con 2370

DAU CON 2370 Simplified Acquisition Procedures exam bank: thresholds and the FAR subpart 13.5 commercial ceiling, required sources under FAR part 8, market research and commerciality, describing the requirement, publicizing and synopsis, competition and solicitation method, small business set-asides, evaluation, price reasonableness and award documentation, purchase orders and BPAs, modifications and options, inspection, acceptance and warranties, and contract closeout. The course key was written against the older $250,000 simplified acquisition threshold, $10,000 micro-purchase threshold and $7.5 million commercial ceiling; every card whose answer turns on one of those numbers gives the answer the course expects and then annotates the current FAR value and what it changes. Every answer is cited to acquisition.gov.

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01Which one of the following statements is true regarding the policies for the use of simplified acquisition procedures (SAP)?

Purchases shall be made in the simplified manner that is most suitable to the circumstances of the acquisition. FAR 13.003(g) directs authorized individuals to buy in the manner that is most suitable, efficient, and economical for each acquisition, and it lets them use any appropriate combination of the procedures in FAR parts 13, 14, 15, 35 or 36 (parts 12, 13, 14 and 15 for commercial products and services) - it does not require that a combination be used.

VERIFIED AGAINST THE SOURCE

“Authorized individuals shall make purchases in the simplified manner that is most suitable, efficient, and economical based on the circumstances of each acquisition. For acquisitions not expected to exceed- (1) The simplified acquisition threshold when acquiring other than commercial products or commercial services, use any appropriate combination of the procedures in parts 13, 14, 15, 35, or 36”

— FAR 13.003(g) Policy ↗

02You have a requirement for repair parts to support routine maintenance services at the shop on your base. The parts were developed using Government funds and are not offered to the general public. The estimated dollar value of the acquisition is $275,000. Which one of the following statements is true?

The use of simplified acquisition procedures is prohibited - that is the answer the course key expects, because the course was written when the simplified acquisition threshold was $250,000 and the parts are not commercial, so $275,000 sat above the threshold. Note: the simplified acquisition threshold is now $350,000 (FAR 2.101), so under the current FAR this $275,000 non-commercial buy is BELOW the threshold and simplified acquisition procedures would be authorized.

VERIFIED AGAINST THE SOURCE

“The contracting officer shall not use simplified acquisition procedures to acquire supplies and services if the anticipated award will exceed- (i) The simplified acquisition threshold; or (ii) $9 million ($15 million for acquisitions as described in 13.500 (c)), including options, for acquisitions of commercial products or commercial services using subpart 13.5.”

— FAR 13.003(c)(1) Policy ↗

03You have a requirement for eight units of a non-commercial item, each estimated to cost $35,000. May simplified acquisition procedures be used?

Simplified acquisition procedures cannot be used - that is the answer the course key expects, because the eight units aggregate to $280,000 and the course was written against a $250,000 simplified acquisition threshold. Note: the simplified acquisition threshold is now $350,000 (FAR 2.101), so under the current FAR the $280,000 aggregate is below the threshold and SAP would be authorized. Either way the requirement may not be broken into eight separate $35,000 purchases to get under a threshold (FAR 13.003(c)(2)).

VERIFIED AGAINST THE SOURCE

— FAR 13.003(c)(1) Policy ↗

04You have a requirement for repair parts to support routine maintenance services at the shop on your base. The parts are sold to the general public and are used for nongovernmental purposes. The estimated dollar value of the acquisition is $625,000. Which one of the following statements is true?

The use of simplified acquisition procedures is authorized. The parts are commercial products, so FAR subpart 13.5 permits simplified procedures above the simplified acquisition threshold up to $9 million including options.

VERIFIED AGAINST THE SOURCE

“This subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $9 million ($15 million for acquisitions as described in 13.500 (c)), including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial products or commercial services.”

— FAR 13.500(a) General — simplified procedures for certain commercial products and commercial services ↗

05You have a requirement for water restoration services at your base in Louisiana. These services are of a type sold competitively in substantial quantities in the commercial marketplace based on market prices. The estimated dollar value of the acquisition is $1,250,000. Which one of the following statements is true?

The use of simplified acquisition procedures is authorized. The services meet the FAR 2.101 definition of a commercial service, so FAR subpart 13.5 allows simplified procedures above the simplified acquisition threshold up to $9 million including options. (The course key used the older $7.5 million ceiling; $1,250,000 is well under either figure, so the answer does not change.)

VERIFIED AGAINST THE SOURCE

“Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions.”

— FAR 2.101 Definitions — commercial service ↗

06You are buying a commercial product or commercial service and want to include options. In order to use simplified acquisition procedures, the aggregate value of the acquisition and all its options cannot exceed:

$7.5 million is the answer the course key expects. Note: the FAR subpart 13.5 ceiling is now $9 million including options ($15 million for the acquisitions described in FAR 13.500(c)), so $9 million is the current figure. FAR 13.106-1(e) is the rule that the aggregate value of the acquisition and all options must stay within the threshold for use of simplified acquisition procedures.

VERIFIED AGAINST THE SOURCE

“Use of options. Options may be included in solicitations, provided the requirements of subpart 17.2 are met and the aggregate value of the acquisition and all options does not exceed the dollar threshold for use of simplified acquisition procedures.”

— FAR 13.106-1(e) Soliciting competition — use of options ↗

07Requirements that cannot be met by a required source of supplies or services are automatically reserved exclusively for small business concerns when they are expected to:

Exceed $10,000 but not exceed $250,000 is the answer the course key expects - the reservation runs from the micro-purchase threshold up to the simplified acquisition threshold, and those were $10,000 and $250,000 when the course was written. Note: under the current FAR 2.101 the band is above $15,000 (the micro-purchase threshold) through $350,000 (the simplified acquisition threshold).

VERIFIED AGAINST THE SOURCE

“Simplified acquisition threshold means $350,000, except for— (1) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation”

— FAR 2.101 Definitions — simplified acquisition threshold ↗

08The required sources of supplies and services can be found in which FAR part?

FAR part 8. FAR 13.003(a)(1) points to the required sources of supply under part 8 - Federal Prison Industries, the Committee for Purchase from People Who Are Blind or Severely Disabled, and Federal Supply Schedule contracts - and simplified acquisition procedures do not apply if the agency can meet its requirement from one of them.

VERIFIED AGAINST THE SOURCE

“Agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold (including purchases at or below the micro-purchase threshold). This policy does not apply if an agency can meet its requirement using- (1) Required sources of supply under part 8”

— FAR 13.003(a) Policy ↗

09Which one of the following is NOT a mandatory Government source for satisfying a supply requirement?

A commercial source. FAR 8.002(a)(1) lists the mandatory Government sources for supplies in priority order - inventories of the requiring agency, excess from other agencies, Federal Prison Industries, the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled, and wholesale supply sources. A commercial source is not on that list; it is used only after the mandatory sources cannot meet the need.

VERIFIED AGAINST THE SOURCE

“Except as required by 8.003, or as otherwise provided by law, agencies shall satisfy requirements for supplies and services from or through the mandatory government sources and publications listed below in descending order of priority: (1) Supplies. (i) Inventories of the requiring agency. (ii) Excess from other agencies (see subpart 8.1). (iii) Federal Prison Industries, Inc. (see subpart 8.6). (iv) Supplies which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7). (v) Wholesale supply sources”

— FAR 8.002(a) Priorities for use of mandatory Government sources ↗

10Which required source has priority for a services requirement?

Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled. FAR 8.002(a)(2) lists only that one mandatory source for services - the longer priority list (agency inventories, excess, Federal Prison Industries, wholesale supply sources) applies to supplies, not services.

VERIFIED AGAINST THE SOURCE

“(2) Services. Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7).”

— FAR 8.002(a)(2) Priorities for use of mandatory Government sources ↗

11You have been requested to buy 100 hospital beds for a humanitarian effort that must be delivered within 30 days for military airlift. What should you do first?

Obtain the beds from the Army hospital inventory - a required source. FAR 8.002(a)(1) puts inventories of the requiring agency and excess from other agencies ahead of every other source, and FAR 13.003(a) says the policy of using simplified acquisition procedures does not apply if the agency can meet its requirement from a required source under part 8.

VERIFIED AGAINST THE SOURCE

— FAR 13.003(a) Policy ↗

12Market research is performed for what purpose?

To determine whether commercial products, commercial services, or nondevelopmental items are available to meet the Government's needs, or could be modified to meet them.

VERIFIED AGAINST THE SOURCE

“Conduct market research to determine whether commercial products, commercial services, or nondevelopmental items are available that could meet the agency's requirements”

— FAR 12.101 Policy ↗

13True or false: a presolicitation conference is one technique used to conduct market research.

True. FAR 10.002(b)(2) lists conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process as one of the acceptable market research techniques.

VERIFIED AGAINST THE SOURCE

“Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.”

— FAR 10.002(b)(2)(viii) Procedures — market research techniques ↗

14Which one of the following market research results would support a commerciality determination?

The services are offered and sold competitively in substantial quantities in the commercial marketplace based on market prices. That is paragraph (2) of the FAR 2.101 definition of a commercial service.

VERIFIED AGAINST THE SOURCE

— FAR 2.101 Definitions — commercial service ↗

15A commercial product is a supply that:

Is sold, leased, or licensed - or offered for sale, lease, or license - to the general public, and is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes. Note: the FAR no longer uses the term "commercial item"; since 2021 it uses "commercial product" and "commercial service," defined separately at FAR 2.101.

VERIFIED AGAINST THE SOURCE

“Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and- (i) Has been sold, leased, or licensed to the general public; or (ii) Has been offered for sale, lease, or license to the general public”

— FAR 2.101 Definitions — commercial product ↗

16A nondevelopmental item is:

Any previously developed item of supply used exclusively for governmental purposes by a Federal agency, a State or local government, or a foreign government with which the United States has a mutual defense cooperation agreement - including one that needs only minor modification, or one not yet in use.

VERIFIED AGAINST THE SOURCE

“Nondevelopmental item means— (1) Any previously developed item of supply used exclusively for governmental purposes by a Federal agency, a State or local government, or a foreign government with which the United States has a mutual defense cooperation agreement; (2) Any item described in paragraph (1) of this definition that requires only minor modification or modifications of a type customarily available in the commercial marketplace in order to meet the requirements of the procuring department or agency”

— FAR 2.101 Definitions — nondevelopmental item ↗

17You have a requirement to purchase observation-surveillance drones. Market research reveals no commercially developed items that meet your specification, but a similar drone developed exclusively for the Army will satisfy the requirement. This type of item is:

A nondevelopmental item. Under FAR 2.101 a nondevelopmental item is a previously developed item of supply used exclusively for governmental purposes by a Federal agency, which is exactly what the Army drone is.

VERIFIED AGAINST THE SOURCE

— FAR 2.101 Definitions — nondevelopmental item ↗

18You are reviewing the requirements package for the purchase of automatic standby generators. Market research results identify multiple sources in the commercial marketplace that meet the essential physical characteristics for this requirement. The generators were previously procured using a military specification that includes restrictive conditions that are not justified. Which one of the following is correct regarding the policies for describing your agency's needs?

The requirement should be defined in terms that ensure it can be met by commercial products. FAR 11.002(a) requires agencies to state requirements in terms of function, performance, or essential physical characteristics, to define them so offerors can supply commercial products or services, and to include restrictive provisions only to the extent necessary to satisfy the agency's needs.

VERIFIED AGAINST THE SOURCE

“Define requirements in terms that enable and encourage offerors to supply commercial products or commercial services or, to the extent that commercial products suitable to meet the agency's needs are not available, nondevelopmental items, in response to the agency solicitations”

— FAR 11.002(a)(2)(ii) Policy — describing agency needs ↗

19You are reviewing the requirements package for the purchase of lab equipment for a health clinic that does not exceed the SAT. It must be compatible with the equipment currently being used at the clinic. This is essential in meeting the agency's needs. Market research identified only one manufacturer able to meet the requirement for compatible equipment. Which one of the following is correct regarding the policies for describing your agency's needs?

The basis for not providing for maximum competition must be documented in the contract file. FAR 11.105 allows a purchase description that is peculiar to one manufacturer only when the basis for not providing for maximum practicable competition is documented in the file under FAR 13.106-1(b), and FAR 13.106-3(b)(3)(i) requires a file statement explaining the absence of competition when only one source is solicited at or below the SAT.

VERIFIED AGAINST THE SOURCE

“Explaining the absence of competition (see 13.106-1 for brand name purchases) if only one source is solicited and the acquisition does not exceed the simplified acquisition threshold”

— FAR 13.106-3(b)(3)(i) Award and documentation ↗

20You have a requirement for a new contract for grounds maintenance at your military installation. The Base Commander has expressed the need for clearly stated performance objectives, as the current contractor performing the services is not meeting the Commander's expectations. Consistent with the order of precedence for requirements documents, which one of the following documents would be included in the new contract?

A performance work statement (PWS). FAR 11.101(a) puts performance-oriented documents such as a PWS or SOO second in the order of precedence, behind only documents mandated for use by law and ahead of detailed design-oriented documents.

VERIFIED AGAINST THE SOURCE

“Performance Work Statement (PWS) means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes.”

— FAR 2.101 Definitions — Performance Work Statement ↗

21A synopsis in the Governmentwide point of entry (GPE) is generally required for:

Proposed contract actions expected to exceed $25,000, unless one of the exceptions in FAR 5.202 applies.

VERIFIED AGAINST THE SOURCE

“For proposed contract actions expected to exceed $25,000, by synopsizing in the GPE (see 5.201).”

— FAR 5.101(a) Methods of disseminating information ↗

22You are the contracting officer for a requirement for a commercial product with an estimated value of $6,200. None of the exceptions in FAR 5.202 apply. Which one of the following correctly describes the requirement for publicizing this proposed contract action?

There is no requirement to publicize this action. FAR 5.101 requires a GPE synopsis only above $25,000 and a public display only for actions expected to exceed $20,000 but not exceed $25,000; $6,200 is below both.

VERIFIED AGAINST THE SOURCE

“For proposed contract actions expected to exceed $20,000, but not expected to exceed $25,000, by displaying in a public place, or by any appropriate electronic means, an unclassified notice of the solicitation or a copy of the solicitation satisfying the requirements of 5.207 (c). The notice must include a statement that all responsible sources may submit a response which, if timely received, must be considered by the agency.”

— FAR 5.101(a)(2) Methods of disseminating information ↗

23You are the contracting officer for a commercial services requirement with an estimated value of $2,600,000. None of the exceptions in FAR 5.202 apply. Which one of the following correctly describes the requirement for publicizing this proposed contract action?

Notice of the proposed action must be transmitted to the Governmentwide point of entry (GPE). FAR 5.101(a)(1) requires synopsis in the GPE for proposed contract actions expected to exceed $25,000, and FAR 13.105(a) makes that requirement apply to simplified acquisitions unless an exception in 5.202 applies.

VERIFIED AGAINST THE SOURCE

“The contracting officer must comply with the public display and synopsis requirements of 5.101 and 5.203 unless an exception in 5.202 applies.”

— FAR 13.105(a) Synopsis and posting requirements ↗

24You are the contracting officer for a construction requirement with an estimated value of $20,600. Access to the written solicitation will not be provided in the GPE, and none of the exceptions in FAR 5.202 apply. Which one of the following correctly describes the requirement for publicizing this proposed contract action?

An unclassified notice of the solicitation, or a copy of the solicitation, must be displayed in a public place or by appropriate electronic means. $20,600 falls in the FAR 5.101(a)(2) band - over $20,000 but not over $25,000 - and the two exemptions from public display (an oral solicitation, or providing access through the GPE) both fail here, because construction over $2,000 requires a written solicitation and GPE access is not being provided. Note: the two Quizlet sets for this course both recorded contradictory lines for this item, one saying "there is no requirement to publicize"; that line is not supported by FAR 5.101(a)(2), and the $20,000/$25,000 band has not changed.

VERIFIED AGAINST THE SOURCE

“The contracting officer shall issue a written solicitation for construction requirements exceeding $2,000.”

— FAR 13.106-1(d) Soliciting competition — written solicitations ↗

25What is the public announcement requirement for micro-purchases?

No formal announcement is required. The micro-purchase threshold is $15,000 (FAR 2.101), and FAR 5.101 triggers a publicizing requirement only for proposed contract actions expected to exceed $20,000, so a micro-purchase never reaches either the public-display or the GPE-synopsis threshold.

VERIFIED AGAINST THE SOURCE

“For proposed contract actions expected to exceed $25,000, by synopsizing in the GPE (see 5.201).”

— FAR 5.101(a) Methods of disseminating information ↗

26True or false: a synopsis and a solicitation may be combined when acquiring commercial products or commercial services.

True. FAR 13.105(b) allows a combined synopsis and solicitation for commercial products and commercial services, in which case a separate solicitation is not required, as long as enough information is included to let suppliers develop quotations or offers.

VERIFIED AGAINST THE SOURCE

“When acquiring commercial products or commercial services, or supplies or services procured in accordance with 12.102 (f)(1), the contracting officer may use a combined synopsis and solicitation. In these cases, a separate solicitation is not required. The contracting officer must include enough information to permit suppliers to develop quotations or offers.”

— FAR 13.105(b) Synopsis and posting requirements ↗

27You have a requirement for a purchase with an estimated value of $8,700. Which one of the following describes the competition requirement for this acquisition?

There is no requirement for competition if the price is considered reasonable. $8,700 is a micro-purchase, and FAR 13.203(a)(2) allows micro-purchases to be awarded without soliciting competitive quotations if the price is considered reasonable. (This answer does not change under the current FAR: the micro-purchase threshold rose from $10,000 to $15,000, so $8,700 is still a micro-purchase.)

VERIFIED AGAINST THE SOURCE

“Micro-purchases may be awarded without soliciting competitive quotations if the contracting officer or individual appointed in accordance with 1.603-3 (b) considers the price to be reasonable.”

— FAR 13.203(a)(2) Purchase guidelines ↗

28You have a requirement for a one-time purchase with an estimated value of $180,700. You are not required to synopsize this contract action. Which one of the following describes the competition requirement for this acquisition?

Quotes must be solicited from at least three sources. FAR 13.104(b) directs the contracting officer to consider solicitation of at least three sources to promote competition to the maximum extent practicable whenever the contract action is not required to be synopsized, and whenever practicable to request quotations from two sources not included in the previous solicitation.

VERIFIED AGAINST THE SOURCE

“If using simplified acquisition procedures and not providing access to the notice of proposed contract action and solicitation information through the Governmentwide point of entry (GPE), maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from sources within the local trade area. Unless the contract action requires synopsis pursuant to 5.101 and an exception under 5.202 is not applicable, consider solicitation of at least three sources to promote competition to the maximum extent practicable. Whenever practicable, request quotations or offers from two sources not included in the previous solicitation.”

— FAR 13.104(b) Promoting competition ↗

29You have a requirement for a one-time purchase with an estimated value of $18,700. This acquisition is not required to be synopsized and access to the solicitation will not be provided in the GPE. Which one of the following describes the competition requirement for this acquisition?

Competition is normally obtained by soliciting from sources within the local trade area. FAR 13.104(b) states that when simplified acquisition procedures are used and access to the notice and solicitation is not provided through the GPE, maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from sources within the local trade area.

VERIFIED AGAINST THE SOURCE

— FAR 13.104(b) Promoting competition ↗

30True or false: by soliciting two sources under simplified acquisition procedures, you have satisfied the requirement to obtain competition to the maximum extent practicable.

False. FAR 13.104(b) says to consider solicitation of at least three sources to promote competition to the maximum extent practicable, and whenever practicable to request quotations from two sources not included in the previous solicitation.

VERIFIED AGAINST THE SOURCE

— FAR 13.104(b) Promoting competition ↗

31True or false: for a new requirement for something you have bought before using SAP, where the action does not need to be synopsized and there are no standing price quotes, you should request quotations or offers from at least three sources and, if practicable, from two sources not included in the previous solicitation.

True. That is exactly what FAR 13.104(b) directs.

VERIFIED AGAINST THE SOURCE

— FAR 13.104(b) Promoting competition ↗

32Which method of soliciting quotes should the contracting officer use to the maximum extent practicable if (i) the acquisition does not exceed the SAT, (ii) the use of electronic commerce is neither practical nor cost-effective, and (iii) notice is not required under FAR 5.101?

Oral solicitation. FAR 13.106-1(c)(1) requires the contracting officer to solicit quotations orally to the maximum extent practicable when all three of those conditions are met.

VERIFIED AGAINST THE SOURCE

“The contracting officer shall solicit quotations orally to the maximum extent practicable, if- (i) The acquisition does not exceed the simplified acquisition threshold; (ii) Oral solicitation is more efficient than soliciting through available electronic commerce alternatives; and (iii) Notice is not required under 5.101.”

— FAR 13.106-1(c)(1) Soliciting competition — soliciting orally ↗

33Why are oral solicitations not normally used for requirements exceeding $25,000?

Because a Governmentwide point of entry notice is required for proposed contract actions expected to exceed $25,000 unless an exception in FAR 5.202 applies, and FAR 13.106-1(c)(2) states that an oral solicitation may not be practicable for contract actions exceeding $25,000 unless such an exception applies.

VERIFIED AGAINST THE SOURCE

“For proposed contract actions expected to exceed $25,000, by synopsizing in the GPE (see 5.201).”

— FAR 5.101(a) Methods of disseminating information ↗

34You have a requirement for a noncommercial purchase with an estimated value of $225,000. Notice of the proposed contract action is required, and no exceptions apply. Which one of the following solicitation methods would be most appropriate?

Electronic commerce. FAR 13.003(f) requires agencies to maximize the use of electronic commerce when practicable and cost-effective; an oral solicitation is ruled out because notice is required under FAR 5.101, and FAR 13.106-1(d) reserves paper solicitations for when obtaining electronic or oral quotations is uneconomical or impracticable.

VERIFIED AGAINST THE SOURCE

“If obtaining electronic or oral quotations is uneconomical or impracticable, the contracting officer should issue paper solicitations for contract actions likely to exceed $25,000.”

— FAR 13.106-1(d) Soliciting competition — written solicitations ↗

35You are the buyer for a construction requirement with an estimated value of $75,000. A notice of the proposed contract action is required. Which one of the following solicitation methods must be used?

A written solicitation. FAR 13.106-1(d) requires a written solicitation for construction requirements exceeding $2,000.

VERIFIED AGAINST THE SOURCE

“The contracting officer shall issue a written solicitation for construction requirements exceeding $2,000.”

— FAR 13.106-1(d) Soliciting competition — written solicitations ↗

36Which one of the following statements about solicitations using simplified acquisition procedures is correct?

Buyers are encouraged to use best value. FAR 13.106-1(a)(2) requires the contracting officer to notify quoters of the basis on which award will be made - price alone, or price and other factors - and expressly encourages contracting officers to use best value; solicitations are not required to state the relative importance of each evaluation factor.

VERIFIED AGAINST THE SOURCE

“When soliciting quotations or offers, the contracting officer shall notify potential quoters or offerors of the basis on which award will be made (price alone or price and other factors, e.g., past performance and quality). (ii) Contracting officers are encouraged to use best value. (iii) Solicitations are not required to state the relative importance assigned to each evaluation factor and subfactor, nor are they required to include subfactors.”

— FAR 13.106-1(a)(2) Soliciting competition — considerations ↗

37Which one of the following categories is NOT one that a contracting office maintaining additional vendor source files should use to identify the status of each source?

Educational institutions. FAR 13.102(a) lists six status categories - small business; small disadvantaged business; women-owned small business concern; HUBZone small business; service-disabled veteran-owned small business; and veteran-owned small business. Educational institutions are not among them.

VERIFIED AGAINST THE SOURCE

“Contracting officers should use the System for Award Management (see subpart 4.11) via https://www.sam.gov as their primary sources of vendor information. Offices maintaining additional vendor source files or listings should identify the status of each source (when the status is made known to the contracting office) in the following categories: (1) Small business. (2) Small disadvantaged business. (3) Women-owned small business concern, including economically disadvantaged women-owned small business concerns and women-owned small business concerns eligible under the Women-owned Small Business (WOSB) Program. (4) HUBZone small business. (5) Service-disabled veteran-owned small business. (6) Veteran-owned small business.”

— FAR 13.102(a) Source list ↗

38True or false: the status information in the System for Award Management and in additional vendor files maintained by the contracting office may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures.

True. That is exactly what FAR 13.102(b) provides.

VERIFIED AGAINST THE SOURCE

“The status information may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures.”

— FAR 13.102(b) Source list ↗

39You have a requirement for help desk support with an estimated value of $450,000. Market research shows there are numerous potential offerors that are competitive in terms of market prices, quality, and delivery. The list of potential offerors includes 6 small businesses and 4 large businesses. Which one of the following statements is correct?

The entire acquisition must be set aside exclusively for small business. The acquisition is over the simplified acquisition threshold, and with six competitive small businesses there is a reasonable expectation of offers from at least two responsible small business concerns at fair market prices, so FAR 19.502-2(b) makes a total set-aside mandatory.

VERIFIED AGAINST THE SOURCE

“The contracting officer shall set aside any acquisition over the simplified acquisition threshold for small business participation when there is a reasonable expectation that- (1) Offers will be obtained from at least two responsible small business concerns; and (2) Award will be made at fair market prices.”

— FAR 19.502-2(b) Total small business set-asides ↗

40You have a requirement for training services with an estimated value of $750,000. Market research shows there are numerous potential offerors that are competitive in terms of market prices, quality, and delivery. The list of potential offerors includes 5 small businesses and 3 large businesses. Which one of the following statements is true?

The entire acquisition must be set aside exclusively for small business. The rule of two in FAR 19.502-2(b) is met - five competitive small businesses means a reasonable expectation of offers from at least two responsible small business concerns at fair market prices - so the contracting officer shall set the whole acquisition aside.

VERIFIED AGAINST THE SOURCE

— FAR 19.502-2(b) Total small business set-asides ↗

41Which one of the following statements about the evaluation of quotations or offers using simplified acquisition procedures is true?

Contracting officers have the discretion to use the evaluation procedures prescribed in FAR parts 14 and 15. FAR 13.106-2(b)(1) gives the contracting officer broad discretion in fashioning suitable evaluation procedures and states that the parts 14 and 15 procedures are not mandatory; one or more, but not necessarily all, of them may be used. The competing answer - that FAR part 13 must be used in conjunction with part 14 or 15 - is wrong.

VERIFIED AGAINST THE SOURCE

“The contracting officer has broad discretion in fashioning suitable evaluation procedures. The procedures prescribed in parts 14 and 15 are not mandatory. At the contracting officer's discretion, one or more, but not necessarily all, of the evaluation procedures in part 14 or 15 may be used.”

— FAR 13.106-2(b)(1) Evaluation of quotations or offers ↗

42True or false: the contracting officer shall evaluate quotations or offers inclusive of transportation charges from the shipping point of the supplier to the delivery destination.

True. FAR 13.106-2(a)(1) requires the contracting officer to evaluate quotations or offers impartially and inclusive of transportation charges from the supplier's shipping point to the delivery destination.

VERIFIED AGAINST THE SOURCE

“The contracting officer shall evaluate quotations or offers - (i) In an impartial manner; and (ii) Inclusive of transportation charges from the shipping point of the supplier to the delivery destination.”

— FAR 13.106-2(a)(1) Evaluation of quotations or offers ↗

43Six quotes were received in response to your solicitation for new office equipment that utilized the lowest price technically acceptable source selection process. The quotes submitted by vendors A, B, and D were determined to be technically acceptable. Vendor A quoted a price of $146,500; Vendor B quoted a price of $128,250; and Vendor D quoted a price of $132,800. Which one of the following statements about the award decision is correct?

Vendor B is the apparent awardee and price reasonableness would be based on competition. Vendor B is the lowest-priced technically acceptable quote, and FAR 13.106-3(a)(1) says to base price reasonableness on competitive quotations whenever possible.

VERIFIED AGAINST THE SOURCE

“Before making award, the contracting officer must determine that the proposed price is fair and reasonable. (1) Whenever possible, base price reasonableness on competitive quotations or offers.”

— FAR 13.106-3(a) Award and documentation ↗

44Three quotes were received in response to your solicitation for training services, evaluated on a tradeoff between price and past performance: Vendor A - Unacceptable, $216,150; Vendor B - Acceptable, $248,500; Vendor C - Outstanding, $237,200. Which one of the following statements about the award decision is correct?

Vendor C is the apparent awardee and price reasonableness would be based on competition. Vendor A's unacceptable rating removes it from consideration, and Vendor C is both higher-rated and lower-priced than Vendor B, so no tradeoff is even necessary. Price reasonableness rests on the competition under FAR 13.106-3(a)(1).

VERIFIED AGAINST THE SOURCE

“If using price and other factors, ensure that quotations or offers can be evaluated in an efficient and minimally burdensome fashion. Formal evaluation plans and establishing a competitive range, conducting discussions, and scoring quotations or offers are not required. Contracting offices may conduct comparative evaluations of offers.”

— FAR 13.106-2(b)(3) Evaluation of quotations or offers ↗

45Only one quote was received in response to your competitive solicitation for Government-unique tool kits that utilized the lowest price technically acceptable source selection process. The quote, from Tool Warehouse, was determined to be technically acceptable and was for a price of $124,500. Which one of the following statements about the award decision is correct?

Award can be made to Tool Warehouse if the price can be determined reasonable using any reasonable basis. With only one response, FAR 13.106-3(a)(2) requires a statement of price reasonableness in the file, which may rest on market research, prices found reasonable on previous purchases, price lists or catalogs, a comparison with similar items, the contracting officer's personal knowledge, an independent Government estimate, or any other reasonable basis.

VERIFIED AGAINST THE SOURCE

“Comparison to an independent Government estimate; or (vii) Any other reasonable basis.”

— FAR 13.106-3(a)(2)(vii) Award and documentation ↗

46You are the contracting officer for a commercial product requirement with an estimated value of $415,000. Six quotations that meet the Government's requirement were received in response to the solicitation and there is no reason to believe the proposed prices are unreasonable. Which one of the following statements about the price reasonableness determination is most appropriate?

Comparison of the quotations will likely meet the requirement to obtain market research in support of the fair and reasonable determination. FAR 13.106-3(a)(1) directs the contracting officer to base price reasonableness on competitive quotations or offers whenever possible.

VERIFIED AGAINST THE SOURCE

“Before making award, the contracting officer must determine that the proposed price is fair and reasonable. (1) Whenever possible, base price reasonableness on competitive quotations or offers.”

— FAR 13.106-3(a) Award and documentation ↗

47You are the contracting officer for a requirement for commercial services with an estimated value of $780,000. Four quotations were received in response to the solicitation and market pricing is available. Which one of the following statements about the price reasonableness determination is most appropriate?

Market research must be conducted or obtained to support the fair and reasonable determination. FAR 10.001(a)(2)(ii) requires market research before soliciting offers for any acquisition with an estimated value in excess of the simplified acquisition threshold, and FAR 13.106-3(a) still requires the contracting officer to determine that the proposed price is fair and reasonable before award.

VERIFIED AGAINST THE SOURCE

“Before making award, the contracting officer must determine that the proposed price is fair and reasonable. (1) Whenever possible, base price reasonableness on competitive quotations or offers.”

— FAR 13.106-3(a) Award and documentation ↗

48You are the contracting officer for a commercial product requirement with an estimated value of $178,000. Only one quotation was received in response to the competitive solicitation, and the information obtained through market research is insufficient to determine the quoted price fair and reasonable. Which one of the following statements about the price reasonableness determination is most appropriate?

Recent purchase prices paid for the item under similar terms and conditions should be considered if they are still valid for comparison. When only one response is received, FAR 13.106-3(a)(2) lets the contracting officer base the required statement of price reasonableness on a comparison of the proposed price with prices found reasonable on previous purchases.

VERIFIED AGAINST THE SOURCE

“If only one response is received, include a statement of price reasonableness in the contract file. The contracting officer may base the statement on- (i) Market research; (ii) Comparison of the proposed price with prices found reasonable on previous purchases; (iii) Current price lists, catalogs, or advertisements.”

— FAR 13.106-3(a)(2) Award and documentation ↗

49Which one of the following is correct regarding documenting the award of a buy using simplified acquisition procedures?

Records of oral price quotations must be established to clearly reflect the appropriateness of the award decision. FAR 13.106-3(b)(1) says the contracting office should establish and maintain records of oral price quotations to reflect clearly the propriety of placing the order at the price paid with the supplier concerned - in most cases just the names of the suppliers contacted and the prices and terms each quoted.

VERIFIED AGAINST THE SOURCE

“Oral solicitations. The contracting office should establish and maintain records of oral price quotations in order to reflect clearly the propriety of placing the order at the price paid with the supplier concerned. In most cases, this will consist merely of showing the names of the suppliers contacted and the prices and other terms and conditions quoted by each.”

— FAR 13.106-3(b)(1) Award and documentation — oral solicitations ↗

50Which one of the following is NOT correct regarding documenting the award of a buy using simplified acquisition procedures?

"A statement of price reasonableness is not required when only one quote or offer is received" is the incorrect statement - and therefore the answer. FAR 13.106-3(a)(2) requires the opposite: if only one response is received, the contracting officer must include a statement of price reasonableness in the contract file.

VERIFIED AGAINST THE SOURCE

— FAR 13.106-3(a)(2) Award and documentation ↗

51You just made a purchase for services in the amount of $20,700. You used a written solicitation to solicit quotations from three local sources. Which one of the following statements is correct regarding providing notice to the unsuccessful vendors?

Notice to the unsuccessful vendors will only be given if requested. FAR 13.106-3(c) says that for acquisitions not exceeding the simplified acquisition threshold, where automatic notification is not provided through an electronic commerce method with widespread public notice, notification to unsuccessful suppliers is given only if requested or required by FAR 5.301.

VERIFIED AGAINST THE SOURCE

“For acquisitions that do not exceed the simplified acquisition threshold and for which automatic notification is not provided through an electronic commerce method that employs widespread electronic public notice, notification to unsuccessful suppliers shall be given only if requested or required by 5.301.”

— FAR 13.106-3(c) Award and documentation — notification ↗

52You just made an award for services in the amount of $235,200 based on price and past performance. One of the unsuccessful vendors has requested information on the award decision. Which one of the following describes the action you must take?

You must provide a brief explanation of the basis for the award decision. FAR 13.106-3(d) requires that when a supplier requests information on an award that was based on factors other than price alone, a brief explanation of the basis for the contract award decision be provided.

VERIFIED AGAINST THE SOURCE

“If a supplier requests information on an award that was based on factors other than price alone, a brief explanation of the basis for the contract award decision shall be provided (see 15.503 (b)(2)).”

— FAR 13.106-3(d) Award and documentation — request for information ↗

53You have a requirement for an individual purchase for supplies with an estimated value of $5,875. The supplies are not immediately available. Which one of the following simplified acquisition methods would be the most appropriate to use?

The Governmentwide commercial purchase card. It is the preferred method to purchase and to pay for micro-purchases under FAR 13.201(b), and because the supplies are not immediately available the SF 44 is ruled out - FAR 13.306(a)(2) allows the SF 44 only when the supplies or services are immediately available with one delivery and one payment.

VERIFIED AGAINST THE SOURCE

“The amount of the purchase is at or below the micro-purchase threshold, except for purchases made under unusual and compelling urgency or in support of contingency operations. Agencies may establish higher dollar limitations for specific activities or items. (2) The supplies or services are immediately available. (3) One delivery and one payment will be made.”

— FAR 13.306(a) SF 44, Purchase Order-Invoice-Voucher ↗

54You have a repetitive requirement for individual purchases of the same commercial service. The estimated value of the individual purchases range from $75,000 to $500,000. Which one of the following simplified acquisition methods would be the most appropriate to use?

A Blanket Purchase Agreement (BPA). FAR 13.303-1(a) describes a BPA as a simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources, and FAR 13.303-2(a) lists avoiding the writing of numerous purchase orders as one of the circumstances for establishing one.

VERIFIED AGAINST THE SOURCE

“The following are circumstances under which contracting officers may establish BPAs: (1) There is a wide variety of items in a broad class of supplies or services that are generally purchased, but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably.”

— FAR 13.303-2(a) Establishment of BPAs ↗

55Which one of the following would result in the establishment of a contract?

The supplier's written acceptance of the order. FAR 13.004(a) explains that a quotation is not an offer; the Government's order is the offer, and a contract is established when the supplier accepts it.

VERIFIED AGAINST THE SOURCE

“A quotation is not an offer and, consequently, cannot be accepted by the Government to form a binding contract. Therefore, issuance by the Government of an order in response to a supplier's quotation does not establish a contract. The order is an offer by the Government to the supplier to buy certain supplies or services upon specified terms and conditions. A contract is established when the supplier accepts the offer.”

— FAR 13.004(a) Legal effect of quotations ↗

56You have just been informed that a purchase order you recently awarded for commercial supplies is no longer needed and must be cancelled. The order was not accepted in writing by the contractor. Which one of the following statements is true?

The purchase order is considered cancelled if the contractor accepts the Government's written cancellation and does not claim costs were incurred. FAR 13.302-4(b) requires the contracting officer to notify the contractor in writing and request written acceptance of the cancellation; if the contractor accepts and claims no costs from beginning performance, no further action is required.

VERIFIED AGAINST THE SOURCE

“If a purchase order that has not been accepted in writing by the contractor is to be canceled, the contracting officer shall notify the contractor in writing that the purchase order has been canceled, request the contractor's written acceptance of the cancellation, and proceed as follows: (1) If the contractor accepts the cancellation and does not claim that costs were incurred as a result of beginning performance under the purchase order, no further action is required (i.e., the purchase order shall be considered canceled).”

— FAR 13.302-4(b) Termination or cancellation of purchase orders ↗

57The contracting officer can terminate a purchase order for the convenience of the Government when:

Such a termination would be in the best interests of the Government. FAR 12.403(b) states that the contracting officer should exercise the Government's right to terminate a contract for commercial products or commercial services, either for convenience or for cause, only when such a termination would be in the best interests of the Government.

VERIFIED AGAINST THE SOURCE

“The contracting officer should exercise the Government's right to terminate a contract for commercial products or commercial services either for convenience or for cause only when such a termination would be in the best interests of the Government. The contracting officer should consult with counsel prior to terminating for cause.”

— FAR 12.403(b) Termination — policy ↗

58You are the contracting officer for a noncommercial supply contract valued at $155,600. Which one of the following actions would be executed using a bilateral modification?

Making a negotiated equitable adjustment. FAR 43.103(a) lists bilateral modifications - signed by both the contractor and the contracting officer - as the vehicle for negotiated equitable adjustments resulting from a change order, definitizing letter contracts, and reflecting other agreements of the parties.

VERIFIED AGAINST THE SOURCE

“Bilateral. A bilateral modification (supplemental agreement) is a contract modification that is signed by the contractor and the contracting officer. Bilateral modifications are used to- (1) Make negotiated equitable adjustments resulting from the issuance of a change order; (2) Definitize letter contracts; and (3) Reflect other agreements of the parties modifying the terms of contracts.”

— FAR 43.103(a) Types of contract modifications — bilateral ↗

59You are the contracting officer for a commercial services contract that contains options. You send the preliminary notice of your intent to extend the contract within the timeframe outlined in the options clause. Which one of the following statements is correct?

You may exercise the option using a unilateral modification. FAR 43.103(b) lists changes authorized by clauses other than a changes clause - the Options clause is named explicitly - among the actions taken by a modification signed only by the contracting officer, and FAR 17.207(a) requires only that the contracting officer give the contractor written notice within the time period specified in the contract.

VERIFIED AGAINST THE SOURCE

“Unilateral. A unilateral modification is a contract modification that is signed only by the contracting officer. Unilateral modifications are used, for example, to- (1) Make administrative changes; (2) Issue change orders; (3) Make changes authorized by clauses other than a changes clause (e.g., Property clause, Options clause, or Suspension of Work clause); and (4) Issue termination notices.”

— FAR 43.103(b) Types of contract modifications — unilateral ↗

60You are the contracting officer for a commercial services contract valued at $3,750,000. Which one of the following statements regarding changes to the contract is true?

Any change to the contract terms must be made by written agreement of the parties. The Changes paragraph of FAR 52.212-4, the clause used for commercial products and commercial services, permits changes in the terms and conditions only by written agreement of the parties - unlike a noncommercial contract, there is no unilateral change-order authority.

VERIFIED AGAINST THE SOURCE

“Changes. Changes in the terms and conditions of this contract may be made only by written agreement of the parties.”

— FAR 52.212-4(c) Contract Terms and Conditions — Commercial Products and Commercial Services ↗

61You are the contracting officer for a firm-fixed-price purchase order for noncommercial supplies that includes the clause at FAR 52.213-4. One week after delivery and acceptance of the items, the end user complains that the goods are not functioning as expected. You investigate and determine that the items are not fully compliant with the specification in the contract. Who would bear the cost of correcting the nonconforming supplies that were accepted by the Government?

The contractor. The Inspection/Acceptance paragraph of FAR 52.213-4 lets the Government require repair or replacement of nonconforming supplies at no increase in contract price, provided it exercises those post-acceptance rights within a reasonable period after the defect was discovered or should have been discovered and before any substantial change in the condition of the item.

VERIFIED AGAINST THE SOURCE

“Inspection/Acceptance. The Contractor shall tender for acceptance only those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. The Government must exercise its postacceptance rights-”

— FAR 52.213-4(d) Terms and Conditions — Simplified Acquisitions (Other Than Commercial Products and Commercial Services) ↗

62You are the contracting officer for a firm-fixed-price purchase order for commercial services with a value of $1,425,000. Your customer has notified you that one of the contractually required reports accepted by the Government was submitted five days late. You investigate and verify that the report was submitted late. Which one of the following statements regarding the nonconforming performance is FALSE?

"The Government must pay for the reperformance of the nonconforming service because the report was accepted" is the false statement. Under the Inspection/Acceptance paragraph of FAR 52.212-4 the Government may require reperformance of nonconforming services at no increase in contract price, and if reperformance will not correct the defect or is not possible it may seek an equitable price reduction or other consideration.

VERIFIED AGAINST THE SOURCE

“Inspection/Acceptance. The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. If repair/replacement or reperformance will not correct the defects or is not possible, the Government may seek an equitable price reduction or adequate consideration for acceptance of nonconforming supplies or services.”

— FAR 52.212-4(a) Contract Terms and Conditions — Commercial Products and Commercial Services ↗

63True or false: when buying a commercial product, an in-process inspection of the product need not be consistent with commercial practice.

False. FAR 12.208 requires that any in-process inspection by the Government be conducted in a manner consistent with commercial practice, and that contracts for commercial products otherwise rely on the contractor's existing quality assurance systems unless customary market practice includes in-process inspection.

VERIFIED AGAINST THE SOURCE

“Contracts for commercial products shall rely on contractors' existing quality assurance systems as a substitute for Government inspection and testing before tender for acceptance unless customary market practices for the commercial product being acquired include in-process inspection. Any in-process inspection by the Government shall be conducted in a manner consistent with commercial practice.”

— FAR 12.208 Contract quality assurance ↗

64The implied warranty of merchantability means that an item is:

Reasonably fit for the ordinary purposes for which such items are used. FAR 12.404(a)(1) adds that the items must be of at least average, fair or medium-grade quality and comparable in quality to those that will pass without objection in the trade or market for items of the same description.

VERIFIED AGAINST THE SOURCE

“The implied warranty of merchantability provides that an item is reasonably fit for the ordinary purposes for which such items are used. The items must be of at least average, fair or medium-grade quality and must be comparable in quality to those that will pass without objection in the trade or market for items of the same description.”

— FAR 12.404(a)(1) Warranties — implied warranties ↗

65In acquisitions for commercial products, the terms of an express warranty should be:

Consistent with customary commercial practice. FAR 12.404(b) requires contracting officers to take advantage of commercial warranties and, to the maximum extent practicable, to require offerors to give the Government at least the same warranty terms - including extended warranties - that they offer the general public in customary commercial practice.

VERIFIED AGAINST THE SOURCE

“Express warranties. 41 U.S.C. 3307(e)(5)(B) requires contracting officers to take advantage of commercial warranties. To the maximum extent practicable, solicitations for commercial products shall require offerors to offer the Government at least the same warranty terms, including offers of extended warranties, offered to the general public in customary commercial practice.”

— FAR 12.404(b) Warranties — express warranties ↗

66You are the contracting officer for a firm-fixed-price supply contract valued at $195,400. Which one of the following statements about contract closeout is correct?

The contract is considered closed once you receive evidence of receipt of property and final payment. FAR 4.804-1(a)(1) sets that standard for files for contracts using simplified acquisition procedures, unless agency regulations specify otherwise.

VERIFIED AGAINST THE SOURCE

“Files for contracts using simplified acquisition procedures should be considered closed when the contracting officer receives evidence of receipt of property and final payment, unless otherwise specified by agency regulations.”

— FAR 4.804-1(a)(1) Closeout by the office administering the contract ↗

67You are the contracting officer for a firm-fixed-price services contract valued at $105,975. Which one of the following statements about contract closeout is correct?

The contract is considered closed once you have received evidence of receipt of the services and final payment. The contract is under the simplified acquisition threshold, so FAR 4.804-1(a)(1) applies; note the FAR states the standard as "evidence of receipt of property and final payment."

VERIFIED AGAINST THE SOURCE

— FAR 4.804-1(a)(1) Closeout by the office administering the contract ↗

68You are the contracting officer for a firm-fixed-price commercial services contract that was partially terminated for convenience. You are in the process of negotiating the termination settlement. All services that were not terminated were successfully performed. Which one of the following statements about contract closeout is correct?

The contract file cannot be closed at this time. FAR 4.804-1(c)(2) bars closing a contract file if, in the case of a termination, all termination actions have not been completed - and the settlement is still being negotiated.

VERIFIED AGAINST THE SOURCE

“A contract file shall not be closed if- (1) The contract is in litigation or under appeal; or (2) In the case of a termination, all termination actions have not been completed.”

— FAR 4.804-1(c) Closeout by the office administering the contract ↗

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