CPCM Certified Professional Contract Manager: Contract Modifications and Change Management 2 — Questions and Answers
Question 1: Under the Changes clause, a contractor must submit a proposal for an equitable adjustment within how many days of receiving a change order, unless the contracting officer specifies otherwise?
- 30 days (Correct answer)
- 45 days
- 60 days
- 90 days
Correct answer: 30 days
FAR 52.243-1 requires the contractor to assert its right to an equitable adjustment within 30 days of receiving the change order.
Question 2: Which of the following best describes a value engineering change proposal (VECP)?
- A government-directed change to reduce cost
- A contractor-initiated proposal to change a requirement in a way that reduces cost while maintaining required performance (Correct answer)
- A mandatory modification required by a new regulation
- A change required to correct a design deficiency
Correct answer: A contractor-initiated proposal to change a requirement in a way that reduces cost while maintaining required performance
A VECP is voluntarily submitted by the contractor proposing changes to reduce contract cost while maintaining required performance, with savings shared between the government and contractor.
Question 3: When a change order is issued and the cost impact cannot be agreed upon before work must begin, the contract may include a:
- Definitized change order
- Undefinitized contract action (UCA) (Correct answer)
- Supplemental agreement
- Novation agreement
Correct answer: Undefinitized contract action (UCA)
An undefinitized contract action allows work to begin before price is agreed upon, with definitization required within a set timeframe.
Question 4: The 'Changes' clause in a fixed-price contract typically covers changes in all of the following EXCEPT:
- Specifications
- Method of shipment or packing
- Place of delivery
- Profit percentage (Correct answer)
Correct answer: Profit percentage
The Changes clause covers technical and delivery-related changes; profit percentage adjustments are part of equitable adjustment negotiations, not a direct change category.
Question 5: A contractor who believes the government has issued a constructive change should:
- Refuse to perform the additional work until a formal change order is issued
- Perform the work and submit a claim within the applicable statute of limitations (Correct answer)
- Accept the additional work as part of the original scope at no additional cost
- Immediately terminate the contract
Correct answer: Perform the work and submit a claim within the applicable statute of limitations
The contractor should perform the work to avoid default and then submit a claim for equitable adjustment, as refusing to work could be considered a breach.
Question 6: What distinguishes a 'change in scope' from a 'change within scope' in contract modification?
- A change in scope reduces the contract price; a change within scope increases it
- A change in scope alters what was bargained for in the original contract; a change within scope falls within what the parties anticipated (Correct answer)
- A change in scope requires congressional approval; a change within scope does not
- There is no legal distinction between the two terms
Correct answer: A change in scope alters what was bargained for in the original contract; a change within scope falls within what the parties anticipated
A change within scope is one the parties implicitly agreed the government could order; a change in scope exceeds those implied parameters and may constitute a cardinal change.
Question 7: Which document is typically used by a contractor to formally propose a change to contract specifications, drawings, or design?
- Request for Proposal (RFP)
- Engineering Change Proposal (ECP) (Correct answer)
- Contract Data Requirements List (CDRL)
- Statement of Objectives (SOO)
Correct answer: Engineering Change Proposal (ECP)
An Engineering Change Proposal (ECP) is the formal document a contractor submits to propose changes to technical specifications, drawings, or design requirements.
CPCM Certified Professional Contract Manager: Contract Modifications and Change Management 2
Under the Changes clause, a contractor must submit a proposal for an equitable adjustment within how many days of receiving a change order, unless the contracting officer specifies otherwise?