Reference no: EM132190344

1. When conducting a Price Analysis, the Contracting Officer does the following:

Compares prices to a known reasonable price, looks at total price, and does not consider profit separately.

Compares prices to a known reasonable price, looks at total price, and evaluates profit.

Looks at detailed cost breakout, analyzes each cost element, and evaluates profit.

Compares prices to a known reasonable price, reviews detailed cost breakouts, and evaluates profit.

2. When using "historical prices paid" for comparison purposes, what should be considered?

All of these.

The degree of competition at the time of prior award and now.

How long ago was the price paid.

Technical and market changes that may affect the price now.

The quantity purchased previously and now.

3. When comparing proposed prices to previous prices paid, the contracting officer should not be concerned with the method used to determine the reasonableness of the previous prices.

True

False

4. The selected contract type should take into consideration the risk each party is assuming and where possible provide incentives for efficient and economical performance.

False

True

5. All companies large and small must have Overhead and General & Administrative Costs?

True

False

6. Price Analysis is strictly an objective endeavor with no subjectivity and never requires the exercise of sound business judgment.

True

False