CFCM Contract Formation 3 — Questions and Answers
Question 1: Which FAR provision requires contractors to represent their small business status at the time of offer?
- FAR 52.219-1 (Correct answer)
- FAR 52.204-8
- FAR 52.212-3
- FAR 52.222-26
Correct answer: FAR 52.219-1
FAR 52.219-1, Small Business Program Representations, requires offerors to represent their size status when submitting offers for set-aside contracts.
Question 2: In a two-step sealed bidding process, what happens in Step 1?
- Price bids are opened publicly
- Technical proposals are submitted and evaluated without prices (Correct answer)
- Best and final offers are requested
- Awards are made to the lowest responsive bidder
Correct answer: Technical proposals are submitted and evaluated without prices
In Step 1 of two-step sealed bidding (FAR 14.5), unpriced technical proposals are submitted and evaluated for technical acceptability before Step 2 price bids are solicited.
Question 3: A contracting officer wants to use an indefinite-delivery indefinite-quantity (IDIQ) contract. What is the minimum guaranteed amount the government must obligate?
- Nothing — IDIQ contracts have no guaranteed minimum
- A guaranteed minimum quantity or dollar amount (Correct answer)
- 50% of the estimated contract value
- The stated maximum order limit
Correct answer: A guaranteed minimum quantity or dollar amount
FAR 16.504(a) requires IDIQ contracts to include a minimum quantity or dollar amount that the government is obligated to order to provide consideration.
Question 4: Under FAR Part 15, what is the significance of the 'competitive range' determination?
- It sets the price range within which award will be made
- It identifies offerors whose proposals are most highly rated and with whom discussions will be conducted (Correct answer)
- It limits the number of proposals the government will evaluate
- It establishes the range of acceptable delivery schedules
Correct answer: It identifies offerors whose proposals are most highly rated and with whom discussions will be conducted
The competitive range under FAR 15.306(c) consists of the most highly rated proposals with which the contracting officer intends to conduct discussions.
Question 5: What distinguishes an 'offer' from an 'invitation to deal' in federal contract formation?
- An offer requires a written response while an invitation to deal can be oral
- An offer creates the power of acceptance, while an invitation to deal invites submission of offers (Correct answer)
- An offer must include price while an invitation to deal need not
- An offer is binding on both parties while an invitation to deal binds only the offeror
Correct answer: An offer creates the power of acceptance, while an invitation to deal invites submission of offers
A government solicitation (RFP, IFB) is generally an invitation to deal, while contractor proposals/bids constitute offers that the government may accept.
Question 6: A contracting officer awards a contract using FAR Part 12 procedures for commercial items. Which of the following clauses is NOT required in commercial item contracts?
- FAR 52.212-1, Instructions to Offerors
- FAR 52.212-4, Contract Terms and Conditions
- FAR 52.215-2, Audit and Records — Negotiation (Correct answer)
- FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes
Correct answer: FAR 52.215-2, Audit and Records — Negotiation
FAR 52.215-2 (Audit and Records — Negotiation) is not required in commercial item contracts; FAR Part 12 uses a streamlined clause set.
Question 7: What is the government's legal obligation if it issues a solicitation but later decides not to award any contract?
- It must award to at least one offeror
- It must compensate all offerors for proposal preparation costs
- It may cancel the solicitation but should notify offerors promptly (Correct answer)
- It must re-solicit with revised requirements within 90 days
Correct answer: It may cancel the solicitation but should notify offerors promptly
The government has the right to cancel a solicitation without award, but should notify offerors promptly; it generally has no obligation to reimburse proposal costs.
CFCM Contract Formation 3
Which FAR provision requires contractors to represent their small business status at the time of offer?