14 FAH-2 H-120
The Acquisition Environment
(CT:COR-51; 04-19-2019)
(Office of Origin: A/OPE)
14 FAH-2 H-121 Key Principles and
Practices
(CT:COR-45; 01-04-2016)
a. When the U.S. Government acts as a customer or
buyer, it must operate within constraints and guidelines that do not apply to
other buyers. Government entities are responsible for spending public funds in
the public interest. Federal law 31 U.S.C. 1341(a) requires that no contract or purchase on behalf
of the U.S. Government will be made unless authorized by law and paid for with
funds appropriated for that purpose.
b. While contracting personnel bear direct
responsibility for compliance with controls on U.S. Government acquisition,
contracting officers representatives activities often are critical as well.
The ability to obtain competition often depends on the requirements office's
development of a work statement that is not unduly restrictive. Justifying
award decisions depends largely on whether requirements office personnel have
played their part in developing sound criteria to judge the competitors. This
system of separating the duties of the contracting activity and the
requirements office provides for a system of checks and balances for better
overall control of the contracting process.
14 FAH-2 H-122 The Regulations
14 FAH-2 H-122.1 Federal
Acquisition Regulation (FAR)
(CT:COR-45; 01-04-2016)
The Federal Acquisition Regulation (FAR), Code of Federal
Regulations, 48 CFR Chapter 1, is the primary regulation governing how U.S.
Government agencies acquire supplies or services with appropriated funds. It
provides uniformity in the Federal acquisition process. It provides uniform
policies and procedures for acquisition by all executive agencies.
14 FAH-2 H-122.2 Department of
State Acquisition Regulation (DOSAR)
(CT:COR-45; 01-04-2016)
U.S. Government agencies are authorized to establish their
own regulations to implement and supplement the FAR. The Department of State
established uniform policies and procedures in the Department of State
Acquisition Regulation (DOSAR) 48 CFR 601.101, which is maintained by the
Office of the Procurement Executive (A/OPE). The Department acquisition
regulations must not unnecessarily repeat or paraphrase material in the FAR.
The DOSAR may not conflict or be
inconsistent with FAR content except as required by law or provided by 48 CFR
1.402, deviations from the FAR.
14 FAH-2 H-122.3 Department of
State Procurement Information Bulletins (PIB)
(CT:COR-45; 01-04-2016)
a. The Office of the Procurement Executive (A/OPE)
issues Procurement Information Bulletins to promulgate immediate procurement
guidance. PIBs are maintained on the A/OPE intranet site.
b. An example is PIB 2014-12, Mandatory Use of Federal
Acquisition Institute Training Application System (FAITAS), dated May 14, 2014.
14 FAH-2 H-123 The Nature of a Contract
(CT:COR-45; 01-04-2016)
a. A contract is an agreement between two or more
parties consisting of a promise, or mutual promises, for the breach of which
the law might provide a remedy, or the performance of which the law recognizes
as a duty.
b. Unlike most social promises, a contract establishes
a binding legal relationship that obligates the parties to keep their
promises. In nearly all U.S. Government contracts, one party is the
"seller," obligated by the contract to provide goods and services.
The other party is the U.S. Government which, as the "buyer," is
generally obligated to pay for those goods or services.
c. All contracts usually contain the following
elements:
(1) An offer: A proposal by
an offeror that a contract be entered into;
(2) An acceptance:
Unambiguous assent to the offer by the other party, and communication of that
assent to the offeror;
(3) Consideration: Things of
value in the eyes of the law exchanged by the parties to complete the agreement;
and
(4) Mutuality of obligation or meeting
of the minds: Parties understand and agree to the basic substance and
terms of contract.
d. In addition, a contract must have a lawful purpose,
clarity of terms and conditions, and must be entered into by mentally and
legally competent parties that have authority to bind the organization.
e. For a U.S. Government contract (other than purchase
order or other simplified acquisition method contracts), the bids or proposals
from the firms are the offers. Each is made by an offeror seeking to enter
into a contract with the U.S. Government. When the U.S. Government, after bid
opening or proposal review and negotiation, selects one firm with whom to
contract, it performs the act of acceptance when the contracting officer signs
the contract.
f. The mutual consideration in U.S. Government
contracts usually consists of:
(1) The delivery of goods or services by the
contractor; and
(2) Payment by the U.S. Government.
g. Performance work statement (14 FAH-2 H-340)
or specifications must clearly communicate the U.S. Government's requirements,
and must always be in writing.
14 FAH-2 H-124 Definitions and Acronyms
14 FAH-2 H-124.1 Definitions
(CT:COR-45; 01-04-2016)
Acceptance: The act of an
authorized representative of the U.S. Government assuming ownership of existing
identified supplies tendered or approving specific services rendered as partial
or complete performance of the contract requirements. This includes
acknowledging that the supplies or services are in conformity with the
applicable contract quality and quantity requirements (see FAR 48 CFR 46.101).
Acquisition career manager (ACM):
This is the individual appointed by the Chief Acquisition Officer (CAO) to lead
the agencys acquisition career management program. The acquisition career
manager (ACM) is responsible for ensuring that the agencys acquisition
workforce meets the requirements of the Office of Management and Budget (OMB),
Office of Federal Procurement Policy (OFPP), Policy Letter 05-01, Developing
and Managing the Acquisition Workforce, dated April 15, 2005. Among other
duties described in the OFPP Policy Letter 05-01, the ACM:
(1) Manages the identification and development of the
acquisition workforce, including identifying staffing needs, training
requirements, and other workforce development strategies;
(2) Ensures that agency policies and procedures for
workforce management are consistent with those established by OFPP, as
appropriate; and
(3) Maintains and manages the consistent agency-wide
data on those serving in the agencys acquisition workforce.
Acquisition plan: The result
of the coordinated and integrated efforts of all personnel responsible for an
acquisition working together to develop a comprehensive plan for fulfilling the
agency need in a timely manner and at a reasonable cost. Acquisition plans are
addressed in detail at FAR 48 CFR 7.1. DOSAR 48
CFR 607.103(d) requires domestic requirements offices to develop formal,
written acquisition plans for all acquisitions whose value, including base and
all option amounts, exceeds $5 million.
Administrative controls:
Safeguards that ensure that contracting activities will be carried out in
conformity with applicable regulations and Department policy.
Amendment: Modification made
to a solicitation. Reference the Form SF-30, Amendment of
Solicitation/Modification of Contract, and 48 CFR 53.243.
Buying green: Obtaining
cost-efficient products and services that have a reduced impact on the
environment through waste minimization, natural resources conservation,
pollution reduction and prevention. When Department domestic acquisitions
involve the purchase of an item identified by the Environmental Protection
Agency (EPA), as designated recycled content material or U.S. Department of
Agriculture (USDA) designated biobased
products, the product must meet the EPA or USDA guideline standards unless
there is a price, performance, or availability exception justification for not
doing so maintained in the contracting officer contract file. See 48 CFR 23.2,
"Energy and Water Efficiency and Renewable Energy" for Energy Star
program products, and Federal Energy Management Program (FEMP) for requirements
of low standby power devices. See 48 CFR 23.4, "Use of Recovered
Materials and Biobased Products."
Cardinal changes: Modifications to
an existing contract that are beyond the general scope of that contract and are
so extensive that a new contract should be awarded. A cardinal change is so
profound that it not redressable under the contract and thus renders the
government in breach. It frees the contractor of its obligations under the
contract, including its obligations under the disputes clause. Reference
Allied Materials & Equipment Co. v. United States, 569 F.2d 562, 563-64
(Ct. Cl. 1978).
Change order: Unilateral
action taken by the contracting officer to modify the drawings, designs,
specifications, method of shipping or packing, place of inspection, delivery,
or acceptance of an existing contract.
Changed conditions:
Construction site/repair conditions which differ significantly from conditions
indicated in the contract, or conditions ordinarily encountered in the
performance of the type of work in the contract.
Clarifications: Limited
exchanges between the U.S. Government and offerors that may occur when award
without discussions is contemplated (reference FAR 48 CFR 15.306(a)).
Communications: Exchanges
between the U.S. Government and offerors, after receipt of proposals, leading
to establishment of the competitive range (see FAR 48 CFR 15.306(b)).
Competitive range: Those
proposals which, after evaluation by the technical evaluation panel, are the
most highly rated and will be included in negotiations (48 CFR 15.306(c)).
Constructive change order:
Informal requests for additional work or services caused by some act or
omission on the part of the U.S. Government that causes a contractor extra
work, delays, or expense.
Contract: A legal instrument
providing for the purchase, lease, or barter of property or services for the
direct benefit of the U.S. Government.
Contract administration: The
monitoring of the contractor's performance to assure compliance with
performance requirements and contract provisions.
Contract modification: Any
written alterations in the specifications, delivery point, date of delivery,
contract period, price, quantity, or other provision of an existing contract.
Contracting officer: An
official authorized to enter into or administer procurement contracts and make
related determinations and findings.
Contracting officer's representative
(COR): The individual in the requirements office who is responsible for
the technical monitoring and evaluation of the contractor's performance.
Contractor-acquired property:
Property acquired, fabricated, or otherwise provided by the contractor for
performing a contract and to which the Government has title (48 CFR 45.101).
Examples are property acquired under a cost-reimbursement contract or property
acquired under a contract with a special term and condition directing the
contractor to acquire the property for the government. A time-and-materials
repair contract may direct a contractor to obtain an inventory of repair parts
that transition to the government at contract completion. Property acquired
under a cost-reimbursement contract as a direct charge is the property of the
U.S. Government upon payment or issuance from contractor stores.
Cost estimate: A written
calculation of all items included in the scope of the work, tabulated under
appropriate cost headings (direct costs, labor, overhead, and profit).
Cost-reimbursement contract: A
contract in which the buyer and seller agree on an estimate of contract costs.
The buyer agrees to reimburse the seller for reasonable, allowable, and
allocable costs necessary to complete the work.
Cure notice: A document the
contracting officer sends to a contractor to notify the contractor that the
contract may be terminated by reason of default if the condition endangering
performance of the contract is not corrected in 10 days.
Deficiency: A material failure
of a proposal to meet a Government requirement or a combination of significant
weaknesses in a proposal that increases the risk of unsuccessful contract
performance to an unacceptable level (reference FAR 48 CFR 15.001).
Determinations and findings:
Written approval by an authorized official that is required by statute or
regulation as a prerequisite to taking certain contracting actions.
Discussions: Discussions are
negotiations conducted in a competitive acquisition. Discussions take place
after establishment of the competitive range (see FAR 48 CFR 15.306(d)).
Evaluation notice (EN): The
contracting officers written notification to the offeror for purposes of
clarifications, communications or in support of discussions.
Excusable time delay: Failure
to perform that is beyond the control and without fault or negligence of the
contractor.
Federal Acquisition Certification for Program
and Project Managers (FAC P/PM): The certification requirements issued
by the Office of Federal Procurement Policy (OFPP) in the Office of Management
and Budget (OMB) for program and project managers.
Federal Acquisition Certification in Contracting
Program (FAC-C): The certification requirements issued by the Office of
Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB)
for contracting personnel, as implemented by 14 FAH-3 H-312.
Federal Acquisition Certification Program
for Contracting Officers Representatives (FAC-COR): The certification
requirements issued by the Office of Federal Procurement Policy (OFPP) in the
Office of Management and Budget (OMB) for contracting officers representatives
as implemented by 14 FAH-2 H-141
and 14 FAH-2
H-143.
Federal Acquisition Regulation (FAR):
The Code of Federal Regulations (CFR) contains the Federal Acquisition
Regulation (FAR). 48 CFR 2.101 is the
source for many definitions of terms.
Federal Business Opportunities (FedBizOpps): The single point where U.S. Government business
opportunities greater than $25,000, including synopses of proposed contract
actions, solicitations, and associated information, can be accessed at the
fedbizopps web site.
Firm fixed-price contract: A
contract that provides for a price that is not subject to any adjustment by
reason of cost experience of the contractor in the performance of the contract.
Government property: All
property owned or leased by the U.S. Government. Government property includes
both Government-furnished property and contractor-acquired property.
Government property includes material, equipment, special tooling, special test
equipment, and real property. Government property does not include
intellectual property and software (48 CFR 45.101).
Government-furnished property:
Property in the possession of, or directly acquired by, the U.S. Government and
subsequently furnished to the contractor for performance of a contract.
Government-furnished property includes, but is not limited to, spares and
property furnished for repair, maintenance, overhaul, or modification.
Government-furnished property also includes contractor-acquired property if the
contractor-acquired property is a deliverable under a cost contract when accepted
by the U.S. Government for continued use under the contract (48 CFR 45.101).
Government technical monitor (GTM):
An individual designated by the contracting officer to assist the COR in
monitoring a contractors performance.
Head of contracting activity (HCA):
The official who has overall responsibility for managing the contracting
activity. See DOSAR 48 CFR 601.601-70 for more information and a list of
Department of State HCAs.
Indefinite-quantity contract:
A contract used for procurements in which the exact number of deliverable items
is not known at the time of contracting. The contract provides for a minimum
and maximum amount of goods/services that may be ordered under the contract.
Inspection: The examination
and testing of supplies and services to determine whether they conform to
contract requirements.
Labor-hour contract: A
contract that provides for the procurement of services on the basis of direct
labor-hours at specified, fixed hourly rates (which include direct and indirect
labor, overhead, and profit).
Letter contract: A written
authorization for the contractor to begin work issued prior to the negotiation
of a formal contract.
Level-of-effort contract: A
contract that specifies the number and type of person-hours that the contractor
will apply in pursuing the project.
Lowest price technically acceptable
(LPTA): A process used in competitive negotiated contracting where the
best value is expected to result from selection of the technically acceptable
proposal with the lowest evaluated price (reference FAR 48 CFR 15.101-2).
Modification: See contract
modification definition in this section.
Negotiation: The procedure for
awarding contracts without sealed bidding. This method of procurement is used
when sealed bidding is not feasible or practicable. Under negotiation, the
lowest offeror does not necessarily receive the award; since technical and
other factors may be considered as well as cost.
Performance-based service contracting
(PBSC): PBSC is a method of contracting where the U.S. Government
defines the results it is seeking, rather than the process by which those
results are attained. An essential element is the standards against which
contract performance will be measured. PBSC is the preferred method of
contracting for services.
Performance confidence assessment:
An evaluation of the likelihood (or U.S. Governments confidence) that the
offeror will successfully perform the solicitations requirements; the
evaluation is based upon past performance information.
Performance work statement (PWS):
A description of what the contractor must accomplish in terms of results so
that the U.S. Government can effectively monitor and evaluate the progress and
final result of the contract (48 CFR 37.602). It is used when conducting performance-based
service contracting. It replaces the Statement of Work previously used in
service contracts.
Personal services contract (PSC):
Employment contract that creates an employer/employee relationship (48 CFR
37.104). A U.S. Government employee is technically the PSCs supervisor and
will complete timecard and other personnel management actions.
Plant clearance officer: An
authorized representative of the contracting officer appointed in accordance
with agency procedures, responsible for screening, redistribution, and
disposing of contractor inventory from a contractors plant or work site (48
CFR 2.101). The term contractors plant includes, but is not limited to,
U.S. Government-owned contractoroperated plants, Federal installations, and Federal
and non-Federal industrial operations, as may be required under the scope of
the contract. Department contracting officers must designate a property
administrator in writing for contracts that have Government-furnished property
or contractor-acquired property and delegate authority for specific property
management tasks (see 14 FAH-2 H-148).
Price negotiation memorandum (PNM):
The official record document supporting the source selection and contract award
decision, including the principal elements of the negotiated agreement
(reference FAR 48 CFR 15.406-3).
Procurement Executive (A/OPE): The Procurement Executive is responsible for management
direction of the acquisition system of the Department, including implementation
of the unique acquisition policies, regulations, and standards of the
Department.
Property administrator: An
authorized representative of the contracting officer appointed in accordance
with agency procedures, responsible for administering the contract requirements
and obligations relating to Government property in the possession of a
contractor (48 CFR 45.101). Department contracting officers must designate a
property administrator in writing for contracts that have Government-furnished
property or contractor-acquired property delegating authority for specific
tasks (see 14
FAH-2 H-147).
Recency: As it pertains to
past performance information, is a measure of the time that has elapsed since
the past performance reference occurred. Recency is generally expressed as a
time period during which past performance references are considered relevant.
Relevancy: As it pertains to
past performance information, is a measure of the extent of similarity between
the service/support effort, complexity, dollar value, contract type, and
subcontract/teaming or other comparable attributes of past performance examples
and the source solicitation requirements; and a measure of the likelihood that
the past performance is an indicator of future performance.
Requirements documents: All
aspects of the request for proposal (RFP) that convey the needs of the U.S.
Government to offerors, including the SOO, SOW, PWS, technical requirement
documents, and system requirement documents.
Requiring office: The entity
(for example, a program management office or other organizational entity)
responsible for translating user requirements into the requirements documents
within the RFP that communicate those requirements to offerors.
Risk: As it pertains to source
selection, is the potential for unsuccessful contract performance. The
consideration of risk assesses the degree to which an offerors proposed
approach to achieving the technical factor or subfactor may involve risk of
disruption of schedule, increased cost or degradation of performance, the need
for increased U.S. Government oversight, and the likelihood of unsuccessful
contract performance. For firm-fixed-price contracts, the reference to
increased cost may be removed from the risk definition.
Responsible bidder/offeror:
One who has the technical and financial capacity to secure the necessary
resources to deliver the goods or services (48 CFR 9.104-1).
Responsive bid: A bid that
conforms exactly to the requirements in the Invitation for Bids (IFB).
Sealed bidding: Acquisition by
competitive sealed bids (48 CFR 6.401). This method of procurement requires
that specifications be written describing the requirements of the U.S.
Government clearly, accurately, and completely, so that the evaluation of bids
can be based on the lowest bid submitted by a responsive and responsible
bidder.
Show-cause letter: A document
the contracting officer sends to a defaulting contractor to notify the
contractor that the contract may be terminated by reason of default unless the
contractor can prove in 10 days that the condition was not his or her fault (48
CFR 49.607).
Significant weakness: The
proposal has a flaw that appreciably increases the risk of unsuccessful
contract performance (48 CFR 15.001).
Solicitation: The process by
which the U.S. Government requests, orally or in writing, offers from
prospective contractors for specific items or services (14 FAH-2 H-414).
Solicitation documents are Requests for Quotations (RFQs); Invitations for Bids
(IFBs); and Requests for Proposals (RFPs).
Solicitation mailing list: The
list of prospective contractors.
Source selection advisory council
(SSAC): A group of senior U.S. Government personnel who provide counsel
during the source selection process and must prepare the comparative analysis
of the technical evaluation team (TET) evaluation results with those of the
price evaluation team (PET), when utilized, and prepare a recommendation for
the SSA (14
FAH-2 H-363.4).
Source selection authority (SSA):
The official designated to make the source selection decision (14 FAH-2 H-363.1).
Source selection team (SST): A
team that is tailored to the unique acquisition, tasked with carrying out a
source selection (14 FAH-2
H-363.1). Composition of the team generally consists of the SSA,
contracting officer (if different from the SSA), SSAC, TET, advisors, cost or
price experts, legal counsel, small business specialists, and other subject
matter experts.
Source selection decision document
(SSDD): The document that reflects the SSA's independent, integrated,
comparative assessment and decision (reference FAR 48 CFR 15.308 and 14 FAH-2
H-366.10).
Source selection plan (SSP): A
plan that describes how the source selection will be organized, how proposals
will be evaluated and analyzed, and how source(s) will be selected (14 FAH-2 H-365).
Specifications: The clear and
accurate description of the technical requirements of a service or supply
contract.
Strength: An aspect of an
offeror's proposal that has merit or exceeds specified performance or
capability requirements in a way that will be advantageous to the U.S.
Government during contract performance.
Technical evaluation panel (TEP):
One or more technical staff members designated by the contracting officer to
evaluate technical proposals, discuss the work with all offerors in the competitive
range (if requested by the contracting officer), and prepare a selection
recommendation (14 FAH-2
H-421.3).
Termination for cause: A
termination under a commercial item contract in the event of any default by the
contractor.
Termination for convenience: A
contract clause designed to give the U.S. Government a unilateral right to
terminate the contract when it is in the U.S. Governments interest to do so.
Termination for default: A
contract clause that allows the U.S. Government to terminate a contract when
the contractor fails to perform or fails to make progress so as to endanger
performance (48 CFR 49.4).
Time-and-materials contract: A
contract that provides for payment of supplies and services on the basis of
incurred direct labor hours (at fixed rates) and materials (typically at cost)
(48 CFR 16.601).
Time delay: An interruption
during which services, supplies, or work are not delivered in accordance with
the performance time schedule stated in the contract.
Training officer: As defined in
13 FAM 022.4,
Bureau Training Officers. Each bureau and post has at least one training
officer. A list of training officers is available on the Foreign Service
Institute (FSI) web site.
Weakness: A flaw in the
proposal that increases the risk of unsuccessful contract performance (48 CFR
15.001).
14 FAH-2 H-124.2 Acronyms
(CT:COR-51; 04-19-2019)
A/OPE/AQM Office
of Acquisitions Management
A/OPE Office of the Procurement Executive
BPA Blanket
Purchase Agreement
CAO Chief
Acquisition Officer
CBCA Civilian Board
of Contract Appeals
CFR Code of
Federal Regulations
CG Comptroller
General
CGFS Bureau of the
Comptroller and Global Financial Services
CICA Competition in
Contracting Act
CO Contracting
Officer
COR Contracting
Officer's Representative
CR Cost-Reimbursement
Contract
D&F Determination
and Findings
DOSAR Department of State Acquisition
Regulation
FAC-C Federal
Acquisition Certification in Contracting Program
FAC-COR Federal
Acquisition Certification for Contracting Officer
Representatives and Government
Technical Monitors
FAC-P/PM Federal
Acquisition Certification for Program and Project
Managers
FAH Foreign
Affairs Handbook
FAM Foreign
Affairs Manual
FAR Federal
Acquisition Regulation
FEDBIZOPPS Federal Business Opportunities
FFP Firm-Fixed-Price
Contract
FMO Financial
Management Officer
FOIA Freedom of
Information Act
FSI Foreign Service Institute
GAO Government
Accountability Office
GFP U.S.
Government-Furnished Property
GTM Government
Technical Monitor
HCA Head of the
Contracting Activity
IFB Invitation
for Bids
JOFOC Justification
for Other Than Full and Open Competition
L/BA Office of the
Assistant Legal Adviser for Building and
Acquisitions
OBO Bureau of
Overseas Buildings Operations
OFPP Office of
Federal Procurement Policy
OIG Office of the
Inspector General
OMB Office of
Management and Budget
PA Property
Administrator
PBSC Performance-Based
Service Contracting
PET Price
Evaluation Team
PLCO Plant Clearance
Officer
PSC Personal
Services Contract
PWS Performance
Work Statement
RFP Request for
Proposals
RFQ Request for
Quotations
SBA Small
Business Administration
SF Standard
Form
SOW Statement of
Work
SSAC Source
Selection Advisory Council
SSA Source
Selection Authority
SSP Source
Selection Plan
SST Source
Selection Team
TEP Technical
Evaluation Panel
TET Technical
Evaluation Team
T for C Termination
for Convenience
T for D Termination
for Default
UCF Uniform
Contract Format
U.S.C United States
Code
14 FAH-2 H-125 THROUGH H-129 UNASSIGNED