FAC-C (Professional) Exam Prep

The contracting lifecycle consists of three phases:

Preaward, award, & postaward

The preaward phase involves:

All the work performed by both the buyer (Government or prime contractor) and seller (contractor or subcontractor in communicating the buyer's requirements and providing a solution to those requirements.

Typically start befor the contracting process:

Requirements definition, budgeting/funding process, and acquisition planning.

Preaward phase consists of two primary activities:

Develop solicitation (Government) and develop offer (Contractor).

In planning the solicitation, the buying activity must:

Assess the need, analyze the requirement, ensure contract outcomes will be measurable and properly incentivized, and verify the availability of funds.

What two FAR parts are key resources in developing the solicitation?

FAR Part 7 Acquisition Planning; FAR Part 11 Describing Agency Needs

Buying activities must conduct ___ to identify potential suppliers, evaluate if the requirement is achievable, and perform any pre-offer conferences or communication.

Market Research

What FAR part is a key resource for conducting Market Research?

FAR Part 10 Market Research

How do buying activities analyze risk?

Performing make or buy decisions; conducting a supply or services determination; and understanding the required schedule or needs of the customer including the need for property (including intellectual property).

What FAR/DFARS resources can assist in analyzing risks?

FAR 15.407-2 Make-or-Buy Programs; FAR Subpart 11.4 Delivery or Performance Schedules; FAR Part 45 Government Property; DFARS Part 227 Patents, Data, & Copyrights.

Primary FAR resource for information about contract types:

FAR Part 16 Types of Contracts

Which FAR Part addresses publicizing contract actions?

FAR Part 5

What is the second phase of the contract lifecycle?

Contract Award

What is the one activity in the award phase?

Form contract

When it receives offers, the buying activity (Government) must:

Analyze proposals in terms of risk, review for price reasonableness, and document results of the analysis.

FAR Part ___, ___ ___ gives guidance that can be generalized for contract methods beyond those covered by the rest of FAR Part 15.

15.404, Proposal Analysis

To plan for negotiations, the buying activity may ask for ___ from offerors and then develop ___ ___.

Clarification, negotiation objectives.

In all cases, ___ must explain the process that arrived at an offeror being awarded a contract.

Documentation

What FAR/DFARS Parts discuss the protest processes?

FAR Subpart 33.1; DFARS Subpart 233.1.

The third contract lifecycle phase is ___.

Postaward

The postaward phase involves:

All the work performed by both the buyer and seller during contract performance, to include changes to the contract, contract closeout, and sometimes termination of a contract.

The postaward phase (sometimes referred to as contract administration) consists of two primary activities:

Perform contract and close contract.

Perform contract involves monitoring risk and assessing its impact on contract performance, ensuring compliance with:

Contractual terms and conditions; contract technical requirements during contract performance up to contract closeout or termination.

What two parties must administer the contract?

Buyer and seller.

Contract administration requires:

Continuous documentation throughout the life of the contract and depends on good communication, funds management, and assessing seller performance.

Which FAR/DFARS Part outlines the vast array of postaward activities and responsibilities?

FAR Part 42 Contract Administration and Audit Services; DFARS Part 242.

Quality includes:

Schedule, cost, and delivery of services or items.

Whose responsibility is quality?

The seller.

Which FAR Part gives important guidance for planning and ensuring successful contract performance?

FAR Part 46 Quality Assurance

The supply chain consists of a network of:

Subcontractors, vendors, and other service/item providers to the seller or prime contractor.

Which FAR/DFARS Part covers policies and procedures as they relate to subcontractors?

FAR Part 44 Subcontracting Policies and Procedures

Which FAR Part covers changes to contracts?

FAR Part 43 Contract Modifications

Which FAR Part discusses termination of contracts?

FAR Part 49 Termination of Contracts

Contract closeout is the process of:

Verifying al the requirements of the contract are satisfied, settling unresolved matters, and reconciling the contract to make final payment.

Contract closeout tasks include:

Validation of completion of contract requirements, disposition of property, settling subcontract issues, funds reconciliation, and final payment (also an assessment of seller performance depending on dollar value).

Which FAR Part covers the closeout of government contract files?

FAR 4.804 Closeout of Contract Files.

Which FAR Part covers the responsibilities associated with government property prior to and through contract closeout?

FAR Part 45 Government Property.

Preaward Buyer (Govt/Prime Contractor) Tasks

Assisting the customer in defining the requirement; Developing a comprehensive plan for fulfilling the requirement in a timely manner at a reasonable price; Developing and executing an overall strategy for the purchase.

Award Buyer (Govt/Prime Contractor) Tasks

Evaluating offers; Conducting negotiations; Selecting the source; Awarding the contract(s); Debriefing offerors; Addressing mistakes in offers and seller challenges to the selection process.

Postaward Buyer (Govt/Prime Contractor) Tasks

Addressing any issues arising during contract performance that might increase performance risk; executing contract modifications; Monitoring compliance of contract terms; Making payments; Closing out the contract.

Who develops the solicitation?

The Government (buyer)

Who prepares an offer?

The Contractor (seller)

Who has responsibility for quality while the contract is being performed during the postaward phase?

The Contractor (seller)

Acquisition Definition (FAR 2.101)

Acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the federal government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated.

When does acquisition begin?

Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract.

Acquisition Team Members (FAR 1.102-4)

The acquisition team consists of all participants in government acquisition--including technical, supply, and procurement representatives, the customers they serve, and the contractors who provide the products and services.

Role of the Acquisition Team (FAR 1.102-5(a))

Government members of the acquisition team must be empowered to make acquisition decisions within their areas of responsibility, including selection, negotiation, and administration of contracts . . . In particular, the contracting officer must have the authority to the maximum extent practicable and consistent with law, to determine the application of rules, regulations, and policies on a specific contract.

Contracting Officer Appointments (Selection FAR 1.603-2)

In selecting contracting officers, the appointing official shall consider the complexity and dollar value of the acquisitions to be assigned and the candidate's experience, training, education, business acumen, judgment, character, and reputation.

Examples of selection criteria (Contracting Officer Appointments)

Experience in government contracting and administration, commercial purchasing, or related fields; education or special training in business administration, law, accounting, engineering, or related fields; knowledge of acquisition policies and procedures; specialized knowledge in the particular assigned field of contracting; and satisfactory completion of acquisition training courses.

DOD Contracting Officer Requirements

Must have completed all required contracting courses; have at least 2 years' experience in a contracting position; received a baccalaureate degree from an accredited educational institution; meet such additional requirements, based on the dollar value and complexity of the contracts awarded or administered in the position.

Contracting Officer Responsibilities (FAR 1.602-2)

Contracting officers are responsible for performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the interests of the United States in its contractual relationships. In order to perform these responsibilities, contracting officers should be allowed wide latitude to exercise business judgment.

CO responsibilities include:

Ensuring sufficient funds are available for obligation for each contract action; ensuring contractors receive fair, impartial, and equitable treatment; requesting and considering the advice of specialists in audit, law, engineering, information security, transportation, and other fields; and designating CORs in writing and furnishing copies to the contractor and the contract administration office.

Who is responsible for identifying the requirement?

The buying activity

A seller's response to a solicitation requires:

The seller's offer to align with their sales plan and risk strategy

The structured process for preaward buyer and seller disagreement is called a:

Protest

Who is responsible for administering the contract?

The buyer and the seller

What do most sellers have to support their contract performance?

Supply Chain

Who is responsible for ensuring that sufficient funds are available for a contract action?

CO

FAR Guiding Principles (FAR 1.102):

Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service; minimize administrative operating costs; conduct business with integrity, fairness, and openness; fulfill public policy objectives.

Contractor Personal Conflict of Interest (FAR Subpart 3.11)

A personal conflict of interest is where a contractor employee has some interest that could impair their ability to act impartially and in the best interest of the government when performing under a contract.

Organizational Conflict of Interest (FAR Subpart 9.5)

An organizational conflict of interest is where a contractor (or potential contractor) is in a situation which by way of contract performance gives them an unfair advantage or will bias their performance in making recommendations to the government.

According to FAR 1.102-5(e), contracting officers should...

Take the lead in encouraging business process innovations and ensuring that business decisions are sound.

According FAR 1.102-2(c)(2) the contracting system should focus on ___ ___ instead of risk avoidance.

Risk management

The cost to the taxpayer of attempting to eliminate all risk is ___

Prohibitive.

All contractors and prospective contractors should be treated ___ and ___ but need not be treated the same.

Fairly; impartially

Definitions of words and terms in FAR 2.101 have the same meaning throughout the entire FAR, unless--

The context in which the word or term is used clearly requires a different meaning; or another FAR part, subpart, or section provides a different definition for the particular part or portion of the part.

FAR Subpart 4.8 provides guidance on...

establishing, maintaining, and disposing of government contract files.

Determination and Findings (FAR 1.701)

Are a special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions.

The ___ is a conclusion or decision supported by the ___ --which are statements of fact or rational essential to support the determination and must cover each requirement of the statute or regulation.

Determination; findings

According to FAR 6.303-1(a), a contracting officer shall not commence negotiations for a sole source contract, commence negotiations for a contract resulting from an unsolicited proposal, or award any other contract without providing for full and open competition, unless the contracting officer--

Justifies, if required in FAR 6.302, the use of such actions in writing; certifies the accuracy and completeness of the justification; obtains the approval required by FAR 6.304.

Deviation Definition (FAR 1.401)

Use of a policy/procedure/solicitation provision/contract clause at any stage of the acquisition process that is inconsistent with the FAR; omission of any solicitation provision or contract clause when its prescription requires its use.

Price Negotiation Memorandum (PNM) shall include:

The purpose of the negotiation; a description of the acquisition, including appropriate identifying numbers; name, position, and organization of each party; current status of any contractor systems; the exception and basis for not using certified cost/pricing data when the price negotiation exceeded cost/pricing data threshold; if using certified cost/pricing data, the extent to which the CO relied on the data, recognized as inaccurate/incomplete/noncurrent any certified cost/pricing data submitted; Summary of the contractor's proposal, field pricing assistance recommendations.

SF 26

Award/Contract - used to award negotiated contracts in which signatures of both parties on a single document is appropriate.

SF 30

Amendment of Solicitation/Modification of Contract - used to amend any solicitation or modify any contract.

SF 33

Solicitation, Offer, and Award - may be used to award either negotiated contracts or contracts utilizing sealed bidding.

SF 44

Purchase Order-Invoice-Voucher - used for simplified acquisitions at or below the micropurchase threshold, except for purchases under unusual and compelling urgency or in support of contingency operations.

SF 1409

Abstract of Offers - prescribed for use in recording bids.

SF 1442

Solicitation, Offer, and Award (Construction, Alteration, or Repair) - Used for soliciting offers and awarding contracts expected to exceed the simplified acquisition threshold. These acquisitions must be for: construction, alteration or repair; or dismantling, demolition, or removal of improvements.

SF 1449

Solicitation/Contract/Order for Commercial Products and Commercial Services - required for solicitations for commercial products and commercial services if the acquisition will exceed the simplified acquisition threshold. It is encouraged for commercial acquisitions not exceeding the simplified acquisition threshold.

DD Form 254

Contract Security Classification Specification - used to provide security classification guidance to US contractors, and subcontractors as applicable, requiring access to information classified as confidential, secret, or top secret.

DD Form 1155

Order for Supplies and Services - used for placing orders under indefinite-delivery contracts or if the SF 1449 is not used under SAP.

DD Form 1547

Record of Weighted Guidelines Application - used to facilitate a structured approach to profit/fee analysis.

DD Form 1861

Contract Facilities Capital Cost of Money - used to estimate the facilities capital cost of money and capital employed (used in conjunction with the Cost Accounting Standards Board and Cost of Money Factors).

What do you use to document a business decision, such as the use of a specific contract type?

Determination and Findings

What will the contracting officer complete at the conclusion of negotiations?

Price Negotiation Memorandum (PNM)

What must the contracting officer complete prior to negotiating a sole source contract?

Justification and Approval

Proposed contract actions expected to exceed $25,000 must be:

Synopsized on the Governmentwide Point of Entry (GPE) at Sam.gov (FAR 5.101(a)(1)-(2)).

Proposed contract actions expected to exceed $15,000 but not $25,000 must be:

Displayed in a public place (FAR 5.101(a)(1)-(2)).

According to FAR 42.501(a), a postaward orientation aids both government and contractor personnel to:

Achieve a clear and mutual understanding of all contract requirements; and identify and resolve potential problems.

A postaward orientation is not a ___ for the contractor fully understanding the work requirements at the time offers are submitted, nor is it to be used to ___ the final agreement arrived at in any negotiations leading to contract award.

substitute; alter.

Transactions relating to the expenditure of public funds require the highest degree of ___ ___ and an impeccable ___ ___ ___.

public trust; standard of conduct.

___ allow agency noncompliance with mandatory procurement regulations.

Deviations

According to FAR 1.102(c)(2), the contract management system must focus on:

Risk mitigation (risk management).

According to the FAR Guiding Principles (FAR 1.102(b)), the Federal Acquisition System will:

(1) Satisfy the customer in terms of cost, quality, and timeliness of the delivered service by: maximizing the use of commercial products and commercial services; using contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform; and promoting competition; (2) Minimize administrative operating costs; (3) Conduct business with integrity, fairness, and openness; and (4) Fulfill public policy objectives.

According to FAR 1.102(d), in exercising initiative, Gov't members of the Acquisition Team may assume if a specific strategy, practice, policy, or procedure is in the best interests of the Gov't and is not address in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, that the strategy, practice, policy, or procedure is a ___ ___ ___ ___.

Permissible exercise of authority.

What document is used to justify a sole-source award?

Justification and approval.

What form is used for a commercial product and commercial service solicitation and contract?

SF 1449

What method must be used to disseminate information regarding a proposed contract action exceeding $25,000?

Synopsizing on GPE.

Contracting professionals must conduct themselves in a manner consistent with the highest levels of ___, ___, and ___.

Integrity, fairness, and openness.

Contracting professionals must exhibit the highest levels of ___ ___ in their dealings with customers, other members of the acquisition team, and industry.

Ethical behavior