased, or licensed to the general public; or, Has been offered for sale, lease or license to the general public Additional specs for commercial items in FAR Part 10
61
Determination and Findings (D&F) is:
used to exercise an option Rationale for business decisions made concerning the acquisition – two parts: Facts that lead to the decision, or findings Actual decision, or determination
62
Justification and Approval (J&A) is:
necessary when going to sole source Similar to the D&F (2 parts) List of facts or justification Decision, or approval
63
Purchase Request or Procurement Request (PRs) is:
Customer created – forwarded to contracting
64
Purchase Request or Procurment Requests (PRs) should contain:
``` A description of what is to be acquired Fund citation Required delivery dates Delivery or performance location Requiring activity point of contact ```
65
5 Types of Requirements Documents are:
(1) Commercial Item Descriptions (2) Performance Work Statement (3) Specifications - Design specifications - Functional specifications - Performance specification (4) Government standard (5) Industry Standard
66
Performance Work Statement/Statement of Objectives are:
Documents that describe a performance outcome rather than how to achieve that outcome For example: Maintain grass between 2” and 4” Capable of transporting of 1,000 pounds SOO often used in research and development in which the desired outcome is stated in broad terms
67
What are three types of specs?
Design specifications Functional specifications Performance specification
68
Design specs identify:
requirements by specifying exact dimensions, materials, composition, physical and chemical requirements and other details of the product or service
69
Functional specs states:
States only the end result to be achieved (Environmental control method that will maintain temp between 70 and 78 degrees)
70
Performance specification expresses:
requirements in the form of output, function or operation of a commodity Early example of a performance specification was the “heavier-than-flying machine” for the Army
71
Government Standard is a standard that provides:
established measures of quality, or requirements for materials, engineering practices, performance, design or operation
72
A United States Defense Standard, often called a military standard, "MIL-STD", "MIL-SPEC", or (informally) "MilSpecs", is used to:
help achieve standardization objectives by the U.S. Department of Defense
73
Industry Standards are established by:
a private sector to promote commonality and establishes common requirements that products may adhere to For example, Underwriters Laboratory (UL) is an example of a commonly used, voluntary industry standard for electrical equipment and wiring
74
Performance based contracting strategies have become the:
preferred contracting method and require structuring all aspects of an acquisition around the purpose of the work to be performed
75
Business Advisor Responsibilities are:
``` Implement applicable government policy such as: - Promote full and open competition - Limit restrictive language Encourage commercial item use Document evolution of package Advise requiring activity on: - Reasonable delivery terms and acceptance criteria - Contract admin - Packaging and marking requirements ```
76
Service Contract Act of 1965 applies if:
Contract exceeds $2,500 Service contract Performance by other than executive, admin or professional employees Performed in the United States
77
Service micro purchase limit is:
$2500
78
Wage determination is:
Minimum wages or fringe benefits applicable to the employment in a given locality Obtain a wage determination – Dept of Labor (DOL) Government’s prime contractor must report to the Contracting Officer when wages will be paid or fringe benefits will be furnished that are covered by a CBA during performance of any contract
79
Collective Bargaining Agreement (CBA) is:
An agreement between management and the employees that are represented by a union
80
Buy American Act is:
- Created during great depression - Buy U.S. products over foreign manufacture - Supports U.S. socio-economic goals Exceptions to the Act: Are for use outside the US Unreasonable cost Domestic preference inconsistent with public interest Are not mined, produced or manufactured in the US in sufficient quantities Purchased specifically for commissary resale
81
FAR PART 1 is:
Federal Acquisition Regulation System
82
FAR PART 2 is:
Definitions of Words and Terms
83
FAR PART 3 is:
Improper Business Practices and Personal Conflicts of Interest
84
FAR PART 4 is:
Administrative Matters
85
FAR PART 5 is:
Publicizing Contract Actions
86
FAR PART 6 is:
Competition Requirements
87
FAR PART 7 is:
Acquisition Planning
88
FAR PART 8 is:
Required Sources of Supplies abs Services
89
FAR PART 9 is:
Contractors Qualifications
90
FAR PART 10 is:
Market Research
91
FAR PART 11 is:
Describing Agency Needs
92
FAR PART 12 is:
Acquisition of Commercial Items
93
FAR PART 13 is:
Simplified Acquisition Procedures
94
FAR PART 14 is:
Sealed Bidding
95
FAR PART 15 is:
Contracting by Negotiation
96
FAR PART 16 is:
Types of Contracts
97
FAR PART 17 is:
Special Contracting Methods
98
FAR PART 18 is:
Emergency Acquisitions
99
FAR PART 19 is:
Small Business Programs
100
Why do we publicize?
Increase competition Broaden industry participation in meeting Government requirements Assist small business concerns, veteran owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns and women-owned small business in obtaining contracts and subcontracts
101
What are the exceptions to publicizing?
FAR 5.202 Synopsis cannot be worded to preclude disclosure of an agency’s needs and disclosure would compromise national security Unusual and compelling urgency Foreign Military Sales (if source directed) Required by statute
102
What are the response times for other that commercial items and r&d?
30 day response time except for commercial items 45 day response time for R&D actions that exceed the SAT
103
Why do we publicize?
- Increase competition - Broaden industry participation in meeting Government requirements; and - Assist small business concerns, veteran owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns and women-owned small business in obtaining contracts and subcontracts
104
What Exactly Is a Contract Action?
An action resulting in a contract, as defined in subpart 2.1, including actions for additional supplies or services outside the existing contract scope, but not including actions that are within the scope and under the terms of the existing contract, such as contract modifications issued pursuant to the Changes clause, or funding and other administrative changes
105
Governmentwide Point of Entry (GPE) is:
Single point where Government business opportunities greater than $25,000, including synopses of proposed contract actions, solicitations, and associated information, can be accessed electronically by the public
106
Methods of Disseminating Information are:
Required by Small Business Act and Office of Federal Procurement Policy (OFPP) Contract actions exceeding $25,000 Synopsis in the GPE Posting in a public display (Between $15,000 and $25,000)
107
Publicizing Contract Actions Published time is:
At least 15 days prior to solicitation or proposed contract action Shorter period as established by Contracting Officer for commercial items
108
What are the two major types of contracts?
Fixed Price contracts | Cost Reimbursement contracts
109
Which type of contract arrangement puts the risk on the contractor?
Firm-fixed priced contracts
110
Which type of contract arrangement puts the risk on the government?
Cost reimbursement
111
What type of contract must be awarded for a commercial item?
Firm-fixed priced contract
112
What is needed to award a time-and-materials contract?
Determination & Finding (D&F)
113
How long do you have to definitize a letter contract?
180 days or 40% of work completion
114
3 factors in Selecting Contract Type are:
Urgency Period of performance Contractor’s technical capability and financial responsibility
115
Urgency is:
If urgency is a primary factor, the Government may choose to assume a greater proportion of risk or it may offer incentives to ensure timely contract performance
116
Period of performance is:
Long running contracts may require Economic Price Adjustment terms
117
Firm-Fixed Price Contracts provides:
Provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract Places all the risk on the contractor Suitable for commercial items and actions where the work is definable and therefore represents lower risk to the contractor
118
Firm-Fixed Price Contracts are:
Suitable for commercial items and actions where the work is definable and therefore represents lower risk to the contractor
119
Time and Materials Contracts (T&M) provide for:
provide for acquiring supplies or services on the basis of – Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and Actual cost for materials Only used when it is not possible, at the time of award, to accurately estimate the extent or duration of the work or to anticipate future costs with a degree of confidence
120
What is a Synopsis?
A synopsis is a “snapshot” of the requirement that the government is trying to fulfill.
121
Where do we post a synopsis from or to?
Single point where Government business opportunities greater than $25,000, including synopses of proposed contract actions, solicitations, and associated information, can be accessed electronically by the public GPE is located at http://www.fbo.gov
122
Methods of disseminating information public display advertisement thresholds are:
Contract actions exceeding $25,000 Posting in a public display (Between $15,000 and $25,000)
123
Data included in a synopsis is:
Description of action Type of contract contemplated Quantity Place of performance Competition requirement
124
Acquisition planning begins:
as soon as the agency need is identified
125
What are the benefits of market research?
Will disclose any law or regulation that applies Customary best commercial practices If the supply or service is readily available If research and development is required If the DoD is currently buying this supply/service Risk If supply/service is on the required sources list
126
Government preferred approach to acquisition and preference in procuring supplies shown on a continuum are:
Commercial Off-the-Shelf Minor modifications Non-developmental items Government unique
127
Modified Commercial Item is:
First verify commercial item availability The product is considered commercial if it retains 50% of its original functionality Example: Gulfstream jets DoD modified the jets to include secure voice and data communication equipment as well as DoD unique avionics and instrumentation systems Retained its predominate commercial functionality
128
Non-Developmental Items (NDI) are:
An item that was developed expressly for government use, as long as the contractor paid for all of the developmental costs, and the item is sold in substantial quantities, on a competitive basis, to multiple government offices (State and Federal) Example: Third-generation Mid-wavelength infrared (MWIR) imaging system
129
Government Unique Requirements begin with:
Begin with Research and Development Very costly and long-lead time ``` Examples: Armaments Nuclear submarines Fighter aircraft Missiles Helicopters ```
130
Multi-agency contracts (MACs) are:
task or delivery order contracts established by one agency for use by government agencies to obtain a variety of supplies and services.
131
What is the appropriate contract type for sealed bidding?
Fixed price or fixed price with an economic price adjustment
132
The Economy Act applies to:
orders placed under Multi-agency contract (MACs), including MACs for information technology that are established pursuant to the Clinger Cohen Act The Economy Act does not apply to orders placed against Government –wide acquisition contracts (GWACs)
133
What is the Economy Act?
The Economy Act gives us the authority to use another organization to obtain the supplies or services that we need Special approval must be given to use the Economy Act Economy Act does not apply to GSA buys or Government Wide Agency Contracts
134
Economy Act May Be Used If....
Funds are available Head of the Agency decides it is in the best interest of the Government Head of the Agency makes a determination that goods or services may not be obtained cheaper on the commercial marketplace Must be supported by a Determination and Findings (D&F)
135
Small Business 8(a) Program is:
The 8(a) Program provides business development assistance to companies owned by socially and economically disadvantaged individuals
136
Benefits of 8(a) Program participation is:
the opportunity to receive “sole source” contracts (not exceeding $3.5 million for goods and services, and $5.5 million for manufacturing from Government agencies and the opportunity to bid for 8(a) set-aside contracts Participants remain in the program for 9 years
137
Competition in Contracting Act (CICA) established:
Established requirement to use “competitive procedures” in acquiring supplies/services Policy Contracting Officers shall provide for full and open competition Principles of full & open competition: All responsible sources are permitted to compete
138
Other than Full and Open Competition Seven statutory exceptions are:
6. 302-1 - Only one responsible source and no other supplies or services will satisfy agency requirements 6. 302-2 - Unusual and compelling urgency 6. 303-3 Industrial mobilization; engineering, developmental, or research capability; or expert services 6. 302-4 – International Agreement 6. 302-5 – Authorized or required by statute 6. 302-6 – National security 6. 302-7 – Public Interest
139
Full and open competition allows:
Everyone is allowed to bid
140
Full and open after exclusion competition allows:
Ex: Reserved for small business
141
Other than full and open competition allows:
Sole source | FMS
142
Solicitation is:
a document sent to prospective contractors by a government agency, requesting the submission of offers or information
143
Time and Materials Contracts (T&M) are only used:
Only used when it is not possible, at the time of award, to accurately estimate the extent or duration of the work or to anticipate future costs with a degree of confidence
144
“Best value” means
the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement. Quality over price
145
In addition to price, when determining best value, the ordering activity may consider, among other factors, the following:
(1) Past performance. (2) Special features of the supply or service required for effective program performance. (3) Trade-in considerations. (4) Probable life of the item selected as compared with that of a comparable item. (5) Warranty considerations. (6) Maintenance availability. (7) Environmental and energy efficiency considerations. (8) Delivery terms
146
Preferred method of describing our work requirements:
Performance Work Statement (PWS) Permanent Based Contracting (PBC)
147
When do we use a Determination & Findings (D&F):
Time & Materials Contract When Exercising Option
148
Total years for supply & service contracts are:
5 years for supply 5 years for services
149
Agencies shall perform acquisition planning and conduct market research for all acquisitions in order to promote and provide for—
Acquisition of commercial items Full and open competition Should begin as soon as the agency need is identified PM or other official responsible for the program, has overall responsibility for acquisition planning