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
A program office discovers it has $500,000 in expiring O&M funds with 10 days left in the fiscal year. What is the BEST course of action?
Answer: Identify legitimate, bona fide needs and obligate only against those requirements
The bona fide needs rule requires that funds be obligated only for genuine needs existing within the appropriation's period of availability, even under year-end time pressure.
Which report does the Department of Defense use to track program cost, schedule, and performance for major defense acquisition programs (MDAPs)?
Answer: Selected Acquisition Report (SAR)
The Selected Acquisition Report (SAR) is the annual Congressional report summarizing cost, schedule, and performance status of MDAPs and is submitted with the President's budget.
In the context of government procurement, what does 'should-cost analysis' provide that a traditional cost estimate does not?
Answer: A government assessment of what a contract should cost with efficient management
Should-cost analysis evaluates what the contract should cost assuming reasonable economy and efficiency, giving the government a more aggressive negotiating target than historical costs suggest.
What is the significance of the 'bona fide needs rule' for multi-year services contracts funded with annual appropriations?
Answer: It requires that each year's appropriation fund only the services to be performed in that fiscal year
The bona fide needs rule means each annual appropriation can only be used for services that will be rendered during that appropriation's period of availability.
When a federal agency submits its budget request to OMB as part of the President's budget process, which document serves as the primary vehicle for DOD to express program and funding priorities over a 5-year horizon?
Answer: Program Objective Memorandum (POM)
The Program Objective Memorandum (POM) is the DOD Components' formal proposal for resource allocation across the Future Years Defense Program (FYDP) 5-year period.
Under FAR 32.703-1, what is the maximum period for which a multi-year contract may be funded using the 'cancellation ceiling' approach?
Answer: 5 years
FAR authorizes multi-year contracts for up to 5 program years, with the cancellation ceiling representing the government's maximum liability if the contract is terminated.
A Cost Performance Report (CPR) shows a Cost Performance Index (CPI) of 1.15 at the 50% completion milestone. What does this indicate?
Answer: The project is earning $1.15 in value for every $1.00 spent
A CPI of 1.15 means the project is delivering $1.15 of earned value for each dollar actually spent, indicating favorable cost performance.