1.Which of the following is true concerning UCAs?

a.The contracting officer must obtain approval from the head of the contracting activity before entering into a UCA.

b.The contractor agrees to provide a certain amount of effort, for a certain time period, for a specified price.

c.A UCA provides for the continuous adjustment of the contractor's profit, based on the extent to which actual costs differ from projected costs.

d.none of the above

2.The use of a UCA may be appropriate for __________.

a.purchases above the simplified acquisition threshold

b.services ONLY

c.Congressionally mandated long-lead procurement contracts

d.both A and C

3.The use of UCAs raises concerns in regard to __________.

a.the obligation of funds in excess of allowable amounts

b.the question of whether the government is receiving fair and reasonable prices

c.both A and B

d.none of the above

4.Which is a justification for supporting a UCA?

a.There is only one reasonable source.

b.There may be significant negative impact on the agency mission if it is not used.

c.Competition is limited.

d.all of the above

5.What is the purpose of incentive contracts?

a.to associate the profit and fees payable under the contract with the contractor's performance

b.to allow flexibility when exact times or quantities of deliveries are unknown

c.to allow the contractor to bill for actual costs incurred

d.to hold a contractor to the dollar amount proposed in the RFP

6.Which of the following is a characteristic of an incentive contract?

a.It establishes realistic and attainable outcomes that are clearly communicated.

b.It assigns maximum responsibility for contract cost to the contractor.

c.It assigns maximum responsibility of resulting profit to the contractor.

d.all of the above