Term
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Definition
| The process required to acquire goods & services from outside the performing organization |
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Term
| Objectives of the procurement process? |
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Definition
| To obtain the goods and services for a program in accordance with the technical, quality, schedule, cost, and other performance objectives |
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Term
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Definition
| A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. |
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Term
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Definition
Offer
Acceptance
Consideration
Competency of parties
Legality of purpose
Certainty of terms |
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Term
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Definition
| Meeting program objectives: cost, schedule, performance |
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Term
| Responsibility of Contracting Officer |
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Definition
Providing procurement support to the PM. Authority derived from FAR
Only individual authorized to legally bind the Govts in contractual obligations.
Has authority to enter into, administer, & terminate contracts |
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Term
| 6 phases of the procurement process |
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Definition
Procurement Planning
Solicitation Planning
Solicitation
Source Selection
Contract Administration
Contract Close-Out |
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Term
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Definition
Determining
Whether to procure
How to procure
what to procure
How much to procure
When to procure |
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Term
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Definition
| Documenting product requirements and identifying potential sources |
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Term
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Definition
| Obtaining quotations, bids, offers, or proposals as appropriate |
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Term
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Definition
| Choosing from among potential offers |
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Term
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Definition
| Managing the relationship with the contractor |
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Term
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Definition
| completion and settlement of the contract, including resolution of any open items |
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Term
| How is the procurement process integrated with the acquisition framework? |
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Definition
| Procurement Process could be the vehicle for entering or continuing through the acquisition life-cycle |
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Term
| What are the two types procurement methods? |
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Definition
Competitive (full & open competition)
Non-Competitive |
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Term
| Name 2 Competitive Methods of procurement |
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Definition
Sealed Bidding
Competitive Negotiations |
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Term
| What is a Noncompetitive Method of procurement? |
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Definition
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Term
Sole-source procurement allows only one contractor to provide a product or service and does not require approval.
(T/F) |
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Definition
False.
Does Require Approval |
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Term
Sealed bidding allows for lowest priced/tech acceptable (LP/TA) to be accepted.
(T/F) |
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Definition
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Term
Competitive negotiations allows the government to get the best value and does not necessarily award the contract to the lowest bidder.
(T/F) |
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Definition
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Term
What objectives drive contract type selection?
(4 total) |
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Definition
1. Place as much cost responsibility on the contractor as is reasonable.
2. Reasonable allocation of risk between buyer & contractor
3. Provide contractor maximum amount of incentive
4. Minimize contract administration cost for both parties |
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Term
What factors should be considered when deciding on contract type?
(8 total) |
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Definition
1. Capability of seller's accounting system
2. Uncertainty in the cost estimate
3. Type & complexity of the requirements
4. Urgency of the requirement
5. Marketplace & competitiion
6. Seller's technical capability
7. Administrative costs to both parties
8. Size and amount of the contract |
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Term
Risk rests mainly with the contractor in Fixed Price Contracts.
(T/F) |
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Definition
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Term
Fixed Price Contracts are used when risk of performance is High.
(T/F) |
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Definition
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Term
Contractors are obligated to deliver the requirement called for by the contract in Fixed Price Contracts.
(T/F) |
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Definition
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Term
Contractors will receive more funding if additional costs are incurred in Fixed Price Contracts.
(T/F). |
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Definition
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Term
Amount of profit earned is dependent on contractor's costs incurred in Fixed Price Contracts.
(T/F) |
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Definition
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Term
Cost savings become profit while cost overrun increases loss in Fixed Price Contracts.
(T/F) |
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Definition
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Term
Risk rests mainly with the Contractor in Cost Reimbursement Contracts.
(T/F) |
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Definition
False.
Risk rests with Government |
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Term
Fixed Price Contracts are used when risk of performance is high.
(T/F) |
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Definition
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Term
Government is obligated to reimburse the contractor for all allowable, reasonable, and allocable costs incurred, and to pay a fee in accordance with the contract terms in Cost Reimbursement Contracts.
(T/F). |
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Definition
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Term
Contractor agrees to provide "Best Effort" but will be penalized if they produce nothing Cost Reimbursement Contracts.
(T/F). |
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Definition
False.
Can produce nothing |
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Term
Cost savings return to the Government while cost overrun is paid for by the government Cost Reimbursement Contracts.
(T/F). |
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Definition
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Term
| List the 3 types of 'FEE' |
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Definition
Fixed Fee
Award Fee
Incentive Fee |
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Term
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Definition
-Used with Cost contract - Cost Plus Fixed Fee (CPFF)
-Guarantees contractor the Fixed Fee amount |
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Term
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Definition
-Award Fee pool (funding) available at contract initiation
-Award Fee Plan states criteria for percent of fee awarded
-Award Fee Board meets at award intervals to determine fee
-May include base fee which is fixed |
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Term
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Definition
-Used to incentivize cost, schedule, or performance element improvement, based on quantifiable measurement...
-Cost - Uses a Share Ratio for cost savings stated in Govt./Contractor percentages
-Schedule - Early Delivery of acceptable product
-Performance - Measureable
-Fee determined through a calculation and is disputable
-May include specified minimum fee, always specifies maximum fee limit
-Contractor must be performing satisfactorily on all contract elements to qualify for incentive fee |
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Term
| Discuss the relationship between requirement, buyer’s risk, and seller’s risk and contract type. |
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Definition
6-1_Contracts_Procurement.ppt
Slide 26
(Big Red Arrow) |
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Term
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Definition
| Establishes and defines in clear, understandable terms what the contractor must do (non-performance specification requirements) and what goods or services are to be provided for the contractor to get paid |
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Term
| How is the SOW related to the WBS? |
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Definition
| SOW tasks are derived from the SEP WBS using an IPPD Approach |
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Term
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Definition
Statement Of Objectives
states hi-level objectives in broad terms
Result oriented
Intended to garner maximum innovation in contractor proposal |
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Term
| What is one difference between the SOW and the SOO in regards to contracts? |
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Definition
| The SOO does not become part of the contract. |
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Term
Contractors include a recommended SOW in their proposals.
(T/F) |
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Definition
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Term
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Definition
Invitation for Bid
Price based selection (must award LP/TA)
Discussion with bidders not allowed
More than 1 bidder expected |
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Term
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Definition
Request for Proposal
Best-value based selection (LPTA or other than LPTA)
Discussion allowed |
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Term
| Discuss the relationship between requirement, buyer’s risk, and seller’s risk and contract type. |
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Definition
6-1_Contracts_Procurement.ppt
Slide 26
(Big Red Arrow) |
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Term
|
Definition
| Establishes and defines in clear, understandable terms what the contractor must do (non-performance specification requirements) and what goods or services are to be provided for the contractor to get paid |
|
|
Term
| How is the SOW related to the WBS? |
|
Definition
| SOW tasks are derived from the SEP WBS using an IPPD Approach |
|
|
Term
|
Definition
Statement Of Objectives
states hi-level objectives in broad terms
Result oriented
Intended to garner maximum innovation in contractor proposal |
|
|
Term
| What is one difference between the SOW and the SOO in regards to contracts? |
|
Definition
| The SOO does not become part of the contract. |
|
|
Term
Contractors include a recommended SOW in their proposals.
(T/F) |
|
Definition
|
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Term
|
Definition
Invitation for Bid
Price based selection (must award LP/TA)
Discussion with bidders not allowed
More than 1 bidder expected |
|
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Term
|
Definition
Request for Proposal
Best-value based selection (LPTA or other than LPTA)
Discussion allowed |
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Term
| Discuss the relationship between requirement, buyer’s risk, and seller’s risk and contract type. |
|
Definition
6-1_Contracts_Procurement.ppt
Slide 26
(Big Red Arrow) |
|
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Term
|
Definition
| Establishes and defines in clear, understandable terms what the contractor must do (non-performance specification requirements) and what goods or services are to be provided for the contractor to get paid |
|
|
Term
| How is the SOW related to the WBS? |
|
Definition
| SOW tasks are derived from the SEP WBS using an IPPD Approach |
|
|
Term
|
Definition
Statement Of Objectives
states hi-level objectives in broad terms
Result oriented
Intended to garner maximum innovation in contractor proposal |
|
|
Term
| What is one difference between the SOW and the SOO in regards to contracts? |
|
Definition
| The SOO does not become part of the contract. |
|
|
Term
Contractors include a recommended SOW in their proposals.
(T/F) |
|
Definition
|
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Term
|
Definition
Invitation for Bid
Price based selection (must award LP/TA)
Discussion with bidders not allowed
More than 1 bidder expected |
|
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Term
|
Definition
Request for Proposal
Best-value based selection (LPTA or other than LPTA)
Discussion allowed |
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Term
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Definition
| Each party gives something of value & receives something of value in return |
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Term
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Definition
| Both parties have to be competent at time of contract |
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Term
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Definition
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Term
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Definition
| Terms & Conditions are sufficiently clear and each party understands their responsibilities |
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Term
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Definition
| The legal relationship between 2 contracting parties |
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Term
| Government has "privity of contract" with its prime contractor |
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Definition
| If the prime contractor subcontracts, the Govt. cannot go directly to the sub contractor. |
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