CPCM Certified Professional Contract Manager: Contract Modifications and Change Management 3

Question 1

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

Accepted Answer

6 years from the date of the claim accrual

Answer

1 year from the date of the claim accrual

Answer

3 years from the date of the claim accrual

Answer

5 years from the date of the claim accrual

Question 2

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

Accepted Answer

Additional labor, overtime, and associated costs

Answer

Delay damages only

Answer

Loss of anticipated profits only

Answer

Liquidated damages reduction

Question 3

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

Accepted Answer

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

Answer

The government directs a unilateral change to specifications

Answer

Both parties agree to reduce the contract price

Answer

The contracting officer corrects an administrative error

Question 4

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

Accepted Answer

The government loses negotiating leverage once the contractor has incurred costs

Answer

The contractor may refuse to begin work

Answer

The change automatically becomes a cardinal change

Answer

The contract becomes void until definitization

Question 5

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

Accepted Answer

Interest on costs incurred prior to claim certification

Answer

Direct labor costs

Answer

Overhead and G&A

Answer

Profit on changed work

Question 6

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?

Accepted Answer

60 days

Answer

30 days

Answer

90 days

Answer

180 days

Question 7

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

Accepted Answer

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

Answer

Actual cost applies only to fixed-price contracts; estimated cost applies only to cost-type contracts

Answer

Actual cost requires board of contract appeals approval; estimated cost does not

Answer

There is no difference between the two methods