| CON 090FAR Fundamentals Module 1 Student Guide | 7 January 2013 |
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Table of Contents

CON 090 Course Syllabus 3 CON 090 SCHEDULE Error! Bookmark not defined. Course Design – How CON 090 “Works” 3 Module 1 – Using the FAR and DFARS 3 Module 1 Schedule 3 Module 1 Homework 3 Introduction 3 Learning Objectives 3 FAR Basics .17 Organization & Arrangement of the FAR 25 FAR Research Exercise 33 DFARS Basics 35 FAR/DFARS Research Exercise 39 Deviations from the FAR and DFARS 41 FAR/DFARS/Class Deviations Research Exercise 43 Reading the FAR 45 FAR Reading Exercise 51 Interpreting the FAR 53 FAR Interpretation Exercise 55 Putting It All Together 57 Applying the Regulations .59 Appendix 63

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CON 090 Course Syllabus

A. Course Title: Federal Acquisition Regulation (FAR) Fundamentals

B. Course Number: CON 090

C. Course Prerequisites: None

D. CLPs/CEUs/Number of ACE-Recommended Credits: CLPs 141/CEUs 14.1/ 3 Graduate-Level Credits

E. Course Manager: Don Mansfield, (619) 524-5474 a. Phone: (619) 524-5474 b. E-mail: donald.mansfield@dau.mil

Performance Learning Director (HQ DAU): James W. Malloy, Jr. a. Phone: (703) 805-4365 b. E-mail: james.malloy@dau.mil

F. Course Description: FAR Fundamentals (CON 090) is a resident Defense Acquisition Workforce Improvement Act (DAWIA) Level I contracting course for newly hired GS-1102 contracting personnel. This course is four (4) weeks in length and provides foundational knowledge of the Federal Acquisition Regulation (FAR) System. Specifically, the course provides immersion training into the FAR; Defense Federal Acquisition Regulation Supplement (DFARS); the DFARS Procedures, Guidance, and Information (PGI); and Department of Defense (DoD) class deviations from the FAR and DFARS.

G. Course Objective : Given a contracting scenario, the student will locate, interpret, and apply the acquisition regulations applicable to the Department of Defense.

H. Course Concept: The first week of the course will be focused on familiarizing the student with using the FAR/DFARS/PGI/class deviations and developing basic skills necessary to locate and interpret applicable rules. Subsequent weeks will focus on the application of the FAR/DFARS/PGI/class deviations to real-world scenarios found in the contract planning, contract formation, and contract administration phases.

J. Course Materials: CON 090 Student Guide

K. The following critical performances are required in this course:

a. Performance: Students must earn at least 80% of all possible points to pass
(see Evaluation).

b. Behavioral: CON 090 is not a college course and the objective of the course is not primarily to educate—rather, it is to train students how to apply the FAR/DFARS on their own in an operational environment. To be successful in CON 090, students will have to develop effective habits and skills. The instructor’s role will be to guide students in their training—not to provide information that students can easily look up on their own. As such, students shouldn’t be offended when an instructor tells them to “look it up” or doesn’t provide the answer immediately. Students must also accept that, despite their prior academic achievements, they will often be wrong during this course. This is part of the learning process. It is much better to make mistakes in the classroom when they are of little consequence than in the workplace where they can cost taxpayers millions of dollars and embarrass the Government. Lastly, students must arrive to class and return from breaks punctually. Students must actively participate in classroom activities and complete all assignments to be successful.

L. Evaluation (How performance will be assessed): Students will be evaluated on the basis of their performance on quizzes (20%), exams (70%), and on their participation (10%). Students must achieve an overall score of 80% to pass. A breakdown of the evaluation scheme is provided below:

Quizzes—20%

There will be a total of 14 quizzes worth ten points each. To calculate your overall quiz score, the sum of the points from your 12 highest quiz grades will be divided by the sum of all possible points (120). The result will then be multiplied by 20. For example, if the sum of your quiz scores is 100, your overall quiz score will be calculated as follows:

(100/120) x 20 = 16.7

Exams—70%

There will be a total of four exams worth twenty points each. The exams will be weighted such that the second exam will be worth more than the first exam, the third exam will be worth more than the second exam, and the fourth exam will be worth more than the third exam. Your weighted score will be calculated by multiplying your raw score by a weight factor as shown in the example below:

Exam | Raw Score (out of 20) | Weight Factor | Weighted Score (Raw Score x Weight Factor) | 1 | 14 | 1 | 14 | 2 | 16 | 1.5 | 24 | 3 | 16 | 2 | 32 | 4 | 18 | 2.5 | 45 | | | | SUM=115 |

To calculate your overall exam score, the sum of your weighted scores will be divided by the sum of all possible points (14). The result will then be multiplied by 70. Using the data from the table above, the overall exam score would be calculated as follows:

(115 x 70) / 140 = 57.5

Participation—10%

Class participation will be assessed on the basis of attitude/behavior, ability to focus on assigned tasks, contributions in class, and punctuality in arriving to class and returning from breaks.

Final Grade

Your final grade will be the sum of your overall quiz score, overall exam score, and class participation. Following the examples above, the final grade would be calculated as follows (assume a score of 8 for participation):

16.7 + 57.5 + 8 = 82.2

M. Course Policies

a. Attendance: Student attendance is mandatory. Students are not authorized to miss class time. Failure to be present during all class hours is grounds for removal. In appropriate situations, the instructor may, at his/her discretion, grant student absences provided that the student has requested and obtained approval prior to the absence. In no circumstance will a student be permitted to miss more than 8 hours of class.

b. Student Responsibility: Students are responsible for ensuring that they are attaining the learning objectives. As such, students must communicate any problems or difficulties that they are encountering to the instructor.

c. Academic Freedom: Students have the privilege of debate with discretion on any subject related to curricula within the school forum.

d. Nonattribution: Students are to treat statements made in the school forum as privileged information not to be attributed to a specific individual when outside the school forum.

e. Make-ups and Extra Credit: There will be no opportunity for making up missed quizzes/exams nor will there be an opportunity for students to earn extra credit.

f. Student Issues/Concerns: DAU encourages students who have an issue or concern with the learning environment to discuss it with the instructor. Students who believe their issue is not resolved satisfactorily may go to the department chair/site manager or Regional Associate Dean for Academics.

N. Course Sequence/Time Schedule: Other than the last day of class, CON 090 will begin each day promptly at 8:00 AM and generally end at 5:00 PM. There will be at least a one-hour lunch break. The last 60 minutes or so of each day, approximately 4:00 to 5:00 PM, are usually set aside for individual classroom study. Instructors may, at their discretion, permit students to leave the classroom and study on their own. A typical course schedule is provided below. (Note: Class schedule will be adjusted if a holiday occurs during the class dates, including the possibility of a Monday start date.)

M | T | W | Th | F | | DAU Classroom BriefIntroduction to CON 090Using the FAR & DFARS | QUIZ #1Using the FAR & DFARS (continued) | QUIZ #2Using the FAR & DFARS (continued) | EXAM #1 | | | | | BEGIN MODULE 2Acquisition Planning Process | QUIZ #3SourcesCompetition | QUIZ #4Contracting MethodsContract Types | QUIZ #5Special Contracting MethodsDescribing Agency NeedsPublicizing Contract Actions | QUIZ #6Socioeconomic Programs | EXAM #2 | | | | | BEGIN MODULE 3Contract Formation Principles | QUIZ #7Solicitation of Offers | QUIZ #8Solicitation of Offers (Cont.)Bid Evaluation | QUIZ #9Proposal Evaluation & Exchanges with OfferorsContract Award | QUIZ #10ProtestsSimplified Acquisition Procedures | EXAM #3 | | | | | BEGIN MODULE 4Contract Administration Basics | QUIZ #11Contract Performance ManagementQuality Assurance | QUIZ #12Contract ModificationsAdministration of Selected Terms & Conditions | QUIZ #13Payment/Cost Allowability Disputes & Appeals | QUIZ #14TerminationsCloseoutReview | EXAM #4Graduation | | | | | |

Course Design & Instructional Method– How CON 090 “Works” CON 090 is a very rigorous course, and it will require a considerable amount of focused effort and discipline on your part to be successful. CON 090 will most likely be quite different than any other class you have taken before, and it is also very likely that nothing has prepared you for reading, interpreting, and applying the FAR and DFARS. Therefore to be successful, you must also develop the habit of looking things up before answering any questions and must not rely on your intuition and conventional wisdom. This will take some getting used to. The following description of the design of CON 090—How CON 090 “works” is provided in order to assist with this adjustment. Application of Bloom’s Taxonomy and the Thayer Method to CON 090

Like most Defense Acquisition University courses, CON 090 was designed in accordance with Bloom’s Taxonomy of the Cognitive Domain. The cognitive domain developed by Dr. Benjamin Bloom and his associates is the most widely accepted in the development of competency/performance-based, criterion-referenced instructional designs. Bloom’s Taxonomy is a classification scheme that breaks down cognitive processes into six steps/levels: Knowledge, Comprehension, Application, Analysis, Synthesis, and Evaluation. Bloom’s Taxonomy is considered a learning hierarchy because the next higher level subsumes each level of learning. That is, it is assumed that in order to function at the Application level, a learner must also be able to function at all levels below Application (Comprehension and Knowledge). Bloom’s cognitive learning hierarchy is analogous to climbing a set of stairs. A learner must acquire factual knowledge before he or she can understand theory. She or he must comprehend theory before they can apply it, and so on up the hierarchy.

The method of instruction used in CON 090 is based on the Thayer method, named after Sylvanus Thayer. Thayer was the superintendent of the United States Military Academy (West Point) from 1817 to 1833 and has become known as the “Father of the Military Academy.” The Thayer method is unique in that it requires students to teach themselves the material prior to class (as homework) and the instructor’s role is to explain the material in class if there are any questions. Further, students are held accountable for their learning by being assessed on a daily basis. The Thayer method is still in use today at West Point. Most CON 090 students have not been exposed to this method of instruction and, as such, a period of adjustment is expected.
In CON 090, you will be assigned homework each night that will assist you in obtaining the requisite Knowledge (Bloom’s Level 1) for the following day’s activities. The homework will not be collected or graded. However, a 10-point closed-book quiz will be given each morning of CON 090 (except the first day and test days) that will assess your Knowledge of information contained in the homework assignment. In other words, the quiz will be given each day prior to the application of the material in class. The quiz will be written at the Knowledge level—you will have to recall information from the prior night’s homework assignment, but you will not be required to explain any of the concepts. As an example of this process:

(1) A homework question might be: “Contract types are grouped into what two broad categories?” (2) You will research the FAR and DFARS and find the answer at FAR 16.101(b), which states:
“The contract types are grouped into two broad categories: fixed-price contracts (see Subpart 16.2) and cost-reimbursement contracts (see Subpart 16.3).” (3) The next morning, the following may be found on the quiz: “List the two categories of contract types.”

After the quiz, your instructor will lead a discussion that will help you Comprehend (Bloom’s Level 2) the information that you found in your homework assignment. The instructor will explain (or ask students to explain) some of the key concepts regarding that particular topic. For example, the instructor may explain (or ask a student to explain) the differences between fixed-price and cost-reimbursement contracts. After the discussion, you will be spending most of the remainder of the lesson engaged in group exercises and problems where you will be given an opportunity to Apply (Bloom’s Level 3) what you have learned to real-world scenarios. This is where the majority of your learning will take place.

Student Workbook

Your student workbook is not meant to be a textbook. Your primary reference material in CON 090 will be the FAR, DFARS, and DFARS PGI. The typical lesson in the student workbook will contain a brief discussion of a specific topic and then contain a number of questions that will guide you to the key information in the regulations dealing with that topic. This information will be critical to your success in doing the exercises and problems and class.

In-Class Exercises and Problems

With few exceptions, the in-class exercises and problems were deliberately developed to have one correct answer (which is not always the case outside of the classroom). This answer is based on either factual information that can be found in the regulations or on an authoritative interpretation of the regulations found in decisions of the Government Accountability Office (GAO), the Armed Services Board of Contract Appeals (ASBCA), and the federal courts. The correct answer is rarely obvious and you shouldn’t get discouraged if you cannot find it or figure it out. Students will often disagree. Before revealing the correct answer, the instructor will facilitate a discussion to let students explain their positions to each other. You should not get anxious to know the right answer during such a discussion—you will eventually find out the correct answer. Instead, take advantage of the opportunity to rethink your answer or persuade another student that your answer is correct. There is no point in being correct if you cannot convince others that you are correct. Once the correct answer is revealed, it is critical that you understand why the given answer is the correct choice. The purpose of these exercises is for you to practice locating, interpreting, and applying information in the FAR, DFARS, and DFARS PGI to real world scenarios.

Module Exams

There will be four (4) open-book exams (one per module). The first exam will focus exclusively on the “critical skills” of 1) finding information in the regulations, 2) providing citations, 3) determining applicability of information in the regulations, and 4) interpreting the regulations. Each subsequent exam will assess both “critical skills” and topical material covered during the module. The FAR Challenge

As stated in your pre-course assignment, you will be required to memorize the FAR parts and their exact titles on an incremental basis throughout the four weeks of CON 090. You will be tested on being able to name the exact FAR title if given the FAR part number or to name the FAR part number if given the title. By the end of the course, you will be able to name the all FAR parts by number and title. Although the value of this exercise may not be immediately evident, most students have found that the memorization of FAR parts significantly increases their ability to find information in the regulations.

Students may exempt themselves from this requirement at any time during the course if they can recall all 53 part numbers and their exact titles from memory in the presence of the instructor (in an order and format chosen by the instructor). Such students will get full credit on those sections of the quizzes that require recall of the FAR part numbers and their titles for the remainder of the course. This is referred to as “The FAR Challenge.” You may attempt the FAR Challenge once per day, at a time chosen by the instructor.

As an added incentive, students who pass the FAR Challenge on the first day of the course will receive a bonus. Ten points will be added to the sum of the student’s quiz scores when calculating the overall quiz score (see section L of course syllabus above).

Final Word

If you put in the required effort, as difficult as that may turn out to be, we believe that you will be able to pass this course. Regardless of the final result, you will return to your office with knowledge and skills that will likely surpass colleagues who have not taken this course. In the short time that this course has been offered, we have already begun to hear from former students who are being recognized by their organizations for their facility with the FAR and DFARS. We hope to hear the same from you. Good luck.

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Module 1 – Using the FAR and DFARS

Module 1 introduces the FAR and how to navigate and use acquisition regulations. This module begins by answering the who, what, when, where, why, and how of the FAR. The remainder of the module will provide hands-on training on how to use the FAR and DFARS. Module 1 Schedule

Day | 1 | 2 | 3 | 4 | | DAU Classroom BriefIntroduction to CON 090Using the FAR & DFARS | QUIZ #1Using the FAR & DFARS (continued) | QUIZ #2Using the FAR & DFARS (continued) | EXAM #1 | | | | | BEGIN MODULE 2Acquisition Planning Process |

Module 1 Homework

Day | Homework Assignment | 1 | * Memorize titles and part numbers to FAR parts 1-4 * Read “FAR Basics”, “Organization and Arrangement of the FAR”, and “DFARS Basics” | 2 | * Memorize titles and part numbers to FAR parts 1-12 * Read “Deviations from the FAR and DFARS”, “Reading the FAR” and “Interpreting the FAR” | 3 | * Study for exam |

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Module 1 – Using the FAR & DFARS

Introduction

The purpose of this module is to develop the skills necessary to locate, cite, and interpret the policies and procedures in the FAR and DFARS that are applicable to DoD acquisitions. You will need to develop these skills to be successful during Modules 2 through 4 of the course.

Learning Objectives

TLO: Given access to online resources, locate, cite, interpret, and determine the applicability of policies and procedures in the FAR, DFARS, DFARS PGI, and DoD class deviations.

To achieve this learning objective, students must demonstrate the ability to:

* Identify basic background information pertaining to the FAR. * Identify the organization and arrangement of the FAR.

* Find information contained in the FAR/DFARS/DFARS PGI/class deviations.

* Provide a citation to information in the FAR/DFARS/DFARS PGI/class deviations to support a position.

* Memorize the titles and corresponding part numbers for FAR parts 1-53.

* Differentiate between implemental and supplemental numbering in the DFARS.

* Identify the general policy for authorizing deviations from the FAR and DFARS.

* Given a contracting scenario, determine which acquisition rules are applicable to DoD acquisitions. * Identify the conventions for interpreting the FAR.

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FAR Basics

1. What is a regulation?

A regulation is a general statement issued by an agency, board, or commission that has the force and effect of law. Congress often grants agencies the authority to issue regulations. Sometimes Congress requires agencies to issue a regulation; sometimes Congress grants agencies the discretion to do so. Many laws passed by Congress give Federal agencies some flexibility in deciding how best to implement those laws. Federal regulations specify the details and requirements necessary to implement and to enforce legislation enacted by Congress.

Federal regulations are created through a process known as "rulemaking," which is generally governed by the Administrative Procedure Act (APA) (5 U.S.C. Chapter 5). Click here for a graphical illustration of this process. Once an agency decides that a regulatory action is necessary or appropriate, it develops and typically publishes a proposed rule in the Federal Register, soliciting comments from the public on the regulatory proposal. After the agency considers this public feedback and makes changes where appropriate, it then publishes a final rule in the Federal Register with a specific date upon which the rule becomes effective and enforceable. In issuing a final rule, the agency must describe and respond to the public comments it received. An agency may also issue an interim rule, which is like a final rule in that it is effective and enforceable, but it solicits public comments and may be modified before it becomes final.

2. What is the Federal Register?
Published by the Office of the Federal Register, National Archives and Records Administration (NARA), the Federal Register is the official daily publication for rules, proposed rules, and notices of Federal agencies and organizations, as well as executive orders and other presidential documents.

3. What happens to rules at the end of the rule-making process?

General and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government become codified in the Code of Federal Regulations (CFR). The CFR is divided into 50 titles that represent broad areas subject to Federal regulation (see table that follows).

4. What is acquisition?

Acquisition is defined in the Federal Acquisition Regulation (FAR) as:

[T]he 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 is one of several types of Government activities that involve the use of contracts. The Government also enters into contracts when purchasing real property; selling property; entering into grants, cooperative agreements, cooperative research and development agreements (CRADAs), and “other transactions; and employing personnel. However, these activities are not acquisition. Acquisition is accomplished through the use of procurement contracts. Federal law requires the use of procurement contracts as follows:
An executive agency shall use a procurement contract as the legal instrument reflecting a relationship between the United States Government and a State, a local government, or other recipient when —
(1) the principal purpose of the instrument is to acquire (by purchase, lease, or barter) property or services for the direct benefit or use of the United States Government; or
(2) the agency decides in a specific instance that the use of a procurement contract is appropriate.
[31 U.S.C. §6303]

5. What types of things does the Government “acquire” through the use of procurement contracts?

Procurement contracts are used by the Federal Government to acquire a variety of supplies and services. The major categories of acquisition are (Federal Procurement Data System (FPDS) figures):

1. Supplies and equipment ($191 billion FY07)
2. Services ($180 billion FY07)
3. Construction ($32 billion FY07)
4. Research and development ($55 billion FY07)

The category of “supplies and equipment” is broad. It spans from such things as pencils and paper to space shuttles and aircraft carriers. Similarly, the category of services ranges from such things as housekeeping to complex engineering services. Each category comes with its own specialized rules pertaining to funding, contract types, required contract clauses, etc.

The table below shows the top five products or services purchased by the Department of Defense in fiscal year 2010:

Product or Service | Amount Purchased (in billions) | Aircraft, Fixed Wing | $15.2 | Engineering and Technical Services | $12.7 | Logistics Support Services | $11.7 | Liquid Propellants and Fuels, Petroleum Base | $11.2 | General Health Care Services | $10.4 |

6. What Government agencies conduct acquisitions? Most all Government agencies conduct acquisitions. The top 10 agencies in terms of contract spending are listed below.

Agency | Contract Spending, in billions (FY 10) | % of Total Federal Contract Spending ($537.8B) | Department of Defense | $367.0 | 68.2 | Department of Energy | $25.7 | 4.8 | Department of Health and Human Services | $19.1 | 3.6 | General Services Administration | $18.1 | 3.4 | Department of Veterans Affairs | $16.1 | 3.0 | National Aeronautics and Space Administration | $16.1 | 3.0 | Department of Homeland Security | $13.6 | 2.5 | Department of State | $8.1 | 1.5 | United States Agency for International Development | $6.7 | 1.2 | Department of Justice | $6.5 | 1.2 |

As shown above, the Department of Defense spends more on acquisition than the rest of the Federal government combined. A consequence of this is that DoD acquisitions are subject to greater regulation than those of civilian agencies.

7. What is the Federal Acquisition Regulation (FAR)?

The FAR is basically a rule book that most agencies of the Federal government have to follow when acquiring goods and services through the use of procurement contracts. It places limits on the exercise of an agency’s authority to purchase goods and services using funds appropriated by Congress. For example, the FAR generally requires agencies to obtain “full and open competition” when soliciting offers and awarding contracts. Although it does contain some guidance, the FAR is not an instructional guide for purchasing goods and services. As such, one should not consult the FAR for guidance on the best way to purchase goods and services—rather one should consult the FAR to determine what courses of action would be permissible. Compliance with the FAR generally ensures that an agency’s actions are legal, but it does not ensure that an agency will get a good business deal—skill and judgment of competent acquisition professionals are required for that.

The FAR is located within Title 48 of the CFR, entitled “Federal Acquisition Regulations System.”
8. What is the Federal Acquisition Regulations System?
The Federal Acquisition Regulations System (FAR System) is a title within the CFR (Title 48). The FAR System was established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The FAR System consists of the FAR, which is the primary document, and agency acquisition regulations that implement or supplement the FAR. The FAR System does not include internal agency guidance.

The FAR is issued as Chapter 1 of Title 48, CFR. Subsequent chapters are reserved for agency acquisition regulations that implement or supplement the FAR (more on implementation and supplementation later). The table below shows some of the chapters within Title 48 of the CFR.

Chapter | Parts | Name of Regulation | 1 | 1-99 | Federal Acquisition Regulation (FAR) | 2 | 200-299 | Defense FAR Supplement (DFARS) | 3 | 300-399 | Health and Human Services Acquisition Regulation (HHSAR) | 4 | 400-499 | Agriculture Acquisition Regulation (AGAR) | 5 | 500-599 | General Services Acquisition Regulation (GSAR) | 6 | 600-699 | Department of State Acquisition Regulation (DOSAR) | … | … | … | 51 | 5100-5199 | Army FAR Supplement (AFARS) | 52 | 5200-5299 | Navy-Marine Corps Acquisition Regulation Supplement (NMCARS) | 53 | 5300-5399 | Air Force FAR Supplement (AFFARS) | 54 | 5452 | Defense Logistics Acquisition Directive (DLAD) | Agencies subject to the FAR System must comply with the FAR and their agency supplement when conducting acquisitions. For example, acquisitions conducted by a DoD agency must comply with the FAR (Chapter 1) and the DFARS (Chapter 2). Acquisitions conducted by the Army must comply with the FAR (Chapter 1), the DFARS (Chapter 2), and the AFARS (Chapter 51).
9. Who came up with the FAR System?
In 1974, Congress passed the Office of Federal Procurement Policy Act of 1974 (OFPP Act). The OFPP Act established an Office of Federal Procurement Policy (OFPP) that would be part of the Office of Management and Budget (OMB) and would be headed by a presidentially-appointed administrator. One of the responsibilities assigned to the OFPP administrator was the development of a system of uniform procurement regulations, coordinated on a government-wide basis, under the direction of OFPP. On July 10, 1980, OFPP established the FAR System, with regulations to be issued jointly by GSA, DoD, and NASA pursuant to their own statutory authorities. All future regulations would be uniform and agencies were prohibited from issuing any regulations inconsistent with the OFPP Act or OFPP policy directives. After a lengthy rule-making process, the FAR was published in the Federal Register on September 19, 1983 with an effective date of April 1, 1984.
10. Who is responsible for maintaining the FAR?
An executive council, referred to as the FAR Council, comprised of the Administrator of OFPP, the Secretary of Defense, and the Administrators of the General Services Administration (GSA) and the National Aeronautics and Space Administration (NASA) is responsible for maintaining the FAR. This responsibility is carried out through the coordinated action of two councils, the Defense Acquisition Regulations Council (DAR Council) and the Civilian Agency Acquisition Council (CAA Council). Membership of the two councils is shown in the table below. Responsibility for processing revisions to the FAR is apportioned by the two councils so that each council has cognizance over specified parts or subparts. The FAR Council provides overall strategy and direction to the DAR Council and CAA Council, and also has the authority to resolve disagreements between the two councils. The FAR Councils | DAR Council Representatives | CAA Council Representatives | DAR Council Director (DPAP Deputy (DARS)) | General Services Administration (Chair) | DAR Council Deputy Director (DPAP) | Department of Agriculture | Department of the Army (Policy) | Department of Commerce | Department of the Army (Legal) | Department of Energy | Department of the Navy (Policy) | Department of Health and Human Services | Department of the Navy (Legal) | Department of Homeland Security | Department of the Air Force (Policy) | Department of Interior | Department of the Air Force (Legal) | Department of Labor | Defense Contract Management Agency (Policy) | Department of State | Defense Contract Management Agency (Legal) | Department of Transportation | Defense Logistics Agency (Policy) | Department of Treasury | Defense Logistics Agency (Legal) | Environmental Protection Agency | National Aeronautics and Space Administration (Policy) | Social Security Administration | National Aeronautics and Space Administration (Legal) | Small Business Administration | | Department of Veterans Affairs |
11. Why do contracting officers have to comply with the FAR? FAR 1.602-1 discusses the authority of the contracting officer as follows:
(a) 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 (see 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.
(b) 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.
Contracting officers do not have unlimited discretion in how to conduct acquisitions—their actions must comply with the FAR or they are unauthorized. Contracting officers acting outside the scope of their authority can be held personally liable for their actions.
12. What do I do if I am a contract specialist and my contracting officer is not complying with the regulations? It’s quite common for contract specialists to discover, by training or independent research, that acquisitions they are working on may not be fully compliant with the regulations. Given the sheer volume of the applicable regulations and how often they are changed, it is understandable that contracting officers fall out of compliance due to a lack of knowledge. If this is the case, it is your duty as a contract specialist to bring this to the attention of your contracting officer. This will give the contracting officer the opportunity to correct the noncompliance. A more difficult situation occurs when the contracting officer takes no action to correct the noncompliance or you find that the noncompliance is by design. This presents an ethical dilemma. Is it ethical to process acquisitions that you know are noncompliant with the regulations as long as you are not signing anything? While some may find comfort in believing the answer to this question is “yes”, being a party to the evasion of legal regulations is contrary to the Standards of Conduct for the Executive Branch. In fact, the Standards of Conduct state that “Employees shall disclose waste, fraud, abuse, and corruption to appropriate authorities.” You primarily have two options for reporting intentional violations of the regulations. The first is reporting the noncompliance up the contracting officer’s chain of command. If the contracting officer is abusing the authority given to him, then those who granted that authority should be informed so that the appropriate remedial action can be taken. The second option is to report the noncompliance to the DoD Office of the Inspector General (DoD IG). The DoD IG has a “Defense Hotline” to report fraud, waste, abuse, or mismanagement regarding programs and personnel under the purview of the DoD. No matter which option you choose to report a violation, you will be protected under Whistleblower statutes and you have the option to remain anonymous. If you choose to remain anonymous, then you should provide enough information in your complaint so that an investigation, if necessary, can be effectively conducted.

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Organization and Arrangement of the FAR

1. How is the information in the FAR arranged?
Recall that the FAR is a chapter within Title 48 of the CFR. As such, the first division of the FAR is the subchapter. There are eight subchapters in the FAR that are identified using the letters A-H. The next division of the FAR is the part. There are 53 parts in the FAR numbered sequentially, each of which covers a separate aspect of acquisition. The structure of the FAR down to the part level is shown below and on the following pages.

Part # | Title of Part | Subchapter A—General | 1 | Federal Acquisition Regulations System | 2 | Definitions of Words and Terms | 3 | Improper Business Practices and Personal Conflicts of Interest | 4 | Administrative Matters | Subchapter B—Competition and Acquisition Planning | 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 | Subchapter C—Contracting Methods and Contract Types | 13 | Simplified Acquisition Procedures | 14 | Sealed Bidding | 15 | Contracting by Negotiation | 16 | Types of Contracts | 17 | Special Contracting Methods | 18 | Emergency Acquisitions | Subchapter D—Socioeconomic Programs | 19 | Small Business Programs | 20 | Reserved | 21 | Reserved | 22 | Application of Labor Laws to Government Acquisitions | 23 | Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace | 24 | Protection of Privacy and Freedom of Information | 25 | Foreign Acquisition | 26 | Other Socioeconomic Programs | Subchapter E—General Contracting Requirements | 27 | Patents, Data, and Copyrights | 28 | Bonds and Insurance | 29 | Taxes | 30 | Cost Accounting Standards Administration | 31 | Contract Cost Principles and Procedures | 32 | Contract Financing | 33 | Protests, Disputes, and Appeals | Subchapter F—Special Categories of Contracting | 34 | Major System Acquisition | 35 | Research and Development Contracting | 36 | Construction and Architect-Engineer Contracts | 37 | Service Contracting | 38 | Federal Supply Schedule Contracting | 39 | Acquisition of Information Technology | 40 | Reserved | 41 | Acquisition of Utility Services | Subchapter G—Contract Management | 42 | Contract Administration and Audit Services | 43 | Contract Modifications | 44 | Subcontracting Policies and Procedures | 45 | Government Property | 46 | Quality Assurance | 47 | Transportation | 48 | Value Engineering | 49 | Termination of Contracts | 50 | Extraordinary Contractual Actions and the SAFETY Act | 51 | Use of Government Sources by Contractors | Subchapter H—Clauses and Forms | 52 | Solicitation Provisions and Contract Clauses | 53 | Forms |

Most parts are divided into subparts. For example, FAR part 1 is divided as follows:
Part 1—Federal Acquisition Regulations System
Subpart 1.1 Purpose, Authority, Issuance
Subpart 1.2 Administration
Subpart 1.3 Agency Acquisition Regulations
Subpart 1.4 Deviations from the FAR
Subpart 1.5 Agency and Public Participation
Subpart 1.6 Career Development, Contracting Authority, and Responsibilities
Subpart 1.7 Determinations and Findings

All parts and subparts contain sections. Some sections are further divided into subsections. For example, FAR subpart 1.1 is divided as follows:

Subpart 1.1—Purpose, Authority, Issuance
1.101 Purpose.
1.102 Statement of guiding principles for the Federal Acquisition System.
1.102-1 Discussion.
1.102-2 Performance standards.
1.102-3 Acquisition Team.
1.102-4 Role of the Acquisition Team.
1.103 Authority.
1.104 Applicability.
1.105 Issuance.
1.105-1 Publication and code arrangement.
1.105-2 Arrangement of regulations.
1.105-3 Copies.
1.106 OMB approval under the Paperwork Reduction Act.
1.107 Certifications.
1.108 FAR conventions.
1.109 Statutory acquisition–related dollar thresholds—adjustment for inflation.

In this example, FAR subpart 1.1 is divided into nine sections numbered 1.101 through 1.109. Sections 1.102 and 1.105 are further subdivided into subsections—1.102-1 through -4 and 1.105-1 through -3.

2. How does the FAR numbering system work?
The FAR numbering system permits the discrete identification of every FAR paragraph. The digits to the left of the decimal point represent the part number. The numbers to the right of the decimal point and to the left of the dash represent, in order, the subpart (one or two digits), and the section (two digits). The number to the right of the dash represents the subsection. The following example illustrates the make-up of a FAR number citation (note that subchapters are not used with citations):

25.108-2

In this example, 25 represents the part, 1 represents the subpart, 08 represents the section, and 2 represents the subsection. Let’s look at another example:

19.1202-3

In this example, 19 represents the part, 12 represents the subpart, 02 represents the section, and 3 represents the subsection. Notice that there are four digits to the right of the decimal and to the left of the dash in this example. Since the section is always represented by two digits, the presence of four digits to the right of the decimal point means that, in this citation, the subpart is represented by two digits (a subpart is represented by one or two digits).

3. Is the FAR subdivided below the section or subsection level?
Yes. Subdivisions may be used at the section and subsection level to identify individual paragraphs. Subdivisions below the section or subsection level consist of parenthetical alpha numerics using the following sequence:
(a)(1)(i)(A)(1)(i)
Note that the last two parenthetical alpha numerics are italicized.

4. How do I reference something in the FAR?
The answer depends on what you want to reference—a part, subpart, section, subsection, or paragraph. See the table below.

If you want to reference a— | Using FAR 9.106-4(d) as an example, then you would write the citation— | Part | “FAR part 9” | Subpart | “FAR subpart 9.1” | Section | “FAR 9.106” | Subsection | “FAR 9.106-4” | Paragraph | “FAR 9.106-4(d)” |

Notice that when citing a part or subpart, you write the words “part” and “subpart” in the citation. Within the text of the FAR, citations to other information in the FAR do not include “FAR” at the beginning to avoid redundancy (e.g., references to FAR part 9 within the FAR would be written “part 9.”)

5. How general or specific do I need to be when referencing information in the FAR?
FAR 1.105-2(c)(3) describes how to correctly write a citation to a part, subpart, section, subsection, and paragraph contained in the FAR. However, the FAR does not contain guidance on the appropriate level of specificity that a citation should contain. The appropriate level of specificity is dependent on the statement that is being supported by the citation. For example, assume that you wanted to provide a citation to support the following statement: “The Standard Form 1442 and the Optional Form 1419 are used in contracting for construction.”

The citation that you provide must be specific enough to lead the reader directly to the information in the regulations that supports that statement, but not so specific that it does not fully support the statement. The relevant information to support the original statement in the regulations is shown below:
Subpart 36.7—Standard and Optional Forms for Contracting for Construction, Architect-Engineer Services, and Dismantling, Demolition, or Removal of Improvements
36.700 Scope of subpart.
This subpart sets forth requirements for the use of standard and optional forms, prescribed in Part 53, for contracting for construction, architect-engineer services, or dismantling, demolition, or removal of improvements. These standard and optional forms are illustrated in Part 53.

36.701 Standard and optional forms for use in contracting for construction or dismantling, demolition, or removal of improvements.
(a) Standard Form 1442, Solicitation, Offer, and Award (Construction, Alteration, or Repair), shall be used to solicit and submit offers, and award construction or dismantling, demolition, or removal of improvements contracts expected to exceed the simplified acquisition thresholds, and may be used for contracts at or below the simplified acquisition threshold. In all sealed bid solicitations, or when the Government otherwise requires a noncancellable offer acceptance period, the contracting officer shall insert in the blank provided in Block 13D the number of calendar days that the offer must be available for acceptance after the date offers are due.
(b) Optional Form 347, Order for Supplies or Services, may be used for construction or dismantling, demolition, or removal of improvements contracts that are at or below the simplified acquisition threshold; provided, that the contracting officer includes the clauses required (see Subpart 36.5) in the simplified acquisitions (see Part 13).
(c) Contracting officers may use Optional Form 1419, Abstract of Offers—Construction, and Optional Form 1419A, Abstract of Offers—Construction, Continuation Sheet, or the automated equivalent, to record offers submitted in response to a sealed bid solicitation (see 14.403) and may also use it to record offers submitted in response to negotiated solicitations.
36.702 Forms for use in contracting for architect-engineer services.
(a) Contracting officers must use Standard Form 252, Architect-Engineer Contract, to award fixed-price contracts for architect-engineer services when the services will be performed in the United States or its outlying areas.
(b) The SF 330, Architect-Engineer Qualifications, shall be used to evaluate firms before awarding a contract for architect-engineer services:
(1) Use the SF 330, Part I—Contract-Specific Qualifications, to obtain information from an architect-engineer firm about its qualifications for a specific contract when the contract amount is expected to exceed the simplified acquisition threshold. Part I may be used when the contract amount is expected to be at or below the simplified acquisition threshold, if the contracting officer determines that its use is appropriate.
(2) Use the SF 330, Part II—General Qualifications, to obtain information from an architect-engineer firm about its general professional qualifications.

If you supported your original statement by citing “FAR part 36”, the reader would have to do some considerable digging to find support for your statement. If you cited “FAR subpart 36.7”, you bring the reader closer to the supporting information, but you can still be more specific. The entire subpart covers a number of forms for construction, architect-engineering services, and dismantling, demolition, or removal of improvements, but your citation need only provide support for the use of two such forms that are used for construction. One section, FAR 36.701 contains two paragraphs that support your statement—paragraphs (a) and (c). Citing either “FAR 36.701(a)” or “FAR 36.701(c)” would be too specific, because each paragraph supports only part of your original statement. In this case, the common convention is to cite the entire section as support—“FAR 36.701”—not “FAR 36.701(a) and (c).”

6. How do I find information in the FAR?

There are a number of ways to find information in the FAR. You can use the search engines available at the FAR Home Page (www.acquisition.gov/far) and at the FARSite (http://farsite.hill.af.mil). Using a commercial search engine such as Google can also be an effective way to search for something in the FAR or DFARS (beware that your results using Google will show pages that were visited the most, which may or may not be the most updated). Another technique is to download the entire FAR in portable document format (pdf) and search for words and terms within the document. However, the usefulness of these techniques is limited to your ability to choose good key words and terms, which can be difficult. Lastly, there is an official FAR Index available online (www.acquisition.gov/far) that contains a list of key words and terms used in the FAR and a reference to where in the FAR those words and terms are located. However, as of this writing, the FAR Index has not been updated in over four years. As such, it contains some outdated information.

Perhaps the most efficient way to find information in the FAR is to generally know what information is in the FAR and where it is located. For example, assume you were to ask someone who was skilled at using the FAR “What happens if the Government lets a contractor use some of its equipment and the contractor breaks it?” The person may not know the answer off the top of their head, but they would know that there is a part within the FAR that is dedicated to the topic of Government property (FAR part 45). They would then review the table of contents for FAR part 45 to narrow down their search to one or two subparts or sections. This process would probably take less time and effort than trying to come up with the right key words and using an index or a search engine. You can get to the point where you generally know what is in the FAR and where it is located through years of experience using the FAR. Or, you could fast-forward this process by deliberately memorizing the titles of the FAR parts and their corresponding numbers. Once you have the FAR parts memorized, you should try to find information in the FAR without the aid of an index or search engine. Narrow down the information that you are looking for to one or two parts and begin searching through tables of contents. Once you have acquired this skill, you will no longer have a need for an index or search engine.

FAR Research

Answer each question below by citing the exact reference in the FAR where the information can be found. Depending on how specific the question is worded, the correct citation may be to a part, subpart, section, subsection, paragraph, or subparagraph. The citation you provide must comply with the format requirements at FAR 1.105-2(c) and take the reader directly to the information requested. Some questions are worded in a way that would be commonly heard in an office environment—not using the same words and terms you might encounter in the FAR. Do not cite anything in FAR subpart 52.2 in your answer.

1. Where can one find prohibitions pertaining to unsolicited proposals?

2. Where can one find information pertaining to extraordinary contractual actions and the SAFETY Act?

3. Where can one find the policies and procedures for using liquidated damages clauses in contracts?

4. Where can one find the authorities for federal compliance with Right-to-Know laws and pollution prevention requirements?

5. Where are the policy and procedures that are unique to service contracts?

6. Where does it say that if part of a proposed contract is set aside for small businesses and, subsequently, no award is made on that part, then the set-aside is automatically dissolved?

7. Where does it say that, under certain conditions, you can treat an acquisition of anything as an acquisition of commercial items, even if the acquisition is not for a commercial item?

8. Where does it state the different ways that the contracting officer can state the period of performance?

9. Where does it say that the FAR part on Government property doesn’t apply to intellectual property?

10. Where does it say that, in the case of GOCOs, the indirect cost allocation method should take into account the fact that the plant is operating pretty much independently of the corporate headquarters?

11. Where does it say that you have to use FAR part 12 procedures in conjunction with parts 13, 14, or 15 when you’re buying commercial items?

12. Where does it say that contractors generally aren’t liable for damage to Government property caused by defective items delivered and accepted under the contract?

13. Where does it say that the applicable cost principles depend on the type of contractor?

14. Where does it say what a contracting officer has to do to let a contractor order from a Government supply source?

DFARS Basics

1. What is the Defense Federal Acquisition Regulation Supplement (DFARS)?

DoD implementation and supplementation of the FAR is issued in the DFARS under authorization and subject to the authority, direction, and control of the Secretary of Defense. The DFARS contains— (i) Requirements of law; (ii) DoD-wide policies; (iii) Delegations of FAR authorities; (iv) Deviations from FAR requirements; and (v) Policies/procedures that have a significant effect beyond the internal operating procedures of DoD or a significant cost or administrative impact on contractors or offerors. The DFARS is located in Chapter 2 of Title 48 of the CFR. 2. What are Implementation and Supplementation?

The DFARS implements and supplements the FAR. The DFARS implements the FAR when it adds more specific information to information stated in the FAR. For example, FAR 19.505(b) states the following:

The SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402(a)) may appeal the contracting officer’s rejection to the head of the contracting activity (or designee) within 2 working days after receiving the notice. The head of the contracting activity (or designee) shall render a decision in writing, and provide it to the SBA representative within 7 working days. Pending issuance of a decision to the SBA representative, the contracting officer shall suspend action on the acquisition.

This rule applies to all executive agencies subject to the FAR. For DoD, this rule is implemented at DFARS 219.505(b) as follows:

The designee shall be at a level no lower than chief of the contracting office.

In this case, DoD has placed a limit on how far down this particular delegation can go. When reading the FAR, a DoD contracting officer must always check the DFARS to see how a requirement in the FAR is to be implemented in DoD. This is especially critical because a rule in the FAR may not apply to DoD, or DoD may change the way the rule is applied. For example, let’s say you wanted to know what the customary progress payment rate was for small business concerns. FAR 32.501-1(a) states:

The customary progress payment rate is 80 percent, applicable to the total costs of performing the contract. The customary rate for contracts with small business concerns is 85 percent.

However, if you concluded that the customary progress payment rate for small business concerns was 85 percent you would be wrong. FAR 32.501-1(a) is implemented at DFARS 232.501-1(a) as follows:

The customary progress payment rates for DoD contracts, including contracts that contain foreign military sales (FMS) requirements, are 80 percent for large business concerns, 90 percent for small business concerns, and 95 percent for small disadvantaged business concerns.

This phenomenon makes reading the regulations particularly tricky. The lesson is that whenever you read the FAR, you must make a habit of reading the DFARS to see how the FAR is to be implemented in DoD.

The DFARS supplements the FAR when it adds policies and procedures that are not covered in the FAR. For example, DFARS subpart 219.71, Pilot Mentor-Protégé Program, supplements FAR part 19, Small Business Programs. The purpose of the Program is to provide incentives for DoD contractors to assist protégé firms in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts. There is no coverage of this program in the FAR.

3. How do I know if the DFARS is implementing or supplementing the FAR? It depends on how the text in the DFARS is numbered. If it has supplemental numbering, then the text is supplemental. If it has implemental numbering, then it is either implemental or supplemental. DFARS 201.303(a)(ii) states the following policy: To the extent possible, all DFARS text (whether implemental or supplemental) is numbered as if it were implemental. Supplemental numbering is used only when the text cannot be integrated intelligibly with its FAR counterpart. 4. How is implemental and supplemental text numbered? The table below illustrates how implemental and supplemental text is numbered.

DFARS NUMBERING | FAR | Is Implemented As | Is Supplemented As | 19 | 219 | 219.70 | 19.5 | 219.5 | 219.570 | 19.501 | 219.501 | 219.501-70 | 19.501-1 | 219.501-1 | 219.501-1-70 | 19.501-1(a) | 219.501-1(a) | 219.501-1(a)(S-70) | 19.501-1(a)(1) | 219.501-1(a)(1) | 219.501-1(a)(1)(S-70) |

As shown in the second column, implemental numbering is the same as its FAR counterpart with the addition of a “2” in the beginning. The “2” denotes the chapter (recall that the DFARS is Chapter 2 of Title 48). Supplemental numbering is the same as its FAR counterpart, with the addition of a “2” at the beginning and a number of 70 and up or (S-70) and up at the end. Parts, subparts, sections, or subsections are supplemented by the addition of a number of 70 and up. Lower divisions are supplemented by the addition of a number of (S-70) and up.

5. Do subdivisions below the section or subsection level follow the same parenthetical alphanumeric sequence as the FAR?

Generally, yes. However, in situations where implemental text exceeds one paragraph, the subdivisions are numbered by skipping a unit in the FAR prescribed numbering sequence. For example, three paragraphs implementing FAR 19.501 would be numbered 219.501(1), (2), and (3) rather than (a), (b), and (c). Three paragraphs implementing FAR 19.501(a) would be numbered 219.501(a)(i), (ii), and (iii) rather than (a)(1), (2), and (3). Further subdivision of the paragraphs follows the prescribed numbering sequence, e.g., 219.501(1)(i)(A)(1)(i).

6. How do I reference text in the DFARS?

The DFARS doesn’t contain rules on how to write citations, but for the sake of consistency you should write citations similar to the way you would write a FAR citation, as illustrated below.

If you want to reference a— | Using DFARS 209.106-4(d) as an example, then you would write the citation— | Part | “DFARS part 209” | Subpart | “DFARS subpart 209.1” | Section | “DFARS 209.106” | Subsection | “DFARS 209.106-4” | Paragraph | “DFARS 209.106-4(d)” |

7. What is the DFARS Procedures, Guidance, and Information (PGI)?

The DFARS PGI is a companion resource to the DFARS that—

(1) Contains mandatory internal DoD procedures. The DFARS will direct compliance with mandatory procedures using imperative language such as “Follow the procedures at...” or similar directive language;

(2) Contains non-mandatory internal DoD procedures and guidance and supplemental information to be used at the discretion of the contracting officer. The DFARS will point to non-mandatory procedures, guidance, and information using permissive language such as “The contracting officer may use...” or “Additional information is available at...” or other similar language;

(3) Is numbered similarly to the DFARS, except that each PGI numerical designation is preceded by the letters “PGI”; and

(4) Is available electronically at http://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html.

The DFARS PGI is not part of the CFR.

8. How do I find information in the DFARS?

There is no official index for the DFARS. The official DFARS at the Director of Defense Procurement Web site does not have a particularly useful search engine. However, the FARSite (http://farsite.hill.af.mil) has a decent search engine that can simultaneously search the FAR and the DFARS. However, the FARSite is not official (although it is generally reliable). As stated earlier regarding searching the FAR, the best way to search is to generally know where to look.

9. Who is responsible for maintaining the DFARS and the DFARS PGI? The DAR Council is responsible for maintaining both.

FAR/DFARS Research Answer each question below and provide a citation to the exact reference in the FAR, DFARS, or DFARS PGI where the information supporting your answer can be found. The citation you provide must comply with the format requirements at FAR 1.105-2(c) and take the reader directly to the information supporting your answer. Assume that each question applies to a DoD acquisition. Do not cite anything in FAR subpart 52.2 or DFARS subpart 252.2.

1. When a request for extraordinary contractual relief is denied below the Secretarial level, what documents must be submitted to the appropriate office?

2. Can the contracting officer waive any general rule or procedure pertaining to organizational and consultant conflicts of interest?

3. How long does a contractor have to submit a corrective action plan after being notified that approval of its purchasing system has been withheld?

4. Should the source selection authority accept direction from a Foreign Military Sales customer on source selection decisions?

5. To whom must the contract administration office (CAO) send a copy of pertinent correspondence conducted between the CAO and the contractor?

6. How must the contracting officer consider any potentially unfair competitive advantage that may result from the contractor possessing Government property?

7. When should one use a DLA Form 1822?

8. Can a bidder submit a bid by facsimile?

9. Assuming all other conditions are met, can a contractor assign moneys due or to become due under a contract if the assignment is made to a trust company under the Assignment of Claims Act?

10. Where does it say that legislative lobbying costs are unallowable in contracts with educational institutions?

11. When determining a definitization schedule under a letter contract, at what point should the schedule provide for definitization?

12. When determining the reasonableness of cost under the Buy American Act, what percentage must be added to the low offer that is subject to the Buy American Act if the low domestic offer is from a small business concern?

13. Does a contracting officer have the authority to resolve claims arising under a contract subject to the Contract Disputes Act?

14. How do you identify attachments—by number or letter?

Deviations from the FAR and DFARS

1. What is a deviation?

A deviation is defined at FAR 1.401 as any one or a combination of the following:

(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.
(b) The omission of any solicitation provision or contract clause when its prescription requires its use.
(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of “modification” in 52.101(a) and definition of “alternate” in 2.101(a)).
(d) The use of a solicitation provision or contract clause prescribed by the FAR on a “substantially as follows” or “substantially the same as” basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.
(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.
(f) 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 1.301(a).

A DoD contracting officer does not have the authority to deviate from the FAR and DFARS, unless the deviation has been authorized in accordance with FAR subpart 1.4 and DFARS subpart 201.4. Deviations can be of two types—individual and class. Individual deviations affect one contract action and are usually requested and approved from the bottom up. That is, the request is initiated at the working level and must be approved by the agency head or his/her designee. Class deviations affect a class of acquisitions (e.g., all acquisitions in support of a contingency operation) and are typically initiated and approved at the senior policy making level within the agency. Class deviations are typically used to immediately implement a new policy or practice within an agency without having to go through the rule making process. A class deviation is usually effective until the FAR or DFARS is changed to implement the new policy or procedure. Class deviations can permit or mandate agencies to deviate from the FAR or DFARS.

As of this writing, there are 23 class deviations for DoD that are “active.” While most class deviations are temporary, many are not. Until recently, there was one class deviation that was effective for twelve years. What makes class deviations especially tricky is that they may require DoD contracting officers to follow a policy or procedure that is different than what is stated in the FAR or DFARS. For example, assume that you were contemplating the award of a contract for noncommercial services that you were expecting to cost $800,000 and wanted to know if you would be required to evaluate past performance during source selection. FAR 15.304(c) states:

“(3)(i) Except as set forth in paragraph (c)(3)(iii) of this section, past performance shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold.
(ii) For solicitations involving bundling that offer a significant opportunity for subcontracting, the contracting officer must include a factor to evaluate past performance indicating the extent to which the offeror attained applicable goals for small business participation under contracts that required subcontracting plans (15 U.S.C. 637(d)(4)(G)(ii)).
(iii) Past performance need not be evaluated if the contracting officer documents the reason past performance is not an appropriate evaluation factor for the acquisition.”

DFARS 215.304(c) doesn’t contain any text that changes the threshold for evaluating past performance that is stated in the FAR, so it would appear that you would be required to evaluate past performance during source selection, because your acquisition would exceed the simplified acquisition threshold. However, that is incorrect. DoD has a class deviation from FAR 15.304(c)(3)(i) that changes the applicable threshold. For DoD, FAR 15.304(c)(3)(i) reads as follows:

“(3)(i) In lieu of the threshold specified at FAR 15.304(c)(3)(i), except as provided at FAR 15.304(c)(iii), evaluate past performance in source selections for negotiated competitive acquisitions as follows—

(A) For systems and operations support acquisitions expected to exceed $5,000,000; (B) For services and information technology acquisitions expected to exceed $1,000,000; and (C) For all other acquisitions expected to exceed the simplified acquisition threshold.”

Class deviations, especially those that are mandatory, add an extra layer of complexity to determining what information is applicable to a DoD acquisition. Not only must DoD contracting officers research the FAR and the DFARS, they also must research class deviations to determine whether they have been directed to deviate from a requirement in the FAR or DFARS. Further, some class deviations place requirements on acquisitions that are in addition to the requirements in the FAR and DFARS.

Lastly, class deviations are not always easy to find. The FARSite (farsite.hill.af.mil) has embedded references to some, but not all, class deviations in its online versions of the FAR and DFARS. The online version of the DFARS at the DPAP website (http://www.acq.osd.mil/dpap/) also contains references to some, but not all, class deviations. Some class deviations are not referenced anywhere in the FAR or DFARS, but are still applicable. The official repository for class deviations is at the DPAP website (http://www.acq.osd.mil/dpap/dars/class_deviations.html), which has the documents available for download in portable document format (PDF). There is also a searchable PDF file available at the FARSite that contains all class deviations in one document (http://farsite.hill.af.mil/vfdfara.htm).

FAR/DFARS/Class Deviations Research

Answer each question below and provide a citation to the exact reference in the FAR, DFARS, DFARS PGI, or class deviation where the information supporting your answer can be found. FAR, DFARS, and DFARS PGI citations must comply with the format requirements at FAR 1.105-2(c) and take the reader directly to the information supporting your answer. Assume that each question applies to a DoD acquisition. Do not cite anything in FAR subpart 52.2 or DFARS subpart 252.2.

1. Are classified contract actions reportable to the Federal Procurement Data System?

2. Do the SAFETY Act’s liability protections replace the liability protections in the Terrorism Risk Insurance Act of 2002?

3. Should contracting officers allow offerors to propose more than one product that will meet a Government need in response to solicitations for commercial items?

4. Under what conditions is the CO required to encourage increased subcontracting opportunities for SDB concerns in negotiated acquisitions by providing monetary incentives?

5. Is a justification and approval required for a sole source acquisition of products other than small arms to be used only by Iraqi police?

6. When is use of the clause at 252.225-7997 required?

7. Is a justification and approval required if using other than full and open competition pursuant to 10 U.S.C. 2304(c)(4)?

8. Where can one find information regarding the acquisition of special construction?

9. Under what conditions can the “award amount” portion of an award fee be used in other than incentive contracts?

10. What is the limit on the ordering period for a task order contract with options awarded pursuant to 10 U.S.C. 2304a?

11. Is it permissible to limit competition to products from Central Asia, Pakistan, or the South Caucasus?

12. You are responsible for administration of an information technology contract valued at $500,000 that is performed in South Carolina. Is the preparation of a contractor performance evaluation required?

13. Does the price evaluation adjustment for small disadvantaged business concerns apply to the Department of Defense?

14. When is use of the clause entitled “Change in Class of Service” required?

Reading the FAR

As you discovered earlier, the FAR is divided into subchapters, parts, subparts, sections, and subsections. When reading through the different parts and subparts of the FAR, you’ll notice that certain section titles recur. These common titles are as follows:

Scope

Definitions

Applicability

General

Policy

Exceptions (or Exclusions or Limitations)

Procedures; and

Solicitation Provisions and Contract Clauses.

These sections are not always contained in a particular subpart. Further, many sections have titles that are not one of those listed above. The significance of each of the sections listed above is discussed below.

The “Scope of Part” (or “Scope of Subpart”) Section

At the beginning of every FAR part and some subparts, there will be a section titled “Scope”, which summarizes the information contained in the particular FAR part or subpart. For example, the Scope section for FAR part 8, Required Sources of Supplies and Services, states:
8.000 Scope of part.
This part deals with the acquisition of supplies and services from or through Government supply sources.

As shown above, the Scope section of each part is numbered with three zeroes after the decimal point. If a subpart contains a Scope section, it will be numbered with two zeroes following the subpart number (e.g., a Scope section summarizing FAR subpart 12.3 would be numbered "12.300").

It’s important to read the Scope section of the part and subpart (if the subpart contains a Scope section) before applying a rule to a given acquisition. This is because the Scope section may contain a statement that the rules in the part or subpart apply (or do not apply) to certain types of acquisitions. For example, the Scope section for FAR subpart 26.3 (Historically Black Colleges and Minority Institutions) reads as follows:

26.300 Scope of subpart.
(a) This subpart implements Executive Order 12928 of September 16, 1994, which promotes participation of Historically Black Colleges and Universities (HBCUs) and Minority Institutions (MIs) in Federal procurement.
(b) This subpart does not pertain to contracts performed entirely outside the United States and its outlying areas. [Bold added].

A novice reader of the FAR may mistakenly believe that a rule contained in FAR subpart 26.3 applied to a contract performed in a foreign country if they only read the rule and did not read the Scope section. This is one of the most common errors made in applying the FAR.

The “Definitions” Section

Some FAR parts and subparts contain a section titled “Definitions” that contains definitions of words and terms that will be used in the particular part or subpart. For example, the Definitions section of FAR part 28, Bonds and Insurance, states:
28.001 Definitions.
As used in this part—
“Attorney-in-fact” means an agent, independent agent, underwriter, or any other company or individual holding a power of attorney granted by a surety (see also “power of attorney” at 2.101).

If a part or subpart contains a Definitions section, it will come after the Scope section. If the Definitions section applies to the entire part, it will be numbered with “001” after the decimal point (as shown above). If the Definitions section applies to a subpart, it will generally be numbered with “01” after the subpart number (e.g., the Definitions section for FAR subpart 47.2 would be numbered “47.201”).

It’s important to refer to the Definitions section when you are interpreting a rule. The FAR is notorious for defining words and terms differently than how they are commonly understood. The next reading will further discuss the importance of definitions.

The “Applicability” Section

Some FAR parts and subparts contain a section titled “Applicability” that explains what types of acquisitions the information in the part or subpart applies (or does not apply) to. For example, FAR subpart 46.8 contains an Applicability section that states:

46.801 Applicability.
(a) This subpart applies to contracts other than those for (1) information technology, including telecommunications, (2) construction, (3) architect-engineer services, and (4) maintenance and rehabilitation of real property. This subpart does not apply to commercial items.
(b) See Subpart 46.7, Warranties, for policies and procedures concerning contractor liability caused by nonconforming technical data.

It’s important to read the applicability section of a part or subpart before applying a rule in the particular part or subpart for the same reason it is important to read the Scope section—to avoid the mistake of misapplying rules to acquisitions. As discussed earlier, sometimes a statement about the applicability of a part or subpart is contained within the Scope section and there is no separate Applicability section.

The “General” Section

Some parts and subparts contain a General section that provides information to orient the reader to the subject matter that will be covered in the part or subpart. This information is more detailed than what is stated in the Scope section. For example, FAR subpart 43.2 contains the following General section at FAR 43.201:

43.201 General.
(a) Generally, Government contracts contain a changes clause that permits the contracting officer to make unilateral changes, in designated areas, within the general scope of the contract. These are accomplished by issuing written change orders on Standard Form 30, Amendment of Solicitation/Modification of Contract (SF 30), unless otherwise provided (see 43.301).
(b) The contractor must continue performance of the contract as changed, except that in cost-reimbursement or incrementally funded contracts the contractor is not obligated to continue performance or incur costs beyond the limits established in the Limitation of Cost or Limitation of Funds clause (see 32.705-2).
(c) The contracting officer may issue a change order by telegraphic message under unusual or urgent circumstances; provided, that—
(1) Copies of the message are furnished promptly to the same addressees that received the basic contract;
(2) Immediate action is taken to confirm the change by issuance of a SF 30;
(3) The message contains substantially the information required by the SF 30 (except that the estimated change in price shall not be indicated), including in the body of the message the statement, “Signed by (Name), Contracting Officer”; and
(4) The contracting officer manually signs the original copy of the message. Reading the General section is particularly helpful in understanding the context of the rules that appear in the part or subpart.
The “Policy” Section

Many parts and subparts contain a “Policy” section that contains broad statements about the Federal Government’s policy pertaining to the subject matter. For example, FAR subpart 11.5, contains the following Policy section:
11.501 Policy.
(a) The contracting officer must consider the potential impact on pricing, competition, and contract administration before using a liquidated damages clause. Use liquidated damages clauses only when—
(1) The time of delivery or timely performance is so important that the Government may reasonably expect to suffer damage if the delivery or performance is delinquent; and
(2) The extent or amount of such damage would be difficult or impossible to estimate accurately or prove.
(b) Liquidated damages are not punitive and are not negative performance incentives (see 16.402-2). Liquidated damages are used to compensate the Government for probable damages. Therefore, the liquidated damages rate must be a reasonable forecast of just compensation for the harm that is caused by late delivery or untimely performance of the particular contract. Use a maximum amount or a maximum period for assessing liquidated damages if these limits reflect the maximum probable damage to the Government. Also, the contracting officer may use more than one liquidated damages rate when the contracting officer expects the probable damage to the Government to change over the contract period of performance.
(c) The contracting officer must take all reasonable steps to mitigate liquidated damages. If the contract contains a liquidated damages clause and the contracting officer is considering terminating the contract for default, the contracting officer should seek expeditiously to obtain performance by the contractor or terminate the contract and repurchase (see Subpart 49.4). Prompt contracting officer action will prevent excessive loss to defaulting contractors and protect the interests of the Government.
(d) The head of the agency may reduce or waive the amount of liquidated damages assessed under a contract, if the Commissioner, Financial Management Service, or designee approves (see Treasury Order 145-10). The requirements stated in Policy sections typically derive from statutes, executive orders, other federal regulations, or official procurement policies of the executive branch.

The “Exceptions” (or “Exclusions” or “Limitations”) Section

Some subparts contain an Exceptions section that state exceptions to rules. For example, FAR subpart 39.2 contains an Exception section that states:

39.204 Exceptions.
The requirements in 39.203 do not apply to EIT that—
(a) Is purchased in accordance with Subpart 13.2 (micro-purchases) prior to April 1, 2005. However, for micro-purchases, contracting officers and other individuals designated in accordance with 1.603-3 are strongly encouraged to comply with the applicable accessibility standards to the maximum extent practicable;
(b) Is for a national security system;
(c) Is acquired by a contractor incidental to a contract;
(d) Is located in spaces frequented only by service personnel for maintenance, repair or occasional monitoring of equipment; or
(e) Would impose an undue burden on the agency.

Similar to the consequences of failing to read the Scope and Applicability sections, failure to read the Exceptions section may also result in the misapplication of a rule. Some sections titled “Exclusions” or “Limitations” serve the same purpose as the “Exceptions” section.

The Procedures Section Policy sections usually don’t specifically discuss what agencies have to do to comply with the Government’s policy. This type of information is typically contained in a “Procedures” section. For example, FAR subpart 11.5 contains a Procedures section at FAR 11.502 that specifically states what needs to be done to implement the Government’s policy for liquidated damages:
11.502 Procedures.
(a) Include the applicable liquidated damages clause and liquidated damages rates in solicitations when the contract will contain liquidated damages provisions.
(b) Construction contracts with liquidated damages provisions must describe the rate(s) of liquidated damages assessed per day of delay. The rate(s) should include the estimated daily cost of Government inspection and superintendence. The rate(s) should also include an amount for other expected expenses associated with delayed completion such as—
(1) Renting substitute property; or
(2) Paying additional allowance for living quarters.

The Procedures section provides the details for how the agency is to proceed under a given set of conditions.

The Solicitation Provisions and Contract Clauses Section

At the end of a particular subpart, there will typically be a “Solicitation Provisions and Contract Clauses”, “Solicitation Provisions”, or “Contract Clauses” section that tells agencies which provisions and clauses to insert in solicitations and contracts to implement the Government’s policies and procedures in their solicitations and contracts. For example, FAR subpart 11.5 contains the following “Contract Clauses” section:
11.503 Contract clauses.
(a) Use the clause at 52.211-11, Liquidated Damages—Supplies, Services, or Research and Development, in fixed-price solicitations and contracts for supplies, services, or research and development when the contracting officer determines that liquidated damages are appropriate (see 11.501(a)).
(b) Use the clause at 52.211-12, Liquidated Damages—Construction, in solicitations and contracts for construction, other than cost-plus-fixed-fee, when the contracting officer determines that liquidated damages are appropriate (see 11.501(a)). If the contract specifies more than one completion date for separate parts or stages of the work, revise paragraph (a) of the clause to state the amount of liquidated damages for delay of each separate part or stage of the work.

This section is particularly helpful when creating a solicitation, as it contains prescriptions for the use of solicitation provisions and contract clauses.

FAR Reading Exercise

Read each scenario below and answer the corresponding question. Provide citations to support your answer.

1. A contracting officer is drafting a solicitation for the acquisition of telecommunications services inside the United States. Is the contracting officer required to include the clause at FAR 52.241-2, Order of Precedence—Utilities, in the solicitation?

2. A contracting officer has a requirement for a USDA-designated item valued at $10,000. The item was recently designated by USDA and has not been purchased by the agency before. Assuming that none of the exemptions at FAR 23.404(b) apply, is the contracting officer required to purchase a conforming product?

3. A contracting officer is contemplating the award of a contract for the delivery of supplies valued at $150,000. Should the contracting officer include a requirement for contractor identification of sources of supply in the contract?

4. A contracting officer has a requirement for information technology for a national security system. Will the information technology be required to meet the applicable accessibility standards at 36 CFR part 1194?

5. A contracting officer is contemplating the award of a contract to the Chicago Lighthouse for the Blind for $1.1 million. Will the contracting officer be required to document the contract file to indicate how information in FAPIIS was considered in any responsibility determination?

6. A contracting officer intends to award a contract for personal services that will require contractor personnel to perform outside the United States in a designated operational area during a peacekeeping operation. Is the contracting officer required to follow agency procedures and the weapons policy established by the combatant commander or the chief of mission when authorizing contractor personnel to carry weapons?

7. A contracting officer intends to award a personal services contract to an individual for health care. Is the contracting officer required to provide for full and open competition through use of the competitive procedure(s) contained in FAR subpart 6.1?

8. A contracting officer has a requirement for end products for public use inside the United States valued at $3,000. Assuming none of the exceptions at FAR 25.103 and DFARS 225.103 apply, is the contracting officer required to acquire domestic end products?

9. A contracting officer is issuing an undefinitized contract action (UCA) for initial spares. Is there a limit on the amount that can be obligated under the UCA before definitization?

10. A contracting officer (CO) intends to use simplified acquisition procedures to fulfill an urgent requirement. The CO intends to forego the requirement to synopsize under the authority of FAR 5.202(a)(2). Does the CO have to prepare the justification for other than full and open competition described in FAR 6.303? If yes, who must approve the justification?

Interpreting the FAR

It’s one thing to locate information in the FAR and DFARS—it’s another thing to understand its meaning. FAR 1.108 states a number of conventions that provide guidance for interpreting the FAR. Each of these conventions is discussed below.

(a) Words and terms. Definitions in Part 2 apply to the entire regulation unless specifically defined in another part, subpart, section, provision, or clause. Words or terms defined in a specific part, subpart, section, provision, or clause have that meaning when used in that part, subpart, section, provision, or clause. Undefined words retain their common dictionary meaning.

One of the most common mistakes made by novice readers of the FAR is to rely on their preconceived notions of what words and terms mean instead of relying on the definitions contained in the FAR. When it comes to interpreting the meaning of a word or term used in the FAR, reliance on intuition is often fatal. When reading a particular part, subpart, section, provision, or clause in the FAR, one must have the discipline to check if any of the words or terms used are defined in the particular part, subpart, section, provision, or clause. If a word or term is not defined in a particular part, subpart, section, provision, or clause, then one must check to see if FAR part 2, Definitions of Words and Terms, contains a definition of the word or term.

(b) Delegation of authority. Each authority is delegable unless specifically stated otherwise (see 1.102-4(b)).

The FAR will often authorize a high-level official, such as the agency head or the head of the contracting activity to perform certain actions. In such instances, the reader is to assume that the authority given to the high-level official can be delegated, unless the FAR specifically says it cannot. In some instances, the FAR will authorize an “agency head (or designee)” to do something. Given this reading convention, the “(or designee)” is entirely unnecessary.

(c) Dollar thresholds. Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. If the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options.

Many requirements in the FAR are dependent on the anticipated dollar value of the acquisition. In many cases, determining the anticipated dollar value is fairly straightforward. In other cases, determining the anticipated dollar value is more difficult. For example, in variable quantity contracts (e.g., indefinite quantity, requirements, options) agencies can only roughly estimate how much they will order or whether they will exercise any options. In such cases, agencies are to use the maximum dollar value that the acquisition could possibly be when applying rules tied to dollar thresholds.

(d) Application of FAR changes to solicitations and contracts. Unless otherwise specified—
(1) FAR changes apply to solicitations issued on or after the effective date of the change;
(2) Contracting officers may, at their discretion, include the FAR changes in solicitations issued before the effective date, provided award of the resulting contract(s) occurs on or after the effective date; and
(3) Contracting officers may, at their discretion, include the changes in any existing contract with appropriate consideration.

The FAR changes quite often. However, it is impractical for contracting officers to amend solicitations that have already been issued to incorporate FAR changes. As such, the FAR excepts solicitations that have already been issued from having to conform to subsequent changes in the FAR.

(e) Citations. When the FAR cites a statute, Executive order, Office of Management and Budget circular, Office of Federal Procurement Policy policy letter, or relevant portion of the Code of Federal Regulations, the citation includes all applicable amendments, unless otherwise stated. This is self-explanatory.

(f) Imperative sentences. When an imperative sentence directs action, the contracting officer is responsible for the action, unless another party is expressly cited.

The FAR will often require “agencies” to do something or use the passive voice without specifying a subject (e.g., “the file shall be documented”). In these cases, and in others where another party is not expressly cited, the reader is to assume that the contracting officer is responsible for the action.

FAR Interpretation Exercise

Instructions: Answer each question below and provide a proper FAR or DFARS reference to support your answer.

1. If the requirements at FAR 19.1305(b) can be satisfied, can a contracting officer in Fiji set aside an acquisition to be performed in Fiji for HUBZone small business concerns?

2. If an offeror receives notice of its exclusion from the competition on Wednesday, August 29, 2012, what would be the deadline for requesting a preaward debriefing?

3. Can a contractor submit a claim by e-mail?

4. TRUE or FALSE: Price analysis is required whenever cost analysis is required.

5. What is the micro-purchase threshold in Guam for the acquisition of supplies to be used in support of a contingency operation?

6. Does the Buy American Act apply to the construction of a public building in Guam?

7. Can the agency head’s authority to approve unusual contract financing be delegated to the heads of contracting activities?

8. A noncommercial contract is contemplated that will contain a base year and four options. It is anticipated that the value of the base year will be $500,000 and that each option year will be worth $500,000. The contract will be an indefinite delivery indefinite quantity contract with a guaranteed minimum of $3,000. Is the clause at DFARS 252.205-7000, Provision of Information to Cooperative Agreement Holders, required?

9. Who is responsible for returning bid samples that have not been destroyed in testing to bidders when requested?

10. A contracting officer issues a solicitation on January 10, 2011 that requests offers by February 9, 2011. The expected value of the acquisition is $5 million. On January 19, 2011, the FAR is changed to require a new contract clause in solicitations and contracts valued above the simplified acquisition threshold. The Federal Register notice accompanying the final rule is silent on whether current solicitations must be amended to incorporate the new clause. Does the CO have to amend the solicitation to include the new clause?

Putting it All Together

So far you have practiced researching, reading, and interpreting the FAR. These skills are essential if you are going to correctly apply the regulations to a given scenario. Below is a series of questions that you should get in the habit of asking yourself before answering a question that involves applying the regulations:

1. Have I completed my research of the FAR/DFARS/Class Deviations? a. If the policy or procedure is stated in the FAR, did I check the DFARS to see how it has been implemented in DoD? b. If the policy or procedure is stated in the FAR and/or DFARS, did I check to see if there is a class deviation?

2. Does the policy/procedure apply to my acquisition? c. Did I check the applicability of the section, subpart, and part where the policy or procedure is stated? d. Did I check for any exceptions, exclusions, or exemptions in the section, subpart, or part where the policy or procedure is stated? e. Did I determine the applicability of the class deviation, if applicable?

3. Am I interpreting the policy or procedure correctly? f. Did I check to see if there were any words and terms that were specially defined for the section, subpart, or part where the policy or procedure is stated? g. Does the policy or procedure contain any words or terms that are defined at FAR 2.101 or DFARS 202.101, as applicable? h. Am I properly applying the FAR conventions stated at FAR 1.108?

4. Did I provide a good citation? i. Did I provide my citation in the proper format (see FAR 1.105-2(c)(3))? j. Does my citation take the reader directly to the information supporting my answer? k. Is my citation too specific (i.e., does it exclude information necessary to support my answer)?

Many mistakes in applying the regulations can be traced back to a failure to adequately address these questions.

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Applying the Regulations

Answer each question below and provide a citation to support your answer. Work independently and at your own pace. Do not guess and wait for the instructor to reveal the correct answer. These questions are designed to help you prepare for tomorrow’s exam. Assume that all questions apply to a DoD acquisition. Do not cite anything in FAR subpart 52.2 or DFARS subpart 252.2 to support your answer.

1. You are a contracting officer and you are in the process of making an award to an AbilityOne participating nonprofit agency. Are you required to make an affirmative determination of responsibility before making the award?

Reference:

2. A contractor was awarded a purchase order for commercial items for $1.5 million under the authority of FAR subpart 13.5. The purchase order was issued in November 2010 and contained all applicable clauses that were current as of the date of the purchase order. Under the purchase order, the contractor is required to comply with a small business subcontracting plan that contains all of the required elements. Which of the following is TRUE?

a. The contractor must submit a Standard Form 294, Subcontracting Report for Individual Contracts.

b. The contractor must submit an individual subcontracting report through the Electronic Subcontracting Reporting System (eSRS).

c. The contractor may submit either an SF 294 or report its subcontracting through eSRS.

d. The contractor is not required to submit any subcontracting reports.

Reference:

3. Who can sign a determination and findings justifying the use of an award-fee contract?

a. The head of the contracting activity (HCA) only

b. The HCA or designee no lower than one level below the HCA

c. An individual one level above the contracting officer

d. The contracting officer

Reference:

4. Which of the following multiyear contracts would require congressional notification before award?

a. Multiyear contract with a cancellation ceiling of $12 million

b. Multiyear contract with a cancellation ceiling of $12.5 million

c. Multiyear contract with a cancellation ceiling of $13 million

d. None of the above

Reference:

5. You are a contracting officer and you have a requirement for dredging of the Sabine-Neches Waterway that is estimated to cost anywhere between $1 million and $5 million. The work consists of using a pipeline dredge to remove approximately 1,518,000 cubic yards of maintenance material. No levee work will be required. Completion time for the project is 140 calendar days with a production rate of 12,000 cubic yards to be dredged per day and the contractor will have full control of the pace of the work. The contract will be set-aside for SDVOSBs and you intend to use sealed bidding procedures to award the contract.

Which of the following is TRUE?

a. The contracting officer must include a liquidated damages clause in the solicitation.

b. The contracting officer must include a liquidated damages clause in the solicitation, provided that she has determined that liquidated damages are appropriate.

c. The contracting officer may include a liquidated damages clause in the solicitation, provided that she has determined that liquidated damages are appropriate.

d. The contracting officer is prohibited from using a liquidated damages clause.

Reference:

6. Who must make the determination to cancel an invitation for bids after bid opening?

a. Contracting officer

b. Chief of the contracting office

c. Head of the contracting activity

d. Agency head

Reference:

7. A contracting officer has a requirement for men’s underwear. The underwear is available from Federal Prison Industries (FPI) and several commercial sources. The underwear offered by FPI is comparable to the underwear offered in the private sector in terms of price, quality, and delivery. What must the contracting officer do in this situation?

a. Purchase the items from FPI

b. Obtain a waiver from FPI

c. Compete the requirement among the commercial sources and FPI.

d. None of the above.

Reference:

8. Can an enemy prisoner of war be interrogated by contractor personnel?

a. No

b. It is generally prohibited, but the Secretary of Defense may waive the prohibition for a period of 60 days.

c. Only if the contractor personnel have proper training and security clearances.

d. None of the above

Reference:

9. A Navy contracting officer stationed in Naples, Italy, has a received a request to lease motor vehicles from a requiring activity. The motor vehicles will be leased for a period of 60 days. What must the requiring activity certify, in writing, and provide to the contracting officer before the contracting officer can prepare the solicitation?

a. The vehicles requested are of maximum fuel efficiency and minimum body size, engine size, and equipment (if any) necessary to fulfill operational needs, and meet prescribed fuel economy standards.

b. Internal approvals have been received.

c. The General Services Administration has advised that it cannot furnish the vehicles.

d. None of the above applies.

Reference:

Appendix

Below are some additional FAR/DFARS/Class Deviations questions for practicing your research skills.

1. When should the contracting officer use the clause at FAR 52.227-14?

2. Is use of the clause at FAR 52.219-17 required if the contracting officer proceeds with a competitive 8(a) acquisition and will make a direct award to the winner?

3. With regard to whistleblower protections for contractor employees, is there a time limit on how long a contractor has to submit a written response to the inspector general’s report of findings?

4. Should the clause at FAR 52.246-21, Warranty of Construction, be used in a fixed-price construction contract that will be performed in Germany?

5. What is the threshold for public announcement of contract awards?

6. Can a DoD activity enter into a service contract for a military flight simulator without getting a waiver from the Secretary of Defense?

7. Can a government contractor demote an employee as a reprisal for disclosing information to a representative of a committee of Congress (not a Member of Congress) relating to a substantial violation of law related to a contract?

8. Can a contractor acting in good faith rely on the written representation of its subcontractor regarding the subcontractor’s status as a small disadvantaged business concern?

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[ 1 ]. An additional ten points will be added to the sum of your quiz scores if you passed the FAR Challenge on the first day of class (see “The FAR Challenge” section of “How CON 090 Works” below).
[ 2 ]. The promulgation of acquisition regulations is governed by the Office of Federal Procurement Policy Act, not the APA. However, the process is basically the same.
[ 3 ]. Source: www.usaspending.gov
[ 4 ]. Source: www.usaspending.gov
[ 5 ]. See Matter of: John Martino, B-262168, May, 24, 1996.
[ 6 ]. See http://www.oge.gov/Laws-and-Regulations/Employee-Standards-of-Conduct/Employee-Standards-of-Conduct/
[ 7 ]. Note that FAR parts are supplemented by DFARS subparts, FAR subparts are supplemented by DFARS sections, FAR sections are supplemented by DFARS subsections, etc.
[ 8 ]. The FAR Bootcamp® Course Reading, ©2007 by Vernon J. Edwards, p. 10.