CCC CCC Contract Management & Procurement 2

Question 1

Which document formally authorizes a change to the contract price or scope?

Accepted Answer

Executed Change Order

Answer

An executed (signed) Change Order is the contractual instrument that officially modifies the price, scope, or schedule of a contract.

Question 2

A cost controller is tracking 'contract value vs. committed cost.' What does committed cost represent?

Accepted Answer

The total of all awarded subcontracts, purchase orders, and approved change orders

Answer

Committed costs include all contractual obligations (subcontracts, POs, change orders) regardless of whether invoices have been received.

Question 3

Under the US Federal Acquisition Regulation (FAR), what is the threshold above which a contracting officer must obtain certified cost or pricing data?

Accepted Answer

$2 million

Answer

FAR 15.403-4 requires certified cost or pricing data for negotiated contracts exceeding $2 million (as of the current threshold).

Question 4

What is the primary risk of using a Cost-Plus-Percentage-of-Cost (CPPC) contract?

Accepted Answer

It incentivizes the contractor to increase costs since profit grows with spending

Answer

CPPC contracts create a perverse incentive because the contractor earns more profit as costs rise, making cost control difficult.

Question 5

A cost controller notices a vendor invoice does not match the approved purchase order amount. The correct action is to:

Accepted Answer

Place the invoice on hold and issue a variance notice for resolution before payment

Answer

A three-way match (PO, receiving report, invoice) must reconcile before payment; discrepancies require formal resolution through a variance notice.

CCC Practice Test

CCC Practice Test

CCC CCC Contract Management & Procurement 2