Reference no: EM132241563

1. NASA considers _____ in all cases in which profit is to be specifically negotiated.

A. Direct labor

B. Material

C. Subcontracts

D. Overhead

E. All of the above

2. According to the statutory limitations imposed by 10 U.S.C 2306(d) and 41 U.S.C 254(b) for experimental, developmental or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed _____ of the contract’s estimated cost, excluding fee.

A. 5%

B. 15%

C. 25%

D. 10%

3. True or False:

The profit or fee is a relatively small portion of a government contract. The government should be interested more in the total cost than in the negotiated profit or fee.

4. True or False:

The previous Weighted Guidelines Method of developing contract profit objectives contained 25 separate calculations.

5. True or False:

When facilities capital cost of money is included as an item of cost in a proposal for a NASA contract, the contracting officer must reduce the negotiated profit.

6. True or False:

In the Facilities Capital Employed concept, Land is considered equally as valuable in improving productivity as Equipment.

7. True or False:

DOD’s contract financing policies do not take into account that a contractor’s interest expense is an unallowable cost.

8. True or False:

In evaluating profit dollars for a NASA contract, consideration should be given to the contractor independent research and development.