FAR FAR Contract Negotiations & Price Reasonableness 2

Question 1

What is the primary objective of the contracting officer's pre-negotiation activities under FAR 15.406-1?

Accepted Answer

To establish a pre-negotiation objective including a documented price objective

Answer

FAR 15.406-1 requires the contracting officer to establish a pre-negotiation objective, including a price objective, based on analysis of the contractor's proposal.

Question 2

Which of the following is NOT a recognized exception to certified cost or pricing data requirements under FAR 15.403-1(b)?

Accepted Answer

Contract value below the simplified acquisition threshold

Answer

FAR 15.403-1(b) exceptions include adequate price competition, prices set by law, commercial items, and waiver by the agency head—not merely falling below the simplified acquisition threshold.

Question 3

What must the contracting officer document in the price negotiation memorandum (PNM) per FAR 15.406-3?

Accepted Answer

The basis for the profit or fee objective and the negotiated profit or fee, among other required elements

Answer

FAR 15.406-3 requires the PNM to document the basis for the profit or fee objective and negotiated result, along with other specified elements supporting the negotiated price.

Question 4

Under FAR 15.404-4, which structured approach is prescribed for analyzing and negotiating profit or fee on cost-type contracts?

Accepted Answer

Weighted guidelines method or an alternative structured approach

Answer

FAR 15.404-4 prescribes the weighted guidelines method or an alternative structured approach for profit and fee analysis on negotiated contracts.

Question 5

When a contracting officer questions a contractor's proposed costs as unreasonable, what action is required under FAR 15.404-1?

Accepted Answer

Document the basis for questioning the costs and negotiate adjustments to reach a fair and reasonable price

Answer

When proposed costs are questioned, the contracting officer must document the rationale and negotiate with the contractor to arrive at a fair and reasonable price.

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR FAR Contract Negotiations & Price Reasonableness 2