CPCM COMPREHENSIVE UPDATED EXAM QUESTIONS AND
ANSWERS GRADED A+
✔✔Personal conflict of interest (PCI) - ✔✔A situation in which a covered employee has
a financial interest, personal activity, or relationship that could impair the employee's
ability to act impartially and in the best interest of the government when performing
under a contract
✔✔Collusion - ✔✔Any understanding or agreement among bidders or competitors
concerning bids or proposals for the sale of products or services
✔✔Kickback - ✔✔payment back of a portion of the purchase price to a buyer or public
official by the seller to induce purchase or to improperly influence future purchases or
leases
✔✔Fraud - ✔✔An intentional misrepresentation of the truth or concealing a material fact
to induce another to act to their detriment
✔✔Buy-in - ✔✔Submitting an offer below anticipated cost, with the expectation of
increasing the contract amount after award or receiving follow-on contracts at artificially
high prices
✔✔Price Fixing - ✔✔Any agreement, understanding or arrangement among competitors
to raise, lower, fix or stabilize prices, as well as any agreement between a supplier and
customer as to the price at which the customer may resell goods purchased
✔✔Procurement Integrity - ✔✔A set of rules of conduct contained in the 1989
amendments to the Office of Federal Procurement Policy Act, that were formalized for
the purpose of upholding the integrity of the govt procurement process. Implemented by
FAR 3.104
✔✔Qui tam action - ✔✔An action brought by an informer. Part of the penalty goes to
any person who brings such an actions; the remainder to the state or some other suit.
-Abbreviation of latin phrase:
qui tam pro domino rege quam pro se ipso in hac parte sequitur-meaning "he who sues
in this matter for the king as well as for himself"
✔✔Revolving Door - ✔✔-the process of government employees leaving government
service to join private industry
-restrictions on such employment are contained in 18 USC 207 (civilian) and 37 USC
801(Military)
✔✔Standard of conduct, Government - ✔✔Government business shall be conduced in
a manner above reproach and, except as authorized by statute or regulation, with
complete impartiality and with preferential treatment for none.
,✔✔Typical Socioeconomic Programs - ✔✔-Small Business programs
-Veteran-owned small business
-Woman-owned small business
-small and disadvantaged business:
Section 8(a) socially and economically disadvantaged
Section 1207 Program: Allows 10% evaluation credit
-Indian Incentive Program (IIP)
-HBCU's and minority institutions:
Promotion of Historically Black Colleges and Universities in federal procurement in
compliance with E.O. 12928
-Disaster or emergency assistance services
-Application of labor laws to federal government acquisitions
-workplace and environmental considerations
-privacy and freedom of information
-foreign acquisition
✔✔Required Sources - ✔✔Ability One-The largest provider of jobs for people who are
blind or have other significant disabilities the the US
Federal Prison Industries-Govt corporation whose function is to provide training and
employment for inmates -trade name UNICOR
-a preferential procurement program
Javits-Wagner-O'Day Act (JWOD)-Requires the govt to buy some of its supplies and
services from nonprofit
agencies that employ American who are blind or have other severe limitations
✔✔Small Business Act (SBA) - ✔✔Law providing preferences for small and small
disadvantaged businesses in govt contracting
✔✔Set-aside - ✔✔a kind or class of procurement reserved for contenders that fit a
certain category. Can be total or partial, or a class set-aside
✔✔Partial Set-aside - ✔✔May be utilized when small business sources cannot satisfy
the govt entire requirement at a reasonable price
✔✔Walsh-Healy Public Contract Act - ✔✔Requires contractors engaged in
manufacturing or furnishing of materials, supplies, articles or equipment to the Govt to
pay employees who produce, assemble, handle, or ship goods under contracts
exceeding $15K the federal min wage for all hours worked and time-and-one-half for
hours worked over 40.
✔✔Contract Work Hours & Safety Standards Act - ✔✔Established a 40 hour work week
and time 1/2 for hours worked in excess of 40
, ✔✔Service Contract Act (SCA) - ✔✔Federal Law establishing labor standards for such
matters as wages and working conditions. It applies to every govt contract over $2500
which its principal purpose is to furnish services to the govt.
✔✔Fair Labor Standards Act (FLSA) - ✔✔-Set a minimum standard wage and a
maximum work week of 40 hours in industries engaged in interstate commerce.
-Prohibits children from working under the age of 16 except in dangerous occupations,
then 18
-Created the Wage and Hour Division in the Dept of labor
✔✔Labor Surplus area - ✔✔A geographic area identified by the DOL as an area of
concentrated unemployment or underemployment or an area of labor surplus
✔✔Labor surplus area concern - ✔✔A concern that together with its first tier subs will
perform in labor surplus areas
Performance is substantially in labor surplus areas if the costs incurred under the
contract on account of manufacturing, production, or performance of appropriate
services in labor surplus areas exceed 50% of the contract price
✔✔Environmental contracting - ✔✔Contract for analysis, investigation and studies in
support of compliance, pollution prevention, conservations, recycling and remediation to
comply with all federal, state and local environmental laws and regulation
✔✔Environment Laws - ✔✔Policies and procedures supporting the govt program for
protecting and improving the quality of the environment through pollution control, energy
conservation, identification of hazardous material, and use of recovered materials
✔✔Domestic End product - ✔✔Unmanufactured end product mined or produced in the
US or and end product manufactured in the US
✔✔US made end product - ✔✔An article mined, produced, or manufactured in the US
or that is substantially transformed in the US into a new and different article of
commerce with a name, character or use distinct from that of the article(s) from which is
was transformed
✔✔Trade Agreements Act(TAA) - ✔✔The act specifically prohibits the purchase of an
end-product from designated countries, as determined by the US trade representative
✔✔Fixed Price Contract - ✔✔Contract providing for a firm pricing arrangement
established by the parties at the time of contracting
✔✔FFP level of effort (LOE) - ✔✔Contract which requires the contractor to provide a
specified LOE over a stated period of time on work that can be state only in general
terms and requires the buyer to pay the contractor a fixed dollar amount
ANSWERS GRADED A+
✔✔Personal conflict of interest (PCI) - ✔✔A situation in which a covered employee has
a financial interest, personal activity, or relationship that could impair the employee's
ability to act impartially and in the best interest of the government when performing
under a contract
✔✔Collusion - ✔✔Any understanding or agreement among bidders or competitors
concerning bids or proposals for the sale of products or services
✔✔Kickback - ✔✔payment back of a portion of the purchase price to a buyer or public
official by the seller to induce purchase or to improperly influence future purchases or
leases
✔✔Fraud - ✔✔An intentional misrepresentation of the truth or concealing a material fact
to induce another to act to their detriment
✔✔Buy-in - ✔✔Submitting an offer below anticipated cost, with the expectation of
increasing the contract amount after award or receiving follow-on contracts at artificially
high prices
✔✔Price Fixing - ✔✔Any agreement, understanding or arrangement among competitors
to raise, lower, fix or stabilize prices, as well as any agreement between a supplier and
customer as to the price at which the customer may resell goods purchased
✔✔Procurement Integrity - ✔✔A set of rules of conduct contained in the 1989
amendments to the Office of Federal Procurement Policy Act, that were formalized for
the purpose of upholding the integrity of the govt procurement process. Implemented by
FAR 3.104
✔✔Qui tam action - ✔✔An action brought by an informer. Part of the penalty goes to
any person who brings such an actions; the remainder to the state or some other suit.
-Abbreviation of latin phrase:
qui tam pro domino rege quam pro se ipso in hac parte sequitur-meaning "he who sues
in this matter for the king as well as for himself"
✔✔Revolving Door - ✔✔-the process of government employees leaving government
service to join private industry
-restrictions on such employment are contained in 18 USC 207 (civilian) and 37 USC
801(Military)
✔✔Standard of conduct, Government - ✔✔Government business shall be conduced in
a manner above reproach and, except as authorized by statute or regulation, with
complete impartiality and with preferential treatment for none.
,✔✔Typical Socioeconomic Programs - ✔✔-Small Business programs
-Veteran-owned small business
-Woman-owned small business
-small and disadvantaged business:
Section 8(a) socially and economically disadvantaged
Section 1207 Program: Allows 10% evaluation credit
-Indian Incentive Program (IIP)
-HBCU's and minority institutions:
Promotion of Historically Black Colleges and Universities in federal procurement in
compliance with E.O. 12928
-Disaster or emergency assistance services
-Application of labor laws to federal government acquisitions
-workplace and environmental considerations
-privacy and freedom of information
-foreign acquisition
✔✔Required Sources - ✔✔Ability One-The largest provider of jobs for people who are
blind or have other significant disabilities the the US
Federal Prison Industries-Govt corporation whose function is to provide training and
employment for inmates -trade name UNICOR
-a preferential procurement program
Javits-Wagner-O'Day Act (JWOD)-Requires the govt to buy some of its supplies and
services from nonprofit
agencies that employ American who are blind or have other severe limitations
✔✔Small Business Act (SBA) - ✔✔Law providing preferences for small and small
disadvantaged businesses in govt contracting
✔✔Set-aside - ✔✔a kind or class of procurement reserved for contenders that fit a
certain category. Can be total or partial, or a class set-aside
✔✔Partial Set-aside - ✔✔May be utilized when small business sources cannot satisfy
the govt entire requirement at a reasonable price
✔✔Walsh-Healy Public Contract Act - ✔✔Requires contractors engaged in
manufacturing or furnishing of materials, supplies, articles or equipment to the Govt to
pay employees who produce, assemble, handle, or ship goods under contracts
exceeding $15K the federal min wage for all hours worked and time-and-one-half for
hours worked over 40.
✔✔Contract Work Hours & Safety Standards Act - ✔✔Established a 40 hour work week
and time 1/2 for hours worked in excess of 40
, ✔✔Service Contract Act (SCA) - ✔✔Federal Law establishing labor standards for such
matters as wages and working conditions. It applies to every govt contract over $2500
which its principal purpose is to furnish services to the govt.
✔✔Fair Labor Standards Act (FLSA) - ✔✔-Set a minimum standard wage and a
maximum work week of 40 hours in industries engaged in interstate commerce.
-Prohibits children from working under the age of 16 except in dangerous occupations,
then 18
-Created the Wage and Hour Division in the Dept of labor
✔✔Labor Surplus area - ✔✔A geographic area identified by the DOL as an area of
concentrated unemployment or underemployment or an area of labor surplus
✔✔Labor surplus area concern - ✔✔A concern that together with its first tier subs will
perform in labor surplus areas
Performance is substantially in labor surplus areas if the costs incurred under the
contract on account of manufacturing, production, or performance of appropriate
services in labor surplus areas exceed 50% of the contract price
✔✔Environmental contracting - ✔✔Contract for analysis, investigation and studies in
support of compliance, pollution prevention, conservations, recycling and remediation to
comply with all federal, state and local environmental laws and regulation
✔✔Environment Laws - ✔✔Policies and procedures supporting the govt program for
protecting and improving the quality of the environment through pollution control, energy
conservation, identification of hazardous material, and use of recovered materials
✔✔Domestic End product - ✔✔Unmanufactured end product mined or produced in the
US or and end product manufactured in the US
✔✔US made end product - ✔✔An article mined, produced, or manufactured in the US
or that is substantially transformed in the US into a new and different article of
commerce with a name, character or use distinct from that of the article(s) from which is
was transformed
✔✔Trade Agreements Act(TAA) - ✔✔The act specifically prohibits the purchase of an
end-product from designated countries, as determined by the US trade representative
✔✔Fixed Price Contract - ✔✔Contract providing for a firm pricing arrangement
established by the parties at the time of contracting
✔✔FFP level of effort (LOE) - ✔✔Contract which requires the contractor to provide a
specified LOE over a stated period of time on work that can be state only in general
terms and requires the buyer to pay the contractor a fixed dollar amount
