Contract Negotiation & Award Procedures Flashcards

Under FAR 15.503, when must the contracting officer notify unsuccessful offerors after award?

Answer: Preaward notice within 3 days of competitive range exclusion; postaward notice within 3 days of award for proposals over the simplified acquisition threshold

FAR 15.503 requires preaward notices to offerors excluded from the competitive range within 3 days, and postaward notices within 3 days of award for contracts exceeding the simplified acquisition threshold.

A contractor discovers after award that cost data submitted during negotiations was inaccurate. What is the government's primary remedy?

Answer: Seek a price reduction equal to the overstatement (defective pricing adjustment)

Under TINA, defective pricing occurs when certified data is inaccurate; the government can recover the amount by which the contract price was overstated.

What is the purpose of a 'should-cost' analysis in contract negotiations?

Answer: To assess what a product or service should cost if performed efficiently, identifying areas for cost reduction

Should-cost analysis (FAR 15.407-4) examines contractor operations to identify inefficiencies and establish a realistic price target below the contractor's proposed cost.

Under FAR Part 36, what type of contract is typically used for construction projects, and what pricing method does it use?

Answer: Firm-fixed-price, with price established competitively through sealed bidding using the IFB

FAR Part 36 construction contracts are predominantly firm-fixed-price, awarded through sealed bidding to the lowest responsive, responsible bidder.

What is 'auction technique' and why is it prohibited during discussions under FAR 15.306(e)?

Answer: It means revealing one offeror's price to induce another to lower theirs, which is prohibited because it undermines integrity

FAR 15.306(e) prohibits using auction techniques — such as revealing a competitor's price — because it corrupts the integrity of the competitive process.

Which of the following is an exception to the requirement for certified cost or pricing data under TINA?

Answer: Contracts for which prices are set by law or regulation

TINA exempts contracts where prices are established by law or regulation (e.g., utility rates), as well as catalog prices and competitive awards.

In a negotiated procurement, what is the significance of the 'award without discussions' clause (FAR 52.215-1)?

Answer: It notifies offerors that the government may award based on initial proposals, so they should submit their best offer

FAR 52.215-1 puts offerors on notice that their initial proposal could be their only opportunity to compete, incentivizing submission of a comprehensive best offer.