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FAC exam prep by FAR Parts 1-15 > FAR Part 15 Deck 3 > Flashcards

FAR Part 15 Deck 3 Flashcards

(59 cards)

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1
Q

What must the contracting officer document in the contract file during negotiations?

A

The principal elements of the negotiated agreement, including:
* Purpose of the negotiation
* Description of the acquisition
* Names and positions of representatives
* Current status of contractor systems
* Exceptions related to certified cost or pricing data
* Summary of the contractor’s proposal
* Significant facts influencing negotiation objectives
* Impact of higher-level direction
* Basis for profit or fee objectives
* Documentation of fair and reasonable pricing

This documentation ensures transparency and accountability in the negotiation process.

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2
Q

What is included in the price negotiation memorandum (PNM)?

A

The PNM includes:
* Purpose of negotiation
* Acquisition description
* Representatives involved
* Contractor systems status
* Exceptions for cost data
* Summary of proposals and negotiations
* Significant facts and considerations
* Impact of external directions
* Profit or fee basis
* Fair and reasonable pricing documentation

The PNM serves as a comprehensive record of the negotiation.

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3
Q

What should the contracting officer do if they learn that certified cost or pricing data is defective before price agreement?

A

The contracting officer shall bring the matter to the attention of the prospective contractor and consider any new data submitted to correct the deficiency

This step is crucial to ensure the integrity of contract pricing.

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4
Q

True or False: The Government is entitled to a price adjustment if certified cost or pricing data are found defective after award.

A

True

This entitlement is included in specific contract clauses.

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5
Q

What must the contracting officer consider when determining a price adjustment for defective data?

A

The time the defective data became available and the extent to which the Government relied on the data

This evaluation helps establish the legitimacy of the price adjustment.

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6
Q

Fill in the blank: A __________ is a document that reflects the adjustments made to certified cost or pricing data used to negotiate the contract price.

A

price negotiation memorandum (PNM)

The PNM is essential for maintaining accurate records of negotiations.

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7
Q

What are the conditions under which an offset for understated certified cost or pricing data is allowed?

A

An offset is allowed if:
* The contractor certifies entitlement to the offset
* The contractor proves availability of data before the ‘as of’ date

These conditions ensure that offsets are justified and documented.

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8
Q

What is the definition of ‘Make item’ in the context of make-or-buy programs?

A

‘Make item’ means an item or work effort to be produced or performed by the prime contractor or its affiliates

This definition helps clarify the scope of work in subcontracting decisions.

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9
Q

Under what circumstances can contracting officers require make-or-buy program plans?

A

For negotiated acquisitions requiring certified cost or pricing data valued at $15 million or more, or under $15 million if deemed necessary

This requirement ensures oversight in significant contracts.

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10
Q

What factors should be included in the evaluation of proposed make-or-buy programs?

A

Factors include:
* Capability and capacity
* Availability of small business concerns
* Delivery or performance schedules
* Control of technical and schedule interfaces
* Technical risks involved

These factors help assess the viability and risk of the proposed programs.

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11
Q

What is the Government’s right when defective subcontractor data is disclosed?

A

The Government has the right to reduce the prime contract price if it was significantly increased due to defective subcontractor data

This right applies regardless of whether the data supported subcontract cost estimates.

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12
Q

What is the primary focus of a make-or-buy decision in contract management?

A

Complexity, cost, quantity, or need for additional equipment or property.

Items like raw materials or commercial products are usually excluded unless they significantly impact cost or schedule.

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13
Q

What items should not be included in make-or-buy programs?

A

Items estimated to cost less than 1 percent of the total estimated contract price or any minimum amount set by the agency.

These exclusions help focus on significant cost drivers.

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14
Q

What key information should an offeror’s program include?

A

Description, categorization, proposal for each item, reasons for categorization, designation of the plant, identification of subcontractors, recommendations for deferral, and other required information.

This information enables thorough evaluation by contracting officers.

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15
Q

What are the three categories for major items or work efforts in make-or-buy decisions?

A
  • Must make
  • Must buy
  • Can either make or buy
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16
Q

Under what conditions can contracting officers agree to ‘make items’?

A

If overall lower Governmentwide cost results or it is in the Government’s best interest.

This is applicable even if similar items are available from other firms at lower prices.

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17
Q

What is the purpose of a forward pricing rate agreement (FPRA)?

A

To describe and manage pricing data for contracts and modifications.

FPRAs help ensure that pricing is based on accurate, complete, and current data.

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18
Q

What is a should-cost review?

A

A specialized form of cost analysis that evaluates contractor efficiency without assuming historical costs reflect efficiency.

It aims to promote improvements in cost performance for Government contracts.

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19
Q

What are the two types of should-cost reviews?

A
  • Program should-cost review
  • Overhead should-cost review
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20
Q

What factors should be considered for overhead should-cost reviews?

A
  • Dollar amount of Government business
  • Level of Government participation
  • Level of noncompetitive contracts
  • Volume of proposal activity
  • Major systems or programs
  • Corporate reorganizations
  • Other relevant conditions
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21
Q

What is the objective of an estimating system in proposal preparation?

A

To increase accuracy and reliability of proposals.

Regular reviews of estimating systems help expedite negotiations and improve proposal reliability.

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22
Q

What clause should be included when a make-or-buy program is incorporated in a contract?

A

Clause at 52.215-9, Changes or Additions to Make-or-Buy Program.

This clause outlines the framework for managing make-or-buy decisions within the contract.

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23
Q

True or False: The contracting officer must insert the clause at 52.215-14, Integrity of Unit Prices, in all contracts.

A

False.

There are exceptions, including acquisitions below the simplified acquisition threshold and certain service contracts.

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24
Q

Fill in the blank: The contracting officer shall insert the clause at 52.215-15, ________, in solicitations and contracts when certified cost or pricing data is anticipated.

Study These Flashcards
A

Pension Adjustments and Asset Reversions

25
What is the purpose of the clause at 52.215-16, Facilities Capital Cost of Money?
To be inserted in solicitations expected to result in contracts subject to cost principles for contracts with commercial organizations. ## Footnote This clause helps ensure proper accounting for capital costs.
26
What factors influence the decision to conduct a program should-cost review?
* Initial production has taken place * Sole source contract * Future year production requirements * Increasing costs history * Defined work for analysis * Time availability for review * Availability of skilled personnel
27
What should the contracting officer do after completing a program should-cost review?
Provide a report of uneconomical practices and establish a follow-up plan for corrections. ## Footnote This ensures accountability and continuous improvement.
28
What clause should be inserted if the prospective contractor does not propose facilities capital cost of money in its offer?
52.215-17, Waiver of Facilities Capital Cost of Money ## Footnote This clause addresses the waiver of facilities capital cost of money in contracts.
29
What clause is required for contracts involving Postretirement Benefits (PRB) other than pensions?
52.215-18, Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions ## Footnote This clause is included when certified cost or pricing data is anticipated.
30
What is the purpose of the clause 52.215-19?
To notify ownership changes in contracts requiring certified cost or pricing data ## Footnote This clause is important for maintaining transparency in contract ownership.
31
When should the provision at 52.215-20 be inserted in solicitations?
When it is reasonably certain that certified cost or pricing data or data other than certified cost or pricing data will be required ## Footnote This provision includes instructions for requesting exceptions.
32
What are the Alternate options available for the provision at 52.215-20?
* Alternate I: Specify a format for certified cost or pricing data * Alternate II: Send copies of the proposal to the ACO and contract auditor * Alternate III: Require submission via electronic media * Alternate IV: Replace if certified cost or pricing data are not expected ## Footnote These alternates allow flexibility in how data is submitted.
33
What clause must be used for modifications when certified cost or pricing data is required?
52.215-21, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data-Modifications ## Footnote This clause includes instructions for requesting exceptions for modifications.
34
What is the purpose of the clause 52.215-22?
To identify subcontract effort in relation to limitations on pass-through charges ## Footnote This clause ensures clarity on subcontractor contributions.
35
For which type of contracts should the clause 52.215-23 be inserted?
For civilian agencies when total estimated contract value exceeds the simplified acquisition threshold and for DoD contracts exceeding the threshold for obtaining cost or pricing data ## Footnote This clause applies to specific contract types to manage pass-through charges.
36
What is required on the first page of a pricing proposal?
* Solicitation, contract, and/or modification number * Name and address of offeror * Name and telephone number of point of contact * Name of contract administration office (if available) * Type of contract action * Proposed cost, profit or fee, and total * Requirement for Government property * Cost accounting standards status * Proposal statement * Date of submission * Authorized representative's name, title, and signature ## Footnote This information ensures comprehensive identification and accountability in proposals.
37
What information must be included in the index of a pricing proposal?
An index of all certified cost or pricing data and information accompanying or identified in the proposal ## Footnote This index aids in organizing and referencing submitted data.
38
Fill in the blank: Certified cost or pricing data must be clearly identified on the _______.
cover sheet ## Footnote This requirement ensures clarity about the inclusion of certified data.
39
What should be provided for each cost element in a proposal?
* Materials and services * Direct labor * Indirect costs * Other costs * Royalties ## Footnote These elements are essential for a detailed cost proposal.
40
True or False: The requirement for submission of certified cost or pricing data ends once the proposal is submitted.
False ## Footnote The requirement continues until agreement on price is reached.
41
What must be identified if costs were incurred for work performed before submission of a proposal?
Those costs must be identified in the cost/price proposal ## Footnote This ensures transparency and accountability for pre-proposal expenses.
42
What type of breakdowns should be provided for direct labor in a proposal?
A time-phased breakdown of labor hours, rates, and costs by appropriate category ## Footnote This breakdown aids in evaluating labor cost reasonableness.
43
What is the maximum royalty amount for which detailed information must be provided?
$1,500 ## Footnote Royalties exceeding this amount require separate documentation.
44
What are the types of consultant services mentioned?
Preservation, packaging and packing, spoilage and rework, and Federal excise tax on finished articles
45
What is the threshold for royalties that requires detailed information?
If royalties exceed $1,500
46
List the information required for each separate royalty or license fee.
* Name and address of licensor * Date of license agreement * Patent numbers * Patent application serial numbers or other basis for royalty * Brief description of each contract item or component * Percentage or dollar rate of royalty per unit * Unit price of contract item * Number of units * Total dollar amount of royalties * Copy of the current license agreement if requested
47
What must be submitted to claim facilities capital cost of money?
FormCASB-CMF and a calculation of the proposed amount
48
What is the first step in the submission formats for new contracts?
Proposed Contract Estimate-Proposed Contract Cost Elements Reference
49
What should be included in the cost elements for new contracts?
Necessary and reasonable costs for efficient contract performance
50
What is required when significant preproduction or startup costs are incurred?
A full identification and explanation of them
51
What should be included in the cost of deleted work for change orders?
* Incurred cost of deleted work already performed * Current estimates of what the cost would have been to complete the deleted work
52
In the submission for change orders, how is the net cost to be deleted calculated?
Estimated cost of all deleted work less the cost of deleted work already performed
53
How should the net cost of change be calculated?
Cost of work added less the net cost to be deleted
54
What should be included in the price revision/redetermination format?
* Cutoff date * Number of units completed * Number of units remaining * Cumulative contract amount * Redetermination proposal amount * Difference between contract amount and redetermination proposal
55
What types of costs should be entered as incurred costs before starting production?
* Preproduction engineering * Special plant rearrangement * Training program * Identifiable nonrecurring costs
56
What must be done if actual costs for work in process are not available?
Enter best estimates and explain the basis for each estimate
57
What is the total incurred cost calculated from?
Total of Columns (8), (9), and (10)
58
What is required for the total estimated cost?
Total of Columns (11) and (12)
59
What should be identified for each specific cost element?
The attachment in which the information may be found

FAC exam prep by FAR Parts 1-15 (25 decks)

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