CON 1300V - PRICE OR COST ANALYSIS
EXAM QUESTIONS WITH COMPLETE
ANSWERS
Your organization procures tires in support of your vehicle fleet. Last year, the price for
the particular truck tire was $114. The appropriate index for truck tires was 98 last year.
This year, the index for truck tires has fallen to 95. Using these indexes, what would you
estimate the price of this truck tire in similar quantities to be this year?
$96.50
$99.00
$102.13
$110.51 - ANSWER-$110.51
The USDA Forest Service (FS) has a requirement for metal beams and miscellaneous
building materials commonly used in the Forest Service Visitor Centers. Because the
FS has previously purchased these items, there is data available on historical prices
paid. When performing the price analysis, which analysis technique is most appropriate
when converting historical prices to constant dollars for comparison purposes?
Parametric estimates
Cost volume-volume analysis
Price indexing
Comparison with commercial prices - ANSWER-Price indexing
Which of the statements below correctly describes the concept of fair and reasonable?
The price must be fair only to the buyer
The concept of "reasonable" is a price that a prudent and competent buyer would be
willing to pay given available knowledge of market conditions
The FAR definitions of fair and reasonable are in FAR 2.101
Knowledge of market - ANSWER-The concept of "reasonable" is a price that a prudent
and competent buyer would be willing to pay given available knowledge of market
conditions
Which of the following bases for comparison may the contracting officer use in
determining if a price is fair and reasonable?
Historical prices and contract prices for the same or similar end items
Independent government estimates
Proposed prices received in response to the solicitation
Any or all of the above - ANSWER-Any or all of the above
EXAM QUESTIONS WITH COMPLETE
ANSWERS
Your organization procures tires in support of your vehicle fleet. Last year, the price for
the particular truck tire was $114. The appropriate index for truck tires was 98 last year.
This year, the index for truck tires has fallen to 95. Using these indexes, what would you
estimate the price of this truck tire in similar quantities to be this year?
$96.50
$99.00
$102.13
$110.51 - ANSWER-$110.51
The USDA Forest Service (FS) has a requirement for metal beams and miscellaneous
building materials commonly used in the Forest Service Visitor Centers. Because the
FS has previously purchased these items, there is data available on historical prices
paid. When performing the price analysis, which analysis technique is most appropriate
when converting historical prices to constant dollars for comparison purposes?
Parametric estimates
Cost volume-volume analysis
Price indexing
Comparison with commercial prices - ANSWER-Price indexing
Which of the statements below correctly describes the concept of fair and reasonable?
The price must be fair only to the buyer
The concept of "reasonable" is a price that a prudent and competent buyer would be
willing to pay given available knowledge of market conditions
The FAR definitions of fair and reasonable are in FAR 2.101
Knowledge of market - ANSWER-The concept of "reasonable" is a price that a prudent
and competent buyer would be willing to pay given available knowledge of market
conditions
Which of the following bases for comparison may the contracting officer use in
determining if a price is fair and reasonable?
Historical prices and contract prices for the same or similar end items
Independent government estimates
Proposed prices received in response to the solicitation
Any or all of the above - ANSWER-Any or all of the above
