CON 3900 - Cost and Price Analysis Exam All Possible Questions and Answers with complete solution

What is the definition of Price? - cost plus any fee or profit What is the Government's Pricing Policy? - comes from reasonable sources, and is done independently and separately; must be fair and reasonable Source Selection in regards to price - price or cost should be evaluated in SS procedures, even in event of trade off (is the Government willing to pay more for whatever the trade off is?) What does the Technical Team evaluate during SS procedures? - evaluate hours, hourly wages for labor, materials, etc. (direct costs) The process of examining and evaluating a proposed price w/out evaluating separate cost elements and proposed profit - Price Analysis shall be used when certified cost or pricing data are not required - Price Analysis shall be used when certified cost or pricing data are required - Cost Analysis Review and evaluation of any separate cost elements and profit or fee in an offeror's proposal; focuses on independent cost elements - Cost Analysis Independently reviewing and evaluating specific elements of each proposed cost estimate - Cost Realism Shall be performed on cost-reimbursement contracts to determine the probable costs of performance for each offeror - Cost Realism What are Allowable Costs? - reasonable, allocable, unless listed as exception in FAR subpart 31.2, IAW the terms of the contract,IAW Cost Accounting Standards if applicable, otherwise IAW Generally Accepted Accounting Principles any cost that is identified specifically with a particular final cost objective, costs identified specifically with a contract - direct cost List examples of direct costs - labor costs, materials (raw), equipment, manufacturing, production costs any cost not directly identified with a single final cost objective, but identified with two or more final cost objectives or with at least one intermediate cost objective - indirect costs