Certified Federal Contracts Manager (CFCM) 2025”2026 LATEST
VERSION 150 QUESTIONS AND CORRECT ANSWERS WITH RATIONALES
COVERING MOST TESTED QUESTIONS GUARANTEE A+ GRADE
Overview:
The Certified Federal Contracts Manager (CFCM) 2025–2026 study resource provides 150
carefully crafted practice questions with detailed, step-by-step rationales designed to reinforce
understanding of federal contracting principles. Covering the most frequently tested areas of
the Federal Acquisition Regulation (FAR), this updated version helps learners identify knowledge
gaps, strengthen test-taking skills, and build confidence for the CFCM exam. While no resource
can guarantee a specific grade, this comprehensive question set is structured to support
thorough preparation and improve overall exam readiness.
1. Which of the following is the primary purpose of the Federal Acquisition Regulation
(FAR)?
A. To establish tax laws for federal contractors
B. To provide uniform policies and procedures for federal procurement
C. To regulate labor practices in the private sector
D. To manage federal employee benefits
Rationale: The FAR provides uniform policies and procedures for acquisition by all federal
agencies.
2. Under FAR Part 15, competitive proposals are primarily evaluated using which method?
A. Lowest bid only
B. Best value, considering both cost and technical factors
C. First-come, first-served
D. Random selection
Rationale: FAR Part 15 emphasizes competitive proposals evaluated for best value, including
cost and technical considerations.
3. A contractor fails to deliver supplies on time under a federal contract. Which FAR clause
typically addresses this?
A. Termination for Convenience
B. Default
, C. Changes D. Disputes
Rationale: The Default clause allows the government to terminate a contract if the contractor
fails to meet performance requirements.
4. Which contract type involves the greatest risk to the government if costs exceed
estimates?
A. Fixed-price
B. Cost-reimbursement
C. Time-and-materials
D. Letter contract
Rationale: In a fixed-price contract, the contractor bears the risk of cost overruns; the
government pays the agreed-upon price regardless of actual costs.
5. Under which FAR Part are small business programs governed?
A. FAR Part 19
B. FAR Part 12
C. FAR Part 15
D. FAR Part 31
Rationale: FAR Part 19 addresses small business programs, including set-asides and
socioeconomic considerations.
6. Which type of solicitation is used when the government requires formal competitive
proposals?
A. Request for Quotation (RFQ)
B. Request for Proposal (RFP)
C. Invitation for Bid (IFB)
D. Purchase order
Rationale: RFPs are used for negotiated procurements requiring evaluation of proposals beyond
price.
7. The Anti-Kickback Act applies to which of the following?
A. Federal employees only
, B. Contractors and subcontractors
C. State contractors only
D. Private citizens
Rationale: The Anti-Kickback Act prohibits contractors and subcontractors from providing,
receiving, or soliciting kickbacks in federal procurement.
8. A cost-reimbursement contract is best suited for which scenario?
A. When costs are predictable and fixed
B. When costs are uncertain or research-oriented
C. When the lowest price is critical D. When delivery time is immediate
Rationale: Cost-reimbursement contracts are suitable for projects with uncertain costs, such as
research and development.
9. Which of the following is a characteristic of a firm-fixed-price contract?
A. The government reimburses actual costs
B. The price is set and not subject to adjustment
C. Contractor assumes no risk
D. The price adjusts automatically based on labor rates
Rationale: A firm-fixed-price contract provides cost certainty to the government while the
contractor assumes the risk.
10. Which clause requires contractors to maintain adequate records for government review?
A. Access to Records
B. Termination for Convenience
C. Inspection of Supplies
D. Changes
Rationale: The Access to Records clause allows government auditors to review contractor
records for compliance and cost verification.
11. Which FAR Part governs contracts for commercial items?
A. FAR Part 15
B. FAR Part 12
, C. FAR Part 19
D. FAR Part 31
Rationale: FAR Part 12 provides streamlined procedures for acquiring commercial items.
12. The purpose of the “Termination for Convenience” clause is to:
A. Punish contractors for poor performance
B. Allow the government to terminate a contract when in its best interest
C. Limit contractor liability
D. Avoid competition
VERSION 150 QUESTIONS AND CORRECT ANSWERS WITH RATIONALES
COVERING MOST TESTED QUESTIONS GUARANTEE A+ GRADE
Overview:
The Certified Federal Contracts Manager (CFCM) 2025–2026 study resource provides 150
carefully crafted practice questions with detailed, step-by-step rationales designed to reinforce
understanding of federal contracting principles. Covering the most frequently tested areas of
the Federal Acquisition Regulation (FAR), this updated version helps learners identify knowledge
gaps, strengthen test-taking skills, and build confidence for the CFCM exam. While no resource
can guarantee a specific grade, this comprehensive question set is structured to support
thorough preparation and improve overall exam readiness.
1. Which of the following is the primary purpose of the Federal Acquisition Regulation
(FAR)?
A. To establish tax laws for federal contractors
B. To provide uniform policies and procedures for federal procurement
C. To regulate labor practices in the private sector
D. To manage federal employee benefits
Rationale: The FAR provides uniform policies and procedures for acquisition by all federal
agencies.
2. Under FAR Part 15, competitive proposals are primarily evaluated using which method?
A. Lowest bid only
B. Best value, considering both cost and technical factors
C. First-come, first-served
D. Random selection
Rationale: FAR Part 15 emphasizes competitive proposals evaluated for best value, including
cost and technical considerations.
3. A contractor fails to deliver supplies on time under a federal contract. Which FAR clause
typically addresses this?
A. Termination for Convenience
B. Default
, C. Changes D. Disputes
Rationale: The Default clause allows the government to terminate a contract if the contractor
fails to meet performance requirements.
4. Which contract type involves the greatest risk to the government if costs exceed
estimates?
A. Fixed-price
B. Cost-reimbursement
C. Time-and-materials
D. Letter contract
Rationale: In a fixed-price contract, the contractor bears the risk of cost overruns; the
government pays the agreed-upon price regardless of actual costs.
5. Under which FAR Part are small business programs governed?
A. FAR Part 19
B. FAR Part 12
C. FAR Part 15
D. FAR Part 31
Rationale: FAR Part 19 addresses small business programs, including set-asides and
socioeconomic considerations.
6. Which type of solicitation is used when the government requires formal competitive
proposals?
A. Request for Quotation (RFQ)
B. Request for Proposal (RFP)
C. Invitation for Bid (IFB)
D. Purchase order
Rationale: RFPs are used for negotiated procurements requiring evaluation of proposals beyond
price.
7. The Anti-Kickback Act applies to which of the following?
A. Federal employees only
, B. Contractors and subcontractors
C. State contractors only
D. Private citizens
Rationale: The Anti-Kickback Act prohibits contractors and subcontractors from providing,
receiving, or soliciting kickbacks in federal procurement.
8. A cost-reimbursement contract is best suited for which scenario?
A. When costs are predictable and fixed
B. When costs are uncertain or research-oriented
C. When the lowest price is critical D. When delivery time is immediate
Rationale: Cost-reimbursement contracts are suitable for projects with uncertain costs, such as
research and development.
9. Which of the following is a characteristic of a firm-fixed-price contract?
A. The government reimburses actual costs
B. The price is set and not subject to adjustment
C. Contractor assumes no risk
D. The price adjusts automatically based on labor rates
Rationale: A firm-fixed-price contract provides cost certainty to the government while the
contractor assumes the risk.
10. Which clause requires contractors to maintain adequate records for government review?
A. Access to Records
B. Termination for Convenience
C. Inspection of Supplies
D. Changes
Rationale: The Access to Records clause allows government auditors to review contractor
records for compliance and cost verification.
11. Which FAR Part governs contracts for commercial items?
A. FAR Part 15
B. FAR Part 12
, C. FAR Part 19
D. FAR Part 31
Rationale: FAR Part 12 provides streamlined procedures for acquiring commercial items.
12. The purpose of the “Termination for Convenience” clause is to:
A. Punish contractors for poor performance
B. Allow the government to terminate a contract when in its best interest
C. Limit contractor liability
D. Avoid competition
