ACQ 0061 Independent Government Cost Estimate(IGCE) for Services Acquisition Exam

Which of the following describe why cost estimates are important? (Selecting two that apply)

• They serve as the basis for schedule analysis.

• the cost estimate and its supporting budget are used to help baseline the value of the services provided.

• They are necessary to support analyses, defend program requirements, or choose between proposals.

• They help to ensure traceability of requirements to stakeholders.

  Once fund are_____, they are available for five years for obligation adjustments.

• cancelled

• expired

• committed

• inventoried

  Which of the following represents the four sequential steps included in the Department of Defence’s (DoD’s) internal process that is used to allocate resources to capabilities deemed necessary to accomplish the Department’s mission?

• Planning, Programming, Budgeting, Execution

  A cost is allocable if:

• It is assigned or chargeable to one or more cost objectives

• it is used for a service not specifically identified as a requirement

• The time and money needed to perform the task is in keeping with past performance or based on trustworthy estimates

• More than one cost estimating procedure was used to estimate the cost

Which tab of the Acquisition Requirements Roadmap Tool—Cost Estimation (ARRT-CE) includes fields you will use to enter project-wide standards and rates that are needed to calculate your labor and travel estimates?

•  Requirements

Direct costs are costs that are specifically identified with _______ while indirect costs are costs that can be identified with __________.

 Two or more cost objectives; a particular cost objective  A particular cost objective; two or more cost objectives

 labor; a particular cost objective that is not labor or direct material costs

 A function, organizational subdivision, contract, or other work unit; two or more cost objectives

Which of the following describes the Analogy method of cost estimating?

 A technique using a database of similar services to generate an estimate based on the relationship between cost and service characteristics

 A detailed process that involves associating costs to the lowest levels of definable work within the Work Breakdown Structure (WBS)

 A method that uses cost data from a current services contract to extrapolate the future estimated costs of providing the same service

 A method based on historical data from one or more similar contracts

The Functional Services Manager (FSM) is responsible for establishing cost targets.

The Analogy cost estimating method would best be suited for which of the following?

 When there are relevant examples from other services acquisitions to account for the differences between the new and existing services contracts

 When the intent is to acquire essentially the same services, in the same quantity, at the same level of quality, in the same location, with the same level of competition as was accomplished previously

 When there is an existing, detailed, and accurate database of historical services data on which to conduct regression analysis and correlation analysis

 When there may not be good historical data and the services require a complex mix of labor categories, skill levels, or other costs

The Acquisition Requirements Roadmap Tool—Cost Estimation (ARRT-CE) is located on the Defense Acquisition Guidebook website.

• FALSE

Which of the following describes final rates?

 They include the estimate for costs that will be used to price contracts and contract modifications

 They express the relationship between indirect costs actually incurred and the actual number of dollars or hours in the allocation base for each indirect cost pool  They are used for the recovery of indirect costs (overhead and general and administrative [G&A]) during the corporate fiscal year

 They include estimates that are dependent on the amount of overhead cost incurred by the company