Certified Research Administrator Practice Exam

Which contract type requires the completion, submission, and acceptance of deliverables to receive payment?

1. Cost reimbursement contract

2. Fixed price contract

3. Delivery order contract

4. All of the above

The correct answer is: All of the above

The contract type that requires the completion, submission, and acceptance of deliverables to receive payment is indeed linked to the primary characteristics of different contract types. In any form of contract where payment is contingent on the delivery of specified goods or services, the completion and acceptance of those deliverables are crucial for payment processing. In a cost reimbursement contract, the contractor is reimbursed for allowable costs incurred while performing the contract. However, there typically is an expectation that deliverables are submitted for approval before payment can be processed. This ensures that the costs claimed are associated with satisfactory work. Similarly, in a fixed price contract, the contractor agrees to deliver a complete project for a predetermined price. The payment is made upon satisfactory completion and acceptance of the deliverables, ensuring that the work meets the agreed-upon standards and requirements. For a delivery order contract, which is often associated with indefinite delivery/indefinite quantity contracts, specific orders for goods or services must still be fulfilled and accepted before payment is made. This arrangement maintains accountability and assures that the delivered items meet the necessary criteria established in the contract. Hence, it is accurate to conclude that all the mentioned contract types rely on the completion, submission, and acceptance of deliverables before payment can be made. Each