CFCM EXAM PREP ACTUAL
Questions and Verified
Answers
1. How often are statutory acquisition-related dollar thresholds in the FAR
adjusted for inflation?
a) Annually
b) Bi-annually
c) Every five years
d) Only as required
Correct Answer: c) Every five years
Explanation: FAR 1.109 specifies that statutory acquisition thresholds are adjusted
for inflation every five years to account for economic changes.
2. 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) The Contracting Officer's Final Decision
d) A waiver
Correct Answer: b) Determination and Findings
Explanation: FAR 1.701 defines "Determination and Findings" as the written
approval required for certain actions, serving as official documentation.
,3. Contracting officers below the level of _______________ shall be selected and
appointed.
a) Cabinet secretary
b) Director of contracting
c) A flag officer or member of the Senior Executive Service
d) A head of contracting activity
Correct Answer: d) A head of contracting activity
Explanation: FAR 1.601 states that contracting officers below the head of a
contracting activity are appointed by that official.
4. The simplified acquisition threshold for any contract supporting contingency
operations outside the U.S. is:
a) $150,000
b) $300,000
c) $1 million
d) $1.5 million
Correct Answer: c) $1 million
Explanation: FAR 2.101 clarifies that for contingency operations outside the U.S.,
the simplified acquisition threshold is increased to $1 million.
5. Which of the following qualifies as a commercial item?
a) A nondevelopmental item developed exclusively at private expense and sold in
substantial quantities on a competitive basis to multiple state and local
governments
b) An item evolved from an item not sold to the general public
c) A commercial item with modifications not available in the commercial
marketplace
d) A nondevelopment item used exclusively for governmental purposes
,Correct Answer: a) A nondevelopmental item developed exclusively at private
expense and sold in substantial quantities on a competitive basis to multiple state
and local governments
Explanation: FAR 2.101 defines commercial items, including nondevelopmental
items developed at private expense and sold broadly in the market.
6. The process of consolidating two or more requirements, previously provided
under separate smaller contracts, into a single solicitation is called:
a) Combining
b) Consolidating
c) Bundling
d) Mixing
Correct Answer: c) Bundling
Explanation: FAR 2.101 refers to "bundling" as the practice of combining
requirements into a single solicitation.
7. Which of the following are included in the definition of "contracts"?
a) Awards and notices of awards and grants
b) Letter contracts and cooperative agreements
c) Letter contracts and job orders issued under basic ordering agreements
d) Blanket purchase agreements and imprest funds
Correct Answer: c) Letter contracts and job orders issued under basic ordering
agreements
Explanation: FAR 2.101 specifies that contracts include letter contracts and job
orders under basic ordering agreements.
8. The government can minimize the opportunity for buying-in by using:
a) Simplified acquisition procedures
b) Priced options, amortization of nonrecurring costs, and simplified acquisition
, procedures
c) Simplified acquisition procedures, costs, and multiyear contracting
d) Multiyear contracting, priced options, and amortization of nonrecurring costs
Correct Answer: d) Multiyear contracting, priced options, and amortization of
nonrecurring costs
Explanation: FAR 3.501-2 emphasizes these techniques to reduce buying-in
opportunities.
9. Contractor arrangements to pay contingent fees for soliciting government
contracts are considered contrary to public policy because:
a) They discourage competition
b) They may lead to improper influence
c) They result in excessive overhead costs
d) Cost accountability is difficult to track
Correct Answer: b) They may lead to improper influence
Explanation: FAR 3.402 explains that such arrangements can result in attempted
or actual improper influence.
10. 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 "by" and the signature and title of an
authorized individual
d) By the chief executive officer
Correct Answer: c) In the corporate name, followed by "by" and the signature and
title of an authorized individual
Explanation: FAR 4.102 details that signatures must be in the corporate name
with authorized signatory.
Questions and Verified
Answers
1. How often are statutory acquisition-related dollar thresholds in the FAR
adjusted for inflation?
a) Annually
b) Bi-annually
c) Every five years
d) Only as required
Correct Answer: c) Every five years
Explanation: FAR 1.109 specifies that statutory acquisition thresholds are adjusted
for inflation every five years to account for economic changes.
2. 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) The Contracting Officer's Final Decision
d) A waiver
Correct Answer: b) Determination and Findings
Explanation: FAR 1.701 defines "Determination and Findings" as the written
approval required for certain actions, serving as official documentation.
,3. Contracting officers below the level of _______________ shall be selected and
appointed.
a) Cabinet secretary
b) Director of contracting
c) A flag officer or member of the Senior Executive Service
d) A head of contracting activity
Correct Answer: d) A head of contracting activity
Explanation: FAR 1.601 states that contracting officers below the head of a
contracting activity are appointed by that official.
4. The simplified acquisition threshold for any contract supporting contingency
operations outside the U.S. is:
a) $150,000
b) $300,000
c) $1 million
d) $1.5 million
Correct Answer: c) $1 million
Explanation: FAR 2.101 clarifies that for contingency operations outside the U.S.,
the simplified acquisition threshold is increased to $1 million.
5. Which of the following qualifies as a commercial item?
a) A nondevelopmental item developed exclusively at private expense and sold in
substantial quantities on a competitive basis to multiple state and local
governments
b) An item evolved from an item not sold to the general public
c) A commercial item with modifications not available in the commercial
marketplace
d) A nondevelopment item used exclusively for governmental purposes
,Correct Answer: a) A nondevelopmental item developed exclusively at private
expense and sold in substantial quantities on a competitive basis to multiple state
and local governments
Explanation: FAR 2.101 defines commercial items, including nondevelopmental
items developed at private expense and sold broadly in the market.
6. The process of consolidating two or more requirements, previously provided
under separate smaller contracts, into a single solicitation is called:
a) Combining
b) Consolidating
c) Bundling
d) Mixing
Correct Answer: c) Bundling
Explanation: FAR 2.101 refers to "bundling" as the practice of combining
requirements into a single solicitation.
7. Which of the following are included in the definition of "contracts"?
a) Awards and notices of awards and grants
b) Letter contracts and cooperative agreements
c) Letter contracts and job orders issued under basic ordering agreements
d) Blanket purchase agreements and imprest funds
Correct Answer: c) Letter contracts and job orders issued under basic ordering
agreements
Explanation: FAR 2.101 specifies that contracts include letter contracts and job
orders under basic ordering agreements.
8. The government can minimize the opportunity for buying-in by using:
a) Simplified acquisition procedures
b) Priced options, amortization of nonrecurring costs, and simplified acquisition
, procedures
c) Simplified acquisition procedures, costs, and multiyear contracting
d) Multiyear contracting, priced options, and amortization of nonrecurring costs
Correct Answer: d) Multiyear contracting, priced options, and amortization of
nonrecurring costs
Explanation: FAR 3.501-2 emphasizes these techniques to reduce buying-in
opportunities.
9. Contractor arrangements to pay contingent fees for soliciting government
contracts are considered contrary to public policy because:
a) They discourage competition
b) They may lead to improper influence
c) They result in excessive overhead costs
d) Cost accountability is difficult to track
Correct Answer: b) They may lead to improper influence
Explanation: FAR 3.402 explains that such arrangements can result in attempted
or actual improper influence.
10. 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 "by" and the signature and title of an
authorized individual
d) By the chief executive officer
Correct Answer: c) In the corporate name, followed by "by" and the signature and
title of an authorized individual
Explanation: FAR 4.102 details that signatures must be in the corporate name
with authorized signatory.
