depending upon the estimated dollar value of the acquisition

Military Personnel - 1 year Raw materials, commercial products, commercial services (see 2.101), and off-the-shelf items (see 46.101) shall not be included, unless their potential impact on contract cost or schedule is critical. Its title or full text. The prime contractor is responsible for managing contract performance, including planning, placing, and administering subcontracts as necessary to ensure the lowest overall cost and technical risk to the Government. (v) Cost-control and other past accomplishments. Unbalanced pricing exists when, despite an acceptable total evaluated price, the price of one or more line items is significantly over or understated as indicated by the application of cost or price analysis techniques. -Promoting the acquisition of commercial items From 1993 to 2001, Cisco acquired 71 companies, at an average price of approximately $350 million. It is normally used to evaluate and negotiate an FPRA with the contractor. The contracting officers objective is to negotiate a contract of a type and with a price providing the contractor the greatest incentive for efficient and economical performance. Negotiations aimed merely at reducing prices by reducing profit, without proper recognition of the function of profit, are not in the Governments interest. (1) The requirements of this paragraph (h) are applicable to all agencies. Limited competition required to meet requirements 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. Unless the acquisition requires synopsizing: Justification and Approval (J&A)/Sole Source. If a fair and reasonable price cannot be established by the contracting officer from the analyses of the data obtained or submitted to date, the contracting officer shall require the submission of additional data sufficient for the contracting officer to support the determination of the fair and reasonable price. (1) An overhead should- cost review is used to evaluate indirect costs, such as fringe benefits, shipping and receiving, real property, and equipment, depreciation, plant maintenance and security, taxes, and general and administrative activities. as a COR, establishing a joint partnership with your Contracting Officer, TYPES OF CONTRACT CHANGES: With regard to contract modifications, IDENTIFY THE STEPS IN THE PROPOSAL EVALUATION PROCESS: A nominated COR frequently is asked, IDENTIFY DIFFERENCE ACTUAL/EXPRESS, IMPLIED, APPARENT AUTHORITY: Our acquisition regulations provide the foundation, RECOGNIZE IMPORTANCE OF COMPETITION: The competition in Contract Act requires that, IDENTIFY THE CATEGORIES OF CONTRACTS: The services contracting that the Government prefers not to use, IDENTIFY THE CORS ETHICAL RESPONSIBILITIES: Your personal and professional conduct influences, RECOGNIZE THE DUTIES AND FUNCTIONS EXPECTED OF A COR: The COR's authority is delineated in which document, IDENTIFY PROPER INVOICE REQUIREMENTS: Failure of the government to pay the contractor within 30 days, IDENTIFY THE ACTIVITIES PERFORMED IN PLANNING THE ACQUISITION: The purpose of market research is to maximize the capabilities, EFFECTIVE ACQUISITION TEAM: To have an effective acquisition team, it is important that you choose a group, IDENTIFY PERFORMANCE ASSESSMENT RESPONSIBILITIES: What is the COR's primary purpose in performing an inspection, . -Market research Designated at the agency and each procuring activity and responsible for: (1) Profit or fee prenegotiation objectives do not necessarily represent net income to contractors. (c) Not include in a contract price any amount for a specified contingency to the extent that the contract provides for a price adjustment based upon the occurrence of that contingency. What is the Primary method of contracting for construction? Table 15-2Instructions for Submitting Cost/, http://www.acq.osd.mil/dpap/cpic/cp/contract_pricing_reference_guides.html, Civilian Agency Acquisition Council (CAAC), Interagency Suspension and Debarment Committee (ISDC), This document provides instructions for preparing a contract. 7. -Cost analysis Inventory balance on hand both quantity and dollar value The inventory system must be maintained on a first-in, first-out (FIFO) basis. Over $13.5 Million - $93 Million - Head of the Contracting Activity Enter your estimate for cost of work added by the change. (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. 453.94 $46.38. A. Enter those necessary and reasonable costs that, in your judgment, will properly be incurred in efficient contract performance. (h)Ensuring that the principles of this subpart are used, as appropriate, for those acquisitions that do not require a written plan as well as for those that do. (b) Whenever field pricing assistance has been obtained, the contracting officer shall forward a copy of the negotiation documentation to the office(s) providing assistance. (2) Contracting officers normally shall not agree to proposed "make items" when the products or services are not regularly manufactured or provided by the contractor and are available-quality, quantity, delivery, and other essential factors considered-from another firm at equal or lower prices, or when they are regularly manufactured or provided by the contractor, but are available-quality, quantity, delivery, and other essential factors considered-from another firm at lower prices. CONTRACT AWARD: Depending upon the estimated dollar value of the acquisition:. What are the two types of market research and how do they differ? When residual inventory exists, the final costs established under fixed-price-incentive and fixed-price-redeterminable arrangements should be net of the fair market value of such inventory. Depending on the brand and quality level of the asset, these figures can also be higher. Question One The correct answer is Report to supervisor. The amount of time necessary for the planning process is dependent upon the dollar value, risk, complexity, and criticality of the proposed purchase. When preproduction or startup costs are significant, or when specifically requested to do so by the Contracting Officer, provide a full identification and explanation of them. ray_harris9. (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. The median Series A deal had a pre-money valuation of $20 million. In order to foster achievement of program objectives, each agency may include additional factors in its structured approach or take them into account in the profit analysis of individual contract actions. (d) Profit-analysis factors-. 2.Very costly and long-lead time, The process of creating and issuing federal regulations. This factor measures the degree of support given by the prospective contractor to Federal socioeconomic programs, such as those involving small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, women-owned small business concerns, veteran-owned, HUBZone, service-disabled veteran-owned small business concerns, sheltered workshops for workers with disabilities, and energy conservation. (2) Cost realism analyses shall be performed on cost-reimbursement contracts to determine the probable cost of performance for each offeror. This article explores the implications of acquisition value assessment for homesteaded property established in 1983 in Muscogee County, Georgia. experts as needed to develop the package, depending on the type of acquisition and the estimated dollar value. Milestones (at which decisions should be made) 6.303-3 Industrial mobilization; engineering, developmental, or research capability; or expert services Firm _____________________________________________, Signature _________________________________________, Name ____________________________________________, Title _____________________________________________, Date of execution***________________________________. An official website of the General Services Administration. Unless an exception under 15.403-1(b)(1) or (2) applies, the contracting officer shall require that the data submitted by the offeror include, at a minimum, appropriate data on the prices at which the same item or similar items have previously been sold, adequate for determining the reasonableness of the price. (vi) Independent development. (1) Format for submission of certified cost or pricing data. (7) The Air Force Institute of Technology (AFIT) and the Federal Acquisition Institute (FAI) jointly prepared a five-volume set of Contract Pricing Reference Guides to guide pricing and negotiation personnel. (6) Proposed cost; profit or fee; and total; (7) Whether you will require the use of Government property in the performance of the contract, and, if so, what property; (8) Whether your organization is subject to cost accounting standards; whether your organization has submitted a CASB Disclosure Statement, and if it has been determined adequate; whether you have been notified that you are or, (9) The following statement: This proposal reflects our estimates and/or actual costs as of this date and conforms with the instructions in FAR, C. As part of the specific information required, you, (2) Information reasonably required to explain your estimating process, including-, (i) The judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data; and, (ii) The nature and amount of any contingencies included in the proposed, F. Whenever you have incurred costs for work performed before submission of a proposal, you, G. If you have reached an agreement with Government representatives on use of forward, H. As soon as practicable after final agreement on. 1.Begin with Research and Development Overpayment occurs only when payment is made for supplies or services accepted by the Government. The statement of applicability may state that the information in the part applies to a distinct set of acquisitions, does not apply to a distinct set of acquisitions, or both. In addition, provide a summary of your cost analysis and a copy of certified cost or pricing data submitted by the prospective source in support of each subcontract, or purchase order that is the lower of either $15 million or more, or both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor's proposed price. 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. (e) If both the contractor and subcontractor submitted, and the contractor certified, or should have certified, cost or pricing data, the Government has the right, under the clauses at 52.215-10, Price Reduction for Defective Certified Cost or Pricing Data, and 52.215-11, Price Reduction for Defective Certified Cost or Pricing Data-Modifications, to reduce the prime contract price if it was significantly increased because a subcontractor submitted defective data. (ii) Both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractors proposed price, unless the contracting officer believes such submission is unnecessary. Indefinite Delivery Indefinite Quantity. Approvals needed. (iv) Information relative to the business, technical, production, or other capabilities and practices of an offeror. (2) Under cost-reimbursement contracts and under all fixed-price contracts except firm-fixed-price contracts and fixed-price contracts with economic price adjustment, payments to subcontractors that are higher than they would be had there been no defective subcontractor certified cost or pricing data shall be the basis for disallowance or nonrecognition of costs under the clauses prescribed in 15.408(b) and (c). s. tatutory authority. Acquisition premium represents the increased . Requiring certified cost or pricing data (10 U.S.C. Evaluate the effectiveness of the various tools of U.S. foreign policy. 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. Examples of such techniques include, but are not limited to, the following: (i) Comparison of proposed prices received in response to the solicitation. ARB Coordinator. Determine the value of capital assets in the following manner: 30.20.10.a Purchased assets.Use historical costs including all nonrefundable purchase taxes (e.g., sales taxes), and all appropriate ancillary costs less any trade discounts or rebates. Should-cost reviews differ from traditional evaluation methods because they do not assume that a contractors historical costs reflect efficient and economical operation. When recording the acquisition of a General PP&E asset in a property accountability and/or accounting system, the asset shall be assigned a dollar value as detailed in this Chapter. 3. Glaxo Holdings had an estimated beta of 1.10 at the end of 1994. . Any discrepancy or mistake of fact (such as duplications, omissions, and errors in computation) contained in the certified cost or pricing data or data other than certified cost or pricing data submitted in support of a proposal shall be brought to the contracting officers attention for appropriate action. What is the pre-solicitation published time? Depending on the type of acquisition and the estimated dollar value, the requiring component is expected to form a multi- functional team consisting of the PM, CO, CS, and Contracting Officer's Representative (COR) to develop the package. (ii) Level of Government participation. The threshold for obtaining certified cost or pricing data is $750,000 for prime contracts awarded before July 1, 2018, and $2 million for prime contracts awarded on or after July 1, 2018.When a clause refers to this threshold, and if the threshold is adjusted for inflation pursuant to 1.109(a), then pursuant to 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. (vi) Identification of proposed subcontractors, if known, and their location and size status (also see subpart 19.7 for subcontracting plan requirements). Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. This requirement does not apply when unrelated and separately priced changes for which certified cost or pricing data would not otherwise be required are included for administrative convenience in the same modification. (a) Purchase supplies and services from responsible sources at fair and reasonable prices. According to the JN+A and HVS Design Hotel Cost Estimating Guide for 201 9, the detailed cost average expense per room for a hotel guestroom renovation is $18,218. What is the Preferred Method to describe requirements? The contracting officer immediately shall take appropriate action to obtain the required data. (D) General management. 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. Funds are available Prohibition on obtaining certified cost or pricing data (10 U.S.C. (9) To the extent such direction has a significant effect on the action, a discussion and quantification of the impact of direction given by Congress, other agencies, and higher-level officials (i.e., officials who would not normally exercise authority during the award and review process for the instant contract action). The phases of the services acquisition process are. (1) If, after award, certified cost or pricing data are found to be inaccurate, incomplete, or noncurrent as of the date of final agreement on price or an earlier date agreed upon by the parties given on the contractor's or subcontractor's Certificate of Current Cost or Pricing Data, the Government is entitled to a price adjustment, including profit or fee, of any significant amount by which the price was increased because of the defective data. This form also must be completed before the program official submits the purchase request (PR) package to the Procurement Office. and depending on the size of the acquisition or disposition, may require . no, the tickets exceed the gratuity dollar threshold of $20, LIST FREQUENTLY USED CONTRACT TYPES: The choice of contract type to be used in a solicitation depends on, IMPORTANCE OF REQUIREMENTS DEFINITION PROCESS: The ___ is the document used to describe the work, - performance work statement or statement of work, IDENTIFY STEPS OF SERVICES ACQUISITION PROCESS: The phases of the services acquisition process are, IDENTIFY THE CORS ETHICAL RESPONSIBILITIES: You notice a contractor offering free lunch, IDENTIFY THE METHODS OF CONTRACTING: A blanket purchase agreement, IDENTIFY THE STEPS IN THE PROPOSAL EVALUATION PROCESS: The technical experts and nominated COR are usually involved in evaluating, IDENTIFY THE CATEGORIES OF CONTRACTS: A government preference is non-personal, x change a contractor employees duty hours, IDENTIFY ACTIVITIES PERFORMED IN PLANNING ACQUISITION: The Services Acquisition Process begins with planning, x acquisition planning, market research, acquisition strategy, LIST THE FREQUENTLY DELEGATED CONTRACT ADMINISTRATION DUTIES: when a contractor performs work beyond that required, POOR PERFORMANCE: You are monitoring a custodial contract (bathroom), ESTABLISHING/MAINTAINING COR FILE: As a matter of practice, when a COR holds a discussion, PERFORMANCE ASSESSMENT RESPONSIBILITIES: When assessing a contractor's performance, DUTIES AND FUNCTIONS OF A COR: Which of the following statements (false), IDENTIFY THE ELEMENTS OF CONTRACT PERFORMANCE MANAGEMENT: a properly written ____ focuses on the quality, quantity, timeliness etc, x quality assurance surveillance plan (QASP), EFFECTIVE ACQUISITION TEAM: Which selection best describes the preferred relationship, . When appropriate, information on how advisory field support can be made more effective should be provided separately. (4) Replace the basic clause with its Alternate IV if certified cost or pricing data are not expected to be required because an exception may apply, but data other than certified cost or pricing data will be required as described in 15.403-3. (ii) The waiver specifically includes the subcontract and the rationale supporting the waiver for that subcontract. -Does NOT require Congressional Approval. Total Holdings Value is calculated by taking the most recent acquisition or disposal transaction for each distinct ticker value of Insider Filings transactions . The estimate should consider the technical content of the program described in the CNS, UA, acquisition strategy, and test strategy. (c) Commercial products and commercial services. Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. What are the two basic types of contracts? (3) The first two techniques at 15.404-1(b)(2) are the preferred techniques. 2377. List of facts or justification Planning the purchase should begin at the earliest practicable time. Overpayments do not result from amounts paid for contract financing, as defined in 32.001. Healy, Palepu, and Ruback (1997) argue that advantages of using a sample of large acquisitions over a random sample include (1) the dollar value of the The estimated useful life was four years, and the residual value was $1,000. The labor elements in the allocable indirect costs should be given the profit consideration they would receive if treated as direct labor. . Created by. Revenues: ATM operating revenues $ 255,018 $ 291,799 (12.6)%. Life-cycle cost In support of subcontract costs, submit a listing of all subcontracts subject to repricing action, annotated as to their status. Assume that the estimated productive life of the machine was 16,000 hours. (d) If, however, the contractor insists on a price or demands a profit or fee that the contracting officer considers unreasonable, and the contracting officer has taken all authorized actions (including determining the feasibility of developing an alternative source) without success, the contracting officer shall refer the contract action to a level above the contracting officer. L. 85-804 may not- (1) Be used in a manner that encourages carelessness and laxity on the part of persons engaged in the defense effort; or (2) Be relied upon when other adequate legal authority exists within the agency. What are the five types of money and their purposes? 4. true ETHICS PROCUREMENT PERSONNEL: You are a COR working on the third year of a 5-year contract (football tickets). . This subfactor measures the contribution of direct engineering, manufacturing, and other labor to converting the raw materials, data, and subcontracted items into the contract items. (v) Major system or program. ARB Coordinator. The requirements apply by law to the Department of Defense, the Department of State, and the United States Agency for International Development, per section 802 of the National Defense Authorization Act (NDAA) for Fiscal Year 2013. The K values are based on 1968 dollars. Planning the purchase should begin at the earliest practicable time. The contracting officer shall establish a follow-up plan to monitor the correction of the uneconomical or inefficient practices. -Optional use Federal Supply Schedules Increase in Value of Equity. Tradeoffs This potential remuneration element and the Governments estimate of allowable costs to be incurred in contract performance together equal the Governments total prenegotiation objective. DoD, GSA, and NASA published an interim rule in the Federal Register at 75 FR 34277 on June 16, 2010, to implement section 826, Market Research, of the National Defense Authorization Act for Fiscal Year 2008 ( Pub. The head of the contracting activity (HCA) may, without power of delegation, waive the requirement for submission of certified cost or pricing data in exceptional cases. chapter 271 and 41 U.S.C. Total Holdings Value is calculated by taking the most recent acquisition or disposal transaction for each distinct ticker value of Insider Filings transactions . (c) Contracting officers shall not require certification at the time of agreement for data supplied in support of FPRAs or other advance agreements. (i) The contracting officer shall limit requests for sales data relating to commercial products or commercial services to data for the same or similar items during a relevant time period. Purpose. Greater profit opportunity should be provided under contracts requiring a high degree of professional and managerial skill and to prospective contractors whose skills, facilities, and technical assets can be expected to lead to efficient and economical contract performance. (b) Exceptions to certified cost or pricing data requirements. Subject to the authorities in 1.301(c), agencies making noncompetitive contract awards over $100,000 totaling $50 million or more ayear-, (i) Shall use a structured approach for determining the profit or fee objective in those acquisitions that require cost analysis; and. -Foreign Military Sales (if source directed) It was driven 18,000 miles in 2018 and 32,000 miles in 2019. The acquisition price of a company is the total consideration paid for the company on an agreed date. 6.302-7 - Public Interest, -Exception authority cited for recommending a Sole Source (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)). This subfactor measures the managerial and technical effort needed to obtain the required purchased parts and material, subcontracted items, and special tooling. (iv) In the demand letter, the contracting officer shall separately include-. While the particular elements to be analyzed are a function of the contract work task, elements such as manufacturing, pricing and accounting, management and organization, and subcontract and vendor management are normally reviewed in a should-cost review. (i) The auditor shall not reveal the audit conclusions or recommendations to the offeror/contractor without obtaining the concurrence of the contracting officer. Over $700K - $13.5 Million - Competition Advocate for the procuring activity (not delegable) Risks Broaden industry participation in meeting Government requirements; and This subsection prescribes policies for establishing the profit or fee portion of the Government prenegotiation objective in price negotiations based on cost analysis. Acquisition background and objectives Cost - the cost of the purchased software 12. excluded. See HHSAR 306.304(a)(1) and 313.501(a)(2)(i) for additional information regarding CO approval of a JOFOC in this dollar range. Enter in Column (10) the costs of work in process as determined from your records or inventories at the cutoff date. (5) When modifying a contract or subcontract for commercial products or commercial services (see standards in paragraph (c)(3) of this section). Seven statutory exceptions. ETHICS PROCUREMENT PERSONNEL: You are a COR working on the third year of a 5-year contract (football tickets) Estimated Capacity based upon POW = $250,000 . To the extent necessary to secure a prime contract price reduction, the contracting officer should make this information available to the prime contractor or appropriate subcontractors, upon request. (ii) In accordance with section 41 U.S.C. true. The range of data from which the K and m values are derived in the primary sources should be observed in order to use them in making cost estimates. When the contracting officer determines that the contractor submitted defective cost or pricing data, the contracting officer, in accordance with agency procedures, shall ensure that information relating to the contracting officers final determination is reported in accordance with 42.1503(h). (a) The purpose of performing cost or price analysis is to develop a negotiation position that permits the contracting officer and the offeror an opportunity to reach agreement on a fair and reasonable price.