CFCM Standards & Best Practices 5

Question 1

Which standard practice should a CO follow when a contractor submits a Request for Equitable Adjustment (REA) for a government-caused delay?

Accepted Answer

Review the REA, conduct fact-finding, and negotiate a fair settlement before issuing a final decision

Answer

Best practice requires the CO to analyze the REA, conduct fact-finding with the contractor, and attempt to negotiate a fair settlement before issuing a unilateral final decision.

Question 2

Under FAR 42.302, which contract administration function is specifically reserved for the Contracting Officer and CANNOT be delegated to a COR?

Accepted Answer

Executing contract modifications and exercising contract options

Answer

Only warranted Contracting Officers have authority to execute modifications and exercise options; CORs are explicitly prohibited from taking actions that obligate government funds or change contract terms.

Question 3

According to OMB Circular A-123, what is the federal government's standard for internal controls in contracting?

Accepted Answer

Reasonable assurance that objectives are achieved and risks are managed through documented, monitored processes

Answer

OMB Circular A-123 requires agencies to maintain internal controls providing reasonable assurance—not absolute certainty—that program objectives are met and risks are adequately managed.

Question 4

What is the significance of the 'four corners' doctrine in federal contract interpretation?

Accepted Answer

Courts first look within the contract document itself to resolve ambiguities before considering extrinsic evidence

Answer

The 'four corners' doctrine means courts and boards of contract appeals first examine the contract's own language to resolve disputes before admitting outside evidence of intent.

Question 5

Which best practice does FAR 15.403-1 establish for determining when certified cost or pricing data is NOT required?

Accepted Answer

When prices are based on adequate price competition, catalog prices, or established market prices

Answer

FAR 15.403-1 establishes exceptions to the certified cost or pricing data requirement, including adequate price competition, catalog prices, and established market prices as conditions where submission is not required.

(CFCM) Certified Federal Contracts Manager Practice Test

(CFCM) Certified Federal Contracts Manager Practice Test

CFCM Standards & Best Practices 5