CPCM Contract Formation and Types

Question 1

Which element is NOT required for a valid contract to be formed?

Accepted Answer

Notarization

Answer

Offer

Answer

Acceptance

Answer

Consideration

Question 2

A firm-fixed-price (FFP) contract places the cost risk primarily on which party?

Accepted Answer

The contractor

Answer

The government

Answer

Both parties equally

Answer

A third-party guarantor

Question 3

What type of contract reimburses the contractor for all allowable costs plus a fixed fee?

Accepted Answer

Cost-Plus-Fixed-Fee (CPFF)

Answer

Time and Materials (T&M)

Answer

Firm-Fixed-Price (FFP)

Answer

Fixed-Price Incentive (FPI)

Question 4

Which contract type is considered the highest risk for the government?

Accepted Answer

Cost-Plus-Percentage-of-Cost

Answer

Firm-Fixed-Price

Answer

Fixed-Price Incentive

Answer

Indefinite Delivery/Indefinite Quantity

Question 5

An Indefinite Delivery/Indefinite Quantity (IDIQ) contract must specify a:

Accepted Answer

Minimum and maximum quantity

Answer

Maximum quantity only

Answer

Exact delivery schedule

Answer

Fixed unit price for all orders

Question 6

Which of the following best describes a Time and Materials (T&M) contract?

Accepted Answer

Payment for labor hours at fixed rates plus actual material costs

Answer

Fixed price per deliverable

Answer

Reimbursement of costs plus a percentage fee

Answer

Lump-sum payment upon project completion