DAU 090 Exam 4
Scenario: The Elsesser Corporation is performing a cost-plus fixed-fee research and
development contract for the Navy valued at $1 million. The contract contains all required FAR
and DFARS clauses. The contract requires Elsesser Corporation to deliver four prototypes by 3
February 2014. Elsesser delivers the prototypes on 29 January 2014 and the Government
accepts them.
On 18 February 2014, the Government end user informs the contracting officer that three of the
four prototypes are defective and will need to be repaired. On 3 March 2014, the contracting
officer requests that Elsesser repair or replace the defective prototypes at no cost to the
Government. Elsesser refuses, claiming that they are not liable because the Government already
accepted the prototypes. However, they would be willing to repair or replace the prototypes for
an additional cost and fee.
The delivery of the defective prototypes was not due to fraud, lack of good faith, or willful
misconduct on the part of the contractor, or mismanagement of contractor employees.
Question: Pursuant to the FAR and DFARS clauses in the contract, which of the following is TRUE?
Selected d.
Answer:
The Government must make an equitable adjustment to the contract price.
Answers: a.
Elsesser must repair or replace the prototypes at no cost to the Government
b.
The Government must reimburse Elsesser for its allowable costs of repairing or
replacing the prototypes, but does not have to pay any additional fee.
c.
The Government must reimburse Elsesser for its allowable costs of repairing or
replacing the prototypes and will have to pay an additional fee.
d.
The Government must make an equitable adjustment to the contract price.
Question 2
4 out of 4 points
Where can a contractor appeal a contracting officer’s final decision on their claim?
Selected Answer: a.
, DAU 090 Exam 4
Agency board of contract appeals
Answers: a.
Agency board of contract appeals
b.
Government Accountability Office
c.
U.S. Court of Appeals for the Federal Circuit
d.
U.S. Supreme Court
Question 3
0 out of 4 points
Which of the following is a contract financing payment(s)?
Selected c.
Answer:
Progress payments based on stage of completion under fixed-price
construction contracts or under fixed-price architect-engineer contracts
Answers: a.
Invoice payments and delivery payments
b.
Progress payments based on cost and commercial Interim payments
c.
Progress payments based on stage of completion under fixed-price
construction contracts or under fixed-price architect-engineer contracts
d.
Lease and rental payments
Question 4
4 out of 4 points
, DAU 090 Exam 4
For a supply contract, which one of the following clauses provides for an adjustment to the
delivery schedule if the contracting officer fails to act within the time specified in the contract?
Selected Answer: c.
FAR 52.242-17, Government Delay of Work
Answers: a.
FAR 52.242-14, Suspension of Work
b.
FAR 52.242-15, Stop-Work Order
c.
FAR 52.242-17, Government Delay of Work
d.
FAR 52.249-8, Default (Fixed-Price Supplies and Services)
Question 5
0 out of 4 points
Scenario: Ridings Corporation is a HUBZone small business concern performing a firm-fixed-
price contract valued at $300,000 for the Marine Corps. The contract provides for progress
payments based on costs at the customary progress payment rate. The contract contains all
required FAR and DFARS clauses. Ridings is not using any subcontractors. After the first month
of performance, Ridings has incurred $100,000 in costs and has submitted his first progress
payment request for $95,000.
Question: Pursuant to the terms of the contract, what is the most that the Government should
pay Ridings?
Selected Answer: a.
$80,000
Answers: a.
$80,000
b.
$85,000
Scenario: The Elsesser Corporation is performing a cost-plus fixed-fee research and
development contract for the Navy valued at $1 million. The contract contains all required FAR
and DFARS clauses. The contract requires Elsesser Corporation to deliver four prototypes by 3
February 2014. Elsesser delivers the prototypes on 29 January 2014 and the Government
accepts them.
On 18 February 2014, the Government end user informs the contracting officer that three of the
four prototypes are defective and will need to be repaired. On 3 March 2014, the contracting
officer requests that Elsesser repair or replace the defective prototypes at no cost to the
Government. Elsesser refuses, claiming that they are not liable because the Government already
accepted the prototypes. However, they would be willing to repair or replace the prototypes for
an additional cost and fee.
The delivery of the defective prototypes was not due to fraud, lack of good faith, or willful
misconduct on the part of the contractor, or mismanagement of contractor employees.
Question: Pursuant to the FAR and DFARS clauses in the contract, which of the following is TRUE?
Selected d.
Answer:
The Government must make an equitable adjustment to the contract price.
Answers: a.
Elsesser must repair or replace the prototypes at no cost to the Government
b.
The Government must reimburse Elsesser for its allowable costs of repairing or
replacing the prototypes, but does not have to pay any additional fee.
c.
The Government must reimburse Elsesser for its allowable costs of repairing or
replacing the prototypes and will have to pay an additional fee.
d.
The Government must make an equitable adjustment to the contract price.
Question 2
4 out of 4 points
Where can a contractor appeal a contracting officer’s final decision on their claim?
Selected Answer: a.
, DAU 090 Exam 4
Agency board of contract appeals
Answers: a.
Agency board of contract appeals
b.
Government Accountability Office
c.
U.S. Court of Appeals for the Federal Circuit
d.
U.S. Supreme Court
Question 3
0 out of 4 points
Which of the following is a contract financing payment(s)?
Selected c.
Answer:
Progress payments based on stage of completion under fixed-price
construction contracts or under fixed-price architect-engineer contracts
Answers: a.
Invoice payments and delivery payments
b.
Progress payments based on cost and commercial Interim payments
c.
Progress payments based on stage of completion under fixed-price
construction contracts or under fixed-price architect-engineer contracts
d.
Lease and rental payments
Question 4
4 out of 4 points
, DAU 090 Exam 4
For a supply contract, which one of the following clauses provides for an adjustment to the
delivery schedule if the contracting officer fails to act within the time specified in the contract?
Selected Answer: c.
FAR 52.242-17, Government Delay of Work
Answers: a.
FAR 52.242-14, Suspension of Work
b.
FAR 52.242-15, Stop-Work Order
c.
FAR 52.242-17, Government Delay of Work
d.
FAR 52.249-8, Default (Fixed-Price Supplies and Services)
Question 5
0 out of 4 points
Scenario: Ridings Corporation is a HUBZone small business concern performing a firm-fixed-
price contract valued at $300,000 for the Marine Corps. The contract provides for progress
payments based on costs at the customary progress payment rate. The contract contains all
required FAR and DFARS clauses. Ridings is not using any subcontractors. After the first month
of performance, Ridings has incurred $100,000 in costs and has submitted his first progress
payment request for $95,000.
Question: Pursuant to the terms of the contract, what is the most that the Government should
pay Ridings?
Selected Answer: a.
$80,000
Answers: a.
$80,000
b.
$85,000
