CON 3900 CONTRACTING
PRACTICE EXAM QUESTIONS
WITH CORRECT DETAILED
ANSWERS | ALREADY GRADED
A+<RECENT VERSION>
1. Selecting contract Typer is a function of "___" Allocation - answer
Risk
2. Cost-Plus-Percentage-of-Cost Contracts - answer NEVER
3. Cost-Plus-Fixed-Fee Contracts are - answer Greatest risk on the GOV
4. Firm-Fixed-Price contracts are - answer Greatest risk on Contractor
5. Contract Type by Far Part:
-Firm Fixed Price
-Fixed Price w/ EPA - answer Far 12 Commercial Items
Far 14 Sealed bidding
6. Any contract type or combination of types - answer Far 15 Contract
by Negotiation
7. IDIQ (Indefinite Delivery Indefinite Quantity) - answer specified
quantity of supplies or services for a fixed period of time.
, Funded at the individual order level
8. Delivery Orders - answer Order of Supplies or Commodities
9. Task Orders - answer Order for Services
10.Price not subject to adjustment
Contractor at maximum risk and full performance responsibility
-for profit and loss
Is suitable for acquiring commercial items or supplies or services on the
basis of reasonable definite functional or detailed specifications when the
KO can establish fair and reasonable prices at the outset. - answer FFP
11.Fixed-Price w/Economic Price Adjustment - answer used when there
is serious doubt concerning the stability of market or labor conditions that
will exist during an extended period of contract performance and
contingencies that would otherwise be included in the contract price can
be identified and covered separately in the contract.
12.Types of Incentive Contracts - answer Cost
Performance
delivery
multiple
13.(Fixed Price Incentive Fee contract) - answer Contractor has an
opportunity to make a higher profit by completing the work blow the
ceiling price and meeting objective performance targets.
Once price exceeds Fixed Price ceiling, the contractor is responsible for
all allowable costs over price ceiling and the contractor suffers loss.
14.FPAF Contract
, (Fixed Price W/Award Fee) - answer Maybe be used in fixed-price
contracts when the Gov wishes to motivate a contractor and other
incetinces cannot be used because contractor performance cannot be
measured objectively.
15.Firm Fixed Price, Level of Effort - answer A contract suitable for
investigation or study in a specific research and development area; the
product of the contract is usually a report showing the results achieved
through application of the required level of effort, however, payment is
based on the effort expended rather than on the results achieved.
16.Cost Reimbursement Contracts - answer -Acquisition of non-
commercial items.
-for reimbursement of allowable incurred cost
-cannot estimate accurately enough for FP contract
-Obligate funds and establish a ceiling.
17.Cost Contract - answer May be appropriate for research and
development work, particularly with nonprofit educational institutions or
other nonprofit organization, and for facilities contracts
18.Cost sharing - answer used when the contractor agrees to absorb a
portion of the costs, in expectation of substantial compensating benefits.
19.Cost Plus Incentive Fee Contract (CPIF) - answer Fo services or
development and test programs when cost reimbursement contract is
necessary; and a target cost and a fee adjustment formula can be
negotiated that are likely to motivate the contractor to manage effectively.
total fee < total target, then Fee Increases
total fee > total target, then fee decreases
, 20.Cost Plus Award Fee (CPAF) - answer used when likelihood of
meeting acquisition objectives will be enhanced by using a contract that
effectively motivated the contractor toward exceptional performance and
provides the GOV with the flexibility to evaluate both actual performance
and the conditions under which it was achieved.
21.Cost Plus Fixed Fee - answer For the performance of research or
preliminary exploration or study, and the level of effort required is
unknown; or the contract is for development and test, and using a cost-
plus-incentive-fee is not practical. Normally should not be used in
development of major systems.
Contractor has minimal incentive to control costs.
22.Time and Material, Labor Hours - answer -Hours at a fixed rate
-T&M includes payment for materials at cost
-No positive profit incentive for cost control or labor efficiency.
23.Market research is conducted during which phase of acquisition? -
answer All phases of the acquisition
24.What is the use of a procedure that is inconsistent with the FAR? -
answer Deviation
25.Simplified Acquisition Procedures (SAP) should - answer Promote
competition to the maximum extent practicable
26.What is the tool (form) used by DoD to apply a structured profit/fee? -
answer DD Form 1547, Weighted Guidelines Method
27.What type(s) of contracts can be awarded when acquiring commercial
items of supply? - answer Only firm-fixed-price contracts or fixed-
price contracts with economic price adjustment
PRACTICE EXAM QUESTIONS
WITH CORRECT DETAILED
ANSWERS | ALREADY GRADED
A+<RECENT VERSION>
1. Selecting contract Typer is a function of "___" Allocation - answer
Risk
2. Cost-Plus-Percentage-of-Cost Contracts - answer NEVER
3. Cost-Plus-Fixed-Fee Contracts are - answer Greatest risk on the GOV
4. Firm-Fixed-Price contracts are - answer Greatest risk on Contractor
5. Contract Type by Far Part:
-Firm Fixed Price
-Fixed Price w/ EPA - answer Far 12 Commercial Items
Far 14 Sealed bidding
6. Any contract type or combination of types - answer Far 15 Contract
by Negotiation
7. IDIQ (Indefinite Delivery Indefinite Quantity) - answer specified
quantity of supplies or services for a fixed period of time.
, Funded at the individual order level
8. Delivery Orders - answer Order of Supplies or Commodities
9. Task Orders - answer Order for Services
10.Price not subject to adjustment
Contractor at maximum risk and full performance responsibility
-for profit and loss
Is suitable for acquiring commercial items or supplies or services on the
basis of reasonable definite functional or detailed specifications when the
KO can establish fair and reasonable prices at the outset. - answer FFP
11.Fixed-Price w/Economic Price Adjustment - answer used when there
is serious doubt concerning the stability of market or labor conditions that
will exist during an extended period of contract performance and
contingencies that would otherwise be included in the contract price can
be identified and covered separately in the contract.
12.Types of Incentive Contracts - answer Cost
Performance
delivery
multiple
13.(Fixed Price Incentive Fee contract) - answer Contractor has an
opportunity to make a higher profit by completing the work blow the
ceiling price and meeting objective performance targets.
Once price exceeds Fixed Price ceiling, the contractor is responsible for
all allowable costs over price ceiling and the contractor suffers loss.
14.FPAF Contract
, (Fixed Price W/Award Fee) - answer Maybe be used in fixed-price
contracts when the Gov wishes to motivate a contractor and other
incetinces cannot be used because contractor performance cannot be
measured objectively.
15.Firm Fixed Price, Level of Effort - answer A contract suitable for
investigation or study in a specific research and development area; the
product of the contract is usually a report showing the results achieved
through application of the required level of effort, however, payment is
based on the effort expended rather than on the results achieved.
16.Cost Reimbursement Contracts - answer -Acquisition of non-
commercial items.
-for reimbursement of allowable incurred cost
-cannot estimate accurately enough for FP contract
-Obligate funds and establish a ceiling.
17.Cost Contract - answer May be appropriate for research and
development work, particularly with nonprofit educational institutions or
other nonprofit organization, and for facilities contracts
18.Cost sharing - answer used when the contractor agrees to absorb a
portion of the costs, in expectation of substantial compensating benefits.
19.Cost Plus Incentive Fee Contract (CPIF) - answer Fo services or
development and test programs when cost reimbursement contract is
necessary; and a target cost and a fee adjustment formula can be
negotiated that are likely to motivate the contractor to manage effectively.
total fee < total target, then Fee Increases
total fee > total target, then fee decreases
, 20.Cost Plus Award Fee (CPAF) - answer used when likelihood of
meeting acquisition objectives will be enhanced by using a contract that
effectively motivated the contractor toward exceptional performance and
provides the GOV with the flexibility to evaluate both actual performance
and the conditions under which it was achieved.
21.Cost Plus Fixed Fee - answer For the performance of research or
preliminary exploration or study, and the level of effort required is
unknown; or the contract is for development and test, and using a cost-
plus-incentive-fee is not practical. Normally should not be used in
development of major systems.
Contractor has minimal incentive to control costs.
22.Time and Material, Labor Hours - answer -Hours at a fixed rate
-T&M includes payment for materials at cost
-No positive profit incentive for cost control or labor efficiency.
23.Market research is conducted during which phase of acquisition? -
answer All phases of the acquisition
24.What is the use of a procedure that is inconsistent with the FAR? -
answer Deviation
25.Simplified Acquisition Procedures (SAP) should - answer Promote
competition to the maximum extent practicable
26.What is the tool (form) used by DoD to apply a structured profit/fee? -
answer DD Form 1547, Weighted Guidelines Method
27.What type(s) of contracts can be awarded when acquiring commercial
items of supply? - answer Only firm-fixed-price contracts or fixed-
price contracts with economic price adjustment
