CAM Industry Regulations & Compliance 2 — Questions and Answers
Question 1: Under EIA-748, how many guidelines must a compliant Earned Value Management System (EVMS) address?
- 32 (Correct answer)
- 24
- 48
- 16
Correct answer: 32
EIA-748 defines 32 guidelines grouped into five process areas that a compliant EVMS must satisfy.
Question 2: Which DFARS clause requires contractors to maintain an EVMS compliant with EIA-748 on applicable DoD contracts?
- DFARS 252.234-7002 (Correct answer)
- DFARS 252.225-7001
- DFARS 252.204-7012
- DFARS 252.246-7000
Correct answer: DFARS 252.234-7002
DFARS 252.234-7002 is the Earned Value Management System clause mandating EIA-748 compliance.
Question 3: At what contract value threshold does DoD policy generally require a formally validated EVMS?
- $100 million or more (Correct answer)
- $20 million or more
- $50 million or more
- $250 million or more
Correct answer: $100 million or more
Contracts of $100 million or more require an EVMS validated by the cognizant federal agency, while $50 million to under $100 million requires EIA-748 compliance without formal validation.
Question 4: A CAM discovers that budget was transferred from a future work package to cover a current overrun without any scope transfer. What compliance problem does this represent?
- Retroactive or improper budget shifting that masks true performance (Correct answer)
- Acceptable management reserve usage
- A normal replanning action requiring no documentation
- An authorized undistributed budget allocation
Correct answer: Retroactive or improper budget shifting that masks true performance
Moving budget without corresponding scope hides variances and violates EVMS guidelines on maintaining baseline integrity.
Question 5: Which government agency typically serves as the cognizant review authority for EVMS validation on DoD contracts?
- Defense Contract Management Agency (DCMA) (Correct answer)
- Government Accountability Office (GAO)
- Office of Management and Budget (OMB)
- Defense Logistics Agency (DLA)
Correct answer: Defense Contract Management Agency (DCMA)
DCMA performs EVMS compliance reviews and validation for most DoD contracts.
Question 6: During an Integrated Baseline Review (IBR), the primary compliance objective is to verify that the:
- Performance Measurement Baseline realistically captures all authorized scope, schedule, and budget (Correct answer)
- Contractor's profit margin is reasonable
- Subcontractors have signed non-disclosure agreements
- Contract has been fully funded by Congress
Correct answer: Performance Measurement Baseline realistically captures all authorized scope, schedule, and budget
An IBR confirms the Performance Measurement Baseline is realistic and covers the entire authorized work scope with adequate resources.
Question 7: Which of the five EIA-748 guideline categories addresses the requirement to record direct costs in a manner consistent with budgets?
- Accounting Considerations (Correct answer)
- Organization
- Planning, Scheduling, and Budgeting
- Revisions and Data Maintenance
Correct answer: Accounting Considerations
The Accounting Considerations category requires direct costs to be recorded consistently with the way work is budgeted and performed.
CAM Industry Regulations & Compliance 2
Under EIA-748, how many guidelines must a compliant Earned Value Management System (EVMS) address?