CDFM Defense Acquisition Process 3

Question 1

What is the purpose of the Should-Cost analysis in defense acquisition?

Accepted Answer

To identify cost reduction opportunities by challenging historical cost norms

Answer

To determine the ceiling price on a contract

Answer

To establish the independent government cost estimate

Answer

To validate contractor-submitted cost proposals

Question 2

Which document is required for all Acquisition Category (ACAT) I programs and provides an independent assessment of program cost?

Accepted Answer

Independent Cost Estimate (ICE)

Answer

Program Office Estimate (POE)

Answer

Budget Estimate Submission (BES)

Answer

Selected Acquisition Report (SAR)

Question 3

Under the Nunn-McCurdy Act, a critical breach occurs when the Program Acquisition Unit Cost (PAUC) exceeds the original baseline estimate by what percentage?

Accepted Answer

25%

Answer

10%

Answer

15%

Answer

50%

Question 4

What is the primary function of the Program Executive Officer (PEO) in the defense acquisition system?

Accepted Answer

Overseeing a portfolio of programs and providing management oversight to program managers

Answer

Conducting independent cost estimates for all programs

Answer

Approving all contract awards above the simplified acquisition threshold

Answer

Setting acquisition policy for the entire Department of Defense

Question 5

Which type of contract provides the greatest incentive for a contractor to control costs by sharing both savings and overruns with the government?

Accepted Answer

Cost-plus-incentive-fee (CPIF)

Answer

Cost-plus-fixed-fee (CPFF)

Answer

Firm-fixed-price (FFP)

Answer

Time-and-materials (T&M)

Question 6

The Selected Acquisition Report (SAR) is submitted to Congress for which programs?

Accepted Answer

ACAT I (Major Defense Acquisition Programs) only

Answer

All defense acquisition programs regardless of cost

Answer

ACAT II and III programs only

Answer

Programs with foreign military sales components

Question 7

What is the key distinction between Milestone A and Milestone B in the defense acquisition process?

Accepted Answer

Milestone A approves entry into Technology Maturation and Risk Reduction; Milestone B approves entry into Engineering and Manufacturing Development

Answer

Milestone A approves production; Milestone B approves deployment

Answer

Milestone A involves Congress; Milestone B involves only the MDA

Answer

Milestone A is for ACAT I programs; Milestone B is for ACAT II programs