Which of the following is a potential remedy in Commercial Contract Disputes?

• A. Request for Equitable Adjustment
• B. Termination for Convenience
• C. Manage Change
• D. Expectation Damages

Scenario 6.0: 2
ABC Corporation (ABC) entered into a firm-fixed-price, indefinite-delivery/indefinite-quantity (IDIQ) contract with a Federal buyer for the purchase of various "Soviet-style" parts. The contract language allowed for changes to:
o Drawings, designs, or specifications when the supplies to be furnished are to be specially manufactured for the buyer; o The method of shipment or packing; and o Place of delivery.
The contract also specified that:
If any such change causes an increase or decrease in the cost of, or the time required for, performance of any part of the work under this contract, whether or not changed by the order, the buyer shall make an equitable adjustment in the contract price, the delivery schedule, or both, and shall modify the contract.
ABC was unable to obtain a particular part required to fulfill a delivery order under the contract, and missed the deadline for delivery. Two years after the deadline passed, with no delivery, the failure provided cause for termination for default under the conditions outlined in the contract. To avoid default, ABC entered into Bilateral Modification 4 with the buyer. The modification required ABC to provide additional parts as consideration for late delivery. The modification also stated that a new delivery date for the original delivery would be determined in another modification.
ABC remained unable to purchase the parts to fulfill the original order. A new modification, Bilateral Modification 7 , provided that ABC would deliver "new production" models of the parts in question, rather than the "new surplus" parts specified in the original delivery order. The idea to deliver new production models of the parts had originated with ABC and was accepted by the buyer. ABC did not attempt to negotiate any changes in price, no discussions of price were held, and no price adjustment was included in this modification.
ABC completed delivery of these parts on time. However, the new production models cost significantly more than the new surplus parts originally ordered.
Approximately four months later, ABC submitted a request for equitable adjustment (REA) to the buyer. In the REA, ABC requested $1,369,377.47 , which represented the difference in price between the parts called for by the original delivery order and the parts ABC ultimately delivered. The buyer rejected the request.
Question:
Based on the contract language that specified how the contract would handle changes, was ABC entitled to an equitable adjustment?

• A. Yes, because a change was made to the contract that increased the price.
• B. Yes, because the buyer agreed to accept "new production" weapons rather than "new surplus" weapons.
• C. No, because no change was made to the specifications, design, or place of delivery.
• D. No, because the change was made in a bilateral modification based on a substitute product offered by the contractor.

Scenario 5.0: 1
Offeror C contested the exclusion of its proposal from the competitive range under a request for proposals (RFP) issued by the buyer for "aircraft logistics, integration, configuration management, and engineering" (ALICE) services. The seller would provide personnel to work at a buyer's location, and the buyer would direct all work and "establish work hours consistent with meeting the mission at each contract location." The RFP provided an estimated level of effort, and offerors completed a pricing model spreadsheet.
Proposals were to be evaluated on mission suitability, past performance, and cost/price. The mission suitability and past performance factors were approximately equal in importance, and each was more important than cost/price. The purpose of the mission suitability factor was to determine the offeror's ability to provide the required personnel at the required work hours to fulfill the contract need. It included several subfactors: management approach, overall management approach, staffing approach, and contract phase-in approach.
Offeror C argued that the buyer unfairly assessed a management approach weakness for failing to show a plan for complying with required work schedules and break times, failing to consider that the buyer establishes work hours consistent with mission needs, and failing to consider the buyer's intention to have night shift work on Sundays. Offeror C's proposal had discussed its approach to managing scheduling and breaks and stated that it would comply with collective bargaining agreement requirements. The buyer nevertheless judged the approach inadequate because it did not explain how Offeror C would enforce worker compliance, comparing the plan to a highway speed-limit sign that does not ensure motorists will not speed. GAO found that the RFP required offerors to explain their approaches to ensuring flexible scheduling and required breaks, but did not reasonably disclose that offerors also had to propose an enforcement mechanism.
Question:
Should Offeror B, whose cost was the lowest of the three offerors, have been awarded the contract?

• A. Not necessarily, because "cost/price" was not weighted as heavily as "mission suitability" and "past performance" in the evaluation.
• B. Yes, because the lowest-cost proposal should always be accepted when using negotiated source selection.
• C. Not necessarily, because "cost" is not considered an evaluation factor unless the difference between each offer is determined to be "significant."
• D. Yes, because the low cost justifies the deficiencies in "mission suitability" and "past performance."

Certain items need control of work operations, in-process controls, and inspection to meet technical requirements. In such a situation, buyers and sellers may use higher-level quality standards. Which of the following is a higher-level quality standard?

• A. International Standards Organization (ISO) certification
• B. Association for Testing and Materials (ASTM) certification
• C. National Institute for Standards and Technology (NIST) certification
• D. Contract Quality Assurance (CQA) certification

The commonly accepted functions of business management are __________.

• A. planning, implementing, and controlling
• B. planning, organizing, directing, and controlling
• C. strategic, operational, tactical, and contingency
• D. planning, producing, pricing, and placing