CPCM Certified Professional Contract Manager: Professional Ethics in Contract Management 5 — Questions and Answers
Question 1: Which situation MOST clearly requires a contract manager to invoke the 'duty to disclose' under federal procurement rules?
- A contractor completes work ahead of schedule
- A contractor discovers it has been overpaid due to a billing error (Correct answer)
- A contractor requests a contract extension for convenience
- A contractor hires additional staff to meet performance requirements
Correct answer: A contractor discovers it has been overpaid due to a billing error
Federal regulations require contractors to disclose known overpayments; failing to do so can constitute fraud.
Question 2: An ethics hotline report alleges that a contract manager is steering work to a firm owned by a family member. The contract manager should IMMEDIATELY:
- Investigate the allegation personally to gather facts
- Recuse from all related procurement actions and cooperate with the independent investigation (Correct answer)
- Send a rebuttal to the ethics office before the investigation begins
- Continue working normally until formally notified of findings
Correct answer: Recuse from all related procurement actions and cooperate with the independent investigation
A contract manager under ethics investigation should recuse from affected actions and cooperate fully rather than self-investigate.
Question 3: The concept of 'revolving door' restrictions in federal contracting ethics is designed to:
- Prevent contractors from hiring any former government employees
- Limit the ability of former officials to use insider knowledge to unfairly benefit contractors (Correct answer)
- Require former officials to report all contractor contacts to ethics offices
- Prohibit government employees from attending industry conferences
Correct answer: Limit the ability of former officials to use insider knowledge to unfairly benefit contractors
Revolving door laws restrict post-government employment activities to prevent exploitation of non-public information and government relationships.
Question 4: A contract manager is asked to sign a document certifying compliance with a requirement she has not personally verified. She should:
- Sign the certification based on the contractor's assurances
- Refuse to certify until she has independently verified the required facts (Correct answer)
- Ask a colleague to sign in her place
- Add a disclaimer to the certification noting she has not verified the facts
Correct answer: Refuse to certify until she has independently verified the required facts
Signing a compliance certification without verification creates false certification liability; the manager must verify before signing.
Question 5: Which of the following is the MOST important reason contract managers must document their decisions thoroughly?
- To create job security through indispensable institutional knowledge
- To provide transparency, accountability, and a defensible record of ethical decision-making (Correct answer)
- To protect the contractor from future claims by the government
- To satisfy administrative requirements with no substantive value
Correct answer: To provide transparency, accountability, and a defensible record of ethical decision-making
Thorough documentation demonstrates transparency and provides an accountable record that supports ethical review and oversight.
Question 6: When a contract manager identifies a potential ethical violation by a contractor but is uncertain, the BEST course of action is to:
- Take no action until certainty is established
- Consult with the ethics office or legal counsel and document the concern (Correct answer)
- Confront the contractor directly without involving others
- Allow the contractor to self-correct without official involvement
Correct answer: Consult with the ethics office or legal counsel and document the concern
Uncertain ethical concerns should be escalated to ethics or legal counsel; the professional should not resolve ambiguity alone or ignore it.
Question 7: Which behavior demonstrates the ethical principle of 'stewardship' in government contract management?
- Minimizing paperwork to process contracts faster
- Treating public funds and resources with the same care as personal assets, maximizing value for taxpayers (Correct answer)
- Prioritizing contractor convenience to encourage future bids
- Delegating oversight responsibilities to reduce personal workload
Correct answer: Treating public funds and resources with the same care as personal assets, maximizing value for taxpayers
Stewardship requires contract managers to protect public resources, ensure value for money, and act as responsible trustees of taxpayer funds.
CPCM Certified Professional Contract Manager: Professional Ethics in Contract Management 5
Which situation MOST clearly requires a contract manager to invoke the 'duty to disclose' under federal procurement rules?