CLC 222 questions with complete solution latest 2023

CLC 222 questions with complete solution latest 2023Truth 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 T&M contracts provide for acquiring supplies or services on the basis of direct labor hours at specified fixed rates that include: •Wages •Overhead •General and administrative expenses •Profit •Actual costs for materials Time and materials are a hybrid of fixed price and cost-reimbursement contracts. Although it contains fixed prices for wages like a fixed price contract, it is generally considered to be more like a cost reimbursement contract because the contractor can bill for actual hours worked (charged at the fixed hourly rate established in the contract) and actual costs for materials. A T&M contract is only used when it is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence.