Depending upon the estimated dollar value of the acquisition: the contracting officer or the source selection authority. -Price analysis Active Feature-value Acquisition 2.1. (4) Replace the basic provision with its Alternate IV if certified cost or pricing data are not expected to be required because an exception may apply, but data other than certified cost or pricing data will be required as described in 15.403-3. If there has been a significant time lapse between the last acquisition and the present one, if the terms and conditions of the acquisition are significantly different, or if the reasonableness of the prior price is uncertain, then the prior price may not be a valid basis for comparison. (c) Commercial products and commercial services. the parent combines the Equity In Subsidiary Earnings with the subsidiary company's revenues less expenses. In this case, he could multiply his purchase price of $100,000 by 25% to get a land value of $25,000. This clause also provides instructions to contractors on how to request an exception from the requirement to submit certified cost or pricing data. Acquisition Type - purchased, leased, or donated (gift) 8. (6) Proposed cost; profit or fee; and total; (7) Whether you will require the use of Government property in the performance of the contract, and, if so, what property; (8) Whether your organization is subject to cost accounting standards; whether your organization has submitted a CASB Disclosure Statement, and if it has been determined adequate; whether you have been notified that you are or, (9) The following statement: This proposal reflects our estimates and/or actual costs as of this date and conforms with the instructions in FAR, C. As part of the specific information required, you, (2) Information reasonably required to explain your estimating process, including-, (i) The judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data; and, (ii) The nature and amount of any contingencies included in the proposed, F. Whenever you have incurred costs for work performed before submission of a proposal, you, G. If you have reached an agreement with Government representatives on use of forward, H. As soon as practicable after final agreement on. This subfactor measures the prospective contractors other indirect costs and general and administrative (G&A) expense, their composition, and how much they contribute to contract performance. Purpose. Subcontract (except as used in 15.407-2) also includes a transfer of commercial products or commercial services between divisions, subsidiaries, or affiliates of a contractor or a subcontractor ( 10 U.S.C. Life-cycle cost This provision also provides instructions to offerors on how to request an exception from the requirement to submit certified cost or pricing data. CONTRACT AWARD: Depending upon the estimated dollar value of the acquisition:. The services contracting that the Gov. (iv) Certified cost or pricing data were required; however, the contractor or subcontractor did not submit a Certificate of Current Cost or Pricing Data relating to the contract. Use techniques such as, but not limited to, price analysis, cost analysis, and/or cost realism analysis to establish a fair and reasonable price. * Identify the proposal, request for price adjustment, or other submission involved, giving the appropriate identifying number (e.g., RFP No.). the expected outcome of an acquisition If release of the information would compromise Government security or disclose trade secrets or confidential business information, the contracting officer shall release it only under conditions that will protect it from improper disclosure. Enter those necessary and reasonable costs that in your judgment will properly be incurred in completing the remaining work to be performed under the contract with respect to the item(s) to which your proposal relates. Overpayments do not result from amounts paid for contract financing, as defined in 32.001. CONTRACT AWARD: Depending upon the estimated dollar value of the acquisition:. Select and defend the tools you think are more effective in promoting the national interest. Select offer is the most advantageous to the government (c) Standards for exceptions from certified cost or pricing data requirements. The ACO shall establish a follow-up plan to monitor the correction of the uneconomical or inefficient practices. (1) If, after award, certified cost or pricing data are found to be inaccurate, incomplete, or noncurrent as of the date of final agreement on price or an earlier date agreed upon by the parties given on the contractor's or subcontractor's Certificate of Current Cost or Pricing Data, the Government is entitled to a price adjustment, including profit or fee, of any significant amount by which the price was increased because of the defective data. Consent to subcontracts and review of contractors purchasing systems are separate actions covered in part 44. Also submit any information reasonably required to explain your estimating process (including the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price). In order to afford an opportunity for corrective action, the contracting officer should give the prime contractor reasonable advance notice before determining to reduce the prime contract price. The contractor shows his appreciation by offering you box tickets to your university's football game. (1) Adequate price competition. , when the estimated value equals or exceeds $25,000, but is less than $182,000 , unless an exception at FAR 25.401 or 225.401 applies. It typically takes 8-10 months for efforts less than $50M, 10-12 months from efforts greater than $50M but less than $100M, and 12+ months for efforts greater than $100M. Taking into consideration the advisory recommendations, reports of contributing specialists, and the current status of the contractors purchasing system, the contracting officer is responsible for exercising the requisite judgment needed to reach a negotiated settlement with the offeror and is solely responsible for the final price agreement. Requirements Contracts When does the Service Contract Act of 1965 apply? (2) The contracting officer shall not request a separate preaward audit of indirect costs unless the information already available from an existing audit, completed within the preceding 12 months, is considered inadequate for determining the reasonableness of the proposed indirect costs ( 41 U.S.C.4706 and 10 U.S.C. (1) A program should-cost review is used to evaluate significant elements of direct costs, such as material and labor, and associated indirect costs, usually associated with the production of major systems. each acquisition of suppliesor services that has an anticipated dollar value above the micro-purchasethreshold, but not over the simplified acquisition threshold, shall beset aside for small business unless the contracting officer determinesthere is not a reasonable expectation of obtaining offers from twoor more responsible small business 1. (5) Field pricing information and other reports may include proprietary or source selection information (see 2.101). Decision, or approval. -Commercial Sources. (b) Exceptions to certified cost or pricing data requirements. (3) The first two techniques at 15.404-1(b)(2) are the preferred techniques. This is within the scope of the You are a Cor working on the third year in a 5- year contract. (C) Apply the underpayment interest rate(s) in effect for each quarter from the time of overpayment to the time of repayment, utilizing rate(s) prescribed by the Secretary of the Treasury under 26 U.S.C.6621(a)(2). The liability for each facility will be accreted to its present value, which is estimated to approximate $16.4 million through the estimated settlement dates extending from 2009 through 2042. "Make item," as used in this subsection, means an item or work effort to be produced or performed by the prime contractor or its affiliates, subsidiaries, or divisions. (3) Cost realism analyses may also be used on competitive fixed-price incentive contracts or, in exceptional cases, on other competitive fixed-price-type contracts when new requirements may not be fully understood by competing offerors, there are quality concerns, or past experience indicates that contractors proposed costs have resulted in quality or service shortfalls. Due to the time over which these obligations could be settled and the judgment used to determine the liability, the ultimate obligation may differ from the Computing Depreciation under Alternative Methods. STRUCTURE OF THE FAR TO THE SUBPART LEVEL SUBCHAPTER A--GENERAL PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM 1.1 Purpose, Authority, Issuance 1.2 Administration 1.3 Agency Acquisition Regulations 1.4 Deviations from the FAR 1.5 Agency and Public Participation 1.6 Contracting Authority and Responsibilities 1.7 . Seven statutory exceptions. Military Personnel - 1 year Form USM-416, Individual Acquisition Planning, must be completed for each new contract action above the dollar threshold of $100,000. They are to be used for instruction and professional guidance. FedBizOps The prime contractor is responsible for updating a prospective subcontractors data. )Assumes plantcane crop is sold, and . Analyze the certified cost or pricing data and submit the results of your analysis of the prospective sources proposal.When submission of a prospective sources certified cost or pricing data is required as described in this paragraph, it must be included as part of your own certified cost or pricing data. (b) Policy. FAR 8.002(2) Services - (See the Certificate of Current Cost or Pricing Data at 15.406-2.). For each provision or clause, the matrix provides information on: You, as a COR, are giving technical direction to the contractor. as a COR, establishing a joint partnership with your Contracting Officer, TYPES OF CONTRACT CHANGES: With regard to contract modifications, IDENTIFY THE STEPS IN THE PROPOSAL EVALUATION PROCESS: A nominated COR frequently is asked, IDENTIFY DIFFERENCE ACTUAL/EXPRESS, IMPLIED, APPARENT AUTHORITY: Our acquisition regulations provide the foundation, RECOGNIZE IMPORTANCE OF COMPETITION: The competition in Contract Act requires that, IDENTIFY THE CATEGORIES OF CONTRACTS: The services contracting that the Government prefers not to use, IDENTIFY THE CORS ETHICAL RESPONSIBILITIES: Your personal and professional conduct influences, RECOGNIZE THE DUTIES AND FUNCTIONS EXPECTED OF A COR: The COR's authority is delineated in which document, IDENTIFY PROPER INVOICE REQUIREMENTS: Failure of the government to pay the contractor within 30 days, IDENTIFY THE ACTIVITIES PERFORMED IN PLANNING THE ACQUISITION: The purpose of market research is to maximize the capabilities, EFFECTIVE ACQUISITION TEAM: To have an effective acquisition team, it is important that you choose a group, IDENTIFY PERFORMANCE ASSESSMENT RESPONSIBILITIES: What is the COR's primary purpose in performing an inspection, . Policy - FAR 19.201 The scope of a should-cost review can range from a large-scale review examining the contractors entire operation (including plant-wide overhead and selected major subcontractors) to a small-scale tailored review examining specific portions of a contractors operation. The Services Acquisition Process includes planning, development and execution. Enter your redetermination proposal amount. (iii) Comparison of costs proposed by the offeror for individual cost elements with-. The contracting officer shall-. (ii) For agencies other than DoD, NASA, and the Coast Guard, a price is also based on adequate price competition when, (A) There was a reasonable expectation, based on market research or other assessment, that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation's expressed requirement, even though only one offer is received from a responsible offeror and if-, (1) Based on the offer received, the contracting officer can reasonably conclude that the offer was submitted with the expectation of competition, e.g., circumstances indicate that, (i) The offeror believed that at least one other offeror was capable of submitting a meaningful offer; and, (ii) The offeror had no reason to believe that other potential offerors did not intend to submit an offer; and, (2) The determination that the proposed price is based on adequate price competition and is reasonable has been approved at a level above the contracting officer; or. The contracting officer should consider whether a contractor or subcontractor has an approved purchasing system, has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the prime contract, in determining the reasonableness of the prime contract price. Limited competition required to meet requirements b. will provide a debriefing to the SSA upon request. Acquisition Premium: An acquisition premium is the difference between the estimated real value of a company and the actual price paid to obtain it. The choice of contract type to be used in a solicitation depends on the: The COR will be evaluating a contractor's performance using the ____, As a COR, establishing a joint partnership with your contacting officer is critical for ensuring mission success, as is establishing a professional relationship with your contractor. What type of contract must be awarded for a When this result is negative, place the amount in parentheses. Its title or full text. Your personal and professional conduct influences the public's confidence in the federal acquisition process. (a) General. This article explores the implications of acquisition value assessment for homesteaded property established in 1983 in Muscogee County, Georgia. (h) Review and justification of pass-through contracts. (b) Actions authorized under Pub. (C) Conversion-related indirect costs. What is the Competition in Contracting Act (CICA)? research? (1) Use the provision with its Alternate I to specify a format for certified cost or pricing data other than the format required by Table 15-2 of this section; (2) Use the provision with its Alternate II if copies of the proposal are to be sent to the ACO and contract auditor; (3) Use the provision with its Alternate III if submission via electronic media is required; and. Where the determination of a fair and reasonable price is based on cost analysis, the summary shall address each major cost element. PART 2--DEFINITIONS OF WORDS AND TERMS chapter 271 and 41 U.S.C. Compatibility with other systems -Sufficient justification for the authority cited (c) Contracting officers shall not require certification at the time of agreement for data supplied in support of FPRAs or other advance agreements. Price means cost plus any fee or profit applicable to the contract type. Enter the difference between the contract amount and the redetermination proposal amount. (a) Purchase supplies and services from responsible sources at fair and reasonable prices. Considering the hierarchy at 15.402, the contracting officer shall insert the provision at 52.215-20, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, in solicitations if it is reasonably certain that certified cost or pricing data or data other than certified cost or pricing data will be required. on the contractor? Q: Depending upon the estimated dollar value of the acquisition and agency procedures the decision to award will be made by? (5) An offset shall be allowed only in an amount supported by the facts and if the contractor-, (i) Certifies to the contracting officer that, to the best of the contractors knowledge and belief, the contractor is entitled to the offset in the amount requested; and. (B) Cost data to the extent necessary for the contracting officer to determine a fair and reasonable price. (i) A price is based on adequate price competition when (A) Two or more responsible offerors, competing independently, submit priced offers that satisfy the Government's expressed requirement; (B) Award will be made to the offeror whose proposal represents the best value (see 2.101) where price is a substantial factor in source selection; and The difference between each category is dependent on the location of a program in the Acquisition Process, funding amount for Research, Development, Test and Evaluation (RDT&E), total procurement cost, Milestone Decision Authority (MDA) special interest, and decision authority. Enter total estimated cost (Total of Columns (11) and (12)). Cost reimbursement contracts 100% Government. (c) The contracting officer and contractor are encouraged to reach a prior agreement on criteria for establishing closing or cutoff dates when appropriate in order to minimize delays associated with proposal updates. and depending on the size of the acquisition or disposition, may require . 3. )Assumes plantcane crop is sold, and . Unless it is clearly inappropriate or not applicable, each factor outlined in paragraphs (d)(1)(i) through (vi) of this subsection shall be considered by agencies in developing their structured approaches and by contracting officers in analyzing profit, whether or not using a structured approach. According to the JN+A and HVS Design Hotel Cost Estimating Guide for 201 9, the detailed cost average expense per room for a hotel guestroom renovation is $18,218. Before making such a determination, the contracting officer should give the contractor an opportunity to support the accuracy, completeness, and currency of the data in question. Prohibition on obtaining certified cost or pricing data (10 U.S.C. 45 day response time for R&D actions that exceed the SAT, Contracting Officers must publicize contract actions in order to (i) Acquisitions at or below the simplified acquisition threshold; (ii) Construction or architect-engineer services under part 36; (iv) Service contracts where supplies are not required; (v) Acquisitions of commercial products and commercial services; and. Procurement Monies - 3 years Whether incorporation by reference is or is not authorized (i) In addition to the price adjustment, the Government is entitled to recovery of any overpayment plus interest on the overpayments. 7. See HHSAR 306.304(a)(1) and 313.501(a)(2)(i) for additional information regarding CO approval of a JOFOC in this dollar range. Data within the contractors or a subcontractors organization on matters significant to contractor management and to the Government will be treated as reasonably available. Depending on the brand and quality level of the asset, these figures can also be higher. Some firm-fixed-price contracts may entail substantially less cost risk than others because, for example, the contract task is less complex or many of the contractors costs are known at the time of price agreement, in which case the risk factor should be reduced accordingly. Option is the most advantageous method of fulfilling the need If it is conducted in conjunction with a program should-cost review, a separate overhead should-cost review report is not required. (8) The most significant facts or considerations controlling the establishment of the prenegotiation objectives and the negotiated agreement including an explanation of any significant differences between the two positions. cASM employs a customizable workflow for reviews and approvals prior to execution by the Contingency Contracting Officer, thus reducing coordination time and potentially hazardous travel in . The fact that a price is included in a catalog does not, in and of itself, make it fair and reasonable. This subpart prescribes the cost and price negotiation policies and procedures for pricing negotiated prime contracts (including subcontracts) and contract modifications, including modifications to contracts awarded by sealed bidding. ".provide maximum practicable opportunities in [Government] acquisitions to small business, veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. assignment standards and adequately supports the value estimate, and specifically Question One The correct answer is Report to supervisor. ASD will maintain the site. The FAR applies to all acquisitions as defined in the FAR, except where expressly excluded. Set-Asides for Small Business Concerns plan, develop, execute. (2) The contracting officer shall tailor the type of information and level of detail requested in accordance with the specialized resources available at the buying activity and the magnitude and complexity of the required analysis. Increase in Value of Equity. (d) Possession of a Certificate of Current Cost or Pricing Data is not a substitute for examining and analyzing the contractors proposal. The head of the contracting activity (HCA) may, without power of delegation, waive the requirement for submission of certified cost or pricing data in exceptional cases. 6.302-2 - Unusual and compelling urgency (2) Prices set by law or regulation. Inventory balance on hand both quantity and dollar value The inventory system must be maintained on a first-in, first-out (FIFO) basis. (iii) The Government shall not disclose outside the Government data obtained relating to commercial products or commercial services that is exempt from disclosure under 24.202(a) or the Freedom of Information Act ( 5U.S.C.552(b)). ARB . (b) Definition. When obtaining data from the offeror is necessary, unless an exception under 15.403-1(b)(1) or (2) applies, such data submitted by the offeror shall include, at a minimum, appropriate data on the prices at which the same or similar items have been sold previously, adequate for evaluating the reasonableness of the price. _______________________ strategies have become the preferred contracting method and require structuring all aspects of an acquisition around the purpose of the work to be performed. What are the 7 Statutory Exceptions to Full and Open Competition? Government? At the same point in time, the thirty-year treasury bond rate in the United States was 8.00%. (b) The contracting officer shall establish prenegotiation objectives before the negotiation of any pricing action. (iv) Reasons for categorizing items and work efforts as "must make" or "must buy," and proposing to "make" or to "buy" those categorized as "can either make or buy." (2) The offerors program should include or be supported by the following information: (i) A description of each major item or work effort. 1.6 Contracting Authority and Responsibilities (i) Any acquisition that the contracting officer determines meets the commercial product or commercial service definition in 2.101, or any modification, as defined in paragraph (3)(i) of the commercial product definition, that does not change a commercial product to other than commercial, is exempt from the requirement for certified cost or pricing data.