CONT 1300 EXAM REVIEW QUESTIONS
WITH COMPLETE ANSWERS
Offer - ANSWER-A response to a solicitation that, if accepted, would bind the offeror to
perform the resultant contract.
Two Types of Offers - ANSWER-1. Bid - An offer to perform the work described in a
contract at a specified cost. Government bids are generally cost-specific, based on the
cost of labor, materials, profit, and overhead
2. Proposal - A government proposal, sometimes called a government contract
proposal, is a response written by a private company to a public government agency for
the purchasing of goods or services
Quote - ANSWER-Used to obtain pricing for a specific number of well-defined items
(This is a quotation, not an Offer)
Solicitations - ANSWER-Used in negotiated acquisitions to communicate your
requirements to prospective contractors and to solicit proposals
The Lowest Price Technically Acceptable (LPTA) includes - ANSWER-1. Evaluation
factors and sub factors shall be in the solicitation
2. Based on Lowest Price and Technically Acceptable Offer
3. Solicitations shall specify that award will be made on basis of LPTA
Risk - ANSWER-A measure of future uncertainties in achieving program goals and
objectives within defined cost, schedule, and performance constraints
Key Risk elements of a Contract - ANSWER-Cost, Schedule, and Performance
Cost risk - ANSWER-An escalation of project costs. It is the risk that the project will cost
more than the budget allocated for it. Perhaps the most common project risk, cost risk is
due to poor budget planning, inaccurate cost estimating, and scope creep
Schedule risk - ANSWER-Activities will take longer than expected and is typically the
result of poor planning or unforeseen circumstances.
Performance risk - ANSWER-The risk that the project will fail to produce results
consistent with project specifications.
Proposal analysis is done by a contracting officer to determine proposed prices to be
____ and _____ in all contract actions - ANSWER-Fair and Reasonable
Proposal Analysis Techniques - ANSWER-1. Price
2. Cost
, 3. Cost Realism
4. Technical Analysis
5. Unit Pricing and Unbalanced Pricing
Cost Realism Analysis - ANSWER-The process of independently reviewing and
evaluating specific elements of each offeror's proposed cost estimate to determine
whether the estimated proposed cost elements
Direct Cost - ANSWER-Any cost directly identified with a single, final cost objective
Indirect Cost - ANSWER-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
Cost realism may be used for fixed price contracts when - ANSWER-1. New
requirements may not be fully understood by competing offerors
2. There are quality concerns
3. Past experience on the contractor yields quality or service shortfalls
Cost Analysis Techniques - ANSWER-1. Shall be performed on cost-reimbursement
contracts to determine the probable cost of performance for each offeror
2. Shall be used for Truth in Negotiation Act (TINA)
3. May also be used on competitive fixed-price incentive contracts or, in exceptional
cases, on other competitive fixed-price-type contracts when negotiating a sole source or
when competition is not available in order to determine a price to be fair and reasonable
as data other than certified cost or pricing data
Cost Analysis - ANSWER-Focuses on the reasonableness of each estimated cost
element and adds a reasonable rate of profit/fee to arrive at the contract price
Truth in Negotiation Act (TINA) - ANSWER-The contractor must submit cost & pricing
data and certify that it is Current, Complete, and Accurate. $2 million is the current
Threshold under Truth in Negotiation Act (TINA), exemptions are commercial,
competition, and waiver
Price Analysis - ANSWER-Shall be used when certified cost or pricing data are not
required
Price Related Factors - ANSWER-Hubzones (Add 10% to large business offer amount),
Multiple Award, GFP, Buy American Act, Transportation Cost
Bargaining - ANSWER-Aspect of negotiation where making counteroffers and offers
Cost Analysis Review and Evaluation Proposals - ANSWER-1. Break down the
proposal and tab where things are located
2. Find the roadmap and trace the cost elements back to the source of the estimate
WITH COMPLETE ANSWERS
Offer - ANSWER-A response to a solicitation that, if accepted, would bind the offeror to
perform the resultant contract.
Two Types of Offers - ANSWER-1. Bid - An offer to perform the work described in a
contract at a specified cost. Government bids are generally cost-specific, based on the
cost of labor, materials, profit, and overhead
2. Proposal - A government proposal, sometimes called a government contract
proposal, is a response written by a private company to a public government agency for
the purchasing of goods or services
Quote - ANSWER-Used to obtain pricing for a specific number of well-defined items
(This is a quotation, not an Offer)
Solicitations - ANSWER-Used in negotiated acquisitions to communicate your
requirements to prospective contractors and to solicit proposals
The Lowest Price Technically Acceptable (LPTA) includes - ANSWER-1. Evaluation
factors and sub factors shall be in the solicitation
2. Based on Lowest Price and Technically Acceptable Offer
3. Solicitations shall specify that award will be made on basis of LPTA
Risk - ANSWER-A measure of future uncertainties in achieving program goals and
objectives within defined cost, schedule, and performance constraints
Key Risk elements of a Contract - ANSWER-Cost, Schedule, and Performance
Cost risk - ANSWER-An escalation of project costs. It is the risk that the project will cost
more than the budget allocated for it. Perhaps the most common project risk, cost risk is
due to poor budget planning, inaccurate cost estimating, and scope creep
Schedule risk - ANSWER-Activities will take longer than expected and is typically the
result of poor planning or unforeseen circumstances.
Performance risk - ANSWER-The risk that the project will fail to produce results
consistent with project specifications.
Proposal analysis is done by a contracting officer to determine proposed prices to be
____ and _____ in all contract actions - ANSWER-Fair and Reasonable
Proposal Analysis Techniques - ANSWER-1. Price
2. Cost
, 3. Cost Realism
4. Technical Analysis
5. Unit Pricing and Unbalanced Pricing
Cost Realism Analysis - ANSWER-The process of independently reviewing and
evaluating specific elements of each offeror's proposed cost estimate to determine
whether the estimated proposed cost elements
Direct Cost - ANSWER-Any cost directly identified with a single, final cost objective
Indirect Cost - ANSWER-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
Cost realism may be used for fixed price contracts when - ANSWER-1. New
requirements may not be fully understood by competing offerors
2. There are quality concerns
3. Past experience on the contractor yields quality or service shortfalls
Cost Analysis Techniques - ANSWER-1. Shall be performed on cost-reimbursement
contracts to determine the probable cost of performance for each offeror
2. Shall be used for Truth in Negotiation Act (TINA)
3. May also be used on competitive fixed-price incentive contracts or, in exceptional
cases, on other competitive fixed-price-type contracts when negotiating a sole source or
when competition is not available in order to determine a price to be fair and reasonable
as data other than certified cost or pricing data
Cost Analysis - ANSWER-Focuses on the reasonableness of each estimated cost
element and adds a reasonable rate of profit/fee to arrive at the contract price
Truth in Negotiation Act (TINA) - ANSWER-The contractor must submit cost & pricing
data and certify that it is Current, Complete, and Accurate. $2 million is the current
Threshold under Truth in Negotiation Act (TINA), exemptions are commercial,
competition, and waiver
Price Analysis - ANSWER-Shall be used when certified cost or pricing data are not
required
Price Related Factors - ANSWER-Hubzones (Add 10% to large business offer amount),
Multiple Award, GFP, Buy American Act, Transportation Cost
Bargaining - ANSWER-Aspect of negotiation where making counteroffers and offers
Cost Analysis Review and Evaluation Proposals - ANSWER-1. Break down the
proposal and tab where things are located
2. Find the roadmap and trace the cost elements back to the source of the estimate
