CERTIFIED FEDERAL CONTRACTS MANAGER (CFCM) – QUESTIONS WITH
VERIFIED ANSWERS (2025–2026 EDITION) – COMPLETE FEDERAL ACQUISITION
STUDY GUIDE
A cost is reasonable if, in its nature and amount, it does not exceed - (answers)that which would be
incurred by a prudent person in the conduct of competitive business.
Advance Agreements should not be negotiated - (answers)after the incurrence of the costs involved.
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a
contract if it meets all but which of the following? - (answers)The contract specifies payments
aggregating $100,000 or more.
Individuals delegated micro-purchase authority do not need to be - (answers)appointed in an SF 1402
Advisory and assistance services are classified in all of the following subdivisions except -
(answers)construction.
A foreign end product may be purchased under the Buy American Act if - (answers)the price of the
lowest domestic offer is determined to be unreasonable by the CO.
The threshold which must be exceeded before purchases of services become subject to the Service
Contract Act is - (answers)$2,500
Which of the following examples is considered to be an inherently governmental function? -
(answers)approving contractual documents
If market research indicates commercial or nondevelopmental items might not be available to satisfy
agency needs, agencies shall next: - (answers)determine whether the need can be restated to permit
commercial or nondevelopmental items to satisfy the agency's needs.
,Which is NOT one of the seven exceptions to full and open competition? - (answers)Approval by the
Agency Head
If the delivery schedule is based on the date of the contract, the contracting officer shall mail or
otherwise furnish to the contractor the contract, notice of award, acceptance of proposal or other
contract document - (answers)not later than the date of the contract.
Liquidated damages are typically assessed - (answers)per calendar day.
Cost Accounting Standards apply to commercial item contracts when they are - (answers)fixed price with
economic price adjustment based on actual costs.
An indefinite-quantity contract is best used when: - (answers)a recurring need is anticipated
_______________________ is a Department of Commerce regulation in support of approved national
defense, emergency preparedness, and energy programs, and the Secretary of Commerce is designated
to administer it. - (answers)Defense Priorities and Allocations System
Under Sealed Bidding, a bid sample will be used to: - (answers)determine responsiveness of the bid.
Which type of the cost reimbursement contract is the least preferred type due to its minimum incentive
for the contractor to control cost? - (answers)cost plus fixed fee
According to FAR 13.003, Policy for Simplified Acquisition Procedures, which of the following is correct? -
(answers)Agencies shall use the government-wide commercial purchase card and electronic purchasing
techniques to the maximum practicable in conducting simplified acquisitions.
,Which of the following must be evaluated in every source selection? - (answers)Price or cost to the
government
In what FAR Part will you find rules and policy on foreign acquisitions? - (answers)FAR Part 25
The Miller Act requires: - (answers)a performance and payment bond for construction contracts over
$150,000
Under what type of contract might the seller never have to perform any services or provide any
deliveries? - (answers)Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the contract
is less than: - (answers)$5,000
Effective competition, as used in FAR Part 34, is a market condition that exists when - (answers)two or
more contractors act independently and actively contend for the government's business.
The total amount that can be paid for commercial advance payments cannot exceed _____ of the
contract price: - (answers)15%
When progress payments are authorized, what is the customary progress payment rate applicable to the
total costs of performing the contract? - (answers)80%, 85% for contracts with small businesses
The Walsh-Healy Public Contracts Act pertains to such matters as minimum wages, maximum hours,
child labor, convict labor, and safe and sanitary working conditions and applies to contracts for the
manufacture or furnishing of materials, supplies, articles, and equipment in the United States in any
amount exceeding - (answers)$15,000
A valid unsolicited proposal must: - (answers)be independently originated and developed by the offeror.
, Each acquisition of supplies or services that has an anticipated dollar value exceeding _____ and not
exceeding ______ is reserved exclusively for small business concerns and shall be set aside unless the
contracting officer appropriately determines otherwise. - (answers)$3,000; $150,000
Fast Payment Procedures are generally used when delivery must occur at a geographically separated
location that would make it impractical to make timely payment based on evidence of government
acceptance and the individual order does not exceed: - (answers)$30,000
Under FAR Part 14, Sealed Bidding, Bid Samples: - (answers)will be rejected for nonresponsiveness if the
sample fails to conform to each of the characteristics listed in the invitation.
Agencies may not use the following contract type for the acquisition of commercial items: -
(answers)Cost-Plus-Award-Fee
Permitted exchanges of information with Industry prior to receipt of proposals include all of the
following except: - (answers)Providing the Independent Government Cost Estimate to offerors for pricing
purposes
If no time is specified in a solicitation, the time of receipt is: - (answers)4:30 pm
What are clarifications? - (answers)Limited exchanges between the government and offerors that may
occur when award without discussions are contemplated.
Post award debriefings include all of the following EXCEPT? - (answers)A point-by-point comparison
between the winning offeror's and the unsuccessful offeror's proposals.
Which contract type provides for an initially negotiated fee to be adjusted later by a formula based on
the relationship of the total allowable costs to the total target costs? - (answers)Cost Plus Incentive Fee
VERIFIED ANSWERS (2025–2026 EDITION) – COMPLETE FEDERAL ACQUISITION
STUDY GUIDE
A cost is reasonable if, in its nature and amount, it does not exceed - (answers)that which would be
incurred by a prudent person in the conduct of competitive business.
Advance Agreements should not be negotiated - (answers)after the incurrence of the costs involved.
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a
contract if it meets all but which of the following? - (answers)The contract specifies payments
aggregating $100,000 or more.
Individuals delegated micro-purchase authority do not need to be - (answers)appointed in an SF 1402
Advisory and assistance services are classified in all of the following subdivisions except -
(answers)construction.
A foreign end product may be purchased under the Buy American Act if - (answers)the price of the
lowest domestic offer is determined to be unreasonable by the CO.
The threshold which must be exceeded before purchases of services become subject to the Service
Contract Act is - (answers)$2,500
Which of the following examples is considered to be an inherently governmental function? -
(answers)approving contractual documents
If market research indicates commercial or nondevelopmental items might not be available to satisfy
agency needs, agencies shall next: - (answers)determine whether the need can be restated to permit
commercial or nondevelopmental items to satisfy the agency's needs.
,Which is NOT one of the seven exceptions to full and open competition? - (answers)Approval by the
Agency Head
If the delivery schedule is based on the date of the contract, the contracting officer shall mail or
otherwise furnish to the contractor the contract, notice of award, acceptance of proposal or other
contract document - (answers)not later than the date of the contract.
Liquidated damages are typically assessed - (answers)per calendar day.
Cost Accounting Standards apply to commercial item contracts when they are - (answers)fixed price with
economic price adjustment based on actual costs.
An indefinite-quantity contract is best used when: - (answers)a recurring need is anticipated
_______________________ is a Department of Commerce regulation in support of approved national
defense, emergency preparedness, and energy programs, and the Secretary of Commerce is designated
to administer it. - (answers)Defense Priorities and Allocations System
Under Sealed Bidding, a bid sample will be used to: - (answers)determine responsiveness of the bid.
Which type of the cost reimbursement contract is the least preferred type due to its minimum incentive
for the contractor to control cost? - (answers)cost plus fixed fee
According to FAR 13.003, Policy for Simplified Acquisition Procedures, which of the following is correct? -
(answers)Agencies shall use the government-wide commercial purchase card and electronic purchasing
techniques to the maximum practicable in conducting simplified acquisitions.
,Which of the following must be evaluated in every source selection? - (answers)Price or cost to the
government
In what FAR Part will you find rules and policy on foreign acquisitions? - (answers)FAR Part 25
The Miller Act requires: - (answers)a performance and payment bond for construction contracts over
$150,000
Under what type of contract might the seller never have to perform any services or provide any
deliveries? - (answers)Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the contract
is less than: - (answers)$5,000
Effective competition, as used in FAR Part 34, is a market condition that exists when - (answers)two or
more contractors act independently and actively contend for the government's business.
The total amount that can be paid for commercial advance payments cannot exceed _____ of the
contract price: - (answers)15%
When progress payments are authorized, what is the customary progress payment rate applicable to the
total costs of performing the contract? - (answers)80%, 85% for contracts with small businesses
The Walsh-Healy Public Contracts Act pertains to such matters as minimum wages, maximum hours,
child labor, convict labor, and safe and sanitary working conditions and applies to contracts for the
manufacture or furnishing of materials, supplies, articles, and equipment in the United States in any
amount exceeding - (answers)$15,000
A valid unsolicited proposal must: - (answers)be independently originated and developed by the offeror.
, Each acquisition of supplies or services that has an anticipated dollar value exceeding _____ and not
exceeding ______ is reserved exclusively for small business concerns and shall be set aside unless the
contracting officer appropriately determines otherwise. - (answers)$3,000; $150,000
Fast Payment Procedures are generally used when delivery must occur at a geographically separated
location that would make it impractical to make timely payment based on evidence of government
acceptance and the individual order does not exceed: - (answers)$30,000
Under FAR Part 14, Sealed Bidding, Bid Samples: - (answers)will be rejected for nonresponsiveness if the
sample fails to conform to each of the characteristics listed in the invitation.
Agencies may not use the following contract type for the acquisition of commercial items: -
(answers)Cost-Plus-Award-Fee
Permitted exchanges of information with Industry prior to receipt of proposals include all of the
following except: - (answers)Providing the Independent Government Cost Estimate to offerors for pricing
purposes
If no time is specified in a solicitation, the time of receipt is: - (answers)4:30 pm
What are clarifications? - (answers)Limited exchanges between the government and offerors that may
occur when award without discussions are contemplated.
Post award debriefings include all of the following EXCEPT? - (answers)A point-by-point comparison
between the winning offeror's and the unsuccessful offeror's proposals.
Which contract type provides for an initially negotiated fee to be adjusted later by a formula based on
the relationship of the total allowable costs to the total target costs? - (answers)Cost Plus Incentive Fee
