Certified Federal Contracts Manager
(CFCM) UPDATED ACTUAL Exam
Questions and CORRECT Answers
A cost is reasonable if, in its nature and amount, it does not exceed - CORRECT
ANSWER -that which would be incurred by a prudent person in the conduct of
competitive business.
Advance Agreements should not be negotiated - CORRECT ANSWER -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? - CORRECT ANSWER -The
contract specifies payments aggregating $100,000 or more.
Individuals delegated micro-purchase authority do not need to be - CORRECT
ANSWER -appointed in an SF 1402
Advisory and assistance services are classified in all of the following subdivisions except -
CORRECT ANSWER -construction.
A foreign end product may be purchased under the Buy American Act if - CORRECT
ANSWER -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 - CORRECT ANSWER -$2,500
Which of the following examples is considered to be an inherently governmental function? -
CORRECT ANSWER -approving contractual documents
,If market research indicates commercial or nondevelopmental items might not be available to
satisfy agency needs, agencies shall next: - CORRECT ANSWER -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? - CORRECT
ANSWER -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 - CORRECT ANSWER -not later than the date of the contract.
Liquidated damages are typically assessed - CORRECT ANSWER -per calendar day.
Cost Accounting Standards apply to commercial item contracts when they are - CORRECT
ANSWER -fixed price with economic price adjustment based on actual costs.
An indefinite-quantity contract is best used when: - CORRECT ANSWER -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. - CORRECT ANSWER -Defense Priorities and Allocations
System
Under Sealed Bidding, a bid sample will be used to: - CORRECT ANSWER -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? - CORRECT ANSWER -cost plus fixed fee
,According to FAR 13.003, Policy for Simplified Acquisition Procedures, which of the following
is correct? - CORRECT ANSWER -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? - CORRECT
ANSWER -Price or cost to the government
In what FAR Part will you find rules and policy on foreign acquisitions? - CORRECT
ANSWER -FAR Part 25
The Miller Act requires: - CORRECT ANSWER -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? - CORRECT ANSWER -Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the
contract is less than: - CORRECT ANSWER -$5,000
Effective competition, as used in FAR Part 34, is a market condition that exists when -
CORRECT ANSWER -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: - CORRECT ANSWER -15%
When progress payments are authorized, what is the customary progress payment rate applicable
to the total costs of performing the contract? - CORRECT ANSWER -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 - CORRECT ANSWER -$15,000
A valid unsolicited proposal must: - CORRECT ANSWER -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. - CORRECT
ANSWER -$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: - CORRECT
ANSWER -$30,000
Under FAR Part 14, Sealed Bidding, Bid Samples: - CORRECT ANSWER -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: -
CORRECT ANSWER -Cost-Plus-Award-Fee
Permitted exchanges of information with Industry prior to receipt of proposals include all of the
following except: - CORRECT ANSWER -Providing the Independent Government Cost
Estimate to offerors for pricing purposes
If no time is specified in a solicitation, the time of receipt is: - CORRECT ANSWER -4:30
pm
(CFCM) UPDATED ACTUAL Exam
Questions and CORRECT Answers
A cost is reasonable if, in its nature and amount, it does not exceed - CORRECT
ANSWER -that which would be incurred by a prudent person in the conduct of
competitive business.
Advance Agreements should not be negotiated - CORRECT ANSWER -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? - CORRECT ANSWER -The
contract specifies payments aggregating $100,000 or more.
Individuals delegated micro-purchase authority do not need to be - CORRECT
ANSWER -appointed in an SF 1402
Advisory and assistance services are classified in all of the following subdivisions except -
CORRECT ANSWER -construction.
A foreign end product may be purchased under the Buy American Act if - CORRECT
ANSWER -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 - CORRECT ANSWER -$2,500
Which of the following examples is considered to be an inherently governmental function? -
CORRECT ANSWER -approving contractual documents
,If market research indicates commercial or nondevelopmental items might not be available to
satisfy agency needs, agencies shall next: - CORRECT ANSWER -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? - CORRECT
ANSWER -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 - CORRECT ANSWER -not later than the date of the contract.
Liquidated damages are typically assessed - CORRECT ANSWER -per calendar day.
Cost Accounting Standards apply to commercial item contracts when they are - CORRECT
ANSWER -fixed price with economic price adjustment based on actual costs.
An indefinite-quantity contract is best used when: - CORRECT ANSWER -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. - CORRECT ANSWER -Defense Priorities and Allocations
System
Under Sealed Bidding, a bid sample will be used to: - CORRECT ANSWER -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? - CORRECT ANSWER -cost plus fixed fee
,According to FAR 13.003, Policy for Simplified Acquisition Procedures, which of the following
is correct? - CORRECT ANSWER -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? - CORRECT
ANSWER -Price or cost to the government
In what FAR Part will you find rules and policy on foreign acquisitions? - CORRECT
ANSWER -FAR Part 25
The Miller Act requires: - CORRECT ANSWER -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? - CORRECT ANSWER -Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the
contract is less than: - CORRECT ANSWER -$5,000
Effective competition, as used in FAR Part 34, is a market condition that exists when -
CORRECT ANSWER -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: - CORRECT ANSWER -15%
When progress payments are authorized, what is the customary progress payment rate applicable
to the total costs of performing the contract? - CORRECT ANSWER -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 - CORRECT ANSWER -$15,000
A valid unsolicited proposal must: - CORRECT ANSWER -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. - CORRECT
ANSWER -$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: - CORRECT
ANSWER -$30,000
Under FAR Part 14, Sealed Bidding, Bid Samples: - CORRECT ANSWER -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: -
CORRECT ANSWER -Cost-Plus-Award-Fee
Permitted exchanges of information with Industry prior to receipt of proposals include all of the
following except: - CORRECT ANSWER -Providing the Independent Government Cost
Estimate to offerors for pricing purposes
If no time is specified in a solicitation, the time of receipt is: - CORRECT ANSWER -4:30
pm
