CFCM Contract Formation 2 — Questions and Answers
Question 1: Under FAR Part 13, what is the simplified acquisition threshold (SAT) as of the standard statutory limit?
- $10,000
- $25,000
- $150,000 (Correct answer)
- $250,000
Correct answer: $150,000
The simplified acquisition threshold is generally $150,000 under FAR 2.101, below which simplified acquisition procedures may be used.
Question 2: A contracting officer discovers that a contractor submitted a bid with a material mistake after award. Which FAR subpart governs mistake in bid procedures?
- FAR Subpart 14.4
- FAR Subpart 15.5
- FAR Subpart 14.5 (Correct answer)
- FAR Subpart 13.3
Correct answer: FAR Subpart 14.5
FAR Subpart 14.5 covers mistakes in bids, including procedures for correcting or withdrawing bids before and after award.
Question 3: What is the primary purpose of a Justification and Approval (J&A) document in federal contracting?
- To document price reasonableness determinations
- To authorize use of other than full and open competition (Correct answer)
- To approve contract modifications exceeding $100,000
- To justify sole-source awards under simplified acquisition
Correct answer: To authorize use of other than full and open competition
A J&A is required under FAR 6.303 to document and justify the use of other than full and open competition for a contract action.
Question 4: Which type of contract formation method requires a contracting officer to evaluate proposals and conduct discussions before award?
- Sealed bidding
- Competitive proposals (negotiated acquisition) (Correct answer)
- Purchase orders under SAT
- Reverse auctions
Correct answer: Competitive proposals (negotiated acquisition)
Negotiated acquisition via competitive proposals (FAR Part 15) permits discussions with offerors before source selection and award.
Question 5: A contractor's proposal states it will remain valid for 60 days, but the government needs 90 days to complete evaluation. What must the government do?
- Award within 60 days or lose the offeror
- Request an extension of the proposal validity period (Correct answer)
- Automatically extend the period under FAR authority
- Re-solicit with a new RFP
Correct answer: Request an extension of the proposal validity period
The government must request offerors to extend their proposals if evaluation will exceed the original validity period; offerors may decline.
Question 6: Under FAR 4.102, which document serves as the official contract file record of the government's contractual commitment?
- The solicitation
- The award document (SF-26, SF-33, or DD Form 1155) (Correct answer)
- The contracting officer's determination and findings
- The contractor's signed proposal
Correct answer: The award document (SF-26, SF-33, or DD Form 1155)
Standard forms such as SF-26, SF-33, or DD Form 1155 serve as the official award document evidencing the government's contractual commitment.
Question 7: What is the legal effect of a contracting officer signing a contract without proper authority (warrant)?
- The contract is voidable at the government's option
- The contract is ratified automatically by agency head approval
- The contract is void and unenforceable against the government (Correct answer)
- The contract is binding if the contractor acted in good faith
Correct answer: The contract is void and unenforceable against the government
Contracts signed by individuals without proper contracting authority are void and unenforceable because the government is only bound by agents acting within their authority.
CFCM Contract Formation 2
Under FAR Part 13, what is the simplified acquisition threshold (SAT) as of the standard statutory limit?