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

When adequate price competition does not exist and commercial pricing benchmarks are unavailable, the contracting officer must perform cost analysis of the proposed cost elements.

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

Should-cost analysis is a specialized form of cost analysis that uses industrial engineering and accounting techniques to project what an efficiently managed, performing contractor should pay for a contract.

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

Price analysis evaluates the reasonableness of a total proposed price without breaking it down into cost elements, relying instead on comparison to market prices, catalog prices, or prior prices.

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

The Weighted Guidelines method is a structured approach under DFARS that helps contracting officers develop a pre-negotiation profit objective by weighting factors such as contractor risk, capital investment, and performance.

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 guarantee only the minimum quantity stated in the contract and allow the government to order up to the stated maximum, unlike requirements contracts which obligate all purchases to the contractor.

NCMA - National Contract Management Association Certification Practice Test

NCMA - National Contract Management Association Certification Practice Test

NCMA Contract Types and Pricing 2