6c051: Contractor Responsibility And Laws! Trivia Quiz

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6c051: Contractor Responsibility And Laws! Trivia Quiz - Quiz

When it comes to construction, it is very important that you follow the laws governing your profession and that you do not fall into some of the risks involves with your line of work. Are you planning on being a constructor in the air force? Test out what you know about constructor responsibilities and laws on 6c051 by taking up this quiz. All the best!


Questions and Answers
  • 1. 

    (401) Which standards are used to determine contractor responsibility before making an award to a contractor?

    • A.

      Resources, eligibility, and tax status

    • B.

      Performance record, eligibility, and tax status

    • C.

      Resources, performance record, and eligibility

    • D.

      Performance record, resources, and tax status

    Correct Answer
    C. Resources, performance record, and eligibility
    Explanation
    Before making an award to a contractor, the standards used to determine contractor responsibility include evaluating their resources, performance record, and eligibility. Resources refer to the contractor's ability to fulfill the requirements of the contract, such as manpower, equipment, and financial resources. Performance record refers to the contractor's past performance on similar contracts, including their ability to meet deadlines, quality of work, and adherence to contract requirements. Eligibility refers to the contractor's legal and regulatory compliance, such as licensing, certifications, and qualifications. Evaluating these factors helps ensure that the selected contractor is capable and qualified to successfully complete the project.

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  • 2. 

    (401) A contractor excluded from government contracting for a reasonable, specified period of time because of conviction on a criminal offense in connection with obtaining a public contract is

    • A.

      Debarred

    • B.

      Ineligible

    • C.

      Suspended

    • D.

      Unqualified

    Correct Answer
    A. Debarred
    Explanation
    Debarment refers to the act of excluding a contractor from government contracting for a specified period of time due to their conviction on a criminal offense related to obtaining a public contract. This punishment is considered reasonable and serves as a deterrent for unethical behavior in the procurement process. In this case, the contractor has been debarred, meaning they are temporarily prohibited from participating in government contracts.

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  • 3. 

    (401) Which of the following systems is not used in making a determination of contractor responsibility?

    • A.

      Dun and Bradstreet System (D&B)

    • B.

      Excluded Parties Listing System (EPLS)

    • C.

      Past Performance Information Retrieval System (PPIRS)

    • D.

      Federal Awardee Performance and Integrity Information System (FAPIIS)

    Correct Answer
    A. Dun and Bradstreet System (D&B)
    Explanation
    The Dun and Bradstreet System (D&B) is not used in making a determination of contractor responsibility. The other systems listed, such as the Excluded Parties Listing System (EPLS), Past Performance Information Retrieval System (PPIRS), and Federal Awardee Performance and Integrity Information System (FAPIIS), are all used to gather information and assess the past performance and integrity of contractors. However, the D&B system is primarily used for credit reporting and business information, rather than specifically evaluating contractor responsibility.

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  • 4. 

    (401) What action must a contracting officer (CO) take in the absence of information clearly indicating that a prospective contractor is responsible?

    • A.

      Request performance and payment bonds

    • B.

      Document the file and proceed with award

    • C.

      Make a determination of nonresponsibility

    • D.

      Provide the contractor with a neutral rating

    Correct Answer
    C. Make a determination of nonresponsibility
    Explanation
    In the absence of information clearly indicating that a prospective contractor is responsible, the contracting officer must make a determination of nonresponsibility. This means that the CO cannot proceed with awarding the contract to the contractor as there is not enough evidence to prove their capability and reliability. By making this determination, the CO is ensuring that the contractor is not selected for the project, potentially avoiding any negative consequences that may arise from an irresponsible contractor.

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  • 5. 

    (401) What action should be taken if legal proceedings are not initiated within 12 months after the date of a suspension notice?

    • A.

      Debar the contractor

    • B.

      Terminate the suspension

    • C.

      Suspend the contractor for an additional 12 months

    • D.

      File a complaint with the assistant attorney general

    Correct Answer
    B. Terminate the suspension
    Explanation
    If legal proceedings are not initiated within 12 months after the date of a suspension notice, the appropriate action to take is to terminate the suspension. This means that the suspension is lifted and the contractor can resume their normal activities without any restrictions. It is important to terminate the suspension as there is no legal basis to continue it if no legal proceedings have been initiated within the specified time frame.

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  • 6. 

    (401) What does the Small Business Administration issue as assurance that a small business has been determined responsible for the purpose of receiving and performing a specific government contract?

    • A.

      8(a) certification

    • B.

      HUBZone certification

    • C.

      Certificate of Competency (COC)

    • D.

      Certificate of Responsibility (COR)

    Correct Answer
    C. Certificate of Competency (COC)
    Explanation
    The Small Business Administration issues a Certificate of Competency (COC) as assurance that a small business has been determined responsible for the purpose of receiving and performing a specific government contract. This certificate serves as proof that the small business has the necessary capabilities, resources, and expertise to successfully fulfill the requirements of the contract. It is a validation of the small business's ability to meet the government's standards and expectations for the contract.

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  • 7. 

    (402) When an offeror proposes more than one product that will meet the government’s need, how are the offers evaluated?

    • A.

      Reject all offers as nonresponsive

    • B.

      Evaluate each product as a separate offer

    • C.

      Review all offers and select only the best value for evaluation

    • D.

      Evaluate the low bid and return other proposals to the contractor

    Correct Answer
    B. Evaluate each product as a separate offer
    Explanation
    When an offeror proposes more than one product that will meet the government's need, the offers are evaluated by evaluating each product as a separate offer. This means that each product will be assessed individually based on its own merits and compliance with the government's requirements. The evaluation will consider factors such as quality, price, delivery time, and any other relevant criteria. By evaluating each product separately, the government can ensure a fair and thorough assessment of all the proposed options before making a decision.

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  • 8. 

    (402) Prepare the award of commercial items on the

    • A.

      SF 33

    • B.

      SF 1442

    • C.

      SF 1449

    • D.

      DD 1155

    Correct Answer
    C. SF 1449
    Explanation
    The SF 1449 is the correct form for preparing the award of commercial items. This form is used to award contracts for commercial items and services, and it includes all the necessary information such as the contract type, terms and conditions, and pricing. The other forms mentioned, SF 33, SF 1442, and DD 1155, are not specifically designed for the award of commercial items and may not include all the required information for such contracts.

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  • 9. 

    (402) To the maximum extent possible, purchase orders for commercial items should include only those clauses required to implement provisions of law, or executive order, and

    • A.

      The clauses prescribed by FAR Part 13

    • B.

      Those clauses that are determined to be consistent with prevailing Air Force practice

    • C.

      Those clauses that are determined to be consistent with prevailing commercial practice

    • D.

      The clauses prescribed by Department of Defense Federal Acquisition Regulation Supplement (DFARS) for simplified acquisition procedures.

    Correct Answer
    C. Those clauses that are determined to be consistent with prevailing commercial practice
    Explanation
    Purchase orders for commercial items should only include clauses that are determined to be consistent with prevailing commercial practice. This means that the clauses included in the purchase orders should align with the standard practices and terms commonly used in the commercial industry. This helps to ensure that the purchase orders are fair and reasonable, and that both parties are operating under mutually understood and accepted terms. Including clauses that are consistent with prevailing commercial practice also promotes efficiency and reduces the need for unnecessary or burdensome contractual requirements.

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  • 10. 

    (402) The simplified acquisition procedures of FAR Part 13 may be combined with FAR Part 12, Commercial Procedures, for

    • A.

      Construction acquisitions

    • B.

      Acquisitions requiring certified cost or pricing data

    • C.

      Acquisitions up to the simplified acquisition threshold

    • D.

      Any commercial acquisition regardless of dollar amount

    Correct Answer
    C. Acquisitions up to the simplified acquisition threshold
    Explanation
    The simplified acquisition procedures of FAR Part 13 may be combined with FAR Part 12, Commercial Procedures, for acquisitions up to the simplified acquisition threshold. This means that for acquisitions that fall within the simplified acquisition threshold, which is a certain dollar amount set by the government, the simplified acquisition procedures outlined in FAR Part 13 can be used in conjunction with the commercial procedures outlined in FAR Part 12. This allows for a streamlined and simplified process for acquiring goods and services up to a certain dollar amount.

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  • 11. 

    (403) Requirements solicited using simplified acquisition procedures (SAP) are typically evaluated on

    • A.

      Price alone

    • B.

      Past performance alone

    • C.

      Contractor business size

    • D.

      Overall ranking of offers

    Correct Answer
    A. Price alone
    Explanation
    When requirements are solicited using simplified acquisition procedures (SAP), they are typically evaluated based on price alone. This means that the evaluation process focuses solely on the cost or price proposed by the contractors. Other factors such as past performance, contractor business size, and overall ranking of offers are not taken into consideration when evaluating SAP requirements.

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  • 12. 

    (403) Options are evaluated by

    • A.

      Using $500 as an evaluation factor

    • B.

      Considering only the cost of the basic year and awarding to the lowest bid

    • C.

      Adding the total price for all options to the total price for the basic requirement

    • D.

      Adding 10 percent of the total price for the basic requirement to the basic requirement price

    Correct Answer
    C. Adding the total price for all options to the total price for the basic requirement
    Explanation
    The correct answer is "adding the total price for all options to the total price for the basic requirement". This means that the cost of all the options is added to the cost of the basic requirement to calculate the total price. This method takes into account all the additional costs associated with the options and provides a comprehensive evaluation of the total price for the project.

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  • 13. 

    (403) What may be used in lieu of obtaining individual quotations each time a purchase for the same item is contemplated?

    • A.

      Previous purchase price

    • B.

      Standing price quotation

    • C.

      Independent government estimate

    • D.

      Lowest price available based on market research

    Correct Answer
    B. Standing price quotation
    Explanation
    A standing price quotation may be used in lieu of obtaining individual quotations each time a purchase for the same item is contemplated. This means that instead of requesting new quotes every time, a pre-negotiated price is already established for the item. This can save time and effort in the procurement process, as the buyer can simply refer to the standing price quotation to determine the price for the item.

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  • 14. 

    (403) A purchase order must

    • A.

      Provide for inspection terms

    • B.

      Specify f.o.b. origin for supplies

    • C.

      Exclude prompt payment discounts

    • D.

      Identify an offeror’s tax identification number

    Correct Answer
    A. Provide for inspection terms
    Explanation
    A purchase order must provide for inspection terms because it is important for the buyer to have the right to inspect the goods or services they are purchasing. This ensures that they receive the quality and quantity they expect and can reject any defective or unsatisfactory products. Inspection terms also protect the seller by providing clear guidelines for acceptance or rejection of goods, preventing any disputes or misunderstandings. By including inspection terms in a purchase order, both parties can have confidence in the transaction and ensure a fair and satisfactory exchange.

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  • 15. 

    (403) When only one reply is received in response to a solicitation estimated at less than the simplified acquisition threshold (SAT), what action must the contracting officer take before making the award?

    • A.

      An award may not be made; cancel the solicitation

    • B.

      No further action is required; award to the one responding contractor

    • C.

      Include a statement in the contract file giving the basis of the determination of contractor responsibility

    • D.

      Include a statement in the contract file giving the basis of the determination of fair and reasonable price

    Correct Answer
    D. Include a statement in the contract file giving the basis of the determination of fair and reasonable price
    Explanation
    When only one reply is received in response to a solicitation estimated at less than the simplified acquisition threshold (SAT), the contracting officer must include a statement in the contract file giving the basis of the determination of fair and reasonable price before making the award. This is to ensure transparency and accountability in the procurement process, as the contracting officer must justify the decision to award the contract to the sole responding contractor and demonstrate that the price is fair and reasonable.

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  • 16. 

    (403) What clause must be included in an unpriced purchase order?

    • A.

      New Material

    • B.

      Notice to Supplier

    • C.

      Fast Payment Procedure

    • D.

      Contract Terms and Conditions–Commercial Items

    Correct Answer
    B. Notice to Supplier
    Explanation
    The clause that must be included in an unpriced purchase order is the "Notice to Supplier" clause. This clause is necessary to inform the supplier about important information or requirements related to the purchase order. It may include details such as delivery instructions, packaging requirements, quality control standards, or any other specific instructions that the supplier needs to be aware of. Including this clause ensures clear communication and helps to avoid any misunderstandings or issues during the procurement process.

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  • 17. 

    (404) The cover page and each page containing source selection information must be marked

    • A.

      For Official Use Only—See FAR 2.101 and 3.104

    • B.

      For Official Use Only—See FAR 12.101 and 13.104

    • C.

      Source Selection Information—See FAR 2.101 and 3.104.

    • D.

      Source Selection Information—See FAR 12.101 and 13.104

    Correct Answer
    C. Source Selection Information—See FAR 2.101 and 3.104.
    Explanation
    The correct answer is "Source Selection Information—See FAR 2.101 and 3.104." This is because the question is asking for the correct marking to be used on the cover page and pages containing source selection information. The correct marking is "Source Selection Information" and the relevant references for this marking are FAR 2.101 and 3.104.

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  • 18. 

    (404) All personnel involved in source selections must

    • A.

      Sign a non-disclosure agreement

    • B.

      Possess a current security clearance

    • C.

      Meet mandatory grade requirements prior to being assigned to the source selection team

    • D.

      Be interviewed by the contracting officer prior to being assigned to the source selection team

    Correct Answer
    A. Sign a non-disclosure agreement
    Explanation
    All personnel involved in source selections must sign a non-disclosure agreement in order to ensure the confidentiality of sensitive information related to the selection process. This agreement helps to protect proprietary information, trade secrets, and other confidential data from being disclosed to unauthorized individuals. By signing the non-disclosure agreement, personnel are legally bound to keep the information confidential and not share it with anyone who is not directly involved in the source selection process. This measure helps to maintain the integrity and fairness of the selection process.

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  • 19. 

    (403) Which section of a blanket purchase agreement contains accounting and appropriation data?

    • A.

      Invoices.

    • B.

      Extent of obligation

    • C.

      Description of agreement

    • D.

      Accounting and appropriation data are not cited

    Correct Answer
    D. Accounting and appropriation data are not cited
  • 20. 

    (403) In order to cancel a blanket purchasing agreement a contractor must give how many days written notice to the government?

    • A.

      1 day

    • B.

      10 days

    • C.

      30 days

    • D.

      90 days

    Correct Answer
    C. 30 days
    Explanation
    In order to cancel a blanket purchasing agreement, a contractor must give 30 days written notice to the government. This allows the government enough time to make alternative arrangements and ensure a smooth transition. Giving a shorter notice period could disrupt the government's procurement process and cause inconvenience. Conversely, giving a longer notice period may unnecessarily delay the cancellation process. Therefore, 30 days is considered an appropriate timeframe for both parties to adjust and plan accordingly.

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  • 21. 

    (403) Calls placed against a prepriced blanket purchase agreement

    • A.

      Must contain clauses

    • B.

      Do not require funding

    • C.

      May only be placed orally

    • D.

      Must be placed by an authorized caller.

    Correct Answer
    D. Must be placed by an authorized caller.
    Explanation
    The correct answer is "must be placed by an authorized caller." This is because a prepriced blanket purchase agreement is a contract between a buyer and a seller that establishes pricing for future purchases. In order to ensure that the agreement is properly executed and the terms are followed, only authorized callers are allowed to place calls against the agreement. This helps to maintain control and accountability in the purchasing process.

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  • 22. 

    (404) What action must a contracting officer (CO) take when a late proposal is received?

    • A.

      Designate the offer as nonresponsive

    • B.

      Eliminate the offeror from the competitive range

    • C.

      Provide a notice of late receipt and indicate whether or not the offer will be considered

    • D.

      Disregard the proposal and provide a notice to unsuccessful offerors letter after an award is made

    Correct Answer
    C. Provide a notice of late receipt and indicate whether or not the offer will be considered
    Explanation
    When a contracting officer (CO) receives a late proposal, they must provide a notice of late receipt. This notice should indicate whether or not the offer will be considered. This allows the CO to inform the offeror of the late submission and gives them the opportunity to decide whether or not to consider the proposal. It ensures transparency and fairness in the evaluation process.

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  • 23. 

    404) Can a proposal be withdrawn at any time before award?

    • A.

      Yes, by written notice at any time before award

    • B.

      No, the proposal is retained with the contract file

    • C.

      No, once submitted, the proposal will be opened at closing

    • D.

      Yes, at any time before award, provided the contracting officer writes a determination and finding (D&F).

    Correct Answer
    A. Yes, by written notice at any time before award
    Explanation
    A proposal can be withdrawn at any time before award by providing written notice. This means that if a bidder decides to retract their proposal, they can do so by notifying the relevant parties in writing. This allows for flexibility and ensures that bidders have the option to change their minds or make adjustments to their proposals if necessary. It also allows the contracting officer to keep track of any changes or updates to the proposals before making a final decision on the award.

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  • 24. 

    (405) One indicator of an offeror’s ability to perform the contract is

    • A.

      By evaluating past performance

    • B.

      The relative size of the company

    • C.

      By conducting interviews with offerors

    • D.

      By reviewing the offeror’s financial records

    Correct Answer
    A. By evaluating past performance
    Explanation
    Evaluating past performance is an indicator of an offeror's ability to perform the contract because it allows the contracting party to assess the offeror's track record in similar projects or contracts. By reviewing past performance, the contracting party can determine if the offeror has successfully completed similar contracts, met deadlines, and delivered satisfactory results. This information provides valuable insights into the offeror's capabilities, reliability, and overall performance, helping the contracting party make an informed decision about awarding the contract.

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  • 25. 

    (405) Relevancy may be used in a past performance evaluation to

    • A.

      Validate small business size status

    • B.

      Measure similarities in contract efforts

    • C.

      Determine an offeror’s current workload

    • D.

      Measure time that has elapsed since the referenced past performance occurred

    Correct Answer
    B. Measure similarities in contract efforts
    Explanation
    In a past performance evaluation, relevancy may be used to measure similarities in contract efforts. This means that the evaluation will assess how closely aligned the past performance is to the current contract requirements. By measuring the similarities, the evaluation can determine if the offeror has relevant experience and expertise in carrying out similar contract efforts. This information is important in evaluating the offeror's capability to successfully perform the current contract.

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  • 26. 

    (405) When determining which offerors to include in the competitive range, the contracting officer

    • A.

      Excludes the bottom 10% of the offerors

    • B.

      Only includes the top 10% of the offerors

    • C.

      Includes all of the most highly rated proposals

    • D.

      Includes all offerors who are technically acceptable

    Correct Answer
    C. Includes all of the most highly rated proposals
    Explanation
    The correct answer is "includes all of the most highly rated proposals." When determining which offerors to include in the competitive range, the contracting officer includes all of the most highly rated proposals. This means that only the proposals that have received the highest ratings during the evaluation process will be considered for further negotiation and potential award of the contract. Excluding the bottom 10% of the offerors or only including the top 10% would limit the number of proposals considered, while including all offerors who are technically acceptable would not necessarily take into account the quality or rating of the proposals.

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  • 27. 

    (405) What action is appropriate when the contracting officer decides that a proposal should not be included in the competitive range?

    • A.

      Begin negotiations with the offeror

    • B.

      Request the offeror clarify its proposal

    • C.

      Allow the offeror one more chance to revise its proposal

    • D.

      Eliminate it from award consideration and notify the offeror

    Correct Answer
    D. Eliminate it from award consideration and notify the offeror
    Explanation
    When the contracting officer decides that a proposal should not be included in the competitive range, the appropriate action is to eliminate it from award consideration and notify the offeror. This means that the proposal will not be further considered for the contract, and the offeror will be informed of this decision. This allows the offeror to focus on other opportunities and ensures transparency in the selection process.

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  • 28. 

    (405) When may an offeror be permitted to revise its proposal?

    • A.

      After conducting fact finding

    • B.

      At the conclusion of discussions

    • C.

      After exclusion from the competitive range

    • D.

      In order to make an unacceptable proposal acceptable

    Correct Answer
    B. At the conclusion of discussions
    Explanation
    An offeror may be permitted to revise its proposal at the conclusion of discussions. This is because discussions allow the offeror to engage in negotiations with the contracting officer and make changes to its proposal based on the feedback received. It provides an opportunity for the offeror to address any weaknesses or deficiencies in its initial proposal and improve its chances of being selected. Therefore, at the conclusion of discussions, the offeror may revise its proposal to enhance its competitiveness.

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  • 29. 

    (406) Which price analysis technique makes comparisons based on factors such as price per square foot?

    • A.

      Rough estimation

    • B.

      Cost estimating affiliation

    • C.

      Cost estimating relationships

    • D.

      Parallel estimating relationships

    Correct Answer
    C. Cost estimating relationships
    Explanation
    Cost estimating relationships is the correct answer because this technique involves making comparisons based on factors such as price per square foot. Cost estimating relationships allow for a more accurate estimation of costs by identifying relationships between cost drivers and the resulting costs. By using factors like price per square foot, this technique helps in estimating costs based on similar projects or historical data.

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  • 30. 

    (406) Price analysis is preferred over cost analysis because it

    • A.

      Is less time-consuming

    • B.

      Evaluates separate cost elements

    • C.

      Normally determines price reasonableness

    • D.

      Requires little or no comparison of proposed prices

    Correct Answer
    A. Is less time-consuming
    Explanation
    Price analysis is preferred over cost analysis because it is less time-consuming. Price analysis involves comparing the proposed prices of different suppliers or vendors to determine the reasonableness of the price. This can be done by evaluating market prices, historical prices, or obtaining price quotes from multiple suppliers. On the other hand, cost analysis requires a more in-depth examination of the cost elements that make up the proposed price, such as labor, materials, overhead, and profit. This analysis can be more time-consuming as it involves gathering and analyzing detailed cost data. Therefore, price analysis is preferred when time is limited and a quick assessment of price reasonableness is needed.

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  • 31. 

    (406) When using an independent government estimate (IGE) to conduct price analysis, the IGE must

    • A.

      Be an exact match to the offeror’s proposal.

    • B.

      Include a basis for the estimate using validated data

    • C.

      Be revised to account for differences the government did not account for

    • D.

      Only be adjusted when differing from an offeror’s price by 50% or more

    Correct Answer
    B. Include a basis for the estimate using validated data
    Explanation
    When using an independent government estimate (IGE) to conduct price analysis, it is important to include a basis for the estimate using validated data. This means that the estimate should be supported by reliable and verified information, ensuring that it is accurate and credible. Including a basis for the estimate using validated data helps to ensure transparency and fairness in the procurement process, as it provides a clear justification for the estimated cost. It allows for a more objective evaluation of the offeror's proposal and helps to identify any discrepancies or inconsistencies in the pricing.

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  • 32. 

    (406) When analyzing price which of the following is not a condition for using previously proposed prices?

    • A.

      There has not been a significant time lapse

    • B.

      The reasonableness of the price is not uncertain

    • C.

      The terms and conditions are not significantly different

    • D.

      The contractor has not been debarred, suspended, or rendered ineligible

    Correct Answer
    D. The contractor has not been debarred, suspended, or rendered ineligible
    Explanation
    This answer states that the condition for using previously proposed prices is that the contractor has not been debarred, suspended, or rendered ineligible. This means that if the contractor has been debarred, suspended, or rendered ineligible, their previously proposed prices cannot be considered when analyzing price. The other conditions listed in the question (time lapse, reasonableness of price, and terms and conditions) are all conditions that must be met in order to use previously proposed prices.

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  • 33. 

    (406) Cost analysis provides the basis for

    • A.

      Awarding simplified acquisitions

    • B.

      Using cost estimating relationships

    • C.

      Determining contractor responsibility

    • D.

      Negotiating contract pricing arrangements

    Correct Answer
    D. Negotiating contract pricing arrangements
    Explanation
    Cost analysis is the process of evaluating and comparing the costs of different options or alternatives. In the context of this question, cost analysis is used to determine and negotiate contract pricing arrangements. This means that by conducting a cost analysis, the parties involved can assess the costs associated with a particular contract and negotiate the pricing terms accordingly. This helps in ensuring that the contract is mutually beneficial and fair for both the buyer and the seller.

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  • 34. 

    (406) What factors are considered in determining whether a cost is allowable?

    • A.

      Cost and pricing data are certified

    • B.

      Costs are not allocable to the contract

    • C.

      Standards established by Cost Accounting Standard Board

    • D.

      Rough yardsticks (such as dollars per pound) have been applied

    Correct Answer
    C. Standards established by Cost Accounting Standard Board
    Explanation
    The factors considered in determining whether a cost is allowable include whether cost and pricing data are certified, whether costs are allocable to the contract, and whether standards established by the Cost Accounting Standard Board have been followed. Additionally, rough yardsticks such as dollars per pound may be applied to assess the reasonableness of the cost.

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  • 35. 

    (406) Which is a direct cost?

    • A.

      The salary of a management official

    • B.

      The cost of tools to cut and assemble wood

    • C.

      The cost of insurance for vehicles used on the job

    • D.

      The cost of doors for the building being constructed

    Correct Answer
    D. The cost of doors for the building being constructed
    Explanation
    The cost of doors for the building being constructed is a direct cost because it can be specifically traced to the construction project. It is a cost that is directly associated with the production of the building and is necessary for its completion. In contrast, the salary of a management official, the cost of tools, and the cost of insurance are indirect costs as they are not directly tied to the construction project itself.

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  • 36. 

    (406) What type of indirect cost is over and above allowable costs?

    • A.

      Profit.

    • B.

      Overhead.

    • C.

      Material costs

    • D.

      General and administrative (G&A) expenses

    Correct Answer
    A. Profit.
    Explanation
    Profit is the type of indirect cost that is over and above allowable costs. Allowable costs refer to the costs that are considered acceptable and can be reimbursed or included in a contract. Profit, on the other hand, is the amount of money a business earns after deducting all its expenses, including allowable costs. It is the excess amount that a business aims to make as a return on its investment and as a reward for taking on risks. Therefore, profit is not considered an allowable cost and is separate from other indirect costs such as overhead, material costs, and general and administrative expenses.

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  • 37. 

    (406) An offeror is required to submit and certify cost or pricing data for a

    • A.

      $700,000 commercial purchase

    • B.

      $750,000 non-commercial item acquisition

    • C.

      $1M competitive construction contract

    • D.

      $5M acquisition of a service that includes prices established by law

    Correct Answer
    B. $750,000 non-commercial item acquisition
    Explanation
    An offeror is required to submit and certify cost or pricing data for a $750,000 non-commercial item acquisition. This means that for this particular acquisition, the offeror must provide accurate and detailed information regarding the cost or pricing of the non-commercial item. This data is necessary to ensure that the price being offered is fair and reasonable.

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  • 38. 

    (406) An example of overhead costs is

    • A.

      Legal fees.

    • B.

      Officer supplies

    • C.

      Payroll insurance

    • D.

      Executive salaries

    Correct Answer
    C. Payroll insurance
    Explanation
    Payroll insurance is considered an example of overhead costs because it is an expense that is indirectly related to the production of goods or services. It is not directly tied to the production process but is necessary for the smooth functioning of the business. Overhead costs, such as payroll insurance, are incurred regardless of the level of production and are typically fixed expenses that need to be paid regularly.

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  • 39. 

    (406) Certified cost or pricing data is required

    • A.

      Only from prime contractors

    • B.

      Immediately upon contract award

    • C.

      For all contract modifications regardless of dollar amount

    • D.

      For termination settlements exceeding the Truth In Negotiations Act (TINA) threshold

    Correct Answer
    D. For termination settlements exceeding the Truth In Negotiations Act (TINA) threshold
    Explanation
    Certified cost or pricing data is required for termination settlements exceeding the Truth In Negotiations Act (TINA) threshold. This means that when the settlement amount exceeds the TINA threshold, prime contractors are required to provide certified cost or pricing data. This data ensures that the termination settlement is based on accurate and reliable cost information, promoting transparency and fairness in the negotiation process.

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  • 40. 

    (406) Which of the following regarding other than cost or pricing data is true?

    • A.

      It is mandatory for sole source acquisitions

    • B.

      It is never used in acquisitions for commercial items.

    • C.

      The offeror is always allowed to use its own format

    • D.

      It may only be used to the extent necessary to determine price reasonableness

    Correct Answer
    D. It may only be used to the extent necessary to determine price reasonableness
  • 41. 

    (406) When requesting price information other than cost or pricing data

    • A.

      Ensure offerors certify the data

    • B.

      Use the data to negotiate lower prices

    • C.

      Use the data for cost realism analysis

    • D.

      Make comparisons with each offer in the competitive range

    Correct Answer
    C. Use the data for cost realism analysis
    Explanation
    When requesting price information other than cost or pricing data, it is important to use the data for cost realism analysis. Cost realism analysis is a process used to evaluate the reasonableness and realism of proposed costs. It involves examining the data provided by offerors to ensure that their proposed costs are reasonable and achievable. By using the data for cost realism analysis, the buyer can assess the accuracy and validity of the proposed prices and make informed decisions during the negotiation process.

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  • 42. 

    (407) Which of the following exchanges allow for negotiating with offerors and allows for revising proposals?

    • A.

      Discussions.

    • B.

      Fact finding

    • C.

      Clarifications.

    • D.

      Communications.

    Correct Answer
    A. Discussions.
    Explanation
    Discussions allow for negotiating with offerors and revising proposals. During discussions, the procuring agency can engage in a back-and-forth dialogue with offerors to clarify and refine aspects of their proposals. This allows for a more comprehensive evaluation process and gives offerors an opportunity to improve their proposals based on the agency's feedback. Fact finding, clarifications, and communications may involve information gathering or clarification but do not necessarily involve negotiation or proposal revision.

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  • 43. 

    (407) A contracting officer must use discussions to

    • A.

      Obtain the lowest possible price

    • B.

      Discuss every area where proposals can be improved

    • C.

      Allow offerors to respond to adverse past performance information

    • D.

      Identify proposal strengths for each offeror within the competitive range

    Correct Answer
    C. Allow offerors to respond to adverse past performance information
    Explanation
    The correct answer is "allow offerors to respond to adverse past performance information." Discussions are used by contracting officers to provide offerors with the opportunity to clarify or improve their proposals. In this case, the purpose of the discussions is to allow offerors to address any adverse past performance information that may have been identified during the evaluation process. This ensures that offerors have a chance to explain or provide additional information regarding their past performance, which may impact the overall evaluation and selection process.

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  • 44. 

    (407) What helps the contracting officer negotiate a fair and reasonable price when information at the buying office is inadequate?

    • A.

      Audit report

    • B.

      Field pricing support

    • C.

      Fact-finding meeting

    • D.

      Prenegotiation objective

    Correct Answer
    B. Field pricing support
    Explanation
    Field pricing support helps the contracting officer negotiate a fair and reasonable price when information at the buying office is inadequate. Field pricing support provides the contracting officer with additional expertise and resources to gather and analyze pricing data from external sources. This helps in assessing the reasonableness of the proposed price and negotiating a fair deal with the contractor. By leveraging field pricing support, the contracting officer can ensure that the price negotiated aligns with market conditions and is fair to both parties involved.

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  • 45. 

    (407) When developing prenegotiation positions in noncompetitive acquisitions

    • A.

      Remain firm with the government’s price objective

    • B.

      Begin negotiations with the government’s objective

    • C.

      Establish minimum, objective, and maximum price positions.

    • D.

      Base the government’s position on the amount of funding available

    Correct Answer
    C. Establish minimum, objective, and maximum price positions.
    Explanation
    When developing prenegotiation positions in noncompetitive acquisitions, it is important to establish minimum, objective, and maximum price positions. This allows for a clear understanding of the price range that is acceptable and helps in negotiating a favorable outcome. By setting these positions, the negotiator can have a clear framework to work within and can ensure that they are not compromising on their objectives. It also provides flexibility during negotiations to make adjustments within the established range based on the specific circumstances of the acquisition.

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  • 46. 

    (407) How should the physical environment enhance win/win outcomes?

    • A.

      Facilitates your side “buying” a position

    • B.

      Makes the contractor feel as comfortable as possible

    • C.

      Gives other side the perception of being treated fairly

    • D.

      Arranging the conference room gives you a psychological advantage

    Correct Answer
    C. Gives other side the perception of being treated fairly
    Explanation
    The physical environment should enhance win/win outcomes by giving the other side the perception of being treated fairly. This means creating a space that is neutral, comfortable, and conducive to open communication and collaboration. When both parties feel that they are being treated fairly, they are more likely to engage in productive discussions and work towards mutually beneficial solutions.

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  • 47. 

    (407) Many negotiators are unable to make material concessions because

    • A.

      They use concession wisely and skillfully

    • B.

      They exercise patience and good faith discussions

    • C.

      Their opening position is too close to their expectation level

    • D.

      They walk away from bad deals or return to negotiations if a better deal could not be obtained

    Correct Answer
    C. Their opening position is too close to their expectation level
    Explanation
    Many negotiators are unable to make material concessions because their opening position is too close to their expectation level. This means that they start the negotiation with a position or demand that is already very close to what they ultimately want to achieve. As a result, they have little room to make any significant concessions during the negotiation process. This can make it difficult for them to reach a mutually beneficial agreement with the other party, as they are not willing to move far enough from their initial position.

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  • 48. 

    (407) Deadlocks in negotiations

    • A.

      Are not always avoidable

    • B.

      Only occur when parties are unfair

    • C.

      Only occur when parties are unreasonable

    • D.

      Always signify the end of negotiation attempts

    Correct Answer
    A. Are not always avoidable
    Explanation
    Deadlocks in negotiations are not always avoidable because they can occur due to various reasons such as conflicting interests, lack of trust, or power imbalances between the parties involved. Sometimes, despite the best efforts of negotiators, reaching a mutually acceptable agreement becomes difficult or even impossible. Therefore, it is important to acknowledge that deadlocks can happen and to explore alternative strategies such as seeking mediation or finding creative solutions to move past the impasse.

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  • 49. 

    (407) What is the best sequence for negotiating areas of disagreement?

    • A.

      No one approach is better than another

    • B.

      Start negotiating on secondary issues first

    • C.

      Start negotiating issues of greatest importance

    • D.

      Government negotiates the contractor’s demands first

    Correct Answer
    A. No one approach is better than another
    Explanation
    Negotiating areas of disagreement can vary depending on the specific situation and the parties involved. There is no one-size-fits-all approach that is universally better than another. The best sequence for negotiating areas of disagreement will depend on factors such as the nature of the disagreement, the priorities of the parties involved, and the desired outcome. Therefore, it is important to be flexible and adaptable in choosing the most appropriate approach for each specific negotiation.

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  • 50. 

    (407) A certificate of current cost or pricing data must be submitted

    • A.

      With an offeror’s initial proposal

    • B.

      Immediately upon contract award

    • C.

      With other than cost or pricing data

    • D.

      Using the exact wording prescribed by the FAR

    Correct Answer
    D. Using the exact wording prescribed by the FAR
    Explanation
    The correct answer is "using the exact wording prescribed by the FAR." This means that when submitting a certificate of current cost or pricing data with an offeror's initial proposal, it must be done using the exact wording as specified in the Federal Acquisition Regulation (FAR). The FAR provides guidelines and instructions for federal government contracting, and adherence to its prescribed wording ensures consistency and compliance in the submission of cost or pricing data.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 16, 2013
    Quiz Created by
    20CONS
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