CCC Contract Management & Procurement 3

Question 1

In cost-reimbursable contracts, 'indirect costs' are typically recovered through which mechanism?

Accepted Answer

Predetermined overhead rates applied to direct costs

Answer

Indirect costs such as overhead and G&A are recovered by applying government-approved or negotiated indirect cost rates to direct cost bases.

Question 2

A 'should-pay' analysis differs from a 'should-cost' analysis in that should-pay analysis:

Accepted Answer

Evaluates whether the actual invoice reflects what was contractually agreed

Answer

Should-pay analysis compares an invoice against the contract terms to determine what amount is legitimately owed, rather than estimating from first principles.

Question 3

Which contract modification type does NOT require consideration (something of value exchanged by both parties)?

Accepted Answer

Unilateral modification

Answer

A unilateral modification is issued by the buyer alone under authority granted in the contract (such as a Change Order or Administrative Change) and does not require contractor agreement.

Question 4

When a contractor submits a Request for Equitable Adjustment (REA), the cost controller's role is to:

Accepted Answer

Analyze the claimed costs for reasonableness, allowability, and allocability

Answer

The cost controller reviews REAs by assessing whether claimed costs are reasonable (market-rate), allowable (permitted by contract/regulation), and allocable (directly caused by the change).

Question 5

In competitive procurement, 'price reasonableness' is best established by:

Accepted Answer

Comparing the offered price to multiple competitive bids or market data

Answer

Price reasonableness is determined by comparing offers against each other, historical prices, independent government estimates, or published market prices.

CCC Practice Test

CCC Practice Test

CCC Contract Management & Procurement 3