The correct answer is D because, under NCMA CMBOK principles, a constructive change occurs when a contractor performs work beyond the contract requirements due to informal direction, defective specifications, or government conduct, without a formal modification being issued. In such cases, the contractor may be entitled to an equitable adjustment.

In this scenario, however, Bilateral Modification 7 explicitly changed the requirement from delivering “new surplus” parts to “new production” models, and this change was mutually agreed upon by both parties . Because the modification was formalized as a bilateral agreement , it supersedes the original delivery order requirements. The contractor (ABC) then performed exactly in accordance with the revised contractual terms , not beyond them.

CMBOK emphasizes that once a bilateral modification is executed, it reflects mutual assent , and any associated risks—unless explicitly reserved—are considered accepted by both parties. ABC did not negotiate a price adjustment at the time of the modification, nor did it reserve the right to seek additional compensation later. Therefore, the increased cost does not qualify as a constructive change.

Option A is incorrect because increased cost alone does not establish a constructive change. Option B is irrelevant to the definition of constructive change. Option C is incorrect because ABC did not perform beyond contract requirements; it complied with the modified agreement.

Thus, consistent with CMBOK post-award change management principles, no constructive change occurred.

The correct answer is A (Making negotiated equitable adjustments resulting from the issuance of a change order) because, according to NCMA Contract Management Body of Knowledge (CMBOK), a bilateral modification (supplemental agreement) is used when both parties agree to modify the terms of the contract . This type of modification requires the signatures and consent of both the buyer and the seller.

In the context of contract changes, when a change order is issued unilaterally by the buyer, it may initially direct the contractor to proceed with the change. However, any resulting equitable adjustment —such as changes to price, schedule, or other terms—must be negotiated and agreed upon by both parties , making it a bilateral modification.

Option B (administrative changes) is incorrect because these are typically handled through unilateral modifications that do not affect substantive rights (e.g., changes in address or payment office). Option C (termination notices) and D (issuing change orders) are also unilateral actions taken by the buyer.

CMBOK emphasizes that bilateral modifications are essential for maintaining mutual agreement, fairness, and contractual integrity when substantive changes occur. They ensure that both parties formally acknowledge and accept revised terms, which is critical during the post-award phase of contract management.

The correct answer is C (review non-cost/price factors on their own merits) because, according to NCMA CMBOK, evaluation of proposals during the source selection process must maintain a clear separation between technical (non-price) evaluation and cost/price evaluation . This ensures fairness, objectivity, and compliance with stated evaluation criteria.

CMBOK emphasizes that technical evaluation teams are responsible for assessing factors such as technical approach, management capability, past performance, and compliance with requirements , strictly based on the criteria defined in the solicitation. These factors must be evaluated independently of price considerations to avoid bias and ensure that the technical quality of proposals is judged on its own value.

Option A (use a deficiency log) may be part of internal evaluation tracking but is not the primary principle guiding evaluation. Option B (verify proposed funding sources) is unrelated to technical evaluation and pertains more to financial oversight. Option D (consider price proposals) is incorrect because price evaluation is conducted separately, often by a different team or through a distinct process.

CMBOK highlights that maintaining this separation enhances transparency, integrity, and defensibility of the source selection process, ensuring that award decisions are based on a balanced and properly structured evaluation of all relevant factors.

The correct answer is A (Close Out Contract) because, according to NCMA Contract Management Body of Knowledge (CMBOK), contract closeout is the final step in the contract lifecycle and ensures that all contractual obligations have been fully completed and properly documented .

CMBOK defines contract closeout as the process that verifies that all deliverables have been accepted, all administrative actions have been completed, contractor performance has been evaluated, final payments have been processed, and any outstanding issues have been resolved . This process also includes reconciling contract records, ensuring that all modifications are incorporated, and confirming that no further obligations remain for either party.

Option B (Accept Performance) is only one component of contract administration and does not encompass the full closure process. Option C (Terminate Contract) refers to ending a contract before completion and is not the same as completing all obligations. Option D (Audit Contract) may occur during or after performance but is not the comprehensive closeout process.

CMBOK emphasizes that effective contract closeout ensures financial accuracy, proper documentation, and organizational learning , including capturing lessons learned for future contracts. It is a critical activity in the post-award phase , ensuring that the contract lifecycle is formally and completely concluded.