1) Which of the following statements about Common Law Orders of Precedence is incorrect? Preprinted terms control over handwritten terms. Typewritten terms control over preprinted terms. Handwritten terms control over typewritten terms. Specific terms control over inconsistent general terms. 2) Acme Corporation submits an initial proposal to perform maintenance on target drone aircraft at NAS DESERT VISTA. During discussions, the contracting officer notes that Acme’s price calculations are based on the premise that Acme will hire mechanics at the labor rates contained in the Department of Labor (DOL) wage determination. The contracting officer notes that Acme already has a contract to provide aircraft maintenance at NAS DESERT VISTA and that the unionized mechanics working under that contract already receive wages higher than the DOL prevailing rate. The contracting officer questions whether Acme will be able to pay new employees less than the wages already being paid to current employees. Acme’s project manager concedes it could be a problem and reluctantly agrees to recalculate Acme’s price, but complains that “we might lose the contract because of this.” Acme’s final proposal revision increases the proposed price by $1,000,000 and it loses to Beta, who offers a price that is $500,000 lower. Acme protests to GAO. Which is the most likely outcome? The protest will be dismissed as untimely, because Acme was aware of this ground of protest before submitting the final proposal revision and therefore had to file the protest prior to that time. The protest will be heard by GAO because the Contracting Officer assured Acme that “it could always file a protest”; by this statement, the contracting officer “waived” GAO’s timeliness rules The protest will not be heard by GAO, because this issue concerns DOL labor rates. Therefore, the matter must be submitted to the Department of Labor. The protest will be dismissed without consideration by GAO, because Acme must first file its protest with the contracting officer before filing with GAO. 3) If the contractor submits a request for equitable adjustment in response to a unilateral change order, and it calculates its claim using the Actual (Specific) Cost Method, what action may the Government take to try to limit the amount paid? Limit the amount claimed if the value of the change to the government is less than the specific costs incurred by the contractor in performing the change. Limit the amount claimed if the equitable adjustment results from a “cardinal” change. Limit the amount claimed if the government can demonstrate the costs are unreasonable. 4) Six months ago, the government purchased and accepted several widgets (a noncommercial item) to be used as replacement parts in government equipment. Because failure of a widget can cause substantial damage to equipment in which it is installed, the government inspects widgets prior to acceptance. Last week, two widgets failed and caused a great deal of damage. The government now wishes to revoke its acceptance of these two widgets, and any others it finds in its current inventory that are faulty. Which of the following statements best describes the situation? Since the contractor should have known the welds were defective, the defects were latent and the government can therefore successfully revoke its acceptance. Since the contractor has the burden of proof that the defect was latent, the government will probably prevail. The government will probably prevail because the widget was not fit for its intended purpose, and the contractor therefore breached its warranty of merchantability, permitting the government to revoke its acceptance. Since its inspection of the widgets did not disclose the defect, the government will win only if it can show that its inspection was reasonable.
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