Contract Negotiation & Compliance Flashcards

A contractor's proposal includes cost data certified under TINA. Post-award, the government discovers the data was inaccurate. The contractor faces potential liability under:

Answer: Defective pricing provisions allowing price reduction plus interest and penalties

Defective cost or pricing data can result in a price reduction equal to the overstatement, plus interest and potential penalties under FAR 15.407-1.

Which negotiation strategy involves making a large initial concession to establish goodwill and encourage reciprocal concessions from the other party?

Answer: Concession patterning

Concession patterning involves strategically sequencing concessions to signal flexibility and encourage reciprocal movement from the opposing party.

Under DFARS 252.204-7012, contractors handling Controlled Unclassified Information (CUI) must implement cybersecurity controls based on:

Answer: NIST SP 800-171

DFARS 252.204-7012 requires covered contractors to implement the security controls in NIST SP 800-171 for protecting CUI in nonfederal systems.

A capture manager learns that a key subcontractor has been debarred by the federal government. The IMMEDIATE required action is to:

Answer: Remove the debarred subcontractor and notify the contracting officer if required by the contract

Using a debarred subcontractor violates federal procurement regulations; the subcontractor must be removed and the contracting officer notified per contract requirements.

The 'should-cost' analysis performed by the government during contract negotiations is designed to:

Answer: Identify areas where the contractor can reduce costs through improved efficiency

Should-cost analysis identifies specific inefficiencies in the contractor's operations where cost reductions are achievable, providing the government negotiating leverage.

In a contract negotiation, the government invokes the 'most favored customer' pricing clause. This requires the contractor to:

Answer: Provide the government pricing no higher than the lowest price offered to any commercial customer for similar quantities and conditions

Most favored customer pricing clauses require the contractor to extend to the government the same or better pricing offered to the contractor's best commercial customers under comparable conditions.

Which type of contract modification requires mutual agreement of both the contracting officer and the contractor?

Answer: Bilateral modification

Bilateral modifications require signatures from both the contracting officer and the contractor, reflecting mutual agreement on the change.