GSA Specialist Contract Management 3 — Questions and Answers
Question 1: A GSA contract includes a liquidated damages clause. What is the primary legal purpose of liquidated damages in federal contracting?
- To penalize a contractor for poor quality work
- To provide a pre-agreed measure of damages when actual harm is difficult to calculate (Correct answer)
- To compensate the government for overhead costs caused by delays
- To allow the government to recover lost profits on future contracts
Correct answer: To provide a pre-agreed measure of damages when actual harm is difficult to calculate
Liquidated damages represent a reasonable pre-estimate of harm when actual damages from delay or non-performance would be difficult to ascertain.
Question 2: Under the Truth in Negotiations Act (TINA), a contractor must submit certified cost or pricing data for negotiated contracts exceeding:
- $500,000
- $750,000
- $2 million (Correct answer)
- $5 million
Correct answer: $2 million
TINA (10 U.S.C. § 2306a) requires certified cost or pricing data for negotiated contracts exceeding $2 million, unless an exception applies.
Question 3: A contractor submits a Request for Equitable Adjustment (REA) claiming the government's inspection regime exceeded the contract's requirements. This type of claim is BEST classified as:
- A cardinal change claim
- A constructive acceleration claim
- A government over-inspection claim (Correct answer)
- A differing site conditions claim
Correct answer: A government over-inspection claim
When the government imposes inspection requirements beyond the contract's scope, contractors may pursue a government over-inspection claim for additional costs.
Question 4: GSA's Federal Acquisition Service (FAS) uses Multiple Award Schedule (MAS) contracts primarily to:
- Sole-source large IT procurements to preferred vendors
- Provide a streamlined ordering mechanism giving agencies access to pre-vetted commercial suppliers (Correct answer)
- Eliminate competition requirements for orders under $10,000
- Manage real property leases for federal agencies
Correct answer: Provide a streamlined ordering mechanism giving agencies access to pre-vetted commercial suppliers
MAS contracts provide federal agencies with a streamlined, pre-competed ordering vehicle to acquire commercial products and services efficiently.
Question 5: When a contractor fails to deliver supplies by the contract delivery date, the contracting officer must first issue which document before terminating for default?
- A show cause notice
- A cure notice (Correct answer)
- A stop-work order
- A past performance evaluation
Correct answer: A cure notice
For failure to deliver on time, the CO issues a cure notice (FAR 49.607) giving the contractor 10 days to cure the failure before default termination.
Question 6: Under FAR 15.404-1, the primary purpose of price analysis is to:
- Review the contractor's internal cost accounting system
- Determine whether the proposed price is fair and reasonable without evaluating cost elements (Correct answer)
- Audit the contractor's labor rates against union agreements
- Validate the contractor's forward pricing rate agreements
Correct answer: Determine whether the proposed price is fair and reasonable without evaluating cost elements
Price analysis evaluates the reasonableness of a proposed price by comparing it to market data, prior prices, or competitive offers without examining underlying cost elements.
Question 7: Which FAR clause authorizes the government to order changes within the general scope of a fixed-price supply contract?
- FAR 52.243-1 Changes — Fixed Price (Correct answer)
- FAR 52.249-2 Termination for Convenience
- FAR 52.233-1 Disputes
- FAR 52.246-2 Inspection of Supplies
Correct answer: FAR 52.243-1 Changes — Fixed Price
FAR 52.243-1 (Changes — Fixed Price) grants the contracting officer authority to order changes within the contract's general scope.
GSA Specialist Contract Management 3
A GSA contract includes a liquidated damages clause.
What is the primary legal purpose of liquidated damages in federal contracting?