CON 091 Module 3 SG.pdf - CON 091 Contract Fundamentals...

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CON 091 Contract Fundamentals Module 3 Student Guide August 2019
CON091 CONFUN 2 Module 3 v2.1 Table of Contents Module 3 .......................................................................................................................................................4 Introduction ..............................................................................................................................................4 Module 3 Schedule ...................................................................................................................................4 Learning Objectives ...................................................................................................................................4 Online Acquisition Resources ...................................................................................................................5 Contract Types ..............................................................................................................................................7 Contract Types ..........................................................................................................................................7 Overview ...............................................................................................................................................7 Broad Categories of Contract Types .....................................................................................................8 Fixed-Price Contract Types....................................................................................................................9 Firm-Fixed-Price ....................................................................................................................................9 Fixed-Price with Economic Price Adjustment .....................................................................................10 Fixed-Price Incentive ...........................................................................................................................11 Fixed-Price with Prospective Price Redetermination .........................................................................12 Fixed-Ceiling-Price with Retroactive Price Redetermination ..............................................................12 Fixed-Fixed-Price, Level-of-Effort Term ..............................................................................................12 Cost-Reimbursement Contract Types .................................................................................................13 Cost .....................................................................................................................................................13 Cost-Sharing ........................................................................................................................................14 Cost-Plus-Incentive-Fee ......................................................................................................................14 Cost-Plus-Award-Fee ...........................................................................................................................14 Cost-Plus-Fixed-Fee .............................................................................................................................14 Range of Cost or Pricing Arrangements ..............................................................................................16 Time-and-Materials and Labor-Hour ..................................................................................................17 Cost or Pricing Arrangement Exercise.................................................................................................18 Selecting a Contract Type ...........................................................................................................................20 Selecting a Contract Type .......................................................................................................................20 Policies on the Use of Contract Types.................................................................................................20 Objective when Selecting a Contract Type .........................................................................................21 Factors to Consider in Selecting a Contract Type ...............................................................................22
CON091 CONFUN 3 Module 3 v2.1 Documenting the Selection of a Contract Type ..................................................................................24 Required Determination and Findings and Approvals ........................................................................26 Selecting a Contract Type Exercise .....................................................................................................28 Small Business Subcontracting Limitations .................................................................................................29 Introduction ............................................................................................................................................29 What is a subcontract? .......................................................................................................................29 What is a small business set-aside? ....................................................................................................30 When is a total small business set-aside required? ............................................................................31 Limitations on Subcontracting for Small Business ..............................................................................32 Limitations on Subcontracting Set Forth in CD 2019-O0003 ..............................................................33 Subcontracting Limitations Exercise ...................................................................................................35 Simplified Acquisition Procedures ..............................................................................................................36 SAP ..........................................................................................................................................................36 Simplified Acquisition Procedures Overview ......................................................................................36 Policies for the Use of SAP ..................................................................................................................37 Promoting Competition when Using SAP ...........................................................................................39 Soliciting Competition when Using SAP ..............................................................................................40 Basis for Award ...................................................................................................................................41 Evaluating Quotes or Offers Using SAP ...............................................................................................42 Offer and Acceptance Using SAP ........................................................................................................43 Award Using SAP .................................................................................................................................44 Simplified Acquisition Methods ..........................................................................................................44 Governmentwide Commercial Purchase Card ....................................................................................45 Purchase Orders ..................................................................................................................................45 Blanket Purchase Agreements ............................................................................................................46 Imprest Funds and Third Party Drafts .................................................................................................47 SF 44 ....................................................................................................................................................47
CON091 CONFUN 4 Module 3 v2.1 Module 3 Introduction In Module 2 you learned the principles of contract formation. In Module 3 you will expand your knowledge of contract fundamentals by reviewing the various contract types, how they are selected, and when they may be used. Module 3 also includes an overview of small business subcontracting and the policies and procedures for simplified acquisition. As with every module for this course, you will need to call on your recently honed skills to locate, cite, interpret, and determine the applicability of the policies and procedures in the FAR, DFARS, DFARS PGI, and CDs to DoD acquisitions. Module 3 Schedule Day 7 Day 8 Contract Types Morning: Exam # 2 Selecting a Contract Type Small Business Subcontracting Limitations Begin Module 4 Simplified Acquisition Procedures Learning ObjectivesTerminal Learning Objectives:Differentiate between the types of contracts, and apply the policies and procedures for use in DoD acquisitions.

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