NCMA - National Contract Management Association Post-Award Contract Administration Questions and Answers — Questions and Answers
Question 1: A government contracting officer issues a written notice to a contractor specifying a failure to make progress that endangers contract performance. The notice provides the contractor with 10 days to correct the issue. This type of notice is best described as a:
- Show Cause Notice
- Cure Notice (Correct answer)
- Letter of Concern
- Stop-Work Order
Correct answer: Cure Notice
A Cure Notice is a written notification from the contracting officer to the contractor detailing a specific failure in performance (other than late delivery) and providing a set period, typically 10 days, to 'cure' the failure. A Show Cause Notice is generally used when the time for delivery has passed or when a cure is not considered feasible, asking the contractor to show why the contract shouldn't be terminated for default.
Question 2: A contract requires the delivery of a custom software module. During performance, the government's technical representative provides verbal direction to the contractor to add a significant new feature not described in the original statement of work. The contractor performs the extra work. This scenario is an example of:
- A cardinal change
- A bilateral modification
- A constructive change (Correct answer)
- An administrative change
Correct answer: A constructive change
A constructive change occurs when a contractor performs work beyond the contract requirements due to government conduct, but without a formal, written change order. The informal direction from the government representative that leads to extra work creates a situation that is 'construed' as having the effect of a change order.
Question 3: Which of the following is a primary objective of post-award contract monitoring?
- Developing the initial solicitation documents.
- Evaluating bids and proposals from potential vendors.
- Negotiating the final terms and conditions of the contract.
- Ensuring all parties adhere to the agreed-upon terms and obligations. (Correct answer)
Correct answer: Ensuring all parties adhere to the agreed-upon terms and obligations.
Post-award contract monitoring is focused on the activities that occur after the contract is signed. Its main purpose is to ensure that both the contractor and the buyer are fulfilling their contractual obligations, tracking performance, managing risk, and ensuring the intended outcomes of the contract are achieved.
Question 4: A contract administrator is preparing to close out a physically completed firm-fixed-price contract. Which of the following is a critical step in the contract closeout process?
- Issuing a new solicitation for similar services.
- Conducting market research for the next procurement.
- Verifying receipt of the contractor's final invoice and release of claims. (Correct answer)
- Establishing the pre-negotiation objectives for a follow-on contract.
Correct answer: Verifying receipt of the contractor's final invoice and release of claims.
Contract closeout procedures, as outlined in FAR 4.804, require several administrative actions to be completed. A key step is ensuring that all deliverables have been accepted, all financial matters are settled, and the government has received necessary documentation, which includes the contractor's final invoice and a statement releasing the government from any further claims.
Question 5: During a performance review meeting for a service contract, the contract administrator should primarily focus on:
- The contractor's marketing and business development plans.
- The personal qualifications of the contractor's executive leadership.
- The contractor's performance against the contract's key performance indicators (KPIs) and service level agreements (SLAs). (Correct answer)
- The possibility of the contractor merging with another company.
Correct answer: The contractor's performance against the contract's key performance indicators (KPIs) and service level agreements (SLAs).
Effective post-award administration involves actively monitoring and evaluating contractor performance. This is best accomplished by measuring performance against the objective metrics established in the contract, such as Key Performance Indicators (KPIs) and Service Level Agreements (SLAs), to ensure the expected value and quality are being delivered.
Question 6: A contractor falls behind schedule on a government construction project. The contracting officer determines that the time remaining is insufficient to permit a realistic 10-day cure period. The most appropriate action for the contracting officer to take next is to issue a:
- Request for Equitable Adjustment
- Show Cause Notice (Correct answer)
- Cure Notice
- Change Order
Correct answer: Show Cause Notice
According to FAR 49.607, if the time remaining in the contract delivery schedule is not sufficient to permit a realistic cure period of 10 days or more, a Show Cause Notice should be used instead of a Cure Notice. This notice asks the contractor to 'show cause' why the contract should not be terminated for default.
NCMA - National Contract Management Association Post-Award Contract Administration Questions and Answers
A government contracting officer issues a written notice to a contractor specifying a failure to make progress that endangers contract performance.
The notice provides the contractor with 10 days to correct the issue.
This type of notice is best described as a: