, CDFM Module 3 Exam
2026/2027 Questions and
Verified Answers With
Rationale
Competency 1: The Defense Acquisition System
Q1. Which overarching directive governs the management of
all defense acquisition programs within the Department of
Defense, establishing a flexible, management framework of
milestone decisions and life-cycle phases?
A) DoD Instruction (DoDI) 5000.02 (Operation of the
Adaptive Acquisition Framework)
B) OMB Circular A-11
C) Federal Acquisition Regulation (FAR) Part 15
D) DoD Financial Management Regulation 7000.14-R
Answer: A) DoD Instruction (DoDI) 5000.02 (Operation of
the Adaptive Acquisition Framework)
Rationale: DoDI 5000.02, along with related DoD directives,
sets forth the policies and operational procedures for the
Adaptive Acquisition Framework (AAF), providing pathways
tailored to specific capability needs (such as major capability
acquisition, software acquisition, and urgent capability
acquisition).
,Q2. Under the Adaptive Acquisition Framework (AAF),
which pathway is specifically designed for rapid acquisition,
prototyping, and fielding of capabilities to address urgent
operational needs in less than two years?
A) Major Capability Acquisition Pathway
B) Urgent Capability Acquisition Pathway
C) Defense Business Systems Pathway
D) Software Acquisition Pathway
Answer: B) Urgent Capability Acquisition Pathway
Rationale: The Urgent Capability Acquisition pathway bypasses
traditional lengthy milestones to deliver capabilities to the
warfighter in response to urgent operational needs within
months rather than years.
Q3. What milestone decision point marks the formal
transition from the Technology Maturation and Risk
Reduction (TMRR) phase into the Engineering and
Manufacturing Development (EMD) phase?
A) Milestone A
B) Milestone B
C) Milestone C
D) Full-Rate Production Decision
Answer: B) Milestone B
Rationale: Milestone B authorizes entry into EMD, where the
system design is finalized, fabricated, and rigorously tested prior
to low-rate initial production.
, Q4. What formal baseline agreement between the Milestone
Decision Authority (MDA) and the Program Manager
establishes threshold and objective parameters for program
cost, schedule, and performance?
A) Acquisition Program Baseline (APB)
B) Program Objective Memorandum (POM)
C) Cost Analysis Requirements Description (CARD)
D) Source Selection Evaluation Plan
Answer: A) Acquisition Program Baseline (APB)
Rationale: The APB tracks program health. Breaching APB
cost, schedule, or performance thresholds triggers mandatory
reviews and statutory reporting (such as Nunn-McCurdy
notifications).
Q5. What major statutory threshold is triggered when a
Major Defense Acquisition Program (MDAP) experiences
unit cost growth exceeding 30% over the original baseline,
requiring a formal root-cause analysis and congressional
notification?
A) Clinger-Cohen Threshold
B) Nunn-McCurdy Critical Cost Growth Breach
C) Antideficiency Act Trigger
D) Bona Fide Needs Violation
Answer: B) Nunn-McCurdy Critical Cost Growth Breach
Rationale: The Nunn-McCurdy Act mandates stringent
congressional reporting and review procedures if an MDAP
2026/2027 Questions and
Verified Answers With
Rationale
Competency 1: The Defense Acquisition System
Q1. Which overarching directive governs the management of
all defense acquisition programs within the Department of
Defense, establishing a flexible, management framework of
milestone decisions and life-cycle phases?
A) DoD Instruction (DoDI) 5000.02 (Operation of the
Adaptive Acquisition Framework)
B) OMB Circular A-11
C) Federal Acquisition Regulation (FAR) Part 15
D) DoD Financial Management Regulation 7000.14-R
Answer: A) DoD Instruction (DoDI) 5000.02 (Operation of
the Adaptive Acquisition Framework)
Rationale: DoDI 5000.02, along with related DoD directives,
sets forth the policies and operational procedures for the
Adaptive Acquisition Framework (AAF), providing pathways
tailored to specific capability needs (such as major capability
acquisition, software acquisition, and urgent capability
acquisition).
,Q2. Under the Adaptive Acquisition Framework (AAF),
which pathway is specifically designed for rapid acquisition,
prototyping, and fielding of capabilities to address urgent
operational needs in less than two years?
A) Major Capability Acquisition Pathway
B) Urgent Capability Acquisition Pathway
C) Defense Business Systems Pathway
D) Software Acquisition Pathway
Answer: B) Urgent Capability Acquisition Pathway
Rationale: The Urgent Capability Acquisition pathway bypasses
traditional lengthy milestones to deliver capabilities to the
warfighter in response to urgent operational needs within
months rather than years.
Q3. What milestone decision point marks the formal
transition from the Technology Maturation and Risk
Reduction (TMRR) phase into the Engineering and
Manufacturing Development (EMD) phase?
A) Milestone A
B) Milestone B
C) Milestone C
D) Full-Rate Production Decision
Answer: B) Milestone B
Rationale: Milestone B authorizes entry into EMD, where the
system design is finalized, fabricated, and rigorously tested prior
to low-rate initial production.
, Q4. What formal baseline agreement between the Milestone
Decision Authority (MDA) and the Program Manager
establishes threshold and objective parameters for program
cost, schedule, and performance?
A) Acquisition Program Baseline (APB)
B) Program Objective Memorandum (POM)
C) Cost Analysis Requirements Description (CARD)
D) Source Selection Evaluation Plan
Answer: A) Acquisition Program Baseline (APB)
Rationale: The APB tracks program health. Breaching APB
cost, schedule, or performance thresholds triggers mandatory
reviews and statutory reporting (such as Nunn-McCurdy
notifications).
Q5. What major statutory threshold is triggered when a
Major Defense Acquisition Program (MDAP) experiences
unit cost growth exceeding 30% over the original baseline,
requiring a formal root-cause analysis and congressional
notification?
A) Clinger-Cohen Threshold
B) Nunn-McCurdy Critical Cost Growth Breach
C) Antideficiency Act Trigger
D) Bona Fide Needs Violation
Answer: B) Nunn-McCurdy Critical Cost Growth Breach
Rationale: The Nunn-McCurdy Act mandates stringent
congressional reporting and review procedures if an MDAP
