Certified Professional Contract Manager: Contract Modifications and Change Management Flashcards

Under the Contract Disputes Act, the statute of limitations for submitting a claim is:

Answer: 6 years from the date of the claim accrual

The Contract Disputes Act establishes a 6-year statute of limitations from the date a claim accrues for submitting contractor claims to the contracting officer.

When a contract modification requires the contractor to accelerate performance (complete work faster than scheduled), this is typically addressed through an equitable adjustment for:

Answer: Additional labor, overtime, and associated costs

Acceleration requires the contractor to expend additional resources such as overtime labor, and an equitable adjustment compensates for these increased costs.

A 'novation agreement' in contract modification is used when:

Answer: A contractor transfers all rights and obligations under a contract to a successor organization

A novation agreement recognizes the legal transfer of a contract from one contractor to a successor, substituting the new entity as the party bound by all contract terms.

Which of the following is a key risk of issuing undefinitized contract actions (UCAs)?

Answer: The government loses negotiating leverage once the contractor has incurred costs

Once costs are sunk, the contractor's negotiating position strengthens and the government loses leverage, often resulting in higher definitized prices.

When calculating an equitable adjustment for a contract change, which of the following cost elements is generally NOT allowable under FAR?

Answer: Interest on costs incurred prior to claim certification

FAR 31.205-20 classifies interest on borrowings and related costs as unallowable, though interest may be awarded post-claim by courts or boards.

A 'definitization schedule' for an undefinitized contract action typically requires the contractor to submit a qualifying proposal within how many days of the UCA's issuance?

Answer: 60 days

DFARS 217.7404-3 requires contractors to submit a qualifying proposal within 60 days of the UCA's issuance to support timely definitization.

Which of the following best describes the 'actual cost' method versus the 'estimated cost' method for pricing contract modifications?

Answer: Actual cost uses historical data from completed work; estimated cost uses forward-looking projections for work not yet performed

The actual cost method is used when change work is complete and real costs are known, while the estimated cost method projects costs for work yet to be performed.