CLC 033 Exam Questions with correct Answers

Why is this continuous learning module necessary? Consider the following: Existing Department of Defense (DOD) contracting professionals could benefit from additional coverage of contract format and contract line item structure. The introduction of personal computers has decentralized contract drafting, resulting in more people being made responsible for constructing contracts. The downsizing of the DOD workforce has resulted in a loss of institutional knowledge. Centralization of bill paying through the Defense Finance and Accounting Service (DFAS) and the associated automation of financial processes require greater standardization of contracts so that the automated systems can process them correctly. Requirements for proper valuation of equipment require greater care in structuring contract line items. - Answer- Requirements documents and contracts must define clear, unambiguous requirements that reflect supplies and services acquired by the Department of Defense (DoD); enabling accurate contract completion and payments and audits. Poorly constructed or ambiguously written contracts can also significantly reduce the government's ability to manage and track supplies and services and thus adversely impact maintenance and support programs and consequent levels of warfighter support. Effects of such impacts may continue throughout the operational life of the item(s) delivered. Poorly constructed contracts are likely to: -Increase the workload and expense to Government and contractor in rectifying errors and clarifying ambiguities. -Contribute to erroneous data or data of poor quality being introduced into the DoD databases for financial, accounting, maintenance, distribution, and warehousing purposes, such as DoD Item Unique Identification (IUID) Registry. -Contribute to poor decision making by warfighters, program managers, PEOs, maintenance personnel, budget and financial personnel and others who rely on accurate item data in the course of their professional duties. -Increase costs to manage a given class or type of item compared to what the cost would be with an IUID program providing accurate item data. -Result in incomplete data packages that will increase cost of subsequent marking (see DoD Guide to UID Quality Assurance). - Answer- Property delivered to the Government shall be delivered on a contract line item number (CLIN), sub-line item number (SLIN), or exhibit line item number (ELIN). These line items are established when the contract is structured prior to award and shall be included for all items for which the Government shall take delivery, either during the performance or at the completion of the contract. The importance of creating acquisition contracts that are clear, unambiguous, and comprehensive in their Item Unique Identification (IUID) requirements cannot be overstated. The adverse effects of poorly written CLINs are being magnified by the growing number of DoD-wide standard item delivery requirements, such as IUID and the use of Wide Area Workflow (WAWF) that require precise, standardized contract structure in order to successfully flow data electronically through multiple automated systems. In addition, properly structured CLINs, SLINs, and ELINs enhance end-to-end traceability of expenditures at the line item level in order to support managerial and financial audit needs. In order to fully understand how contract structure affects other parts of the Department Of Defense (DOD) contracting process, it is necessary to understand how data flows among the various systems involved in the procurement process. - Answer- Basic Procurement Data Flow (Pre-Award)The graphic depicts the Pre-Award Procurement Flow. The steps are as follows: 1. Customer: The customer identifies a need and creates a Purchase Request (PR). 2. Purchase Request: PR information is sent to the Contracting Office (may be system-to-system or manual). 3. Solicitation: The Contracting Office creates the solicitation in the contract writing system (e.g., the Standard Procurement System or "SPS") and publicizes it via FedBizOpps. Any technical data (drawings, etc.) is made available to potential offerors via the Federal Technical Data Solution (FedTeDS). 4. Contractor: Prospective offerors must be registered at Central Contractor Registration (CCR). For most solicitations, registration at the Online Representations and Certifications Application (ORCA) is also required. 5. Offer: The offeror submits his/her offer to the Contracting Office. 6. Evaluation: The Contracting Office conducts its evaluation of the offers received. This may include using data from the Past Performance Information Retrieval System (PPIRS), Excluded Parties Listing Service (EPLS), Wage Determinations Online (WDOL), and local proposal evaluation tools. 7. Award & Contract Reporting: Upon award, contract reporting information (formerly DD-350) is sent to the Federal Procurement Data System-Next Generation (FPDS-NG). Contract award information is sent to the Electronic Document Access (EDA) system.. FAR 14.201-1: Contracting officers shall prepare invitations for bids and contracts using the uniform contract format to the maximum practicable extent. FAR 15.204-1: The use of a uniform contract format facilitates preparation of the solicitation and contracting as well as reference to, and use of, those documents by offerors, contractors, and contracting administrators. The uniform contract format provides a number of advantages: Facilitates preparation of the solicitation and contract as well as reference to, and use of, those documents by bidders and contractors Administration/management is easier as information is organized in a common structure Information can be found more readily for a particular task. (e.g. contract payment) Uniformity supports automation, i.e., software can be used to determine if a clause or provision is present or omitted - Answer- Part I The Schedule Section A Solicitation/Contract Form Section B Supplies or Services and Price/Costs Section C Description/Specification/Statement of Work Section D Packaging and Marking Section E Inspection and Acceptance Section F Deliveries and Performance Section G Contract Administration Data Section H Special Contract Requirements Part II Contract C Section I Contract Clauses Part III List of Documents, Exhibits, & Other Attachments Section J List of Attachments Part IV Representations & Instructions Section K Representations, Certifications, and other Statements of Offerors Section L Instructions, Conditions, and Notices to Offerors Section M Evaluation Factors for Award - Answer- Provides a tool for tailoring contract requirements to meet current needs while using standard specifications and clauses.Clear understanding of this concept is vital when drafting a contract, given the possibility for conflicts between sections.Specifically, any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order: The Schedule (Sections A-H) excluding the specifications Representations and other instructions Contract clauses Other documents, exhibits, and attachments The specifications Below are some important points to remember about Section A, Solicitation/Contract Form: Identifies forms for use for invitation for bids or negotiated acquisitions Identifies instructions in event that neither SF 33 or SF 1447 are used Includes important information for issuing activity and payment activity Incorporates payment instructions IAW DFARS PGI 204.7108 Specifies codes for offices with responsibilities for handling acceptance and payments. Click here to view a list of DODAAC types - Answer- Below are some important points to remember about Section B, Supplies or Services and Price/Costs: Provides description of supplies or services and the line item structure for the entire contract Should be completed before other sections Line items listed in Section B must be separately identifiable, with one statement of work (SOW)/performance work statement (PWS) or National Stock Number (NSN) per item Each line item must have a separate delivery schedule or period of performance Each line item must have a single unit price and accounting classification citation Subline ItemsReference:Defense Federal Acquisition Regulation Supplement (DFARS) 204.7104There are two types of subline items: Informational (numeric suffix, e.g. ) Separately Identified (alpha suffix, e.g. 0001AA) - Answer- Informational subline items are established, for example, to identify multiple accounting classification citations assigned to a single line item. Separately Identified subline items fall into the following categories: Identical items with different funds Identical items with different sizes or prices Segregated items that are individually payable (e.g., due to packaging requirements) Individual delivery dates or destinations Kits or parts with separate prices Exhibits may be used as a substitute for large numbers of subline items. - Answer- Below are some important points to remember about Section C, Description/Specifications/Statement of Work: If the PWS/SOW is lengthy, make it an attachment and reference applicable paragraphs under the appropriate line items If the PWS/SOW is not lengthy, place it in Section C Emphasize the product or the desired outcomes rather than process Make it clear which parts belong to which line item. Below are some considerations of things that should be specified in Section E, Inspection and Acceptance: Where inspection and acceptance will occur Who has authority to perform government acceptance How inspection and acceptance will be performed List Inspection/Acceptance Department of Defense Activity Address Code (DODAAC) for each delivery point Used in WAWF to route Electronic Data Interchange (EDI) 856 (Ship Notice/Manifest) Reference the Contract Data Requirements List (CDRL) if applicable - Answer- Electronic Submission of Payment Requests and Receiving Reports Incorporate Wide Area Work Flow (WAWF) instructions (PGI 232.7004). WAWF instructions should include the specific data elements required by the contractor to create the appropriate documents. If the contract has been prepared using a digital contract writing system, verify that the required data elements are available via an interface with WAWF. Insert the clause 252-7006, Wide Area Workflow Payment Instructions in Section G. Considerations for Section I, Contract Clauses: Clearly delineate when contracts contain clauses associated with some contract line items. Unique identification (UID) in contracts: The DOD UID program relies upon contracting officers adhering to FAR and DFARS contract structure requirements so the benefits of UID can be realized. Certain line items and subline items require item unique identification (IUID). - Answer- The following lists the "do's" and "don'ts" of UID compliance for contracts: DO Use the clause at DFARS 252.211-7003, Item Identification and Valuation, in solicitations and contracts that require item identification or valuation, or both (in accordance with DFARS 211.274-6) Specify to which line items the clause applies Identify any embedded components that are subject to UID Include language requiring use of the WAWF Ensure that each deliverable has a separate line, subline, or exhibit line item and a defined delivery schedule Ensure that inspection and acceptance criteria address UID Include the current version of MIL-STD-130, DOD Standard Practice, Identification Marking of U.S. Military Property DON'T Lump dissimilar units of issue together such as "lot" and "kit" Specify a particular UID construct which must be used Require that the contractor use Government-assigned identifiers for enterprise, part, or serial number Impose unusual payment or acceptance procedures Different contract types require Department of Defense (DOD) contracting professionals to consider unique issues in order to maintain effective contract structure. The following require special attention: Indefinite Delivery Contracts Indefinite quantity Definite quantity Requirements Contract Options - Answer- The following key points should be remembered for indefinite delivery contracts: The basic contract sets forth: Minimum and maximum quantities (or estimated total for requirements contracts) Delivery parameters Pricing Individual orders set delivery schedules and provide funding Terms are more flexible than if using contract options They should be used for requirements with predictable quantity ranges Contracting personnel should beware of customers attempting to use sources other than those specified in requirements contracts It is important that options be clearly and accurately expressed in contracts so that contract performance and payment can be accomplished without unnecessary delay. For increased quantities of supplies or services, options should be expressed in terms of: Percentage of specific line items Increase in specific line items Additional numbered line items identified as the option Click here to view an example that demonstrates effective line item structure with use of option items. - Answer- Special care must be taken to ensure costs do not migrate from fixed-price line items to cost-type line items. Grouping "like types" together in the contract schedule will make it easier to keep track of the contract types being employed. Click here for an example of effective grouping of fixed-price and cost-type items. The Requirements contract contains only an estimated quantity of the Government's needs. - Answer- Properly constructed line items are the fundamental basis for effective contract formation. As stated previously, requirements documents and contracts must define requirements in clear and unambiguous terms that reflect the supplies and services to be acquired by the DOD. Doing so enables effective contract performance, accurate payments (see FAR 32.905(b)(1)(iv), and clean audits. All deliverable contract line items and subline items must describe products or services to be delivered in a quantity and unit of measure that relates to actual deliveries or contract completion. If part of a deliverable is to be performed or delivered separately, it should be structured into a separate line item. A shipment must contain a whole number quantity of each line item delivered. The fundamental concept is that each separate delivery constitutes a quantity of one or more and the total line item quantity is the sum of those quantities. Recent review of Department contract data revealed the use of 'dollars' or 'lump sum' in line item descriptions or the absence of any unit of measure whatsoever to correspond to the quantity required. No contract action should be issued using 'dollars' or 'lump sum' as a unit of measure. The list of available units of measure has been published at: Each contract line item must describe the product or service to be delivered or performed in a quantity and unit of measure (FAR 32.905) not "unit of issue" as used in cataloging. Line items quantities must relate to actual deliveries or contract completion. In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 204.7103 contract line items should have the following characteristics: separate line or subline items separately identifiable single unit price or total price single accounting classification citation separate delivery schedule, destination, period or place of performance same or different contract pricing types The key point here is that the quantity on the individual line item MUST match the quantity to be delivered, accepted, inventoried, and recorded on the asset records of DoD. - Answer- Supplies are separately identifiable if they have no more than one: National Stock Number (NSN) Item description Manufacturer's part number Services are separately identifiable if they have no more than one: Scope of work Description of services The separate identification requirement does not apply if there are associated subline items established for other than informational reasons, and those subline items include the actual detailed identification in accordance with DFARS 204.7104. Where this exception applies, use a general narrative description instead of the contract item description. The fact that there is more than one delivery date, destination, performance date, or performance point may be a determining factor in the decision as to whether to establish more than one contract line item.If a contract line item has more than one destination or delivery date, the contracting officer may create individual contract line items for the different destinations or delivery dates. Alternatively, the contracting officer may specify the different delivery dates for the units by destination in the delivery schedule. - Answer- A separate delivery schedule should be established for each subline item rather than for the contract line item. Although a contract line item may indicate a quantity of "1" lot, the lot may consist of a variety of items and quantities delivered over time. This conflicts with the DFARS definition of a line item. When there are multiple deliveries against the line item, the lot quantity is designated as "0". However, one or more individual items are actually being delivered. This situation leads to ambiguity in the amount to be paid by the Government, as what exactly is being accepted by the Government is ambiguous. A "0" lot is sent to the Mechanization Of Contract Administration Services (MOCAS) system, but payment is for the total value of the lot. There is no mechanism to report a partial acceptance. The ambiguity must be reconciled at contract closeout. Even under the Item Unique Identification (IUID) program, the unit acquisition cost would be recorded at the total value of the proportionate lot. Under Wide Area Workflow (WAWF) system, the lot price could potentially be divided by the actual quantity. However, there would be no way to know if the items that comprise the total quantity are "like" items or not. Unless the actual unit of measure and actual unit acquisition cost were added, the proper distribution of price among the delivered items cannot be accurately determined. - Answer- So what is the best approach to resolve the "lot" issue? The unit of issue "lot" should be used by exception only. In most cases, subline items or an exhibit should be used to denote the actual deliverables and delivery schedule. There are no NSNs with a unit of issue of "lot," so purchasing supplies using "lot" may indicate a mistake. When selecting the unit of issue, it's vital to carefully consider how the item is to be delivered. Generally speaking, "lot" should not be used when "each" can be used. - Answer- Contracts often assign "kit" as the unit of issue for one or more line items. Kits include multiple, and usually dissimilar, items. The component items are not separately priced.