Contract Performance and Administration Flashcards

When a contractor submits a request for equitable adjustment (REA), what must it demonstrate?

Answer: That the government caused a change entitling the contractor to additional compensation

An REA requires the contractor to show entitlement (a government-caused change), causation, and the resulting cost impact to justify additional compensation.

Which report provides the government with the contractor's current projection of total costs at contract completion?

Answer: Estimate at Completion (EAC)

The Estimate at Completion forecasts total cost by combining actual costs to date with an estimate to complete the remaining work, alerting the government to potential overruns.

What is the primary function of a Contract Discrepancy Report (CDR)?

Answer: To formally notify the contractor of a performance deficiency requiring corrective action

A CDR is used by the COR to document performance deficiencies and trigger the contractor's obligation to respond with a corrective action plan.

Property management accountability in government contracts requires the contractor to:

Answer: Maintain records of all government-furnished property and report any loss, damage, or destruction

FAR Part 45 requires contractors to establish a property management system and report any loss, damage, or destruction of government property to the contracting officer.

Which of the following is a key indicator that a contractor may be in financial distress during contract performance?

Answer: Contractor's payroll accounts show NSF (non-sufficient funds) warnings and key staff turnover increases

Signs of financial distress include payroll problems, high employee turnover, delayed material deliveries, and difficulty paying subcontractors — all early warning indicators.

Subcontractor consent under FAR 44.2 is required primarily to:

Answer: Ensure the prime contractor selects subcontractors whose costs will be allowable and whose performance is adequate

Consent to subcontract protects the government by verifying that the prime selected an appropriate subcontractor at a fair price before obligating government funds to flow-down.