ACO CORB Exam Questions with 100%
Correct Verified Detailed Answers Latest
Updated Version
Introduction:
This document contains a comprehensive and fully verified set of
exam preparation questions and answers for the Administrative
Contracting Officer (ACO) Contracting Officer's Representative
Board (CORB) exam. It includes detailed and accurate responses
covering critical topics such as business systems, Corrective Action
Reports (CARs), CAFU, CAS compliance, audit procedures, contract
financing, closeout processes, and dispute resolution. Ideal for
candidates seeking up-to-date and thorough coverage aligned with
the latest exam version.
Exam Question and Answer
What should an acceptable CAP address? --- correct answer ---The
cause of the significant deficiency, including milestones to
eliminate the deficiency with target dates for implementation of the
planned action, there should be clear and measureable goals within
the plan
What must be done prior to disapproval of a business system? ---
correct answer ---• talk to F.S to ensure understanding of findings
,• A higher level review by the HQ board of review
• ACO has the final decision
What is a Business System Analysis Summary (BSAS)? --- correct
answer ---The BSAS is an internal document that summarizes a
contractor's business system determination and identifies
deficiencies. It should not be released to a contractor. It should not
declare significant/nonsignificant findings or recommend
disapproval.
Within 90 days of receiving the contractors notification that the
deficiencies have been corrected, what must the contracting officer
do? --- correct answer ---a. Ask the Auditor or F.S. to determine if
all cited significant deficiencies have been resolved
b. Promptly approve a previously disapproved system
c. Discontinue payment withholds (if applicable)
d. Close the Level III or IV car in the CMO CAR log
e. Change the status in the CBAR Etool
Under normal circumstances, what dollar value must a contract
exceed in order to apply a withhold? (FAR 30.604(i) & 30.605(i)) --
- correct answer ---50 million, if the ACO believes it is necessary to
protect the Government's interest, they may implement withholds
on contracts less than $50M as long as they have the applicable
,business system clause and 252.242-7005 with the approval of the
Director or supervisor
What is the definition of significant findings? --- correct answer ---
Significant findings means a shortcoming in the system that
materially affects the ability of the DoD to rely upon information
produced by the system that is need for management purposes. A
level III CAR should be issued. If non-significant, Level I or II CAR
issued, but Business System can still be approved.
It's a systemic problem throughout the entire system that makes
the information produced unreliable to the Federal Government.
Level III CAR requires, Board of Review Panel. Panel ensures
consistency and findings have been fully c
What is the risk when you have a disapproved business system? ---
correct answer ---The risk of a disapproved system is that neither
the Government or the Contractor can rely on the information being
produced by the disapproved system. An example of a risk would be
regarding the property system disapproval. If a contractor is not
adequately tracking property purchased, the contractor could
purchase the property twice, resulting in the property being
purchased twice, which could result in a contract overrun. If there
are deficiencies with estimating it could result in an over or
underpriced contract which could lead to not receiving the ordered
product or the contractor going out of business. Accounting risk is
, not having allowable, allocable or reasonable costs. Resulting in
unallowable costs being billed.
What are the four current Contractor Business System status
options in CBAR etool? --- correct answer ---Approved,
Disapproved, not evaluated, and not applicable
What is a payment withhold and why would it be implemented? ---
correct answer ---In order to implement a withhold DFARS
252.242-7005 and the business system clause has to be included in
the contract. If the ACO issues the final determination with a notice
to withhold payment for significant deficiencies in a contractor
business system, the ACO will withhold 5% of amount due from
progress payments and PBP and direct the contractor to withhold
5% from cost vouchers. If the contractor submits an acceptable CAP
within in 45 days of receipt of a notice to withhold payment, the
CO, in consultation with the auditor or the F.S., determines that the
Contractor is effectively implementing such a plan, the CO will
reduce the withhold to 2%. If however, at any time the CO
determines the Contractor has failed to follow the CAP, the
withhold will return to 5%. All of this should be done in writing.
The ACO shall establish and maintain a business system
withholding tracking worksheet for each contract against which
payments with be withheld. No more than a 10% withhold can be
implemented if 2 or more systems are disapproved. A MOCAS Code
of "U" should be entered into the Special Provisions.
Correct Verified Detailed Answers Latest
Updated Version
Introduction:
This document contains a comprehensive and fully verified set of
exam preparation questions and answers for the Administrative
Contracting Officer (ACO) Contracting Officer's Representative
Board (CORB) exam. It includes detailed and accurate responses
covering critical topics such as business systems, Corrective Action
Reports (CARs), CAFU, CAS compliance, audit procedures, contract
financing, closeout processes, and dispute resolution. Ideal for
candidates seeking up-to-date and thorough coverage aligned with
the latest exam version.
Exam Question and Answer
What should an acceptable CAP address? --- correct answer ---The
cause of the significant deficiency, including milestones to
eliminate the deficiency with target dates for implementation of the
planned action, there should be clear and measureable goals within
the plan
What must be done prior to disapproval of a business system? ---
correct answer ---• talk to F.S to ensure understanding of findings
,• A higher level review by the HQ board of review
• ACO has the final decision
What is a Business System Analysis Summary (BSAS)? --- correct
answer ---The BSAS is an internal document that summarizes a
contractor's business system determination and identifies
deficiencies. It should not be released to a contractor. It should not
declare significant/nonsignificant findings or recommend
disapproval.
Within 90 days of receiving the contractors notification that the
deficiencies have been corrected, what must the contracting officer
do? --- correct answer ---a. Ask the Auditor or F.S. to determine if
all cited significant deficiencies have been resolved
b. Promptly approve a previously disapproved system
c. Discontinue payment withholds (if applicable)
d. Close the Level III or IV car in the CMO CAR log
e. Change the status in the CBAR Etool
Under normal circumstances, what dollar value must a contract
exceed in order to apply a withhold? (FAR 30.604(i) & 30.605(i)) --
- correct answer ---50 million, if the ACO believes it is necessary to
protect the Government's interest, they may implement withholds
on contracts less than $50M as long as they have the applicable
,business system clause and 252.242-7005 with the approval of the
Director or supervisor
What is the definition of significant findings? --- correct answer ---
Significant findings means a shortcoming in the system that
materially affects the ability of the DoD to rely upon information
produced by the system that is need for management purposes. A
level III CAR should be issued. If non-significant, Level I or II CAR
issued, but Business System can still be approved.
It's a systemic problem throughout the entire system that makes
the information produced unreliable to the Federal Government.
Level III CAR requires, Board of Review Panel. Panel ensures
consistency and findings have been fully c
What is the risk when you have a disapproved business system? ---
correct answer ---The risk of a disapproved system is that neither
the Government or the Contractor can rely on the information being
produced by the disapproved system. An example of a risk would be
regarding the property system disapproval. If a contractor is not
adequately tracking property purchased, the contractor could
purchase the property twice, resulting in the property being
purchased twice, which could result in a contract overrun. If there
are deficiencies with estimating it could result in an over or
underpriced contract which could lead to not receiving the ordered
product or the contractor going out of business. Accounting risk is
, not having allowable, allocable or reasonable costs. Resulting in
unallowable costs being billed.
What are the four current Contractor Business System status
options in CBAR etool? --- correct answer ---Approved,
Disapproved, not evaluated, and not applicable
What is a payment withhold and why would it be implemented? ---
correct answer ---In order to implement a withhold DFARS
252.242-7005 and the business system clause has to be included in
the contract. If the ACO issues the final determination with a notice
to withhold payment for significant deficiencies in a contractor
business system, the ACO will withhold 5% of amount due from
progress payments and PBP and direct the contractor to withhold
5% from cost vouchers. If the contractor submits an acceptable CAP
within in 45 days of receipt of a notice to withhold payment, the
CO, in consultation with the auditor or the F.S., determines that the
Contractor is effectively implementing such a plan, the CO will
reduce the withhold to 2%. If however, at any time the CO
determines the Contractor has failed to follow the CAP, the
withhold will return to 5%. All of this should be done in writing.
The ACO shall establish and maintain a business system
withholding tracking worksheet for each contract against which
payments with be withheld. No more than a 10% withhold can be
implemented if 2 or more systems are disapproved. A MOCAS Code
of "U" should be entered into the Special Provisions.
