NCMA Proprietary CFCM Exam Chapter Study Group Guide 2012-2013 Prepared by Jack Hott, CPCM, Fellow...

NCMA Proprietary

CFCM Exam Chapter Study Group Guide 2012-2013

Prepared by Jack Hott, CPCM, FellowThe material in these slides is intended as reference material only and should not be used as the sole-source for exam preparation.

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Section 1: FAR Parts 1-9, 16-18

1 Federal Acquisition Regulations System 2 Definitions of Words and Terms 3 Improper Business Practices & Personal Conflicts of Interest 4 Administrative Matters 5 Publicizing Contract Actions 6 Competition Requirements 7 Acquisition Planning 8 Required Sources of Supplies & Services 9 Contractor Qualifications 16 Types of Contracts 17 Special Contracting Methods 18 Emergency Acquisitions

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FAR Part 1 - Federal Acquisition Regulations System FAR Subpart 1.1 Purpose, Authority, Issuance

– 1.102 Statement of Guiding Principles– 1.102-2 Performance Standards– 1.102-3 Acquisition Team– 1.102-4 Role of the Acquisition Team– 1.108 FAR Conventions

• Words and Terms, Delegation of Authority, Dollar Thresholds, Application of FAR Changes

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FAR Part 1 - Federal Acquisition Regulations System (cont’d) FAR Subpart 1.2 Administration

– Two councils (DAR Council and CAA Council must agree on all revisions)

– FAR Secretariat (GSA supports, publishes and prints)

FAR Subpart 1.3 Agency Acquisition Regulations– Limited to those necessary to implement FAR policies– Additional policies, procedures, provisions or clauses that

supplement FAR to satisfy specific agency needs

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FAR Part 1 - Federal Acquisition Regulations System (cont’d) FAR Subpart 1.6 Contracting Officers

– Contracting Officers have authority to enter into, administer, or terminate contracts

– No contract shall be entered into unless the CO ensures that all requirements of law, executive orders, regulations, and all other applicable procedures clearances and approvals have been met

– Unauthorized commitment & ratification– A Contracting Officer's Representative (COR) assists in

the technical monitoring/administration of a contract

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FAR Part 1 - Federal Acquisition Regulations System (cont’d) FAR Subpart 1.7 Determinations and

Findings– D&F is a special form of written approval by an

authorized official that is required by statue or regulation as a prerequisite to take certain contract actions

– The “determination” is a conclusion or decision supported by the “findings”

– A D&F may be for a single contract action or a class of contract actions

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FAR Part 1 - Federal Acquisition Regulations System (cont’d)

According to the FAR:a. An unauthorized commitment may be ratified as long as

funds are available. b. The Contracting Officer is the ratification approval

authority for actions up to $2,500. c. Agencies should take positive action to preclude the need

for ratification actions.d. Proper delegation of micro-purchase authority eradicates

any need for ratification procedures.

Answer: _____ Source: FAR 1.602-3

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FAR Part 2 - Definitions of Words and Terms FAR Subpart 2.0 Scope of Part

– Defines words and terms that are frequently used in the FAR

– Cross-references to other definitions in the FAR of the same word or term

– Provides for incorporation of these terms in solicitations and contracts by reference

– Other parts/subparts may define words/terms only applying to the part, subpart or section where it is defined

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FAR Part 2 - Definitions of Words and Terms (cont’d) FAR Subpart 2.1 Definitions (Examples)

– Commercial Item means – – Certified cost or pricing data means – – Data other than cost or pricing data means –– Micro-purchase means –– Simplified acquisition threshold means –– Inherently governmental function means –

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FAR Part 2 - Definitions of Words and Terms (cont’d)

Which of the following is a commercial item?a. A nondevelopmental item, if the procuring agency

determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple state and local governments.

b. An item that evolved from an item which has not been sold to the general public

c. A commercial item that has received modifications not available in the commercial marketplace.

d. A nondevelopmental item used exclusively for governmental purposes

Answer: _____ Source(s): FAR 2.101

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FAR Part 3 - Improper Business Practices & Personal Conflicts of Interest FAR Subpart 3.1 Safeguard

– Avoid any conflicts of interest or appearance of conflicts of interest in government-contractor relationships

FAR Subpart 3.2 Contractor Gratuities to Government personnel– FAR 52.203-3 Gratuities

FAR Subpart 3.3 Reports of Suspected Antitrust Violations– Activities that evidence violation of antitrust laws

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FAR Part 3 - Improper Business Practices & Personal Conflicts of Interest (cont’d) FAR Subpart 3.4 Contingent Fees

– FAR 52.203-5, Covenant Against Contingent Fees

FAR Subpart 3.5 Other Improper Business Practices– Buy-in– FAR 52.203-7, Anti-Kickback Procedure– FAR 52.203-6, Restriction on Subcontractor Sales to the

Government

FAR Subpart 3.6 Contracts With Government Employees or Organizations Owned or Controlled by Them

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FAR Part 3 - Improper Business Practices & Personal Conflicts of Interest (cont’d) FAR Subpart 3.7 Voiding and Rescinding

Contracts– Statutory authority to void an illegally gained contract

FAR Subpart 3.8 Limitation on the Payment of Funds to Influence Federal Transactions– FAR 52.203-11 Certification and Disclosure Regarding

Payments to Influence Certain Federal Transactions

FAR Subpart 3.9 Whistleblower Protections for Contractor Employees– Prohibits discharge, demotion or other discrimination for

disclosure of information to an authorized government representative

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FAR Part 3 - Improper Business Practices & Personal Conflicts of Interest (cont’d) FAR Subpart 3.10 Contractor Code of

Business Ethics– FAR 52.203-13 Contractor Code of Business Ethics and

Conduct

FAR Subpart 3.11 Preventing Personal Conflicts of interest for Contractor Employees Performing Acquisition Functions– FAR 52.203-16 Preventing Personal Conflicts of Interest

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FAR Part 3 - Improper Business Practices & Personal Conflicts of Interest (cont’d)Contractors’ arrangements to pay contingent fees for soliciting government contracts have long been consider contrary to public policy because:

a. they discourage competition.b. such arrangements may lead to attempted or actual

exercise of improper influence.c. they result in excessive overhead cost.d. accountability of costs is difficult to track.

Answer: _____ Source: FAR 3.402

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FAR Part 4 - Administrative Matters

FAR Subpart 4.1 Contract Execution– Only Contracting Officers shall sign contract on behalf of

the United States

FAR Subpart 4.5 Electronic Commerce in Contracting– Federal Government shall use electronic commerce

whenever practicable or cost-effective

FAR Subpart 4.6 Contract Reporting– Public record of awards exceeding $25,000

FAR Subpart 4.7 Contractor Retention of Records– Establishes minimum retention of records for audit and

review

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FAR Part 4 - Administrative Matters (cont’d) FAR Subpart 4.8 Government Contract Files

– Organization, control and closeout of contract files

FAR Subpart 4.11 Central Contractor Registration– Registration and disclosure of contractors and contractor

information

FAR 4.12 Annual Representations and Certifications– Specifies annual requirement– ORCA Online Representation and Certification Application

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FAR Part 4 - Administrative Matters (cont’d) FAR Subpart 4.13 Personal Identity

Verification– FAR 52.204-9 Personal Identity Verification of Contractor

Personnel (E-Verify)

FAR Subpart 4.14 Reporting Executive Compensation and First-Tier Subcontract Awards– FAR 52.204-10 Reporting Executive Compensation and

First-Tier

FAR 4.15 American Recovery and Reinvestment Act– FAR 52.204.11 American Recovery and Reinvestment Act

– Reporting Requirements

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FAR Part 4 - Administrative Matters (cont’d)

Contract with a corporation shall be signed:a. by the chief financial officer.b. by the head of the contracts department.c. in the corporate name, followed by the word “by” and

the signature and title of the person authorized to sign.d. by the chief executive office.


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FAR Part 5 - Publicizing Contract Actions FAR 5.002 Policy

– Contracting Officers must publicize proposed contract actions in order to:• Increase competition• Broaden industry participation• Assist small businesses in obtaining contracts and

subcontracts

FAR Subpart 5.1 Dissemination of information– Greater than $25,000 synopsize in a government-wide

point of entry (GPE) www.fedbizopps.gov– Greater than $15,000 but not greater than $25,000

displayed in a public place or any appropriate electronic means

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FAR Part 5 - Publicizing Contract Actions (cont’d) FAR Subpart 5.2 Synopsis of Proposed

Contract Actions– FAR 5.202 lists exceptions to synopsis requirement– FAR 5.203 identifies publicizing and response time

requirements

FAR Subpart 5.3 Synopses of Contract Awards– Exceeding $25,000 synopsis of awards– Exceeding $4,000,000 public announcement and make

information available

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FAR Part 5 - Publicizing Contract Actions (cont’d) FAR Subpart 5.4 Release of Information

– Limitations on release of confidential, proprietary or information restricted under the Freedom of Information Act

– Release of long-range acquisition estimates

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FAR Part 5 - Publicizing Contract Actions (cont’d)

What is the dollar threshold for public announcement of contract awards?

a. $500,000b. $4,000,000c. $5,000,000d. $10,000,000


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FAR Part 6 - Competition Requirements Full and Open Competition (FAR 2.101) when used

with respect to a contract action, means that all responsible sources are permitted to compete

Exclusions– Establishing or maintaining alternative sources– Set-asides: 8 (a), SB, HUBZone, SDVOSB, EDWOSB, local firms

during major disaster or emergency

Competition Advocates, review and report and take action: – Acquire commercial items– Achieve full and open competition– Challenge requirements restricting competition and commercial

item

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FAR Part 6 - Competition Requirements (cont’d) Other Than Full and Open Competition

– 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements

– 6.302-2 Unusual or compelling urgency– 6.302-3 Industrial mobilization; engineering,

developmental, or research capability; or expert services– 6.302-4 International agreement– 6.302-5 Authorized or required by statue– 6.302-6 National security– 6.302-7 Public interest

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FAR Part 6 - Competition Requirements (cont’d)

The Contracting Officer's certification can serve as approval of the justification for other than full and open competition for a proposed contract NOT exceeding:

a. $25,000.b. $650,000.c. $1,500,000.d. $5,500,000.

Answer: ____ Source: FAR 6.304(a)(1)

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FAR Part 7 - Acquisition Planning

Acquisition planning is defined as 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

Acquisition planning should begin as soon as the agency need is identified

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FAR Part 7 - Acquisition Planning (cont’d) FAR Subpart 7.2 Planning for the Purchase of

Supplies in Economic Quantities FAR Subpart 7.3 Contractor Verses

Government Performance FAR Subpart 7.4 Equipment Lease or

Purchase FAR Subpart 7.5 Inherently Governmental

Functions

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FAR Part 7 - Acquisition Planning (cont’d)

Acquisition planning should begin:a. when a purchase requisition is received.b. when a statement of work is received.c. as soon as the agency need is identified.d. within 30 days of receipt of the purchase requisition.

Answer: _____ Source: FAR 7.104 (a)

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FAR Part 8 - Required Sources of Supplies and Services FAR Subpart 8.1 Excess Personal Property

– First source of supply

FAR Subpart 8.4 Federal Supply Schedule– Also known as GSA schedules, Multiple Award Schedules,

GSA Advantage

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FAR Part 8 - Required Sources of Supplies and Services (cont’d) FAR Subpart 8.5 Acquisition of Helium

– Major purchases through Federal helium suppliers managed through the Bureau of Land Management

FAR Subpart 8.6 Acquisition from Federal Prison Industries, Inc.– Agencies are encouraged to purchase from UNICOR

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FAR Part 8 - Required Sources of Supplies and Services (cont’d) FAR Subpart 8.7 Acquisition From Nonprofit

Agencies Employing People Who Are Blind or Severely Disabled– Federal committee establishes the procurement list for purchase

from Ability One

FAR Subpart 8.8 Acquisitions of Printing and Related Supplies– Printing must be done by or through the Government Printing

Office (GPO)

FAR Subpart 8.11 Leasing of Motor Vehicles– Guidance for agencies when vehicles are not available through

GSA

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FAR Part 8 - Required Sources of Supplies and Services (cont’d)

Which of the following is the name of GSA’s electronic system that allows ordering activities to post requirements, obtain quotes, and issue orders electronically?

a. GSA Advantageb. GSA Stockc. e-Buyd. Customer Supply Center

Answer: _____ Source: FAR 8.402 (d)

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FAR Part 9 - Contractor Qualifications

FAR Subpart 9.1 Responsible Prospective Contractors– Adequate financial resources– Comply with delivery/performance schedules– Satisfactory past performance– Necessary organization, experience, accounting controls– Necessary production, construction, equipment, facilities– Otherwise qualified and eligible to receive award

FAR Subpart 9.104-2 Special standards– Special standards may be particularly desirable for

unusual expertise or specialized facilities needed for adequate contract performance

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FAR Part 9 - Contractor Qualifications (cont’d) FAR Subpart 9.3 First Article Testing and

Approval– Contractor has not previously furnished the item– Changes in processes or specifications– Production discontinued for an extended period– History of problems during product life– Product is described by a performance specification

FAR Subpart 9.4 Debarment, Suspension, and Ineligibility– Agencies shall solicit offers from, award contracts to,

and consent to subcontracts with responsible contractors only

– May continue contracts/subcontracts in existence at the time of debarment/ suspension

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FAR Part 9 - Contractor Qualifications (cont’d) Subpart 9.5 Organizational Conflicts of

Interest– Management support services– Consultant or other professional services– Assistance in technical evaluations– Engineering and technical direction – May create an actual or potential conflict of interest on

future acquisition

Contracting Officer is required to:– Identify/evaluate potential OCI– Avoid, neutralize or mitigate significant potential conflicts

before award

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FAR Part 9 - Contractor Qualifications (cont’d) FAR Subpart 9.6 Contractor Team

Arrangements– Teaming arrangements may be desirable and the

Government will recognize its validity provided the arrangements are identified and relationships fully disclosed in an offer or after submission before the arrangement becomes effective

– Does not limit the right to consent– Does not relieve the prime contractor responsibility– Does not limit policies on competitive contracting,

subcontracting, and component breakout after initial production or at any other time

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FAR Part 9 - Contractor Qualifications (cont’d)

Normally, testing and approval is appropriate in contracts for:

a. research and development.b. products requiring qualifications before award.c. products normally sold in commercial market.d. products requiring an approved first article to serve as

a manufacturing standard.

Answer: ______ Source: FAR 9.303

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FAR Part 16 - Types of Contracts

FAR Subpart 16.1 Selecting Contract Types– Sealed-bid contracts shall be FFP or FP-EPA– Cost-plus-percentage-of-cost are prohibited by law– Factors to consider:

• Price competition (price analysis/cost analysis)• Type & complexity of the requirement• Combining contract types• Urgency of requirement• Period of performance• Contractor technical capability and financial responsibility• Adequacy of contractor’s accounting system• Concurrent contracts• Extent and nature of proposed subcontracting

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FAR Part 16 - Types of Contracts (cont’d) FAR Subpart 16.1 Selecting Contract Types FAR Subpart 16.2 Fixed-Price Contracts FAR Subpart 16.3 Cost-Reimbursement

Contracts FAR Subpart 16.4 Incentive Contracts FAR Subpart 16.5 Indefinite-Delivery Contracts FAR Subpart 16.6 Time-and-Materials, Labor-

Hour, and Letter Contracts FAR Subpart 16.7 Agreements

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FAR Part 16 - Types of Contracts (cont’d)

Which of the following is a true contract type allowed by the FAR?

a. Cost-plus-allowable-fee contractb. Cost-plus-fixed-fee contractc. Cost-plus-a-percentage-of-cost contractd. Cost-plus-firm-fee contract

Answer: _____ Source(s): FAR 16.102, 16.306

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FAR Part 17 - Special Contracting Methods FAR Subpart 17.1 Multi-Year Contracting

– Used to acquire known requirements up to five years– Take advantage of lower costs, standardization,

continuity of production, annual startup costs, etc.

FAR Subpart 17.2 Options– Unilateral right of the buyer– Exercise of options is by written notice IAW terms of the

contract– May require some “new award” actions (EPLS, wage

determination, etc.)

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FAR Part 17 - Special Contracting Methods (cont’d) FAR Subpart 17.4 Leader Company

Contracting– Unique technique to develop additional sources

FAR Subpart 17.5 Interagency Acquisitions– Indefinite delivery contracts allowing other agencies to

place orders

FAR Subpart 17.6 Management and Operating Contracts– Operation, maintenance, or support, on behalf of a

Government-owned or controlled research, development, special production, or testing establishment

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FAR Part 17 - Special Contracting Methods (cont’d)

The Contracting Officer may exercise options only after determining that:

a. funds are available.b. funds are available and the requirements covered by the

option fulfills an existing Government need.c. market prices for supplies or services are likely to change

substantially.d. the requirements covered by the option fulfills an existing

Government need.

Answer: _____ Source(s): FAR 17.202(c)(2), 17.207(c)

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FAR Part 18 - Emergency Acquisitions

Flexibilities and threshold relaxation to support emergencies, contingency operations and major disasters

Examples– Increased ceilings for micro-purchase and Simplified

Acquisition Threshold– Expanded use of PL 85-804 and DPAS– Preference for local contractors

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FAR Part 18 - Emergency Acquisitions

Which acquisition flexibility requires an emergency declaration or designation of contingency operations?

a. Limiting sources and/or full and open competition when the requirement is urgent

b. Use of the Defense Priorities and Allocations System (DPAS).

c. $10,000 micro purchase for defense against or recovery from nuclear, biological, chemical, or radiological attack.

d. Use of the authority of Public Law 85-804 (concerning extraordinary contractual actions) to authorize advance payments to facilitate national defense).

Answer: _____ Source: FAR 18.201 46

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Section 2: FAR Parts 10-12

10 Market Research 11 Describing Agency Needs 12 Acquisition of Commercial Items

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FAR Part 10 - Market Research

When to conduct market research– Before developing new requirements– Before soliciting offers in excess of the SAT– Before soliciting offers less than the SAT and adequate

information is not available– Before soliciting offers that could lead to a bundled

contract– Before awarding a task order under an IDIQ in excess of

SAT– Ongoing basis to identify capabilities of small businesses

and new entrants

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FAR Part 10 - Market Research (cont’d) What to look for in market research

– Whether needs can be met by commercial items– Customary practices regarding modifications, warranty,

buyer financing, discounting, contract type, quality, distribution and support, size and status of potential sources

Techniques for conducting market research– Knowledgeable individuals, recent market research,

query government-side data, internet, catalogs, interactive meetings

– If research indicates no commercial or nondevelopmental items available, then reevaluate the need

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FAR Part 10 - Market Research (cont’d)If market research indicates that neither commercial items nor nondevelopmental items are available to satisfy agency needs, agencies:

a. must reevaluate the need and determine whether it can be restated to permit commercial or nondevelopmental items to satisfy them.

b. may set-aside the procurement.c. are authorized to pursue the acquisition as a restricted

procurement.d. shall solicit and award any resultant contract using FAR

Part 12 policies and procedures.

Answer: _____ Source(s): FAR 10.002(c), (d)

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FAR Part 11 - Describing Agency Needs Acquisition officials should state

requirements with respect to an acquisition of supplies and services in terms of:– Functions to be performed,– Performance required, or– Essential physical characteristics.

Define requirements in terms that enable and encourage offerors to supply commercial items, or to the extent that suitable commercial items are not available, nondevelopmental items.

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FAR Part 11 - Describing Agency Needs (cont’d) FAR Subpart 11.4 Delivery or Performance

Schedules– Realistic and clearly stated

FAR Subpart 11.5 Liquidated Damages– Use only when delivery is so critical that the agency will

suffer damage if delinquent and– Damage is difficult or impossible to estimate accurately

or prove.

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FAR Part 11 - Describing Agency Needs (cont’d) FAR Subpart 11.6 Defense Priorities and

Allocations (DPAS)– DX rated ahead of DO rated ahead of non-rated orders

FAR Subpart 11.7 Variation in Quantity– Fixed-price supply contracts where variations are a

normal commercial practice

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FAR Part 11 - Describing Agency Needs (cont’d)

Contract delivery or performance schedules may by expressed by:

a. the means determined by the requiring activity.b. specific number of days from the date of the contract

specific time for delivery after receipt by the buyer of each order under the contract.

c. any means the contractor specified in its bid or proposal.

Answer: _____ Source: FAR 11.403 (a)

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FAR Part 12 - Acquisition of Commercial Items Preference for commercial items (Title VIII of the

Federal Acquisition Streamlining Act of 1994) FAR Part 12 takes precedence over other parts of the

FAR (12.102 (c)) note: N/A below micro-purchase threshold and P-Card

Policy (12.101)– Conduct market research to meet needs with commercial items– Acquire commercial items or nondevelopmental items when

available– Require prime contractors and subcontractors to incorporate

commercial or nondevelopmental items as components of items supplied

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FAR Part 12 - Acquisition of Commercial Items (cont’d) Commercial item defined in FAR 2.101 as

both goods and services– 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 government 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; or• Any item that evolved from a commercial item and is not yet

available in the commercial market place.

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FAR Part 12 - Acquisition of Commercial Items (cont’d) Commercial item defined in FAR 2.101 as

both goods and services– Installation, maintenance, repair, training and other

services in connection with commercial items regardless of whether the services are provided by the same source or at the same time

– Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices

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FAR Part 12 - Acquisition of Commercial Items (cont’d) Commercial limited to Firm-Fixed-Price,

Fixed-Price-EPA and Time & Materials Commercial items shall rely on contractors’

existing quality assurance systems Commercial items limit the solicitation

provisions and contract clauses Commercial items use of commercial

warranties Past performance should be an important

element of every evaluation and contract award for commercial items

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FAR Part 12 - Acquisition of Commercial Items (cont’d)

Unless otherwise provided in section 12.207(b), agencies shall use which of the following contract type(s) for the acquisition of commercial items?

a. Any type of contract. b. Fixed-price contract with prospective price

redeterminationc. Firm-fixed-price or fixed-price with economic price

adjustment contracts.d. Cost-plus-incentive-fee contracts only.


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13 Simplified Acquisition Procedures 14 Sealed Bidding

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FAR Part 13 - Simplified Acquisition Procedures Use simplified acquisition procedures to the

maximum below Simplified Acquisition Threshold

Use of request for quotes and purchase orders Limitation of certain laws below the SAT Use of “bulk funding” Maintain competition Use of blanket purchase agreements, unpriced

purchase orders, imprest funds, purchase cards, and SF 44 (Purchase Order-Invoice-Voucher)

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FAR Part 13 - Simplified Acquisition Procedures (cont’d)

Imprest funds may be used for transactions up to:a. $25,000.b. $10,000.c. $1,000.d. $500.

Answer: _____ Source: FAR 13.305-3 (a)

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FAR Part 14 - Sealed Bidding

FAR Subpart 14.1, Use of Sealed Bidding– Method of contracting that employs competitive bids,

public bid opening, and awards– Award to the responsible bidder whose bid is responsive

to the IFB, and most advantageous to the Government considering only price and price-related factors included in the IFB

– Firm-Fixed-Price and Fixed-Price-EPA only

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FAR Part 14 - Sealed Bidding (cont’d)

FAR Subpart 14.2 Solicitation of Bids– Use Uniform Contract Format or simplified format– Allow reasonable amount of time for submission of bids

FAR Subpart 14.3 Submission of Bids– Must be received at the specified location no later than

the exact time set for bid opening– Modification or withdrawal of bids is allowed up to the

time of bid opening

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FAR Subpart 14.4 Opening of Bids and Award of Contract– Bid Opening Officer publically opens and reads aloud all

bids and records all bids– After all bids are opened, an award will be made to

lowest price responsive bid

FAR Subpart 14.5 Two-Step Sealed Bidding– Used to obtain the benefits of sealed bidding when

adequate specifications are not available– Step one; technical proposal evaluation– Step two; sealed bids from technically acceptable

offerors

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The first step of two-step bidding involves:a. price analysis only.b. technical analysis only.c. price and technical analysis.d. historical analysis.

Answer: ____ Source: FAR 14.501(a)

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Section 4: FAR Part 15 - Contracting By Negotiation FAR Subpart 15.1 Source Selection Processes

and Techniques– Best value continuum (price/technical/past performance)– Tradeoff process– Lowest price technically acceptable– Oral presentation

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FAR Part 15 - Contracting By Negotiation (cont’d) FAR Subpart 15.2 Solicitation & Receipt of

Proposals and Information– Exchanges before receipt of proposals– Request for proposals (Uniform Contract Format)

A. Solicitation/contract formB. Supplies or services and prices/costsC. Description/specifications/statement of workD. Packaging and markingE. Inspection and acceptanceF. Deliveries or performanceG. Contract administration dataH. Special contract requirements

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FAR Part 15 - Contracting By Negotiation (cont’d) FAR Subpart 15.2 Solicitation & Receipt of

Proposals and Information– Request for proposals (Uniform Contract Format)

continuedI. Contract clausesJ. List of attachmentsK. Representations, certification, and other statementsL. Instructions, conditions, and notices to offerorsM. Evaluation factors for award

Issuing Solicitations Amending Solicitations

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FAR Part 15 - Contracting By Negotiation (cont’d) FAR Subpart 15.3 Source Selection Select the proposal representing the best value. Source Selection Authority Evaluation factors

– Areas of importance– Supports meaningful comparison of proposals– Price/cost is ALWAYS evaluated!– Past performance

Exchanges with offerors after receipt of proposals– Communication to establish competitive range– Competitive range– Exchanges with offerors in the competitive range– Proposal revisions

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FAR Part 15 - Contracting By Negotiation (cont’d) FAR Subpart 15.4 Pricing Policy

– Certified cost or pricing data (when required & not)– Data other than certified cost or pricing data– Proposal analysis (price analysis vs. cost analysis)– Profit (structured approach to profit/fee objectives)– Certificate of current cost or pricing data– Defective certified cost or pricing data– Make or buy, forward pricing rate agreements, should-

cost review, estimating systems– Table 15-2, Instructions for submitting certified

cost/pricing data

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FAR Part 15 - Contracting By Negotiation (cont’d) Subpart 5.5 Preaward, Award, and Postaward

Notifications, Protests, and Mistakes – Preaward/postaward notification to unsuccessful offerors– Preaward/postaward debriefing of offerors– Protests against award– Discovery of mistakes

Subpart 5.6 Unsolicited Proposals– Acceptance and negotiation of unsolicited proposals– Use and disclosure of data

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FAR Part 15 - Contracting By Negotiation (cont’d)

Which statement about proposal revisions is true? a. A Contracting Officer may consider a revision to a proposal

that has been eliminated or otherwise removed from the competitive range.

b. Final proposal revisions may be oral.c. The Contracting Officer may request or allow proposal

revisions to clarify and document understandings reached during negotiations.

d. Cut off dates for submission of final proposal revisions are negotiated with each offeror.

Answer: _____ Source(s): FAR 15.307(a), (b)

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Section 5: FAR Parts 19, 22-25, 27-39

19 Small Business 22 Application of Labor Laws to Government

Acquisitions 23 Environment, Energy, and Water Efficiency,

Renergy Technologies, Occupational Safety, and Drug-Free Workplace

24 Protection of Privacy and Freedom of Information 25 Foreign Acquisition 27 Patents, Data, and Copyrights 28 Bonds and Insurance 29 Taxes

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Section 5: FAR Parts 19, 22-25, 27-39 (cont’d) 30 The Cost Accounting Standards (CAS)

Administration 31 Contract Cost Principles and Procedures 32 Contract Financing 33 Protests, Disputes, and Appeals 34 Major System Acquisition 35 Research and Development Contracting 36 Construction and Architect-Engineer Contracts 37 Service Contracting 38 Federal Supply Schedule Contracting 39 Acquisition of Information technology

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FAR Part 19 - Small Business Programs FAR Subpart 19.3 Determination of Small

Business Status for Small Business Programs– Representations and certifications, ORCA, CCR– North American Industry Classification System (NAICS)

FAR Subpart 19.5 Set-Asides for Small Business– Small business set-aside may be open to all small

businesses– Set-aside may be a single acquisition or class of

acquisitions (total or partial)– Market research shall be used to document why a set-

aside is inappropriate

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FAR Part 19 - Small Business Programs (cont’d) FAR Subpart 19.7 Small Business

Subcontracting Program– Individual Contract Plan; specific contract, entire contract

period (including options), based on planned first-tier subcontracting for the contract

– Master plan; contains all required elements of an individual contract plan except goals

– Commercial plan; applies to entire production of commercial items during the offeror’s fiscal year

– Subcontracting plan shall be incorporated in the contract award

– Reporting through the Electronic Subcontract Reporting System (eSRS)

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FAR Part 19 - Small Business Programs (cont’d) Small Business Categories

– Small Business– Small Disadvantaged Business– Woman-owned Small Business– Economically Disadvantaged Women-Owned Business– Veteran-Owned Small Business– Service-Disabled Veteran-Owned Small Business– HUBZone Small Business Concern– 8(a) Program

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FAR Part 19 - Small Business Programs (cont’d)

In making an award that requires a subcontracting plan, the CO must:

a. assure that a subcontract plan has been requested.b. in undefinitized instruments, require a draft plan within 90

days after award or before definitization, whichever occurs first.

c. ensure that an acceptable plan is made a material part of the contract.

d. delay the award if the SBA representative does not complete their review within 90 days.

Answer: _____ Source(s): FAR 19.705-5 79

NCMA Proprietary

FAR Part 22 - Application of Labor Laws to Government Acquisitions FAR Subpart 22.1 General

– Agencies are required to maintain sound relations with industry and labor and not undertake the conciliation, mediation or arbitration of labor disputes

– Agencies shall cooperate and encourage contractors to cooperate with Federal and State agencies responsible for enforcing labor requirements

Labor laws and Executive Orders covered in FAR Part 22– Contract Work Hours and Safety Standards Act– Davis-Bacon Act (wage determination)– Use of Project Labor Agreements for Federal Construction

Projects 80

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FAR Part 22 - Application of Labor Laws to Government Acquisitions (cont’d) Labor laws and Executive Orders Covered in

FAR Part 22 (cont’d)– Walsh-Healey Public Contracts Act – Equal Employment Opportunity– Nondiscrimination Because of Age– Service Contract Act (wage determination)– Equal Opportunity for Veterans– Employment of Workers with Disabilities

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FAR Part 22 - Application of Labor Laws to Government Acquisitions (cont’d) Labor laws and Executive Orders covered in

FAR Part 22 (cont’d)– Prohibition of Acquisition of Products Produced by Forced

or Indentured Child Labor– Notification of Employee rights Under the National Labor

Relations Act– Combatting Trafficking in Persons– Employment Eligibility Verification (e-Verify)

82

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FAR Part 22 - Application of Labor Laws to Government Acquisitions (cont’d)All of the following are true concerning Project Wage Determinations EXCEPT:

a. They are issued at the specific request of a contracting agency.

b. They are effective for 180 calendar days from the date of determination.

c. They are used only when no general wage determination applies.

d. They apply only to the contracts for which they were issued.

Answer: _____ Source: FAR 22.404-1(b)

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FAR Part 23 - Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace

Sustainable Acquisition Policy FAR Subpart 23.2 Energy & Water Efficiency and

Renewable energy– FAR Subpart 23.4 Use of Recovered Materials and Biobased

Products– FAR Subpart 23.5 Drug-Free Workplace– FAR Subpart 23.7 Contracting for Environmentally Preferable

Products and Services– FAR Subpart 23.8 Ozone-Depleting Substances– FAR Subpart 23.9 Contractor Compliance with Environmental

Management Systems

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FAR Part 23 - Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace (cont’d)FAR Part 23 prescribes acquisition policies and procedures supporting the government’s program for:

a. ensuring a smoke-free workplace.b. protecting and improving the quality of work and home life.c. recycling commercial newspapers.d. energy conservation, identification of hazardous materials, and the use

of recovered materials.


85

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FAR Part 24 - Protection of Privacy and Freedom of Information FAR Subpart 24.1 Protection of Individual

Privacy– Application of the Privacy Action of 1974 requirements to

contracts/subcontracts involving design, development, or operation of a system of records on individuals

FAR Subpart 24.2 Freedom of Information Act– Contracting Officer responsibilities for release of

information under FOIA and protection of exempted from release information (classified, proprietary proposal information, personal, confidential commercial or financial information, etc.)

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FAR Part 24 - Protection of Privacy and Freedom of Information

The Freedom of Information Act provides that information is to be made available to the public:

a. by publication in the Washington Post.b. within 72 hours of the initial request.c. seven years after the contract is closed.d. upon request, providing a copy of a reasonably

described record.


NCMA Proprietary

FAR Part 25 - Foreign Acquisition

FAR Subpart 25.1 Buy American Act – Supplies– Domestic end products

FAR Subpart 25.2 Buy American Act – Construction Materials– Domestic construction materials

FAR Subpart 25.4 Trade Agreements– Applicability of agreements on acquisitions

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FAR Part 25 - Foreign Acquisition (cont’d)For manufactured noncommercial end products, the test to determine the country of origin under the Buy American Act is:

a. a two-part test to define a foreign end product that is manufactured in a foreign country and the foreign cost of the components exceeds 50%.

b. a two-part test to define a domestic end product.c. a two-part test to determine both a foreign and domestic

end product. d. a two-part test to define a domestic end product that is

manufactured in the United States and the domestic cost of the components exceeds 50%.


NCMA Proprietary

FAR Part 27 - Patents, Data, and Copyrights FAR Subpart 27.1 The Government

encourages the maximum practical commercial use of inventions made under government contracts

FAR Subpart 27.2 Patent and Copyright infringement liability

FAR Subpart 27.3 Patent Rights Under Government Contracts

FAR Subpart 27.4 Rights in Data and Copyrights

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FAR Part 27 - Patents, Data, and Copyrights (cont’d)Which of the following statements is NOT true?

a. The government encourages the maximum practical commercial use of inventions made under government contracts.

b. The government recognizes rights in data developed at private expense, and limits its demands for delivery of that data.

c. The government requires that contractors obtain permission from copyright owners before including copyrighted works owned by others in data to be delivered to the government.

d. Generally, the government will refuse to award a contract on the grounds that the prospective contractor may infringe a patent.


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FAR Part 28 - Bonds and Insurance

FAR Subpart 28.1 Bonds and Other Financial Protections– Bid, performance and payment bonds

FAR Subpart 28.2 Sureties and Other Security for Bonds

FAR Subpart 28.3 Insurance– Under cost-reimbursement contracts– Workers’ compensation– General liability– Automobile liability– Aircraft public and passenger liability (performance involves

use of aircraft)– Vessel liability (performance involves use of vessels)

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FAR Part 28 - Bonds and Insurance

Performance and payment bonds are required or may be required for:

a. construction contracts and services and supply contracts exceeding $2,000.

b. construction contracts exceeding $150,000.c. any contract for services.d. construction contracts exceeding $150,000 and services

and supply contracts exceeding the simplified acquisition threshold when necessary to protect the government’s interests.

Answer: _____ Sources: FAR 28.102-1, 28.103-1 (a) & 28.103-2 (a)

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FAR Part 29 - Taxes

FAR Subpart 29.1 Resolving Tax Problems– Contracting Officers should request assistance from agency

designated legal counsel– When constitutional immunity from State or local taxation are

at issue, discourage contractors from negotiating independently

FAR Subpart 29.2 Federal Excise Taxes– Solicit prices on a tax-exclusive basis when exempt and on a

tax-inclusive basis when no exemption exists

FAR Subpart 29.3 State and Local Taxes– Generally, purchases and leases made by the Federal

Government are immune from tax– Purchases by contractors/subcontractors, the right to

exemption may not rest with the Government’s immunity94

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FAR Part 29 – Taxes (cont’d)

Generally, purchases and leases made by the Federal Government are:

a. subject to state and local taxation.b. immune from state and local taxation.c. eligible for state and local tax rebates.d. subject to taxation only in states with Value Added Tax.


95

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FAR Part 30 - The Cost Accounting Standards (CAS) Administration FAR Subpart 30.2 CAS Program

Requirements– Applicability, solicitation provisions, contract clauses– Disclosure Statements and cognizant federal agency

responsibilities

FAR Subpart 30.6 CAS Administration– Changes in disclosed or established cost accounting

practices– Subcontract administration

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FAR Part 30 - The Cost Accounting Standards (CAS) Administration

Cost Accounting Standards Board rules and regulations apply to:

a. negotiated contracts and subcontracts.b. sealed bid contracts.c. contracts with small business concerns.d. bridge contracts.


97

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FAR Part 31 - Contract Cost Principles and Procedures FAR Subpart 31.1 Applicability

– Applicability by contract type

FAR Subpart 31.2 Contracts with Commercial Organizations– Allowability, reasonableness & allocability– Direct cost, indirect cost– Selected cost (cost principles)

FAR Subpart 31.3 Contracts with Educational Institutions

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FAR Part 31 - Contract Cost Principles and Procedures (cont’d) FAR Subpart 31.3 Contracts with Educational

Institutions– Office of Management and Budget (OMB) Circular No. A-

21, Cost Principles for Educational Institutions

FAR Subpart 31.6 Contracts with State, Local, and Federally Recognized Indian Tribal Governments– Office of Management and Budget (OMB) Circular No. A-

87, Cost Principles for State and Local Governments

99

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FAR Part 31 - Contract Cost Principles and Procedures (cont’d)

Which of the following statements about advance agreements is NOT true?

a. Advance agreements may only be negotiated with a particular contractor for a single contract.

b. Advance agreements may be negotiated either before or during a contract.

c. The agreements must be in writing.d. The agreements must be incorporated into applicable

current and future contracts.


100

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FAR Part 32 - Contract Financing

FAR Subpart 32.1 Non-Commercial Item Purchase Financing– Methods and practices

FAR Subpart 32.2 Commercial Item Purchase Financing– Methods and practices

FAR Subpart 32.3 Loan Guarantees for Defense Production– Through Federal Reserve Banks

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FAR Part 32 - Contract Financing (cont’d) FAR Subpart 32.4 Advance Payments for

Non-Commercial Items– Least preferred method of contract financing

FAR Subpart 32.5 Progress Payments Based on Costs– Customary progress payments 80% (large business) 85%

(small business)

FAR Subpart 32.6 Contract Debts– Debt collection and demand for payment

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FAR Part 32 - Contract Financing (cont’d) FAR Subpart 32.7 Contract Funding

– Anti-Deficiency Act

FAR Subpart 32.8 Assignment of Claims– Assignment of payment over from contractor to bank,

trust or other financial institution

FAR Subpart 32.9 Prompt Payment– Payment within 30 days of receipt of a proper invoice and

satisfactory contract performance

FAR Subpart 32.10 Performance-Based Payments

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FAR Part 32 - Contract Financing (cont’d) FAR Subpart 32.10 Performance-Based

Payments– Payments made on agreed to milestones or measureable

criterion of performance

FAR Subpart 32.11 Electronic Funds Transfer– Preferred method of payment on government contracts

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FAR Part 32 - Contract Financing (cont’d)

Performance-based payments shall be used only:

a. when the Contracting Officer and the offeror are able to agree on the performance-based payment terms.

b. when the contract is a fixed-price type contract. c. when the contract does not provide for other methods

of contract financing.d. when all of the above conditions are met.

Answer: ____ Source: FAR 32.1003

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FAR Part 33 Protests, Disputes, and Appeals FAR Subpart 33.1 Protests

– Protests to GAO on solicitations or awards by interested parties

FAR Subpart 33.2 Disputes and Appeals– Contract Disputes Act of 1978– Process and remedies under the Act

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FAR Part 33 Protests, Disputes, and Appeals (cont’d)

Protests may be filed with:a. either the agency or the Government Accountability

Office.b. the agency, the GAO or the General Services Board of

Contract Appeals (ADP acquisitions).c. either the contracting officer or the U.S. Court of Federal

Claims.d. small claims court for awards under the Simplified

Acquisition Threshold.


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FAR Part 34 - Major System Acquisition FAR Subpart 3.002 Policy

– Promote innovation and full and open competition– Express needs in terms of mission and not specified

systems to satisfy needs– Focus resources on activities conducted in the initial

stage of major programs– Sustain effective competition between alternative system

concepts and sources for as long as it is beneficial

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FAR Part 34 - Major System Acquisition (cont’d) FAR Subpart 34.005 General requirements

– Effective competition– Mission-oriented solicitation– Concept exploration contracts– Demonstration contracts– Full-scale development contracts– Full production

FAR Subpart 34.1 Testing, Qualification and Use Of Industrial Resources Developed Under Title III, Defense Production Act– Government shall pay for testing and qualification for use

of resources covered under the Act109

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FAR Part 34 - Major System Acquisition (cont’d) FAR Subpart 34.2 Earned Value Management

System– Required for major system acquisition, IAW OMB Circular

A-11– System must comply with ANSI Standard-748, Earned

Value Management Systems– System must pass an Integrated Baseline Review

covering the ability to project and attain cost objectives recognizing the relationship between budget, funding, schedule and work performed

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FAR Part 34 - Major System Acquisition (cont’d)

The acquisition strategy tailored to a particular major system acquisition shall be developed by the:

a. Contracting Officer.b. program manager.c. head of a contracting activity.d. acquisition manager.


NCMA Proprietary

FAR Part 35 - Research and Development Contracting General guidance on soliciting and awarding

R&D Guidance on contracting for R&D with

educational and nonprofit organizations

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FAR Part 35 - Research and Development Contracting

The responsibility for selecting the appropriate type of contract for an R&D requirement belongs to:

a. program manager.b. contracting officer.c. acquisition manager.d. R&D chief.

Answer: _____ Source: FAR 35.006 (b)

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FAR Part 36 - Construction and Architect-Engineering Contracts FAR Subpart 36.1 Policy

– Construction – sealed bid procedures– Architect-engineering (A&E) services – negotiation– Design/bid/build – two-phase negotiation

FAR Subpart 36.2 Construction– Detailed specifications using recognized government,

industry and technical society standards– A&E (affiliates or subsidiaries) responsible for design is

ineligible for award– Fixed-price contracts (lump-sum, unit price, or FFP/EPA)

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FAR Part 36 - Construction and Architect-Engineering Contracts (cont’d) FAR Subpart 36.3 two-phase design build

selection– Phase One

• technical evaluation of prospective offerors excluding cost or price related factors

• Purpose is to identify offerors for submission of Phase Two proposals (max 5 offerors)

– Phase Two FAR 15 based best value proposals• Submission of technical and price proposals• Competitive negotiation

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FAR Part 36 - Construction and Architect-Engineering Contracts (cont’d) FAR Subpart 36.6 Architect-Engineering

Services– Competition under the Brooks Architect-Engineers Act

(40 U.S.C. 1101)– Negotiations begin with the most technically preferred

firm– Fee limited to 6% of estimated cost of construction

excluding fees

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FAR Part 36 - Construction and Architect-Engineering Contracts (cont’d)The methodologies Contracting Officers shall use in acquiring construction contracts and architect-engineer services, respectively are:

a. negotiation and sealed bids.b. sealed bids and negotiation.c. negotiation and negotiation.d. sealed bids and barter.


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FAR Part 37 - Service Contracting

FAR Subpart 37.1 Service Contracts– Nonpersonal services are not subject to supervision and

control usually prevailing in relationships between the government and its employees

– Personal service is characterized by an employer/employee relationship normally obtained through direct hire

– Obtaining personal services by contract circumvents federal law unless authorized by Congress

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FAR Part 37 - Service Contracting (cont’d) FAR Subpart 37.2 Advisory & Assistance

Services– Considered a legitimate way to improve government

services and operations

FAR Subpart 37.3 Dismantling, Demolition, or Removal of Improvements– Subject to either Service Contract Act or the Davis-Bacon

Act

FAR Subpart 37.6 Performance-Based Acquisition– A performance work statement (PWS) may be prepared

by the government or result from a statement of objectives (SOO) prepared by the government where the offeror proposes a PWS

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FAR Part 37 - Service Contracting (cont’d)

Which of the following is NOT a characteristic of performance-based acquisitions?

a. Performance-based acquisitions require the contracting officer (CO) to provide the plan on how the vendor is to deliver the solution.

b. Measurable performance standards give both parties a method to assess results

c. Specifications are not used. d. Performance-based acquisition offers incentives.

Answer: _____ Source: FAR 37.601(b)

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FAR Part 38 - Federal Supply Schedule Contracting FAR Subpart 38.1 General

– Simplified process of acquiring commercial supplies and services in varying quantities while obtaining volume discounts

– Indefinite-delivery contracts are awarded using competitive procedures

– GSA awards Federal Supply Schedule contracts and may authorize other agencies to award schedule contracts

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FAR Part 38 - Federal Supply Schedule Contracting (cont’d)

The Federal Supply Schedule program provides Federal agencies:

a. sources for meeting repetitive requirements on a scheduled basis.

b. a simplified process for obtaining commercial supplies and services at prices associated with volume buying.

c. a mandatory source for frequently used supplies and services at prices associated with volume buying.

d. a simplified process for obtaining complex services that the requiring agency does not have the expertise to buy.


NCMA Proprietary

FAR Part 39 - Acquisition of Information Technology FAR Subpart 39.1 General

– Risk management (schedule, technical obsolescence, cost, contract type, technical feasibility, dependencies between projects/systems, funding, program management

– Modular contracting– Information technology services– Privacy– Year 2000 compliance (Y2K)

FAR Subpart 39.2 Electronic and information technology– Access to and use by individuals with disabilities– Exceptions to disability requirements

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FAR Part 39 - Acquisition of Information Technology (cont’d)

Contracts to acquire information technology systems in successive, interoperable increments are known as:

a. multi-year.b. successive.c. modular.d. alpha.


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42 Contract Administration and Audit Services 43 Contract Modifications 44 Subcontracting Policies and Procedures 45 Government Property 46 Quality Assurance 47 Transportation 48 Value Engineering 49 Termination of Contracts 50 Extraordinary Contractual Actions and The

Safety Act 51 Use of Government Sources by Contractors

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FAR Part 42 - Contract Administration and Audit Services Subpart 42.1 Contract Audit Services

– DCAA for contractors other than educational institutions and nonprofit organizations (OMB Circular A-133, Audits of Institutions of Higher Education and other Non-Profit Institutions)

Subpart 42.2 Contract Administration Services– Delegation of contract administration or specialized

support services to the cognizant CAO listed in the Federal Directory of Contract Administration Services Components (maintained by the Defense Contract Management Agency)

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FAR Part 42 - Contract Administration and Audit Services (cont’d) FAR Subpart 42.3 Contract Administration

Office Functions– 42.302 (a) List of functions normally delegated to CAO

(71 functions)– 42.302 (b) List of functions performed only if specifically

delegated (11 functions)

FAR Subpart 42.5 Postaward Orientation– Guidelines and selecting contracts and conducting

orientations with contractor and government representatives

FAR Subpart 42.6 Corporate Administrative Contracting Officer

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FAR Part 42 - Contract Administration and Audit Services (cont’d) FAR Subpart 42.6 Corporate Administrative

Contracting Officer (CACO)– Corporate-wide policies affecting more than one ACO– CACOs are listed in the Directory of Contract

Administration Services Components

FAR Subpart 42.7 Indirect Cost Rates– Certification of indirect rates– Billing rates– Final indirect cost rates

• Contracting Officer determination• Auditor determination

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FAR Part 42 - Contract Administration and Audit Services (cont’d) FAR Subpart 42.8 Disallowance of Costs

– Notice of intent to disallow cost– Disallowing costs after incurrence

FAR Subpart 42.9 Bankruptcy– Protect the Government’s interests

FAR Subpart 42.11 Production Surveillance and Reporting

FAR Subpart 42.12 Novation and Change-of-Name Agreements

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FAR Part 42 - Contract Administration and Audit Services (cont’d) FAR Subpart 42.12 Suspension of Work, Stop-Work

Orders, and Government Delay of Work– Terminate, cancel stop-work, extend period of stop-work– Government delay of work

FAR Subpart 42.15 Contractor Performance Information– CPARS

FAR Subpart 42.16 Small Business Contract Administration– CO make every reasonable effort to respond in writing within 30

days

FAR Subpart 42.17 Forward Pricing Rate Agreements– FPRA vs. FPRR

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FAR Part 42 - Contract Administration and Audit Services (cont’d)

Which of these is NOT a normal function of a contract administration office?

a. Review the contractor's compensation structure and insurance plans.

b. Conduct post-award orientation conferences.c. Assist the contractor in management of its

subcontractors.d. Determine the contractor's compliance with Cost

Accounting Standards.

Answer: ____ Sources: FAR 42.302(a)(1-70)

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FAR Part 43 - Contract Modifications

FAR Subpart 43.1 General– Only Contracting Officers are empowered to execute

contract changes– Bilateral modifications vs. unilateral modifications– Availability of funds

FAR Subpart 43.2 Change Orders– FAR 52.243-1, Changes-Fixed Price (AUG1987), CO

authority to make unilateral changes with the scope of the contract

– FAR 52.243-6, Change Order Accounting (APR 1984), accounting for cost of changes

– Unpriced change order require a bilateral supplemental agreement

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FAR Part 43 - Contract Modifications (cont’d)

Supplemental agreements are used to:a. issue change orders.b. issue termination notices.c. definitize letter contracts.d. make administrative changes.

Answer: ____ Source: FAR 43.103a

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FAR Part 44 - Subcontracting Policies and Procedures FAR Subpart 44.2 Consent to Subcontracts

– Consent requirements– Advanced notification requirements

FAR Subpart 44.3 Contractors’ Purchasing Systems Reviews– When to perform CPSR– Granting, withholding, or withdrawing approval– Subcontracts for commercial items and commercial

components

FAR 52.244-6 Subcontracts for commercial items (DEC 2010)

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FAR Part 44 - Subcontracting Policies and Procedures (cont’d)

If a contractor has an approved purchasing system,

a. consent is required for subcontracts identified in the subcontracts clause of the contract.

b. purchases below the Simplified Acquisition Threshold must be reviewed by the Contracting Officer.

c. only items on the Government Qualified Products List may be used.

d. F.O.B. origin may not be used.

Answer: _____ Source: FAR 44.201-1(a)

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FAR Part 45 - Government Property

FAR Subpart 45.1 General– Government-furnished property– Contractor-acquired property– Contractors generally not required to establish property

management systems that are separate from contractor established system to manage contractor-owned property

– FAR 52.245-1, Government Property (AUG 2010)– FAR 52.245-1, Alternate I (AUG 2010)

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FAR Part 45 - Government Property (cont’d)

Which of the following is NOT defined as Government Property?

a. Government-furnished propertyb. Contractor-acquired propertyc. Property owned by or leased to the Government or

acquired by the Government under the terms of the contract

d. Surplus property


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FAR Part 46 - Quality Assurance

FAR Subpart 46.2 Contract Quality Requirements– Commercial items, reliance on contractor inspection,

standard inspection, higher-level quality requirements

FAR Subpart 46.4 Government Contract Quality– Source, destination, simplified acquisitions

FAR Subpart 46.5 Acceptance– Acceptance, Certificate of Conformance, transfer of title

and risk of loss

FAR Subpart 46.7 Warranties– Use of warranties and warranty terms

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FAR Part 46 - Quality Assurance

The inclusion of a warranty in federal government contracts is:

a. forbidden by statute.b. allowed only in fixed-price contracts.c. allowed in all types of contracts.d. not required.


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FAR Part 47 - Transportation

FAR Subpart 47.2 Contracts for Transportation services

FAR Subpart 47.3 Transportation in Supply Contracts

FAR Subpart 47.4 Air Transportation by U.S.-Flag Carriers

FAR Subpart 47.5 Ocean Transportation by U.S.-Flag Vessels

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FAR Part 47 – Transportation (cont’d)

A person holding himself or herself out to the general public to provide transportation for compensation is a:

a. Contract carrier.b. Universal carrier.c. Common carrier.d. Commercial carrier.


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FAR Part 48 – Value Engineering

FAR 48.1 Policies and Procedures– Processing of Value Engineering Change Proposals (VECP)

FAR 48.2 Contract Clauses– Clauses for supply, services and construction contracts

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FAR Part 48 – Value Engineering

There are two value engineering approaches, the

a. Contractor approach and the government program.b. Government approach and the contractor program.c. Incentive approach and the mandatory program.d. Mandatory approach and the incentive program.


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FAR Part 49 - Termination of Contracts

Subpart 49.1 General Principles – The government reserves the right to termination (in

whole or in part) a contract without breach of contract

Subpart 49.2 Termination for Convenience (fixed-price)– Terminate without cause BUT contractor is entitled to an

equitable adjustment which will reflect in a supplemental agreement establishing the final contract price

Subpart 49.3 Reimbursement Contracts Termination for Convenience– Settlement of costs (including rate adjustments) and final

fee

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FAR Part 49 - Termination of Contracts (cont’d) FAR Subpart 49.4 Termination for Default

(fixed-price)– Under default, the government is not liable for contractor

cost of undelivered work

FAR Subpart 49.5 Contract Termination Clauses– Must be present in the contract

FAR Subpart 49.6 Contract Termination Forms and Formats– Important to follow since terminations can lead to

litigation

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FAR Part 49 - Termination of Contracts (cont’d)

A contract should not normally be terminated for convenience but should be permitted to run to completion when the price of the undelivered balance of the contract is less than:

a. $25,000.b. $1,000.c. $5,000.d. $10,000.

Answer: ____ Source: FAR 49.101(c)

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FAR Part 50 - Extraordinary Contractual Actions and The Safety Act FAR Subpart 50.1 Extraordinary Contractual

Actions– Public Law 85-804– Executive Order 10789

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FAR Part 50 - Extraordinary Contractual Actions and The Safety Act (cont’d)Authority for entering into or modifying contracts in order to facilitate the national defense under extraordinary emergency conditions is granted by:

a. Public Law 85-804.b. the head of the contracting activity.c. the Secretary of Defense.d. A level above the contracting officer.


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FAR Part 51 - Use of Government Sources by Contractors FAR Subpart 51.1 Contractor use of

Government Supply Sources– FAR 52.251-1, Government supply sources (AUG 2010)– Contracting Officer authorization letter

FAR Subpart 51.2 Contractor Use of Interagency Fleet Management System (IFMS) Vehicles– FAR 52.251-2 (JAN 1991), Interagency fleet management

system vehicles and related services– Contracting Officer authorization to contact GSA regional

fleet manager

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FAR Part 51 - Use of Government Sources by Contractors (cont’d)

Which of the following is an example of a contract under which contractors could be authorized to use Government supply sources?

a. Government firm-fixed price contractb. Contract under the Javits-Wagner-O’Day Actc. A negotiated contract with a contractor that has no

other Government cost-reimbursement type contractsd. Time and materials contracts for repair of commercial

equipment


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FAR Part 52-Solicitation Provisions and Contract Clauses While there are no questions on FAR 52

itself, there may be answers which refer to a clause that was prescribed by another FAR Part.

For example: The clause at FAR 52.212-4, “Contract Terms and Conditions-Commercial Items” is prescribed in FAR Part 12.

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Multiple-Choice Questions

Stem– Read the FULL statement to understand what the

question is asking

Key– The correct answer

Distracters– Plausible answers to those who cannot ascertain the

correct answer

152

NCMA Proprietary CFCM Exam Chapter Study Group Guide 2012-2013 Prepared by Jack Hott, CPCM, Fellow...

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