CFCM Fundamentals & Core Concepts 5 — Questions and Answers
Question 1: Which FAR clause is required in most contracts and prohibits contractors from engaging in contingent fee arrangements to obtain government contracts?
- FAR 52.203-5, Covenant Against Contingent Fees (Correct answer)
- FAR 52.215-2, Audit and Records
- FAR 52.222-26, Equal Opportunity
- FAR 52.209-6, Protecting the Government's Interest
Correct answer: FAR 52.203-5, Covenant Against Contingent Fees
FAR 52.203-5 requires contractors to warrant that no person was employed on a contingent-fee basis to solicit or obtain the contract.
Question 2: What is a Blanket Purchase Agreement (BPA) most accurately described as?
- A type of indefinite-delivery contract
- A charge account established with qualified suppliers for repetitive needs (Correct answer)
- A multi-year contract with options
- A small business set-aside vehicle
Correct answer: A charge account established with qualified suppliers for repetitive needs
A BPA is a simplified method for filling anticipated repetitive needs by establishing a 'charge account' arrangement with a supplier, reducing administrative burden.
Question 3: Under federal acquisition law, which of the following best describes an 'option' in a contract?
- A contractor's right to decline additional work
- A unilateral right of the government to acquire additional supplies, services, or extend the contract term (Correct answer)
- A bilateral agreement to renegotiate contract terms
- An agency's authority to cancel the contract
Correct answer: A unilateral right of the government to acquire additional supplies, services, or extend the contract term
An option gives the government a unilateral right to purchase additional quantities or extend performance at prices and terms established at the time of the basic contract award.
Question 4: What is the primary distinction between 'sealed bidding' and 'negotiated acquisition' under the FAR?
- Sealed bidding requires a written solicitation; negotiated acquisition does not
- Sealed bidding awards to the lowest responsive, responsible bidder with no discussions; negotiated acquisition allows discussions (Correct answer)
- Sealed bidding is only for small businesses; negotiated is for large businesses
- Sealed bidding is used above the SAT; negotiated below
Correct answer: Sealed bidding awards to the lowest responsive, responsible bidder with no discussions; negotiated acquisition allows discussions
In sealed bidding, award goes to the lowest responsive responsible bidder with no negotiations, while negotiated acquisition permits discussions and best value tradeoffs.
Question 5: Which of the following accurately describes the role of a Contracting Officer's Representative (COR)?
- Signs contracts and modifications on behalf of the government
- Monitors contractor performance and provides technical guidance within the scope of their delegation (Correct answer)
- Approves contractor invoices without CO review
- Negotiates contract terms with prospective contractors
Correct answer: Monitors contractor performance and provides technical guidance within the scope of their delegation
A COR is delegated limited authority to monitor performance and provide technical direction, but cannot make commitments that alter contract terms — only the CO can do that.
Question 6: What does 'responsibility' mean when applied to a prospective contractor under FAR Part 9?
- The contractor has submitted the lowest price
- The contractor possesses the financial, technical, and organizational capability to perform the contract (Correct answer)
- The contractor is registered in SAM.gov
- The contractor has no outstanding litigation
Correct answer: The contractor possesses the financial, technical, and organizational capability to perform the contract
Responsibility refers to a prospective contractor's ability to perform — including adequate financial resources, technical capability, satisfactory performance record, and integrity.
Question 7: Under the Federal Acquisition Streamlining Act (FASA), which acquisition category received expanded use of commercial item acquisition procedures?
- Major defense programs only
- Commercially available off-the-shelf (COTS) and commercial items broadly (Correct answer)
- Research and development contracts
- Classified acquisitions
Correct answer: Commercially available off-the-shelf (COTS) and commercial items broadly
FASA expanded the use of commercial item acquisition procedures to maximize competition and reduce unique government requirements for commercially available products and services.
CFCM Fundamentals & Core Concepts 5
Which FAR clause is required in most contracts and prohibits contractors from engaging in contingent fee arrangements to obtain government contracts?