FCC Cost Realism & Price Analysis 2

Question 1

Under FAR 15.404-1(d), when is a cost realism analysis REQUIRED?

Accepted Answer

For cost-reimbursement contracts to evaluate the realism of proposed costs

Answer

FAR 15.404-1(d) mandates cost realism analysis for cost-reimbursement contracts to determine whether proposed costs are realistic for the work to be performed.

Question 2

What does 'cost realism' specifically evaluate in a proposal?

Accepted Answer

Whether proposed costs are realistic, reasonable, and reflect a clear understanding of the requirements

Answer

Cost realism analysis evaluates whether proposed costs are realistic for the work, reflect a clear understanding of requirements, and are consistent with the offeror's technical approach.

Question 3

A contracting officer may adjust an offeror's proposed costs upward during cost realism analysis for what purpose?

Accepted Answer

To establish the probable cost for evaluation ranking purposes

Answer

Upward adjustments during cost realism create a 'most probable cost' used solely for evaluation ranking, not as the actual contract price.

Question 4

Which price analysis technique involves comparing proposed prices to previously established prices for the same or similar items?

Accepted Answer

Comparison with prior purchase prices

Answer

Comparing proposed prices to prior purchase prices is a primary price analysis technique under FAR 15.404-1(b)(2), used when historical pricing is available.

Question 5

When a contracting officer uses 'most probable cost' for cost-reimbursement contract evaluation, what happens to the offeror's original proposed price?

Accepted Answer

The original proposed price remains the basis for the contract, while most probable cost is used only for evaluation ranking

Answer

The most probable cost is an evaluation tool only; the actual contract is based on the offeror's proposed costs, subject to negotiation.

(FCC) Federal Contracting Certification Practice Test

(FCC) Federal Contracting Certification Practice Test

FCC Cost Realism & Price Analysis 2