You Passed FAC-C On First Try: Contract Specialist Guide PDF

YOU PASSED YOUR FAC‐C ON THE FIRST TRY! CONTRACT SPECIALIST GUIDE BOOIK FAR Parts 1: Federal Acquisition Regulation Systems 2. Definitions of Words and Terms 3. Improper Business Practices and Personal Conflict of Interest 4. Administrative and Information Matters 5. Publicizing Contract Actions 6. Competition Requirements 7. Acquisition Planning 8. Required Sources of Supplies and Services 9. Contractor Qualifications 10. Market Research 11. Describing Agency Needs 12. Acquisition of Commercial Items 13. Simplified Acquisition Procedures 14. Sealed Bidding 15. Contracting by Negotiation 16. Types of Contracts 17. Special Contracting Methods 19. Small Business Programs 31. Contract Cost Principles 32. Contract Financing 33. Protest Disputes and Appeals 42. Contract Administration and Audit Services 43. Contract Modifications 44. Subcontracting Policies and Procedures 45. Government Property 46. Quality Assurance 49. Termination of Contracts 52. Solicitation Provisions and Contract Clauses 53. Forms Appropriation Categories – Funding Type Appropriation Categories There are five (5) major Department of Defense appropriation categories that Congress has established: 1. 2. 3. 4. 5. Research, Development, Test and Evaluation (RDT&E); Procurement; Operation and Maintenance (O&M); Military Personnel (MILPERS); and Military Construction (MILCON). The main appropriation categories and their number designation are listed below: Research, Development, Test, and Evaluation (RDT&E): appropriations fund the efforts performed by contractors and government activities required for the Research and Development (R&D) of equipment, material, computer application software, and its Test and Evaluation (T&E) to include Initial Operational Test and Evaluation (IOT&E) and Live-Fire Test and Evaluation (LFT&E). RDT&E also funds the operation of dedicated R&D installations activities for the conduct of R&D programs. Available two (2) Years. Funding Policy: Incremental Procurement: appropriations fund those acquisition programs that have been approved for production (to include Low-Rate Initial Production (LRIP) of acquisition objective quantities), and all costs integral and necessary to deliver a useful end item intended for operational use or inventory upon delivery. Available three (3) Years. Ships available for (5) Years Funding Policy: Full Operation and Maintenance (O&M): appropriations fund expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support. Available one (1) Year. Funding Policy: Annual Military Personnel (MILPERS): appropriations fund costs of salaries and other compensation for active and retired military personnel and reserve forces based on end strength. Available one (1) Year. Funding Policy: Annual Military Construction (MILCON): appropriations fund major projects such as bases, schools, missile storage facilities, maintenance facilities, medical/dental clinics, libraries, and military family housing. Available five (5) Years. Funding Policy: Full Appropriation Numerical Codes Appropriations Accounts (Years Available) Research & Development (R&D) (2 Years) Navy (17) Army (21) 1319 2040 Marines Air Force (57) DoD Wide (97) 3600 0400 Procurement (3 Years) – Aircraft 0300 1506 – Missiles 2031 3010 2032 3020 – Space – Weapons 3021 1507 – W&TCV 2033 – Ammunition 1508 – SCN (Ships) (5 Years) 1611 – Other 1810 2034 3011 2035 3080 – USMC MILPERS (1 Year) 1109 1453 2010 1105 3500 Operations & Maintenance (O&M) (1 Year) 1804 2020 Military Construction (MILCON) (5 Years) 1205 2050 1106 3400 0100 3300 0500 Contract Forms SF 26 -Award/Contract – used to award nego ated contracts in which signatures of both par es on a single document is appropriate. SF 30- Amendment of Solicita on/Modiﬁca on of Contract - used for any amendment to a solicita on, change orders issued under the Changes clause, any other unilateral contract modiﬁca on, administra ve changes, supplemental agreements, and removal, reinstatement, or addi on of funds to a contract. If it is an cipated that a change will result in a price change, the es mated amount of the price change shall not be shown on copies of the SF30 furnished to the contractor. SF 33 – Solicita on, Oﬀer, and Award – may be used to award either nego ated contracts or contracts u lizing sealed bidding. SF 44 – Purchase Order Invoice Voucher – used for simpliﬁed acquisi ons at or below the micro-purchase threshold, except for purchases under unusual and compelling urgency or in support of con ngency opera ons SF 1442 – Solicita on, Oﬀer, and Award (Construc on, Altera on, or Repair) – used for solici ng oﬀers and awarding contracts expected to exceed the simpliﬁed acquisi on threshold. These acquisi ons must be for: Construc on, altera on, or repair Dismantling, demoli on, or removal of improvements SF 1449 – Solicita on/Contract/Order for Commercial Products and Commercial Services – Required for solicita on for commercial products and commercial services if the acquisi on will exceed the simpliﬁed acquisi on threshold. It is encouraged for commercial acquisi ons not exceeding the simpliﬁed acquisi on threshold. DD 254 – Department of Defense Form – Contract Security Classiﬁca on Speciﬁca on – used to provide security classiﬁca on guidance to U.S. contractors, and subcontractors as applicable, requiring access to informa on classiﬁed as conﬁden al, secret, or top secret. DD 1155 – Order for Supplies or Services – used for placing orders under indeﬁnite-delivery contracts or if the SF 1449 is not used under simpliﬁed acquisi on procedures. DD 1409 – Abstract of Oﬀers – Prescribed for use in recording bids. DD 1547M – Record of Weighted Guidelines Applica on – used to facilitate a structured approach to proﬁt/fee analysis. DD 1861 – Contract Facili es Capital Cost of Money – used to es mate the facili es capital cost of money and capital employed (used in conjunc on with the Cost Accoun ng Standards Board (CASB-CMF) and cost of money factors). UNIFORM CONTRACT FORMAT (See FAR 15.204-1 – Table15-1 and 14.201-1 – Table 14-1) Part I -- The Schedule Continued Part I -- The Schedule A B C D - Solicitation/contract form Supplies or services and prices/costs Description/specifications/statement of work Packaging and marking E - Inspection and acceptance F - Deliveries or performance. G - Contract administration data H - Special contract requirements. Part II -- Contract Clauses I - Contract clauses. Part III -- List of Documents, Exhibits, and Other Attachments J - List of attachments. Part IV -- Representations and Instructions. K - Representations, certifications, and other statements of offerors or respondents/Bidders. L - Instructions, conditions, and notices to offerors or respondents/Bidders. M - Evaluation factors for award. 12.303 -- CONTRACT FORMAT (COMMERCIAL) - “maximum extent practicable” (a) Standard Form (SF) 1449; (b) Continuation of any block from SF 1449, such as -(1) Block 10 if an incentive subcontracting clause is used (the contracting officer shall indicate the applicable percentage); (2) Block 18B for remittance address; (3) Block 19 for contract line item numbers; (4) Block 20 - 24 for schedule of supplies/services; or (5) Block 25 for accounting data; (should include invoicing and acceptance information) (c) Contract clauses -(1) 52.212-4, Contract Terms and Conditions -- Commercial Items, by reference (see SF 1449 block 27a); (2) Any addendum to 52.212-4; and (3) 52.212-5, Contract Terms and Conditions Required to Implement Statutes and Executive orders; (d) Any contract documents, exhibits or attachments; and (e) Solicitation provisions -(1) 52.212-1, Instructions to Offerors -- Commercial Items, by reference (see SF 1449, Block 27a); (2) Any addendum to 52.212-1; (3) 52.212-2, Evaluation -- Commercial Items, or other description of evaluation factors for award, if used; and (4) 52.212-3, Offeror Representations and Certifications -- Commercial Items. Contract Instrument Designation Key Instrument Letter designation (i) Blanket purchase agreements A (ii) invitations for bids B (iii) Contracts of all types except indefinite-delivery contacts (see subpart 16.5) C (iv) Indefinite-delivery contracts (including Federal Supply Schedules, Governmentwide acquisition contracts (GWACs), and multi-agency contracts) D (v) Reserved for future Federal Governmentwide use E (vi) Task orders, delivery orders or calls under - Indefinite-delivery contracts (including Federal Supply Schedules, Governmentwide acquisition contracts (GWACs), and multi-agency contracts) Blanket purchase agreements; or Basic ordering agreements F (vii) Basic ordering agreements G (viii) Agreements, including basic agreements and loan agreements, but excluding blanket purchase agreements, basic ordering agreements, and leases. Do not use this code for contracts or agreements with provisions for orders or calls. H (ix) Do not use this letter I (x) Reserved for future Federal Governmentwide use J (xi) Reserved for departmental or agency use K (xii) Lease agreements L (xiii) Reserved for departmental or agency use M (xiv) Reserved for departmental or agency use N (xv) Do not use this letter O (xvi) Purchase orders (assign V if numbering capacity of P is exhausted during a fiscal year) P (xvii) Request for quotations (assign U if numbering capacity of Q is exhausted during a fiscal year) Q (xviii) Requests for proposals R (xix) Reserved for departmental or agency use S (xx) Reserved for department or agency use T (xxi) See Q, requests for quotations U (xxii) See P, purchases orders V (xxiii) Reserved for future Federal Governmentwide use W (xxiv) Reserved for future Federal Governmentwide use X (xxv) Imprest fund Y (xxvi) Reserved for future Federal Governmentwide use Z U02: Skills and Roles Contracting Competency: Business Skills & Acumen Number of Questions Addressed on Exam: 6 DoD Contracting Competency Model Should you require assistance, please contact the DAU Help Desk. Version: 1.0.2 Contracting Life Cycle Phases Lesson 1 of 1 Contracting Life Cycle Phases Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Contract Life Cycle Phases 0 Develop and execute business strategies. 0 Guide the customer and other stakeholders through the contract life cycle phases. 0 Understand the regulatory environment in order to legally implement an effective solution and manage risk while satisfying contract requirements and obligation. C O NT I NU E Phases of the Contracting Process The contracting process consists of three Contract Life Cycle Phases: Pre-award, Award, and Postaward.  ACCESSIBILITY: Use the Tab key to make your selection and use the Enter key to expand the block of information. This information is also available in the Keyboard Shortcuts list. 1. Pre-award Phase – The ﬁrst contract life cycle phase is Pre-Award. The pre-award 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. Requirement (product or service to be bought) deﬁnition, the budgeting/funding process, and acquisition planning typically start before the contracting process. The pre-award phase consists of two primary activities: 2.1 Develop Solicitation (for our purposes, this is done by the Government or the contractor, focused on obtaining a subcontractor) In planning the solicitation, the buying activity must assess the need and analyze the requirement as well as make sure that contract outcomes will be measurable and properly incentivized. The buying activity must also verify the availability of funds. 0 Buying activities must also conduct market research to identify potential suppliers, evaluate if the requirement is achievable, and perform any pre-oﬀer conferences or communication. 0 Resources include FAR 15.407-2 Make-or-buy program (along with corresponding DFARS guidance), FAR subpart 11.4 Delivery or Performance Schedules, FAR part 45 Government Property, and DFARS part 227 Patents, Data, and Copyrights. Before ﬁnalizing the solicitation, the contracts manager will participate in choosing a contract type and contracting method, help determine applicable regulations, and assist in building an evaluation strategy for oﬀers. 0 FAR part 10, Market Research, is a key resource and is required by law. Note: Market Research is a continuous process throughout all phases of the contract life cycle. In planning the solicitation, buying activities should analyze risks: this can take the form of performing make or buy decisions, conducting a supply or services determination, and understanding the required schedule or needs of the customer. Also important is a clear determination of the need for property (buyer or seller provided) to include intellectual property. 0 FAR part 7, Acquisition Planning, and FAR part 11, Describing Agency Needs, are key resources. FAR parts 12, 13, 14, and 15 detail diﬀerent approaches for choosing a contracting method and developing an approach for evaluating oﬀers. FAR part 16 is the primary source for information about contract types. The buying activity next must request an oﬀer using some form of a solicitation. During this process, potential oﬀerors (or bidders) may have questions that need to be answered and the solicitation may need to be amended. To issue the solicitation, the buying activity must determine the need and means of publicizing the solicitation so that oﬀerors are aware of the potential business opportunity. 0 FAR parts 12, 13, 14, and 15 detail diﬀerent guidelines for forming a solicitation. FAR part 5 addresses publicizing contract actions. 2.2 Develop Oﬀer (this is done by the Contractor or Subcontractor) In response to a solicitation, the seller will submit an oﬀer. 0 0 0 The oﬀer must align with the oﬀeror's overall sales plan and be within the oﬀeror's overall risk strategy. Part of developing an oﬀer includes determining which parts of contract performance the oﬀeror will need assistance from partners, subcontractors, or vendors. Oﬀerors often will communicate with the buying activity to make sure the oﬀeror provides a superior solution for the buyer. The value added by this process is that it allows the seller (oﬀeror) to provide the buyer with a comprehensive solution to the buyer’s requirements that will also enhance the seller’s competitive position in the marketplace. While oﬀerors are aware of the laws and regulations the Government buyer must follow, an oﬀeror builds an oﬀer based on its own business strategy and operating procedures. 2. Award Phase – The second contract life cycle phase is Award. The award phase involves all the work performed by both the buyer and seller that produces an awarded contract. Some contracts are very simple and others are extremely complex, but the majority fall somewhere in between. There is one activity in the award phase. 3.1 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. 0 FAR 15.404, Proposal Analysis, gives guidance that can be generalized for contract methods beyond those covered by FAR part 15. Based on this analysis, to plan for negotiations the buying activity may ask for clariﬁcation from oﬀerors and then develop negotiation objectives. The oﬀeror will respond to the requests for clariﬁcation and prepare for negotiations as well. 0 This process is described in FAR parts 12, 13, 14, and 15 depending on the nature of the acquisition strategy being pursued. The buyer and seller may exchange ideas or have discussions; this may be informal or highly structured as needed. At a point in forming a contract, the buying activity will select a source or pick an oﬀeror or multiple oﬀerors to award a contract. This may come after a highly structured source selection process, formal negotiations, revised oﬀers from the oﬀerors, or in many cases, a more simple process. In all cases, documentation must explain the process that arrived at an oﬀeror being awarded a contract. 0 FAR parts 12, 13, 14, and 15 all describe various contract formation processes; each generally follow what is outlined above. If during the Award Life Cycle Phase the buyer or seller(s) have a disagreement, there is a structured process for a seller to "protest" an action(s) by the buyer. Resolution of the protest may involve appeal of decisions to higher levels. 0 0 FAR subpart 33.1 and the corresponding DFARS passages discuss the protest processes. The "Manage Disagreements" unit in this Prep Course provides more detailed information on Protests. 3. Postaward Phase – The third contract life cycle phase is Post-Award. The post-award phase involves all the work performed by both the buyer and seller during contract performance, to include changes to the contract, contract close-out, and sometimes termination of a contract. The post-award phase (sometimes called contract administration) is comprised of two primary activities: 4.1 Perform Contract During this phase, we are monitoring risk and assessing its impact on contract performance ensuring compliance with (1) contractual terms and conditions and (2) contract technical requirements during contract performance up to contract closeout or termination. Both the buyer and seller must administer the contract. That can start with a conference immediately after contract award, it requires continuous documentation throughout the life of the contract, and depends on good communication and funds management as well as assessing seller performance. 0 FAR part 42, Contract Administration and Audit Services, and corresponding DFARS passages outline the vast array of post award activities and responsibilities. During post-award contract administration, quality of contract performance is an important focus. This quality includes schedule, cost, and successful delivery of services or items; quality is the responsibility of the seller, however the buyer must have proper oversight to protect the interest of stakeholders. 0 Most sellers have a supply chain of support for their contract performance. From a buyer perspective, the Government views this supply chain as the network of subcontractors, vendors, and other service/item providers to the seller or prime contractor. 0 FAR part 46, Quality Assurance, gives important guidance for planning and assuring successful contract performance. FAR part 44 (and corresponding DFARS passages) describe the Federal Government and DoD policies and procedures as they relate to subcontractors. As contract performance continues, changes may be needed to the contract arrangement. This may involve buyer and seller negotiations for a contract modiﬁcation or may be made possible by contractual provisions giving the buyer unilateral rights to make changes. In some circumstances, contracts will need to be terminated. 0 FAR part 43 covers contract modiﬁcations. 0 FAR part 49 discusses the termination of contracts. 4.2 Close Contract Contract closeout is the process of verifying all 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. The buyer will also complete an assessment of seller performance for future decision makers. 0 FAR 4.804 covers the closeout of Government contract ﬁles and FAR part 45 covers the responsibilities associated with Government property prior to and through contract closeout. Summary – Pre-Award Life Cycle Phase Pre-Award is the ﬁrst phase of the contract life cycle. The pre-award process for the buyer includes assisting the customer in deﬁning the requirement. Additionally, the process includes developing a comprehensive plan for fulﬁlling the requirement in a timely manner at a reasonable price. This is accomplished by developing and executing an overall strategy for the purchase, which is accomplished through researching the marketplace, developing contracting strategies, preparing solicitations, and requesting oﬀers. The pre-award process for the seller includes developing and executing a strategy for obtaining the award of a contract, including pre-sales activities, market strategies, and responding to the solicitation. Award Life Cycle Phase The second contract life cycle phase is Award. The award process involves all the work performed by both the buyer and seller that produces an awarded contract. Some contracts are very simple and others are very complex, but the majority fall somewhere in between. There is one domain in the award phase: Form Contract. The job tasks and competencies of the Form Contract domain produce the contract. For this phase, buyer job tasks include: evaluating oﬀers, conducting negotiations (as applicable), selecting the source, awarding the contract(s), debrieﬁng oﬀerors, and addressing mistakes in oﬀers and seller challenges to the selection process. For the seller, job tasks include: clarifying oﬀers, participating in negotiations, and preparing ﬁnal oﬀers. Post-Award Life Cycle Phase Once the award phase is completed, the Post-Award contract life cycle phase begins. This involves the contract management functions known as “contract administration” and “contract closeout.” The contract administration functions will vary greatly depending on the complexity of the contract. Both the buyer and seller are actively involved in contract administration to ensure satisfactory performance and to bring the contract to a successful conclusion. Buyer job tasks include: addressing any issues arising during contract performance that might increase performance risk, executing contract modiﬁcations, monitoring compliance of contract terms, making payment(s), and closing out the contract. Seller job tasks include: contract performance, invoicing, engaging in subcontracting activities, managing contract changes, and bringing the contract to a successful conclusion. Strategic and Tactical: Other sections of the Contracting Certiﬁcation Exam Prep Course will go into more depth at preparing you for the details of contracting that occur in each of these phases. Make sure you understand the strategic view of the typical life cycle of a contract as well as the more tactical details covered in other parts of this prep course. Who develops a solicitation? (Select all that are correct) □ The Government □ The oﬀeror □ The seller □ The buyer SUBMIT Who prepares an oﬀer? (Select all that is correct) □ The Government □ The contractor □ The seller □ The buyer SUBMIT Knowledge Review CONTINUE Scene 1 Slide 1 Continue ➔ Next Slide During the post-award phase while the contract is being performed, who has responsibility for quality? Scene 1 Slide 2 0 ➔ Next Slide 1 ➔ Next Slide 1 The Seller 2 The Buyer Scenario End START OVER  Scene 1 Slide 3 Continue ➔ End of Scenario C O NT I NU E Managing Contracts Throughout the Contract Lifecyle The Contracting Oﬃcer (KO) plays a vital role throughout the contacting lifecycle. From requirements identiﬁcation through contract closeout, the KO's responsibilities change and evolve from phase to phase. The Acquisition Team & Contracting Officer Acquisition De nition – FAR 2.101 tells us Acquisition means the 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. 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 1.102-3 describes the Acquisition Team as consisting of all participants in Government acquisition including not only representatives of the technical, supply, and procurement communities but also the customers they serve, and the contractors who provide the products and services. I The KO's Role on the Acq Team – FAR 1.102-4(a) states 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 consistent with the Guiding Principles. 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. KO Appointments – FAR 1.603-2 requires appointing oﬃcials, when selecting contracting oﬃcers, to 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 include: 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, including this and other applicable regulations. Specialized knowledge in the particular assigned ﬁeld of contracting. Satisfactory completion of acquisition training courses. DOD KO Requirements – DFARS 201.603-2 tells us that in order to qualify to serve as a contracting oﬃcer with authority to award or administer contracts for amounts above the simpliﬁed acquisition threshold, a person must: Have completed all contracting courses required for a contracting oﬃcer to serve in the grade in which the employee or member of the armed forces will serve. Have at least 2 years experience in a contracting position. Have 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, as may be established by the Secretary of Defense. DFARS 201.603-2(2) also lists several exceptions and ampliﬁcations to the above qualiﬁcations for contracting oﬃcer appointments. Contracting Of cer Responsibilities According to FAR 1.602-2, Contracting oﬃcers are responsible for ensuring 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. Accordingly, the following list (although not all inclusive) describes some of the responsibilities of a Contracting Oﬃcer: Ensure funding is available Ensure Suﬃcient Funds Contracting Oﬃcers must ensure suﬃcient funds are available for obligation for each contract action. (FAR 1.602-2(a)) Dealing with Contractors FAR 1.602-2(b) states that contracting oﬃcers shall ensure that contractors receive impartial, fair, and equitable treatment. This applies to all types of communications, written and verbal. Ensure impartial, fair, and equitable treatment Request assistance, as appropriate Request Assistance, as Appropriate Contracting oﬃcers shall request and consider the advice of specialists in audit, law, engineering, information security , transportation, and other ﬁelds, as appropriate. (FAR 1.602-2(c)) Contracting Oﬃcer Representative (COR) FAR 1.602-2(d) states that contracting oﬃcers shall designate CORs in writing and furnish copies to the contractor and the contract administration oﬃce. Designate in writing and furnish copies Lesson Completion Congratulations, you have successfully completed this unit of instruction. Please close this window in order to launch the next unit. U03: Communication & Documentation Contracting Competency: Communication & Documentation Number of Questions Addressed on Exam: 6 DoD Contracting Competency Model Should you require assistance, please contact the DAU Help Desk. Version: 1.0.2 Minimize the Effect of Personal Biases Maximize the Likelihood of Successful Results Facilitate Communications Among Affected Parties Lesson 1 of 3 Minimize the Effect of Personal Biases Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Communications 0 Minimize the In. uence/Effect of Personal Biases C O NT I NU E Personal and Organizational Bias The competency model emphasizes DoD contracting leadership's focus on clear decision making and eﬀective communication. Personal bias inﬂuences our decision making. It is a lifelong and individual personal eﬀort to minimize personal bias in professional decision making. One way to overcome personal bias in Defense contracting is to ground each decision in the FAR 1.102 statement of guiding principles for the Federal Acquisition System. The FAR says the System will: 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. FAR subpart 3.11 discusses personal conﬂicts of interest of contractor employees. 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. Similarly, FAR subpart 9.5 covers organizational and consultant conﬂicts of interest. 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. Contracting oﬃcers should review every acquisition, from the early planning stages throughout the life of a contract to identify and manage organizational conﬂicts of interest. Select the correct topic with the FAR part that gives guidance. Personal conﬂict of interest 0 FAR part 3 0 FAR part 9 0 FAR part 13 SUBMIT Organizational conﬂict of interest 0 FAR part 12 0 FAR part 9 0 FAR part 19 SUBMIT Lesson 2 of 3 Maximize the Likelihood of Successful Results Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Communications 0 Maximize the Likelihood of Successful Results C O NT I NU E Maximize the likelihood of successful results All contracting professionals should do everything in their power to see the contracts they write be successfully executed, both leading up to contract award, as well as throughout contract performance. With that backdrop, FAR 1.102-4(e) states that contracting oﬃcers “should take the lead in encouraging business process innovations and ensuring that business decisions are sound.” By maintaining a constant ﬂow of clear communication amongst the acquisition team (including industry), small issues can be addressed, and many times resolved, before they become major problems that could endanger the success of the acquisition. FAR 1.102-2(c)(2) tells us the contracting system must focus on "risk management" rather than "risk avoidance." The cost to the taxpayer of attempting to eliminate all risk is prohibitive. The contracting system should allow contracting professionals to take independent action based on their professional judgment. Along these lines, contracting professionals should exercise discretion, use sound business judgment, and comply with applicable laws and regulations in dealing with contractors and prospective contractors. All contractors and prospective contractors should be treated fairly and impartially but need not be treated the same. Lesson 3 of 3 Facilitate Communications Among Affected Parties Effective communication minimizes the effect of personal biases, maximizes the likelihood of successful results, and facilitates communications among affected stakeholders. Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Communication and Documentation 0 Facilitate communications among affected parties C O NT I NU E  ACCESSIBILITY: Use the Tab key to make your selection and use the Enter key to expand the block of information. This information is also available in the Keyboard Shortcuts list. Transparency and Open Communications The FAR excerpts below stress the importance of transparency to maintain the integrity of the procurement process. FAR 1.102-2(c) – Instructs that the business of acquisition should be conducted with openness. FAR 1.102-2(c)(1) – Goes on to say that not only must the system have integrity, but the actions of each member of the team must reﬂect integrity, fairness, and openness. Openness for the contracting oﬃcer applies primarily to? (Select all that apply) □ The Acquisition Team □ Contractors □ Oﬀerors □ The Contracting Team SUBMIT Contracting professionals communicate and document a plethora of items and decisions on a daily basis. Oftentimes, these communications - verbal and written - have inﬂuence over cost, quality, and timeliness of products and services. Given this, there are basic precepts that you must understand. Following, we will address several of these. Cost, Quality and Timeliness of Products and Services FAR 1.102-2(a) tells contracting professionals that a guiding principle of the Federal Acquisition System is to satisfy customers in terms of cost, quality, and timeliness of the delivered product or service. The principal customers for the product or service provided by the System are the users The System must be responsive and adaptive to customer needs, concerns, and feedback. and line managers, acting on behalf of the American taxpayer. Implementation of acquisition policies and procedures, as well as consideration of timeliness, quality, and cost throughout the process, must take into account the perspective of the user of the product or service. When selecting contractors to provide products or perform services, the Government will use contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform. The Government must not hesitate to communicate with the commercial sector as early as possible in the acquisition cycle to help the Government determine the capabilities available in the commercial marketplace. The Government will maximize its use of commercial products and services in meeting Government requirements. It is the policy of the System to promote competition in the acquisition process. The System must perform in a timely, high quality, and cost-eﬀective manner. All members of the Team are required to employ planning as an integral part of the overall process of acquiring products or services. Although advance planning is required, each member of the Team must be ﬂexible in order to accommodate changing or unforeseen mission needs. Planning is a tool for the accomplishment of tasks, and application of its discipline should be commensurate with the size and nature of a given task. Clear communication and the meaning of words Engaging in clear communication involves understanding that words have meaning and must be clearly understood by the contracting parties. To that end, FAR 2.101(a) tells us that a word or a term, deﬁned in this section, has the same meaning throughout this regulation (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. Common Contracting Documents in Contract Files Contract ﬁles tell a story in writing - the history of an acquisition. FAR subpart 4.8 provides guidance on establishing, maintaining, and disposing of Government contract ﬁles. Determination and Findings In contracting, we often document business decisions. FAR 1.701 tells us "Determination and Findings" means 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 "determination" is a conclusion or decision supported by the "ﬁndings.’’ The ﬁndings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation. Justi. cation and Approval (J&A) FAR 6.303-1(a) states 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; and Obtains the approval required by FAR 6.304. Deviations An important deﬁnition to understand is "Deviation" (FAR 1.401). A deviation means any one or combination of the following: The issuance or use of a policy, procedure, solicitation provision, contract clause, method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR. The omission of any solicitation provision or contract clause when its prescription requires its use. The use of any solicitation provision or contract clause with modiﬁed or alternate language that is not authorized by the FAR. The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR. The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR. The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with FAR 1.301(a). Documenting negotiations The purpose of the negotiation. A description of the acquisition, including appropriate identifying numbers (e.g., RFP No.). The name, position, and organization of each person representing the contractor and the The current status of any contractor systems (e.g., purchasing, estimating, accounting, Government in the negotiation. and compensation) to the extent they aﬀected and were considered in the negotiation. If certiﬁed cost or pricing data were not required in the case of any price negotiation exceeding the certiﬁed cost or pricing data threshold, the exception used and the basis for it. If certiﬁed cost or pricing data were required, the extent to which the contracting oﬃcer- Relied on the certiﬁed cost or pricing data submitted and used them in negotiating the price; Recognized as inaccurate, incomplete, or noncurrent any certiﬁed cost or pricing data submitted; the action taken by the contracting oﬃcer and the contractor as a result; and the eﬀect of the defective data on the price negotiated; or Determined that an exception applied after the data were submitted and, therefore, considered not to be certiﬁed cost or pricing data. A summary of the contractor’s proposal, any ﬁeld pricing assistance recommendations, including the reasons for any pertinent variances from them, the Government’s negotiation objective, and the negotiated position. Where the determination of a fair and reasonable price is based on cost analysis, the summary shall address each major cost element. When determination of a fair and reasonable price is based on price analysis, the summary shall include the source and type of data used to support the determination. You need to document a business decision, such as the use of a speciﬁc contract type. What document will you create? 0 A Justiﬁcation and Approval 0 A Determination and Findings 0 A Memorandum for Record 0 A Statement of Fact SUBMIT At the conclusion of negotiations, the contracting oﬃcer will complete a 0 Negotiation Completion Memorandum 0 Price Objective Memorandum 0 Price Negotiation Memorandum SUBMIT Prior to negotiating a sole source contract, the contracting oﬃcer must complete a 0 Determinations and Findings 0 Sole Source Proclamation 0 Limit Competition Memorandum 0 Justiﬁcation and Approval SUBMIT Forms In addition to the common documents outlined above, you need to be familiar with a variety of forms commonly used in DoD contracting. We will break these out by type and purpose:  ACCESSIBILITY: Use the Tab key to make your selection and use the Enter key to expand the block of information. This information is also available in the Keyboard Shortcuts list. 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/Modi. cation 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 micro-purchase 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 & Award (Const, 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 Items – Required for solicitations for commercial items if the acquisition will exceed the simpliﬁed acquisition threshold. It is encouraged for commercial acquisitions not exceeding the simpliﬁed acquisition threshold. DD 254 - Contract Security Classi. cation Speci cation – Used to provide security classiﬁcation guidance to U.S. contractors, and subcontractors as applicable, requiring access to information classiﬁed as "Conﬁdential", "Secret", or "Top Secret". DD 1155 - Order for Supplies or Services – Used for placing orders under indeﬁnite-delivery contracts or if the SF 1449 is not used under simpliﬁed acquisition procedures. – DD 1547 - Record of Weighted Guidelines Application - Used to facilitate a structured approach to proﬁt/fee analysis. DD 1861 - Contract Facilities Capital Cost of Money – Used to estimate the facilities capital cost of money and capital employed ( used in conjunction with the CASB-CMF and cost of money factors). C O NT I NU E Communicating with Industry Electronic commerce in contracting When communicating with industry, FAR 4.502 states, in part, that the Contracting Oﬃcers shall use electronic commerce whenever practicable or cost-eﬀective. Methods of Disseminating Information FAR 5.101(a)(1) states that contracting oﬃcers must disseminate information on proposed contract actions as follows: For proposed contract actions expected to exceed $25,000, by synopsizing in the Governmentwide Point of Entry (GPE). For proposed contract actions expected to exceed $15,000, but not expected to exceed $25,000. by displaying in a public place. Postaward orientation FAR 42.501(a) states a postaward orientation aids both Government and contractor personnel to (1) achieve a clear and mutual understanding of all contract requirements, and (2) identify and resolve potential problems. However, it is not a substitute for the contractor fully understanding the work requirements at the time oﬀers are submitted, nor is it to be used to alter the ﬁnal agreement arrived at in any negotiations leading to contract award. Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct. Lesson Completion Congratulations, you have successfully completed this unit of instruction. Please close this window in order to launch the next unit. U04: Standards of Conduct Contracting Competency: Standards of Conduct Number of Questions Addressed on Exam: 6 DoD Contracting Competency Model Should you require assistance, please contact the DAU Help Desk. Version 1.0.3 -- Standards of Conduct Lesson 1 of 1 Standards of Conduct CIPLE INTEGRIT VALUES , ---------...._ Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Standards of Conduct 0 Be transparent in making appropriate disclosures 0 Adequately protecting proprietary and restricted information and other resources of all parties; and 0 Avoiding actual or apparent conﬂicts of interest. In the DoD Contracting Competency Model, one of the Guiding Principles is titled Standards of Conduct. This guiding principle applies across all contracting life cycle phases and deﬁnes the ethical behavior expected of all contract managers and their organizations. The purpose of this competency is to create trust and conﬁdence in the integrity of the contract management process. These Standards of Conduct, which are introduced below, contain speciﬁc requirements in areas where executive branch employees are likely to encounter ethical dilemmas. Ethical Behavior The ethical standards require contract managers to conduct themselves in such a manner as to bring credit upon the profession. Contract managers must conduct business in good faith. This ethical behavior not only applies to collaboration with other professionals, but it also applies to the technical aspects involved throughout the contract life cycle phases. All contract managers should abide by the letter and spirit of the standards of conduct. Government business shall be conducted in a manner above reproach and, except as authorized by statute or regulation, with complete impartiality and with preferential treatment for none (FAR 3.101-1). Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct. The general rule is to avoid strictly any conﬂict of interest or even the appearance of a conﬂict of interest in Government-contractor relationships. While many Federal laws and regulations place restrictions on the actions of Government personnel, their oﬃcial conduct must, in addition, be such that they would have no reluctance to make a full public disclosure of their actions (FAR 3.101-1). FAR 3.101-3 states agencies are required by Executive Order 11222 of May 8, 1965, and 5 CFR 735 to prescribe "Standards of Conduct." These agency standards contain disciplinary measures for persons violating the standards of conduct. Common Ethical Considerations in Contracting Described below are common ethical considerations which you may encounter. Solicitation and Acceptance of Gratuities by Government Personnel The overarching rule on accepting gifts from contractor/employees is at (FAR 3.101-2). You may not solicit gifts from anyone, for any reason. This means for yourself or for others. Federal employees are prohibited from soliciting or accepting gifts oﬀered “because of the employee’s oﬃcial position” or gifts oﬀered by a “prohibited source.” A gift or gratuity may be anything of monetary value and includes things like favors, entertainment, loans, and so forth. A prohibited source is a company doing business or seeking to do business with the federal government. Bottom line, you may not accept gifts given to you because of your oﬃcial position as a Government oﬃcial. Kickbacks, bribes or gratuities can lead to ﬁnes, loss of job, and imprisonment. Just Say NO. Never accept a bribe or gratuity. Subcontractor Kickbacks The Anti-Kickback Act of 1986 (now codiﬁed at 41 U.S.C. chapter 87, Kickbacks,) was passed to deter subcontractors from making payments and contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or a subcontract relating to a prime contract. The Kickbacks statute prohibits any person from- Providing, attempting to provide, or oﬀering to provide any kickback; Soliciting, accepting, or attempting to accept any kickback; or Including, directly or indirectly, the amount of any kickback in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime contractor to the United States. The Kickbacks statute imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct. It also provides for the recovery of civil penalties by the United States from any person who knowingly engages in such prohibited conduct and from any person whose employee, subcontractor, or subcontractor employee provides, accepts, or charges a kickback. Disclosures One of the measures in place to protect the integrity of our procurement system involves protecting the information we may be privy to. No person or other entity may disclose contractor bid or proposal information or source selection information to any person other than a person authorized, in accordance with applicable agency regulations or procedures, by the agency head or the contracting oﬃcer to receive such information (FAR 3.104-4(a)). The term “contractor bid or proposal information” means any of the following information submitted to a Federal agency as part of, or in connection with, a bid or proposal to enter into a Federal agency procurement contract, if that information previously has not been made available to the public or disclosed publicly: Cost or pricing data Indirect costs and direct labor rates Proprietary information about manufacturing processes, operations, Information marked by the contractor as “contractor bid or proposal Information marked IAW 52.215-1(e), (marked as restricted by the contractor) or techniques marked by the contractor information” Any contractor bid or proposal information delivered to the Government with restrictions on its use, modiﬁcation, reproduction, release, performance, or display may not be provided to third parties unless the intended recipient completes and signs a Non-Disclosure Agreement (DFARS 227.7103-7). Protecting Proprietary and Restricted Information Contractor bid or proposal information and source selection information must be protected from unauthorized disclosure in accordance with FAR 14.401, FAR 15.207, applicable law, and agency regulations. Individuals responsible for preparing material that may be source selection information as described at paragraph (10) of the "source selection information" deﬁnition in FAR 2.101 must mark the cover page and each page that the individual believes contains source selection information with the legend "Source Selection Information-See FAR 2.101 and 3.104." No person or other entity may disclose contractor bid or proposal information or source selection information to any person other than a person authorized, in accordance with applicable agency regulations or procedures, by the agency head or the contracting oﬃcer to receive such information (FAR 3.104-4(a)). Source Selection Information (FAR 2.101) means any of the following information that is prepared for use by an agency for the purpose of evaluating a bid or proposal to enter into an agency procurement contract, if that information has not been previously made available to the public or disclosed publicly: Bid prices submitted in response to an agency invitation for bids, or Proposed costs or prices submitted in response to an agency Source selection plans lists of those bid prices before bid opening. solicitation, or lists of those proposed costs or prices. Technical evaluation plans Technical evaluations of proposals Rankings of bids, proposals, or competitors Other information marked as "Source Selection Information-See FAR Cost or price evaluations of proposals Competitive range determinations that identify proposals that have a reasonable chance of being selected for award of a contract Reports and evaluations of source selection panels, boards, or advisory councils 2.101 and FAR 3.104" based on a case-by-case determination by the head of the agency or the contracting oﬃcer, that its disclosure would jeopardize the integrity or successful completion of the Federal agency procurement to which the information relates. Although the information in paragraphs (1) through (9) of the deﬁnition in FAR 2.101 is considered to be source selection information whether or not marked, all reasonable eﬀorts must be made to mark such material with the same legend. Per FAR 3.104-4(d) the contracting oﬃcer must notify the contractor in writing if the contracting oﬃcer believes that proprietary information, contractor bid or proposal information, or information marked in accordance with FAR provision 52.215-1(e) has been inappropriately marked. The contractor that has aﬃxed the marking must be given an opportunity to justify the marking. If the contractor agrees that the marking is not justiﬁed, or does not respond within the time speciﬁed in the notice, the contracting oﬃcer may remove the marking and release the information. If, after reviewing the contractor’s justiﬁcation, the contracting oﬃcer determines that the marking is not justiﬁed, the contracting oﬃcer must notify the contractor in writing before releasing the information. For technical data marked as proprietary by a contractor, the contracting oﬃcer must follow the procedures in FAR 27.404-5. Contracts with Government Employees A contracting oﬃcer shall not knowingly award a contract to a Government employee or to a business concern or other organization owned or substantially owned or controlled by one or more Government employees (FAR 3.601). This policy is intended to avoid any conﬂict of interest that might arise between the employees’ interests and their Government duties, and to avoid the appearance of favoritism or preferential treatment by the Government toward its employees. Special Government employees (as deﬁned in 18 U.S.C.202) performing services as experts, advisors, or consultants, or as members of advisory committees, are not considered Government employees unless- The contract arises directly out of the individual’s activity as a special Government employee; In the individual’s capacity as a special Government employee, the individual is in a position to inﬂuence the award of the contract; or Another conﬂict of interest is determined to exist. Personal Con icts of Interest FAR part 3 covers polices and procedures related to avoiding improper business practices and personal conﬂicts of interest. A “personal conﬂict of interest” is a situation in which a covered employee has a ﬁnancial interest, personal activity, or relationship that could impair the employee’s ability to act impartially and in the best interest of the Government when performing under the contract. (A de minimis interest that would not "impair the employee’s ability to act impartially and in the best interest of the Government" is not covered under this deﬁnition. (FAR 3.1101) Personal conﬂicts of interest occur when contractor staﬀ, including spouses and dependent children, receive personal ﬁnancial reward from an external company, agency, institution, individual, or any other entity which may bias the individual’s judgment, or compromise his or her ability to carry out their contractual obligation to the contracting organization. Increasingly contractors are being hired to assess the work of other contractors. This presents several layers of conﬂicts of interest as well as the risk of inappropriate transfer of proprietary information. Organizational Con icts of Interest (OCI) An OCI is the existence of a set of circumstances in which a contractor may be unable to render impartial advice to the government, or might have impaired objectivity in performing contracted work, or may obtain an unfair competitive advantage in the marketplace when competing for government work where that unfair advantage is obtained performing a government contract. This unfair advantage can be introduced when the contractor sets the ground rules of procurement, thereby biasing a future competition. The essence of OCI is divided loyalty between the best interests of a particular contractor and the best interests of the government. It is the government professional’s duty to ensure that such divided loyalty is not permitted to occur or to continue when discovered. There are examples in FAR 9.508 paragraphs (a) through (i) that illustrate situations in which questions concerning organizational conﬂicts of interest may arise. They are not all inclusive, but are intended to help the contracting oﬃcer apply the general rules in FAR 9.505 to individual contract situations. Organizational Conﬂict of Interest means that because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to the Government, or the person’s objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive advantage. (FAR 2.101) There are three broad categories of OCI: Unequal Access Impaired Objectivity Biased Ground Rules Unequal Access - An unfair competitive advantage typically surfaces when a contractor obtains information not generally available to competitors where such information would assist the contractor in winning the contract award. An unfair competitive advantage exists where a contractor competing for award of any federal contract possesses: Proprietary information that was obtained from a government oﬃcial Source selection information that is relevant to the contract but is not Any substantive information regarding the acquisition not equally without proper authorization; available to all competitors; or available or provided to other potential oﬀerors when such information would assist that contractor in obtaining the contract. Impaired Objectivity - This may happen when a support contractor is performing duties that involve assessing or evaluating itself or a related entity. Examples include: Providing Proposal Evaluation Services as discussed in FAR 9.505-2; Reviewing the contractor’s own or an aﬃliate’s work product, or reviewing a competitor’s work Providing advice in supporting the Government’s decision making Evaluating the contractor’s own, an aﬃliate’s, or a competitor’s process; or compliance with regulatory requirements. Biased Ground Rules - This most often occurs when the contractor is writing the Statement of Work, performing systems engineering, or providing technical direction eﬀorts. Examples include: Preparing speciﬁcations or work statements as discussed in FAR 9.505-2. OCI may be either potential or actual. The following deﬁnitions explain the diﬀerence: Potential OCI – A contractor has a potential conﬂict of interest if the work to be performed under the contract places the contractor in a position where its objectivity might be called into question, however, no information has as yet come to light indicating that an actual motive for bias exists. Actual OCI – A contractor has an actual conﬂict of interest if information has come to light that would cause a reasonable person to question the contractor’s objectivity. The term “actual OCI” is synonymous with the terms “real or apparent OCI.” Example: A contractor employee will have access to source selection sensitive information because he is assisting the Agency in evaluating competitive proposals. As discussed previously, this work creates a potential for impaired objectivity based solely on the nature of the work to be performed. The potential OCI would become an actual OCI if one of the oﬀerors submitting a proposal turned out to be either an aﬃliate or competitor of the contractor employee’s ﬁrm. There are three basic approaches available to contractors and the Agency for dealing with OCI issues, as follows: Avoid - Prevent the occurrence of an actual or potential OCI through actions such as excluding sources from competition or eliminating a segment of work from a contract or task. Neutralize - Negate, through a speciﬁc action, potential or actual OCI related to either a contractor’s objectivity during contract performance, or an unfair competitive advantage. Speciﬁc actions could include encouraging and facilitating support contractor recusal, excluding or severely limiting support contractor participation in source selection activities, and/or otherwise barring access to competition sensitive data. Mitigate - Reduce or alleviate the impact of unavoidable OCIs to an acceptable level of risk so that the government’s interests with regard to fair competition and contract performance are not prejudiced. This is facilitated in developing an OCI mitigation plan (DFARS 209.571-4). If you (as the contracting oﬃcer) determine that there is an OCI in one of your procurements, how will you remedy the situation? Can you award to a contractor if you determine there is an OCI? If an OCI exists, it may be best to cancel the RFP and make any needed If one does not exist, then the parties need to be told that, in the changes to eliminate any conﬂict. Contracting Oﬃcer’s view, an OCI does not exist as well as the rationale for reaching this decision. Finally, yes, FAR 9.504(e) permits award if the Contracting Oﬃcer determines that doing so is in the best interest of the United States as well as submitting a waiver request, which is approved by the Head of the Contracting Activity. Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct. Contracting Of cer Responsibilities Contracting oﬃcers shall analyze planned acquisitions in order to- Identify and evaluate potential organizational conﬂicts of interest as early in the acquisition process as possible; and Avoid, neutralize, or mitigate signiﬁcant potential conﬂicts before contract award. Contracting oﬃcers should obtain the advice of counsel and the assistance of appropriate technical specialists in evaluating potential conﬂicts and in developing any necessary solicitation provisions and contract clauses (see FAR 9.506). Before issuing a solicitation for a contract that may involve a signiﬁcant potential conﬂict, the contracting oﬃcer shall recommend to the head of the contracting activity a course of action for resolving the conﬂict (see FAR 9.506). In fulﬁlling their responsibilities for identifying and resolving potential conﬂicts, contracting oﬃcers should avoid creating unnecessary delays, burdensome information requirements, and excessive documentation. The contracting oﬃcer’s judgment need be formally documented only when a substantive issue concerning potential organizational conﬂict of interest exists. The contracting oﬃcer shall award the contract to the apparent successful oﬀeror unless a conﬂict of interest is determined to exist that cannot be avoided or mitigated. Before determining to withhold award based on conﬂict of interest considerations, the contracting oﬃcer shall notify the contractor, provide the reasons therefor, and allow the contractor a reasonable opportunity to respond. If the contracting oﬃcer ﬁnds that it is in the best interest of the United States to award the contract notwithstanding a conﬂict of interest, a request for waiver shall be submitted in accordance with FAR 9.503. The waiver request and decision shall be included in the contract ﬁle. Contractor Code of Business Ethics and Conduct Per FAR 3.1002, Government contractors must conduct themselves with the highest degree of integrity and honesty. Contractors should have a written code of business ethics and conduct. To promote compliance with such code of business ethics and conduct, contractors should have an employee business ethics and compliance training program and an internal control system that- Are suitable to the size of the company and extent of its involvement in Government contracting; Facilitate timely discovery and disclosure of improper conduct in Ensure corrective measures are promptly instituted and carried out. connection with Government contracts; and A contractor may be suspended and/or debarred for knowing failure by a principal to timely disclose to the Government, in connection with the award, performance, or closeout of a Government contract performed by the contractor or a subcontract awarded thereunder, credible evidence of a violation of Federal criminal law involving fraud, conﬂict of interest, bribery, or gratuity violations found in Title 18 of the United States Code or a violation of the civil False Claims Act. Prohibitions on Employment If an agency oﬃcial, participating personally and substantially in a Federal agency procurement for a contract in excess of the simpliﬁed acquisition threshold, contacts or is contacted by a person who is an oﬀeror in that Federal agency procurement regarding possible non-Federal employment for that oﬃcial, the oﬃcial must- Promptly report the contact in writing to the oﬃcial’s supervisor and to the agency ethics oﬃcial Either reject the possibility of non-Federal employment or disqualify himself or herself from further personal and substantial participation in that Federal agency procurement (see 3.104-5) until such time as the agency authorizes the oﬃcial to resume participation in that procurement, in accordance with the requirements of 18 U.S.C. 208 and applicable agency regulations, because0 The person is no longer an oﬀeror in that Federal agency procurement; or 0 All discussions with the oﬀeror regarding possible non-Federal employment have terminated without an agreement or arrangement for employment. Disclosing Fraud, Waste and Abuse Prohibition. 10 U.S.C. 4701 prohibits contractors and subcontractors from discharging, demoting, or otherwise discriminating against an employee as a reprisal for disclosing information that the employee reasonably believes is evidence of gross mismanagement of a DoD contract, a gross waste of DoD funds, an abuse of authority relating to a DoD contract, a violation of law, rule, or regulation related to a DoD contract (including the competition for or negotiation of a contract), or a substantial and speciﬁc danger to public health or safety. Such reprisal is prohibited even if it is undertaken at the request of an executive branch oﬃcial, unless the request takes the form of a nondiscretionary directive and is within the authority of the executive branch oﬃcial making the request. Classiﬁed information. DFARS subpart 203.9 —Whistleblower Protections For Contractor Employees applies to DoD instead of FAR subpart 3.9. This subpart does not apply to any element of the intelligence community, as deﬁned in 50 U.S.C. 3003(4). This subpart does not apply to any disclosure made by an employee of a contractor or subcontractor of an element of the intelligence community if such disclosure— 0 0 Relates to an activity or an element of the intelligence community; or Was discovered during contract or subcontract services provided to an element of the intelligence community. Entities to whom disclosure may be made: A Member of Congress or a representative of a committee of Congress. An Inspector General that receives funding from or has oversight over contracts awarded for or on behalf of DoD. The Government Accountability Oﬃce. A DoD employee responsible for contract oversight or management. An authorized oﬃcial of the Department of Justice or other law enforcement agency. A court or grand jury. A management oﬃcial or other employee of the contractor or subcontractor who has the responsibility to investigate, discover, or address misconduct. Disclosure clariﬁed. An employee who initiates or provides evidence of contractor or subcontractor misconduct in any judicial or administrative proceeding relating to waste, fraud, or abuse on a DoD contract shall be deemed to have made a disclosure. Contracting oﬃcer actions. A contracting oﬃcer who receives a complaint of reprisal shall forward it to legal counsel or to the appropriate party in accordance with agency procedures. Transparency In accordance with the Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282), all unclassiﬁed Federal award data must be publicly accessible (FAR 4.603). Executive agencies shall use the Federal Procurement Data System (FPDS) to maintain publicly available information about all unclassiﬁed contract actions exceeding the micro-purchase threshold, and any modiﬁcations to those actions that change previously reported contract action report data, regardless of dollar value. KNO W L E DG E C HE C K Government business shall be conducted in a manner that is above reproach, with complete impartiality, and with preferential treatment for none. 0 True 0 False SUBMIT No person or other entity may disclose contractor bid or proposal information or source selection information to any person other than a person authorized, in accordance with applicable agency regulations or procedures, by the agency head or the contracting officer to receive such information. 0 True 0 False SUBMIT The Anti-Kickback Act of 1986 prohibits any person from- (select all that apply). □ Providing, attempting to provide, or oﬀering to provide any kickback □ Accepting a gift of over $100 throughout the course of a calendar year. □ Soliciting, accepting, or attempting to accept any kickback □ Including, directly or indirectly, the amount of any kickback in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime contractor to the United States. SUBMIT Federal employees are prohibited from soliciting or accepting gifts offered “because of the employee’s official position” or gifts offered by a “prohibited source.” □ True □ False SUBMIT A “personal conflict of interest” is a situation where an individual is employed by a defense contractor company and is in a position to materially influence DOD’s recommendations and/or decisions and, because of his/her personal activities, relationships, or financial interests, may lack or appear to lack objectivity or appear to be unduly influenced by personal financial interest. □ True □ False SUBMIT What are the broad categories of OCI: (select all that apply). □ Source Selection Sensitive □ Unequal access □ Impaired Objectivity □ Biased Ground Rules SUBMIT There are three basic approaches available to contractors and the Agency for dealing with OCI issues, as follows: (select all that apply). □ Avoid □ Neutralize □ Substantiate □ Mitigate SUBMIT Lesson Completion Congratulations, you have successfully completed this unit of instruction. Please close this window in order to launch the next unit. U05: Situational Assessment and Team Dynamics Contracting Competency: Situational Assessment Team Dynamics Questions Addressed on Exam: Situational Assessment - 3 Team Dynamics - 3 DoD Contracting Competency Model Should you require assistance, please contact the DAU Help Desk. Version: 1.0.2 Situational Assessment Team Dynamics Lesson 1 of 2 Situational Assessment Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Situational Assessment 0 0 0 0 Understand product and systems life cycle principles; Apply eﬀective market research techniques to collect, analyze, and implement market intelligence; Identify opportunities for process improvement and optimization; Negotiate meaningful contract terms and conditions while meeting customer needs Contracting professionals need to capture, document, and share knowledge about acquisitions they are supporting. Additionally, they help shape and manage requirements to align with an organization's vision, mission, and strategic goals. In CON 1100V you applied the skills and knowledge about life cycle principles, market research, process improvement, and negotiating meaningful contract terms to a given scenario. As this lesson revolves primarily around the application of these subjects, the information contained in this part of the materials is limited to those areas most pertinent to the questions you're likely to encounter on the certiﬁcation exam. Namely those questions that revolve around the Vision of the Federal Acquisition System, the Contracting Lifecycle, and Market Research. The Vision of the Federal Acquisition System FAR 1.102(a) tells us that the vision for the Federal Acquisition System is to deliver on a timely basis the best value product or service to the customer, while maintaining the public’s trust and fulﬁlling public policy objectives. Participants in the acquisition process should work together as a team and should be empowered to make decisions within their area of responsibility. Contracting Life Cycle With regard to understanding product and life cycle principles, FAR 7.101 deﬁnes Life-Cycle Cost as "the total cost to the Government of acquiring, operating, supporting, and (if applicable) disposing of the items being acquired." This means life-cycle costs is far more than just the cost to initially acquire the supplies and services our customers need. In fact, multiple studies have shown that the vast majority of life-cyle costs occur after initial procurement. Market Research FAR 2.101 deﬁnes Market Research as "collecting and analyzing information about capabilities within the market to satisfy agency needs." FAR part 10 focuses on Market Research. Let's take a closer look at a few selected subsections. FAR 10.001 addresses Market Research policy: FAR 10.001(a)(1) addresses ensuring that legitimate needs are identiﬁed and trade-oﬀs evaluated to acquire items that meet those needs. FAR 10.001(a)(2) addresses when to conduct Market Research and reminds us to conduct it appropriate to the circumstances. FAR 10.001(a)(3) addresses various instances in which we use the results of Market Research FAR 10.002 addresses Market Research procedures: FAR 10.002(b)(1) addresses whether commercial products, commercial services, or nondevelopmental items are available to meet the need or could be modiﬁed to meet the need. FAR 10.002(b)(2) addresses techniques for conducting market research. KNO W L E DG E C HE C K The vision of the Federal Acquisition System consists of: (select 2) □ Acquisition process participants should work together as a team, but decision-making should be at a higher level. □ Deliver on a timely basis the best-value products and services to the customer. □ Maintain the public's trust and fulﬁll public policy objectives. SUBMIT Contracting Life-cycle costs consist of the following (select 4): □ Acquisition costs □ Supporting costs □ Entertainment costs □ Disposal costs □ Operating costs SUBMIT Market research shall be conducted: 0 Only after release of a solicitation but prior to receiving proposals. 0 Only after receiving proposals, but prior to making award. 0 Only prior to releasing a solicitation 0 On an ongoing basis and appropriate to the circumstances SUBMIT Lesson 2 of 2 Team Dynamics Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Team Dynamics 0 Conduct meaningful collaboration in order to make accurate and timely decisions while solving complex contracting, business, and technical problems and forming an eﬀective contract relationship; 0 Identify opportunities for process improvement and optimization; 0 Collect and record lessons learned Successful relationships take eﬀort—and acquisition team relationships are no exception. Contracting professionals need a working knowledge of all roles involved on the acquisition team in order to improve team cohesiveness and to identify gaps or overlap in roles. Since this lesson only includes three questions on the Contracting Certiﬁcation Exam, we will only have minimal coverage here. FAR subpart 1.1 addresses the purpose, authority, and issuance of the Federal Acquisition Regulations (FAR) System. We will brieﬂy discuss a few selected portions of this subpart: The Acquisition Team, The Role of the Contracting Oﬃcer, and Forming an Eﬀective Contract Relationship. The Acquisition Team FAR 1.102(c) tells us that the Acquisition Team consists of all participants in Government acquisition including not only representatives of the technical, supply, and procurement communities but also the customers they serve, and the contractors who provide the products and services. Given that contractors who provide goods and services are part of the acquisition team, FAR 1.102-4(d) makes clear that the FAR System will foster cooperative relationships between the Government and its contractors consistent with its overriding responsibility to the taxpayers. The Role of the Contracting Officer Within the acquisition team, there is only one member who can contractually obligate the Government. FAR 1.602-1(a) tells us that contracting oﬃcers have authority to enter into, administer (to include change), or terminate contracts and make related determinations and ﬁndings. Contracting oﬃcers may bind the Government only to the extent of the authority delegated to them. Contracting oﬃcers shall receive from the appointing authority clear instructions in writing regarding the limits of their authority. Information on the limits of the contracting oﬃcers’ authority shall be readily available to the public and agency personnel. For many acquisitions, the contracting oﬃcer may appoint one or more people to assist in administering contracts. FAR 2.101 tells us that a contracting oﬃcer's representative (COR) is an individual, including a contracting oﬃcer’s technical representative (COTR), designated and authorized in writing by the contracting oﬃcer to perform speciﬁc technical or administrative functions. A COR does not have the authority to enter into, change, or terminate a contract. Those authorities belong only to the contracting oﬃcer. Forming an Effective Contract Relationship Upon award, one of the most signiﬁcant ways we form an eﬀective contract relationship is via the Postaward orientation. FAR 42.501 states that a postaward orientation aids both Government and contractor personnel to (1) achieve a clear and mutual understanding of all contract requirements, and (2) identify and resolve potential problems. However, it is not a substitute for the contractor’s fully understanding the work requirements at the time oﬀers are submitted, nor is it to be used to alter the ﬁnal agreement arrived at in any negotiations leading to contract award. FAR subpart 42.5 prescribes policies and procedures for the postaward orientation of contractors and subcontractors through either a conference or a letter or other form of written communication. Furthermore, FAR 42.501(b) tells us that a postaward orientation is encouraged to assist: Small business concerns; Small disadvantaged business concerns; Veteran-owned small business concerns; Service-disabled veteran-owned small business concerns; HUBZone small business concerns; and Women-owned small business concerns. A postaward orientation is not limited to only the above categories of business. KNO W L E DG E C HE C K IAW FAR 1.102-3, the Acquisition Team consists of participants who will participate in the acquisition process at the appropriate time. Select the appropriate groups to which these participants may belong (Select all that apply): □ Customer (end-user) □ Technical personnel □ Contracting personnel □ Contractor personnel □ None of the Above SUBMIT Only the _____________________ is authorized to award, change, or terminate a contract Type your answer here SUBMIT The purpose of a postaward orientation is to (select 2) □ Achieve a clear and mutual understanding of all contract requirements. □ Provide an opportunity to alter the ﬁnal agreement arrived at in negotiations. □ Identify and resolve potential problems. □ Act as a substitute for the contractor's full understanding of work requirements. SUBMIT Lesson Completion Congratulations, you have successfully completed this unit of instruction. Please close this window in order to launch the next unit. U06: Contract Principles Contracting Competency: Contract Principles Number of Questions Addressed on Exam: 18 DoD Contracting Competency Model Should you require assistance, please contact the DAU Help Desk. Version: 1.0.3 --------------- Types of Authority Essential Elements of A Contract Market Research Competition Determine Fair and Reasonable Prices Ethics Inspection and Acceptance ------- Title Transfer and Risk of Loss Excusable Delay Warranties Payment Terms Contract Changes Termination Lesson 1 of 13 Types of Authority Contracting of cers may bind the Government only to the extent of the authority delegated to them. Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Types of Authority Authority Contracting oﬃcers have authority to enter into, administer, or terminate contracts and make related determinations and ﬁndings. Contracting oﬃcers may bind the Government only to the extent of the authority delegated to them. Contracting oﬃcers shall receive from the appointing authority (FAR 1.603-1) clear instructions in writing regarding the limits of their authority. Information on the limits of the contracting oﬃcers’ authority shall be readily available to the public and agency personnel. No contract shall be entered into unless the contracting oﬃcer ensures that all requirements of law, executive orders, regulations, and all other applicable procedures, including clearances and approvals, have been met (FAR 1.602-1(b)). Types of Authority There are two types of authority: Actual Authority and Apparent Authority. Actual Authority Actual authority can be either Express Actual Authority or Implied Actual Authority. 1 Express Actual Authority is created by explicit language, either in writing or verbal. It should be noted that the spoken word is generally as binding as the written word; however it is sometimes more diﬃcult to prove. 2 Implied Actual Authority is usually deﬁned in general terms to include authority to do what is usual, customary and necessary to accomplish the action. Implied actual authority diﬀers from express actual authority in that no express agreement is executed (e.g., when an individual is assigned a task to accomplish but the minor details are not spelled out either verbally or in writing, this is an example of implied actual authority). Apparent Authority Apparent authority exists when someone reasonably believes an individual has the authority to act on behalf of the Government, based on his or her conduct, even though that individual has no actual authority to bind the Government. In the Department of Defense, a Contracting Oﬃcer is the only appointed individual who has the authority to enter into a legally binding agreement (i.e., contract) on behalf of the government. A Contracting Oﬃcer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and ﬁndings (FAR 2.101). The term includes certain authorized representatives of the contracting oﬃcer acting within the limits of their authority as delegated by the contracting oﬃcer. Delegation of Authority Delegation of authority. FAR Conventions listed at FAR 1.108(b) provides guidance for interpreting the FAR and states that each authority is delegable unless speciﬁcally stated otherwise (FAR 1.108(b)). KNO W L E DG E C HE C K Which authority is legally binding in Government contracting and recognized by the courts? 0 Apparent Authority 0 Actual Authority 0 Guaranteed Authority SUBMIT In DoD contracting, who has the authority to enter into a legally binding contract? 0 Contracting Oﬃcer 0 Program Manager 0 Financial Manager 0 Engineer SUBMIT Each authority is NOT delegable unless specifically stated otherwise. 0 True 0 False SUBMIT NE X T: E S S E NT I A L E L E M E NT S O F A C O NT R A C T Lesson 2 of 13 Essential Elements of A Contract Understanding the essential elements of a contract requires you to understand what a contract is and what makes a contract binding. Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Essential Elements of a Contract What is a Contract FAR 2.101 deﬁnes contract as a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes eﬀective by written acceptance or performance; and bilateral contract modiﬁcations. Contracts do not include grants and cooperative agreements. Understanding the essential elements of a contract requires you to understand what a contract is and what makes a contract binding. There are four essential elements of a contract. They are: Capacity Mutual assent Consideration Lawful purpose Capacity The ﬁrst essential element is capacity. Capacity refers to the legal competence of a person to enter a valid contract. To be legally bound to a contract, a party must have the capacity to understand and appreciate the terms of the contract. Legal incapacity and legal incompetence are the legal doctrines employed to protect parties who lack the ability to understand the terms of an agreement. Legal incapacity may arise from infancy, mental illness or defect, intoxication or one under guardianship by reason of mental illness or defect. Mutual Assent The next essential element of a contract is Mutual Assent, also known as a meeting of the minds. Mutual assent means that parties involved in a contract must come to an agreement about the details of the transaction and each party either makes a promise or begins or renders performance. Consideration Consideration is the next essential element in a contract. Consideration is something of value that a promisor (the oﬀeror) receives from a promisee (the oﬀeree) in return for his or her oﬀer. It is the primary reason a party would seek to enter a contract. Consideration can take many forms, such as money, a promise, an action or non-action, or property. Without consideration, a contract is not enforceable. Lawful Purpose The ﬁnal essential element in a contract is Lawful Purpose. A contract is unenforceable if any term of the agreement is contrary to public policy. Public policy are governmental policies regarding public morals, health, safety, and welfare that aﬀect the whole population. A contract cannot be enforced if any term of the agreement is against the law or if the enforcement of any term of the agreement would harm the state or its citizens. For example, a contract to buy and sell goods that are known to be stolen would not be enforceable. KNO W L E DG E C HE C K Which of the following are essential elements of a contract (select all that apply)? □ Capacity □ Consideration □ Common Ground □ □ Mutual Assent Lawful Purpose SUBMIT A contract is defined as a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. 0 True 0 False SUBMIT Capacity is when each party either makes a promise or begins to render performance. 0 True 0 False SUBMIT NE X T: M A R KE T R E S E A R C H Lesson 3 of 13 Market Research Market research is the process of collecting and analyzing capabilities within the market to satisfy agency needs. It is a continuous process for gathering information about products and services that are available in the marketplace. Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Market Research Market Research Policy Market research is covered in FAR part 10. Market research means collecting and analyzing information about capabilities within the market to satisfy agency needs (FAR 2.101). Market research is the process used to determine if industry can support the acquisition "needs" of the Government. It is a continuous process for gathering and analyzing information about products and services that are available in marketplace. It includes determining product characteristics, the capabilities of suppliers, and the business practices that surround them. More importantly, market research is required for all Federal Government contract requirements that exceed the Simpliﬁed Purchase Threshold (SAT) and for certain requirements below the SAT when adequate information is not available and the circumstances justify its costs (See FAR 10.001(a)(2)). The SAT is deﬁned at FAR subpart 2.101. Acquisitions begin with a description of the Government’s needs stated in terms suﬃcient to allow conduct of market research (FAR 10.002(a)). Next, market research is then conducted to determine if commercial products/services or non-developmental items are available to meet the Government’s needs or could be modiﬁed to meet the Government’s needs (FAR 10.002(b)). The terms Commercial Products, Commercial Services, and Non-Developmental Item are deﬁned in FAR 2.101. Market Research Procedures The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. The contracting oﬃcer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate, and relevant (FAR 10.002(b)(1)). Market research can be strategic or tactical or both. (SD-5: Market Research Gathering Information about Commercial Products and Services ) Strategic Market. Strategic market research is conducted continuously throughout the acquisition process. It may even take place before a known requirement exists and continue after it ends. Strategic market research enables acquisition, engineering, project management and other personnel to stay informed about overall market developments, trends and capabilities. An example of strategic research is attending a trade show for a speciﬁc industry. Tactical Market. In contrast, tactical market research is conducted at speciﬁc points during the acquisition process. Tactical market research is designed to provide a deeper understanding of the market and answer speciﬁc questions about the capabilities, products or services available in the market. Large, complex acquisitions may employ both strategic and tactical market research to shape the acquisition process. Market Research Bene ts Understanding alternative solutions available in the marketplace Gaining insight into potential price expectations Developing a better description of agency needs that “speaks” to industry Provide a more competitive environment Understanding industry common practices and terms and conditions KNO W L E DG E C HE C K Market research can be ______________. 0 Strategic 0 Tactical 0 Both A and B SUBMIT The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. 0 True 0 False SUBMIT NE X T: C O M PE T I T I O N Lesson 4 of 13 Competition The government requires, with certain limited exceptions (see FAR subpart 6.2 and FAR subpart 6.3), that contracting of cers shall promote and provide for full and open competition in soliciting offers and awarding Government contracts. Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Competition Competition Competition in contracting begins with the inputs from your market research. The results of your market research are used to determine if sources capable of satisfying the agency’s requirements already exist and if any commercial items are suitable to meet the Government’s needs. If so, it is incumbent on the Contracting Oﬃcer to ensure that all sources of the requirement are aﬀorded equal opportunity to satisfy the Government’s requirements by submitting an oﬀer. We do this by publicizing the contract action. The Competition in Contracting Act of 1984, better known as CICA, is codiﬁed in 10 U.S.C. 3201 and is incorporated into FAR part 6, Competition Requirements. Generally, unless an exception applies or is otherwise expressly authorized by statute, Contracting Oﬃcers shall promote and provide for full and open competition in soliciting oﬀers and awarding Government contracts. Competitive Procedures The competitive procedures available for use in fulﬁlling the requirement for full and open competition are as follows: Sealed bids. (FAR 6.401(a)) Competitive proposals. (FAR 6.401(b)) If sealed bids are not appropriate, contracting oﬃcers shall request competitive proposals or use the other competitive procedures. Combination of competitive procedures. If sealed bids are not appropriate, contracting oﬃcers may use any combination of competitive procedures (e.g., two-step sealed bidding). Other competitive procedures. Full and Open Competition – With certain limited exceptions (see FAR subpart 6.2 and 6.3), contracting oﬃcers shall promote and provide for full and open competition in soliciting oﬀers and awarding Government contracts (FAR 6.102). Full and Open Competition After Exclusion of Sources – Agencies may exclude a particular source from a contract action in order to establish or maintain an alternative source or sources. (FAR 6.202 FAR 6.208) These include - FAR 6.202 - Establishing or maintaining alternative sources FAR 6.203 - Set asides for small business concerns FAR 6.204 - Section 8(a) competition FAR 6.205 - Set-asides for Hubzone small business concerns FAR 6.206 - Set-asides for service disabled veteran-owned small business concerns FAR 6.207 - Set-asides for economically disadvantaged women-owned small business (EDWOSB) FAR 6.208 - Set-asides for local ﬁrms during a major disaster or emergency concerns or women-owned small business (WOSB) concerns eligible under the WOSB Program Other Than Full and Open Competition – Under certain conditions, contracting without providing for full and open competition is authorized (FAR 6.301). The following statutory authorities (including applications and limitations) permit contracting without providing for full and open competition. Requirements for justiﬁcations to support the use of these authorities are in FAR 6.303. FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements. FAR 6.302-2 Unusual and compelling urgency. FAR 6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert FAR 6.302-4 International agreement. FAR 6.302-5 Authorized or required by statute. FAR 6.302-6 National security. FAR 6.302-7 Public Interest. services. KNO W L E DG E C HE C K Generally, unless an exception applies or is otherwise expressly authorized by statute, Contracting Officers shall promote and provide for full and open competition in soliciting offers and awarding Government contracts. 0 True 0 False SUBMIT The competitive procedures available for use in fulfilling the requirement for full and open competition are - (select all that apply). □ Sealed bids □ Competitive proposals □ Set-aside □ Combination of competitive procedures □ Other competitive procedures SUBMIT Agencies may exclude a particular source from a contract action in order to establish or maintain an alternative source or sources. These include - (select all that apply). □ Establishing or maintaining alternate sources. □ Set asides for small business concerns. □ Section 8(a) competition. □ Set asides for Hubzone small business concerns. □ Set-asides for economically disadvantaged womenowned small business (EDWOSB) concerns or womenowned small business (WOSB) concerns eligible under the WOSB Program. □ Set-asides for local ﬁrms during a major disaster or emergency. □ None of the above. SUBMIT The following statutory authorities (including applications and limitations) permit contracting without providing for full and open competition: (select 4 that apply). □ Only one responsible source and no other supplies or services will satisfy agency requirements. □ Unusual and compelling urgency. □ Lack of advance planning on the part of the requirements activity. □ National security. □ Public Interest. □ Executive Request from Authoritative Source SUBMIT NE X T: DE T E R M I NE FA I R A ND R E A S O NA B L E PR I C E S Lesson 5 of 13 Determine Fair and Reasonable Prices Contracting of cers shall purchase supplies and services from responsible sources at fair and reasonable prices. - FAR 15.402 Basis for Lesson This lesson is based on the following job task(s) from the DoD Contracting Competency Model: Determine Fair and Reasonable Prices Fair and Reasonable Prices Contracting oﬃcers shall- Purchase supplies and services from responsible sources at fair and reasonable prices (FAR 15.402). In establishing the reasonableness of the oﬀered prices, the contracting oﬃcer- Shall obtain certiﬁed cost or pricing data when required by FAR 15.403-4, along with data other When certiﬁed cost or pricing data are not required by FAR 15.403-4, shall obtain data other than than certiﬁed cost or pricing data as necessary to establish a fair and reasonable price; or certiﬁed cost or pricing data as necessary to establish a fair and reasonable price, generally using the following order of preference in determining the type of data required: 0 No additional data from the oﬀeror, if the price is based on adequate price competition, except as provided by FAR 15.403-3(b) Data other than certiﬁed cost or pricing data

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