CMP Contract Negotiation & Compliance 3 — Questions and Answers
Question 1: Under the Service Contract Act (SCA), what is the contractor's primary compliance obligation regarding wages?
- Pay wages at least equal to the federal minimum wage only
- Pay at least the wage rates and fringe benefits listed in the applicable wage determination (Correct answer)
- Negotiate wages freely with employees without government restriction
- Pay wages based solely on the contractor's internal pay scales
Correct answer: Pay at least the wage rates and fringe benefits listed in the applicable wage determination
The SCA requires contractors to pay service employees at least the wage rates and fringe benefits specified in the Department of Labor wage determination for the contract.
Question 2: A contracting officer proposes a unilateral contract modification to reduce the scope of work but not the price. The contractor's BEST immediate response is to:
- Accept the modification to maintain the relationship with the customer
- Submit a written protest to the contracting officer within 10 days
- Provide written notice of disagreement and submit a request for equitable adjustment (REA) (Correct answer)
- Cease performance until the scope and price are realigned
Correct answer: Provide written notice of disagreement and submit a request for equitable adjustment (REA)
Submitting written notice of disagreement and an REA preserves the contractor's rights to compensation while maintaining contract performance.
Question 3: Which document establishes the baseline for measuring contract changes and is critical for proving constructive change claims?
- The contract performance work statement (PWS)
- The original proposal and contract as executed (Correct answer)
- The contractor's internal work breakdown structure
- The government's independent cost estimate (IGCE)
Correct answer: The original proposal and contract as executed
The original proposal and contract as executed establish the agreed-upon scope baseline against which any constructive changes are measured.
Question 4: In the context of CMP capture management, 'price-to-win' (PTW) analysis is BEST used to:
- Determine the maximum price the customer is willing to pay
- Establish the contractor's internal cost floor for the contract
- Estimate the price range most likely to win the contract given competitor capabilities and customer budget (Correct answer)
- Calculate the fee percentage needed to meet corporate profit targets
Correct answer: Estimate the price range most likely to win the contract given competitor capabilities and customer budget
PTW analysis synthesizes competitor intelligence and customer budget data to identify the price range most likely to result in a contract award.
Question 5: Which of the following is a red flag indicating a potential Procurement Integrity Act violation during a source selection?
- A contracting officer sharing the solicitation publicly on SAM.gov
- A source selection evaluator discussing evaluation criteria with an offeror before proposals are due (Correct answer)
- A program manager attending an industry day hosted by the government
- A contractor submitting questions via the formal Q&A process
Correct answer: A source selection evaluator discussing evaluation criteria with an offeror before proposals are due
Sharing non-public source selection information, including evaluation criteria specifics, with an offeror violates the Procurement Integrity Act.
Question 6: A teaming agreement should explicitly address which provision to protect each party's proprietary information?
- Profit-sharing formulas for the prime contract
- Non-disclosure and intellectual property ownership terms (Correct answer)
- The team's past performance ratings for the RFP
- Marketing responsibilities for follow-on contracts
Correct answer: Non-disclosure and intellectual property ownership terms
Non-disclosure and IP ownership provisions in teaming agreements protect each party's proprietary data shared during the pursuit.
Question 7: When a contract includes a 'limitation of funds' clause (FAR 52.232-22), the contractor must notify the contracting officer when expenditures reach what threshold?
- 50% of the obligated funds
- 75% of the obligated funds (Correct answer)
- 90% of the obligated funds
- 100% of the obligated funds
Correct answer: 75% of the obligated funds
FAR 52.232-22 requires the contractor to notify the contracting officer when 75% of the obligated funds have been expended to allow time for additional funding.
CMP Contract Negotiation & Compliance 3
Under the Service Contract Act (SCA), what is the contractor's primary compliance obligation regarding wages?