ExamESSENTIALS Study guide & Practice Test for CFCM

Covering the General Business Knowledge module and the Federal Knowledge module.

According to the NCMA, the eligibility requirements for CFCM and CCCM are mostly identical. CFCM will need to pay special attention to the topics on federal contract management. In order to earn the CFCM, a candidate must fulfill the eligibility requirement and must pass two examinations, which are the General Business Knowledge module and the Federal Contract module.

The federal contract management module consists of 110 multiple-choice questions. It has knowledge items that are federal contract specific, even though most concepts and theories of business contracting would still apply (for CFCM you do want to know the Federal Acquisition Regulation inside and out). You will need to get approx. 68% correct answers in order to pass. The exams have quite many questions that ask for your "best decisions" (i.e. how you will tackle a situation in a live environment). They are not tricky questions, but just that they are not as straight forward as the standard text book type questions.

Our CFCM Study Guide goes the expert-advice way. Instead of just giving you the hard facts, we also give you information that covers the best practices. With these information, you will always be able to make the most appropriate expert judgment in the exams.

The CFCM study guide covers topics from both exam modules. However, instead of following a rigid topic flow, we give you the freedom to review topics in any order you like. We do encourage you to go through ALL topics of both modules prior to attempting any one of the exam modules, since it is not uncommon to find overlapped topics in the exam questions. And for the best possible exam performance, you may want to use our study guide together with other study resources. Do your readings, and give yourself enough time to digest what you have read. Link the theories and concepts to your real world contract management experience, then you will do fine for sure :)

Note that our section on Commercial contract has a strong focus on the law and legal aspects of business contract. Relevant contract law topics at a glance:
MANAGING BUSINESS CONTRACT DEFINING CONTRACT MANAGER & CONTRACT ADMINISTRATOR CONTRACT ADMINISTRATION OVERVIEW CONTRACT CLOSURE CONTRACT COMPENSATIONS & FINANCING QUOTATIONS AND TENDERS RFP LOI DRAFTING YOUR CONTRACT SETTING THE ORDER OF PRECEDENCE CONTRACT EXHIBITS TIME CLAUSE REWARDS INCORRECT PAYMENTS LEGAL AUTHORITY INSPECTION AND ACCEPTANCE CHANGE ORDER PROCEDURES EXPLICITLY SPELLED OUT REMEDIES TERMINATION FOR DEFAULT/CAUSE	OTHER CLAUSES ETHICS CONTRACT NEGOTIATION STYLES OF NEGOTIATION PRE-NEGOTIATION PREPARATION PRE-NEGOTIATION EXCHANGES BUSINESS CONTRACT LEGAL ELEMENTS SOURCE OF LAW THE STATUTE OF FRAUD CONTRACT TYPES OFFER, ACCEPTANCE, AND INVITATION TO TREAT CONSIDERATION DISCHARGING OR INVALIDATING A CONTRACT BREACH OF CONTRACT POSSIBLE DEFENSES DAMAGE RECOVERY SATISFACTION CLAUSE AGENCY RELATIONSHIP
Federal Knowledge Contents:
The best thing to do to learn about FAR is to go through the original FAR text. However, the original text is massive. It can take you weeks or months to go through and digest the material. To save your time, we have done the work for you – we extract and summarize the relevant FAR sections and parts for you so you can focus on only those exam relevant contents. WHAT FAR IS ALL ABOUT 3.2 CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL 3.4 CONTINGENT FEES 3.5 OTHER IMPROPER BUSINESS PRACTICES 3.6 CONTRACTS WITH GOVERNMENT EMPLOYEES OR ORGANIZATIONS OWNED OR CONTROLLED BY THEM 4.1 CONTRACT EXECUTION 4.4 SAFEGUARDING CLASSIFIED INFORMATION WITHIN INDUSTRY 4.7 CONTRACTOR RECORDS RETENTION 4.8 GOVERNMENT CONTRACT FILES 6.1 FULL AND OPEN COMPETITION 6.2 FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES 6.3 OTHER THAN FULL AND OPEN COMPETITION 9.1 RESPONSIBLE PROSPECTIVE CONTRACTORS 9.2 QUALIFICATIONS REQUIREMENTS 11.3 ACCEPTABLE MATERIAL 11.4 DELIVERY OR PERFORMANCE SCHEDULES 11.5 LIQUIDATED DAMAGES 11.7 VARIATION IN QUANTITY 12.2 SPECIAL REQUIREMENTS FOR THE ACQUISITION OF COMMERCIAL ITEMS 12.3 SOLICITATION PROVISIONS AND CONTRACT CLAUSES FOR THE ACQUISITION OF COMMERCIAL ITEMS 14.1 USE OF SEALED BIDDING 14.2 SOLICITATION OF BIDS 14.3 SUBMISSION OF BIDS 14.4 OPENING OF BIDS AND AWARD OF CONTRACT 14.5 TWO-STEP SEALED BIDDING 15.1 SOURCE SELECTION PROCESSES AND TECHNIQUES 15.2 SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION 15.4 CONTRACT PRICING 15.5 PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND MISTAKES 15.6 UNSOLICITED PROPOSALS 16.2 FIXED-PRICE CONTRACTS 16.3 COST-REIMBURSEMENT CONTRACTS 16.4 INCENTIVE CONTRACTS 16.5 INDEFINITE-DELIVERY CONTRACTS 16.6 TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS 17.1 MULTI-YEAR CONTRACTING 22.3 CONTRACT WORK HOURS AND SAFETY STANDARDS ACT 22.6 WALSH-HEALEY PUBLIC CONTRACTS ACT 22.8 EQUAL EMPLOYMENT OPPORTUNITY 22.9 NONDISCRIMINATION BECAUSE OF AGE 22.10 SERVICE CONTRACT ACT OF 1965, AS AMENDED 22.15 PROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 22.17 COMBATING TRAFFICKING IN PERSONS 24.1 PROTECTION OF INDIVIDUAL PRIVACY 24.2 FREEDOM OF INFORMATION ACT 25.1 BUY AMERICAN ACT—SUPPLIES 25.7 PROHIBITED SOURCES 28.1 BONDS AND OTHER FINANCIAL PROTECTIONS 32.1 NON-COMMERCIAL ITEM PURCHASE FINANCING 32.2 COMMERCIAL ITEM PURCHASE FINANCING 32.9 PROMPT PAYMENT 33.1 PROTESTS 43.2 CHANGE ORDERS 44.2 CONSENT TO SUBCONTRACTS 46.2 CONTRACT QUALITY REQUIREMENTS 46.4 GOVERNMENT CONTRACT QUALITY ASSURANCE 46.5 ACCEPTANCE 46.7 WARRANTIES 46.8 CONTRACTOR LIABILITY FOR LOSS OF OR DAMAGE TO PROPERTY OF THE GOVERNMENT 49.1 GENERAL PRINCIPLES 49.4 TERMINATION FOR DEFAULT FEDERAL GRANTS
Acquisition Planning Contents:
MANAGING PROCUREMENT PRINCIPLES AND STANDARDS OF PURCHASING PRACTICE ANTI-TRUST ORDERING PROCEDURE PARTNERING NEW TREND IN PURCHASING NEW TREND IN SUPPLIER RELATIONSHIP MANAGEMENT JIT AND PURCHASING WASTES IN THE PURCHASING PROCESS BENEFITS OF JIT PURCHASING ACQUISITION PLANNING
165 Review Questions on Contract Principles, Acquisition Planning, Contract Administration, FAR, and Procurement. AND 170 Special Review Questions on Federal Contract Administration.
General Business Knowledge contents:
BUSINESS ECONOMICS & GLOBAL BUSINESS ECONOMICS DEFINED MICRO VS MACROECONOMICS OPPORTUNITY COST SPECIALIZATION, COMPARATIVE ADVANTAGE AND ABSOLUTE ADVANTAGE PRODUCTION POSSIBILITY FRONTIER MARKET DEFINED DEMAND VS QUANTITY DEMANDED SUPPLY VS QUANTITY SUPPLIED EQUILIBRIUM VS DISEQUILIBRIUM MOVEMENT ALONG THE CURVES VS SHIFTING OF THE CURVES VS ELASTICITY DIFFERENT TYPES OF MARKET STRUCTURE MONOPOLY PERFECT COMPETITION OLIGOPOLY AND MONOPOLISTIC COMPETITION MARKET POWER VS PRICE TAKING ECONOMIES OF SCALE LAW OF DIMINISHING MARGINAL UTILITY MONETARY POLICY VS FISCAL POLICY ECONOMIC GROWTH, INFLATION AND CPI BALANCE OF PAYMENTS AND BALANCE OF TRADE MONEY SUPPLIES, EXCHANGE RATE AND CURRENCY VALUATION M1, M2 AND M3 FOREIGN EXCHANGE ECONOMIC INDICATORS ACCOUNTING PRINCIPLES AND STANDARDS IAS GAAP, FASB AND SFAS REPORTING CONTINGENCIES REPORTING EARNINGS OFF-BALANCE-SHEET ENTITIES PURCHASE ACCOUNTING VS POOLING OF INTEREST OPERATING CASH FLOW VS NET INCOME VS EBITDA CASH FLOW STATEMENT CASH FLOW ACTIVITIES CASH FLOW FROM OPERATING ACTIVITIES DEPRECIATION ACRS VS MACRS FAIR VALUE VS HISTORICAL COST INVENTORY VALUATION CAPITALIZATION OF INTEREST COSTS CAPITALIZATION OF LEASES FOOTNOTES S-CORP STATUS MANAGING AN ORGANIZATION OB MODELS AND THEORIES ORGANIZATIONAL DEVELOPMENT CHANGE MANAGEMENT CHANGE STRATEGIES US BUSINESS ENVIRONMENT AND REGULATORY REQUIREMENTS ACTS AND REGULATIONS UCC NCMA CODE OF ETHICS MANAGING THE BUDGET BUDGET DEVELOPMENT STRATEGY COVERAGE BUDGET VARIANCES STANDARD COSTING SLACK COST MANAGEMENT STANDARD COSTING DIRECT COSTS VS INDIRECT COSTS ACTIVITY-BASED COSTING LCC THROUGHPUT ACCOUNTING PERFORMANCE MEASUREMENT AND ROI PERFORMANCE MEASUREMENT AND BENCHMARKING COMMUNICATION & INFORMATION MANAGEMENT THE ROLE AND APPROACHES OF INFORMATION MANAGEMENT INTEGRATING INFORMATION AND BUSINESS STRATEGIES COMMUNICATION MANAGEMENT VERTICAL COMMUNICATION HORIZONTAL COMMUNICATION DIAGONAL COMMUNICATION CIRCULAR COMMUNICATION COMMUNICATION BARRIERS FORMAL NETWORK VS GRAPEVINE FORMAL COMMUNICATION VS INFORMAL COMMUNICATION VERBAL VS NONVERBAL COMMUNICATION NONVERBAL CLUES MANAGING RISK RISK MANAGEMENT ASSESSING THREATS BCP, DRP AND COOP MANAGING INFORMATION TECHNOLOGY OPERATING SYSTEMS APPLICATION SOFTWARE HARDWARE AND DEVICES ERGONOMICS VIRTUAL OFFICE FAX NETWORK RELATED TECHNOLOGIES MANAGING THE SUPPLY CHAIN SUPPLY CHAIN SCM SWOT ANALYSIS ENVIRONMENTAL SCANNING MBO, MBE AND VA SCOR SUPPLY CHAIN DESIGN SUPPLY CHAIN REENGINEERING SUPPLY CHAIN COLLABORATION SUPPLY CHAIN QUALITY PRODUCT CATEGORIES IN A PRODUCTION ENVIRONMENT HIGH VOLUME/LOW MARGIN LOW VOLUME/HIGH MARGIN DESIGNER PRODUCTS NPD SUPPLY CHAIN METRICS SUPPLY CHAIN CHALLENGES THE “TECHNICAL TERMS”	BOM SKU EOQ REORDER POINT MAKE VS BUY LEASE VS BUY LEASING ARRANGEMENTS INTERNATIONAL SOURCING JUST-IN-TIME (JIT) WASTE ELIMINATION AND QUALITY IMPROVEMENT MANAGING THE CUSTOMERS MARKETING MIX SERVICE CHAIN MANAGEMENT THE SALES PROCESS SALES FORCE AUTOMATION MANAGING SALES & OPERATIONS S&OP STAGES AND COMPONENTS EFFECTIVE S&OP MANAGING RESOURCES STRATEGICALLY MANAGING QUALITY AN OVERVIEW OF THE TERM “QUALITY” QUALITY ASSURANCE, CONTROL AND MANAGEMENT TQM GOOD PRACTICE SYSTEMS CHECK SHEETS QFD FISHBONE DIAGRAM KAIZEN TOYOTA PRODUCTION SYSTEM DEPARTMENTAL PURPOSE ANALYSIS POKA-YOKE QUALITY CIRCLE PDCA ADRI SIX SIGMA CONTINUOUS IMPROVEMENT PROJECTS STATISTICAL PROCESS CONTROL CONTROL CHARTS CONTROL CHART, RUN CHART, PARETO CHART, SCATTER DIAGRAM, AND CAUSE & EFFECT DIAGRAM ZERO DEFECTS FAILURE TESTING SCORECARDING AUDIT METRICS QUALITY STANDARDS PQT AND QIT KAIZEN TEAM BUSINESS PROCESS REENGINEERING MANAGING PEOPLE (LEADERSHIP) LEADERSHIP STYLES GOVERNANCE AGENCY THEORY BUSINESS ETHICS SOCIAL RESPONSIBILITY SR TERMS SR AS AN OBLIGATION SR AS A LIABILITY SR AS A STRATEGIC MOVE SR ON A GLOBAL SCALE SR APPROACHES MANAGING KNOWLEDGE DISTINGUISHING BETWEEN DIFFERENT KINDS OF KNOWLEDGE KM, TEAMWORK AND TECHNOLOGIES PROMOTING KM DEMAND PLANNING & MANAGEMENT NATURE OF DEMANDS DEMAND MANAGEMENT VS DEMAND PLANNING HOW DO YOU ACTUALLY MANAGE THE DEMAND? DEMAND FORECASTING STATISTICAL TOOLS FOR FORECASTING MOVING AVERAGE ABC CLASSIFICATION MORE ON QUANTITATIVE TECHNIQUES THE CENTER THE DISTRIBUTION NORMAL DISTRIBUTION CORRELATION ANALYSIS AND CONTINGENCY ANALYSIS STATISTICAL INFERENCE OTHER ANALYSIS METHODS BULLWHIP EFFECT MEASURING BUSINESS PERFORMANCE FINANCIAL MEASURES METRICS FOR OPERATION AND INVENTORY MANAGEMENT OTHER METRICS BENCHMARKING MANAGING LOGISTICS TRANSPORTATION BASIC MODES OF TRANSPORTATION DRP PACKAGING REVERSE LOGISTICS YARD & DOCK MANAGEMENT MANAGING THE WORKPLACE AND THE WORKFORCE STAFFING STRATEGIC WORKFORCE PLANNING INTERNAL CONTROLS BASIC CONTROL PRINCIPLES CASH HANDLING DISBURSEMENTS, PAYMENT AND ACQUISITION DIVERSITY MANAGEMENT ISSUE MANAGEMENT PREMISES MANAGEMENT PERFORMANCE EVALUATION LAST MINUTE TIP

This product has approx. 585 pages in total. Contents have been updated on 18 Dec, 2008.

CFCM Exam Tips

Most Federal Knowledge questions are based on FAR. The questions do not directly refer to FAR, but the correct answers would for sure be based on FAR.

Take a look at this sample question:

If a proposed contractor was discovered to have insufficient financial resources to perform the proposed contract, it would be determined to be not

responsive.
reasonable.
responsible. <--
authorized.

"responsible" is the correct answer. According to FAR 9.1 Responsible Prospective Contractors, federal contracts would be awarded to responsible prospective contractors only. No purchase or award would be made unless the government contracting officer makes an affirmative determination of responsibility.

As can be seen from this sample, the question does not explicitly say what FAR section it is referring to, instead it kinda "links" to FAR indirectly.

Another example:

A contractor who fails to meet a delivery date

may be terminated for default only after being given a 10-day grace period.
may be terminated for default immediately. <--
may be terminated for default at any time within two years.
may not be terminated until the Government assures itself of the contractor's fault.

This is how we should think about the situation presented in the question. In theory, the contractor must immediately advise the contract officer of any circumstance or event that could result in late completion of work called for to be completed on a date certain. If the contractor cannot meet the contract completion date for any work required to be completed by a date certain, the contractor could be held liable. There are usually clauses in the contract about what to do if delivery is late. A reasonable clause will accommodate for sudden and unexpected situation, or that there will be room for the contractor to fix the problem (some sort of grace period, length of the period could vary). To protect the right of the government, however, there will usually be a clause which allows the government to reserve its rights in terminating the contract for default plus seeking damage recovery.

The question does not mention any use of any clause for grace period, and there is no information on how late the delivery is. There is also no information on whether late delivery is due to unexpected natural disasters or other acts of God. It simply says the contractor fails to deliver on time. Therefore, it is apparently the contractor's fault, and he may be terminated for default immediately.

If you understand the logic behind the CFCM questions & choices, you will have no problem picking the right answers!

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