CCB Contract Compliance & Management 5

Question 1

A contractor submits a Request for Equitable Adjustment (REA) after the government changes the contract scope. What is the contractor claiming?

Accepted Answer

Compensation for increased costs or time caused by a government-directed change

Answer

An REA is a contractor's formal request to adjust price, schedule, or both to account for increased costs or time resulting from a government-directed change.

Question 2

Which ethical risk is most associated with 'organizational conflict of interest' (OCI) in government contracting?

Accepted Answer

A contractor using access to non-public information to gain an unfair competitive advantage

Answer

OCI occurs when a contractor's work for the government gives it unfair access to non-public information or the ability to bias future competitions in its favor.

Question 3

What distinguishes a 'warranty' from a 'guarantee' in a contract compliance context?

Accepted Answer

A warranty is a seller's promise about product quality; a guarantee often refers to a third-party assurance of performance

Answer

A warranty is the seller's direct promise about goods or services meeting certain standards, while a guarantee typically involves a third party (like a surety) assuring performance.

Question 4

In contract compliance, what is the significance of a 'cure notice'?

Accepted Answer

It gives the contractor a specified time to correct a failure before termination for default

Answer

A cure notice is a formal written warning giving the contractor a defined period (typically 10 days) to remedy a performance failure before the contract is terminated for default.

Question 5

A compliance manager is reviewing a Cost-Plus-Incentive-Fee (CPIF) contract. Which feature is unique to this contract type?

Accepted Answer

The fee adjusts based on how well the contractor controls costs against targets

Answer

CPIF contracts include a target cost and fee, with the actual fee increasing or decreasing based on the contractor's cost performance relative to the target.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Contract Compliance & Management 5