COR Contract Types & Administration 3 — Questions and Answers
Question 1: What is the primary purpose of a definitization schedule in an undefinitized contract action (UCA)?
- To set the contractor's profit ceiling before award
- To establish milestones for finalizing the contract price within regulatory time limits (Correct answer)
- To define the scope of work before performance begins
- To document the government's minimum order guarantee
Correct answer: To establish milestones for finalizing the contract price within regulatory time limits
A definitization schedule outlines the steps and deadlines—typically within 180 days of award—for the parties to negotiate and finalize a UCA's terms and price.
Question 2: Under FAR 16.301-3, cost-reimbursement contracts are appropriate when:
- The work is well-defined and risk of cost growth is low
- The work cannot be defined with sufficient certainty to allow a fixed price (Correct answer)
- The contractor has a proven track record with similar work
- The total contract value is under the simplified acquisition threshold
Correct answer: The work cannot be defined with sufficient certainty to allow a fixed price
Cost-reimbursement contracts are used when the scope of work involves uncertain technical requirements that make it impossible to define the work precisely enough to price it at a fixed amount.
Question 3: A COR is reviewing deliverables under a performance-based contract. What is the MOST important document the COR should reference?
- The contractor's internal quality control plan
- The Quality Assurance Surveillance Plan (QASP) (Correct answer)
- The contracting officer's warrant
- The contractor's certified cost or pricing data
Correct answer: The Quality Assurance Surveillance Plan (QASP)
The QASP defines how the government will monitor, measure, and document contractor performance against the contract's performance standards.
Question 4: Which of the following is an example of an unauthorized commitment that a COR must avoid?
- Approving a contractor invoice within 30 days
- Directing the contractor to perform additional work not in the contract (Correct answer)
- Conducting a site visit to inspect contract deliverables
- Maintaining a contract administration file
Correct answer: Directing the contractor to perform additional work not in the contract
Only the Contracting Officer has the authority to obligate the government; a COR who directs out-of-scope work creates an unauthorized commitment that may result in a violation of the Anti-Deficiency Act.
Question 5: What is the key characteristic of an Indefinite-Delivery/Requirements contract?
- The government commits to ordering a fixed quantity over the contract period
- The government orders all of its actual requirements from the contractor during the contract period (Correct answer)
- The government may award task orders to multiple contractors simultaneously
- The contractor sets the price for each order individually
Correct answer: The government orders all of its actual requirements from the contractor during the contract period
Under a Requirements contract (FAR 16.503), the government commits to purchasing all of its actual requirements for specified supplies or services from the contractor during the contract period.
Question 6: Which contract incentive structure rewards the contractor for completing work BELOW a target cost?
- Cost-Plus-Fixed-Fee
- Firm-Fixed-Price
- Cost-Plus-Incentive-Fee (Correct answer)
- Labor-Hour contract
Correct answer: Cost-Plus-Incentive-Fee
Under a CPIF contract, when actual costs fall below the target cost, the contractor shares in the savings according to a pre-negotiated share ratio, increasing the contractor's total fee.
Question 7: A contract modification that is within the scope of the original contract and signed by only the Contracting Officer is called a:
- Supplemental agreement
- Bilateral modification
- Unilateral modification (Correct answer)
- Request for equitable adjustment
Correct answer: Unilateral modification
A unilateral modification (SF 30, block 13A) is signed only by the Contracting Officer and is used for actions within the contract's existing scope, such as exercising options or issuing administrative changes.
COR Contract Types & Administration 3
What is the primary purpose of a definitization schedule in an undefinitized contract action (UCA)?