CFCM Professional Ethics & Conduct 5 — Questions and Answers
Question 1: A CFCM candidate is asked by their employer to certify a claim they believe is inflated. Under NCMA's ethical standards, the appropriate response is to:
- Certify the claim since the employer is ultimately responsible
- Refuse to certify a claim they believe is inaccurate and document their objection (Correct answer)
- Request a transfer to avoid involvement while allowing the claim to proceed
- Submit the claim with a confidential addendum noting the disagreement
Correct answer: Refuse to certify a claim they believe is inaccurate and document their objection
NCMA's Code of Ethics and the Contract Disputes Act require that certifications reflect honest belief in the accuracy of the claim; certifying a known overstatement is fraud.
Question 2: Which regulatory mechanism requires contractors with contracts over $5.5 million and a performance period of 120+ days to maintain a written code of business ethics?
- FAR 52.203-13, Contractor Code of Business Ethics and Conduct (Correct answer)
- FAR 52.215-2, Audit and Records—Negotiation
- DFARS 252.203-7001, Prohibition on Persons Convicted of Fraud
- FAR 52.209-5, Certification Regarding Responsibility Matters
Correct answer: FAR 52.203-13, Contractor Code of Business Ethics and Conduct
FAR 52.203-13 mandates that qualifying contractors maintain a written ethics code, employee training, and an internal reporting mechanism (hotline).
Question 3: A contractor submits a proposal that includes labor rates based on a teaming agreement that has since fallen through. The contract manager is aware of this. What is the ethical obligation?
- Submit the proposal as is, since the agreement was valid at the time of the original estimate
- Disclose the change in circumstances to the contracting officer before award (Correct answer)
- Substitute other labor categories without notification to avoid re-evaluation delays
- Proceed with award and address the staffing issue during contract performance
Correct answer: Disclose the change in circumstances to the contracting officer before award
Material changes in the basis for a proposal must be disclosed to the Government to avoid misrepresentation; failure to disclose can constitute fraud.
Question 4: Under the Procurement Integrity Act (41 U.S.C. § 2102), which information is specifically prohibited from being disclosed during a federal procurement?
- Pre-award audit findings and past performance ratings of competitors
- Contractor bid or proposal information and source selection sensitive information (Correct answer)
- The agency's overall program budget and five-year acquisition plan
- Market research results and industry survey responses
Correct answer: Contractor bid or proposal information and source selection sensitive information
The Procurement Integrity Act specifically protects contractor bid or proposal information and source selection sensitive information from unauthorized disclosure.
Question 5: A contracting officer suspects a contractor is front-loading a fixed-price contract by inflating early milestone payments. This practice is ethically problematic because it:
- Violates the limitation of funds clause in the contract
- Creates an unfair financial advantage for the contractor by receiving payment before value is delivered, and may misrepresent actual costs (Correct answer)
- Is prohibited only on cost-reimbursement contracts under FAR Part 16
- Constitutes a bid protest ground under GAO procedures
Correct answer: Creates an unfair financial advantage for the contractor by receiving payment before value is delivered, and may misrepresent actual costs
Front-loading misrepresents the value of work performed and shifts financial risk to the Government by paying for work not yet accomplished.
Question 6: Under 5 C.F.R. Part 2635, a Government employee who is negotiating a contract with a company and simultaneously seeking employment with that company must:
- Complete the procurement before accepting any employment offer
- Recuse themselves from the procurement and report the employment contact to their ethics official (Correct answer)
- Obtain written approval from the contracting officer's supervisor
- Limit contact to only email communications until the contract is awarded
Correct answer: Recuse themselves from the procurement and report the employment contact to their ethics official
Seeking employment with a contractor on a matter you are handling is a disqualifying financial interest requiring immediate recusal and ethics official notification.
Question 7: A CFCM who also serves as NCMA chapter president learns that a member has submitted a fraudulent small business certification on a set-aside contract. The CFCM's ethical obligation is to:
- Address the matter solely through the NCMA's internal disciplinary process
- Report the credible evidence of fraud to the appropriate Government authority (OIG or SBA OIG) regardless of the professional relationship (Correct answer)
- Counsel the member privately and allow them to self-report within 30 days
- Refer the matter only to the NCMA Ethics Committee without involving Government agencies
Correct answer: Report the credible evidence of fraud to the appropriate Government authority (OIG or SBA OIG) regardless of the professional relationship
Fraudulent set-aside certifications are federal crimes; the CFCM's duty to uphold the law supersedes professional relationships, and reporting to the appropriate Government authority is required.
CFCM Professional Ethics & Conduct 5
A CFCM candidate is asked by their employer to certify a claim they believe is inflated.
Under NCMA's ethical standards, the appropriate response is to: