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

Should-Cost analysis challenges existing cost baselines to identify efficiencies and cost reduction opportunities rather than accepting historical cost norms.

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

An Independent Cost Estimate (ICE) is required for ACAT I programs and is prepared by an independent organization separate from the program office.

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

A critical Nunn-McCurdy breach occurs when the PAUC grows by 25% or more over the current baseline or 50% over the original baseline.

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

The PEO oversees a portfolio of related acquisition programs and serves as the reporting chain between PMs and the service acquisition executive.

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

CPIF contracts share cost savings and overruns between the government and contractor through a defined sharing ratio, incentivizing cost control.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Defense Acquisition Process 3