Price means - ANSWER cost plus any fee or profit applicable to the contract type.
Contracting officers shall - ANSWER Purchase supplies and services from responsible
sources at fair and reasonable prices
What is Price? - ANSWER Cost plus any fee or profit
What is Pricing? - ANSWER The process of establishing a reasonable amount or
amounts to be paid for supplies or services.
"price or cost" to the Government shall be - ANSWER evaluated in every source
selection
When contracting on a firm-fixed-price basis, what will usually satisfy the requirement to
perform a price analysis? - ANSWER A comparison of proposed prices will usually
satisfy the requirement to perform a price analysis
When contracting on a cost-reimbursement basis, evaluations shall include a cost realism
analysis to determine? - ANSWER What the Government should realistically expect to
pay for the proposed effort,
The offeror's understanding of the work, and
The offeror's ability to perform the contract.
1
, When a contracting professional determines that a price is reasonable, what does that
mean? - ANSWER They made a decision based on what a prudent and competent
buyer would be willing to pay.
Price analysis is used - ANSWER When certified cost or pricing data are not required.
To verify that the overall price offered is fair and reasonable.
Cost analysis is used - ANSWER To evaluate the reasonableness of individual cost
elements
To evaluate data other than certified cost or pricing data to determine cost reasonableness
or cost realism
Determining price reasonableness in a sealed bidding approach is - ANSWER typically
accomplished by comparing prices offered and accepting the lowest price proposed from a
responsible bidder
Price analysis is - ANSWER the process of examining and evaluating a proposed price
without evaluating its separate cost elements and proposed profit
Price analysis may be completed on - ANSWER fixed-price, cost-reimbursement and
time-and-materials contract types
The total cost of a contract is the sum of - ANSWER the direct and indirect costs
allocable to the contract, incurred or to be incurred, plus any allocable cost of money
pursuant to FAR 31.205-10, less any allocable credits
A direct cost is any cost that can be identified - ANSWER specifically with a particular
final cost objective.
2
Contracting officers shall - ANSWER Purchase supplies and services from responsible
sources at fair and reasonable prices
What is Price? - ANSWER Cost plus any fee or profit
What is Pricing? - ANSWER The process of establishing a reasonable amount or
amounts to be paid for supplies or services.
"price or cost" to the Government shall be - ANSWER evaluated in every source
selection
When contracting on a firm-fixed-price basis, what will usually satisfy the requirement to
perform a price analysis? - ANSWER A comparison of proposed prices will usually
satisfy the requirement to perform a price analysis
When contracting on a cost-reimbursement basis, evaluations shall include a cost realism
analysis to determine? - ANSWER What the Government should realistically expect to
pay for the proposed effort,
The offeror's understanding of the work, and
The offeror's ability to perform the contract.
1
, When a contracting professional determines that a price is reasonable, what does that
mean? - ANSWER They made a decision based on what a prudent and competent
buyer would be willing to pay.
Price analysis is used - ANSWER When certified cost or pricing data are not required.
To verify that the overall price offered is fair and reasonable.
Cost analysis is used - ANSWER To evaluate the reasonableness of individual cost
elements
To evaluate data other than certified cost or pricing data to determine cost reasonableness
or cost realism
Determining price reasonableness in a sealed bidding approach is - ANSWER typically
accomplished by comparing prices offered and accepting the lowest price proposed from a
responsible bidder
Price analysis is - ANSWER the process of examining and evaluating a proposed price
without evaluating its separate cost elements and proposed profit
Price analysis may be completed on - ANSWER fixed-price, cost-reimbursement and
time-and-materials contract types
The total cost of a contract is the sum of - ANSWER the direct and indirect costs
allocable to the contract, incurred or to be incurred, plus any allocable cost of money
pursuant to FAR 31.205-10, less any allocable credits
A direct cost is any cost that can be identified - ANSWER specifically with a particular
final cost objective.
2
