Budget Planning & Reporting Flashcards
7 cards from real Government Procurement Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budget Planning & Reporting flashcards as text
Under the Federal Acquisition Regulation (FAR), what is the primary purpose of an Independent Government Cost Estimate (IGCE)?
Answer: To establish a baseline for evaluating contractor proposals
The IGCE provides a government-developed cost benchmark used to assess whether contractor proposals are fair and reasonable.
Which budget authority type allows an agency to obligate funds as soon as the appropriation is enacted, without further action?
Answer: Annual appropriation authority
Annual appropriation authority grants immediate obligation authority upon enactment, unlike advance or contract authority which require additional steps.
A contracting officer discovers that a program's costs have grown 25% above the original baseline. Under Nunn-McCurdy, what threshold triggers a 'significant' cost growth breach?
Answer: 25%
Nunn-McCurdy defines a 'significant' breach as unit cost growth of 25% or more above the original baseline estimate.
What does the term 'color of money' refer to in government procurement budget planning?
Answer: Restrictions tied to specific appropriation types
'Color of money' refers to the funding type (O&M, RDT&E, procurement, etc.) and its associated legal restrictions on how and when funds may be used.
Which financial report is required by the Digital Accountability and Transparency Act (DATA Act) to improve the transparency of federal spending?
Answer: USASpending.gov data submission
The DATA Act requires federal agencies to submit standardized spending data to USASpending.gov for public transparency.
An agency must fund a multi-year contract using Operations & Maintenance (O&M) funds. What is the maximum period of availability for O&M appropriations?
Answer: 1 year
O&M (Operations & Maintenance) appropriations are annual appropriations and expire after 1 fiscal year for new obligations.
When preparing a spend plan, what does 'obligation rate' measure?
Answer: The speed at which appropriated funds are committed against contracts
Obligation rate tracks how quickly an agency is committing its appropriated funds, helping program managers avoid year-end funding surges or lapses.