DAU Contracting Certification Exam questions with
accurate answers
1Where in the FAR is contracting by negotiation covered? Ans✓✓✓ 15
A "personal conflict of interest" is a situation where an individual is
employed by a defense contractor company and is in a position to
materially influence DOD's recommendations and/or decisions and,
because of his/her personal activities, relationships, or financial interests,
may lack or appear to lack objectivity or appear to be unduly influenced
by personal financial interest. Ans✓✓✓ True
A bilateral modification is a contract modification that is signed by the
contractor and the contracting officer. A unilateral modification is a
contract modification that is signed only by the contracting officer.
Ans✓✓✓ True
A change to solicitation is called a(n): Ans✓✓✓ amendment
A communication plan must include: (select all that apply). Ans✓✓✓
Who the target audience is.
What needs to be communicated.
What the communications should contain.
Who is responsible for generating the communication.
,What format or forum should be used.
What frequency is needed to keep the target audience up to speed.
A contract clause might? Ans✓✓✓ Require a contractor to deliver an
item by a specific date.
A contract is considered physically complete when the contractor has
completed all the required deliveries and Ans✓✓✓ The Government
has accepted all the items.
A contracting officer has the broadest discretion in fashioning suitable
evaluation procedures when considering: Ans✓✓✓ Quotations
A contracting officer shall not knowingly award a contract to a
Government employee or to a business concern or other organization
owned or substantially owned or controlled by one or more Government
employees (FAR 3.601) Ans✓✓✓ True
A contractor assumes the greatest cost risk in a which type of contract?
Ans✓✓✓ Firm Fixed Price Contracts
A contractor assumes the least cost risk in which type of contract?
Ans✓✓✓ Cost Plus Fixed Fee Contracts
,A contractor employee accidentally broke a test fixture that belongs to
the Government and is accountable to a Government contract. Generally
speaking: Ans✓✓✓ Contractors are not held liable for loss of
Government property
A contractor failed to deliver a commercial item within the time
specified by the contract. As the Government contracting officer, you
plan to terminate the contract. What type of termination would you
proceed with? Ans✓✓✓ Termination for Cause
A contractor is developing their pricing strategy in a competitive
environment. Knowing the required effort will result in follow-on
contracts, the contractor submits and offer below anticipated costs with
the plan to recover any losses by increasing the price on follow-on
efforts. This pricing strategy is referred to as: Ans✓✓✓ Buying-in
A cost is allowable only when the cost is: Ans✓✓✓ -Reasonable,
-Allocable, and
-Determined to be allowable.
A Cost Plus Incentive Fee contract specifies a target cost, a target fee,
minimum and maximum fees, and a fee adjustment formula. Ans✓✓✓
true
A cost reimbursement type contract places upon the contractor
maximum risk and responsibility for all costs and resulting profit or loss.
Ans✓✓✓ False
, A cost-plus-a-percentage-of-cost system of contracting is prohibited.
Ans✓✓✓ true
A CPFF Completion contract Ans✓✓✓ Requires the contractor to work
to a definite goal or target.
Specifies an end product.
End product MUST be delivered to earn the entire fee.
A CPFF Term contract Ans✓✓✓ Obligates the contractor to devote and
expand a specified level of effort for a stated period of time.
As long as the effort is satisfactory to the government, fee is paid.
A CPIF contract is appropriate for noncommercial service or
development and test programs when: Ans✓✓✓ -A cost-reimbursement
contract is necessary
-The parties can negotiate a target cost and a fee adjustment formula that
are likely to motivate the contractor to manage effectively.
-The fee adjustment formula should provide an incentive that will be
effective over the full range of reasonably foreseeable variations from
target cost.
-If a high maximum fee is negotiated, the contract shall also provide for
a low minimum fee that may be a zero fee or, in rare cases, a negative
fee
-The contract may include technical performance incentives when it is
highly probable that the required development of a major system is
accurate answers
1Where in the FAR is contracting by negotiation covered? Ans✓✓✓ 15
A "personal conflict of interest" is a situation where an individual is
employed by a defense contractor company and is in a position to
materially influence DOD's recommendations and/or decisions and,
because of his/her personal activities, relationships, or financial interests,
may lack or appear to lack objectivity or appear to be unduly influenced
by personal financial interest. Ans✓✓✓ True
A bilateral modification is a contract modification that is signed by the
contractor and the contracting officer. A unilateral modification is a
contract modification that is signed only by the contracting officer.
Ans✓✓✓ True
A change to solicitation is called a(n): Ans✓✓✓ amendment
A communication plan must include: (select all that apply). Ans✓✓✓
Who the target audience is.
What needs to be communicated.
What the communications should contain.
Who is responsible for generating the communication.
,What format or forum should be used.
What frequency is needed to keep the target audience up to speed.
A contract clause might? Ans✓✓✓ Require a contractor to deliver an
item by a specific date.
A contract is considered physically complete when the contractor has
completed all the required deliveries and Ans✓✓✓ The Government
has accepted all the items.
A contracting officer has the broadest discretion in fashioning suitable
evaluation procedures when considering: Ans✓✓✓ Quotations
A contracting officer shall not knowingly award a contract to a
Government employee or to a business concern or other organization
owned or substantially owned or controlled by one or more Government
employees (FAR 3.601) Ans✓✓✓ True
A contractor assumes the greatest cost risk in a which type of contract?
Ans✓✓✓ Firm Fixed Price Contracts
A contractor assumes the least cost risk in which type of contract?
Ans✓✓✓ Cost Plus Fixed Fee Contracts
,A contractor employee accidentally broke a test fixture that belongs to
the Government and is accountable to a Government contract. Generally
speaking: Ans✓✓✓ Contractors are not held liable for loss of
Government property
A contractor failed to deliver a commercial item within the time
specified by the contract. As the Government contracting officer, you
plan to terminate the contract. What type of termination would you
proceed with? Ans✓✓✓ Termination for Cause
A contractor is developing their pricing strategy in a competitive
environment. Knowing the required effort will result in follow-on
contracts, the contractor submits and offer below anticipated costs with
the plan to recover any losses by increasing the price on follow-on
efforts. This pricing strategy is referred to as: Ans✓✓✓ Buying-in
A cost is allowable only when the cost is: Ans✓✓✓ -Reasonable,
-Allocable, and
-Determined to be allowable.
A Cost Plus Incentive Fee contract specifies a target cost, a target fee,
minimum and maximum fees, and a fee adjustment formula. Ans✓✓✓
true
A cost reimbursement type contract places upon the contractor
maximum risk and responsibility for all costs and resulting profit or loss.
Ans✓✓✓ False
, A cost-plus-a-percentage-of-cost system of contracting is prohibited.
Ans✓✓✓ true
A CPFF Completion contract Ans✓✓✓ Requires the contractor to work
to a definite goal or target.
Specifies an end product.
End product MUST be delivered to earn the entire fee.
A CPFF Term contract Ans✓✓✓ Obligates the contractor to devote and
expand a specified level of effort for a stated period of time.
As long as the effort is satisfactory to the government, fee is paid.
A CPIF contract is appropriate for noncommercial service or
development and test programs when: Ans✓✓✓ -A cost-reimbursement
contract is necessary
-The parties can negotiate a target cost and a fee adjustment formula that
are likely to motivate the contractor to manage effectively.
-The fee adjustment formula should provide an incentive that will be
effective over the full range of reasonably foreseeable variations from
target cost.
-If a high maximum fee is negotiated, the contract shall also provide for
a low minimum fee that may be a zero fee or, in rare cases, a negative
fee
-The contract may include technical performance incentives when it is
highly probable that the required development of a major system is
