Government Procurement Certification Cost & Price Analysis 3

Question 1

A contracting officer is evaluating proposals for a cost-reimbursement contract with a technical performance component. Which of the following is a valid reason to adjust an offeror's proposed cost upward during cost realism analysis?

Accepted Answer

The offeror's technical proposal indicates a more complex approach than reflected in the cost proposal, suggesting understated labor hours

Answer

When a contractor's technical approach is more complex or resource-intensive than their cost proposal reflects, the contracting officer should adjust the most probable cost upward to account for the discrepancy under FAR 15.404-1(d).

Question 2

Under FAR Part 31, what does the term 'allocable cost' mean?

Accepted Answer

A cost that is assignable or chargeable to one or more cost objectives in accordance with the relative benefits received or other equitable relationship

Answer

FAR 31.201-4 defines an allocable cost as one that is assignable to a specific cost objective based on relative benefits received, provides a causal or beneficial relationship, or is necessary to the contractor's overall operations.

Question 3

The Cost Accounting Standards (CAS) Board applies to which category of contractors?

Accepted Answer

Contractors and subcontractors that receive negotiated contracts over the CAS coverage threshold (currently $2 million) and are not exempt

Answer

CAS coverage applies to contractors receiving negotiated contracts (excluding sealed bids and certain exempted contracts) that exceed $2 million; full CAS coverage applies to contracts over $50 million or combined coverage exceeding $50 million in the prior year.

Question 4

What is the primary objective of the profit/fee guidelines established under FAR 15.404-4?

Accepted Answer

To ensure that the government pays a profit commensurate with the contractor's effort, risk, and contribution, while maintaining competition

Answer

FAR 15.404-4 establishes guidelines to ensure profit is commensurate with the nature of the work, contractor risk, capital employed, and performance, while sustaining competition and motivating efficient contract performance.

Question 5

A contractor claims that certain independent research and development (IR&D) costs should be reimbursable under a government cost-reimbursement contract. Under FAR 31.205-18, which condition makes IR&D costs allowable?

Accepted Answer

The costs must be reasonable in amount and the contractor must have an established IR&D program with anticipated future government business

Answer

FAR 31.205-18 allows IR&D costs that are reasonable in amount, not otherwise unallowable, and have a potential relationship to future government contracts; they need not be tied to a specific contract.

Government Procurement Certification Practice Test

Government Procurement Certification Practice Test

Government Procurement Certification Cost & Price Analysis 3