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Contracting Officer Unlimited Warrant Board Exam Questions and Answers
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Contracting Officer UnlimitedWarrant Board Exam Questions and
Answers
What is an option? - -An option is a unilateral right in a contract, for a
specific period of time, where the Government may elect to purchase
additional supplies or services called for by the contract, or extend the
period of performance.
The PCO should use options when (1) in the Governments best interest, (2)
there is a need for service beyond the initial period, and (3) to ensure
continuity of service.
The use of options are not normally in the Governments best interest when
(1) The foreseeable requirements involve minimum economic quantities and
delivery requirements are far enough in the future to permit competitive
acquisition, production, and delivery (2) an indefinite quantity or
requirements contract would be more appropriate than a contract with
options.
-What must a PCO do before exercising an option? - -The PCO must
determine that:
1. Funds are available
2. The requirement fulfills an existing Government need
3. Exercising the option is the most advantageous method price and other
factors considered
4. The option was synopsized IAW FAR 5 (or exempted)
The PCO should have a written D&F in the file in order to use options
The PCO should also consider if the contractor is responsible and if their
performance is satisfactory.
-If the option price during a competitive source selection was not evaluated,
is the option valid? - -No. All options need to be priced because they were
awarded on a competitive basis.
-Can the PCO cite the "Changes Clause" to increase quantities on a
production contract? - -No. The Changes Clause cannot be used to increase
quantities on a production contract.
(a) The Contracting Officer may at any time, by written order, and without
notice to the sureties, if any, make changes within the general scope of this
contract in any one or more of the following:
(1) Drawings, designs, or specifications when the supplies to be furnished are
to be specially manufactured for the Government in accordance with the
drawings, designs, or specifications.
,(2) Method of shipment or packing.
(3) Place of delivery.
-Is any approval required for an effort that is out of scope ? - -Changes
outside the scope of the original contract are considered new work and
constitute a cardinal change, and in this case, one of two things should
happen:
1. Compete the new work
2. Get a J&A and seek proper approval
-What are the four essential elements the PCO must address when making a
Scope Determination? - -1. Scope of the competition - could the original
offerors have reasonable anticipated such a change?
2. Contract type - Requirments should be better defined in a FFP contract
therefore require less changes.
As opposed to a RDT&E contract.
3. Period of performance - will the PoP be extended significantly so as to
constitute new work?
4. Overall cost/price change - what has been the total change in price
throughout all modifications?
-What must the PCO do for any change and/or modification estimated to be
$1M or more? - -Obtain legal review of the proposed action and document
the review in the contract file
-Where can a PCO look to help determine if a change is in-scope? - -Various
source documents to include: SOO/SOW/PWS, synopsis, RFP, exchanges with
industry, market surveys, RFIs, etc.
-What is "scope creep?" - -Scope creep occurs when a series of in-scope
changes make the contract as a whole out-of-scope. The PCO must remain
cognizant of scope creep when changing/modifying existing contracts.
-What is a T&M contract? - -Limitations. A time-and-materials contract may
be used only if—
(1) The contracting officer prepares a determination and findings that no
other contract type is suitable. The determination and finding shall be—
(i) Signed by the contracting officer prior to the execution of the base period
or any option periods of the contracts; and
(ii) Approved by the head of the contracting activity prior to the execution of
the base period when the base period plus any option periods exceeds three
years; and
(2) The contract includes a ceiling price that the contractor exceeds at its
own risk. The contracting officer shall document the contract file to justify
the reasons for and amount of any subsequent change in the ceiling price.
Also see 12.207(b) for further limitations
,on use of Time-and-Materials or Labor Hour contracts for acquisition of
commercial items.
-Can a T&M contract be used for a commercial service? - -a) Except as
provided in paragraph (b) of this section, agencies shall use firm-fixed-price
contracts or fixed-price contracts with economic price adjustment for the
acquisition of commercial items.
(b) (1) A time-and-materials contract or labor-hour contract (see Subpart
16.6) may be used for the acquisition of commercial services when—
(i) The service is acquired under a contract awarded using— Competitive
Procedures, Fair Opportunity, with an executed D&F
-Define Certified Cost or Pricing Data. - -All facts, that as of the date of price
agreement, or if applicable, an earlier date agreed upon between the parties
that's as close as practicable to the date of agreement on price, prudent
buyers and sellers would reasonably expect to affect price negotiations
significantly.
-When is Certified Cost and Pricing data required? - -When executing
actions over $750,000 with the exception of prices established by statute,
commercial items, with adequate price competition, and when a TINA waiver
is granted.
-What is the "Bona Fide Needs" Rule? - -The Bona Fide Needs Rule basically
means that a federal agency must have a legitimate or bona fide need for
the requirement during the time period that the appropriation is available.
Pursuant to 31 U.S.C. 1502(a), "The balance of an appropriation limited for
obligation to a definite period is available only for payment of expenses
incurred during the period of availability, or to complete contracts properly
made during the period of availability and obligated consistent with Section
1501 of this title.." In other words, the basic rule states that a fiscal year's
(FY) appropriation may be obligated to meet a legitimate or bona fide need
existing in the FY for which the appropriation was made. This aspect of fund
availability seeks to ensure that only appropriations, which are available for
a specific FY are used to meet the legitimate needs of that FY. The bona fide
needs rule applies to both multiple year and annual appropriations. TIME,
PURPOSE, AMOUNT
-You have just awarded 3 contract actions. You remember something in FAR
Part 5 about synopsizing contract awards. The first action was a Small
Business Innovation Research contract for $99,978. The second action was a
$3M new delivery order under an existing IDIQ contract and the third action
was a purchase order for $12,995. As a PCO, would you synopsize these
contract actions? - -SBIRs, delivery orders under existing IDIQ contracts and
actions under the simplified acquisition threshold ($150K) do not require an
award synopsis. However the dollar threshold is not a prohibition against
, publicizing an award of a smaller amount when publicizing would be
advantageous to industry or to the Government.
-What is the requirement for obligating funds when awarding indefinite-
quantity contracts? - -For ID/IQ contracts all supplies and services to be
furnished shall be obtained via delivery order(s) or task order(s) issued by
individuals designated in the contract. Upon execution of the contract, an
obligation shall be recorded based upon the issuance of a delivery or task
order for the cost/price of the minimum quantity specified. Obtaining a
certification of availability of funding from the finance office does not satisfy
the requirement to record an obligation in the official accounting records of
the Government for the minimum order amount established by the award of
an IDIQ contract. The Government's actual obligation must be recorded at
the time of contract award. Recording and subsequently reporting the
required obligation using anything other than a delivery or task order will
result in the action not being reported in FPDS-NG. The Recording of
Obligations Act is implemented in the DoD Financial Management Regulation
(FMR) (DoD 7000.14-R) (See paragraph 080504 of the FMR). The Defense
Finance and Accounting Service (DFAS) is responsible for recording
contractual obligations in the Air Force accounting records. Where the
quantity required under a contract is indefinite, the ultimate amount of
obligation is determined by subsequent orders; the amount of any required
minimum order specified in the contract, however, shall be recorded as an
obligation upon execution of the contract. For contracts that require the
contractor to perform unilaterally placed orders above the required
minimum, record an obligation in the amount of the order price or ceiling at
the time the order is placed. An order in excess of the required minimum
that has to be negotiated or accepted by the contractor under terms of the
contract shall be recorded as an obligation upon contractor's acceptance of
the order in the amount of the agre
-When may a T&M contract be used? What must the D&F contain? Who
would approve the following D&Fs: A T&M contract for $650K; A T&M
contract for $500K in which the base period plus option periods will be a total
of 4 years; A T&M contract for $1.5M of services (base plus options will be 5
years.)? - -T&M contract may be used only when it's not possible at the time
of placing the contract to estimate accurately the extent or duration of the
work or to anticipate costs with any reasonable degree of confidence, and
ONLY if the PCO prepares a D&F that "no other contract type is suitable," and
the contract includes a ceiling price that the contractor exceeds at their own
risk. The D&F must contain sufficient facts and rationale to justify that no
other contract type is suitable (should go through all the contract types). At a
minimum the D&F shall include a description of the market research
conducted and establish that it is not possible at the time of placing the
contract or order to accurately estimate the extent or duration of the work or
to anticipate costs with any reasonable degree of certainty. A T&M contract
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