NCMA - National Contract Management Association Contract Modifications and Closeout Questions and Answers

Question 1

A contracting officer issues a written order to the contractor that changes the specification of a component.
This change is within the general scope of the contract.
The contractor believes this change will increase their cost and performance time.
According to the Federal Acquisition Regulation (FAR), what type of modification is this initially, and what is required for the contractor to receive an equitable adjustment?

Accepted Answer

A unilateral modification (a change order); the contractor must assert their right to an equitable adjustment.

Answer

A bilateral modification; the contractor must sign the modification to be compensated.

Answer

An administrative change; the contractor automatically receives an adjustment based on the contracting officer's estimate.

Answer

A constructive change; the contractor should stop work until a formal change order is issued.

Question 2

Which of the following scenarios best exemplifies a 'constructive change' in a government contract?

Accepted Answer

During performance, a government inspector with no contractual authority repeatedly requires the contractor to perform to a higher standard of finish than specified in the contract, and the contractor complies to avoid conflict.

Answer

The contracting officer issues a formal, written change order directing the contractor to use a different, more expensive material.

Answer

The parties mutually agree in writing to extend the period of performance by 30 days with no change in price.

Answer

The contracting officer formally terminates a portion of the contract for the convenience of the government.

Question 3

According to FAR 4.804-1, what is the standard timeframe for closing out a firm-fixed-price contract file (not using simplified acquisition procedures) after the contracting officer receives evidence of physical completion?

Accepted Answer

Within 6 months.

Answer

Immediately upon final payment.

Answer

Within 20 months.

Answer

Within 36 months.

Question 4

A contract modification that is signed by both the contractor and the contracting officer is known as a:

Accepted Answer

Bilateral Modification

Answer

Unilateral Modification

Answer

Change Order

Answer

Administrative Change

Question 5

During contract closeout, the contracting officer must verify that several actions are completed. Which of the following is a primary step in the closeout process as outlined in FAR 4.804-5?

Accepted Answer

Verifying the contractor's final invoice has been submitted and final payment has been made.

Answer

Ensuring the contractor has initiated marketing for future government contracts.

Answer

Conducting a performance review of the contracting officer's representative.

Answer

Confirming the contractor has renewed their System for Award Management (SAM) registration.

Question 6

A contracting officer needs to change the paying office and the appropriation data on a contract. This change does not affect the substantive rights of either the government or the contractor. What is the appropriate type of modification to use?

Accepted Answer

A unilateral modification in the form of an administrative change.

Answer

A bilateral modification, because all changes require contractor agreement.

Answer

A constructive change, because it's an informal alteration.

Answer

A superseding contract that replaces the original.