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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Post-Award | ~20-25% | - Contract Closeout - Dispute Resolution - Change Management - Contract Administration - Performance Monitoring |
| Topic 2: Pre-Award | ~20-25% | - Market Research & Analysis - Sourcing Strategies - Acquisition Planning - Requirements Definition - Solicitation Development |
| Topic 3: Award | ~15-20% | - Proposal Analysis - Negotiation Principles & Techniques - Evaluation Criteria & Process - Award & Notification - Contract Formation |
| Topic 4: Finance | ~5-8% | - Cost & Price Analysis - Budgeting & Funding - Financial Compliance |
| Topic 5: Contract Administration | ~10-15% | - Stakeholder Communication - Risk Management - Documentation & Records - Compliance & Governance |
| Topic 6: Leadership | ~8-12% | - Decision Making - Team & Relationship Management - Strategic Thinking - Professional Ethics |
| Topic 7: Project Management | ~5-8% | - Resource Management - Scope & Schedule Management - Quality Assurance |
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NEW QUESTION # 75
Fee is the __________.
Answer: D
Explanation:
The correct answer is B because, according to NCMA CMBOK principles and the ANSI/NCMA Contract Management Standard, "fee" refers specifically to the amount negotiated in excess of allowable costs in a cost-reimbursement contract environment. Fee is distinct from profit and is commonly used in government contracting terminology.
In cost-type contracts, the contractor is reimbursed for allowable, allocable, and reasonable costs incurred during contract performance. The fee represents the contractor's earnings above those allowable costs and is negotiated at the time of contract award. This fee may be structured as fixed fee, award fee, or incentive fee , depending on the contract type and performance objectives.
Option A and C incorrectly describe profit-like residual income calculations after expenses, which align more with commercial profit concepts rather than the formal definition of fee in government contracting. Option D is incorrect because unallowable costs are not reimbursed under the contract and therefore are not included in the basis for determining fee.
CMBOK emphasizes that understanding the distinction between cost, fee, and profit is critical during the award phase , particularly when negotiating contract pricing and incentives. Proper structuring of fee ensures alignment between contractor performance and buyer objectives while maintaining compliance with regulatory cost principles.
NEW QUESTION # 76
The risk avoiding buyer wants to minimize the risk of agreeing to a higher price than necessary to cover the buyer's costs plus a reasonable profit.
Answer: B
NEW QUESTION # 77
The contract closeout process should begin when the ____________.
Answer: C
Explanation:
The correct answer is A because, according to NCMA Contract Management Body of Knowledge (CMBOK) principles, contract closeout activities should begin when the contract is physically completed , not when final delivery or acceptance occurs. Physical completion refers to the point at which the contractor has fulfilled all contractual requirements, including delivery of goods or completion of services, even if administrative actions are still pending.
CMBOK emphasizes that closeout is a structured post-award process that ensures all contractual obligations have been satisfied, final payments are made, disputes are resolved, and documentation is archived. Beginning the closeout process at physical completion allows contract managers to proactively address administrative tasks such as verifying deliverables, reconciling invoices, ensuring property disposition, and documenting lessons learned.
Options B, C, and D represent milestones within contract performance but are too narrow or delayed triggers for initiating closeout. Waiting until inspection or acceptance may unnecessarily postpone critical administrative actions, increasing the risk of incomplete documentation, delayed payments, or unresolved claims. CMBOK best practices recommend that contract managers plan and initiate closeout activities early
, often even before final acceptance, to ensure efficiency and compliance.
Thus, physical completion is the correct trigger because it aligns with the post-award lifecycle management approach promoted by NCMA, ensuring timely, compliant, and well-documented contract closure.
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NEW QUESTION # 78
An agreement on a set of criteria and procedures to be applied by the buyer in determining how well the seller has performed and how much fee the seller has earned is called:
Answer: D
NEW QUESTION # 79
Which of the following shows the designated performance area in the subjectively-based and evaluated incentives?
Answer: B
NEW QUESTION # 80
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