Contract Negotiation & Compliance Flashcards
7 cards from real CMP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Negotiation & Compliance flashcards as text
During a contract negotiation, the government contracting officer insists on adding an unlimited liability clause. What is the BEST capture team response?
Answer: Propose a liability cap tied to contract value or insurance limits
Proposing a liability cap tied to contract value or insurance limits is standard practice that protects the contractor while remaining commercially reasonable.
Which FAR clause requires contractors to disclose cost or pricing data when a contract exceeds the Truth in Negotiations Act (TINA) threshold?
Answer: FAR 52.215-10
FAR 52.215-10 (Price Reduction for Defective Cost or Pricing Data) implements TINA requirements for certified cost or pricing data disclosure.
A contractor discovers a compliance violation three months after contract award. Under FAR 52.203-13, the contractor is required to:
Answer: Self-report the violation to the contracting officer within a reasonable time
FAR 52.203-13 (Contractor Code of Business Ethics and Conduct) requires timely self-disclosure of violations to the contracting officer.
In a best-and-final-offer (BAFO) scenario, a competitor submits a price 20% below your best estimate. The MOST appropriate capture team action is to:
Answer: Analyze whether the competitor has a legitimate cost advantage before adjusting your price
Analyzing the competitor's potential cost advantage ensures any price adjustment is defensible and does not create performance risk.
Which contract type places the MOST financial risk on the contractor?
Answer: Firm-Fixed-Price (FFP)
Under a Firm-Fixed-Price contract, the contractor bears all cost overrun risk because the price does not change regardless of actual costs incurred.
A subcontractor proposes terms that conflict with the prime contract's flow-down clauses. The capture manager should FIRST:
Answer: Identify which prime contract clauses must flow down and negotiate accordingly
Identifying mandatory flow-down clauses establishes the baseline for subcontract negotiations and ensures prime contract compliance.
The Organizational Conflicts of Interest (OCI) mitigation plan submitted with a proposal must address which key element?
Answer: How the contractor will prevent impaired objectivity or unfair competitive advantage
An OCI mitigation plan must demonstrate how the contractor will eliminate, neutralize, or mitigate impaired objectivity or unfair competitive advantage.