NCMA Contract Types and Pricing 2

Question 1

Cost analysis is required by the contracting officer when:

Accepted Answer

There is no adequate price competition and no other valid commercial pricing basis

Answer

Adequate price competition exists among multiple offerors

Answer

The procurement is based on established catalog or market prices

Answer

The contract value falls below the simplified acquisition threshold

Question 2

'Should-cost' analysis is best described as:

Accepted Answer

A government assessment of what an efficiently managed contractor should spend to complete the work

Answer

An audit of actual costs already incurred under a prior contract

Answer

An independent estimate developed solely from historical contract data

Answer

A review of minimum acceptable profit margins for the contractor

Question 3

Price analysis differs from cost analysis primarily in that price analysis:

Accepted Answer

Examines proposed prices without evaluating their separate underlying cost elements

Answer

Evaluates each proposed cost element individually and in detail

Answer

Always requires the contractor to submit certified cost or pricing data

Answer

Is used only as a last resort when cost data cannot be obtained

Question 4

The Weighted Guidelines method is primarily used by contracting officers to:

Accepted Answer

Develop a fair and reasonable profit or fee negotiation objective

Answer

Evaluate the technical merit and capabilities of competing offerors

Answer

Assess the allowability of proposed indirect cost rates

Answer

Prioritize contract performance requirements by criticality

Question 5

An Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract differs from a requirements contract primarily because:

Accepted Answer

IDIQ contracts specify both a minimum guaranteed quantity and a maximum quantity the government may order

Answer

IDIQ contracts obligate the government to purchase all requirements from the contractor

Answer

IDIQ contracts cannot be used with multiple award task order structures

Answer

IDIQ contracts always use cost-reimbursement pricing arrangements

Question 6

Bottom-up cost estimating is best described as:

Accepted Answer

Estimating costs for individual work elements or components and aggregating them into a total

Answer

Using costs from a prior analogous project as the baseline for a new estimate

Answer

Applying statistical relationships between historical cost drivers and project parameters

Answer

Using published industry parametric data without detailed work breakdown analysis

Question 7

Forward Pricing Rate Agreements (FPRAs) between the government and a contractor are:

Accepted Answer

Negotiated agreements establishing rates to be used in pricing future contract actions during the agreement period

Answer

Binding commitments to rates that cannot be revised under any circumstances once signed

Answer

Government unilateral determinations of indirect cost rates imposed on the contractor

Answer

Annual audits that establish final allowable indirect cost rates for completed fiscal years