BMGT339 final exam

Final Examination BMGT 339

Introduction to Federal Contracting

Summer 2013 Exam-on-line class only

INSTRUCTIONS: There are four (4) sections to this examination. Follow the directions for each section. There is no extra credit for answering additional questions.

Section 1: True False Section. Answer all questions (3 points each for 60 points)

1. Under a FFP contract, a contractor is entitled to use the least expensive means of achieving contract performance provided the means selected are reasonable and achieve contract compliant performance.

2. Delays--such as negligence, miscalculation, poor workmanship, or bad luck--are considered excusable delays, and the contractor can expect to receive compensation for such delays.

3. Customer inspection may occur during manufacturing, before or after shipping, or during installation, or at any time the parties agree to it in the contract.

4. Inspection clauses are very heavily negotiated in the commercial world. The buyer's interest is to receive assurances; the seller's interest is to ensure that the process of the work is not interrupted and that the schedule can be maintained.

5. The Government may terminate for default if the contractor fails to deliver the supplies on time, to make progress so as to endanger performance of the contract, or to perform any of the other provisions of the contract.

6. The fixed price Changes Clause allows the contractor to suspend work while the contract amendment is being negotiated.

7. The Contracting Officer is the only person authorized to legally commit the USG to contract changes.

8. The contracting officer representative can commit government funds

9. Acceptance is important to the Contractor because, among other things, it usually starts the clock running for the warranty period.

10. Inspection rights for both government and commercial arenas may include the right to inspect a production facility, to sample a semi-finished or finished product, or to test the operational look and feel in order to confirm that the Contractor has been moving down the right path in completing the project.

11. A Contractor is not supposed to suffer as a result of a termination for convenience of the Government, nor is the Contractor expected to underwrite the Government’s decision to terminate.

12. In exchange for the privilege to terminate the contract, either for convenience or for default, the Government agrees to make the contractor whole, that is, to reimburse the contractor for all reasonable and allocable costs incurred in connection with the performance.

13. One of the Government's roles in a CPFF contract is to protect the contractor from the risk of incurring costs that may have been difficult to estimate at the time of the proposal.

14. The standard USG practice is to sign a contract and then negotiate the scope of work and the price with the contractor.

15. A buyer should explain in the solicitation documents in the most detailed way possible how discrepancies and mistakes will be handled during the procurement process.

16. An equitable adjustment always includes (a) an adjustment in schedule and (b) an adjustment in price.

17. Under the FAR, when a contract is modified to include a Change order, the subcontract is also automatically modified to ensure that the subcontractor is kept whole.

18. USG contracting assumes that the costs of inspections and tests are included in the contractor’s price.

19. Profit can be estimated at the start of a fixed price contract, but it can only be accurately stated once the contract is completed.

20. When companies operate in an environment where there is little competition, the product quality usually declines and the prices usually increase.

Section 2: Short Answer Essay Section (1-2 paragraphs). Answer any two (2) of the following questions for 5 points each (10 points total)

(Please note that there is no extra credit in this section, and only the first two (2) answers will be graded.)

21. Define Liquidated Damages.
22. Define Invitation-for-Bids.
23. Define the term Responsibility in the context of a prospective government contractor.

24. Define the term Responsiveness.

25. Discuss the concept of Excusable Delay.
26. Define and Discuss Negotiated Procurement.
27. Define and discuss the concept and characteristics associated with a Cost-Plus-Fixed-Fee contract.

Section 3: Complete the following charts (10 points)

Based on Guidance from the FAR found in this section (Hint: you can use the Matrix or look it up in the FAR)	What FAR part 52 clause should you insert in the contract? Some have multiple answers.
FAR 32.611
FAR 37.304
FAR 32.206
FAR 49.502
FAR 19.508 ( c )

The following clause is prescribed in what Part of the FAR	FAR Reference
FAR 52.247-17
FAR 52.215-13
FAR 52.227-20
FAR 52.203-2
FAR 52.216-2

Section 4: Long Answer Essay Section (3-4 paragraphs). Answer 2 of the following questions for 10 points each (20 points total)(Please note that there is no extra credit in this section, and only the first two (2) answers will be graded.)

28. With respect to the concept of Competitive Range, discuss the Responsiveness/ Responsibility Relationship.

29. Discuss the requirements for and difference between a Termination-for-Convenience and a Termination-for-Default.

30. Identify and define the three major types of Changes that can occur in a USG contract.

31. Explain why the USG is considered to be a good customer. If you disagree with this assessment, please explain.

32. Contrast the concepts of inspection and acceptance.

33. Describe some of the contractual issues that you would need address in forming a subcontract between a prime contractor and a subcontractor.

34. In awarding a contract or subcontract, explain why price may not be the most important element of your decision.

35. Why is it important to provide detailed instructions to bidders regarding how their proposals will be handled and evaluated in consideration for an award?