CPCM Contract Formation and Types 2

Question 1

What is the primary purpose of a letter contract or undefinitized contract action (UCA)?

Accepted Answer

To authorize work to begin before final price negotiation is complete

Answer

To bypass competitive bidding

Answer

To establish a long-term pricing agreement

Answer

To document verbal agreements between parties

Question 2

Under US federal contracting, which FAR part primarily governs contract types?

Accepted Answer

FAR Part 16

Answer

FAR Part 12

Answer

FAR Part 15

Answer

FAR Part 19

Question 3

A Basic Ordering Agreement (BOA) is best described as:

Accepted Answer

A written instrument establishing terms for future orders but not itself a contract

Answer

A binding contract with a guaranteed minimum order

Answer

A framework agreement that obligates the government to a set quantity

Answer

A type of blanket purchase agreement used only for commercial items

Question 4

Which statement about requirements contracts is most accurate?

Accepted Answer

They obligate the government to purchase all actual requirements from the contractor

Answer

They guarantee a fixed purchase quantity

Answer

They are used exclusively for construction projects

Answer

They allow multiple contractors to compete for each delivery order

Question 5

What distinguishes a unilateral contract modification from a bilateral one?

Accepted Answer

Unilateral modifications are signed only by the contracting officer

Answer

Unilateral modifications require the contractor's signature

Answer

Bilateral modifications cannot change the contract price

Answer

Bilateral modifications must be approved by the SBA

Question 6

Which contract type provides the contractor an incentive fee based on achieving target cost and performance objectives?

Accepted Answer

Fixed-Price Incentive (Firm Target)

Answer

Firm-Fixed-Price

Answer

Cost-Plus-Award-Fee

Answer

Cost-Plus-Fixed-Fee