CFCM Standards & Best Practices 3 — Questions and Answers
Question 1: Which FAR clause requires contractors to maintain an acceptable estimating system when they frequently receive cost-reimbursement contracts?
- FAR 52.215-12
- FAR 52.215-22 (Correct answer)
- FAR 52.230-2
- FAR 52.242-14
Correct answer: FAR 52.215-22
FAR 52.215-22 (Limitations on Pass-Through Charges) and the associated 52.215-21 address contractor business systems including estimating system adequacy requirements for frequent cost-reimbursement awardees.
Question 2: Under best practices for contract administration, a Contracting Officer's Representative (COR) should document contractor performance in the Contractor Performance Assessment Reporting System (CPARS) how often at minimum?
- Every 6 months
- Annually (Correct answer)
- At contract closeout only
- Every 90 days
Correct answer: Annually
CPARS regulations require annual evaluations for most contracts, though more frequent interim evaluations may be documented for longer-duration contracts.
Question 3: A Contracting Officer discovers a potential Organizational Conflict of Interest (OCI) after award. What is the FIRST action required under FAR 9.504 best practices?
- Terminate the contract immediately
- Notify the contractor and assess the impact (Correct answer)
- Issue a cure notice
- Contact the Inspector General
Correct answer: Notify the contractor and assess the impact
FAR 9.504 requires the CO to assess OCI situations and notify affected parties before taking corrective action, which may include mitigation, waiver, or termination.
Question 4: Which standard establishes the framework for acceptable accounting systems for contractors performing cost-reimbursement contracts?
- GAAP
- DCAA ICE Model
- FAR 31.201-2
- SF 1408 criteria (Correct answer)
Correct answer: SF 1408 criteria
SF 1408 (Pre-Award Survey of Prospective Contractor—Accounting System) criteria define the characteristics of an acceptable accounting system for cost-type government contracts.
Question 5: Under the Prompt Payment Act, what is the standard payment due date for construction contracts if no other date is specified?
- 14 days after invoice receipt
- 21 days after invoice receipt
- 30 days after invoice receipt (Correct answer)
- 45 days after invoice receipt
Correct answer: 30 days after invoice receipt
The Prompt Payment Act requires payment within 14 days for meat/perishables, but 30 days is the standard for construction contracts when no other period is specified.
Question 6: Which best practice helps prevent scope creep in federal contracts?
- Issuing undefinitized contract actions for all changes
- Maintaining a robust change management process with documented approvals (Correct answer)
- Allowing verbal direction from the program office
- Processing all modifications after work is completed
Correct answer: Maintaining a robust change management process with documented approvals
A disciplined change management process with written approvals ensures all modifications are authorized before work begins, preventing unauthorized scope expansion.
Question 7: According to OFPP Policy Letter 93-1, what is the primary purpose of a source selection plan?
- To document the final contract award decision
- To establish evaluation criteria and procedures before solicitation (Correct answer)
- To record debriefing notes for unsuccessful offerors
- To comply with GAO audit requirements
Correct answer: To establish evaluation criteria and procedures before solicitation
A source selection plan, developed before solicitation, documents the evaluation factors, weights, and procedures to ensure a consistent, fair, and defensible competitive acquisition.
CFCM Standards & Best Practices 3
Which FAR clause requires contractors to maintain an acceptable estimating system when they frequently receive cost-reimbursement contracts?