CON200 CHAPTER 9.docx - 1 Which incentive type contract is most appropriate when there is a solid base for pricing and objective targets can be

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

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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 requiredto include any type of price ceiling in any of its undefinitized contract actions. [Identifythe key characteristics of an undefinitized contract action (UCA).]TrueFalse4) A severe damaging rain and windstorm hit the area where your base is located. Theroof 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
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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?
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