CPCM.exam.

83q

Number: CPCM
Passing Score: 800
Time Limit: 120 min

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CPCM

Certified Professional Contracts Manager

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Exam A

QUESTION 1
The cost-plus-a-percentage-of-cost contract provides for the seller to receive reimbursement for its actual cost and a profit component, called __________, equal to
some predetermined percentage of its actual costs.

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A. fee
B. statement
C. penalty
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
Those incentives that use predetermined formula-based methods to calculate the amount of incentive, either positive or negative, in one or more designated areas
are called:

A. Objectively-based and evaluated

B. Subjectively-based and evaluated
C. Early-based and evaluated
D. Final-based and evaluated

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 3
Which of the following shows the designated performance area in the objectively-based and evaluated incentives?

A. Cost performance
B. Schedule or delivery performance
C. Quality performance
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
Those incentives that use individual judgment, opinions, and informed impressions as the basis for determining the amount of incentive, either positive or negative,
in one or more designated areas are called:

A. Objectively-based and evaluated

B. Subjectively-based and evaluated
C. Early-based and evaluated
D. Final-based and evaluated

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
Which of the following shows the designated performance area in the subjectively-based and evaluated incentives?

A. Award fees
B. Other special incentives
C. Both A & B
D. Neither A nor B

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Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
The point at which sharing changes to 0/100 is called the _____________, which represents a cost figure.

A. Point of configuration
B. Point of total assumption
C. Pattern point
D. Prototype point

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
An agreement on a set of criteria and procedures to be applied by the buyer in determining how well the seller has performed and how much fee the seller has
earned is called:

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A. Inducement plans
B. Awarded-plans
C. Award-free plans
D. Contract incentive plans

Correct Answer: C

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Section: (none)
Explanation

Explanation/Reference:

QUESTION 8
A fixed fee that the seller will earn no matter how its performance is evaluated in known as:

A. incurred fee
B. award fee
C. period fee
D. base fee

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
Which contracts allow overrun or under-run sharing of cost through a predetermined formula for fee adjustments that apply to incentives for cost category
contracts?

A. fixed price incentive

B. cost-plus-incentive fee
C. special incentive fee
D. pros and cons of award fee

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
Time and Material contracts typically involve higher levels of risks for sellers.

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A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
When two parties expect except to deal with one another repeatedly for the purchase and sale of good and services, they may decide to enter into a long-term
purchase agreement.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
Commercial products and commercial services from which reasonable prices can be established, is the suitability for which contract type?

A. Firm-fixed price
B. Firm-variable price
C. Fixed-price incentive
D. Price adjustment

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 13
Price can be adjusted on action of an industry-wide contingency that is beyond seller’s control is a disadvantage of which contract type?

A. Firm-fixed price
B. Firm-variable price
C. Cost-plus-Fixed-fee incentive
D. Fixed-price with economic price adjustment

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
Allowable costs of contract performance are reimbursed, but not fee is paid is the advantage of cost reimbursement contract type.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
Fee is expressed as percentage of estimated cost at time contract is awarded, is the advantage of:

A. Cost-plus-award-fee
B. Cost-plus-a-percentage-of-cost
C. Cost-plus-fixed-fee incentive
D. Cost-plus-fixed-incentive incentive

Correct Answer: C
Section: (none)

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Explanation

Explanation/Reference:

QUESTION 16
The uniform commercial code is a clear, precise document that uniformly and specifically governs all commercial transactions throughout the United States, it is a:

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A. Misconception
B. Reality
C. Hypothesis
D. Practice

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
Which process includes an analysis of current information systems and outlines the target system architecture for the business?

A. Incentive process
B. Integrated process
C. Internal process
D. Implementation process

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 18
What provides its users with a framework or a guide for improving their respective level of performance?

A. Performance Evaluation Model

B. Capability Maturity Model
C. Contract Management Maturity Model
D. Enterprising Maturity Model

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 19
An evolutionary roadmap for implementing the vital practices for one or more domains of organizational processes is called:

A. Organizational Contract Management

B. Capability Maturity Model
C. Project Management Model
D. People Capability Maturity Model

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
An underlying characteristic that is casually related to effective or superior performance is called:

A. Competency
B. Maturity
C. Contractual Agreement
D. Opportunity assessment

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Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
A level of organizational capability created by the transformation of one or more domains of an organization’s processes is known as:

A. Basic level
B. Maturity level
C. Operational level
D. Advance level

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
A contract Management Maturity Model has how many levels in total?

A. 2
B. 4
C. 5
D. 6

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 23

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Which contract management processes are used only on selected procurements, typically large, highly visible projects?

A. basic
B. advance
C. mature
D. optimized

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
Senior management is involved in providing input and approval of key procurement decisions and documents in which level of CMM model:

A. basic
B. advanced
C. mature
D. structured

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
At which level of CMM model, basic contract management processes are integrated with other organizational core processes such as cost control, schedule and
performance management and system engineering?

A. Ad hoc
B. managed
C. mature
D. structured

Correct Answer: B

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Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
Continuous process improvement efforts are implemented to improve contract management process in which level of CMM model?

A. Ad hoc
B. managed
C. structured
D. optimized

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
Which of the following is NOT the phase of Commission on Government Procurement Model?

A. Sourcing
B. Needs and Funding
C. Planning
D. Selection

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
Which of the following is the step of purchasing process?

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A. Planning
B. Requisition process
C. Contract Administration
D. All of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
Which of the following is NOT the step in the process for performing the risk and assessment?

A. select version and complete survey

B. evaluate performances
C. evaluate opportunity
D. Mapping risk to matrix

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Which of the following is Correct?

A. In evaluating the risk, the score is calculated by multiplying the raw score by the preestablished weight value.

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B. In evaluating the opportunity, the score is calculated by multiplying the raw score by the post-established weight value.
C. In evaluating the risk, the score is calculated by dividing the raw score by the postestablished weight value.
D. In evaluating the risk, the score is calculated by adding the raw score and the preestablished weight value.

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
Which of the following is NOT the risk analysis factor from the seller’s perspective?

A. Buyer commitment
B. Contract timetable
C. Contract duration
D. promote seller’s strategic direction

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
Who is less likely to change or cancel the contract and therefore represents a lower risk?

A. Committed Buyer
B. Committed Seller
C. Assigned personnel
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 33
A contract’s ____________ is flexible and can be established by the supplier, with no penalty clauses, represents the least risk.

A. requirement assessment plan

B. Timetable
C. resource utilization
D. Milestones

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
The less the seller is involved in the development of the requirements, the higher the risk presented by the contract.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
A simple contract that not allow more than 30 days for a response, could be considered conservative.

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

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Explanation/Reference:

QUESTION 36
The shorter the time allowed developing a ___________, the higher the risk.

A. contract
B. weight factor
C. response
D. solution

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
Which of the following is NOT the opportunity analysis factor from the seller’s perspective?

A. Future business potential

B. Provide added experience and/or new skills
C. Technology and product maturity
D. Resource utilization

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Which of the following is NOT the risk analysis factor from the buyer’s perspective?

A. Contract delivery schedule

B. Seller offers the lowest price technically acceptable

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C. Contract performance period
D. Changing contract requirement

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
____________________ is the time it takes from when a requirement is determined, a solicitation is issued, bids/proposals are received and evaluated, a contract
is awarded and quality products, services and/or solutions are provided to the buyer

A. Procurement Acquisition Lead Time

B. Procurement Advancement Time
C. Coordinated Acquisition Time
D. Customized Solution Time

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
Which of the following is NOT the opportunity analysis factor from the buyer’s perspective?

A. Geographic distribution
B. Seller offer rapid delivery
C. Use of break-through technology
D. Ease of procurement

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 41
Obtaining quality products, services, and/or solutions at the lowest possible price is usually a key ______________ factor for most buyers.

A. rapid delivery
B. procurement plan
C. opportunity
D. source selection

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 42
Which of the following is NOT the phase of Contract Management Process?

A. Pre-award
B. Per-process-award
C. Award
D. Post-award

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 43
Procurement planning, solicitation planning and solicitation are activities for buyers for which phase of Contract Management Process?

A. Pre-award
B. Per-process-award
C. Award
D. Post-award

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Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 44
Bid / no-bid decision making, bid or proposal preparation are activities for sellers for which phase of Contract Management Process?

A. Pre-award
B. Per-process-award
C. Award
D. Post-award

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 45
In Procurement planning activity of Contract Management Process, if the input is the scope statement using make-or-buy analysis as a tool to produce which
output?

A. Proposal
B. Procurement design
C. Statement of work
D. Contract

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 46
In solicitation planning activity of Contract Management Process, what will be the input by using standard forms as a tool and whose output will be procurements
documents?

A. Qualified seller list

B. Work results
C. Market conditions
D. Procurement management plan

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 47
In which activity of Contract Management Process, if the input is proposal and by using weighting system as a tool the output will be contract?

A. Solicitation planning
B. Source selection
C. Contract administration
D. Solicitation

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 48
Developing a _______________ and the specifications that are usually included in it is one of the most difficult challenges in procurement planning.

A. Contract negotiation process

B. Expert judgment
C. Statement of work
D. Work results

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Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 49
Buyers may request bids, quotes, tenders or proposals orally, in writing, or electronically through procurement documents generally called:

A. Solicitations
B. Screening system
C. Evacuators
D. Legislation

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 50
Which of the following is Correct?

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A. Post-sales activity is the proactive involvement of the seller with prospective and current buyers.
B. Pre-sales activity is the pre-active involvement of the seller with prospective and noncurrent buyers.
C. Post-sales activity is the pre-active involvement of the seller with prospective and noncurrent buyers.
D. Pre-sales activity is the proactive involvement of the seller with prospective and current buyers.

Correct Answer: D
Section: (none)
Explanation

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Explanation/Reference:

QUESTION 51
The process of developing offers in response to oral or written solicitations or based on perceived buyer needs is called:

A. Bid preparation
B. No-Bid decision making
C. Buyer specific needs
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 52
The process of ensuring compliance with contractual terms and conditions during contract performance and up to contract closeout or termination is known as:

A. Contract Formation
B. Contract negotiation
C. Contract administration
D. Contract Summary

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 53
A contract pursuant to whose terms goods are transferred from seller to buyer is called sale.

A. True
B. False

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Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 54
Realistic expectations go unchallenged, unrealistic expectations go un-communicated.

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 55
The rights and responsibilities of the parties to the contractual agreements are called:

A. Constraints
B. Terms & Conditions
C. Limitations
D. Standards

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 56
A __________ is a phrase that either activates or suspends a term in a contract.

A. Law

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B. Statement
C. Condition
D. Standard

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 57
A condition that activates a term is called a condition subsequent and the one that suspends a term is called a condition precedent.

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 58
What is a necessary element in common law to form an enforceable contract?

A. Offer
B. Acceptance
C. Competent parties
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 59
What is once made will be a reasonable period of time and is binding on the offeror unless revoked by the offeror before the other party’s acceptance?

A. Offer
B. Acceptance
C. Competent parties
D. Legality of purpose

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 60
What can be something of value, or it can be promising to do something not required by law or promising to refrain from doing something permitted by law?

A. Irrevocability
B. Acceptance
C. Consideration
D. Conclusiveness

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 61
A legal connection or relationship that exists between the contracting parties is known as:

A. Contract plaintiff
B. Contract privity
C. Bilateral Contract
D. Civil contract

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Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 62
The contacts that are formed and performed at the same time are called:

A. Unilateral Contract
B. Executory Contract
C. Executed Contract
D. Bilateral Contract

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 63
Executory contracts are those contracts that are formed at one time and performed later.

A. True
B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 64
In acceptance principle according to Civil law, no mirror image rule exists

A. True

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B. False

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 65
In interpretation of acceptance principle according to Civil law, missing terms are filled in by the court.

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 66
In Waiver principle according to Common law, an offer is presumed revocable unless stated otherwise.

A. True
B. False

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 67
The concept of deferring to the law of another jurisdiction that has a greater connection to the case is called:

A. Dimity
B. Signature

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C. Comity
D. None of the above

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 68
The theory of a ___________ system is that one comprehensive code governs all disputes.

A. Pure civil law

B. Communication law
C. Diversity law
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 69
In a source selection method if proposals are the input using contract negotiation as a tool in order to produce which output?

A. Organizational policy
B. Contracts
C. Legal review
D. Market practice

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 70
________________ is a gauge to measure a potential source against to determine its value.

A. Evaluation standard
B. Contract negotiation
C. Organizational policy
D. Independent estimates

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 71
What is used to process the information about potential sources?

A. Independent system
B. Weighting system
C. Multiple attributes system
D. Screening system

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 72
In developing the evaluation criteria for source selection requires which of the following prerequisite?

A. the buyer must understand what goods or services it wants to but.

B. the buyer must understand the industry that will provide the required goods and services.
C. the buyer must understand the market practices of that industry.
D. All of the above

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Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 73
The criteria concerning the sources themselves, as entities are called:

A. Decision making criteria

B. Attributed criteria
C. Management criteria
D. Technical criteria

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 74
The attributes used to determine the product or service quality and procedural effectiveness, these attributes are called:

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A. Decision making criteria

B. Attributed criteria
C. Management criteria
D. Technical criteria

Correct Answer: D
Section: (none)
Explanation

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Explanation/Reference:

QUESTION 75
The technique used to evaluate realism is known as:

A. Risk analysis
B. Cost analysis
C. Legal review
D. Screening system

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 76
The technique used to evaluate ______________ is price analysis.

A. Competitiveness
B. Sources
C. Services
D. Product quality

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 77
Which three types of evaluation standards express values?

A. absolute, minimum and relative

B. absolute, maximum and relative

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C. risk, minimum and relative
D. absolute, maximum and productivity

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 78
___________ are the factors that, for planning purposes, are considered to be true, real, or certain.

A. Risks
B. Assumptions
C. Constraints
D. Scope statement (s)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 79
Identifying and analyzing requirements should follow:

A. systematic procedure
B. statement of work
C. procurement management plan
D. contract terms and conditions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

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QUESTION 80
______________ is a key ingredient in solicitation planning and in the solicitation document to be developed.

A. systematic procedure
B. statement of work
C. standard forms
D. expert judgment

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 81
In presale activity, what is the tool used to convert determination of customer needs input into customer-focused sales plan output?

A. Competitive analysis report

B. Market research
C. Advertising
D. Risk assessment

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 82
Post-sale is the process of identifying business opportunities, determining customer needs and plans, and evaluating the competitive environment.

A. True
B. False

Correct Answer: B
Section: (none)

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Explanation

Explanation/Reference:

QUESTION 83
What describes the seller’s reasons for its decision on whether to bid on a particular project?

A. Bid proposal
B. Opportunity assessment
C. Justification document
D. Solicitation

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

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