Business
EXERCISE #4: QUESTIONS
1. Identify four approaches to establishing an equitable adjustment.
a.
b.
c.
d.
2. Which of the approaches to pricing an equitable adjustment is normally
considered best?
3. Identify the types of cost that you should consider in making an equitable
adjustment.
4. In pricing work deleted from a contract, should you use the proposed price or
current estimated price to perform the work?
5. When is a claim certification required?
6. What two requirements establish the maximum period for letter contract
definitization?
7. From what point in time is the government responsible for paying interest on
a contract claim?
8. Why do you consider the loss ratio in pricing a non-commercial item fixedprice contract termination for convenience?
9. What basis is preferred for settlement of a non-commercial item fixed-price
service contract termination for convenience?
10. Unit costs under a fixed-priced, non-commercial item contract will increase
because 100 units were terminated from the original 500-unit requirement. Is
the contractor entitled to an equitable adjustment?
