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CPCM Test Terms | Questions And Answers Latest {} A+ Graded | 100% Verified
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CPCM Test Terms | Questions And Answers Latest {} A+ Graded | 100% Verified
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CPCM Test Terms | Questions And Answers Latest {2024- 2025} A+ Graded | 100%Verified
Dicharge of a contract - Results when the obligations incurred by the parties when they entered the
agreement are excused and the parties are no longer bound to perform as promised
Breach of Contract - The failure, without legal excuse, to perform any promise that forms the whole or
part of the contract
As Is - Condition of property to be sold or leased and generally pertains to a disclaimer of liability.
Generally not guaranteed
Kickback - Seller providing a portion of the portion price to the buyer to induce purchase or to influence
future purchases
Condition Precedent - A condition that activates a term in a contract
Forbearance - Intentional failure of a party to enforce a contract requirement, usually done for an act of
immediate or future consideration from the other party Sometimes referred to as a non waiver or one
time waivers but not as a relinquishment of rights
Agency - Relationship whereby the principal authorizes another to act for an on behalf of the principal
and to bind the principal in a contract
Novation Agreement - Legal instrument executed by the seller (transferor), the successor in interest
(transferee), and the buyer by which the transferor guarantees performance of the contract. The
Transferee guarantees performance of the contract, and the buyer recognizes the transfer of the
contract and related assets.
Acceptance - 1. The act of an authorized representative of the buyer by which the buyer assents to
ownership of existing and identified supplies, or approves specific services rendered, as partial or
complete performance of a contract. 2. An offer's manifestation of assent to the terms of an offer made
to him or her by an offeror. The acceptance is the act, the verb or written assent, or, in certain instances,
the silence that creates contractual liabilities for both the offeror and the offer. 3. the taking and
,receiving of anything in good part and as if it were a tacit agreement to a preceding act that might have
been defeated or avoided if such acceptance had not been made. 4. Agreement to the terms offered i a
contract. An acceptance must be communicated and (in common law) it must mirror image of the offer
consideration - The cause, motive, price or impelling influence that induces a contracting party to enter
a contract
Conflict of Interest - An employee's personal or financial interest conflicts or appears to conflict with his
or her official responsibility
Fraud - An intentional misrepresentation of truth to induce another in reliance upon it to part with
something of value to him or her, or to surrender a legal right
Ethics - Standards by which one should act based on values
Defective specifications - Mistakes and omissions in the requirements set forth
Domestic End Product - Type of product is considered to be manufactured in the United States if the
cost of components mined, produced or manufactured exceeds 50% of the cost of all its components
Firm Fixed Price - Contract family the provides for a price that is not subject to any adjustment on the
basis of the contractors cost experience in performing the contract
Advantages of a Firm Fixed Price Contract - Fair and reasonable price can be established at outset
Fixed-Price Incentive Contract - Profit is earned or lost based on the relationship that the contracts final
negotiated cost bears to the total target cost
Advantage of Cost-Plus Incentive-Fee Contract - Performance incentives are clearly identified and
objectively measured
,Cost-Plus Award Fee - Award fee is earned for excellence in performance, quality, timelines, ingenuity,
and cost-effectiveness and can be earned in whole or part
Time and materials (T&M) contract - A ceiling price is established at time of award
Cost Reimbursement - Type of contract family provides for payment of allowable, allocable, and
reasonable costs incurred in the performance of a contract
Time and Materials (T&M) Contract - Type of contract provides for acquiring supplies or services on the
basis or direct labor hours at specified fixed hour rates that includes wages, overhead and materials
Letter Contract - A preliminary written agreement to begin immediately manufacturing supplies or
performing services
Examples of competitive acquisition methods - 1. Sealed Bidding, 2. simplified acquisition, 3. Negotiation
Payment Bond - Bond that secures the appropriate payment of subcontractors for their completed and
acceptable goods and/or services.
Surety backs a contractor ensuring their subs/ suppliers get paid
Cost of Capital - Under the net-present-value method, a manager determines some minimum desired
rate of return.
AVERAGE RATE a firm pays on combination of debt and equity.
Acquisition Cost - This includes all costs associated with generating and processing an order and its
related paperwork. It is the sum of the ordering, transporting, handling and all inventory handling costs
associated with the acquisition of material
Accrual Accounting - This type of accounting recognizes important concepts, such as receivables due
from customers, payables due to vendors, interest due from investments, and other matching concepts
as a means of providing an accurate picture of a company's financial position.
Follows revenue recognition principle and matching principles.
, Direct Labor - All work that is obviously related and specifically and conveniently traceable to specific
products.
Direct Costs - Costs specifically identifiable with a contract requirement, including but not restricted to
costs of material and/or labor directly incorporated into an end item
Fixed Price with Award Fee - This type of contract is sometimes used when it is difficult to include other
incentives because contractor performance cannot be measured objectively. It established a fixed price,
including normal profit that will be paid for satisfactory contract performance, also establishes
additional fee the contractor can earn for performance.
Fixed Price Incentive Contract - Provides for an initial fixed price, and also allows for adjusting profit and
establishing, the final contract price by use of a formula that compares the relationship of total final
negotiated cost to total target cost
Cost-Sharing Contracts - Provides for the partial reimbursement of the contractor's allowable costs with
no allowances for profit or fees
Types of Cost Reimbursement Contracts - Cost Plus Fixed Fee, Cost Sharing Contracts, Cost Contracts
Considerations in Adjusting Economic Prices - Established published prices, actual labor costs, indexed
labor costs
Unsolicited Proposal - An R&D proposal that is made by a prospective contractor without prior formal or
information solicitation from a purchasing activity
Reverse Auctions - Purchase transactions in which goods and services are purchased from the lowest
bidder
Negotiation - Method of contracting that may be done competitively or non competitively
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