CON 290(CON290 Exam 2)CON290/ CON 290 Exam_attempt score 54 out of 60 points Defense Acquisition University

Content User Course CON290_20017-;02/27/2020 08:00 AM-CON 290 Contract Administration and Negotiation Techniques in a Supply Environment Test Exam 2 Started Submitted Status Completed Attempt Score Time Elapsed Results Displayed 54 out of 60 points Submitted Answers, Correct Answers, Incorrectly Answered Questions Question 1 23-2 2 out of 2 points Dave’s Auto Repair recently completed work for the Government overhauling engines and transmissions for a fleet of vehicles. Dave submitted an invoice for completed work. The Government denied the invoice citing an erroneous amount. The Contractor resubmitted the invoice amount and converted the invoice to a claim per FAR 33.206 procedures. After receiving the Contracting Officer’s final decision again denying the invoice amount, the contractor may appeal the CO’s final decision to which of the following venues? Selected Answer: Armed Services Board of Contract Appeals within 90 days Answers: General Accountability Office within one year Armed Services Board of Contract Appeals within 90 days Federal Court of Claims within two years Question 2 2 out of 2 points 18-2 Hillstrand Brothers Manufacturing (HBM) was one of the competitors in the original competition for the production contract. Assume HBM protests on the basis that this change is out of scope. What test would a court likely use to determine whether the change is within the scope of the production contract? Selected Answer: Scope of the Competition Test Answers: Reasonable Change Test Scope of the Changes Test 25-2 Scope of the Competition Test • Question 3 2 out of 2 points You are a contracting officer administering two fixed-price noncommercial contracts for ruggedized hand-held computers. One is with Billican, a large business, and has 32 units remaining to be delivered. The other contract is with Vilco, a small business, for 200 units remaining to be delivered. Each unit is priced at $150. You have just been informed that 30 of the remaining units will no longer be required. According to FAR part 49, which of the following must you consider in relation to termination for convenience? Selected Answer: Consider the fact that Billican is a large company and Vilco is a small company. Answers: 20-4 Consider the fact that Billican is a large company and Vilco is a small company. Consider the prices paid thus far on Billican’s contract. All of the responses are correct. • Question 4 2 out of 2 points You awarded a firm-fixed-price contract of $1.5M to Baker, inc. After issuing a change notification, you were unable to reach an agreement with Baker on the amount of equitable adjustment. After completing the contract, Baker reports its actual cost to complete the contract with the change, plus a reasonable profit, amounted to $2.2M. Thus, Baker proposes settling its claim for equitable adjustment with the difference; $2.2M actual cost less the original contract price of $1.5M for a total amount of $700K. By what method is the contractor proposing to settle this claim for equitable adjustment? Selected Answer: Total Cost Method Answers: Jury Verdict You are not permitted to settle this claim without an approved accounting system. 22-1 Total Cost Method • Question 5 2 out of 2 points Bumford Corporation has submitted a proposal with a proposed manufacturing overhead rate of 215% based on its current forecast of planned expenditures. There is no forward pricing rate agreement (FPRA) in effect. Your regression analysis results in a range between 176% and 210%. According to the REA case and FAR subpart 15.4, which of the following represents a proper action to consider in establishing your pre-negotiation objective for manufacturing overhead? Selected Answer: Consider the credibility of the contractor’s planned expenditures, and any other data, before determining its impact on your pre-negotiation position. Answers: “Split the difference” by selecting a rate halfway between 176% and 215% because that is the most fair and reasonable position. Disregard Bumford’s proposed rate because it is not based on regression analysis. Consider the credibility of the contractor’s planned expenditures, and any other data, before determining its impact on your pre-negotiation position. . • Question 6 2 out of 2 points 22-5 Your pre-award team has developed pre-negotiation estimates for direct and indirect costs associated with the Wide-Spectrum Cytokeratin antibody detector program. Given the following pre-negotiation cost estimate information, what is the total price position? Cost Elements Material $480,0 00 Manufacturing Labor $1,489,4 00 Material Overhead 8% Manufacturing Overhead 125% G&A 12% Profit 9% FCCOM $4,125 Selected Answer: $4,728,071.64 Answers: $4,728,442.89 $5,519,150.04 $4,723,946.64 22-2 • Question 7 2 out of 2 points For the Manufacturing Position (56-M43) in the data table below, do the "model-fit" parameters and quality statistics indicate the derived improvement curve equation is reliable enough to use for our cost analysis? Lo Quanti t ty Total Labor Hours 1 2250 44,,,,500 Selected Answer: Yes, based on the CV and R² values Answers: No, because the “B” value is negative No, based on the CV and R² values Yes, based on the CV and R² values • Question 8 2 out of 2 points 22-2 For the Manufacturing Position (56-M43) in the data table below, what is the calculated slope for the first four production lots? Lo t Quanti ty Total Labor Hours 1 2250 44,,,,500 Selected Answer: 89.51% Answers: -0.1598% 92.13% 98.11% 18-4 • Question 9 2 out of 2 points You recently issued a change order. In accordance with DFARS 243.204-70-3, you are to definitize the change order within 180 days. Your contractor is aware of this dead line and, during negotiation of the equitable adjustment amount, demands you accept their price position, or they will stop working on your change direction and go back to the specification in the basic contract. What is your potential course of action? Selected Answer: This is not a real threat as they are required to continue working as directed. We can unilaterally establish an equitable price, which they can challenge pursuant to the Disputes Act. Answers: This is a real threat and I would accept the contractor’s price to avoid breach of contract and keep them working on this urgent change needed by the troops. Since the 180-day limitation for definitizing UCAs is statutory, I have no choice but to accept the contractor’s price position to complete negotiations in order to comply with public law. This is not a real threat as they are required to continue working as directed. We can unilaterally establish an equitable price, which they can challenge pursuant to the Disputes Act. 18-4 • Question 10 2 out of 2 points You find it necessary to change a specification on your non-commercial contract with Able Incorporated. Since time is of the utmost importance you have properly issued Able a unilateral change notification (change order). Accordingly, what MUST Able Incorporated do immediately in response to your unilateral change notification? Selected Answer: Commence work to comply with the change. Answers: Agree to a total and complete release of claims. Submit a claim for Government breach of contract. None of these responses is correct. 18-3 Question 11 2 out of 2 points You make a change to the production contract. The change is out of scope, but PDI agrees to the change. What authority would allow you to make the change under a bilateral modification? Selected Answer: An approved Justification and Approval (J&A) under FAR Part 6. Answers: A Justification and Approval (J&A) under FAR Part 6, unless you make the change under the authority of the Changes Clause. A written agreement from PDI that they do, in fact, agree to make the change. An approved Justification and Approval (J&A) under FAR Part 6. • Question 12 2 out of 2 points 18-6 When issuing a supplemental agreement to finalize an equitable adjustment to a contract, what key statement is required for inclusion in the modification text? Selected Answer: Contractor’s Statement of Release Answers: 20-6 Contractor’s Statement of Release Contractor’s Statement of Proprietary Information Release Contractor’s Statement of Certified cost or pricing data • Question 13 2 out of 2 points You need to develop a negotiation objective for an equitable adjustment for a change where the estimated cost for the work added is $450K. The contractor, however, was able to stop work on the deleted effort no longer required because of the change. You have estimated the reduction in price to be $300K based on the original negotiations when the basic contract was awarded. You also have a current estimate from your audit/technical evaluation estimating the reduction in price for deleted work to be $250K. What is the correct pre-negotiation objective? Selected Answer: $200 K Answers: $200 K $150 K $250 K 23-1 • Question 14 2 out of 2 points PDI submits a claim subject to the Disputes Act to the Contracting Officer. Before adjudication by the Board of Contract Appeals or Court of Federal Claims, which of the following may be used to resolve the dispute between the Government and PDI? Selected Answer: Mutual (bilateral) agreement between the Government and the Contractor at the Contracting Officer’s Level. Answers: 17-1 Mutual (bilateral) agreement between the Government and the Contractor at the Contracting Officer’s Level. Forward dispute to the GAO for quicker resolution. Nothing may be resolved by the Contracting Officer once a formal claim is filed. • Question 15 2 out of 2 points Upon production contract award, the RFSAC Contracting Officer will conduct a post award orientation. The post award orientation can be in the form of a: Select the most complete answer below. Selected Answer: Conference, letter, or a teleconference. Answers: Letter Teleconference Conference 21-2 • Question 16 2 out of 2 points KAC Production Company is on contract building 4000 specialized shipping containers for the DLA. The DLA Contracting Officer has issued a modification to reduce the quantity of containers to 3000. Given the lot cost data below, what is the Average Unit Cost (AUC) per unit for the original requirement and what is the AUC for the modified requirement? Lo t Quanti ty Total Hours Selected Answer: Original AUC is 1.72, modified AUC is 1.81 Answers: Original AUC is 1.81, modified AUC is 1.72 Original AUC is 1.31, modified AUC is 1.33 20-7 Original AUC is 1.72, modified AUC is 1.81 • Question 17 2 out of 2 points You find it necessary to change a specification on your non-commercial contract with Able Incorporated. The original contract was awarded using competitive procedures where the contracting officer determined that adequate price competition was present. The estimated cost of the added work amounts to $1,550,000 and the estimated cost of the deleted work is $550,000. Will you require the contractor to supply and certify current, complete and accurate cost or pricing data pursuant to the Truth In Negotiations Act (TINA)? Selected Answer: Yes – cost or pricing data is required for modifications exceeding the TINA threshold. Answers: No – cost or pricing data is not required for modifications below the TINA threshold. No – because both the contract is exempt from TINA because of adequate price competition, and cost or pricing data is not required for modifications below the TINA threshold. Yes – cost or pricing data is required for modifications exceeding the TINA threshold. • Question 18 2 out of 2 points 25-3 You have just terminated your first fixed-price noncommercial supplies contract for convenience and are now preparing to negotiate a termination settlement. When it comes to negotiating profit, which of the following is NOT a factor to properly consider according to FAR part 49? Selected Answer: You should properly consider all of the above factors Answers: Contractor efficiency Cooperation with the Government and other contractors in supplying technical assistance The profit the contractor would have made had the contract been completed 26-2 • Question 19 2 out of 2 points You have just determined that your CPIF mini-satellite contract is physically complete. Which function is not required to be completed in order to close out the contract file? Selected Answer: Contractor’s final invoice is paid and funds dispersed. Answers: Price revision is completed. 18-7 Contractor’s final invoice is paid and funds dispersed. Contract audit is completed. • Question 20 2 out of 2 points Alpha AFB awarded a firm fixed-price construction contract to renovate base housing units. The contract specified front doors with solid wood bottoms and glass pane top halves. Given recent security concerns, the Air Force inspector directed the contractor to install 100% solid wood front doors. The contractor complied and then submitted a claim for an equitable adjustment to cover its added costs. The most important factor in determining whether this equitable adjustment will be approved is: Selected Answer: Whether it is determined that the Air Force inspector had implied authority. Answers: Whether it is determined that the Air Force inspector had implied authority. What the industry standard is for the construction of new walls. Whether the order from the Air Force inspector made commercial sense. • Question 21 0 out of 2 points 21-3 Geyer International Inc. has submitted a Request for Equitable Adjustment as a result of a Government directed change order reducing the quantity of E170 Immunoassay Modules currently on contract. There were 3000 units on the original contract and the modification reduced the quantity by 1000 units. In their first three production lots before the change, the company projected an Average Unit Cost (AUC) of 3.72 hours for the original effort. As a result of the change, the company projects an AUC of 4.18 hours to produce the reduced number of E170 modules. The only labor category impacted by this change is the assembly worker position. The wage for this contract is $38/hour, G&A rate is 12%, Overhead rate for assembly is 150%, and the profit rate is 10%. What is the Government negotiation position based on this information? Selected Answer: Increased contract price of $34,960 Answers: 24-2 Increased contract price of $107,677 Increased contract price of $34,960 Decreased contract price of ($107,677) • Question 22 2 out of 2 points Jerome, a contracting officer, has discovered evidence of defective pricing data related to a recent award to Grunham Corporation. Jerome believes the Government has sufficient evidence to prove the subject data is covered within the definition of certified cost or pricing data and that it was the type of data prudent buyers and sellers would reasonably expect to significantly affect price negotiation. What else must the Government prove to successfully prove defective pricing? Selected Answer: All of the responses are correct. Answers: The data was not accurate, complete or current. Government reliance increased the negotiated price. The data existed & was reasonably available before price agreement. • Question 23 2 out of 2 points 24-4 Jerome, a contracting officer, has discovered evidence of defective pricing related to a recent award to Blake Company. If successfully proven, what action may Jerome take? Selected Answer: Jerome may reduce the contract price by the amount of defective pricing, unless Blake proves the price was not affected by the defective data or that a different amount should be used. Answers: Jerome may pursue an action for fraud against Blake since fraud is always present in a defective pricing case. Under the natural and probable consequence rule, Jerome may reduce the contract price by the amount of defective pricing plus any additional amount that he, as contracting officer, reasonably believes is the natural and probable consequence of the contractor’s egregious actions. Jerome may reduce the contract price by the amount of defective pricing, unless Blake proves the price was not affected by the defective data or that a different amount should be used. • Question 24 0 out of 2 points 20-3 Bumford Corporation has submitted an REA proposal for $1.4M. Which one of the following is NOT a requirement of FAR Table 15-2? Selected Answer: Breakdown of material costs showing the price analysis and degree of price competition conducted for subcontracts Answers: Breakdown of material costs showing the price analysis and degree of price competition conducted for subcontracts Identification of whether or not the contractor grants access to documents and data used as the basis for the proposal Proposed cost, profit, and total price • Question 25 2 out of 2 points 20-2 In response to a Government directed change order, JJ Abrams, Inc. has submitted a $2,250,000 REA for the Isolinear Energy Projectile (IEP) contract. None of the exceptions to obtaining certified cost or pricing data apply. Which one of the following is an important first step in definitizing an equitable adjustment to the contract? Selected Answer: You must ensure certified cost or pricing data has been properly submitted. Answers: Request "data other than certified cost or pricing data" from the contractor to support each element of their proposal. Obtain business clearance approval whenever certified cost or pricing data is required. You must ensure certified cost or pricing data has been properly submitted. • Question 26 2 out of 2 points 20-1 A modification to the Firm Fixed Price (FFP) JMAS contract is required due to a change in the required top speed of the vehicle. If James, the contracting officer, uses the preferred method, upon what will he base his position when evaluating the potential change in contract price? Selected Answer: James will base his position on the difference between the reasonable cost of performing the contract without the change and the reasonable cost of performing with the change. Answers: James will evaluate the profit or loss position of the contractor before determining whether or not to proceed with the change. James will base his position on the difference between the reasonable cost of performing the contract without the change and the reasonable cost of performing with the change. James will base his position on the originally proposed cost of the performing the contract without the change and the estimated cost of performing the work with the change. • Question 27 2 out of 2 points 18-1 You determine a change to a contract you're administering is in the Government’s best interest. What two-part analysis should be used to determine whether this change is authorized by the contract’s Changes Clause? Selected Answer: The contemplated change must be: (1) within the general scope of the contract and (2) the type of change allowed by the applicable Changes clause Answers: The contemplated change must be: (1) allowed by the Changes clause and (2) within the authority of the Contacting Officer’s warrant. The contemplated change must be: (1) reasonably anticipated by the contracting parties and (2) all charges must be reasonable, allowable, and allocable. The contemplated change must be: (1) within the scope of the modification and (2) the type of change typical for the applicable Changes clause. • Question 28 0 out of 2 points 21-1 Republic Engineering Inc. has been awarded a non-commercial Firm-Fixed-Price contract to build gear mounting brackets for the M1A2D main battle tank. After beginning production, they decided to change their manufacturing process for the brackets in an effort to reduce production time. As a result, they developed a more automated system than they had originally proposed. As they implemented this change, they experienced higher than estimated labor costs for lots 5 and 6. Is Republic entitled to consideration for the lost efficiency they experienced in lots 5 and 6? Selected Answer: Yes, because the change in production process resulted in higher per unit costs for the brackets Answers: No, because lost efficiency is not permitted on Firm-Fixed-Price contracts No, because the higher labor costs were not a result of government direction or excusable delay Yes, because the change in production process resulted in higher per unit costs for the brackets • Question 29 2 out of 2 points 16-2 Upon award of a production contract, the Procuring Contracting Officer (PCO) drafted a delegation of contracting administration to Defense Contract Management Agency to delegate some contract administration areas of responsibility. Which of the following is a responsibility that can be retained at the PCO level? Selected Answer: Performing production surveillance and status reporting Answers: Negotiation of forward pricing rate agreements for material and manufacturing overhead Performing production surveillance and status reporting Reviewing the contractor’s accounting system to determine its adequacy to perform an FPIF contract • Question 30 2 out of 2 points 18-5 The Government ordered 200 image intensifier (II) tubes as replacement subcomponents for its night vision equipment from Clarity ‘n Combat (CNC) Inc. The II tubes are commercial items. The Government would now like CNC to make a minor modification to make the tubes longer lasting. Based on these conditions, identify the statement below that is correct. Selected Answer: The Government does not have a unilateral right to change the contract. Answers: The Government must issue a change order to execute the contract change. The Government does not have a unilateral right to change the contract. The Government has a unilateral right to change the contract.