29 Jul 1) WHICH ONE OF THE FOLLOWING STATEMENTS PERTAINING
1) Which one of the following statements pertaining to a cancellation ceiling is FALSE? A cancellation ceiling applies to multiyear procurement contracts The cancellation ceiling always remains the same over the life of the contract The cancellation ceiling usually declines over the life of the contract The cancellation ceiling of a contract should be budgeted to its full amount unless an exception is granted by the OSD Comptroller2) Which one of the following best describes DoD philosophy of budgeting for a Firm Fixed Price contract? Budget for the estimated negotiated price Budget for the ceiling price Budget for the target price Budget for the estimated negotiated price and the maximum amount of the price adjustment clause3) Which one of the following contracts most likely would NOT require contract performance reporting by a Contract Performance Report (CPR)? Cost Plus Award Fee RDT&E contract valued at $82 million (then year dollars) Fixed-Price Incentive Fee Procurement contract valued at $450 million (then year dollars) Firm-Fixed Price Procurement contract valued at $310 million (then year dollars) Cost Plus Fixed Fee RDT&E contract valued at $75 million (then year dollars)4) Which one of the following is a characteristic of a Cost Plus Incentive Fee contract? Ceiling price representing the maximum to be paid by the government Share ratio specifying government/contractor shares of the award fee Award fee that may be earned based on contractor`s performance relative to criteria established in the contract Target price consisting of target cost and target fee
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