This factor should compensate contractors proportionately for assuming greater cost risks. Your personal and professional conduct influences the public's confidence in the federal acquisition process. (1) Except when pricing an item on the basis of adequate price competition or catalog or market price, unit prices shall reflect the intrinsic value of an item or service and shall be in proportion to an items base cost (e.g., manufacturing or acquisition costs). Price analysis may include evaluating data other than certified cost or pricing data obtained from the offeror or contractor when there is no other means for determining a fair and reasonable price. The completed field pricing assistance results may reference audit information, but need not reconcile the audit recommendations and technical recommendations. The expertise of on-site Government personnel should be used, when appropriate. plan, develop, execute. -Mandatory Federal Supply Schedule (www.gsaadvantage.gov) Obtain certified cost or pricing data from prospective sources for those acquisitions (such as subcontracts, purchase orders, material order, etc.) Overpayments do not result from amounts paid for contract financing, as defined in 32.001. The contracting officer shall insert the clause at 52.215-15, Pension Adjustments and Asset Reversions, in solicitations and contracts for which it is anticipated that certified cost or pricing data will be required or for which any preaward or postaward cost determinations will be subject to part 31. Give an example of a halo effect in marketing. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. What are some of the factors to consider when depending upon the estimated dollar value of the acquisition 3505(b)). ray_harris9. . Apache/2.4.38 (Debian) Server at walkerstalkerfanfest.com Port 80 1.00 1.00 1.00 1.00 1.00 1.00 0.06 1.00 $155.84. Acquisition Premium: An acquisition premium is the difference between the estimated real value of a company and the actual price paid to obtain it. However, when significant audit or other specialist recommendations are not adopted, the contracting officer should provide rationale that supports the negotiation result in the price negotiation documentation. -Promoting the acquisition of commercial items 3. Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. A document sent to prospective contractors by a Government agency, requesting the submission of offers or information. (iv) Any acquisition for other than commercial products or services treated as commercial products or commercial services at 12.102(f)(1), except sole source contracts greater than $20 million, is exempt from the requirements for certified cost or pricing data ( 41 U.S.C.1903). Who Depending upon the estimated dollar value of the acquisition and agency procedures the decision to award will be made by? What are policies associated with Justification and Approval (J&A)? 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). 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. The contracting officer shall not reprice the contract solely because the profit was greater than forecast or because a contingency specified in the submission failed to materialize. (v) Cost-control and other past accomplishments. Identification of the . (3) The contracting officer should decide which elements of the contractors operation have the greatest potential for cost savings and assign the available personnel resources accordingly. -Statutory requirement Normally, adequate price competition establishes a fair and reasonable price (see 15.403-1(c)(1)). The contracting officer shall, when contracting by negotiation, insert the clause at 52.215-10, Price Reduction for Defective Certified Cost or Pricing Data, in solicitations and contracts when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor (see 15.403-4). (a) The exercise of an option at the price established at contract award or initial negotiation does not require submission of certified cost or pricing data. 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. The fact that a price is included in a catalog does not, in and of itself, make it fair and reasonable. Vermilion's Board of Directors has approved an E&D capital budget of $425 million for 2022 which is expected to deliver annual average production of 83,000 to 85,000 boe/d, excluding any impact . -Requires approvals (ii) The contracting officer should be notified immediately of any information disclosed to the auditor after submission of a report that may significantly affect the audit findings and, if necessary, a supplemental audit report shall be issued. Apostolos Tsitsipas Born, Enter your estimate for cost of work added by the change. Enter in Column (10) the costs of work in process as determined from your records or inventories at the cutoff date. Contracting officers shall evaluate and negotiate proposed make-or-buy programs as soon as practicable after their receipt and before contract award. Data supporting forward pricing rate agreements or final indirect cost proposals shall be submitted in a form acceptable to the contracting officer. When certification is required, the contracting officer may require submission of certified cost or pricing data in the format indicated in Table 15-2 of 15.408, specify an alternative format, or permit submission in the contractors format (See 15.408(l)(1)), unless the data are required to be submitted on one of the termination forms specified in subpart 49.6. This dollar range is current as of the date of issuance of interim acquisition policy memorandum No. The scope of a should-cost review can range from a large-scale review examining the contractors entire operation (including plant-wide overhead and selected major subcontractors) to a small-scale tailored review examining specific portions of a contractors operation. (c) The contracting officer and contractor are encouraged to reach a prior agreement on criteria for establishing closing or cutoff dates when appropriate in order to minimize delays associated with proposal updates. (2) There are two types of should-cost reviews-program should-cost review (see paragraph (b) of this subsection) and overhead should-cost review (see paragraph (c) of this subsection). While these acquisitions are "accretive" to EPS, they are highly dilutive to cash flows and ACHC's balance sheet. Price analysis should be used to verify that the overall price offered is fair and reasonable. When you feel like it C. Monthly D. When net income is negative C. Monthly Companies should recognize inventory as an expense when purchased. (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. If release of the information would compromise Government security or disclose trade secrets or confidential business information, the contracting officer shall release it only under conditions that will protect it from improper disclosure. (D) General management. What is the order of priority for the required sources of services? The increases for micro-purchases and the simplified acquisition threshold apply to FTA-funded procurements made on or after June 20, 2018. Actual annual usage was 5,500 hours . 1. The purpose of this Policy is to establish the Department of Health and Human Services (HHS) Information Technology Acquisition Review (ITAR) Program. s. tatutory authority. -Performance by other than executive, admin or professional employees Policy - FAR 19.201 This factor allows additional profit opportunities to a prospective contractor that has previously demonstrated its ability to perform similar tasks effectively and economically. (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. (1) Format for submission of certified cost or pricing data. The five guides are: I Price Analysis, II Quantitative Techniques for Contract Pricing, III Cost Analysis, IV Advanced Issues in Contract Pricing, and V Federal Contract Negotiation Techniques. (C) For acquisitions funded by DoD, NASA, or Coast Guard such modifications of a commercial product are not exempt from the requirement for submission of certified cost or pricing data on the basis of the exemption provided for at 15.403-1(c)(3) if the total price of all such modifications under a particular contract action exceeds the greater of the threshold for obtaining certified cost or pricing data in 15.403-4 or 5 percent of the total price of the contract at the time of contract award. 15.402 Pricing policy. This is because the act is one of potential fraud. 45 day response time for R&D actions that exceed the SAT, Contracting Officers must publicize contract actions in order to (1) The contracting officer should request field pricing assistance when the information available at the buying activity is inadequate to determine a fair and reasonable price. (a) If, before agreement on price, the contracting officer learns that any certified cost or pricing data submitted are inaccurate, incomplete, or noncurrent, the contracting officer shall immediately bring the matter to the attention of the prospective contractor, whether the defective data increase or decrease the contract price. no, the tickets exceed the (ii) The contracting officer shall, to the maximum extent practicable, limit the scope of the request for data relating to commercial products or commercial services to include only data that are in the form regularly maintained by the offeror as part of its commercial operations. Option fulfills an existing need However, they are not directive and should be considered informational only. b. will provide a debriefing to the SSA upon request. Consent to subcontracts and review of contractors purchasing systems are separate actions covered in part 44. Under this factor, the contractor may be provided additional profit opportunities in recognition of independent development efforts relevant to the contract end item without Government assistance. (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)). 2377. Overpayment occurs only when payment is made for supplies or services accepted by the Government. Assume that the estimated productive life of the machine was 16,000 hours. (a) Purchase supplies and services from responsible sources at fair and reasonable prices. In addition, by providing rationale for any recommendations and quantifying their impact on cost, the Government will be better able to develop realistic objectives for negotiation. Solis uses the effective-interest method of amortizing bond premium. Explain the basis for the estimates, including identification of any provision for experienced or anticipated allowances, such as shrinkage, rework, design changes, etc. c. Verify that required department of labor and equal employment opportunity documents are posted in view of employees, In the interval between the release of the solicitation and contract award, all contact with potential or actual offerors, relating to a certain acquisition, should be coordinated through, The ________ is the automated contracting system that standardizes procurement processes across DoD. The estimated cost of equity for Glaxo in December 1994 was Cost of Equity = 8.00% + 1.10 (5.50%) = 14.05% This is the cost of equity, if cash flows are estimated in dollars. This data may include history of sales to non-governmental and governmental entities, cost data, or any other information the contracting officer requires to determine the price is fair and reasonable. and WHITEHOUSE STATION, N.J., Dec. 14, 2020 (GLOBE NEWSWIRE) -- Murphy USA announced an agreement to acquire QuickChek Corporation ("QuickChek") in an all-cash transaction for . It was driven 18,000 miles in 2018 and 32,000 miles in 2019. Which of the following individuals has expressed authority to enter into and administer contracts and is responsible for ensuring? The services contracting that the Gov. The dollar value will be supported by appropriate documentation. 3705(b) and 41 U.S.C. A complete discussion of supporting documentation can be found at paragraph 060106 of this . 3322(b) and 41 U.S.C. (b) The certificate does not constitute a representation as to the accuracy of the contractors judgment on the estimate of future costs or projections. Compatibility with other systems each acquisition of suppliesor services that has an anticipated dollar value above the micro-purchasethreshold, but not over the simplified acquisition threshold, shall beset aside for small business unless the contracting officer determinesthere is not a reasonable expectation of obtaining offers from twoor more responsible small business 1. Jimmy Snyder Musician, What is the Government's policy concerning the use of Small Business Concerns? Unless the acquisition requires synopsizing: (5) If there is more than one prospective subcontractor for any given work, the contractor need only submit to the Government certified cost or pricing data for the prospective subcontractor most likely to receive the award. (1) Use the provision with its Alternate I to specify a format for certified cost or pricing data other than the format required by Table 15-2 of this section; (2) Use the provision with its Alternate II if copies of the proposal are to be sent to the ACO and contract auditor; (3) Use the provision with its Alternate III if submission via electronic media is required; and. (2) The Government may use various cost analysis techniques and procedures to ensure a fair and reasonable price, given the circumstances of the acquisition. When required by the contracting officer, data other than certified cost or pricing data may be submitted in the offerors own format unless the contracting officer decides that use of a specific format is essential for evaluating and determining that the price is fair and reasonable and the format has been described in the solicitation. Who Depending upon the estimated dollar value of the acquisition and Law The Federal Government's authority to enter into contracts derives from the U.S. Constitution, which defines its powers. (2) Price analysis shall be used when certified cost or pricing data are not required (see paragraph (b) of this subsection and 15.404-3). If cost or price analysis techniques indicate that an offer is unbalanced, the contracting officer shall-, (i) Consider the risks to the Government associated with the unbalanced pricing in determining the competitive range and in making the source selection decision; and. Normally, make-or-buy programs should not include items or work efforts estimated to cost less than 1 percent of the total estimated contract price or any minimum dollar amount set by the agency. (a) Taking into consideration the policy at 15.402, the contracting officer shall specify in the solicitation (see 15.408(l) and (m))-. Invitation for Bid - Sealed Bidding - FAR Part 14 . (i) The contracting officer shall not negotiate a price or fee that exceeds the following statutory limitations, imposed by 10 U.S.C. This is because the act is one of potential fraud. If the prospective contractor does not propose facilities capital cost of money in its offer, the contracting officer shall insert the clause at 52.215-17, Waiver of Facilities Capital Cost of Money, in the resulting contract. Sole Source CHAPTER 35). 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. depending upon the estimated dollar value of the acquisition Who Depending upon the estimated dollar value of the acquisition and agency procedures the decision to award will be made by? -Type and complexity of requirement Inventory balance on hand both quantity and dollar value The inventory system must be maintained on a first-in, first-out (FIFO) basis. Decision, or approval. Risks -Service contract (3) Format for submission of data supporting forward pricing rate agreements. Complexity Subcontractor certified cost or pricing data must be accurate, complete and current as of the date of final price agreement, or an earlier date agreed upon by the parties, given on the prime contractors Certificate of Current Cost or Pricing Data. What requirements must be fulfilled to exercise an option? (ii) The waiver specifically includes the subcontract and the rationale supporting the waiver for that subcontract. What is the method of procurement and synopsis for a requirement over $25K, Purchase Order and advertised on FedBizOpps/ASFI, What is the method of procurement and synopsis for a requirement > SAT, Contract and advertised on FedBizOpps/ASFI, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. (a) Certified cost or pricing data shall not be obtained for acquisitions at or below the simplified acquisition threshold. Considerations include how labor in the overhead pools would be treated if it were direct labor, whether elements within the pools are routine expenses or instead are elements that contribute significantly to the proposed contract, and whether the elements require routine as opposed to unusual managerial effort and attention. (iii) Use the clause 52.215-23 with its Alternate I when the contracting officer determines that the prospective contractor has demonstrated that its functions provide added value to the contracting effort and there are no excessive pass-through charges. When nonrecurring costs are significant, or when specifically requested to do so by the Contracting Officer, provide a full identification and explanation of them. The phases of the services acquisition process are. Estimated Capacity based upon POW = $250,000 . Acquisition background and objectives (3) Upon the request of a contractor that was required to submit certified cost or pricing data in connection with a prime contract entered into before July 1, 2018, the contracting officer shall modify the contract, without requiring consideration, to reflect a $2 million threshold for obtaining certified cost or pricing data on subcontracts entered on and after July 1, 2018. (5) When a program should-cost review is planned, the contracting officer should state this fact in the acquisition plan or acquisition plan updates (see subpart 7.1) and in the solicitation. 1152.65 124009.00 Increase in Value of Equity. 3. -Urgency of requirement , when the estimated value equals or exceeds $25,000, but is less than $182,000 , unless an exception at FAR 25.401 or 225.401 applies. (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. Acquisition Premium: An acquisition premium is the difference between the estimated real value of a company and the actual price paid to obtain it. Military Construction - 5 years, prohibits federal employees from authorizing an expenditure of funds in excess of the amount available. (5) When modifying a contract or subcontract for commercial products or commercial services (see standards in paragraph (c)(3) of this section). (1) In those acquisitions that do not require certified cost or pricing data, the contracting officer shall. If the contracting officer determines that a product or service claimed to be commercial is not, and that no other exception or waiver applies (e.g., the acquisition is not based on adequate price competition; the acquisition is not based on prices set by law or regulation; and the acquisition exceeds the threshold for the submission of certified cost or pricing data at 15.403-4(a)(1)) the contracting officer shall require submission of certified cost or pricing data. Enter total incurred costs (Total of Columns (8), (9), and (10)). Sangoma's head office is located at 100 Renfrew Drive, Suite 100, Markham, Ontario. (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. Over $13.5 Million - $93 Million - Head of the Contracting Activity The analytical techniques and procedures described in this subsection may be used, singly or in combination with others, to ensure that the final price is fair and reasonable. This includes requiring data from an offeror to support a cost realism analysis; (iii) Consider whether cost data are necessary to determine a fair and reasonable price when there is not adequate price competition; (iv) 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 unless an exception under 15.403-1(b)(1) or (2) applies; and. b. 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, . However, please be advised that the increase in the simplified acquisition threshold to $250,000 does not apply for Buy America purposes, as the small purchase amount is established at $150,000 in FTA's . Option was synopsized IAW FAR Part 5 How do you determine whether a particular policy or procedure stated in the FAR applies to a given acquisition? Tradeoff, Any competitive negotiated acquisition having a basis for award stating that factors in addition to cost/price will be considered in selecting the successful offeror(s) Such techniques and procedures include the following: (i) Verification of cost data or pricing data and evaluation of cost elements, including-. Accounting 210 Final, Ch. 5-8 Flashcards | Quizlet (b) Price Reduction for Defective Certified Cost or Pricing Data. (d) For each advisory audit received based on a postaward review that indicates defective pricing, the contracting officer shall make a determination as to whether or not the data submitted were defective and relied upon. 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.