CFCM Contract Planning & Formation 4 — Questions and Answers
Question 1: Under the Truth in Negotiations Act (TINA), certified cost or pricing data are required when a contract exceeds what threshold?
- $150,000
- $750,000
- $2 million (Correct answer)
- $15 million
Correct answer: $2 million
TINA (implemented via FAR 15.403-4) requires submission of certified cost or pricing data for negotiated contracts expected to exceed $2 million, subject to exceptions.
Question 2: A contractor's Certificate of Current Cost or Pricing Data certifies that data submitted is accurate, complete, and current as of:
- The date the solicitation was issued
- The date the contractor submitted the proposal
- The date of agreement on price (Correct answer)
- The date the contract was awarded
Correct answer: The date of agreement on price
FAR 15.406-2 requires the certificate to cover data as of the date of price agreement (or another date agreed upon by the parties), not the proposal submission date.
Question 3: Which of the following is an exception to the requirement for certified cost or pricing data under FAR 15.403-1?
- The contractor is a sole source for the requirement
- Prices are based on adequate price competition (Correct answer)
- The requirement exceeds $15 million
- The contract type is cost-plus-fixed-fee
Correct answer: Prices are based on adequate price competition
FAR 15.403-1(b)(1) exempts acquisitions where adequate price competition establishes price reasonableness, eliminating the need for certified cost data.
Question 4: The Small Business Act set-aside threshold requires that acquisitions with an anticipated value exceeding $10,000 but not exceeding $250,000 be:
- Set aside for 8(a) firms exclusively
- Set aside for HUBZone small businesses only
- Reserved exclusively for small business concerns (Correct answer)
- Competed using full and open competition
Correct answer: Reserved exclusively for small business concerns
FAR 19.502-2(a) mandates that acquisitions between $10,000 and $250,000 are automatically set aside for small business concerns when there is a reasonable expectation of two or more small business offers.
Question 5: In a sealed bid procurement, a bid may be withdrawn before bid opening by:
- Written or telegraphic notice received before bid opening (Correct answer)
- Telephone notice received at any time before award
- Only the bidder's authorized representative in person
- Any written notice received within 24 hours of bid opening
Correct answer: Written or telegraphic notice received before bid opening
FAR 14.303(a) allows bidders to withdraw or modify bids by submitting written or telegraphic notice received before the time set for opening.
Question 6: Which contract type places maximum financial risk on the contractor?
- Cost-Plus-Fixed-Fee (CPFF)
- Cost-Plus-Incentive-Fee (CPIF)
- Firm-Fixed-Price (FFP) (Correct answer)
- Time-and-Materials (T&M)
Correct answer: Firm-Fixed-Price (FFP)
Under a Firm-Fixed-Price contract, the contractor bears all cost risk because the price is not subject to adjustment based on actual costs incurred.
Question 7: A determination that an offeror is 'responsible' under FAR 9.104-1 requires the contracting officer to confirm that the offeror has:
- The lowest proposed price among all offerors
- Adequate financial resources and a satisfactory performance record (Correct answer)
- A current facility security clearance
- No pending litigation against the federal government
Correct answer: Adequate financial resources and a satisfactory performance record
FAR 9.104-1 lists standards including adequate financial resources, satisfactory past performance, integrity, and ability to comply with delivery schedules as elements of contractor responsibility.
CFCM Contract Planning & Formation 4
Under the Truth in Negotiations Act (TINA), certified cost or pricing data are required when a contract exceeds what threshold?