CON200 CHAPTER 9.docx - 1 Which incentive type contract is...

1) Which incentive type contract is most appropriate when there is a solid base for
pricing and objective targets can be established for performance?
[Contrast the key
characteristics of the various types of incentive contracts.]
Fixed-price incentive
2) Incentive contracts are designed to attain specific acquisition objectives by
rewarding contractor achievements that exceed stated targets and withholding
incentives when contractors fail to attain stated targets. Under these contracts, how
is the profit/fee affected?
[Recognize concerns that affect the use of incentive contracts.]
Profit/fee increases when contract performance targets are
surpassed.
Profit/fee does not change regardless of the contractor’s performance under
the contract.
Profit/fee decreases when contract performance targets are
surpassed.
Profit/fee incentives are tied only to the contractor’s achievement of
subjective criteria.
3) Federal agencies are required to include an overall price ceiling in a contract when
the award is based on competition; however DoD contracting officers are NOT required
to include any type of price ceiling in any of its undefinitized contract actions.
[Identify
the key characteristics of an undefinitized contract action (UCA).]
True
Fals
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4) A severe damaging rain and windstorm hit the area where your base is located. The
roof has blown off the commissary warehouse and $3,000,000 in merchandise is at
risk of being destroyed. Also part of the roof covering the critical care unit of the

hospital has been blown off. These repairs must be made quickly, but you can’t use
the government purchase card (GPC) since your organization has lost the authority to
make purchases with the card. So how do you proceed?