Certified Professional Contract Manager: Professional Ethics in Contract Management Flashcards

A contract manager discovers that a subcontractor has submitted invoices with inflated labor hours. What is the FIRST ethical obligation?

Answer: Report the discrepancy through proper internal channels immediately

Ethical contract managers must report suspected fraud or billing irregularities through proper internal channels without delay.

Under NCMA's Code of Ethics, what does the principle of 'loyalty' primarily require of a contract manager?

Answer: Advancing the interests of the employer within the bounds of ethical conduct

Loyalty in NCMA's Code requires advancing the employer's legitimate interests while staying within ethical and legal boundaries.

A government contract manager is offered a job by a contractor whose bid she is currently evaluating. What should she do?

Answer: Recuse herself from the evaluation and report the contact per agency rules

Federal ethics rules require recusal and disclosure when a procurement official has employment discussions with an offeror.

Which scenario BEST illustrates an organizational conflict of interest (OCI) in contract management?

Answer: A firm that helped write a solicitation later bids on the same contract

An OCI occurs when a firm's role in developing requirements gives it an unfair competitive advantage or impairs its objectivity.

A contract manager learns a colleague is sharing source selection pricing data with a preferred vendor. This is BEST described as:

Answer: A violation of procurement integrity and potentially criminal

Sharing source selection information violates the Procurement Integrity Act and can result in criminal penalties.

What is the ethical significance of 'full and open competition' in government contracting?

Answer: It ensures fairness, best value, and public trust in the procurement process

Full and open competition is a foundational ethical principle that promotes fairness, transparency, and accountability in government spending.

A contract manager is pressured by a supervisor to waive a required compliance check to meet a schedule deadline. The ethical response is to:

Answer: Document the pressure, explain the risk, and escalate if the waiver is improper

Ethical professionals document inappropriate pressure, communicate risks clearly, and escalate through proper channels when required.