CPCM Certified Professional Contract Manager: Ethics and Compliance 2 — Questions and Answers
Question 1: A contract manager discovers that a subcontractor has been falsifying progress reports. What is the FIRST action the contract manager should take?
- Terminate the subcontract immediately without notice
- Document the discrepancies and report them through the proper internal channels (Correct answer)
- Ignore the issue if the project is on schedule
- Confront the subcontractor publicly at the next project meeting
Correct answer: Document the discrepancies and report them through the proper internal channels
Proper documentation and internal reporting ensure due process and create a defensible record before any formal action is taken.
Question 2: Under the NCMA Code of Ethics, which behavior violates the principle of transparency?
- Disclosing all material facts during negotiations
- Omitting known contract risks from management briefings to avoid delays (Correct answer)
- Providing accurate cost estimates to stakeholders
- Sharing relevant performance data with oversight bodies
Correct answer: Omitting known contract risks from management briefings to avoid delays
Withholding known material information from stakeholders violates the transparency principle of the NCMA Code of Ethics.
Question 3: A federal contract manager receives a gift from a vendor worth $22. Under federal ethics regulations (5 CFR 2635), what should the manager do?
- Accept it since it is under the $25 threshold (Correct answer)
- Decline it to avoid any appearance of impropriety
- Accept it but report it to the ethics officer
- Accept it only if the vendor is not currently under evaluation
Correct answer: Accept it since it is under the $25 threshold
Federal ethics rules permit accepting unsolicited gifts valued at $20 or less per occasion (not $25), but $22 exceeds the per-occasion limit and should be declined or returned.
Question 4: Which scenario BEST describes an organizational conflict of interest (OCI) in contracting?
- A contractor employee moonlights for a competing firm
- A contractor who helped draft the Statement of Work then bids on the resulting contract (Correct answer)
- A contractor submits a late proposal
- A contractor disagrees with the contracting officer's final decision
Correct answer: A contractor who helped draft the Statement of Work then bids on the resulting contract
An OCI exists when a contractor's involvement in drafting requirements gives it an unfair competitive advantage or impairs objectivity on the resulting acquisition.
Question 5: What does the term 'whistleblower protection' mean in the context of government contracting compliance?
- Protection for contractors who submit whistles as contract deliverables
- Legal safeguards preventing retaliation against employees who report fraud or misconduct (Correct answer)
- A clause limiting who can speak to auditors
- A requirement to encrypt all internal communications
Correct answer: Legal safeguards preventing retaliation against employees who report fraud or misconduct
Whistleblower protection laws such as the False Claims Act shield employees from retaliation when they report fraud, waste, or abuse in government contracting.
Question 6: A contract manager is asked by her supervisor to backdate a contract modification to meet an artificial deadline. She should:
- Comply because the supervisor has authority over her
- Refuse, as backdating documents constitutes fraud (Correct answer)
- Backdate only if the change is minor
- Consult the vendor first before deciding
Correct answer: Refuse, as backdating documents constitutes fraud
Backdating contract documents is fraudulent and exposes both the individual and the organization to criminal and civil liability.
Question 7: Which clause is commonly included in contracts to ensure the contractor has an ethics and compliance program?
- FAR 52.222-26 Equal Opportunity
- FAR 52.203-13 Contractor Code of Business Ethics and Conduct (Correct answer)
- FAR 52.232-25 Prompt Payment
- FAR 52.246-2 Inspection of Supplies
Correct answer: FAR 52.203-13 Contractor Code of Business Ethics and Conduct
FAR 52.203-13 requires contractors meeting certain thresholds to implement a written code of ethics, an ethics training program, and an internal control system.
CPCM Certified Professional Contract Manager: Ethics and Compliance 2
A contract manager discovers that a subcontractor has been falsifying progress reports.
What is the FIRST action the contract manager should take?