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Contract Types & Administration Flashcards

7 cards from real ASO practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

Read the first 7 Contract Types & Administration flashcards as text
  1. Which document typically accompanies a security services contract and outlines insurance coverage requirements the contractor must maintain?

    Answer: Certificate of Insurance (COI)

    A Certificate of Insurance proves the contractor carries the required coverage types and limits specified in the contract.

  2. The Service Contract Act (SCA) primarily affects security contracts by:

    Answer: Setting minimum wage and fringe benefit rates for service workers on federal contracts

    The SCA requires contractors on federal service contracts above a threshold to pay prevailing wages and fringe benefits as determined by the Department of Labor.

  3. A security company is awarded a contract with a base year and four option years. Who typically holds the right to exercise each option year?

    Answer: The client/contracting authority

    Option years give the client the unilateral right to extend the contract for additional periods without re-soliciting bids.

  4. A security contract requires the contractor to carry $1 million per occurrence / $2 million aggregate in general liability insurance. 'Aggregate' means:

    Answer: The total maximum the insurer will pay for all claims during the policy period

    The aggregate limit is the total amount an insurer will pay out across all claims during the policy term.

  5. When a security contract is awarded through a competitive bidding process, the document that solicits proposals from vendors is called a:

    Answer: Request for Proposal (RFP)

    An RFP outlines the client's requirements and invites security companies to submit detailed proposals for consideration.

  6. If a client requests additional security coverage beyond what the original contract specifies, the contractor should:

    Answer: Execute a formal change order or contract modification before proceeding

    A change order formally documents scope changes, protecting both parties by recording the agreed-upon modifications and any price adjustments.

  7. A security contract clause requiring the contractor to replace any officer the client deems unsatisfactory within 24 hours is an example of a:

    Answer: Personnel substitution clause

    A personnel substitution clause gives the client authority to request replacement of specific officers and sets the timeline for doing so.