What is Mutual Assent?
A contract is formed by acceptance of an offer. An offer is a proposal by a person to enter into a contract. The person receiving the offer is called the "offeree". When the offeree intends to accept the offer and communicates this acceptance to the offeror, a contract is formed.
What is Capacity?
In order to be legally bound to a contract, a party must have the capacity to understand and appreciate the terms of the contract. Objectively, would a reasonable person expect a mentally incompetent person or a small child to be capable of appreciating and truly understanding a contractual promise and obligation.
What is Consideration?
Contracts are based on bargain and exchange. Each party receives something of value and gives something of value. "Consideration" is the name given to that "value" given by each party.
What type of authority does a KO have?
Contracting Officer authority through formal appointment is Express Authority
What is an unauthorized commitment?
An unauthorized commitment is an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government
What is a ratification?
The act of approving an unauthorized commitment by official who has the authority to do so. Supplies or services have been provided to and accepted by the Government, or the Government otherwise has obtained a benefit resulting from performance of the unauthorized commitment
Does the government recognize apparent authority?
Apparent authority is not recognized in Government
What is a modification?
A modification is a written order that changes the terms, price or other conditions in a contract.
What is a bilateral modification?
Requires the signature of the Contracting Officer and the contractor
What is a Unilateral?
Only contracting officer's signature needed
What is a change order?
Written order signed by PCO, directing the contractor to make a change without prior agreement
Before a KO executes a modification they mustfirst determine if the change is in________?
In Scope
What is a constructive change?
Oral or written act or failure to act by Government official (in a position of authority) construed by contractor as having same effect as a written change order
A change to a contract is called an amendmentTrue or False
False
What Six essential elements that must be present in order for a contract to exist?
1. Mutual assent (Offer and Acceptance)2. Consideration3. Capacity4. Lawful purpose5. Certainty of terms6. Form provided by law
What are the three limitation for changes for Change Orders?
Place of deliveryChange in packagingChange to design or specifications
What is the Quality Assurance Policy?
Agencies shall ensure that:Contracts include inspection and other quality requirementsSupplies or services tendered by contractors meet contract requirementsGovernment contract quality assurance is conducted before *acceptanceNonconforming supplies or services are rejectedContracts for commercial items shall rely on a contractor's existing quality assurance system
What is Acceptance?
the act of assuming ownership of supplies tendered, or approving specific services rendered, for the Government
What is the Quality Assurance Policy - DoD?
DFARS 246.102 PolicyDepartments and Agencies shall also:(1) Develop and manage a systematic, cost-effective Government contract quality assurance program to ensure that contract performance conforms to specified requirements. (2) Conduct quality audits to ensure the quality of products and services meet contractual requirements.(3) Base the type and extent of Government contract quality assurance actions on the particular acquisition.(4) Provide contractors the maximum flexibility in establishing efficient and effective quality programs to meet contractual requirements. Contractor quality programs may be modeled on military, commercial, national, or international quality standards.
What are the Contractor Responsibilities in quality assurance?
The contractor is responsible for:Controlling the quality of supplies or servicesDeliver to the Government only those supplies or services that conform to contract requirementsEnsuring that vendors or suppliers have an acceptable quality control systemMaintaining substantiating evidence that the supplies or services conform to contract quality requirements And furnishing such information to the Government as required.
What is the Quality Assurance Surveillance Plan (QASP)?
is the key Government-developed surveillance process document that is applied to Performance-Based Service Contracting (PBSC) and is used to manage contractor performance assessment by ensuring that systematic quality assurance methods are utilized to validate that the contractor's quality control efforts are timely, effective, and are delivering the results specified in the contract or task order.
What are Excusable Delays?
-Protect the contractor from sanctions for late performance when the event is "beyond the control" of the contractor; without "fault or negligence" of he contractor; unforeseeable.Gives the contractor more time, but not money
What are Compensable (Govt.)Delays?
Delays generally directed by the KO IAW:-Suspension of Work clause under construction contracts-Stop Work clause; supplies, services, or R&D-Government Delay of Work, mandatory for FFP non-commercial supplies-Remedy (time & money)
What are Contractor Delays?
These are all considered to be within the contractor's control and are not excusableNormally not excused from delays due to:Financial difficultiesLack of facilities and equipmentLack of materialsLack of Know-howLabor problems (in absence of a strike)Vendor problems
What are Concurrent Delays?
Any combination of compensable, excusable, or contractor delays that occur at the same timeIn settling delay disputes a combination of delays can result in one delay (or the corresponding clause) establishing or limiting the contract remedy
What are the Closeout Time Standards?
Simplified acquisition procedures - upon receipt of evidence of physical completion.Firm fixed price contracts (not using SAP) - six months after the receipt of physical completion.Contracts requiring settlement of indirect rates - 36 months after receipt of physical completion.
What is the form number for the Contract Closeout Checklist?
DD Form 1597
What is the form number for the contract completion statement
DD Form 1594
What are the final Final Closeout Steps?
Final voucher approved and paidDD Form 1594 issued (contract completion statement)Retire files
What are the Price Index Numbers?
Ratios (usually expressed as percentages or decimals) that indicate changes in pricesSimpleAggregrate
What is Price Reasonableness Decision?
Contracting Officer's responsibilityThe price a prudent buyer would be willing to pay given market conditions and other factorsIt's a matter of judgment
Terminations are covered in what FAR Part?
49
What is the Authority and Responsibility for terminating a contract?
Contracting Officers shall terminate contracts only when it is in the best interest of the government
What is the definition of Termination for Convenience?
the exercise of the Government's right to completely or partially terminate performance of work under a contract when it is in the Government's interest
What is the definition of Termination for Default?
the exercise of the Government's right to completely or partially terminate a contract because of the contractor's actual or anticipated failure to perform its contractual obligations
What is the definition of Termination for Cause
the exercise of the Government's right to terminate a contract because of the contractor's failure to deliver goods / services or otherwise breaches a COMMERCIAL contract
What is the definition of a Settlement agreement ?
a written agreement in the form of a contract modification settling all or a severable portion of a settlement proposal
What is the definition of a Settlement proposal?
A proposal for effecting settlement of a contract terminated in whole or in part, submitted by a contractor or subcontractor in the form, and supported by the dated, required by Part 49 of the FAR
What is a Show cause notice?
-A notice to the contractor that the government is considering a termination for default.
When the price of the undelivered balance of the contract is less than $5,000, should should the contract be terminated?
No. When the price of the undelivered balance of the contract is less than $5,000, the contract should normally not be terminated for convenience but should be permitted to run to completion
What are the Cure Notice Requirements?
Cure notice is required for a termination for defaultMust be "10" days left in the contractor period of performance to issue a "cure notice"If 10 days are not remaining, the "cure notice" would, in effect, extend the period of performance
If you are trying to T4D a small business concern, the contracting officer shall provide a copy of any cure or show cause notice to what organization?
Small Business Administration
What is a Claim?
A written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract
Anything over________________is a legitimate claim?
$100,000
What is a Accrual of a claim?
The date when all events, that fix the alleged liability of either the Government or the contractor and permit assertion of the claim, were known or should have been known
What is a Alternative Dispute Resolution?
Any type of procedure or combination of procedures voluntarily used to resolve issues in controversy
What is a Defective Certification?
A certificate which alters or otherwise deviates from the language in 33.207(c) or which is not executed by a person duly authorized to bind the contractor with respect to the claim.
What is a Issue in controversy?
-A material disagreement between the Government and the contractor that:May result in a claimIs all or part of an existing claim
What is Misrepresentation of fact?
A false statement of substantive fact, or any conduct which leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead
What is the Contract Disputes Act of 1978?
Establishes procedures and requirements for asserting and resolving claims subject to the ActThe Act also provides for:Payment of interest on contractor claimsCertification of contractor claimsCivil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact
What is the Applicability of the Contract Disputes Act?
Contract Disputes Act applies to any express or implied contract covered by the Federal Acquisition Regulation
What are the timelines for Initiating a Claim?
Contractor's have 6 years to file a claim unless the parties agree to a shorter time period
What is the timeline for resolving a claim?
After review of the claim and all associated facts to include legal review, the contracting officer has 60 days to issue a final decision.
What is the Contractor's Certification?
Any claim exceeding $100,000 shall be certified in writing by the contractor
What is the definition of Contract Financing?
is defined as Government authorized payments to contractors prior to the acceptance of supplies or services by the Government.
Why provide contract financing?
-To expedite the performance of essential contracts. -Increase competition-Cuts down on lead time
Is contract financing considered a loan?
No
Is Contract financing is monitored?
Yes
What types of contract financing are available?
1. Advance payments Least preferred financing method2. Performance-based payments; Preferred financing
What is the Prompt Payment Act?
Obligation to pay every "proper invoice" within 30 days after its receipt14 days for construction
Are Post award orientations always required?
No they are not always required
What is a Rule of Thumb for Contract Administration?
Read the contract - even if you awarded it.
What is partnering?
is a technique of Alternative Dispute Resolution (ADR) to resolve disputes
What is contract administration?
is all activities performed by contracting parties that relate to the performance of a contract and occur after contract award.
Do you administer all contracts the same way?
The level/amount of administration required varies from contract to contract
What part of the FAR are Acquisition plans written?
FAR Part 7
________________ are all the activities performed after a contract has been awarded to determine how well the government and contractor perform to meet the requirements of the contract.
Contract Administration
Things to consider when determining whether a post-award orientation is necessary:
-Type, value, and complexity of the contract -Contractor's performance history and experience with the product or service-Length of the planned production cycle-Safety precautions required for hazardous materials or operations-Contractor's performance history and experience with the product or service -When there are indications that the contractor lacks a clear understanding of the requirements in the contract
What are the Key Contract Requirements to Review during contract administration?
-Contract deliverables -Specifications / Statement of Work -Contract type and any incentives -Contract quality requirements -Inspection and acceptance criteria -Delivery schedule / period of performance
What are the two ways can a contract be administered?
Cradle-to-Grave = The KO is responsible for buy from pre-award to closeout.Delegation- KO can delegate administration functions to a contract administration office (CAO)
What are the three factors influencing the degree of contract administration?
-The nature of the work.-Type of contract awarded.-The experience and commitment of the personnel involved.
What part of the FAR address Protests?
FAR Part 33
What is the Agency deadline to resolve protests?
protests shall be filed no later than 10 days after the basis of protest is known or should have been known, whichever is earlier. 10 days after contract award, or within 5 days after a debriefing date offered to the protester, whichever is later
How much time is the GAO normally given to process a protest?
The GAO has 100 calendar days to make a decision from the time a protest is filed or 65 days if the express option is used
What forum(s) can a contractor use to submit a protest?
The protestor chooses where to file the protest:-Agency-General Accountability Office (GAO)-U.S. Court of Federal Claims
What is the definition of a Protest?
Protest" means a written objection by an interested party to a solicitation or a award of a contract by or for a federal agency.
What is the definition of a "Interested Party
is defined to include any offeror or prospective offeror whose direct economic interest would be affected by the award of a contract or by the failure to make the award
Why Do Contractors Protest?
-Restrictive requirements affecting competition-Requirements unclear-Exclusion from the "competitive range"-Government did not follow required procedures during discussions-Termination or Cancellation of a solicitation/award
What are three choices for the deciding official in reference to Protest?
The deciding official will either dismiss, deny, or sustain the protest
What Six essential elements that must be present in order for a contract to exist?
1. Mutual assent (Offer and Acceptance)2. Consideration3. Capacity4. Lawful purpose5. Certainty of terms6. Form provided by law