CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
CLC 058 - Introduction to Contract Pricing
Comprehensive Examination - 100 Verified Questions
Latest Update | 100% Correct | Grade A+ Preparation
Exam Code CLC 058
Course Title Introduction to Contract Pricing
Regulatory Basis FAR Part 15.4 (Contract Pricing), DFARS 215.4, TINA (10 U.S.C. 2306a, 41 U.S.C. 3502)
Question Count 100 multiple-choice questions (4 options, one correct)
Domain Coverage 10 domains - cost or pricing data, TINA, FCCoM, FPRAs, fair & reasonable price, G&A, direct/indirec
Cognitive Mix 30% recall | 50% application | 20% analysis
Question Style 70% scenario-based | 20% direct recall | 10% analysis
TINA Threshold $2,000,000 (effective 1 July 2018 per FAR 15.403-4)
Answer Format Correct answer marked [CORRECT]; rationale with FAR citations
Exam Domain Weighting Blueprint
Domain Topic Area Questions Count
1 Cost or Pricing Data and Certified Cost or Pricing Data Q1 - Q20 20
2 Data Other Than Certified Cost or Pricing Data Q21 - Q30 10
3 Direct Costs, Indirect Costs, and Cost Allocation Q31 - Q40 10
4 Facilities Capital Cost of Money (FCCoM) Q41 - Q45 5
5 Fair and Reasonable Price Determination Q46 - Q55 10
6 Forward Pricing Rate Agreements (FPRAs) Q56 - Q60 5
7 General and Administrative Expenses Q61 - Q70 10
8 Price and Pricing Processes Q71 - Q80 10
9 Truth in Negotiations Act (TINA) and Exceptions Q81 - Q90 10
10 Integrated Scenario-Based Questions and Critical Thinking Q91 - Q100 10
Instructions: Select the single best answer for each question. Rationales cite FAR Part 15.4, DFARS 215.4, and TINA statutory
authority. Verify current thresholds at acquisition.gov before exam administration.
DOMAIN 1: Cost or Pricing Data and Certified Cost or Pricing Data (Q1 - Q20)
Department of Defense | FAR 15.4 Contract Pricing Reference
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,CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
Q1: A contractor submits its proposal for a negotiated procurement of $3.2 million. The contracting officer
requests cost or pricing data. Under FAR 15.401, which of the following best describes 'cost or pricing
data'?
A. Factual, judgmental estimates of future costs that the contractor believes may affect negotiations.
B. All facts that, as of the date of price agreement, prudent buyers and sellers would reasonably expect to
affect price negotiations significantly; factual, verifiable, not judgmental. [CORRECT]
C. Only the certified summary of indirect rates and labor hours that appears on the certification page.
D. Only the data necessary to determine cost realism for offerors competing under adequate price competition.
Correct Answer: B
Rationale: FAR 15.401 defines cost or pricing data as all facts that, as of the date of price agreement (or an earlier
agreed-upon date), prudent buyers and sellers would reasonably expect to affect price negotiations significantly. The data
are factual, not judgmental, and verifiable, and include data forming the basis for estimated future costs and determinations
of costs already incurred. Option A is wrong because judgmental estimates (e.g., management forecasts) are not, by
themselves, cost or pricing data. Option C confuses the certification form with the underlying data, while Option D describes
data other than certified cost or pricing data used for realism.
Q2: Under FAR 15.403-4, certified cost or pricing data are required for negotiated procurements above
the TINA threshold unless an exception applies. What distinguishes 'certified cost or pricing data' from
ordinary 'cost or pricing data'?
A. Certified data are data prepared by a certified public accountant (CPA) and audited by DCAA.
B. Certified data include only direct costs, while ordinary cost or pricing data include both direct and indirect
costs.
C. Certified cost or pricing data are cost or pricing data that were required to be submitted and have been
certified, or are required to be certified, in accordance with FAR 15.406-2. [CORRECT]
D. Certified data apply only to contracts awarded under sealed bidding procedures.
Correct Answer: C
Rationale: Per FAR 15.401, certified cost or pricing data means cost or pricing data that were required to be submitted and
have been certified, or are required to be certified, in accordance with FAR 15.406-2. The certification, executed by an
officer authorized to bind the contractor, states that to the best of that person's knowledge and belief the data are accurate,
complete, and current as of a date certain before award. Option A incorrectly ties certification to CPA audit; Option B
wrongly limits the data to direct costs; Option D misapplies the concept to sealed bidding, where TINA does not apply.
Q3: A contractor and the Government agree on price on 15 March 2026. The parties had agreed that the
certification date would be 10 days before price agreement. What is the 'as of' date for the certified cost or
pricing data?
A. The date of contract award.
B. The date of contract modification or option exercise.
C. 5 March 2026 - the date agreed upon between the parties that is before price agreement. [CORRECT]
D. The date the contractor submitted its initial proposal.
Correct Answer: C
Rationale: FAR 15.401 defines the date of certification as the date of price agreement or, if agreed to by the parties, an
earlier date before price agreement. Because the parties agreed to a date 10 days before the 15 March 2026 price agreement,
the certification date - the 'as of' date for accuracy, completeness, and currency - is 5 March 2026. Option A is incorrect
because award can post-date price agreement; Option B incorrectly focuses on modifications; Option D would capture stale
proposal data rather than data current at the negotiated price.
Department of Defense | FAR 15.4 Contract Pricing Reference
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,CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
Q4: Which of the following items is NOT, by itself, considered cost or pricing data under FAR 15.401?
A. A vendor quote for titanium that the contractor relied upon in building its proposed material cost.
B. Actual labor hours incurred on a similar prior contract used as the basis for the proposed labor hours.
C. A management forecast of overhead rates reflecting the executive team's judgment about future
efficiencies. [CORRECT]
D. Subcontractor cost estimates submitted to the prime contractor and used in the prime's proposal.
Correct Answer: C
Rationale: Cost or pricing data must be factual, verifiable, and not judgmental. A vendor quote, actual labor hours on a
prior contract, and subcontractor cost estimates used in pricing are all factual, verifiable inputs that prudent buyers and
sellers would expect to affect price negotiations. A management forecast (Option C) embodies judgment rather than
verifiable fact; it is judgmental information rather than cost or pricing data, although it may be required as data other than
certified cost or pricing data under FAR 15.402.
Q5: A contracting officer is negotiating a $4 million sole-source contract. The contractor submitted cost or
pricing data on 1 February 2026 but did not certify it. Price agreement was reached on 20 February 2026,
with award on 1 March 2026. When must the contractor execute the certification?
A. At the time of initial proposal submission (1 February 2026 or earlier).
B. At the time of price agreement or an earlier date agreed upon between the parties, but in no event later
than the date of contract award. [CORRECT]
C. Within 30 days after contract award.
D. Certification is optional whenever the data were submitted in good faith.
Correct Answer: B
Rationale: FAR 15.406-2 requires that the certificate be executed at the time of agreement on price, or an earlier date agreed
upon between the parties, but in no event later than the date of contract award. Submission of the underlying data on 1
February 2026 does not satisfy the certification requirement; the certificate is the contractor's affirmation that the previously
submitted data remain accurate, complete, and current as of the agreed-upon date. Option A misplaces the certification at
proposal submission; Option C imposes a non-existent post-award grace period; Option D contradicts the statutory mandate
of TINA.
Q6: Which of the following is the MOST accurate statement regarding the relationship between cost or
pricing data and certified cost or pricing data?
A. They are identical concepts used interchangeably throughout FAR Part 15.
B. Cost or pricing data become 'certified cost or pricing data' only when certification is required and
executed in accordance with FAR 15.406-2. [CORRECT]
C. Cost or pricing data must always be certified regardless of contract value or competition.
D. Certified cost or pricing data are required only for commercial product acquisitions.
Correct Answer: B
Rationale: Under FAR 15.401, certified cost or pricing data are a subset of cost or pricing data - specifically, data that were
required to be submitted and have been certified (or are required to be certified) under FAR 15.406-2. The two terms are not
interchangeable: cost or pricing data may exist and be exchanged without certification (for example, as data other than
certified cost or pricing data under FAR 15.402). Option A is wrong because the terms have distinct legal consequences;
Option C ignores TINA exceptions and the $2 million threshold; Option D misapplies the rule because commercial item
acquisitions are generally exempt from certified cost or pricing data.
Department of Defense | FAR 15.4 Contract Pricing Reference
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, CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
Q7: A contractor discovers, after award but before payment, that it inadvertently omitted a $75,000
subcontractor quote from its certified cost or pricing data. What is the proper corrective action under FAR
15.406-3?
A. No action is required because the omission was inadvertent and below 10% of the total contract price.
B. The contractor must immediately notify the contracting officer and correct the certification; the
Government may pursue price adjustment and potential defective pricing remedies. [CORRECT]
C. The contractor should wait for DCAA to identify the omission during a post-award audit.
D. The contractor may correct the omission only if the contracting officer consents in writing.
Correct Answer: B
Rationale: FAR 15.406-3 imposes an ongoing duty to disclose defective cost or pricing data. When a contractor discovers an
omission or error after award, it must promptly notify the contracting officer and submit a corrected certificate. The
Government may then seek a price adjustment under the contract's price reduction clauses and TINA remedies (10 U.S.C.
2306a / 41 U.S.C. 3502). Option A is wrong because there is no percentage-based materiality floor; Option C wrongly delays
disclosure until audit; Option D incorrectly conditions disclosure on Government consent when disclosure is mandatory.
Q8: An offeror submits a proposal for a $5 million R&D; contract. After price agreement but before
award, the offeror receives an updated vendor quote that lowers material cost by 8%. Under FAR
15.406-1, what must the offeror do?
A. Nothing; the price has already been agreed upon and the data freeze attaches at proposal submission.
B. Submit the updated quote to the contracting officer and update the certified cost or pricing data,
because data must be accurate, complete, and current as of the date of price agreement or an earlier
agreed-upon date. [CORRECT]
C. Withhold the new quote because it would lengthen negotiations.
D. Submit the quote only if requested by DCAA during post-award audit.
Correct Answer: B
Rationale: FAR 15.406-1 requires that cost or pricing data be accurate, complete, and current as of the date of price
agreement or an earlier date agreed upon between the parties. A material updated quote received before price agreement is,
by definition, cost or pricing data that prudent buyers and sellers would expect to affect negotiations significantly, so the
contractor must disclose it and, if required, update the certification. Option A incorrectly freezes the data at proposal
submission; Option C misstates the disclosure obligation; Option D confuses the certification duty with audit-driven requests.
Q9: Which of the following would be considered 'factual, verifiable' cost or pricing data rather than
'judgmental information' under FAR 15.401?
A. The program manager's personal belief that the team will achieve 95% learning curve efficiency.
B. An executive's qualitative forecast that overhead will decline due to anticipated process improvements.
C. A signed vendor quote for a critical subsystem used in building the proposal's material cost estimate.
[CORRECT]
D. A marketing department projection of future commercial sales volume.
Correct Answer: C
Rationale: FAR 15.401 emphasizes that cost or pricing data are factual, not judgmental, and verifiable. A signed vendor
quote is an objective, verifiable fact that prudent buyers and sellers would reasonably expect to affect price negotiations
significantly. The program manager's belief (Option A) and the executive's qualitative forecast (Option B) are judgmental;
the marketing projection (Option D) is forward-looking judgmental information that may be relevant to data other than
certified cost or pricing data but is not, by itself, cost or pricing data.
Department of Defense | FAR 15.4 Contract Pricing Reference
Grade A+ Verified Answers | 100% Correct Page 4
CLC 058 - Introduction to Contract Pricing
Comprehensive Examination - 100 Verified Questions
Latest Update | 100% Correct | Grade A+ Preparation
Exam Code CLC 058
Course Title Introduction to Contract Pricing
Regulatory Basis FAR Part 15.4 (Contract Pricing), DFARS 215.4, TINA (10 U.S.C. 2306a, 41 U.S.C. 3502)
Question Count 100 multiple-choice questions (4 options, one correct)
Domain Coverage 10 domains - cost or pricing data, TINA, FCCoM, FPRAs, fair & reasonable price, G&A, direct/indirec
Cognitive Mix 30% recall | 50% application | 20% analysis
Question Style 70% scenario-based | 20% direct recall | 10% analysis
TINA Threshold $2,000,000 (effective 1 July 2018 per FAR 15.403-4)
Answer Format Correct answer marked [CORRECT]; rationale with FAR citations
Exam Domain Weighting Blueprint
Domain Topic Area Questions Count
1 Cost or Pricing Data and Certified Cost or Pricing Data Q1 - Q20 20
2 Data Other Than Certified Cost or Pricing Data Q21 - Q30 10
3 Direct Costs, Indirect Costs, and Cost Allocation Q31 - Q40 10
4 Facilities Capital Cost of Money (FCCoM) Q41 - Q45 5
5 Fair and Reasonable Price Determination Q46 - Q55 10
6 Forward Pricing Rate Agreements (FPRAs) Q56 - Q60 5
7 General and Administrative Expenses Q61 - Q70 10
8 Price and Pricing Processes Q71 - Q80 10
9 Truth in Negotiations Act (TINA) and Exceptions Q81 - Q90 10
10 Integrated Scenario-Based Questions and Critical Thinking Q91 - Q100 10
Instructions: Select the single best answer for each question. Rationales cite FAR Part 15.4, DFARS 215.4, and TINA statutory
authority. Verify current thresholds at acquisition.gov before exam administration.
DOMAIN 1: Cost or Pricing Data and Certified Cost or Pricing Data (Q1 - Q20)
Department of Defense | FAR 15.4 Contract Pricing Reference
Grade A+ Verified Answers | 100% Correct Page 1
,CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
Q1: A contractor submits its proposal for a negotiated procurement of $3.2 million. The contracting officer
requests cost or pricing data. Under FAR 15.401, which of the following best describes 'cost or pricing
data'?
A. Factual, judgmental estimates of future costs that the contractor believes may affect negotiations.
B. All facts that, as of the date of price agreement, prudent buyers and sellers would reasonably expect to
affect price negotiations significantly; factual, verifiable, not judgmental. [CORRECT]
C. Only the certified summary of indirect rates and labor hours that appears on the certification page.
D. Only the data necessary to determine cost realism for offerors competing under adequate price competition.
Correct Answer: B
Rationale: FAR 15.401 defines cost or pricing data as all facts that, as of the date of price agreement (or an earlier
agreed-upon date), prudent buyers and sellers would reasonably expect to affect price negotiations significantly. The data
are factual, not judgmental, and verifiable, and include data forming the basis for estimated future costs and determinations
of costs already incurred. Option A is wrong because judgmental estimates (e.g., management forecasts) are not, by
themselves, cost or pricing data. Option C confuses the certification form with the underlying data, while Option D describes
data other than certified cost or pricing data used for realism.
Q2: Under FAR 15.403-4, certified cost or pricing data are required for negotiated procurements above
the TINA threshold unless an exception applies. What distinguishes 'certified cost or pricing data' from
ordinary 'cost or pricing data'?
A. Certified data are data prepared by a certified public accountant (CPA) and audited by DCAA.
B. Certified data include only direct costs, while ordinary cost or pricing data include both direct and indirect
costs.
C. Certified cost or pricing data are cost or pricing data that were required to be submitted and have been
certified, or are required to be certified, in accordance with FAR 15.406-2. [CORRECT]
D. Certified data apply only to contracts awarded under sealed bidding procedures.
Correct Answer: C
Rationale: Per FAR 15.401, certified cost or pricing data means cost or pricing data that were required to be submitted and
have been certified, or are required to be certified, in accordance with FAR 15.406-2. The certification, executed by an
officer authorized to bind the contractor, states that to the best of that person's knowledge and belief the data are accurate,
complete, and current as of a date certain before award. Option A incorrectly ties certification to CPA audit; Option B
wrongly limits the data to direct costs; Option D misapplies the concept to sealed bidding, where TINA does not apply.
Q3: A contractor and the Government agree on price on 15 March 2026. The parties had agreed that the
certification date would be 10 days before price agreement. What is the 'as of' date for the certified cost or
pricing data?
A. The date of contract award.
B. The date of contract modification or option exercise.
C. 5 March 2026 - the date agreed upon between the parties that is before price agreement. [CORRECT]
D. The date the contractor submitted its initial proposal.
Correct Answer: C
Rationale: FAR 15.401 defines the date of certification as the date of price agreement or, if agreed to by the parties, an
earlier date before price agreement. Because the parties agreed to a date 10 days before the 15 March 2026 price agreement,
the certification date - the 'as of' date for accuracy, completeness, and currency - is 5 March 2026. Option A is incorrect
because award can post-date price agreement; Option B incorrectly focuses on modifications; Option D would capture stale
proposal data rather than data current at the negotiated price.
Department of Defense | FAR 15.4 Contract Pricing Reference
Grade A+ Verified Answers | 100% Correct Page 2
,CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
Q4: Which of the following items is NOT, by itself, considered cost or pricing data under FAR 15.401?
A. A vendor quote for titanium that the contractor relied upon in building its proposed material cost.
B. Actual labor hours incurred on a similar prior contract used as the basis for the proposed labor hours.
C. A management forecast of overhead rates reflecting the executive team's judgment about future
efficiencies. [CORRECT]
D. Subcontractor cost estimates submitted to the prime contractor and used in the prime's proposal.
Correct Answer: C
Rationale: Cost or pricing data must be factual, verifiable, and not judgmental. A vendor quote, actual labor hours on a
prior contract, and subcontractor cost estimates used in pricing are all factual, verifiable inputs that prudent buyers and
sellers would expect to affect price negotiations. A management forecast (Option C) embodies judgment rather than
verifiable fact; it is judgmental information rather than cost or pricing data, although it may be required as data other than
certified cost or pricing data under FAR 15.402.
Q5: A contracting officer is negotiating a $4 million sole-source contract. The contractor submitted cost or
pricing data on 1 February 2026 but did not certify it. Price agreement was reached on 20 February 2026,
with award on 1 March 2026. When must the contractor execute the certification?
A. At the time of initial proposal submission (1 February 2026 or earlier).
B. At the time of price agreement or an earlier date agreed upon between the parties, but in no event later
than the date of contract award. [CORRECT]
C. Within 30 days after contract award.
D. Certification is optional whenever the data were submitted in good faith.
Correct Answer: B
Rationale: FAR 15.406-2 requires that the certificate be executed at the time of agreement on price, or an earlier date agreed
upon between the parties, but in no event later than the date of contract award. Submission of the underlying data on 1
February 2026 does not satisfy the certification requirement; the certificate is the contractor's affirmation that the previously
submitted data remain accurate, complete, and current as of the agreed-upon date. Option A misplaces the certification at
proposal submission; Option C imposes a non-existent post-award grace period; Option D contradicts the statutory mandate
of TINA.
Q6: Which of the following is the MOST accurate statement regarding the relationship between cost or
pricing data and certified cost or pricing data?
A. They are identical concepts used interchangeably throughout FAR Part 15.
B. Cost or pricing data become 'certified cost or pricing data' only when certification is required and
executed in accordance with FAR 15.406-2. [CORRECT]
C. Cost or pricing data must always be certified regardless of contract value or competition.
D. Certified cost or pricing data are required only for commercial product acquisitions.
Correct Answer: B
Rationale: Under FAR 15.401, certified cost or pricing data are a subset of cost or pricing data - specifically, data that were
required to be submitted and have been certified (or are required to be certified) under FAR 15.406-2. The two terms are not
interchangeable: cost or pricing data may exist and be exchanged without certification (for example, as data other than
certified cost or pricing data under FAR 15.402). Option A is wrong because the terms have distinct legal consequences;
Option C ignores TINA exceptions and the $2 million threshold; Option D misapplies the rule because commercial item
acquisitions are generally exempt from certified cost or pricing data.
Department of Defense | FAR 15.4 Contract Pricing Reference
Grade A+ Verified Answers | 100% Correct Page 3
, CLC 058 - Introduction to Contract Pricing 2026/2027 Update | 100-Question Verified Exam Bank
Q7: A contractor discovers, after award but before payment, that it inadvertently omitted a $75,000
subcontractor quote from its certified cost or pricing data. What is the proper corrective action under FAR
15.406-3?
A. No action is required because the omission was inadvertent and below 10% of the total contract price.
B. The contractor must immediately notify the contracting officer and correct the certification; the
Government may pursue price adjustment and potential defective pricing remedies. [CORRECT]
C. The contractor should wait for DCAA to identify the omission during a post-award audit.
D. The contractor may correct the omission only if the contracting officer consents in writing.
Correct Answer: B
Rationale: FAR 15.406-3 imposes an ongoing duty to disclose defective cost or pricing data. When a contractor discovers an
omission or error after award, it must promptly notify the contracting officer and submit a corrected certificate. The
Government may then seek a price adjustment under the contract's price reduction clauses and TINA remedies (10 U.S.C.
2306a / 41 U.S.C. 3502). Option A is wrong because there is no percentage-based materiality floor; Option C wrongly delays
disclosure until audit; Option D incorrectly conditions disclosure on Government consent when disclosure is mandatory.
Q8: An offeror submits a proposal for a $5 million R&D; contract. After price agreement but before
award, the offeror receives an updated vendor quote that lowers material cost by 8%. Under FAR
15.406-1, what must the offeror do?
A. Nothing; the price has already been agreed upon and the data freeze attaches at proposal submission.
B. Submit the updated quote to the contracting officer and update the certified cost or pricing data,
because data must be accurate, complete, and current as of the date of price agreement or an earlier
agreed-upon date. [CORRECT]
C. Withhold the new quote because it would lengthen negotiations.
D. Submit the quote only if requested by DCAA during post-award audit.
Correct Answer: B
Rationale: FAR 15.406-1 requires that cost or pricing data be accurate, complete, and current as of the date of price
agreement or an earlier date agreed upon between the parties. A material updated quote received before price agreement is,
by definition, cost or pricing data that prudent buyers and sellers would expect to affect negotiations significantly, so the
contractor must disclose it and, if required, update the certification. Option A incorrectly freezes the data at proposal
submission; Option C misstates the disclosure obligation; Option D confuses the certification duty with audit-driven requests.
Q9: Which of the following would be considered 'factual, verifiable' cost or pricing data rather than
'judgmental information' under FAR 15.401?
A. The program manager's personal belief that the team will achieve 95% learning curve efficiency.
B. An executive's qualitative forecast that overhead will decline due to anticipated process improvements.
C. A signed vendor quote for a critical subsystem used in building the proposal's material cost estimate.
[CORRECT]
D. A marketing department projection of future commercial sales volume.
Correct Answer: C
Rationale: FAR 15.401 emphasizes that cost or pricing data are factual, not judgmental, and verifiable. A signed vendor
quote is an objective, verifiable fact that prudent buyers and sellers would reasonably expect to affect price negotiations
significantly. The program manager's belief (Option A) and the executive's qualitative forecast (Option B) are judgmental;
the marketing projection (Option D) is forward-looking judgmental information that may be relevant to data other than
certified cost or pricing data but is not, by itself, cost or pricing data.
Department of Defense | FAR 15.4 Contract Pricing Reference
Grade A+ Verified Answers | 100% Correct Page 4
