ACO CORB Study Questions With Correct
Answers
What ||are ||the ||responsibilities ||of ||an ||ACO? ||- ||CORRECT ||ANSWER✔✔-The ||ACO ||should ||
ensure ||that ||the ||best ||interests ||of ||the ||Government ||are ||protected ||by ||ensuring ||the ||terms ||
and ||conditions ||of ||the ||contracts ||are ||appropriate. ||all ||parties ||execute ||the ||contract ||
according ||to ||the ||terms ||and ||condition
Examples ||of ||responsibilities ||of ||an ||ACO? ||- ||CORRECT ||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? ||- ||CORRECT ||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? ||- ||CORRECT ||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? ||- ||CORRECT ||
ANSWER✔✔-5 ||years
Who ||can ||authorize ||the ||use ||of ||Advanced ||Payments? ||- ||CORRECT ||ANSWER✔✔-PCO
,What ||is ||the ||difference ||between ||finance ||payments ||and ||invoice ||payments? ||- ||CORRECT ||
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 ||- ||CORRECT ||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. ||- ||CORRECT ||ANSWER✔✔-Advanced ||
Payments
What ||would ||be ||reasons ||for ||an ||ACO ||to ||suspend ||or ||reduce ||progress ||payments? ||FAR ||
32.503-6, ||Clause ||52.232-29 ||- ||CORRECT ||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? ||- ||CORRECT ||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? ||- ||CORRECT ||
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? ||- ||CORRECT ||
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? ||- ||CORRECT ||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? ||- ||CORRECT ||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
iii. ||Demonstrates ||an ||actual ||financial ||need
3. ||Ensure ||MOCAS ||Prog ||Pay ||Master ||is ||updated ||to ||reflect ||rates, ||distro, ||etc
4. ||Ensure ||progress ||payment ||requests ||(PPRs) ||are ||processed ||promptly ||
5. ||Validate ||and ||approve/disapprove ||all ||PPRs
6. ||Ensure ||Progress ||payments ||are ||limited ||to ||interim ||financing ||of ||non-commercial ||FFP ||
Contracts, ||orders ||or ||line ||items
PBP ||Steps ||- ||CORRECT ||ANSWER✔✔-1. ||Identify ||PBP ||events ||(contractor ||proposed)
2. ||Establish ||completion ||criteria
3. ||Obtain/evaluate ||contractors ||expenditure ||profile
4. ||Establish ||event ||values
5. ||Determine ||the ||type ||of ||event: ||severable ||or ||cumulative
6. ||Incorporate ||PBP ||Arrangements ||into ||table/special ||provision
Criteria ||that ||should ||not ||be ||used ||for ||PBP's: ||- ||CORRECT ||ANSWER✔✔-• ||Signing ||of ||a ||
contract ||or ||contract ||modification
• ||Exercise ||of ||contract ||options
• ||The ||passage ||of ||time
• ||Attendance ||at ||meetings, ||conferences, ||seminars
• ||The ||expenditures ||of ||funds
Answers
What ||are ||the ||responsibilities ||of ||an ||ACO? ||- ||CORRECT ||ANSWER✔✔-The ||ACO ||should ||
ensure ||that ||the ||best ||interests ||of ||the ||Government ||are ||protected ||by ||ensuring ||the ||terms ||
and ||conditions ||of ||the ||contracts ||are ||appropriate. ||all ||parties ||execute ||the ||contract ||
according ||to ||the ||terms ||and ||condition
Examples ||of ||responsibilities ||of ||an ||ACO? ||- ||CORRECT ||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? ||- ||CORRECT ||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? ||- ||CORRECT ||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? ||- ||CORRECT ||
ANSWER✔✔-5 ||years
Who ||can ||authorize ||the ||use ||of ||Advanced ||Payments? ||- ||CORRECT ||ANSWER✔✔-PCO
,What ||is ||the ||difference ||between ||finance ||payments ||and ||invoice ||payments? ||- ||CORRECT ||
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 ||- ||CORRECT ||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. ||- ||CORRECT ||ANSWER✔✔-Advanced ||
Payments
What ||would ||be ||reasons ||for ||an ||ACO ||to ||suspend ||or ||reduce ||progress ||payments? ||FAR ||
32.503-6, ||Clause ||52.232-29 ||- ||CORRECT ||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? ||- ||CORRECT ||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? ||- ||CORRECT ||
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? ||- ||CORRECT ||
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? ||- ||CORRECT ||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? ||- ||CORRECT ||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
iii. ||Demonstrates ||an ||actual ||financial ||need
3. ||Ensure ||MOCAS ||Prog ||Pay ||Master ||is ||updated ||to ||reflect ||rates, ||distro, ||etc
4. ||Ensure ||progress ||payment ||requests ||(PPRs) ||are ||processed ||promptly ||
5. ||Validate ||and ||approve/disapprove ||all ||PPRs
6. ||Ensure ||Progress ||payments ||are ||limited ||to ||interim ||financing ||of ||non-commercial ||FFP ||
Contracts, ||orders ||or ||line ||items
PBP ||Steps ||- ||CORRECT ||ANSWER✔✔-1. ||Identify ||PBP ||events ||(contractor ||proposed)
2. ||Establish ||completion ||criteria
3. ||Obtain/evaluate ||contractors ||expenditure ||profile
4. ||Establish ||event ||values
5. ||Determine ||the ||type ||of ||event: ||severable ||or ||cumulative
6. ||Incorporate ||PBP ||Arrangements ||into ||table/special ||provision
Criteria ||that ||should ||not ||be ||used ||for ||PBP's: ||- ||CORRECT ||ANSWER✔✔-• ||Signing ||of ||a ||
contract ||or ||contract ||modification
• ||Exercise ||of ||contract ||options
• ||The ||passage ||of ||time
• ||Attendance ||at ||meetings, ||conferences, ||seminars
• ||The ||expenditures ||of ||funds
