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Various aspects of contract closeout and termination procedures in government contracting. It discusses when contract files should be closed out, the required elements for a legally binding contract, the types of contracts that utilize cost-type vs. Fixed-price contracts, responsibilities for quality, rules around contractor bid/proposal information, approaches to dealing with organizational conflicts of interest (oci), the purpose of the federal acquisition system, the types of competitive/negotiated procedures, requirements for full and open competition, rules around gifts and acceptance, excusable delays, warranties, payment procedures, termination types and settlements, the use of simplified acquisition procedures (sap), contract types, changes clauses, claims and disputes, and settlement proposals. A comprehensive overview of key contract administration and closeout topics.
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What is the Micro-purhcase threshold for supplies? - Correct Answer-$10k All incentive contracts (schedule or performance) must also include what? - Correct Answer-Cost incentive or constraint What requires funds to be used only for needs or services in the year of the appropriations obligation period? - Correct Answer-Bona Fide Needs Rule What contract types can be used for commercial item purchases? - Correct Answer- FFP or FPEPA What is the Simplified Acquisition Threshold for commercial products and services? What is it for non-commercial? - Correct Answer-$7.5M - commercial $250k for non- commercial True or False: The Gov shall use electronic commerce whenever practicable or cost- effective - Correct Answer-True What is the purpose of a contract file? (4) - Correct Answer-Provide background/basis for decisions Supporting actions taken Provide information for reviews and investigations Furnishing essential facts in the event of a litigation Can contract files be combined if appropriate? - Correct Answer-Yes At what level are contract files maintained and why? - Correct Answer-Maintained at the organizational level to ensure effective documentation of contract actions accessibility by principal users minimal establishment of duplicate and working files safeguarding classified docs conformance with agency regs When is a SAP contract file closed out? - Correct Answer-When the KO receives evidence of receipt of property or final payment When is a FFP (not SAP) contract file closed out? - Correct Answer-Should be closed out within 6 months after date KO receives evidence of physical completion
When should contract files required settlement of indirect cost rates be closed out? - Correct Answer-Within 36 months of the month the KO receives evidence of physical completion When should all other (not SAP, FFP, or indirect cost rate) contract files be closed? - Correct Answer-Within 20 months of the month the KO receives evidence of physical completion When is a contract considered physically complete? - Correct Answer-the KTR has completed required deliveries and Gov has inspected and accepted the supplies The contractor has performed all services and the Gov has accepted the services and all option provisions, if any, have expired or the Gov gives the KTR notice of termination What are the steps to close out a contract file? - Correct Answer-1) Contract admin office is responsible for initiating, reviewing contract fund status, and deobligating excess funds 2)KO issues a contract completions statement
What is a commercial service? - Correct Answer-includes installation, maintenance, repair, training if procured in support of commercial product and/or are provided to the general public as well What is a commercially available off the shelf (COTS) item? - Correct Answer-supply that is a commercial product, sold in substantial quantities, offered to the Gov without any modifications needed What exchanges can take place in the pre award phase between the KTR and Gov? - Correct Answer-Clarifications and communications and discussions what activities are completed in the pre award phase? - Correct Answer-Develop Solicitation and Develop Offer What considerations are needed when planning a solicitation? - Correct Answer-What is the need/requirement Are the outcomes measurable? Are the outcomes properly incentivized Are their available funds? Are there any sources that should be excluded when the agency is describing its needs in a Solicitation - Correct Answer-No, we want full and open competition What risks should be analyze when planning a soliciation? - Correct Answer-Make or buy descision conducting a supply or services determination what is the schedule/need of the customer is intellectual property needed? Unnecessarily short delivery/performance schedules should be avoided when creating a solicitation because they can - Correct Answer-restrict competition inconsistent with SB policies may result in higher prices What is the Gov policy on acquiring tech data for commercial items? - Correct Answer- only acquire data that is customarily provided to the public unless it is tech data relating to form, fit, or function or is required for repair and maintenance, describe modifications made by Gov What is the Gov policy on acquiring tech date for non-commercial items? - Correct Answer-Only acquire data to satisfy agency needs What shall the soliciation include regarding tech data? - Correct Answer-the tech date to be delivered under contract and schedule establish procedure for determining acceptability of data
establish separate CLINs for tech data to be delivered (priced separately) require offerors to identify tech data to be furnished with restrictions Generally speaking, which contracts utilize cost type vs fp type contracts? - Correct Answer-Cost type is for unknown parameters (R&D, no definite schedule or quantity) FP type is for known parameters and costs (production) An offeror builds an offer based off of its own - Correct Answer-business strategy and operating procedures even though they are aware the Gov must follow laws and regulations The post award phase is comprised of (2) - Correct Answer-Perform contract Close contract Who is responsible for administering the contract after award? - Correct Answer-The Gov and the Contractor What is the main area of focus during the contract administration phase? - Correct Answer-quality of contract performance What does quality include? - Correct Answer-schedule cost successful delivery of services or items Who is responsible for quality? - Correct Answer-the seller, contractor Why should the buyer provide quality oversight when it is the contractors responsibility to ensure quality? - Correct Answer-The buyer has a responsibility to the stakeholders to protect their interest Should the contracting system focus on risk management or risk performance? - Correct Answer-Risk management How should contractors be treated? - Correct Answer-fairly and impartially but need not be treated the same In terms of the Federal Acquisition Regulation System, the actions of each member of the contracts team must reflect - Correct Answer-integrity, fairness, and openness Communications from contracting professionals have influence over what? - Correct Answer-Cost, quality, and timeliness of products and services What is a deviation? - Correct Answer-policy/procedure which is inconsistent with the FAR
What type of information is considered contractor bid or proposal information? - Correct Answer-cost or pricing data indirect costs and direct labor rates proprietary information info marked as bid and proposal info information marked IAW 52.215-1(e) that has not been made available to the public Who may disclose contractor bid and proposal information? - Correct Answer-Someone authorized by the agency head or KO may disclose contractor bid and proposal info to another authorized person in accordance with applicable agency procedures What must be signed before contractor proposal information can be delivered to the Government? - Correct Answer-Non-Disclosure Agreement How should source selection informatin be marked? - Correct Answer-"source selection information" should be on the cover page and each page where SSI is. What is considered source selection informatin? - Correct Answer-any info used in evaluating a bid or proposal to win a contract (whether it is marked or not) bid prices proposed costs or prices source selection plans tech eval plans tech eval/cost or price eval of proposals competitive range determinations rankings of bids and info marked as SSI What are some examples of Organizational conflicts of interst - Correct Answer-Any unfair advantage company A provides tech direction so should not be allowed to supply REALTED components company A provides tech direction for product X which is canceled. Company B provides tech direction for product Y which is similar but developed fundamentally different fashion. Company A CAN supply system Y What are the three broad categories of OCI's? - Correct Answer-unequal access impaired objectivity biased ground rules What is unequal access? - Correct Answer-Unfair competitive advantage when a contractor obtains information not available to the competitors What is impaired objectivity? - Correct Answer-When a support contractor is performing duties that involve assessing or evaluating itself or a related entity
What are biased ground rules? - Correct Answer-most often occurs during the writing of the SOW, performing systems engineering, or providing technical direction efforts What are the three approaches available to contractors and the Agency for dealing with OCI's? - Correct Answer-Avoid Neutralize Mitigate How can a contract deal with OCI by avoiding? - Correct Answer-exclude potential sources from competition or eliminate a segment of work from a contract or task How can a contract deal with OCI by neutralizing? - Correct Answer-encourage/facilitate support contractor recusal, exclude or limit support contractor participation in source selection, bar access to competition sensitive data How can a contract deal with OCI by mitigating? - Correct Answer-OCI mitigation plan - reduce or alleviate impact of unavoidable OCI to an acceptable level of risk What should a KO do if an OCI exists? Shoul they award the contract? - Correct Answer-It's best to cancel the RFP and make needed changes to eliminate any conflict. If there is an OCI can a KO award the contract? - Correct Answer-Yes they can if it is in the best interest of the U.S., and if a waiver is approved by the HCA What does a KO need to do if an OCI was thought to exist but actually does not? - Correct Answer-The KO needs to tell all parties that the OCI does not exist and their rationale for why Do whistleblower protections apply to any element of the intelligence community? - Correct Answer-No not in DFARS part 203 What entities can disclosures be made to? (disclosing of fraud, waste, and abuse) - Correct Answer-member of congress inspector general with oversight of contracts GAO DoD employee with oversight of contracts court or grand jury management official who has responsibility to investigate misconduct What is a disclosure? - Correct Answer-when an employee initiates or provides evidence of contractor misconduct in any judicial or administrative proceeding relating to waste, fraud, or abuse on a DoD contract All unclassified award data must be - Correct Answer-made accessible to the public via Federal Procurement Data System (FPDS) if
What is not a contract? - Correct Answer-grant or cooperative agreement Does Market research include determining product characteristics, the capabilities of supplies, and the business practices that surround them? - Correct Answer-Yes When is market research required? - Correct Answer-all gov contract requirements that exceed the SAT and for certain requirements below the SAT What is a nondevelopmental item? - Correct Answer-a previously developed item of supply used exclusively for government purposes, which requires only minor modifications of a type customarily available in the common marketplace in order to meet the need The extent of market research varies based on what factors? (4) - Correct Answer- urgency, estimated dollar value, complexity, and past performance How relevant does market research need to be to be accurate and relevant? - Correct Answer-18 months A trade show is an example of what type of market research? - Correct Answer- strategic what is tactical market research? - Correct Answer-conducted at specific points during aq process, provide deeper understanding to answer specific questions What are some benefits to market reearch? - Correct Answer-understanding (alternative) solutions available in marketplace insight into price expectations better able to describe/ communicate gov needs to industry provide more competition understand common industry practices, terms and conditions What is the intent of Competition in Contracting Act of 1984? - Correct Answer- authorized KO's to promote and provide for full and open competition in soliciting offers and awarding Gov contracts what are the two main types of competitive/negotiated procedures of contrating? - Correct Answer-Sealed bids and competitive proposals can also use a combination of both (two - step sealed bidding) What is full and open competition after exclusion of sources? - Correct Answer- agencies may exclude a particular source from a contract action in order to establish or maintain alternative source or sources What are the set asides for full and open competition after exclusion of sources? - Correct Answer-establishing or maintain alternative sources
set asides for small business concerns section 8(a) competition set asides for hubzone small business concerns set asides for service disabled veteran owned SB set aside for women owned SB set asides for local firms during major disaster What circumstances is other than full and open competition authorized? - Correct Answer-only one responsible source unusual or compelling urgency industrial mobilization, R&D, expert services international agreement authorized by statute national security public interest What should the KO do to establish price reasonableness? - Correct Answer-obtain certified cost or pricing date when necessary or obtain other than certified cost or pricing data Is adequate price competition enough to establish a fair and reasonable price when certified cost and pricing data is not reqiured? - Correct Answer-yes What is the order of preference when determining the type of other than certified cost or pricing data required? - Correct Answer-data related to prices relying first on what is available within the Gov second on data obtained from sources other than the offeror and lastly on data obtained by the offeror price each contract separately and independently. do not price contracts based on - Correct Answer-proposed price reductions under OTHER contracts or consider losses or profits realized under OTHER contracts No Gov employee may accept gifts from anyone who - Correct Answer-is seeking to obtain business with employees agency conducts activites that are regulated by the employees agency has interests that may be affected by performance of employees duties What is acceptance? - Correct Answer-acknowledgement that the supplies or services conform with applicable contract quality and quantity requirements When can acceptance take place? - Correct Answer-before, at time of or after delivery What must happen beofre acceptance? - Correct Answer-quality assurance
When would a contractor still be in default even if there was an excusable delay? - Correct Answer-the subcontracted supplies or services were obtainable from other sources the KO ordered the KTR in writing to purchase these supplies or services from the other source the KTR daily to comply with this order What are the two principal purposes of a warranty? - Correct Answer-to delineate rights and obligations of the KTR and the Gov for defective items to foster quality performance What should the KO ensure is included in a warranty? - Correct Answer-nature of the item and its components that the contractor warrants extent of the contractors warranty including all of the contractors obligations to the Gov for breach of warranty specific remedies available scope and duration of warranty Does the contractors obligations under warranties extend to all defects discovered during the warranty period, but do not include damage caused by the Government? - Correct Answer-Yes Can warranties be placed for particular aspects of an item (installation, components, accessories0? - Correct Answer-Yes What defects are the contractors obligated to correct if the Gov specifies the design of an end item and its measurements, tolerances, materials, tests or inspection requirements? - Correct Answer-limited to defects in material and workmanship or failure to conform to specifications If the Gove does not specify the design of the end item then the warranty - Correct Answer-extends also to the usefulness of the design If an express warranty is included in the contract, do implied warrantees of merchanibility and fitness still apply? - Correct Answer-No they are negated by the specific language of the express warranty clause (unless a commercial item) What minimum remedies does a warranty provide for? - Correct Answer-obtain equitable adjustment or the contract or direct the KTR to repair or replace the defective items at the contractors expense How is the duration of a warranty established? - Correct Answer-estimated useful life of the item, the nature of the item including storage shelf life, and trade practice Does the warranty period extend the contractors liability for patent defects beyond a reasonable time after acceptance by the Government? - Correct Answer-No
What are considerations when establishing a notice period? - Correct Answer-time needed to discover defects time required for admin steps and reporting of defects to KTR time required to discover and report defective replacements what is an implied warranty? - Correct Answer-item is reasonably fit for the ordinary purposes for which such items are used. must be of at least average, fair, or medium grade quality, and must be comparible to those that will pass without objection in the market for items of the same description when can the Gov rely upon an implied warranty - Correct Answer-the seller knows the purpose for which the Gov intends to use the item the Gov relied upon KTRs skill that the item would be appropriate gov consults legal counsel express warranties - Correct Answer-KOs required to take advantage of commercial warranties offered to the general public in terms of payment what must the agency establish to implement FAR part 32? (4) - Correct Answer-standards for establishing invoice payment due dates adopt different payment procedures in order to accommodate unique circumstances inform contractors of POC within payment office authorize use of accelerated payment methods what are the two main types of termination - Correct Answer-termination for convenience and termination for default (cause for commercial contracts) can termination apply to all or parts of a contract? - Correct Answer-yes What shall be included in a termination notice? - Correct Answer-that the contract is being terminated and under what contract clause the effective date extent of termination any special instructions steps contractors should take to minimize the impact on personnel if the termination What is the contractor required to do after receipt of termination notice? - Correct Answer-stop work immediately (an subcontracts) terminate all subcontracts immediately advise TCO of any special circumstances preculding stop work perform continued portion of the contract (if applicable) submit any requests for equitable adjustment with evidence take action to protect GFP and return notify TCO of legal proceedings settle outstanding liablilities arising from termination of subs
describe work in terms of results rather than how the work is accomplished or the number of hours to be provided identify essential processes and outputs or results required What happens in the planning phase of service acquisitions? - Correct Answer-Form the team Review current strategy Market research What happens during the development phase of service acquisitions? - Correct Answer- form requirements definition (PWS) form acquisition strategy (strap) What happens during the execution phase? - Correct Answer-execute strategy performance management Which statue required a KO to obtain written assurance from responsible fiscal authority that adequate funds are availalbe or expressly condition the contract upon availablilty of funds before executing a contract? - Correct Answer-Anti-Deficiency Act When should agencies conduct market research? - Correct Answer-before developing new requirements before soliciting offers for acquisitions above the SAT before soliciting offers that could lead to a bundled contract on an on going basis for contingency contracting Why does the Gov prefer the use of commerical items? - Correct Answer-we don't want to pay the cost and time required for new item development. Commercial items have competitive pricing which benefits the Gov true or false, when using FAR part 13 SAP procedures, KO are not required to describe relative importance of Evalution factors - Correct Answer-true True or False, FAR part 12 commercial can be used in conjunction with FAR part 13 (sap), FAR part 14 (sealed bidding), and FAR part 15 (contracting by negotiation) - Correct Answer-true, FAR part 12 takes precedence is the prime ktr required to incorporate commercial and non developmental products as components whenever possible including subcontractors? - Correct Answer-yes When does FAR 12 commercial items not apply? - Correct Answer-Below MPT / SF 44 Imprest fund gov wide p card purchase directly from another agency
Do all provisions that apply to commercial items apply to COTS items? - Correct Answer-yes What are the components of a D&F for LH contract type instead of FFP for commericial? - Correct Answer-description of Market research not possible to estimate duration of the work or costs requirement structure to used FP in the future describe actions planned to max use of FP in the future Why do we use SAP procedures? - Correct Answer-reduce admin costs improve opportunities for SB promote efficiency avoid unecessary burdens When should SAP be used - Correct Answer-max extent practicable for purchases not exceeding the SAT including at or below MPT Does the SAP policy apply to requirements using required sources of supply under FAR part 8 or when using existing IDIQ/established contracts? - Correct Answer-No True or false SAP actions require Request for Quotes, quotes are not offers - Correct Answer-True quotes cannot be accepted by the Government, contract is formed when Gov send an order and supplier accepts What is the SAT threshold for commecial and noncommercial items - Correct Answer- 7.5 mil for commercial 250k non commerical What contract types are used for sealed bidding? - Correct Answer-FFP or FP EPA What are the steps for two step sealed bidding? - Correct Answer-requests for technical proposals/no pricing is involved submission of sealed bibs by those who submitted accpetable tech proposals in step one When is two step sealed bidding used - Correct Answer-available specification are not definite (may be too restrictive without tech eval) criteria exists for evaluating technical proposals more than one qualified source available sufficient time FFP or FP EPA will be used When can contracting by negotiation be used? - Correct Answer-whenever one of the pre reqs for sealed bidding is lacking sufficient time
Cost reimbursment or incrementally funded contracts the KTR is not obligated to - Correct Answer-continue perofrmane or incur cots beyond limits of limitations of cost /funds clause chagne within scope is change order, out of scope change is - Correct Answer-bilateral agreement are all commercial changes bilateral? - Correct Answer-yes claim must be presented for decition within 6 years - Correct Answer- decision time limits for claims - Correct Answer-100k or less, 60 days after reciebing request from KTR that decision be rendered or reasonable time 100k or more 60 days or less after receiving certified claim contractors can appeal KO decisions with the - Correct Answer-ANGENCY boards of contract appeals the dispute statue authorizes agencies to require a contractor - Correct Answer-to continue performance in accordance with the KO's decisions pending relosuing of any claim related to the contract should the TCO allow profit if it appears that the KTR would have incurred a loss had the entire contract been completed - Correct Answer-no use of the inventory basis for settlement proposals is preferred - Correct Answer- contract my propose only costs allocable to the terminated portion of the contract and settlement proposal must itemize each cost item separately