4. NCMA (FAR 13,14,16,17)

Question 1

What type of contract places the maximum risk on the contractor?

Answer 1

Firm Fixed Price
(FAR 16.202-1)

Question 2

What is not included in an Interagency Acquisition?

Answer 2

Small business subcontracting plan.
(FAR 17.503)

Question 3

The use of cost-reimbursement contracts is prohibited for the acquisition of

Answer 3

Commercial Items
(FAR 16.301-3)

Question 4

When does a quotation become a contract?

Answer 4

When the government issues an order in response to a supplier’s quotation, and the supplier accepts by furnishing these supplies or services.
(FAR 13.004(b)

Question 5

Public Law _____________ authorizes extraordinary contractual actions to facilitate the national defense.

Answer 5

Public Law 85-804
(FAR 18.127)

Question 6

An acquisition of supplies or services that has an anticipated dollar value exceeding the micro-purchase threshold and not exceeding the simplified acquisition threshold:

Answer 6

Is reserved exclusively for small business concerns and shall be set aside.
(FAR 13.003)

Question 7

____________ are written instruments of understanding that contain terms and conditions that apply to future orders, a description of supplies and services to be provided, and methods for pricing, issuing, and delivering future orders.

Answer 7

Basic Ordering Agreements
(FAR 16.703)

Question 8

What type of contract is a written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing supplies or performing service?

Answer 8

Letter Contract
(FAR 16.603)

Question 9

_______________ Contracts place maximum risk and full responsibility for all costs and resulting profit and loss upon the Contractor.

Answer 9

Firm Fixed Price
(FAR 16.202)

Question 10

A letter contract may be used when the schedule will provide definitization of a contract no greater than _____ days after the date of the letter contract.

Answer 10

180.
(FAR 16.603)

Question 11

What occurs when the final cost exceeds the price ceiling in a fixed-price incentive fee type contract?

Answer 11

Contractor absorbs the difference as a loss.
(FAR 16.403)

Question 12

The objective when negotiating contract type and price is to negotiate one that will result in:

Answer 12

Reasonable contractor risk and greatest incentive for efficient and economical performance.
(FAR 16.103)

Question 13

Which of the following contract types is prohibited by the FAR?

Answer 13

Cost Plus Percentage of Cost
(FAR 16.102)

Question 14

Which of the following contract types puts the most risk on the buyer?

Answer 14

Cost Plus Fixed Fee
(FAR 16.101)

Question 15

The Government prefers to issue multiple awards for which of the following?

Answer 15

Indefinite Delivery Indefinite Quantity Contracts.
(FAR 16.5)

Question 16

Two-Step bidding can use which of the following types of contracts?

Answer 16

Firm-Fixed-Price
(FAR 14.502)

Question 17

Imprest Funds are used for cash purchases below what level?

Answer 17

$500
(FAR 13.305-3(a))

Question 18

Which of the following is the Government’s preferred method to purchase and pay for micro purchases?

Answer 18

Government-wide commercial purchase card.
(FAR 13.201)

Question 19

What method of special contracting is used to acquire known requirements in quantities and total cost not over planned requirements for up to five years unless otherwise authorized by statute, even though the total funds ultimately to be obligated may not be available at the time of contract award?

Answer 19

Multi-Year Contracting.
(FAR 17.104)

Question 20

________________ provides for upward or downward revision of the state contract price upon occurrence of specified contingencies

Answer 20

Fixed-Price with economic price adjustment.
(FAR 16.203)

Question 21

Which of the following is an order for supplies or services for which the price is not established at the time of issuance of the order?

Answer 21

Unpriced Purchase Order.
(FAR 13.302-2(a))

Question 22

A pre-bid conference may be used for the following purposes except?

Answer 22

as a substitute for amending a defective or ambiguous invitation.
(FAR 14.207)