Defense Acquisition University CLC CLC 056| CLC 056 (7 sets for the final exams) Complete questions and answers
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 seller" th...
one of the elements of the government pricing obje
which of the following are market conditions that
all of the following statements are true about gov
which of the following is the correct definition
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CLC 056 ANALYZING CONTRACT COSTS
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Defense Acquisition University CLC CLC
056| CLC 056 (7 sets for the final exams)
Complete questions and answers
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
seller" that involve concerns? (Select all that apply) - 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? - 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: - Answer - Buyers and sellers usually have 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? - 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? - Answer Price analysis
In reviewing the acquisition plan, which form of proposal analysis do you think the
Contracting Officer contemplated using prior to soliciting offers? - 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? - Answer Detailed
Which of the following are key terms associated with TINA? - 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? - 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? - 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? - Answer TINA and FAR 52.215-21
Unless an exception applies, TINA and FAR 52.215-21 require the submission of
certified cost or pricing data for any modification expected to exceed the current
threshold, regardless of whether or not certified cost or pricing data were initially
required
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? - 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? - Answer -
small businesses
- contracts based on established or market prices fixed by law or regulation
- all 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? - 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. - Answer Full coverage since
the contract award is for $50M or more.
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