Government Procurement Certification Cost & Price Analysis

Question 1

Under FAR Part 15, when is a contracting officer required to obtain certified cost or pricing data?

Accepted Answer

When the contract exceeds $750,000 and no exception applies

Answer

When the contract exceeds the simplified acquisition threshold

Answer

When the contract exceeds $2 million and no exception applies

Answer

Whenever the procurement uses negotiated procedures

Question 2

What is the primary purpose of a price analysis in government procurement?

Accepted Answer

To determine the reasonableness of a proposed price without examining cost elements

Answer

To verify that individual cost elements are allowable and allocable

Answer

To audit contractor overhead rates for accuracy

Answer

To establish a should-cost baseline for long-term contracts

Question 3

Which of the following is NOT a recognized price analysis technique under FAR 15.404-1?

Accepted Answer

Comparison with prices found in the contractor's disclosed accounting practices

Answer

Comparison of proposed prices received in response to the solicitation

Answer

Comparison with prices set by law or regulation

Answer

Visual analysis of parametric estimates

Question 4

A contracting officer performing cost analysis receives a contractor's proposal with indirect cost rates. Which of the following actions is most appropriate?

Accepted Answer

Verify the rates against DCAA-audited or cognizant agency-established rates

Answer

Accept the rates as proposed if they fall within 10% of prior-year rates

Answer

Apply the government's standard 35% overhead rate if no audit is available

Answer

Reject the proposal and request fixed-price only

Question 5

Under the Truth in Negotiations Act (TINA), what constitutes 'defective pricing'?

Accepted Answer

Submission of certified cost or pricing data that was not accurate, complete, or current at the time of agreement

Answer

A contractor's failure to submit a cost proposal on time

Answer

Use of forward pricing rates that differ from historical rates by more than 15%

Answer

Failure to disclose proprietary commercial pricing to the government

Question 6

What does the term 'cost realism analysis' mean in the context of government source selection?

Accepted Answer

An assessment of whether a contractor's proposed costs are realistic, complete, and consistent with the technical proposal

Answer

An evaluation to confirm the government's independent cost estimate is realistic

Answer

A comparison of all offerors' proposed prices to ensure competitive pricing

Answer

A DCAA audit of a contractor's accounting system before award

Question 7

Which cost is generally considered UNALLOWABLE under FAR Part 31?

Accepted Answer

Entertainment costs for hosting a contractor appreciation event

Answer

Direct labor costs for employees working on the contract

Answer

Advertising costs for recruiting new employees

Answer

Costs of preparing and submitting a competitive bid or proposal