CFCM Exam Practice Test with 100% correct answers 2024

What is a Certificate of Competency - answer-A certificate issued by the SBA stating that the holder is responsible for the purpose of receiving and performing a specific Government contract Except as specifically permitted by executive agencies, the fast payment procedure may not be used for individual purchasing instruments exceeding what amount? - answer-$35,000 What can a contractor access online at ? - answer-The government wide point of entry Size Standards - answer-FAR 19.102(b)(3): "(Small business size standards are applied by) Specifying the size standard in the solicitation so that offerors can appropriately represent themselves as small or large" When may an agency be required to use simplified acquisition procedures? - answer-When the value of the contract is $100,000 How is the publication of a paid advertisement in a newspaper authorized? - answer-FAR 5.502 "Authority to approve the publication of paid advertisements in the newspaper is vested in the head of each agency. This approval authority may be delegated" Must be a written authorization from the head of the agency. The unilateral right in a contract by which the government may elect to purchase additional supplies or services called for by the contract is called what? - answer-Option If a prospective contractor is qualified and eligible to receive award, but lacks adequate financial resources to perform the contract, can the contractor be determined responsible? - answer-If the contractor presents evidence of the ability to obtain adequate financial resources, the contractor may be determined responsible. This is not a method for simplified acquisition - answer-Advanced Agreement For a contract exceeding the simplified acquisition threshold, an offeror (other than an individual) that does not agree to provide a drug-free workplace is what? - answer-Not considered a responsible source What law specifies how agencies shall make their records available upon public request, imposes strict time standards for agency responses, and exempts certain records from public disclosure - answer-Freedom of Information Act Who is responsible for printing, publishing, and distributing the Federal Acquisition Regulation? - answer-The FAR Secretariat, as authorized by GSA Which FAR part prescribes policies and procedures unique to the acquisition of commercial items? - answer-FAR Part 12 Which of the following is necessarily rue about a cost that is assignable or chargeable to one of the most cost objectives on the basis of relative benefits received or other equitable relationship? - answer-The cost is allocable A defense subcontractor provides a gift of vehicles to a prime contractor, and in return the prime contractor awards the subcontractor a valuable military subcontract. What will happen next? - answer-The prime contractor and the subcontractor are subject to civil and criminal penalties A mineral required for production in performance of a contract is not mined in the United States, but can be acquired from another country. How does the Buy American statute apply in this case? - answer-The mineral can be acquired from a foreign source if it is in the best interest of the Government. Which contract types allow for disallowing costs during the course of performance, after the costa have been incurred? - answer-Cost reimbursement contracts, the cost-reimbursement portion of fixed-price contracts, letter contracts that provide for reimbursement of costs, and time and material and labor-hour contracts provide for disallowing costs during the course of performance after the costs have been incurred. When it is in the best interest of the Government to consider award to other than the highest technically rated offeror, which of the following should the Government use to select the source? - answer-A tradeoff process The obtaining of opinions, special knowledge, or skills from noted experts would be included in what kind of service? - answer-Advisory and assistance service Who is authorized to execute contract modifications on behalf of the Government - answer-Only a contracting officer acting within the scope of his or her authority Which FAR part prescribes policies and procedures for contracting for supplies and services under the Federal Supply Schedule program - answer-FAR 38 If hazardous materials are expected to be used during contract performance, what must the apparent successful offeror do prior to contract award? - answer-Furnish hazardous material data on a Material Safety Data Sheet A failure in estimating, accumulating, or reporting costs to comply with applicable cost accounting standards is called what? - answer-Noncompliance Who is authorized to sign a contract on behalf of the US? - answer-Only the Contracting Officer A cash fund of fixed amount established by an advance of funds, for disbursement in cash for relatively small amounts is called what? - answer-Imprest Fund The Governments policy is to try to resolve all contractual issues in controversy by what? - answer-Mutual agreement at the contracting officers level Which of the following does not justify the use of emergency acquisition flexibilities? - answer-The acquisition is to replace Government property that was involved in a crime. Which function must be delegated to a CAO if the agency has not designated the CO to perform it? - answer-Negotiate forward price agreements Which of the following is not an example of information technology? - answer-A buildings digital thermostat Assuming no other exceptions exist, in which of the following cases shall certified cost or pricing data be obtained? - answer-A negotiated procurement is expected to exceed $750,000 This is a technique used to promote the early exchange of information with industry. - answer-Market Research When evaluating a proposal, what rating method is an agency required to use to assess the evaluation factors specified in the solicitation? - answer-FAR 15.305(a): "An agency shall evaluate competitive proposals and then assess their relative qualities solely on the factors and subfactors specified in the solicitation. Evaluations may be conducted using any rating method or combination of methods, including color or adjectival ratings, numerical weights, and ordinal rankings." Standard Form 44 is also known as what? - answer-FAR 13.306: "The SF 44, Purchase Order—Invoice—Voucher, is a multipurpose pocket-size purchase order form designed primarily for on-the-spot, over-the-counter purchases of supplies and nonpersonal services while away from the purchasing office or at isolated activities." Under FAR Part 5, contract actions must be synopsized in the GPE if they exceed what amount? - answer-$25,000 In which FAR Part is the Uniform Contract Format outlined? - answer-Part 15 What is required when a change order is not forward priced? - answer-Documentation of the change order and an agreement to an equitable adjustment in contract terms A contractor infringes on a copyright with the authorization of the Government. What remedy is available to the copyright holder? - answer-FAR 27.201-1(a): "Pursuant to 28 U.S.C. 1498, the exclusive remedy for patent or copyright infringement by or on behalf of the Government is a suit for monetary damages against the Government in the Court of Federal Claims. There is no injunctive relief available, and there is no direct cause of action against a contractor that is infringing a patent or copyright with the authorization or consent of the Government (e.g., while performing a contract)." In the FAR citation "FAR 25.1102(a)(2)," what is referred to by the number 11? - answer-Subpart 25.11 What contract type is generally used to acquire construction? - answer-FAR 36.207(a): "Generally, firm-fixed-price contracts shall be used to acquire construction." Which of the following would be necessary for sealed bidding to be appropriate? - answer-The award will be made on the basis of price and price-related factors Which of the following is true about acquisitions for which the World Trade Organization Government Procurement Agreement applies? - answer-The contracting officer must not include technical requirements in solicitations solely to preclude the acquisition of eligible products Who is generally responsible for granting approval of a contractor's purchasing system? - answer-FAR 44.305-1: "The cognizant ACO is responsible for granting, withholding, or withdrawing approval of a contractor's purchasing system." The administrative contracting officer The process of establishing a reasonable amount to be paid for supplies or services is called what? - answer-Pricing What is the term for the amount of money specified in a bond as the maximum payment for which the surety is obligated? - answer-Penal amount Which of the following is a true statement about the role of the Acquisition Team? - answer-The procurement policies and procedures that are used by members of the Acquisition Team are outlined in the FAR When is consent to subcontract generally required? - answer-When the contractor has an approved purchasing system Which of the following acquisitions may not use the acquisition procedures of FAR Part 12? - answer-A purchase made directly from another Federal agency In general, which of the following methods of contract financing is least preferred by the Government? - answer-Advance payment Which of the following is the Government permitted to do after receipt of proposals? - answer-Make an award without holding discussions, if the solicitation says this is intended Which of the following public relations or advertising costs would be unallowable? - answer-Hosting a ceremony to announce a new product A contract that is awarded using other than sealed bidding procedures is what? - answer-A negotiated contract Generally, when shall acquisitions of supplies or services be automatically reserved exclusively for small business concerns and set aside for small businesses? - answer-When the anticipated dollar value exceeds $3,500 but does not exceed $150,000 What is the minimum amount of information that a request for proposals for competitive acquisitions shall contain? - answer-FAR 15.203(a): "RFPs for competitive acquisitions shall, at a minimum, describe the Government's requirement; Anticipated terms and conditions that will apply to the contract; Information required to be in the offeror's proposal; and Factors and significant subfactors that will be used to evaluate the proposal and their relative importance." When is posting an RFQ on e-Buy required? - answer-When the order contains brand-name specifications In an acquisition plan, which of the following is a responsibility of the agency head (or the agency head's designee)? - answer-Promoting and providing for full and open competition For agencies delegated authority to establish new Federal Supply Schedules, what must the contracting officer do prior to establishing such a contract? - answer-Obtain approval from the GSA Federal Supply Service A contract for demolition of a public building, without any further construction work, is subject to which of the following? - answer-Only the Service Contract Labor Standards statute What is the difference between a personal services contract and a nonpersonal services contract? - answer-Under a personal services contract, the personnel rendering the services appear to be subject to government supervision and control A legal instrument in which a contractor guarantees performance of the contract, the obligations under the contract are assumed by a successor in interest, and the government recognizes the transfer of the contract and related assets is called what? - answer-Novation agreement Which of the following contract types would be most appropriate for acquisition of a commercial item if the contract was not awarded using competitive procedures? - answer-Firm-fixed-price When requesting information from potential sources in market research, which of the following should agencies do? - answer-Request the minimum amount of information necessary Except for copyrighted works, what rights does the Government acquire in data first produced in the performance of a contract? - answer-Unlimited rights What is a CPSR and what is its purpose? - answer-Contractor Purchasing System Review; to evaluate the efficiency and effectiveness with which the contractor spends Government funds Which of the following is not a function of the General Services Administration? - answer-Managing schedule contracting for military items What is the purpose of first article testing and approval? - answer-To ensure that a contractor can furnish a product that conforms to all contract requirements for acceptance For research and development work performed under a cost-plus-fixed-fee contract, what is the maximum fee that may be negotiated? - answer-15 percent of the contract's estimated cost, excluding fee Which of the following is true about the priority of DPAS-rated order - answer-FAR 11.603(a): "There are two levels of priority for rated orders established by the DPAS, identified by the rating symbols "DO" and "DX". All DO rated orders have equal priority with each other and take preference over unrated orders. All DX rated orders have equal priority with each other and take preference over DO rated and unrated orders (see 15 CFR 700.11)." Which of the following is true about postaward notifications to offerors whose proposals were not selected for award - answer-The notice must be provided within three days of contract award, and shall not contain the cost breakdown of any other offeror To the maximum extent practicable, FAR Part 37 requires the use of what for acquisitions of services? - answer-Performance-based acquisition When should the contracting officer charge interest on the balance of an advance payment? - answer-For all contracts, except when interest is excluded by statute or agency procedures When a make-or-buy program is required of a contractor, how should major items be categorized? - answer-"Must make," "must buy," or "can either make or buy" Except with the approval of the head of the agency, in which of the following cases shall a contract for construction of a project not be awarded? - answer-The offeror is the firm that designed the project A contractor receives a refund relating to an allowable cost. What shall the contractor do with the applicable portion of the refund? - answer-The contractor may credit it to the Government either as a cost reduction or a cash refund Drawings submitted by a contractor to show the construction of a particular structure as actually completed under the contract are called what? - answer-Record drawings At the lowest level, who is directly responsible for reviewing an agency's contracting operations and identifying and reporting opportunities and actions taken to acquire commercial items to meet its needs? - answer-The agency advocate for competition Which of the following terms means a list of products that have been examined and tested, and have satisfied all applicable requirements? - answer-: Qualified products list A contractor transfers its right to be paid by the Government for contract performance to a trust company. What is this called? - answer-Assignment of a claim Which of the following is an inherently governmental function? - answer-Interviewing applicants for Federal employment What is buying-in? - answer-Submitting an offer below anticipated costs, expecting to increase the contract amount after award or to receive follow-on contracts at higher prices Which of the following is not a reason to use a liquidated damages clause in a solicitation? - answer-A negative performance incentive for timely delivery or performance is needed A contractor has made an invention under a Federal research and development contract. In which of the following cases may the contractor be required to assign title to the invention to the Government? - answer-The contractor does not have a place of business in the United States Except as authorized by law, what is the maximum term of contracts for services that are funded by annual appropriations? - answer-Until the end of the fiscal year of the appropriation If market research indicates that commercial or nondevelopmental items might not be available to satisfy agency needs, what shall the agency do? - answer-Reevaluate the need and determine whether the need can be restated to permit commercial or nondevelopmental items to satisfy the agency's need In which of the following cases may a time-and-materials contract be used? - answer-When it is not possible at the time of placing the contract to estimate the extent of the work To the maximum extent practicable, all contracts for the acquisition of commercial items shall include which clauses? - answer-Only those required to implement laws applicable to the acquisition of commercial items, or those determined to be consistent with customary commercial practice Which of the following is not a required element in a Broad Agency Announcement? - answer-An estimate of the level of effort required In which of the following cases may an agency consider an unsolicited proposal on a sole source basis? - answer-The proposal is for research, and justification and approval have been obtained Which FAR part specifies the definitions for words and terms that are to be used unless another FAR part provides a different definition for that part? - answer-Part 2 If the information collected is still current, accurate, and relevant, a contracting officer may use market research conducted up to how long before the award of a task or delivery order? - answer-18 Months Which of the following contract types provides a base fee plus an additional amount which is based on a judgmental evaluation by the Government of the quality of contract performance? - answer-Cost-plus-award fee What is the preferred method of transporting supplies for the Government? - answer-Commercial Carriers What is GSA Standard Form 30 (SF30)? - answer-Amendment of Solicitation/Modification of Contract A contractor under a construction contract provides the Government with a quantity of unit-priced items other than the quantity called for. Can the Government or the contractor demand an adjustment in the contract price? - answer-Yes, if the variation exceeds plus or minus 15 percent of the expected quantity What is the order of precedence among the 8(a) Program, HUBZone Program, Service-Disabled Veteran-Owned Small Business Procurement Program, and Women-Owned Small Business Program? - answer-FAR 19.203(a): "There is no order of precedence among the 8(a) Program (subpart 19.8), HUBZone Program (subpart 19.13), Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (subpart 19.14), or the Women-Owned Small Business (WOSB) Program (subpart 19.15)." The correct answer is: There is no order of precedence Which of the following contract modifications needs to be signed by both the contractor and the contracting officer? - answer-An agreement definitizing a letter contract Which contract type places maximum risk and full responsibility for all costs and resulting profit or loss on the contractor? - answer-: Firm-fixed-price Which of the following is a true statement about suspension and debarment? - answer-Debarment excludes a contractor from government contracting for a specified period, and suspension temporarily disqualifies a contractor from government contracting. What law governs the collection, maintenance, use, and dissemination of personally identifiable information about individuals that is maintained in systems of records by federal agencies? - answer-Privacy Act of 1974 Which of the following shall not be made available to a member of the public under the Freedom of Information Act - answer-A statement made by a contracting officer to a mediator to resolve a dispute A contractor's arrangement to pay contingent fees for soliciting or obtaining Government contracts is considered contrary to public policy. Which of the following statements explains why? - answer-Such arrangements may lead to attempted or actual exercise of improper influence Agencies are required to use the results of market research to determine - answer-The extent to which commercial items or non-development items could satisfy the need. What is the purpose of market research? - answer-Determining if commercial or non-developmental items are available to meet the government's needs or could be modified to meet them. The two levels of the Defense Priorities and Allocations System (DPAS) are - answer-DO and DX When should a Contracting Officer use the liquidated damages clause? - answer-When delivery or performance is so important that the government may reasonably expect to suffer damage and the extent or amount of damage is impossible to estimate accurately or prove. Implied warranty of merchantability means - answer-Items are reasonably fit for ordinary purposes for which such items are sold or used. The contracting officer must consider the potential impact on pricing, competition, and contract administration before using the ___________ clause. - answer-liquidated damages The commercial items acquired by the government must be - answer-of at least average, fair, or medium-grade quality. To the extent practicable, acquisition officials should define requirements in terms that enable and encourage offerors to supply what? - answer-Commercial items When contracting for commercial items, the contracting officer must establish price reasonableness in accordance with FAR Parts ________________. - answer-13, 14, & 15 Contracts for commercial items shall - answer-rely on the contractor's existing quality assurance systems. A Department of Commerce regulation in support of approved national defense, emergency preparedness, and energy programs is known as the - answer-Defense Priorities and Allocation System. Time of delivery/performance must be - answer-realistic and clearly stated within the solicitation. The correct order of priority (highest being first) for orders from contracts in support of the national defense: - answer-DX rated orders, DO rated orders, unrated orders The threshold for obtaining certified cost or pricing data is: - answer-: $750,000 A post-award debriefing of offerors shall NOT include which of the following: - answer-Commercial and financial information, including cost breakdowns, indirect cost rates, and similar information. At the conclusion of discussions, each offeror still in the competitive range shall be given an opportunity to: - answer-Submit a final proposal revision. Oral presentations by offerors: - answer-May substitute for, or augment, written information The statutory limit for experimental, developmental, or research work performed under a cost-plus-fixed-fee contract is - answer-15% Which of the following is considered an unsolicited proposal? - answer-An innovative and independent proposal written for the purpose of obtaining a contract with the government. A post-award debriefing should ideally occur within ____ days after receipt of the written request for a debriefing by the offeror. - answer-5 days Permitted exchanges of information with industry prior to receipt of proposals include all of the following - answer-a. Requests for Information (RFIs) b Site visits c. Pre-proposal conferences What is the Order of Precedence under the Uniform Contract Format? - answer-The Schedule - Contract Clauses - List of Documents, Exhibits, and other Attachments - Representations and Instructions A ___________ is the process of reviewing and evaluating individual cost elements of an offeror's proposal. - answer-Cost Analysis At a minimum, the Contracting Officer must use ________________ to determine whether the price is fair and reasonable when acquiring commercial items. - answer-price analysis Which FAR clause is required in the solicitation when contracting by negotiation and the government intends to award a contract without discussion? - answer-52.215-1 Instructions to Offerors The objective of source selection is to select the proposal that represents the _____________________. - answer-best value An offeror may request a post-award debriefing by submitting a written request for debriefing to the Contracting Officer within _____ days after receipt of a notice of contract award. - answer-3 days ____________ are used by the government to promote early exchanges of information with industry. - answer-Requests for Information (RFI) Post-award debriefings shall not include: - answer-The names of individuals providing an offeror's past performance reference information Which analytical technique shall be used to determine the probable cost of performance for each offeror under cost-reimbursement type contracts? - answer-Cost realism analysis Price means cost plus any ___________ applicable to the contract type. - answer-fee or profit This law provides that contracts in excess of $2,000 to which the US is a party for construction, alteration, or repair of public buildings within the US shall contain a clause that no laborer shall receive less than the prevailing wage rates as determined by the Secretary of Labor. - answer-Wage Rate Requirements statute This law states laborers and mechanics must be paid time and a half for overtime work (>40 hours/week)? - answer-Contract Work Hours and Safety Standards Act Service Contracts valued in excess of ___________ must contain mandatory provisions regarding minimum wage and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates. - answer-$2,500 Solicitations to perform contracts or contract modifications that are expected to exceed ___________ ($1M for construction) for which subcontracting possibilities exist, require the apparent successful offeror/bidder to submit an acceptable subcontracting plan prior to award. - answer-$700,000 Which agency establishes small business size standards on an industry-by-industry basis? - answer-Small Business Administration Who determines the appropriate NAICS code(s) and related small business size standard(s) that is/are included in solicitations? - answer-Contracting Officer The NAICS code(s) and related small business size standard(s) must be included in solicitations __________. - answer-$3,500 The requirement for small business set asides generally does not apply to purchases: - answer-$3,500 or less If a CO rejects the SBA's recommendations for set-asides and the SBA appeals the rejection: - answer-The acquisition is suspended pending the outcome of the appeal Which method is preferred to make a set-aside for small business determination? - answer-Unilateral determinations (made by the contracting officer) The act that addresses such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions and applies to supply contracts valued in excess of $15,000 is called: - answer-Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 In which of the following cases is a Research and Development contract most appropriate? - answer-When the work or methods cannot be precisely described in advance. What kind of contract directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply? - answer-Service Contract What provides federal agencies with a simplified process of acquiring commercial supplies and services in varying quantities while obtaining discounts associated with volume buying? - answer-Federal Supply Schedule. What is a market condition that exists when two or more contractors, acting independently, actively contend for the government's business in a manner that ensures that the government will be offered the lowest cost or price alternative or best technical design meeting its minimum needs? - answer-Effective Competition Generally, which type of contract shall be used to acquire construction? - answer-Firm-fixed-price ______________ means the lead agency responsible for managing, administering, or monitoring overall use of the FFRDC under a multiple sponsorship agreement. - answer-Primary Sponsor Which Act provides for minimum wages and fringe benefits as well as other conditions of work? - answer-: Service Contract Act When should agencies utilize modular contracting? - answer-To acquire major systems of information technology Reasonable risk taking is appropriate as long as risks are: - answer-Controlled and mitigated What is the preferred method for acquiring services? - answer-Performance-based acquisition Which of the following shall be used when the principle purpose of the transaction is to stimulate or support research and development for another public purpose? - answer-Grants or cooperative agreements An Independent Government Estimate of construction costs shall be prepared and furnished to the Contracting Officer for each proposed contract and contract modification anticipated to exceed: - answer-$150,000 After a Broad Agency Announcement, the primary basis for selecting proposals shall be: - answer-Technical basis, importance to agency programs, and fund availability Which type of construction contract should be used when the price for materials is likely to fluctuate with market conditions? - answer-Fixed-price contract with economic price adjustment Personnel rendering services who are not subject to the supervision and control usually prevailing in relationships between the government and its employees are performing under: - answer-Non-personal services agreement the DCAA is generally not be the responsible audit agency? - answer-Contracts with Educational Institutions An indirect cost rate established temporarily for interim reimbursement of incurred indirect costs and adjusted as necessary pending establishment of final indirect cost rates is called what? - answer-Billing Rate What are the two types of contract modifications? - answer-Unilateral and bilateral What shall the ACO use as a basis for granting, withholding, or withdrawing approval of the contractor's purchasing system? - answer-: Contractor purchasing system review If the contractor does not have an approved purchasing system, consent to subcontract is required for all of the following except which? - answer-Fixed-price contracts below the simplified acquisition threshold On what basis is Government property normally provided in performance of the contract under which it is authorized? - answer-Rent-Free Property acquired, fabricated, or otherwise provided by the contractor for performing a contract, and to which the Government has title, is called what? - answer-Contractor-acquired property Which of the following is true about a Government bill of lading? - answer-It is authorized and prepared by a Government official Which of the following is required for the Government to effect a no-cost settlement in lieu of a termination for convenience or default? - answer-There are no outstanding debts due to the Government The terminating contracting officer shall recommend the release of excess funds to the contracting officer within how long after the receipt of the termination notice? - answer-30 days