DAU CLC 222 LESSON 4 ANSWERS | Defense Acquisition
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Part I: Contract Fundamentals & Legal Principles (10 questions)
Q1: A contracting officer is reviewing a requirement for commercial office furniture with
well-defined specifications and minimal technical risk. Which contract type places the
maximum performance risk on the contractor while giving the government the most
price certainty?
A. Cost-Plus-Fixed-Fee (CPFF), because the government reimburses all allowable costs
B. Time-and-Materials (T&M), since labor rates are negotiated upfront but hours vary
C. Firm-Fixed-Price (FFP), because the contractor agrees to deliver at a set price
regardless of actual costs [CORRECT]
D. Cost-Plus-Incentive-Fee (CPIF), as it shares cost risk between both parties
Correct Answer: C
Rationale: FFP contracts place full performance risk on the contractor and provide the
government with a definite price—ideal when requirements are stable and commercial.
A and B shift too much risk to the government. D involves shared risk and is used when
cost uncertainties exist, not for stable commercial buys.
Q2: Under FAR Part 16, which contract type is explicitly described as suitable for
research and development work when the level of effort required is unknown?
,A. Firm-Fixed-Price (FFP), because it incentivizes contractor efficiency
B. Cost-Plus-Fixed-Fee (CPFF), since it allows reimbursement of allowable costs plus a
fixed fee [CORRECT]
C. Indefinite-Delivery/Indefinite-Quantity (IDIQ), as it provides ordering flexibility
D. Fixed-Price-Incentive-Firm (FPIF), because it includes a ceiling price and sharing ratio
Correct Answer: B
Rationale: FAR Part 16.306 states CPFF is appropriate for R&D when effort cannot be
estimated precisely enough for fixed pricing. A is wrong because FFP requires definite
requirements. C is a vehicle, not a contract type for R&D effort. D still requires enough
data to establish a target cost and ceiling.
Q3: During contract administration, the contracting officer receives a contractor
proposal for a bilateral modification that increases the contract price by $50,000. The
contract was originally awarded under FAR Part 15 (Contracting by Negotiation). Which
FAR part governs the modification itself?
A. FAR Part 12, because the original contract was for commercial items
B. FAR Part 15, since the modification is being negotiated and the original contract was
negotiated under Part 15 [CORRECT]
C. FAR Part 16, because Part 16 governs all contract pricing adjustments
D. FAR Part 43, because modifications are exclusively handled under Part 43
Correct Answer: B
, Rationale: While FAR Part 43 provides general modification procedures, the negotiation
of the modification follows the procedures of the part under which the contract was
originally awarded—in this case, Part 15. A only applies if the original was commercial.
C addresses contract types, not modification authority. D is incomplete because Part 43
doesn't replace the source of negotiation authority.
Q4: A program manager asks why an Acquisition Plan is required for a major defense
acquisition program (MDAP) but not for a $2 million commercial item purchase. What's
the most accurate explanation?
A. The Acquisition Plan is only required for sole-source procurements over $10 million
B. FAR 7.105 requires an Acquisition Plan for all acquisitions exceeding the simplified
acquisition threshold
C. DODD 5000.02 and FAR 7.1 require Acquisition Plans for major systems and other
acquisitions above specified dollar thresholds, but not for routine commercial buys
[CORRECT]
D. The J&A replaces the Acquisition Plan for all competitive acquisitions
Correct Answer: C
Rationale: Acquisition Plans are required for MDAPs and other significant acquisitions
per DOD policy and FAR 7.1, but routine commercial purchases below thresholds don't
need them. A is wrong because sole-source status isn't the trigger. B overstates—FAR
7.105 applies to specific thresholds and types, not everything above SAT. D confuses
two distinct documents.
University | CLC222 Complete Solutions | Verified Q&A | Pass
Guaranteed - A+ Graded
Part I: Contract Fundamentals & Legal Principles (10 questions)
Q1: A contracting officer is reviewing a requirement for commercial office furniture with
well-defined specifications and minimal technical risk. Which contract type places the
maximum performance risk on the contractor while giving the government the most
price certainty?
A. Cost-Plus-Fixed-Fee (CPFF), because the government reimburses all allowable costs
B. Time-and-Materials (T&M), since labor rates are negotiated upfront but hours vary
C. Firm-Fixed-Price (FFP), because the contractor agrees to deliver at a set price
regardless of actual costs [CORRECT]
D. Cost-Plus-Incentive-Fee (CPIF), as it shares cost risk between both parties
Correct Answer: C
Rationale: FFP contracts place full performance risk on the contractor and provide the
government with a definite price—ideal when requirements are stable and commercial.
A and B shift too much risk to the government. D involves shared risk and is used when
cost uncertainties exist, not for stable commercial buys.
Q2: Under FAR Part 16, which contract type is explicitly described as suitable for
research and development work when the level of effort required is unknown?
,A. Firm-Fixed-Price (FFP), because it incentivizes contractor efficiency
B. Cost-Plus-Fixed-Fee (CPFF), since it allows reimbursement of allowable costs plus a
fixed fee [CORRECT]
C. Indefinite-Delivery/Indefinite-Quantity (IDIQ), as it provides ordering flexibility
D. Fixed-Price-Incentive-Firm (FPIF), because it includes a ceiling price and sharing ratio
Correct Answer: B
Rationale: FAR Part 16.306 states CPFF is appropriate for R&D when effort cannot be
estimated precisely enough for fixed pricing. A is wrong because FFP requires definite
requirements. C is a vehicle, not a contract type for R&D effort. D still requires enough
data to establish a target cost and ceiling.
Q3: During contract administration, the contracting officer receives a contractor
proposal for a bilateral modification that increases the contract price by $50,000. The
contract was originally awarded under FAR Part 15 (Contracting by Negotiation). Which
FAR part governs the modification itself?
A. FAR Part 12, because the original contract was for commercial items
B. FAR Part 15, since the modification is being negotiated and the original contract was
negotiated under Part 15 [CORRECT]
C. FAR Part 16, because Part 16 governs all contract pricing adjustments
D. FAR Part 43, because modifications are exclusively handled under Part 43
Correct Answer: B
, Rationale: While FAR Part 43 provides general modification procedures, the negotiation
of the modification follows the procedures of the part under which the contract was
originally awarded—in this case, Part 15. A only applies if the original was commercial.
C addresses contract types, not modification authority. D is incomplete because Part 43
doesn't replace the source of negotiation authority.
Q4: A program manager asks why an Acquisition Plan is required for a major defense
acquisition program (MDAP) but not for a $2 million commercial item purchase. What's
the most accurate explanation?
A. The Acquisition Plan is only required for sole-source procurements over $10 million
B. FAR 7.105 requires an Acquisition Plan for all acquisitions exceeding the simplified
acquisition threshold
C. DODD 5000.02 and FAR 7.1 require Acquisition Plans for major systems and other
acquisitions above specified dollar thresholds, but not for routine commercial buys
[CORRECT]
D. The J&A replaces the Acquisition Plan for all competitive acquisitions
Correct Answer: C
Rationale: Acquisition Plans are required for MDAPs and other significant acquisitions
per DOD policy and FAR 7.1, but routine commercial purchases below thresholds don't
need them. A is wrong because sole-source status isn't the trigger. B overstates—FAR
7.105 applies to specific thresholds and types, not everything above SAT. D confuses
two distinct documents.
