CFCM Exam Questions and Verified Answers Graded A+ 2026/27
-A cost is reasonable if, in its nature and amount, it does not exceed - that which would be
incurred by a prudent person in the conduct of competitive business.
Advance Agreements should not be negotiated - after the incurrence of the costs involved.
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due
under a contract if it meets all but which of the following? - The contract specifies
payments aggregating $100,000 or more.
Individuals delegated micro-purchase authority do not need to be - appointed in an SF
1402
Advisory and assistance services are classified in all of the following subdivisions except -
construction.
A foreign end product may be purchased under the Buy American Act if - the price of the
lowest domestic offer is determined to be unreasonable by the CO.
The threshold which must be exceeded before purchases of services become subject to the
Service Contract Act is - $2,500
Which of the following examples is considered to be an inherently governmental function? -
approving contractual documents
,If market research indicates commercial or nondevelopmental items might not be available to
satisfy agency needs, agencies shall next: - determine whether the need can be restated to
permit commercial or nondevelopmental items to satisfy the agency's needs.
Which is NOT one of the seven exceptions to full and open competition? - Approval by
the Agency Head
If the delivery schedule is based on the date of the contract, the contracting officer shall mail or
otherwise furnish to the contractor the contract, notice of award, acceptance of proposal or other
contract document - not later than the date of the contract.
Liquidated damages are typically assessed - per calendar day.
Cost Accounting Standards apply to commercial item contracts when they are - fixed price
with economic price adjustment based on actual costs.
An indefinite-quantity contract is best used when: - a recurring need is anticipated
_______________________ is a Department of Commerce regulation in support of approved
national defense, emergency preparedness, and energy programs, and the Secretary of Commerce
is designated to administer it. - Defense Priorities and Allocations System
Under Sealed Bidding, a bid sample will be used to: - determine responsiveness of the bid.
,Which type of the cost reimbursement contract is the least preferred type due to its minimum
incentive for the contractor to control cost? - cost plus fixed fee
According to FAR 13.003, Policy for Simplified Acquisition Procedures, which of the following
is correct? - Agencies shall use the government-wide commercial purchase card and
electronic purchasing techniques to the maximum practicable in conducting simplified
acquisitions.
Which of the following must be evaluated in every source selection? - Price or cost to the
government
In what FAR Part will you find rules and policy on foreign acquisitions? - FAR Part 25
The Miller Act requires: - a performance and payment bond for construction contracts
over $150,000
Under what type of contract might the seller never have to perform any services or provide any
deliveries? - Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the
contract is less than: - $5,000
, Effective competition, as used in FAR Part 34, is a market condition that exists when -
two or more contractors act independently and actively contend for the government's
business.
The total amount that can be paid for commercial advance payments cannot exceed _____ of the
contract price: - 15%
When progress payments are authorized, what is the customary progress payment rate applicable
to the total costs of performing the contract? - 80%, 85% for contracts with small
businesses
The Walsh-Healy Public Contracts Act pertains to such matters as minimum wages, maximum
hours, child labor, convict labor, and safe and sanitary working conditions and applies to
contracts for the manufacture or furnishing of materials, supplies, articles, and equipment in the
United States in any amount exceeding - $15,000
A valid unsolicited proposal must: - be independently originated and developed by the
offeror.
Each acquisition of supplies or services that has an anticipated dollar value exceeding _____ and
not exceeding ______ is reserved exclusively for small business concerns and shall be set aside
unless the contracting officer appropriately determines otherwise. - $3,000; $150,000
-A cost is reasonable if, in its nature and amount, it does not exceed - that which would be
incurred by a prudent person in the conduct of competitive business.
Advance Agreements should not be negotiated - after the incurrence of the costs involved.
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due
under a contract if it meets all but which of the following? - The contract specifies
payments aggregating $100,000 or more.
Individuals delegated micro-purchase authority do not need to be - appointed in an SF
1402
Advisory and assistance services are classified in all of the following subdivisions except -
construction.
A foreign end product may be purchased under the Buy American Act if - the price of the
lowest domestic offer is determined to be unreasonable by the CO.
The threshold which must be exceeded before purchases of services become subject to the
Service Contract Act is - $2,500
Which of the following examples is considered to be an inherently governmental function? -
approving contractual documents
,If market research indicates commercial or nondevelopmental items might not be available to
satisfy agency needs, agencies shall next: - determine whether the need can be restated to
permit commercial or nondevelopmental items to satisfy the agency's needs.
Which is NOT one of the seven exceptions to full and open competition? - Approval by
the Agency Head
If the delivery schedule is based on the date of the contract, the contracting officer shall mail or
otherwise furnish to the contractor the contract, notice of award, acceptance of proposal or other
contract document - not later than the date of the contract.
Liquidated damages are typically assessed - per calendar day.
Cost Accounting Standards apply to commercial item contracts when they are - fixed price
with economic price adjustment based on actual costs.
An indefinite-quantity contract is best used when: - a recurring need is anticipated
_______________________ is a Department of Commerce regulation in support of approved
national defense, emergency preparedness, and energy programs, and the Secretary of Commerce
is designated to administer it. - Defense Priorities and Allocations System
Under Sealed Bidding, a bid sample will be used to: - determine responsiveness of the bid.
,Which type of the cost reimbursement contract is the least preferred type due to its minimum
incentive for the contractor to control cost? - cost plus fixed fee
According to FAR 13.003, Policy for Simplified Acquisition Procedures, which of the following
is correct? - Agencies shall use the government-wide commercial purchase card and
electronic purchasing techniques to the maximum practicable in conducting simplified
acquisitions.
Which of the following must be evaluated in every source selection? - Price or cost to the
government
In what FAR Part will you find rules and policy on foreign acquisitions? - FAR Part 25
The Miller Act requires: - a performance and payment bond for construction contracts
over $150,000
Under what type of contract might the seller never have to perform any services or provide any
deliveries? - Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the
contract is less than: - $5,000
, Effective competition, as used in FAR Part 34, is a market condition that exists when -
two or more contractors act independently and actively contend for the government's
business.
The total amount that can be paid for commercial advance payments cannot exceed _____ of the
contract price: - 15%
When progress payments are authorized, what is the customary progress payment rate applicable
to the total costs of performing the contract? - 80%, 85% for contracts with small
businesses
The Walsh-Healy Public Contracts Act pertains to such matters as minimum wages, maximum
hours, child labor, convict labor, and safe and sanitary working conditions and applies to
contracts for the manufacture or furnishing of materials, supplies, articles, and equipment in the
United States in any amount exceeding - $15,000
A valid unsolicited proposal must: - be independently originated and developed by the
offeror.
Each acquisition of supplies or services that has an anticipated dollar value exceeding _____ and
not exceeding ______ is reserved exclusively for small business concerns and shall be set aside
unless the contracting officer appropriately determines otherwise. - $3,000; $150,000
