CFCM Safety & Risk Management 4 — Questions and Answers
Question 1: In federal contracting, a 'residual risk' is best defined as:
- Risk that remains after all mitigation measures have been applied (Correct answer)
- Risk that has been transferred to an insurance provider
- Risk identified after contract award that was not in the original risk register
- Risk associated with subcontractor performance only
Correct answer: Risk that remains after all mitigation measures have been applied
Residual risk is the level of risk that remains after risk responses and mitigation strategies have been implemented.
Question 2: The Contractor Safety Report required under some DoD contracts primarily serves to:
- Establish contractor liability for workplace accidents
- Provide data on mishaps and safety trends to improve program oversight (Correct answer)
- Replace the requirement for OSHA 300 logs
- Fulfill contract closeout documentation requirements
Correct answer: Provide data on mishaps and safety trends to improve program oversight
Contractor safety reports give the government visibility into mishap trends and help program managers identify systemic safety issues requiring corrective action.
Question 3: Which FAR clause requires contractors to post notice of employees' rights under federal labor laws, including safety-related rights under OSHA?
- FAR 52.222-26
- FAR 52.222-40 (Correct answer)
- FAR 52.223-6
- FAR 52.236-13
Correct answer: FAR 52.222-40
FAR 52.222-40 (Notification of Employee Rights Under the National Labor Relations Act) requires posting notices that include workers' rights to safe working conditions.
Question 4: A contractor performing a Service Contract Act-covered contract discovers that a required safety training program will cost more than anticipated. The appropriate mechanism to seek equitable adjustment is a:
- Voluntary disclosure to the IG
- Request for equitable adjustment under the Changes clause (Correct answer)
- Bilateral modification initiated by the contractor unilaterally
- Stop-work order pending negotiation
Correct answer: Request for equitable adjustment under the Changes clause
When a government-directed change increases costs, the contractor should submit a request for equitable adjustment (REA) under the Changes clause (FAR 52.243-1).
Question 5: For purposes of risk quantification in federal acquisition, 'Expected Monetary Value' (EMV) is calculated as:
- Total contract value multiplied by risk probability
- Probability of occurrence multiplied by the monetary impact (Correct answer)
- Cost of mitigation divided by risk probability
- Total identified risks divided by contract period of performance
Correct answer: Probability of occurrence multiplied by the monetary impact
EMV = Probability × Impact (monetary value), providing a single figure that represents the average outcome weighted by likelihood.
Question 6: Under FAR 28.306, when a contracting officer determines that a contractor's insurance coverage is inadequate, the CO may:
- Terminate the contract for default immediately
- Require the contractor to obtain additional coverage before work continues (Correct answer)
- Assume the risk on behalf of the government
- Convert the contract to a cost-plus arrangement
Correct answer: Require the contractor to obtain additional coverage before work continues
FAR 28.306 authorizes contracting officers to require contractors to obtain and maintain adequate insurance coverage as a condition of continued performance.
Question 7: Which document establishes the framework for DoD system safety requirements on major defense acquisition programs?
- MIL-STD-882 (Correct answer)
- FAR Part 46
- DFARS 252.223-7001
- DoDI 5000.02
Correct answer: MIL-STD-882
MIL-STD-882 (System Safety) establishes requirements and guidance for developing and implementing a system safety program on defense acquisition programs.
CFCM Safety & Risk Management 4
In federal contracting, a 'residual risk' is best defined as: