Chapter 19

Question 1

Bidder conferences are used to:
Answer questions about the project prior to submittal of proposals
Answer questions about the project after contract award
Debrief the bidder on their performance after completion of the contract
Solicit pricing information from the bidders on proposed scope changes

Answer 1

Answer questions about the project prior to submittal of proposals

Question 2

During contract negotiations, the goal of the buyer is to:
Get the seller to accept the greatest risk
Get the highest quality result for the lowest price
Get the seller to agree to scope changes at no cost to the buyer
Try to get the least amount of work done at the lowest price

Answer 2

Get the highest quality result for the lowest price

Question 3

During contract negotiations, the goal of the seller is to:
Get the buyer to accept the greatest amount of risk
Get the largest possible profit margin regardless of the risk
Get the largest possible price for the contract
Negotiate a contract where the profit margin is commensurate with the risk the contractor is expected to incur

Answer 3

Negotiate a contract where the profit margin is commensurate with the risk the contractor is expected to incur

Question 4

Which of the following contract types has the greatest risk with the buyer?
Cost sharing
Cost-Plus-Incentive-Fee
Firm-Fixed-Price
Fixed-Price-Incentive-Fee

Answer 4

Cost-Plus-Incentive-Fee

Question 5

Which of the following contract types has the greatest risk with the seller?
Cost sharing
Cost-Plus-Incentive-Fee
Firm-Fixed-Price
Fixed-Price-Incentive-Fee

Answer 5

Firm-Fixed-Price

Question 6

\_\_\_\_\_ source contracting is when multiple suppliers exist but only one is selected to receive the contract
Preferred
Sole
Single
Surety

Answer 6

Single

Question 7

\_\_\_\_\_ source contracting is when there exists only one supplier in the market-place to satisfy the requirements of the contract.
Preferred
Sole
Single
Surety

Answer 7

Sole

Question 8

Companies that give part of a procurement contract to multiple suppliers do so to:
Promote and maintain competition
Reduce reliance on just one supplier
Minimize procurement risks
All of the above

Answer 8

All of the above

Question 9

Which of the following is not one of the three types of specifications discussed in the text?
Design specifications
Material specifications
Performance specifications
Functional specifications

Answer 9

Material specifications

Question 10

For long-term projects, such as weapon systems projects, contracted for by the Department of Defense, the type of contract can change from life cycle phase to life cycle phase.
True
False

Answer 10

True

Question 11

Which of the following is generally not part of “Conducting the Procurements”?
Perform a make-or-buy analysis
Confirm qualified sources
Review past performance of sources
Produce a solicitation package

Answer 11

Perform a make-or-buy analysis

Question 12

The cost of renting a piece of equipment is $200 per day and the leasing cost is $5000 plus $100 per day. The breakeven cost between renting and leasing occurs at \_\_\_\_\_ days.
30
50
100
200

Answer 12

50

Question 13

Which of the following is generally not included in a solicitation package?
Listing of qualified vendors
Past bidding history of qualified vendors
How changes will be managed
Supplier payment plan

Answer 13

Past bidding history of qualified vendors

Question 14

Which of the following would be included in a scoring model for evaluating bidders?
Overall bid price
Financial strength (ability to stay in business)
Intellectual property rights
All of the above

Answer 14

All of the above

Question 15

In which of the following would the price of a possible contract not be included?
Request for information (RFI)
Request for quotation (RFQ)
Request for proposal (RFP)
Invitation for bids (IFB)

Answer 15

Request for information (RFI)

Question 16

“Hygiene Factors” refers to:
How a contractor should respond to an RFP
The type of proposal expected by the seller
How and where contract negotiations will take place
How many bidder conferences will be held

Answer 16

How and where contract negotiations will take place

Question 17

A covenant providing restrictions on certain proprietary knowledge is called a:
Non compete clause
Non disclosure clause
Non conformance clause
Penalty clause

Answer 17

Non disclosure clause

Question 18

Failure to exercise one’s activity in such a manner that a reasonable person would do in a similar situation is:
Negligence
Liquidated damages
Breach of contract
Privity of contract

Answer 18

Negligence

Question 19

An intentional relinquishment of a legal right is a (n):
Infringement
Breach of contract
Waiver
Termination liability

Answer 19

Waiver

Question 20

The type of contract where all of the seller’s costs are reimbursed and the seller will also receive a percentage of the profit pool based upon how well the buyer likes the end result is a \_\_\_\_\_ contract.
Cost-sharing
Cost-plus-award-fee
Cost-plus-fixed-fee
Cost-plus-incentive-fee

Answer 20

Cost-plus-award-fee

Question 21

Which type of cost-plus contract provides the seller with a guaranteed dollar-value profit rather than as a percentage?
Cost-sharing
Cost-plus-award-fee
Cost-plus-fixed-fee
Cost-plus-incentive-fee

Answer 21

Cost-plus-fixed-fee

Question 22

Which type of contract has a sharing ratio and a ceiling on the profit?
Fixed price
Cost-plus-incentive-fee
Cost-plus-fixed-fee
Cost-sharing

Answer 22

Cost-plus-incentive-fee

Question 23

Which type of contract has a point of total assumption?
Cost-plus-incentive-fee
Fixed-price-incentive-fee
Firm-fixed-price
Cost-plus-award-fee

Answer 23

Fixed-price-incentive-fee

Question 24

Which of the following is part of the responsibility of a contract administrator?
Inspections and audits
Performance reporting (Documenting seller’s performance)
Approval of waivers
All of the above

Answer 24

All of the above

Question 25

Billing the cost of repairs against a financially closed out project is called \_\_\_\_\_.
Back charging
Refinancing
Order of precedence
Arbitration

Answer 25

Back charging