CPCM Contract Performance and Administration 2 — Questions and Answers
Question 1: What is the primary purpose of a Contractor Performance Assessment Reporting System (CPARS) evaluation?
- To award contract modifications
- To document contractor past performance for future source selections (Correct answer)
- To calculate the contractor's profit on a cost-type contract
- To satisfy small business subcontracting plan requirements
Correct answer: To document contractor past performance for future source selections
CPARS evaluations create an official record of contractor performance that source selection officials consult when evaluating past performance in future procurements.
Question 2: A cure notice is issued to a contractor when:
- The government anticipates a schedule delay of more than 10 days
- The contractor's failure to perform endangers timely contract completion (Correct answer)
- The contractor submits an unsatisfactory CPARS rebuttal
- The government decides to exercise a contract option
Correct answer: The contractor's failure to perform endangers timely contract completion
FAR 49.607 requires a cure notice when contract performance is endangered, giving the contractor at least 10 days to cure the problem before a termination for default.
Question 3: What distinguishes a 'show cause' notice from a 'cure notice'?
- A show cause notice is issued before a cure notice
- A show cause notice is issued when the contractor has already failed to meet a delivery date and default termination is being considered (Correct answer)
- A show cause notice provides 30 days to respond rather than 10
- A show cause notice is only used on cost-type contracts
Correct answer: A show cause notice is issued when the contractor has already failed to meet a delivery date and default termination is being considered
A show cause notice is issued after a delivery failure has already occurred and asks the contractor to explain why the contract should not be terminated for default.
Question 4: Which of the following is an example of government-furnished equipment (GFE) risk in contract administration?
- Contractor fails to obtain required bonding
- Government delays delivery of GFE causing contractor schedule slippage (Correct answer)
- Contractor submits a late invoice
- Contractor exceeds the contract ceiling on a cost-type contract
Correct answer: Government delays delivery of GFE causing contractor schedule slippage
When the government fails to provide GFE on time, the contractor may have a valid excusable delay or even a breach of contract claim, shifting schedule risk to the government.
Question 5: Under FAR 52.246, a first-article test (FAT) is designed to:
- Establish the final contract price after production
- Verify that the contractor can produce items meeting contract requirements before full production begins (Correct answer)
- Replace the need for progress payment audits
- Demonstrate contractor financial responsibility
Correct answer: Verify that the contractor can produce items meeting contract requirements before full production begins
First-article testing verifies production processes and materials before committing to full production, reducing the risk of large-scale nonconformance.
Question 6: Which metric measures the cost efficiency of work performed in Earned Value Management?
- Schedule Performance Index (SPI)
- Cost Performance Index (CPI) (Correct answer)
- Budget at Completion (BAC)
- Variance at Completion (VAC)
Correct answer: Cost Performance Index (CPI)
The Cost Performance Index (CPI) = Earned Value ÷ Actual Cost; a CPI below 1.0 means the project is spending more than the value of work accomplished.
CPCM Contract Performance and Administration 2
What is the primary purpose of a Contractor Performance Assessment Reporting System (CPARS) evaluation?