WARRANT BOARD EXAM|COMPLETE
QUESTIONS WITH A+ GRADED ANSWERS
When would you use a Time-and-materials (T&M) contract? Why is it the least preferred? (far 16.601)
- Use a T&M contract only when no other contract type is suitable.
- Use when you cannot accurately estimate the extent or duration of the work or anticipated costs
with a reasonable degree of confidence.
- A D&F is required.
When would you use a Time-and-materials (T&M) contract? Why is it the least preferred? (far 16.601)
part 2 of question
- Pros: T&M contracts can be more flexible & more expedient than other types of contracts.
Flexibility may be required if the task cannot be fully defined.
When would you use a Time-and-materials (T&M) contract? Why is it the least preferred? (far 16.601)
part 3 of question
- T&M contracts are the least preferred because of the amount of high amount of risk placed on the
Government.
- The amount of profit paid to the Contractor is tied to the number of hours worked. There is no
incentive for the Contractor to control costs or hours. The Government bears the risk of cost
overruns.
- Requires close surveillance by the Government.
- Should include a ceiling price that the contractor exceeds at its own risk
Factors to consider in selecting Contract Type: part 1
- Level of Competition
- Price analysis (Degree to which price analysis can provide a realistic pricing)
Factors to consider in selecting Contract Type: part 2
- Cost analysis
(In the absence of effective price competition and if price analysis is not sufficient, the cost estimates
of the offeror and the Government provide the bases for negotiating contract pricing arrangements. It
is essential that the uncertainties involved in performance and their possible impact upon costs be
identified and evaluated, so that a contract type that places a reasonable degree of cost responsibility
upon the contractor can be negotiated.)
Factors to consider in selecting Contract Type: part 3
- Type/Complexity of requirement
(Complex requirements, particularly those unique to the Government, usually result in greater risk
assumption by the Government. As a requirement recurs or as quantity production begins, the cost
risk should shift to the contractor, and a fixed-price contract should be considered.)
Factors to consider in selecting Contract Type: part 4
- Urgency
QUESTIONS WITH A+ GRADED ANSWERS
When would you use a Time-and-materials (T&M) contract? Why is it the least preferred? (far 16.601)
- Use a T&M contract only when no other contract type is suitable.
- Use when you cannot accurately estimate the extent or duration of the work or anticipated costs
with a reasonable degree of confidence.
- A D&F is required.
When would you use a Time-and-materials (T&M) contract? Why is it the least preferred? (far 16.601)
part 2 of question
- Pros: T&M contracts can be more flexible & more expedient than other types of contracts.
Flexibility may be required if the task cannot be fully defined.
When would you use a Time-and-materials (T&M) contract? Why is it the least preferred? (far 16.601)
part 3 of question
- T&M contracts are the least preferred because of the amount of high amount of risk placed on the
Government.
- The amount of profit paid to the Contractor is tied to the number of hours worked. There is no
incentive for the Contractor to control costs or hours. The Government bears the risk of cost
overruns.
- Requires close surveillance by the Government.
- Should include a ceiling price that the contractor exceeds at its own risk
Factors to consider in selecting Contract Type: part 1
- Level of Competition
- Price analysis (Degree to which price analysis can provide a realistic pricing)
Factors to consider in selecting Contract Type: part 2
- Cost analysis
(In the absence of effective price competition and if price analysis is not sufficient, the cost estimates
of the offeror and the Government provide the bases for negotiating contract pricing arrangements. It
is essential that the uncertainties involved in performance and their possible impact upon costs be
identified and evaluated, so that a contract type that places a reasonable degree of cost responsibility
upon the contractor can be negotiated.)
Factors to consider in selecting Contract Type: part 3
- Type/Complexity of requirement
(Complex requirements, particularly those unique to the Government, usually result in greater risk
assumption by the Government. As a requirement recurs or as quantity production begins, the cost
risk should shift to the contractor, and a fixed-price contract should be considered.)
Factors to consider in selecting Contract Type: part 4
- Urgency
