Certified Federal Contracts Manager (CFCM) Exam — Questions and Answers

Question 1: What action must the contracting officer take before excluding an offeror from the competitive range?

Provide written notice of the exclusion and, upon request, a pre-award debriefing (Correct answer)
Seek written concurrence from the program manager
Issue a cure notice allowing 10 days to correct deficiencies
Obtain SBA approval if the offeror is a small business

Correct answer: Provide written notice of the exclusion and, upon request, a pre-award debriefing

FAR 15.505 requires the contracting officer to promptly notify excluded offerors and offer pre-award debriefings upon request.

Question 2: What is the 'cardinal change doctrine' in federal contract law?

The rule that contract changes must be in writing to be enforceable
A doctrine holding that a change so substantial it alters the nature of the contracted work constitutes a breach rather than a valid change order (Correct answer)
The principle that the government must compensate contractors for all requested changes
A rule requiring congressional approval for contract changes exceeding $50 million

Correct answer: A doctrine holding that a change so substantial it alters the nature of the contracted work constitutes a breach rather than a valid change order

The cardinal change doctrine holds that a change so drastic it fundamentally alters the character of the work exceeds the Changes clause authority and constitutes a breach of contract.

Question 3: The standard progress payment rate for large businesses under FAR 32.501-1 is:

75%
85%
90%
80% (Correct answer)

Correct answer: 80%

FAR 32.501-1 establishes 80% as the customary progress payment rate for large businesses based on total costs incurred.

Question 4: Under the Equal Access to Justice Act (EAJA), when can a contractor recover attorney fees from the federal government after winning a CDA dispute?

When the government's position was not substantially justified and the contractor meets size/net worth thresholds (Correct answer)
Only when the dispute involved a construction contract
Whenever the contractor wins, regardless of circumstances
Only when the government committed fraud

Correct answer: When the government's position was not substantially justified and the contractor meets size/net worth thresholds

EAJA allows eligible small businesses and individuals to recover attorney fees when the government's litigation position lacked substantial justification.

Question 5: A contractor submits a proposal that includes labor rates based on a teaming agreement that has since fallen through. The contract manager is aware of this. What is the ethical obligation?

Substitute other labor categories without notification to avoid re-evaluation delays
Proceed with award and address the staffing issue during contract performance
Submit the proposal as is, since the agreement was valid at the time of the original estimate
Disclose the change in circumstances to the contracting officer before award (Correct answer)

Correct answer: Disclose the change in circumstances to the contracting officer before award

Material changes in the basis for a proposal must be disclosed to the Government to avoid misrepresentation; failure to disclose can constitute fraud.

Question 6: Under the executive branch gift rules (5 C.F.R. § 2635.204), which exception generally permits a Government employee to accept a gift from a contractor?

Any gift offered at an industry-wide conference or trade show
Gifts based on a bona fide personal relationship that predates the employment relationship and is clearly not connected to official duties (Correct answer)
Gifts valued under $100 from any source
Gifts to the Government employee's spouse rather than directly to the employee

Correct answer: Gifts based on a bona fide personal relationship that predates the employment relationship and is clearly not connected to official duties

The personal relationship exception permits gifts where the friendship is genuine, pre-existing, and the gift is given for personal—not official—reasons.

Question 7: What is the most important professional competency for CFCM certification in pricing and negotiation?

Memorization of all reference materials
Ability to work alone exclusively
Speed of task completion
Deep knowledge combined with practical application skills (Correct answer)

Correct answer: Deep knowledge combined with practical application skills

Professional competency requires both deep knowledge of the subject matter and the ability to apply that knowledge in practical situations.

Question 8: Which evaluation approach considers both price and non-price factors to select the offer that provides the greatest benefit to the government?

Best value tradeoff (Correct answer)
Sole-source justification
Lowest-price technically acceptable (LPTA)
Sealed bidding award

Correct answer: Best value tradeoff

The best value tradeoff approach allows the government to pay a price premium for superior technical or performance factors when warranted.

Question 9: Under FAR 32.112, financing payments made under a subcontract must flow from the prime contractor to the subcontractor within how many days of the prime receiving financing from the government?

10 days
7 days (Correct answer)
14 days
5 days

Correct answer: 7 days

FAR 32.112 requires prime contractors to pay financing to subcontractors within 7 days of receiving contract financing payments from the government.

Question 10: Which of the following ADR techniques results in a binding decision imposed by a neutral third party?

Mediation
Facilitation
Mini-trial
Arbitration (Correct answer)

Correct answer: Arbitration

Arbitration produces a binding award by a neutral arbitrator or panel, unlike mediation or mini-trials which result in voluntary settlements.

Question 11: Which professional attribute is most valued in contract formation within the CFCM field?

Accountability and commitment to standards (Correct answer)
Prioritizing personal convenience
Avoiding challenging situations
Working in isolation

Correct answer: Accountability and commitment to standards

Accountability and commitment to professional standards build trust and ensure consistent, high-quality practice.

Question 12: Under FAR 44.303, what is the government's right when a contractor's purchasing system is disapproved?

The ACO may assume direct control of all subcontracting activities
The ACO may withhold a percentage of payments until the system is approved (Correct answer)
The government must re-compete the contract among compliant contractors
The government may terminate the prime contract for default

Correct answer: The ACO may withhold a percentage of payments until the system is approved

FAR 44.303 authorizes the ACO to withhold a percentage of contract payments when the contractor's purchasing system is disapproved until corrective actions are implemented.

Question 13: What is the value of continuing education in source selection for CFCM professionals?

It is only needed for recertification
It replaces workplace experience
It is primarily a social activity
It keeps professionals current with evolving standards and practices (Correct answer)

Correct answer: It keeps professionals current with evolving standards and practices

Continuing education ensures professionals stay current with the latest developments, standards, and best practices in their field.

Question 14: The False Claims Act's 'qui tam' provision allows:

Contracting officers to unilaterally terminate contracts for fraud
Private citizens to file suit on behalf of the Government and share in any resulting recovery (Correct answer)
Government auditors to recover triple damages from contractors without a trial
The SBA to debar contractors who submit false small business certifications

Correct answer: Private citizens to file suit on behalf of the Government and share in any resulting recovery

The False Claims Act's qui tam provision empowers whistleblowers (relators) to sue on the Government's behalf and receive 15-30% of recovered funds.

Question 15: Under FAR 15.307, what must a contracting officer issue after discussions are concluded?

A best-and-final-offer request letter
A cure notice for offerors with unresolved deficiencies
An amendment to the solicitation extending the proposal due date
A request for final proposal revisions (FPR) establishing a common cut-off date (Correct answer)

Correct answer: A request for final proposal revisions (FPR) establishing a common cut-off date

FAR 15.307(b) requires the contracting officer to issue a request for final proposal revisions (FPR) with a common cut-off date for all offerors in the competitive range after discussions.

Question 16: Which source selection scenario is most appropriate for using the Lowest Price Technically Acceptable (LPTA) methodology?

A complex IT modernization effort with high performance risk
Development of a new weapons system with evolving requirements
Acquisition of standardized commercial janitorial supplies with well-defined specifications (Correct answer)
A research and development contract requiring innovative solutions

Correct answer: Acquisition of standardized commercial janitorial supplies with well-defined specifications

LPTA is best suited for well-defined, low-risk requirements where paying a premium for superior quality offers no meaningful benefit to the government.

Question 17: What is the PRIMARY purpose of obtaining CFCM certification in Certified Federal Contracts Manager?

To satisfy a personal achievement goal
To guarantee employment in the field
To bypass educational requirements
To demonstrate verified competency and adherence to professional standards (Correct answer)

Correct answer: To demonstrate verified competency and adherence to professional standards

Professional certification demonstrates that an individual has met established competency standards through verified assessment. It provides assurance to employers, clients, and the public that the certified professional possesses the knowledge and skills required for competent practice.

Question 18: Which FAR subpart establishes the policy that acquisition planning must begin as soon as a need is identified?

FAR Subpart 7.1 (Correct answer)
FAR Subpart 6.3
FAR Subpart 12.1
FAR Subpart 15.2

Correct answer: FAR Subpart 7.1

FAR Subpart 7.1 governs acquisition plans and requires planning to begin as early as possible in the acquisition cycle.

Question 19: What is the time limit for a contractor to appeal a contracting officer's final decision to a Board of Contract Appeals (BCA)?

30 days
90 days (Correct answer)
60 days
1 year

Correct answer: 90 days

A contractor must appeal a CO's final decision to a BCA within 90 days of receiving the decision.

Question 20: Under FAR 19.702, a prime contractor is required to submit a small business subcontracting plan when the contract is expected to:

Exceed the simplified acquisition threshold on any cost-reimbursement contract
Include any subcontractor regardless of contract value
Exceed $750,000 (or $1.5 million for construction) and subcontracting possibilities exist, unless the prime is itself a small business (Correct answer)
Exceed $5 million and the prime contractor has more than 500 employees

Correct answer: Exceed $750,000 (or $1.5 million for construction) and subcontracting possibilities exist, unless the prime is itself a small business

FAR 19.702 requires subcontracting plans from other-than-small prime contractors on contracts exceeding $750,000 ($1.5M for construction) when subcontracting opportunities exist. Small business primes are exempt. The plan must include goals for utilization of small and small disadvantaged businesses.

Question 21: What is the value of continuing education in contract formation for CFCM professionals?

It replaces workplace experience
It keeps professionals current with evolving standards and practices (Correct answer)
It is primarily a social activity
It is only needed for recertification

Correct answer: It keeps professionals current with evolving standards and practices

Continuing education ensures professionals stay current with the latest developments, standards, and best practices in their field.

Question 22: Under FAR 15.403-3, when certified cost or pricing data are not required, what information may the contracting officer still require?

Data other than certified cost or pricing data, such as information on prices at which the same or similar items have been sold (Correct answer)
Nothing—if TINA doesn't apply, no cost data can be requested
A full cost accounting system audit
An independent government appraisal of the item

Correct answer: Data other than certified cost or pricing data, such as information on prices at which the same or similar items have been sold

Even when certified cost or pricing data are not required, FAR 15.403-3 allows the CO to require data other than certified—such as sales data, catalog prices, or market information—to support price reasonableness.

Question 23: Under FAR 33.211, if a contracting officer issues a final decision on a claim over $100,000, the decision must be issued within how many days of receiving the claim?

30 days
60 days with notification of anticipated decision date required for complex claims (Correct answer)
90 days
120 days

Correct answer: 60 days with notification of anticipated decision date required for complex claims

For claims over $100,000, the CO must issue a final decision within 60 days or notify the contractor of the anticipated decision date.

Question 24: Under FAR 31.205-6, which of the following employee compensation costs is UNALLOWABLE?

Golden parachute payments triggered by change in contractor ownership (Correct answer)
Employer contributions to qualified retirement plans
Reasonable salaries for direct labor
Bonuses tied to cost reduction achievements on government contracts

Correct answer: Golden parachute payments triggered by change in contractor ownership

FAR 31.205-6(l) specifically disallows golden parachute payments and other excessive compensation tied to changes in ownership or management.

Question 25: A Source Selection Authority (SSA) who is not the contracting officer must be at what minimum level for acquisitions above the threshold specified in the SSP?

Appropriate level above the contracting officer as designated by agency procedures (Correct answer)
Program manager
Contracting Officer's Representative (COR)
Senior Executive Service (SES) member only

Correct answer: Appropriate level above the contracting officer as designated by agency procedures

FAR 15.303(a) requires the SSA to be at the appropriate level above the contracting officer as established by agency acquisition procedures.

Question 26: In Certified Federal Contracts Manager, what is the PRIMARY purpose of conducting regular safety drills and exercises?

To evaluate employee performance reviews
To ensure personnel can respond effectively in emergencies (Correct answer)
To satisfy insurance requirements only
To reduce daily workload

Correct answer: To ensure personnel can respond effectively in emergencies

Regular safety drills ensure that all personnel are prepared to respond effectively during actual emergencies. Practice builds muscle memory, identifies gaps in emergency procedures, and improves overall response times.

Question 27: What does the term 'privity of contract' mean in a federal contracting context?

The right of subcontractors to sue the government
The direct legal relationship between the government and the prime contractor (Correct answer)
The privacy protections for proprietary data
The confidentiality requirements for classified contracts

Correct answer: The direct legal relationship between the government and the prime contractor

Privity of contract refers to the direct contractual relationship between the government and the prime contractor, generally excluding subcontractors from that relationship.

Question 28: A contractor submits certified cost or pricing data that later proves to be inaccurate, incomplete, or noncurrent. What remedy does the government have under FAR 15.407-1?

Defective pricing—a price reduction equal to the overpayment plus interest (Correct answer)
Debarment of the contractor
Conversion to a firm-fixed-price contract
Termination for default

Correct answer: Defective pricing—a price reduction equal to the overpayment plus interest

Defective pricing provisions allow the government to reduce the contract price by the amount the government overpaid due to inaccurate, incomplete, or noncurrent data, plus interest.

Question 29: Which statement about past performance evaluation in source selection is CORRECT?

Past performance information from subcontractors may never be considered
An offeror with no relevant past performance is typically rated neutral, neither favorably nor unfavorably (Correct answer)
Past performance must always be the most important evaluation factor
Offerors with no relevant past performance must be rated Unsatisfactory

Correct answer: An offeror with no relevant past performance is typically rated neutral, neither favorably nor unfavorably

FAR 15.305(a)(2)(iv) states that an offeror without relevant past performance shall be rated neither favorably nor unfavorably on past performance.

Question 30: What is one of the goals of internal compliance audits?

Delaying reporting to the government.
Avoiding communication with leadership.
Identifying compliance gaps and correcting them (Correct answer)
Punishing non-compliant employees.

Correct answer: Identifying compliance gaps and correcting them

Internal compliance audits are systematic reviews designed to assess an organization's adherence to laws, regulations, and internal policies. Their primary goal is to proactively identify any areas where the organization might be falling short (compliance gaps) and then implement corrective actions to address these deficiencies. This process helps prevent future violations and strengthens the overall compliance program.

Question 31: The Competition in Contracting Act (CICA) of 1984 primarily requires agencies to:

Use lowest-price technically acceptable source selection
Obtain full and open competition when acquiring supplies and services (Correct answer)
Conduct market research before every purchase
Restrict competition to small businesses

Correct answer: Obtain full and open competition when acquiring supplies and services

CICA mandates full and open competition in federal procurements unless a specific exception applies.

Question 32: Which federal regulation primarily governs occupational safety and health requirements that contractors must meet when performing work on federal contracts?

FAR Part 45
48 CFR Part 970
FAR Part 36
29 CFR Part 1926 (Correct answer)

Correct answer: 29 CFR Part 1926

29 CFR Part 1926 contains OSHA construction safety standards that federal contractors performing construction work must comply with.

Question 33: A Women-Owned Small Business (WOSB) set-aside is authorized under FAR Subpart 19.15 for acquisitions in industries where women-owned small businesses are:

Underrepresented or substantially underrepresented, as determined by SBA research (Correct answer)
Jointly owned with a Service-Disabled Veteran
Located in a HUBZone or 8(a) certified geographic area
Registered in SAM.gov and have past performance ratings above average

Correct answer: Underrepresented or substantially underrepresented, as determined by SBA research

The WOSB Federal Contract Program at FAR Subpart 19.15 allows set-asides in NAICS codes where SBA data shows women-owned small businesses are underrepresented or substantially underrepresented in federal contracting. This is based on SBA's analysis of market participation data.

Question 34: A contractor's right to receive partial payment for completed work upon termination for convenience is governed by:

FAR 49.201 (Correct answer)
FAR 43.103
FAR 52.232-5
FAR 52.249-1

Correct answer: FAR 49.201

FAR 49.201 establishes the settlement principles for termination for convenience, including payment for completed work.

Question 35: Under 5 C.F.R. Part 2635, a Government employee who is negotiating a contract with a company and simultaneously seeking employment with that company must:

Complete the procurement before accepting any employment offer
Obtain written approval from the contracting officer's supervisor
Limit contact to only email communications until the contract is awarded
Recuse themselves from the procurement and report the employment contact to their ethics official (Correct answer)

Correct answer: Recuse themselves from the procurement and report the employment contact to their ethics official

Seeking employment with a contractor on a matter you are handling is a disqualifying financial interest requiring immediate recusal and ethics official notification.

Question 36: What is the PRIMARY purpose of obtaining CFCM certification in Certified Federal Contracts Manager?

To satisfy a personal achievement goal
To demonstrate verified competency and adherence to professional standards (Correct answer)
To guarantee employment in the field
To bypass educational requirements

Correct answer: To demonstrate verified competency and adherence to professional standards

Question 37: A contractor's compliance program under FAR 52.203-13 must include all of the following EXCEPT:

Mandatory quarterly ethics certifications signed by all employees (Correct answer)
Periodic reviews of company business practices and internal controls
Training for all employees on the code of ethics
An anonymous employee hotline for reporting suspected violations

Correct answer: Mandatory quarterly ethics certifications signed by all employees

FAR 52.203-13 requires a hotline, internal reviews, and training, but does not mandate quarterly ethics certifications signed by all employees.

Question 38: When a contractor makes a voluntary change in its cost accounting practice on a CAS-covered contract, what is the contractor required to submit to the government?

A cost impact proposal showing the estimated increase or decrease in cost to the government (Correct answer)
A revised Disclosure Statement only, with no financial analysis required
Written notification within 15 days followed by a cure notice response
A request for equitable adjustment (REA) to recover increased costs

Correct answer: A cost impact proposal showing the estimated increase or decrease in cost to the government

Under CAS 9903.202-3, when a contractor makes a change in cost accounting practice, it must submit a cost impact proposal to the contracting officer. This proposal shows the estimated increase or decrease in costs for each affected CAS-covered contract. If the change increases costs, the government may require the contractor to absorb them; if it decreases costs, the government benefits.

Question 39: What term describes a deficiency in a proposal that is so significant it indicates a fundamental misunderstanding of the requirement and cannot be corrected without a major rewrite?

Significant weakness
Deficiency (Correct answer)
Minor irregularity
Weakness

Correct answer: Deficiency

FAR 15.001 defines a deficiency as a material failure to meet a government requirement or a combination of significant weaknesses that increases performance risk.

Question 40: Under FAR 28.306, when a contracting officer determines that a contractor's insurance coverage is inadequate, the CO may:

Assume the risk on behalf of the government
Terminate the contract for default immediately
Require the contractor to obtain additional coverage before work continues (Correct answer)
Convert the contract to a cost-plus arrangement

Correct answer: Require the contractor to obtain additional coverage before work continues

FAR 28.306 authorizes contracting officers to require contractors to obtain and maintain adequate insurance coverage as a condition of continued performance.

Question 41: Under FAR 15.306(b), what is the purpose of 'clarifications' in a competitive acquisition?

To permit late proposals to be considered
To resolve minor or clerical errors without opening discussions (Correct answer)
To allow offerors to revise their entire proposals
To negotiate price reductions before award

Correct answer: To resolve minor or clerical errors without opening discussions

Clarifications are limited exchanges used to resolve minor ambiguities, clerical errors, or apparent clerical mistakes without opening formal discussions.

Question 42: Under FAR 3.502-2, a contractor employee reports that their supervisor directed them to submit a fraudulent invoice. The employee's best protected course of action is to:

File a qui tam lawsuit under the False Claims Act immediately
Report directly to the contracting officer on the contract
Report through the contractor's internal ethics hotline and, if unresolved, to the agency Inspector General (Correct answer)
Refuse to submit the invoice and resign immediately

Correct answer: Report through the contractor's internal ethics hotline and, if unresolved, to the agency Inspector General

FAR 52.203-13 requires contractors to have internal reporting mechanisms, and employees should use these first; the agency IG is also a protected reporting channel under whistleblower statutes.

Question 43: A CFCM professional discovers a conflict of interest in a current assignment. What is the MOST ethical course of action?

Continue the assignment but document the conflict later
Handle it privately without informing stakeholders
Disclose the conflict immediately and recuse if necessary (Correct answer)
Ignore it if no one else has noticed

Correct answer: Disclose the conflict immediately and recuse if necessary

Ethical standards require immediate disclosure of conflicts of interest. Transparency protects both the professional's integrity and the stakeholders' interests. Recusal may be necessary to maintain objectivity.

Question 44: Under FAR 16.505, when placing task orders under a multiple award IDIQ contract, the ordering contracting officer must provide each awardee a:

Right to protest order awards to the GAO regardless of value
Full and open competition opportunity regardless of order value
Minimum guaranteed task order value equal to their share of the contract
Fair opportunity to be considered for each order above $3,500 (Correct answer)

Correct answer: Fair opportunity to be considered for each order above $3,500

FAR 16.505(b)(1) requires that each awardee on a multiple award contract receive a fair opportunity to be considered for task or delivery orders exceeding $3,500.

Question 45: Under FAR 45.402, which party generally holds title to property acquired by a contractor using funds from a cost-reimbursement contract?

The contractor, since it made the purchase decision and negotiated the price
The government, as the entity that ultimately funded the acquisition (Correct answer)
Title is shared equally between the contractor and the government
The subcontractor that physically uses the property in performance

Correct answer: The government, as the entity that ultimately funded the acquisition

Under FAR 45.402, title to property acquired by a contractor with government funds (contractor-acquired property on cost-reimbursement contracts) vests in the government. Even though the contractor made the purchase, the government funded it and retains ownership, requiring the contractor to manage it as government property.

Question 46: Which professional attribute is most valued in terminations within the CFCM field?

Avoiding challenging situations
Working in isolation
Prioritizing personal convenience
Accountability and commitment to standards (Correct answer)

Correct answer: Accountability and commitment to standards

Accountability and commitment to professional standards build trust and ensure consistent, high-quality practice.

Question 47: What is the value of continuing education in pricing and negotiation for CFCM professionals?

It keeps professionals current with evolving standards and practices (Correct answer)
It replaces workplace experience
It is primarily a social activity
It is only needed for recertification

Correct answer: It keeps professionals current with evolving standards and practices

Continuing education ensures professionals stay current with the latest developments, standards, and best practices in their field.

Question 48: Which FAR provision must be included in solicitations to notify offerors that the government intends to evaluate proposals and award without discussions?

FAR 52.214-10
FAR 52.212-1
FAR 52.216-1
FAR 52.215-1 (Correct answer)

Correct answer: FAR 52.215-1

FAR 52.215-1 (Instructions to Offerors—Competitive Acquisition) notifies offerors that the government may award based on initial proposals without conducting discussions.

Question 49: Which clause requires contractors to display the hotline poster for reporting fraud, waste, and abuse on contracts exceeding the applicable threshold?

FAR 52.203-7 (Anti-Kickback Procedures)
FAR 52.203-14 (Display of Inspector General Hotline Poster) (Correct answer)
FAR 52.203-12 (Limitation on Payments to Influence Certain Federal Transactions)
FAR 52.203-6 (Restrictions on Subcontractor Sales)

Correct answer: FAR 52.203-14 (Display of Inspector General Hotline Poster)

FAR 52.203-14 requires contractors to display the agency IG hotline poster in a prominent location for contracts exceeding $5.5 million (as adjusted).

Question 50: In source selection, what does 'auctioning' mean and why is it prohibited?

Conducting reverse auctions for commercial items; prohibited above the SAT
Publicly posting prices to all offerors; prohibited to prevent collusion
Disclosing technical scores before award; prohibited to protect sensitive data
Revealing an offeror's price to competitors to obtain a lower price; prohibited because it undermines integrity of competition (Correct answer)

Correct answer: Revealing an offeror's price to competitors to obtain a lower price; prohibited because it undermines integrity of competition

Auctioning—disclosing one offeror's price so another can undercut it—is prohibited by FAR 15.306(e) because it corrupts fair competition.

Question 51: When conducting a pre-award compliance review, the contracting officer should verify SAM.gov exclusions because:

SAM exclusions automatically trigger a mandatory price audit
Excluded parties must re-register in SAM before any negotiations begin
SAM.gov also contains the contractor's financial statements for review
Awards to excluded parties are generally prohibited and may be unenforceable (Correct answer)

Correct answer: Awards to excluded parties are generally prohibited and may be unenforceable

FAR 9.405 prohibits contracting officers from awarding contracts to parties listed as excluded in SAM, and such awards may be void or unenforceable.

Question 52: How can disputes during contract performance be minimized?

Involve legal counsel in every update.
Rely solely on verbal agreements.
Maintain clear records and communication (Correct answer)
Avoid documenting the issues.

Correct answer: Maintain clear records and communication

Disputes during contract performance can be minimized by maintaining clear records and open communication between all parties. Thorough documentation of all interactions, decisions, and performance issues provides an objective basis for discussion and resolution. Proactive and transparent communication helps address concerns before they escalate into formal disputes, fostering a collaborative environment.

Question 53: What is the most important professional competency for CFCM certification in source selection?

Ability to work alone exclusively
Memorization of all reference materials
Deep knowledge combined with practical application skills (Correct answer)
Speed of task completion

Correct answer: Deep knowledge combined with practical application skills

Professional competency requires both deep knowledge of the subject matter and the ability to apply that knowledge in practical situations.

Question 54: What is 'cost realism analysis' and when is it typically required?

An analysis of subcontractor prices; required only when subcontracts exceed $1 million
An evaluation to determine whether proposed costs reflect a clear understanding of the work; typically required for cost-reimbursement contracts (Correct answer)
A comparison of proposed prices to market indices; required for all negotiated contracts
A review of an offeror's accounting system; required before any cost-type award

Correct answer: An evaluation to determine whether proposed costs reflect a clear understanding of the work; typically required for cost-reimbursement contracts

Cost realism analysis, required by FAR 15.404-1(d) for cost-reimbursement contracts, assesses whether proposed costs are realistic and consistent with the technical proposal.

Question 55: When may a contracting officer conduct discussions with offerors in the competitive range?

Only if the acquisition exceeds the simplified acquisition threshold by tenfold
Before any proposals have been evaluated
After establishment of the competitive range, to allow offerors to address deficiencies and weaknesses (Correct answer)
Only after all offerors have submitted final proposal revisions

Correct answer: After establishment of the competitive range, to allow offerors to address deficiencies and weaknesses

FAR 15.306(d) authorizes discussions with offerors in the competitive range to address deficiencies, significant weaknesses, and other aspects of proposals.

Question 56: The 'loss ratio' adjustment in termination settlements under FAR 49.203 is applied when:

Progress payments exceed 80% of costs
The government terminates more than 50% of the work
The contractor has multiple subcontracts
The contractor would have incurred a loss on the contract if fully performed (Correct answer)

Correct answer: The contractor would have incurred a loss on the contract if fully performed

FAR 49.203 requires a loss adjustment to prevent a contractor from recovering more under a termination than it would have earned completing a loss contract.

Question 57: A solicitation requires a 'bid bond.' What is the purpose of a bid bond in federal acquisitions?

It protects subcontractors from nonpayment by the prime contractor
It guarantees the contractor will complete the work on time
It covers the government's costs if the contractor files for bankruptcy
It ensures the contractor will enter into a contract and provide required bonds if selected (Correct answer)

Correct answer: It ensures the contractor will enter into a contract and provide required bonds if selected

A bid bond guarantees that if the bidder is selected, it will enter into the contract and furnish any required performance and payment bonds.

Question 58: FAR 52.222-26 implements which law requiring contractors to take affirmative action in employment practices?

Service Contract Labor Standards
Executive Order 11246 (Correct answer)
Walsh-Healey Public Contracts Act
Davis-Bacon Act

Correct answer: Executive Order 11246

FAR 52.222-26 implements Executive Order 11246, requiring equal opportunity and affirmative action by federal contractors.

Question 59: What is required when an agency uses numerical scoring to evaluate proposals under FAR Part 15?

Numerical scoring is the only permitted method under FAR Part 15
Numerical scoring requires OMB approval before use
Numerical scores alone are sufficient to document the source selection decision
Numerical scores may be used but must be supported by narrative rationale (Correct answer)

Correct answer: Numerical scores may be used but must be supported by narrative rationale

Courts and the GAO consistently hold that numerical scores without supporting narrative fail to provide a rational basis for the source selection decision.

Question 60: Which document establishes the framework for DoD system safety requirements on major defense acquisition programs?

DoDI 5000.02
DFARS 252.223-7001
MIL-STD-882 (Correct answer)
FAR Part 46

Correct answer: MIL-STD-882

MIL-STD-882 (System Safety) establishes requirements and guidance for developing and implementing a system safety program on defense acquisition programs.

Question 61: Which statute prohibits federal contractors from discriminating in employment based on race, color, religion, sex, or national origin, and applies to contracts over $10,000?

Service Contract Act
Davis-Bacon Act
Walsh-Healey Act
Executive Order 11246 (Correct answer)

Correct answer: Executive Order 11246

Executive Order 11246 requires nondiscrimination and affirmative action in employment for federal contractors and subcontractors meeting the $10,000 threshold.

Question 62: A Brand Name or Equal purchase description must identify the salient characteristics of the brand name item so that:

Offerors can propose equal products meeting those characteristics (Correct answer)
The contracting officer can sole-source the brand name item
The acquisition can bypass competitive procedures
Only the named brand supplier can respond

Correct answer: Offerors can propose equal products meeting those characteristics

FAR 11.104 requires brand name or equal descriptions to list salient physical, functional, or performance characteristics so that competitors can offer equal products.

Question 63: A contracting officer must perform a price realism analysis when:

All acquisitions exceed the simplified acquisition threshold
The offeror is a large business with revenues over $10 million
A fixed-price contract is awarded and the solicitation requires it, or when unusually low prices could signal risk (Correct answer)
Only when cost-reimbursement contracts are contemplated

Correct answer: A fixed-price contract is awarded and the solicitation requires it, or when unusually low prices could signal risk

Price realism analysis on fixed-price contracts is discretionary but required when the solicitation specifies it, typically to identify unrealistically low prices that indicate risk.

Question 64: Under FAR Part 15, what is the primary purpose of a Source Selection Evaluation Board (SSEB)?

To negotiate prices with all offerors
To evaluate proposals against stated evaluation factors and document findings (Correct answer)
To draft the solicitation's statement of work
To approve the final contract award decision

Correct answer: To evaluate proposals against stated evaluation factors and document findings

The SSEB evaluates proposals against the solicitation's evaluation factors and documents its findings for the Source Selection Authority.

Question 65: Under FAR 3.101-1, what is the foundational standard for contractor and Government conduct in federal contracting?

All contract disputes must be resolved through arbitration
Contractors and Government employees must conduct business honestly and impartially, avoiding any appearance of impropriety (Correct answer)
Only contracting officers have ethical obligations under federal law
Contracts must maximize profit for both parties

Correct answer: Contractors and Government employees must conduct business honestly and impartially, avoiding any appearance of impropriety

FAR 3.101-1 establishes that both Government and contractor personnel must deal fairly, honestly, and avoid any appearance of impropriety.

Question 66: Under the Competition in Contracting Act (CICA), what is the minimum number of sources that must be solicited in a full and open competition?

At least three sources unless a sole-source justification exists
No minimum; the solicitation must be publicly posted so all responsible sources can compete (Correct answer)
At least two responsible sources
Five sources for acquisitions above $250,000

Correct answer: No minimum; the solicitation must be publicly posted so all responsible sources can compete

CICA and FAR 6.101 require full and open competition by publicizing requirements so all responsible sources may submit offers, with no prescribed minimum number.

Question 67: A contractor proposes a cost of $500K for subcontracted effort. What is the contracting officer's responsibility regarding this subcontract cost under FAR 15.404-3?

Ensure the prime contractor has performed adequate cost or price analysis on the subcontract (Correct answer)
Rely entirely on the prime contractor's assessment of subcontract reasonableness
Require a separate DCAA audit of each subcontractor
Accept the cost since subcontracts are not subject to government review

Correct answer: Ensure the prime contractor has performed adequate cost or price analysis on the subcontract

FAR 15.404-3 requires the contracting officer to ensure that the prime contractor has performed an adequate cost or price analysis of proposed subcontract costs.

Question 68: Which FAR clause gives the government the right to terminate a contract for default when the contractor fails to make progress endangering performance?

FAR 52.249-1 (Termination for Convenience of the Government)
FAR 52.249-14 (Excusable Delays)
FAR 52.212-4 (Contract Terms and Conditions - Commercial Products)
FAR 52.249-8 (Default - Fixed-Price Supply and Service) (Correct answer)

Correct answer: FAR 52.249-8 (Default - Fixed-Price Supply and Service)

FAR 52.249-8 authorizes termination for default, including situations where the contractor fails to make progress so as to endanger performance.

Question 69: Under the Truth in Negotiations Act (TINA), now codified at 41 U.S.C. 2306a, when must a contractor submit certified cost or pricing data?

Whenever the contracting officer requests it
For all negotiated contracts regardless of dollar value
Only for cost-reimbursement contracts over $2 million
When the contract is expected to exceed the TINA threshold and no exception applies (Correct answer)

Correct answer: When the contract is expected to exceed the TINA threshold and no exception applies

Certified cost or pricing data is required when a negotiated contract exceeds the threshold (currently $2 million) and no exception (adequate price competition, commercial items, etc.) applies.

Question 70: During source selection, which action by an evaluator would constitute an improper 'technical transfusion'?

Discussing proposal strengths at an SSEB consensus meeting
Sharing evaluation criteria among SSEB members
Disclosing a higher-rated offeror's technical approach to a lower-rated competitor during discussions (Correct answer)
Forwarding evaluation worksheets to the SSA for review

Correct answer: Disclosing a higher-rated offeror's technical approach to a lower-rated competitor during discussions

Technical transfusion—revealing one offeror's technical solution to another during discussions—is prohibited by FAR 15.306(e) because it misappropriates proprietary information.

Question 71: Which regulatory mechanism requires contractors with contracts over $5.5 million and a performance period of 120+ days to maintain a written code of business ethics?

DFARS 252.203-7001, Prohibition on Persons Convicted of Fraud
FAR 52.215-2, Audit and Records—Negotiation
FAR 52.209-5, Certification Regarding Responsibility Matters
FAR 52.203-13, Contractor Code of Business Ethics and Conduct (Correct answer)

Correct answer: FAR 52.203-13, Contractor Code of Business Ethics and Conduct

FAR 52.203-13 mandates that qualifying contractors maintain a written ethics code, employee training, and an internal reporting mechanism (hotline).

Question 72: What is the value of continuing education in far regulations for CFCM professionals?

It is only needed for recertification
It is primarily a social activity
It replaces workplace experience
It keeps professionals current with evolving standards and practices (Correct answer)

Correct answer: It keeps professionals current with evolving standards and practices

Continuing education ensures professionals stay current with the latest developments, standards, and best practices in their field.

Question 73: What does the term 'should-cost review' mean in federal contracting under FAR 15.407-4?

An audit performed by DCAA on historical costs
A government team analysis of a contractor's operations to identify potential cost efficiencies and negotiate a better price (Correct answer)
A post-award review of actual costs incurred
A price reasonableness determination using market data

Correct answer: A government team analysis of a contractor's operations to identify potential cost efficiencies and negotiate a better price

A should-cost review is a government analysis of a contractor's operations and management to identify inefficiencies and negotiate a realistic, lower price.

Question 74: When the government makes an erroneous overpayment to a contractor, the Debt Collection Improvement Act requires the government to:

Negotiate a settlement not exceeding 50% of the overpayment
Offset future payments without notifying the contractor
Demand repayment and charge interest from the date of the overpayment (Correct answer)
Write off amounts under $100,000 as de minimis errors

Correct answer: Demand repayment and charge interest from the date of the overpayment

The Debt Collection Improvement Act requires the government to demand repayment of erroneous overpayments and to assess interest from the date the overpayment was made.

Question 75: Which statute specifically criminalizes a Government employee's receipt of a gratuity from a contractor with intent to influence an official act?

18 U.S.C. § 201 (Bribery of Public Officials) (Correct answer)
The Truth in Negotiations Act
The Procurement Integrity Act
The False Claims Act

Correct answer: 18 U.S.C. § 201 (Bribery of Public Officials)

18 U.S.C. § 201 prohibits bribery of public officials, including the giving or receiving of gratuities intended to influence official acts.

Question 76: Under the Contract Disputes Act (CDA), if a Contracting Officer fails to issue a final decision within the required timeframe on a claim exceeding $100,000, the contractor may:

Terminate the contract for cause
File a civil suit in district court
Deem the claim denied and appeal to the Board or Court of Federal Claims (Correct answer)
Request GAO intervention

Correct answer: Deem the claim denied and appeal to the Board or Court of Federal Claims

FAR 33.211 permits the contractor to treat the CO's failure to decide within the statutory period as a deemed denial and appeal accordingly.

Question 77: A contracting officer's representative (COR) accepts a contractor's lunch invitation valued at $15. Under the Standards of Ethical Conduct (5 C.F.R. Part 2635), this is:

Prohibited because the COR has oversight responsibilities for the contractor (Correct answer)
Permitted only with supervisor written approval
Prohibited as any meal constitutes a gratuity
Generally permitted as a non-cash item under $20

Correct answer: Prohibited because the COR has oversight responsibilities for the contractor

Even though the gift is under $20, a COR with oversight authority over a contractor has a conflict of interest that makes accepting any gift from that contractor prohibited.

Question 78: What role does collaboration play in source selection for CFCM professionals?

It is only needed in emergencies
It slows down work unnecessarily
It reduces individual accountability
It enhances outcomes through diverse perspectives and shared expertise (Correct answer)

Correct answer: It enhances outcomes through diverse perspectives and shared expertise

Collaboration leverages diverse perspectives and combined expertise to achieve better outcomes than any individual could alone.

Question 79: Under FAR 15.403-3, when is an offeror required to provide information other than certified cost or pricing data?

Whenever the contracting officer suspects fraud
When the contract exceeds $10 million regardless of competition
Only when there is no competition for the contract
When the contract is below the TINA threshold but the contracting officer needs it to determine price reasonableness (Correct answer)

Correct answer: When the contract is below the TINA threshold but the contracting officer needs it to determine price reasonableness

When certified cost or pricing data is not required (e.g., below threshold or exception applies), the contracting officer may still request other data sufficient to determine price reasonableness.

Question 80: Which approach best demonstrates mastery of terminations in CFCM practice?

Avoiding complex scenarios
Applying principles to novel situations with sound judgment (Correct answer)
Following procedures without understanding
Relying entirely on technology

Correct answer: Applying principles to novel situations with sound judgment

True mastery involves understanding underlying principles well enough to apply them to new and unfamiliar situations with professional judgment.

Question 81: Which approach best demonstrates mastery of source selection in CFCM practice?

Following procedures without understanding
Avoiding complex scenarios
Applying principles to novel situations with sound judgment (Correct answer)
Relying entirely on technology

Correct answer: Applying principles to novel situations with sound judgment

True mastery involves understanding underlying principles well enough to apply them to new and unfamiliar situations with professional judgment.

Question 82: Why is contractor performance evaluation required?

To reduce contract duration.
To support future acquisition decisions (Correct answer)
To disqualify all vendors permanently.
To punish underperforming contractors.

Correct answer: To support future acquisition decisions

Contractor performance evaluation is required to support future acquisition decisions. These evaluations, often recorded in systems like CPARS (Contractor Performance Assessment Reporting System), provide valuable historical data on a contractor's past performance. This information is a critical factor in source selection for future procurements, helping the government award contracts to responsible and high-performing vendors.

Question 83: The Trade Agreements Act (TAA) restricts the purchase of end products from non-designated countries. Which agency administers the list of designated countries eligible for TAA coverage?

Office of the United States Trade Representative (Correct answer)
General Services Administration
Department of Commerce
Department of State

Correct answer: Office of the United States Trade Representative

The USTR administers trade agreements that determine which countries qualify as designated countries under the TAA for federal procurement.

Question 84: What does 'synopsize' mean in the context of federal contract formation, and when is it required?

To provide a price summary to unsuccessful offerors after award
To summarize award results in the contract file
To publish a notice of a proposed contract action in SAM.gov so that all interested sources may respond (Correct answer)
To consolidate multiple requirements into a single solicitation

Correct answer: To publish a notice of a proposed contract action in SAM.gov so that all interested sources may respond

Synopsizing means publishing advance notice of contract opportunities in SAM.gov (formerly FBO) as required by FAR Subpart 5.2, generally for acquisitions expected to exceed $25,000.

Question 85: Under the Prompt Payment Act, what is the standard payment due date for construction contracts if no other date is specified?

45 days after invoice receipt
30 days after invoice receipt (Correct answer)
14 days after invoice receipt
21 days after invoice receipt

Correct answer: 30 days after invoice receipt

The Prompt Payment Act requires payment within 14 days for meat/perishables, but 30 days is the standard for construction contracts when no other period is specified.

Question 86: The Small Business Act set-aside threshold requires that acquisitions with an anticipated value exceeding $10,000 but not exceeding $250,000 be:

Competed using full and open competition
Set aside for HUBZone small businesses only
Set aside for 8(a) firms exclusively
Reserved exclusively for small business concerns (Correct answer)

Correct answer: Reserved exclusively for small business concerns

FAR 19.502-2(a) mandates that acquisitions between $10,000 and $250,000 are automatically set aside for small business concerns when there is a reasonable expectation of two or more small business offers.

Question 87: Which federal law specifically prohibits offering gratuities to government officials in connection with a contract award or performance?

Federal Acquisition Streamlining Act
Procurement Integrity Act
FAR 3.202 (Gratuities clause enforcement)
18 U.S.C. § 201 (Federal Bribery Statute) (Correct answer)

Correct answer: 18 U.S.C. § 201 (Federal Bribery Statute)

18 U.S.C. § 201 is the primary federal statute prohibiting bribery of public officials, including offering anything of value to influence official acts related to contracts.

Question 88: In a cost-reimbursement contract negotiation, the government negotiator establishes an independent government cost estimate (IGCE) of $800K. The contractor's initial proposal is $1.1M. What is the negotiator's most appropriate first step?

Accept the proposal since it is within 10% of IGCE
Issue a unilateral contract at the IGCE amount
Reject the proposal and resolicit
Request field pricing support and identify specific cost elements to challenge (Correct answer)

Correct answer: Request field pricing support and identify specific cost elements to challenge

The negotiator should obtain field pricing support (e.g., DCAA audit) and build a government position by identifying specific cost elements that appear unreasonable before negotiating.

Question 89: Which doctrine allows the government to recover costs when a contractor submits false claims under federal contracts?

Doctrine of Substantial Performance
False Claims Act (31 U.S.C. § 3729) (Correct answer)
Limitation of Funds clause
Christian doctrine

Correct answer: False Claims Act (31 U.S.C. § 3729)

The False Claims Act imposes civil penalties and treble damages on those who knowingly submit false claims for payment to the government.

Question 90: A 'partial termination' under FAR 49.208 refers to termination of:

The first phase of a multiphase contract
Cancellation of option periods only
A portion of the contract work or deliverables, with the remainder continuing (Correct answer)
Termination of one contractor in a joint venture

Correct answer: A portion of the contract work or deliverables, with the remainder continuing

A partial termination cancels only a portion of the contract scope while the unterminated portion continues performance.

Question 91: Which of the following contractors is EXEMPT from Cost Accounting Standards (CAS) requirements?

A non-profit research university with $60 million in federal grants
A small business concern as defined under the Small Business Act (Correct answer)
A large defense prime contractor with $300 million in annual government sales
A foreign subsidiary of a U.S. parent company with CAS-covered contracts

Correct answer: A small business concern as defined under the Small Business Act

Small business concerns are explicitly exempt from CAS requirements under 48 CFR 9903.201-1. This exemption recognizes that the administrative burden of CAS compliance would be disproportionate for small businesses. Other exemptions include contracts below the CAS threshold and firm-fixed-price contracts awarded based on adequate price competition.

Question 92: Which performance standard is MOST appropriate when the government cannot define precise requirements but needs flexibility in how outcomes are achieved?

Firm-fixed-price LOE contract
Time-and-materials contract with mandatory hours
Performance work statement (PWS) with measurable outcomes (Correct answer)
Design specification with detailed SOW

Correct answer: Performance work statement (PWS) with measurable outcomes

A Performance Work Statement defines required outcomes and measurable standards rather than prescribing methods, giving contractors flexibility while ensuring accountability.

Question 93: Which of the following best represents a conflict of interest?

Hiring based on qualifications only.
Transparent communication of performance.
Awarding a contract to a family member without disclosure (Correct answer)
Using unbiased third-party evaluations.

Correct answer: Awarding a contract to a family member without disclosure

A conflict of interest arises when an individual's personal interests, such as family relationships, could improperly influence their professional judgment or actions. Awarding a contract to a family member without proper disclosure creates a situation where personal gain might override the objective selection of the best contractor. This undermines fairness, transparency, and the integrity of the contracting process.

Question 94: A prime contractor on a cost-reimbursement contract proposes to subcontract 70% of the work. Which FAR clause is most directly applicable to this situation?

FAR 52.209-6, Protecting the Government's Interest When Subcontracting
FAR 52.244-2, Subcontracts (Correct answer)
FAR 52.244-6, Subcontracts for Commercial Products
FAR 52.219-14, Limitations on Subcontracting

Correct answer: FAR 52.244-2, Subcontracts

FAR 52.244-2 requires consent to subcontract on cost-reimbursement contracts and governs the prime contractor's subcontracting obligations.

Question 95: Which type of contract places the maximum cost risk on the contractor?

Firm-Fixed-Price (FFP) (Correct answer)
Cost-Plus-Fixed-Fee (CPFF)
Time-and-Materials (T&M)
Cost-Plus-Incentive-Fee (CPIF)

Correct answer: Firm-Fixed-Price (FFP)

Under a Firm-Fixed-Price contract, the contractor bears all cost risk because the price is set at award and does not change regardless of actual costs incurred.

Question 96: A CFCM who also serves as NCMA chapter president learns that a member has submitted a fraudulent small business certification on a set-aside contract. The CFCM's ethical obligation is to:

Counsel the member privately and allow them to self-report within 30 days
Address the matter solely through the NCMA's internal disciplinary process
Report the credible evidence of fraud to the appropriate Government authority (OIG or SBA OIG) regardless of the professional relationship (Correct answer)
Refer the matter only to the NCMA Ethics Committee without involving Government agencies

Correct answer: Report the credible evidence of fraud to the appropriate Government authority (OIG or SBA OIG) regardless of the professional relationship

Fraudulent set-aside certifications are federal crimes; the CFCM's duty to uphold the law supersedes professional relationships, and reporting to the appropriate Government authority is required.

Question 97: What role does collaboration play in pricing and negotiation for CFCM professionals?

It enhances outcomes through diverse perspectives and shared expertise (Correct answer)
It reduces individual accountability
It slows down work unnecessarily
It is only needed in emergencies

Correct answer: It enhances outcomes through diverse perspectives and shared expertise

Collaboration leverages diverse perspectives and combined expertise to achieve better outcomes than any individual could alone.

Question 98: Under FAR 52.222-26, the Equal Opportunity clause is required in contracts exceeding what threshold?

$150,000
$2,500
$25,000
$10,000 (Correct answer)

Correct answer: $10,000

FAR 52.222-26 requires the Equal Opportunity clause in contracts and subcontracts exceeding $10,000.

Question 99: Under the Competition in Contracting Act (CICA), an interested party who wishes to protest the award of a federal contract to GAO must generally file within how many calendar days of the date the protesting party knew or should have known of the basis for protest?

30 days
10 days
7 days
15 days (Correct answer)

Correct answer: 15 days

GAO Bid Protest Regulations (4 C.F.R. § 21.2) require protests to be filed no later than 10 calendar days after the basis for protest is known, except protests challenging solicitation terms which must be filed before bid opening.

Question 100: Which professional attribute is most valued in source selection within the CFCM field?

Prioritizing personal convenience
Accountability and commitment to standards (Correct answer)
Working in isolation
Avoiding challenging situations

Correct answer: Accountability and commitment to standards

Accountability and commitment to professional standards build trust and ensure consistent, high-quality practice.

Question 101: In CFCM practice, what is the best approach to quality improvement in dispute resolution?

Copy what other organizations do without analysis
Wait for problems to occur before acting
Make changes without measuring results
Use data-driven methods with measurable outcomes (Correct answer)

Correct answer: Use data-driven methods with measurable outcomes

Data-driven quality improvement with measurable outcomes ensures that changes actually produce the intended improvements and can be verified.

Question 102: Which cost accounting standard (CAS) specifically addresses the allocation of business unit general and administrative (G&A) expenses to final cost objectives?

CAS 402
CAS 410 (Correct answer)
CAS 418
CAS 403

Correct answer: CAS 410

CAS 410 requires that G&A expenses be allocated to final cost objectives using a base that represents the total activity of the business unit.

Question 103: Which of the following is a characteristic unique to Cost-Plus-Award-Fee (CPAF) contracts compared to other cost-reimbursement types?

The fee amount is fixed at contract award and cannot change
The award fee determination by the government is not subject to the Disputes clause (Correct answer)
The contractor bears cost risk above the estimated cost
Award fee ratings must be reviewed by GAO upon contractor request

Correct answer: The award fee determination by the government is not subject to the Disputes clause

FAR 16.405-2 states that award fee determinations are made unilaterally by the government and are not subject to the Disputes clause, making them final and not appealable.

Question 104: What happens during contract closeout?

New terms are added to the existing contract.
All compliance reports are shredded.
Final performance is evaluated and files are closed (Correct answer)
The contract is extended automatically.

Correct answer: Final performance is evaluated and files are closed

During contract closeout, the final performance is evaluated, all administrative actions are completed, and contract files are officially closed. This includes verifying all deliverables have been received, final payments have been made, and any disputes are resolved. Proper closeout ensures that all contractual obligations are met and records are archived according to regulations.

Question 105: What is a 'significant weakness' in proposal evaluation under FAR 15.001?

A weakness identified after competitive range determination
Any weakness that reduces the offeror's score below the median
A flaw that appreciably increases the risk of unsuccessful contract performance (Correct answer)
A weakness cited in more than one evaluation factor

Correct answer: A flaw that appreciably increases the risk of unsuccessful contract performance

FAR 15.001 defines a significant weakness as a flaw that appreciably increases the risk of unsuccessful contract performance.

Question 106: Under FAR 1.602-1, which official has the authority to enter into, administer, and terminate contracts on behalf of the government?

Agency Head
Program Manager
Contracting Officer (Correct answer)
Contracting Officer's Representative

Correct answer: Contracting Officer

Only Contracting Officers, appointed by warrant, have the legal authority to bind the government to a contract.

Question 107: Which evaluation approach requires the government to select the lowest-priced technically acceptable offer rather than conducting a tradeoff?

Price Realism Analysis
Lowest Price Technically Acceptable (LPTA) (Correct answer)
Competitive Range Elimination
Best-value continuum tradeoff

Correct answer: Lowest Price Technically Acceptable (LPTA)

LPTA source selection, authorized by FAR 15.101-2, awards to the lowest-priced offeror whose proposal meets all technical acceptability standards.

Question 108: What is the purpose of a 'pre-solicitation notice' in the source selection process?

To notify Congress of a planned acquisition
To award an advance agreement for preliminary design work
To publicize an upcoming procurement so potential offerors can prepare and the government can conduct market research (Correct answer)
To satisfy the requirement for a Justification and Approval (J&A)

Correct answer: To publicize an upcoming procurement so potential offerors can prepare and the government can conduct market research

Pre-solicitation notices posted on SAM.gov inform industry of upcoming requirements, enabling market research and giving potential offerors time to form teams and prepare.

Question 109: What is the competitive range in a negotiated procurement?

Offerors whose technical scores exceed 70 on a 100-point scale
All responsible offerors who submitted timely proposals
All offerors whose prices are within 10% of the lowest offer
The set of offerors with the most highly rated proposals with a reasonable chance of being selected for award (Correct answer)

Correct answer: The set of offerors with the most highly rated proposals with a reasonable chance of being selected for award

FAR 15.306(c) defines the competitive range as offerors whose proposals are most highly rated and have a reasonable chance of being selected for award.

Question 110: In the context of source selection, what does 'technical leveling' mean and why is it prohibited?

Normalizing technical scores across evaluators; prohibited to preserve individual judgment
Adjusting prices so all offerors are at the same level; prohibited to ensure fair competition
Removing technical factors from evaluation; prohibited without agency approval
Helping offerors raise their technical proposals to a higher level through successive rounds of discussions; prohibited because it gives unfair advantage (Correct answer)

Correct answer: Helping offerors raise their technical proposals to a higher level through successive rounds of discussions; prohibited because it gives unfair advantage

Technical leveling—coaching offerors to bring weak proposals up to the level of better proposals—is prohibited by FAR 15.306(e) because it disadvantages offerors who submitted superior initial proposals.

Question 111: A contracting officer receives a proposal with a total price of $2.5M. Under what threshold does FAR 15.403-4 generally require certified cost or pricing data?

$750,000
$2 million (Correct answer)
$500,000
$5 million

Correct answer: $2 million

FAR 15.403-4 requires certified cost or pricing data when the contract action exceeds $2 million (the current Truth in Negotiations Act threshold).

Question 112: A contractor's employee learns that a competitor's bid amount was improperly disclosed before award. Under NCMA's Code of Ethics, what should the contract manager do?

Keep the information confidential but refrain from using it
Notify only the company's legal department without reporting to the Government
Immediately report the disclosure to appropriate authorities and refuse to use the information (Correct answer)
Use the information to lower their own bid and win the contract

Correct answer: Immediately report the disclosure to appropriate authorities and refuse to use the information

NCMA's Code of Ethics requires contract managers to report improper disclosures and refuse to benefit from them.

Question 113: A contract manager discovers that their company submitted a certified cost or pricing data package containing a known error that overstated costs. The most appropriate immediate action is to:

Seek legal counsel before taking any action for at least 90 days
Correct the error internally without notifying the Government
Disclose the defective data to the contracting officer and initiate a price adjustment (Correct answer)
Wait until contract closeout to address the discrepancy

Correct answer: Disclose the defective data to the contracting officer and initiate a price adjustment

The Truth in Negotiations Act (TINA) and FAR 15.408 require disclosure of defective cost or pricing data; prompt disclosure and price adjustment is the ethical and legal obligation.

Question 114: What is the primary purpose of a Contractor Purchasing System Review (CPSR) conducted by DCMA?

To audit incurred costs on cost-reimbursement contracts
To evaluate the contractor's bid and proposal preparation costs
To review contractor payroll records for prevailing wage compliance
To assess whether the contractor's purchasing system is efficient and compliant with FAR requirements (Correct answer)

Correct answer: To assess whether the contractor's purchasing system is efficient and compliant with FAR requirements

A CPSR evaluates whether a contractor's purchasing system provides reasonable assurance that the contractor performs its subcontracting in compliance with FAR and contract requirements.

Question 115: Which FAR provision requires that evaluation factors and their relative importance be stated in the solicitation?

FAR 13.106-1
FAR 36.602-1
FAR 15.304(d) (Correct answer)
FAR 52.212-1

Correct answer: FAR 15.304(d)

FAR 15.304(d) mandates that the solicitation state all evaluation factors and subfactors, along with their relative importance, so offerors can tailor their proposals.

Question 116: What is 'claim accrual' for purposes of the CDA's 6-year statute of limitations?

The date the contract was awarded
The date the contractor submitted an invoice
The date the contracting officer issued a cure notice
The date when all events fixing liability were known or should have been known (Correct answer)

Correct answer: The date when all events fixing liability were known or should have been known

A CDA claim accrues when all events fixing liability occurred and were or should have been known to the contractor, starting the 6-year clock.

Question 117: What is the primary purpose of the Contractor Code of Business Ethics and Conduct required under FAR 52.203-13?

To establish a formal grievance process for subcontractors
To replace agency-specific ethics regulations
To maximize contract profits through ethical pricing
To ensure contractors promote an organizational culture of ethics and have mechanisms for detecting and reporting violations (Correct answer)

Correct answer: To ensure contractors promote an organizational culture of ethics and have mechanisms for detecting and reporting violations

FAR 52.203-13 requires contractors to promote ethical cultures and maintain internal controls for detecting and reporting violations of federal law.

Question 118: When a CFCM professional faces pressure to compromise professional standards, the BEST response is to:

Document the pressure and uphold professional standards (Correct answer)
Comply to maintain workplace relationships
Ignore the pressure and continue without reporting
Immediately resign from the position

Correct answer: Document the pressure and uphold professional standards

Professionals should document any pressure to compromise standards and continue upholding their professional obligations. Documentation creates a record of the situation while maintaining ethical integrity.

Question 119: Under FAR 49.303, the government's liability after terminating a cost-reimbursement contract for convenience includes:

Only fee earned on completed work
The full contract price minus savings
Only direct costs with no fee
Allowable costs incurred plus a proportionate fee (Correct answer)

Correct answer: Allowable costs incurred plus a proportionate fee

FAR 49.303 provides that the government pays allowable costs incurred plus a proportionate fee for a terminated cost-reimbursement contract.

Question 120: What is 'unbalanced pricing' in federal contracting, and why is it a concern?

A proposal where some line items are priced significantly higher or lower than actual cost, potentially increasing government risk (Correct answer)
A pricing structure where direct costs exceed indirect costs
Pricing that includes unallowable costs
A contract where labor costs are higher than material costs

Correct answer: A proposal where some line items are priced significantly higher or lower than actual cost, potentially increasing government risk

Unbalanced pricing occurs when line item prices are materially over- or understated, which can obscure the true total cost and increase financial risk to the government if requirements change.

Question 121: In a best-value tradeoff source selection, an offeror with a higher-rated technical proposal may be selected over a lower-priced offeror if:

The lower-priced offeror failed to submit past performance data
The Source Selection Authority documents why the technical superiority is worth the price premium (Correct answer)
Both offerors received the same adjectival rating
The price difference exceeds 15% of the government estimate

Correct answer: The Source Selection Authority documents why the technical superiority is worth the price premium

A best-value tradeoff selection requires the SSA to document a rational basis showing the technical benefits justify the additional cost.

Question 122: Which contract type is MOST compatible with performance-based payments under FAR 32.10?

Cost-plus-fixed-fee contracts
Fixed-price contracts (Correct answer)
Cost-plus-award-fee contracts
Time-and-materials contracts

Correct answer: Fixed-price contracts

Performance-based payments are a financing tool used primarily with fixed-price contracts, tied to measurable performance outcomes rather than costs incurred.

Question 123: When a contractor's contract manager learns of a potential Anti-Kickback Act violation within their organization, the most appropriate first step is to:

Notify the contracting officer informally without creating a written record
Report the matter through the company's ethics hotline or legal department and cooperate with any resulting investigation (Correct answer)
Issue a stop-work order on all affected contracts
Negotiate directly with the affected subcontractor to resolve the matter privately

Correct answer: Report the matter through the company's ethics hotline or legal department and cooperate with any resulting investigation

Internal reporting through ethics channels or legal counsel is the proper first step, enabling proper investigation and potentially triggering mandatory disclosure obligations.

Question 124: Under FAR Part 31, which type of cost is specifically unallowable regardless of reasonableness?

Travel costs within the continental US
Computer software licensing fees
Independent research and development costs
Costs of alcoholic beverages (Correct answer)

Correct answer: Costs of alcoholic beverages

FAR 31.205-51 expressly lists alcoholic beverages as unallowable costs that cannot be charged to government contracts.

Question 125: A contracting officer's representative (COR) accepts a free dinner from a contractor during contract performance. Under the Standards of Ethical Conduct for Employees of the Executive Branch, this is:

Acceptable if the dinner costs less than $50
Permissible if disclosed in writing to the ethics official
Allowed as a customary business practice
Generally prohibited as an improper gift from a prohibited source (Correct answer)

Correct answer: Generally prohibited as an improper gift from a prohibited source

5 C.F.R. Part 2635 generally prohibits executive branch employees from accepting gifts from prohibited sources, including contractors with whom they deal.

Question 126: Which document formally establishes the evaluation team, evaluation factors, and procedures for a competitive acquisition?

Market Research Report
Performance Work Statement (PWS)
Request for Quotation (RFQ)
Source Selection Plan (SSP) (Correct answer)

Correct answer: Source Selection Plan (SSP)

The Source Selection Plan (SSP) is prepared before issuing the solicitation and governs the entire evaluation process.

Question 127: Anti-kickback provisions under 41 U.S.C. § 8701 et seq. prohibit a subcontractor from:

Negotiating terms and conditions with the prime contractor directly
Requesting that the prime contractor submit a proposal on its behalf
Submitting lower prices to win a subcontract in a competitive process
Providing a payment to a prime contractor's employee in exchange for preferential treatment in subcontract award (Correct answer)

Correct answer: Providing a payment to a prime contractor's employee in exchange for preferential treatment in subcontract award

The Anti-Kickback Act prohibits providing, receiving, or attempting to obtain any money, fee, or compensation to improperly obtain or reward favorable treatment in subcontract awards.

Question 128: What is a Blanket Purchase Agreement (BPA) most accurately described as?

A type of indefinite-delivery contract
A charge account established with qualified suppliers for repetitive needs (Correct answer)
A multi-year contract with options
A small business set-aside vehicle

Correct answer: A charge account established with qualified suppliers for repetitive needs

A BPA is a simplified method for filling anticipated repetitive needs by establishing a 'charge account' arrangement with a supplier, reducing administrative burden.

Question 129: What tool is commonly used to track contract performance metrics?

Random inspections only.
Scorecards and KPIs (Correct answer)
Weekly phone calls.
Public surveys.

Correct answer: Scorecards and KPIs

Scorecards and Key Performance Indicators (KPIs) are commonly used tools to track contract performance metrics. Scorecards provide a holistic view of performance across various criteria, while KPIs measure specific, quantifiable aspects of a contractor's work. These tools enable objective assessment, facilitate data-driven decision-making, and help identify areas for improvement or corrective action.

Question 130: A negotiation reaches an impasse on profit rate. The contractor proposes 12%; the government's position is 8%. What negotiation technique is most appropriate to break the impasse?

Introduce objective criteria such as weighted guidelines analysis to support a middle ground (Correct answer)
Accept the contractor's position to maintain the relationship
Terminate negotiations and re-solicit
Unilaterally award the contract at 8% profit

Correct answer: Introduce objective criteria such as weighted guidelines analysis to support a middle ground

Using objective criteria like the weighted guidelines method provides a principled basis for moving off stated positions and reaching a mutually acceptable profit rate.

Question 131: What is the primary difference between a fixed-price economic price adjustment (EPA) contract and a firm-fixed-price (FFP) contract?

EPA contracts allow the contract price to be revised upward or downward based on specified contingencies such as labor or material cost changes (Correct answer)
EPA contracts are used only for construction; FFP is used for services
EPA contracts eliminate all risk from the contractor
EPA contracts require certified cost or pricing data; FFP contracts do not

Correct answer: EPA contracts allow the contract price to be revised upward or downward based on specified contingencies such as labor or material cost changes

Economic price adjustment clauses allow preset price revisions tied to identified economic indicators (e.g., Bureau of Labor Statistics indices), protecting both parties from significant cost fluctuations.

Question 132: The Buy American Act (41 U.S.C. §§ 8301–8305) restricts the purchase of which category of items by the federal government?

Only military weapons systems
Supplies for use within the United States (Correct answer)
Services performed by foreign nationals
Commercial off-the-shelf technology products

Correct answer: Supplies for use within the United States

The Buy American Act applies to supplies (end products) acquired for use within the United States, requiring domestic manufacture under FAR Part 25.

Question 133: A proposal that takes exception to a material solicitation requirement is generally considered:

Unacceptable because it fails to conform to the solicitation's terms (Correct answer)
Acceptable pending clarification from the contracting officer
Acceptable if the price offered is sufficiently low to offset the exception
Acceptable if the offeror explains the rationale in the proposal

Correct answer: Unacceptable because it fails to conform to the solicitation's terms

Proposals that take exception to material requirements are technically unacceptable and cannot be considered for award without amendment of the solicitation.

Question 134: Under the Prompt Payment Act, what is the standard payment due date for construction contracts if no invoice is received?

14 days after acceptance
30 days after acceptance (Correct answer)
45 days after acceptance
7 days after acceptance

Correct answer: 30 days after acceptance

The Prompt Payment Act requires payment within 30 days after acceptance or receipt of a proper invoice for most government contracts, including construction.

Question 135: In CFCM practice, what is the best approach to quality improvement in source selection?

Wait for problems to occur before acting
Copy what other organizations do without analysis
Use data-driven methods with measurable outcomes (Correct answer)
Make changes without measuring results

Correct answer: Use data-driven methods with measurable outcomes

Data-driven quality improvement with measurable outcomes ensures that changes actually produce the intended improvements and can be verified.

Question 136: A contractor's termination settlement proposal must be submitted to the contracting officer within how many days after the effective date of termination, per FAR 49.206-1?

30 days
1 year
90 days (Correct answer)
60 days

Correct answer: 90 days

FAR 49.206-1 requires the contractor to submit a settlement proposal within 1 year of the effective date of termination, though the CO may extend this period.

Question 137: What is the role of the Source Selection Advisory Council (SSAC) in large or complex acquisitions?

To replace the SSEB and conduct all evaluations directly
To audit the contracting officer's price negotiation memorandum
To approve the solicitation before it is released to industry
To review the SSEB's findings and provide an independent recommendation to the SSA (Correct answer)

Correct answer: To review the SSEB's findings and provide an independent recommendation to the SSA

The SSAC provides a senior-level review of the SSEB's evaluation findings and typically prepares a comparative analysis and recommendation for the SSA's final decision.

Question 138: What is the 'point of total assumption' (PTA) in a fixed-price incentive firm (FPIF) contract?

The audit point at which DCAA assumes oversight
The target profit established at contract award
The cost point above which the contractor bears 100% of additional cost overruns because the ceiling price is reached (Correct answer)
The contract price at which the government assumes all administrative responsibility

Correct answer: The cost point above which the contractor bears 100% of additional cost overruns because the ceiling price is reached

The PTA is the cost level at which the contract's ceiling price is reached, and above that point the contractor absorbs all additional costs, effectively assuming full risk.

Question 139: The liquidation rate applied to progress payments refers to:

The penalty rate charged for late repayment of advance payments
The interest rate charged on outstanding financing balances
The percentage withheld from delivery payments to recoup progress payments (Correct answer)
The rate at which unallowable costs are removed from invoices

Correct answer: The percentage withheld from delivery payments to recoup progress payments

The liquidation rate is the percentage deducted from each delivery payment to recover (liquidate) previously made progress payments.

Question 140: Which ADR technique involves a neutral third party who facilitates negotiation but does not impose a decision?

Mini-trial
Fact-finding
Arbitration
Mediation (Correct answer)

Correct answer: Mediation

In mediation, a neutral facilitator helps parties reach a voluntary settlement without rendering a binding decision.

Question 141: FAR 52.215-2 (Audit and Records - Negotiation) requires that a contractor provide access to records for how long after final payment?

7 years
3 years (Correct answer)
5 years
1 year

Correct answer: 3 years

FAR 52.215-2 requires contractors to maintain and provide access to records for 3 years after final payment, consistent with FAR 4.703.

Question 142: Under FAR 52.215-12, which subcontractors must submit certified cost or pricing data directly to the government (not just to the prime)?

All subcontractors at any tier when required by the prime contract
Subcontractors at any tier when the CO determines it necessary and the subcontract exceeds the TINA threshold (Correct answer)
Only subcontractors that are cost-type entities
Only first-tier subcontractors with subcontracts exceeding $2 million

Correct answer: Subcontractors at any tier when the CO determines it necessary and the subcontract exceeds the TINA threshold

FAR 52.215-12 allows the CO to require subcontractors at any tier to submit certified cost or pricing data directly to the government when subcontracts exceed the TINA threshold.

Question 143: What is the purpose of a 'limitation of cost' clause (FAR 52.232-20) in a cost-reimbursement subcontract?

It limits the government's total liability on the prime contract
It prevents the subcontractor from hiring additional personnel without approval
It caps the prime contractor's profit on the subcontract
It requires the subcontractor to notify the prime when costs approach the funded ceiling (Correct answer)

Correct answer: It requires the subcontractor to notify the prime when costs approach the funded ceiling

FAR 52.232-20 requires the subcontractor to notify the prime (and ultimately the government) when actual costs are expected to exceed the funded limit, enabling funding actions before work stops.

Question 144: Under FAR 3.301, what standard applies to the conduct of government contracting personnel to avoid conflicts of interest?

Conflicts are only relevant for contracts above $1 million
Employees must divest all financial interests before serving
Only actual conflicts, not apparent ones, require disclosure
Employees must avoid situations creating actual or apparent conflicts of interest (Correct answer)

Correct answer: Employees must avoid situations creating actual or apparent conflicts of interest

FAR 3.101-1 requires all government personnel to avoid actual and apparent conflicts of interest to maintain public trust.

Question 145: Which of the following is NOT a permitted evaluation factor under FAR 15.304?

The offeror's headquarters location (Correct answer)
Small business subcontracting plan
Technical approach
Past performance

Correct answer: The offeror's headquarters location

Geographic preference is prohibited by law and regulation; evaluation factors must relate to the requirement and discriminate among competing offers based on merit.

Question 146: Under FAR 31.201-2, for a cost to be allowable it must meet several criteria. Which of the following is NOT one of them?

In accordance with GAAP (Correct answer)
Reasonable in nature and amount
Allocable to the contract
Authorized or not prohibited by the contract

Correct answer: In accordance with GAAP

FAR allowability requires costs to be reasonable, allocable, comply with CAS or GAAP as applicable, and not be prohibited—but simple GAAP conformance alone is not the test; CAS compliance or consistent accounting practices govern.

Question 147: Under FAR 15.508, within what timeframe must the contracting officer offer a post-award debriefing to an unsuccessful offeror who requests one?

At the contracting officer's discretion with no statutory deadline
Within 10 business days of award
Within 30 days of award
Within 5 days of receiving a timely request, or as soon as practicable (Correct answer)

Correct answer: Within 5 days of receiving a timely request, or as soon as practicable

FAR 15.508 requires the contracting officer to debrief unsuccessful offerors within 5 days of receiving a timely request for a post-award debriefing.

Question 148: Which approach best demonstrates mastery of dispute resolution in CFCM practice?

Applying principles to novel situations with sound judgment (Correct answer)
Avoiding complex scenarios
Relying entirely on technology
Following procedures without understanding

Correct answer: Applying principles to novel situations with sound judgment

True mastery involves understanding underlying principles well enough to apply them to new and unfamiliar situations with professional judgment.

Question 149: When conducting price analysis in a source selection, which technique compares offered prices to prices previously paid by the government for the same or similar items?

Cost realism analysis
Comparison with competitive published price lists
Comparison of prior prices paid (Correct answer)
Should-cost analysis

Correct answer: Comparison of prior prices paid

FAR 15.404-1(b)(2)(ii) identifies comparison with prior prices paid as a price analysis technique for determining fair and reasonable price.

Question 150: What is the purpose of the Federal Acquisition Regulation (FAR)?

To guide state procurement laws.
To define criminal penalties for contractors.
To unify acquisition procedures across federal agencies (Correct answer)
To regulate federal court operations.

Correct answer: To unify acquisition procedures across federal agencies

The Federal Acquisition Regulation (FAR) serves as the primary regulation system for all executive agencies in the United States government. Its main purpose is to unify and standardize the acquisition policies and procedures across these federal agencies. This ensures consistency, fairness, and efficiency in how the government procures goods and services.

Certified Federal Contracts Manager (CFCM) Exam

The CFCM certification validates an individual's knowledge of the Federal Acquisition Regulation (FAR) and its application in federal contracting.

150

Questions

210 min

Time Limit

75%

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