CLC 222 CONTRACTING STUDY EXAM GUIDE QUESTIONS
AND ANSWERS SURE A+
✔✔acquisition plan answers what questions - ✔✔1) what are we buying
2) does anyone make what we need?
3) how much are we willing to pay?
4) how will we go about getting bids?
5) how will we choose the vendor?
6) how will we guarantee we get what we paid for?
7) does it meet the requirements?
✔✔SON document - ✔✔Strategic Statement of Need document
✔✔market research planning - ✔✔1) potential solutions in marketplace and govt
2) availability of commercial services
3) current market price
4) terms and conditions
5) industry standards
6) specific requirements
7) potential risks
✔✔technical skills for market research - ✔✔comparative analysis, quantitative data,
qualitative data, financial analysis
✔✔performance based acquisition strategy - ✔✔at least 40% performance indicator
✔✔Statement of Work (SOW) - ✔✔1) describes work to be performed or services
rendered
2) defines responsibilities of gov't and contractor
3) provides objectives measure of completed work
✔✔Performance Work Statement (PWS) - ✔✔1) emphasizes outcomes
2) usually, simplified contract administration
3) may include positive/negative incentives
4) shifts responsibilities for achieving acceptable performance to the contractor
✔✔technical requirements must be SMART, which stands for - ✔✔specific, measurable,
attainable, relevant, timely
✔✔recurring requirements - ✔✔repetitive purchase of the same product or service over
a set time period
✔✔types of contracts - ✔✔1) fixed-price (FFP)
2) cost-reimbursement (CPFF)
3) incentive
, 4) indefinite-delivery
5) time and materials, labor-hour, and letter
✔✔FFP key features - ✔✔- price wont change with contractors cost increase
- risk and responsibility for costs mainly on contractor
- gov't contract administration minimized
- preferred contract type
✔✔FFP contract is best used when - ✔✔- work can be clearly defined
- reasonable price comparisons
- realistic estimates are possible
- stable environment/requirements
✔✔cost plus fixed fee (CPFF) contract key features - ✔✔- fee is negotiated and fixed
- effort poses too great a risk
- limitations are imposed
✔✔incentive contracts key features - ✔✔- used fixed-price contracts are not appropriate
- incentive results in lower costs
- incentive results in improved delivery or technical performance
✔✔indefinite-quantity contracts key features - ✔✔- minimal gov't levels maintained
- flexibility in quantities and schedule
- limit gov't obligation
✔✔time and materials (T&M) contracts key features - ✔✔- direct labor hrs at specified
rate
- materials at actual cost
- gov't surveillance necessary
✔✔T&M contracts is best used when - ✔✔-type of labor is known
-gov't assumes risk
-labor hr is a variation
✔✔basic order agreement (BOA) - ✔✔- terms and clauses for future contracts
- method for pricing, issuing, delivering
- expedite contracting for uncertain requirements when other factors are known
✔✔blanket purchase agreement (BPA) - ✔✔- simplified method of filling anticipated
repetitive needs
- usually local supplier
- may establish more than 1 to maintain competitive price
✔✔2 most common contract types - ✔✔FFP and T&M
AND ANSWERS SURE A+
✔✔acquisition plan answers what questions - ✔✔1) what are we buying
2) does anyone make what we need?
3) how much are we willing to pay?
4) how will we go about getting bids?
5) how will we choose the vendor?
6) how will we guarantee we get what we paid for?
7) does it meet the requirements?
✔✔SON document - ✔✔Strategic Statement of Need document
✔✔market research planning - ✔✔1) potential solutions in marketplace and govt
2) availability of commercial services
3) current market price
4) terms and conditions
5) industry standards
6) specific requirements
7) potential risks
✔✔technical skills for market research - ✔✔comparative analysis, quantitative data,
qualitative data, financial analysis
✔✔performance based acquisition strategy - ✔✔at least 40% performance indicator
✔✔Statement of Work (SOW) - ✔✔1) describes work to be performed or services
rendered
2) defines responsibilities of gov't and contractor
3) provides objectives measure of completed work
✔✔Performance Work Statement (PWS) - ✔✔1) emphasizes outcomes
2) usually, simplified contract administration
3) may include positive/negative incentives
4) shifts responsibilities for achieving acceptable performance to the contractor
✔✔technical requirements must be SMART, which stands for - ✔✔specific, measurable,
attainable, relevant, timely
✔✔recurring requirements - ✔✔repetitive purchase of the same product or service over
a set time period
✔✔types of contracts - ✔✔1) fixed-price (FFP)
2) cost-reimbursement (CPFF)
3) incentive
, 4) indefinite-delivery
5) time and materials, labor-hour, and letter
✔✔FFP key features - ✔✔- price wont change with contractors cost increase
- risk and responsibility for costs mainly on contractor
- gov't contract administration minimized
- preferred contract type
✔✔FFP contract is best used when - ✔✔- work can be clearly defined
- reasonable price comparisons
- realistic estimates are possible
- stable environment/requirements
✔✔cost plus fixed fee (CPFF) contract key features - ✔✔- fee is negotiated and fixed
- effort poses too great a risk
- limitations are imposed
✔✔incentive contracts key features - ✔✔- used fixed-price contracts are not appropriate
- incentive results in lower costs
- incentive results in improved delivery or technical performance
✔✔indefinite-quantity contracts key features - ✔✔- minimal gov't levels maintained
- flexibility in quantities and schedule
- limit gov't obligation
✔✔time and materials (T&M) contracts key features - ✔✔- direct labor hrs at specified
rate
- materials at actual cost
- gov't surveillance necessary
✔✔T&M contracts is best used when - ✔✔-type of labor is known
-gov't assumes risk
-labor hr is a variation
✔✔basic order agreement (BOA) - ✔✔- terms and clauses for future contracts
- method for pricing, issuing, delivering
- expedite contracting for uncertain requirements when other factors are known
✔✔blanket purchase agreement (BPA) - ✔✔- simplified method of filling anticipated
repetitive needs
- usually local supplier
- may establish more than 1 to maintain competitive price
✔✔2 most common contract types - ✔✔FFP and T&M
