When Making Contingency Estimates, the Contractor Should

question 102

Multiple Choice

When making contingency estimates, the contractor should

• A) estimate the amount to mitigate high impact and probable issues.
• B) include an amount for each issue that has high impact.
• C) include a small amount for each possible issue.
• D) heavily pad the estimates to include every issue.

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Definitions:

Systematic Change

A long-term strategy that changes the organization's culture and attitudes, and employees' values, with the goals of reducing costs and enhancing quality.

Time Horizon

The length of time over which an investment, project, or strategic decision is expected to unfold or achieve certain goals.

Psychological Contract

An unwritten commitment between employers and their employees that historically guaranteed job security and rewards for loyal service.

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.