Con 200 Business Decisions For Contracting Questions With Correct Answers

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. Correct Answer True How does a cost-plus-incentive-fee (CPIF) contract differ from a fixed-price incentive firm (FPIF) contract? Correct Answer CPIF contracts do not have a ceiling price 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? Correct Answer Urgency of need 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? Correct Answer Award an undefinitized contract action in the form of a letter contract 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 the acquisition, and the urgency of the need. Correct Answer True 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? Correct 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. 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? Correct Answer -Cost-plus-award-fee *-Cost-plus-incentive-fee -Fixed-price award fee -Firm-fixed price