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

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.

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

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

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

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.

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

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

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

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

CPCM Exam Practice Test

CPCM Exam Practice Test

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