CFCM LATEST 2026 EXAMS QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔Micro purchase Threshold - ✔✔Generally $3500
EXCEPTIONS:
1. Construction contracts (Wage Stds): $2,000
2. Service contracts (Service Contract Labor Standards): $2,500.
3. Contingency ops & NBCW recovery inside the US: $20,000
4. Contingency ops & NBCW recovery outside the US: $30,000
✔✔Simplified Acquisition Thershold (SAT) - [FAR 13.5] - ✔✔Generally $150,000
EXCEPTIONS:
1. $300,000 for contingency Ops inside the US.
2. $1 Million for contingency Ops outside the US
✔✔Simplified Acquisition Procedures (SAP) - ✔✔For the acq. of certain commercial
items (supplies & svcs) in amounts greater than SAT, but Not exceeding $7M incl
options ($13M in contingency ops or nbcr recovery from attack), SAP can be employed.
✔✔A system wehreby the CO receives auth. from a fiscal & accounting officer to
obligate funds on purchase docs against a specified lump sum of funds reserved for the
purpose for a specified time rather than obtaining individual obligation auth on each
purchase doc is _____________ (FAR 13.101(b)(4))? - ✔✔Bulk Funding
✔✔Definite Qty Contract - ✔✔Unknown Delivery (known Quantity)
Supplies/ services readily available
✔✔Requirements Contract - ✔✔Unknown Quantity (known Delivery)
Purchase from a single contractor
✔✔Indefinite Qty Contract - ✔✔Unknown Quantity, unknown Delivery
Multiple awards preferred, fair opportunity to compete for each order over $3,500 -
unless FAR exception applies
✔✔Letter Contract - ✔✔Be definitized within 180 days after the date of the letter
contract OR before completion of 40% of the work to be performed, whichever occurs
first.
✔✔"Option Contracts" may express options for increased quantities of supplies or
services in terms of: - ✔✔1. Percentage of specific line item
2. Increase in specific line item
3. Add'l numbered line item
,✔✔Multi-Year Contracting? - ✔✔• Multi-year contracting is a special contracting method
to acquire known requirements in quantities and total cost not over planned
requirements for up to 5 years unless otherwise authorized by statute.
• The total funds ultimately to be obligated may not be available at the time of contract
award.
• This method may be used in sealed bidding or contracting by negotiation.
✔✔A pre-bid conference may be used for the following purposes (Also, state the
frequently indicated exception)? - ✔✔As a means of:
• briefing prospective bidders & explaining complicated specs.
• getting requirements to prospective bidders as early as possible after the invitation has
been issued & before the bids are opened.
• generally in a complex acquisition.
EXCEPTION/ (must not be used for):
• As a substitute for amending a defective or ambiguous invitation.
✔✔The objective when negotiating contract type and price is to negotiate one that will
result in: - ✔✔Reasonable contractor risk and greatest incentive for efficient and
economical performance.
✔✔When the final cost exceeds the price ceiling in a fixed-price incentive fee type
contract, the contractor: - ✔✔absorbs the difference as a loss.
✔✔____________ are written instruments of understanding that contain terms and
conditions that apply to future orders, a description of supplies and services to be
provided, and methods for pricing, issuing, and delivering future orders. - ✔✔Basic
Ordering Agreements (BOA).
✔✔Blanket Purchase Agreement (BPA) - ✔✔It's a simplified method of filling anticipated
repetitive needs for supplies or services by establishing "charge accounts" with qualified
sources of supply.
(BPAs are considered complete when the purchases equal their total dollar limitation or
when their stated time period expires.)
✔✔BPAs are appropriate when: - ✔✔(1) requirements exist for a wide variety of items,
but the exact items, quantities, and delivery requirements are NOT KNOWN in advance;
(2) there is a need to provide commercial sources of supply for one or more offices;
(3) writing numerous PO's can be avoided through the use of this procedure; or
(4) there is no existing requirements contract for the same supply or service that the
contracting activity is required to use.
, ✔✔CO's responsibilities in establishing BPAs: - ✔✔• Establish the parameters to limit
purchases to individual items or commodity groups or classes, or permit the supplier to
furnish unlimited supplies or services.
• Consider suppliers whose past performance has shown them to be dependable, who
offer quality supplies or services at consistently lower prices, and who have provided
numerous purchases at or below the simplified acquisition threshold.
✔✔BPAs may be established with: - ✔✔• More than one supplier for supplies or
services of the same type to provide maximum practicable competition;
• A single firm from which numerous individual purchases at or below the simplified
acquisition
threshold will likely be made in a given period;
• Or federal supply schedule contractors, if not inconsistent with the terms of the
applicable
schedule contract.
• Include a description of the agreement, the extent of obligation, pricing, purchase
limitations, individuals authorized to place orders, delivery tickets, and invoices.
• Review at least annually and update if necessary.
✔✔Public Law _____________ authorizes extraordinary contractual actions to facilitate
the national defense. - ✔✔85-804
✔✔Clarifications - ✔✔Exchanges btw Govt & Offerors after receipt of proposals, leading
to estb of competitive range. (This is offered when the award is contemplated without
discussions)
✔✔Discussions - ✔✔Clarifications btw the Govt & those offerors
✔✔Truthful Cost & Pricing Data (legacy, TINA) - ✔✔Threshold of $750,000
✔✔What are the considerations of an agency for "Best value continuum"? - ✔✔-
Requirements
- Risk
- Past Performance
- Cost
✔✔What are the techniques used for Proposal Analysis? - ✔✔1. Price analysis
2. Cost analysis
3. Cost realism analysis
4. Technical analysis
✔✔What are the objectives of a PROFIT? - ✔✔1. to Stimulate efficient and effective
contract performance.
2. Attract best capabilities of qualified small and large businesses
3. Maitain a viable industrial base.
GUARANTEE A+
✔✔Micro purchase Threshold - ✔✔Generally $3500
EXCEPTIONS:
1. Construction contracts (Wage Stds): $2,000
2. Service contracts (Service Contract Labor Standards): $2,500.
3. Contingency ops & NBCW recovery inside the US: $20,000
4. Contingency ops & NBCW recovery outside the US: $30,000
✔✔Simplified Acquisition Thershold (SAT) - [FAR 13.5] - ✔✔Generally $150,000
EXCEPTIONS:
1. $300,000 for contingency Ops inside the US.
2. $1 Million for contingency Ops outside the US
✔✔Simplified Acquisition Procedures (SAP) - ✔✔For the acq. of certain commercial
items (supplies & svcs) in amounts greater than SAT, but Not exceeding $7M incl
options ($13M in contingency ops or nbcr recovery from attack), SAP can be employed.
✔✔A system wehreby the CO receives auth. from a fiscal & accounting officer to
obligate funds on purchase docs against a specified lump sum of funds reserved for the
purpose for a specified time rather than obtaining individual obligation auth on each
purchase doc is _____________ (FAR 13.101(b)(4))? - ✔✔Bulk Funding
✔✔Definite Qty Contract - ✔✔Unknown Delivery (known Quantity)
Supplies/ services readily available
✔✔Requirements Contract - ✔✔Unknown Quantity (known Delivery)
Purchase from a single contractor
✔✔Indefinite Qty Contract - ✔✔Unknown Quantity, unknown Delivery
Multiple awards preferred, fair opportunity to compete for each order over $3,500 -
unless FAR exception applies
✔✔Letter Contract - ✔✔Be definitized within 180 days after the date of the letter
contract OR before completion of 40% of the work to be performed, whichever occurs
first.
✔✔"Option Contracts" may express options for increased quantities of supplies or
services in terms of: - ✔✔1. Percentage of specific line item
2. Increase in specific line item
3. Add'l numbered line item
,✔✔Multi-Year Contracting? - ✔✔• Multi-year contracting is a special contracting method
to acquire known requirements in quantities and total cost not over planned
requirements for up to 5 years unless otherwise authorized by statute.
• The total funds ultimately to be obligated may not be available at the time of contract
award.
• This method may be used in sealed bidding or contracting by negotiation.
✔✔A pre-bid conference may be used for the following purposes (Also, state the
frequently indicated exception)? - ✔✔As a means of:
• briefing prospective bidders & explaining complicated specs.
• getting requirements to prospective bidders as early as possible after the invitation has
been issued & before the bids are opened.
• generally in a complex acquisition.
EXCEPTION/ (must not be used for):
• As a substitute for amending a defective or ambiguous invitation.
✔✔The objective when negotiating contract type and price is to negotiate one that will
result in: - ✔✔Reasonable contractor risk and greatest incentive for efficient and
economical performance.
✔✔When the final cost exceeds the price ceiling in a fixed-price incentive fee type
contract, the contractor: - ✔✔absorbs the difference as a loss.
✔✔____________ are written instruments of understanding that contain terms and
conditions that apply to future orders, a description of supplies and services to be
provided, and methods for pricing, issuing, and delivering future orders. - ✔✔Basic
Ordering Agreements (BOA).
✔✔Blanket Purchase Agreement (BPA) - ✔✔It's a simplified method of filling anticipated
repetitive needs for supplies or services by establishing "charge accounts" with qualified
sources of supply.
(BPAs are considered complete when the purchases equal their total dollar limitation or
when their stated time period expires.)
✔✔BPAs are appropriate when: - ✔✔(1) requirements exist for a wide variety of items,
but the exact items, quantities, and delivery requirements are NOT KNOWN in advance;
(2) there is a need to provide commercial sources of supply for one or more offices;
(3) writing numerous PO's can be avoided through the use of this procedure; or
(4) there is no existing requirements contract for the same supply or service that the
contracting activity is required to use.
, ✔✔CO's responsibilities in establishing BPAs: - ✔✔• Establish the parameters to limit
purchases to individual items or commodity groups or classes, or permit the supplier to
furnish unlimited supplies or services.
• Consider suppliers whose past performance has shown them to be dependable, who
offer quality supplies or services at consistently lower prices, and who have provided
numerous purchases at or below the simplified acquisition threshold.
✔✔BPAs may be established with: - ✔✔• More than one supplier for supplies or
services of the same type to provide maximum practicable competition;
• A single firm from which numerous individual purchases at or below the simplified
acquisition
threshold will likely be made in a given period;
• Or federal supply schedule contractors, if not inconsistent with the terms of the
applicable
schedule contract.
• Include a description of the agreement, the extent of obligation, pricing, purchase
limitations, individuals authorized to place orders, delivery tickets, and invoices.
• Review at least annually and update if necessary.
✔✔Public Law _____________ authorizes extraordinary contractual actions to facilitate
the national defense. - ✔✔85-804
✔✔Clarifications - ✔✔Exchanges btw Govt & Offerors after receipt of proposals, leading
to estb of competitive range. (This is offered when the award is contemplated without
discussions)
✔✔Discussions - ✔✔Clarifications btw the Govt & those offerors
✔✔Truthful Cost & Pricing Data (legacy, TINA) - ✔✔Threshold of $750,000
✔✔What are the considerations of an agency for "Best value continuum"? - ✔✔-
Requirements
- Risk
- Past Performance
- Cost
✔✔What are the techniques used for Proposal Analysis? - ✔✔1. Price analysis
2. Cost analysis
3. Cost realism analysis
4. Technical analysis
✔✔What are the objectives of a PROFIT? - ✔✔1. to Stimulate efficient and effective
contract performance.
2. Attract best capabilities of qualified small and large businesses
3. Maitain a viable industrial base.
