clearly indicate your selected answer by highlighting it. 1. Your organization has a requirement to upgrade the electrical wiring in a previously unused aircraft hangar as part of a base renovation program. The scope considers labor and material for the effort. Assume that you have solicited an electrical contractor to perform the re-wiring task. Electrical diagrams are not available, and the subcontractor will have to submit an estimate without a detailed Statement of Work. Your market research indicates fluctuation in conditions, and capabilities to do this effort. What is the most appropriate contract type to use for this effort? a b c d Firm Fixed Price Fixed Price Level of Effort Fixed Price Incentive Fee Cost Plus 2. When we evaluate the prices of similar items or services, with those in different markets, what pricing strategy is employed? a b c d Buy-in pricing Rule-of-thumb pricing Demand pricing Cost-plus pricing 3. An economic price adjustment clause was included in a two-year contract for 700,000 gallons of fuel at $3.60 per gallon. The Producer Price Index (PPI) for January 2016, the month of the award, is 179. If the PPI for January 2017 is 185, what will the contract price per gallon adjust to for the second year? a b c d $3.59 $3.65 $3.72 $3.76 4. A Small Business Contractor has a goal of contributing $30,000 to his bottom line by producing a line of specialty items. He is estimating his sales at 14,000 to 15,000 units this year. Given the following cost information, what should his minimum selling price be per unit? Fixed costs: Variable costs/unit: Most likely sales: Target Profit: a b c d $ 10,000.00 $ 15.00 15,000 units $ 30,000.00 $8.65 $9.56 $10.20 $17.67 5. You are the contacting specialist helping to form the government estimate for a new security guard contract. Based on the market research data and the information calculated below, which is the BEST Cost Estimating Relationship (CER) to build a government estimate? Contract 1 2 3 Price $4,395,000 $2,001,000 3,500,000 Guard Posts 8 4 6 $ Per Post $549,375.00 $500,250.00 $583,333.33 Hours 600,000 273,500 480,000 $ Per Hour $7.33 $7.32 $7.29 Range $2,001,000$500,250$4,395,000 $583,333.33 Average $5,444,319.44 $7.31 a Dollars per post, because the average of the dollars per post are more tightly clustered than the average of the dollars per hour b Dollars per hour, because the average of the dollars per hour are more loosely clustered than the average of the prices per post c Dollars per post, because the average of the dollars per post are more loosely clustered than the average of the dollars per hour d Dollars per hour, because the averaged of the dollars per hours are more tightly clustered than the average of the dollars per post 6. If an established CER for a selected type of structure is $380 per square foot, and the size of a particular structure is 18,000 square feet, what would a reasonable price estimate for this structure? a. b. c. d. $6,840,000 $6,850,000 $7,000,000 $7,840,000 7. One of the key concepts in regression analysis relates to the independent, or x variable, which will be a measure related to the products being acquired EXCEPT what item below. a. b. c. d. Physical characteristics Performance characteristics Element of cost Post Negotiation Memorandum 8. All of the following are price analysis techniques EXCEPT. a. Comparison to other proposed prices b. Comparison of price obtained through market research c. The review and evaluation of the separate cost elements and profit in an offeror's or contractor's proposal d. Comparison of proposed prices with Government cost estimates 9. Which of the following concepts are commonly used as quantitative techniques for contract pricing? a. b. c. d. Price Indices Cost-Volume-Profit Analysis Regression Analysis All of the above 10. Technical Analysis is used for evaluating the following EXCEPT a. Types and quantities of material proposed and the need for the types and quantities of labor hours and the labor mix b. Any other data that may be pertinent to an assessment of the offeror's ability to accomplish the technical requirements c. Used only on Cost Reimbursement Type Contracts d. Used when the contracting officer wants to determine the need for and the reasonableness of the proposed resources, assuming reasonable economy and efficiency