1
Q
FAR 11.002(a), What is the GVT’s policy on describing agency needs:
A
- Promote full & open competition
- minimize restrictive provisions
- state requirements in terms of function, performance, & essential physical characteristics
2
Q
What is a needs assessment?
A
Identifies and characterized gaps in existing capabilities that are impediments to achieving the mission area objectives.
Conducted by the user community to determine the capabilities needed to accomplish their operational task.
3
Q
Conducting Requirements Analysis means:
A
- Conducting a systematic review of your requirement given the guidance captured from stakeholders during the planning phase
- describing the work in terms of required results
- identifying the essential processes and outputs or results required
4
Q
The Service Acquisition Process is composed of ______ phases and _____ steps
A
three phases and seven steps
5
Q
Three phases of the Service Acquisition Process:
A
Planning phase: lays the foundation for action - gets support from leadership
- Form the team
- Review current strategy
- Market research
Development phase: uses the requirements roadmap process to define high level objectives and tasks, standards, allowable variations, and methods of inspection - after this step you are in the best position to develop a PWS and QASP
- Requirements definition
- Acq strategy
Execution phase: create/execute a solicitation that formally communicates to industry your requirements and strategy
- Execute strategy
- Performance management
6
Q
When should acquisition planning begin?
A
As soon as the agency need is identified, preferably well in advance of the fiscal year in which contract award or order placement is necessary
7
Q
The acq team should verify the continued need for the identified output by asking questions such as:
A
- who needs the output or result?
- why is the output needed?
- what is done with it?
- what occurs as a result?
- is it worth the effort and cost?
- would a different output be preferable?
8
Q
KO’s shall provide property to KTR’s only when it is clearly demonstrated to:
A
- To be in the GVTR’s best interest
- That the overall benefit to the acq significantly outweighs the increased cost of administration, including ultimate property disposal
- that providing the property does not substantially increase the GVT’s assumption of risk
- That GVT requirements cannot otherwise be met
9
Q
GVT’s policy on conducting market research
A
- before developing new requirements
- before soliciting offers for acquisitions above SAT (or below SAT if adequate information is not available and cost is justified)
- before soliciting offers that could lead to a bundled contract
- on an on-going basis to identify capabilities for meeting contingency contracting requirements and defense against nuclear, biological, chemical or radiological attack
10
Q
When is market research done (strategic vs tactical)
A
strategic market research (market surveillance) involves a broad study of the market and sources - conducted continuously
tactical market research (market investigation) focuses on answering specific questions about products, services, or capabilities in the market - conducted at specific points
11
Q
On larger acq teams, the following people may be involved in MR:
A
- technical specialist
- user
- logistical specialist
- testing specialist
- cost analyst
- KO
- legal counsel
12
Q
Why the preference for commerciality?
A
- we don’t want to pay the cost and time required to develop a new item to meet the governments needs
- commercial items tend to have competitive pricing
13
Q
what are some effective methods of industry engagement?
A
- sources sought solicitation
- RFI
- pre-solicitation conference or industry day
- one on one interactions
- solicitation of feedback on draft RFP
14
Q
Which FAR parts covers contract types?
A
- FAR 13 - simplified acq procedures
- FAR 14 - sealed bidding
- FAR 15 - contract by negotiation
***FAR 12 - commercial is used in conjunction w/ FAR 13, 14, and 15
15
Q
FAR Part 12
A
acquisition of commercial items
16
Q
Commercial product means:
A
- a product other that real property, that is a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes and has been:
—- has been sold, leased, or licensed to the general public; or
—- has been offered for sale, lease, or license to the general public - a product that evolved from a product described in paragraph (1) that is not yet available on the commercial marketplace but will be available in time to satisfy the delivery requirements under a GVT solicitation
- A product that would satisfy a criterion expressed in 1. and 2. except for:
- modifications of a type customarily available in the commercial marketplace; or
- minor modifications of a type not customarily available in the commercial marketplace made to met the GVT’s requirements - any combination of products meeting the requirements of para 1., 2., or 3
- a product, or combination of products, referred to in para’s 1 - 4
17
Q
A commercial service means:
A
- installtion services, maintenance services, repair services, training services, and other services if -
- such services are procured for support of a commercial product - services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices
18
Q
FAR part 12 does not apply to the acq of commercial items that:
A
- are at or below the micro purchase threshold
- using SF 44
- using the imprest fund
- using GPC as a method of purchase rather than only as a method of payment
- directly from another federal agency
19
Q
Contract types using FAR Part 12:
A
- FFP or fixed price with economic price adjustment for the acquisition of commercial items
- a time and materials contract or labor hour contract may be used for the acq of commercial services when the service is acquired under a contract award using:
— competitive procedures
— procedures other than full and open competition
— fair opportunity procedures in FAR 16.505
20
Q
If using a T&M contract for FAR Part 12 commercial services the KO shall:
A
- Execute a D&F for the contract that no ther contract type is suitable
- include a ceiling price in the contract or order that the contractor exceeds at its own risk
21
Q
FAR Part 13
A
Simplified Acq Procedures
22
Q
FAR Part 13.0002, the use of simplified acquisition procedures allows us to:
A
- reduce administrative costs
- improve opportunities for small business concerns
- promote efficiency and economy in contracting
- avoid unnecessary burdens for agencies and contractors
23
Q
Agencies should use _________ to the maximum extent practicable for all purchases of supplies or services not exceeding SAT (including purchases at or below the micro purchase threshold)
A
simplified acquisition procedures
24
Q
Purchase orders are mostly issued on a _______ price basis
A
fixed price basis
25
KO's shall evaluate quotations or offers on the basis established in the _________________.
solicitation
26
Which subpart of FAR par 13 provides special authority for acquisitions of commercial products and services exceeding SAT but not exceeding $7.5M?
Subpart 13.5
27
FAR Part 14
sealed bidding
28
Sealed bidding is:
a method of contracting that employs competitive bids, public openings of bids, and awards.
29
Steps in sealed bidding:
1. preparing an invitation for bids
2. publicizing the invitation for bids
3. submission of bids
4. evaluation of bids
5. awarding the contract
30
Sealed bidding can only be used with what contract types:
FFP and FP w/ economic price adjustment contracts
31
FAR 6.401(a) tells us the KO's shall solicit sealed bids if:
1. time permits the solicitation, submission, and evaluation of sealed bids
2. the award will be made on the basis of price and other price-related factors
3. it is not necessary to conduct discussions with the responding offerors about their bids
4. there is a reasonable expectation of receiving more than one sealed bid
32
Two step sealed bidding is:
a combination of competitive procedures designed to obtain the benefits of sealed bidding when adequate specifications are not available
33
Steps in two step sealed bidding:
Step 1:
- requests for submission
- evaluation
- discussion of technical proposals
***no pricing is involved.
Step 2:
- submission of sealed bids by those who submitted acceptable technical proposals in step one
34
FAR 15
contract by negotiation
- a contract awarded using other than sealed bidding procedures is a negotiated contract
35
FAR 15: contract by negotiation
negotiation must be used whenever one or more of the four prerequisites to sealed bidding (sufficient time, award based on price or price-related factors, well-defined specifications, adequate competition) is lacking
36
When using contract by negotiation in a competitive environment, how are the technical proposals and price proposals packaged?
separately
37
Contract by negotiation: after evaluation of offers, the KO may hold negotiations (discussions) with offers in the competitive range. At a minimum the KO must discuss with each offeror in the competitive range:
- any deficiencies
- significant weaknesses
- adverse past performance information to which the offeror has not yet had an opportunity to respond
38
contract by negotiation: after the conclusion of discussions, the KO will request:
final proposal revisions
39
contract by negotiation: After final proposal revisions, the KO:
awards to the offeror deemed to provide the best value to the GVT, price and other factors considered, in conformance to the request for proposal
40
contract by negotiation involves the following steps:
1. draft specification or PWS (provided by the RA or COR)
2. prepare RFP (articulates requirement clearly without unnecessarily restrictive requirements as that would unduly limit the number of offerors
3. publicize RFP: SAM.gov, local newspapers, embassy, consulate, or any other locally acceptable means of advertising the requirement
4. submit proposals: offerors prepare and submit technical and price proposals in resopnses to the RFP - proposals are not opened in public
5. evaluate proposals: a Technical evaluation panel (TEP) evaluates the technical proposals against the technical evaluation criteria included in the RFP
6. conduct discussions
7. request final proposal revisions
8. evaluate final proposal revisions
8. award contract
41
contract types for negotiated contracts under part 15:
may be of any type or combination of types that will promote the GVT's interest, except as restricted in FAR 16
42
Contract Type Policy (FAR 16.102):
1. contracts resulting from sealed bidding shall be FFP or FP w/ economic price adjustment
2. FAR 15 may be any type or combination of types that will promote the GVT's interest, except as restricted in FAR 16
3. cost plus a percentage of cost system of contracting SHALL NOT be used
4. no contract may be awarded before the execution of any D&F required by FAR part 16
43
Two categories of contracting:
1. Fixed Price
2. Cost Reimbursement
44
Fixed Price Contracts:
the contractor has full responsibility for the performance costs and resulting profit (or loss)
45
Cost Reimbursement Contracts:
contractor has to put forth "best effort" to perform, and provide for payment of the contractor's allowable, allocable, and reasonable incurred costs (estimate of total cost for the purpose of obligating funds and establishing a ceiling that the KTR may not exceed)
46
if beneficial to the GVT, then a contract can have both _____ price and _____ type contract line item numbers which creates a ______ contract:
fixed, cost, hybrid
47
at a minimum, the appraisal of cost risk should consider two areas of particular concern:
contract performance risk and market risk
48
What is the most important factor when selecting the contract type?
Risk associated with the work to be performed
49
Changes in the marketplace will also affect contract cost:
- volatile market will increase cost risk involved in contract pricing, particularly when the contract period will extend several years
- large market fluctuations
- fixed price contract w/ economic price adjustment are designed specifically to reduce the risk for contractors
50
FAR 16.104 - factors that should be considered in selecting contract types:
1. price competition
2. price analysis
3. cost analysis
4. type and complexity of requirement
5. urgency
6. PoP and length of production run
7. contractor's technical capability / financial responsibility
8. adequacy of contractor's accounting system
9. acq history
10. combining contract types
11. concurrent contracts
12. extent and nature of proposed subcontracting
51
The fixed-price family of contracts includes:
- FFP
- FP w/ EPA
- fixed ceiling price contracts with retroactive price redetermination
- FP contracts with prospective price redetermination
- FFP level of effort
- FP award fee
- FP incentive firm target
- FP incentive successive target
52
FFP
- not suitable to any adjustment
- places maximum risk and responsibility on KTR to control costs
- suitable for acquiring commercial items or services
- used when KO can determine:
---adequate competition
---reasonable price comparisons w/ prior purchases
---available price information can determine costs of performance
52
FFP
- not suitable to any adjustment
- places maximum risk and responsibility on KTR to control costs
- suitable for acquiring commercial items or services
- used when KO can determine:
---adequate competition
---reasonable price comparisons w/ prior purchases
---available price information can determine costs of performance
53
FP w/ EPA
if material or labor is involved, FPEPA can help address a specified contingency that may be beyond the KTR's ability to control, such as fluctuation in the price of a commodity (steel, petroleum, etc.)
FPEPA contracts are used when:
- the market prices at risk are severable and significant
- the risk stems from industry-wide contingencies beyond the KTR's control
- the dollars at risk outweigh the administrative burdens of an FPEPA
- market labor conditions are projected to be unstable during an extended contract performance period
54
Three different types of adjustments IRT FPEPA:
1. adjustments based on established prices
2. adjustments based on actual cost of labor or material
3. adjustments based on cost indices of labor or material
55
FFPLOE Term Contracts:
provides an agreement for a specified level of effort over a period of time on work that can only be described in general terms. KTR is paid a fixed dollar amount based on the level of effort rather than for results achieved.
56
Two basic types of incentive contracts that incentivize objective elements (cost):
- FP incentive contracts
- Cost reimbursement incentive contracts
57
FP Incentive contracts:
FP contracts that provide for the adjustment of profit and establishment of the final contract price by a formula based on the relationship of final negotiated total cost to the total target cost
***suitable for development and production efforts
58
Two forms of fixed price inceptive (FPI) contracts:
- Firm target (FPI(F)) and successive targets (FPI(S))
59
Fixed Price Incentive (firm target) (FPI(F)) contract:
specifies a target cost, a target profit, a price ceiling (but not a profit ceiling or floor), and a profit adjustment formula - all negotiated at the outset
- price ceiling: max that may be paid to the KTR
60
Cost-Plus Incentive-Fee contracts:
A CPIF is a cost-reimbursment contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs
61
There are two basic types of incentive contracts that incentivize subjective elements (how well the contractor performed):
- fixed price award fee
- cost plus award fee
62
Fixed-price award fee contracts:
significant cost control incentive; the award fee plan is typically written to focus the contractor's efforts on technical and schedule performance
- award fee is paid in addition to the fixed price if the contractor meets those incentives (keep in mind that performance cannot be measured objectively)
63
Cost plus award fee contracts:
CPAF provides a fee consisting of:
- a base amount (known as the "base fee") fixed at inception of the contract and the base fee percentage shall not exceed %3
- an award amount (known as the "award fee pool") that the contractor may earn in whole or in part during performance and that is sufficient to provide motivation for excellence in the areas of cost, schedule, and technical performance
64
Cost Reimbursement Contracts:
KTR must put forth its best efforts in performance of the contract - allows the GVT to assume more risk
***prohibited for the acquisition of commercial items
65
Cost reimbursement contracts used primarily in:
- R&D
- major system development
- prototype development and testing
- low rate initial production
66
The cost-reimbursement family of contracts includes:
- cost
- cost sharing
- cost plus incentive fee
- cost plus award fee
- cost plus fixed fee
67
Cost reimbursement contracts may only be used when:
- a written acq plan has been approved and signed at least one level above the KO
- the KTR's accounting system is adequate for determining cost applicable to the contract
- prior to contract award, GVT resources are available to award and manage a contract other than FFP
- appropriate GVT surveillance exists during performance to provide reasonable assurance that efficient methods and effective cost controls are used
68
Cost Contracts
KTR receives no fee (R&D)
- used when the KTR operates of maintains a GVT facility
69
Cost Sharing Contracts
KTR receives no fee
- may be used when the KTR agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits
70
Cost plus Fixed Fee Contracts (CPFF)
primarily used in R&D, advanced development, or exploratory development when the level of effort is unknown.
71
There are two forms of CPFF contracts:
CPFF Completion
CPFF Term
72
CPFF Completion Contract:
requires the contractor to work to a definite goal or target
specifies an end product
end product MUST be delivered to earn the entire fee
73
CPFF Term Contract:
obligates the contractor to devote and expand a specified level of effort for a stated period of time
as long as the effort is satisfactory to the GVT, fee is paid
74
Time and materials / labor hour contracts:
may be used only when it is not possible at the time of placing the contract to estimate accurately the extend or duration of the work or to anticipate costs
75
A Procurement Instrument Identifier (PIID) is:
a unique number identifying each solicitation, contract, agreement, or order and related procurement instrument
agencies shall include PIIDs for all related procurement actions
76
Elements of a PIID:
The PIID consists of a combination of 14-17 alpha and/or numeric characters sequenced to convey certain information:
1 - 6: identifies the department / agency issuing the instrument
7 - 8: the last two digits of the FY
9: type of instrument (letter)
10 - 17: number assigned by the issuing agency
77
Contract Instrument Designation Key:
A - BPA's
B - invitation for bids
C - contract of all types except IDIQ
D - IDIQ
E - Reserved for GVT use
F - DO/TO, calls under BPA's
G - Basic Ordering agreements
H - Agreements
I - Do not Use
J - Reserved for GVT use
K - Reserved for departmental or agency use
L - lease agreements
78
UCF: Numbering exhibits and attachments
Alpha character to identify exhibits (do not use I or O)
Numbers in Attachments
79
UCF Part 1:
The Schedule
Sections A - H
80
UCF Part 2:
Contract Clauses
Section I
81
UCF Part 3:
List of Documents, Exhibits, and Other Attachments
Sections J
82
UCF Part 4:
Representations and Instructions
Sections K - M
Contracting
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