According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? - correct answer Comparison of proposed prices
... [Show More] received in response to the solicitation *
How may you request an audit? - correct answer All of these are correct
A "questioned cost" is one that has not yet been evaluated. - correct answer False *
True or False: "Direct labor positions" share the same titles and pay levels. - correct answer False *
For which of the following procurements would you require certified cost or pricing data? - correct answer An offer of $800,000 for an item from the only known source of an electronic system unique to Government requirements.
How is simple linear regression used? - correct answer To make predictions about one dependent variable based on one independent variable *
Which of the following is a phase in the allocation cycle? - correct answer Final Allocation Phase
You are preparing to negotiate a service task for routine maintenance of Government equipment. A sample of 25 records for similar maintenance tasks indicates that the average time required to perform similar maintenance tasks has been six hours and 40 minutes. How can you use this? - correct answer Selecting the appropriate contract type
Developing a price negotiation objective for labor costs *
Evaluating the bill of materials
Assigning the risk factors for profit calculations
The purpose of an audit is to: - correct answer Verify transaction legality
Determine if the data is accurate and complete
All of these are correct *
Determine the degree of compliance with established procedures
Who has the authority to waive CAS applicability for a particular contract? - correct answer The Agency Head *
A cost is allowable if it is: - correct answer Reasonable, allocable and compliant with CAS/GAAP *
What is an important driver to a successful negotiation? - correct answer Listen to understand *
Which regression method assumes a linear relationship between the dependent and independent variables? - correct answer Simple linear regression *
What is the single most important decision the Contracting Officer must make to mitigate cost risk? - correct answer Selection of contract type *
When a contract is subject to CAS, the Contracting Officer may not award a contract until a written adequacy determination has been made by the cognizant Federal agency official. - correct answer True
Each Price Negotiation Memorandum must contain which one of the following? - correct answer Statement that the price is fair and reasonable *
Select the item below that would likely be categorized as a Direct Material Cost. - correct answer The purchase of 104 motor assemblies needed to manufacture vehicles *
Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. - correct answer True *
Which of the following would be a proper method of determining the reasonableness of a contractor's proposed labor hour estimate? - correct answer -Compare proposed hours with a Government should-cost estimate *
A Disclosure Statement is required when Contractor receives a CAS covered contract or a subcontract valued at $60 million in a cost accounting period. - correct answer True *
Identify the ultimate objective of performing proposal analysis. - correct answer To ensure the final agreed to price is fair and reasonable *
Identify the correct definition of "Cost Analysis". - correct answer The review and evaluation of individual cost elements and proposed profit/fee in and offeror's proposal *
True or False: The national average mortgage rate is used in calculating Facilities Capital Cost of Money (FCCOM) - correct answer False *
Which of the following is an effective use of stratified sampling? - correct answer Analyzing the items that make up 80% of the total material cost and 10% of the remaining items
When is it most appropriate to document or model a contractor's proposal? - correct answer When the value, importance, and complexity warrant the modeling *
When is the working capital adjustment used while calculating profit/fee? - correct answer On all fixed price contracts with progress payments *
The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are: - correct answer -Generally Accepted Accounting Practice
-Cost Accounting Standards
True or False: Special test equipment that is engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used for other contracts can be categorized as "other direct costs". - correct answer True *
When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true? - correct answer They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum *
The first step when conducting stratified sampling is to identify the population of items to be sampled. - correct answer True *
What is the most common base for calculating the General and Administrative (G&A) overhead rate? - correct answer Total of all costs *
A measure of the amount of dispersion, or distance, between data points is the: - correct answer Standard Deviation *
Which of the following is the preferred method for determining if a proposed cost is reasonable? - correct answer Comparing with other competitive proposals received in response to the solicitation *
Which situation below would you use improvement curve analysis to evaluate proposed costs? - correct answer Assembly line with high proportion of manual labor *
Which of the following situations are considered exempt from the submission of Certified Cost or Pricing Data? - correct answer Prices are set by law or regulation. *
When calculating the confidence interval, the sample standard deviation is used to derive the standard error of the mean. - correct answer True
Identify the response below that correctly describes the term "Data other than certified cost or pricing data". - correct answer Pricing data, cost data, and judgmental information that is not certified, but is used to determine a fair and reasonable price
Which sampling technique is used to focus on high-value items? - correct answer Stratified *
Given the following data, calculate the standard deviation. Sample data: 13, 12, 9, 15, 11, 16, 17, 8, 12, 7, 12 - correct answer 3.19 *
When using simple linear regression to analyze the estimated price for a used car, which of the following independent variables would result in a realistic estimating equation? - correct answer Mileage of all similar cars
Weight of all similar cars
Color of all similar cars
True of False: After completing the five-step Least-Best-Squares-Fit (LBSF) process when developing a regression equation, you must evaluate the "goodness" of the fit and the statistical significance. - correct answer True
What is the negotiation term that reflects each party emphasizing the long term effects and benefits as well as both parties defining their interests to be achieved in conjunction with the outcome? - correct answer Win-Win *
What is the best method for determining an improvement curve slope? - correct answer -Using actual historical data *
The moving average inventory pricing method is being used when a company recalculates inventory prices every time that a new item is added to inventory. - correct answer True *
What two costs elements are required to calculate an indirect cost rate? - correct answer Expense Pool and Allocation base *
What is the government's primary objective in negotiations? - correct answer -To establish profit/fee percentage that is in line with previous contracts with the particular contractor
-To agree on each element of cost with the contractor
-To agree on a price that is fair and reasonable to the government and contractor
Identify the primary issue you should consider when analyzing direct labor categories in a contractor's proposal. - correct answer -Is the proposed skill mix identical to the independent government estimate?
-Does the contractor compensate their employees for unpaid overtime?
-Is the proposed skill mix reasonable for the work required?
Which of the following must be true to properly classify a cost as an "other direct cost"? - correct answer The proposed cost benefits only the proposed contract work *
Which of the following labor classifications most likely involves fashioning parts from raw materials or purchased materials? - correct answer Fabrication
Which of these situations warrants the use of a round-table estimate? - correct answer A contract is for a unique item, and there is no historical data available (i.e., detailed drawings, bill of materials, firm specifications).
When is it most appropriate to document or model a contractor's proposal? - correct answer When the value, importance, and complexity warrant the modeling
Which of the following are factors used in calculating the Facilities Capital Cost of Money (FCCOM) amount? - correct answer -Proposal allocation base amounts
-Division-wide allocation base amounts
What is the "base" that used in the calculation of the performance risk, contract type risk, and cost efficiency factor when using the weighted guidelines to determine a profit/fee objective? - correct answer Total costs
A cost is ALLOCABLE if it: - correct answer -Is distributed equally among the benefiting contracts
-Is incurred specifically for the contract being considered
-Results in an inequitable allocation costs.
Given the following improvement curve data, calculate the cost objective for unit #64. Labor hours for unit #32: 42,000 hours Labor hours for unit #1: 79,000 hours Rate of improvement: 20% Improvement curve slope: 80% - correct answer 62,200
33,600 *
8,400
155,800
A contractor incurs costs for raw materials to be used in two different government contracts. Is the total value of this raw material allocable to one contract? - correct answer -No, material must be used and charged specifically to the benefiting contract *
Which one of the choices below is the correct definition of other direct costs? - correct answer -Costs that can be identified with a specific contract and which the offeror does not treat as a direct material cost or a direct labor cost *
A contractor incurs a cost which is determined to be unallowable. Other costs which would not have been incurred had the unallowable cost not been incurred are also unallowable. - correct answer True *
Which variable is also considered the independent variable? - correct answer R
X *
Y
Z
True or False: Simple linear regression is most appropriate when there is more than one independent variable. - correct answer True
Which of the following labor categories in a contractor's proposal for Grounds Maintenance would raise concern? - correct answer Millwright *
Identify when cost analysis would be required. - correct answer When certified cost or pricing data are required *
True or False: "Position class" is a grouping of all positions that share the same title and pay level. - correct answer True
Which of the following type of costs would most likely be categorized as both direct costs and indirect costs, depending on the circumstance? - correct answer Travel Expense *
In reviewing the proposal for the robotic surveillance vehicle you asked for clarification on the travel cost listed as an ODC. Which response would justify travel as an ODC? - correct answer -The travel costs are for the project manager and the manufacturing supervisor to deliver the prototype to the Government testing site for final demonstration testing. *
What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? - correct answer Defective Pricing *
Which contract clause is inserted in contracts that are subject to full CAS coverage? - correct answer -FAR 52.230-2 Cost Accounting Standards *
When material prices may vary significantly from current inventory values, which estimating method should be used? - correct answer Current Supplier Quotes *
Which of the following situations would the use of improvement curve analysis likely be useful in evaluating proposed costs? - correct answer -Assembly line repair of a turret assembly for an M1/A2 Abrams tank *
Identify the correct definition of "Cost Realism Analysis". - correct answer The process of independently reviewing and evaluating specific elements of cost, in part to determine whether they reflect a clear understanding of the requirement
Which of the following is a factor that most directly affects profit/fee calculations? - correct answer Contract type *
The "questioned cost" is one that has not yet been evaluated. - correct answer False *
Identify the circumstances when cost analysis should be performed by answering the following question. "unless an exception to certified cost or pricing data applies, you can perform cost analysis on which of the following procurements?" - correct answer -All of these are correct
-The award of any negotiated contract (except for undefinitized actions such as letter contracts)
-The modification of any sealed bid or negotiated contract
Identify the situation where you would use simple linear regression. - correct answer Direct cost analysis *
When certified cost pricing data is required, data showing that adequate price competition for acquisitions exceeding the TINA threshold was obtained is required as part of the contractor's proposal. - correct answer True
Which of the following is an example of a cost estimating technique that would be used when producing a summary cost estimate? - correct answer Vendor Quotes comparison
Stratified sampling
Cost Estimating Relationship (CER)
A contractor submits a cost proposal and includes support that its proposed costs are what it would actually incur during contract performance. In this case, the Government contracting officer is required to consider the proposed costs as reasonable. - correct answer False *
What is the definition of a Disclosure Statement? - correct answer Written description of a contractor's cost accounting practices and procedures
Which of the following is the best strategy to mitigate cost risk? - correct answer -Conduct adequate market research prior to entering negotiations *
The mean, median and mode are typically the same when a sample exhibits significant dispersion. - correct answer False *
One of the elements of the government pricing objective is to ensure that contract prices are fair and reasonable.Which of the following statements is true about "fairness to a seller" that involve concerns? (Select all that apply) - correct answer Sellers need to be concerned about an unrealistic low price because of the risk.
Sellers need to be concerned about the market implications of a price that is too high.
Sellers need to be concerned about major mistakes in estimating costs.
Sellers need to be concerned about recovering buy-in losses.
Which of the following are market conditions that affect a reasonable price? Select all of the correct answers. - correct answer Competition
Supply and Demand
General Economic Conditions
All of the following statements are true about government contracting as part of pricing each contract separately EXCEPT: - correct answer Buyers and sellers usually have a a good working knowledge of transactions between a contractor and the government.
Which of the following is the correct definition of a contingency in government contracting? - correct answer Possible future event arising from known or unknown causes where the outcome cannot be determined
You have been asked to procure seven high definition mobile cameras. You determine that this is a commercial item. The prices for these items range from approximately $400,000 to $650,000 each. You identify six vendors but you only receive one offer from Advanced Technology Solutions (ATS). You contact ATS and they are willing to provide quantities, dates of sale, discounts offered, and prices offered to their other customers. What analysis of ATS's offer should you use? - correct answer Price Analysis is the correct analysis to use. See FAR 13.106-3(a)(2)(ii) and FAR 15.404-1(b)(ii), (vi), and (vii) for additional information.
In reviewing the acquisition plan, which form of proposal analysis do you think the Contracting Officer contemplated using prior to soliciting offers? - correct answer Price analysis
Which of the following estimating methods produces estimates based on an analysis of the methods and materials required to complete each element of the work required by the contract? - correct answer Detailed
Which of the following are key terms associated with TINA?(Select all that apply) - correct answer Certified Cost or Pricing Data
Cost or Pricing Data
Data Other than Certified Cost or Pricing Data
Review Section B of the Acquisition Plan for the initial BBOMS contract. Did the Truth in Negotiation Act apply to this initial procurement? Why or why not? - correct answer No. While the initial award amount exceeded the TINA threshold of $2 million, the Contracting Officer determined through market research that adequate price competition would exist for this requirement. Therefore, the exception at FAR 15.403-1(b)(1) applied. Offerors were not required to submit certified cost or pricing data.
A noncommercial modification valued at $20.9 million is required for the BBOMS contract. Will we require the submission of certified cost or pricing data on this modification? - correct answer Yes. Since the initial estimate of this modification is $20.9M, it is over the threshold of $2 million and therefore requires the offeror to submit certified cost or pricing data.
What gives us the authority to request the submission of certified cost or pricing data on this modification? - correct answer TINA and FAR 52.215-21
What clause in the FAR provides a remedy to the government in the event the contractor submits defective certified cost or pricing data on this modification? Hint: In addition to reviewing the FAR, you may want to review Section I: Clauses of the original contract under the Resources tab. Note which clauses were and were not included. - correct answer FAR 52.215-11, Price Reduction for Defective Certified Cost or Pricing Data - Modifications
Which of the following are exemptions to the Cost Accounting Standards? (Select all that apply) - correct answer Small businessesContracts based on established or market prices or fixed by law or regulationAll contracts awarded using sealed bidding
Using the CAS Coverage and Disclosure Statement Determination flowchart, determine if the original (basic) BBOMS contract is subject to CAS? - correct answer Yes, none of the listed exemptions apply. Since this is a negotiated procurement in excess of $7.5M, the contract is covered by the Cost Accounting Standards.
Select the Resources tab to review the BBOMS contract and then answer the following question. Now that you have determined that the BBOMS contract is subject to CAS, what level of coverage is applicable? Note: Technology and Support Services has never received a CAS covered contract either in the current or preceding Cost Accounting Period. - correct answer Full coverage since the contract award is for $50M or more.
Look at the BBOMS contract again. Which of the following statements is true? - correct answer Since the BBOMS contract is subject to full CAS coverage, TSS is required to submit a Disclosure Statement to the CFAO and the Cognizant Auditor.
A cost is allowable if it _____________________. (Select all that apply) - correct answer is reasonable
is allocable
is IAW FAR Part 31
is IAW the terms of the contract
is IAW CAS or GAAP as applicable
A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or an other equitable relationship. A cost is allocable to a government contract if it _________________. (Select all that apply) - correct answer is incurred specifically for the contract
is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.
benefits the contract and other work, and can be distributed to them in reasonable proportion to the benefits received.
A contractor proposes to use a Level III Engineer for a particular task order under a cost reimbursement CLIN. The Level III Engineer labor rate is $85.00 per hour. Your technical specialist informs you that the level of effort required under this task is suitable for a Level I Engineer. The contractor proposes 40 hours to perform the task. Your technical specialist informs you that it should take the Level I Engineer approximately 35 hours to perform this task. Is the cost for engineering labor reasonable for this task? (Select all that apply) - correct answer No, in order for a cost to be reasonable it must be, in both nature and amount, what a prudent business person would pay in the conduct of a competitive business.
No, the burden of proof is on the contractor to demonstrate the reasonableness of the level of engineer and number of hours required.
The prenegotiation objective establishes the government's initial negotiation position and assists the contracting officer in determining a fair and reasonable price. How does proposal modeling assist the contracting officer in achieving these objectives? Select all of the correct answers.(Select all that apply) - correct answer Validates the contractor's computations
Validates the contractor's proposal summary with detailed back-up data worksheets
Allows real time calculation of offers and counteroffers during negotiations
Facilitates update of prenegotiation position upon receipt of updates from the contractor (e.g., updated quotes, subcontractor submissions, change in rates)
Allows the government to identify differences between the contractor's proposed amounts and the prenegotiation position due to fact-finding results, field pricing assistance, independent government estimates and analysis
Which of the following are cost elements? (Select all that apply) - correct answer Labor
G&A
FCCOM
Which of the following are characteristics of an acceptable cost estimating system? (Select all that apply) - correct answer Provides for detection and timely correction of errors
Identifies the sources of data and the estimating methods and rationale used in developing cost estimate
Provides a written description of the organization and duties of the personnel responsible for preparing, reviewing, and approving cost estimates
What are the disadvantages of an inadequate Cost Accounting System? - correct answer It will provide data that is not current, accurate, and complete.
Under which cost accounting system does the firm account for output by specifically identifiable physical units? - correct answer Job-Order
Select the Resources tab to review the DCAA audit report. After reviewing the report, answer the following question:What step should you take next? - correct answer Contact the DCMA to verify that Technology and Support Services' accounting and estimating systems are still considered adequate.
Who typically provides Audit Assistance? - correct answer Defense Contract Audit Agency
You are reviewing historical contract information for a firm that has recently submitted a proposal. Which of the following items might be an indication that you will require technical or audit assistance? (Select all that apply) - correct answer The offeror has a history of not providing adequate cost estimate support
The offeror has a history of under estimating costs
In previous contracts, the negotiated price was significantly different than the proposed price
After you have reviewed the contents of the proposal and determined the scope of the audit necessary, select the correct order of the steps required to request Audit Assistance.
1. Commit your request to writing.
2. Contact the cognizant agency by phone to tell them of the upcoming request and to determine the means of communication acceptable for the assistance request.
3. Query all acquisition team members. - correct answer 3, 2, 1
Which of the following questions are important to ask when evaluating a report's strengths and weaknesses?(Select all that apply) - correct answer Does the report answer the questions in your request?
Does the report explain the evaluator's position in clear language that you can understand?
Does the report support its conclusions? [Show Less]