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CCC Contract Management & Procurement Flashcards

6 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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

    Answer: Executed Change Order

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

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

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

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

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

    Answer: $2 million

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

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

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

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

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

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

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

  6. In procurement, what does 'total cost of ownership (TCO)' analysis help a cost controller evaluate?

    Answer: All lifecycle costs including acquisition, operation, maintenance, and disposal — not just purchase price

    TCO analysis ensures procurement decisions account for the full economic impact over an asset's life, preventing low-bid traps with high operating costs.