AFARS - APPENDIX BB 

MANAGEMENT CONTROL EVALUATION CHECKLISTS 

 October 1, 2014

Part 1 - General

BB-100 Function.

The function covered by these management control evaluation checklists is contracting.

BB-101  Purpose.

This AFARS appendix establishes key internal controls for management of contracting functions and the method for evaluating the effectiveness of these controls. Key internal controls are those controls that must be implemented and sustained in daily operations to ensure organizational effectiveness and compliance with legal requirements. The use of internal controls is an integral component of an organization s management that provides reasonable assurance for the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with laws and regulations.

The purpose of this checklist is to assist Army contracting managers at all levels in evaluating the effectiveness of key internal controls for contracting functions performed throughout the Army contracting enterprise worldwide.

BB-102  Instructions.

 The evaluation of key internal controls should result in a specific determination of their effectiveness. Contracting managers shall use the checklist questions in appendix BB to test key controls of contracting functions through a combination of document analysis, direct observation, and random sampling. The annual statement of assurance and supporting documents shall include a corrective action plan for deficient answers to checklist questions. The contracting checklist in this appendix is not all-inclusive and each contracting activity should supplement the checklist with area-specific questions (e.g., major systems, etc.). Formal evaluations of key management controls must be conducted at least once every five years (Army Regulation 11-2).

BB-103 Additional Instructions for Contingency Contracting Functions Outside the Contiguous United States. 

Questions in this checklist should be used by office chiefs/directors who are deployed into a theater of operations and are supporting contingency missions. The term contingency contracting means contracting support provided in response to a declared contingency operation in accordance with 10 USC 101(a)(13) (see also FAR subpart 2.1, Definitions). The support may be provided in a mature or immature operational environment, and may be long term or short term. Office chiefs/directors shall use these questions to test internal controls for contingency contracting functions. Each office chief/director shall complete and submit to his/her respective senior contracting official (SCO) at the midpoint during the office chief/director s tour. The SCO will provide feedback to the office chief/director relating to the effectiveness of key internal controls. Prior to redeployment, the office chief/director shall complete and submit a final checklist to the SCO. The final checklist will be retained in the continuity book to serve as a baseline for the next office chief/director. In addition, information obtained using the checklist will be addressed in the SCO s annual statement of assurance as prescribed by Army Regulation 11-2.

 Part 2 - Contracting Test Questions

 BB-200 Event Cycle 1: Management of Contracting Functions.

Step 1: Contracting Activity Procedures and Functions.

1. Are  mission and vision statements clear and accurate?

2. Is  the contracting office located at a level in the organization where  undue influence will not be placed on contracting personnel (AFARS  5101.693(2)(iv))?

3. Are  there current published standard operating procedures that govern  operational contracting?

4. Are  goals and metrics in place and routinely used to assess  improvements in contracting functions?

5. Is  the contracting office currently in compliance with the paperless  contracting mandate for electronic transaction of requirements  handoff, solicitations, proposal receipt, evaluation,  awards/modifications, and payment?

6. Are  procurement instrument identification number registers maintained  and numbered in accordance with DFARS 204.7003?

7. Are  contracting officers distributing contracts to the applicable  parties (e.g., contractor, requiring activity, transportation  office, administration office, finance office, and payment office)?

8. Does  the contracting function receive notification of contracting (e.g.,  policy) changes, and, if so, implement the changes? Does the  organization have a system in place for the distribution of policy  alerts?

9. Do  contracting officers have the applicable contract action thresholds  before leaving to conduct contingency contracting operations?

10. Do  contracting officers have the appropriate warrant to accomplish the  contingency contracting mission?

Step 2: Requiring Activity Coordination.

1. Does  the contracting office establish and maintain open communications  with the requiring activities, and stress the importance of  developing collaborative working relationships with customers and  contractors to ensure goals and objectives of the mission are met to  the maximum extent practicable?

2. Does  the customer have an acquisition review board in place and if so,  does the contracting officer participate in an advisory role?

3. Are  requiring activities advised of the lead times necessary to initiate  and complete the contractual obligation of funds or contract action?

4. Is  economic purchase quantity data obtained and shared (when  appropriate) with the cognizant inventory manager or with requiring  activities (FAR 7.204)?

5. Is  teaming a routine practice in preparing requirements packages and  program strategies?

6. Are  integrated product teams utilized to facilitate the decision making  process whenever practical?

7. Is  a process in place to promote advanced acquisition planning? Does  the mechanism involve all key stakeholders, to include installation  leadership, requiring activity personnel, resource managers, and  contracting personnel?

8. Are  requiring activities obtaining proper approvals (e.g., services  contract approvals, contract or acquisition review board approvals,  etc.) prior to sending the purchase request to the contracting  office?

Step 3: Office Automation.

1. Is  there a single point of contact and alternate in the office for  managing electronic business initiatives?

2. Are  procedures established regarding documentation and reporting  problems with electronic business initiatives?

3. Are  processes for electronic versus paper storage of contract file  documentation used consistently throughout the office?

4. Are  there office automation issues, which require command assistance or  support?

Step 4: Staffing, Facilities, and Training.

1. Is  staffing in the contracting office adequate to support the mission  without excessive use of overtime or the addition of temporary  employees?

2. Does  the organization have a process in place for the recruitment and  retention of employees with adequate skill levels?

3. Is  the contracting office working environment (i.e., office space,  heating, cooling, lighting, noise levels, etc.) in accordance with  space management regulations?

4. Is  the number and condition of office equipment (i.e., copiers, fax  machines, computers, and class A telephone lines) adequate?

5. Are  individual development plans, job descriptions, and standards  current and appropriate for the mission?

6. Is  training (i.e., both formal classroom training and informal  on-the-job training) timely, adequate, and appropriate for the  specific level of certification?

7. If  in an environment where there is frequent rotation of both civilian  and military personnel, are processes in place to promote continuity  of contract knowledge when contract specialists or contracting  officers change?

Step 5: Contracting Reports and Reviews.

1. Is  there a process in place for conducting self-assessments to include  procurement reviews, contract management reviews, and management  control reviews?

2. Are  contract action reports (CARs) being prepared in a timely manner,  verified, and submitted for each applicable contractual action via  Federal Procurement Data System-Next Generation (FAR 4.6)?

3.  Are  DD Forms 1547, Record of Weighted Guidelines Application, prepared  in a timely manner, verified, and submitted as required (DFARS  215.404-70, DFARS 215-404-71, DFARS PGI 215.404-70, DFARS PGI  215.404-71 and DFARS PGI 215.406-3(a)(10)(B))?

4. Are  status reports on specified contract audit reports, required by DoD  Directive 7640.2, prepared in a timely manner, verified, and  submitted?

5. Are  recurring reports sent to higher headquarters in a timely manner?

6. Does  the organization maintain a list of reports that designates points  of contact and internal due dates?

Step 6: Socio-Economic Goals.

1. Does  the contract file reflect the timely receipt, evaluation, and  approval of required subcontracting plans (AFARS 5119.705-4 and  AFARS Appendix DD)?

2. If  required, was a DD Form 2579 Small Business Coordination Record  completed and incorporated into the contract file (DFARS  219.201(d)(10)(B)?

3. Are  the benefits of bundling contracts quantified and substantiated  through market research (FAR 7.107, FAR 10.001, FAR  19.202-1(e)(1)(iii), and DFARS 207.170)?

4. Are  notifications of the intent to bundle published on the Government  point of entry 30 days prior to the release of a solicitation or 30  days prior to placing an order without a solicitation (DFARS  205.205-70)?

5. Are  contracting officers making a reasonable effort to promote  socio-economic goals by adding a socio-economic factor to the source  selection process, as applicable?

6. Are  contracting officers following the guidance for promoting  socio-economic goals, as provided by the SCO?

Step 7: Standards of Conduct.

1. Is  the required ethics training presented at least annually?

2. Are  designated employees completing annual OGE Form 450s?

3. Are  contractors made aware of their responsibility to maintain a  suitable system of internal controls to avoid improper business  practices (FAR 3.1002(b))?

4. For  potential or real organizational conflicts of interest, is there a  written analysis, recommended course of action, or mitigation plan  (FAR 9.5, FAR 37.102(g), 37.110, 37.2 and AFARS 5109.503)? Has  legal counsel conducted a review of the organizational conflict of  interest determination?

 BB-201 Event Cycle 2: Presolicitation.

Step 1: Acquisition Planning and Strategy.

1. Are  acquisition plans developed when required (FAR 7.104 and DFARS  207.103)?

2. Are  acquisition plans approved by the appropriate official and do  acquisition plans address the required areas (FAR 7.105, DFARS  207.1, DFARS PGI 207.106, and AFARS 5107.103-90)?

3. Are  evaluation factors established in accordance with regulations (FAR  12.602, FAR 13.106-1, FAR 14.503-1, FAR 15.304, 16.505(b)(1)(i)(E),  16.505(b)(1)(v)(A)(1), DFARS 215.304, DFARS 215.370, DFARS  215.370-2, DFARS 215.404-71-5, DFARS 216.505-70, and AFARS  5115.304)?

4. Are  acquisition strategies for services requirements approved by the  appropriate official and do they address all required areas (AFARS  5137.590-3)?

Step 2: Purchase Request and Review.

1. Are  purchase requests adequately funded, signed, dated, approved by  appropriate persons, and do they include adequate supporting  documents?

2. Do  requirements documents (e.g., performance work statement, statement  of work, specifications) comply with regulations for describing  agency needs (FAR 11.002, FAR subpart 11.1, FAR 37.602 and DFARS  211.1)?

3. Is  market research adequate to support the selected acquisition  approach (FAR 10.001, FAR 10.002 and DFARS 210.001)? When  contracting for services see DFARS PGI 210.070.

4. Has  market research been conducted to determine if commercial items or  non-developmental items are available to meet the Government s  needs or could be modified to meet the Government s needs (FAR  10.002(b))?

5. Does  the independent Government cost estimate, if required, contain  enough detail to verify the validity of the offeror s proposal,  provide sufficient narrative and analytical detail to support  preparation, include the preparer s signature (FAR  15.404.1(b)(2)(v), FAR 36.203, and AFARS 5107.9002)?

6. Do  blue prints and drawings, if required, appear reasonably accurate  and complete, and can they be provided electronically?

7. For  Army-funded actions, has a service contract approval been submitted  with General Officer/Senior Executive Service level approval  certifying that the requirement contains no unauthorized personal  services or inherently governmental functions (FAR 7.5, DFARS 207.5,  and AFARS 5107.503)?

8. If  a contract, task or delivery order against a non-DoD contract is  requested, does the requirements package include a certification for  proper use of a non-DoD contract in accordance with DFARS 217.78 and  AFARS 5117.7802?

9. Are  purchase requests for unauthorized commitments processed according  to ratification procedures (FAR 1.602-3 and AFARS 5101.602-3-90)?

10. Are  there procedures in place for monitoring the age of purchase  requests?

11. If  a performance based procurement, does the requirement incorporate a  surveillance plan with measurable performance standards (FAR 37.603,  FAR 37.604 and FAR 46.4)?

12. Are  determinations executed to support the selected contract type (FAR  12.207, FAR 16.601, FAR 16.301-3, DFARS 212.207, and DFARS 216.601)?

13. Are  salient characteristics provided when a brand name or equal  requirement is requested (FAR 11.104)?

Step 3: Competition Considerations.

1. If  competition is restricted, was a justification and approval (J&A)  properly prepared, executed and approved by the designated authority  (FAR 6.302, FAR 6.303, FAR 6.304, FAR 13.106-1(b), FAR 13.501, DFARS  206.303, DFARS 206.304 and AFARS 5106.303)?

2. Are  orders under multiple delivery order/task order contracts that  exceed $3,000 issued in a manner that provides all awardees a fair  opportunity to be considered? Are orders that exceed the simplified  acquisition threshold placed on a competitive basis? If not, is a  limited sources justification or justification for an exception to  fair opportunity prepared and approved in accordance with FAR  8.405-6, and FAR 16.505(b)(2)?

3. Are  J&As executed and approved for brand name procurements (FAR  5.102(a)((6), FAR 8.405-6, FAR 11.104, and FAR 11.105)?

4. Are  J&As assigned a control number and maintained in a J&A log?

Step 4: Solicitation Preparation.

Do solicitations:

1. Conform  to the uniform contract format (FAR 14.201-1 or FAR 15.204-1) or  the commercial items contract format (FAR 12.303), as applicable?

2. Contain  clauses that conform to the FAR or DFARS or have deviation approval  (DFARS 201.402(2))?

3. Reflect  consistency between the performance work statement, statement of  objectives, statement of work, source selection plan, instructions  to offerors and evaluation criteria (AFARS appendix AA, Army Source  Selection Supplement, dated 21 December 2012)?

4. Clearly  state in the instructions to offerors when it is the intent of the  Government to award without discussions (FAR 15.306(a)(3) and AFARS  appendix AA, Army Source Selection Supplement, dated 21 December  2012)?

5.  Include  evaluation criteria prescribed by Federal regulation, DoD, and Army  guidance (DoD Source Selection Procedures, dated 4 Mar 2011, and  Army Source Selection Supplement, dated 21 Dec 2012)?

6. Contain  FAR clause 52.219-14 - Limitations on Subcontracting, as prescribed  by FAR 19.508(e) and FAR 19.811-3(e)?

7. Contain  FAR clause 52.219-9 - Small Business Subcontracting Plan, as  prescribed by FAR 19.704 and FAR 19.708(b)?

8. With  a long period of performance or a multiple-award  indefinite-delivery indefinite-quantity contract, have decision  points (i.e., on and off ramps) been incorporated to ensure that  the Government has a qualified pool of contractors that will  provide continuous service throughout the life of the contract  (Defense Procurement and Acquisition Policy memorandum dated 18  February 2009, Subject: Review Criteria for Acquisition of  Services)?

9. Contain  FAR clause 52.222-50, Combating Trafficking in Persons, or  Alternate I for contracts with performance outside the U.S. or by  reference in FAR 52.212-5?

10. Contain  the item unique identification clause (DFARS 252.211-7003, or its  alternate) in all applicable contracts (DFARS 211.274-4)?

11. Receive  peer reviews conducted appropriate to the value and complexity of  the acquisition (DFARS 201.170, and AFARS 5101.170)?

12. Receive  legal review prior to being published (AFARS 5101.602-2-90)?

Step 5: Publicizing Contract Opportunities and Award Information.

1. Are  solicitation notices publicized through the Government point of  entry, or determination for exception executed (FAR 5.201, FAR  5.202, FAR 5.301, and AFARS 5104.502)?

2. Are  justifications and approvals for other than full an open competition  posted with solicitations, as applicable (FAR 6.305, FAR  8.405-6(a)(2), and FAR 16.505(b)(2)(ii)(D)?

3. When  using competitive procedures, if a solicitation allowed fewer than  30 days for receipt of offers and resulted in only one offer, are  contracting officers resoliciting requirements for an additional  period of at least 30 days, except as provided in (DFARS 215.371-4,  DFARS 215.371-5,  and DFARS 205.203)?

 BB-202 Event Cycle 3: Source Selection/Evaluation, Negotiation, and Award.

Step 1: Source Selection and Evaluation.

1. Are  source selection plans established in accordance with regulation  (FAR 15.303(b)(2), DFARS 215.303(b)(2), DFARS PGI 215.303(b)(2),  AFARS 5115.303(b)(2), DoD Source Selection Procedures (11 March  2011), and AFARS appendix AA, Army Source Selection Supplement (21  December 2012))?

2. Are  the source selection authority (SSA) and source selection  organizations appropriately appointed given the level and complexity  of the acquisition (FAR 15.303, AFARS 5115.303, DoD Source Selection  Procedures (11 March 2011), and AFARS appendix AA, Army Source  Selection Supplement (21 December 2012))?

3. Are  evaluation factors developed in accordance with Federal regulation,  DoD and Army guidance (FAR 15.304, DFARS 215.304, AFARS 5115.304,  DoD Source Selection Procedures (11 March 2011), and AFARS appendix  AA, Army Source Selection Supplement (21 December 2012))?

4. Is  past performance being evaluated, or rationale for not evaluating  past performance documented (FAR 15.304 (c)(3))?

5. Is  the price and quality of products or services being evaluated in all  negotiated source selections (FAR 15.304(c)(1))?

6. Are  technical factors developed specifically for each acquisition, i.e.,  technical approach, management approach, experience, and personnel  qualifications?

7. Are  source selection evaluations conducted in accordance with the source  selection plan and the evaluation criteria specified in the  solicitation (FAR 15.305, DFARS 215.305, AFARS 5115.305, DoD Source  Selection Procedures (11 March 2011), and AFARS appendix AA, Army  Source Selection Supplement (21 December 2012))?

8. Are  source selection decisions derived from the conduct of the source  selections, fully documented, and does the source selection  authority independently exercise prudent business judgment to arrive  at a decision based on the best value to the Government consistent  with the evaluation criteria stated in the solicitation (FAR 15.308  and AFARS 5115.308)?

9.  For  cost type contracts, was a cost realism assessment performed (FAR  15.305(a)(1))?

Step 2: Negotiation.

1. If  discussions are held, is the competitive range determination  substantiated and clearly documented (FAR 15.503(a)(1) and FAR  15.306(c)(3))?

2. Do  records support that discussions were meaningful and the requests  for final proposal revisions adequately capture discussion issues  (FAR 15.306(d)(3) and FAR 15.307(b))?

3. Are  pre-negotiation objectives clearly stated, approved at the  appropriate level, and documented in the file (FAR 15.404-4, FAR  15.406-1, and AFARS 5115.406)?

4. Are  the results of negotiations documented (e.g. price negotiation  memorandum) in sufficient detail and include the contracting  officer s determination of fair and reasonable pricing (FAR  15.406-3(a), DFARS 215.406, and AFARS 5115.406)?

5. Are  certificates of current cost or pricing data obtained, or an  appropriate exception utilized (FAR 15.406-2)?

6. Is  there evidence in the official contract files that contracting  officers are making determinations that the proposed or agreed price  is fair and reasonable (FAR 13.106-3(a) and FAR 15.406-3(a)(11))?

Step 3: Award.

1. Is  the System for Award Management (SAM) website (www.sam.gov) used to  determine if a offeror is debarred or suspended after opening of  bids or receipt of proposals (FAR 9.405(d)(1))? Is verification  obtained from SAM prior to making an award (FAR 9.405(d)(4) and FAR  9.104-6)?

2. Are  appropriate verifications of the prospective contractors  registration in the SAM database completed prior to award of  contracts (FAR 4.1103)?

3. Are  sufficient funds available and compliant with the bona fide needs  statute (AFARS 5101.602-2(a) and 31 U.S. Code 1502(a))?

4. Are  responsibility determinations being conducted prior to award (FAR  9.4, FAR 9.105-1, and FAR 9.105-2)?

5. Are  Equal Employment Opportunity compliance approvals obtained prior to  award (FAR 22.805)?

6. If  greater than $6.5M, are congressional notifications submitted (FAR  5.303(a), DFARS 205.303, and AFARS 5105.303(a)(ii)(1)?

7. Are  CARs prepared, accurate and complete (FAR subpart 4.6)?

8. For  services procurements, are properly certified contracting officer s  representative (COR) appointments executed before award (FAR 37.101,  DFARS 201.602-2, and AFARS 5101.602-2-91)?

9. Are  contracting officers ensuring CORs have completed all mandatory  training requirements and documenting qualifications prior to  appointment (DFARS 201.602-2, DFARS PGI 201.602-2 and AFARS  5101.602-2-91)?

10. Are  performance-based requirements clearly defined? (FAR 37.6, DFARS  237.170-2 and AFARS 5137.590)

11. Are  quality assurance surveillance plans developed, and are clear,  measurable performance standards incorporated into the contract (FAR  37.604, FAR 46.4 and DFARS 246.4)?

12. Are  notifications of award provided to unsuccessful offerors (FAR  15.503)?

13. For  small business set-aside competitions, are pre-award notices  provided to unsuccessful offerors (FAR 15.503(a)(2))?

14. For  awards to large businesses, are subcontracting plans incorporated in  contracts and do they include Electronic Subcontracting Reporting  System requirements (FAR 19.702 and FAR 19.704)?

15. Do  official contract files contain evidence that the requirement for  commercial software and related services, such as software  maintenance, are acquired in accordance with the DoD Enterprise  Software Initiative (DFARS 208.7402, and DFARS PGI 208.74)?

16. Are  peer reviews obtained as appropriate to the value and complexity of  the acquisition (AFARS 5101.170)?

17. Are  legal reviews obtained prior to making award? (AFARS 5101.602-2-90  and as required by local policy)

18. Are  contract awards synopsized through the Government point of entry  (FAR 5.301)?

19. Are  steps taken to ensure that the notice of award is received in a  timely manner, particularly where the successful offeror must  mobilize subcontractors and equipment?

 BB-203 Event Cycle 4: Contract Administration.

Step 1: Documentation.

1. Is  file documentation sufficient to constitute a complete history of  the transaction (FAR 4.801)?

2. Is  there adequate documentation to support modification changes (FAR  4.803(26)(ii) and (iii))?

Step 2: Functional Representatives Responsibilities and Limitations.

1. Are  qualified individuals selected as CORs (DFARS 201.602-2)?

2. Do  COR designations clearly indicate their authority and the  limitations of that authority?

3. Is  there evidence in the official contract files that the contracting  officer reviews (at least annually) the COR official files (AFARS  5101.602-2-91)?

4. Is  there evidence in the official contract file that the COR has  summarized the contractor s performance in the Contractor  Performance Assessment Reporting System annually? (AFARS  5153.303-1.2.d)?

Step 3: Postaward Orientation Conferences.

Is consideration given to the need for postaward orientation conferences to foster a mutual understanding of the contractual agreement and the responsibilities assigned (FAR 42.502)?

Step 4: Contract Modifications.

1. Is  legal counsel requested to make a legal sufficiency determination  prior to issuing a supplemental or bilateral agreement, as  applicable?

2. Is  a deviation approval requested when a clause other than a standard  clause is to be incorporated into a supplemental agreement?

3. Are  modifications issued under the proper authority (FAR 43.102 and FAR  43.201)?

4. Are  change orders issued for work within the scope of the contract (FAR  43.2 and DFARS 243.2)?

Step 5: Government Property Administration.

1. Are  contractors required to publish a property control system describing  the procedures and techniques to be used in managing Government  property (unless the Government property administrator determines it  unnecessary)?

2. Is  regulatory guidance followed to determine contractor liability  should Government properties become lost, damaged, destroyed or  unreasonably consumed (FAR 45.104)?

3. Has  it been determined to be in the best interest of the Government to  provide additional Government property beyond that required under  contract?

4. If  Government property is being provided to the contractor, does the  contract contain specific identification of all Government property  to be furnished, and are property administration records being  maintained in the official contract file (FAR 45.201 and AFARS  5145.390)?

5. If  Government property is being provided to the contractor, has all  property on the contract been properly reported, reutilized, and/or  disposed of during the life of the contract and contract completion  (FAR 45.6)?

Step 6: Options.

1. Before  exercising an option, do contracting officers execute a written  determination that exercising the option is in the best interest of  the Government (FAR 17.207 and DFARS 217.207)?

2. Is  there evidence in the official contract files that the contracting  officer provided written notice to the contractor within the time  period specified in the contract of the intent to exercise the  option (FAR 17.207 and FAR 17.208(g))?

Step 7: Funding.

1. For  incrementally funded cost type contracts, are contractors notifying  the Government in writing when they expected the costs will exceed  75% of the estimated contract amount (FAR 32.703-1(b), FAR  32.706-2(b), and FAR 52.232-22)?

2. If  the contracting officer initiated a contract action in advance of  funds was the correct clause used (FAR 32.703-2, FAR 32.706-1, and  FAR 52.232-18)?

3. Are  award fees being awarded commensurate with contractor performance  over a range from satisfactory to excellent performance as  identified in the award fee plan (FAR 16.401(e)(2) and (3))?

Step 8: Quality Assurance.

1. Are  nonconforming supplies or services offered to the Government  rejected, except as provided in applicable regulations (FAR 46.407)?

2. Is  contractor performance monitored according to established  surveillance plans?

Step 9: Delinquency Actions and Terminations.

1. Do  contracting officers take timely action to alleviate or resolve  delinquencies (FAR 49.607)?

2. Do  contracting officers obtain legal counsel and technical advice prior  to taking action when a default termination is being considered (FAR  49.402-3)?

3. Are  excess funds from terminated contracts deobligated by the  responsible contracting officer (i.e., PCO, ACO or TCO) in a timely  manner?

4. Are  negotiation settlements promptly scheduled and audit reviews and  negotiations tracked to ensure prompt settlement of termination  actions (FAR 49.101(d))?

Step 10: Defense Contracting Audit Agency Audits on Cost Reimbursement Contracts.

1. Are  determinations regarding the allowability of incurred costs on cost  reimbursement contracts consistent with the factors to be considered  in determining allowability (FAR 31 and DFARS 231)?

2. Are  final cost determinations that are inconsistent with the auditor s  advice supported by a memorandum in the contract file describing the  pertinent events and factors considered in reaching the decision?

3. Are  reimbursements due the Government after final audit promptly  processed for collection?

Step 11: Receiving Reports, Acceptance, Final Payment, Contract Completion, and Contractor Evaluation.

1. Are  decisions to accept or reject supplies, or services performed,  documented and distributed in a timely manner?

2. Are  all contractual claims and obligations satisfied prior to contract  closeout and do contracting officers follow proper procedures in  determining and processing claim(s) (FAR 33.2)?

3. Are  contract administration offices initiating administrative closeout  of the contract after receiving evidence of its physical completion  (FAR 4.804-5)?

4. Is  there evidence in the official contract file that the contracting  officer prepared a contractor performance assessment report (FAR  42.1502, DFARS 242.1502, DoD Class Deviation 2012-O0017  and Deviation 2012-O0018, and AFARS  5142.1503)?

Step 12: Other Contracting Officer Administrative Responsibilities.

1. Is  there evidence in the official contract file that contracting  officers have enforced the remedies under FAR clause 52.222-50 or by  reference in FAR 52.212-5?

2. Is  there evidence in the official contract file that the contracting  officer is ensuring that the contractor is performing in accordance  with FAR 52.219-14? (FAR 19.811-3(e) and FAR 19.508(e))

 BB-204 Event Cycle 5: Special Acquisition Situations and Requirements.

Step 1: Simplified Acquisition Procedures.

1. Is  a source list being maintained (FAR 13.102)?

2. Are  files reviewed to ensure that:

1. Requirements  are not split or manipulated to avoid exceeding the simplified  acquisition threshold (FAR 13.003(c)(2))?

2. Related  items are consolidated when practical and advantageous (FAR 13.101  (b))?

3. Unpriced  orders contain appropriate monetary limitations (FAR 13.302-2 (c))?

4. Price  reasonableness is adequately documented (FAR 13.106-3)?

3. Are  recurring orders evaluated at least annually to determine the  appropriateness of establishing, updating, or canceling blanket  purchase agreements (FAR 13.303-2 and FAR 13.303-6)?

4. Are  ordering officers :

1. Appointments  limited to those situations essential for the efficient operation of  the contracting mission (AFARS 5101.602-2-92(b))?

2. Activities  physically inspected or reviewed, at least once each year (AFARS  5101.602-2-90(c)(2))?

5. For  use of the Government commercial purchase card:

1. Are  purchases in compliance with regulations, restrictions, and  controls (FAR 13.301, DFARS 213.270,DFARS 213.301, AFARS 5113.201  and AFARS 5113.270-90)?

2. Are  procedures in place to ensure bills are paid promptly?

3. Are  purchase cards being utilized as a payment vehicle on contracts  over the micro-purchase threshold, when appropriate?

4. Are  procedures in place to track Government property acquired with the  Government purchase card?

Step 2: Construction Requirements.

1. Are  bid guarantee and bonding requirements in compliance with the  guidance at FAR 28.101 and DFARS 228.102?

2. Is  a release of all claims or liens against the Government obtained  prior to final payment (FAR 52.232-5)?

Step 3: Job Order Contracting.

1. Do  unit price book prices, including contractual changes to those  prices, include direct material, direct labor, and equipment costs,  but not indirect costs or profits?

2. Are  negotiated prices fair and reasonable for items that are not  prepriced?

Step 4: Architect-Engineers (AE) Requirements.

1. Are  the qualifications data files on AE firms kept current, to include  review and update at least once a year (FAR 36.603(d))?

2. Are  the required clauses included in AE contracts to protect the  interests of the Government (FAR 36.609)?

3. Are  the reasons for recovering or not recovering costs from an AE firm  whose design deficiencies contributed to a construction contract  modification documented in writing and in the contract file (FAR  36.608)?

Step 5: Services and Performance Based Contracting.

1. Are  formal, measurable (i.e., in terms of quality, timeliness, quantity,  etc.) performance standards and surveillance plans developed to  monitor the services to be performed (FAR subparts 12.102(g)(1)(iv),  FAR 37.503(a), FAR 37.601(b)(2), FAR 37.601(b)(3), FAR 37.603 and  FAR 37.604)?

2. Are  contractor employee complaints regarding wage rates, overtime, and  related matters under the Service Contract Act referred to the  Department of Labor for investigation?

3. Do  service contracts have a written quality assurance surveillance plan  in place that defines the work requiring oversight and explains how  surveillance reviews will be documented?

4. If  a services requirement, does the customer provide a Request for  Civilian Hire or Services Contract Approval with the purchase  request? (For current form, see http://www.asamra.army.mil/insourcing/.)

5. If  the acquisition is a service, is an acquisition strategy prepared  and approved in accordance with AFARS 5137.5?

Step 6: Acquisition of Information Technology.

Are the modular contracts for information technology awarded within 180 days after the solicitation is issued, and is delivery scheduled to occur within 18 months to the maximum extent practicable (FAR 39.103 (e))?

Step 7: Major System Acquisitions.

1. Does  the system acquisition objective promote innovation and full and  open competition (FAR 34.002(a))?

2. Is  effective competition between alternative system concepts and  sources sustained for as long as it is beneficial (FAR 34.002(b))?

3. Are  formal source selection procedures described in AFARS appendix AA:  Army Source Selection Supplement being applied?

Step 8: Research and Development Requirements.

1. Are  work statements adequately tailored by technical and contracting  personnel to obtain the desired degree of flexibility for contractor  creativity and the objectives of research and development (FAR  35.005(a))?

2. Are  recommendations of technical personnel considered by the contracting  officer prior to selection of a contract type to fit the research  work required (FAR 35.006 (b))?

3. Does  the evaluation and award of research contracts consider the  prohibition against obtaining capabilities that exceed those needed  for successful performance (FAR 35.008(a))?

4. Do  those research contracts with educational institutions or nonprofit  organizations requiring a named principal, investigator, or project  leader, contain sufficient controls to ensure an adequate degree of  involvement by the named individual (FAR 35.015(a)(1))?

Step 9: Undefinitized Contract Actions (UCAs).

1. For  UCAs, is there evidence in the official contract file that the  contracting officer received written approval before issuance of the  UCA and has the action been definitized within 180 days or as  otherwise allowed by federal regulation (DFARS 217.7403, DFARS  217.7404-1, DFARS 217.7404-4, DFARS PGI 217.7404 and FAR 16.603-2)?

2. Do  definitization schedules contain all FAR 16.603-2(c) and DFARS  217.7404 requirements, a ceiling not-to-exceed price, and  appropriate contract clauses (FAR 16.603-4, DFARS 216.603-4, and  DFARS 217.7405)?

Step 10: Financial and Cost Aspects of Other Transactions for Prototype Projects.

1. Are  the terms and conditions of the other transaction clear, and  do they protect the Government s interests?

2. When  an other transaction has cost reimbursable features using  payable milestones, does the other transaction address the  procedures for adjusting the payable milestones based on actual  expenditures?

3. To  ensure advance payments do not result under an other transaction  with cost reimbursable features, does the other transaction  require the contractor to submit a report of actual expenditures as  a condition for milestone payment? Does the other transaction  stipulate that the milestone payment will not exceed actual  expenditures?

4. When  an other transaction has firm-fixed price characteristics with  payable milestone provisions, are the payable milestone values  commensurate with the estimated value of the milestone events?

5. When  an other transaction requires the submittal of technical,  business or annual report, has the agreements officer considered  whether these reports are important enough to warrant establishment  of separate milestones, or if report requirements should be  incorporated as part of a larger payable milestone?

6. Does  the other transaction require the delivery of technical  reports to the Defense Technology Information Center, upon  completion of the research and engineering project (DoD Instruction  3200.14)?

7. If  the contractor fails to comply with the terms of the other  transaction , has the agreement administrator taken timely,  appropriate action to remedy the situation?

Step 11: Financial and Cost Aspects for Technology Investment Agreements (TIAs).  (A TIA is defined as a class of assistance instruments that may be used to carry out basic, applied, and advanced research projects when it is appropriate to use assistance instruments, and the research is to be performed by for-profits or by consortia that include for-profit firms, particularly firms that have done business with the Government.)

1. If  a TIA provides for payment to be made based on payable milestones,  are these payable milestones based on observable, technical  progress?

2. At  the completion of each payable milestone or upon receipt of the  quarterly business status report, has the agreements officer  compared the total amount of project expenditures with the amount of  payments for completed milestones? Has the agreements officer  adjusted future payable milestones as needed to closely match  payments to the recipient s cash needs for the project?

3. For  TIAs which use payable milestones, has the agreements officer  included a term or condition in the award document or otherwise  required the recipient to maintain in an interest-bearing account  any payable amounts received in advance of needs to disburse the  funds for program purposes, unless one of the following conditions  applies:

1. The  recipient receives less than $120,000 in Federal awards per year;

2. The  best reasonably available interest bearing account would not be  expected to earn interest in excess of $250 per year on such cash  advances; or

3. The  depository would require an average or minimum balance so high that  it would not be feasible within the expected Federal and non-Federal  cash resources for the project.

4. Has  the agreements officer forwarded any annually earned interest  received from a recipient under a TIA to the responsible payment  office for return to the Department of the Treasury s  miscellaneous receipts account?