ACO CORB UPDATED PRACTICE EXAM QUESTIONS AND
SOLUTIONS GUARANTEE A+
✔✔How often is ACO required to input remarks/status updates to Metric Studio
Canceling Funds scorecard? - ✔✔Monthly
✔✔Explain the concept of canceling funds and what you would do as an ACO to
manage them. - ✔✔a. Funds are considered expired after they are no longer current.
They remain expired for 5 years after which they are considered canceled. As an ACO,
it is important to manage canceling funds because otherwise, customers are forced to
use alternate sources to pay contract obligations - usually current year funds, which can
affect their budgets and other programs.
b. Managing canceling funds effectively begins with quality CRR to ensure that payment
instructions are clear and that MOCAS reflects the contract correctly. A contract with
canceling funds should have a full reconciliation completed early on in the fiscal year to
make sure the disbursements align with the contract. If there are errors, this allows time
to coordinate corrections with DFAS if necessary - usually through a 1797. It is also
important to communicate with the contractor to establish their intent to invoice
canceling funds and/or issue final vouchers. If final overhead rates are an issue, quick
closeout rates are an option that allows the contractor to issue a final voucher. If all else
fails, we can also ask the contractors to determine an amount that can be de-obligated
for which we include a release statement in a bilateral modification.
✔✔What is a Business System Analysis Summary (BSAS)? - ✔✔The BSAS is provided
to the ACO by the functional specialist and summarizes a contractor's business
systems. It is designed to assist the cognizant ACO in identifying significant
deficiencies. It does not recommend disapproval of the system. This is an internal
DCMA document intended for use by Contracting Officers in making business system
determinations. Not for release to contractors.
✔✔What actions should a Contracting Officer take when they receive a BSAS? -
✔✔The Contracting Officer shall review all findings from the functional specialist or
auditor, including any recommendations concerning significant deficiencies. The
Contracting Officer is responsible for determining whether or not the deficiencies are
significant or not and to approve or disapprove the system.
✔✔What is the role of the HQs Contractor Business System Review Panel? - ✔✔The
role of the Contractor Business System Review Panel is to ensure significant
deficiencies identified in the Contracting Officer's initial determination notification and
the Contractor's response have been fully evaluated and discussed by the Contracting
Officer and functional specialist or auditor, and CMO Contracts Director or Director of
the CACO/DACO Division of the Cost and Pricing Center, and to ensure consistent
application of business system criteria and policy requirements.
, ✔✔What kind of information is in Contract Business Analysis Repository (CBAR) and
when is the CO required to input data? - ✔✔a. Indirect and direct cost information
(forward pricing rates)
b. Status of Contractor Business Systems (e.g. accounting, estimating, purchasing, etc)
c. Information about costs and financial condition of the parent entity of major
corporations
d. Status of compliance with Cost Accounting Standards (including CAS Disclosure
Statement)
e. PCO (Procuring Contracting Officer) business clearance data prepared to support the
negotiation award of a contract pricing action.
f. Comparison of proposed and negotiated costs
g. The CO should input or update this data as soon as possible after changes occur
h. The CBAR allows COs to share negotiating experiences with other negotiators and
hopefully result in better preparation for negotiations and a better deal for the
Government
✔✔Name the 6 Contractor Business Systems - ✔✔a. Accounting
b. Estimating
c. EVM
d. MMA
e. Property management
f. Purchasing
✔✔What are the four current Contractor Business System status options in CBAR
eTool? - ✔✔a. Approved - legacy determination of "approved," "adequate,"
"acceptable," or "no non-compliances found."
b. Disapproved - legacy determination of "approval withheld", or "approval withdrawn"
c. Not Evaluated - status until the ACO approves or disapproves the business system
d. Not Applicable - contractor is not required to maintain the business system
✔✔Explain the timeline for business systems found to have significant deficiencies -
✔✔a. 10 days for initial determination
b. 30 days for contractor response
c. 30 days for final determination
✔✔What should an acceptable CAP address? - ✔✔The cause of the significant
deficiency, including milestones to eliminate the deficiency and target dates for
implementation of the planned action.
✔✔What must be done prior to disapproval of a business system? - ✔✔A higher level
review from the contractor business systems review panel.
✔✔What is a payment withhold and why would it be implemented? - ✔✔According to
DFARS 252.242-7005, If the ACO issues the final determination with a notice to
withhold payments for significant deficiencies in a contractor business system, the ACO
SOLUTIONS GUARANTEE A+
✔✔How often is ACO required to input remarks/status updates to Metric Studio
Canceling Funds scorecard? - ✔✔Monthly
✔✔Explain the concept of canceling funds and what you would do as an ACO to
manage them. - ✔✔a. Funds are considered expired after they are no longer current.
They remain expired for 5 years after which they are considered canceled. As an ACO,
it is important to manage canceling funds because otherwise, customers are forced to
use alternate sources to pay contract obligations - usually current year funds, which can
affect their budgets and other programs.
b. Managing canceling funds effectively begins with quality CRR to ensure that payment
instructions are clear and that MOCAS reflects the contract correctly. A contract with
canceling funds should have a full reconciliation completed early on in the fiscal year to
make sure the disbursements align with the contract. If there are errors, this allows time
to coordinate corrections with DFAS if necessary - usually through a 1797. It is also
important to communicate with the contractor to establish their intent to invoice
canceling funds and/or issue final vouchers. If final overhead rates are an issue, quick
closeout rates are an option that allows the contractor to issue a final voucher. If all else
fails, we can also ask the contractors to determine an amount that can be de-obligated
for which we include a release statement in a bilateral modification.
✔✔What is a Business System Analysis Summary (BSAS)? - ✔✔The BSAS is provided
to the ACO by the functional specialist and summarizes a contractor's business
systems. It is designed to assist the cognizant ACO in identifying significant
deficiencies. It does not recommend disapproval of the system. This is an internal
DCMA document intended for use by Contracting Officers in making business system
determinations. Not for release to contractors.
✔✔What actions should a Contracting Officer take when they receive a BSAS? -
✔✔The Contracting Officer shall review all findings from the functional specialist or
auditor, including any recommendations concerning significant deficiencies. The
Contracting Officer is responsible for determining whether or not the deficiencies are
significant or not and to approve or disapprove the system.
✔✔What is the role of the HQs Contractor Business System Review Panel? - ✔✔The
role of the Contractor Business System Review Panel is to ensure significant
deficiencies identified in the Contracting Officer's initial determination notification and
the Contractor's response have been fully evaluated and discussed by the Contracting
Officer and functional specialist or auditor, and CMO Contracts Director or Director of
the CACO/DACO Division of the Cost and Pricing Center, and to ensure consistent
application of business system criteria and policy requirements.
, ✔✔What kind of information is in Contract Business Analysis Repository (CBAR) and
when is the CO required to input data? - ✔✔a. Indirect and direct cost information
(forward pricing rates)
b. Status of Contractor Business Systems (e.g. accounting, estimating, purchasing, etc)
c. Information about costs and financial condition of the parent entity of major
corporations
d. Status of compliance with Cost Accounting Standards (including CAS Disclosure
Statement)
e. PCO (Procuring Contracting Officer) business clearance data prepared to support the
negotiation award of a contract pricing action.
f. Comparison of proposed and negotiated costs
g. The CO should input or update this data as soon as possible after changes occur
h. The CBAR allows COs to share negotiating experiences with other negotiators and
hopefully result in better preparation for negotiations and a better deal for the
Government
✔✔Name the 6 Contractor Business Systems - ✔✔a. Accounting
b. Estimating
c. EVM
d. MMA
e. Property management
f. Purchasing
✔✔What are the four current Contractor Business System status options in CBAR
eTool? - ✔✔a. Approved - legacy determination of "approved," "adequate,"
"acceptable," or "no non-compliances found."
b. Disapproved - legacy determination of "approval withheld", or "approval withdrawn"
c. Not Evaluated - status until the ACO approves or disapproves the business system
d. Not Applicable - contractor is not required to maintain the business system
✔✔Explain the timeline for business systems found to have significant deficiencies -
✔✔a. 10 days for initial determination
b. 30 days for contractor response
c. 30 days for final determination
✔✔What should an acceptable CAP address? - ✔✔The cause of the significant
deficiency, including milestones to eliminate the deficiency and target dates for
implementation of the planned action.
✔✔What must be done prior to disapproval of a business system? - ✔✔A higher level
review from the contractor business systems review panel.
✔✔What is a payment withhold and why would it be implemented? - ✔✔According to
DFARS 252.242-7005, If the ACO issues the final determination with a notice to
withhold payments for significant deficiencies in a contractor business system, the ACO
