Contract Administration Flashcards
7 cards from real Government Procurement Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Administration flashcards as text
Under FAR 32.9, what is an 'Assignment of Claims' and when is it relevant in contract administration?
Answer: A contractor's assignment of the right to receive contract payments to a financial institution as collateral for financing
Under the Assignment of Claims Act, a contractor may assign future contract payments to a bank or financial institution to secure financing, with proper notice to the government.
What distinguishes a 'Novation Agreement' from a simple contract modification?
Answer: A novation transfers all rights and obligations to a successor contractor recognized by the government; a modification changes existing contract terms
A novation agreement is a three-party arrangement where the government recognizes a successor entity as the new contractor, transferring all contract rights and obligations upon a corporate transaction.
Which FAR clause permits the government to withhold final payment pending resolution of potential contractor liability, such as unsettled subcontractor claims?
Answer: Retainage or withholding provisions under FAR 52.232-5
FAR 52.232-5 and similar clauses allow the government to retain a percentage of progress payments or withhold final payment until all obligations (including subcontractor issues) are resolved.
What is the role of the Defense Contract Audit Agency (DCAA) in contract administration?
Answer: Performing independent audits of contractor cost representations and accounting systems on behalf of DoD
DCAA provides independent audit services to DoD and other federal agencies, examining contractor incurred costs, billing systems, and accounting practices to protect government interests.
An Earned Value Management System (EVMS) is most commonly required on which type of contract?
Answer: Major development and production contracts exceeding the EVMS threshold (typically $20M+)
EVMS requirements under OMB Circular A-11 and ANSI/EIA-748 are typically triggered on significant development contracts above established dollar thresholds to enable integrated cost/schedule performance measurement.
What is the purpose of a 'Show-Cause Notice' in contract administration?
Answer: To demand the contractor explain why the contract should not be terminated for default due to failure to deliver
A Show-Cause Notice demands the contractor show cause why the contract should not be terminated for default, giving the contractor an opportunity to present excusable reasons for the failure.
Under FAR Part 46, what is the difference between acceptance and inspection?
Answer: Inspection is the examination of supplies/services for conformance; acceptance is the formal act acknowledging the government takes title and responsibility
Inspection examines whether items conform to contract requirements, while acceptance is the formal government act acknowledging conformance and transferring title and risk to the government.