CLC 005 Simplified Acquisition Procedures - Section 890

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CLC 005 Simplified Acquisition Procedures - Section 890 10/18/17 Simplified Acquisition Procedures (SAP) • Contracting for supplies & services • The purpose of SAP is to: o Reduce admi... nistrative costs o Improve opportunities for small, small disadvantaged, women-owned, veteran-owned, HUBZone, & service-disabled veteran -owned small business (SDVODB) concerns to obtain a fair proportion of Government contracts • Promote efficiency & economy in contracting • Avoid unnecessary burdens for agencies & contractors Policy • Agencies shall use SAP to the maximum extent practicable for all purchases of supplies or ser- vices not exceeding the simplified acquisition threshold (SAT) of $150,000. o Note: FAR Subpart 13.5 authorizes the Simplified Procedures for Certain Commercial items in effect that raises the threshold for use of SAP for commercial items to $7 mil- lion. • YOU ARE NOT AUTHORIZED to break down, or "split," requirements that are above the micro or SAP threshold merely to: o Permit use of simplified acquisition procedures; or o Avoid any requirement that applies to purchases exceeding the micro-purchase threshold. • See FAR 13.003(c)(2) Legal Effect of a Quotation • One of the major differences between SAP & other acquisition methods is that the quotation is not an offer, and cannot be simply accepted by the Government to form a binding contract. • Issuance by the Government of an order in response to a supplier's quotation does not in itself es- tablish a contract. A contract is established when the supplier accepts the order. Methods of SAP • As contracting professionals, Federal Acquisition Regulation (FAR) Part 13, Simplified Acquisi- tion Procedures (SAP), encourages us to use innovative approaches to the maximum extent prac- ticable when awarding contracts. It is our responsibility to determine which acquisition method will best meet our customers' mission requirements. Governmentwide Commercial Purchase Card • Government-wide commercial purchase card (GWPC) is the preferred method to purchase & to pay for micro purchases valued no more than the micro purchase threshold. • Micro-purchase threshold( s) and exceptions: o $3,500 for supplies and commodities o $2,000 for construction projects subject to the Construction Wage Requirements Statute o $2,500 for acquisitions of services subject to the Service Contract Labor Standards o For acquisition of supplies/services that, as determined by the head of the agency, are to be used to support contingency operations/to facilitate defense against/recovery from nu- clear, biological, chemical/radiological attack as described in FAR 13.201(g)(l), except for construction subject to construction wage requirements: ▪ $20,000 for any contract to be awarded & performed/purchase to be made inside the US ▪ $30,000 for any contract to be awarded & performed/purchase to be made out- side the US • Because micro-purchases do not require provisions/clauses, they do not require a solicita- tion. You can use the GWPC to: o Make purchases under $3,500 o Place a task/delivery order if authorized by a contract, basic ordering agreement, or blan- ket purchase agreement o Make payments against a contract (if acceptable to the contractor) • Agency procedures can encourage use of the GWPC in higher dollar amounts by contract- ing officers (Ko’s) to place orders & pay for purchases against contracts established under FAR Part 8, Required Sources of Supply and Services, procedures • When using the GWPC, be sure to distribute your purchases among qualified suppliers. • You can also award w/o soliciting competition, if you determine the price to be reasonable. Call Against Blanket Purchase Agreements • A blanket purchase agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies/services by establishing "charge accounts" w/qualified sources of supply • You can prepare a BPA for a wide variety of items that are generally purchased, if the exact items, quantities, & delivery requirements are not known in advance • After a BPA is established, you can place "calls" to order items from the BPAs. • Individual purchases off of BPAs cannot exceed the simplified acquisition threshold (SAT) of $150,000, except: o commercial items under the simplified procedures for certain commercial items ($7 million) o includes calls against General Service Administration (GSA) Federal Supply Schedules • DFARS authorizes purchases for subsistence (food) up to any dollar value • A BPA contains a list of individuals authorized to place calls • Also includes the dollar limitation authorized per call o before placing a call, be sure you are authorized to place calls against it • BPA does not justify purchasing from only one source/avoiding small business set-asides o Should compete called against the BPA among vendors that have BPAs for items pur- chasing • If a purchase is greater than the micro-purchase threshold & there is an insufficient number of BPAs to ensure maximum practicable competition, you must solicit quotations from other sources & make the purchase as appropriate (FAR13.303-5(d)) BPA Documentation • If you issue a verbal call against a BPA, document the following: o Date of the call o Supplier information o Vendor point of contact (POC) who took the call o The specific items ordered o The price paid o Requested delivery date o Accounting & appropriation information ( can also be documented by filing the purchase request) • You also need to file the vendor's sales document, deliver slip, or invoice in the BPA folder. Purchase Orders (PO) • If a BPA/GSA Federal Supply Schedule cannot provide the supplies/services your organization needs, & the value of the items is within the SAT ($150,000, or $7 million under the simplified procedures for certain commercial items), you should then consider issuing a request for quota- tion (RFQ) to solicit quotes & issue one or more purchase orders (PO). • A PO is an offer by the Government to buy supplies/services under specified terms & conditions using SAP. • If the requirement is not complex, a PO is the preferred contracting instrument. Unpriced POs • Cannot establish the price at the time the order is issued • May be used only when it is impracticable for you to obtain pricing in advance of issuing the PO, & the purchase is for: o Repairs to equipment which require disassembly to determine the nature & extent of re- pairs o Materials that are available from only one source, the cost of these cannot readily be es- tablished o Prices for supplies/services are known to be competitive, but exact prices are not known (e.g., miscellaneous repair parts, maintenance agreements) Imprest Fund • A petty cash fund that can be replenished to an authorized ceiling limit as funds are spent • Has diminished w/ the availability of alternate means of payment for small amounts (e.g. elec- tronic funds xfer (EFT)) o Emergency payments to individuals for National Security/law enforcement actions or overseas in economically undeveloped areas • FAR authorizes use of imprest funds for purchase where: o transaction does not exceed $500 or any other limits authorized by the agency head o use of the fund is considered to be advantageous to the Government o use of the fund complies with any additional regulations established by agencies • DoD does not support the use of cash payments from imprest funds. • Policy is based, in part, on the mandatory electronic funds transfer (EFT) requirements of the Debt Collection Improvement Act of 1996. • Commanders of installations & activities w/contracting authority can be granted authority to es- tablish imprest funds on a limited basis Standard Form (SF) 44 • a pocket-sized PO form designed primarily for on-the-spot, over-the counter purchases of sup- plies & non-personal services while away from the purchasing office or at isolated activities. • multi-purpose form that can be used as purchase order, receiving report, invoice, & public voucher • May be used if all of the following conditions are met: o The amount of the purchase is not over the micro purchase threshold of $3,500 ▪ Exceptions to this condition from DFARS 213.306 include aviation fuels, over- seas contingency operations,& certain intelligence activities o Supplies/services are immediately available o One delivery & one payment will be made o use is determined to be more economical & efficient than use of other simplified acquisi- tion procedures • Most common use of the SF 44 is during military contingency operations overseas, where the form can be used for purchases up to the SAT • SF 44 issuance record must show the name of the person to whom the form was issued, the oper- ating activity task code, purchase limitation for the form, date issued, & date returned by the ven- dor • Form must include info such as preprinted order #, date of the order, name & address of the payee, name & address of the receiving organization Simplified Acquisition Threshold The Simplified Acquisition Threshold (SAT) means $150,000, except for acquisitions of supplies or ser- vices that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, the term means: Third Party Draft Instruments • Examples are bank checks • Provide an alternative to cash & US Treasury checks when the GWPC is not practical • Eliminates need for cash on hand for imprest fund tranx & gives issuing activities the flexibility to issue low-volume/low-dollar value payments on site • Purchases using either third party checks (which are not the same as convenience checks associ- ated w/ the purchase card program) or imprest funds shall be based upon approved purchase re- quests • Purchases are typically placed verbally & w/o soliciting competition if prices are considered rea- sonable • Limit on purchases using third party drafts is $2,2500 • FAR 13.305 KNOWLEDGE REVIEW 1. Your command group consisting of eight individuals from your organization is planning a two- day off-site meeting in Washington, DC. Lodging expenses are being paid via individual's travel cards; but a meeting space is also required for the group. The price of the meeting space is $225 per day (no refreshments included). As the procuring official, how would you proceed? Use the GWPC as the method of purchase 2. You received a purchase request from the dining facility, requesting that you place a call against an existing BPA with a specified food vendor for various condiments (mustard, relish, etc.). The total value is $26,000. What is the first task you should complete? Determine if there are other BPAs for these food items. 3. You just placed a verbal call against a BPA for the purchase of office supplies. Must you include accounting and appropriation data in your documentation for the call? Yes 4. Repair of a building's air conditioning unit during the cooling season is a requirement that may be a good candidate for procurement with an unpriced purchase order. True 5. As a contingency contracting officer, you have deployed to a newly established contingency location in East Timor. You have been requested to purchase 305 wireless communications headsets locally at $295 per unit for immediate use. What contract instrument would you most likely use to complete this acquisition? SF44 Solicitation Procedures • A solicitation is any request to submit offers/quotations to the Government • Under simplified acquisition procedures (SAP) may require submission of either a quotation/an offer • Primary solicitation used under SAP is the request for quotation (RFQ) • As a KO, we’re responsible for: o Choosing the appropriate method of solicitation (electronic commerce, verbal/oral, or written), o Determining the time to issue/ release the solicitation, and o Establishing the time frame for the receipt of quotations/offers • We would also need to identify & include the appropriate clauses & provisions in the solicitation • Can use the solicitation methods of SAP if the total dollar value of the requirement is within the simplified acquisition threshold (SAT) of $150,000 for non-commercial items or SAP if not ex- ceeding $7 million for certain commercial items (FAR 13.5) • This threshold is raised to $13M for a declared contingency operation or to facilitate the de- fense against or recovery from nuclear, biological, chemical, or radiological attack. Preparation of the RFQ • FAR Part 12 (Acquisition of Commercial Items) requires use of Standard Form (SF) 1449, Solici- tation/ Contract/Order for Commercial Items, if: o The acquisition is expected to exceed $150,000 o A paper solicitation/contract is being issued o You are not issuing a combined synopsis/ solicitation • The SF 1449 is encouraged for commercial acquisitions below $150,000, but its use is not mandatory. • Complete the following forms when preparing your RFQ, except when you determine that the quote should be solicited via electronic means (such as your agency's website) or verbally: o SF 1449 for commercial items o SF 18. Request for Quotation (for non-commercial or "DODunique" items) o An agency form/ automated format if it contains essentially the same information as the SF 18 • If it becomes necessary to issue an amendment to your solicitation, use the SF 30, Amendment of Solicitation/ Modification of Contract. • The instructions for use of this form are on its reverse side. • According to FAR, you should do the following when preparing an RFQ: o Include related items or spare parts in one solicitation, & specify whether the award will be on an "all or none" or "multiple award" basis o Attempt to obtain trade & prompt payment discounts o Consolidate purchases to the maximum degree practical (but not simply to avoid require- ments stemming from statutory thresholds) o Determine if the vendor can provide quantity discounts o Consider including options if you can obtain better prices & more competition o Specify free on board (FOB) destination terms (e.g. price includes delivery) for supplies within the U.S., unless there are valid reasons not to do so Provisions & Clauses • FAR Part 13, SAP, requires you to incorporate provisions & clauses by reference to the maximum extent practicable in RFQ solicitations & in subsequent awards, provided you notify contractors where they can access the provisions & clauses electronically • Meant to streamline the procurement process when using SAP • Acquisition of commercial items shall, to the maximum extent practicable, include only those clauses: o Required to implement provisions of law or executive orders applicable to the acquisition of commercial items o Determined to be consistent with customary commercial practice • The requirements for inclusion of or amending the provisions and clauses are contained at FAR Subpart 12.3, Solicitation Provisions & Contract Clauses for the Acquisition of Commercial Items • When soliciting quotations, you should notify potential quotes of the basis on which award will be made, such as "price alone" or "price, past performance, and rated quality" • Federal contracting professionals are encouraged to use best value techniques to the maximum extent practicable • Solicitations using SAP are not required to state the relative importance assigned to each evalua- tion factor and subfactor, nor are they required to include subfactors • If you do not specify the relative importance of each factor, they are presumed to be of equal im- portance when determining the award Issuing the RFQ • You can issue an RFQ using either electronic commerce or "snail mail. • Paper methods are becoming rare • KO should consider the circumstances of the individual acquisition -its complexity, commercial- ity, availability, and urgency when determining which method to use to issue the RFQ and when establishing the solicitation response time • The FAR requires the use of electronic commerce if it is more efficient or economical. o Drawings & lengthy specifications can be provided off-line on hard copy or by using other appropriate means Combined Synopsis/Solicitation • Another method used to issue solicitation for commercial items • Provides a streamlined solicitation of offers/quotes for commercial items • Can reduce the time required to solicit & award contracts for acquisition of commercial items • Procedure combines the synopsis & the issuance of the solicitation into a single electronic docu- ment, eliminating the need to synopsize the requirement on the Gov’t point-of-entry (GPE) web- site, FedBizOpps • SF 1449 commercial item solicitation form not required Time Limits • All publicizing & response times are calculated based on the date of publication of the notice pro- posed contract action on the GPE • Notice must be published at least 15 days before issuance of a solicitation, except in the case of commercial items where the contracting officer may: o Establish a shorter period for issuance of the solicitation based on the complexity, com- merciality, availability, & urgency of the requirement o Use the combined synopsis & solicitation procedure previously discussed • KO’s must disseminate information on proposed contract actions by synopsizing in the GPE any proposed contract action expected to exceed $25,000 • Proposed actions w/an expected value b/w $15,000 & $25,000 need to be publicized in a “public place” or using an appropriate electronic means • Need to establish a solicitation response time that will afford potential quoters a reasonable op- portunity to respond to each proposed contract action, regardless of the method of publicizing or the type of item • Unless you have evidence to the contrary, you may presume the notice has been published one day after transmission to the GPE • if you discover that a particular notice has not been published within the presumed timeframes, you should consider whether the date for receipt of quotes can be extended or if circumstances are sufficiently compelling to justify proceeding with the proposed contract action under the authority of urgent and compelling circumstances Oral Solicitations • If electronic commerce is uneconomical or impracticable, you can solicit quotations verbally • Conditions are: o The acquisition does not exceed the SAT ; o Oral solicitation is more efficient than soliciting through available electronic commerce alternatives; & o A synopsis is not required or an exception applies ▪ This may rule out oral solicitations for procurements above $25,000 • must establish and maintain records for oral price quotations so you can demonstrate the propri- ety of placing the order at the price paid with the supplier concerned • consist merely of showing the names of the suppliers contacted and the prices and other terms and conditions • Handwritten notations on the purchase request may be used quoted by each KNOWLEDGE REVIEW 1. You received a purchase request for one Telephone Test Set. An approved source's item is listed on the Qualified Products List. The estimated cost is $34,440. You must include provisions and clauses in your RFQ 2. You receive a purchase request for nine octagon gazebos, 10' x 10', for use at your installation's picnic areas. The estimated total price is $33,822. You can use a combined synopsis/ solicitation because it is a commercial item 3. You receive a purchase request to hire temporary workers to perform administrative tasks at your installation. The request involves part-time work with an estimated total cost of $32,000. You should issue an RFQ and must synopsize the requirement 4. You receive a phone call from the environmental office on your installation stating that a large amount of fuel has leaked from a tank on base. Although the leak has been contained, you are told that a crew must be on the site within two hours to empty the remaining fuel from the tank and prevent additional leakage. You are informed that the estimated cost of the procedure is $30,000. You can issue an oral solicitation because it is an emergency Handling Quotes Timeliness • A quote is considered late if is received past the date specified by the solicitation • If received via fax or e-mail any portion of a quote that is unreadable, immediately notify the quoter & permit him/ her to resubmit the unreadable portion of the quote • The method and time for resubmission is prescribed by KO after consultation w/ the quoter & documented in the file • Re-submission shall be considered as if it was received at the date & time of the original unread- able submission Verification of Quotes • Ensure quotes recv’d are accurate, important to consider whether/not valid • Involves contacting & making the vendor aware of the area of concern & then asking for verifica- tion of the quote • If a mistake, ask vendor to provide corrected quote • Better to verify & correct problem b/f issuing purchase order • May be necessary to delay an award until the verification process has been completed Examples Requiring Verification • If a quote is received that is significantly lower than the independent government estimate • If a quote is received that is significantly lower than the other quotes received • If the numbers provided in the quote don't add up properly • If the terms and conditions seem unusually generous Verification Steps • If you have questions about a quote, it is important to follow good business procedures • Ensure that the rights of each vendor are preserved • Steps: 1. Notify the vendor of the questioned information 2. Request the vendor to provide written verification as to its validity 3. Document the file 4. Proceed to the next step of the pre-award process Acceptance Period • May have to deal w/quotes that have an expired acceptance period • FAR Part 12 for commercial items in combination with SAP, the provision at FAR 52.212-1, In- structions to Offerors - Commercial Items is required to be included in the RFQ o "The offerer agrees to hold the prices in its offer firm for 30 calendar days from the date specified for receipt of offers, unless another time period is specified in an addendum to the solicitation." • When using SF 18, Request for Quotation, for a noncommercial requirement, there is not de- fault acceptance period o Need to specify acceptance period to establish how long you want the quoted prices to re- main valid • Commercial contracting procedures allow the contractor to offer alternate terms & conditions. o enables vendors to protect themselves from unforeseen economic changes, such as an un- expected increase in the price of materials or labor, or changes with other projects they’re committed to Expired Quotes • Monitor when the acceptance period expires for the RFQs that you issue o Especially is experiencing delays in issuing the PO (ensure quotes are still valid) • Contact the vendor( s) & request that the quote acceptance date be extended with no change in terms & conditions or price increases o If contractor WILL NOT extend, the quote validity date/insists on changing some terms & conditions, you will need to make some decisions • If need to extend acceptance period in sole source-the contractor may attempt to modify quote to make it more favorable to him/herself • If the requirement is urgent, may need to allow vendor to modify quote & then negotiate based on revised quote • If you are in a competitive environment but you only received one quote o first try to get the vendor to extend the acceptance period o If not successful, try soliciting sources that did not respond to the first solicitation KNOWLEDGE REVIEW 1. Today is the last day for receipt of quotes in response to your RFQ for new equipment for your installation's gymnasium. With four hours remaining for quotes to be received, a quote comes in electronically and is unreadable. In order to achieve maximum competition and treat all vendors fairly, what do you do? Give the vendor the necessary information needed to resubmit 2. It is almost always in the best interest of the Government to issue a purchase order to the offerer of a quote that is much lower than all the other quotes received. False Evaluating Quotes Recap: When using simplified acquisition procedures (SAP), you largely use guidance from the Federal Acquisi- tion Regulation (FAR) Part 13, Simplified Acquisition Procedures; however, you may also use some pro- cedures and guidance from FAR Part 12, Acquisition of Commercial Items, and/ or FAR Part 15, Con- tracting by Negotiation. • FAR 13.106-2(a) tell us that: o The KO shall evaluate quotations or offers in an impartial manner & inclusive of trans- portation charges from the shipping point of the supplier to the delivery destination o Quotations or offers shall be evaluated on the basis established in the solicitation o All quotations or offers shall be considered • FAR 13.003 emphasizes that we should use innovative approaches to the maximum extent practi- cable when awarding contracts using SAP. • Identify price & non-price factors in RFQ • Formal evaluation plans aren’t required b/c they are in high dollar procurements • When evaluating a quoter’s past performance: o Don’t have to develop a formal data base o Can base a past performance decision on your previous experience w/ quoter o Mary arrive at a “best value” decision by doing a trade-off analysis of price & non-price factors o May consider other value indicators such as warranty & maintenance availability Use of Other FAR Guidance • FAR Part 13- SAP • FAR Part 12- Acquisition of Commercial Items o used when buying commercial items o Allows vendors to provide quotes for more than one product that will meet requirement o Allows vendor to propose alternate terms & conditions that may be common in the com- mercial market place • FAR Part 15- Contracting by Negotiation Price Factors • Conditions/situations that cause an actual increase in overall item price (examples include) o Price of options- a commitment from the vendor to provide additional supplies/service beyond the basic period of performance o Cost of warranty coverage Price-Related Factors • Price-related factors are added in for evaluation purposes only, & do not actually increase the price paid to the contractor. For example: o Free On Board (FOB) Origin ▪ When the quoted price is Free On Board (FOB) Origin, the Government is re- sponsible for delivery of the items to the government facility. This as a price-re- lated factor that the Government must bear, & must be factored in to the evalua- tion process. o Buy American Statue ▪ Establishes a preference for the procurement of domestic items. ▪ Factored in by adding a percentage markup to non-domestic quotes for evalua- tion purposes ▪ After factoring in the markup the domestic quote still isn't the lowest, you can then award to the non-domestic vendor at the quoted price ▪ If the domestic vendor was the lowest to begin with, this factor does not come into play at all ▪ American Flags are restricted to US firms only o Socioeconomic ▪ An evaluation preference exists for small disadvantaged businesses (SOB) & his- torically An evaluation preference exists for small disadvantaged businesses (SOB) and historically underutilized business zone (HUBZone) small businesses ▪ A percentage is identified & added to the quotes of any large businesses for award evaluation purposes o Life Cycle Costs ▪ Purchase price is only the beginning of the cost for many items ▪ Ensure that the overall cost of ownership throughout the life of an item ( to in- clude disposal) is considered ▪ life cycle costs are compared and considered in the evaluation Non-Price Factors • Past performance o Indicates how well a vendor can be expected to fulfill the performance requirements of the contract o The currency and relevance of the information, its source, and recent trending of the per- formance should all be considered • Technical considerations o may be used to differentiate among vendors' quotes if distinguishing technical factors of the supplies or services being offered can provide better overall value to your customer Best Value • Award does not automatically go to the low bidder • During evaluation of quotes, you are considering the trade-off between price & performance • Provide the customer more bang for their buck, even though it may cost more up front • A fully documented rationale for the selection must be conducted, including the specific trade- offs that were considered Selecting the Appropriate Contractor for Award • Can complete the evaluation & make an award decision with/without negotiation • Always consider the price • May consider best value factors (such as quality & past performance) depending on nature on purchase • When evaluating past performance & quoter has no history w/the Government, that quoter should be assessed w/ a "neutral" past performance rating • May refer to FAR Part 15-Contracting By Negotiation • When solicited quotes/offers, we had to notify potential quoters of the basis on which award will be made o Price alone o Price & other factors • Solicitations under SAP are not required to state the relative importance assigned to each evalua- tion factor & sub-factor, nor are they required to include sub-factors • Negotiations conducted after evaluation process; negotiation are informal • If competition exists & the evaluation of the quotes results in a clear winner based on the RFQ criteria, a purchase order may be issued without negotiation Fair & Reasonable • Must determine price you plan to make the award to be fair & reasonable for every procurement, regardless of the dollar amount • May compare previous quotes/award prices must take into account o currency o validity of the information • Can do a price comparison w/ competitive published price lists o Since the Market drives the price, there’s less concern that published prices are unreason- ably inflated • Can compare w/ the independent gov’t estimate on the funding doc recv’d from the customer • Refer to FAR 13.106-3 (a)(2) Vendor Responsibility • Must ensure issuance of a PO is to a responsible contractor- one that can do the work quoted • Under SAP, determination of responsibility is informal; however vendors should have: o Adequate financial resources to perform the contract o Ability to comply with the required delivery/performance schedule o Satisfactory performance record • Must determine vendor isn’t on exclusion list from Federal procurement & non-procurement pro- grams, System for Award Management https://www.sam.gov/portal/SAM/#1 Contractor Selection • An award can be made if determined through price analysis that: o the price is fair & reasonable, o that the vendor is responsible, & o that the quote meets the customer's needs • If worst case scenario occurs & reject all quotes, you will confirm w/ customer that the require- ment is still valid & re-solicit • If acceptance period in RFQ expires b/f issuance of PO, we’ll need to ask vendor(s) to extend their acceptance period so we don’t have to re-solicit KNOWLEDGE REVIEW 1. You received seven quotes in response to your RFQ for backup generators for your civil engineer- ing customer. The prices quoted are all within $300 of each other, and three are below the inde- pendent government estimate. Therefore, you can make the award decision to the low price vendor as offering a fair and reasonable price. TRUE 2. A customer sent you a requirement for some special tooling, and stated that product quality and durability were absolutely the most critical elements for the upcoming procurement. You received three quotes from vendors, with prices ranging from $35,000 to $47,000. The middle price quote of $37,900 is for items that have the highest quality rating. Your decision should be to award to the high quality vendor because the customer indicated that price is not as important as the other factors, and as a result does not have to be considered in this situation. FALSE, price is ALWAYS to be included among the evaluation criteria and considered during the evaluation process. 3. You received five quotes in response to your RFQ for the purchase of 15 riding lawn mowers. Four of the quotes meet the requirements of the RFQ but the fifth one, Mower Mac, does not. It changed the delivery date to three weeks later than what was specified in the RFQ. The price quoted by Mower Mac falls in the middle of the five quotes. The action you should take is: Award to the low price quoter that meets the requirements of the RFQ. 4. You issued an RFQ for repair parts for the electronic repair shop on your base. In the RFQ you stated that this would be a best value award. You received three quotes - the quote from vendor A came in at a lower price than the other two. Therefore, you must issue the purchase order to vendor A. False, As this is the best value award, there is at least one factor other then price that you must consider before deciding which offeror receives the award. Award of the Purchase Order • Award recommendation has been made & a PO needs to be issued to the vendor whose quote is most advantageous to the Government Steps for Issuing a PO • Use same form used for solicitation-SF 1449, Solicitation/Contract/Order for Commer- cial Items • If you use SF 18 for your solicitation, then use DD Form 1155, Order for Supplies/Ser- vices • Make sure PO addresses following items, in addition to the clauses included in your RFQ: o The quantity of supplies or the scope of the services ordered o Date by which delivery of the supplies/performance of the services is required o Any inspections as prescribed in the FAR Part 46, Quality Assurance. Inspection & acceptance are typically performed at destination o Free On Board (FOB) -Destination terms for supplies to be delivered within the contiguous 48 states o Any trade and prompt payment discounts that are offered consistent with FAR 14.408-3 • Depending on the medium used for issuance (electronic or hard copy), you'll per- form the following: o Mail the PO or send it electronically within the acceptance period o Issue a notice of the award if required by FAR Subpart 5.3, Synopses of Contract Awards o Request written confirmation of receipt and acceptance by vendor o Notify the unsuccessful vendors o Handle any requests for information Issuance • KO will generate a PO based on quote provided by vendor; terms & conditions in the RFQ; & the results of any negotiation • Quotation is NOT an offer/contract & can’t be accepted by the Gov’t to form a binding contract • The order is an offer by the Government to the supplier to buy certain supplies/ services upon specified terms & conditions • A contract is established when the supplier accepts the offer • KO must sign the PO b/f it’s sent to the vendor for signature, making it a bilateral PO (may use an electronic signature when issuing an electronic PO) Acceptance • Delivery/performance constitutes acceptance on the part of the vendor & creates a binding con- tract • If you issue a unilateral PO, the vendor indicates acceptance by furnishing the supplies/services ordered/ by proceeding with the work to the point where substantial performance has occurred • If you want to establish a binding contract between parties before the contractor begins perfor- mance, you must require the vendor's written acceptance of the PO- bilateral PO • If the Government issues an order resulting from a quotation, the Government may at any time before acceptance occurs withdraw, amend, or cancel its offer by written notice to the supplier Notification of Unsuccessful Quoters • Notification to unsuccessful quoters need be given to only those that request it (otherwise elec- tronically (e-commerce)) Info will include: o # of vendors solicited o # of quotes received o Name & address of each quoter receiving an award o Description of items, quantities, & unit prices of each award (If the sheer number of items awarded makes listing the awarded unit prices impractical, provide only the total price of the entire award) o The reason(s) the quote was not accepted, unless the price information readily reveals the reason Documentation • Always document the contract file to reflect the events related to the procurement (award a PO or reject) • Constitute complete history of the process • Needed in the event of litigation/inquiries • Streamlined when using SAP • Far Part 13 require: o A brief written description of the procedures used to award the contract, including whether the test procedures in FAR Subpart 13.5 (for commercial items up to $7 million) were used. o The # of quotes received o An explanation, tailored to the size & complexity of the acquisition, of the basis for the contract award decision o Justify if and why sole source procedures were used (see FAR 13.106-3(b )(3)(i). EXAM Questions 1. You receive a requirement for 10,000 modified combat boots (steel safety toes and armored soles) at approximately $200 each. Your contracting office has a blanket purchase agreement (BPA) with Leather Shoes, Inc. for these non-commercial items. You are an authorized caller under the BPA. What is the maximum value of the call you can place for these non-commercial items? $150,000 2. You receive a purchase request from a customer at your installation for military-unique telecom- munications equipment valued at $95,000. Which of the following statements is true concerning the upcoming solicitation? You should issue a Request for Quotation on a Standard Form 18 because it is for a non-commercial item 3. You have just made an award based on your Request for Quote for trash removal services. The contract was awarded to Atlantic Waste Removal in the amount of $30,500. Do you have to notify unsuccessful offerors when using Simplified Acquisition Procedures (SAP), and why or why not? Yes, but only if an offeror(s) requests it 4. Five individuals in your organization will be attending a local two-day computer skills training class. The cost of the training class is $200 per person per day. How would you complete this ac- quisition? Use the Governmentwide Commercial Purchase Card as the method of purchase & payment 5. You issued a Request for Quotation (RFQ) for warehouse sorting equipment for the Logistics Squadron at your base. In the RFQ, you stated that this would be a best value award, considering warranty and maintenance factors. You received three quotes: Vendor A came in at a lower price than the other two. The offer from Vendor B was the middle-priced quote, and Vendor C was the highest priced offeror. Which one of the following statements is true for this scenario? If Vendor B offered the most favorable warranty and maintenance terms, it must be selected for the award. 6. The quotes have been reviewed by technical personnel in the requesting organization, and a quoter has been recommended to the Contracting Officer for the award. Prior to issuing a Pur- chase Order to the vendor, which of the following considerations is most important for the Con- tracting Officer? The recommended contractor is determined to be responsible 7. You are the contracting representative for an Army Reserve unit on training maneuvers in the Nevada desert, and will be making local purchases of supplies and services necessary for comple- tion of the training mission. Which of the following is most accurate regarding potential use of the Standard Form (SF) 44 in this situation? Its use must be determined more efficient and economical than other contracting in- struments 8. You have issued a Request for Quotation (RFQ) on a requirement for new refrigerators for 50 housing units being renovated on your installation. The RFQ was posted electronically and autho- rized submission of quotes via fax machine. If a faxed quote is received that is unreadable, what should you do? Let the offeror resubmit the quote, as long as it is received by the closing time and date specified on the solicitation 9. You receive a routine purchase request for recycling and disposal services for used fluorescent bulbs and electromagnetic ballasts. Estimated value of the work is $150,000. What is the primary consideration when deciding whether to utilize a purchase order versus another contract instru- ment for the requirement? The dollar value of the requirement 10. You receive a purchase request for the clean-up of a storage area at the Post Medical Clinic due to a steam leak, which has been repaired. The cost of the proposed cleanup is estimated to be $22,000. Which of the following choices best represents the steps you should follow to conduct an oral solicitation? Determine the need to synopsize; contact at least three vendors; review terms and conditions; obtain pricing information; document your actions 11. You receive a requirement to procure the services of temporary administrative workers for a spe- cial function at your installation. Is this requirement a good candidate for use of an unpriced pur- chase order? No. The cost of the requirement can be reasonably estimated beforehand 12. You receive a purchase request for janitorial services at an annex to your installation. The contract value with option years is expected to be $300,000. Which of the following statements is most accurate regarding the upcoming Request for Quotation? You should issue your Request for Quotation using a Standard Form 18, as this requirement is for a non-commercial service 13. A Request for Quotation using the Standard Form 1449 was issued for commercial conference facili- ties and services required for the upcoming fiscal year. Upon review of a quote from Highrise Henry Inc., you notice that the vendor has proposed alternative terms and conditions. You should: Reject the offer as nonconforming to the RFQ and either consider any other quotes received, or re-solicit the requirement 14. Select the steps necessary to correctly issue a purchase order and notify unsuccessful quoters. Sign the Purchase Order and then send it to the vendor for signature. 15. Quotes have been received from five vendors in response to your Request for Quotation. They are: VENDOR A - $62,000; VENDOR B - $61,000; VENDOR C - $60,000; VENDOR D - $55,500; VEN- DOR E - $37,500. What should be your next step? Award to Vendor E as the low price offeror 16. 16. [Show More]

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