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4. Question No. 1 ________ a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. Where as ________ is a costreimbursement contract that provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs: A. Cost sharing, Cost-plus-incentive-fee B. Cost-plus-fixed-fee is, Cost-plus-incentive-fee C. Cost-reimbursement, Cost sharing D. Cost-plus-incentive-fee, Cost sharing Answer: B Question No. 2 The most common form of service delivery is via government employees. It is this approach that has created bureaucracies at the national, regional, and, in some cases, local level. All of the following given below are some of the disadvantages of direct delivery of services by government employees EXCEPT: A. Increased lead time for deployment of new programs as internal staff resources are allocated among current and proposed programs. B. Indirect (''hidden'') costs to program (pension, benefits, training, etc.). C. Direct (''hidden'') costs to program (pension, benefits, training, etc.). D. Decreased flexibility to make changes/reductions (due to constraints on hiring, layoffs, and position reclassification). Answer: C Question No. 3 Contracts are written agreements (in most cases) that obligate the government to expenditure of money upon delivery of goods or performance of services. Following are various contract types available to ensure cost-effective delivery of services please choose the correct option: A. Fixed-price B. Firm fixed-price C. Cost-plus-award-fee D. A & C only. E. All of above. Answer: E Question No. 4 Grants are used by governments to operate programs and provide services. Following are some of the some of the advantages of using grants please choose the correct option: A. Use of resources for monitoring compliance with grant terms. B. Decrease in control over specific program activities. C. Limitations on consistency of program implementation and leadership. D. All of the above. E. None of the above.

5. Answer: E Question No. 5 Grants are used by governments to operate programs and provide services. Following are some of the some of the disadvantages of using grants please choose the correct option: A. Increased control over program design and types of services, since specific requirements can be included in grant agreements. B. Increased control over expenditure categories, since only specific expenditures may be permitted in the grant agreement. C. Ability to place limits on costs (such as overhead costs) that will be reimbursed. D. None of the above. E. All of the above. Answer: D

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