CON 200 BUSINESS DECISIONS FOR CONTRACTING
UPDATED ACTUAL QUESTIONS WITH CORRECT
ANSWERS
Question 1.
Although undefinitized contract actions (UCAs) may be necessary to support urgent needs,
these actions are not a desirable form of contracting because the government bears the
majority of the cost and risk during the undefinitized period.
ANSWER
True
Question 2.
How does a cost-plus-incentive-fee (CPIF) contract differ from a fixed-price incentive firm (FPIF)
contract?
ANSWER
CPIF contracts do not have a ceiling price
Question 3.
Which of the following is a factor that must be considered when determining the depth and
breadth of acquisition planning that a requirement will demand?
ANSWER
Urgency of need
Question 4.
A tsunami has slammed into Kunsan Air Base, causing extreme damage to the runway. After
preservation of life and limb, it is critical that Kunsan be able to resume its flying mission. You
have been tasked with getting this runway up and running as soon as possible. How can you
best accomplish this objective?
ANSWER
Award an undefinitized contract action in the form of a letter contract
Question 5.
All of the following factors must be considered when determining the depth and breadth of
acquisition planning required; the complexity of the requirement, acquisition history, dollar size
of need.
ANSWER
True
1
, Question 6.
On a Navy ship construction contract, 50 percent of the award fee money, or $28 million, was
based on management criteria that did not directly relate to shipbuilding requirements. What
does the use of such criteria represent?
ANSWER
-DoD's ability to structure the contract in a way that effectively motivates contractors to improve
performance and achieve acquisition outcomes *-DoD's failure to structure the contract in a way that
effectively motivates contractors to improve performance and achieve acquisition outcomes -DoD's
practice of paying the contractor only when acquisition outcomes are achieved -DoD's use of
objective criteria to measure performance under an incentive contract.
Question 7.
One of the key characteristics that differentiates the various types of incentive contracts is
whether or not objective targets can be established for performance. Which incentive type
contract is most appropriate when objective targets for performance can be established?
ANSWER
-Cost-plus-award-fee *-Cost-plus-incentive-fee -Fixed-price award fee -Firm-fixed price
Question 8.
You are planning a solicitation that offers a government property. Identify the item that you will
require a contractor to submit with his/her offer.
ANSWER
-The specific date during which property will be used *-A description of the Property Management
Plan -A statement that property is furnished as is -A Property Control System
Question 9.
You are working on an undefinitized contract action (UCA) for the purchase of cargo hooks for
the CH-47 (NTE) price is $7,000,000. Can you obligate the total amount at time of award? Why
or why not?
ANSWER
-Yes, the regulations allow you to obligate 100% of the NTE price prior to definitization -No, the
regulations only allow you to obligate up -Yes, the regulations allow you to obligate 20 percent of the
NTE price prior to definitization *-No, the regulations only allow you to obligate up to 50 percent of
the estimated definitized contract cost price prior to definitization
Question 10.
As a best practice, when should the small business professional become involved in acquisition
planning?
ANSWER
As early as possible in the procurement process
2
UPDATED ACTUAL QUESTIONS WITH CORRECT
ANSWERS
Question 1.
Although undefinitized contract actions (UCAs) may be necessary to support urgent needs,
these actions are not a desirable form of contracting because the government bears the
majority of the cost and risk during the undefinitized period.
ANSWER
True
Question 2.
How does a cost-plus-incentive-fee (CPIF) contract differ from a fixed-price incentive firm (FPIF)
contract?
ANSWER
CPIF contracts do not have a ceiling price
Question 3.
Which of the following is a factor that must be considered when determining the depth and
breadth of acquisition planning that a requirement will demand?
ANSWER
Urgency of need
Question 4.
A tsunami has slammed into Kunsan Air Base, causing extreme damage to the runway. After
preservation of life and limb, it is critical that Kunsan be able to resume its flying mission. You
have been tasked with getting this runway up and running as soon as possible. How can you
best accomplish this objective?
ANSWER
Award an undefinitized contract action in the form of a letter contract
Question 5.
All of the following factors must be considered when determining the depth and breadth of
acquisition planning required; the complexity of the requirement, acquisition history, dollar size
of need.
ANSWER
True
1
, Question 6.
On a Navy ship construction contract, 50 percent of the award fee money, or $28 million, was
based on management criteria that did not directly relate to shipbuilding requirements. What
does the use of such criteria represent?
ANSWER
-DoD's ability to structure the contract in a way that effectively motivates contractors to improve
performance and achieve acquisition outcomes *-DoD's failure to structure the contract in a way that
effectively motivates contractors to improve performance and achieve acquisition outcomes -DoD's
practice of paying the contractor only when acquisition outcomes are achieved -DoD's use of
objective criteria to measure performance under an incentive contract.
Question 7.
One of the key characteristics that differentiates the various types of incentive contracts is
whether or not objective targets can be established for performance. Which incentive type
contract is most appropriate when objective targets for performance can be established?
ANSWER
-Cost-plus-award-fee *-Cost-plus-incentive-fee -Fixed-price award fee -Firm-fixed price
Question 8.
You are planning a solicitation that offers a government property. Identify the item that you will
require a contractor to submit with his/her offer.
ANSWER
-The specific date during which property will be used *-A description of the Property Management
Plan -A statement that property is furnished as is -A Property Control System
Question 9.
You are working on an undefinitized contract action (UCA) for the purchase of cargo hooks for
the CH-47 (NTE) price is $7,000,000. Can you obligate the total amount at time of award? Why
or why not?
ANSWER
-Yes, the regulations allow you to obligate 100% of the NTE price prior to definitization -No, the
regulations only allow you to obligate up -Yes, the regulations allow you to obligate 20 percent of the
NTE price prior to definitization *-No, the regulations only allow you to obligate up to 50 percent of
the estimated definitized contract cost price prior to definitization
Question 10.
As a best practice, when should the small business professional become involved in acquisition
planning?
ANSWER
As early as possible in the procurement process
2
