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Contracting Officer Unlimited Warrant Board With Questions And 100% SURE ANSWERS
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JACKLINEContracting Officer Unlimited Warrant Board With Questions And 100% SURE ANSWERS
Terms in this set (134)
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
What is an option? 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.
The PCO must determine that:
1. Funds are available
2. The requirement fulfills an existing Government need
What must a PCO do before exercising an 3. Exercising the option is the most advantageous method price and other factors considered
option? 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.
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,If the option price during a competitive source No. All options need to be priced because they were awarded on a competitive basis.
selection was not evaluated, is the option valid?
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
Can the PCO cite the "Changes Clause" to
following:
increase quantities on a production contract?
(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.
Changes outside the scope of the original contract are considered new work and constitute a
Is any approval required for an effort that is out cardinal change, and in this case, one of two things should happen:
of scope ? 1. Compete the new work
2. Get a J&A and seek proper approval
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
What are the four essential elements the PCO less changes.
must address when making a Scope As opposed to a RDT&E contract.
Determination? 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 Obtain legal review of the proposed action and document the review in the contract file
modification estimated to be $1M or more?
Where can a PCO look to help determine if a Various source documents to include: SOO/SOW/PWS, synopsis, RFP, exchanges with industry,
change is in-scope? market surveys, RFIs, etc.
Scope creep occurs when a series of in-scope changes make the contract as a whole out-of-
What is "scope creep?" scope. The PCO must remain cognizant of scope creep when changing/modifying existing
contracts.
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, 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
What is a T&M contract? (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.
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.
Can a T&M contract be used for a commercial
(b) (1) A time-and-materials contract or labor-hour contract (see Subpart 16.6) may be used for
service?
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
All facts, that as of the date of price agreement, or if applicable, an earlier date agreed upon
Define Certified Cost or Pricing Data. 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 When executing actions over $750,000 with the exception of prices established by statute,
required? commercial items, with adequate price competition, and when a TINA waiver is granted.
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
What is the "Bona Fide Needs" Rule? 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
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