CON 1300 EXAM Q&A
Price analysis- which price selected of normally wins - ANSWER-lowest price
When TINA applies, what kind analysis? - ANSWER-Cost reimbursable
Direct vs indirect costs definitions - ANSWER-o Direct - cost directly attributed to the
item being purchased; ex: labor hours of employees building the product being
purchased on contract
o Indirect - not directly attributed to the cost of the item; ex: health insurance of
employees, admin costs such as salary of secretary or CEO
Cost realism analysis- can I alter contract cost or price? - ANSWER-Yes, most probable
cost.
Can I use cost realism analysis for fixed price contract? - ANSWER-Yes
Price Negotiation Memorandum (PNM)- used for - ANSWER-· Stand-alone document
that tells the whole story on how you made the award
· Documents the analysis that the final price is fair & reasonable
· Clear, complete, concise, & professional
Elements of a PNM - ANSWER-Technical;
Material;
Labor;
Other Direct Costs;
General & Administrative Expenses (G&A);
Fee or Profit;
Facilities Capital Cost of Money (FCCM);
Total Estimated Cost;
Certified Cost and Data (if used);
Identify Risks associated with each element.
When used Clarifications? - ANSWER-Pre-award
What are clarifications? - ANSWER-Clarifications are limited exchanges, between the
Government and offerors, that may occur when award without discussions is
contemplated.
Objectives to negotiation - ANSWER-Gov: best value (product quality and timely
delivery, fair and reasonable price);
Company: base on goals and operations
Ture/False: Bargaining is a form of negotiation, Sitting down and trading things back
and forth. - ANSWER-Ture
, Parts of proposal - ANSWER-technical, price, past performance
Purpose of technical evaluation for screening offers? - ANSWER-Responsive and non-
responsive
· Identify offerors that clearly do not meet the minimum technical requirements, call non-
responsive. The Government shall not accept proposals from non-responsible offerors;
Identify deficiencies and problems; or might be corrected with discussions.
Functional team members and what they do? - ANSWER-KO, Budget, PM... They
evaluate offers, depends on the specific acquisition.
Evaluation factors for proposals - ANSWER-· Address risks
· What is the best fit - Price, technical approach, management approach, past
performance
Who decides venue for negotiations? - ANSWER-Gov decided the venue.
What is Interest-based negotiation? - ANSWER-Interest-based negotiation (IBN) is a
step-by-step approach used to identify common interests of the parties. Identifying
common interests promotes solutions that satisfy the needs of both parties
EX: 16yrs old kids
What is position based negotiations? - ANSWER-Position-based negotiation (PBN)
involves each party taking a position and arguing for it without learning the interests of
the other party. It focuses on obtaining your position through the use of power and
adversarial tactics and of the other side's interests or needs. techniques without
consideration.
Ex: Buy a car or 4 yrs old kids
What is 4 steps of Interest-based negotiation (IBN) - ANSWER-o Identify the interest of
both parties
o Develop options using brainstorming techniques
o Identify standards
o Reach resolution
What is 3 steps of Position-based negotiation (PBN) - ANSWER-o Develop position
o Negotiate using win/ lose methods
o If agreement not reached, split the difference
What is Source selection evaluation or review board (SSEB) do? - ANSWER-SSEB
evaluates final proposals and makes a recommendation to SSA. (over $100M)
SSA makes the final decision on who gets the award.
Who can request a final proposal revision? - ANSWER-Source Selection Authority
(SSA)
Price analysis- which price selected of normally wins - ANSWER-lowest price
When TINA applies, what kind analysis? - ANSWER-Cost reimbursable
Direct vs indirect costs definitions - ANSWER-o Direct - cost directly attributed to the
item being purchased; ex: labor hours of employees building the product being
purchased on contract
o Indirect - not directly attributed to the cost of the item; ex: health insurance of
employees, admin costs such as salary of secretary or CEO
Cost realism analysis- can I alter contract cost or price? - ANSWER-Yes, most probable
cost.
Can I use cost realism analysis for fixed price contract? - ANSWER-Yes
Price Negotiation Memorandum (PNM)- used for - ANSWER-· Stand-alone document
that tells the whole story on how you made the award
· Documents the analysis that the final price is fair & reasonable
· Clear, complete, concise, & professional
Elements of a PNM - ANSWER-Technical;
Material;
Labor;
Other Direct Costs;
General & Administrative Expenses (G&A);
Fee or Profit;
Facilities Capital Cost of Money (FCCM);
Total Estimated Cost;
Certified Cost and Data (if used);
Identify Risks associated with each element.
When used Clarifications? - ANSWER-Pre-award
What are clarifications? - ANSWER-Clarifications are limited exchanges, between the
Government and offerors, that may occur when award without discussions is
contemplated.
Objectives to negotiation - ANSWER-Gov: best value (product quality and timely
delivery, fair and reasonable price);
Company: base on goals and operations
Ture/False: Bargaining is a form of negotiation, Sitting down and trading things back
and forth. - ANSWER-Ture
, Parts of proposal - ANSWER-technical, price, past performance
Purpose of technical evaluation for screening offers? - ANSWER-Responsive and non-
responsive
· Identify offerors that clearly do not meet the minimum technical requirements, call non-
responsive. The Government shall not accept proposals from non-responsible offerors;
Identify deficiencies and problems; or might be corrected with discussions.
Functional team members and what they do? - ANSWER-KO, Budget, PM... They
evaluate offers, depends on the specific acquisition.
Evaluation factors for proposals - ANSWER-· Address risks
· What is the best fit - Price, technical approach, management approach, past
performance
Who decides venue for negotiations? - ANSWER-Gov decided the venue.
What is Interest-based negotiation? - ANSWER-Interest-based negotiation (IBN) is a
step-by-step approach used to identify common interests of the parties. Identifying
common interests promotes solutions that satisfy the needs of both parties
EX: 16yrs old kids
What is position based negotiations? - ANSWER-Position-based negotiation (PBN)
involves each party taking a position and arguing for it without learning the interests of
the other party. It focuses on obtaining your position through the use of power and
adversarial tactics and of the other side's interests or needs. techniques without
consideration.
Ex: Buy a car or 4 yrs old kids
What is 4 steps of Interest-based negotiation (IBN) - ANSWER-o Identify the interest of
both parties
o Develop options using brainstorming techniques
o Identify standards
o Reach resolution
What is 3 steps of Position-based negotiation (PBN) - ANSWER-o Develop position
o Negotiate using win/ lose methods
o If agreement not reached, split the difference
What is Source selection evaluation or review board (SSEB) do? - ANSWER-SSEB
evaluates final proposals and makes a recommendation to SSA. (over $100M)
SSA makes the final decision on who gets the award.
Who can request a final proposal revision? - ANSWER-Source Selection Authority
(SSA)
