CDFM Performance Management and Metrics 4 — Questions and Answers
Question 1: Which DoD framework establishes the requirement for defense organizations to link strategic goals to measurable performance outcomes?
- Federal Acquisition Regulation (FAR)
- Government Performance and Results Modernization Act (GPRAMA) (Correct answer)
- Office of Management and Budget Circular A-11
- Defense Contract Audit Agency Manual
Correct answer: Government Performance and Results Modernization Act (GPRAMA)
GPRAMA (2010) requires federal agencies, including DoD components, to establish strategic goals, objectives, and measurable performance indicators aligned to mission outcomes.
Question 2: When a defense program office calculates 'cost per output' as a performance metric, which category of performance measure does this represent?
- Efficiency measure (Correct answer)
- Effectiveness measure
- Output measure
- Outcome measure
Correct answer: Efficiency measure
Cost per output is an efficiency measure because it expresses the resource cost required to produce a single unit of output, reflecting operational economy.
Question 3: A CDFM candidate reviews a program where actual obligations are 40% below the performance plan midpoint. What is the most appropriate initial corrective action?
- Immediately rescind remaining authority
- Conduct a variance analysis to identify the root cause (Correct answer)
- Request a reprogramming action to shift funds
- Submit a Quarterly Apportionment Request to OMB
Correct answer: Conduct a variance analysis to identify the root cause
Variance analysis is the proper first step to determine whether the shortfall reflects execution problems, schedule slippage, or changed requirements before taking corrective action.
Question 4: Under the DoD Planning, Programming, Budgeting, and Execution (PPBE) system, performance metrics collected during the Execution phase primarily feed back into which subsequent phase?
- Planning
- Programming
- Budgeting
- All three phases equally (Correct answer)
Correct answer: All three phases equally
Execution data informs all three preceding PPBE phases — historical performance shapes strategic planning, program objective revision (programming), and budget justification simultaneously.
Question 5: Which statistical concept is most relevant when evaluating whether a performance trend is due to a real change versus random variation in DoD metrics?
- Simple moving average
- Statistical process control (SPC) (Correct answer)
- Earned Value threshold
- Cost Growth Index
Correct answer: Statistical process control (SPC)
Statistical process control techniques distinguish between common-cause (random) variation and special-cause variation, helping managers determine whether a metric trend warrants intervention.
Question 6: A defense agency's Annual Performance Plan (APP) must be submitted to OMB concurrent with which document?
- The President's Budget (Correct answer)
- The Congressional Budget Justification
- The Future Years Defense Program (FYDP)
- The National Defense Authorization Act
Correct answer: The President's Budget
Under GPRAMA, agencies submit their Annual Performance Plans to OMB coincident with the President's Budget submission, typically in early February.
Question 7: In DoD performance management, a 'lagging indicator' for a logistics program would BEST be described as:
- Warehouse capacity utilization rate measured weekly
- Number of procurement contracts awarded in the current quarter
- Total equipment readiness rates reported at fiscal year end (Correct answer)
- Days of supply on hand tracked daily
Correct answer: Total equipment readiness rates reported at fiscal year end
Lagging indicators measure outcomes after they have occurred; year-end readiness rates reflect past performance rather than predicting or driving future results.
CDFM Performance Management and Metrics 4
Which DoD framework establishes the requirement for defense organizations to link strategic goals to measurable performance outcomes?