CFCM Contract Financing & Payments 3

Question 1

Under FAR 32.202, which contract types are eligible for performance-based payments?

Accepted Answer

Fixed-price contracts only

Answer

Performance-based payments are authorized only for fixed-price contracts per FAR 32.202-1, not for cost-reimbursement contracts.

Question 2

The 'unusual progress payment' rate that may be authorized for small businesses under FAR 32.501-2 can be as high as:

Accepted Answer

90%

Answer

FAR 32.501-2 permits unusual progress payment rates up to 90% for small businesses in exceptional circumstances.

Question 3

When the government makes an erroneous overpayment to a contractor, the Debt Collection Improvement Act requires the government to:

Accepted Answer

Demand repayment and charge interest from the date of the overpayment

Answer

The Debt Collection Improvement Act requires the government to demand repayment of erroneous overpayments and to assess interest from the date the overpayment was made.

Question 4

A contractor invoicing under a cost-reimbursement contract must submit a completion invoice or final invoice within how many days after contract completion under FAR 52.216-7?

Accepted Answer

120 days

Answer

FAR 52.216-7 requires contractors to submit a completion/final invoice within 120 days after contract completion to enable final settlement.

Question 5

The 'fast payment' procedure under FAR 13.402 allows payment before the government verifies receipt of goods when:

Accepted Answer

The contract is for individual purchases not exceeding $35,000 and the contractor certifies delivery

Answer

FAR 13.402 permits fast payment for individual purchases at or below $35,000 when the contractor agrees to replace, repair, or repay if the government later finds non-delivery.

(CFCM) Certified Federal Contracts Manager Practice Test

(CFCM) Certified Federal Contracts Manager Practice Test

CFCM Contract Financing & Payments 3