CPCM Certified Professional Contract Manager: Procurement Strategies and Vendor Relations 5 — Questions and Answers
Question 1: A contract manager receives an unsolicited proposal from a vendor offering an innovative solution. Under FAR, the FIRST step is to:
- Immediately award a sole-source contract
- Evaluate the proposal for unique and innovative concepts before deciding next steps (Correct answer)
- Return the proposal without review to protect procurement integrity
- Post the proposal publicly to solicit competing offers
Correct answer: Evaluate the proposal for unique and innovative concepts before deciding next steps
FAR Part 15.6 requires agencies to evaluate unsolicited proposals for unique or innovative concepts before determining the appropriate course of action.
Question 2: Which dispute resolution method is typically FASTEST and LEAST adversarial for contract disagreements?
- Litigation in federal court
- Alternative dispute resolution (ADR) such as mediation (Correct answer)
- Formal appeals to the Armed Services Board of Contract Appeals
- Filing a claim under the Contract Disputes Act
Correct answer: Alternative dispute resolution (ADR) such as mediation
ADR methods like mediation facilitate voluntary, collaborative resolution without the time and expense of formal legal proceedings.
Question 3: In source selection, 'best value' procurement differs from 'lowest price technically acceptable (LPTA)' in that best value:
- Always awards to the highest-rated technically superior vendor regardless of price
- Allows tradeoffs between price and non-price factors to achieve the optimal solution (Correct answer)
- Prohibits price from being evaluated alongside technical merit
- Is only used for research and development contracts
Correct answer: Allows tradeoffs between price and non-price factors to achieve the optimal solution
Best value source selection permits award to a higher-priced vendor if the superior technical merit justifies the cost premium through a documented tradeoff analysis.
Question 4: A contract manager needs to add new work that was not anticipated in the original scope. This should be handled through:
- An informal email agreement with the vendor
- A bilateral contract modification with appropriate consideration (Correct answer)
- A unilateral change order reducing the original scope
- A new competitive solicitation only if the value exceeds $10,000
Correct answer: A bilateral contract modification with appropriate consideration
Adding new work requires a bilateral modification signed by both parties to ensure mutual agreement and proper contractual authority.
Question 5: What is the primary purpose of 'market research' prior to developing a procurement strategy?
- To identify and contact only large business vendors
- To understand the commercial marketplace, available solutions, and industry capabilities (Correct answer)
- To determine the agency's annual budget allocation
- To publicize the government's requirements to potential vendors
Correct answer: To understand the commercial marketplace, available solutions, and industry capabilities
Market research informs the acquisition strategy by identifying available commercial items, industry practices, and capable vendors before requirements are finalized.
Question 6: Which risk mitigation strategy involves requiring a vendor to maintain a minimum inventory level dedicated to a buyer's needs?
- Hedging
- Safety stock or buffer stock requirement (Correct answer)
- Dual sourcing
- Forward buying
Correct answer: Safety stock or buffer stock requirement
Requiring a dedicated safety stock ensures the buyer has access to critical materials even during supply chain disruptions.
Question 7: A contract manager reviewing a vendor's invoice finds charges for work not yet completed. The CORRECT action is:
- Pay the invoice in full to maintain the vendor relationship
- Reject the invoice and issue a written explanation of the discrepancy (Correct answer)
- Deduct the amount from a future payment without notifying the vendor
- Report the vendor to law enforcement immediately
Correct answer: Reject the invoice and issue a written explanation of the discrepancy
The contract manager must formally reject incorrect invoices in writing, citing the specific discrepancies, to ensure proper payment controls.
CPCM Certified Professional Contract Manager: Procurement Strategies and Vendor Relations 5
A contract manager receives an unsolicited proposal from a vendor offering an innovative solution.
Under FAR, the FIRST step is to: