Government Procurement Certification Government Procurement Contract Management & Negotiation 3

Question 1

Under FAR 15.406-3, what must a Price Negotiation Memorandum (PNM) document?

Accepted Answer

The principal elements of the negotiated agreement, including price, technical, and business judgments made

Answer

FAR 15.406-3 requires the PNM to document the principal elements of the negotiated agreement, including the judgments made in reaching the agreed price.

Question 2

A contractor requests an equitable adjustment after the government issues a constructive change. What constitutes a 'constructive change'?

Accepted Answer

Government action or inaction that effectively changes contract requirements without a formal modification

Answer

A constructive change occurs when government conduct—such as defective specifications or government-caused delays—effectively alters contract requirements without a formal change order.

Question 3

Which termination type allows the government to end a contract when the contractor fails to perform?

Accepted Answer

Termination for Default (T4D)

Answer

Termination for Default (FAR Part 49) allows the government to terminate when a contractor fails to deliver on time, fails to make progress, or fails to perform contract terms.

Question 4

When negotiating a sole-source contract, the contracting officer's price objective must be based on:

Accepted Answer

A fair and reasonable price supported by price or cost analysis

Answer

FAR 15.405 requires the contracting officer to establish a price objective that is fair and reasonable, supported by thorough price or cost analysis techniques.

Question 5

What is the primary distinction between 'price analysis' and 'cost analysis' in source selection?

Accepted Answer

Price analysis evaluates the offered price without examining underlying costs; cost analysis examines individual cost elements

Answer

Price analysis (FAR 15.404-1(b)) evaluates the reasonableness of the proposed price without examining cost elements, while cost analysis (FAR 15.404-1(c)) evaluates individual cost components.

Government Procurement Certification Practice Test

Government Procurement Certification Practice Test

Government Procurement Certification Government Procurement Contract Management & Negotiation 3