NCMA Week 7 Contract Life Cycle
Exam Questions and Answers
What is the purpose of source selection? - ANSWER-Determining how a company
wins a contract (5.3.3 Negotiated Source Selection
In all negotiations both the buyer and the seller teams should include which of the
following? - ANSWER-A designated lead negotiator (5.2.2 The Negotiation Team
Why does the CMBOK describe the establishment of negotiation objectives as an
"ongoing" process? - ANSWER-Negotiation objectives may change as
circumstances around the negotiation change (5.2.3 Negotiation Objectives
Expectation damages are monetary damages paid - ANSWER-To place the
aggrieved party in the same position as if the contract had been performed (5.4.1.2
Commercial Contract Disputes
What is the term for a bid that complies in all material aspects with the invitation for
bids? - ANSWER-Responsive (5.3.2 Sealed Bidding
Which of the following takes the lowest precedence when different sections of a
contract conflict with one another? - ANSWER-The specifications (5.4.1.1.4 Extrinsic
Evidence
Dimension Seven Events has a contract with the City of Baltimore for the use of a
public park to present the High Energy Music Festival. Dimension Seven the buyer
has the right under the contract to inspect the festival grounds for any safety
concerns. The City of Baltimore the seller provides reports from its internal city
auditors who deemed the park safe for up to 50,000 attendees. This is a form of
what type of quality assurance? - ANSWER-Indirect observation (6.1.5 Observe and
Monitor Performance
Which of the following is not true about cost or pricing data? - ANSWER-The data
may consist solely of historical accounting information (5.1.3 Certified Cost or Pricing
Data)
Discussions and concurrent actions, prior course of dealing between the parties and
custom and trade usage are examples of what? - ANSWER-Extrinsic evidence
(5.4.1.1.4 Extrinsic Evidence)
For claims greater than $100,000 when must the contractor be given a final
decision? - ANSWER-Within a "reasonable time," provided the contractor is notified
within 60 days of when to expect a decision (6.1.7)
Which of the five contract management domains occurs within the Award phase of
the contract life cycle? - ANSWER-Form contract (5.0 Award)
, Which of the following costs is a direct cost? - ANSWER-A material, such as
plywood, incorporated into an end product (5.1.2 Cost Analysis
What definition for a word or term used in a contract is considered most preferable? -
ANSWER-The definition incorporated in the contract or defined by law (5.4.1.1.3
Defining Key Terms
Which of the following is a quality assurance process that focuses on controlling
processes to plus or minus a specific standard deviation? - ANSWER-Six Sigma
(6.2.1 Quality Assurance Tools
FAPIIS CPARS and PPIRS are government databases that can help buyers
evaluate what? - ANSWER-An offeror's past performance (5.3.4.4 Past
Performance)
Interest-based negotiation; mediation; mini-trial - ANSWER-and arbitration are
examples of what?, Alternative dispute resolution techniques (5.4.1.4 Alternative
Dispute Resolution (ADR)
What are the actual cost method and jury verdict method used for? - ANSWER-
Proving quantum under a government contract (6.1.7 Resolve Requests for
Equitable Adjustment (REAs) and Claims
What is an affirmative claim? - ANSWER-A claim made by the government against a
contractor (6.1.7 Resolve REAS
Although it is not possible for every negotiator to do an in-depth analysis of each
acquisition what information should the seller have at a minimum before beginning
negotiations? - ANSWER-The purpose of the acquisition, the buyer's objectives, who
the end user is, and the needs of the end user (5.2.1 Preparation)
Pre-Award notification is defined as - ANSWER-Notifications made when elimination
from further competition has been made (5.3.8.1 Pre-Award Notification
What is the difference between a claim and a request for equitable adjustment? -
ANSWER-An REA is a proposal attempting to negotiate a fair and reasonable
settlement between the parties without submitting a claim (6.1.7 Resolve Requests
for Equitable Adjustment (REAs) and Claims
An agency has issued a solicitation for the purchase of a commercial item and an
offeror submits cost data to the buyer. Is this data sufficient to determine cost
reasonableness? - ANSWER-No, because the factors and assumptions supporting
the cost data must first be analyzed and evaluated (5.1.3 Certified Cost or Pricing
Data
What are the federal government's two techniques for source selection in negotiated
acquisitions?, Lowest price technically acceptable and tradeoff (5.3.4.6 Basis of
Award - ANSWER-
Exam Questions and Answers
What is the purpose of source selection? - ANSWER-Determining how a company
wins a contract (5.3.3 Negotiated Source Selection
In all negotiations both the buyer and the seller teams should include which of the
following? - ANSWER-A designated lead negotiator (5.2.2 The Negotiation Team
Why does the CMBOK describe the establishment of negotiation objectives as an
"ongoing" process? - ANSWER-Negotiation objectives may change as
circumstances around the negotiation change (5.2.3 Negotiation Objectives
Expectation damages are monetary damages paid - ANSWER-To place the
aggrieved party in the same position as if the contract had been performed (5.4.1.2
Commercial Contract Disputes
What is the term for a bid that complies in all material aspects with the invitation for
bids? - ANSWER-Responsive (5.3.2 Sealed Bidding
Which of the following takes the lowest precedence when different sections of a
contract conflict with one another? - ANSWER-The specifications (5.4.1.1.4 Extrinsic
Evidence
Dimension Seven Events has a contract with the City of Baltimore for the use of a
public park to present the High Energy Music Festival. Dimension Seven the buyer
has the right under the contract to inspect the festival grounds for any safety
concerns. The City of Baltimore the seller provides reports from its internal city
auditors who deemed the park safe for up to 50,000 attendees. This is a form of
what type of quality assurance? - ANSWER-Indirect observation (6.1.5 Observe and
Monitor Performance
Which of the following is not true about cost or pricing data? - ANSWER-The data
may consist solely of historical accounting information (5.1.3 Certified Cost or Pricing
Data)
Discussions and concurrent actions, prior course of dealing between the parties and
custom and trade usage are examples of what? - ANSWER-Extrinsic evidence
(5.4.1.1.4 Extrinsic Evidence)
For claims greater than $100,000 when must the contractor be given a final
decision? - ANSWER-Within a "reasonable time," provided the contractor is notified
within 60 days of when to expect a decision (6.1.7)
Which of the five contract management domains occurs within the Award phase of
the contract life cycle? - ANSWER-Form contract (5.0 Award)
, Which of the following costs is a direct cost? - ANSWER-A material, such as
plywood, incorporated into an end product (5.1.2 Cost Analysis
What definition for a word or term used in a contract is considered most preferable? -
ANSWER-The definition incorporated in the contract or defined by law (5.4.1.1.3
Defining Key Terms
Which of the following is a quality assurance process that focuses on controlling
processes to plus or minus a specific standard deviation? - ANSWER-Six Sigma
(6.2.1 Quality Assurance Tools
FAPIIS CPARS and PPIRS are government databases that can help buyers
evaluate what? - ANSWER-An offeror's past performance (5.3.4.4 Past
Performance)
Interest-based negotiation; mediation; mini-trial - ANSWER-and arbitration are
examples of what?, Alternative dispute resolution techniques (5.4.1.4 Alternative
Dispute Resolution (ADR)
What are the actual cost method and jury verdict method used for? - ANSWER-
Proving quantum under a government contract (6.1.7 Resolve Requests for
Equitable Adjustment (REAs) and Claims
What is an affirmative claim? - ANSWER-A claim made by the government against a
contractor (6.1.7 Resolve REAS
Although it is not possible for every negotiator to do an in-depth analysis of each
acquisition what information should the seller have at a minimum before beginning
negotiations? - ANSWER-The purpose of the acquisition, the buyer's objectives, who
the end user is, and the needs of the end user (5.2.1 Preparation)
Pre-Award notification is defined as - ANSWER-Notifications made when elimination
from further competition has been made (5.3.8.1 Pre-Award Notification
What is the difference between a claim and a request for equitable adjustment? -
ANSWER-An REA is a proposal attempting to negotiate a fair and reasonable
settlement between the parties without submitting a claim (6.1.7 Resolve Requests
for Equitable Adjustment (REAs) and Claims
An agency has issued a solicitation for the purchase of a commercial item and an
offeror submits cost data to the buyer. Is this data sufficient to determine cost
reasonableness? - ANSWER-No, because the factors and assumptions supporting
the cost data must first be analyzed and evaluated (5.1.3 Certified Cost or Pricing
Data
What are the federal government's two techniques for source selection in negotiated
acquisitions?, Lowest price technically acceptable and tradeoff (5.3.4.6 Basis of
Award - ANSWER-
