Part III

Question 1

4 Phases of Money Flow

Answer 1

1. PPB(E)
2. Enactment
3. Apportionment
4. Execution

Question 2

PPBE Overview

Answer 2

Question 3

What questions does each PPBE phase ask?

Answer 3

1. P - How much defence do we need?
2. P - How much defence can we afford?
3. B - Have we properly priced our planned defence?
4. E - How are we doing on resource allocation?

Question 4

What three things compose the FYDP?

Answer 4

1. Major Force Programs
2. DoD Appropriations
3. DoD Components

Question 5

Authorisation vs. Appropriation

Answer 5

Authorisation grants a program’s right to exist but provides no funding; appropriation sets the funding levels for each program

Question 6

Exceptions to Full Funding Policy for Procurement

Answer 6

• Multiyear Procurement
• Advance Procurement

Question 7

Funding for Product Improvments

Answer 7

Question 8

Laws Governing Appropriations

Answer 8

• Antideficency Act
• Misappropriation Act
• Bona Fide Need Rule

Question 9

What levels are cost estimates performed at?

Answer 9

Question 10

What are should-cost goals?

Answer 10

Should-cost targets are often stretch goals we expect our leaders to do their best to reach; we expect them to be based on real opportunities, but to be challenging to execute.

Question 11

What do life cycle costs cover

Answer 11

Question 12

Life Cycle Cost Composition

Answer 12

Question 13

5 components of Ktr costs

Answer 13

Question 14

How to account for inflation in cost estimation

Answer 14

• Compound (Raw) indices
• Composite (Weighted) indices
• Published escalation

Question 15

Limits to BTR

Answer 15

Question 16

6 elements to make contract legally binding

Answer 16

• Mutual Assent
• Consideration
• Competency
• Lawful Purpose
• Certainty of Terms
• Form Required By Law

Question 17

Contracting Overall Process

Answer 17

Question 18

Sealed bidding vs. negotiation

Answer 18

• Contracting by sealed bidding: Employs competitive bids, public opening of bids and awards. Used when the requirements are very well defined and the award is based solely on price and price-related factors.
• Contracting by negotiation: Unless conducted using sealed bidding all procurements are considered negotiated even if the contracting officer does not negotiate with the offeror.

Question 19

Solicitation Methods

Answer 19

RFP or ITB

Question 20

SSEB vs. SSAC

Answer 20

SSEB does evaluations, SSAC makes recommendation to the SSA

Question 21

SAT & Set Asides

Answer 21

• 3-250K are automatically set aside where there are reasonable expectations that at least two capable small businesses will submit offers that are competitive in terms of market prices, quality, and delivery.
• 250K+ are set aside if there’s a reasonable expection that 2+ small business are reponsible and that delivery will be at fair market price

Question 22

How To Engage Industry

Answer 22

• SSS
• RFI
• Industry Day
• DRFP

Question 23

Clarifications vs. Communications

Answer 23

• Clarifications are when no discussions are anticipated, and may result in minor revisions to proposal
• Communications are when discussions are expected and offerors may NOT revise their proposals
• Both address negative past performance
• If discussions happen, they’re with contractors in the competitive range and at that point proposals may be changed

Question 24

SSA/SSAC/SSEB

Answer 24

Question 25

EVM Reporting Requirements

Answer 25

Question 26

What is Required for Costs to be Allowable

Answer 26

**Reasonable** Cost that a prudent business person would incur in a competitive environment. **Allocable** The cost incurred specifically for the contract, cost benefits both the contract and other work, and cost is necessary to overall operation of the business. **CAS and GAAP** Cost Accounting Standards (CAS) and Generally Accepted Accounting Principles (GAAP): The contractor cost accounting practices are disclosed in writing and required to follow consistently. **Contract Terms** Allowable costs are defined and agreed upon in the contract and cost ceilings are negotiated. **Cost Principles** There are 47 cost principles identified in the FAR to define expressly allowable, partially allowable, and expressly unallowable.

Question 27

Forward Rate Pricing Agreement

Answer 27

Agreement between Gov't and Ktr for future labour rates. Mitigates a lot of the uncertainty around future labour costs.

Question 28

Limited vs Restricted Rights

Answer 28

Question 29

Options for resolving contract disputes

Answer 29

* Litigation or Alternative Dispute Resolution * Several options exists within ADR

Question 30

Termination for Default vs. Cause

Answer 30

Cause is for commercial items whilst default is for concommercial items

Question 31

4 ADR Methods

Answer 31

Mediation, Fact-Finding, Mini-Trial, Non-Binding Arbitration