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ACO CORB EXAM LATEST UPDATE THIS YEAR
ALL WITH 350 QUESTIONS AND CORRECT
DETAILED ANSWERS
Question: What are the characteristics of a contract line item (CLIN)? - CORRECT
ANSWER✔✔Characteristics of CLIN are: Separately Identifiable, One fund citation, Separate
Delivery Schedule, Single Unit Price.
Question: Explain what an Informational Subline Item is, and explain what a Separately
Identified Subline Item is. - CORRECT ANSWER✔✔a. An informational subline item is used to
provide information about the CLIN, like parts of a kit, but it shouldn't have a delivery
information tied to it for shipment or pricing information tied to it to for payment purposes. Use
Info CLINs to identify each accounting classification citation (ACRN) that is assigned to a single
line item. Uses numeric suffix.
b. A separately identifiable subline item (subclin) has the same characteristics of a CLIN so it
would be used in situations with similar characteristics. Use Sub CLINs to establish ACRNs for
severable quantities associated with a single accounting classification. It can be scheduled or
priced separately. Uses alpha suffix.
Question: What are the responsibilities of an ACO? - CORRECT ANSWER✔✔The ACO is
responsible to ensure the best interest of the Government is protected by ensuring the terms
and conditions of the contracts are appropriate and that all parties execute the contract
according to the terms and conditions of the contract. The ACO is responsible for ensuring the
DCMA mission of providing Contract Administration services to DOD activities and its partners
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of the delivery of quality products and services to the warfighter, on time and on cost, by
properly administrating FAR 42.302 and other applicable regulations and instructions.
FAR 1.602-2 - "Contracting officers are responsible for ensuring performance of all necessary
actions for effective contracting, ensuring compliance with the terms of the contract, and
safeguarding the interests of the United States in its contractual relationships."
Question: What is the difference between an ACO and a CA? - CORRECT ANSWER✔✔a. The
ACO has a warrant that binds the government. The ACO decisions and documents are binding.
b. The CA prepares documents up to signature but cannot bind the government.
c. FAR 1.602-1 - "(a) Contracting officers have authority to enter into, administer, or terminate
contracts and make related determinations and findings. Contracting officers may bind the
Government only to the extent of the authority delegated to them. Contracting officers shall
receive from the appointing authority (see 1.603-1) clear instructions in writing regarding the
limits of their authority. Information on the limits of the contracting officers' authority shall be
readily available to the public and agency personnel."
Question: What is the relationship between the prime and subcontractor? - CORRECT
ANSWER✔✔The prime is responsible to see that the subcontractor performs IAW with the
terms and conditions of the contract. Our relationship is with the prime (privity of contract).
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Question: What are the duties of an ACO? - CORRECT ANSWER✔✔The duties of an ACO
includes being responsible for the administration (including closeout) of various types of
contracts. ACO's organize team members' work to ensure overall mission success - supporting
the warfighter. Perform administration functions such as determining eligibility and verifying
evidence for contract financing such as progress payments, PBP, reviewing and making
recommendations on pricing reports, reviewing and negotiating orders, monitoring contractor
performance and compliance with contract (and regulations). ACO's also monitor performance
and take corrective actions as necessary when problems arise regarding schedules, GFP, quality
assurance, or other issues. Assure contractor compliance with CAS via reviews of disclosure
statements and negotiate cost impacts of accounting system changes. Determine allowability
and allocability of costs.
Question: What is the objective of proposal analysis? - CORRECT ANSWER✔✔To ensure the
final agreed upon price is fair and reasonable.
Question: What is the difference between cost, and price analysis? - CORRECT
ANSWER✔✔Price analysis is the process of examining and evaluating a proposed price without
evaluating its separate cost elements and proposed profit. FAR 15.404-1(b)(2)
Cost analysis is the review and evaluation of any of the separate cost elements and profit or fee
to determine a fair and reasonable price or to determine cost realism. It is also the application
of judgment to determine how well the proposed costs represent what the cost of the contract
should be assuming reasonable economy and efficiency. FAR 15.404-1(c)
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Question: You are assigned negotiation of an unpriced order consisting of urgently needed
spare parts. After receipt of the contractor's proposal it is evident you will need more funding.
You immediately call the PCO who is out of the office for two weeks. The Contracting Officer's
Technical Representative tells you they talked with funding personnel, that there is plenty of
funding, to proceed and negotiate with the contractor and that the PCO will provide additional
funds when they return. How would you handle this? - CORRECT ANSWER✔✔To avoid anti-
deficiency act violation ensure you get something in writing showing availability of funds. Ask
the COTR for a POC in the finance office and advise that you are unable to proceed without
written confirmation of funding availability.
Question: What is the difference between a PNOM & PNM? - CORRECT ANSWER✔✔The Pre-
Negotiation Objective (PNO) establishes the Government's initial negotiation parameters before
conducting the negotiation and document the Assigned Individual's determination of a fair and
reasonable price. The Assigned Individual shall document the pre-negotiation objectives in a
PNOM and must consider the results of the cost and pricing analysis report or other reports
provided.
The Price Negotiation Memorandum (PNM) is documentation of the results of the negotiation.
The Assigned Individual shall clearly state in the PNM how the negotiated price was determined
fair and reasonable. If the total negotiated price exceeds the total pre-negotiation objective, the
PNM shall include sufficient rationale for determining the price fair and reasonable.
Question: How many days does DCMA have to review a contract and ensure data integrity? -
CORRECT ANSWER✔✔30 days
ACO CORB EXAM LATEST UPDATE THIS YEAR
ALL WITH 350 QUESTIONS AND CORRECT
DETAILED ANSWERS
Question: What are the characteristics of a contract line item (CLIN)? - CORRECT
ANSWER✔✔Characteristics of CLIN are: Separately Identifiable, One fund citation, Separate
Delivery Schedule, Single Unit Price.
Question: Explain what an Informational Subline Item is, and explain what a Separately
Identified Subline Item is. - CORRECT ANSWER✔✔a. An informational subline item is used to
provide information about the CLIN, like parts of a kit, but it shouldn't have a delivery
information tied to it for shipment or pricing information tied to it to for payment purposes. Use
Info CLINs to identify each accounting classification citation (ACRN) that is assigned to a single
line item. Uses numeric suffix.
b. A separately identifiable subline item (subclin) has the same characteristics of a CLIN so it
would be used in situations with similar characteristics. Use Sub CLINs to establish ACRNs for
severable quantities associated with a single accounting classification. It can be scheduled or
priced separately. Uses alpha suffix.
Question: What are the responsibilities of an ACO? - CORRECT ANSWER✔✔The ACO is
responsible to ensure the best interest of the Government is protected by ensuring the terms
and conditions of the contracts are appropriate and that all parties execute the contract
according to the terms and conditions of the contract. The ACO is responsible for ensuring the
DCMA mission of providing Contract Administration services to DOD activities and its partners
, Page 2 of 51
of the delivery of quality products and services to the warfighter, on time and on cost, by
properly administrating FAR 42.302 and other applicable regulations and instructions.
FAR 1.602-2 - "Contracting officers are responsible for ensuring performance of all necessary
actions for effective contracting, ensuring compliance with the terms of the contract, and
safeguarding the interests of the United States in its contractual relationships."
Question: What is the difference between an ACO and a CA? - CORRECT ANSWER✔✔a. The
ACO has a warrant that binds the government. The ACO decisions and documents are binding.
b. The CA prepares documents up to signature but cannot bind the government.
c. FAR 1.602-1 - "(a) Contracting officers have authority to enter into, administer, or terminate
contracts and make related determinations and findings. Contracting officers may bind the
Government only to the extent of the authority delegated to them. Contracting officers shall
receive from the appointing authority (see 1.603-1) clear instructions in writing regarding the
limits of their authority. Information on the limits of the contracting officers' authority shall be
readily available to the public and agency personnel."
Question: What is the relationship between the prime and subcontractor? - CORRECT
ANSWER✔✔The prime is responsible to see that the subcontractor performs IAW with the
terms and conditions of the contract. Our relationship is with the prime (privity of contract).
, Page 3 of 51
Question: What are the duties of an ACO? - CORRECT ANSWER✔✔The duties of an ACO
includes being responsible for the administration (including closeout) of various types of
contracts. ACO's organize team members' work to ensure overall mission success - supporting
the warfighter. Perform administration functions such as determining eligibility and verifying
evidence for contract financing such as progress payments, PBP, reviewing and making
recommendations on pricing reports, reviewing and negotiating orders, monitoring contractor
performance and compliance with contract (and regulations). ACO's also monitor performance
and take corrective actions as necessary when problems arise regarding schedules, GFP, quality
assurance, or other issues. Assure contractor compliance with CAS via reviews of disclosure
statements and negotiate cost impacts of accounting system changes. Determine allowability
and allocability of costs.
Question: What is the objective of proposal analysis? - CORRECT ANSWER✔✔To ensure the
final agreed upon price is fair and reasonable.
Question: What is the difference between cost, and price analysis? - CORRECT
ANSWER✔✔Price analysis is the process of examining and evaluating a proposed price without
evaluating its separate cost elements and proposed profit. FAR 15.404-1(b)(2)
Cost analysis is the review and evaluation of any of the separate cost elements and profit or fee
to determine a fair and reasonable price or to determine cost realism. It is also the application
of judgment to determine how well the proposed costs represent what the cost of the contract
should be assuming reasonable economy and efficiency. FAR 15.404-1(c)
, Page 4 of 51
Question: You are assigned negotiation of an unpriced order consisting of urgently needed
spare parts. After receipt of the contractor's proposal it is evident you will need more funding.
You immediately call the PCO who is out of the office for two weeks. The Contracting Officer's
Technical Representative tells you they talked with funding personnel, that there is plenty of
funding, to proceed and negotiate with the contractor and that the PCO will provide additional
funds when they return. How would you handle this? - CORRECT ANSWER✔✔To avoid anti-
deficiency act violation ensure you get something in writing showing availability of funds. Ask
the COTR for a POC in the finance office and advise that you are unable to proceed without
written confirmation of funding availability.
Question: What is the difference between a PNOM & PNM? - CORRECT ANSWER✔✔The Pre-
Negotiation Objective (PNO) establishes the Government's initial negotiation parameters before
conducting the negotiation and document the Assigned Individual's determination of a fair and
reasonable price. The Assigned Individual shall document the pre-negotiation objectives in a
PNOM and must consider the results of the cost and pricing analysis report or other reports
provided.
The Price Negotiation Memorandum (PNM) is documentation of the results of the negotiation.
The Assigned Individual shall clearly state in the PNM how the negotiated price was determined
fair and reasonable. If the total negotiated price exceeds the total pre-negotiation objective, the
PNM shall include sufficient rationale for determining the price fair and reasonable.
Question: How many days does DCMA have to review a contract and ensure data integrity? -
CORRECT ANSWER✔✔30 days
