Certified Federal Contracts Manager (CFCM)
Federal Procurement and Contracting Principles
1. Cost Reasonableness: - A cost is considered reasonable if, in its nature and amount, it does not exceed that which would be
incurred by a prudent person in the conduct of competitive business. ️
2...
Certified Federal Contracts Manager (CFCM)
Federal Procurement and Contracting Principles
1. Cost Reasonableness:
- A cost is considered reasonable if, in its nature and amount, it does not exceed that which would be
incurred by a prudent person in the conduct of competitive business. ✔️
2. Advance Agreements:
- Advance agreements should not be negotiated after the costs have been incurred. ✔️
3. Assignment of Claims Act:
- A contractor may assign moneys due under a contract if it meets several conditions, excluding: The
contract specifies payments aggregating $100,000 or more. ✔️
4. Micro-Purchase Authority:
- Individuals delegated micro-purchase authority do not need to be appointed using SF 1402. ✔️
5. Classification of Advisory and Assistance Services:
- These services are classified in various subdivisions except for construction. ✔️
6. Buy American Act Exceptions:
- A foreign end product may be purchased if the price of the lowest domestic offer is determined to be
unreasonable by the Contracting Officer (CO). ✔️
7. Service Contract Act Threshold:
- The threshold for services to be subject to the Service Contract Act is $2,500. ✔️
8. Inherently Governmental Functions:
- An example of an inherently governmental function includes approving contractual documents. ✔️
,9. Market Research and Needs Assessment:
- If market research indicates commercial or non-developmental items might not be available,
agencies should determine whether the need can be restated to allow for commercial or non-
developmental items to satisfy the agency's needs. ✔️
10. Exceptions to Full and Open Competition:
- An example that is NOT an exception is Approval by the Agency Head. ✔️
11. Delivery Schedule Notifications:
- If the delivery schedule is based on the contract date, the contracting officer shall provide
documents to the contractor not later than the date of the contract. ✔️
12. Liquidated Damages:
- Liquidated damages are typically assessed per calendar day. ✔️
13. Cost Accounting Standards:
- Apply to commercial item contracts when structured as fixed-price with economic price adjustment
based on actual costs. ✔️
14. Indefinite-Quantity Contracts:
- Best used when a recurring need is anticipated. ✔️
15. Defense Priorities and Allocations System:
- A Department of Commerce regulation that supports approved national defense, emergency
preparedness, and energy programs. ✔️
16. Sealed Bidding and Bid Samples:
- A bid sample will be used to determine the responsiveness of the bid. ✔️
, 17. Least Preferred Cost Reimbursement Contract:
- The cost plus fixed fee contract is the least preferred due to its minimal incentive for the contractor
to control costs. ✔️
- Agencies shall utilize the government-wide commercial purchase card and electronic purchasing
techniques to the maximum practicable in conducting simplified acquisitions. ✔️
19. Source Selection Evaluation Criteria:
- Price or cost to the government must be evaluated in every source selection. ✔️
20. Foreign Acquisitions (FAR Part 25):
- Rules and policies on foreign acquisitions can be found in FAR Part 25. ✔️
21. Miller Act Requirements:
- The Miller Act mandates a performance and payment bond for construction contracts over
$150,000. ✔️
Under what type of contract might the seller never have to perform any services or provide any
deliveries? ✔️Requirements contract.
A termination for convenience should not normally be issued if the undelivered balance of the contract
is less than: ✔️$5,000
Effective competition, as used in FAR Part 34, is a market condition that exists when ✔️two or more
contractors act independently and actively contend for the government's business.
The total amount that can be paid for commercial advance payments cannot exceed _____ of the
contract price: ✔️15%
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