CFCM Contract Formation 5 — Questions and Answers
Question 1: Under FAR 15.403-3, when is an offeror required to provide information other than certified cost or pricing data?
- When the contract is below the TINA threshold but the contracting officer needs it to determine price reasonableness (Correct answer)
- Only when there is no competition for the contract
- Whenever the contracting officer suspects fraud
- When the contract exceeds $10 million regardless of competition
Correct answer: When the contract is below the TINA threshold but the contracting officer needs it to determine price reasonableness
When certified cost or pricing data is not required (e.g., below threshold or exception applies), the contracting officer may still request other data sufficient to determine price reasonableness.
Question 2: A contractor submits a proposal in response to an RFP but includes a term that differs materially from the RFP requirements. Under contract law principles applicable to federal contracting, this proposal is best characterized as:
- An acceptance with a request for modification
- A counteroffer that rejects the original solicitation terms (Correct answer)
- A conditional acceptance that becomes binding when the government responds
- A responsive offer subject to negotiation
Correct answer: A counteroffer that rejects the original solicitation terms
Under the mirror image rule, a response that materially varies from the offer's terms constitutes a counteroffer and rejection of the original terms.
Question 3: What is the 'cardinal change doctrine' in federal contract law?
- The rule that contract changes must be in writing to be enforceable
- A doctrine holding that a change so substantial it alters the nature of the contracted work constitutes a breach rather than a valid change order (Correct answer)
- The principle that the government must compensate contractors for all requested changes
- A rule requiring congressional approval for contract changes exceeding $50 million
Correct answer: A doctrine holding that a change so substantial it alters the nature of the contracted work constitutes a breach rather than a valid change order
The cardinal change doctrine holds that a change so drastic it fundamentally alters the character of the work exceeds the Changes clause authority and constitutes a breach of contract.
Question 4: Which of the following best describes 'privity of contract' and its significance in federal subcontracting?
- It requires all subcontractors to be registered in SAM.gov
- It means the government has a direct contractual relationship only with the prime contractor, not subcontractors (Correct answer)
- It gives subcontractors the right to sue the government directly for payment
- It requires the government to approve all subcontractors before award
Correct answer: It means the government has a direct contractual relationship only with the prime contractor, not subcontractors
Privity of contract means only the prime contractor has a direct legal relationship with the government; subcontractors generally cannot sue the government directly.
Question 5: A contracting officer wants to award a sole-source contract citing 'unusual and compelling urgency' under FAR 6.302-2. What is required?
- GAO approval and a congressional notification
- A written J&A approved at the appropriate level and limited competition to the extent practicable (Correct answer)
- Only a brief memo in the contract file explaining the urgency
- Agency head certification and public notice 30 days before award
Correct answer: A written J&A approved at the appropriate level and limited competition to the extent practicable
FAR 6.302-2 requires a written J&A approved at the appropriate level citing the urgency exception, and the government must still compete the requirement to the extent practicable.
Question 6: Under FAR 14.201-6, which of the following is an example of an ambiguity that could make a sealed bid nonresponsive?
- A typographical error in the bidder's name
- A bid that does not clearly commit to all material requirements of the solicitation (Correct answer)
- A minor variation in the bid bond amount
- A bid submitted one hour before the deadline
Correct answer: A bid that does not clearly commit to all material requirements of the solicitation
A bid is nonresponsive when it does not clearly commit to meeting all material requirements of the IFB; ambiguity about material terms prevents the government from accepting the bid as submitted.
Question 7: What does 'synopsize' mean in the context of federal contract formation, and when is it required?
- To summarize award results in the contract file
- To publish a notice of a proposed contract action in SAM.gov so that all interested sources may respond (Correct answer)
- To provide a price summary to unsuccessful offerors after award
- To consolidate multiple requirements into a single solicitation
Correct answer: To publish a notice of a proposed contract action in SAM.gov so that all interested sources may respond
Synopsizing means publishing advance notice of contract opportunities in SAM.gov (formerly FBO) as required by FAR Subpart 5.2, generally for acquisitions expected to exceed $25,000.
CFCM Contract Formation 5
Under FAR 15.403-3, when is an offeror required to provide information other than certified cost or pricing data?