Instructions: Answer only two questions below. You must answer question 1; you may choose only one question from Question 2, 3, or 4. NO EXTRA CREDIT is available.

Your response should be about 2-3 paragraphs for question 1 and 1-2 paragraphs for question 2. Your total for both questions may not exceed two pages (about 1200 words).

Worth 50%:

1. Write a short essay that explains how to determine the best contract type for a solicitation.

Worth 50%: Answer only one of the following 3 questions:

2. Explain why warranty service represents an increased cost to the seller (and a potential increase in price to the buyer) and why the parties might want to reduce or expand the warranty service coverage.

3. Explain how the FAR numbering system works and provide an example of an instruction provided in FAR Parts 1-51 and a clause in FAR Part 52.

4. Explain why a Contracting Officer wants a contractor to make a profit.