CFCM Prep Questions(NCMA CFCM Study
Guide and NCMA Practice Test) Questions
With Complete Solutions
Course
CFCM - Certified Federal Contract Manager
1. What is the primary regulation governing federal acquisitions?
Answer: The Federal Acquisition Regulation (FAR).
Explanation: The FAR provides uniform policies and procedures for acquisitions by all
executive agencies in the federal government.
2. Under FAR Part 6, what is the preferred method of contracting?
Answer: Full and open competition.
Explanation: FAR Part 6 states that contracts should be awarded through competitive
procedures unless an exception applies.
3. What is the threshold for micro-purchases under FAR?
Answer: $10,000 for most acquisitions.
Explanation: The micro-purchase threshold allows for streamlined purchasing methods
with minimal documentation requirements.
4. What type of contract places the greatest cost risk on the contractor?
Answer: Firm-Fixed-Price (FFP) contracts.
Explanation: In an FFP contract, the contractor assumes the full risk of cost overruns.
5. Which type of contract allows adjustments based on market fluctuations?
Answer: Fixed-Price with Economic Price Adjustment (FP-EPA).
Explanation: This contract type provides for price adjustments based on changes in labor
or material costs.
6. What is a primary purpose of the Contract Disputes Act?
, Answer: To establish procedures for resolving disputes between contractors and the
federal government.
Explanation: The act sets forth rules for claims, appeals, and alternative dispute
resolution.
7. Which FAR Part covers contract administration?
Answer: FAR Part 42.
Explanation: FAR Part 42 provides guidance on contract oversight, modifications, and
performance monitoring.
8. What is the purpose of a performance-based contract?
Answer: To define outcomes rather than prescribing how work is performed.
Explanation: This approach encourages innovation and efficiency by allowing
contractors to determine the best method for delivering results.
9. Under FAR, when can sole-source contracts be awarded?
Answer: When only one responsible source is available and no other supplies or
services will meet agency requirements.
Explanation: FAR Part 6.302 outlines exceptions to full and open competition, including
sole-source justifications.
10. What is the Simplified Acquisition Threshold (SAT) as of recent FAR updates?
Answer: $250,000 for most procurements.
Explanation: The SAT allows for streamlined procedures to reduce administrative
burden and increase efficiency.
11. What is the primary goal of contract negotiations under FAR?
Answer: To achieve a fair and reasonable price for both the government and the
contractor.
Explanation: FAR emphasizes ensuring fair pricing while maintaining integrity and
efficiency in the procurement process.
,12. Which type of contract is used when the government cannot precisely define its
requirements?
Answer: Indefinite-Delivery, Indefinite-Quantity (IDIQ) contracts.
Explanation: IDIQ contracts allow flexibility in both the quantity and timing of
deliverables.
13. What is the primary purpose of a Request for Proposal (RFP)?
Answer: To solicit competitive proposals from vendors for complex requirements.
Explanation: RFPs are used when technical and cost considerations require evaluation
beyond price alone.
14. Under FAR, which contracting method is primarily used for acquiring commercial
items?
Answer: Simplified Acquisition Procedures (SAP).
Explanation: SAP streamlines the process for purchasing commercial items, reducing
paperwork and processing time.
15. What is a Contracting Officer’s (CO) primary responsibility?
Answer: To ensure that contracts comply with federal laws and regulations.
Explanation: The CO has the sole authority to enter into, administer, and terminate
contracts on behalf of the government.
16. What is the main purpose of the Procurement Integrity Act?
Answer: To prevent fraud, waste, and abuse in federal procurement.
Explanation: This law restricts the release of procurement-sensitive information and
prohibits certain contractor relationships.
17. What type of contract provides reimbursement of allowable costs up to a predetermined
limit?
, Answer: Cost-Reimbursement Contracts.
Explanation: These contracts allow the government to reimburse the contractor for costs
incurred, plus a negotiated fee.
18. What is the purpose of a Past Performance Evaluation?
Answer: To assess a contractor’s history of quality, reliability, and compliance.
Explanation: Agencies use past performance data to evaluate risk and inform award
decisions.
19. When can a contracting officer terminate a contract for default?
Answer: When the contractor fails to perform according to the contract terms.
Explanation: A Termination for Default (T4D) is used when a contractor’s failure is not
excusable.
20. What is the purpose of a Government-Wide Acquisition Contract (GWAC)?
Answer: To provide pre-approved contracts for IT and professional services across
agencies.
Explanation: GWACs streamline procurement by allowing multiple agencies to use a
single contract.
21. What is the purpose of a Cost Accounting Standards (CAS) exemption?
Answer: To reduce the administrative burden for small businesses and certain contracts.
Explanation: Some contracts are exempt from CAS to encourage small business
participation and efficiency.
22. What is the role of a Contracting Officer’s Representative (COR)?
Answer: To assist the CO in monitoring contract performance.
Explanation: The COR ensures compliance but does not have the authority to modify
the contract.
Guide and NCMA Practice Test) Questions
With Complete Solutions
Course
CFCM - Certified Federal Contract Manager
1. What is the primary regulation governing federal acquisitions?
Answer: The Federal Acquisition Regulation (FAR).
Explanation: The FAR provides uniform policies and procedures for acquisitions by all
executive agencies in the federal government.
2. Under FAR Part 6, what is the preferred method of contracting?
Answer: Full and open competition.
Explanation: FAR Part 6 states that contracts should be awarded through competitive
procedures unless an exception applies.
3. What is the threshold for micro-purchases under FAR?
Answer: $10,000 for most acquisitions.
Explanation: The micro-purchase threshold allows for streamlined purchasing methods
with minimal documentation requirements.
4. What type of contract places the greatest cost risk on the contractor?
Answer: Firm-Fixed-Price (FFP) contracts.
Explanation: In an FFP contract, the contractor assumes the full risk of cost overruns.
5. Which type of contract allows adjustments based on market fluctuations?
Answer: Fixed-Price with Economic Price Adjustment (FP-EPA).
Explanation: This contract type provides for price adjustments based on changes in labor
or material costs.
6. What is a primary purpose of the Contract Disputes Act?
, Answer: To establish procedures for resolving disputes between contractors and the
federal government.
Explanation: The act sets forth rules for claims, appeals, and alternative dispute
resolution.
7. Which FAR Part covers contract administration?
Answer: FAR Part 42.
Explanation: FAR Part 42 provides guidance on contract oversight, modifications, and
performance monitoring.
8. What is the purpose of a performance-based contract?
Answer: To define outcomes rather than prescribing how work is performed.
Explanation: This approach encourages innovation and efficiency by allowing
contractors to determine the best method for delivering results.
9. Under FAR, when can sole-source contracts be awarded?
Answer: When only one responsible source is available and no other supplies or
services will meet agency requirements.
Explanation: FAR Part 6.302 outlines exceptions to full and open competition, including
sole-source justifications.
10. What is the Simplified Acquisition Threshold (SAT) as of recent FAR updates?
Answer: $250,000 for most procurements.
Explanation: The SAT allows for streamlined procedures to reduce administrative
burden and increase efficiency.
11. What is the primary goal of contract negotiations under FAR?
Answer: To achieve a fair and reasonable price for both the government and the
contractor.
Explanation: FAR emphasizes ensuring fair pricing while maintaining integrity and
efficiency in the procurement process.
,12. Which type of contract is used when the government cannot precisely define its
requirements?
Answer: Indefinite-Delivery, Indefinite-Quantity (IDIQ) contracts.
Explanation: IDIQ contracts allow flexibility in both the quantity and timing of
deliverables.
13. What is the primary purpose of a Request for Proposal (RFP)?
Answer: To solicit competitive proposals from vendors for complex requirements.
Explanation: RFPs are used when technical and cost considerations require evaluation
beyond price alone.
14. Under FAR, which contracting method is primarily used for acquiring commercial
items?
Answer: Simplified Acquisition Procedures (SAP).
Explanation: SAP streamlines the process for purchasing commercial items, reducing
paperwork and processing time.
15. What is a Contracting Officer’s (CO) primary responsibility?
Answer: To ensure that contracts comply with federal laws and regulations.
Explanation: The CO has the sole authority to enter into, administer, and terminate
contracts on behalf of the government.
16. What is the main purpose of the Procurement Integrity Act?
Answer: To prevent fraud, waste, and abuse in federal procurement.
Explanation: This law restricts the release of procurement-sensitive information and
prohibits certain contractor relationships.
17. What type of contract provides reimbursement of allowable costs up to a predetermined
limit?
, Answer: Cost-Reimbursement Contracts.
Explanation: These contracts allow the government to reimburse the contractor for costs
incurred, plus a negotiated fee.
18. What is the purpose of a Past Performance Evaluation?
Answer: To assess a contractor’s history of quality, reliability, and compliance.
Explanation: Agencies use past performance data to evaluate risk and inform award
decisions.
19. When can a contracting officer terminate a contract for default?
Answer: When the contractor fails to perform according to the contract terms.
Explanation: A Termination for Default (T4D) is used when a contractor’s failure is not
excusable.
20. What is the purpose of a Government-Wide Acquisition Contract (GWAC)?
Answer: To provide pre-approved contracts for IT and professional services across
agencies.
Explanation: GWACs streamline procurement by allowing multiple agencies to use a
single contract.
21. What is the purpose of a Cost Accounting Standards (CAS) exemption?
Answer: To reduce the administrative burden for small businesses and certain contracts.
Explanation: Some contracts are exempt from CAS to encourage small business
participation and efficiency.
22. What is the role of a Contracting Officer’s Representative (COR)?
Answer: To assist the CO in monitoring contract performance.
Explanation: The COR ensures compliance but does not have the authority to modify
the contract.
