CPCM Certified Professional Contract Manager: Professional Ethics in Contract Management 3 — Questions and Answers
Question 1: In contract management, 'due diligence' is an ethical requirement that means:
- Completing tasks as quickly as possible to meet deadlines
- Thoroughly investigating facts, risks, and compliance before committing to contract actions (Correct answer)
- Delegating all research to junior staff
- Accepting contractor representations without independent verification
Correct answer: Thoroughly investigating facts, risks, and compliance before committing to contract actions
Due diligence requires contract managers to independently verify material facts and risks before taking contractual action.
Question 2: A contractor proposes a teaming arrangement that would eliminate the only other qualified competitor. Which ethical concern is MOST relevant?
- Price escalation risk
- Potential antitrust violation and harm to competitive integrity (Correct answer)
- Subcontractor management complexity
- Schedule acceleration challenges
Correct answer: Potential antitrust violation and harm to competitive integrity
Teaming arrangements that eliminate competition may violate antitrust laws and undermine the ethical principle of fair competition.
Question 3: Which of the following BEST describes 'ethical reciprocity' in contractor-government relationships?
- The government must give contractors equal contract value each year
- Both parties have mutual obligations to deal honestly and in good faith (Correct answer)
- Contractors must match every government concession with an equal one
- The government must share source selection results with all bidders
Correct answer: Both parties have mutual obligations to deal honestly and in good faith
Ethical reciprocity means both government and contractor parties owe each other honesty, good faith, and fair dealing throughout the contract.
Question 4: A contract manager notices her agency's small business set-aside goals are being met by misclassifying large businesses. The ethical course of action is to:
- Continue processing contracts since goals are technically being met
- Report the misclassification to the appropriate oversight authority (Correct answer)
- Ask the large businesses to create small subsidiaries
- Recommend eliminating set-aside requirements
Correct answer: Report the misclassification to the appropriate oversight authority
Misclassifying business size to meet set-aside goals is fraudulent and must be reported to protect program integrity.
Question 5: When a contract manager has a personal religious or moral objection to a legal contract requirement, the ethical approach is to:
- Refuse to process the contract and document the objection
- Seek reassignment if the conflict is irreconcilable, while fulfilling duties in the interim (Correct answer)
- Modify the requirement to align with personal values
- Ignore personal objections and process the requirement
Correct answer: Seek reassignment if the conflict is irreconcilable, while fulfilling duties in the interim
Professionals should seek reassignment for genuine personal conflicts while meeting their obligations until a transition is arranged.
Question 6: What is the PRIMARY ethical risk when a contract manager accepts 'informational briefings' from vendors during source selection?
- Increased paperwork burden on the contracting office
- Receiving information that unfairly advantages one offeror over others (Correct answer)
- Delaying the award decision timeline
- Creating confusion about technical requirements
Correct answer: Receiving information that unfairly advantages one offeror over others
Vendor briefings during source selection risk tainting the competitive process by giving one offeror an informational advantage.
Question 7: Under the False Claims Act, which behavior by a contract manager could create personal liability?
- Approving a contract modification for changed work
- Knowingly certifying a false invoice or claim for payment (Correct answer)
- Requesting contractor cost proposals
- Negotiating contract terms below the independent government estimate
Correct answer: Knowingly certifying a false invoice or claim for payment
Knowingly certifying false claims exposes a contract manager to personal civil and criminal liability under the False Claims Act.
CPCM Certified Professional Contract Manager: Professional Ethics in Contract Management 3
In contract management, 'due diligence' is an ethical requirement that means: