CLC 056 Challenge Questions With Correct Answers

One of the elements of the government pricing objective is to ensure that contract prices are fair and reasonable. Which of the following statements is true about "fairness to seller" that involve concerns? (Select all that apply) - Answer - Sellers need to be concerned about an unrealistic low price because of the risk - Sellers need to be concerned about the market implications of a price that is too high - Sellers need to be concerned about major mistakes in estimating costs - Sellers need to be concerned about recovering buy-in losses Which of the following are market conditions that affect a reasonable price? - Answer - Competition - Supply and Demand - General Economic Conditions All of the following statements are true about government contracting as part of pricing each contract separately EXCEPT: - Answer - Buyers and sellers usually have a good working knowledge of transactions between a contractor and the government Which of the following is the correct definition of a contingency in government contracting? - Answer - Possible future event arising from known or unknown causes where the outcome cannot be determined You have been asked to procure seven high definition mobile cameras. You determine that this is a commercial item. The prices for these items range from approximately $400,000 to $650,000 each. You identify six vendors but you only receive one offer from Advanced Technology Solutions (ATS). You contact ATS and they are willing to provide quantities, dates of sale, discounts offered, and prices offered to their other customers. What analysis of ATS's offer should you use? - Answer Price analysis In reviewing the acquisition plan, which form of proposal analysis do you think the Contracting Officer contemplated using prior to soliciting offers? - Answer Price analysis Which of the following estimating methods produces estimates based on an analysis of the methods and materials required to complete each element of the work required by the contract? - Answer Detailed Which of the following are key terms associated with TINA? - Answer - Certified Cost or Pricing Data - Cost or Pricing Data - Data Other than Certified Cost or Pricing Data Review Section B of the Acquisition Plan for the initial BBOMs contract. Did the Truth in Negotiation Act apply to this initial procurement? Why or why not? - Answer No. While the initial award amount exceeded the TINA threshold of $2 million, the Contracting Officer determined through market research that adequate price competition would exist for this requirement. Therefore, the exception at FAR 15.403-1(b)(1) applied. Offerors were not required to submit certified cost or pricing data. A noncommercial modification valued at $20.9 million is required for the BBOMs contract. Will we require the submission of certified cost or pricing data on this modification? - Answer Yes. Since the initial estimate of this modification is $20.9M, it is over the threshold of $2 million and therefore requires the offeror to submit certified cost or pricing data. What gives us the authority to request the submission of certified cost or pricing data on this modification? - Answer TINA and FAR 52.215-21 Unless an exception applies, TINA and FAR 52.215-21 require the submission of certified cost or pricing data for any modification expected to exceed the current threshold, regardless of whether or not certified cost or pricing data were initially required