CON 290 Quiz Question Pool – Week 1 (Instructor Solution – Quiz B) ALL ANSWERS 100% CORRECT FALL-2021 GUARANTEED GRADE A+

1. Lesson 10: Production Contract Review – Print Versions A & B TLO 20: For a given fact scenario, determine whether a contractor's request for performance- based payments should be made. ELO 20-3: For a given fact scenario, determine whether a contractor's request for performance- based payments should be made based on FAR conditions for approving performance-based payments. Question : You are administering a contract with Sensoria for low-rate initial production of a new sensor. The contract includes a provision for performance-based payments, with three cumulative and two severable events. The contractor has submitted a request for payment for Events 2 and 3. Event 3 is cumulative to Event. 2. Sensoria has completed 95% of the event criteria for Event 2 and 100% of the event criteria for Event 3. May you approve the payment request? a. No for both events. b. No for Event 2 but yes for Event 3. c. Yes for both events, if Sensoria promises in writing to complete Event 1 prior to the due date for Event 4. d. Yes for both events, but only Sensoria is a small business. 2. Lesson 10: Production Contract Review – Print Versions A & B TLO 20: For a given fact scenario, determine whether a contractor's request for performance- based payments should be made. ELO 20-1: Identify the types of financing available for use in Federal contracts and their characteristics. Question: You are preparing an RFP for a CPIF contract and are considering offering contract financing in the form of either performance-based payments or progress payments based on cost. Which form of financing may you offer? a. Either form may be offered, regardless of contract type, but performance-based payments are preferred. b. Performance-based payments must always be offered over progress payments. c. Neither form may be offered, if this will be a cost-reimbursement contract type. d. Contract financing may not be offered in the solicitation. If the selected contractor specifically requests financing, performance-based payments may be offered. 3. Lesson 10: Production Contract Review – Print Version B TLO 19: Calculate the point of total assumption (PTA) for a given fixed-price incentive firm (FPIF) contract. ELO 19-4: Recognize the impact of PTA on contractor performance. Question: You are about to award a fixed-price-incentive-firm (FPIF) contract to Dowling Corporation for low-rate initial production of new sensor. After contract award, why is it important to calculate the point of total assumption (PTA) for the contract? a. So you can use PTA to determine whether the contractor’s incurred costs are allowable. b. So you can use PTA to assist in monitoring cost performance during contract execution. c. There is no need to calculate PTA after award because PTA is no longer relevant once award is made. d. So you can use PTA to determine the final price at contract completion. 4. Lesson 10: Production Contract Review – Print Version B TLO 19: Calculate the point of total assumption (PTA) for a given fixed-price incentive firm (FPIF) contract. ELO 19-1: Recognize the characteristics of an FPIF contract type. Question: While preparing an RFP, you are considering using either a fixed-price-incentive-firm (FPIF) or a cost-plus-incentive-fee (CPIF) contract type. Which contract type would a contractor most likely prefer from a profit/fee perspective? a. FPIF, if the contractor wants to minimize its potential for loss. b. CPIF, if the contractor wants to maximize its profit/fee potential. c. FPIF, if the contractor wants to maximize its profit/fee potential. d. Contractors are not concerned with contract type. 5. Lesson 7 : R&D Case Study – Print Version B TLO 16: For a given previously developed pre-negotiation objective, orally present the objective to a business clearance official to gain approval to start negotiations. ELO 16-1: Recognize the purpose of a business clearance briefing. Question: What is one of the main purposes of a Business Clearance (also known as a Review Board) briefing? a. To practice making detailed slides to be used in the negotiations b. To gain approval from management to begin negotiations c. To have some additional documentation for the contract file d. To be a substitute to writing a Post PNM 6. Lesson 7 : R&D Case Study (FAR 52.215-23)– Print Versions A & B TLO 14: For a given contractor CPFF completion proposal and related Government audit and technical evaluation documentation, establish a Government pre-negotiation objective and document in a pre-negotiation memorandum (pre-PNM). ELO 14-5: Evaluate whether excessive pass-through exists. Question: You are analyzing a proposal from SensorSmart, Inc. for a cost-plus-incentive-fee (CPIF) R&D contract to develop a new sensor. The $5 million dollar proposal includes $1 million dollars in subcontract costs for the lease of a special test facility. Should you allow SensorSmart to add G&A and profit to the $1 million of subcontract costs? a. No, if SensorSmart cannot demonstrate “added value.” b. Yes, if SensorSmart will not agree to remove the added G&A and profit from its proposal. c. No, G&A and profit rates should be negotiated and applied on an item-by-item basis to avoid overpayment by the Government. Using this method, lower rates should be applied to all high-dollar line items. d. Yes, if the G&A rate is deemed excessive. 7. Lesson 7: R&D Case Study – Print Version B TLO 14: For a given contractor CPFF completion proposal and related Government audit and technical evaluation documentation, establish a Government pre-negotiation objective and document in a pre-negotiation memorandum (pre-PNM). ELO 14-1: For a given KTR proposal and related Government audit and technical evaluation documentation, identify material issues for negotiation. Question: The Nanotech case study brought each of the following negotiation issues into play except: a. Intellectual property rights b. Government Furnished Equipment c. Follow-on options d. Period of performance 8. Lesson 7: R&D Case (Reference: DFARS 215.404-71-2) – Print Versions A & B TLO 14: For a given contractor CPFF completion proposal and related Government audit and technical evaluation documentation, establish a Government pre-negotiation objective and document in a pre-negotiation memorandum (pre-PNM). ELO 14-2: For each given cost element, perform cost analysis on the contractor's proposed costs. Question: Recall the Nanotech proposal of record as follows: Material 559,200 Labor 565,760 ODC (includes 3.9% misc ODC) 1,912,704 Subtotal 3,037,664 G&A 73.5% 2,232,683 Subtotal Cost 5,270,347 Fee 20.0% 1,054,069 FCCOM 15,674 Total 6,340,090 Nanotech’s proposal included a 3.9% Miscellaneous ODC factor applied to all ODC costs. The PDI license fee of $1,000,000 was also included as an ODC. If the Government negotiates a license with PDI directly and provides the sensor technical data package as GFP to NanoTech, by how much would NanoTech’s total proposal decrease? (NOTE: Since you do not have the tools to recalculate FCCOM, keep FCCOM at $15,674 for your calculation.) a. $1,000,000 b. $1,802,665 c. $1,039,000 d. $2,163,198 Instructor solution: Before After Material 559,200 559,200 Labor 565,760 565,760 < Delete ODC (includes 3.9% misc ODC factor) 1,912,704 873,704 $1,039,000* Subtotal 3,037,664 1,998,664 G&A 73.5% 2,232,683 1,469,018 Subtotal Cost 5,270,347 3,467,682 Fee 20.0% 1,054,069 693,536 FCCOM 15,674 15,674 < Delta is Total 6,340,090 4,176,892 2,163,198 *$1,000,000 license fee plus 3.9% misc ODC factor 9. Lesson 6: Negotiation Overview – Print Version B