CON 170 Test #3 | Complete Questions & Answers (100% Verified)

CON 170 Test #3 | Complete Questions & Answers (100% Verified) CON 170 Test #3 | Complete Questions & Answers (100% Verified) Define Price Analysis - ANSWER - clearly demonstrates that the proposed price is reasonable in comparison with current or recent prices for the same or similar items, adjusted to reflect changes in market conditions, economic conditions, quantities, or terms and conditions under contracts that resulted from adequate price competition. FAR 15.403(c)(1)(iii) When should Price Analysis be used? - ANSWER - - shall be used when certified cost or pricing data are not required FAR 15.404-1(a)(2) - Price analysis should be used to verify that the overall price offered is fair and reasonable. FAR 15.404-1(a)(3) Define Cost Analysis - ANSWER - - Cost analysis is the review and evaluation of the separate cost elements and proposed profit/fee of an offeror's certified cost and pricing data or data other than certified cost and pricing data (Require When: When TINA applies, you must use cost analysis method) When should Cost Analysis be used? - ANSWER - - shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required FAR 15.404-1(a)(3) - Cost analysis may also be used to evaluate data other than certified cost or pricing data to determine cost reasonableness or cost realism when a fair and reasonable price cannot be determined through price analysis alone for commercial or non-commercial items. FAR 15.404-1(4) What are the 5 bases for price analysis? - ANSWER - 1. Other proposed prices 2. Commercial prices 3. Previously proposed prices & contract prices 4. Parametric & rough yardsticks 5. Independent Government Estimates (IGE's) (1617-C, pg 7) Which Price Comparative Analysis technique is most preferred? - ANSWER - Other proposed prices (1617-C, pg 8) Who from the Government develops a Forward Pricing Rate Agreement type agreement - ANSWER - - The Administrative Contracting Officer (ACO) FAR 42.1702(b) - The cognizant contract administration agency shall determine whether an FPRA will be established. FAR 42.1701(a)