CONT 1300 Exam Review Questions
And Answers| Latest Update
Offer
A response to a solicitation that, if accepted, would bind the offeror to perform
the resultant contract.
Two Types of Offers
1. Bid - An offer to perform the work described in a contract at a specified cost.
Government bids are generally cost-specific, based on the cost of labor, materials,
profit, and overhead
2. Proposal - A government proposal, sometimes called a government contract
proposal, is a response written by a private company to a public government
agency for the purchasing of goods or services
Quote
Used to obtain pricing for a specific number of well-defined items (This is a
quotation, not an Offer)
Solicitations
Used in negotiated acquisitions to communicate your requirements to prospective
contractors and to solicit proposals
,The Lowest Price Technically Acceptable (LPTA) includes
1. Evaluation factors and sub factors shall be in the solicitation
2. Based on Lowest Price and Technically Acceptable Offer
3. Solicitations shall specify that award will be made on basis of LPTA
Risk
A measure of future uncertainties in achieving program goals and objectives
within defined cost, schedule, and performance constraints
Key Risk elements of a Contract
Cost, Schedule, and Performance
Cost risk
An escalation of project costs. It is the risk that the project will cost more than the
budget allocated for it. Perhaps the most common project risk, cost risk is due to
poor budget planning, inaccurate cost estimating, and scope creep
Schedule risk
Activities will take longer than expected and is typically the result of poor planning
or unforeseen circumstances.
Performance risk
The risk that the project will fail to produce results consistent with project
specifications.
, Proposal analysis is done by a contracting officer to determine proposed prices
to be ____ and _____ in all contract actions
Fair and Reasonable
Proposal Analysis Techniques
1. Price
2. Cost
3. Cost Realism
4. Technical Analysis
5. Unit Pricing and Unbalanced Pricing
Cost Realism Analysis
The process of independently reviewing and evaluating specific elements of each
offeror's proposed cost estimate to determine whether the estimated proposed
cost elements
Direct Cost
Any cost directly identified with a single, final cost objective
Indirect Cost
Any cost not directly identified with a single, final cost objective, but identified
with two or more final cost objectives or with at least one intermediate cost
objective
And Answers| Latest Update
Offer
A response to a solicitation that, if accepted, would bind the offeror to perform
the resultant contract.
Two Types of Offers
1. Bid - An offer to perform the work described in a contract at a specified cost.
Government bids are generally cost-specific, based on the cost of labor, materials,
profit, and overhead
2. Proposal - A government proposal, sometimes called a government contract
proposal, is a response written by a private company to a public government
agency for the purchasing of goods or services
Quote
Used to obtain pricing for a specific number of well-defined items (This is a
quotation, not an Offer)
Solicitations
Used in negotiated acquisitions to communicate your requirements to prospective
contractors and to solicit proposals
,The Lowest Price Technically Acceptable (LPTA) includes
1. Evaluation factors and sub factors shall be in the solicitation
2. Based on Lowest Price and Technically Acceptable Offer
3. Solicitations shall specify that award will be made on basis of LPTA
Risk
A measure of future uncertainties in achieving program goals and objectives
within defined cost, schedule, and performance constraints
Key Risk elements of a Contract
Cost, Schedule, and Performance
Cost risk
An escalation of project costs. It is the risk that the project will cost more than the
budget allocated for it. Perhaps the most common project risk, cost risk is due to
poor budget planning, inaccurate cost estimating, and scope creep
Schedule risk
Activities will take longer than expected and is typically the result of poor planning
or unforeseen circumstances.
Performance risk
The risk that the project will fail to produce results consistent with project
specifications.
, Proposal analysis is done by a contracting officer to determine proposed prices
to be ____ and _____ in all contract actions
Fair and Reasonable
Proposal Analysis Techniques
1. Price
2. Cost
3. Cost Realism
4. Technical Analysis
5. Unit Pricing and Unbalanced Pricing
Cost Realism Analysis
The process of independently reviewing and evaluating specific elements of each
offeror's proposed cost estimate to determine whether the estimated proposed
cost elements
Direct Cost
Any cost directly identified with a single, final cost objective
Indirect Cost
Any cost not directly identified with a single, final cost objective, but identified
with two or more final cost objectives or with at least one intermediate cost
objective
