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CORB Scenario Based Questions and 100% Correct Verified Answers
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CORB Scenario Based Questions and 100% Correct Verified Answers
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CORB Scenario Based Questions and 100%Correct Verified Answers
What are some examples of financing payments? - ANSWER Progress Payments,
Performance Based Payments, Interim Payments on Cost contracts, Advance
payments.
Contractor ABC has 5 contracts, all part of a high-visibility Air Force program. The Air
Force
Program Manager contacts you and states he is concerned ABC will overrun
this program as
they don't appear to be making progress, but costs are accelerating. What would you do
as the ACO? - ANSWER Request a bottoms-up review of the EAC, consider applying a
Loss Ratio if applicable, request a physical completion review, run financial indicators
with Financial Analysis Center, put ABC on more frequent PP review schedule, put ABC
on pre-payment review, consult with DCAA auditor for any indicators of deficient internal
controls/systems they may have.
You have a contract with Progress Payments as a method of financing. The contract
requires
the contractor to submit a "First Article" to Government for approval prior to beginning
production. Are there any steps you as the ACO should take? - ANSWER Establish a
First Article limitation when setting up the Progress Payment maters to ensure a
cap on financing prior to acceptance of the first production article - continued payments
are
,contingent upon Govt' acceptance (i.e. contractor demonstrating capability to produce
the
required item)
What is the least preferred method of contract financing? - ANSWER Advance
payments - and they should not be used if other types of financing are available
What action should the ACO take prior to approving any progress payment requests? -
ANSWER Ensure the proper clause is in the contract!, the contractor's accounting
system is adequate,
sound financial condition, is capable of liquidating (due to past performance indications)
Under what conditions would you as the ACO consider suspending or reducing
progress payments? - ANSWER Non-compliance with material requirements of the
contract, unsatisfactory financial condition, inventory in excess of contract requirements,
failure to make adequate progress (or fair value of undelivered work equals or exceeds
amount of unliquidated progress payments), delinquent in paying costs of performance
in ordinary course of business, operating in a loss condition
Progress payments are intended to be "self liquidating" - what does t hat mean? -
ANSWER Contractors are paid a percentage of their paid or billed costs as financing -
when contractors deliver and invoice, a percentage of the invoice amount is withheld
and applied to the amount financed - the amount financed is "liquidated" through
invoices for performance - or in other terms the debt is paid via taking a percentage of
the invoice.
On an Undefinitized Contractual Action (UCA) is there a ceiling on the amount if
contract financing a contractor is eligible for? - ANSWER Yes, progress payments
cannot exceed 80% of eligible costs prior to definitization.
, What is a ratification? - ANSWER A ratification is the act of approving an act done by an
unauthorized official which results in the contractor performing (ratifiable action)
When is a ratification required (what limitations does it have to meet)? - ANSWER 1.
Benefit was received to the government
2. Funds are available now and funds were available at the time of the act
3. Price can be determined fair and reasonable
4. Legal concurs
5. PCO would have otherwise approved the contract
6. he ratification approval authority has the authority to enter into a contract
As PCO do you ever have the authority to do a Ratification and who does have that
authority? - ANSWER No the PCO never has that authority. If it is under $30K the
COCO has the authority and if it is over $30K the SCCO has the authority.
What is the difference between bilateral and unilateral mods and give examples of each.
- ANSWER Bilateral mods are executed by Contracting Officer and contractor
signature. Examples:
A equitable adjustment as a result of a change order, increase in quantity, change in
spec,
definitization of letter contract.
Unilateral mods are executed by ACO signature only. Examples: change order,
terminations, options, administrative changes.
If you can do change orders unilaterally, why would you have a change in specs
bilaterally? - ANSWER You can also do changes, like a change in specs, bilaterally,
as long as you negotiate everything
(equitable adjustment) up front. You would want to make spec changes bilaterally
to show that the contractor agrees to the changes and that they agree to any
compensation this is being given in return, if any.
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