Manage Subcontracts and Closeout Contracts

Question 1

It is the Government’s policy to award all opportunities in its acquisitions to SB, VOSB, SDVOSB, HUBZone small business, SDB, and WOSB concerns.

True

False

Answer 1

True

Question 2

The SBA is authorized to-

(select all that apply)

a. Review (within 5 working days) any solicitation that meets the subcontracting plan threshold before the solicitation is issued.

b. Review (within 5 working days) before execution any negotiated contractual document requiring a subcontracting plan and submit recommendations to the contracting officer.

c. Evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or, in the case of contractors having multiple contracts, on an aggregate basis.

d. Prescribe the extent to which any contractor or subcontractor shall subcontract.

Answer 2

a. Review (within 5 working days) any solicitation that meets the subcontracting plan threshold before the solicitation is issued.

b. Review (within 5 working days) before execution any negotiated contractual document requiring a subcontracting plan and submit recommendations to the contracting officer.

c. Evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or, in the case of contractors having multiple contracts, on an aggregate basis.

Question 3

Each solicitation of offers (RFP) or invitation for bids (IFB) shall require the apparently successful offeror or the bidder selected for award to submit an acceptable subcontracting plan if…

(select the two correct answers)

a. Contract is expected to exceed $750,000

b. The awardee is a small business

c. The potential contract has subcontracting possibilities

Answer 3

a. Contract is expected to exceed $750,000
c. The potential contract has subcontracting possibilities

Question 4

Bundling is a subset of consolidation.

True

False

Answer 4

Bundling is a subset of consolidation.

True

False

Question 5

Government representatives must recognize the lack of privity of contract between the Government and subcontractors.

True

False

Answer 5

True

Question 6

If the contractor does not have an approved purchasing system, consent to subcontract is required for…

(Select all that apply)

a. Cost-reimbursement contracts

b. Time-and-materials contracts

c. Letter contracts

d. Firm-fixed-price contracts

Answer 6

a. Cost-reimbursement contracts

b. Time-and-materials contracts

c. Letter contracts

Question 7

In what length of time should a contract utilizing simplified acquisition procedures be closed following physical completion and payment?
a. 3 years
b. 6 months
c. 24 months
d. Immediately

Answer 7

d. Immediately

Question 8

For how long must contractors retain contract files?
a. 3 years
b. 6 months
c. 24 months
d. Immediately

Answer 8

a. 3 years

Question 9

In what length of time should a firm-fixed-price contract be closed following physical completion?
a. 3 years
b. 6 months
c. 36 months
d. Immediately

Answer 9

b. 6 months

Question 10

In what length of time should contracts requiring settlement of rates be closed?
a. 2 years
b. 6 months
c. 36 months
d. Immediately

Answer 10

c. 36 months

Question 11

Contracting Officers must complete a DD Form 1597 for contracts

a. Below the simplified acquisition threshold

b. That are subject to automated closeout procedures

c. To ensure all required contract actions have been satisfactorily accomplished

Answer 11

c. To ensure all required contract actions have been satisfactorily accomplished

Question 12

After administrative closeout actions have been verified, the contracting officer administering the contract must ensure that a DD Form 1594, Contract Completion Statement is prepared.

True

False

Answer 12

True

Question 13

Agencies are required to hold contract files in the office responsible for maintaining them for a period of

a. 6 months

b. 12 months

c. 6 years

d. Until their destruction

Answer 13

b. 12 months

Question 14

The ____ _____ _____ is responsible for initiating administrative closeout of the contract after receiving evidence of its physical completion.

Answer 14

Contract Administration Office

Question 15

A(n) _________________ allows a system to initiate and execute the closeout action.

a. Quick closeout

b. Automated closeout

c. Qualified closeout

d. Cost closeout

Answer 15

b. Automated closeout

Question 16

A(n) _________________ is when the CO/KO responsible for contract closeout negotiates the closeout settlement.

a. Quick closeout

b. Automated closeout

c. Qualified closeout

d. Cost closeout

Answer 16

a. Quick closeout

Question 17

When the total contract value does not exceed $500,000, this ____________________________________ .

a. Qualifies for quick closeout

b. Does not qualify for closeout

c. Qualifies for automated closeout

d. Qualifies as relatively insignificant costs

Answer 17

c. Qualifies for automated closeout

Question 18

When the total unsettled direct & indirect costs to be allocated to a contract is < $2M, this ____________________________________ .

a. Qualifies for quick closeout

b. Does not qualify for closeout

c. Qualifies for automated closeout

d. Qualifies as relatively insignificant costs

Answer 18

a. Qualifies for quick closeout

Question 19

Failure to provide timely disposition instructions may entitle the contractor to …

Answer 19

An equitable adjustment

Question 20

A Plant Clearance Officer should provide the contractor disposition instructions for property identified on an acceptable inventory disposal schedule within…

Answer 20

120 days

Question 21

Plant clearance officers should review and accept, or return for correction, inventory disposal schedules within…

Answer 21

10 days following receipt from a contractor

Question 22

Payment requests and receiving reports are required to be submitted in electronic form, except for: (select all that apply)

a. Classified contracts

b. Electronic payment not feasible

c. Governmentwide commercial purchase card is used as the method of payment

d. Contractor’s staff is not trained to use WAWF

e. Contractor has requested permission in writing and the contracting officer has provided instructions for a temporary alternative method of submission

Answer 22

a. Classified contracts

b. Electronic payment not feasible

c. Governmentwide commercial purchase card is used as the method of payment

e. Contractor has requested permission in writing and the contracting officer has provided instructions for a temporary alternative method of submission

Question 23

Which of the following information should the contractor provide with the notification and supporting data required when requesting consent to subcontract?

a. A description of the supplies or services to be subcontracted
b. The proposed subcontract price
c. The type of subcontract to be used
d. All of the above

Answer 23

d. All of the above

Question 24

What must the contracting officer do when the contractor fails to make a good faith effort to comply with the small business subcontracting plan?

a. Assess liquidated damages
b. Report the contractor to the inspector general for potential fraud
c. Terminate all subcontracts not complying with the subcontracting plan
d. Terminate the contract for the convenience of the government

Answer 24

a. Assess liquidated damages

Question 25

Which of the following negotiated contracts requires a subcontracting plan? a. Contracts with a small business exceeding $750,000 b. Personal services contracts exceeding $750,000 c. Contracts with large businesses exceeding $750,000 d. All of the above

Answer 25

c. Contracts with large businesses exceeding $750,000

Question 26

In which of the following situations is consent to subcontracting required? a. The contractor has an approved purchasing system and no specific subcontractors have been identified by the contracting officer b. The contractor does not have an approved purchasing system and the contract is a priced cost-reimbursement contract c. The contractor does not have an approved purchasing system and an unpriced contract has $150,000 in time-and- materials subcontracts d. All of the above

Answer 26

b. The contractor does not have an approved purchasing system and the contract is a priced cost-reimbursement contract

Question 27

When contract performance is complete, what must the administrative contract closeout procedures ensure? a. Contract audit is completed b. Contractor’s closing statement is completed c. Disposition of classified material is completed d. All of the above

Answer 27

d. All of the above

Question 28

Your contractor will not complete and submit a release of claims to the government. The contract is a construction contract. What can the government do? a. Hold the final payment b. Nothing; the payment must be made c. Inform the Office of the Inspector General (OIG) d. Deobligate the funds and close the contract

Answer 28

a. Hold the final payment

Question 29

Closeout procedures for completed contracts must ensure all of the following except: a. Contract audit is completed b. Contractor’s closing statement is completed c. Disposition of classified material is completed d. Suspend all interim or disallowed costs

Answer 29

d. Suspend all interim or disallowed costs

Question 30

What is a step in conducting a funds status review? a. Submit final invoice/final voucher b. Settle and closeout subcontracts c. Issue a contractor’s closing statement or release of claims d. Issue a contract modification to deobligate excess funds

Answer 30

d. Issue a contract modification to deobligate excess funds

Question 31

Contract closeout can be delayed for what reason? a. The contractor has not delivered everything the contract required (material, services, data, etc.) and the government has not paid the contractor in full b. A contract completion statement has been generated c. Physical and intellectual property rights were previously settled to satisfaction of the parties d. None of the above

Answer 31

a. The contractor has not delivered everything the contract required (material, services, data, etc.) and the government has not paid the contractor in full

Question 32

What statement is accurate regarding manual contract closeout? a. A contract closeout checklist is not required b. The contract will be always be closed in 60 days c. Closeout can be initiated and executed without requiring action on the part of the contracting officer administering the contract d. Upon receiving notice of physical completion of the contract, a review begins of the contract requirements and funds status

Answer 32

d. Upon receiving notice of physical completion of the contract, a review begins of the contract requirements and funds status

Question 33

What is required to closeout a firm-fixed-price contract? a. Final voucher is pending approval b. Ensure the prime has closed all subcontracts c. Verify that subcontracts will be closed d. Verify that all interim or disallowed costs will be settled

Answer 33

b. Ensure the prime has closed all subcontracts

Question 34

A signed copy of what form can be used to document status on the disposition of a classified contract? a. DD Form 1597 b. DD Form 1593 c. DD Form 1594 d. DD Form 254

Answer 34

b. DD Form 1593

Question 35

What is the DCMA’s role during contract closeout? a. Ensure disposition of classified materials and the final patent report is cleared b. Complete contract funds review and de-obligate any excess funds c. Making final indirect cost rate determinations and generate property clearance d. Audit annual indirect cost rates

Answer 35

c. Making final indirect cost rate determinations and generate property clearance

Question 36

What governs government property disposal policies? a. DoD Instruction (DoDI) 4161.02 b. DD Form 1593 c. DD Form 1594 d. A contract completion checklist

Answer 36

a. DoD Instruction (DoDI) 4161.02

Question 37

What is implemented and sent to EDI to report contract closeout in FPDS-NG? a. DD Form 1597, “Contract Closeout Checklist” b. A contract completion statement c. EDI 567C or a contract modification marked “Closeout” d. All documentation included in the file

Answer 37

c. EDI 567C or a contract modification marked “Closeout”