1511-Contract Types Part 16

Question 1

What are the factors in Selecting Contract type?

Answer 1

Price Competition
Price Analysis 
Cost Analysis 
Type and complexity of the requirement 
Urgency
Period of performance 
Contractor’s technical capability and financial responsibility

Question 2

What is a firm fixed price contract?

Answer 2

Provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract

Question 3

When do we use Cost Reimbursement Contracts?

Answer 3

Suitable for use only when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed price contract

Question 4

What are Time and Materials Contracts?

Answer 4

Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and
Actual cost for materials

Question 5

When are Time and Materials Contracts used?

Answer 5

Only used when it is not possible, at the time of award, to accurately estimate the extent or duration of the work or to anticipate future costs with a degree of confidence

Question 6

What is needed to award a time-and-materials contract?

Answer 6

Determination & Finding (D&F)