1) A program that wants to reduce the procurement cost of its system by reducing the cost of materials and labor could do so by making use of this type of funding policy exception:
- Multiyear procurement
- Advance procurement
- Services contract crossing fiscal years
- Working Capital Funds
2) Your program plans to acquire a total of 600 end items costing $570 million over a five-year period. The first production lot is planned for FY 2015. The number of items to be procured (not delivered) each year and their estimated cost (in then-year dollars) is shown below:FY Lot Quantity Total Lot Cost FY 2015 50 $70 million FY 2016 100 $110 million FY 2017 150 $135 million FY 2018 150 $130 million FY 2019 150 $125 million
The program office estimates that 10% of each lot's total cost must be requested as advance procurement for components one year in advance for each lot to protect the production schedule. This use of advance procurement has been approved in the program's acquisition strategy.
What is the correct amount to include in your budget request for FY 2015 for this program?
- $70 million for the system line item and $0 million for the advance procurement line item
- $70 million for the system line item and $11 million for the advance procurement line item
- $63 million for the system line item and $11 million for the advance procurement line item
- $63 million for the system line item and $7 million for the advance procurement line
3) Which one of the following best reflects when the Component Cost Estimate (CCE) must be prepared for an ACAT IA program?
- At every milestone and decision review point
- At Milestones B, C, and the Full Rate Production Decision Review
- Only at Program Initiation
- At Milestone A and whenever the Economic Analysis is required/updated
4) What cost estimating technique would be most appropriate for the following situation? A DoD Component is examining alternatives to meet a particular mission need and requires some high-level cost estimates to weigh against operational effectiveness. Only one similar historical system exists for each alternative approach being considered.
- Actual Costs
- Engineering
- Parametric
- Analogy
5) The MALLARD amphibious vehicle program's FY 2017 procurement budget request contains sufficient funds to cover the costs of producing 20 vehicle bodies and propulsion systems which are not considered "long-lead" items. Additional funding is requested in FY 2018 to complete these 20 MALLARDs. This budget request:
- Does not violate the full funding policy because it includes funds for all costs expected to be incurred in FY 2017 and FY 2018
- Violates the full funding policy because the FY 2017 funds requested will not result in complete, usable end items
- Is consistent with the incremental funding policy that applies to Procurement appropriations
- Violates the annual funding policy because the first vehicle on this contract cannot be delivered during FY 2017