BSA 118 PRACTICE EXAM 2026–2027
|COMPREHENSIVE CONTRACT ADMINISTRATION
QUESTIONS WITH VERIFIED ANSWERS & DETAILED
RATIONALES | ULTIMATE FEDERAL ACQUISITION
STUDY GUIDE LATEST UPDATE
1. Under FAR Part 42, the contract administration office is responsible for:
a) Awarding new contracts
b) Performing day-to-day contract management functions such as
monitoring performance, approving payments, and ensuring compliance
c) Drafting solicitations
d) Setting small business size standards
b) Performing day-to-day contract management functions such as
monitoring performance, approving payments, and ensuring compliance
Rationale: FAR 42.302 lists contract administration functions, which are
performed by the cognizant contract administration office, often DCMA for
DoD contracts.
2. A Contracting Officer's Representative (COR) is designated to:
a) Sign contract modifications
b) Assist the contracting officer in technical monitoring of contractor
performance
c) Award contracts
d) Issue final decisions on claims
b) Assist the contracting officer in technical monitoring of contractor
performance
Rationale: CORs are appointed to provide technical oversight and
surveillance but lack the authority to bind the government contractually.
,3. Under FAR 46.101, government contract quality assurance (GCQA) is
primarily:
a) A contractor self-certification process
b) Government inspection, testing, and surveillance to ensure supplies and
services conform to contract requirements
c) A financial audit
d) An environmental review
b) Government inspection, testing, and surveillance to ensure supplies
and services conform to contract requirements
Rationale: GCQA ensures that the delivered product or service meets the
contract's quality standards, protecting the government's interest.
4. A bilateral contract modification requires:
a) Only the government's signature
b) Signatures of both the government and the contractor
c) Approval from the GAO
d) A court order
b) Signatures of both the government and the contractor
Rationale: Bilateral modifications reflect mutual agreement, such as
negotiated equitable adjustments or supplemental agreements.
5. Under the standard "Changes" clause, the government may:
a) Terminate the contract at will
b) Unilaterally direct changes within the general scope of the contract
c) Reduce the contract price without negotiation
d) Replace the contractor's management
b) Unilaterally direct changes within the general scope of the contract
Rationale: The Changes clause gives the government the right to order
changes in the work, with the contractor entitled to an equitable
adjustment.
6. An equitable adjustment is intended to:
a) Penalize the contractor for poor performance
b) Compensate the contractor for the cost impact of a government-directed
, change
c) Reduce the contractor's profit
d) Extend the contract indefinitely
b) Compensate the contractor for the cost impact of a government-
directed change
Rationale: The purpose is to place the contractor in the same financial
position it would have been in had the change not occurred.
7. A constructive change occurs when:
a) A formal change order is signed by both parties
b) The government, through its actions or inactions, effectively requires the
contractor to perform work beyond the contract scope
c) The contractor voluntarily improves the work
d) A subcontractor modifies its work
b) The government, through its actions or inactions, effectively requires
the contractor to perform work beyond the contract scope
Rationale: Constructive changes give rise to an equitable adjustment even
without a formal change order.
8. A stop-work order is used to:
a) Terminate the contract for default
b) Temporarily suspend work due to a problem that needs resolution
c) Pay the contractor in full
d) Close out the contract
b) Temporarily suspend work due to a problem that needs resolution
Rationale: FAR 42.13 authorizes the contracting officer to issue a stop-work
order to protect the government's interest while an issue is resolved.
9. Under the "Limitation of Cost" clause (FAR 52.232-20), the contractor must
notify the government when costs are expected to exceed what percentage
of the estimated cost?
a) 50%
b) 75%
c) 85%
, d) 100%
b) 75%
Rationale: This clause provides early warning to the government so that
decisions about additional funding can be made before the ceiling is
reached.
10.Progress payments based on costs are:
a) Advance payments for work not yet performed
b) Reimbursements for allowable costs incurred during contract
performance
c) Performance-based payments
d) Final payments after acceptance
b) Reimbursements for allowable costs incurred during contract
performance
Rationale: Progress payments provide working capital based on actual costs
incurred, and are liquidated from subsequent payments.
11.Performance-based payments (PBPs) under FAR Part 32.10 are tied to:
a) Incurred costs only
b) Achievement of specific, measurable performance milestones
c) The contractor's stock price
d) The number of subcontractors
b) Achievement of specific, measurable performance milestones
Rationale: PBPs are fixed amounts paid upon completion of defined events,
decoupling financing from actual costs.
12.The Contractor Performance Assessment Reporting System (CPARS) is used
to:
a) Award contracts
b) Document contractor performance for use in future source selections
c) Issue payments
d) Manage subcontractors
b) Document contractor performance for use in future source selections
|COMPREHENSIVE CONTRACT ADMINISTRATION
QUESTIONS WITH VERIFIED ANSWERS & DETAILED
RATIONALES | ULTIMATE FEDERAL ACQUISITION
STUDY GUIDE LATEST UPDATE
1. Under FAR Part 42, the contract administration office is responsible for:
a) Awarding new contracts
b) Performing day-to-day contract management functions such as
monitoring performance, approving payments, and ensuring compliance
c) Drafting solicitations
d) Setting small business size standards
b) Performing day-to-day contract management functions such as
monitoring performance, approving payments, and ensuring compliance
Rationale: FAR 42.302 lists contract administration functions, which are
performed by the cognizant contract administration office, often DCMA for
DoD contracts.
2. A Contracting Officer's Representative (COR) is designated to:
a) Sign contract modifications
b) Assist the contracting officer in technical monitoring of contractor
performance
c) Award contracts
d) Issue final decisions on claims
b) Assist the contracting officer in technical monitoring of contractor
performance
Rationale: CORs are appointed to provide technical oversight and
surveillance but lack the authority to bind the government contractually.
,3. Under FAR 46.101, government contract quality assurance (GCQA) is
primarily:
a) A contractor self-certification process
b) Government inspection, testing, and surveillance to ensure supplies and
services conform to contract requirements
c) A financial audit
d) An environmental review
b) Government inspection, testing, and surveillance to ensure supplies
and services conform to contract requirements
Rationale: GCQA ensures that the delivered product or service meets the
contract's quality standards, protecting the government's interest.
4. A bilateral contract modification requires:
a) Only the government's signature
b) Signatures of both the government and the contractor
c) Approval from the GAO
d) A court order
b) Signatures of both the government and the contractor
Rationale: Bilateral modifications reflect mutual agreement, such as
negotiated equitable adjustments or supplemental agreements.
5. Under the standard "Changes" clause, the government may:
a) Terminate the contract at will
b) Unilaterally direct changes within the general scope of the contract
c) Reduce the contract price without negotiation
d) Replace the contractor's management
b) Unilaterally direct changes within the general scope of the contract
Rationale: The Changes clause gives the government the right to order
changes in the work, with the contractor entitled to an equitable
adjustment.
6. An equitable adjustment is intended to:
a) Penalize the contractor for poor performance
b) Compensate the contractor for the cost impact of a government-directed
, change
c) Reduce the contractor's profit
d) Extend the contract indefinitely
b) Compensate the contractor for the cost impact of a government-
directed change
Rationale: The purpose is to place the contractor in the same financial
position it would have been in had the change not occurred.
7. A constructive change occurs when:
a) A formal change order is signed by both parties
b) The government, through its actions or inactions, effectively requires the
contractor to perform work beyond the contract scope
c) The contractor voluntarily improves the work
d) A subcontractor modifies its work
b) The government, through its actions or inactions, effectively requires
the contractor to perform work beyond the contract scope
Rationale: Constructive changes give rise to an equitable adjustment even
without a formal change order.
8. A stop-work order is used to:
a) Terminate the contract for default
b) Temporarily suspend work due to a problem that needs resolution
c) Pay the contractor in full
d) Close out the contract
b) Temporarily suspend work due to a problem that needs resolution
Rationale: FAR 42.13 authorizes the contracting officer to issue a stop-work
order to protect the government's interest while an issue is resolved.
9. Under the "Limitation of Cost" clause (FAR 52.232-20), the contractor must
notify the government when costs are expected to exceed what percentage
of the estimated cost?
a) 50%
b) 75%
c) 85%
, d) 100%
b) 75%
Rationale: This clause provides early warning to the government so that
decisions about additional funding can be made before the ceiling is
reached.
10.Progress payments based on costs are:
a) Advance payments for work not yet performed
b) Reimbursements for allowable costs incurred during contract
performance
c) Performance-based payments
d) Final payments after acceptance
b) Reimbursements for allowable costs incurred during contract
performance
Rationale: Progress payments provide working capital based on actual costs
incurred, and are liquidated from subsequent payments.
11.Performance-based payments (PBPs) under FAR Part 32.10 are tied to:
a) Incurred costs only
b) Achievement of specific, measurable performance milestones
c) The contractor's stock price
d) The number of subcontractors
b) Achievement of specific, measurable performance milestones
Rationale: PBPs are fixed amounts paid upon completion of defined events,
decoupling financing from actual costs.
12.The Contractor Performance Assessment Reporting System (CPARS) is used
to:
a) Award contracts
b) Document contractor performance for use in future source selections
c) Issue payments
d) Manage subcontractors
b) Document contractor performance for use in future source selections
