GCP GCP Contract Administration & Procurement 2 — Questions and Answers
Question 1: What is the Simplified Acquisition Threshold (SAT) as established under the FAR?
- $10,000
- $25,000
- $250,000 (Correct answer)
- $500,000
Correct answer: $250,000
The Simplified Acquisition Threshold is $250,000, below which agencies may use simplified acquisition procedures.
Question 2: In contract administration, what is a Cure Notice used for?
- To officially close out a completed contract
- To notify a contractor of a deficiency and provide time to correct it before termination (Correct answer)
- To approve a contract extension
- To document contractor past performance
Correct answer: To notify a contractor of a deficiency and provide time to correct it before termination
A Cure Notice gives the contractor a specified period (usually 10 days) to cure a contract deficiency before the government may terminate for default.
Question 3: Which of the following best describes 'privity of contract'?
- Confidentiality requirements on contract data
- The direct legal relationship between the government and the prime contractor only (Correct answer)
- Subcontractor rights under a prime contract
- The classification level of contract documents
Correct answer: The direct legal relationship between the government and the prime contractor only
Privity of contract means the legal relationship exists only between the two contracting parties — the government has no direct legal relationship with subcontractors.
Question 4: What is the purpose of a Past Performance Information Retrieval System (PPIRS) or its successor CPARS?
- Tracking contractor invoice submissions
- Recording and retrieving contractor performance evaluations for use in source selection (Correct answer)
- Managing government property assigned to contractors
- Documenting contractor labor categories
Correct answer: Recording and retrieving contractor performance evaluations for use in source selection
CPARS (Contractor Performance Assessment Reporting System) records past performance evaluations that are used to assess contractors in future source selections.
Question 5: An Indefinite Delivery Indefinite Quantity (IDIQ) contract requires the government to order at least:
- The maximum quantity stated in the contract
- No minimum — all orders are optional
- The guaranteed minimum quantity stated in the contract (Correct answer)
- 50% of the contract ceiling value
Correct answer: The guaranteed minimum quantity stated in the contract
IDIQ contracts require the government to order at least the guaranteed minimum quantity, which gives the contractor certainty of some business.
Question 6: Which of the following is a key responsibility of a Contracting Officer's Representative (COR)?
- Signing contract modifications
- Obligating government funds
- Monitoring contractor technical performance and reporting to the contracting officer (Correct answer)
- Approving contractor invoices without CO review
Correct answer: Monitoring contractor technical performance and reporting to the contracting officer
CORs monitor contractor technical performance and provide technical advice to the contracting officer, but they cannot sign modifications or obligate funds.
GCP GCP Contract Administration & Procurement 2
What is the Simplified Acquisition Threshold (SAT) as established under the FAR?