NCMA - National Contract Management Association Contract Negotiation and Award Questions and Answers

Question 1

During a competitive negotiation for a federal government contract, after establishing the competitive range, the contracting officer must conduct discussions with which of the following?

Accepted Answer

All offerors within the competitive range.

Answer

According to the Federal Acquisition Regulation (FAR) Part 15, once the competitive range is established, the contracting officer must hold discussions with all offerors who are selected for the competitive range. Discussions are tailored to each offeror's proposal and are intended to maximize the government's ability to obtain the best value.

Question 2

A contract specialist is helping to determine the most appropriate source selection process for a well-defined requirement where the risk of unsuccessful performance is minimal and price is the dominant factor. Which source selection process is most suitable?

Accepted Answer

Lowest Price Technically Acceptable (LPTA)

Answer

The Lowest Price Technically Acceptable (LPTA) source selection process is most appropriate when the requirements are well-defined, the risk is low, and the government expects to get the best value by selecting the technically acceptable proposal with the lowest evaluated price.

Question 3

In a contract negotiation, a party's Best Alternative to a Negotiated Agreement (BATNA) is best described as:

Accepted Answer

The course of action a party will take if the current negotiation fails.

Answer

The BATNA is the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached. Understanding your BATNA is a critical element of preparation, as it provides a baseline against which to evaluate any proposed agreement.

Question 4

A contractor and a government agency are negotiating the terms of a contract. The agency's negotiator repeatedly focuses on their organizational constraints and budget limitations, while the contractor's negotiator focuses on their need to cover costs and make a reasonable profit. This is an example of negotiating based on:

Accepted Answer

Interests

Answer

This scenario illustrates negotiating based on interests rather than fixed positions. Interests are the underlying needs, desires, and concerns that motivate the parties. Focusing on interests allows for creative problem-solving to find a mutually acceptable solution, whereas focusing on positions (a stated demand) can lead to impasse.

Question 5

Which of the following contract types places the most cost risk on the contractor?

Accepted Answer

Firm-Fixed-Price (FFP)

Answer

A Firm-Fixed-Price (FFP) contract provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract. This contract type places maximum risk and full responsibility for all costs and resulting profit or loss upon the contractor.

NCMA - National Contract Management Association Certification Practice Test

NCMA - National Contract Management Association Certification Practice Test

NCMA - National Contract Management Association Contract Negotiation and Award Questions and Answers