CFCM Study Guide with Complete
Solutions
_____________ may be used for emergency acquisitions when contract performance
must begin immediately.
a. Simplified acquisition procedures
b. Contract purchasing personnel.
c. Letter contracts
d. Government-wide purchase cards - ANSWER-c. Letter contracts
FAR 18.112
"Effective date" means the following:
a. It is the date specified by the offeror in its proposal.
b. For a supplemental agreement, it is the date set by the contracting officer.
c. For a modification issued as a confirming notice of termination for the convenience of
the government, it is the same as the effective date of the initial award of the contract.
d. For solicitation amendment, change order, or administrative change, it is the issue
date. - ANSWER-d. For solicitation amendment, change order, or administrative
change, it is the issue date.
FAR 43.101
A cash fund of a fixed amount established by an advance of funds, without charge to an
appropriation, from an agency finance or disbursing officer to a duly appointed cashier
for disbursement as needed from time to time in making payment in cash for relatively
small purchase is a/an
a. non-appropriated fund.
b. general fund.
c. imprest fund.
d. administrative commitment document - ANSWER-c. imprest fund.
FAR 13.001
A certificate of current cost or pricing data
a. does not constitute a representation as to the accuracy of the contractor's judgement
on the estimate of future costs or projections.
b. is required upon exercise of an option at the price established at contract award,
regardless of dollar value.
,c. is required for proposals in support of interim billing price adjustments valued in
excess of $500,000.
d. is no longer required. - ANSWER-a. does not constitute a representation as to the
accuracy of the contractor's judgement on the estimate of future costs or projections
FAR 15.406-2(b)
A CO's decision not to set aside an acquisition for HUBZone small business or service-
disables veteran-owned small business concerns when it is at or below the simplified
acquisition threshold
a. is permitted with the concurrance of the head of the contracting authority.
b. can be appealed by any small business pursuant to FAR 19.4.
c. is not subject to review under FAR 19.4.
d. must be documented to show that adequate competition exists - ANSWER-c. is not
subject to review under FAR 19.4.
FAR 13.003(b)(3)
A contract auditor is responsible for
a. auditing the policies and procedures between the various agencies.
b. auditing a specific agency's procedures and reporting any discrepancies to the
requesting activity.
c. submitting information and advice to the requesting activity on contractor's accounting
records and financial cost control system.
d. auditing whatever the government requests. - ANSWER-c. submitting information and
advice to the requesting activity on contractor's accounting records and financial cost
control system.
FAR 42.101
A contract should not normally be terminated for convenience but should be permitted
to run to completion when the price of the undelivered balance of the contract is less
than
a. $25,000.
b. $1,000.
c. $5,000
d. $10,000 - ANSWER-c. $5,000
FAR 49.101(c)
A contract that provides for upward and downward revision of the stated contract price
upon the occurence of specified contingencies is referred to as a
,a. fixed-price contract with economic price adjustment.
b. fixed-price incentive contract.
c. fixed-price with prospective redetermination contract.
d. fixed-ceiling-price contract with retroactive price determination. - ANSWER-a. fixed-
price contract with economic price adjustment.
FAR 16.203
A contract with a corporation shall be signed
a. by the chief financial officer.
b. by the head of the contracts department.
c. in the corporate name, followed by the word "by" and the signature and title of the
person authorized to sign.
d. by the chief executive officer followed by the word "by" and the signature and title of
the person authorized to bind the corporation. - ANSWER-c. in the corporate name,
followed by the word "by" and the signature and title of the person authorized to sign.
FAR 4.102
A contractor is awarded four seperate contracts on the same day.
i. One contract is rated "DO" and has a final delivery date (FDD) in 60 days.
ii. Another contract is rated "DX" and has an FDD in 40 days.
iii. Another contract is rated "DO" and has an FDD in 10 days.
iv. The fourth contract is unrated, and has an FDD in 15 days.
What is the order of priority on the contracts?
a. iv, iii, i, ii
b. ii, iii, i, iv
c. ii, iii, iv, i
d. iii, iv, ii, i - ANSWER-b. ii, iii, i, iv
FAR 11.603(a)
A contractor's arrangements to pay contingent fees for soliciting government contracts
have long been considered contrary to public policy because
a. they discourage competition.
b. they may lead to exercise of improper influence.
c. they result in excessive overhead costs.
d. accountability of costs is difficult to track. - ANSWER-b. they may lead to exercise of
improper influence.
FAR 3.402
, A cost is reasonable if, in its nature and amount, it does not exceed that which would be
a. incurred by a prudent person in the conduct of competitive business.
b. accrued by a prudent person in the conduct of competitive business.
c. determined to be allowable by the CO.
d. determined to be allocable by the CO. - ANSWER-a. incurred by a prudent person in
the conduct of competitive business.
FAR 31.201-3
A cost-reimbursement contract that provides for an initially negotiated fee to be adjusted
later by a formula based on the relationship of total allowable costs to total target costs
is known as a
a. cost-plus-award-fee contract.
b. cost-plus-incentive-fee contract.
c. cost-sharing contract.
d. cost-plus-fixed-fee contract. - ANSWER-b. cost-plus-incentive-fee contract.
FAR 16.405-1
A form of written approval signed by an authorized official that is required by statute or
regulation as a prerequisite to taking certain contract actions is defined as a
a. ratification
b. determination and findings
c. contracting officer's final decision
d. waiver - ANSWER-b. determination and findings
FAR 1.701
A latent defect is a defect that
a. exists at the time of acceptance and could be discovered by a reasonable
inspections.
b. exists at the time of delivery.
c. exists at the time of acceptance and cannot be discovered by a reasonable
inspections.
d. is discovered by the contractor's quality inspector. - ANSWER-c. exists at the time of
acceptance and cannot be discovered by a reasonable inspections.
FAR 2.101, 46.101
A negotiated contract is
Solutions
_____________ may be used for emergency acquisitions when contract performance
must begin immediately.
a. Simplified acquisition procedures
b. Contract purchasing personnel.
c. Letter contracts
d. Government-wide purchase cards - ANSWER-c. Letter contracts
FAR 18.112
"Effective date" means the following:
a. It is the date specified by the offeror in its proposal.
b. For a supplemental agreement, it is the date set by the contracting officer.
c. For a modification issued as a confirming notice of termination for the convenience of
the government, it is the same as the effective date of the initial award of the contract.
d. For solicitation amendment, change order, or administrative change, it is the issue
date. - ANSWER-d. For solicitation amendment, change order, or administrative
change, it is the issue date.
FAR 43.101
A cash fund of a fixed amount established by an advance of funds, without charge to an
appropriation, from an agency finance or disbursing officer to a duly appointed cashier
for disbursement as needed from time to time in making payment in cash for relatively
small purchase is a/an
a. non-appropriated fund.
b. general fund.
c. imprest fund.
d. administrative commitment document - ANSWER-c. imprest fund.
FAR 13.001
A certificate of current cost or pricing data
a. does not constitute a representation as to the accuracy of the contractor's judgement
on the estimate of future costs or projections.
b. is required upon exercise of an option at the price established at contract award,
regardless of dollar value.
,c. is required for proposals in support of interim billing price adjustments valued in
excess of $500,000.
d. is no longer required. - ANSWER-a. does not constitute a representation as to the
accuracy of the contractor's judgement on the estimate of future costs or projections
FAR 15.406-2(b)
A CO's decision not to set aside an acquisition for HUBZone small business or service-
disables veteran-owned small business concerns when it is at or below the simplified
acquisition threshold
a. is permitted with the concurrance of the head of the contracting authority.
b. can be appealed by any small business pursuant to FAR 19.4.
c. is not subject to review under FAR 19.4.
d. must be documented to show that adequate competition exists - ANSWER-c. is not
subject to review under FAR 19.4.
FAR 13.003(b)(3)
A contract auditor is responsible for
a. auditing the policies and procedures between the various agencies.
b. auditing a specific agency's procedures and reporting any discrepancies to the
requesting activity.
c. submitting information and advice to the requesting activity on contractor's accounting
records and financial cost control system.
d. auditing whatever the government requests. - ANSWER-c. submitting information and
advice to the requesting activity on contractor's accounting records and financial cost
control system.
FAR 42.101
A contract should not normally be terminated for convenience but should be permitted
to run to completion when the price of the undelivered balance of the contract is less
than
a. $25,000.
b. $1,000.
c. $5,000
d. $10,000 - ANSWER-c. $5,000
FAR 49.101(c)
A contract that provides for upward and downward revision of the stated contract price
upon the occurence of specified contingencies is referred to as a
,a. fixed-price contract with economic price adjustment.
b. fixed-price incentive contract.
c. fixed-price with prospective redetermination contract.
d. fixed-ceiling-price contract with retroactive price determination. - ANSWER-a. fixed-
price contract with economic price adjustment.
FAR 16.203
A contract with a corporation shall be signed
a. by the chief financial officer.
b. by the head of the contracts department.
c. in the corporate name, followed by the word "by" and the signature and title of the
person authorized to sign.
d. by the chief executive officer followed by the word "by" and the signature and title of
the person authorized to bind the corporation. - ANSWER-c. in the corporate name,
followed by the word "by" and the signature and title of the person authorized to sign.
FAR 4.102
A contractor is awarded four seperate contracts on the same day.
i. One contract is rated "DO" and has a final delivery date (FDD) in 60 days.
ii. Another contract is rated "DX" and has an FDD in 40 days.
iii. Another contract is rated "DO" and has an FDD in 10 days.
iv. The fourth contract is unrated, and has an FDD in 15 days.
What is the order of priority on the contracts?
a. iv, iii, i, ii
b. ii, iii, i, iv
c. ii, iii, iv, i
d. iii, iv, ii, i - ANSWER-b. ii, iii, i, iv
FAR 11.603(a)
A contractor's arrangements to pay contingent fees for soliciting government contracts
have long been considered contrary to public policy because
a. they discourage competition.
b. they may lead to exercise of improper influence.
c. they result in excessive overhead costs.
d. accountability of costs is difficult to track. - ANSWER-b. they may lead to exercise of
improper influence.
FAR 3.402
, A cost is reasonable if, in its nature and amount, it does not exceed that which would be
a. incurred by a prudent person in the conduct of competitive business.
b. accrued by a prudent person in the conduct of competitive business.
c. determined to be allowable by the CO.
d. determined to be allocable by the CO. - ANSWER-a. incurred by a prudent person in
the conduct of competitive business.
FAR 31.201-3
A cost-reimbursement contract that provides for an initially negotiated fee to be adjusted
later by a formula based on the relationship of total allowable costs to total target costs
is known as a
a. cost-plus-award-fee contract.
b. cost-plus-incentive-fee contract.
c. cost-sharing contract.
d. cost-plus-fixed-fee contract. - ANSWER-b. cost-plus-incentive-fee contract.
FAR 16.405-1
A form of written approval signed by an authorized official that is required by statute or
regulation as a prerequisite to taking certain contract actions is defined as a
a. ratification
b. determination and findings
c. contracting officer's final decision
d. waiver - ANSWER-b. determination and findings
FAR 1.701
A latent defect is a defect that
a. exists at the time of acceptance and could be discovered by a reasonable
inspections.
b. exists at the time of delivery.
c. exists at the time of acceptance and cannot be discovered by a reasonable
inspections.
d. is discovered by the contractor's quality inspector. - ANSWER-c. exists at the time of
acceptance and cannot be discovered by a reasonable inspections.
FAR 2.101, 46.101
A negotiated contract is
