Contracting_Test_3_Final
How many provisions and clauses are required in a commercial items contract? -
ANS-There are only two provisions and two clauses that are mandatory for commercial
items.
Why provide contract financing? - ANS-- High dollar production
- Expedited performance
- Broadening of the production base
- Increased competition
- Aid to small businesses
- Fosters liberal lending by private lending institutions
• Meets contractors need/minimizes Govt risk
What is the least preferred method of contract financing? - ANS-Advance payment is
the least preferred and cannot exceed 15%.
What are two types of price index numbers? - ANS-Simple index numbers calculate
price changes for a single item over time.
Aggregate index numbers calculate price changes for a group of related items over
time.
What is price reasonableness? - ANS-The price a prudent buyer would be willing to pay
given market conditions and other factors. It is the KO's responsibility to make a
decision.
What is unilateral modification? - ANS-• Only contracting officer's signature needed
• Change order issued per the changes clause (within scope of contract)
What is bilateral modification? - ANS-• Requires the signature of the Contracting Officer
and the contractor
• A negotiated equitable adjustment resulting from the issuance of a change order
An "in-scope" modification does not: - ANS-- Place an undue burden on the contractor
- Change the function of the service or contract purpose/intent
, - Change the original competitive factors
Out-of-scope Changes - ANS-considered "cardinal changes"
What are cardinal changes? - ANS-- Are not in scope
- Should be the exception, not the rule
- Are not prohibited
- May require a J&A
What is constructive changes? - ANS-Oral or written act or failure to act by Government
official (in a position of authority) construed by contractor as having same effect as a
written change order.
What is Termination for Convenience (T4C)? - ANS-The exercise of the Government's
right to completely or partially terminate performance of work under a contract when it is
in the Government's interest.
What is Termination for Default (T4D)? - ANS-The exercise of the Government's right to
completely or partially terminate a contract because of the contractor's actual or
anticipated failure to perform its contractual obligations (non-commercial)
Termination is covered in - ANS-FAR Part 49
Contractor's Rights under a T4C: - ANS-• The contractor may recover:
a. Its performance costs incurred up to the date of termination
b. Certain costs that continue after the date of termination
c. Termination expenses
d. Profit or fee for the work performed
Cure Notice: - ANS-• Is a delinquency notice to the contractor
• Is required for a termination for default
• Must have "10" days left in the contractor period of performance to issue a "cure
notice"
• If 10 days are not remaining, the "cure notice" would, in effect, extend the period of
performance
How many provisions and clauses are required in a commercial items contract? -
ANS-There are only two provisions and two clauses that are mandatory for commercial
items.
Why provide contract financing? - ANS-- High dollar production
- Expedited performance
- Broadening of the production base
- Increased competition
- Aid to small businesses
- Fosters liberal lending by private lending institutions
• Meets contractors need/minimizes Govt risk
What is the least preferred method of contract financing? - ANS-Advance payment is
the least preferred and cannot exceed 15%.
What are two types of price index numbers? - ANS-Simple index numbers calculate
price changes for a single item over time.
Aggregate index numbers calculate price changes for a group of related items over
time.
What is price reasonableness? - ANS-The price a prudent buyer would be willing to pay
given market conditions and other factors. It is the KO's responsibility to make a
decision.
What is unilateral modification? - ANS-• Only contracting officer's signature needed
• Change order issued per the changes clause (within scope of contract)
What is bilateral modification? - ANS-• Requires the signature of the Contracting Officer
and the contractor
• A negotiated equitable adjustment resulting from the issuance of a change order
An "in-scope" modification does not: - ANS-- Place an undue burden on the contractor
- Change the function of the service or contract purpose/intent
, - Change the original competitive factors
Out-of-scope Changes - ANS-considered "cardinal changes"
What are cardinal changes? - ANS-- Are not in scope
- Should be the exception, not the rule
- Are not prohibited
- May require a J&A
What is constructive changes? - ANS-Oral or written act or failure to act by Government
official (in a position of authority) construed by contractor as having same effect as a
written change order.
What is Termination for Convenience (T4C)? - ANS-The exercise of the Government's
right to completely or partially terminate performance of work under a contract when it is
in the Government's interest.
What is Termination for Default (T4D)? - ANS-The exercise of the Government's right to
completely or partially terminate a contract because of the contractor's actual or
anticipated failure to perform its contractual obligations (non-commercial)
Termination is covered in - ANS-FAR Part 49
Contractor's Rights under a T4C: - ANS-• The contractor may recover:
a. Its performance costs incurred up to the date of termination
b. Certain costs that continue after the date of termination
c. Termination expenses
d. Profit or fee for the work performed
Cure Notice: - ANS-• Is a delinquency notice to the contractor
• Is required for a termination for default
• Must have "10" days left in the contractor period of performance to issue a "cure
notice"
• If 10 days are not remaining, the "cure notice" would, in effect, extend the period of
performance
