Preview Questions Defense Contract Manager | Role Specific Skill

Question 1: What is the role of auditing in ensuring regulatory compliance in defense contracts, and how should a contract manager use it effectively?

Which action should you take?

Choose only one option

Auditing is the responsibility of external agencies and not the contract manager

Auditing is unnecessary and should only be done after a breach occurs

Auditing is only relevant for financial aspects, not regulatory compliance

Auditing ensures that all contractual obligations are met and compliance is maintained throughout the contract lifecycle

Question 2: How should changes in project timelines be documented in defense contracts to ensure clarity and avoid disputes?

Which action should you take?

Choose only one option

By verbally communicating changes to the contractor without formal documentation

By issuing formal contract amendments with updated schedules and ensuring both parties agree to the changes

By ignoring delays and assuming the project will continue as planned

By excluding schedule changes from final reports to avoid confusion

Question 3: What is the role of an Earned Value Management System (EVMS) in defense contract reporting, and how should a contract manager use it?

Which action should you take?

Choose only one option

To track cost, schedule, and performance against the baseline, providing early indicators of deviations

To provide a summary of the project's status at the end of the contract

To simply record expenditures without tracking performance

To ignore performance measurements in favor of budget tracking

Question 4: How does "Risk Transfer" help in mitigating risk in defense contracts, and when is it most effective?

Which action should you take?

Choose only one option

Risk transfer is ineffective in defense contracts due to strict regulations

Risk transfer focuses on avoiding the risk altogether, making it irrelevant for defense contracts

Risk transfer only applies to financial risks, not operational ones

Risk transfer involves shifting the responsibility of a particular risk to another party, such as through insurance or subcontracting

Question 5: What role does "Subcontractor Flowdown" play in contract negotiations in defense procurement, and why is it important for compliance?

Which action should you take?

Choose only one option

Subcontractor flowdown ensures that the same terms and conditions are passed down from the prime contractor to the subcontractors, maintaining consistency

Subcontractor flowdown only applies to software contracts and not hardware

Subcontractor flowdown is irrelevant if the subcontractor is not involved in direct performance

Subcontractor flowdown applies only to international contracts, not domestic ones

Question 6: How does "Legal Risk Management" mitigate potential legal issues during defense contract execution?

Which action should you take?

Choose only one option

Legal risk management only applies to financial contracts

Legal risk management identifies and addresses potential legal issues, ensuring compliance and reducing exposure to litigation

Legal risk management is irrelevant if the contract is already signed

Legal risk management focuses only on intellectual property risks, not operational ones