CFCM UPDATED ACTUAL Exam
Questions and CORRECT Answers
Responsible Source - CORRECT ANSWER -a seller which has been found capable and
has the resources and skills necessary to satisfy contractual requirements
Who does the FAR apply to? - CORRECT ANSWER -all executive agencies
agency typically responsible for auditing the contractors that are non-profits and educational
institutions - CORRECT ANSWER -Office of Management and Budget
Acquisition Team - CORRECT ANSWER -all participants in government acquisition
(including contractors and customers)
Deviation - CORRECT ANSWER -issuance of a policy, etc. inconsistent or not authorized
by FAR
Who is FAR maintained by? - CORRECT ANSWER -o GSA
o Secretary of Defense
o NASA Administrator
Who handles FAR revisions? - CORRECT ANSWER -o DAR council
o CAA council
Who prints, publishes, and distributes the FAR? - CORRECT ANSWER -FAR secretariat
how often are dollar thresholds in the FAR for inflation? - CORRECT ANSWER -once
every 5 years
,Numbering scheme - CORRECT ANSWER -Part.SubpartSection-Subsection(paragraph)
Example: 9.106-4(d) is Part 9, Subpart 1, Section 06, Subsection 4, Paragraph D
What Part are the FAR definitions? - CORRECT ANSWER -Part 2
CO responsibilities - CORRECT ANSWER -o Only one allowed to enter into contracts on
behalf of the government
o Administer or terminate contract
o Ensure all legal requirements have been met before entering into contract
o Ensuring performance and compliance with contract
o Assign a COR to assist with the monitoring and administration of CO (COR does not have
authority to make major decisions that affect the contract)
Unauthorized Committment - CORRECT ANSWER -CO makes a commitment on behalf
of the government without the authority
Ratification - CORRECT ANSWER -approving an unauthorized commitment by an
official who has the authority to do so
Determination and Findings - CORRECT ANSWER -a special form of written approval
by an authorized official as a prerequisite to taking certain contract actions, based on fact or
rationale that covers FAR statute/regulations
Acquisition definition - CORRECT ANSWER -acquiring by contract with appropriated
funds of supplies or services by and for the use of the federal government via purchase
Begins when the agency need is established
,Acquisition Plan definition - CORRECT ANSWER -process by which efforts of all
personnel responsible for an acquisition are coordinated and integrated through a plan for
fulfilling the agency need in a timely manner and at a reasonable cost
Best Value definition - CORRECT ANSWER -expected outcome of an acquisition that
provides the greatest overall benefit in response to the requirement in the government's estimate
Best Value continuum= ranges from lowest price acceptable to tradeoff analysis
Commercial Item definition - CORRECT ANSWER -any item other than real property
used for non-government purposes and has been sold, leased, or licenses (or offered to be) to the
general public
Nondevelopmental Item definition - CORRECT ANSWER -any previously developed
item of supply used exclusively for government purposes by a government entity that has a
mutual defense cooperation agreement
Difference between Commercial and Nondevelopmental Item - CORRECT ANSWER -
commercial item is available to both government and general public, whereas nondevelopmental
Item is only for the government
Contract definition - CORRECT ANSWER -a mutually binding legal relationship
obligating the seller to furnish the supplies or services and the buyer to pay for them
Are grants and cooperative agreements contracts? - CORRECT ANSWER -No
Contracting Officer (CO) definition - CORRECT ANSWER -a person with the authority
to enter into, administer, and/or terminate contracts and make related determinations and findings
Cost Realism Analysis definition - CORRECT ANSWER -a process for independently
reviewing and evaluating specific elements of each offeror's proposal cost estimate
, Bundling definition - CORRECT ANSWER -consolidating two or more requirements for
supplies or services previously provided/performed under separate or small contracts for a single
contract
May vs Shall vs Should - CORRECT ANSWER -o May= gives permission
o Shall= gives requirement
o Should= gives expectation
Offer/Offeror definition - CORRECT ANSWER -o Offer= response to a solicitation that,
if accepted, would bind the offeror to perform the resulting contract
Proposals are offers
Responses to invitations for quotations are not offers
o Offeror= one who makes an offer, or a bidder
Performance-Based definition - CORRECT ANSWER -o Performance- Based
Acquisition= all aspects are structured around the desired outcome of the requirement
o Performance-Based Contract= uses measureable performance standards and quality assurance
plans
Pricing definition - CORRECT ANSWER -process of establishing a reasonable amount to
be paid for services and must include:
o Cost
o Profit margin
Purchase Order definition - CORRECT ANSWER -an offer by the government to buy
supplies or services using simplified acquisition procedures
Simplified Acquisition definition - CORRECT ANSWER -less rigorous method for
entering into low dollar threshold contracts
Questions and CORRECT Answers
Responsible Source - CORRECT ANSWER -a seller which has been found capable and
has the resources and skills necessary to satisfy contractual requirements
Who does the FAR apply to? - CORRECT ANSWER -all executive agencies
agency typically responsible for auditing the contractors that are non-profits and educational
institutions - CORRECT ANSWER -Office of Management and Budget
Acquisition Team - CORRECT ANSWER -all participants in government acquisition
(including contractors and customers)
Deviation - CORRECT ANSWER -issuance of a policy, etc. inconsistent or not authorized
by FAR
Who is FAR maintained by? - CORRECT ANSWER -o GSA
o Secretary of Defense
o NASA Administrator
Who handles FAR revisions? - CORRECT ANSWER -o DAR council
o CAA council
Who prints, publishes, and distributes the FAR? - CORRECT ANSWER -FAR secretariat
how often are dollar thresholds in the FAR for inflation? - CORRECT ANSWER -once
every 5 years
,Numbering scheme - CORRECT ANSWER -Part.SubpartSection-Subsection(paragraph)
Example: 9.106-4(d) is Part 9, Subpart 1, Section 06, Subsection 4, Paragraph D
What Part are the FAR definitions? - CORRECT ANSWER -Part 2
CO responsibilities - CORRECT ANSWER -o Only one allowed to enter into contracts on
behalf of the government
o Administer or terminate contract
o Ensure all legal requirements have been met before entering into contract
o Ensuring performance and compliance with contract
o Assign a COR to assist with the monitoring and administration of CO (COR does not have
authority to make major decisions that affect the contract)
Unauthorized Committment - CORRECT ANSWER -CO makes a commitment on behalf
of the government without the authority
Ratification - CORRECT ANSWER -approving an unauthorized commitment by an
official who has the authority to do so
Determination and Findings - CORRECT ANSWER -a special form of written approval
by an authorized official as a prerequisite to taking certain contract actions, based on fact or
rationale that covers FAR statute/regulations
Acquisition definition - CORRECT ANSWER -acquiring by contract with appropriated
funds of supplies or services by and for the use of the federal government via purchase
Begins when the agency need is established
,Acquisition Plan definition - CORRECT ANSWER -process by which efforts of all
personnel responsible for an acquisition are coordinated and integrated through a plan for
fulfilling the agency need in a timely manner and at a reasonable cost
Best Value definition - CORRECT ANSWER -expected outcome of an acquisition that
provides the greatest overall benefit in response to the requirement in the government's estimate
Best Value continuum= ranges from lowest price acceptable to tradeoff analysis
Commercial Item definition - CORRECT ANSWER -any item other than real property
used for non-government purposes and has been sold, leased, or licenses (or offered to be) to the
general public
Nondevelopmental Item definition - CORRECT ANSWER -any previously developed
item of supply used exclusively for government purposes by a government entity that has a
mutual defense cooperation agreement
Difference between Commercial and Nondevelopmental Item - CORRECT ANSWER -
commercial item is available to both government and general public, whereas nondevelopmental
Item is only for the government
Contract definition - CORRECT ANSWER -a mutually binding legal relationship
obligating the seller to furnish the supplies or services and the buyer to pay for them
Are grants and cooperative agreements contracts? - CORRECT ANSWER -No
Contracting Officer (CO) definition - CORRECT ANSWER -a person with the authority
to enter into, administer, and/or terminate contracts and make related determinations and findings
Cost Realism Analysis definition - CORRECT ANSWER -a process for independently
reviewing and evaluating specific elements of each offeror's proposal cost estimate
, Bundling definition - CORRECT ANSWER -consolidating two or more requirements for
supplies or services previously provided/performed under separate or small contracts for a single
contract
May vs Shall vs Should - CORRECT ANSWER -o May= gives permission
o Shall= gives requirement
o Should= gives expectation
Offer/Offeror definition - CORRECT ANSWER -o Offer= response to a solicitation that,
if accepted, would bind the offeror to perform the resulting contract
Proposals are offers
Responses to invitations for quotations are not offers
o Offeror= one who makes an offer, or a bidder
Performance-Based definition - CORRECT ANSWER -o Performance- Based
Acquisition= all aspects are structured around the desired outcome of the requirement
o Performance-Based Contract= uses measureable performance standards and quality assurance
plans
Pricing definition - CORRECT ANSWER -process of establishing a reasonable amount to
be paid for services and must include:
o Cost
o Profit margin
Purchase Order definition - CORRECT ANSWER -an offer by the government to buy
supplies or services using simplified acquisition procedures
Simplified Acquisition definition - CORRECT ANSWER -less rigorous method for
entering into low dollar threshold contracts
