Pre-Course Workbook

Question 1

Cost realism analysis FAR citation & definition

Answer 1

15.404-1(d)

Question 2

Unbalanced pricing FAR citation & definition

Answer 2

5.404-1(g)

Question 3

Technical analysis FAR citation & definition

Answer 3

15.404-1(e)-states that technical analysis should be requested to analyze types and quantities of labor. In conjunction with the cost analysis, a technical analysis will be completed.

Question 4

Cost analysis FAR citation & definition

Answer 4

15.404-1(c)-Cost analysis is the review and evaluation of any separate cost elements and profit or fee in an offeror’s or contractor’s proposal, as needed to determine a fair and reasonable price or to determine cost realism, and the application of judgment to determine how well the proposed costs represent what the cost of the contract should be, assuming reasonable economy and efficiency.

Question 5

Price analysis FAR citation & definition

Answer 5

15.404-1(b)-states a price analysis should be used to verify that the overall price offered is fair and reasonable.

Question 6

Unit prices

Answer 6

FAR 15.404-1(f)-requires the use of the unit prices technique when the services aren’t commercial, or prices aren’t based on competition.

Question 7

Price analysis shall be used when?

Answer 7

FAR 15.404-1(a)(2) states a price analysis shall be used when CCPD are not required.

Question 8

FAR 15.404-1(g)(2) requires unbalanced pricing be performed on_____________________. Unbalanced prices may increase performance risk and could result in payment of unreasonably high prices.

Answer 8

Separately priced line items.

Question 9

FAR 15.404-1(d) requires that ________________ be performed on all cost reimbursement contracts.

Answer 9

cost realism analysis

Question 10

Review and Justification of Pass-Through Contracts: FAR 15.404-1(h) requires a review and justification for pass-through when the conditions in the prescription for clause FAR 52.215-22 are met.

Answer 10

More than 70 percent; dollar over threshold 2M; small, disadvantaged businesses are exempt.

Question 11

The Sherman Act___________.

Answer 11

prohibits any agreement among competitors to fix prices, rig bids, or engage in other anticompetitive activity.

Question 12

Conditions Favorable to Collusion

Answer 12

few sellers, product is standardized, repetitive purchases,

Question 13

Define reasonable

Answer 13

Per FAR 31.201-3(a), “A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person in the conduct of competitive business.”

Question 14

List the 7 proposal analysis techniques

Answer 14

1. Price analysis
2. Cost analysis
3. Cost realism analysis
4. Technical analysis
5. Unit prices
6. Unbalanced pricing
7. Review and justification of pass-through contract

Question 15

Exceptions for CCPD

Answer 15

The threshold for obtaining certified cost or pricing data is $750,000 for prime contracts awarded before July 1, 2018,

1. adequate price competition
2. prices agreed upon are based on prices set by law or regulation;
3. a commercial item is being acquired;
4. when a waiver has been granted - The head of the contracting activity (HCA) may, without power of delegation, waive the requirement for submission of certified cost or pricing data in exceptional cases;
5. 2 million for prime contracts awarded on or after July 1, 2018.
6. The exceptions in 15.401-1(b) are as follows:

–when modifying a contract or subcontract for commercial items