ACO CORB LATEST 2026 MAIN FINALS PAPER
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔What do you do if a contract is physically complete but does not have final rates? -
✔✔a. Start the closeout checklist, notify contractor of closeout documentation required.
i. In the event that the contract goes overage, enter reason code and estimated closing
date
b. If final rates are not available (final voucher not received) - the ACO should make an
assessment if the contract is a candidate for quick closeout rates. Otherwise, the ACO
will have to wait for final rates.
c. Once rates are established and the final voucher has been received, the ACO can
assess the risk of the contract and waive the DCAA audit if the ACO feels it is low risk. If
it is not low risk, the ACO should defer closeout until DCAA has audited the contract.
✔✔In what MOCAS section are contracts in litigation kept? - ✔✔Section 3
✔✔What are the forms used for Contract Closeout? - ✔✔DD Form 1597 is the Contract
Closeout Checklist for contracts above simplified acquisition threshold.
DD Form 1594 is the Contract Completion Statement which identifies key contract
information including final voucher/invoice numbers, identification of excess funds, and
ACO signature. The form is provided to the PCO for final closeout of the PCO file. The
DD1594 has been replaced by PK9 transaction data that is to flow automatically from
MOCAS to the PCO contract writing systems.
✔✔How many days does the buying activity have to clear a final patent report (DD Form
882)? - ✔✔a. 60 days
b. If the ACO doesn't receive clearance within the allotted time, the ACO can move
forward with closeout actions upon consultation with legal counsel.
c. If the final patent report is negative, include language that deems clearance to be
issued if PCO does not respond.
✔✔In the case of Economic Price Adjustment (EPA) contract, how long does the
contractor have to notify the ACO of an increase or decrease in rates of pay for labor or
unit prices for material? - ✔✔60 days, but not later than final payment.
✔✔For FFP contracts in CAR Part B, above what dollar threshold must the ACO review
the contract, and generate a final pay NLA in the closeout etool? - ✔✔Anything over
$99,000.
✔✔What is the difference between excess funds, and remaining funds? - ✔✔a. Excess
funds are related to specific line items or deliverables that weren't performed on a
contract. These funds should be deobligated via modification.
,b. Remaining funds are funds left on a contract due to quantity variances or price
rounding and where all contract performance as required by the contract has been
completed and paid in full. These should be removed using the Q-final process.
✔✔What 3 options can be used to establish final indirect cost rates? - ✔✔a. D/ACO rate
settlement
b. Quick closeout
c. ACO or auditor determination
✔✔Within how many days after settlement of the final indirect cost rates for all years of
performance on a physically complete contract must the contractor submit a completion
invoice or voucher reflecting the settled amounts and rates? - ✔✔120 days
✔✔DCAA review of the Final Voucher, or _________constitute the final audit action on
the contract. - ✔✔Issuance of the cumulative allowable cost worksheet (CACWS)
✔✔What is the purpose of the DCMA Class Deviation as it regards quick closeout? -
✔✔a. Authorizes ACOs to close specific contracts prior to the establishment of final
indirect rates regardless of dollar value or the percent of unsettled direct costs and
indirect costs allocable to a contract.
b. It allows the ACO to waive the dollar threshold established by FAR 42.708 ($1M or
10%) for quick closeout when compelling reasons exist (canceling funds/program
requests to re-use money).
c. ACOs shall not use deviation if significant open cost issues exist - CAS
noncompliance, litigation.
✔✔How would you initiate closeout for a physical complete cost reimbursable contract
where DCAA has not yet audited the last incurred cost proposal? - ✔✔a. The last
incurred cost proposal MAY not affect the contract - it depends on the period of
performance of the contract.
b. DCMA INST 135 p 18 - 3.3.1.1. This would require the use of the Class Deviation
authorizing ACOs to close contracts prior to the establishment of final indirect cost
rates, regardless of dollar value or the percent of unsettled indirect costs allocable to the
contract. The deviation can be used provided the contractor has submitted a final
certified indirect cost rate proposal for the subject contract/order that has been audited
by the DCAA. In selected instances, the ACO may waive the incurred cost audit
requirement when compelling reasons exist (canceling funds/program office request...).
The decision to waive the audit must be made by the ACO cognizant of establishing the
Quick-Closeout rate agreement in consultation with DCAA. ACOs are encouraged to
use this deviation to the maximum extent possible.
✔✔A prime contractor uses subcontractors in the performance of a Cost Plus Fixed Fee
contract. A significant delay in the contract closeout has occurred due to the non-receipt
of the incurred cost audit from DCAA for the subcontractors involved. Must final rates of
the subcontractor first be audited by DCAA before the prime contractor can submit a
, final voucher for contract closeout? - ✔✔a. FAR - Quick Closeout and FAR 52.216-7 -
Allowable Cost and Payment
b. The prime contract being a CPFF does not mean the sub is cost-type (keep in mind)
c. Quick closeout rates may be used provided the contract has submitted a final certified
indirect cost rate proposal to DCAA.
d. With some exception, a contractor must have audited rates by DCAA before the
prime contractor can submit a final voucher, per FAR 52.216-7. An example of an
exception to this rule is using a quick close-out agreement.
e. The cognizant ACO of the subcontractor would have to negotiate the quick closeout
rates
✔✔In Jan 2012, 2011 rates were settled. Now it is Jan 2013 and KTR has not yet
submitted finals for 2011 contracts. What do you do? - ✔✔A. Once final annual indirect
cost rates are settled, contractor must submit final invoice or voucher within 120 days -
unless an extension has been approved by contracting officer in writing. Extenuating
circumstances from FAR 42.705(b) - subs, claims, gov property...
B. If the contractor fails to submit a completion invoice or voucher within the specified
time period, the contracting officer may determine the amounts due to the contractor
under the contract. This is determined via unilateral mod (FAR 42.705) and must be in
accordance with FAR 33.211.
✔✔What is the difference between Finance Payments and Invoice Payments? - ✔✔a. A
Finance Payment is a disbursement of monies to a contractor prior to acceptance of
supplies or services by the Government.
b. An Invoice Payment is a disbursement of monies to a contractor for supplies or
services that have been accepted by the Government and is subject to the Prompt
Payment Act.
✔✔What are the different types of financing payments and on what type of contract may
they be used? - ✔✔a. Advance Payments: May be used on any type of contract but
must be authorized by PCO and used sparingly
b. Performance Based Payments: Use on Fixed Price contracts only; never on cost
contracts
c. Progress Payments: May be used on Fixed Price line items; Payments are made on
the basis of either a percentage of completion of work (FAR 32.101, 102) or the
incurrence of costs. DFARS 232.102 limits progress payments based on completion of
work within DoD to construction, shipbuilding, and ship conversion/alteration/repair.
d. Loan Guarantees: Made by Federal Reserve banks, on behalf of designated
guaranteeing agencies, to enable contractors to obtain financing from private sources.
✔✔Are performance based payments allowed for UCAs? - ✔✔a. Yes they are, but
progress payments are preferred
b. The first few months of a contract typically do no provide objectively measurable PBP
events
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔What do you do if a contract is physically complete but does not have final rates? -
✔✔a. Start the closeout checklist, notify contractor of closeout documentation required.
i. In the event that the contract goes overage, enter reason code and estimated closing
date
b. If final rates are not available (final voucher not received) - the ACO should make an
assessment if the contract is a candidate for quick closeout rates. Otherwise, the ACO
will have to wait for final rates.
c. Once rates are established and the final voucher has been received, the ACO can
assess the risk of the contract and waive the DCAA audit if the ACO feels it is low risk. If
it is not low risk, the ACO should defer closeout until DCAA has audited the contract.
✔✔In what MOCAS section are contracts in litigation kept? - ✔✔Section 3
✔✔What are the forms used for Contract Closeout? - ✔✔DD Form 1597 is the Contract
Closeout Checklist for contracts above simplified acquisition threshold.
DD Form 1594 is the Contract Completion Statement which identifies key contract
information including final voucher/invoice numbers, identification of excess funds, and
ACO signature. The form is provided to the PCO for final closeout of the PCO file. The
DD1594 has been replaced by PK9 transaction data that is to flow automatically from
MOCAS to the PCO contract writing systems.
✔✔How many days does the buying activity have to clear a final patent report (DD Form
882)? - ✔✔a. 60 days
b. If the ACO doesn't receive clearance within the allotted time, the ACO can move
forward with closeout actions upon consultation with legal counsel.
c. If the final patent report is negative, include language that deems clearance to be
issued if PCO does not respond.
✔✔In the case of Economic Price Adjustment (EPA) contract, how long does the
contractor have to notify the ACO of an increase or decrease in rates of pay for labor or
unit prices for material? - ✔✔60 days, but not later than final payment.
✔✔For FFP contracts in CAR Part B, above what dollar threshold must the ACO review
the contract, and generate a final pay NLA in the closeout etool? - ✔✔Anything over
$99,000.
✔✔What is the difference between excess funds, and remaining funds? - ✔✔a. Excess
funds are related to specific line items or deliverables that weren't performed on a
contract. These funds should be deobligated via modification.
,b. Remaining funds are funds left on a contract due to quantity variances or price
rounding and where all contract performance as required by the contract has been
completed and paid in full. These should be removed using the Q-final process.
✔✔What 3 options can be used to establish final indirect cost rates? - ✔✔a. D/ACO rate
settlement
b. Quick closeout
c. ACO or auditor determination
✔✔Within how many days after settlement of the final indirect cost rates for all years of
performance on a physically complete contract must the contractor submit a completion
invoice or voucher reflecting the settled amounts and rates? - ✔✔120 days
✔✔DCAA review of the Final Voucher, or _________constitute the final audit action on
the contract. - ✔✔Issuance of the cumulative allowable cost worksheet (CACWS)
✔✔What is the purpose of the DCMA Class Deviation as it regards quick closeout? -
✔✔a. Authorizes ACOs to close specific contracts prior to the establishment of final
indirect rates regardless of dollar value or the percent of unsettled direct costs and
indirect costs allocable to a contract.
b. It allows the ACO to waive the dollar threshold established by FAR 42.708 ($1M or
10%) for quick closeout when compelling reasons exist (canceling funds/program
requests to re-use money).
c. ACOs shall not use deviation if significant open cost issues exist - CAS
noncompliance, litigation.
✔✔How would you initiate closeout for a physical complete cost reimbursable contract
where DCAA has not yet audited the last incurred cost proposal? - ✔✔a. The last
incurred cost proposal MAY not affect the contract - it depends on the period of
performance of the contract.
b. DCMA INST 135 p 18 - 3.3.1.1. This would require the use of the Class Deviation
authorizing ACOs to close contracts prior to the establishment of final indirect cost
rates, regardless of dollar value or the percent of unsettled indirect costs allocable to the
contract. The deviation can be used provided the contractor has submitted a final
certified indirect cost rate proposal for the subject contract/order that has been audited
by the DCAA. In selected instances, the ACO may waive the incurred cost audit
requirement when compelling reasons exist (canceling funds/program office request...).
The decision to waive the audit must be made by the ACO cognizant of establishing the
Quick-Closeout rate agreement in consultation with DCAA. ACOs are encouraged to
use this deviation to the maximum extent possible.
✔✔A prime contractor uses subcontractors in the performance of a Cost Plus Fixed Fee
contract. A significant delay in the contract closeout has occurred due to the non-receipt
of the incurred cost audit from DCAA for the subcontractors involved. Must final rates of
the subcontractor first be audited by DCAA before the prime contractor can submit a
, final voucher for contract closeout? - ✔✔a. FAR - Quick Closeout and FAR 52.216-7 -
Allowable Cost and Payment
b. The prime contract being a CPFF does not mean the sub is cost-type (keep in mind)
c. Quick closeout rates may be used provided the contract has submitted a final certified
indirect cost rate proposal to DCAA.
d. With some exception, a contractor must have audited rates by DCAA before the
prime contractor can submit a final voucher, per FAR 52.216-7. An example of an
exception to this rule is using a quick close-out agreement.
e. The cognizant ACO of the subcontractor would have to negotiate the quick closeout
rates
✔✔In Jan 2012, 2011 rates were settled. Now it is Jan 2013 and KTR has not yet
submitted finals for 2011 contracts. What do you do? - ✔✔A. Once final annual indirect
cost rates are settled, contractor must submit final invoice or voucher within 120 days -
unless an extension has been approved by contracting officer in writing. Extenuating
circumstances from FAR 42.705(b) - subs, claims, gov property...
B. If the contractor fails to submit a completion invoice or voucher within the specified
time period, the contracting officer may determine the amounts due to the contractor
under the contract. This is determined via unilateral mod (FAR 42.705) and must be in
accordance with FAR 33.211.
✔✔What is the difference between Finance Payments and Invoice Payments? - ✔✔a. A
Finance Payment is a disbursement of monies to a contractor prior to acceptance of
supplies or services by the Government.
b. An Invoice Payment is a disbursement of monies to a contractor for supplies or
services that have been accepted by the Government and is subject to the Prompt
Payment Act.
✔✔What are the different types of financing payments and on what type of contract may
they be used? - ✔✔a. Advance Payments: May be used on any type of contract but
must be authorized by PCO and used sparingly
b. Performance Based Payments: Use on Fixed Price contracts only; never on cost
contracts
c. Progress Payments: May be used on Fixed Price line items; Payments are made on
the basis of either a percentage of completion of work (FAR 32.101, 102) or the
incurrence of costs. DFARS 232.102 limits progress payments based on completion of
work within DoD to construction, shipbuilding, and ship conversion/alteration/repair.
d. Loan Guarantees: Made by Federal Reserve banks, on behalf of designated
guaranteeing agencies, to enable contractors to obtain financing from private sources.
✔✔Are performance based payments allowed for UCAs? - ✔✔a. Yes they are, but
progress payments are preferred
b. The first few months of a contract typically do no provide objectively measurable PBP
events
