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AFARS Appendix BB



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 principal assistant responsible for contracting (PARC) at the midpoint during the office chief/director’s tour. The PARC 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 PARC. 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 PARC’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.

Step 2: Requiring Activity Coordination.

Step 3: Office Automation.

Step 4: Staffing, Facilities, and Training.

Step 5: Contracting Reports and Reviews.

Step 6: Socio-Economic Goals.

Step 7: Standards of Conduct.

BB-201 Event Cycle 2: Presolicitation.

Step 1: Acquisition Planning and Strategy.

Step 2: Purchase Request and Review.

Step 3: Competition Considerations.

Step 4: Solicitation Preparation.

Step 5: Publicizing Contract Opportunities and Award Information.

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

Step 1: Source Selection and Evaluation.

Step 2: Negotiation.

Step 3: Award.

BB-203 Event Cycle 4: Contract Administration.

Step 1: Documentation.

Step 2: Functional Representatives’ Responsibilities and Limitations.

Step 3: Postaward Orientation Conferences.

Step 4: Contract Modifications.

Step 5: Government Property Administration.

Step 6: Options.

Step 7: Funding.

Step 8: Quality Assurance.

Step 9: Delinquency Actions and Terminations.

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

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

Step 12: Other Contracting Officer Administrative Responsibilities.

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

Step 1: Simplified Acquisition Procedures.

Step 2: Construction Requirements.

Step 3: Job Order Contracting.

Step 4: Architect-Engineers (AE) Requirements.

Step 5: Services and Performance Based Contracting.

Step 6: Acquisition of Information Technology.

Step 7: Major System Acquisitions.

Step 8: Research and Development Requirements.

Step 9: Undefinitized Contract Actions (UCAs).

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

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.)

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