CON 290(CON290 Week 1 Test 1/CON290 Week 1 Test 1 Attempt Score 56 out of 60 points. Defense Acquisition University (SOLVED Well Detailed)

Review Test Sub Course mission: Week 1 Quiz CON290 Test Week 1 Quiz Attempt Score 56 out of 60 points Question 1 3-1 Jenna, a contracting officer, has been asked by John, a program manager, to restrict competition on an upcoming procurement to companies within 50 miles of the program office. What Federal Acquisition Regulation (FAR) policy and underlying statutory requirement should guide Jenna’s response? 2 out of 2 points Contracting officers are required to provide for full and open competition unless a FAR Part 6 exception or exclusion applies. Contracting officers may limit competition when an established and known source is available to meet the requirement. Contracting officers may limit competition when it provides for a more efficient procurement. Contracting officers are required to provide for full and open competition unless a FAR Part 6 exception or exclusion applies. Question 2 11-1 2 out of 2 points Sam is negotiating data rights for a technical data package (TDP) with Flute Company for a new Army acquisition program. Flute Company developed the item and related technical data entirely at its expense. What DoD policy applies in this situation? Acquire only the technical data and rights necessary to satisfy the agency needs. Acquire the technical data and rights necessary to protect the Government’s best interest, in accordance with the contracting officer’s best judgment. All technical data rights are acquired automatically in DoD contracts. Technical data rights costing more than $1 million may not be purchased without Secretary of Defense level approval. Question 3 2 out of 2 points Which of the following is a main purpose of a Business Clearance (also known as a Review Board) briefing? To gain approval from management to begin non-competitive negotiations To gain approval from management to begin non-competitive negotiations To develop skills in briefing senior management To act as a substitute writing a Price Negotiation Memorandum Question 4 You just issued a sole-source RFP to Bayser, Inc. for a fixed-price-incentive-firm (FPIF) contract to develop a new sensor. Bayser responded with a proposal based on a cost-plus-incentive-fee (CPIF) contract type. How should you respond? 2 out of 2 points You may consider changing contract type because contract type is negotiable, even after RFP release, in this situation. Reject the proposal because the FAR prohibits changing contract type once the acquisition plan has been approved. Reject the proposal because the FAR prohibits changing contract type once the RFP has been submitted. You may consider changing contract type because contract type is negotiable, even after RFP release, in this situation. Question 5 When using regression to test the causal/beneficial relationship of Nanotech’s indirect G&A support expenses, it makes the most sense to use the historical . 2 out of 2 points G&A expense pool as the dependent variable and the associated G&A base as the independent variable. G&A expense pool as the dependent variable and the associated G&A base as the independent variable. G&A base as the dependent variable and associated expense pool as the independent variable. G&A rate as the dependent variable and the associated year as the independent variable. . Question 6 2 out of 2 points The underrun share ratio specified in the FPIF production contract awarded to Proto Design Inc. is listed as “60/40”? What does this mean? The Government keeps 60% of all cost underruns. When the contractor reaches 60% of target cost, it will reach PTA. When the contractor reaches 60% of target cost, it will receive a 40% performance bonus. The contractor keeps 60% of all cost underruns. Question 7 2 out of 2 points You have validated the following information from a contractor’s proposal: Year 2012 (actual) 2013 (actual) 2014 (actual) 2015 (actual) 2016 (projected) Allocation Base $1,490,000 $1,300,000 $1,425,000 $1,500,000 $1,750,000 Expense Pool $275,300 $201,000 $265,000 $300,000 Based on the above information and regression analysis, what is the calculated overhead rate for 2016? (Use regression template.) Question 8 2 out of 2 points Andy, a contracting officer, is reviewing a Performance Based Payment (PBP) request from his contractor. The PBP event listed in the contract requires the contractor to complete the mock-up of a prototype unit for Government technical team review. The contractor has completed 99% of the mock-up, but ran into a delay with a 3rd tier subcontractor. The contractor informs Andy that the mock-up will be 99% complete at the time of the Government review. Based only on these facts, may Andy approve the PBP request at this time? No, the PBP event must be 100% complete before the payment may be approved. No, the PBP event must be 100% complete before the payment may be approved. Yes, the Contracting Officer has the authority to make a judgment call on this matter and may approve the payment as he sees appropriate. Yes, because delays due to sub-contractor performance is one of the reasons that the FAR allows payment for incomplete performance. Question 9 2 out of 2 points You have received a proposal for which you must now perform a cost analysis. The proposal includes direct costs, indirect overhead costs, and profit. Which of these must be included in your cost analysis? All must be included, including profit Only indirect overhead costs All must be included, except profit All must be included, including profit Question 10 2 out of 2 points Lucas is the contracting officer on a Cost Plus Fixed Fee (CPFF) “completion” contract with an estimated cost of $100,000. The negotiated fee is $10,000, or 10% of cost. The contractor has advised Lucas that they anticipate it will actually cost $110,000 to complete the work and the Government has increased funding accordingly. If final allowable cost comes in at $110,000, what fee will the contractor be paid upon successful completion of this effort? Question 11 0 out of 2 points Under a CPFF contract, the final amount that will be paid is: Your negotiated cost plus fixed fee Your negotiated cost plus fixed fee Allowable cost incurred plus a fixed fee Actual cost incurred plus profit Question 12 2 out of 2 points Mary Jane, a contracting officer, has requested that Conrad Corporation submit a qualifying proposal in order to definitize an outstanding undefinitized contract action (UCA). Conrad has repeatedly failed to respond. What DFARS UCA restriction will Mary Jane follow if Conrad fails to provide a qualifying proposal? Shall not obligate more than 50 percent of the not-to-exceed price Shall not obligate more than 70 percent of the final price Shall not obligate more than 50 percent of the not-to-exceed price Shall not obligate more than the UCA price ceiling Question 13 2 out of 2 points Frank, a contracting officer, is drafting an acquisition plan for the development of a sensor that can detect launch signatures from surface-to-air missile (SAM) systems. The required level of effort is unknown as this type of sensor has not been developed in the past. Costs are highly speculative as this is pushing current technology into unknown areas. He must select an appropriate contract type for this acquisition. Which of the following contract types would be most appropriate for this procurement? CPFF CPFF T&M FFP Question 14 2 out of 2 points You are preparing to issue a competitive RFP for a development contract. Your customer has heard that two large contractors plan to form a joint venture to respond to the solicitation. Due to past issues with a joint venture, he has directed you to exclude joint ventures from submitting proposals. Does the FAR allow you to exclude joint ventures? No; FAR Part 6 does not provide any exclusion or exception that authorizes such action. Yes; the customer is authorized to direct restricted competition as long as it is in the Government’s best interest. No; FAR Part 6 does not provide any exclusion or exception that authorizes such action. No, unless excluding joint ventures would ensure lower prices. Question 15 2 out of 2 points You are negotiating the cost of materials with the Contractor’s representative. During the course of the negotiations, you raise concerns and offer valid data supporting your concerns that the Contractor’s proposed costs are unrealistically low. Even so, the Contractor continues to argue their position, ignore your negotiation points, and avoids discussing your different and convergent interests. The Contractor is engaging in what type of negotiation strategy? Position Based Negotiations Interest Based Negotiations BATNA Position Based Negotiations Question 16 2 out of 2 points Given the criteria in the DFARS and the Nanotech R&D Case, when using the weighted guidelines (WGL) to develop your profit/fee objective, which of the following is best justified? The technology incentive The technology incentive A contract type risk factor of 4.0% The working capital adjustment Question 17 The Nanotech case study brought each of the following negotiation issues into play except: Follow-on options for more prototypes Data rights Government furnished equipment Follow-on options for more prototypes Question 18 2 out of 2 points 2 out of 2 points Dan is administering a contract that provides for the use of Government Furnished Property (GFP). Due to real-world mission requirements, GFP was delivered late to the contractor. The Contractor has not contacted the Government on this issue. Which of the following actions best describes Dan’s responsibility at this point in time? Modify the contract cost or schedule but only if the contractor submits a valid request for equitable adjustment. Dan must immediately execute a unilateral contract modification for the Government’s estimate of the costs associated with the delay. Document the date of delivery, but no further action is required because the delay is due to mission requirements and is therefore excusable. Modify the contract cost or schedule but only if the contractor submits a valid request for equitable adjustment. Question 19 2 out of 2 points Tom is negotiating a cost reimbursement contract with Abercrombie Products Corporation (APC). APC insists it is entitled to retain title to all property which it purchases and is reimbursed under the contract. Who retains title to such contractor-acquired property? Under a cost reimbursement contract, the Government retains title to all property purchased by the contractor for which the contractor is entitled to be reimbursed as a direct item of cost under this contract. The contractor may elect to sell or scrap the property after contract performance and split the proceeds with the Government as compensation for contractor effort and expenses associated with such purchase and sale. The Government retains title to property under all cost reimbursement contracts, unless the value of the property is less than $2500. Under a cost reimbursement contract, the Government retains title to all property purchased by the contractor for which the contractor is entitled to be reimbursed as a direct item of cost under this contract. Question 20 2 out of 2 points In negotiating a cost-plus-incentive-fee (CPIF) contract with the Kroach Corporation, you have questioned the allowability of a proposed cost. Kroach offered evidence that the cost amount is reasonable and allocable to the proposed contract. Is the cost allowable? You need more information to determine allowability. You need more information to determine allowability. Yes, if it is also in accordance with CAS standards. Yes, unless it does not comply with the terms of the contract. Question 21 2 out of 2 points You are negotiating a firm-fixed price (FFP) contract with Grabball Corporation for a low-rate initial production contract. You are at an impasse on delivery schedule. Grabball suggests breaking the impasse by adding a delivery incentive to the contract. May you agree to this approach? Yes, as long as the incentive is based solely on factors other than cost. Yes, but it becomes a fixed-price-incentive-firm (FPIF) contract in that case. Yes, as long as the incentive is based solely on factors other than cost. No, incentives may only be added to incentive-type contracts. Question 22 2 out of 2 points Recall the Nanotech proposal of record as follows: Nanotech’s proposal included a 3.9% Miscellaneous ODC factor applied to all ODC costs. The PDI license fee of $1,000,000 was also included as an ODC. If the Government negotiates a license with PDI directly and provides the sensor technical data package as GFP to Nanotech, by how much would Nanotech's proposal decrease? (NOTE: Since you do not have the tools to recalculate FCCOM, keep FCCOM at $15,674 for your calculation.) Question 23 You have analyzed a contractor’s data and determined the following to be appropriate for use in calculating the appropriate overhead rate for your pre-negotiation objective: Allocation Base: $150,000 Expense Pool: $235,000 Profit Rate: 12% FCCOM amount: $88,500 Given this information, what is the appropriate overhead rate? Question 24 2 out of 2 points 2 out of 2 points You are preparing an RFP for a CPIF contract and are considering offering contract financing in the form of either performance-based payments or progress payments based on cost. Which form of financing may you offer? Neither form may be offered, if this will be a cost-reimbursement contract type. Either form may be offered, regardless of contract type, but performance-based payments are preferred. Performance-based payments must always be offered over progress payments. Neither form may be offered, if this will be a cost-reimbursement contract type. Question 25 You have just awarded an FPIF contract which includes the following: Ceiling Price: $2,160,000 Target Cost: $1,800,000 Target Price: $2,000,000 Share Ratio: 60/40 What is the Point of Total Assumption (PTA)? Question 26 You are evaluating a proposal that requires an analysis of Facilities Capital Cost of Money (FCCOM). Using the following information, as appropriate, calculate the Facilities Capital Employed amount. (Use FCCOM Form DD 1861.) Company-wide allocation base for Engineering Overhead pool: $2,400,000 Company-wide allocation base for G&A expense pool: $9,200,000 Your pre-negotiation objective allocation base for Engineering Overhead pool: $300,000 Your pre-negotiation objective allocation base for G&A expense pool: $846,400 Engineering Overhead factor: 0. G&A factor: 0. 2 out of 2 points 0 out of 2 points Treasury Rate: 3.9% $34,050 $34,050 $265,141 $6,798,141 Question 27 2 out of 2 points You are preparing to negotiate a contract with Cannaday Continental Corporation (3C) to produce a new sensor for the Protectorate program office. The sensor will include a battery pack developed by 3C entirely at 3C's expense. Under the “follow the funds” rule, to which of the following data rights licenses is the Federal Government entitled? The Federal Government would obtain at least a Limited Rights license in this situation, but only if 3C agrees to sell the Government a license. The Federal Government would obtain at least a Limited Rights license in this situation, but only if 3C agrees to sell the Government a license. The Federal Government is entitled to a Government Purpose Rights license in this situation to ensure it has sufficient rights for any follow-on production contract. The Contractor is required to grant the Federal Government a Limited Rights license in this situation. Question 28 2 out of 2 points In preparation for negotiations with John Bryans Unlimited (JBU) for a contract to develop a new sensor, you are conducting a fact-finding session. During the session, JBU asks, “Due to the complexity of the development effort, JBU believes a longer contract schedule is warranted. Does the Government agree?” Is this an appropriate question to which the Government should respond during fact-finding? No, because it is asking you to negotiate and the parties are not prepared to negotiate during fact-finding. No, because only the Government can ask questions during fact-finding. Yes, because this gives you the opportunity to go ahead and negotiate lower profit as consideration for a longer schedule. Yes, because changing the schedule will enable you to get the contract awarded more quickly. You should go ahead and start negotiations since JBU appears ready. Question 29 2 out of 2 points Bob is the contracting officer on a production contract for the XB-8 missile program. The contractor did not request contract financing when the contract was awarded, but has since submitted a request to Bob to incorporate Progress Payments. How must Bob handle this request? Financing may be incorporated into this existing contract if adequate new consideration is provided by the contractor. Financing may be incorporated into this existing contract if adequate new consideration is provided by the contractor. Financing is not permitted if the contractor fails to identify the need in their original proposal. If any non-successful competing offerors included financing in their proposals, financing may not be incorporated into this existing contract. Question 30 2 out of 2 points You have just awarded a Fixed-Price Incentive Firm (FPIF) contract to FedSource, Inc. Why is it important to monitor incurred cost submissions made by FedSource during performance of the contract? The risk of non-performance or reduced quality may increase as the contractor approaches PTA. If FedSource exceeds PTA, additional funding will become necessary because FPIF contracts are funded to PTA. The Contracting Officer would have no insight into FedSource’s incurred costs since this is a fixed-price type contract. The risk of non-performance or reduced quality may increase as the contractor approaches PTA.