CON 3900 – COST AND PRICE ANALYSIS TEST
QUESTIONS AND CORRECT ANSWERS
What does the term "price" mean? The cost of the answer plus any fees or
profits
What is the pricing policy of the government? The response must be fair and
reasonable, derived from reliable sources, and completed independently and
separately.
Price-related source selection: ANSWER cost or price should be assessed in SS
procedures, even if there is a trade-off (would the government pay more for
whatever the trade-off is?)
What is assessed during SS procedures by the Technical Team? ANSWER
calculates labor, material, and other direct cost hourly wages.
ANSWER Price Analysis is the technique of looking at and assessing a
suggested price without analyzing individual cost components and the
suggested profit.
When certified cost or pricing information is not needed, ANSWER Price
Analysis will be utilized.
When certified cost or pricing data is needed, ANSWER Cost Analysis should
be utilized.
Review and assessment of an offeror's proposal's profit or fee as well as any
independent cost components; emphasis on independent cost aspects Cost
Analysis of the Answer
independently going over and assessing particular components of every
suggested cost estimate - ANSWER Cost Realism
must be carried out on cost-reimbursement contracts in order to ascertain each
offeror's likely costs of performance. ANSWER Cost Realism
QUESTIONS AND CORRECT ANSWERS
What does the term "price" mean? The cost of the answer plus any fees or
profits
What is the pricing policy of the government? The response must be fair and
reasonable, derived from reliable sources, and completed independently and
separately.
Price-related source selection: ANSWER cost or price should be assessed in SS
procedures, even if there is a trade-off (would the government pay more for
whatever the trade-off is?)
What is assessed during SS procedures by the Technical Team? ANSWER
calculates labor, material, and other direct cost hourly wages.
ANSWER Price Analysis is the technique of looking at and assessing a
suggested price without analyzing individual cost components and the
suggested profit.
When certified cost or pricing information is not needed, ANSWER Price
Analysis will be utilized.
When certified cost or pricing data is needed, ANSWER Cost Analysis should
be utilized.
Review and assessment of an offeror's proposal's profit or fee as well as any
independent cost components; emphasis on independent cost aspects Cost
Analysis of the Answer
independently going over and assessing particular components of every
suggested cost estimate - ANSWER Cost Realism
must be carried out on cost-reimbursement contracts in order to ascertain each
offeror's likely costs of performance. ANSWER Cost Realism
