CLC 056 ANALYZING CONTRACT COSTS
PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ The prenegotiation objective establishes the government's initial negotiation
position and assists the contracting officer in determining a fair and
reasonable price. How does proposal modeling assist the contracting officer
in achieving these objectives? Select all of the correct answers..
Answer: - Validates the contractor's computations- Validates the contractor's
proposal summary with detailed back-up data worksheets-Allows real time
calculation of offers and counteroffers during negotiations-Facilitates update
of prenegotiation position upon receipt of updates from the contractor
-Allows the government to identify differences between the contractor's
proposed amounts and the prenegotiation position due to fact-finding
results, field pricing assistance, independent government estimates and
analysis
◍ Cost realism analysis is used to determine what?.
Answer: If the proposed cost is: (i) realistic for the work to be performed;
(ii) reflects a clear understanding of the requirement; and (iii) is consistent
with the approach outlined in the contractor's proposal.
◍ You are preparing to negotiate a service task for routine maintenance of
Government equipment. A sample of 25 records for similar maintenance
tasks indicates that the average time required to perform similar
maintenance tasks has been six hours and 40 minutes. How can you use
this?.
Answer: Selecting the appropriate contract typeDeveloping a price
negotiation objective for labor costs *Evaluating the bill of
materialsAssigning the risk factors for profit calculations
, ◍ True or False: The
U. S. Treasury Rate is used in calculating Facilities Capital Cost of Money
(FCCOM).
Answer: - True
◍ You are preparing to negotiate a service task for routine maintenance of
Government equipment. A sample of 25 records for similar maintenance
tasks indicates that the average time required to perform similar
maintenance tasks has been six hours and 40 minutes. How can you use this.
Answer: - Developing a price negotiation objective for labor costs
◍ The CAS rule-making process:.
Answer: - The CAS Board operates independently from the FAR Council. -
There may be a lag time between an increase in the CAS threshold and the
TINA threshold.
◍ What gives us the authority to request the submission of certified cost or
pricing data on this modification?.
Answer: TINA and FAR 52.215-21
◍ Depreciation.
Answer: A charge to current operations that distributes the cost of a tangible
capital asset, less estimated residual value, over the estimated useful life of
the asset in a systematic and logical manner.
◍ The BBOMS contract audit from DCAA accepted the FPRA for Labor
Overhead for the Technology and Support Services (TSS) labor overhead
pool.Which of the following items would likely be seen in a detailed labor
overhead expense summary for Technology Services and Support Services
labor overhead pool?.
Answer: Employee fringe benefit costs, such as vacation, health care,
unemployment, and taxes
◍ True or False: Special test equipment that is engineered, designed,
fabricated, or modified to meet specific contract needs and cannot be used
for other contracts can be categorized as "other direct costs"..
PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS GRADED A+
◍ The prenegotiation objective establishes the government's initial negotiation
position and assists the contracting officer in determining a fair and
reasonable price. How does proposal modeling assist the contracting officer
in achieving these objectives? Select all of the correct answers..
Answer: - Validates the contractor's computations- Validates the contractor's
proposal summary with detailed back-up data worksheets-Allows real time
calculation of offers and counteroffers during negotiations-Facilitates update
of prenegotiation position upon receipt of updates from the contractor
-Allows the government to identify differences between the contractor's
proposed amounts and the prenegotiation position due to fact-finding
results, field pricing assistance, independent government estimates and
analysis
◍ Cost realism analysis is used to determine what?.
Answer: If the proposed cost is: (i) realistic for the work to be performed;
(ii) reflects a clear understanding of the requirement; and (iii) is consistent
with the approach outlined in the contractor's proposal.
◍ You are preparing to negotiate a service task for routine maintenance of
Government equipment. A sample of 25 records for similar maintenance
tasks indicates that the average time required to perform similar
maintenance tasks has been six hours and 40 minutes. How can you use
this?.
Answer: Selecting the appropriate contract typeDeveloping a price
negotiation objective for labor costs *Evaluating the bill of
materialsAssigning the risk factors for profit calculations
, ◍ True or False: The
U. S. Treasury Rate is used in calculating Facilities Capital Cost of Money
(FCCOM).
Answer: - True
◍ You are preparing to negotiate a service task for routine maintenance of
Government equipment. A sample of 25 records for similar maintenance
tasks indicates that the average time required to perform similar
maintenance tasks has been six hours and 40 minutes. How can you use this.
Answer: - Developing a price negotiation objective for labor costs
◍ The CAS rule-making process:.
Answer: - The CAS Board operates independently from the FAR Council. -
There may be a lag time between an increase in the CAS threshold and the
TINA threshold.
◍ What gives us the authority to request the submission of certified cost or
pricing data on this modification?.
Answer: TINA and FAR 52.215-21
◍ Depreciation.
Answer: A charge to current operations that distributes the cost of a tangible
capital asset, less estimated residual value, over the estimated useful life of
the asset in a systematic and logical manner.
◍ The BBOMS contract audit from DCAA accepted the FPRA for Labor
Overhead for the Technology and Support Services (TSS) labor overhead
pool.Which of the following items would likely be seen in a detailed labor
overhead expense summary for Technology Services and Support Services
labor overhead pool?.
Answer: Employee fringe benefit costs, such as vacation, health care,
unemployment, and taxes
◍ True or False: Special test equipment that is engineered, designed,
fabricated, or modified to meet specific contract needs and cannot be used
for other contracts can be categorized as "other direct costs"..
