NCMA CFCM CERTIFICATION REVIEW | 500+
PRACTICE QUESTIONS, TEST BANK & ANSWER
EXPLANATIONS LATEST EDITION
1. Which of the following is the primary body of regulations governing federal
government acquisitions by all executive branch agencies?
a) Defense Federal Acquisition Regulation Supplement (DFARS)
b) Federal Acquisition Regulation (FAR)
c) Truth in Negotiations Act (TINA)
d) Competition in Contracting Act (CICA)
b) Federal Acquisition Regulation (FAR)
Rationale: The FAR, codified in Title 48 of the Code of Federal Regulations,
provides uniform policies and procedures for acquisitions by all executive
agencies.
2. Under the Competition in Contracting Act (CICA), a contracting officer may
restrict competition only when:
a) The program office requests it
b) A written justification and approval (J&A) is prepared and approved
c) The acquisition is below the simplified acquisition threshold
d) The contractor is a small business
b) A written justification and approval (J&A) is prepared and approved
Rationale: FAR 6.303 requires a J&A to document the rationale for using
other than full and open competition.
3. A firm-fixed-price contract is most appropriate when:
a) The requirement is vague and costs are uncertain
b) The government can clearly define the specifications and the risk of cost
overruns is minimal
c) The contractor demands a cost-reimbursement contract
d) The acquisition is for research and development
b) The government can clearly define the specifications and the risk of
, cost overruns is minimal
Rationale: FAR 16.202-2 states that firm-fixed-price contracts are suitable
when fair and reasonable prices can be established at the outset and the
risk is low.
4. The simplified acquisition threshold for most federal acquisitions is:
a) $100,000
b) $150,000
c) $250,000
d) $500,000
*c) $250,000**
*Rationale: FAR 2.101 defines the simplified acquisition threshold as
$250,000, with higher thresholds for certain contingency operations.
5. A contracting officer is required to determine that a prospective contractor
is "responsible" before award. Which of the following is a factor in that
determination?
a) The contractor’s proposed price
b) The contractor’s past performance and financial capability
c) The contractor’s geographical location
d) The contractor’s size
b) The contractor’s past performance and financial capability
Rationale: FAR 9.104-1 lists the general standards for responsibility,
including adequate financial resources, satisfactory past performance, and
integrity.
6. A cost-reimbursement contract is suitable when:
a) The requirement is well-defined and the risk is low
b) The costs cannot be estimated with sufficient accuracy to use a fixed-
price contract
c) The contractor is a small business
d) The acquisition is for commercial items
b) The costs cannot be estimated with sufficient accuracy to use a fixed-
price contract
, Rationale: FAR 16.301-2 states that cost-reimbursement contracts are
appropriate when uncertainties in contract performance do not permit costs
to be estimated with sufficient accuracy to use a fixed-price contract.
7. In a sealed bid procurement, award is made to the:
a) Bidder with the best past performance
b) Responsive and responsible bidder whose bid conforms to the
solicitation and offers the lowest price
c) Small business bidder regardless of price
d) Bidder that submits the most detailed technical proposal
b) Responsive and responsible bidder whose bid conforms to the
solicitation and offers the lowest price
Rationale: FAR Part 14 specifies that sealed bidding awards are based solely
on price and price-related factors.
8. A "performance work statement" (PWS) in a service contract describes:
a) The detailed methods the contractor must use
b) The required outcomes and results in measurable terms
c) The contractor's organizational structure
d) The subcontracting goals
b) The required outcomes and results in measurable terms
Rationale: A PWS focuses on what is to be achieved, not how, giving the
contractor flexibility in meeting performance standards.
9. The Truth in Negotiations Act (TINA) requires certified cost or pricing data
for negotiated procurements exceeding $2 million, unless:
a) The contract is firm-fixed-price
b) An exception applies, such as adequate price competition or commercial
item
c) The contractor is a small business
d) The acquisition is for services
b) An exception applies, such as adequate price competition or
commercial item
, Rationale: FAR 15.403-1 lists the exceptions to TINA, including adequate
price competition, commercial items, and prices set by law.
10.A contracting officer's representative (COR) is authorized to:
a) Sign contract modifications
b) Monitor technical performance and assist the contracting officer, but not
bind the government
c) Award contracts
d) Issue final decisions on claims
b) Monitor technical performance and assist the contracting officer, but
not bind the government
Rationale: CORs are delegated technical oversight authority; only a
contracting officer may legally bind the government.
11.The "Changes" clause in a fixed-price contract allows the government to:
a) Terminate the contract at will
b) Unilaterally direct changes within the general scope of the contract, with
an equitable adjustment
c) Reduce the contract price without negotiation
d) Replace the contractor's key personnel
b) Unilaterally direct changes within the general scope of the contract,
with an equitable adjustment
Rationale: The standard changes clause gives the government the right to
modify the work, but the contractor is entitled to a fair adjustment.
12.An "equitable adjustment" for a change order is intended to:
a) Penalize the contractor
b) Compensate the contractor for the cost impact of the change, including a
reasonable profit
c) Increase the government's profit
d) Terminate the contract
b) Compensate the contractor for the cost impact of the change, including
a reasonable profit
PRACTICE QUESTIONS, TEST BANK & ANSWER
EXPLANATIONS LATEST EDITION
1. Which of the following is the primary body of regulations governing federal
government acquisitions by all executive branch agencies?
a) Defense Federal Acquisition Regulation Supplement (DFARS)
b) Federal Acquisition Regulation (FAR)
c) Truth in Negotiations Act (TINA)
d) Competition in Contracting Act (CICA)
b) Federal Acquisition Regulation (FAR)
Rationale: The FAR, codified in Title 48 of the Code of Federal Regulations,
provides uniform policies and procedures for acquisitions by all executive
agencies.
2. Under the Competition in Contracting Act (CICA), a contracting officer may
restrict competition only when:
a) The program office requests it
b) A written justification and approval (J&A) is prepared and approved
c) The acquisition is below the simplified acquisition threshold
d) The contractor is a small business
b) A written justification and approval (J&A) is prepared and approved
Rationale: FAR 6.303 requires a J&A to document the rationale for using
other than full and open competition.
3. A firm-fixed-price contract is most appropriate when:
a) The requirement is vague and costs are uncertain
b) The government can clearly define the specifications and the risk of cost
overruns is minimal
c) The contractor demands a cost-reimbursement contract
d) The acquisition is for research and development
b) The government can clearly define the specifications and the risk of
, cost overruns is minimal
Rationale: FAR 16.202-2 states that firm-fixed-price contracts are suitable
when fair and reasonable prices can be established at the outset and the
risk is low.
4. The simplified acquisition threshold for most federal acquisitions is:
a) $100,000
b) $150,000
c) $250,000
d) $500,000
*c) $250,000**
*Rationale: FAR 2.101 defines the simplified acquisition threshold as
$250,000, with higher thresholds for certain contingency operations.
5. A contracting officer is required to determine that a prospective contractor
is "responsible" before award. Which of the following is a factor in that
determination?
a) The contractor’s proposed price
b) The contractor’s past performance and financial capability
c) The contractor’s geographical location
d) The contractor’s size
b) The contractor’s past performance and financial capability
Rationale: FAR 9.104-1 lists the general standards for responsibility,
including adequate financial resources, satisfactory past performance, and
integrity.
6. A cost-reimbursement contract is suitable when:
a) The requirement is well-defined and the risk is low
b) The costs cannot be estimated with sufficient accuracy to use a fixed-
price contract
c) The contractor is a small business
d) The acquisition is for commercial items
b) The costs cannot be estimated with sufficient accuracy to use a fixed-
price contract
, Rationale: FAR 16.301-2 states that cost-reimbursement contracts are
appropriate when uncertainties in contract performance do not permit costs
to be estimated with sufficient accuracy to use a fixed-price contract.
7. In a sealed bid procurement, award is made to the:
a) Bidder with the best past performance
b) Responsive and responsible bidder whose bid conforms to the
solicitation and offers the lowest price
c) Small business bidder regardless of price
d) Bidder that submits the most detailed technical proposal
b) Responsive and responsible bidder whose bid conforms to the
solicitation and offers the lowest price
Rationale: FAR Part 14 specifies that sealed bidding awards are based solely
on price and price-related factors.
8. A "performance work statement" (PWS) in a service contract describes:
a) The detailed methods the contractor must use
b) The required outcomes and results in measurable terms
c) The contractor's organizational structure
d) The subcontracting goals
b) The required outcomes and results in measurable terms
Rationale: A PWS focuses on what is to be achieved, not how, giving the
contractor flexibility in meeting performance standards.
9. The Truth in Negotiations Act (TINA) requires certified cost or pricing data
for negotiated procurements exceeding $2 million, unless:
a) The contract is firm-fixed-price
b) An exception applies, such as adequate price competition or commercial
item
c) The contractor is a small business
d) The acquisition is for services
b) An exception applies, such as adequate price competition or
commercial item
, Rationale: FAR 15.403-1 lists the exceptions to TINA, including adequate
price competition, commercial items, and prices set by law.
10.A contracting officer's representative (COR) is authorized to:
a) Sign contract modifications
b) Monitor technical performance and assist the contracting officer, but not
bind the government
c) Award contracts
d) Issue final decisions on claims
b) Monitor technical performance and assist the contracting officer, but
not bind the government
Rationale: CORs are delegated technical oversight authority; only a
contracting officer may legally bind the government.
11.The "Changes" clause in a fixed-price contract allows the government to:
a) Terminate the contract at will
b) Unilaterally direct changes within the general scope of the contract, with
an equitable adjustment
c) Reduce the contract price without negotiation
d) Replace the contractor's key personnel
b) Unilaterally direct changes within the general scope of the contract,
with an equitable adjustment
Rationale: The standard changes clause gives the government the right to
modify the work, but the contractor is entitled to a fair adjustment.
12.An "equitable adjustment" for a change order is intended to:
a) Penalize the contractor
b) Compensate the contractor for the cost impact of the change, including a
reasonable profit
c) Increase the government's profit
d) Terminate the contract
b) Compensate the contractor for the cost impact of the change, including
a reasonable profit
