11) Your auditor has notified you that while conducting an audit of a Hide-Um Corp

proposal for the same product you currently have on contract with them, the auditor found

information that the contractor may have intentionally submitted vendor quotes that were

significantly higher than his actual costs. You double check your file and verify that Hide-

Um did submit certified cost or pricing data which you used to negotiate the final contract

price. Choose the reason why this scenario would put the contractor in debt with the

Government.

Choose one of the following?

1. Billing overpayment
2. Retroactive price reduction
3. Defective pricing
4. Breach of contract obligation