COR Cost & Pricing Analysis 2

Question 1

Under FAR Part 15, when is a contractor required to submit certified cost or pricing data?

Accepted Answer

When the negotiated contract action exceeds the TINA threshold

Answer

Certified cost or pricing data is required when a negotiated contract action exceeds the TINA threshold (currently $2 million), unless a statutory exception applies.

Question 2

Which cost element is classified as an indirect cost?

Accepted Answer

Facility overhead shared across multiple contracts

Answer

Indirect costs like facility overhead benefit multiple contracts and cannot be traced directly to a single cost objective.

Question 3

Which FAR provision guides the contracting officer's determination of appropriate profit or fee on a negotiated contract?

Accepted Answer

FAR 15.404-4

Answer

FAR 15.404-4 establishes guidelines for profit and fee analysis, including the structured approach for determining reasonable profit objectives.

Question 4

What does 'should-cost analysis' mean in government contracting?

Accepted Answer

An estimate of what the government believes the contract should cost based on efficient performance

Answer

Should-cost analysis is a government assessment of what a contract should cost if the contractor performs efficiently, used as a negotiation baseline.

Question 5

Under FAR 31.201-2, a cost is considered allowable only if it meets which criteria?

Accepted Answer

Reasonable, allocable, and compliant with CAS and contract terms

Answer

FAR 31.201-2 states a cost is allowable only if it is reasonable, allocable, consistent with CAS, and not prohibited by the contract or regulations.

(COR) Contracting Officer's Representative Certification Practice Test

(COR) Contracting Officer's Representative Certification Practice Test

COR Cost & Pricing Analysis 2