CHAPTER 19: CONTRACT MANAGEMENT
(Difficulty: E = easy, M = medium, H = hard)
(E) 1. Bidder conferences are used to:
D. Solicit pricing information from the bidders on proposed scope changes
(M) 2. During contract negotiations, the goal of the buyer is to:
D. Try to get the least amount of work done at the lowest price
(M) 3. During contract negotiations, the goal of the seller is to:
A. Get the buyer to accept the greatest amount of risk
(E) 4. Which of the following contract types has the greatest risk with the buyer?
D. Fixed-price-incentive-fee
(M) 5. Which of the following contract types has the greatest risk with the seller?
A. Cost sharing
(M) 6. _____ -source contracting is when multiple suppliers exist but only one is selected to
D. Surety
(M) 7. _____ source contracting is when there exists only one supplier in the marketplace to
satisfy the requirements of the contract.
D. Surety
(E) 8. Companies that give part of a procurement contract to multiple suppliers do so to:
A. Promote and maintain competition
(E) 9. Which of the following is not one of the three types of specifications discussed in the
text?
(M) 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.
(M) 11. Which of the following is generally not part of “Conducting the Procurements”?
D. Produce a solicitation package
(E) 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.
D. 200
(E) 13. Which of the following is generally not included in a solicitation package?
D. Supplier payment plan
(E) 14. Which of the following would be included in a scoring model for evaluating bidders?
A. Overall bid price
(M) 15. In which of the following would the price of a possible contract not be included?
D. Invitation for bids (IFB)
(M) 16. “Hygiene factors” refers to:
A. How a contractor should respond to an RFP
(H) 17. A covenant providing restrictions on certain proprietary knowledge is called a:
D. Penalty clause
(H) 18. Failure to exercise one’s activity in such a manner that a reasonable person would do
in a similar situation is:
D. Privity of contract
(H) 19. An intentional relinquishment of a legal right is a(n):
(H) 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.
A. Cost-sharing
(H) 21. Which type of cost-plus contract provides the seller with a guaranteed dollar-value
profit rather than as a percentage?
A. Cost-sharing
B. Cost-plus-award-fee
(H) 22. Which type of contract has a sharing ratio and a ceiling on the profit?
A. Fixed-price
(H) 23. Which type of contract has a point of total assumption?
D. Cost-plus-award-fee
(M) 24. Which of the following is part of the responsibility of a contract administrator?
A. Inspections and audits
(M) 25. Billing the cost of repairs against a financially closed out project is called _________.
D. Arbitration