CLC 222 Test Questions with 100% Verified
Correct Answers
Truth in Negotiations Act (TINA)
Occurs when the contractor gives false cost and pricing data during negotiations subject.
Defective pricing means the contractor certified to false data. Currently, the TINA threshold
is $750,000. The possibility of defective pricing must be analyzed and substantiated before
the KO takes action.
What are Fixed Price Contracts?
Fixed price contracts provide for a price that is not subject to any adjustment on the basis of
the contractor's cost experienced in performing the contract. A fixed price contract is used
when the risk involved is minimal or can be predicted with an acceptable degree of accuracy.
What are Cost-Reimbursement Contracts?
Cost-reimbursement contracts provide for payment of allowable incurred costs. They
establish:
•An estimate of total cost
•The purpose of obligating funds
•A ceiling that the contractor may not exceed, except at its own risk, without the approval of
the KO
This type of contract is suitable for use only when the uncertainties involved in contract
performance do not permit costs to be estimated with sufficient accuracy to use any type of
fixed price contract.
Time and Materials/Labor Hour Contracts
Correct Answers
Truth in Negotiations Act (TINA)
Occurs when the contractor gives false cost and pricing data during negotiations subject.
Defective pricing means the contractor certified to false data. Currently, the TINA threshold
is $750,000. The possibility of defective pricing must be analyzed and substantiated before
the KO takes action.
What are Fixed Price Contracts?
Fixed price contracts provide for a price that is not subject to any adjustment on the basis of
the contractor's cost experienced in performing the contract. A fixed price contract is used
when the risk involved is minimal or can be predicted with an acceptable degree of accuracy.
What are Cost-Reimbursement Contracts?
Cost-reimbursement contracts provide for payment of allowable incurred costs. They
establish:
•An estimate of total cost
•The purpose of obligating funds
•A ceiling that the contractor may not exceed, except at its own risk, without the approval of
the KO
This type of contract is suitable for use only when the uncertainties involved in contract
performance do not permit costs to be estimated with sufficient accuracy to use any type of
fixed price contract.
Time and Materials/Labor Hour Contracts
