Certified Contract Management Associate Practice Test

Price or cost analysis is a part of which life cycle phase of the Contract Management Standard (CMS)?

1. A. Award

2. B. Post-award

3. C. All three phases

4. D. Pre-award

The correct answer is: A. Award

Price or cost analysis plays a crucial role in the pre-award phase of the Contract Management Standard (CMS). During this phase, contract managers evaluate the proposed prices and costs submitted by bidders to ensure they are reasonable, realistic, and aligned with the market. By conducting price or cost analysis, contract managers can assess the financial aspects of proposals before any contract is awarded. This analysis helps in identifying the best value for the organization and plays a vital part in decision-making regarding which vendor to select for the contract. Ensuring the integrity of pricing and cost proposals helps mitigate risks that could arise post-award related to budget overruns or disputes over contracted amounts. Although price or cost analysis is fundamental during the pre-award phase, it can also have implications in the award phase when determining the final terms and conditions. However, it does not primarily fall into the post-award phase, where the focus shifts to contract compliance and performance management, rather than the evaluation of costs associated with proposals.