NCMA - National Contract Management Association Business Competencies and Ethics Questions and Answers

Question 1

A company provides technical evaluation services to a government agency for a major system acquisition.
The same company now wants to bid as a prime contractor on the production contract for that system.
According to FAR Subpart 9.5, which ethical principle is most directly at risk?

Accepted Answer

Organizational Conflict of Interest (OCI)

Answer

Personal Conflict of Interest (PCI)

Answer

Defective Pricing

Answer

Unfair Competitive Advantage

Question 2

According to the NCMA Code of Ethics, contract management professionals are expected to strive for the highest standards of professional competence. Which of the following actions best demonstrates this principle?

Accepted Answer

Engaging in continuous learning and maintaining awareness of industry trends.

Answer

Maximizing profit on every transaction for their organization.

Answer

Strictly adhering to only the minimum requirements of all contractual terms.

Answer

Sharing proprietary competitor information to gain a negotiation advantage.

Question 3

A contractor is in negotiations for a sole-source contract modification valued over the TINA threshold. During negotiations, the contractor's lead negotiator discovers that a major supplier has just offered a significant price reduction on a key component. The contractor has already submitted its cost and pricing data without this new information. What is the contractor's ethical and legal obligation?

Accepted Answer

Promptly disclose the updated, accurate, and complete cost data to the government.

Answer

Disregard the new information as it was received after the initial data submission.

Answer

Withhold the information to maximize the company's profit margin on the modification.

Answer

Use the information as leverage but only disclose it if asked directly by the contracting officer.

Question 4

Which of the following statements best distinguishes between the roles of leadership and management within a contract management team?

Accepted Answer

Management focuses on administering processes and controlling complexity, while leadership focuses on motivating people and inspiring a shared vision.

Answer

Leadership is a formal position of authority, whereas management is an informal role based on influence.

Answer

Management is primarily concerned with long-term strategic planning, while leadership handles day-to-day tactical execution.

Answer

Leadership involves enforcing rules and policies, while management involves developing new strategies for success.

Question 5

A government employee involved in contract administration accepts a prohibited gift from a contractor. If this act is found to be a violation of the Gratuities clause (FAR 52.203-3), what is a potential remedy available to the Government?

Accepted Answer

Terminate the contractor's right to proceed with the contract.

Answer

Require the employee to pay the contractor for the value of the gift.

Answer

Reduce the contract price by 10 percent as a standard penalty.

Answer

Issue a letter of commendation to the contractor for fostering a good relationship.

Question 6

A contracting officer (CO) needs to request a minor change to the delivery schedule that has been discussed informally with the contractor, who has agreed in principle. To ensure the change is legally binding, what is the CO's most appropriate next step?

Accepted Answer

Issue a formal, written contract modification to be signed by both parties.

Answer

Make a note in the official contract file documenting the verbal agreement.

Answer

Send an informal email to the contractor's project manager confirming the new schedule.

Answer

Assume the verbal agreement is sufficient since the contractor's project manager agreed.