DCMA CORB - Topic 4 - Indirect Cost
Control Negotiation Intelligence
(ICC/NI)|Questions and 100% Correct
Verified Answers
This year a non-CAS covered contractor received an additional contract worth 10M.
What kind of CAS coverage is now required?
Follow-on Question: What if this was a small business?
No CAS coverage is required. Small Business contracts are 1 of the 9 exemptions to CAS
This year a non-CAS covered contractor received an additional contract worth 10M.
What kind of CAS coverage is now required?
Follow-on Question: What if it was for a commercial item?
No CAS coverage is required for FFP, T&M & labor commercial contract. FAR 12.207(a) states:
"....agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price
adjustment for the acquisition of commercial items." Therefore a FFP commercial contract is
an exception to CAS coverage.
This year a non-CAS covered contractor received an additional contract worth 10M.
What kind of CAS coverage is now required?
Follow-on Question: What if it this contract was for $75M?
If no other exemption applies, this contract would be subject to Full CAS overage.
What are 3 types of rates you would deal with during the life cycle of the contract?
Explain the use of each.
Administrative Contracting Officers are responsible for negotiating forward pricing rates
and establishing final indirect rates and billing rates (FAR 42.302(a))
The 3 types of Indirect Cost Rates used during the life cycle of a contract are:
Forward Pricing Rates: Used for pricing and negotiating proposed contracts/modifications.
Forward Pricing Rate Proposal (Contractor): Contractor’s proposed rates sent to
government for bidding purposes only.
Forward Pricing Rate Recommendation (Unilateral): a set of rates and factors unilaterally
established by the ACO for use by the Government in negotiations or other contract actions
when forward pricing rate agreement negotiations have not been completed or when the
, contractor will not agree to a forward pricing rate agreement (established within 30 days after
receipt of an adequate proposal).
Forward Pricing Rate Agreement (Bilateral): Written agreement negotiated between a
contractor and the Government to make certain rates available during a specified period
for use in pricing contracts or modifications (established within 60 days after receipt of an
adequate proposal).
Billing Rates: Provide a method for interim reimbursement of indirect costs at estimated rates
subject to adjustment during contract performance and at the time the final indirect cost
rates are established.
Final Indirect Rates: Used for closing contracts. Contractor has 6 months after the end of their
fiscal year to submit their indirect cost proposal for that fiscal year. After settlement of the
final annual indirect cost rates for all years of a physically complete contract, the contractor
must submit a completion invoice/final voucher reflecting the settled amounts and rates
within 120 days.
What types of actions could be delegated to the ACO for definitization?
Types of actions that would require definitization and could be delegated to an ACO are:
- Unpriced task/delivery orders against an Indefinite Delivery Contract or BOA
- Unpriced change order (FAR Subpart 43.2, “Change Orders” and DFARS 243.204-70,
“Definitization of change orders”)
- Unpriced purchase order (FAR 13.302)
- Over and above work requests (DFARS 217.77)
- Provision Items Order (DFARS 217.76)
- UCAs as prescribed in DFARS Subpart 217.74.
What is a UCA and what timelines need to be managed when administering a UCA?
What other admin issues/action must you consider during the administration of a UCA?
An Undefinized Contract Action (UCA) is any contract action for which the contract terms,
specifications, or price are not agreed upon before performance is begun. See DCMA UCA
Guidebook issued 01MAR2022 (VERY TRICKT to find)
Used only when negotiation of a definitive contract action is not possible to meet Govt
requirements & Govt interest demands that the Contractor be given a binding
commitment so performance can begin immediately.
Shall be as complete and definite as practicable, usually issued as Letter Contract
Bi-annual Consolidated UCA Management Plan and Report for USD must address each UCA
with an estimated value exceeding $5 million
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