FAC Procurement & Negotiation Strategies 3

Question 1

When using a Request for Quotation (RFQ) instead of a Request for Proposal (RFP), what is the key legal distinction regarding vendor responses?

Accepted Answer

Quotations are not offers and cannot be accepted to form a binding contract

Answer

A quotation is not an offer; only the government's subsequent purchase order or contract constitutes an offer that the vendor may accept.

Question 2

Which of the following best describes 'price analysis' as defined in FAR 15.404-1(b)?

Accepted Answer

Evaluation of a price without analyzing the individual cost elements

Answer

Price analysis evaluates the overall price without breaking it down into cost elements, relying instead on market comparisons and other external benchmarks.

Question 3

Under the Truth in Negotiations Act (TINA), at what dollar threshold must contractors certify that cost or pricing data submitted is current, accurate, and complete?

Accepted Answer

$750,000

Answer

TINA (10 U.S.C. 3702) requires certified cost or pricing data for negotiated contracts exceeding $2 million, though the threshold has changed; as of current FAR the threshold is $2 million.

Question 4

A contracting officer is negotiating a cost-reimbursement contract. The offeror proposes a profit of 15%. Which FAR provision governs the structured approach to profit/fee analysis?

Accepted Answer

FAR 15.404-4

Answer

FAR 15.404-4 prescribes the structured approach contracting officers must use to analyze and negotiate profit or fee on cost-reimbursement contracts.

Question 5

In a sole-source negotiation, what is the purpose of issuing a 'should-cost' review before negotiations begin?

Accepted Answer

To establish what it should cost to perform the work using efficient methods

Answer

A should-cost review assesses what efficient performance should cost, helping the government identify and challenge inefficiencies in the contractor's proposed costs.

(FAC) Federal Acquisition Certification Practice Test

(FAC) Federal Acquisition Certification Practice Test

FAC Procurement & Negotiation Strategies 3