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CFCM Study Section 2
FAR Parts 10 - 12
| Question | Answer |
|---|---|
| Which FAR Part covers Market Research? | FAR Part 10 |
| In regards to market research, what must agencies ensure? | That legitimate needs are identified and tradeoffs evaluated to acquire items that meet those needs. |
| In regards to market research, how should agencies needs be stated? | agencies needs should be stated in terms sufficient to allow the conduct of market research |
| How must agencies conduct market research? | appropriate to the circumstances |
| At what point in the acquisition process should market research be conducted? | In most circumstances, before developing new requirements documents and before soliciting offers. |
| How often should market research be conducted? | Market research should be conducted on an ongoing basis |
| Why is market research done? | 1. to determine if sources capable of satisfying the agency's requirements exist 2. to determine if which commercial items or non-developmental items could either meet the governments needs or could be modified to meet them |
| What basic limits should agencies place on requests for information when conducting market research? | 1. RFIs should not be unduly burdensome 2. potential sources should not have to submit more than the minimum information necessary |
| If an agency anticipates bundling a contract at any point, who should they consult with? | The SBA Procurement Center Representative (PCR) |
| How long before releasing a solicitation for a bundled requirement, or placing a bundled order without a solicitation, must the agency notify any incumbent small business concerns? | 30 days |
| What should an agency include in a notification to a small business concern of a bundled solicitation? | instructions on how that concern may contact appropriate SBA representative |
| What are some factors that will cause the extent a commercial or non-developmental item is able to meet the government's needs or could be modified to meet them | 1. urgency 2. estimated dollar value 3. complexity 4. past experience |
| What are 4 techniques for conducting market research? | 1. contacting knowledgeable individuals in govmt & industry rgrdg market capab to meet rqmts 2. reviewing results of recent market research 3. publishing RFIs in appropriate technical, scientific, or business publications 4. Querying govmt acqu dbases |
| What are 4 more techniques for conducting market research? | 5. communicating online with industry, acquisition personnel, & customers 6. obtaining source lists of similar items from other contracting activities or agencies 7. rvwng catalogs & other prod literature 8. interchange mtgs or presolicitation confcs |
| If market research indicates that commercial or non-developmental items might not be available to satisfy agency needs, what are agencies required to do? | Re-evaluate the need and determine whether the need can be restated to permit commercial or non-developmental items to satisfy their need. |
| If market research establishes that the governments need may be met by a type of item or service customarily available in the commercial marketplace that would meet the definition of a commercial item, what must the contracting officer do? | solicit and award any resultant contract in accordance with FAR Part 12 |
| If market research establishes that the governments needs cannot be met by a type of item or service customarily available in the commercial marketplace, what must the contracting officer do? | The contracting officer shall not use FAR Part 12 and the notice to prospective offerors must indicate that FAR Part 12 will not be used. |
| What must a prime contractor determine under prime contracts greater than $5.5M for other than commercial items? | 1. If commercial items or non-developmental items can meet the agency's requirements or be modified to work 2. the extent to which commercial or non-developmental items could be incorporated at the component level |
| Which FAR Part covers describing agency needs? | FAR Part 11 |
| How shall agencies specify their needs using market research? | in a manner designed to promote full and open competition and only include restrictive provisions or conditions to the extent necessary to satisfy the needs of the agency or as authorized by law |
| Acquisition officials, to the maximum extent practicable, should state requirements with respect to an acquisition of supplies or services in terms of: | 1. Functions to be performed 2. Performance required 3. Essential physical characteristics |
| Acquisition officials should define requirements in terms that: | 1. enable and encourage offerors to supply commercial items. or 2. to the extent that commercial items are not available, non-developmental items |
| Offerors of commercial or non-developmental items should be provided an opportunity to: | compete in any acquisition to fill such requirements |
| Prime contractors and subcontractors at all tiers should be required to: | incorporate commercial items or non-developmental items as components of items supplied to the agency |
| In process of defining government requirements for products and services, various statutes and executive orders require consideration of | 1. sustainable acqu, including energy-efficient & water-efficient prdcts & svcs that may utilize a. renewable energy tech b. recovered mtrls c. bio-based prdcts d. other environmentally preferable prdcts & svcs incl EPEAT registered electronic prdcts |
| When using "brand name or equivalent" in an item description, what else must be included in the description? | a general description of those salient physical, functional, or performance characteristics of the brand name item that an "equal" item must meet to be acceptable for award. |
| When should "brand name or equivalent" descriptions be used? | When the salient characteristics are firm requirements (FAR 11.402) |
| What FAR part covers Delivery or Performance Schedules? | FAR Part 1.4 |
| Time of Delivery/performance must be: | 1. realistic 2. clearly stated within the solicitation |
| Unreasonable delivery or performance schedules are: | 1. inconsistent with small business policy 2. may restrict competition 3. may result in higher contract prices |
| How may contract delivery or performance be expressed? | 1. specific calendar dates 2. specific periods from date of ctrct or from date of receipt by the ctrctr of notice of award or acceptance by the gvmt 3. specific time for delivery after receipt by ctrctr of each individual order issued under the ctrct |
| Which FAR Part covers Liquidated Damages? | FAR Part 11.5 |
| FAR Part 11.5 covers using liquidated damages clauses in solicitations and contracts for: | 1. Supplies 2. Services 3. Research and Development 4. Construction |
| FAR Part 11.5 does not apply to liquidated damages for: | 1. subcontracting plans (See 19.705-7) 2. contract work hours and safety standards (See subpart 22.3) |
| What must the contracting officer consider prior to using a liquidated damages clause? | potential impact on pricing, competition, and contract administration |
| Liquidated damages clauses should be only used when: | 1. the time of delivery or timely performance is so important that the government may reasonably expect to suffer damage if delinquent 2. the extent or amount of such damage would be difficult or impossible to estimate accurately or prove |
| Are liquidated damages punitive in nature or negative performance incentives? | No |
| What is the purpose of liquidated damages? | To compensate the government for the probable damages it will experience. |
| The liquidated damages rate must be: | a reasonable forecast of fair compensation for the harm that will be caused by late delivery or untimely performance |
| What FAR Part covers priorities and allocations? | FAR Part 11.6 |
| What is the purpose of the Defense Priorities and Allocations System (DPAS)? | authorize use of priorities to require that contracts in support of national defense be accepted & performed on a preferential priority basis over all other contracts, & to allocate materials & facilities in such a manner as to promote national defense |
| What are the two levels of priority? | 1. DO - have equal priority with each other and take preference over unrated orders 2. DX - have equal priority with each other and take preference over both DO-rated and unrated orders |
| Which FAR Part covers variation in quantity? | FAR Part 11.7 |
| True or False: The government may not authorize a variation in the quantities delivered under a fixed-price supply contract | False |
| True or False: the variation allowed in a fixed-price supply contract should be a standard variation | False: there should be no standard variation or usual variation percentage |
| What is the standard maximum allowable variation in a fixed-price supply contract? | NTE 10% unless a different limitation is established by agency regulations |
| Which FAR Part covers the acquisition of commercial items? | FAR Part 12 |
| What is the policy regarding the government acquisition of commercial or non-developmental items? | It is policy that the government acquire commercial or non-developmental items whenever available and to require prime contractors and subcontractors at all tiers to incorporate commercial and non-developmental products as components whenever possible. |
| When does FAR Part 12 not apply to the purchase of commercial items? | 1. at or below the micro-purchase threshold ($3,500) 2. acquired using the SF-44 3. acquired using the imprest fund 4. acquired using the governmentwide commercial purchase card 5. acquired directly from another agency |
| What FAR Part covers special requirements for the acquisition of commercial items? | FAR Part 12.2 |
| What authority establishes special requirements for the acquisition of commercial items intended to more closely resemble those customarily used in the commercial marketplace? | Public Law 103-355 |
| Contracting officers shall use the policies unique to the acquisition of commercial items prescribed in FAR Part 12.2 in conjunction with the policies and procedures in parts: | Part 13 - simplified acquisition procedures, 14 - sealed bidding, or 15 - contracting by negotiation; as appropriate for the particular acquisition |
| When should simplified acquisition procedures be used for commercial items above the simplified acquisition threshold? | For acquisitions of commercial items exceeding the simplified acquisition threshold ($150K), but not exceeding $7M including options, employ the simplified procedures in 13.5 |
| What standard form shall the contracting officer use for all commercial acquisitions expected to exceed simplified acquisition threshold ($150K), a paper solicitation or contract is being issued, & streamlined acquisition procedures are not being used? | The SF 1449 - Solicitation/Contract/Order for Commercial Items |
| Is the use of the SF1449 mandatory for acquisitions that do not exceed the Simplified Acquisition Threshold ($150K)? | No but it is encouraged. |
| Where technical information is required to effectively evaluate offers, agencies should review: | existing product literature in lieu of technical proposals whenever possible. |
| True or False: Agencies should allow offerors to propose only one product per request | False: Agencies should allow offerors to propose more than one product that will meet the government's needs, and contracting officers shall evaluate each product as a separate offer |
| What should be an important element of every evaluation and contract award for commercial items? | Past Performance |
| True or False: Past performance should be a minor element in the evaluation and contract award for commercial items? | False, past performance should be an important element |
| What contract type shall agencies use for the acquisition of commercial items? | 1. Firm-fixed price or 2. Fixed-price with economic price adjustments |
| What contract type shall agencies use for the acquisition of commercial services? | 1. Time and Materials or 2. Labor Hour |
| When may Indefinite Delivery contracts be used? | 1. When the prices are established on a firm-fixed price or fixed price with economic price adjustment basis, or 2. rates are established for commercial services on a time-and-materials or labor-hours basis |
| True or False: Contracts for commercial items shall utilize government inspection and testing to ensure quality | False: Contracts for commercial items shall rely on a contractor's existing quality assurance systems as a substitute for government inspection and testing unless other customary market practices exist |
| When establishing price reasonableness in accordance with appropriate FAR clauses, what should the contracting officer be aware of? | customary commercial terms and conditions that may affect the pricing being provided to the government |
| When may a contracting officer offer government financing in accordance with FAR Part 32? | If it is standard market practice for some commercial items to include buyer contract financing, the contracting officer may offer government financing |
| In regards to technical data and the rights in that data, what does the government acquire? | Unless it is mandated by agency specific statute, the government acquires only the technical data and the rights in that data that are provided to the general public with the commercial item. |
| In regards to technical data, what should the contracting officer assume? | The contracting officer shall assume the data was developed exclusively at private expense |
| If the government requires technical data rights, what must the contracting officer do? | Include the specific contract clauses |
| Commercial computer software and documentation shall be acquired under licenses: | customarily provided to the public to the extent that those licenses are consistent with federal law and satisfy the government needs. |
| DO Cost Accounting Standards apply to commercial items? | No, unless the contract provides for economic price adjustment based on actual costs incurred (FAR 12.214) |
| What FAR Part covers solicitation provisions and contract clauses for the acquisition of commercial items? | FAR Part 12.3 |
| When may contracting officers include FAR provision and clauses other than those in FAR Part 12? | The contracting officer may include FAR provisions and clauses other than those in FAR Part 12 by addendum when their use is consistent with the limitations on tailoring of provisions and clauses found in FAR 12.302 |
| What AFR Part covers limitations on tailoring contract terms? | FAR Part 12.302 |
| What limitation is placed on tailoring clauses or including additional terms and conditions in a solicitation for commercial items? | The contracting officer shall not tailor any clause or otherwise include any terms or conditions that is inconsistent with customary commercial practices unless a waiver is approved iaw agency procedures |
| What must be included in a waiver allowing additional terms or conditions, or tailoring a clause, that is inconsistent with a commercial item? | 1. describe the customary commercial practice 2. support the need to include a term or condition 3. determination that the use of the customary commercial practice is inconsistent with the needs of the government |
| What FAR Part covers unique requirements regarding terms and conditions for commercial items? | FAR Part 12.4 |
| When does FAR Part 12.4 - Unique Requirements Regarding Terms and Conditions for Commercial Items apply? | When the paragraphs in 52.214-4 -- Contract Terms and Conditions -- Commercial Items do not reflect the customary practice, as well as guidance on administration when terms differ substantially from those contained elsewhere in the FAR |
| What is the basis for the clause 52.212-4(a) Contract Terms and Conditions -- Commercial Items acceptance? | Based on the assumption that the government will rely on the contractor's assurances that the commercial item conforms to the contract requirements. |
| What are the governments rights after termination for cause? | The governments rights include all remedies available to any buyer in the marketplace |
| What is the governments preferred remedy after termination for cause? | acquire similar items from another contractor and charge the defaulted contractor with any excess reprocurement costs together with any incidental or consequential damages incurred because of the termination |
| What are the governments post-award warranty rights contained in FAR 52.212-4 Contract Terms and Conditions? | 1. implied warranty of merchantability 2. implied warranty of fitness for particular purpose |
| What is the implied warranty of merchantability? | Item is reasonably fit for the ordinary purposes for which such items are used. Item must be of average, fair, or medium-grade quality & must be comparable in quality to those that will pass without objection in the trade/market for items of same descr |
| What is the implied warranty of fitness for a particular purpose? | item is fit for use for the particular purpose for which the government will use the items. |
| When can the government rely on an implied warranty of fitness for a particular purpose? | 1. the seller knows the particular purpose for which the government intends to use the item 2. the government relied upon the contractor's skill and judgment that the item would be appropriate for that particular purpose |
| When it is customary commercial practice to exclude or limit the implied warranties contained in 52.214-4 in the provisions of an express warranty, what shall the contracting officer ensure? | that the express warranty provides for the repair or replacement of defective items discovered within a reasonable period of time after acceptance. |
| How shall express warranties be included in the contract? | By addendum |
| What FAR Part covers applicability of certain laws to executive agency contracts for the acquisition of commercial items? | FAR Part 12.5 |
| What FAR Part covers streamlined procedures for evaluation and solicitation for commercial items? | FAR Part 12.6 |
| What is the purpose of streamlined procedures? | to simplify the process of preparing and issuing solicitations and evaluating offers for commercial items consistent with customary commercial practices |
| True or False: When a written solicitation will be issued under streamlined procedures, the Governmentwide Point of Entry (GPE) Synopsis and solicitation must be kept separate. | False, the Governmentwide Point of Entry (GPE) Synopsis and solicitation may be combined. |
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