CFCM Contract Administration & Performance Management 5 — Questions and Answers
Question 1: A contractor fails to deliver on the required delivery date but argues the delay was excusable. Which of the following qualifies as an excusable delay under FAR 52.249-14?
- A subcontractor's bankruptcy caused by poor management
- An unforeseeable fire destroying contractor facilities (Correct answer)
- Higher-than-expected material costs
- Key personnel departing for a competitor
Correct answer: An unforeseeable fire destroying contractor facilities
FAR 52.249-14 recognizes acts of God, fires, floods, and similar unforeseeable events beyond the contractor's control as excusable causes of delay.
Question 2: Which document establishes the baseline for measuring contractor cost and schedule performance under an EVM system?
- The Work Breakdown Structure (WBS) dictionary
- The Performance Measurement Baseline (PMB) (Correct answer)
- The Integrated Master Schedule (IMS)
- The Contract Data Requirements List (CDRL)
Correct answer: The Performance Measurement Baseline (PMB)
The Performance Measurement Baseline (PMB) is the time-phased budget against which contract performance is measured in an EVM system.
Question 3: Under FAR 32.703-1, a fixed-price contract may be funded in increments. What is this funding approach called?
- Incremental funding (Correct answer)
- Severable service funding
- Advance payment authorization
- Provisional payment arrangement
Correct answer: Incremental funding
Incremental funding allows the government to obligate funds in stages on multi-year fixed-price contracts, provided the contract complies with applicable appropriations law.
Question 4: What is the contracting officer's primary responsibility when a contractor submits a certified cost or pricing data claim that later proves to contain defective data?
- Refer the matter to the Inspector General for criminal investigation
- Reduce the contract price by the overstatement amount plus interest (Correct answer)
- Immediately terminate the contract for default
- Issue a cure notice requiring corrected data within 10 days
Correct answer: Reduce the contract price by the overstatement amount plus interest
Under FAR 15.407-1 and the Truth in Negotiations Act (TINA), the government is entitled to a price reduction equal to the overstatement caused by defective cost or pricing data, plus interest.
Question 5: Which DFARS clause requires DoD contractors to report cybersecurity incidents affecting covered contractor information systems within 72 hours?
- DFARS 252.204-7009
- DFARS 252.204-7012 (Correct answer)
- DFARS 252.215-7007
- DFARS 252.246-7003
Correct answer: DFARS 252.204-7012
DFARS 252.204-7012 (Safeguarding Covered Defense Information) requires contractors to report cyber incidents affecting covered systems within 72 hours of discovery.
Question 6: Under FAR Part 49, which type of termination settlement agreement reimburses the contractor for costs plus a profit on work performed, without negotiating a final price?
- No-cost settlement agreement
- Vouchering settlement (Correct answer)
- Partial termination settlement
- Settlement by determination
Correct answer: Vouchering settlement
A vouchering settlement allows the contractor to submit vouchers for allowable costs plus a negotiated profit rate without fixing a final contract price.
Question 7: When a subcontractor performs defective work on a prime contract, which party bears direct liability to the government for contract non-conformance?
- The subcontractor, because they performed the work
- The prime contractor, because it is responsible for all contract performance (Correct answer)
- Both parties jointly and severally under the Contract Disputes Act
- The government must pursue DCMA to resolve subcontractor issues
Correct answer: The prime contractor, because it is responsible for all contract performance
The prime contractor retains full responsibility for all work performed under the prime contract, including work performed by subcontractors.
CFCM Contract Administration & Performance Management 5
A contractor fails to deliver on the required delivery date but argues the delay was excusable.
Which of the following qualifies as an excusable delay under FAR 52.249-14?