COR Contract Management Fundamentals 3 — Questions and Answers
Question 1: Which contract type reimburses all allowable costs and provides a fixed fee paid regardless of final cost?
- Firm-Fixed-Price
- Cost-Plus-Fixed-Fee (CPFF) (Correct answer)
- Cost-Plus-Incentive-Fee (CPIF)
- Fixed-Price-Incentive (FPI)
Correct answer: Cost-Plus-Fixed-Fee (CPFF)
A Cost-Plus-Fixed-Fee contract reimburses the contractor for all allowable costs and pays a negotiated fixed fee that does not vary with actual cost.
Question 2: When a contractor performs work beyond the contract's scope without a modification, this is known as:
- Constructive change (Correct answer)
- Cardinal change
- Unilateral modification
- Voluntary effort
Correct answer: Constructive change
A constructive change occurs when government actions or inactions cause the contractor to perform work outside the contract scope without a formal change order.
Question 3: Under FAR 52.249-8, the government may terminate a contract for default when the contractor:
- Exceeds the contract ceiling price
- Fails to deliver on time or fails to make progress (Correct answer)
- Submits invoices more than 30 days late
- Requests a contract modification
Correct answer: Fails to deliver on time or fails to make progress
Termination for Default is authorized when the contractor fails to deliver supplies or services on time or fails to make progress so as to endanger contract performance.
Question 4: A COR observes a safety violation by contractor employees on a government site. The immediate action is to:
- Issue the contractor a written cure notice
- Stop the unsafe work and notify the CO and contractor's supervisor (Correct answer)
- Document the violation and wait for the next progress meeting
- Terminate the task order immediately
Correct answer: Stop the unsafe work and notify the CO and contractor's supervisor
Imminent safety hazards require immediate action to stop the dangerous work and notify the CO, though the COR cannot issue formal notices independently.
Question 5: Which FAR clause requires prime contractors to flow down applicable FAR clauses to their subcontractors?
- FAR 52.222-26 Equal Opportunity
- FAR 52.244-6 Subcontracts for Commercial Items (Correct answer)
- FAR 52.203-13 Contractor Code of Business Ethics
- FAR 52.215-2 Audit and Records
Correct answer: FAR 52.244-6 Subcontracts for Commercial Items
FAR 52.244-6 requires prime contractors to include certain FAR clauses in subcontracts for commercial items, ensuring regulatory compliance down the supply chain.
Question 6: What is 'Limitation of Funds' as it applies to cost-reimbursement contracts?
- A cap on the contractor's profit margin
- A clause that requires the contractor to notify the government when costs approach the obligated amount (Correct answer)
- A restriction on the number of subcontractors allowed
- A ceiling on allowable indirect costs
Correct answer: A clause that requires the contractor to notify the government when costs approach the obligated amount
FAR 52.232-22 Limitation of Funds requires the contractor to notify the CO when cumulative costs are expected to reach 75% or 85% of the funding limit, preventing unauthorized overruns.
Question 7: The COR's surveillance documentation serves which critical purpose during contractor performance evaluation?
- It determines the contractor's fee amount
- It provides an objective factual basis for past performance ratings in CPARS (Correct answer)
- It establishes the contract ceiling price
- It authorizes subcontractor payments
Correct answer: It provides an objective factual basis for past performance ratings in CPARS
COR documentation of surveillance activities, issues, and contractor responses forms the factual foundation for objective and defensible past performance ratings in CPARS.
COR Contract Management Fundamentals 3
Which contract type reimburses all allowable costs and provides a fixed fee paid regardless of final cost?