Certified Professional Contracts Manager (CPCM) - NCMA Exam Questions

A(n) __________ is a legally binding document setting forth the conditions under which proprietary information is offered, received, used, and protected between two or more parties.

A contractor that has present or planned interests that either directly or indirectly relate to the work to be performed under a contract, and may result in an unfair competitive advantage, may have a(n) __________.

While preparing a negotiation objective, a way to ensure flexibility is to adopt which of these
positions?

Scenario 4.0: 2 — “The Requirements of a Requirements Contract”
In 2019, the buyer awarded National Concrete Supply (NCS) the first of three consecutive contracts
for concrete placement, asphalt surface treatments, and pavement markings at one of its facilities.
The first one-year contract had an option to extend performance through April 30, 2022. The 2020 contract was a “requirements type contract to be ordered on individual delivery orders.” The scope of the contract required NCS to furnish all labor, materials, equipment, transportation, traffic control, and supervision for construction and repair services. The contract provided that services for concrete work would “include, but not be limited to” base course restoration, crack repair, joint repair, concrete headwalls, complete restoration, concrete curb and gutter, concrete porches, steps, and patios, slab jacking, concrete sidewalks, rapid-set concrete repair, culverts and drainage structures, repair or construction of roads, airfield surfaces, walkways, retaining walls, parking lots, and concrete footings. The buyer reserved the right “to have work falling within the scope of the contract performed by in- house personnel, job order contracting, or by another contract where concrete placement, asphalt surface treatment, or pavement marking is incidental to other work.” The 2020 contract also included clauses stating, among other things, that this was a requirements contract and that the estimated quantities were not the buyer’s total requirements, but only estimates of requirements exceeding quantities the buyer might furnish within its own capabilities.



Following expiration of the 2020 contract, the buyer entered into additional one-year contracts in 2022 and 2023. Based on the comparison table provided, the key changes were:
2022: Added revisions to site work associated with the placement of concrete or asphalt; added a
definition of “incident” as work in, on, and up to a perimeter of 5 feet around the structure or item to complete work if its origin is within that 5-foot perimeter; no change to contract description; no change to the clause stating the contract was a requirements-type contract.
2023: Added items NCS would furnish, including engineering/layout, preparing subgrade to receive
compacted crushed stone base, and clear and grubbing; deleted the line reserving the buyer’s right to have certain work performed by in-house personnel, job order contracting, or another contract
where concrete placement, asphalt surface treatment, or pavement marking was incidental to other
work; updated the contract description to state the contract was a “requirements type contract for construction/repair of asphalt pavement, concrete pavement, pavement markings, and site preparation”; and replaced the clause with one stating that the estimated quantities set forth in the 2023 contract, and the buyer’s obligation to order under the 2023 contract, excluded work that the buyer itself would perform. NCS claimed that during performance of the 2020, 2022, and 2023 contracts, the buyer diverted substantial portions of work within the scope sections to other contractors and claimed lost profits The buyer agreed that the 2020 contract was a requirements-type contract. However, the buyer and under each contract. seller disagreed about whether the 2022 and 2023 contracts were requirements-type contracts. Were these contracts requirements-type contracts?

A life cycle process used by both small and large businesses that ensures consistency and discipline to aggressively pursue and win contract opportunities is called __________.