CFCM Prep Questions | Complete Solutions (Verified Answers)

CFCM Prep Questions | Complete Solutions (Verified Answers) How often are statutory acquisition-related dollar thresholds in the FAR adjusted for inflation? (a) Annually (b) Bi-annually (c) Every five years (d) Only ...

CFCM Prep Questions | Complete Solutions (Verified Answers) How often are statutory acquisition-related dollar thresholds in the FAR adjusted for inflation? (a) Annually (b) Bi-annually (c) Every five years (d) Only as required - answer-(c) Every five years (FAR 1.109) A form of written approval signed by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions is defined as: (a) A ratification (b) Determination and Findings (c) The Contracting Officer's Final Decision (d) A waiver - answer-(b) Determination and Findings (FAR 1.701) Contracting officers below the level of shall be selected and appointed. (a) Cabinet secretary (b) Director of contracting (c) A flag officer or member of the Senior Executive Service (d) A head of contracting activity - answer-(d) A head of contracting activity (FAR 1.601) The simplified acquisition threshold for any contract in support of contingency operations to be awarded an performed, or purchase to be made, outside the U.S. is: (a) $150,000 (b) $300,000 (c) $1 million (d) $1.5 million - answer-(c) $1 million (FAR 2.101) Which of the following is a commercial item? (a) A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple state and local governments (b) An item that evolved from an item that has not been sold to the general public (c) A commercial item that has received modfications not available in the commercial marketplace (d) A nondevelopment item used exclusively for governmental purposes - answer-(a) A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple state and local governments (FAR 2.101) Consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract is defined as: (a) Combining (b) Consolidating (c) Bundling (d) Mixing - answer-(c) Bundling (FAR 2.101) Which of the following are included in the definition of "contracts?" (a) Awards and notices of awards and grants (b) Letter contracts and cooperative agreements (c) Letter contracts and job orders issued under basic ordering agreements (d) Blanket purchase agreements and imprest funds - answer-(c) Letter contracts and job orders issued under basic ordering agreements (FAR 2.101) The government can minimize the opportunity for buying in by using any of the following techniques: (a) Simplified acquisition procedures (b) Priced options, amortization of nonrecurring costs, and simplified acquisition procedures (c) Simplified acquisition procedures, costs, and multiyear contracting (d) Multiyear contracting, priced options, and amortization of nonrecurring costs - answer-(d) Multiyear contracting, priced options, and amortization of nonrecurring costs (FAR 3.501-2) Contractor's arrangements to pay contingent fees for soliciting government contracts have long been considered contrary to public policy because: (a) They discourage competition (b) Such arrangements may lead to attempted or actual exercise of improper influence (c) They result in excessive overhead costs (d) Accountability of costs is difficult to track - answer- (b) Such arrangements may lead to attempted or actual exercise of improper influence (FAR 3.402) A contract with a corporation shall be signed: (a) By the chief financial officer (b) By the head of the contracts department (c) In the corporate name, followed by the word "by" and the signature and title of the person authorized to sign (d) By the chief executive officer - answer-(c) In the corporate name, followed by the word "by" and the signature and title of the person authorized to sign (FAR 4.102) What is the dollar threshold for public announcement of contract awards? (a) $500,000 (b) $4,000,000 (c) $5,000,000 (d) $10,000,000 - answer-(b) $4,000,000 (FAR 5.303) Acceptable methods for disseminating information on proposed contract actions include: (a) Assisting local trade associations in disseminating information to their members, announcements in magazines at no cost, and phone calls (b) Synopsis in the governmentwide point of entry, phone calls, and paid advertisements (c) Assisting local trade associations in disseminating information to their members, announcements in magazines at no cost, and synopsis in the governmentwide point of entry (d) Paid advertisements in newspapers published and printed in the District of Columbia when supplies and services will not be supplied/furnished in or around the District of Columbia - answer-(c) Assisting local trade associations in disseminating information to their members, announcements in magazines at no cost, and synopsis in the governmentwide point of entry (FAR 5.101(a) & (b)) The contracting officer may use competitive proposals in lieu of sealed bids if: (a) Time permits the solicitation, submission, and evaluation of sealed bids (b) Award will be made on the basis of price and other price related factors (c) It is necessary to conduct discussions (d) The resulting contract will be with a small business - answer-(c) It is necessary to conduct discussions (FAR 6.401(b)) The contracting officer's certification can serve as approval of the justification for other than full and open competition for a proposed contract NOT exceeding: (a) $25,000 (b) $650,000 (c) $1,500,000 (d) $5,500,000 - answer-(b) $650,000 (FAR 6.304(a)(1)) FAR Part 6, Competition Requirements, applies to which of the following? (a) A $1 million contract for construction (b) A contract awarded using the simplified acquisition procedures of Part 13 (c) A contract modification for $1 million that is within the scope and under the terms of an existing contract (d) A $1 million task order placed against a task order contract entered into pursuant to Subpart 16.5 - answer-(a) A $1 million contract for construction (FAR 6.001(a), (c), (f)) If other than full and open competition is anticipated, the acquisition plan must be coordinated with the cognizant: (a) Competition advocate (b) Head of the contracting activity (c) Small business office (d) Contract administrator - answer-(a) Competition advocate (FAR 7.104(c)) Acquisition planning should begin: (a) When a purchase request is received (b) When a statement of work is received (c) As soon as the agency need is identified (d) Within 30 days of receipt of the purchase request - answer-(c) As soon as the agency need is identified (FAR 7.104(a)) The Federal Supply program provides federal agencies with a simplified process for obtaining commonly used commercial supplies and services at prices associated with volume buying. It is directed and managed by the: (a) Commerce Department (b) Executive Department (c) General Services Administration (d) Defense Logistics Agency - answer-(c) General Services Administration (FAR 8.402(a)) Which of the following is the name of GSA's electronic system that allows ordering activities to post requirements, obtain quotes, and issue orders electronically? (a) GSAAdvantage! (b) GSA Stock (c) e-Buy (d) Customer Supply Center - answer-(c) e-Buy (FAR 8.402(d)) In the event that the Federal Prison Industries (FPI) and nonprofit agencies participating in the AbilityOne Program produce identical supplies, the ordering offices shall purchase supplies from the following sources based on priority. Identify the source that has first priority: (a) AbilityOne participating nonprofit agencies (b) Federal Prison Industries, Inc. (c) Commercial sources (d) Federal Supply Schedules - answer-(b) Federal Prison Industries, Inc. (FAR 8.603) Normally, testing and approval is appropriate in contracts for: (a) Research and development (b) Products requiring qualifications before award (c) Products normally sold in the commercial market (d) Products requiring an approved first article to serve as a manufacturing standard - answer-(d) Products requiring an approved first article to serve as a manufacturing standard (FAR 9.303) A qualification requirement is a government requirement for: (a) Testing or other quality assurance demonstration that must be completed before award (b) Testing that must be completed before the first item is delivered under the contract (c) Testing or other quality assurance demonstration that is always at the contractor's expense (d) Approving a contractor's quality system - answer-(a) Testing or other quality assurance demonstration that must be completed before award (FAR 9.202(a)) Agencies are required to use the results of market research to determine: (a) If detailed government specifications exist (b) A fair and reasonable price (c) The government's requirements (d) The extent to which commercial items or nondevelopmental items could satisfy the need - answer-(d) The extent to which commercial items or nondevelopmental items could satisfy the need (FAR 10.001(a)(3)) If market research indicates that neither commercial items or nondevelopmental items are available to satisfy agency needs, agencies: (a) Must reevaluate the needs and determine whether it can be restated to permit commercial or nondevelopmental items to satisfy them (b) May set-aside the procurement (c) Are authorized to pursue the acquisition as a restricted procurement (d) Shall solicit and award any resultant contract using FAR Part 12 policies and procedures - answer-(a) Must reevaluate the needs and determine whether it can be restated to permit commercial or nondevelopmental items to satisfy them (FAR 10.002(c),(d)) Contract delivery or performance schedules may be expressed by: (a) The means determined by the requiring activity (b) Specific number of days from the date of the contract (c) Specific time for delivery after receipt by the buyer of each order under the contract (d) Any means the contractor specified in its bid or proposal - answer-(b) Specific number of days from the date of the contract (FAR 11.403(a)) To the maximum extent practicable, acquisition officials should state all the following requirements with respect to an acquisition of supplies or services, with the exception of: (a) Functions to be performed (b) Performance required (c) Essential physical characteristics (d) Preference for commercial or nondevelopmental items - answer-(d) Preference for commercial or nondevelopmental items (FAR 11.002(a)) Contracting activities shall employ simplified acquisition procedures to the maximum extent practicable for acquisitions of commercial items not exceeding: (a) $1,000,000 (b) $650,000 (c) $6,500,000 (d) $3,500,000 - answer-(c) $6,500,000 (FAR 12.203) Unless otherwise provided in section 12.207(b), agencies shall use which of the following contract type(s) for the acquisition of commercial items? (a) Any contract type (b) Fixed-price contract with prospective price redetermination (c) Firm-fixed price or fixed-price with economic price adjustment contracts (d) Cost-plus-incentive-fee contracts only - answer-(c) Firm-fixed price or fixed-price with economic price adjustment contracts (FAR 12. 207) Cost Accounting Standards: (a) Apply to all acquisitions for commercial items (b) Apply only to commercial acquisitions from large business (c) Never apply to commercial acquisitions (d) Do not apply to contracts and subcontracts for commercial acquisition unless the contract provides for an economic price adjustment based on actual costs incurred - answer-(d) Do not apply to contracts and subcontracts for commercial acquisition unless the contract provides for an economic price adjustment based on actual costs incurred (FAR 12.214) When acquiring commercial items, the contracting officer: (a) Is not required to establish price reasonableness (b) Can accept the commercial standard for price reasonableness (c) Must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable (d) Must establish price reasonableness in accordance with commercial practices - answer-(c) Must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable (FAR 12.209) A system whereby the CO receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified time rather than obtaining individual obligation authority on each purchase document is: (a) A blanket purchase agreement (b) Long lead funding (c) Bulk funding (d) A charge account - answer-(c) Bulk funding (FAR 13.101(b)(4)) A cash fund of a fixed amount established by an advance of funds, without charge to an appropriation, from an agency finance or disbursing officer to a duly appointed cashier for disbursement as needed from time to time in making payment in cash for relatively small purchases is a/an: (a) Nonappropriated fund (b) General fund (c) Imprest fund (d) Administrative commitment document - answer-(c) Imprest fund (FAR 13.001) Imprest funds may be used for transactions up to: (a) $25,000 (b) $10,000 (c) $1,000 (d) $500 - answer-(d) $500 (FAR 13.305-3(a)) It is advantageous to establish blanket purchase agreements with firms who: (a) Have past performance records that show them to be unreliable (b) Bid only on purchases over the simplified acquisition threshold (c) Have provided few purchases at or below the simplified acquisition threshold (d) Offer quality supplies or services at consistently lower prices than their competitors - answer-(d) Offer quality supplies or services at consistently lower prices than their competitors (FAR 13.303-2(b)(2)) Which of the following is true concerning the use of simplified acquisition procedures? (a) Purchases above the micro-purchase level are generally set-aside for small business (b) The can be used in the acquisition of commercial items without any limits (c) They cannot be employed when the governmentwide commercial purchase card is used (d) There is no requirement for competition - answer- (a) Purchases above the micro-purchase level are generally set-aside for small business (FAR 13.003(b)(1)) Which of the following is true concerning blanket purchase agreements (BPAs)? (a) A purchase requisition is required to establish one (b) Use of a BPA exempts an agency from the responsibility for keeping obligations and expenditures within available funds (c) They may be established with more than one supplier (d) They may be established even if there is an existing requirements contract for the same supply or service - answer-(c) They may be established with more than one supplier (FAR 13.303-2(c)(1)) When fast payment procedures are utilized, who is responsible for determining the amount of debts resulting from failure of contractors to properly replace, repair, or correct supplies lost, damaged, or not conforming to purchase requirements? (a) Program manager (b) Contracting officer (c) Head of the contracting activity (d) Accounting and finance officer - answer-(b) Contracting officer (FAR 13.401(b)) FAR 13.302-4, "Termination or cancellation of purchase orders," says if the contractor accepts the cancellation and does not claim that costs were incurred as a result of beginning performance under the purchase order, then: (a) No further action is required and the purchase order shall be considered canceled (b) The contractor receives a cancellation fee equal to 10% of the original purchase order price (c) The contracting officer shall process the termination action (d) The contractor is entitled to receive the automatic award of any purchase order for the same item or service generated within 90 days of the cancellation - answer-(a) No further action is required and the purchase order shall be considered canceled (FAR 13.302-4(b)(1)) Unpriced purchase orders may be used to acquire: (a) Repairs to equipment requiring disassembly to determine the nature and extent of repairs (b) Commercial or nondevelopmental items (c) Urgently needed supplies available through multiple sources (d) Routine items for stock - answer-(a) Repairs to equipment requiring disassembly to determine the nature and extent of repairs (FAR 13.302-2(b)(2)) Which of the following is true about micro-purchases? (a) They may not be awarded without soliciting competitive quotations (b) Only a contracting officer may award them (c) The governmentwide commercial purchase card is the preferred means to purchase and pay for them (d) The requirements in FAR Part 8 do not apply to them - answer-(c) The governmentwide commercial purchase card is the preferred means to purchase and pay for them (FAR 13.201(b), (c), (e), 13.202(a)(2)) Which of the following is true about quotations? (a) A quotation is not an offer (b) Solicitation of oral quotations under the SAT is discouraged (c) Restriction of solicitation to suppliers of well-known and widely distributed makes or brands is preferred (d) Standing price quotations may not be used - answer-(a) A quotation is not an offer (FAR 13.004, 13.106-1(c), 13.104(a), 13.103) Which of the following is true concerning descriptive literature? (a) Contracting officers have complete discretion in requiring descriptive literature (b) The contracting officer may waive the requirement for descriptive literature (c) Descriptive literature is the same as a bid sample (d) Unsolicited descriptive literature shall always be disregarded - answer-(b) The contracting officer may waive the requirement for descriptive literature (FAR 14.202-4, 14.202-5(a), (d), (e)) A pre-bid conference is never to be used for: (a) Answering industry's questions (b) Amending an ambiguous IFB (c) Explaining requirements (d) Conducting market research - answer-(b) Amending an ambiguous IFB (FAR 14.207) Two-step bidding is a combination of competitive procedures designed to obtain the benefits of sealed bidding when adequate specifications are not available. The first step of two-step sealed bidding involves: (a) Price analysis only (b) Technical analysis only (c) Price and technical analysis (d) Historical analysis - answer-(b) Technical analysis only (FAR 14.501(a)) What is acceptable evidence to establish the time of receipt at the government installation? (a) A U.S. Post Office proof of mailing receipt (b) Other documentary evidence maintained by the contractor (c) Oral testimony or statements by the bidder's personnel (d) Time/date stamp of that installation on the bid wrapper - answer-(d) Time/date stamp of that installation on the bid wrapper (FAR 14.304(c)) Which is not a reason to reject a bid? (a) The bid does not conform to the delivery schedule (b) The price is unreasonable (c) The schedule contains an apparent clerical mistake (d) The bid states a price as being subject to "price in effect at time of delivery" - answer-(c) The schedule contains an apparent clerical mistake (FAR 14.404-2, 14.407-2) Which of the following is true concerning electronic bids? (a) Contracting officers may authorize use of electronic commerce for submission of bids, but must specify the electronic commerce method(s) that bidders may use (b) Contracting officers may not authorize use of electronic commerce for submission of bids (c) Contracting officers may authorize use of electronic commerce for submission of bids only when urgency