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ACO CORB Study Guide 2024
What are the responsibilities of an ACO? \ correct ansThe ACO should ensure that the best interests of the Government are protected by ensuring the terms and conditions of the contracts are appropriate. all parties execute the contract according to the terms and condition Examples of responsibilities of an ACO? \ correct ansConduct post award conferences, negotiate forward pricing rate agreements, determine allowability of costs, establish final indirect costs and billing rates, process novation and name change agreements, and perform administrative closeout procedures. What is the difference between an ACO and CA? \ correct ansThe ACO has a warrant that binds the Government. The ACO's decisions and documents are binding. The CA prepares documents up to signature but cannot bind the Government. What is the relationship between the prime and subcontractor? \ correct ansPrivity - If the Government has a contract with the prime contractor; there is privity of contract between the Government and the prime. If the prime has a contract with its subcontractors, privity of contract exists between the prime and its subcontractor. No privity of contract exists between the Government and the sub (unless there is another contract with them). If no privity, you cannot negotiate directly with the sub or direct the sub to take any action. Generally speaking how long are funds available before they cancel? \ correct ans years Who can authorize the use of Advanced Payments? \ correct ansPCO What is the difference between finance payments and invoice payments? \ correct ansFinance payments are payments made to a contractor prior to acceptance of product/service, while invoice payments are made based on acceptance of product/service. Examples of financing payments \ correct ansProgress Payments based on cost or completion of work, Performance Based Payments, Advanced Payments or Interim Payment/Voucher for cost type contracts. What is the least preferred method of financing. \ correct ansAdvanced Payments What would be reasons for an ACO to suspend or reduce progress payments? FAR 32.503-6, Clause 52.232-29 \ correct ans1. Non-compliance with material requirement of contract (ex. Approved Accounting system)
- Unsatisfactory financial condition
- Inventory in excess of contract requirements (unreasonable)
- Failure to make adequate progress
- Delinquent in paying subs
- Operating in a loss condition What are Performance Based Payments? \ correct ansPayments based on achievement of specific, measurable events or accomplishments that are defined and valued in contract. These events should be identified as cumulative or stand alone events, clearly describe the events and how they will be validated, and the value for each accepted event. • Not used for smaller contracts Not used for contracts less than 6 months What does it mean when it's said progress payments are self-liquidating? \ correct ansThe Government recoups contract funds through the deduction of payment of invoices at the time of completed contract line items. When invoicing for supplies/services, the debt is paid by taking a percentage of the invoice. When the contractor submits a progress payments on the DD1443 form the contractor will not bill for the amount of there liquidating rate. The total billed amount will be added and totaled in WIP. Upon delivery of the product, the contractor submits an invoice for the total amount of the contract or line item and DFAS will empty the WIP amount recouping those funds and paying and the amount billed minus the WIP amount for the total amount owed. What is needed before approving Progress Payments and PBP Payments? \ correct ansThe ACO shall ensure the contractor has an adequate accounting system and contracts that ensure the government is otherwise protected against loss by additional protective provisions. Additional provisions may include risk assessment, cost benefit analysis, first article dollar limitation, surveillance plan. Ensure the Master Payment Schedule in MOCAS is completed What are the different types of financing payments and on what type of contract may they be used? \ correct ans1. Advance Payments - May be used on any type of contract but must be authorized by PCO and is used sparingly
- Performance Based Payments - used on fixed price contracts only
- Progress Payments - May be used on Fixed Price line items; Payments are made on the basis of either a percentage of completion of work (FAR32.101,102) or the incurrence of costs
- Loan Guarantee - Made by Federal Reserve banks, on behalf of designated guaranteeing agencies, to enable contracts to obtain financing from private sources
- Interim Payment on Cost Type Contracts What are the ACO's responsibilities for Progress Payments? \ correct ans1. Determine if the use of progress payments are pratical
- Ensure contractor meets FAR 32.104(d) requirements a. Small business (90%) i. can't bill for first delivery prior to 4 months
- At no time negotiate/establish finance terms without written concurrence of PCO
- Determine adequacy of accounting system
- Process PBPs promptly (within 14 days)
- Ensure functional specialists who provide PBP support follow contract/FAR/DFARs
- Ensure PBPs not submitted more frequently than monthly
- Ensure MOCAS has sufficient funds under ACRN There are a large number of physically complete FFP contracts, upon reviewing the list of contracts some are showing ULO's and negative ULO's. What would you do? Does this concern you? \ correct ansYes this would concern me. FFP contracts should not have money remaining at physical completion. I would start by reviewing the list to see if there is a common thread such as the same contractor. I would then start a data integrity review. I would start by reviewing MOCAS and WAWF, checking to make sure the contractor has submitted a final invoice and all invoices have been paid. I would want to check that no invoice was incorrectly paid by DFAS, I would review MOCAS for any clues to why a invoice hasn't paid. Reviewing codes that DFAS inputs. A SDW pull would also assist in the invoice reconciliation. I would then start a modification reconciliation. Checking for any modifications that weren't processed correctly in MOCAS especially deobligation mods or mods that are removing work from the contract. One additional resource I would check is IWMS to see if there is any documents filed in the record that might assist in figuring out what the problem is. Name 4 of the 6 Contractor Business Systems \ correct ans1. Accounting
- Estimating
- EVM
- MMA (Material Management and Accounting System)
- Property Management
- Purchasing Explain the timeline for business systems found to have significant deficiencies:
correct ansa. 10 days for initial determination - attach unsigned draft Level III or IV CAR marked draft, do not request CAP b. 30 days for contractors response c. 30 days for final determination - finalize the Level III or IV CAR in the CAR etool and attach d. 45 days for proposed CAP submittal e. Within 90 days of notice of correction the AOC must request a review all significant deficiencies What are the ACO responsibilities regarding Business Systems? \ correct ans• Review findings from functional specialists (BSAS) or auditor
- Prior to disapproving system, schedule CBS panel
- Implement payment withholds on contract only if the DFARS 252.242- "Contractor Business System" and the specific business system clauses in contract
- Avoid taking withholds based on legacy determination unless contractor given due process
- Ensure Contract Business Analysis Repository (CBAR) eTool is current, accurate and complete at the prime contractor level What should an acceptable CAP address? \ correct ansThe cause of the significant deficiency, including milestones to eliminate the deficiency with target dates for implementation of the planned action, there should be clear and measureable goals within the plan What must be done prior to disapproval of a business system? \ correct ans• talk to F.S to ensure understanding of findings
- A higher level review by the HQ board of review
- ACO has the final decision What is a Business System Analysis Summary (BSAS)? \ correct ansThe BSAS is an internal document that summarizes a contractor's business system determination and identifies deficiencies. It should not be released to a contractor. It should not declare significant/nonsignificant findings or recommend disapproval. Within 90 days of receiving the contractors notification that the deficiencies have been corrected, what must the contracting officer do? \ correct ansa. Ask the Auditor or F.S. to determine if all cited significant deficiencies have been resolved b. Promptly approve a previously disapproved system c. Discontinue payment withholds (if applicable) d. Close the Level III or IV car in the CMO CAR log e. Change the status in the CBAR Etool Under normal circumstances, what dollar value must a contract exceed in order to apply a withhold? (FAR 30.604(i) & 30.605(i)) \ correct ans50 million, if the ACO believes it is necessary to protect the Government's interest, they may implement withholds on contracts less than $50M as long as they have the applicable business system clause and 252.242-7005 with the approval of the Director or supervisor What is the definition of significant findings? \ correct ansSignificant findings means a shortcoming in the system that materially affects the ability of the DoD to rely upon information produced by the system that is need for management purposes. A level III CAR should be issued. If non-significant, Level I or II CAR issued, but Business System can still be approved. It's a systemic problem throughout the entire system that makes the information produced unreliable to the Federal Government. Level III CAR requires, Board of Review Panel. Panel ensures consistency and findings have been fully c What is the risk when you have a disapproved business system? \ correct ansThe risk of a disapproved system is that neither the Government or the Contractor can rely on the information being produced by the disapproved system. An example of a risk would be regarding the property system disapproval. If a contractor is not adequately tracking
Any concerns in general regarding the CAP completion Has reevaluation been completed by the auditor or F.S. What is the age of the last report Any Business Systems changes since the last audit Have the Deficiences been resolved Is the audit prior to the interim CBAR rule being issued in May 2011 Does the contractor still have open contracts? Is the Business System clause 252.242-7005 included in the contract? Was the CAP found to the Adequate? Where any follow ups or other reviews noted Has the company reorganized, been acquired/sold since initial report c) In response to the DACO's initial determination letter, the contractor states that they are already working on deficiencies. They request that you delay the final determination letter until the corrections are completed. What should you do? \ correct ansDCMA Business System Policy specifically states Cos shall not delay business system determinations pending review or validation of the contractor's planned corrective action. Issue the determination letter the ACO has 30 days from the time of contractor's response to complete the evaluation. The ACO will be happy to have a follow up review completed by the auditor or F.S. upon contractor notification that all deficiencies have been corrected. What is the purpose of the Business System Review Panel? \ correct ansBusiness systems can be stand-alone systems or they may be integrated with planning, engineering, estimating, purchasing, inventory, accounting or other systems. They are relied on by the Government to produce accurate. What is CAFU? \ correct ansCAFU is a system used to maintain records of the actions taken to resolve and disposition DCAA Audit reports reportable and non reportable with questioned costs or reportable findings in a timely manner. The information regarding reportable audits in CAFU is accessed by the DoD Office of Inspecter General (IG) and made available to Congress. CAFU shall include a record for each open and closed reportable audit. Non-reportable audits with questioned costs or negative audit findings of more than $100,000 become reportable. What is the difference between a PNO and PNM. \ correct ansPNO stands for Pre- Negotiation Objective Memorandum , which is a document that describes the action plan for addressing each audit finding and recommendation. This document usually states what the finding is, what the contractors response is to the finding, and DCMA's position on the finding.--PNOM will document DCAA's negotiation strategy and why the ACO agrees or disagrees with DCAA. This document must have management concurrence prior to negotiations with the contractor. What is the difference between a PNO and PNM. \ correct ansPNM stands for Price Negotiation Memorandum, in addition to everything previously written in the PNO, the PNM should document the outcome of the negotiation. It should state the finalized
outcome of each audit finding and what the final resolution was. This document has to be signed by management prior to an audit being considered disposition and closed in CAFU. Once this document is signed by management, it should be forwarded to the DCAA auditor and any other affected Government offices. How long does an ACO have to disposition a reportable audit? \ correct ans12 Months How long are CAFU records to be maintained for? \ correct ans6 years and 3 months after payment of the last contract affected by the audit What is the difference between "resolving" audit in CAFU and "dispositioning" audit in CAFU? \ correct ansA reportable audit is considered 'resolved' when the CO has determined/documented an action plan for addressing the findings in a PNOM or MFR and has obtained management concurrence. 3.6. An audit is considered 'dispositioned' and closed when 1) all settlement actions relative to the costs questioned or negative findings of an audit report have taken place and are documented (i.e., COFD, modification, rate agreement), 2) the ACO completes and obtains management review and concurrence of the PNM, MFR or other document dispositioning the audit and 3) CAFU generated email is sent to DCAA with copy of documentation. 3.9. What is the time standards for 'resolving' and 'dispositioning' audits? \ correct ansACO shall 'resolve' all audits within 6 months of the audit report issuance date and shall 'disposition' all audits within 12 months of the audit report issuance date. Non- Reportable Audits have no time limit to resolve but shall be dispositioned within 12 months. 3.6. What is a preaward Survery? \ correct ansAn independent evaluation of a Prospective Contractor's capabilities normally performed by DCMA Ex. Financial Capability, Technical Capability, Production Capability, Quality Assurance, Accounting System, Government Property etc. What are ACO responsibilities with regards to CAFU? \ correct ansa. Ensure all audits are properly recorded in CAFU and that information is current, accurate, complete b. Establish and update target dates for resolving and dispositioning audits c. Resolve and disposition audits in timely manner d. Consider audit findings in developing pre and post negotiation positions e. Document actions to resolve/disposition audits f. Promptly update status of audits: assigned, planned, resolved, dispositioned, deferred, or forwarded g. Report questioned costs, sustained amounts, penalties and interest in CAFU h. Provide copy of PNM, COFD, MFR or other document to auditor What are reportable audit types? \ correct ansa. Business System Type Audits; ex. Accounting and management systems audits, including estimating systems, control environment and overall accounting systems, billing systems, business systems,
- Cite the non- compliance
- Requirement to submit a CAP
- Level III and IV issued on DCMA Letterhead by CMO Commander Transmittal letter What if the CAP submitted is not adequate? \ correct ansReject the CAP in writing and give an additional 10 days to resubmit. If no response or still inadequate, raise CAR to next level (restart timeline) CAS Admin (FAR Part 31) What are Cost Accounting Standards (CAS)? \ correct ansCAS is a set of 19 standards and rules imposed by the US Government to 1)achieve uniformity and consistency in the cost accounting principles for DoD contracts and 2) to require contracts to disclose their cost accounting practices in writing. CAS applies primarily to larger contractors. What are the 2 types of CAS coverage and what are the differences? \ correct ansFull - requires the contractor to comply with all cost accounting standards in effect on the date of contract award. This coverage is required if the contractor receives a single CAS- covered contract award of $50M or more or receives $50M or more in net CAS-covered contract awards in its preceding cost accounting period Modified - only requires the contractor to comply with certain cost accounting standards such as estimating, accumulating, and reporting costs; allocating costs incurred for the same purpose; accounting for unallowable costs. Modified coverage may be applied to a covered contract of less than $50 million in net CAS-covered contract awards in the immediately preceding cost accounting period. However, if the business unit receives a contract for more than $50 million, that contract and all subsequent CAS-covered contracts must be subject to full coverage. Modified coverage also applies to contracts and subcontractor with foreign governments or their agents. What CAS standards must contractors under modified coverage comply with? \ correct ans401, 402, 405, 406 What is a disclosure statement and when is it required? \ correct ansA disclosure statement is a written description of the contractor's cost accounting practices and procedures. It must be submitted by any company receiving a CAS covered contract or subcontracts totaling more than $50 million in a cost accounting period. Disclosure statements are reviewed for adequacy by the cognizant auditor and the ACO. Thereafter, the disclosed cost accounting practices must be followed or a change to the Disclosure Statement must be requested. A disclosure statement is required for each business unit selected to receive a CAS- covered contract or subcontract of $50 million or more, or when the company, together with its segments, received net awards of CAS-covered contracts and subcontracts totaling $50 million or more in its most recent accounting period.
What is the difference between determination of compliance and determination of adequacy? Who makes these determinations? \ correct ansAdequacy - Auditor conducts a review by determining if D.S. is Current, Accurate and Complete. Compliance - Auditor conducts review to make sure in compliance with FAR Part 31 and applicable standards. Auditor notifies ACO of results and cost monitor or cost/price analyst reviews audit report and documents their position on adequacy/compliance in MFR. ACO makes determination on both Adequate and Compliant (with assistance of auditor, cost monitor and pricer). Approval of contracts director is required prior to issuance. Determination should be made within 30 days of receiving D.S. Disclosure statement should be in CBAR. What is the process for changing the Disclosure Statement? \ correct ans• Not considered a change if correcting noncompliance
- Contractors can change DS or revise at any time o It must be amended when practices change o Changes are applied prospectively only o ACO can approve retroactive unilateral changes but back to start of contractor's FY
- If required or desirable change, ACO negotiates equitable adjustment on CAS covered contracts for cost impacts
- If unilateral change (unilateral change by the ctr, but not desired by Gov't), ACO Prohibited from paying increased costs; contract must submit description of change to ACO 60 days prior to change What is the timeline for CAS non-compliance determination? \ correct ans• Within 15 days of receipt of audit report the ACO must either notify auditor that the ACO disagress with alleged noncompliance OR
- Notify contractor of potential noncompliance o Ctr has 60 days to respond o ACO/Pricer review ctr response o Prepare MFR o Legal review and Contracts director approval required Changes Clause: FAR 52.243-1 and 52.243- Discuss the FAR Changes Clause, specifically in regards to Fixed Price and Cost Reimbursable. \ correct ansA Contracting Officer may at any time make unilaterally changes to the general scope of the contract in any one or more of the following:
- Drawings/Designs/Specifications when the supplies to be furnished are to be specifically manufactured for the Government in accordance with the drawings, designs or specifications
- Method of Shipment or packing
- Place of delivery
Excusable Delay includes: act of God or enemy, fires, floods, epidemics, quarantine restrictions, strike, freight embargos Possible Remedies include:
- Liquidated Damages
- Consideration/equitable price reduction for actual damages
- Rejection of non-conforming product for being late
- Reduce/suspend of financial payments
- Cure-notice - termination process (work with PCO) A contract is 5 months delinquent in scheduling, what do you do if it is the contractor's fault? What do you do if it is the Government's fault? \ correct ansGovernment's Fault: Per FAR 42.302 (a)(64), negotiate and execute one-time supplemental agreements providing for the extension of contract delivery schedules up to 90 days on contracts with an assigned Criticality Designator of C (see 42.1105). Notification that the contract delivery schedule is being extended shall be provided to the contracting office. Subsequent extension on any individual contract shall be authorized upon concurrence of the contracting office. Criticality Designator Criterion A - Critical Contracts, including DX-rated contracts contracts citing the authority in 6.302-2 (unusual and compelling urgency) and contracts for major systems. B - Contracts (other than designated "A") for items needed to maintain a Government or contractor production or repair line to preclude out-of-stock items. C - All contracts other than those designated "A" or "B" What do you do if a contract is in an overrun status? \ correct ansPer FAR 42.302(a) (16)it is the Contract Admin offices responsibility that "Ensure timely notification by the contractor of any anticipated overrun or underrun of the estimated cost under cost- reimbursement contract". Identify the overrun status; cost overrun or schedule overrun. Notify the contractor, customer and PCO. Identify possible solutions based on the cause of the problem. PCO can possibly de-scope the contract or add additional funding. ABC Company is a high visibility contract. They are in a cost overrun situation. The PM states costs are accelerating. What would you do \ correct ansPer FAR 42.302(a)(16) the ACO should have ensured the contractor provided timely notification of any anticipated overrun or underrun. And remind the ctr about limitation of funds
- Determine a course of action
- a) If it is a fixed price contract the cost overrun will not affect contract price. But if it is incentive or fixed price with price determination the overall contract price may be affected, but the government contract obligation will be limited by the contract ceiling price. While the effect on price may be limited, their might be a substantial effect on contract performance. ACTION: The ACO should monitor contract performance more closely to assure all work is being accomplished in accordance with contract
requirements and consider the need for adjustment in the liquidation rate for any progress payments based on costs. b) If it is a Cost reimbursement contract then alternatives would be the following: a. Take no action until more information is available. b. Have PCO/customer add additional funds to contract c. Have PCO/customer redefine/descope the contract effort to fit existing funds d. Allow the contract to continue without change until the funds expire. e. Terminate the contract (terminate for convenience) - NOTE: the contract would be sent to the DCMA termination center ABC Company is a high visibility contract. They are in a cost overrun situation. The PM states costs are accelerating. What would you do (cont) \ correct ansDCMA engineers validate over/underrun Independent Estimate at Completion (IEAC) from DCMA Functional Specialist (Earned Value Specialist) Financial Capability Assessment by DCMA Financial Capability Group - act on risk indicators Consult DCAA - any internal control issues? Potential Re-Baseline by PCO Remedies: increase prog pay review (risk), Apply loss ratio on progress payments, reduce/suspend financing What to do if a part has a defect after it has been accepted? \ correct ans#1 Check for warranty clause, FAR 52.246-17 (Supplies of Non-Complex Nature), 52.246- (Supplies of Complex Nature) FAR 52.246-17: Remedies available to the Government. (2) Within a reasonable time after the notice, the Contracting Officer may either -- (i) Require, by written notice, the prompt correction or replacement of any supplies or parts thereof (including preservation, packaging, packing, and marking) that do not conform with the requirements of this contract (ii) Retain such supplies and reduce the contract price by an amount equitable under the circumstances. Fee on CPFF contracts when contract cost overruns. \ correct ansFee will remain whatever was negotiated in the contract. The contract is Cost Plus Fixed Fee, therefore the fee is fixed and is not based on performance. Disallowance of Costs: What is a DCAA Form 1? When is it used? \ correct ansDCAA Form 1 is a Notice of Cost Suspensions and Disapprovals under Cost-Reimbursement Contracts to suspend an item of cost either direct or indirect, which lacks adequate explanation or documentary support until the required data are received and a determination can be made as to the allowability of the item. DCAA is responsible for issuing DCAA Form 1.
What options can be used to establish final indirect cost rates? \ correct ansACO or auditor determination Within how many days after settlement of the final indirect cost rates for all years of performance on a physically complete contract must the contractor submit a completion invoice or voucher reflecting the settled amount and rates? \ correct ans120 days How many days does the buying activity have to clear a final patent report? \ correct ans60 days; if ACO does not receive clearance within the allotted time, the ACO can deem patent clearance upon consultation with legal counsel? For FFP contracts in CAR Part B, above what dollar threshold must the ACO review the contract and generate a final pay NLA in the closeout etool? \ correct ansAnything over $99, What is the purpose of a COFD? \ correct ansFAR 33.211, when a claim or dispute cannot be satisfied by mutual agreement ex. Unilateral rate determination, unilateral price determination because of the statute of limitation DCAA review of the final voucher, or _______________ constitute the final audit action on the contract? \ correct ansIssuance of the cumulative allowable cost worksheet (CACWS) On Jan. 2013 you completed negotiations for settlement of contract overhead rates for
- By Jan 2014, the contractor has not submitted Final Vouchers yet. What actions would you take? \ correct ansThe ACO should reach out to the contractor to find out why the final vouchers have been submitted and request again they be submitted as soon as possible. If the contractor fails to provide a reasonable explanation and doesn't submit the final voucher. The ACO has several remedies available to use:
- Escalation to Management Councils, CMO Commander, and District Director
- Inclusion of non-compliance in a Preaward Survey
- Suspend interim financing payments on other open contracts
- Disallow or recoup previously paid costs
- Decrement bidding/billing rates
- Iniatiate appropriate system reviews
- Maintain fee withholds
- Recommend removal from Direct Billing On Jan. 2013 you completed negotiations for settlement of contract overhead rates for
- By Jan 2014, the contractor has not submitted Final Vouchers yet. What actions would you take? (Cont) \ correct ansFinally the ACO should unilaterally determine the final cost and close the contract. Administrative unilateral closeout includes:
- Verify that all shipments/performance has been accepted by the Government
- Issue initial letter of request for final voucher with a suspense of 14 days
- Notify PCO of intent to perform unilateral determinations.
- Coordinate with DCAA to determine allowable cost and/or obtain applicable incurred cost audits
- Determine the total previous payments made to the contractor according to MOCAS
- Coordinate with legal counsel
- Issue a letter to the contract, which will serve as a notice of intent to unilaterally determine the final contract price if the final voucher in not received within 30 days from date of the notice (Read Receipt should be requested)
- If no final voucher submitted, calculate the final price based on previous amounts paid to date
- If overpayment has occurred, request a refund from the contractor. If the contractor refuses to provide the refund within 30 days from the date of the request, forward the debt to DFAS Columbus, via DCMA Form 1797 for collection action o If excess funds remain, accomplish deobligation with the unilateral determination modification.
- Issue a modification establishing the final price at the amount previously paid to date and deobligate any excess funds at the ACRN level.
- Notify the PCO that all actions are complete by using a DD form 1594
- Monitor movement of contract through MOCAS to ensure closeout Document all contacts, telephone conversations and meetings as evidence that Government initiated attempts to engage the contractor in remedying issue. Quick Closeout What is the purpose of the DCMA Class Deviation as it regards quick closeout? \ correct ansThe DCMA Class Deviation from October 2015 authorizes closeout prior to rate establishment regardless of dollar value/percent which allows the ACO to waive the dollar threshold established by FAR 42708 for quick closeout. It also permits the ACO to waive the audit requirement when compelling reasons exist. The decision to waive must be made by the ACO in consultation with DCAA. Compelling reasons:
- Lack of audit resources
- DCAA focus on other priorities
- Funds at risk for canceling
- Contract significantly overage
- DCAA has questioned insignificant claimed costs historically
- REMEMBER TO COORDINATE WITH DCAA AND DOCUMENT DISCUSSION Quick Closeout What contracts should be considered for QC? \ correct ans• Canceling Funds
- Smaller cost-type/incentive/T&M
- Significantly overage
- Contractor's with final rates that have been consistent
- Contractor that has adequate business system
- Deobligate funds considered to be excess to contractual requirements with written authorization from the Procuring Contracting Officer.
- Establish the contractor's intent to invoice for the canceling funds. Determine whether payment requests will be submitted properly to ensure processing before the funds cancel.
- Use the Wide Area Work Flow to transmit ACO approved payment requests.
- Obtain Final Vouchers to close the contracts. What is Over and Above Work? DFARS 252.217-7028 \ correct ans• Maintenance, overhaul, modification and repair of items
- Separate CLIN required
- Ctr submits work request to identify needed repairs
- Gov't must authorizes ctr to proceed o Dollar limitations sets
- Not UCA, must be within scope What is ACO Responsibilities for O&W Work Requests? \ correct ans• Establish and execute procedure with contractors for O&W
- Establish work request control systems
- Unilateral direction if can't agree
- Makes final decision for all O&A impasses O&W Required Elements? \ correct ans• Contract number/task order number
- Program title
- Submission date
- Description of proposed work
- Work request number
- Total FFP supported by labor hour/material breakdown What is the difference between a panel and a board of review? \ correct ansA BofR is required when there is a disagreement between F.S. and ACO if deficiency is significant or non-signficant. A Panel is convened when issuing a disapproving a system and issuing a level III or IV CAR. It offers recommendation on whether ACO determination is well thought out and researched You are an ACO and one of your contractors installed used microchips when the contract required new. Contract was issued a Level III CAR, but continues to install the used chips. What remedies would you consider? \ correct ans• Assess re-inspection or re-testing costs
- Seek Equitable adjustment/consideration costs
- Reject non-conforming parts
- Coordinate actions with Contract Integrity Center
- Work with PCO on Cure Notice/Termination
You are an ACO and one of your contractors failed to submit its certified incurred cost proposal for FY11 and FY12 as required by FAR. The company has been non- responsive to your requests to submit (initial, 30 day, 3 month, 5 month late letters). What remedies would you consider? \ correct ans• Issuing unilateral rates
- Reducing or suspending progress payments You are the ACO for a contractor that has been late in his contract deliveries 100 times. In looking at the date, 85 were the contractors fault (inexcusable). What remedies would you consider? \ correct ans• Consideration/equitable price reduction for actual damages (ex. $, extended warranty, better shipping materials)
- Imposition of Liquidated Damages (if applicable)
- Rejecting non-conforming product for being late
- Cure-notice - termination process (work with PCO)
- Reduction/Suspension of financial payments Governmental remedies in the event of contractual breach or delay in performance?
correct ansTermination based on delay in performance or contractual breach - Reject later products
- Suspend or terminate progress payments
- Consideration/Equitable adjustment Other than System Disapproval, what other remedies does a contracting officer have with respect to addressing deficiencies? \ correct ans• Termination
- Withholds
- Cancel/Reduce finance payments You are an ACO and you disapproved a contractor's property system in January 2015 due to significant deficiencies. As a result you issued a Level III CAR. The contractor's was approved in March 2015, but a follow-on review showed no progress has been made. What remedies would you consider? \ correct ans• Revoke Government's assumption of risk for property loss and damages
- Start payment withholds if the Business System Clause is included 52.242-
- Reduce or suspend progress payments
- Ensure CBAR is update to date with disapproval status What is consideration? \ correct ansConsideration requires something of legal value to be given in exchange for changing or not following the terms and conditions of the contract. Consideration can be in the form of a monetary exchange such as a contract price adjustment or a non-monetary remedy such as expedited delivery, product quality improvements, performance improvements, warranties and conversion to best practices. The ACO should discuss the potential changes to the contract with the PCO to determine what would be acceptable. CRR:
