CON 091: Contract Fundamentals (VA)
Student Guide: Module 3
officer issuing an order in response to the supplier’s quote does not establish a contract.
The Government’s order is an offer to buy certain supplies or services from the supplier
based on specified terms and conditions.
A contract is established when the supplier
accepts the offer [FAR 13.004(a)].
If appropriate, the contracting officer can ask the
supplier to indicate acceptance of the Government’s order by notification, preferably in
Otherwise, the supplier indicates acceptance by furnishing the ordered supplies
or services, or by proceeding with the work to the point where substantial performance
For commercial acquisitions that exceed the SAT but utilize FAR part 13 procedures
based on the special authority in FAR subpart 13.5, the contracting officer uses the SF
1449 for the solicitation and order [FAR 13.307(a)].
Award and Documentation
FAR 13.106-3(a) Basis for award
Before making award, the CO must determine that
the proposed price is fair and reasonable.
(1) Whenever possible, base price
reasonableness on competitive quotations or offers.
(2) If only one response is
received, include a statement of price reasonableness in the contract file--The CO may
base the statement on -- (i) Market research; (ii) Comparison of the proposed price with
prices found reasonable on previous purchases; (iii) Current price lists, catalogs, or
advertisements. However, inclusion of a price in a price list, catalog, or advertisement
does not, in and of itself, establish fairness and reasonableness of the price; (iv) A
comparison with similar items in a related industry; (v) The contracting officer’s personal
knowledge of the item being purchased; (vi) Comparison to an independent
Government estimate; or (vii) Any other reasonable basis.
(b) File documentation and retention--Keep documentation to a minimum. Purchasing
offices shall retain data supporting purchases (paper or electronic) to the minimum
extent and duration necessary for management review purposes.