CERTIFIED FEDERAL CONTRACTS
MANAGER (CFCM) EXAMINATION
QUESTION AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A INSTANT DOWNLOAD PDF
1. Which regulation primarily governs the acquisition process for federal
agencies?
A. DFARS
B. OMB Circulars
C. FAR
D. GAO Yellow Book
Correct Answer: C. FAR
Rationale: The Federal Acquisition Regulation (FAR) is the primary set of rules
governing federal procurement across executive agencies.
2. The FAR is jointly issued by which organizations?
A. DOD, GSA, and NASA
B. GAO, OMB, and DOJ
C. Congress and OMB
D. SBA and GSA
Correct Answer: A. DOD, GSA, and NASA
Rationale: The FAR is issued jointly by the Department of Defense, General
Services Administration, and NASA.
, 3. Which FAR part addresses acquisition planning?
A. FAR Part 5
B. FAR Part 6
C. FAR Part 7
D. FAR Part 8
Correct Answer: C. FAR Part 7
Rationale: FAR Part 7 outlines requirements for acquisition planning to ensure
efficient and effective procurement.
4. What is the primary purpose of competition in federal contracting?
A. Reduce paperwork
B. Ensure lowest price only
C. Promote fairness and best value
D. Eliminate protests
Correct Answer: C. Promote fairness and best value
Rationale: Competition ensures fairness, transparency, and best value for the
government, not just the lowest price.
5. Which contract type places the greatest risk on the contractor?
A. Cost-reimbursement
B. Time-and-materials
C. Firm-fixed-price
D. Labor-hour
Correct Answer: C. Firm-fixed-price
Rationale: Under firm-fixed-price contracts, the contractor bears the risk of cost
overruns.
6. What FAR part covers contract types?
A. FAR Part 15
, B. FAR Part 16
C. FAR Part 19
D. FAR Part 33
Correct Answer: B. FAR Part 16
Rationale: FAR Part 16 defines various contract types and their appropriate use.
7. The Contracting Officer’s authority comes from which document?
A. FAR Subpart 1.6
B. Certificate of Appointment
C. OMB Circular A-11
D. SBA Authorization
Correct Answer: B. Certificate of Appointment
Rationale: A Contracting Officer receives authority through a warrant, formally
called a Certificate of Appointment.
8. Which FAR part addresses small business programs?
A. FAR Part 12
B. FAR Part 15
C. FAR Part 19
D. FAR Part 26
Correct Answer: C. FAR Part 19
Rationale: FAR Part 19 establishes policies and procedures for small business
participation.
9. What is the purpose of a solicitation?
A. Award a contract
B. Modify a contract
C. Request offers from potential contractors
D. Resolve disputes
, Correct Answer: C. Request offers from potential contractors
Rationale: A solicitation invites contractors to submit bids or proposals.
10.Which document formally establishes the government’s need?
A. Statement of Work
B. Independent Government Cost Estimate
C. Purchase Request
D. Acquisition Plan
Correct Answer: C. Purchase Request
Rationale: A purchase request initiates the procurement process by defining the
requirement.
11.What FAR part governs sealed bidding?
A. FAR Part 13
B. FAR Part 14
C. FAR Part 15
D. FAR Part 18
Correct Answer: B. FAR Part 14
Rationale: FAR Part 14 addresses sealed bidding procedures.
12.Which source selection method emphasizes technical merit over price?
A. Lowest Price Technically Acceptable
B. Best Value Tradeoff
C. Sealed Bidding
D. Simplified Acquisition
Correct Answer: B. Best Value Tradeoff
Rationale: Best value tradeoff allows technical superiority to justify a higher
price.
MANAGER (CFCM) EXAMINATION
QUESTION AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A INSTANT DOWNLOAD PDF
1. Which regulation primarily governs the acquisition process for federal
agencies?
A. DFARS
B. OMB Circulars
C. FAR
D. GAO Yellow Book
Correct Answer: C. FAR
Rationale: The Federal Acquisition Regulation (FAR) is the primary set of rules
governing federal procurement across executive agencies.
2. The FAR is jointly issued by which organizations?
A. DOD, GSA, and NASA
B. GAO, OMB, and DOJ
C. Congress and OMB
D. SBA and GSA
Correct Answer: A. DOD, GSA, and NASA
Rationale: The FAR is issued jointly by the Department of Defense, General
Services Administration, and NASA.
, 3. Which FAR part addresses acquisition planning?
A. FAR Part 5
B. FAR Part 6
C. FAR Part 7
D. FAR Part 8
Correct Answer: C. FAR Part 7
Rationale: FAR Part 7 outlines requirements for acquisition planning to ensure
efficient and effective procurement.
4. What is the primary purpose of competition in federal contracting?
A. Reduce paperwork
B. Ensure lowest price only
C. Promote fairness and best value
D. Eliminate protests
Correct Answer: C. Promote fairness and best value
Rationale: Competition ensures fairness, transparency, and best value for the
government, not just the lowest price.
5. Which contract type places the greatest risk on the contractor?
A. Cost-reimbursement
B. Time-and-materials
C. Firm-fixed-price
D. Labor-hour
Correct Answer: C. Firm-fixed-price
Rationale: Under firm-fixed-price contracts, the contractor bears the risk of cost
overruns.
6. What FAR part covers contract types?
A. FAR Part 15
, B. FAR Part 16
C. FAR Part 19
D. FAR Part 33
Correct Answer: B. FAR Part 16
Rationale: FAR Part 16 defines various contract types and their appropriate use.
7. The Contracting Officer’s authority comes from which document?
A. FAR Subpart 1.6
B. Certificate of Appointment
C. OMB Circular A-11
D. SBA Authorization
Correct Answer: B. Certificate of Appointment
Rationale: A Contracting Officer receives authority through a warrant, formally
called a Certificate of Appointment.
8. Which FAR part addresses small business programs?
A. FAR Part 12
B. FAR Part 15
C. FAR Part 19
D. FAR Part 26
Correct Answer: C. FAR Part 19
Rationale: FAR Part 19 establishes policies and procedures for small business
participation.
9. What is the purpose of a solicitation?
A. Award a contract
B. Modify a contract
C. Request offers from potential contractors
D. Resolve disputes
, Correct Answer: C. Request offers from potential contractors
Rationale: A solicitation invites contractors to submit bids or proposals.
10.Which document formally establishes the government’s need?
A. Statement of Work
B. Independent Government Cost Estimate
C. Purchase Request
D. Acquisition Plan
Correct Answer: C. Purchase Request
Rationale: A purchase request initiates the procurement process by defining the
requirement.
11.What FAR part governs sealed bidding?
A. FAR Part 13
B. FAR Part 14
C. FAR Part 15
D. FAR Part 18
Correct Answer: B. FAR Part 14
Rationale: FAR Part 14 addresses sealed bidding procedures.
12.Which source selection method emphasizes technical merit over price?
A. Lowest Price Technically Acceptable
B. Best Value Tradeoff
C. Sealed Bidding
D. Simplified Acquisition
Correct Answer: B. Best Value Tradeoff
Rationale: Best value tradeoff allows technical superiority to justify a higher
price.
