CERTIFIED FEDERAL CONTRACTS
MANAGER (CFCM) QUESTIONS WITH
VERIFIED ANSWERS 2025-2026
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 no developmental 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 no developmental
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 offer or.
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 no responsiveness 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
MANAGER (CFCM) QUESTIONS WITH
VERIFIED ANSWERS 2025-2026
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 no developmental 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 no developmental
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 offer or.
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 no responsiveness 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
