depending upon the estimated dollar value of the acquisition depending upon the estimated dollar value of the acquisition

(f) If Government audit discloses defective subcontractor certified cost or pricing data, the information necessary to support a reduction in prime contract and subcontract prices may be available only from the Government. . (6) If certified cost or pricing data were required, the extent to which the contracting officer-. When make-or-buy programs are required, the Government may reserve the right to review and agree on the contractors make-or-buy program when necessary to ensure negotiation of reasonable contract prices, satisfactory performance, or implementation of socioeconomic policies. PART 2--DEFINITIONS OF WORDS AND TERMS (ii) For agencies other than DoD, NASA, and the Coast Guard, a price is also based on adequate price competition when, (A) There was a reasonable expectation, based on market research or other assessment, that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation's expressed requirement, even though only one offer is received from a responsible offeror and if-, (1) Based on the offer received, the contracting officer can reasonably conclude that the offer was submitted with the expectation of competition, e.g., circumstances indicate that, (i) The offeror believed that at least one other offeror was capable of submitting a meaningful offer; and, (ii) The offeror had no reason to believe that other potential offerors did not intend to submit an offer; and, (2) The determination that the proposed price is based on adequate price competition and is reasonable has been approved at a level above the contracting officer; or. 1. 2008-03, but is subject to change - see FAR 6.304(a)(1) and 13.501(a)(2)(i). (ii) The Government proves that the facts demonstrate that the price would not have increased in the amount to be offset even if the available data had been submitted before the "as of" date specified on the Certificate of Current Cost or Pricing Data. (B) The prior price must be adjusted to account for materially differing terms and conditions, quantities and market and economic factors. (2) Audit and field pricing information, whether written or reported telephonically or electronically, shall be made a part of the official contract file (see 4.803(a)(19)). expected value from each acquisition; we show it to be superior both to uniform acquisitions and to policies that consider the acquisition only of feature values or only of class labels. (1) Cost realism analysis is the process of independently reviewing and evaluating specific elements of each offerors proposed cost estimate to determine whether the estimated proposed cost elements are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with the unique methods of performance and materials described in the offerors technical proposal. Cognizant audit activities, when it is appropriate to do so, shall establish and manage regular programs for reviewing selected contractors estimating systems or methods, in order to reduce the scope of reviews to be performed on individual proposals, expedite the negotiation process, and increase the reliability of proposals. The contractor shows his appreciation by offering you box tickets to your university's football game. The difference between each category is dependent on the location of a program in the Acquisition Process, funding amount for Research, Development, Test and Evaluation (RDT&E), total procurement cost, Milestone Decision Authority (MDA) special interest, and decision authority. If the ACO determines that a changed condition invalidates the agreement, the ACO shall notify all interested parties of the extent of its effect and status of efforts to establish a revised FPRA. b. will provide a debriefing to the SSA upon request. When obtaining data from the offeror is necessary, unless an exception under 15.403-1(b)(1) or (2) applies, such data submitted by the offeror shall include, at a minimum, appropriate data on the prices at which the same or similar items have been sold previously, adequate for evaluating the reasonableness of the price. Furnish experienced unit or lot costs (or labor hours) from inception of contract to the cutoff date, improvement curves, and any other available production cost history pertaining to the item(s) to which your proposal relates. true The choice of contract type to be used in a solicitation depends on the: All of the answers are correct The COR will be evaluating a contractor's performance using the ____ Quality assurance surveillance plan (b)(1) The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. -Promoting the acquisition of commercial items 2377. chapter 35). "Upon closing this transaction, we will have acquired more than 55,000 net acres of highly productive, oil-weighted inventory in Howard and western Glasscock counties in just two years . (2) Except for the acquisition of commercial products, contracting officers shall require that offerors identify in their proposals those items of supply that they will not manufacture or to which they will not contribute significant value, unless adequate price competition is expected ( 10 U.S.C. (3) When field pricing assistance is requested, contracting officers are encouraged to team with appropriate field experts throughout the acquisition process, including negotiations. CONTRACT AWARD: Depending upon the estimated dollar value of the acquisition: . What is the Competition in Contracting Act (CICA)? Rationale for business decisions made concerning the acquisition - two parts: The Contracting Officer may require you to submit cost or pricing data in support of proposals in lower amounts. Oral notifications shall be confirmed promptly in writing, including a description of deficient or denied data or records. The contracting officer shall tailor requests to reflect the minimum essential supplementary information needed to conduct a technical or cost or pricing analysis. What is the depreciation expense for 2019? L. 110-181 ). Enter in Column (9) the production costs from your books and records (exclusive of preproduction costs reported in Column (8)) of the units completed as of the cutoff date. Conduct site visits at the location(s) where the work is being performed (2) Except as provided in paragraph (h)(3) of this section, when an offeror for a contract or a task or delivery order informs the contracting officer pursuant to 52.215-22 that it intends to award subcontracts for more than 70 percent of the total cost of work to be performed under the contract, task or delivery order, the contracting officer shall. The information required from a contractor in a make-or-buy program shall be confined to those major items or work efforts that normally would require company management review of the make-or-buy decision because they are complex, costly, needed in large quantities, or require additional equipment or real property to produce. (iii) Comparison of costs proposed by the offeror for individual cost elements with-. What is are the functions of diverse organisms? (ii) The probable cost is determined by adjusting each offerors proposed cost, and fee when appropriate, to reflect any additions or reductions in cost elements to realistic levels based on the results of the cost realism analysis. Increase in Equity Value. Seven statutory exceptions. (a) General. However, if the contracting officer determines that information on competitive proposed prices or previous contract prices is not available or is insufficient to determine that the price is fair and reasonable, the contracting officer may use any of the remaining techniques as appropriate to the circumstances applicable to the acquisition. [1] . Also, if you desire to retain these items or any portion of them, indicate the amount offered for them. When prospective contractors are required to submit proposed make-or-buy programs, the solicitation shall include-, (1) A statement that the program and required supporting information must accompany the offer; and. What are the two most common types of best Value evaluations? However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding $2 million, the senior procurement executive (SPE) or chief acquisition officer (CAO) shall make a written determination that the consolidation is . Solis uses the effective-interest method of amortizing bond premium. (iii) The Government shall not disclose outside the Government data obtained relating to commercial products or commercial services that is exempt from disclosure under 24.202(a) or the Freedom of Information Act ( 5U.S.C.552(b)). The HCA may consider waiving the requirement if the price can be determined to be fair and reasonable without submission of certified cost or pricing data. -Unusual and compelling urgency Significant deficiencies not corrected by the contractor shall be a consideration in subsequent proposal analyses and negotiations. (1) When the program is to be incorporated in the contract and the design status of the product being acquired does not permit accurate precontract identification of major items or work efforts, the contracting officer shall notify the prospective contractor in writing that these items or efforts, when identifiable, shall be added under the clause at 52.215-9, Changes or Additions to Make-or-Buy Program. (iv) Verification that the offeror's cost submissions are in accordance with the contract cost principles and procedures in part 31 and, when applicable, the requirements and procedures in 48 CFR chapter 99, Cost Accounting Standards. estimates? Compatibility with other systems -FAR 13.104 - Contracting Officer must promote competition: PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLIC, Required Sources of Supplies and Services. (b) The contracting officer shall establish prenegotiation objectives before the negotiation of any pricing action. The Office of Management and Budget (OMB), pursuant to section 5112(e) of the Information Technology Management Reform Act (ITMRA) and better known as the Clinger-Cohen Act, designates an Executive Agent to operate each GWAC. Invitation for Bid - Sealed Bidding - FAR Part 14 Early communication with these experts will assist in determining the extent of assistance required, the specific areas for which assistance is needed, a realistic review schedule, and the information necessary to perform the review. (i) Whenever circumstances permit, the contracting officer and field pricing experts are encouraged to use telephonic and/or electronic means to request and transmit pricing information. 74,528 (December 30, 2021). ARB . the contracting officer or the source selection authority, INVOICE: Wide Area Work Flow (WAWF) is a Paperless Contracting, ETHICS PROCUREMENT PERSONNEL: You are a COR working on the third year of a 5-year contract (football tickets), . Inventory balance on hand both quantity and dollar value The inventory system must be maintained on a first-in, first-out (FIFO) basis. High School For Environmental Studies Ceeb Code, ", Should begin as soon as the agency need is identified. (1) When the contracting officer determines that prices agreed upon are based on adequate price competition (see standards in paragraph (c)(1) of this subsection); (2) When the contracting officer determines that prices agreed upon are based on prices set by law or regulation (see standards in paragraph (c)(2) of this subsection); (3) When a commercial product or commercial service is being acquired (see standards in paragraph (c)(3) of this subsection); (4) When a waiver has been granted (see standards in paragraph (c)(4) of this subsection); or. "Upon closing this transaction, we will have acquired more than 55,000 net acres of highly productive, oil-weighted inventory in Howard and western Glasscock counties in just two years . The contracting officer shall consider any new data submitted to correct the deficiency, or consider the inaccuracy, incompleteness, or noncurrency of the data when negotiating the contract price. (b) Price Reduction for Defective Certified Cost or Pricing Data. Increase in Equity Value estimated value, etc., will not be made until each procurement is initiated. (11) Documentation of fair and reasonable pricing. (c) Audit assistance for prime contracts or subcontracts. s. tatutory authority. The research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. Before making such a determination, the contracting officer should give the contractor an opportunity to support the accuracy, completeness, and currency of the data in question. (iii) Use of parametric estimating methods/application of rough yardsticks (such as dollars per pound or per horsepower, or other units) to highlight significant inconsistencies that warrant additional pricing inquiry. Under certain conditions the Government may not be able to specify its required delivery and/or quantity or may not have sufficient funds for obligation of the entire needed quantity at that time. A fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in the fiscal year for which the appropriation was made. 1.00 1.00 1.00 1.00 1.00 1.00 0.06 1.00 $155.84. Law The Federal Government's authority to enter into contracts derives from the U.S. Constitution, which defines its powers. The contracting officer shall not require certified cost or pricing data to support any action (contracts, subcontracts, or modifications) (but may require data other than certified cost or pricing data as defined in FAR 2.101 to support a determination of a fair and reasonable price or cost realism). Cost reimbursement contracts 100% Government. (v) Comparison of proposed prices with independent Government cost estimates. (a) When certified cost or pricing data are required, offerors are required to describe any forward pricing rate agreements (FPRAs) in each specific pricing proposal to which the rates apply and to identify the latest cost or pricing data already submitted in accordance with the FPRA. When any of the costs in this column have already been incurred, describe them on an attached supporting schedule. Planning the purchase should begin at the earliest practicable time. Determination and Findings, Multi-year contract" means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years. In this case, he could multiply his purchase price of $100,000 by 25% to get a land value of $25,000. For similar items, the contracting officer must also adjust the prior price to account for material differences between the similar item and the item being procured. Before applying profit or fee factors, the contracting officer shall exclude from the pre-negotiation cost objective amounts the purchase cost of contractor-acquired property that is categorized as equipment, as defined in FAR 45.101, and where such equipment is to be charged directly to the contract. (2) The contracting officer shall not request a separate preaward audit of indirect costs unless the information already available from an existing audit, completed within the preceding 12 months, is considered inadequate for determining the reasonableness of the proposed indirect costs ( 41 U.S.C.4706 and 10 U.S.C. They are to be used for instruction and professional guidance. (2) A program should-cost review should be considered, particularly in the case of a major system acquisition (see part 34), when-. Unless an exception applies, certified cost or pricing data are required before accomplishing any of the following actions expected to exceed the current threshold or, in the case of existing contracts, the threshold specified in the contract: (i) The award of any negotiated contract (except for undefinitized actions such as letter contracts). The scope and depth of the analysis supporting the objectives should be directly related to the dollar value, importance, and complexity of the pricing action. March 31, 2021. trade-offs made or relied on by the KO, including benefits associated with additional costs. The initial cost estimate must be completed before entry into the execution phase and must be updated annually. (1) Shall obtain certified cost or pricing data when required by 15.403-4, along with data other than certified cost . acquisition costs proposed is in excess of $1 million, 10 percent of all remaining . Acquisition background and objectives For each provision or clause, the matrix provides information on: 12,816. -Consider soliciting at least 3 sources For example, distributing costs equally among line items is not acceptable except when there is little or no variation in base cost. Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. In addition, consideration should be given to measures taken by the prospective contractor that result in productivity improvements, and other cost-reduction accomplishments that will benefit the Government in follow-on contracts. Negotiation of extremely low profits, use of historical averages, or automatic application of predetermined percentages to total estimated costs do not provide proper motivation for optimum contract performance. Military Construction - 5 years, prohibits federal employees from authorizing an expenditure of funds in excess of the amount available. Assume that the estimated productive life of the machine was 16,000 hours. . This clause also provides instructions to contractors on how to request an exception from the requirement to submit certified cost or pricing data. (ii) The clause may be used when the total estimated contract or order value is below the thresholds identified in 15.408(n)(2)(i) and for any contract type, when the contracting officer determines that inclusion of the clause is appropriate.