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RACC CRA Exam
Certified Research Administrator (CRA) (Page 6 )

Updated On: 1-Feb-2026
Page 6 of 49
PDF with 240 Questions

For the sake of integrity, the nature and extent of contract administration should not vary from contract to contract.

  1. True
  2. False

Answer(s): B

Explanation:

The specific nature and extent of contract administration varies from contract to contract. It can range from the minimum acceptance of a delivery and payment to the contractor to extensive involvement by program, audit and procurement officials throughout the contract term. Factors influencing the degree of contract administration include the nature of the work, the type of contract, and the experience and commitment of the personnel involved.



Which of the following should be the beginning of the actual process of good contract administration?

  1. Pre award orientation,
  2. Post award orientation
  3. Debriefing
  4. None of the choices.

Answer(s): B

Explanation:

Post award orientation, either by conference, letter or some other form of communication, should be the beginning of the actual process of good contract administration. This communication process can be a useful tool that helps purchasing organization and contractor achieve a clear and mutual understanding of the contract requirements, helps the contractor understand the roles and responsibilities of the purchasing organization officials who will administer the contract, and reduces future problems.



Concerning indirect costs, a completed cost type contract may be subject to delay due to the need for:

  1. invoice consolidation
  2. invoice validation
  3. issuance of proforma balance sheet
  4. final establishment of overhead rates
  5. None of the choices.

Answer(s): D

Explanation:

Concerning indirect costs, a completed cost type contract may be subject to delay due to the need for final establishment of overhead rates. Concerning final payment, attention should be given to incrementally funded contracts as there may be uncollectable debts and price revisions.



Talking about the forms of agreement in regards to compensation, which of the following refers to a remuneration which establishes a specific total amount payable for the performance of the contractual work?

  1. regular payment
  2. flow payment
  3. cash sum payment
  4. lump sum compensation
  5. cost plus net fee compensation
  6. None of the choices.

Answer(s): D

Explanation:

Talking about the forms of agreement in regards to compensation, a lump sum compensation is a remuneration which establishes a specific total amount payable for the performance of the contractual work. Lump sum compensation would be appropriate if you can establish with high precision the Scope, Character, Complexity and Duration of the work and that just compensation for the contractual work can be evaluated in advance with reasonable accuracy.



Which of the following is a form of reimbursement very popular for consultant contracts?

  1. rate of pay compensation
  2. flow payment
  3. cash sum payment
  4. lump sum compensation
  5. cost plus net fee compensation
  6. None of the choices.

Answer(s): E

Explanation:

Cost plus net fee compensation is a form of reimbursement very popular for consultant contracts. It is basically a combination of a consultant's actual allowable costs and the net fee as set forth in the agreement. You would want to go for this when the extent of the work cannot be well defined. Payment would be based on the actual allowable costs incurred and the completion percentage times the applicable net fee.



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