CFCM Safety & Risk Management 5 — Questions and Answers
Question 1: Under the Walsh-Healey Public Contracts Act, which safety condition is a contractor REQUIRED to maintain for workers on manufacturing contracts exceeding $15,000?
- Provide on-site medical personnel at all times
- Maintain safe and sanitary working conditions (Correct answer)
- Conduct quarterly safety audits reported to the CO
- Limit work shifts to no more than 8 hours without overtime premium
Correct answer: Maintain safe and sanitary working conditions
The Walsh-Healey Public Contracts Act requires contractors to maintain safe and sanitary working conditions for employees manufacturing goods for the government.
Question 2: In a federal contract risk register, a risk rated as 'High Probability / Low Impact' should typically be managed through:
- Risk acceptance with no action
- Active mitigation to reduce the frequency of occurrence (Correct answer)
- Immediate contract termination
- Transfer to a third-party insurer
Correct answer: Active mitigation to reduce the frequency of occurrence
High-probability risks warrant active mitigation efforts to reduce their likelihood even when individual impacts are manageable.
Question 3: The government's authority to conduct safety inspections at a contractor's facility during performance is BEST supported by which contract clause?
- FAR 52.215-2 (Audit and Records)
- FAR 52.246-2 (Inspection of Supplies)
- FAR 52.236-13 (Accident Prevention) (Correct answer)
- FAR 52.249-8 (Default)
Correct answer: FAR 52.236-13 (Accident Prevention)
FAR 52.236-13 explicitly grants the government the right to inspect contractor safety measures and require remediation of unsafe conditions on construction contracts.
Question 4: A contractor on an IT services contract is required to report a cybersecurity incident within 72 hours under which DFARS clause?
- DFARS 252.204-7012 (Correct answer)
- DFARS 252.239-7001
- DFARS 252.223-7001
- DFARS 252.246-7003
Correct answer: DFARS 252.204-7012
DFARS 252.204-7012 (Safeguarding Covered Defense Information) requires contractors to report cyber incidents affecting covered defense information within 72 hours.
Question 5: Which risk management approach is MOST appropriate when a single risk event could cause catastrophic program failure regardless of its probability?
- Risk acceptance
- Risk avoidance by eliminating the activity causing the risk (Correct answer)
- Risk monitoring only
- Risk deferral to contract closeout
Correct answer: Risk avoidance by eliminating the activity causing the risk
Catastrophic risks with unacceptable consequences should be avoided by eliminating the source activity or fundamentally redesigning the approach.
Question 6: Under FAR 52.223-3, hazardous material identification and material safety data sheet (MSDS) requirements apply when a contractor delivers items containing hazardous materials. The MSDS must be provided:
- Only upon written request from the contracting officer
- With each shipment of hazardous materials to the government (Correct answer)
- Annually regardless of delivery schedules
- Only for materials classified as explosives or flammables
Correct answer: With each shipment of hazardous materials to the government
FAR 52.223-3 requires contractors to provide material safety data sheets (or SDS under GHS) with each delivery of hazardous materials to protect government employees who handle them.
Question 7: When performing a contract risk assessment, the term 'risk appetite' refers to:
- The total dollar value of risks identified in the risk register
- The level of risk an organization is willing to accept in pursuit of its objectives (Correct answer)
- The percentage of contract value reserved in management reserve
- The number of risks that can be actively mitigated simultaneously
Correct answer: The level of risk an organization is willing to accept in pursuit of its objectives
Risk appetite defines how much uncertainty an organization is willing to tolerate when pursuing goals, guiding decisions about which risks to accept versus mitigate.
CFCM Safety & Risk Management 5
Under the Walsh-Healey Public Contracts Act, which safety condition is a contractor REQUIRED to maintain for workers on manufacturing contracts exceeding $15,000?