AAPC Practice Management (PM) Exam 1 (2025)

AAPC Practice Management (PM) Exam 1 (2025) | Complete Study Guide with Verified Questions & Answers Define the Defense Acquisition Workforce Improvement Act (DAWIA) – Answer Established: AC positions, structured approach, standards (certification), training, DAU Identify the three reasons why Congress passed DAWIA and the requirements of the law – Answer Defense systems are complex Defense systems are costly Requires qualified personnel Define the role of the DoD Directors of Acquisition Career Management (DACM). – Answer Establishes and monitors training requirements and DAWIA compliance Projects numbers of individuals requiring training annually Assigns students to required courses (DAU and/or ALU) Certifies that DAWIA standards have been met Gansler Commission – Answer determined that Army contracting in Iraq, Afghanistan, and Kuwait didn’t have enough people, there was too little training, and it was an antiquated system Balances cost, schedule, and performance throughout the life cycle. – Answer Robust Systems Engineering Define the quantitative measures of reliability – Answer Mean, Availability, and Maintainability Integrated Product Team (IPT) concept – Answer adopted from commercial business, intended to streamline the antiquated, stove pipe process, and is composed of stakeholders representing all appropriate functional disciplines to Identify the two basic types of test and evaluation – Answer Developmental and Operational DoD preferred approach for product support. – Answer Performance Based Logistics (PBL), now known as Performance Based Life Cycle Support (PBLCS) Identify the major law directly affecting DoD systems acquisition management concerning Environmental, Safety, & Occupational Health (ESOH) to include NEPA. – Answer Following the Materiel Development Decision (MDD), WHO may authorize entry into the acquisition management system at any point consistent with phasespecific entrance criteria and statutory requirements – Answer MDA Understand the breakdown of who conducts basic research for the DoD – Answer Industry and non profit – 15%; DOD and federal labs 25%; Univ – 60% Identify the three primary risk factors that Program Managers focus on when managing their programs. – Answer Cost Performance Schedule Major Defense Acquisition Programs (MDAPs) are now required by law to have... – Answer a Product Support Manager Identify the five top-level design goals for a producible product – Answer Ease of Fabrication, Ease of Assembly, Multiuse, Minimize number of parts, Maximize number common parts Define supportability and understand its role in acquisition planning – Answer Supportability is the ability of a system’s design to meet an operational need throughout its intended life and at an affordable cost. Define a contract – Answer establishes a legal relationship between two parties; defines the rights and responsibilities of each party: and allows for changes within the terms and conditions of the legal relationship. Six elements of a contract are – Answer Offer, Acceptance, Consideration, Legal and Binding, and Competent Parties -Mutual Assent -Consideration -Capacity -Lawful purpose -Certainty of Terms -Form provided by law Who has the authority to enter into, administer, and/or terminate contracts – Answer The Contracting officer Two types of contracts – Answer fixed price and Cost-reimbursed Two types of contract modifications – Answer bilateral and unilateral What allows the Contracting Officer to make changes within the scope of the contract – Answer The Changes Clause ______ is a change to the contract – Answer Modification ______ is a change to the solicitation – Answer Amendment What type of contracts are a higher risk to the government – Answer Costreimbursed The three reasons for contract termination – Answer convenience, default, and cause Contract closeout occurs after ... – Answer the contract is physically completed Document directing the contractor to make a change prior to agreement on terms and conditions, as authorized by the contract’s Changes clause – Answer A change order Define Termination for Default – Answer the Government is also entitled to reimbursement for expenses incurred as a result of finding another contractor – ex construction of new barracks vs. Paying for soldiers in a hotel The two options for resolving contract disputes are – Answer -Litigation -Alternative Dispute Resolution (ADR) Seven exceptions to full and open competition include: - Answer -Only one responsible source will satisfy agency requirements; -Unusual and compelling urgency; -Industrial mobilization; -International agreement; -Authorized or required by statute; -National security; and -Public interest. Mediation – Answer A neutral third party listens to the issues, helps develop options, and works with the disputing parties to obtain a negotiated settlement Fact-finding – Answer A neutral technical expert renders an advisory decision to both parties based on the facts presented by the disputing parties Non-binding Arbitration – Answer A neutral third party renders a non-binding decision based on evidence presented by disputing parties Identify the three primary organizations that influence the defense acquisition community – Answer The Executive Branch, The Congress, Industry Role of USD (AT&L) – Answer -Is the Defense Acquisition Executive (DAE) -Establishes DoD acquisition policy and procedures -Chairs the Defense Acquisition Board (DAB) -Senior decision authority for program milestone decisions for Major Defense Acquisition Programs (MDAPs) Role of USD Comptroller – Answer Controls the budget and release of funds Role of USD Policy – Answer Responsible for formulating strategic planning guidance during the planning phase of PPBE Role of DCAPE – Answer Provides analysis and advice relative to the Planning, Programming, Budgeting and Execution (PPBE) system cost assessment Role of DOT&E – Answer Provides independent assessment of operational effectiveness and suitability of new weapon systems Identify the three ACAT categories and the two ACAT I weapon system categories – Answer ACAT I, II, III; ACAT IC, ACAT ID Identify the regulation that specifies criteria for ACAT level – Answer DoDI 5000.02 Understand that the ACAT level enables identification of: - Answer -Type of system -Level of management review/decision authority -Applicable program reporting requirements The final ACAT determination is made... – Answer by the MDA at Milestone B Who recommends ACAT designation to the Milestone Decision Authority (MDA) – Answer the sponsor of the Initial Capabilities Document Understand the three key processes that comprise the DoD Decision Support Systems – Answer Joint Capabilities Integration & -Development System (JCIDS), -Defense Acquisition “Management” System (DAS); -Planning, Programming, Budgeting, & Execution (PPBE) Identify the primary objective of the JCIDS process – Answer ensure the capabilities required by the joint Warfighter to successfully execute the missions assigned to them are identified with operational performance criteria Identify the mission and roles of the JROC – Answer Validates and approves “JROC Interest” capability documents; Evaluates cost, schedule, and performance criteria List the key strategic documents that provide the strategic policy guidance to the JCIDS process – Answer -National Security Strategy, -National Defense Strategy, -National Military Strategy, -Joint Operational Concepts DOTMLPF-P – Answer Doctrine, Organization, Training, Materiel, Leadership and education, Personnel, Facilities, and Policy Identify the three steps to the JCIDS process – Answer -Capabilities Based Assessment (CBA) -Documentation of Capability Needs -Review, Validation, and Approval Understand the purpose of the Joint DOTMLPF-P Change Recommendation (DCR) – Answer DCRs represent more refined requirements documents tailored toward a particular non-materiel approach for a capability solution Identify and understand the purpose of the JCIDS requirements lanes – Answer A Capabilities Based Assessment (CBA) may be based on – Answer -An approved Joint Concept -A concept of operations (CONOPS) -An identified operational need Capabilities Development Document – Answer Identifies operational performance attributes necessary to design proposed system Understand the purpose of Low Rate Initial Production (LRIP) – Answer Minimum quantities required to support operational testing and other design validation activities -Establishes an initial production base for the total system -Provides an efficient ramp-up to Full Rate Production (FRP) -Maintains continuity in production Define an acquisition program – Answer A directed, funded effort that provides a new, improved, or continuing... Materiel/Weapon/Information system/Service capability ...in response to an approved need Understand the two primary reasons for developing a new acquisition program – Answer New technology, potential threat Identify the three Science and Technology (S&T) activities – Answer -Advanced Technology Demonstration (ATD) -Joint Capability Technology Demonstration (JCTD) -Joint Warfighting Experiments Understand who conducts basic research for DoD – Answer Industry and non profit 15%; DoD and Federal labs 25%; Universities 60% Identify the purpose for each of the five phases of the Life Cycle Model: MSA – Answer MSA: To assess potential materiel solutions; Conduct Analysis of Alternatives (AoA) Identify the purpose for each of the five phases of the Life Cycle Model: TMRR – Answer TMRR: Determine appropriate technologies; Competitive prototyping; demonstrate critical technologies on representative prototypes; Reduce technology, engineering, integration, and life-cycle cost risk Identify the purpose for each of the five phases of the Life Cycle Model: EMD – Answer EMD: develop, build, and test a product to verify that all operational and derived requirements have been met and to support production and deployment decisions. Identify the purpose for each of the five phases of the Life Cycle Model: P&D – Answer P&D: produce and deliver requirements-compliant products to receiving military organizations Identify the purpose for each of the five phases of the Life Cycle Model: O&S – Answer O&S: Execute the product support strategy, Satisfy materiel readiness and operational support performance requirements, Sustain the system over its life cycle Identify which phase is the most overall expensive of the life cycle phases, and which is the most expensive of the research and developmental phases. – Answer O&S is most expensive overall; EMD is most expensive in R&D The two approaches for the Acquisition Strategy – Answer Single Step and Evolutionary (preferred) Who develops the Acquisition Strategy – Answer The Acquisition Strategy IPT Understand the purpose of the Analysis of Alternatives – Answer illuminates the relative advantages and disadvantages of the alternatives ; Shows sensitivity of each alternative to changes in key assumptions (e.g., threat) or variables (e.g., performance capabilities) Identify who normally prepares an Acquisition Strategy – Answer Acquisition Strategy IPT, with reps from all functional areas Understand that the Acquisition Strategy is due at Milestone A and updated before each milestone review – Answer Understand the concept of international cooperation, as it pertains to the development of the acquisition strategy – Answer Congress requires DoD determine if there are allied nations we can work with What provides mandatory guidance for the operation of the Defense Acquisition System – Answer DoDI 5000.02 Identify the two strategy approaches to full system capability – Answer Evolutionary, single-step Understand that it is mandated, by law (Section 2366b of Title 10, United States Code... – Answer technology in a program must have been demonstrated in a relevant environment to enter Milestone B (TRL 6) Identify what documents guide the MSA phase – Answer Validated ICD and AoA Study Plan Identify the major activities that occur during the EMD phase – Answer Complete HW and SW design -Systematically retire any open risks -Prepare for production and deployment -Establish initial product baseline -Build/test prototypes or first articles to verify compliance with requirements Understand the purpose of the Full Rate Production/Deployment work effort. – Answer Production & deployment completion leading to Full Operational Capability (FOC); Produce and deliver requirements compliant products Understand that the Acquisition Strategy is a business and technical management approach designed to achieve program objectives within the resource constraints imposed – Answer Development (RFP) Release Decision – Answer THE critical decision point in an acquisition program AoA concepts – Answer -study of the operational effectiveness and life-cycle cost of a program’s alternatives -mandatory for all programs -based on information from the ICD We defined the seven types of Costs related to an acquisition program’s life cycle and how they are generated and funded – Answer Development Flyaway Weapon System Procurement Program Acquisition Operating and Support Life-Cycle Identify the three Science and Technology (S&T) research categories – Answer Basic Research -Applied Research -Advanced Technology Development Identify the three S&T activities – Answer -Advanced Technology Demonstrations(ATD) -Joint Capability Technology Demonstrations (JCTD) -Joint Warfighting Experiments (JWE) Identify the role and purpose of a JCTD – Answer Fill the gap between Science and Technology (S&T) and acquisition for the combatant commands (COCOMs) Understand the following Cost As an Independent Variable (CAIV) concepts – Answer -uses cost to make performance tradeoffs that will reduce procurement cost and meet the requirements of the customer -Sets cost objectives that balances mission and out-years resources -Available funds are considered to be an independent (fixed) variable -The best time to reduce life cycle cost is early in the acquisition process The fundamental role of the DoD Science and Technology (S&T) program – Answer enable a technologically superior military force Engineering – Answer Detailed “Bottom-up” analysis of all materials, parts, and labor Goals – Answer may be product, process, and team performance related The performance of the IPT is based on – Answer a solid Team Foundation, Team Principles, Team Processes and Team Dynamics Define IPPD – Answer Integrated Product and Process Development (IPPD) is a management approach that integrates all activities from product concept through production/deployment and support, i.e. “Womb to Tomb” Know the three types of IPTs and their purpose – Answer -Overarching IPTs (OIPTs) – Focus on strategic guidance, program assessment, and issue resolution -Working-level IPTs (WIPTs) – Identify and resolve program issues, determine program status, and seek opportunities for acquisition reform -Program-level IPTs (PIPTs) – Focus on program execution and may include representatives from both government and industry after contract award Effective IPTs are also based on – Answer diligent membership selection and the strength of the IPT is directly related to the members’ overall backgrounds Eight steps for assembling effective IPTs include – Answer Identify the Need for an IPT Organize/Staff the Team Form the Team Establish Team Direction Develop a Plan of Action Execute Control Close-out Recognize the generally accepted four types of IPT decision making techniques – Answer Unanimous, Unilateral, Majority, Consensus IPT Roles and responsibilities based on the individual’s training, experience, capabilities, and workload should be considered – Answer Understand that the performance of the IPT is based on – Answer solid Team Foundation, Team Principles, Team Processes and Team Dynamics List the stages of team development – Answer Forming, Storming, Norming, Performing, Adjourning Define metric and know the three categories of metrics – Answer A composite of meaningful, quantifiable product or process attributes that communicates important information about the product or process (DoD IPPD Handbook) Process, Product, Progress Factors considered in choosing IPT members include – Answer experience, knowledge, and the ability to work with others. There are two general types of issue papers – Answer information papers and decision papers Understand that when using metrics to assess performance, you must – Answer Identify the purpose of the metric -Define what will be measured -Baseline the metric -Initiate process improvement activities as needed Define Budget Authority – Answer authority granted by appropriation law to enter into obligations Define Commitment – Answer administrative reservation of funds Define Obligation – Answer legal reservation of funds Define Expenditure – Answer issuance of a Government check Define Outlay – Answer When check clears the bank, you have an actual outlay of funds Know the difference between expired funds and cancelled funds – Answer Expired funds: funds remain in an “expired account” for 5 years after obligation period ends (still good for outlays) Cancelled funds: at the end of 5 years, those funds are cancelled. Not good for ANYTHING Understand the three major legal provisions that concern funds execution – Answer Anti-deficiency Act-prohibits obligation in excess Misappropriation Act-wrong color money to pay bill Bona Fide Need Rule (also known as the “time statute”)-to be used in current FY, not future Reprogramming – Answer Congress recognizes a DOD method to make limited changes in its appropriated funding Recognize the four reasons that requires prior approval from Congress for reprogramming authority – Answer -Moving funds between appropriations -Increasing quantities of major systems -New starts -Designated special interest items Know how long funds stay in an expired account – Answer 5 years Know that reprogramming permits the use of funds for purposes other than those intended by Congress at the time originally appropriated. – Answer Understand that most reprogramming actions are approved at the Service or agency level using below threshold reprogramming – Answer Understand that realigning funds between activities that are below the level of control for that appropriation category does not require a reprogramming action, and that this type of funds transfer can be approved by the Program Manager – Answer Any remaining outlay requirements after funds have been canceled must be paid for using current year funds – Answer PPBE – Answer Planning, Programming, Budgeting and Executing Purpose of PPBE – Answer resource management system and the primary means for the Secretary of Defense to control allocation of resources Define Appropriation – Answer Means of providing budget authority for program funding Know the five major defense appropriation categories, what they fund, and their obligation periods – Answer -Research, Development, Test, and Evaluation (RDT&E) 2 years -Procurement (Major end items and initial issue of spares) 3 years -Operation and Maintenance (O&M) day to day 1 year -Military Personnel (MILPERS) pay and allowance 1 year -Military Construction (MILCON) 5 years Result of planning efforts by the Joint Staff, OSD, and the Services/Agencies – Answer Planning Phase activities culminate in the publication of the Defense Programming Guidance (DPG) Know the four primary reasons why programs lose funding – Answer -Scarcity of financial resources -Questionable need for the program -Excessive risk -Budget review issues Understand the concept of Continuing Resolution – Answer If Congress is unable to pass one or more appropriations acts by 1 October (the beginning of the fiscal year), it must provide Continuing Resolution Authority (CRA) to prevent agencies whose appropriations have not been passed from shutting down; STOP GAP funding Know the three basic activities that must be completed after the President’s Budget is submitted to Congress – Answer Budget Resolution, Authorization Bill, Appropriation Bill Understand that the Future Years Defense Program (FYDP) is a computerized database used to summarize the – Answer -Force structure -Personnel strength -Financial resources of DoD as the budget is developed and refined The role of the following Congressional Committees during the Congressional Enactment Process (H&S Budget Committee): - Answer Prepare the budget resolution for review, debate and ultimate passage by their respective chambers (sets spending limit, gentleman’s agreement) The role of the following Congressional Committees during the Congressional Enactment Process (H&S Armed Services Committee): - Answer Review the President’s Budget, Hold hearings on DoD budgets, Draft the Defense Authorization Bill (fighting for programs to continue) The role of the following Congressional Committees during the Congressional Enactment Process (H&S Appropriations Committees): - Answer Review President’s Budget, Hold hearings, Draft various Appropriations Bills (actually ties money to authorizations) Understand the difference between the Program Objective Memorandum (POM) and the Budget Estimate Submission (BES). – Answer POM= component level budget (5 years); BES=DOD level budget (1 year) Two exceptions to the Full Funding policy – Answer advance procurement and multiyear procurement DoD uses the ____________ process to identify the fiscal needs of the services and decide how to allocate resources – Answer PPBE Types of funding policies – Answer Incremental Funding Full Funding Annual Funding Define Cost Estimation – Answer A judgment or opinion regarding the cost of an object, commodity, or service Understand that overhead costs, also called burden, are indirect costs that benefit multiple programs or contracts, and therefore cannot feasibly be charged directly to just one – Answer Define Life Cycle Cost – Answer Life Cycle Cost is the total cost to the Government for a system over its entire life, from beginning to end, including Program Acquisition cost, Operating and Support cost, and disposal costs CAIV is an acquisition process intended to integrate proven successful business related practices with promising new DoD initiatives to obtain superior, yet reasonably priced, warfighting capabilities – Answer Understand the relationship between the Life Cycle Cost Categories, as it pertains to the average cost of each category as it relates to the overall program cost for a typical program – Answer Know the two primary purposes of the LCCE – Answer Serve as the cost input for decisions on whether to start, continue, modify, or terminate the development, production, and fielding of a system Provide the basis for budget requests to Congress Understand the purpose of the Cost Analysis Requirements Description (CARD) – Answer Is used to develop the Program Office Estimate (POE), Component Cost Estimate (CCE), and Independent Cost Estimate (ICE). Helps ensure all groups are costing out the same “program.” List and define the four basic methods used to develop cost estimates – Answer Analogy – Comparison of similar systems or components Parametric – Statistical analysis to develop cost/performance relationships Engineering – Detailed “Bottom-up” analysis of all materials, parts, and labor. Actual costs – Extrapolation based on identical, or nearly identical, existing systems Know the three types of acquisition program cost estimates – Answer Program Office Estimate (POE) Component Cost Estimate (CCE) Independent Cost Estimate (ICE) Understand the relationship between the four basic cost estimating methods and the Life Cycle Model – Answer Identify the simplest cost estimating technique; the most accurate method – Answer simplest- Most accurate- actual costs List the two software cost estimate methods – Answer Top-down Delphi (Expert Judgment Method) Define the Learning Curve Theory – Answer The unit theory of the learning curve states that as the quantity of a product produced doubles, the recurring cost per unit decreases at a fixed rate or constant percentage. Understand the role of OSD Cost Assessment and Program Evaluation (CAPE). – Answer Advises the Defense Acquisition Board (DAB) on matters concerning the estimation, review, and presentation of cost analysis. Understand the three primary purposes of Source Selection Planning – Answer – Provide a structured, fair, impartial evaluation of offerors Maximize competition and innovation Select best source The Source Selection Plan – Answer -Describes source selection process for a particular acquisition -Prepared by Program Office; Source Selection IPT -Approved by the SSA Know the two ways to derive greatest overall benefit or “Best Value” IAW FAR 15.101 – Answer Tradeoff Source Selection Process Lowest Price Technically Acceptable (LPTA) Understand that proposal standards – Answer -Must be defined for each factor/sub-factor -Are used to determine whether a proposal fails to meet, meets, or exceeds factor/sub-factor requirements Know the roles and responsibilities of the Source Selection IPT and Source Selection Authority – Answer Source Selection IPT- Develops Source Selection Plan (SSP) Source Selection Authority- Provides oversight of SSEB Selects the contractor whose proposal will be the most advantageous to Government Fact Finding typically includes – Answer Technical, Cost, and Price Analysis Know the difference between the Source Selection Evaluation Board (SSEB) and the Source Selection Advisory Council (SSAC) – Answer Source Selection Evaluation Board (SSEB): -Evaluates each Sub-factor against its standard to derive a rating for each Subfactor -Rolls Sub-factor ratings up to an “average” rating for each Factor -Briefs results to Source Selection Authority Source Selection Advisory Council (SSAC) -Required on solicitations over $100M -Advises SSA -Provides award recommendation to SSA Understand that Source Selection Procedures require standardized rating criteria and descriptions for technical and past performance factors. – Answer Understand that the purpose of the evaluation criteria in the Source Selection Plan is to assist in evaluating how well each offeror’s approach meets RFP requirements; identify strengths and weaknesses in proposals; and distinguish among proposals. – Answer Know when the only time that the evaluation rating guidelines are released to offerors. – Answer unless there is a protest Know that a Source Selection Advisory Council (SSAC) is required on solicitations over what amount? – Answer $100M. The Source Selection IPT develops the Source Selection Plan (SSP). – Answer Once the RFP is released, only the KO can negotiate with the offerors. – Answer Define Negotiations – Answer the process of communicating back and forth between parties searching for a solution that best meets each party’s needs. One indicator of the financial health of an offeror is their – Answer Profitability Ratios The Income Statement shows – Answer the results of the company’s business activities over a period of time, expressed as income.