CFCM Contract Financing & Payments 3

Question 1

Under FAR 32.202, which contract types are eligible for performance-based payments?

Accepted Answer

Fixed-price contracts only

Answer

Cost-reimbursement contracts only

Answer

Time-and-materials contracts only

Answer

All contract types including cost-plus-fixed-fee

Question 2

The 'unusual progress payment' rate that may be authorized for small businesses under FAR 32.501-2 can be as high as:

Accepted Answer

90%

Answer

85%

Answer

95%

Answer

100%

Question 3

When the government makes an erroneous overpayment to a contractor, the Debt Collection Improvement Act requires the government to:

Accepted Answer

Demand repayment and charge interest from the date of the overpayment

Answer

Write off amounts under $100,000 as de minimis errors

Answer

Negotiate a settlement not exceeding 50% of the overpayment

Answer

Offset future payments without notifying the contractor

Question 4

A contractor invoicing under a cost-reimbursement contract must submit a completion invoice or final invoice within how many days after contract completion under FAR 52.216-7?

Accepted Answer

120 days

Answer

60 days

Answer

90 days

Answer

180 days

Question 5

The 'fast payment' procedure under FAR 13.402 allows payment before the government verifies receipt of goods when:

Accepted Answer

The contract is for individual purchases not exceeding $35,000 and the contractor certifies delivery

Answer

The contractor has an outstanding performance record

Answer

The item is classified as a commercial off-the-shelf product

Answer

The purchase is made under an indefinite delivery contract

Question 6

Under FAR 32.112, financing payments made under a subcontract must flow from the prime contractor to the subcontractor within how many days of the prime receiving financing from the government?

Accepted Answer

7 days

Answer

5 days

Answer

10 days

Answer

14 days

Question 7

Which clause is required in all contracts that include progress payment provisions to give the government a security interest in property?

Accepted Answer

FAR 52.232-16, Progress Payments

Answer

FAR 52.232-12, Advance Payments

Answer

FAR 52.232-28, Invitation to Propose Performance-Based Payments

Answer

FAR 52.245-1, Government Property