CFCM Fundamentals & Core Concepts 3 — Questions and Answers
Question 1: Which FAR subpart establishes the policy that acquisition planning must begin as soon as a need is identified?
- FAR Subpart 7.1 (Correct answer)
- FAR Subpart 6.3
- FAR Subpart 15.2
- FAR Subpart 12.1
Correct answer: FAR Subpart 7.1
FAR Subpart 7.1 governs acquisition plans and requires planning to begin as early as possible in the acquisition cycle.
Question 2: What term describes the legal authority granted to a Contracting Officer to enter into, administer, or terminate contracts on behalf of the government?
- Delegation of Procurement Authority
- Warrant (Correct answer)
- Contracting Officer Representative designation
- Patent authority
Correct answer: Warrant
A warrant is the official document that grants a Contracting Officer the legal authority to bind the government in contractual agreements.
Question 3: Under the Competition in Contracting Act (CICA), what is the default competition requirement for federal acquisitions?
- Best value competition
- Full and open competition (Correct answer)
- Simplified acquisition procedures
- Set-aside for small businesses
Correct answer: Full and open competition
CICA mandates full and open competition as the default, allowing all responsible sources to compete for federal contracts.
Question 4: Which document serves as the primary vehicle for communicating the government's requirements to prospective offerors in a negotiated acquisition?
- Invitation for Bids (IFB)
- Request for Proposal (RFP) (Correct answer)
- Purchase Order
- Blanket Purchase Agreement
Correct answer: Request for Proposal (RFP)
A Request for Proposal (RFP) is used in negotiated acquisitions to solicit offers and allows for discussion and negotiation with offerors.
Question 5: What is the primary purpose of the Federal Acquisition Regulation (FAR)?
- To establish pay scales for federal procurement employees
- To codify uniform acquisition policies and procedures for executive agencies (Correct answer)
- To set maximum prices for commercial items
- To define security clearance requirements for contractors
Correct answer: To codify uniform acquisition policies and procedures for executive agencies
The FAR establishes uniform acquisition policies and procedures that all executive branch agencies must follow when procuring goods and services.
Question 6: A contractor who knowingly presents a false claim to the government may be liable under which federal statute?
- Anti-Kickback Act
- False Claims Act (Correct answer)
- Buy American Act
- Service Contract Labor Standards
Correct answer: False Claims Act
The False Claims Act imposes civil and criminal penalties on contractors who knowingly submit fraudulent claims or statements to the federal government.
Question 7: Which type of contract places the maximum cost risk on the contractor?
- Cost-Plus-Fixed-Fee (CPFF)
- Firm-Fixed-Price (FFP) (Correct answer)
- Cost-Plus-Incentive-Fee (CPIF)
- 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 set at award and does not change regardless of actual costs incurred.
CFCM Fundamentals & Core Concepts 3
Which FAR subpart establishes the policy that acquisition planning must begin as soon as a need is identified?