ACO CORB UPDATED ACTUAL FINAL PAPER QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔What is the changes clause? - ✔✔a. The changes clause permits the CO to make
unilateral changes, in designated areas, within the general scope of the contract. This is
accomplished by issuing written change orders on an SF30 and the contractor must
continue performance of the contract as changed, except that in cost reimbursement or
incrementally funded contracts, the contractor is not obligated to continue performance
or incur costs beyond the limits established in the Limitation of Cost or Limitation of
Funds clauses. The authority to issue change orders rests with the PCO except when
authority is delegated to the ACO. FAR 43.2
b. Examples of in-scope changes: drawings, designs or specs, method of shipment or
packaging, or place of delivery
✔✔What is consideration for a contract modification? - ✔✔Consideration generally
requires two elements: (1) something of legal value must be given and (2) that thing of
value must be dealt with by the parties as the agreed-upon price or exchange for the
promise - there must be a "bargained-for exchange." It is basically an exchange of value
(not necessarily equal value). Consideration may take the form of a contract price
adjustment or other means commensurate with the change in requirements such as
expedited delivery, product quality improvements, performance improvements,
warranties, and conversion to best practices. The ACO should discuss the potential
changes to the contract with the PCO to determine what would be acceptable.
✔✔If you can do change orders unilaterally, why would you have a change in specs
bilaterally? - ✔✔You want to make spec changes bilaterally to show that the contractor
agrees to the changes and that they agree to any compensation that is being given in
return, if any.
✔✔Explain and tell when to use: 1. Suspension of Work, 2. Stop Work, 3. Government
Delay of Work - ✔✔a. A suspension of work under a construction or architect-engineer
contract may be ordered by the contracting officer for a reasonable period of time. If the
suspension is unreasonable, the contractor may submit a written claim for increases in
the cost of performance, excluding profit.
b. Stop-work orders may be used, when appropriate, in any negotiated fixed-price or
cost-reimbursement supply, research and development, or service contract if work
stoppage may be required for reasons such as advancement in the state-of-the-art,
production or engineering breakthroughs, or realignment of programs.
c. The clause at 52.242-17, Government Delay of Work, provides for the administrative
settlement of contractor claims that arise from delays and interruptions in the contract
work caused by the acts, or failures to act, of the contracting officer. This clause is not
applicable if the contract otherwise specifically provides for an equitable adjustment
because of the delay or interruption; e.g., when the Changes clause is applicable.
, ✔✔Once established, how are billing rates revised? - ✔✔Billing rates may be
prospectively or retroactively revised by mutual agreement of the contracting officer (or
cognizant Federal agency official) or auditor and the contractor at either party's request,
to prevent substantial overpayment or underpayment FAR 42.704
✔✔If an agreement cannot be reached in determining billing rates, what can the ACO
do? - ✔✔The billing rates may be unilaterally determined by the contracting officer (or
cognizant Federal agency official). FAR 42.704
✔✔What is the difference between a FPRA and an FPRR? - ✔✔Forward Pricing Rate
Agreements (FPRAs) are rates agreed-to between the Government and the contractor
for use in pricing proposals. Forward Pricing Rate Recommendations (FPRRs) are
Government recommended rates used to price proposals that are not agreed-to with the
contractor
✔✔What dollar value must a contractor's annual sales exceed to compel the ACO to
create a FPRA/FPRR? - ✔✔$200 Million
✔✔What are time frames for establishing FPRR and/or FPRA when establishment is
required? - ✔✔a. ACO shall complete FPRR within 30 calendar days of the contractor's
adequate Forward Pricing Rate Proposal (FPRP) submission
b. ACO shall strive to complete FPRA within 60 days of the adequate FPRP submission
✔✔How long does the contractor have to submit their indirect cost rate proposals for a
given fiscal year? - ✔✔6 months after the contractor's fiscal year ends.
✔✔Under what conditions, would an ACO be authorized to waive a DCAA audit of
proposed final indirect rates? - ✔✔a. The ACO is not aware of any factors or
circumstances that place a given final indirect rate proposal at risk for containing
expressly unallowable costs. 3.3
b. The ACO receives Memo from DCAA explaining that:
i. The auditor's adequacy review did not disclose any significant audit leads.
ii. The auditor's adequacy review included a mathematical verification and a
determination that the contractor's proposal was certified by its top management
officials that the proposal does not include unallowable costs.
iii. The auditor's overall assessment of risk placed the contractor's incurred cost
proposal in a low-risk sampling pool.
iv. Based on the factors identified in subparagraphs 3.3.2.1. through 3.3.2.3., the
proposal was not selected for audit.
c. DCMA quick closeout class deviation.
✔✔What are the number of months to complete final overhead rate negotiations for a
major and a non-major contractor? - ✔✔a. 27 months for major contractors
b. 36 months for non-major contractor?
AND SOLUTIONS GUARANTEE A+
✔✔What is the changes clause? - ✔✔a. The changes clause permits the CO to make
unilateral changes, in designated areas, within the general scope of the contract. This is
accomplished by issuing written change orders on an SF30 and the contractor must
continue performance of the contract as changed, except that in cost reimbursement or
incrementally funded contracts, the contractor is not obligated to continue performance
or incur costs beyond the limits established in the Limitation of Cost or Limitation of
Funds clauses. The authority to issue change orders rests with the PCO except when
authority is delegated to the ACO. FAR 43.2
b. Examples of in-scope changes: drawings, designs or specs, method of shipment or
packaging, or place of delivery
✔✔What is consideration for a contract modification? - ✔✔Consideration generally
requires two elements: (1) something of legal value must be given and (2) that thing of
value must be dealt with by the parties as the agreed-upon price or exchange for the
promise - there must be a "bargained-for exchange." It is basically an exchange of value
(not necessarily equal value). Consideration may take the form of a contract price
adjustment or other means commensurate with the change in requirements such as
expedited delivery, product quality improvements, performance improvements,
warranties, and conversion to best practices. The ACO should discuss the potential
changes to the contract with the PCO to determine what would be acceptable.
✔✔If you can do change orders unilaterally, why would you have a change in specs
bilaterally? - ✔✔You want to make spec changes bilaterally to show that the contractor
agrees to the changes and that they agree to any compensation that is being given in
return, if any.
✔✔Explain and tell when to use: 1. Suspension of Work, 2. Stop Work, 3. Government
Delay of Work - ✔✔a. A suspension of work under a construction or architect-engineer
contract may be ordered by the contracting officer for a reasonable period of time. If the
suspension is unreasonable, the contractor may submit a written claim for increases in
the cost of performance, excluding profit.
b. Stop-work orders may be used, when appropriate, in any negotiated fixed-price or
cost-reimbursement supply, research and development, or service contract if work
stoppage may be required for reasons such as advancement in the state-of-the-art,
production or engineering breakthroughs, or realignment of programs.
c. The clause at 52.242-17, Government Delay of Work, provides for the administrative
settlement of contractor claims that arise from delays and interruptions in the contract
work caused by the acts, or failures to act, of the contracting officer. This clause is not
applicable if the contract otherwise specifically provides for an equitable adjustment
because of the delay or interruption; e.g., when the Changes clause is applicable.
, ✔✔Once established, how are billing rates revised? - ✔✔Billing rates may be
prospectively or retroactively revised by mutual agreement of the contracting officer (or
cognizant Federal agency official) or auditor and the contractor at either party's request,
to prevent substantial overpayment or underpayment FAR 42.704
✔✔If an agreement cannot be reached in determining billing rates, what can the ACO
do? - ✔✔The billing rates may be unilaterally determined by the contracting officer (or
cognizant Federal agency official). FAR 42.704
✔✔What is the difference between a FPRA and an FPRR? - ✔✔Forward Pricing Rate
Agreements (FPRAs) are rates agreed-to between the Government and the contractor
for use in pricing proposals. Forward Pricing Rate Recommendations (FPRRs) are
Government recommended rates used to price proposals that are not agreed-to with the
contractor
✔✔What dollar value must a contractor's annual sales exceed to compel the ACO to
create a FPRA/FPRR? - ✔✔$200 Million
✔✔What are time frames for establishing FPRR and/or FPRA when establishment is
required? - ✔✔a. ACO shall complete FPRR within 30 calendar days of the contractor's
adequate Forward Pricing Rate Proposal (FPRP) submission
b. ACO shall strive to complete FPRA within 60 days of the adequate FPRP submission
✔✔How long does the contractor have to submit their indirect cost rate proposals for a
given fiscal year? - ✔✔6 months after the contractor's fiscal year ends.
✔✔Under what conditions, would an ACO be authorized to waive a DCAA audit of
proposed final indirect rates? - ✔✔a. The ACO is not aware of any factors or
circumstances that place a given final indirect rate proposal at risk for containing
expressly unallowable costs. 3.3
b. The ACO receives Memo from DCAA explaining that:
i. The auditor's adequacy review did not disclose any significant audit leads.
ii. The auditor's adequacy review included a mathematical verification and a
determination that the contractor's proposal was certified by its top management
officials that the proposal does not include unallowable costs.
iii. The auditor's overall assessment of risk placed the contractor's incurred cost
proposal in a low-risk sampling pool.
iv. Based on the factors identified in subparagraphs 3.3.2.1. through 3.3.2.3., the
proposal was not selected for audit.
c. DCMA quick closeout class deviation.
✔✔What are the number of months to complete final overhead rate negotiations for a
major and a non-major contractor? - ✔✔a. 27 months for major contractors
b. 36 months for non-major contractor?
