ACO CORB UPDATED TEST PAPER EXAM QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔When should the DCMA HQ Contract Business System Review Panel become
involved and what is their role? Must the ACO follow their advice? - ✔✔a. Contracting
officers shall obtain a review from the HQ CBS review panel prior to notifying the
contractor in writing of a business system disapproval
b. The purpose of the CBS review panel is to ensure significant deficiencies identified in
the CO's initial determination notification and the contractor's response have been fully
evaluated and discussed by the CO and functional specialist or auditor, and CMO
contracts director or director of the CACO/DACO division of the Cost and Pricing
Center. Additionally, the CBS review panel will make certain the consistent application
of business system criteria and policy requirements.
c. No, but if the ACO does not follow the panel's advice, the ACO must document the
reason and provide to the CBS policy advocate.
✔✔What is the process of definitizing a UCA? - ✔✔a. Receive a qualifying proposal
from the contractor
i. Qualifying proposal means: contains sufficient data for DoD to complete meaningful
analyses and audits of data in the proposal and any other data the CO has determined
to be reviewed.
b. Send proposal to pricing
c. Determine allowable profit considering (217.7404-6):
i. Any reduced cost risk to the contractor for costs incurred during contract performance
before negotiation of the final price
ii. The contractor's reduced cost risk for costs incurred during performance of the
remainder of the contract
d. Prepare pre-negotiation object
e. Negotiate
f. Write PNM
g. UCAs must be definitized the earlier of 1)180 days of issuance OR 2) on the date of
which the contract is funded (obligated) 50% of the NTE price.
✔✔You are issuing a UCA with an NTE of $10M. You obligated 40% or $4M at the time
of issuance. The KTR submits a qualified proposal along w/a request for more money‐‐
he wants you to obligate $9.5M of the NTE. Can you obligate $9.5M? Why or why not? -
✔✔a. No you cannot obligate $9.5M, because you can only obligate 75% if you have a
qualifying proposal, so the maximum you can obligate is $7.5M.
b. 217.7404-4 Limitations on obligations.
c. (a) The Government shall not obligate more than 50 percent of the not-to-exceed
price before definitization. However, if a contractor submits a qualifying proposal before
50 percent of the not-to-exceed price has been obligated by the Government, then the
limitation on obligations before definitization may be increased to no more than 75
percent (see 232.102-70 for coverage on provisional delivery payments).
d. (b) In determining the appropriate amount to obligate, the contracting officer shall
assess the contractor's proposal for the undefinitized period and shall obligate funds
, only in an amount consistent with the contractor's requirements for the undefinitized
period.
✔✔The contractor's qualified proposal of a UCA is in the amount of $10.5M. DCAA
audits the proposal and says that $10.3M is reasonable. Is this enough information to
reach a negotiated settlement over the NTE? - ✔✔a. No, you should never negotiate a
settlement over the NTE.
b. Notify the PCO and ask if there is enough money
✔✔What do you do if a contract is in an overrun status?
42.302 (a) (16) - ✔✔Notify the contractor, customer and PCO. Identify the overrun
status; cost overrun or schedule overrun. Identify possible solutions based on the cause
of the problem. Possibly de-scope the contract or add additional funding.
✔✔A contract is 5 months delinquent in scheduling, what do you do if it is the
contractor's fault? What do you do if it is the government's fault? - ✔✔a. Contractor's
Fault
i. Ask the following questions: was a cure notice or show cause notice ever issued?
Was there an excusable delay (flood, fire, acts of God...)? How important is this
deliverable to the Government? How close is the Contractor to delivering? What sort of
consideration is the contractor willing to offer?
ii. If the contractor is close to delivery and government needs items, it may be prudent to
let them deliver.
1. Repercussions will be a negative hit to their on-time delivery metrics and also a
negative review in performance in CPARs.
iii. If none of this applies and Government no longer requires items, I would begin
discussing terminating for default (partial or full) with the PCO.
b. Government's Fault
i. Always make sure it is truly a delay at the fault of the Government
ii. Does the contract specify an equitable adjustment because of the delay or
interruption of the work?
iii. Does the Government Delay of Work clause apply (Fixed price contracts)?
iv. Speak with the program office and verify the cause of the delay. Ask the program
office for the date it will be remedied. Ask contractor about impact on contract for delay.
Is equitable adjustment sought by contractor? If not, extend with bilateral modification
including release of future claims by the contractor. If adjustment is requested, ask for
impact proposal.
v. If program office cannot remedy the delay, contract is not performable and should
consider termination for convenience (partial).
vi. For contracts with a Criticality Designator of "C", 42.302 (a) (64): Negotiate and
execute one-time supplemental agreements providing for the extension of contract
delivery schedules up to 90 days. Notify contracting office. Subsequent extensions on
any individual contract shall be authorized only upon concurrence of the contracting
office.
AND SOLUTIONS GUARANTEE A+
✔✔When should the DCMA HQ Contract Business System Review Panel become
involved and what is their role? Must the ACO follow their advice? - ✔✔a. Contracting
officers shall obtain a review from the HQ CBS review panel prior to notifying the
contractor in writing of a business system disapproval
b. The purpose of the CBS review panel is to ensure significant deficiencies identified in
the CO's initial determination notification and the contractor's response have been fully
evaluated and discussed by the CO and functional specialist or auditor, and CMO
contracts director or director of the CACO/DACO division of the Cost and Pricing
Center. Additionally, the CBS review panel will make certain the consistent application
of business system criteria and policy requirements.
c. No, but if the ACO does not follow the panel's advice, the ACO must document the
reason and provide to the CBS policy advocate.
✔✔What is the process of definitizing a UCA? - ✔✔a. Receive a qualifying proposal
from the contractor
i. Qualifying proposal means: contains sufficient data for DoD to complete meaningful
analyses and audits of data in the proposal and any other data the CO has determined
to be reviewed.
b. Send proposal to pricing
c. Determine allowable profit considering (217.7404-6):
i. Any reduced cost risk to the contractor for costs incurred during contract performance
before negotiation of the final price
ii. The contractor's reduced cost risk for costs incurred during performance of the
remainder of the contract
d. Prepare pre-negotiation object
e. Negotiate
f. Write PNM
g. UCAs must be definitized the earlier of 1)180 days of issuance OR 2) on the date of
which the contract is funded (obligated) 50% of the NTE price.
✔✔You are issuing a UCA with an NTE of $10M. You obligated 40% or $4M at the time
of issuance. The KTR submits a qualified proposal along w/a request for more money‐‐
he wants you to obligate $9.5M of the NTE. Can you obligate $9.5M? Why or why not? -
✔✔a. No you cannot obligate $9.5M, because you can only obligate 75% if you have a
qualifying proposal, so the maximum you can obligate is $7.5M.
b. 217.7404-4 Limitations on obligations.
c. (a) The Government shall not obligate more than 50 percent of the not-to-exceed
price before definitization. However, if a contractor submits a qualifying proposal before
50 percent of the not-to-exceed price has been obligated by the Government, then the
limitation on obligations before definitization may be increased to no more than 75
percent (see 232.102-70 for coverage on provisional delivery payments).
d. (b) In determining the appropriate amount to obligate, the contracting officer shall
assess the contractor's proposal for the undefinitized period and shall obligate funds
, only in an amount consistent with the contractor's requirements for the undefinitized
period.
✔✔The contractor's qualified proposal of a UCA is in the amount of $10.5M. DCAA
audits the proposal and says that $10.3M is reasonable. Is this enough information to
reach a negotiated settlement over the NTE? - ✔✔a. No, you should never negotiate a
settlement over the NTE.
b. Notify the PCO and ask if there is enough money
✔✔What do you do if a contract is in an overrun status?
42.302 (a) (16) - ✔✔Notify the contractor, customer and PCO. Identify the overrun
status; cost overrun or schedule overrun. Identify possible solutions based on the cause
of the problem. Possibly de-scope the contract or add additional funding.
✔✔A contract is 5 months delinquent in scheduling, what do you do if it is the
contractor's fault? What do you do if it is the government's fault? - ✔✔a. Contractor's
Fault
i. Ask the following questions: was a cure notice or show cause notice ever issued?
Was there an excusable delay (flood, fire, acts of God...)? How important is this
deliverable to the Government? How close is the Contractor to delivering? What sort of
consideration is the contractor willing to offer?
ii. If the contractor is close to delivery and government needs items, it may be prudent to
let them deliver.
1. Repercussions will be a negative hit to their on-time delivery metrics and also a
negative review in performance in CPARs.
iii. If none of this applies and Government no longer requires items, I would begin
discussing terminating for default (partial or full) with the PCO.
b. Government's Fault
i. Always make sure it is truly a delay at the fault of the Government
ii. Does the contract specify an equitable adjustment because of the delay or
interruption of the work?
iii. Does the Government Delay of Work clause apply (Fixed price contracts)?
iv. Speak with the program office and verify the cause of the delay. Ask the program
office for the date it will be remedied. Ask contractor about impact on contract for delay.
Is equitable adjustment sought by contractor? If not, extend with bilateral modification
including release of future claims by the contractor. If adjustment is requested, ask for
impact proposal.
v. If program office cannot remedy the delay, contract is not performable and should
consider termination for convenience (partial).
vi. For contracts with a Criticality Designator of "C", 42.302 (a) (64): Negotiate and
execute one-time supplemental agreements providing for the extension of contract
delivery schedules up to 90 days. Notify contracting office. Subsequent extensions on
any individual contract shall be authorized only upon concurrence of the contracting
office.
