COR Contract Types & Administration 2

Question 1

Under a Time-and-Materials (T&M) contract, what is the government's primary financial risk?

Accepted Answer

The contractor may underperform without penalty since profit is fixed

Answer

In T&M contracts, the contractor is paid a fixed hourly rate regardless of efficiency, reducing the contractor's incentive to control costs or labor hours.

Question 2

Which contract type places the MOST financial risk on the contractor?

Accepted Answer

Firm-Fixed-Price (FFP)

Answer

Under a Firm-Fixed-Price contract, the contractor bears all cost risk because the price does not change regardless of actual costs incurred.

Question 3

A COR notices the contractor is consistently billing labor categories at rates higher than those specified in the contract. What should the COR do first?

Accepted Answer

Document the discrepancy and notify the Contracting Officer

Answer

The COR must document billing discrepancies and report them to the Contracting Officer, who has the authority to take corrective action.

Question 4

What distinguishes a Cost-Plus-Award-Fee (CPAF) contract from a Cost-Plus-Fixed-Fee (CPFF) contract?

Accepted Answer

CPAF has a variable fee tied to subjective performance evaluation; CPFF has a fixed fee

Answer

CPAF allows the government to award an additional fee based on periodic subjective evaluation of contractor performance, whereas CPFF pays a predetermined fixed fee.

Question 5

Which FAR part primarily governs contract types in federal acquisition?

Accepted Answer

FAR Part 16

Answer

FAR Part 16 establishes policies for selecting and using various contract types, including fixed-price, cost-reimbursement, and incentive contracts.

(COR) Contracting Officer's Representative Certification Practice Test

(COR) Contracting Officer's Representative Certification Practice Test

COR Contract Types & Administration 2