Contract Compliance & Management Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Compliance & Management flashcards as text
What is the key difference between a contract 'termination for default' and 'termination for convenience'?
Answer: Termination for default is based on a breach; convenience is a unilateral right with compensation
Termination for default is triggered by a party's failure to perform, while termination for convenience allows a party (typically the government) to end the contract without breach, with compensation owed.
A contract compliance review reveals that a vendor's subcontractor is on the Excluded Parties List System (EPLS). What action is required?
Answer: Immediately halt using the debarred subcontractor and notify the contracting officer
Federal regulations prohibit awarding subcontracts to debarred or suspended entities; the prime contractor must cease using them and notify the contracting officer.
Which of the following is an example of a 'liquidated damages' provision?
Answer: For each day of delay beyond the deadline, the contractor pays $5,000
Liquidated damages clauses pre-establish a specific monetary amount per unit of breach (e.g., per day late), agreed upon in advance as a reasonable estimate of harm.
What is the purpose of a 'right to audit' clause in a contract?
Answer: To give the buyer the right to examine the contractor's books and records related to the contract
A right to audit clause allows the contracting party to inspect the contractor's relevant financial records to verify billing accuracy and compliance.
Under the Federal Acquisition Regulation (FAR), what is the simplified acquisition threshold's primary purpose?
Answer: To establish a dollar threshold below which streamlined purchasing procedures apply
The simplified acquisition threshold allows agencies to use less burdensome procurement procedures for purchases below the threshold, reducing administrative burden.
A long-term service contract includes an economic price adjustment (EPA) clause. What does this clause allow?
Answer: Contract prices to be adjusted based on a defined index or formula over time
An EPA clause allows pre-defined price adjustments tied to specified indices (like CPI or labor cost indices) to account for cost changes during a long-term contract.
Which contract management best practice helps prevent disputes about deliverable quality after the fact?
Answer: Defining clear, measurable acceptance criteria in the contract
Clearly defined, measurable acceptance criteria provide an objective basis for evaluating deliverables and reduce the risk of post-delivery disputes.