CPCM Certified Professional Contract Manager: Professional Ethics in Contract Management 2

Question 1

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

Accepted Answer

Report the discrepancy through proper internal channels immediately

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

A violation of procurement integrity and potentially criminal

Answer

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

CPCM Exam Practice Test