1|Page
CON 3900 CONTRACTING FINAL EXAM | ACCURATE
CURRENTLY TESTING VERSIONS WITH 150
QUESTIONS WITH DETAILED ANSWERS AND A
COMPREHENSIVE EXAM PREP STUDY GUIDE |
ACCURATE FOR GUARANTEED PASS||LATEST
EXAM!!!
What the Firm-Fixed-Price Level-of-Effort Term Contracts
are typically used? - ANSWER-This type of contract is
typically used for studies and generally restricted for use
to the Simplified Acquisition Threshold (SAT) or less;
however the chief of the contracting office can approve a
higher limit.
What is the incentive contract? - ANSWER-Incentive
contracts provide the opportunity for the contractor to
realize increased profit/fee for attaining cost, performance
and/or schedule criteria.
Incentives can include both positive rewards and/or
negative rewards - ANSWER-True
In incentive contracts to achieve the desired objectives -
ANSWER-reasonable and attainable targets MUST
communicated to the contractor
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What are the incentives can be used for? - ANSWER-
Incentives can be used for cost, performance or delivery
Who has control over the incentives after the contract has
been awarded? - ANSWER-the contractor has control
over how to pursue the incentives
No incentive contract may provide for other incentives
without also providing a cost incentive or constraint -
ANSWER-True
What are the two basic types of incentive contracts that
incentivize objective elements (e.g. cost): - ANSWER-1.
Fixed-price incentive contracts
2. Cost reimbursement incentive contracts.
Fixed-price incentive contracts - ANSWER-Provide for the
adjustment of profit and establishment of the final contract
price
What does the adjustment of profit and establishment of
the final contract price is based on in Fixed-price incentive
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contracts? - ANSWER-It is based on the relationship of
final negotiated total cost to the total target cost.
What are the Fixed-Price Incentive Contracts typically
used for? - ANSWER-the Fixed-Price Incentive Contracts
typically used development and production efforts
What are the two forms of fixed-price incentive (FPI)
contracts? - ANSWER-1. Firm target (FPI(F))
2. Successive targets (FPI(S))
FPI contracts are used to manage a range of cost
uncertainty - ANSWER-True
A fixed-price incentive (firm target) (FPI(F)) contract
specifies - ANSWER-target cost
target profit
price ceiling
profit adjustment formula
During the fixed-price incentive (firm target) (FPI(F))
contract all specified elements are negotiated prior to to
award - ANSWER-True
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For the Fixed-Price Incentive (Firm Target) Contracts
when the final cost, and the final price is established? -
ANSWER-When the contractor completes performance.
How long should the CPARS reporting proces take? -
ANSWER-The CPARS reporting process should take no
longer than 120 days.
Phases of the Contracting Process - ANSWER-Pre-
Award; Award; Post-Award
Pre-award phase consists of two primary activities: -
ANSWER-1. Develop Solicitation (for our purposes, this is
done by the Government or the contractor, focused on
obtaining a subcontractor).
2. Develop Offer (this is done by the Contractor or
Subcontractor)
Award phase consists of one primary activity: - ANSWER-
Form Contract: Evaluation of Offers; Negotiation and
discussion; Selection of awardees
Post-award phase consists of two primary activities: -
ANSWER-1. Perform Contract
CON 3900 CONTRACTING FINAL EXAM | ACCURATE
CURRENTLY TESTING VERSIONS WITH 150
QUESTIONS WITH DETAILED ANSWERS AND A
COMPREHENSIVE EXAM PREP STUDY GUIDE |
ACCURATE FOR GUARANTEED PASS||LATEST
EXAM!!!
What the Firm-Fixed-Price Level-of-Effort Term Contracts
are typically used? - ANSWER-This type of contract is
typically used for studies and generally restricted for use
to the Simplified Acquisition Threshold (SAT) or less;
however the chief of the contracting office can approve a
higher limit.
What is the incentive contract? - ANSWER-Incentive
contracts provide the opportunity for the contractor to
realize increased profit/fee for attaining cost, performance
and/or schedule criteria.
Incentives can include both positive rewards and/or
negative rewards - ANSWER-True
In incentive contracts to achieve the desired objectives -
ANSWER-reasonable and attainable targets MUST
communicated to the contractor
,2|Page
What are the incentives can be used for? - ANSWER-
Incentives can be used for cost, performance or delivery
Who has control over the incentives after the contract has
been awarded? - ANSWER-the contractor has control
over how to pursue the incentives
No incentive contract may provide for other incentives
without also providing a cost incentive or constraint -
ANSWER-True
What are the two basic types of incentive contracts that
incentivize objective elements (e.g. cost): - ANSWER-1.
Fixed-price incentive contracts
2. Cost reimbursement incentive contracts.
Fixed-price incentive contracts - ANSWER-Provide for the
adjustment of profit and establishment of the final contract
price
What does the adjustment of profit and establishment of
the final contract price is based on in Fixed-price incentive
,3|Page
contracts? - ANSWER-It is based on the relationship of
final negotiated total cost to the total target cost.
What are the Fixed-Price Incentive Contracts typically
used for? - ANSWER-the Fixed-Price Incentive Contracts
typically used development and production efforts
What are the two forms of fixed-price incentive (FPI)
contracts? - ANSWER-1. Firm target (FPI(F))
2. Successive targets (FPI(S))
FPI contracts are used to manage a range of cost
uncertainty - ANSWER-True
A fixed-price incentive (firm target) (FPI(F)) contract
specifies - ANSWER-target cost
target profit
price ceiling
profit adjustment formula
During the fixed-price incentive (firm target) (FPI(F))
contract all specified elements are negotiated prior to to
award - ANSWER-True
, 4|Page
For the Fixed-Price Incentive (Firm Target) Contracts
when the final cost, and the final price is established? -
ANSWER-When the contractor completes performance.
How long should the CPARS reporting proces take? -
ANSWER-The CPARS reporting process should take no
longer than 120 days.
Phases of the Contracting Process - ANSWER-Pre-
Award; Award; Post-Award
Pre-award phase consists of two primary activities: -
ANSWER-1. Develop Solicitation (for our purposes, this is
done by the Government or the contractor, focused on
obtaining a subcontractor).
2. Develop Offer (this is done by the Contractor or
Subcontractor)
Award phase consists of one primary activity: - ANSWER-
Form Contract: Evaluation of Offers; Negotiation and
discussion; Selection of awardees
Post-award phase consists of two primary activities: -
ANSWER-1. Perform Contract
