CONTRACTING 1300 EXAM QUESTIONS
AND ANSWERS
Cost Risk - ANSWER-Escalation of project costs. Risk causing the project to cost more
than the budget allocated.
Schedule Risk - ANSWER-Risk that activities will take longer than expected and is
typically the result of poor planning or unforeseen circumstances.
Performance Risk - ANSWER-Risk that the project will fail to produce results consistent
with the project specifications.
Proposal Analysis - ANSWER-A critical responsibility of a contracting officer is to
determine proposed prices to be fair and reasonable in all contract actions—from
competitive to sole-source, from commercial and non-commercial, including contract
modifications, terminations, settlements of claims and requests for equitable
adjustment.
Objective of Proposal Analysis - ANSWER-The objective of proposal analysis is to
ensure that the final agreed-to price is fair and reasonable.
Cost Realism Analysis - ANSWER-The process of independently reviewing and
evaluating specific elements of each offeror's proposed cost estimate to determine
whether the estimated proposed cost elements
Purpose of conducting cost realism analysis - ANSWER-Speaks to competency of
contractor. Prevents buy-in.
Methods of price analysis - ANSWER-Comparison of proposed prices received in
response to the solicitation (Competition)
Comparison of previously proposed prices to historical prices paid for the same or
similar items
Parametric estimating methods/application of rough yardsticks
Comparison with competitive published price lists
Comparison with Independent Government Cost Estimate (IGCE)
Comparison with prices obtained through market research
Analysis of data other than certified cost or pricing data provided by the offeror
, Price Analysis Cannot: - ANSWER-Actually change the price
Price Related Factors - ANSWER-HUB Zone
Multiple Awards
GFP (adjust for it)
FOB Origin / Transportation
Buy America
HUB Zone Factor - ANSWER-Applies when full and open competition is expected and
requirement exceeds the micro-purchase threshold.
Adds 10% price evaluation preference (PEP) to all offers except HUBZone Small
Businesses or otherwise successful Small Businesses.
Price Analysis for LPTA - ANSWER-Lowest price usually wins
TINA requires what type of analysis? - ANSWER-Cost analysis is certified by TINA.
TINA Exemptions - ANSWER-Commercial
Competition
Waiver
CCW
Direct Cost - ANSWER-Any cost directly identified with a single, final cost objective
Indirect Cost - ANSWER-Any cost not directly identified with a single, final cost
objective, but identified with two or more final cost objectives or with at least one
intermediate cost objective
Cost Analysis Steps - ANSWER-Get a "Good" Proposal [FAR Table 15.2 compliant].
Enlist Help of Others.
Review the proposal.
Model the proposal.
Fact-find the proposal.
Evaluate the proposal.
Cost Realism Analysis for Fixed Price - ANSWER-You may use it. You must not adjust
offered prices as a result of the analysis.
Cost Realism Analysis for Cost Reimbursable Contracts - ANSWER-SHALL be
performed on cost-reimbursement contracts to determine the probable cost for each
offeror.
Price Negotiation Memorandum (PNM) - ANSWER-Stand alone document that tells the
whole story and confirms fair and reasonable costs.
AND ANSWERS
Cost Risk - ANSWER-Escalation of project costs. Risk causing the project to cost more
than the budget allocated.
Schedule Risk - ANSWER-Risk that activities will take longer than expected and is
typically the result of poor planning or unforeseen circumstances.
Performance Risk - ANSWER-Risk that the project will fail to produce results consistent
with the project specifications.
Proposal Analysis - ANSWER-A critical responsibility of a contracting officer is to
determine proposed prices to be fair and reasonable in all contract actions—from
competitive to sole-source, from commercial and non-commercial, including contract
modifications, terminations, settlements of claims and requests for equitable
adjustment.
Objective of Proposal Analysis - ANSWER-The objective of proposal analysis is to
ensure that the final agreed-to price is fair and reasonable.
Cost Realism Analysis - ANSWER-The process of independently reviewing and
evaluating specific elements of each offeror's proposed cost estimate to determine
whether the estimated proposed cost elements
Purpose of conducting cost realism analysis - ANSWER-Speaks to competency of
contractor. Prevents buy-in.
Methods of price analysis - ANSWER-Comparison of proposed prices received in
response to the solicitation (Competition)
Comparison of previously proposed prices to historical prices paid for the same or
similar items
Parametric estimating methods/application of rough yardsticks
Comparison with competitive published price lists
Comparison with Independent Government Cost Estimate (IGCE)
Comparison with prices obtained through market research
Analysis of data other than certified cost or pricing data provided by the offeror
, Price Analysis Cannot: - ANSWER-Actually change the price
Price Related Factors - ANSWER-HUB Zone
Multiple Awards
GFP (adjust for it)
FOB Origin / Transportation
Buy America
HUB Zone Factor - ANSWER-Applies when full and open competition is expected and
requirement exceeds the micro-purchase threshold.
Adds 10% price evaluation preference (PEP) to all offers except HUBZone Small
Businesses or otherwise successful Small Businesses.
Price Analysis for LPTA - ANSWER-Lowest price usually wins
TINA requires what type of analysis? - ANSWER-Cost analysis is certified by TINA.
TINA Exemptions - ANSWER-Commercial
Competition
Waiver
CCW
Direct Cost - ANSWER-Any cost directly identified with a single, final cost objective
Indirect Cost - ANSWER-Any cost not directly identified with a single, final cost
objective, but identified with two or more final cost objectives or with at least one
intermediate cost objective
Cost Analysis Steps - ANSWER-Get a "Good" Proposal [FAR Table 15.2 compliant].
Enlist Help of Others.
Review the proposal.
Model the proposal.
Fact-find the proposal.
Evaluate the proposal.
Cost Realism Analysis for Fixed Price - ANSWER-You may use it. You must not adjust
offered prices as a result of the analysis.
Cost Realism Analysis for Cost Reimbursable Contracts - ANSWER-SHALL be
performed on cost-reimbursement contracts to determine the probable cost for each
offeror.
Price Negotiation Memorandum (PNM) - ANSWER-Stand alone document that tells the
whole story and confirms fair and reasonable costs.
