CFCM Fundamentals & Core Concepts 4 — Questions and Answers
Question 1: What is the Simplified Acquisition Threshold (SAT) as established under federal acquisition regulations?
- $50,000
- $150,000 (Correct answer)
- $250,000
- $500,000
Correct answer: $150,000
The Simplified Acquisition Threshold is $150,000, below which agencies may use simplified acquisition procedures to reduce administrative burden.
Question 2: Which government-wide database must contractors register in before being awarded most federal contracts?
- Federal Procurement Data System (FPDS)
- System for Award Management (SAM.gov) (Correct answer)
- USASpending.gov
- PIEE (Procurement Integrated Enterprise Environment)
Correct answer: System for Award Management (SAM.gov)
SAM.gov (System for Award Management) is the official registration system that contractors must use to be eligible for federal contract awards.
Question 3: Under FAR Part 19, what percentage of total prime contract dollars is the governmentwide small business prime contracting goal?
- 15%
- 20%
- 23% (Correct answer)
- 30%
Correct answer: 23%
The governmentwide small business prime contracting goal is 23% of total eligible federal contract dollars, as established under the Small Business Act.
Question 4: What is the purpose of a Justification and Approval (J&A) document in federal contracting?
- To justify a sole-source or other than full and open competition award (Correct answer)
- To approve a contractor's proposed accounting system
- To document a contracting officer's warrant level
- To authorize use of a different agency's contract vehicle
Correct answer: To justify a sole-source or other than full and open competition award
A J&A documents the legal basis and approval authority for awarding a contract without full and open competition.
Question 5: Which principle holds that a contractor cannot bind the government to a contract unless the individual signing had actual authority to do so?
- Privity of contract
- Apparent authority doctrine
- Actual authority requirement (Correct answer)
- Ratification rule
Correct answer: Actual authority requirement
In federal contracting, only an authorized Contracting Officer with actual authority can legally bind the government — apparent authority does not apply as it does in commercial law.
Question 6: What does the term 'privity of contract' mean in a federal contracting context?
- The confidentiality requirements for classified contracts
- The direct legal relationship between the government and the prime contractor (Correct answer)
- The right of subcontractors to sue the government
- The privacy protections for proprietary data
Correct answer: The direct legal relationship between the government and the prime contractor
Privity of contract refers to the direct contractual relationship between the government and the prime contractor, generally excluding subcontractors from that relationship.
Question 7: Which evaluation approach considers both price and non-price factors to select the offer that provides the greatest benefit to the government?
- Lowest-price technically acceptable (LPTA)
- Best value tradeoff (Correct answer)
- Sealed bidding award
- Sole-source justification
Correct answer: Best value tradeoff
The best value tradeoff approach allows the government to pay a price premium for superior technical or performance factors when warranted.
CFCM Fundamentals & Core Concepts 4
What is the Simplified Acquisition Threshold (SAT) as established under federal acquisition regulations?