CFCM STUDY GUIDE FULL TEST
New Exam Update Solved Solution Guide
with Actual Questions and Answers
1. Which of the following statements is NOT true?
a. The government encourages the maximum practicable commercial use of
inventions made under government contracts.
b. The government recognizes rights in data developed at private expense and
limits its demands for delivery of that data.
c. The government requires contractors to obtain permission from copyright
owners before including copyrighted works owned by others in data to be
delivered to the government.
d. Generally, the government will refuse to award a contract on the grounds that
the prospective contractor may infringe a patent.
Answer: d. Generally, the government will refuse to award a contract on the
grounds that the prospective contractor may infringe a patent.
Explanation: According to FAR 27.102, the government typically does not refuse
to award a contract solely because of potential patent infringement; instead, it
manages patent rights through licensing and other provisions.
2. Performance and payment bonds are required or may be required for:
a. Construction contracts and services and supply contracts exceeding $2,000.
b. Construction contracts exceeding $150,000.
c. Any contract for services.
d. Construction contracts exceeding $150,000 and services and supply contracts
exceeding the SAT when necessary to protect the government's interests.
Answer: d. Construction contracts exceeding $150,000 and services and supply
,contracts exceeding the SAT when necessary to protect the government's
interests.
Explanation: FAR 28.102-1(a), 28.103-1(a), and 28.103-2(a) specify bonding
requirements for these thresholds.
3. Cost Accounting Standards Board rules and regulations apply to:
a. Negotiated contracts and subcontracts.
b. Sealed bid contracts.
c. Contracts with small business concerns.
d. Bridge contracts.
Answer: a. Negotiated contracts and subcontracts.
Explanation: FAR 30.000 indicates CAS applies primarily to negotiated contracts
and subcontracts.
4. The head of the agency may waive the applicability of CAS for a particular
contract or subcontract when:
a. The contract or subcontract is less than $50 million, primarily engaged in
commercial items, with no CAS-covered contracts.
b. The contract or subcontract is less than $15 million, primarily engaged in
commercial items, with no CAS-covered contracts.
c. The contract or subcontract is less than $7.5 million, primarily engaged in
commercial items.
d. The contract or subcontract is less than $5 million, primarily engaged in
commercial items, with no CAS-covered contracts.
Answer: b. The contract or subcontract is less than $15 million, primarily engaged
in commercial items, with no CAS-covered contracts.
Explanation: FAR 30.201-5 provides this waiver threshold.
,5. Which of the following statements about advance agreements is NOT true?
a. Advance agreements may only be negotiated with a particular contractor for a
single contract.
b. Advance agreements may be negotiated either before or during a contract.
c. The agreement must be in writing.
d. The agreements must be incorporated into applicable current and future
contracts.
Answer: a. Advance agreements may only be negotiated with a particular
contractor for a single contract.
Explanation: FAR 31.109 states advance agreements can cover multiple contracts,
not just one.
6. A cost is reasonable if, in its nature and amount, it does not exceed that
which:
a. Would be incurred by a prudent person in the conduct of competitive business.
b. Would be accrued by a prudent person in the conduct of competitive business.
c. Is determined to be allowable by the CO.
d. Is determined to be allocable by the CO.
Answer: a. Would be incurred by a prudent person in the conduct of competitive
business.
Explanation: FAR 31.201-3 defines reasonableness based on what a prudent
person would do.
7. What definition best describes alternative dispute resolution (ADR)?
a. Procedures used to resolve issues in controversy.
b. Procedures voluntarily used to resolve issues in controversy.
c. Procedures used for asserting and resolving claims.
d. Procedures voluntarily used for asserting and resolving claims.
, Answer: b. Procedures voluntarily used to resolve issues in controversy.
Explanation: FAR 33.214 emphasizes ADR as voluntary, non-adversarial methods
for dispute resolution.
8. The government's policy is to try to resolve all contractual issues in
controversy by:
a. Mutual agreement at the CO's level.
b. Bilateral agreement at the CO's level.
c. Mutual agreement at a level above the CO.
d. Unilateral agreement at the CO's level.
Answer: a. Mutual agreement at the CO's level.
Explanation: FAR 33.204 promotes resolution at the contracting officer level
whenever possible.
9. After receiving the GAO's written notice that a protest has been filed, an
agency must give notice:
a. To the contractor or all parties who appear to have a reasonable prospect of
receiving an award.
b. Only to the prime contractor performing the work.
c. To all parties who appear to have a reasonable prospect of receiving award and
begin preparing necessary information.
d. Through a government-wide point of entry (GPE).
Answer: a. To the contractor or all parties who appear to have a reasonable
prospect of receiving an award.
Explanation: FAR 33.104 requires notifying interested parties upon protest
receipt.
10. Does a $75,000 claim resulting from a reduction of $350,000 and an increase
of $275,000 require certification?
New Exam Update Solved Solution Guide
with Actual Questions and Answers
1. Which of the following statements is NOT true?
a. The government encourages the maximum practicable commercial use of
inventions made under government contracts.
b. The government recognizes rights in data developed at private expense and
limits its demands for delivery of that data.
c. The government requires contractors to obtain permission from copyright
owners before including copyrighted works owned by others in data to be
delivered to the government.
d. Generally, the government will refuse to award a contract on the grounds that
the prospective contractor may infringe a patent.
Answer: d. Generally, the government will refuse to award a contract on the
grounds that the prospective contractor may infringe a patent.
Explanation: According to FAR 27.102, the government typically does not refuse
to award a contract solely because of potential patent infringement; instead, it
manages patent rights through licensing and other provisions.
2. Performance and payment bonds are required or may be required for:
a. Construction contracts and services and supply contracts exceeding $2,000.
b. Construction contracts exceeding $150,000.
c. Any contract for services.
d. Construction contracts exceeding $150,000 and services and supply contracts
exceeding the SAT when necessary to protect the government's interests.
Answer: d. Construction contracts exceeding $150,000 and services and supply
,contracts exceeding the SAT when necessary to protect the government's
interests.
Explanation: FAR 28.102-1(a), 28.103-1(a), and 28.103-2(a) specify bonding
requirements for these thresholds.
3. Cost Accounting Standards Board rules and regulations apply to:
a. Negotiated contracts and subcontracts.
b. Sealed bid contracts.
c. Contracts with small business concerns.
d. Bridge contracts.
Answer: a. Negotiated contracts and subcontracts.
Explanation: FAR 30.000 indicates CAS applies primarily to negotiated contracts
and subcontracts.
4. The head of the agency may waive the applicability of CAS for a particular
contract or subcontract when:
a. The contract or subcontract is less than $50 million, primarily engaged in
commercial items, with no CAS-covered contracts.
b. The contract or subcontract is less than $15 million, primarily engaged in
commercial items, with no CAS-covered contracts.
c. The contract or subcontract is less than $7.5 million, primarily engaged in
commercial items.
d. The contract or subcontract is less than $5 million, primarily engaged in
commercial items, with no CAS-covered contracts.
Answer: b. The contract or subcontract is less than $15 million, primarily engaged
in commercial items, with no CAS-covered contracts.
Explanation: FAR 30.201-5 provides this waiver threshold.
,5. Which of the following statements about advance agreements is NOT true?
a. Advance agreements may only be negotiated with a particular contractor for a
single contract.
b. Advance agreements may be negotiated either before or during a contract.
c. The agreement must be in writing.
d. The agreements must be incorporated into applicable current and future
contracts.
Answer: a. Advance agreements may only be negotiated with a particular
contractor for a single contract.
Explanation: FAR 31.109 states advance agreements can cover multiple contracts,
not just one.
6. A cost is reasonable if, in its nature and amount, it does not exceed that
which:
a. Would be incurred by a prudent person in the conduct of competitive business.
b. Would be accrued by a prudent person in the conduct of competitive business.
c. Is determined to be allowable by the CO.
d. Is determined to be allocable by the CO.
Answer: a. Would be incurred by a prudent person in the conduct of competitive
business.
Explanation: FAR 31.201-3 defines reasonableness based on what a prudent
person would do.
7. What definition best describes alternative dispute resolution (ADR)?
a. Procedures used to resolve issues in controversy.
b. Procedures voluntarily used to resolve issues in controversy.
c. Procedures used for asserting and resolving claims.
d. Procedures voluntarily used for asserting and resolving claims.
, Answer: b. Procedures voluntarily used to resolve issues in controversy.
Explanation: FAR 33.214 emphasizes ADR as voluntary, non-adversarial methods
for dispute resolution.
8. The government's policy is to try to resolve all contractual issues in
controversy by:
a. Mutual agreement at the CO's level.
b. Bilateral agreement at the CO's level.
c. Mutual agreement at a level above the CO.
d. Unilateral agreement at the CO's level.
Answer: a. Mutual agreement at the CO's level.
Explanation: FAR 33.204 promotes resolution at the contracting officer level
whenever possible.
9. After receiving the GAO's written notice that a protest has been filed, an
agency must give notice:
a. To the contractor or all parties who appear to have a reasonable prospect of
receiving an award.
b. Only to the prime contractor performing the work.
c. To all parties who appear to have a reasonable prospect of receiving award and
begin preparing necessary information.
d. Through a government-wide point of entry (GPE).
Answer: a. To the contractor or all parties who appear to have a reasonable
prospect of receiving an award.
Explanation: FAR 33.104 requires notifying interested parties upon protest
receipt.
10. Does a $75,000 claim resulting from a reduction of $350,000 and an increase
of $275,000 require certification?
