AF Contracting Officer Study Guide (unofficial) Questions And Answers, Exams of Contract Law

Download AF Contracting Officer Study Guide (unofficial) Questions And Answers and more Exams Contract Law in PDF only on Docsity! AF Contracting Officer Study Guide (unofficial) Questions And Answers *Source Selection* FAR 1.602-2; 3.104-4; 15.207 (2016-05-31) Q: What are the CO's responsibilities in source selection? - correct answer 1. Procedures to safeguard source selection information. 2. Approve access to/release source selection information. 3. Maintain SS evaluation records. *Source Selection* 2016 DoD Source Selection Manual, 1.4.1.2 (2016-05-31) Q: What are the SSA responsibilities? - correct answer 1. Proper and efficient conduct of SS process. 2. Appoint respective chairpersons. 3. Establish SS team and ensure their knowledge of policy/procedure. 4. Ensure pace is event and not schedule driven (realistic SS schedule). *Financing* AF Contracting Officer Study Guide (unofficial) Questions And Answers FAR 32.106 (2016-05-31) Q: Name the different types of government financing in order of their preference - correct answer 1. Private financing (most preferred). 2. Performance based payments. 3. Customary progress payments. 4. Guaranteed loans. 5. Unusual progress payments. 6. Advance payments (least preferred). *Acquisition Strategy Panel (ASP)* AFFARS 5307.104-92; AFICA MP 5307.104-92 (2016-05-31) Q: Who prepares the ASP minutes, when are they prepared and who approves them? AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What are six conditions which must exist to have defective pricing? - correct answer 1. Information fits the definition of cost and pricing data. 2. Accurate data was available to the contractor before the agreement on price. 3. Data was not accurate, current, complete as of date of agreement. 4. Data was not submitted to CO. 5. Government must have relied on the data. 6. An increase in cost as a result of Government reliance on the data. *Contract Elements* Common Law (2016-05-31) Q: What are the essential elements of a contract? - correct answer 1. Offer. 2. Acceptance. AF Contracting Officer Study Guide (unofficial) Questions And Answers 3. Consideration. 4. Lawful purpose. 5. Competency of parties. 6. Certainty of terms. *Economy Act* 31 U.S.C. 1535; FAR 17.502-2 (2016-05-31) Q: Describe the Economy Act - correct answer Allows agencies to procure goods/services from other agencies at cost, a D&F is required. Intra-agency, activity within the Dod, you may not need D&F, Inter- agency, activity outside DoD like DOE, D&F signed by General or SES. Economy act does not apply to FSS acquisitions under FAR 8 or GSA, FPI, and other required sources of supplies. *Contract Award* FAR 32.703-2 AF Contracting Officer Study Guide (unofficial) Questions And Answers (2016-05-31) Q: You have just completed a long and complex negotiation for a large IDIQ contract and are ready to make award. In terms of funding, what must you ensure before awarding this contract? - correct answer Sufficient funds are available to be obligated for minimum order quantity. *Funds* DoD Financial Management Regulation, Volume 3, Chapter 10, Appendix C (2016-05-31) Q: When speaking of funds, what does "Current", "Expired", and "Cancelled" funds mean? - correct answer 1. Current - funds available for obligation. 2. Expired - funds available only for recording, adjusting and liquidating obligations properly chargeable to the appropriation. Funding in this phase remains available for 5 years from the year the appropriation expires, regardless of the appropriation type. 3. Cancelled - funds not available for any purpose. *Finance* AF Contracting Officer Study Guide (unofficial) Questions And Answers (2016-05-31) Q: What are the duties of the Advocate for Competition? - correct answer 1. Promote full and open competition and challenging barriers to it. 2. Reviewing contracting operations to identify opportunities/actions necessary to achieve f&o competition and the conditions that unnecessarily restrict it. 3. Preparing annual reports. 4. Recommending goals and plans for increasing competition. 5. Recommending a system of personal and organizational accountability - one that motivates individuals to promote competition and recognizes those who do. 6. Train workforce on competitive acquisitions. *Justification & Approval (J&A)* AFFARS 6.304(a); AFICA MP 6.304(a) (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What are the J&A approval thresholds within the Air Force? *AIR FORCE ONLY* - correct answer Dollar Thresholds............Operational Contracting <=$700K..................................Contracting Officer >$700K<=$13.5M..................Competition Advocate >$13.5M<=$93M........PEO/Head of Procuring Activity >$93M......................Senior Procurement Executive *Clearance Approve Thresholds* AFICA Appendix A (2016-05-31) Q: What are the clearance approval thresholds? *AIR FORCE ONLY - 771st ESS* - correct answer Dollar Thresholds............Operational Contracting AF Contracting Officer Study Guide (unofficial) Questions And Answers <$5M............................................................PCO $5 - $50M..................................................COCO *Source Selection* DoD Source Selection Manual; AFFARS MP 5315 (2016-05-31) Q: What are the purpose of evaluation factors and the AF mandated factors? *AIR FORCE ONLY* - correct answer The purpose is to describe how to meet requirements, are discriminators, what constitutes acceptability. Factors: Mission capability, Past Performance, Cost/Price. *Changes Clause* FAR 52.243-1 (2016-05-31) Q: What type of changes are covered with the changes clause? - correct answer 1. Drawings, designs, or specifications AF Contracting Officer Study Guide (unofficial) Questions And Answers *Performance Based Payments* FAR 32.10 (2016-05-31) Q: What is the intent of including performance based payments? - correct answer Improve contractor's cash flow. Especially for contractors who don't have approved accounting system that are (needed)(required) for progress payments (based on cost). *Certified Cost or Pricing Data* FAR 15.402 (2016-05-31) Q: What is the intent of obtaining certified cost or pricing data? - correct answer 1. Ensure negotiations conducted on a level playing field. 2. Ensure Government has current/complete/accurate data. 3. Method of reducing negotiated amount based on impact of contractor providing data not current/accurate/complete. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Technical Incentive* 16.402-2 (2016-05-31) Q: What is a tech incentive? What must the contractor provide (factors to consider) if proposing use of tech incentive. - correct answer Factors for Tech Factor 1. Acquisitions that include development, production or application on innovative new technologies. Does not apply to studies, analyses, demonstrations. 2. Technology being applied or developed by contractor; technology complexity; maturity; performance specs/tolerances; delivery schedule, extent of warranty/guarantee. *Military Equipment* Chief Financial Officer's Act of 1990; DoDI 5000.64 (19 May 2011) (2016-05-31) Q: What is MEV? - correct answer Military Equipment Valuation 1. Method to capture values/cost for military equipment. 2. Apply categories to equip expenditures and financial statements. 3. DoD goal of improved financial reporting for military equipment. AF Contracting Officer Study Guide (unofficial) Questions And Answers To implement Federal accounting standards requiring all military equipment with unit cost > threshold be treated as capitalized assets. Provides sound financial stewardship of Congressional funding. CLINs now established to distinguish between capitalized vs. expenses items. PM, FM and CO all have roles in the process. Auditable accountability/visibility of Government property. Methodology to valude government property. ME has useful life > 2 years, not for resale, used in performance of military missions, /$100K cost. *Military Equipment* Chief Financial Officer's Act of 1990; DoDI 5000.64 (19 May 2011) (2016-05-31) Q: What is the definition of Military Equipment? - correct answer 1. Weapon system used by armed forces to carry out battlefield mission 2. expected useful life of 2+ years 3. Not intended for sale in ordinary course of business 4. Doesn't lose identity or become part of another article. 5. Available for the use of reporting entity for intended purpose. AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: A program manager has a new effort. As a business advisor (Contracting Officer), what information is needed to determine how you will acquire and where and how will you obtain the information? - correct answer 1. Is effort adequately and correctly described? 2. Is the effort RDT&E, production, supply or service? 3. Government cost estimate and funds availability, typ, amount. 4. Market research; sources sought, research, industry day 5. Any existing contracts available (i.e. either within your Agency or in other Government departments). *Unsolicited Proposals* FAR 15.6 (2016-05-31) Q: What five elements are found in a valid unsolicited proposal ? - correct answer 1. Be innovative and unique. 2. Independently originated/developed by offeror. 3. Prepared without Government supervision, endorsement, direction, or involvement. AF Contracting Officer Study Guide (unofficial) Questions And Answers 4. Include sufficient detail to permit determination of benefit. 5. Not be an advanced proposal for a known requirement (or previous requirement). *Defective Pricing* FAR 15.407 (2016-05-31) Q: What three conditions must exist to have defective pricing? - correct answer 1. Data was not current, accurate or complete at the time of the price agreement. 2. The Government relied on the data. (note: the PNM shall say this). 3. A cost increase was the result on the dependence on defective pricing. *Foreign Military Sales Contingent Fees* DFARS 225.7303-4; DFARS 225.7306 (2016-05-26) AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What are FMS contingent fees and offsets and tell where to check to see if these costs are allowable? - correct answer Contingent fees, sometimes known as commissions are paid to a bona fide employee or bona fide established commercial or selling agency maintained by the prospective contractor for the purpose of securing business. DoD 5105.38-M, defines a list of countries where contingent fees are unallowable unless the contractor identifies the payments and the foreign customer approves the payments in writing prior to contract award. If a country is listed, you should read the LOA to determine if the foreign customer has an agreement in writing. A $50K ceiling exists for contingent fees, unless the contractor identifies the payment and the foreign customer approves the payment in writing before contract award. In accordance with the Presidential policy statement of April 16, 1990, DoD does not encourage, enter into, or commit U.S. firms to FMS offset arrangements. The decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, resides with the companies involved. (Also see 225.7303-2(a)(3).) *Integrated Product Team Pricing* FAR (2016-05-31) Q: There is a new sole source effort. It's a modification estimated at $7M for systems engineering support. The PM asks if IPT pricing can be used as he did last year. What would you tell him about IPT pricing? AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What is the objective of ADR? - correct answer ADR is a method to increase the opportunity for relatively inexpensive and expeditious resolution of controversial issues. -a neutral person, uninterested party, facilitates the resolution. -methods include arbitration and mediation *Appeals* FAR 33.2 (2016-05-31) Q: What is an appeal? - correct answer Written request to higher court to modify or reverse a judgment. -For CO Final Decision - appeal to Armed Services Board of Contract Appeals or US Court of Federal Claims. -For SB Set-Asides - appeal to the Agency head. *Service Contracts* FAR 37 (2016-05-31) Q: What does a service contract accomplish? - correct answer A contract that directly engages the time and effort of a contract whose primary purpose it is to perform an identifiable task rather than to AF Contracting Officer Study Guide (unofficial) Questions And Answers furnish an end item of supply. May be either personal or non-personal contract. Can cover services performed by professional or non- professional whether on individual or organizational basis. *Data Rights* FAR 27 (2016-05-31) Q: What are restrictive legends and what circumstances dictate their use? - correct answer -Required on all non-commercial deliverables -Authorized: Copyright, GPR/SBIR data rights, limited/restricted, special license -Nonconforming; may not be used -Unjustified: Government can challenge -Unmarked: Presume "unlimited" *Technical Data* FAR 27.401 (2016-05-31) Q: What is technical data? - correct answer Recorded information, regardless of form or method of recording, of a scientific or technical nature (including computer software documentation). AF Contracting Officer Study Guide (unofficial) Questions And Answers Not Technical Data - data describing contractor, info incidental to performance of contract, oral information not recorded, physical manifestation of the product whose design is described in the data (i.e. hardware item). *Intellectual Property* FAR 27 (2016-05-31) Q: What is intellectual property? - correct answer A product of the intellectual processes that has commercial value. It is divided into two main categories: 1)Patent Rights and 2)Technical Data and Computer Software Rights. *Public Law* FAR 22 (2016-05-31) Q: List three (3) major labor laws which a contracting office routinely incorporates into contracts? - correct answer 1. Davis Bacon Act - Construction. AF Contracting Officer Study Guide (unofficial) Questions And Answers 3. Price set by law or regulation 4. Commercial item 5. Waiver 6. Modification for commercial item 7. Exercise of priced option 8. Overrun funding or interim billing price adjustments. *Contract Type* FAR 16.104 (2016-05-31) Q: What ten (10) factors should be considered in determining contract type? - correct answer 1. Price competition - results in realistic pricing (FP). 2. Price/cost analysis - which can you do? uncertainties? 3. Type/complexity of requirement - greater risk? 4. Urgency of requirement - government accept > risk? 5. Period of performance - long (EPA clause)? 6. Adequacy of contractor's accounting system - if not FFP? 7. Concurrent contracts - same types? 8. Extent/nature of proposed subcontracting - contractor's actual risk? 9. Acquisition history - risk decreases with age. 10. Contractor's technical capability and financial responsibility. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Deviations* FAR 1.4 (2016-05-31) Q: What is a deviation? - correct answer 1. Issuance of policy/procedure/provision/clause/method/practice that is inconsistent with FAR. 2. Omission/mod of required provision/clause authorized by FAR. 3. Use of provision/clause with modified altered language not authorized by FAR. 4. Use of provision / clause prescribed on "substantially as follows" or "substantially same as" basis. 5. Authorization of lesser/greater limitations on use of any provision/clause/policy/procedure prescribed by FAR. 6. Issuance of policies/procedures that govern contract process/control contract relationships that aren't incorporated into agency regulations. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Options* FAR 17.207 (c) (2016-05-31) Q: What must the Contracting Officer have to exercise an option? - correct answer 1. Written determination to contractor IAW option clause. 2. Funds are available. 3. There is still a Government need. 4. This is still the most advantageous method to fulfill need (price and other factors, market survey, time, continuity of ops). 5. Was synopsized IAW FAR 5 unless exempt by FAR 6. 6. Determination in file that exercised IAW Ts & Cs. 7. Contractor not harmed. *Contingent Liability* AF Contracting Officer Study Guide (unofficial) Questions And Answers contract changes to implement common processes and replace/eliminate MIL Standards and specs and business requirements when they don't add value. Gives contractors flexibility to use most efficient business and manufacturing processes for individual facilities/products they produce. Goal of SPI is to reduce contract costs associated with unnecessary Government oversight, to more towards total performance based acquisition practices within DoD. *Progress Payments* FAR 32.5 (2016-05-31) Q: What rights does the Government have with regards to progress payments? What steps does a PCO have to go through to suspend or reduce progress payments? - correct answer Progress payments provide Government rights to reduce/suspend progress payments or to increase liquidation rate under specified conditions. PCO must take following steps prior to suspending: -notify contractor of intended action and provide opportunity to discuss -evaluate the effect of the action on contractor's operation based on the contractor's financial condition, projected cash requirement and existing credit. Consider general equities of situation, PCO can take unilateral action only if warranted by circumstances like overpayments or unsatisfactory AF Contracting Officer Study Guide (unofficial) Questions And Answers performance. PCO shall always act fair and reasonably, based decisions on substantial evidence, document contract file. *Clearance Process* AF AFICA MP 5301.90 - Clearance (2016-05-31) Q: Describe how clearance approval steps differ for competitive vs. non- competitive actions. *AIR FORCE ONLY* - correct answer Business clearance for competitive acquisition is approval to issue solicitation. For non-competitive is approval to begin negotiations. Contract clearance for competitive acquisition is approval by CAA for SSA to make the decision to award w/out discussions or request FPRR. For non-comp is approval by CAA to award contract or modification. MIRT applies to all actions over $50M. *Judgment Fund* 31 U.S.C. 1304; Fiscal Law Deskbook, 2014, Chapter 11, VI. (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What is the judgment fund? - correct answer If funds not available, the CO may refer a claim to the ASBCA and request they approve the settlement of the claim from the Judgment Fund (refer to FM regulations). Judgment Fund is available for court judgments and Justice Department compromise settlements of actual or imminent lawsuits against the Government. Payment of final judgments not otherwise provided for. No FY. *Forms* 1279 - DFARS 205.303 AF Form 3059 - DD Form 2579 - DFARS 219.201 (2016-05-31) Q: What is the difference between a 1279, 3059 and DD2579 *AIR FORCE ONLY* - correct answer 1279 Synopsis of contract award. Report all actions including mods that have face value excluding unexercised options of more that $7.0. For UCA report NTE, when definitized, if exceeds NTE by more than $7M report only amount exceeding original NTE. Send to SAF/LLP. AF 3059 - Staff Judge Advocate coordination sheet. Route files through legal for review/coordination for actions over $1M DD2579 - Small business coordination record. AF Contracting Officer Study Guide (unofficial) Questions And Answers offerors to clearly understand the government's needs. This facilitates the preparation of responsive proposals and delivery of the required goods or services. A well written SOW also aids the Government in the conduct of the source selection and contract administration after award. PWS - Performance Work Statement - The PWS should state requirements in general terms of what (result) is to be done, rather than how (method) it is done. The PWS gives the contractor maximum flexibility to devise the best method to accomplish the required result. The PWS must be written to ensure that all offerors compete equally. The U.S. Government must remove any features that could restrict a potential offeror. However, the PWS must also be descriptive and specific enough to protect the interests of the U.S. Government and to promote competition. The clarity and explicitness of the requirements in the PWS will invariably enhance the quality of the proposals subm *Full & Open Competition* FAR 15 (2016-05-31) Q: What exceptions to Full & Open Competition don't require a J&A? - correct answer 1. International Agreement. 2. Authorized/Required by Statute (e.g. 8(a)). AF Contracting Officer Study Guide (unofficial) Questions And Answers 3. Public Interest (if HCA determines). However a D&F is required. *J&A* FAR 6.303 (2016-05-31) Q: A contract was awarded for $8M (amount of the approved J&A). The CO anticipates issuing a change to add work outside the scope of the contract for $4M. What does this mean for your J&A? - correct answer A new J&A must be submitted by the CO to the appropriate approving official. *Funding* DFARS 232.703-1 (2016-05-31) Q: What are the exceptions to "full funding" of fixed price contracts? - correct answer Should be fully funded, but exceptions are: 1. Contract or option if a severable service, not over 12 months period of performance, and uses funds as the date funds obligated or AF Contracting Officer Study Guide (unofficial) Questions And Answers 2. Uses multiple year funds and is R&D funding or Congress has otherwise authorized incremental funding. *Protests* FAR 33.1 (2016-05-31) Q: Name the types of protests. - correct answer 1. Agency. 2. GAO. 3. US Court of Federal Claims. 4. Small business size standard representation *Protests* FAR 33 (2016-05-31) Q: What is a protest? - correct answer Written objection by interested party to any of the following: 1. Solicitation or other request for offers for a contact. 2. Cancellation of such solicitation or request. AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What is non-personal service? - correct answer Personnel performing are not subject to supervision/control usually prevailing in relationship between Government and its employees. *All service contracts should be non-personal in nature with very few exception (e.g. medical doctors/nurses/some highly specialized technical support/consultants) *Review* AFFARS 5301.9001 (b) (2016-05-31) Q: What is a MIRT? *AIR FORCE ONLY* - correct answer Multifunctional Independent Review Team 1. Competitive acquisitions over $50M. 2. Assists in clearance processes at five critical decision points *Exchanges* FAR 15.306 (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What are the three types of exchanges between the Government and offerors? - correct answer Clarifications - limited exchanges when award without discussions is contemplated. Includes relevance of past performance, adverse past performance, or minor/clerical errors. Communications - exchanges after receipt of proposals leading to the establishment of the competitive range. Limit to offerors who past performance is affective placement in the competitive range and those whose inclusion is affecting understanding of proposal. No changes may be made to the proposal. Discussions - To maximize the Government's ability to obtain best value. Can discuss adverse past performance, uncertainties, weaknesses, deficiencies, strengths. Only with offerors within the competitive range. *Options* FAR 17.207 (2016-05-31) Q: You have a contract that was awarded under full & open competition, with NTE options. What must the CO do to exercise the option? - correct answer Synopsize as a new requirement and execute a J&A prior to exercising the option. Accomplish the D&F as required AF Contracting Officer Study Guide (unofficial) Questions And Answers and ensure funds are available. (if addressed in the original PCM and considered in initial award, different rules). *Urgent Need* 10 U.S.C. 2326; DFAR 217.74 (2016-05-27) Q: Your PM comes to you with an urgent need for a modification to a weapon that is needed in the field immediately. What do you do? What do you need to accomplish it? - correct answer Key thoughts: 1. Is there an existing contract? If so, could a NTE modification be issued? If not, can you issue a UCA. The J&A would be based on unusual and compelling urgency (can be written after the UCA issued). Would need authority to award UCA. 2. Is funding available? Can't obligate over 50% of NTE/need new start. Need definitization schedule & NTE proposal from contractor. *Early Effective Date* AFMCFARS 5304 (2016-05-31) Q: Who approves the use of an early effective date and what are the limitations of their use? AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: Who is responsible for the cost to repair GFP that has been broken by normal use? - correct answer The Government. *Military Interdepartmental Purchase Request (MIPR)* 31 U.S.C. 1535; FAR 17.502-2 (2016-05-31) Q: What are the CO's responsibilities when reviewing MIPRs? - correct answer 1. Does it reflect appropriate business approach. 2. Is it complete. 3. Is the description adequacy for supplies or PWS complete for services. 4. Is there a fee associated with the MIPR and has the Requiring Activity been advised of this fee. 5. Is there other required documentation. 6. Is D&F for Economy Act been completed? AF Contracting Officer Study Guide (unofficial) Questions And Answers 7. Non-DoD/Services Designated Official D&F complete? 8. Are required footnotes/business rules/interagency agreements followed? *Program Should-Cost Review* FAR 15.407-4 (2016-05-31) Q: What are the elements of a program should-cost review/analysis? - correct answer 1. Two types - "program should-cost review" and "overhead should-cost review". 2. A program should-cost review is used to evaluate significant elements of direct costs, such as material and labor, and associated indirect costs, usually associated with the production of major systems. 3. An overhead should-cost review is used to evaluate indirect costs, such as fringe benefits, shipping and receiving, real property and equipment, depreciation, plant maintenance and security, taxes, and general and administrative activities. *Claims and REA* AF Contracting Officer Study Guide (unofficial) Questions And Answers 41 U.S.C. Chapter 71, Contract Disputes; FAR 2; FAR 52.233-1 (2016-05-31) Q: What is the difference between a claim and a request for equitable adjustment? - correct answer 1. Claim - written demand for payment/adjustment. Lengthy, more formal process. Issued via disputes clause. 2. REA - usually result of a unilateral change order. CO should negotiate timely. Issued via changes clause, stop-work order, Government delay of work, Government property or suspension of work clauses. *Justification & Approval* FAR 6.303 (2016-05-31) Q: What is a class J&A? - correct answer A class J&A provides authority for a class (group) of contracts for the same or related supplies/services that require essentially identical justifications. The CO must make written determination that an individual contract action may be awarded within the scope of a class J&A before such actions are awarded. *Contracting Officer Responsibilities* AF Contracting Officer Study Guide (unofficial) Questions And Answers *Government Furnished Property (GFP)* FAR 45.103 (2016-05-31) Q: Related to GFP, what is meant by the term competitive advantage during a source selection? How do you ensure this issue is addressed or eliminated during the source selection? - correct answer Meaning: advantage contractor may have by using Government property. Addressed: CO shall consider potential unfair competitive advantage that may result from Contractor possessing Government property. Do this by adjusting offers by applying, for evaluation purposes only, a rental equivalent evaluation factor. -Ensure maximum practical reutilization of Contractor inventory for Government contracts. -Require contractors use GFP already in their possession to maximum extent practical in performing Government contracts. -Charge appropriate rentals if GFP authorized for use on other than rent-free basis -Require contractors justify retaining GFP not needed/declare excess -Not generally require contractors establish separate property management systems. *Service Contract Labor Standards* AF Contracting Officer Study Guide (unofficial) Questions And Answers 41 U.S.C. Chapter 67, FAR 22.1000 (2016-05-27) Q: Describe Service Contract Labor Standards (formerly know as the Service Contract Act of 1965) - correct answer Provides for minimum wages and fringe benefits as well as other conditions of work under certain types of service contracts. Service contracts over $2,500 shall contain mandatory provisions regarding minimum wages and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates. Under 41 U.S.C. 6707(d), service contracts may not exceed 5 years. *Contract Type* FAR 16.3 (2016-05-27) Q: You're preparing CR RFP for fabricating a unique, one-of-a-kind item that has never been built. The exact level of effort required is unknown. The contractor feel there's significant risk, given schedule and potential for failure. Which type of contract would you recommend, what are some of its features and why would you recommend it? - correct answer A Cost-Plus-Fixed-Fee contract provides for payment to the contractor of a negotiated fee that's fixed at the inception of the contract. Fixed fee doesn't vary with actual costs, but may be adjusted AF Contracting Officer Study Guide (unofficial) Questions And Answers as a result of change in the work performed under the contractor. This type permits contracting for efforts that might otherwise present too great a risk, but provides the contractor only minimum incentive to control costs. *Ratifications* FAR 1.602-3 (2016-05-31) Q: What is the difference between an unauthorized commitment and a ratification? - correct answer 1. Unauthorized commitment - the act of giving direction to a contractor without have the authority to do so. Proceeds a ratification. 2. Ratification - The act, by an official with the authority to do so, of approving an unauthorized commitment if all conditions are met. *Acquisition Planning* FAR 7 (2016-05-31) Q: What is the policy regarding acquisition planning? - correct answer Agencies share perform acquisition planning and conduct market AF Contracting Officer Study Guide (unofficial) Questions And Answers *Business Clearance* AFFARS 5301.90, AFFARS MP5301.9001(f), AFICA MP5301.9001 (2016-05-27) Q: One of the buyers in your program office comes to you to brief a sole source pre-negotiation objective for business clearance. The proposed amount is $5.3M. The Government objective is $4.8M and the negotiation range is up to $5.1M. What do you do? *AIR FORCE ONLY* - correct answer Obtain approval from Clearance Approval Authority (CAA) at the appropriate values. Note that the thresholds vary from MAJCOM to MAJCOM. AF CO's need to consult the appendix to the MP. *Contract Type* FAR 16.405-1 (2016-05-31) Q: What are the elements of CPIF? - correct answer Target cost, target fee, minimum fee, maximum fee, fee adjustment formula, share ratio. When the contractor reaches the high cost estimate the contract converts to a CPFF with a minimum fee. *Costs* AF Contracting Officer Study Guide (unofficial) Questions And Answers FAR 31.202 (2016-05-31) Q: What are direct costs? - correct answer Identified to a single cost objective, contract or organizational unit. example: direct labor, material, ODC *Request for Proposals* FAR 10; FAR 15 (2016-05-31) Q: For a new requirement, what are the steps before issuing an RFP? - correct answer 1. Issue sources sought synopsis. 2. Conduct market research. 3. Conduct industry day. 4. Write draft RFP. 5. Issue draft RFP for comments. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Cost Realism* FAR 2101; FAR 15.305 (2016-05-31) Q: Describe cost realism - correct answer Cost realism means the costs in the proposal 1. are realistic for work to be performed 2. reflect a clear understanding of the requirements 3. are consistent with the various elements of the technical proposal. Cost realism is performed on all CR contracts Purpose: assesses specific viability of an offer against proposed technical solution and current capability. Must be determined without regard to proposed ceiling on Government obligation and gives an accurate forecast of offer's likely success in performing the program. *Funding* FAR 32.706-2; FAR 52.232-22 (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers 2. subsistence. 3. supplies/services requiring special format prescribed. 4. letter RFP. 5. contract exempt by agency head or designee. *Costs* FAR 31.203 (2016-05-31) Q: What are indirect costs elements? - correct answer Costs that apply to two or more contracts or cost objectives. Example: supervisory staff, legal, employee payroll taxes, retirement expense, custodial expense. *Weighted Guidelines* DFARS 215.404-4 (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: You are preparing a weighted guidelines and have determined the appropriate weighting for technical, management/cost control, contract type and performance. As a PCO you may also consider using the cost efficiency factor. When is it appropriate to use this factor and are there any limitations when applying this factor? - correct answer 1.Cost efficiency factor is used as an incentive for contractors to reduce costs. 2. To the extent the contractor can demonstrate cost reduction efforts that benefit the pending contract, the CO may increase the pre- negotiation profit objective by an amount not to exceed 4% of the total objective cost to recognize these efforts. *Progress Payments* FAR 32.503-6 (2016-05-31) Q: What activities can a CO take to ensure that any excess of the unliquidated progress payments over the contractual limitation is promptly corrected? - correct answer 1. Increase the liquidation rate. 2. Reduce progress payment rate. 3. Suspend progress payments. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Cost* FAR 31.201-2 (2016-05-31) Q: What is an allowable cost? - correct answer A cost the Government will permit to be reimbursed by the Government for performance of a contract. Factors to be considered include: 1. Reasonableness- cost doesn't exceed what a prudent person would expend in conduct of competitive business. 2. Compliance with CAS 3. Allocable 4. IAW terms of contract 5. Any limitations set forth in FAR 31 *Weighted Guidelines* DFARS 215.404-4 (b) (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers 2. Review of previously proposed prices. 3. Review of previous Government commercial contract prices with current proposed prices for same/similar items. 4. Competitive published price list/published market prices. 5. Comparison of proposed prices with independent IGE 6. Comparison of proposed prices with prices obtained through market research for the same or similar items. 7. Analysis of data other than certified cost or pricing data provided by the offeror. *Subject Invention and Background Invention* FAR 27.301 (2016-05-31) Q: Describe the difference between a subject invention and a background invention. - correct answer 1. *Subject invention* - one made during the performance of the contract. Generally the contractor retains title and the Government get non-exclusive right to use the invention for Governmental purposes. 2. *Background invention* - one that is owned/licensed by the contractor and that will be incorporated into the contract deliverables. *Options* AF Contracting Officer Study Guide (unofficial) Questions And Answers FAR 17.207 (c) (2016-05-31) Q: You are a PCO on a missile program and you have an upcoming FFP option to exercise. All the data you have shows that the contractor will lose $$$ is you exercise the option rather than re-negotiate. What do you consider prior to exercising? - correct answer Determine that: 1. Funds are available. 2. Requirement covered by option fulfills existing Government need. 3. The exercise of the option is the most advantageous to the Government based on need, price and other factors. 4. Option was synopsized IAW Part 5 unless exempt. 5. Potential negative behavior by the contractor and how your contract will allow you to address any such negative behavior. *Berry Amendment* USC Title 10, DFARS 225.7002 (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: What is the Berry Amendment? - correct answer The purpose of the Act is maintain and support the defense industry base for items covered. Prohibits using appropriated funds to purchase any item/article on restricted list from a non-qualifying country. Compliant mean melted/produced in the US. Law restricts specialty metals for A/C, missile, space systems, ships, tanks,auto items, weapons, ammo. -Acquisition of certain items from domestic sources. *J&A* FAR 6.303-1 (2016-05-31) Q: If you had a definitive "C" type contract worth $60M that was negotiated sole-source with Raytheon under the authority of a $65M J&A, and 1 year later due to cost overruns you needed an additional $20M, would you need a J&A and who would approve it? - correct answer Yes. You need to notify the original J&A approval authority (PE) via a J&A amendment. Even though you will not be exceeding the original J&A by more than 50%, you have jumped beyond the PEO's approval threshold ($78.5M) so you must obtain SAF/AQ's signature approval on the J&A amendment. *Facilities Capital* 48 CFR 9904.414; FAR 2.101 (b) AF Contracting Officer Study Guide (unofficial) Questions And Answers (2016-05-31) Q: What involvement can non-Government personnel have with a source selection? - correct answer NGP can't have any financial interests nor be the SSA, chairperson of the SSA/SSET or an advisor to or member of the PCAG. Nor can they be voting members of any source selection boards. *Performance/Price Tradeoff* FAR 15.101-1 (2016-05-31) Q: Describe a performance/price tradeoff. - correct answer Simplified best value source selection that permits a tradeoff between price and performance in reaching the award decision. Applies to commercial/noncommercial. Some benefits: permits recognition of good performer; minimize risk of awarding to contractor that can't perform; SSP not required for PPT. Two PPT Best Value Models (with or without technical proposal). Recency, current-taking place at present time, and Relevant, performance being considered must have logical connection to work described in the solicitation. Three approaches: AF Contracting Officer Study Guide (unofficial) Questions And Answers 1. Evaluate technical proposals, rank by price, assess performance. 2. Rank by price, evaluate a specified # for technical, assess performance; 3. Evaluate technical, rank by price, assess performance until proposal rate "substantial confidence" *1279* MP5305.303, DFARS 205.302 and AFFARS 5317.191 (2016-05-31) Q: What is a 1279 report and when is it used? When do you include subcontracts on a 1279? - correct answer 1. The DD-LA-(AR) 1279 is a report which is submitted to Congress for DoD awards above $7M. The report must be submitted to the office of the Assistant Secretary of Defense by the close of business the day before the date of the proposed award. 2. List all contract and subcontracts performing 25% or more of the current effort and location when 25% or more of the current effort is being performed. Following each location, indicate which contractor is performing the effort. *ORM* DoD Policy AF Contracting Officer Study Guide (unofficial) Questions And Answers (2016-05-31) Q: As a PCO, you will be called upon to make lots of decisions. In this context, what is "ORM"? What are the six steps of ORM in this context? How would you apply those steps to your decision making process? - correct answer ORM - Operational Risk Management Management tool to help in effective and correct decision making. Use risk analysis to determine the potential postivie/negative results of a potential decision and work through various potential consequences prior to making a formal decision at the appropriate level. Steps: 1. Identify real/potential hazards. 2. Assess the risk 3. Analyze risk control measures 4. Make the decision 5. Implement the controls 6. Supervise and review. *Data Rights* FAR 27.401 (2016-05-31) AF Contracting Officer Study Guide (unofficial) Questions And Answers 2. Before contract award, if $ value is expected to exceed the original J&A approval authority, CO should submit amended J&A to appropriate approval authority, CO should submit amended J&A to appropriate approval authority clearly identify the $ increase. After award if $ value increased by 50% or more CO shall submit amended J&A. New or amended not required for: decrease in $ value or scope; increase in estimated $ value of in-scope effort (except as listed above) *Performance Based Payments* FAR 31.10 (2016-05-31) Q: With respect to performance based payments, what are some of the PBP guidelines? - correct answer 1. PBP are preferred method of Government financing when CO finds practical and contractor agrees to use. 2. Fully recoverable, like progress payments, even in event of default. 3. CO must not use when other payment methods are used. 4. Performance measured by objective, quantifiable methods, accomplishment of defined events or other quantifiable measure of results. AF Contracting Officer Study Guide (unofficial) Questions And Answers 5. Contract must be fixed price. 6.Total payment can't exceed 90% of total contract or delivery line item. 7. Events may be severable or cumulative. *Inspection of Services* FAR 46.202-3; FAR 46.301 (2016-05-31) Q: What are the responsibility of the Contractor and the Government in regards to inspection of services? - correct answer Contractor - from contract clauses for fixed price and cost reimbursement contracts the contractor shall provide and maintain inspection system acceptable to the Government covering the services under the contract. Complete records of all inspected work shall be maintained and made available to the Government during performance and as long after as the Government requires. Government - has the right to test all services and perform tests and inspections. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Order of Precedence for Required Documents* FAR 11.101 (2016-05-31) Q: What is the order of precedence for requirements documents? - correct answer 1. Those mandated for use by law. 2. Performance oriented (PWS, SOW, SOO) docs. 3. Detail design - oriented docs. 4. Standards, specs, related pubs. *MIRT* AFFARS 5301.9001 (b) (2016-05-31) Q: At what stages does the MIRT need to review the procurement? *AIR FORCE ONLY* - correct answer For contracts greater than or equal to $50M 1. Draft Request for Proposal. AF Contracting Officer Study Guide (unofficial) Questions And Answers -Best suited for operational, spares, some construction, non- developmental and build-to-print. *Berry Amendment* USC Title 10, DFARS 225.7002-2 (2016-05-31) Q: What are the 15 exceptions to the Berry Amendment? - correct answer 1. Below SAT. 2. Approved Agency Secretary waiver (e.g. Secretary of the Air Force). 3. List at 25.104(a). 4. Acquisitions outside US in support of combat operations. 5. Acquisitions of perishable foods by or for activities located outside the U.S. for personnel of those activities. 6. Acquisitions of food or hand or measuring tools in support of contingency operations or for which the use of other than competitive procedures has been approved on the basis of unusual and compelling urgency in accordance with FAR 6.302-2. 7. Emergency acquisitions by activities located outside the United States for personnel of those activities. 8. Acquisitions by vessels in foreign waters. 9. Acquisitions of items specifically for commissary resale. AF Contracting Officer Study Guide (unofficial) Questions And Answers 10. Acquisitions of incidental amounts of cotton, other natural fibers, or wool incorporated in an end product, for which the estimated value of the cotton, other natural fibers, or wool—(1) Is not more than 10 percent of the total price of the end product; and (2) Does not exceed the simplified acquisition threshold. 11. Acquisitions of waste and byproducts of cotton or wool fiber for use in the production of propellants and explosives. 12. Acquisitions of foods manufactured or processed in the United States, regardless of where the foods (and any component if applicable) were grown or produced. However, in accordance with section 8118 of the DoD Appropriations Act for Fiscal Year 2005 (Pub. L. 108-287), this exception does not apply to fish, shellfish, or seafood manufactured or processed in the United States or fish, shellfish, or seafood contained in foods manufactured or processed in the United States. 13. Acquisitions of fibers and yarns that are for use in synthetic fabric or coated synthetic fabric (but not the purchase of the synthetic or coated synthetic fabric itself), if the f *Quality Assurance* MP5301.602-2(d) (2016-05-31) Q: What are the responsibilities of quality assurance personnel? AF Contracting Officer Study Guide (unofficial) Questions And Answers *AIR FORCE ONLY* - correct answer 1. Maintain technical expertise/knowledge. 2. Inspect contractor performance. 3. Evaluate/Report findings. 4. Develop/maintain surveillance folders. 5. Refer questions to contracting officer (always) *IDIQ Contracts* Reference (2016-05-31) Q: What are the indefinite delivery contract types and how do they relate to "min/max" and why would you use them? - correct answer Definite Quantity - No min/max as quantity is fixed so it sets consideration and scope. Use when item regularly available and short lead time. Indefinite Quantity - Min and max, min sets consideration. Max bounds scope. AF Contracting Officer Study Guide (unofficial) Questions And Answers Q: Your PM comes to you after receiving a call from your user with an urgent request to add an additional capability to a system you already have on contract for them. The PM has already spoken with the contractor and they can do the work. The program can save $ if the contractor can be given the go-ahead within the next couple of weeks. How would you advise your PM? - correct answer First, the CO would need to determine whether the task is within scope. Can the contract be modified under the changes clause or is it considered new work? To assist in determining need to look at original program synopsis, acquisition plan, and work statement. If effort is determined out of scope, must be synopsized and probably can't meet couple of week window. If within scope, need program directions and funds. *Data Rights* FAR 27.4 (2016-05-31) Q: What are the types of data rights? - correct answer 1. Unlimited - The Government has paid for the development. As such, the Government can use the data any way it sees fit. 2. Government - Mixed funding. Can be released within the Government and to those authorized to work on the Government's behalf. AF Contracting Officer Study Guide (unofficial) Questions And Answers 3. Limited Rights - Funded by the Contractor. Can be distributed within the Government and must have written authorization to distribute outside of the Government. 4. Specifically negotiated license rights. *Unique Item Identification* DFARS 211 (2016-05-31) Q: You are the PCO for a brand new personnel transport system program. The system is made of several components which, once integrated will be able to move 100 soldiers across mountainous terrain @ 65 mph. There's a requirement to place an identifying # on the system and perhaps some of the subsystems. What is the requirement, why does the DoD need it, and what determines if and at what level (system or component) the ID is required? - correct answer Unique Item Identification (IIUID) permanently identifies an individual item distinctly from all other individual items that the DoD buys/owns. Provides for marking personal property items with machine- readable unique item identifier, which is a set of globally unique data elements. DoD need to identify items to which it takes title in order to have better asset accountability, valuation, and life cycle management. IUID required when unit acquisition cost is >$5K or less when requiring activity decides permanent ID is required. Also DoD serially managed subassembly/component/part embed within delivered item. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Deviations* FAR 1.4 (2016-05-31) Q: Define what a deviation from regulations is? - correct answer 1. Noncompliance with a mandatory procurement regulations. FAR 1.4 sets forth the procedures to be used. Deviation mean any one or combination of a. issuance/use of policy/procedure/provision/clause/method/ practice of conducting acquisition actions that is inconsistent with FAR. b. omission of provision/clause required by prescription c. use of provision/clause prescribed on a "substantially as follows" or "substantially the same as" basis if inconsistent with intent of prescription. d. authorization of lesser/greater limitations on use of any provision/clause/policy/procedure prescribed. AF Contracting Officer Study Guide (unofficial) Questions And Answers *Personal Service Contract* Reference (2016-05-31) Q: What is a personal service contract? - correct answer A contract that creates the appearance of contractor personnel functioning as Government employees. Personal service contracts are not allowed unless specifically authorized by statute. When authorized, personal service contracts may be used to acquire temporary services of experts. Services limited to one year. Examples: Doctors/nurses; consultants with specialized skills. *Public Law* See references in answer (2016-05-27) Q: Name four important laws that govern the federal procurement process? - correct answer Below are listed four Acts. Note however that this list is not all inclusive and other Acts may be named. 1. Anti-Kickback Act (42 U.S.C. § 1320a-7b) - criminal offense for any subcontractor under a prime Government contract to knowingly influence the award of a subcontract by making payments of any kind to any higher level prime or subcontractor. AF Contracting Officer Study Guide (unofficial) Questions And Answers 2. The False Statements Accountability Act (1996) (18 U.S.C. § 1001) - criminal offense for a contractor to make false statements or provides false information to the Government. Also provides for criminal penalties against individuals who submit false statements. 3. False Claims Act (31 U.S.C. §§ 3729-3733) - both criminal and civil penalties can be enforced under the act against contractors that knowingly submit false claims for payments or improperly and intentionally substitute specific products or services without Government prior knowledge or consent. 4. Sherman Antitrust Act (15 U.S.C. §§ 1-7) - bid rigging and collusive pricing are covered under the Act. Corporate officers and directors can be held personally liable for the awareness of contract compliance violations and the conscious failure to address and resolve violations. *AF Clearance Process* AFFARS 5301.9000(c) & (e) (2016-05-31) Q: Describe the clearance process *AIR FORCE ONLY* - correct answer The purpose of clearance is effective implementation of approved acquisition strategies, result in fair and reasonable business arrangements, consisten with laws, regulations and policies, and is an independent review and assessment. AF Contracting Officer Study Guide (unofficial) Questions And Answers Business Clearance - Competitive, approval to issue solicitation, non- competitive, approval to begin negotiations. Contract Clearance - Competitive, approval to award without discussions or request final proposal revisions. Non-competitive, approval to award. *Adequate Price Competition (APC)* Reference (2016-05-31) Q: You are preparing to competitively award a contract for an item and market research indicated several companies are capable of performing the work. Several attend industry day and 3 companies requested the RFP, so you believe there will be several offerors. The proposal cutoff date arrives and you only receive one proposal. Do you have adequate price competition? Why or why not? - correct answer Adequate price competition - two or more responsible offerors, competing independently, submit priced offers that satisfy the Government requirement and if: 1. award is to be made to the offeror whose proposal represents the best value where price is a substantial factor in source selection AND 2. There is no finding that the otherwise successful offeror's price is unreasonable.