Final answer:
Receiving a contract to define detailed performance specifications for services is a normal procedure in business operations related to contract procurement, provided there is no conflict of interest.
Step-by-step explanation:
When ABC, Inc. receives a contract to define the detailed performance characteristics for Navy base housing maintenance services, it represents a normal procedure. Companies are often contracted to provide specifications or services for government agencies. It would be considered an ethics violation or a conflict of interest if the company providing the specifications also had interest in a business that could benefit from those specifications, or if they had any influence over the contracting process. However, simply receiving a contract to define performance characteristics is a part of regular business operations, known as contract procurement. The correct answer is b) Contract modification. When a contract is modified, it means that changes have been made to its terms, conditions, or scope. In this case, ABC, Inc. receiving a contract to define the detailed performance characteristics for Navy base housing maintenance services indicates that there has been a modification to the contract.