CON 3990V Practice Questions with
100% Correct Answers
What is the key difference between cost analysis and price analysis?
1. Cost analysis evaluates individual cost elements, while price analysis compares
overall prices
2. Price analysis is only used for commercial items, while cost analysis is for services
3. Cost analysis is optional, while price analysis is mandatory
4. Price analysis requires certified cost or pricing data, while cost analysis does not -
Answer- 1. Cost analysis evaluates individual cost elements, while price analysis
compares overall prices
Which of the following best describes "profit" in federal contracting?
1. A fixed percentage added to all contracts
2. The amount negotiated as fee for the contractor's work, considering risk and
performance
3. Always capped at 10% of total costs
4. Only applicable to commercial item acquisitions - Answer- 2. The amount negotiated
as fee for the contractor's work, considering risk and performance
What is the primary purpose of an Independent Government Cost Estimate (IGCE)?
1. To provide a benchmark for evaluating contractor proposals
2. To disclose the government's budget to contractors
3. To replace the need for cost or price analysis
4. To determine the contractor's actual incurred costs - Answer- 1. To provide a
benchmark for evaluating contractor proposals
Which FAR part primarily governs cost principles for contracts with commercial
organizations?
1. FAR Part 15
2. FAR Part 16
3. FAR Part 31
4. FAR Part 52 - Answer- 3. FAR Part 31
A vendor claims their $1.2M software license is a commercial item and refuses cost
data. Market research shows similar products at $800K-$1M. What should you do?
1. Accept the $1.2M price—commercial items are exempt from TINA.
2. Require cost data—the price is above market.
3. Negotiate to $1M using market research.
,4. Cancel the procurement. - Answer- 3. Negotiate to $1M using market research.
During pre-award cost analysis, you notice a contractor included $50,000 for employee
bonuses in their proposed costs. The bonuses are tied to company-wide performance,
not the specific contract. How should you treat this cost?
1. Allow it - Bonuses are always allowable under FAR Part 31.
2. Disallow it - Bonuses must be directly related to the contract (FAR 31.205-6).
3. Split the cost 50/50 between the government and contractor.
4. Request a waiver from the Head of Contracting Activity (HCA). - Answer- 2. Disallow
it - Bonuses must be directly related to the contract (FAR 31.205-6).
After awarding a $3M sole-source contract, you discover the contractor withheld data
showing their labor rates were $5/hour lower than proposed. What remedy does the
government have?
1. Reduce the contract price by the overstated amount + interest.
2. Terminate the contract for default.
3. No action—the contractor's mistake is their problem.
4. Report the issue but take no financial action. - Answer- 1. Reduce the contract price
by the overstated amount + interest.
Your IGCE for a construction project is $10M. The sole bid is $15M from a qualified
contractor. Market research supports the IGCE. What's the best course of action?
1. Award at $15M—the contractor knows best.
2. Reject the bid and rebid—the price is unreasonable.
3. Negotiate downward using the IGCE as leverage.
4. Switch to a Cost-Reimbursement contract. - Answer- 3. Negotiate downward using
the IGCE as leverage.
Which of the following would be considered an allowable cost under FAR Part 31?
1. Entertainment expenses for contractor employees
2. A reasonable salary for a project manager working on the contract
3. Lobbying costs to influence federal contracting decisions
4. Fines and penalties for regulatory violations - Answer- 2. A reasonable salary for a
project manager working on the contract
When is the SF 1449 primarily used?
1. For the acquisition of construction services over $2 million.
2. For soliciting and awarding contracts for commercial items using simplified acquisition
procedures.
3. As the exclusive form for all cost-reimbursement contracts.
4. To request a deviation from the Federal Acquisition Regulation (FAR). - Answer- 2.
For soliciting and awarding contracts for commercial items using simplified acquisition
procedures.
A Contracting Officer needs to change the delivery date in a contract after award. Which
form is most appropriate?
, 1. SF 1449
2. DD Form 1155
3. SF 30
4. OF 347 - Answer- 3. SF 30
How does the DD Form 1155 differ from the OF 347?
1. The DD Form 1155 is used only for classified contracts.
2. The DD Form 1155 is functionally equivalent to the OF 347 but is the preferred form
for use within the DoD.
3. The OF 347 is for services, and the DD Form 1155 is for supplies.
4. The DD Form 1155 is used for contracts, while the OF 347 is only for solicitations. -
Answer- 2. The DD Form 1155 is functionally equivalent to the OF 347 but is the
preferred form for use within the DoD.
What is the primary purpose of the DD Form 254?
1. To specify the contract's funding appropriation.
2. To provide security guidance and classification requirements to a contractor
performing on a classified contract.
3. To document the contractor's cost accounting standards.
4. To initiate a contract closeout. - Answer- 2. To provide security guidance and
classification requirements to a contractor performing on a classified contract.
Who is responsible for the preparation and issuance of the DD Form 254?
1. The Contractor's Facility Security Officer (FSO)
2. The Requiring Activity (or Program Manager) in coordination with the Contracting
Officer.
3. The Defense Counterintelligence and Security Agency (DCSA).
4. The Contracting Officer's Representative (COR). - Answer- 2. The Requiring Activity
(or Program Manager) in coordination with the Contracting Officer.
What is the function of the DD Form 1423?
1. To list all the supplies being delivered under a contract.
2. To specify the data items (e.g., reports, plans) that a contractor is required to deliver
and their specific requirements.
3. To document the inspection and acceptance of supplies.
4. To request a pre-award survey of the contractor. - Answer- 2. To specify the data
items (e.g., reports, plans) that a contractor is required to deliver and their specific
requirements.
You are awarding a new, firm-fixed-price contract for commercial IT software to a small
business. The award will be made using simplified acquisition procedures. Which
combination of forms is most appropriate?
1. SF 1449, with representations and certifications included in Section K.
2. DD Form 1155, with a DD Form 254 attached.
3. SF 1449 and a separately submitted SF 33.
100% Correct Answers
What is the key difference between cost analysis and price analysis?
1. Cost analysis evaluates individual cost elements, while price analysis compares
overall prices
2. Price analysis is only used for commercial items, while cost analysis is for services
3. Cost analysis is optional, while price analysis is mandatory
4. Price analysis requires certified cost or pricing data, while cost analysis does not -
Answer- 1. Cost analysis evaluates individual cost elements, while price analysis
compares overall prices
Which of the following best describes "profit" in federal contracting?
1. A fixed percentage added to all contracts
2. The amount negotiated as fee for the contractor's work, considering risk and
performance
3. Always capped at 10% of total costs
4. Only applicable to commercial item acquisitions - Answer- 2. The amount negotiated
as fee for the contractor's work, considering risk and performance
What is the primary purpose of an Independent Government Cost Estimate (IGCE)?
1. To provide a benchmark for evaluating contractor proposals
2. To disclose the government's budget to contractors
3. To replace the need for cost or price analysis
4. To determine the contractor's actual incurred costs - Answer- 1. To provide a
benchmark for evaluating contractor proposals
Which FAR part primarily governs cost principles for contracts with commercial
organizations?
1. FAR Part 15
2. FAR Part 16
3. FAR Part 31
4. FAR Part 52 - Answer- 3. FAR Part 31
A vendor claims their $1.2M software license is a commercial item and refuses cost
data. Market research shows similar products at $800K-$1M. What should you do?
1. Accept the $1.2M price—commercial items are exempt from TINA.
2. Require cost data—the price is above market.
3. Negotiate to $1M using market research.
,4. Cancel the procurement. - Answer- 3. Negotiate to $1M using market research.
During pre-award cost analysis, you notice a contractor included $50,000 for employee
bonuses in their proposed costs. The bonuses are tied to company-wide performance,
not the specific contract. How should you treat this cost?
1. Allow it - Bonuses are always allowable under FAR Part 31.
2. Disallow it - Bonuses must be directly related to the contract (FAR 31.205-6).
3. Split the cost 50/50 between the government and contractor.
4. Request a waiver from the Head of Contracting Activity (HCA). - Answer- 2. Disallow
it - Bonuses must be directly related to the contract (FAR 31.205-6).
After awarding a $3M sole-source contract, you discover the contractor withheld data
showing their labor rates were $5/hour lower than proposed. What remedy does the
government have?
1. Reduce the contract price by the overstated amount + interest.
2. Terminate the contract for default.
3. No action—the contractor's mistake is their problem.
4. Report the issue but take no financial action. - Answer- 1. Reduce the contract price
by the overstated amount + interest.
Your IGCE for a construction project is $10M. The sole bid is $15M from a qualified
contractor. Market research supports the IGCE. What's the best course of action?
1. Award at $15M—the contractor knows best.
2. Reject the bid and rebid—the price is unreasonable.
3. Negotiate downward using the IGCE as leverage.
4. Switch to a Cost-Reimbursement contract. - Answer- 3. Negotiate downward using
the IGCE as leverage.
Which of the following would be considered an allowable cost under FAR Part 31?
1. Entertainment expenses for contractor employees
2. A reasonable salary for a project manager working on the contract
3. Lobbying costs to influence federal contracting decisions
4. Fines and penalties for regulatory violations - Answer- 2. A reasonable salary for a
project manager working on the contract
When is the SF 1449 primarily used?
1. For the acquisition of construction services over $2 million.
2. For soliciting and awarding contracts for commercial items using simplified acquisition
procedures.
3. As the exclusive form for all cost-reimbursement contracts.
4. To request a deviation from the Federal Acquisition Regulation (FAR). - Answer- 2.
For soliciting and awarding contracts for commercial items using simplified acquisition
procedures.
A Contracting Officer needs to change the delivery date in a contract after award. Which
form is most appropriate?
, 1. SF 1449
2. DD Form 1155
3. SF 30
4. OF 347 - Answer- 3. SF 30
How does the DD Form 1155 differ from the OF 347?
1. The DD Form 1155 is used only for classified contracts.
2. The DD Form 1155 is functionally equivalent to the OF 347 but is the preferred form
for use within the DoD.
3. The OF 347 is for services, and the DD Form 1155 is for supplies.
4. The DD Form 1155 is used for contracts, while the OF 347 is only for solicitations. -
Answer- 2. The DD Form 1155 is functionally equivalent to the OF 347 but is the
preferred form for use within the DoD.
What is the primary purpose of the DD Form 254?
1. To specify the contract's funding appropriation.
2. To provide security guidance and classification requirements to a contractor
performing on a classified contract.
3. To document the contractor's cost accounting standards.
4. To initiate a contract closeout. - Answer- 2. To provide security guidance and
classification requirements to a contractor performing on a classified contract.
Who is responsible for the preparation and issuance of the DD Form 254?
1. The Contractor's Facility Security Officer (FSO)
2. The Requiring Activity (or Program Manager) in coordination with the Contracting
Officer.
3. The Defense Counterintelligence and Security Agency (DCSA).
4. The Contracting Officer's Representative (COR). - Answer- 2. The Requiring Activity
(or Program Manager) in coordination with the Contracting Officer.
What is the function of the DD Form 1423?
1. To list all the supplies being delivered under a contract.
2. To specify the data items (e.g., reports, plans) that a contractor is required to deliver
and their specific requirements.
3. To document the inspection and acceptance of supplies.
4. To request a pre-award survey of the contractor. - Answer- 2. To specify the data
items (e.g., reports, plans) that a contractor is required to deliver and their specific
requirements.
You are awarding a new, firm-fixed-price contract for commercial IT software to a small
business. The award will be made using simplified acquisition procedures. Which
combination of forms is most appropriate?
1. SF 1449, with representations and certifications included in Section K.
2. DD Form 1155, with a DD Form 254 attached.
3. SF 1449 and a separately submitted SF 33.
