Certified Research Administrator Practice Exam

When can the government refuse to make payment to your institution for work already conducted?

1. Under a cost reimbursement contract when a deliverable has not been completed, submitted, and accepted

2. Under a fixed price contract when a deliverable has not been completed, submitted, and accepted

3. Under a delivery order contract when a deliverable has not been completed, submitted, and accepted

4. All of the above

The correct answer is: All of the above

The government can refuse to make payment to an institution for work already conducted in various contractual scenarios if the necessary deliverables have not been completed, submitted, and accepted. This principle applies across different types of contracts, including cost reimbursement contracts, fixed price contracts, and delivery order contracts. In a cost reimbursement contract, the government only reimburses allowable costs as the work progresses, contingent upon the deliverables being completed to the satisfaction of the contracting agency. If the institution has not met these requirements, payment may be denied. With fixed price contracts, the pricing is predetermined, but payment is still contingent upon the submission and acceptance of deliverables. If the deliverables are incomplete, the government has grounds to refuse payment. Finally, in the case of delivery order contracts, which usually involve specific deliverables over a specified period, the government maintains the right to withhold payment for any undelivered or unaccepted items. Thus, the response that the government can refuse payment under all of the mentioned contract types when deliverables have not been fulfilled is accurate. This comprehensive understanding highlights the importance of meeting contractual obligations to secure payment.