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

FAR 15.403-4 requires certified cost or pricing data when a contract, subcontract, or modification exceeds $750,000 and no exception (adequate price competition, commercial items, etc.) applies.

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

Price analysis evaluates whether a proposed price is fair and reasonable by comparing it to benchmarks such as competitive offers, catalog prices, or historical data, without dissecting individual cost elements.

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

FAR 15.404-1(b) lists price analysis techniques including competitive offers, catalog/market prices, prior prices, and parametric estimates—comparing to disclosed accounting practices is a cost analysis technique, not a price analysis technique.

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

Contracting officers should use rates established or recommended by the cognizant audit agency (typically DCAA) to ensure indirect cost rates are reasonable and consistent with the contractor's disclosed practices.

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

Defective pricing under TINA occurs when a contractor submits certified cost or pricing data that was inaccurate, incomplete, or not current as of the date of price agreement, entitling the government to a price reduction.

Government Procurement Certification Practice Test

Government Procurement Certification Practice Test

Government Procurement Certification Cost & Price Analysis