Funding Decisions
What are the three basic fiscal constraints on appropriated funds?
What is Purpose, time, and amount.
Which contract type places maximum responsibility for costs and resulting profit or loss on the contractor?
What is Firm-fixed-price. Reference: FAR 16.202.
What is IGE and its purpose?
What is Independent Government Estimate.It provides the Government’s own estimate of the expected cost and helps evaluate whether a proposed price is reasonable.
Which delivery method combines design and construction under one contract?
What is Design-build.
Reference: FAR 36.102.
What are the two types of contract modifications and how they differ?
Unilateral: Signed only by the KO.
Bilateral: Signed by both the KO and the contractor.
Reference: FAR 43.103.
What is ADA and name two actions that could violate it and one potential penalty of the violating.
Antideficiency Act.
Obligating or spending more than the amount legally available.
Obligating funds before an appropriation is available, unless authorized by law
Penalty: suspension without pay, removal from job, criminal prosecution(up to 2 years imprisonment and $5000 fine)
Reference: 31 U.S.C. § 1341; FAR 32.702.
What should a performance-based PWS describe, and how should acceptable performance be measured?
It should describe the results the contractor must achieve, rather than give step-by-step instructions. It should include measurable standards, such as quality, timeliness, or quantity.
Reference: FAR 37.602.
You compare a proposed price with prices paid on similar contracts, without reviewing individual cost elements. What type of analysis are you performing?
What is Price analysis. FAR 15.404-1(b).
Explain design-bid-build and give one benefit of using this method.
The Government uses separate contracts for design and construction. Design is completed before construction bids are solicited, giving bidders a common design to price.
Reference: FAR 36.102 and 36.104.
Before proposals are due, the customer changes a technical requirement. Is notifying offerors by phone enough? Explain what the KO should do.
No, a phone call alone is not enough. If time is of the essence, the KO may notify offerors orally, but must document the file and formalize the change with a solicitation amendment.”
Reference: FAR 15.206(f)
Weekly office cleaning provides value each time it is performed. Is this a severable or nonseverable service, and why?
What is Severable. Each increment of cleaning provides an independent benefit. A nonseverable service generally produces one complete result whose components do not independently satisfy the need.
A customer recommends a contract type because “we used it last time.” Is that enough? Name three other factors to consider.
No. Consider factors such as requirement complexity, uncertainty, competition, price information, urgency, performance period, contractor capabilities, and allocation of risk. Reference: FAR 16.104.
A contractor’s total proposed price appears reasonable, but its proposed labor hours seem excessive. What type of analysis would help you evaluate those hours, and what would you review?
What is Cost analysis. Review the proposed hours against the work required, the contractor’s approach, and available historical data to determine whether the hours are reasonable.
Reference: FAR 15.404-1(c).
Explain how two-phase design-build selection works and why the Government would use it.
Phase One: Evaluate qualifications and technical approach to select firms for Phase Two.
Phase Two: Evaluate technical and price proposals from those firms. This reduces the number of firms preparing expensive detailed proposals and allows the Government to focus on the most qualified competitors.
Reference: FAR Subpart 36.3.
The Government has already extended services for four months under FAR 52.217-8. Can it use that clause for another four months? Why or why not?
No. FAR 52.217-8 allows a maximum of six months total, even when exercised more than once. Since four months have already been used, only two months remain.
A customer wants to use expiring funds to buy readily available computers needed only for a building opening next fiscal year. What fiscal concern should you raise?
What is The bona fide needs rule. Determine when the actual need arises and whether an exception applies. Having funds left over does not establish a current-year need. Reference: 31 U.S.C. 1502(a).
The Government would receive no useful benefit from performance above its minimum requirements. Which source selection approach might fit, and what restriction applies?
LPTA may be appropriate, if applicable criteria and restrictions are met. Select the technically acceptable proposal with the lowest evaluated price. Tradeoffs between price and nonprice factors are not permitted.
Reference: FAR 15.101-2 and applicable DFARS requirements.
A pricing action exceeds the applicable threshold for certified cost or pricing data. Must the KO automatically require certified data? Give an example.
No. The KO MUST First check for an exception. Examples include adequate price competition, prices set by law or regulation, commercial products or services, an authorized waiver, and qualifying modifications of commercial contracts. Data without certification may still be needed.
Reference: FAR 15.403-1 and 15.403-4.
After negotiations, a contractor’s proposed construction price remains above the IGE. What would you do before recommending award?
Compare the proposal and estimate to identify differences in scope, quantities, assumptions, and market conditions. Have the estimators review any supported discrepancies. Document whether the price is fair and reasonable, and obtain any required USACE approvals before award. A price above the IGE is not automatically unreasonable.
Doug, an employee without contracting authority orders repairs for the Contracting office breakroom, and the Government accepts the completed work. Explain what happened, who can approve it, and what conditions must be met before it can be ratified.
This is an unauthorized commitment. Only an official with ratification authority can approve it. The conditions include:
Reference: FAR 1.602-3(b)–(c).
A construction contract awarded last fiscal year needs a modification this year. What must you determine before selecting the funding year?
First, determine whether the change is within the original contract’s scope. An in-scope adjustment may use the original funds. New or out-of-scope work generally requires currently available funds. Confirm the funding with counsel and resource management.
Under a tradeoff, the Government selects a higher-priced proposal with a stronger technical approach. What must the selection decision explain?
It must Explain which evaluated benefits justify the additional price, consistent with the solicitation’s evaluation factors and their relative importance. A higher technical rating alone does not explain the tradeoff.
Reference: FAR 15.101-1 and 15.308.
A contractor asks for 30 additional days to deliver because it scheduled its work poorly. The Government agrees to the extension in return for a price reduction.
Explain this exchange and what it is called.
What is consideration. Each party gives something of value: the contractor receives additional delivery time, and the Government receives a lower price.
You are preparing a construction solicitation. Explain when liquidated damages are appropriate, how the daily rate should be established, and what the rate must not include.
Use liquidated damages when finishing on time is important and the Government’s actual damages from a delay would be hard to calculate or prove. The daily rate should reflect the Government’s expected damages—not an amount chosen to punish the contractor.
Reference: FAR 11.501.
Reference: FAR 11.501.
A contractor misses its delivery date. What should the KO check before terminating the contract?
What type of termination could apply to commercial versus noncommercial contracts?
Check to see why the contractor is late, whether the delay is excusable, and what the contract says. Determine whether a cure or show-cause notice is needed, consider the impact on the Government, and discuss the action with counsel.
Noncommercial: Termination for default.
Commercial: Termination for cause.
Being late does not automatically mean the contract should be terminated.
Reference:
FAR 49.402-3; FAR 12.403; FAR 52.212-4.