ACO CORB EXAM SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS
● Examples of responsibilities of an ACO? Answer: Conduct post
award conferences, negotiate forward pricing rate agreements, determine
allowability of costs, establish final indirect costs and billing rates,
process novation and name change agreements, and perform
administrative closeout procedures.
● What is the difference between an ACO and CA? Answer: The ACO
has a warrant that binds the Government. The ACO's decisions and
documents are binding. The CA prepares documents up to signature but
cannot bind the Government.
● What is the relationship between the prime and subcontractor?
Answer: Privity - If the Government has a contract with the prime
contractor; there is privity of contract between the Government and the
prime. If the prime has a contract with its subcontractors, privity of
contract exists between the prime and its subcontractor. No privity of
contract exists between the Government and the sub (unless there is
another contract with them). If no privity, you cannot negotiate directly
with the sub or direct the sub to take any action.
● Generally speaking how long are funds available before they cancel?
Answer: 5 years
,● Who can authorize the use of Advanced Payments? Answer: PCO
● What is the difference between finance payments and invoice
payments? Answer: Finance payments are payments made to a
contractor prior to acceptance of product/service, while invoice
payments are made based on acceptance of product/service.
● Examples of financing payments Answer: Progress Payments based
on cost or completion of work, Performance Based Payments, Advanced
Payments or Interim Payment/Voucher for cost type contracts.
● What is the least preferred method of financing. Answer: Advanced
Payments
● What would be reasons for an ACO to suspend or reduce progress
payments? FAR 32.503-6, Clause 52.232-29 Answer: 1. Non-
compliance with material requirement of contract (ex. Approved
Accounting system)
2. Unsatisfactory financial condition
3. Inventory in excess of contract requirements (unreasonable)
4. Failure to make adequate progress
5. Delinquent in paying subs
6. Operating in a loss condition
,● What are Performance Based Payments? Answer: Payments based on
achievement of specific, measurable events or accomplishments that are
defined and valued in contract. These events should be identified as
cumulative or stand alone events, clearly describe the events and how
they will be validated, and the value for each accepted event. • Not used
for smaller contracts
Not used for contracts less than 6 months
● What does it mean when it's said progress payments are self-
liquidating? Answer: The Government recoups contract funds through
the deduction of payment of invoices at the time of completed contract
line items. When invoicing for supplies/services, the debt is paid by
taking a percentage of the invoice. When the contractor submits a
progress payments on the DD1443 form the contractor will not bill for
the amount of there liquidating rate. The total billed amount will be
added and totaled in WIP. Upon delivery of the product, the contractor
submits an invoice for the total amount of the contract or line item and
DFAS will empty the WIP amount recouping those funds and paying and
the amount billed minus the WIP amount for the total amount owed.
● What is needed before approving Progress Payments and PBP
Payments? Answer: The ACO shall ensure the contractor has an
adequate accounting system and contracts that ensure the government is
otherwise protected against loss by additional protective provisions.
Additional provisions may include risk assessment, cost benefit analysis,
first article dollar limitation, surveillance plan. Ensure the Master
Payment Schedule in MOCAS is completed
, ● What are the different types of financing payments and on what type
of contract may they be used? Answer: 1. Advance Payments - May be
used on any type of contract but must be authorized by PCO and is used
sparingly
2. Performance Based Payments - used on fixed price contracts only
3. Progress Payments - May be used on Fixed Price line items; Payments
are made on the basis of either a percentage of completion of work
(FAR32.101,102) or the incurrence of costs
4. Loan Guarantee - Made by Federal Reserve banks, on behalf of
designated guaranteeing agencies, to enable contracts to obtain financing
from private sources
5. Interim Payment on Cost Type Contracts
● What are the ACO's responsibilities for Progress Payments? Answer:
1. Determine if the use of progress payments are pratical
2. Ensure contractor meets FAR 32.104(d) requirements
a. Small business (90%)
i. can't bill for first delivery prior to 4 months
ii. exceeds SAT ($150,000)
iii. Demonstrates an actual financial need
b. Not a small business (80%)
i. Can't bill for first delivery prior to 6 months
ii. Contract price exceeds $2.5M
QUESTIONS AND SOLUTIONS
● Examples of responsibilities of an ACO? Answer: Conduct post
award conferences, negotiate forward pricing rate agreements, determine
allowability of costs, establish final indirect costs and billing rates,
process novation and name change agreements, and perform
administrative closeout procedures.
● What is the difference between an ACO and CA? Answer: The ACO
has a warrant that binds the Government. The ACO's decisions and
documents are binding. The CA prepares documents up to signature but
cannot bind the Government.
● What is the relationship between the prime and subcontractor?
Answer: Privity - If the Government has a contract with the prime
contractor; there is privity of contract between the Government and the
prime. If the prime has a contract with its subcontractors, privity of
contract exists between the prime and its subcontractor. No privity of
contract exists between the Government and the sub (unless there is
another contract with them). If no privity, you cannot negotiate directly
with the sub or direct the sub to take any action.
● Generally speaking how long are funds available before they cancel?
Answer: 5 years
,● Who can authorize the use of Advanced Payments? Answer: PCO
● What is the difference between finance payments and invoice
payments? Answer: Finance payments are payments made to a
contractor prior to acceptance of product/service, while invoice
payments are made based on acceptance of product/service.
● Examples of financing payments Answer: Progress Payments based
on cost or completion of work, Performance Based Payments, Advanced
Payments or Interim Payment/Voucher for cost type contracts.
● What is the least preferred method of financing. Answer: Advanced
Payments
● What would be reasons for an ACO to suspend or reduce progress
payments? FAR 32.503-6, Clause 52.232-29 Answer: 1. Non-
compliance with material requirement of contract (ex. Approved
Accounting system)
2. Unsatisfactory financial condition
3. Inventory in excess of contract requirements (unreasonable)
4. Failure to make adequate progress
5. Delinquent in paying subs
6. Operating in a loss condition
,● What are Performance Based Payments? Answer: Payments based on
achievement of specific, measurable events or accomplishments that are
defined and valued in contract. These events should be identified as
cumulative or stand alone events, clearly describe the events and how
they will be validated, and the value for each accepted event. • Not used
for smaller contracts
Not used for contracts less than 6 months
● What does it mean when it's said progress payments are self-
liquidating? Answer: The Government recoups contract funds through
the deduction of payment of invoices at the time of completed contract
line items. When invoicing for supplies/services, the debt is paid by
taking a percentage of the invoice. When the contractor submits a
progress payments on the DD1443 form the contractor will not bill for
the amount of there liquidating rate. The total billed amount will be
added and totaled in WIP. Upon delivery of the product, the contractor
submits an invoice for the total amount of the contract or line item and
DFAS will empty the WIP amount recouping those funds and paying and
the amount billed minus the WIP amount for the total amount owed.
● What is needed before approving Progress Payments and PBP
Payments? Answer: The ACO shall ensure the contractor has an
adequate accounting system and contracts that ensure the government is
otherwise protected against loss by additional protective provisions.
Additional provisions may include risk assessment, cost benefit analysis,
first article dollar limitation, surveillance plan. Ensure the Master
Payment Schedule in MOCAS is completed
, ● What are the different types of financing payments and on what type
of contract may they be used? Answer: 1. Advance Payments - May be
used on any type of contract but must be authorized by PCO and is used
sparingly
2. Performance Based Payments - used on fixed price contracts only
3. Progress Payments - May be used on Fixed Price line items; Payments
are made on the basis of either a percentage of completion of work
(FAR32.101,102) or the incurrence of costs
4. Loan Guarantee - Made by Federal Reserve banks, on behalf of
designated guaranteeing agencies, to enable contracts to obtain financing
from private sources
5. Interim Payment on Cost Type Contracts
● What are the ACO's responsibilities for Progress Payments? Answer:
1. Determine if the use of progress payments are pratical
2. Ensure contractor meets FAR 32.104(d) requirements
a. Small business (90%)
i. can't bill for first delivery prior to 4 months
ii. exceeds SAT ($150,000)
iii. Demonstrates an actual financial need
b. Not a small business (80%)
i. Can't bill for first delivery prior to 6 months
ii. Contract price exceeds $2.5M
