Contracting Officer Unlimited Warrant Board exam 2022/2023

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What is an option? An option is a unilateral right in a contract, for a specific period of time, where the Government may elect to purchase additional supplies or services called for by the contract,... or extend the period of performance. The PCO should use options when (1) in the Governments best interest, (2) there is a need for service beyond the initial period, and (3) to ensure continuity of service. The use of options are not normally in the Governments best interest when (1) The foreseeable requirements involve minimum economic quantities and delivery requirements are far enough in the future to permit competitive acquisition, production, and delivery (2) an indefinite quantity or requirements contract would be more appropriate than a contract with options. What must a PCO do before exercising an option? The PCO must determine that: 1. Funds are available 2. The requirement fulfills an existing Government need 3. Exercising the option is the most advantageous method price and other factors considered 4. The option was synopsized IAW FAR 5 (or exempted) The PCO should have a written D&F in the file in order to use options The PCO should also consider if the contractor is responsible and if their performance is satisfactory. If the option price during a competitive source selection was not evaluated, is the option valid? No. All options need to be priced because they were awarded on a competitive basis. Can the PCO cite the "Changes Clause" to increase quantities on a production contract? No. The Changes Clause cannot be used to increase quantities on a production contract. (a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following: (1) Drawings, designs, or specifications when the supplies to be furnished are to be specially manufactured for the Government in accordance with the drawings, designs, or specifications. (2) Method of shipment or packing. (3) Place of delivery. Is any approval required for an effort that is out of scope ? Changes outside the scope of the original contract are considered new work and constitute a cardinal change, and in this case, one of two things should happen: 1. Compete the new work 2. Get a J&A and seek proper approval What are the four essential elements the PCO must address when making a Scope Determination? 1. Scope of the competition - could the original offerors have reasonable anticipated such a change? 2. Contract type - Requirments should be better defined in a FFP contract therefore require less changes. As opposed to a RDT&E contract. 3. Period of performance - will the PoP be extended significantly so as to constitute new work? 4. Overall cost/price change - what has been the total change in price throughout all modifications? What must the PCO do for any change and/or modification estimated to be $1M or more? Obtain legal review of the proposed action and document the review in the contract file Where can a PCO look to help determine if a change is in-scope? Various source documents to include: SOO/SOW/PWS, synopsis, RFP, exchanges with industry, market surveys, RFIs, etc. What is "scope creep?" Scope creep occurs when a series of in-scope changes make the contract as a whole out-of-scope. The PCO must remain cognizant of scope creep when changing/modifying existing contracts. [Show More]

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