Mgmt week 1

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Desktop Reference
Guide to the

Government Contracting and Acquisition

• Bachelor of Arts in Government Contracting and Acquisition

• Master of Business Administration, Government Contracting and
Acquisition Concentration

• Whether focused on procurement or full contract performance, APUS
programs align with the NCMA Contract Management Body of Knowledge
(CMBOK), providing contract managers with an in-depth understanding of
contract, federal, and commercial laws and procurement best practices

• 100+ APUS courses eligible for NCMA CPE Credit

• Go to StudyAtAPU.com/NCMA

• American Public University System (APUS), the accredited institution
comprised of American Public University and American Military University, is an
approved Strategic and Excelerate Partner because our academic programs
give you in-demand skills you need to be ready to lead mission-critical projects
and boost your federal career

• Whether you are responsible for contracting, information technology,
transportation and logistics, or other DoD career fields, we are here to provide
you with an affordable and career-relevant education that helps meet your
needs and professional development goals

• Tuition grants and fee waivers available to Defense Acquisition Workforce

• Learn from a nationally recognized leader in online education—get started
today at APUSPartners.com/DAU

Use of DAU materials does not indicate support or endorsement by DAU, DoD, or the U.S. Government.

Strategic and Excelerate Education Partner

3

Purpose of the Contract Management
Body of Knowledge (CMBOK)

Contract management is a mature profession, but still growing. The
purpose of this guide is to provide a common understanding of the
terms used in the profession. As a basic reference, this document is
neither comprehensive nor all-inclusive; rather, it seeks to provide a
tutorial of the contract management process in commercial as well
as U.S. government contracting.

The fourth edition of the Contract Management Body of Knowledge
(CMBOK) expands, refines, and reorganizes the information
presented in previous editions. It provides further definition of
the field of contract management, the framework for the body of
knowledge, the definitions (lexicon), and the processes of contract
management. It provides procedural steps that apply to the contract
management process in general, as well as specialized areas and
those that are unique to either federal or commercial contracting.
In addition, it includes recommended curricula for contract
management degree programs.

The CMBOK is an inclusive term that describes the sum of knowledge
for the profession of contract management. The complete body of
knowledge concerning contract management resides both with
the practitioners and those who, like academicians and governing
bodies, apply and advance contract management. This body of
knowledge includes both the generally accepted practices (such as
business and finance) that are widely applied, as well as state-of-the-
art practices (such as e-commerce and catalog aggregation).

Readers should note that the CMBOK does not purport to define the
body of knowledge, but rather to serve as a compendium and guide
to the body of knowledge that has been developing and evolving
over the past five decades. Furthermore, this body of knowledge is
not static. The guide must, necessarily, develop and evolve as the
contract management profession matures. It nevertheless constitutes
a valuable source for information on the competencies and
knowledge areas required for success in the profession.

4

This document is also used by NCMA as a basic reference about
contract management knowledge and practices for its professional
development programs, including NCMA’s Certification Program

What is Contract Management as a Profession?

“Contract management” as a profession is a specialized
competency within the procurement profession, but it has a very
broad perspective in terms of the responsibilities assigned to a
contract manager. The job scope ranges from the administration
skills of managing, organizing, and planning to the excitement
and challenge of negotiating a major contract. Both procurement
and contract management demand competence in such
areas as contract law, administration, accounting, psychology,
management, and planning.

What is Contract Management as an Activity?

“Contract management” as an activity is the process of managing
contracts, deliverables, deadlines, and contract terms and
conditions while ensuring customer satisfaction. Public agencies
and private companies know that the purchasing process does not
end when the contract is awarded.

Effective post-award contract management is essential to
the seamless acceptance of supplies and services. Contract
management impacts many areas within an organization and can
significantly influence its budget, operations, customer service, and
public image.

What is a Contract?

A “contract” is an agreement between two or more parties,
especially one that is written and enforceable by law. For a contract
to be valid, both parties must indicate that they agree to the terms.
This is accomplished when one party submits an offer that the
other accepts within a reasonable time or a stipulated period.
If the terms of the acceptance vary from those of the offer, that

5

acceptance legally constitutes a counteroffer; the original offering
party may then accept or reject it. At any time before acceptance,
the offer may be rescinded on notice unless the offering party is
bound by a separate option contract not to withdraw. Only those
terms expressed in the contract can be enforced; secret intentions
are not recognized. For a contract to be binding, it must not have an
immoral or criminal purpose or intent or be contrary to public policy.
Since a contract is an agreement, it may be made only by parties
with the capacity to reach an understanding.

General Contracting Competencies

A contract manager’s skills are developed through continuing
education and practice. A successful contract manager has
developed skills in three main areas:

• Technical

• Conceptual

• Human relations

Technical skills are demonstrated by competently performing the
tasks required, such as preparing and issuing solicitations, preparing
bids and proposals, preparing or analyzing terms and conditions,
or analyzing procurement requirements and supplier capabilities.
Training for these skills can be accomplished in degree, certificate,
professional continuing education, or specialized programs.

Conceptual skills relate to the manner in which the contract
manager visualizes the contract’s organization in terms of the agency’s
or company’s goals. These skills involve the ability to see and use the
“big picture” for greater organizational and personal success.

Human relations skills focus on the “people” aspect of contract
management. Effective performance requires people to cooperate
with each other even when the contract manager has little or no
organizational control over them. Dealing with government and
contractor representatives from a diverse range of disciplines
requires strong relational and communication skills. Many contract

6

managers consider competency in human relations to be the most
important skill for the future of their jobs and careers.

Interrelationships of Contract Managers

Knowledge is also gained through a critical review of the myriad
activities performed by contract managers. The diagram below
depicts the interrelationships and activities performed daily
by contract managers. A contract manager’s activities include
coordination with those personnel who think they need an item or
service and continue through the development of a contract, its
administration, and its ultimate successful completion and closeout.
Along the way, the contract manager interacts with those who
need the item or service, those who know and can describe the
item or service, those who are the keepers of the finances, and all
the people involved, as well as all the people who are in charge of
those involved—the contract manager affects a wide circle.

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7

Contract Life Cycle

Contracts have a defined beginning and end. The contract life cycle
defines these parameters. The contract life cycle is broken down into
several contract phases. The phases during the total life
cycle can generally be categorized as:

• Pre-award

• Contract award

• Post-award

There is also consideration of special competencies required based
on the requirement, contract type, and processes employed in the
contract life cycle.

Pr
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8

Pre-Award Phase

The pre-award phase actually begins with acquisition planning.
Planning is an essential preliminary component to successfully
completing virtually any effort. Acquisition planning is a critical
first step in the contract life cycle. Competencies such as
conducting market research, selecting the proper contract type,
formulating the acquisition strategy, and preparing requirements
documents are all part of this phase.

Award Phase

Once the planning is completed, the next phase involves
all of the work that leads up to an awarded contract. Some
acquisitions are very simple, others are exceedingly complex,
and the majority fall somewhere in the middle. This phase
includes evaluating proposals, conducting negotiations, and
completing source selection.

The award phase is a transitional phase that goes from signing
a contract to notifying unsuccessful vendors. The elements of
the contract award phase include completing contract award,
addressing any mistakes in proposals, debriefing of unsuccessful
offers, and addressing any protests or litigation.

Post-Award Phase

This involves all of the contract management functions known as
“contract administration.” The contract administration functions
will vary greatly depending on the complexity of the contract.
However, the basic premise remains the same. Is the seller
delivering what the contract requires? The post-award phase
includes the necessary contract administration activities in order
to ensure performance and bring the contract to a successful
conclusion. This includes executing contract modifications,
addressing any issues arising during contract performance, and
(upon completion of performance, invoicing, and payment)
closing out the contract.

9

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The CMBOK Structure

The CMBOK may be organized into three major components:

• Foundational (or core) competencies

• Subject matter competencies

• Job or task level skills

The same structure can apply to both federal and commercial
contract management. Foundational competencies are those
general competencies needed for success regardless of job or
role, while subject matter competencies relate to particular fields
or subjects. Job or task level competencies involve performing
specific tasks related to the work.

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a

n
d

L
o

ca
l

G
o

ve
rn

m
e

n
t

4
.8

S
u

p
p

ly
C

h
ai

n
M

an
ag

e
m

e
n

t

5
.1

M
an

ag
e

m
e

n
t

5
.2

M
ar

ke
ti

n
g

5
.3

O
p

e
ra

ti
o

n
s

M
an

ag
e

m
e

n
t

5
.4

F
in

an
ci

al
A

n
al

ys
is

5
.5

A
cc

o
u

n
ti

n
g

5
.6

E
co

n
o

m
ic

s

5
.7

In
fo

rm
at

io
n

S
ci

e
n

ce

5
.8

L
e

ad
e

rs
h

ip
S

ki
lls

4
.9

G
o

ve
rn

m
e

n
t

P
ro

p
e

rt
y

4
.1

0
O

th
e

r
S

p
e

ci
al

iz
e

d
A

re
as

13

CMBOK Outline of Competencies

1.0 Pre-Award Competencies

The pre-award contract management competencies cover a
variety of areas that impact contract management. A fundamental
understanding of these areas is important before awarding and
managing contracts, which is why they are in the “pre-award”
category. The pre-award competencies cover eight topics that must
be fundamentally understood before the contract management
process begins. These competencies are relevant throughout the
entire contract management life cycle and influence decision making.

1.0 Pre-Award Competencies

1.1 Laws and Regulations

1.2 Contract Principles

1.3 Standards of Conduct

1.4 Socioeconomic Programs

1.5 Contract Types

1.6 Contracting Methods

1.7 Contract Financing

1.8 Intellectual Property

14

C
o

n
tr

ac
t T

yp
e

s

Fi
xe

d
P

ri
ce


F

ir
m

fi
xe

d
p

ri
ce


F

ix
e

d
p

ri
ce

le
ve

l

o
f e

ff
o

rt

F
ix

e
d

p
ri

ce

e

co
n

o
m

ic
p

ri
ce

ad
ju

st
m

e
n

t

F
ix

e
d

p
ri

ce

re
d

e
te

rm
in

ab
le

p

ro
sp

e
ct

iv
e


F

ix
e

d
p

ri
ce

re

d
e

te
rm

in
ab

le

re
tr

o
ac

ti
ve


F

ir
m

fi
xe

d

p

ri
ce

le
ve

l

o
f e

ff
o

rt
te

rm

C
o

st
R

e
im

b
u

rs
e

m
e

n
t


C

o
st


C

o
st

s
h

ar
in

g

C
o

st
p

lu
s

fix
e

d
p

ri
ce

In
ce

n
ti

ve

F
ix

e
d

p
ri

ce
in

ce
n

ti
ve


F

ix
e

d
p

ri
ce

a
w

ar
d

fe
e


C

o
st

p
lu

s
in

ce
n

ti
ve

fe

e

C
o

st
p

lu
s

aw
ar

d
fe

e

O
th

e
r


In

d
e

fin
it

e
d

e
liv

e
ry


T

im
e

a
n

d
m

at
e

ri
al

s

L
ab

o
r

h
o

u
r


L

et
te

r

A
g

re
e

m
e

n
ts

15

2.0 Acquisition Planning
and Strategy Competencies

The acquisition planning and strategy competencies
cover the beginning of the acquisition cycle from
planning to protest. These competencies review
important considerations and decisions that are
necessary to form a successful contract. Contract
managers need to understand the importance of
these strategic decisions and their impact on the
resulting contract. Many problems of contract
performance and administration can be avoided
during this acquisition strategy phase.

2.0 Acquisition Planning
and Strategy Competencies

2.1 Acquisition Planning, Market Research,
and Marketing

2.2 Drafting Solicitations

2.3 Responding to Solicitations

2.4 Negotiation

2.5 Source Selection and Contract Award

2.6 Protests

16

C
o

m
p

e
ti

ti
o

n
T

ab
le

Le
ve

l
B

u
ye

rs
S

e
lle

rs
M

ar
ke

t
E

n
tr

y/
E

xi
t

R
e

la
ti

ve
P

ri
ci

n
g

P
o

w
e

r

Pe
rf

ec
t

C
o

m
p

et
iti

o
n

M
an

y

in
d

ep
en

d
en

t
M

an
y

in

d
ep

en
d

en
t

Re
la

tiv
el

y
ea

sy
Pr

ic
in

g
b

al
an

ce
b

et
w

ee
n

b
uy

er
s

an
d

s
el

le
rs

Eff
ec

tiv
e

C

o
m

p
et

iti
o

n
Li

m
ite

d

in
d

ep
en

d
en

t
Li

m
ite

d

in
d

ep
en

d
en

t
Re

la
tiv

el
y

ea
sy

Re
la

tiv
e

p
ric

in
g

b
al

an
ce

b
et

w
ee

n
b

uy
er

s
an

d

se
lle

rs

O
lig

o
p

o
ly

M
an

y

in
d

ep
en

d
en

t
Fe

w

in
d

ep
en

d
en

t
Re

st
ric

tio
ns

Re
la

tiv
el

y
g

re
at

er
p

ric
in

g
a

d
va

nt
ag

e
to

s
el

le
rs

O
lig

o
p

so
ny

Fe
w

in

d
ep

en
d

en
t

M
an

y

in
d

ep
en

d
en

t
Re

la
tiv

el
y

ea
sy

Re
la

tiv
el

y
g

re
at

er
p

ric
in

g
p

o
w

er
to

b
uy

er
s

M
o

no
p

o
ly

M
an

y

in
d

ep
en

d
en

t
O

ne
Re

st
ric

tio
ns

C
o

ns
id

er
ab

le
p

ric
in

g
p

o
w

er
to

s
el

le
rs

M
o

no
p

so
ny

O
ne

M
an

y

in
d

ep
en

d
en

t
Re

la
tiv

el
y

ea
sy

C
o

ns
id

er
ab

le
p

ric
in

g
p

o
w

er
to

b
uy

er
s

B
ila

te
ra

l
M

o
no

p
o

ly
O

ne
O

ne
Re

st
ric

tio
ns

Pr
ic

in
g

p
o

w
er

e
st

ab
lis

he
d

b
y

ne
g

o
tia

tio
n

(a
s

in
s

o
le

s
o

ur
ce

g
o

ve
rn

m
en

t n
eg

o
tia

tio
n)

17

S
am

p
le

A
d

je
ct

iv
al

E
va

lu
at

io
n

R
at

in
g

S
ys

te
m

O
u

ts
ta

n
d

in
g

A
p

ro
p

o
sa

l t
ha

t s
at

is
fie

s
al

l o
f t

he
g

o
ve

rn
m

en
t’s

re
q

ui
re

m
en

ts
, w

ith
e

xt
en

si
ve

d
et

ai
l i

nd
ic

at
in

g
th

e
fe

as
ib

ili
ty

o
f t

he
a

p
p

ro
ac

h
an

d
a

th
o

ro
ug

h
un

d
er

st
an

d
in

g
o

f t
he

p
ro

b
le

m
s.

T
he

p
ro

p
o

sa
l h

as
n

um
er

o
us

si

g
ni

fic
an

t s
tr

en
g

th
s

th
at

a
re

n
o

t o
ffs

et
b

y
w

ea
kn

es
se

s.
T

he
p

ro
p

o
sa

l h
as

a
n

o
ve

ra
ll

lo
w

d
eg

re
e

o
f r

is
k.

G
o

o
d

A
p

ro
p

o
sa

l t
ha

t s
at

is
fie

s
al

l o
f t

he
g

o
ve

rn
m

en
t’s

re
q

ui
re

m
en

ts
, w

ith
a

d
eq

ua
te

d
et

ai
l i

nd
ic

at
in

g
a

fe

as
ib

le
a

p
p

ro
ac

h
an

d
a

n
un

d
er

st
an

d
in

g
o

f t
he

p
ro

b
le

m
s.

T
he

p
ro

p
o

sa
l h

as
s

o
m

e
si

g
ni

fic
an

t s
tr

en
g

th
s

o
r n

um
er

o
us

m
in

o
r s

tr
en

g
th

s
th

at
a

re
n

o
t o

ffs
et

b
y

w
ea

kn
es

se
s.

T
he

p
ro

p
o

sa
l h

as
a

n
o

ve
ra

ll
lo

w
to

m

o
d

er
at

e
d

eg
re

e
o

f r
is

k.

A
cc

e
p

ta
b

le
A

p
ro

p
o

sa
l t

ha
t s

at
is

fie
s

al
l o

f t
he

g
o

ve
rn

m
en

t’s
re

q
ui

re
m

en
ts

, w
ith

m
in

im
al

d
et

ai
l i

nd
ic

at
in

g
a

fe
as

ib
le

ap

p
ro

ac
h

an
d

a
m

in
im

al
u

nd
er

st
an

d
in

g
o

f t
he

p
ro

b
le

m
s.

T
he

p
ro

p
o

sa
l h

as
a

n
o

ve
ra

ll
m

o
d

er
at

e
to

h
ig

h
d

eg
re

e
o

f r
is

k.

M
ar

g
in

al
A

p
ro

p
o

sa
l t

ha
t s

at
is

fie
s

al
l o

f t
he

g
o

ve
rn

m
en

t’s
re

q
ui

re
m

en
ts

, w
ith

m
in

im
al

d
et

ai
l i

nd
ic

at
in

g
a

fe
as

ib
le

ap

p
ro

ac
h

an
d

a
m

in
im

al
u

nd
er

st
an

d
in

g
o

f t
he

p
ro

b
le

m
. T

he
p

ro
p

o
sa

l h
as

a
n

o
ve

ra
ll

hi
g

h
d

eg
re

e
o

f r
is

k.

U
n

ac
ce

p
ta

b
le

A
p

ro
p

o
sa

l t
ha

t c
o

nt
ai

ns
a

t l
ea

st
o

ne
m

aj
o

r e
rr

o
r,

o
m

is
si

o
n,

o
r d

efi
ci

en
cy

th
at

in
d

ic
at

es
a

la
ck

o
f

un
d

er
st

an
d

in
g

o
f t

he
p

ro
b

le
m

s.
T

he
a

p
p

ro
ac

h
ca

nn
o

t b
e

ex
p

ec
te

d
to

m
ee

t r
eq

ui
re

m
en

ts
o

r i
nv

o
lv

es
a

ve

ry
h

ig
h

ris
k.

N
o

ne
o

f t
he

se
c

o
nd

iti
o

ns
c

an
b

e
co

rr
ec

te
d

w
ith

o
ut

a
m

aj
o

r r
ew

rit
e

o
r p

ro
p

o
sa

l r
ev

is
io

n.

18

3.0 Post-Award Competencies

After a contract is awarded there are many significant and important
activities required that often determine the success of the contract.
Post-award contract administration competencies are equally critical
to successful performance.

Contract performance begins after contract award and these tasks
are usually referred to as “contract administration.” The range
and extent of contract administration activities required will vary
greatly, depending primarily on the type of contract, complexity
of the requirement, dollar value, and importance of the contract to
the organization.

Effective contract administration is a shared responsibility of both the
buyer and seller. The contract specifies the duties and obligations for
which both parties are responsible and the benefits or consideration
to which each party is entitled. Contract administration is the
process that provides the oversight required to ensure that both
parties follow the contract requirements.

Contract administration can be tailored based on the complexity
of the requirement and size of the organization. The challenge and
complexity of effective contract administration increases with the
size and complexity of the buyer’s and seller’s organizations and the
number of contracts to manage. Contracting professionals in large,
complex organizations frequently find themselves simultaneously
responsible for administration activities on multiple contracts, and
usually require technical assistance and communication with internal
professional resources, management, and other stakeholders.

19

3.0 Post-Award Competencies

3.1 Contract Management

3.2 Contract Performance and Quality Assurance

3.3 Subcontract Management

3.4 Contract Changes and Modifications

3.5 Transportation

3.6 Contract Interpretation and Disputes

3.7 Contract Closeout

3.8 Contract Termination

4.0 Specialized Knowledge Area Competencies

Specialized knowledge areas require additional contract
management skills that are over and above those presented in
the pre-award, acquisition planning and strategy, and post-award
competencies. These additional professional skills are necessary
for contract managers to 1) perform efficiently and effectively in a
specific industry or work environment, or 2) interact productively
with other specialized professionals.

Certain types of contracting actions require highly specialized
experience and knowledge to perform effectively. This section
presents a brief overview of various contracting specialty areas.
Some of the areas relate exclusively to government contracting,
others relate exclusively to commercial contracting, and some
have a degree of application to both the government and
commercial sectors.

20

4.0 Specialized Knowledge Areas

4.1 Research and Development

4.2 Architect- Engineer Services and Construction

4.3 Information Technology

4.4 Major Systems

4.5 Service Contracts

4.6 International Contracting

4.7 State and Local Government

4.8 Supply Chain Management

4.9 Government Property

4.10 Other Specialized Areas

5.0 Business Competencies

All contract managers must understand various aspects
of business. In order to make sound business decisions,
contract managers’ skill sets should go beyond knowing
the contract’s terms and conditions; they must also know
about the marketplace in which their organization operates,
including finance, economics, and accounting. They must
be able to manage and lead a team and understand how to
use technology to meet the organization’s goals.

21

Over 10 years ago, one noted professional,
W. Gregor Macfarlan, predicted that “the success of
contracting professionals will be measured by their
business management skills, not how many contracts
are awarded or changes processed.” That prediction
has come true. Today, a contract manager’s job is
more strategic and team-oriented, requiring technical
competency and acquisition skills to meet customer
needs. Understanding and applying business skills are
important steps toward providing valuable customer
service to your organization.

5.0 Business

5.1 Management

5.2 Marketing

5.3 Operations Management

5.4 Financial Analysis

4.5 Service Contracts

5.5 Accounting

5.6 Economics

5.7 Information Science

5.8 Leadership Skills

22

Code of Ethics

Contract Management Code of Ethics

The National Contract Management Association (NCMA) Code of
Ethics establishes standards for contract management professionals
and is intended to maintain the public trust in the contract
management process. As an NCMA member, you are expected to
abide by the letter and spirit of the code by observing the following
summary of obligations:

General Obligations

Integrity: Fulfill your duties without deception or misleading
practices, and support and encourage others to do the same.

Accountability: Accept responsibility for your own conduct and
performance.

Good faith: Conduct business in good faith, make any required
disclosures, and avoid actual or apparent conflicts of interest.

Professionalism: Be knowledgeable of all aspects of the
contracting profession, apply it to the best of your ability to serve
employers, clients, partners, and the public interest, and share
objective advice that’s free from improper influence.

Confidentiality: Protect confidential information concerning the
business affairs of any present or former employer, government
agency, business partner, or public body on which you or they serve.

Compliance with laws: Comply with all laws and regulations
governing contract management activities in all jurisdictions in which
you conduct business.

Trust: Establish and maintain the integrity of the entire contract
management process.

Respect: Maintain mutual respect with others as you conduct your
professional duties.

23

Obligations to the Profession

Professional reputation: Avoid disparaging statements affecting
the professional reputation of other contract management
professionals and act so as to bring credit upon the profession and
the association.

Mutual accountability: Mutually hold other members accountable
for compliance with this code.

Professional development: Keep informed of developments in
the contract management field to maintain your knowledge, skills,
and professional competencies.

Advancement by qualification: Encourage hiring and promotion
within the contract management profession based upon an
individual’s professional qualifications.

Professional qualifications & certification: Make only truthful
claims concerning your professional qualifications, certification
status, or experience, and use your professional certifications or
designations only in accordance with the practice and rules of
NCMA or the granting body.

Obligations to the Association

Service: Support the association willingly by serving in chapter or
national offices without compensation for the purpose of advancing
the contract management profession.

Violations: Report suspected violations of this code to an official of
NCMA at the appropriate level (chapter or national).

Violations of this code are subject to discipline in the judgment
of NCMA up to, and including, revocation of membership and
certification. Members shall not retaliate in any form against anyone
who raises a valid concern under this code.

24

Acronyms

BOA
basic ordering agreement
BPA
blanket purchase agreement
CCP
contract change proposal
CID
commercial item description
CLIN
contract line item number
COC
certificate of competency
COI
conflict of interest
COR
contracting officer’s representative
COTS
commercial off-the-shelf
DARO
delivery after receipt of order
DID
data item description
EAC
estimate at completion
ECP
engineering change proposal
ETC
estimate to complete
FAT
first article testing
FMS
foreign military sales
FPRA
forward pricing rate agreement
IDIQ
indefinite delivery/
indefinite quantity

IFB
invitation for bids
incoterms
international commercial terms
LOE
level of effort
MOL
maximum ordering limitation
NDI
nondevelopmental item
NTE
not to exceed
OEM
original equipment manufacturer
PALT
procurement administrative
lead time
PBL
performance-based logistics
QASP
quality assurance surveillance plan
REA
request for equitable adjustment
RFI
request for information
RFP
request for proposals
RFQ
request for quotations
SOO
statement of objectives
SOW
statement of work
T4C
termination for convenience
T4D
termination for default

25

Common Terminology

acceptance

The act of an authorized representative of the buyer by which the
buyer assents to ownership of existing and identified supplies,
or approves specific services rendered, as partial or complete
performance of a contract.

competition

Part of an acquisition strategy whereby more than one company is
asked to submit an offer (quote, bid, or proposal) to deliver supplies
or perform services. The winner is selected on the basis of criteria
established in the solicitation (request for quotations, invitation for
bids, or request for proposals).

consideration

Anything of value that changes hands between the parties to
a contract.

contract formation

The elements of offer, acceptance, mutuality of consideration,
competent parties, legal subject matter, and mutuality agreement.

contract modification

Any written change in the terms of a contract.

cost-reimbursement contract

A form of pricing arrangement that provides for payment of
allowable, allocable, and reasonable costs incurred in the
performance of a contract to the extent that such costs are
prescribed or permitted by the contract.

equitable adjustment

The compensation or price adjustment to which a contractor is
entitled upon the occurrence of a contract change or special event.

26

fair and reasonable price

A price that is fair to both the buyer and the seller, considering
the agreed-upon conditions, promised quality, and timeliness of
contract performance. Although generally a fair and reasonable
price is a function of the law of supply and demand, there are
statutory, regulatory, and judgmental limits on the concept.

firm-fixed-price (FFP) contract

A contract that provides for a price that is not subject to any
adjustment by reason of costs experienced by the contractor in the
performance of the contract.

lowest price technically acceptable (LPTA)

This source selection process is appropriate when best value is
expected to result from selection of the technically acceptable
proposal with the lowest evaluated price.

market research

The process used for collecting and analyzing information about
the entire market available to satisfy the minimum agency needs to
arrive at the most suitable approach to acquiring, distributing, and
supporting supplies and services.

negotiation

A process between buyers and sellers seeking to reach mutual
agreement on a matter of common concern through fact-finding,
bargaining, and persuasion.

offer

A legally binding promise, made by one party to another, to enter
into a contractual agreement if the offer is accepted.

performance work statement (PWS)

A statement of work expressed in terms of desired performance
results, often including specific measurable objectives.

27

source selection

The process wherein the requirements, facts, recommendations,
and policies relevant to an award decision in a competitive
procurement of a system/project are examined and the decision
made.

statement of work (SOW)

That portion of a contract describing the actual work to be done by
means of specifications or other minimum requirements, quantities,
performance date, and a statement of the requisite quality.

terms and conditions (T’s and C’s)

All language in a contract, including time of delivery, packing and
shipping, applicable standard classes, and special provisions. The
primary function of terms and conditions is to eliminate or reduce
the risk of contract ambiguity; often the source of disputes and
misunderstandings.

tradeoff

The selection among alternatives with the intent of obtaining
optimal, achievable system configuration. Often, a decision is
made to opt for less of one parameter in order to achieve a more
favorable overall system result.

28

DAU Certification Standards
for Contracting Level I and II

Contracting
Level I

Contracting
Level II

Acquisition
Training

• None required • ACQ 101*

Functional
Training

• CON 090*

• CON 100

• CON 121

• CON 124

• CON 127

• CON 170*

• CLC 025

• CLC 033

• CLC 057

• CLC 058

• CON 200

• CON 216

• CON 270

• CON 280

• CON 290

• CLC 051

• CLC 056

• HBS 428

Education • At least 24 semester hours in
accounting, law, business, finance,
contracts, purchasing, economics,
industrial management, marketing,
quantitative methods, or organization
and management

• Baccalaureate degree (Any Field of
Study)

Experience 1 year of contracting
experience.

2 years of contract-
ing experience.

For qualified AT&L workers with Level I, II, or III Certification in Contracting, APUS
may award 3 SH – 9 SH of graduate level transfer credit (refer to DAU Excelerate
Partnership Matrix).

* Denotes transferable credit into an APUS program (refer to DAU Strategic Partnership matrix)

29

DAU Certification Standards
for Contracting Level III

Contracting
Level III

Acquisition
Training

• ACQ 202

Functional
Training

• CON 360*

• 1 additional course from the Harvard
Business Management Modules

• Elective Requirement. Select one of
the below courses:

• ACQ 265

• ACQ 315

• ACQ 370

• CON 232*

• CON 244

• CON 252*

• CON 334

• CON 370*

• Through FY15, the below
course may be used to meet this
requirement.

• CON 250

Education • At least 24 semester hours in
accounting, law, business,
finance, contracts, purchasing,
economics, industrial management,
marketing, quantitative methods, or
organization and management

• Baccalaureate degree (Any Field of
Study)

Experience 4 years of contracting experience

For qualified AT&L workers with Level I, II, or III Certification in Contracting,
APUS may award 3 SH – 9 SH of graduate level transfer credit (refer to DAU
Excelerate Partnership Matrix).

* Denotes transferable credit into an APUS program (refer to DAU Strategic Partnership matrix)

30

DAU: The Acquisition Learning Model

DAU’s Acquisition Learning Model, or ALM, is a comprehensive
framework built on three distinct, but symbiotic, types of learning:

Foundational Learning provides the workforce with long-term
knowledge and mental habits through structured training courses,
continuous learning modules, and policy updates.

Workflow Learning builds on Foundational Learning and helps the
workforce succeed on the job, every day, by providing access to
online acquisition resources and performance support tools.

Performance Learning uses high-impact opportunities to change
acquisition outcomes by applying significant resources when
they matter most for programs, teams, and the overall workforce.
Performance Learning includes mission assistance, training for
intact acquisition teams, support of the Acquisition Workforce
Qualification Initiative, and applied acquisition research.

DAU: Core Plus

Core Plus represents an enhanced career field certification
and development framework designed to guide acquisition
professionals to competency development beyond the minimum
standards required for certification, based on specific types of
assignments within an acquisition function/career field. The center
of the target, Core Acquisition Certification, represents the broad
range of competencies that are common across the DoD’s AT&L
workforce. The inner ring, Core Functional Certification, represents
those core specialized competencies that relate to one or more of
the 14 acquisition career fields. The Core Acquisition Certification
and Core Functional certification competencies are required for
career field certification. The outer ring, Core Plus, represents
additional training beyond that required for certification for specific
types of job assignments in a particular acquisition career field. This
includes continuous learning modules (CLMs) from among the 61
Contracting CLMs available. (see figure 4)

31

About Defense Acquisition University

Mission:

Provide a global learning environment to develop qualified acquisition,
requirements and contingency professionals who deliver and sustain
effective and affordable warfighting capabilities.

Vision:

Enabling the Defense Acquisition Workforce to achieve better
acquisition outcomes, now and in the future.

Mailing Address, DAU HQ:

Defense Acquisition University
9820 Belvoir Road Fort Belvoir, VA 22060

Regional Contact Numbers:

DAU Headquarters: (800) 845-7606
Capital & Northeast Region: (703)805-2764
Mid-Atlantic: (240) 895-7344
South Region: (256) 922-8020
Midwest Region: (937) 781-1025
West Region: (619) 524-4814, DSN 524-4814

Please visit our website at: www.dau.mil

Cor
e Plus

C
o

re
F

un
ctio

nal Certificatio
nCore

Acquisition
Certification

Common acquisition
knowledge and skills

Career Field foundation
knowledge and skills

“Plus” or job competency
point-of-need

training (frequently CLMs)

Figure 4

32

About the National Contract
Management Association

The National Contract Management Association (NCMA) was
formed in 1959 to foster the professional growth and educational
advancement of its members. It is a membership-based
professional society whose leadership is composed of volunteers.
The NCMA office has a full-time staff to support its members’
needs. The NCMA Staff Directory provides information about the
office departments responsible for different services.

NCMA is located at:

21740 Beaumeade Circle, Suite 125
Ashburn, Virginia 20147

Our phone numbers are:

571.382.0082 (Local)
800.344.8096 (Toll-Free)

Please visit our website at: www.ncmahq.org

The office is open between the hours of
8:30 a.m. and 5:00 p.m. (EST).

All material for this pocket guide is from NCMA’s
Contract Management Body of Knowledge, 4th edition.

33

Notes

34

Notes

About American Public University System

Quick Facts:

• American Public University System is accredited by the Higher
Learning Commission (HLC) (www.hlcommission.org, 312-263-0456)

• APUS is comprised of American Military University & American
Public University

• #1 provider of higher education to the U.S. Armed Forces
(reported by Military Times, August 2014)

• 150,000+ students & alumni located in 140+ countries

• 500+ faculty members hold doctoral degrees from
leading universities

• 190+ online degrees & certificates (undergraduate & graduate)

• 17 programs awarded specialized accreditation from the Accreditation
Council for Business Schools & Programs (ACBSP)

University & Student Honors :

• The only four-time recipient of the prestigious Online
Learning Consortium’s Effective Practice Award (2009,
2010, 2013 & 2014)

• Named to U.S. News & World Report’s ranking of top
online degree programs for the third consecutive year

• Since 2012 more than 30 graduate students & alumni honored as
Presidential Management Fellowship finalists—one of the nation’s most
prestigious programs for leadership and public service

American Military University and American Public University are part of the accredited American Public University
System, and are certified to operate by SCHEV. We want you to make an informed decision about the university that’s
right for you. For more about our graduation rates, the median debt of students who completed each program, and
other important information—visit www.APUS.edu/disclosure.

StudyatAPU.com/NCMA APUSPartners.com/DAU

July 2015

INCREASE YOUR
WORKFORCE
COMPETITIVENESS
Become an educational partner with
American Public University System today

To learn more about our partnership benefits, contact

[email protected] or visit www.StudyAtAPU.com/Solutions

This assignment will be submitted to Turnitin®.,

Instructions:
During Week One only, you have two parts to the assignment.Part One: due on Thursday of Week One. It is ungraded but required. Because it is ungraded, you turn it in as an attachment to a message to me.Part Two: This is due on Sunday of Week One. This is the graded portion of the Week One assignment and should be submitting using the Week One Assignment section in the classroom.

VERY IMPORTANT! If you have not already read the information in the Content Section (link is located on the left-hand side in the classroom), you should do so without delay. You will find additional information there that will help you be successful in this class.

Part 1. Identify the Client
Step One this week is to identify a client for whom you will act as a consultant. The client can be your own work group or company, a family business you are involved with, a business you worked for previously, a volunteer organization you work for or have worked with, or a public company. The client you choose should be a small group or organization in which you can influence change in your role as a consultant. Please do not select “the military” or “the U.S. government” or “Giant XYZ Corporation.” However you may choose a small entity, such as a work group, within any of the larger organizations. For example, if you are in the military, focus on your group. If you select a Giant XYZ Corporation, select the department. Directions: Submit a summary describing the client and your relationship to the client. The summary should be no more than a couple of paragraphs. This can be submitted in a word document or the body of a message via the messaging feature in the classroom. The summary will be included in part two of your paper. The purpose of submitting a summary is to confirm your client and identified problem fit the case study criteria. This is due by midnight on Thursday of Week 1. Please submit it as an attachment to a message sent via the Messaging feature in the classroom. This is ungraded but required in order to have your client approved.

Part 2. Identify the Problem

Step two is to identify a problem or issue that is impacting performance in the organization. With your knowledge of the client you have identified and the learning you have acquired to this point, identify a management problem you will investigate and for which you will provide recommended solutions. If you are working with a supervisor or manager, you may want to consult with them to complete this step. Read the material at the sites listed in the Week 1 Content Section to help guide you in identifying a management problem in your work environment. Complete a 2-4 page paper discussing the client and the management problem you will explore during this course.This course is designed to provide hands-on experience that utilizes the learning from previous courses. With your knowledge of the client you have identified and the learning you have acquired to this point, identify a management problem you will investigate and for which you will provide recommended solutions. If you are working with a supervisor or manager, you may want to consult with them to complete this step. Some questions you can explore to help you are:

• What are the goals of the company/division/work group?
• In considering the goals, where does progress halt?
• Is there data to substantiate this or is it a perception of the manager?
• Who is involved…the manager, the employees, stakeholders?
• How long has this problem existed?
• What and how are expectations and requirements communicated?
• When expectations or key deadlines are missed, what happens?
• What factors contribute to the problem (politics, structure, decision-making factors)?j
• Are technical skills or training contributing to the problem?
• Are there ethical issues relating to the problem?
• If so, how have those issues been handled to date?

These questions do not all need to be answered nor is this list all inclusive; they are provided to help you get started and inspire your own questions to explore while completing this assignment.

As you think about this consider:

When relationships experience roadblocks of any sort we can say there is a problem in the relationship. This is true for both personal and professional relationships. When identifying and analyzing potential problems one would start first with symptoms of the problem. This is sometimes a difficult process as it can be easy to confuse symptoms with the problem. For instance, perhaps as a manager you are dealing with a lack of acceptable productivity with two of the ten people who work in your area of responsibility. Maybe one of those people is cranky and difficult to work with.

In this case the problem you need to solve as a manager is one of increasing productivity in your area to an acceptable level. Managers respond to this issue in many different ways depending upon their skill, ability, knowledge and maturity. Some managers may transfer some of the work from the two problem employees to some or all of the eight other employees. This solution will, in turn, produce additional symptoms that now are visible in the behavior and productivity level of the other eight employees in addition to the original two employees. You can see that this solution will only continue to affect productivity in a negative manner and never really solves the problem. This is why, during the problem identification stage, one ought to be certain they are looking at the problem and rather than trying to reduce or eliminate symptoms.

NOTE: Research is required for this an all of the papers in this class. You must have a minimum of two unique sources each week, neither of which can be Wikipedia.

Turn in: Two to four page paper in a word document, submitted to your Week 1 “Identify the Problem” Assignment folder in the classroom. This is due by midnight on Sunday of Week 1.

IMPORTANT! This class is based on the successful completion of each week’s work. Each week builds upon the previous week in order to complete a comprehensive project. No work in the current or future weeks will be accepted without successful completion of all previous weeks.

Government Contracting & Acquisition students should review pages 5-6 and pages20-23 of the Contract Management Body of Knowledge (CMBOK) Desktop Pocket Guide for additional guidance.,

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