ACO CORB Study Question and answers
verified to pass
What are the responsibilities of an ACO? - correct answers The ACO should
ensure that the best interests of the Government are protected by ensuring
the terms and conditions of the contracts are appropriate. all parties execute
the contract according to the terms and condition
Examples of responsibilities of an ACO? - correct answers Conduct post
award conferences, negotiate forward pricing rate agreements, determine
allowability of costs, establish final indirect costs and billing rates, process
novation and name change agreements, and perform administrative closeout
procedures.
What is the difference between an ACO and CA? - correct answers The ACO
has a warrant that binds the Government. The ACO's decisions and
documents are binding. The CA prepares documents up to signature but
cannot bind the Government.
What is the relationship between the prime and subcontractor? - correct
answers Privity - If the Government has a contract with the prime contractor;
there is privity of contract between the Government and the prime. If the prime
has a contract with its subcontractors, privity of contract exists between the
prime and its subcontractor. No privity of contract exists between the
Government and the sub (unless there is another contract with them). If no
privity, you cannot negotiate directly with the sub or direct the sub to take any
action.
Generally speaking how long are funds available before they cancel? - correct
answers 5 years
Who can authorize the use of Advanced Payments? - correct answers PCO
,What is the difference between finance payments and invoice payments? -
correct answers Finance payments are payments made to a contractor prior
to acceptance of product/service, while invoice payments are made based on
acceptance of product/service.
Examples of financing payments - correct answers Progress Payments based
on cost or completion of work, Performance Based Payments, Advanced
Payments or Interim Payment/Voucher for cost type contracts.
What is the least preferred method of financing. - correct answers Advanced
Payments
What would be reasons for an ACO to suspend or reduce progress
payments? FAR 32.503-6, Clause 52.232-29 - correct answers 1. Non-
compliance with material requirement of contract (ex. Approved Accounting
system)
2. Unsatisfactory financial condition
3. Inventory in excess of contract requirements (unreasonable)
4. Failure to make adequate progress
5. Delinquent in paying subs
6. Operating in a loss condition
What are Performance Based Payments? - correct answers Payments based
on achievement of specific, measurable events or accomplishments that are
defined and valued in contract. These events should be identified as
cumulative or stand alone events, clearly describe the events and how they
will be validated, and the value for each accepted event. • Not used for
smaller contracts
Not used for contracts less than 6 months
,What does it mean when it's said progress payments are self-liquidating? -
correct answers The Government recoups contract funds through the
deduction of payment of invoices at the time of completed contract line items.
When invoicing for supplies/services, the debt is paid by taking a percentage
of the invoice. When the contractor submits a progress payments on the
DD1443 form the contractor will not bill for the amount of there liquidating rate.
The total billed amount will be added and totaled in WIP. Upon delivery of the
product, the contractor submits an invoice for the total amount of the contract
or line item and DFAS will empty the WIP amount recouping those funds and
paying and the amount billed minus the WIP amount for the total amount
owed.
What is needed before approving Progress Payments and PBP Payments? -
correct answers The ACO shall ensure the contractor has an adequate
accounting system and contracts that ensure the government is otherwise
protected against loss by additional protective provisions. Additional
provisions may include risk assessment, cost benefit analysis, first article
dollar limitation, surveillance plan. Ensure the Master Payment Schedule in
MOCAS is completed
What are the different types of financing payments and on what type of
contract may they be used? - correct answers 1. Advance Payments - May be
used on any type of contract but must be authorized by PCO and is used
sparingly
2. Performance Based Payments - used on fixed price contracts only
3. Progress Payments - May be used on Fixed Price line items; Payments are
made on the basis of either a percentage of completion of work
(FAR32.101,102) or the incurrence of costs
4. Loan Guarantee - Made by Federal Reserve banks, on behalf of designated
guaranteeing agencies, to enable contracts to obtain financing from private
sources
5. Interim Payment on Cost Type Contracts
, What are the ACO's responsibilities for Progress Payments? - correct answers
1. Determine if the use of progress payments are pratical
2. Ensure contractor meets FAR 32.104(d) requirements
a. Small business (90%)
i. can't bill for first delivery prior to 4 months
ii. exceeds SAT ($150,000)
iii. Demonstrates an actual financial need
b. Not a small business (80%)
i. Can't bill for first delivery prior to 6 months
ii. Contract price exceeds $2.5M
iii. Demonstrates an actual financial need
3. Ensure MOCAS Prog Pay Master is updated to reflect rates, distro, etc
4. Ensure progress payment requests (PPRs) are processed promptly
5. Validate and approve/disapprove all PPRs
6. Ensure Progress payments are limited to interim financing of non-
commercial FFP Contracts, orders or line items
PBP Steps - correct answers 1. Identify PBP events (contractor proposed)
2. Establish completion criteria
3. Obtain/evaluate contractors expenditure profile
4. Establish event values
5. Determine the type of event: severable or cumulative
6. Incorporate PBP Arrangements into table/special provision
Criteria that should not be used for PBP's: - correct answers • Signing of a
contract or contract modification
• Exercise of contract options
verified to pass
What are the responsibilities of an ACO? - correct answers The ACO should
ensure that the best interests of the Government are protected by ensuring
the terms and conditions of the contracts are appropriate. all parties execute
the contract according to the terms and condition
Examples of responsibilities of an ACO? - correct answers Conduct post
award conferences, negotiate forward pricing rate agreements, determine
allowability of costs, establish final indirect costs and billing rates, process
novation and name change agreements, and perform administrative closeout
procedures.
What is the difference between an ACO and CA? - correct answers The ACO
has a warrant that binds the Government. The ACO's decisions and
documents are binding. The CA prepares documents up to signature but
cannot bind the Government.
What is the relationship between the prime and subcontractor? - correct
answers Privity - If the Government has a contract with the prime contractor;
there is privity of contract between the Government and the prime. If the prime
has a contract with its subcontractors, privity of contract exists between the
prime and its subcontractor. No privity of contract exists between the
Government and the sub (unless there is another contract with them). If no
privity, you cannot negotiate directly with the sub or direct the sub to take any
action.
Generally speaking how long are funds available before they cancel? - correct
answers 5 years
Who can authorize the use of Advanced Payments? - correct answers PCO
,What is the difference between finance payments and invoice payments? -
correct answers Finance payments are payments made to a contractor prior
to acceptance of product/service, while invoice payments are made based on
acceptance of product/service.
Examples of financing payments - correct answers Progress Payments based
on cost or completion of work, Performance Based Payments, Advanced
Payments or Interim Payment/Voucher for cost type contracts.
What is the least preferred method of financing. - correct answers Advanced
Payments
What would be reasons for an ACO to suspend or reduce progress
payments? FAR 32.503-6, Clause 52.232-29 - correct answers 1. Non-
compliance with material requirement of contract (ex. Approved Accounting
system)
2. Unsatisfactory financial condition
3. Inventory in excess of contract requirements (unreasonable)
4. Failure to make adequate progress
5. Delinquent in paying subs
6. Operating in a loss condition
What are Performance Based Payments? - correct answers Payments based
on achievement of specific, measurable events or accomplishments that are
defined and valued in contract. These events should be identified as
cumulative or stand alone events, clearly describe the events and how they
will be validated, and the value for each accepted event. • Not used for
smaller contracts
Not used for contracts less than 6 months
,What does it mean when it's said progress payments are self-liquidating? -
correct answers The Government recoups contract funds through the
deduction of payment of invoices at the time of completed contract line items.
When invoicing for supplies/services, the debt is paid by taking a percentage
of the invoice. When the contractor submits a progress payments on the
DD1443 form the contractor will not bill for the amount of there liquidating rate.
The total billed amount will be added and totaled in WIP. Upon delivery of the
product, the contractor submits an invoice for the total amount of the contract
or line item and DFAS will empty the WIP amount recouping those funds and
paying and the amount billed minus the WIP amount for the total amount
owed.
What is needed before approving Progress Payments and PBP Payments? -
correct answers The ACO shall ensure the contractor has an adequate
accounting system and contracts that ensure the government is otherwise
protected against loss by additional protective provisions. Additional
provisions may include risk assessment, cost benefit analysis, first article
dollar limitation, surveillance plan. Ensure the Master Payment Schedule in
MOCAS is completed
What are the different types of financing payments and on what type of
contract may they be used? - correct answers 1. Advance Payments - May be
used on any type of contract but must be authorized by PCO and is used
sparingly
2. Performance Based Payments - used on fixed price contracts only
3. Progress Payments - May be used on Fixed Price line items; Payments are
made on the basis of either a percentage of completion of work
(FAR32.101,102) or the incurrence of costs
4. Loan Guarantee - Made by Federal Reserve banks, on behalf of designated
guaranteeing agencies, to enable contracts to obtain financing from private
sources
5. Interim Payment on Cost Type Contracts
, What are the ACO's responsibilities for Progress Payments? - correct answers
1. Determine if the use of progress payments are pratical
2. Ensure contractor meets FAR 32.104(d) requirements
a. Small business (90%)
i. can't bill for first delivery prior to 4 months
ii. exceeds SAT ($150,000)
iii. Demonstrates an actual financial need
b. Not a small business (80%)
i. Can't bill for first delivery prior to 6 months
ii. Contract price exceeds $2.5M
iii. Demonstrates an actual financial need
3. Ensure MOCAS Prog Pay Master is updated to reflect rates, distro, etc
4. Ensure progress payment requests (PPRs) are processed promptly
5. Validate and approve/disapprove all PPRs
6. Ensure Progress payments are limited to interim financing of non-
commercial FFP Contracts, orders or line items
PBP Steps - correct answers 1. Identify PBP events (contractor proposed)
2. Establish completion criteria
3. Obtain/evaluate contractors expenditure profile
4. Establish event values
5. Determine the type of event: severable or cumulative
6. Incorporate PBP Arrangements into table/special provision
Criteria that should not be used for PBP's: - correct answers • Signing of a
contract or contract modification
• Exercise of contract options
