CON 1400 Understanding Requests for Equitable Adjustment
|Major Areas of REAs Questions and Answers
Q1. What is a Request for Equitable Adjustment (REA) primarily intended to address?
A. Contractor’s profit increase
B. Government’s budget shortfall
C. Contract changes impacting cost or schedule
D. Contractor’s internal policy changes
Q2. Under FAR Part 43, what is the contracting officer’s role in handling REAs?
A. Approve contractor’s profit margins
B. Evaluate and negotiate equitable adjustments
C. Draft contractor’s REA submission
D. Refer REAs to the GAO
Q3
Which FAR part governs contract modifications, including equitable adjustments?
A. FAR Part 31
B. FAR Part 43
C. FAR Part 15
D. FAR Part 12
Q4
What is the primary difference between a Request for Equitable Adjustment (REA) and
a claim under the Contract Disputes Act?
A. REA is informal, claim is formal
B. REA requires litigation, claim does not
C. REA is only for schedule changes, claim is only for cost changes
D. REA is submitted to GAO, claim is submitted to Congress
Q5
Which of the following is NOT typically required in an REA submission?
A. Detailed cost breakdown
B. Legal precedent citations
C. Impact on schedule
D. Supporting documentation
Q6
When negotiating an REA, the contracting officer must ensure adjustments are:
A. Profitable for the contractor
B. Equitable to both parties
C. Favorable to the government only
,D. Based solely on contractor estimates
Q7
Which statute provides the legal framework for contractor claims if an REA is denied?
A. Truth in Negotiations Act
B. Contract Disputes Act
C. Federal Acquisition Streamlining Act
D. Anti-Deficiency Act
Q8
What is the contractor’s burden in an REA submission?
A. To prove government liability
B. To demonstrate entitlement and quantum
C. To show profit margins
D. To provide GAO approval
Q9
Which of the following best describes “quantum” in the context of an REA?
A. The legal justification for adjustment
B. The amount of money or time requested
C. The contracting officer’s authority
D. The government’s defense strategy
Q10
If a contractor submits an REA and the government agrees, what is the typical
outcome?
A. Contract termination
B. Contract modification
C. Contractor suspension
D. Litigation in federal court
Q11
Which document is typically used to formalize an approved REA?
A. Contract modification
B. Memorandum of Understanding
C. Contractor invoice
D. Government audit report
Q12
What is the primary purpose of an REA narrative?
A. To summarize contractor profits
B. To explain entitlement and impact
C. To provide government policy updates
D. To replace cost breakdowns
, Q13
Which FAR clause often governs equitable adjustments for changes?
A. FAR 52.243-1
B. FAR 52.219-9
C. FAR 52.232-20
D. FAR 52.246-2
Q14
An REA is most often triggered by:
A. Contractor’s internal reorganization
B. Government-directed contract change
C. Contractor’s profit decline
D. Market price fluctuations
Q15
Which agency often provides guidance on REAs?
A. GAO
B. SEC
C. IRS
D. FDA
Q16
What is the difference between entitlement and quantum in an REA?
A. Entitlement = legal basis; Quantum = amount requested
B. Entitlement = cost breakdown; Quantum = schedule impact
C. Entitlement = government approval; Quantum = contractor profit
D. Entitlement = FAR citation; Quantum = GAO ruling
Q17
Which of the following is a valid basis for an REA?
A. Directed change order
B. Contractor’s poor planning
C. Contractor’s profit loss
D. Market competition
Q18
What is the contracting officer’s responsibility when reviewing an REA?
A. Ensure fairness and compliance with FAR
B. Approve contractor profits
C. Refer all REAs to Congress
D. Reject REAs automatically
Q19
Which type of modification is often associated with REAs?
A. Bilateral modification
B. Unilateral modification
|Major Areas of REAs Questions and Answers
Q1. What is a Request for Equitable Adjustment (REA) primarily intended to address?
A. Contractor’s profit increase
B. Government’s budget shortfall
C. Contract changes impacting cost or schedule
D. Contractor’s internal policy changes
Q2. Under FAR Part 43, what is the contracting officer’s role in handling REAs?
A. Approve contractor’s profit margins
B. Evaluate and negotiate equitable adjustments
C. Draft contractor’s REA submission
D. Refer REAs to the GAO
Q3
Which FAR part governs contract modifications, including equitable adjustments?
A. FAR Part 31
B. FAR Part 43
C. FAR Part 15
D. FAR Part 12
Q4
What is the primary difference between a Request for Equitable Adjustment (REA) and
a claim under the Contract Disputes Act?
A. REA is informal, claim is formal
B. REA requires litigation, claim does not
C. REA is only for schedule changes, claim is only for cost changes
D. REA is submitted to GAO, claim is submitted to Congress
Q5
Which of the following is NOT typically required in an REA submission?
A. Detailed cost breakdown
B. Legal precedent citations
C. Impact on schedule
D. Supporting documentation
Q6
When negotiating an REA, the contracting officer must ensure adjustments are:
A. Profitable for the contractor
B. Equitable to both parties
C. Favorable to the government only
,D. Based solely on contractor estimates
Q7
Which statute provides the legal framework for contractor claims if an REA is denied?
A. Truth in Negotiations Act
B. Contract Disputes Act
C. Federal Acquisition Streamlining Act
D. Anti-Deficiency Act
Q8
What is the contractor’s burden in an REA submission?
A. To prove government liability
B. To demonstrate entitlement and quantum
C. To show profit margins
D. To provide GAO approval
Q9
Which of the following best describes “quantum” in the context of an REA?
A. The legal justification for adjustment
B. The amount of money or time requested
C. The contracting officer’s authority
D. The government’s defense strategy
Q10
If a contractor submits an REA and the government agrees, what is the typical
outcome?
A. Contract termination
B. Contract modification
C. Contractor suspension
D. Litigation in federal court
Q11
Which document is typically used to formalize an approved REA?
A. Contract modification
B. Memorandum of Understanding
C. Contractor invoice
D. Government audit report
Q12
What is the primary purpose of an REA narrative?
A. To summarize contractor profits
B. To explain entitlement and impact
C. To provide government policy updates
D. To replace cost breakdowns
, Q13
Which FAR clause often governs equitable adjustments for changes?
A. FAR 52.243-1
B. FAR 52.219-9
C. FAR 52.232-20
D. FAR 52.246-2
Q14
An REA is most often triggered by:
A. Contractor’s internal reorganization
B. Government-directed contract change
C. Contractor’s profit decline
D. Market price fluctuations
Q15
Which agency often provides guidance on REAs?
A. GAO
B. SEC
C. IRS
D. FDA
Q16
What is the difference between entitlement and quantum in an REA?
A. Entitlement = legal basis; Quantum = amount requested
B. Entitlement = cost breakdown; Quantum = schedule impact
C. Entitlement = government approval; Quantum = contractor profit
D. Entitlement = FAR citation; Quantum = GAO ruling
Q17
Which of the following is a valid basis for an REA?
A. Directed change order
B. Contractor’s poor planning
C. Contractor’s profit loss
D. Market competition
Q18
What is the contracting officer’s responsibility when reviewing an REA?
A. Ensure fairness and compliance with FAR
B. Approve contractor profits
C. Refer all REAs to Congress
D. Reject REAs automatically
Q19
Which type of modification is often associated with REAs?
A. Bilateral modification
B. Unilateral modification
