Contracting_Test_3_Final Exam Questions With Verified Answers

Contracting_Test_3_Final Exam Questions With Verified Answers How many provisions and clauses are required in a commercial items contract? - answerThere are only two provisions and two clauses that are mandatory for commercial items. Why provide contract financing? - answer- High dollar production - Expedited performance - Broadening of the production base - Increased competition - Aid to small businesses - Fosters liberal lending by private lending institutions • Meets contractors need/minimizes Govt risk What is the least preferred method of contract financing? - answerAdvance payment is the least preferred and cannot exceed 15%. What are two types of price index numbers? - answerSimple index numbers calculate price changes for a single item over time. Aggregate index numbers calculate price changes for a group of related items over time. What is price reasonableness? - answerThe price a prudent buyer would be willing to pay given market conditions and other factors. It is the KO's responsibility to make a decision. What is unilateral modification? - answer• Only contracting officer's signature needed • Change order issued per the changes clause (within scope of contract) What is bilateral modification? - answer• Requires the signature of the Contracting Officer and the contractor • A negotiated equitable adjustment resulting from the issuance of a change order An "in-scope" modification does not: - answer- Place an undue burden on the contractor