CFM CFM - Certified Facility Manager Procurement and Contract Management 2 ā Questions and Answers
Question 1: A Key Performance Indicator (KPI) in a facility service contract is BEST described as:
- A measurable metric used to evaluate vendor performance against contractual obligations (Correct answer)
- A clause that automatically renews the contract annually
- A penalty assessed when a vendor misses a deadline
- A schedule of unit prices for additional work orders
Correct answer: A measurable metric used to evaluate vendor performance against contractual obligations
KPIs are quantifiable measuresāsuch as response time or uptime percentageāthat verify whether the vendor is meeting agreed service levels.
Question 2: A Service Level Agreement (SLA) in facility management contracts primarily defines:
- Expected performance standards and response times for contracted services (Correct answer)
- The total dollar value of the contract over its term
- Insurance and indemnification requirements
- Ownership rights to facility management data
Correct answer: Expected performance standards and response times for contracted services
An SLA establishes measurable service standardsāsuch as HVAC response timesāand the consequences if those standards are not met.
Question 3: When a facility manager issues a Request for Proposal (RFP), the primary advantage over an Invitation for Bid is:
- It allows evaluation of qualifications, approach, and price rather than price alone (Correct answer)
- It results in faster contract award timelines
- It eliminates the need for a formal evaluation committee
- It guarantees the lowest possible cost for services
Correct answer: It allows evaluation of qualifications, approach, and price rather than price alone
An RFP permits the facility manager to weigh technical merit, experience, and proposed approach alongside price, enabling best-value selection.
Question 4: In contract administration, 'change order management' is critical because:
- Changes to scope can affect cost and schedule and must be formally authorized (Correct answer)
- Change orders automatically extend the contract term
- Change orders replace the original contract scope entirely
- They are required only for contracts exceeding $1 million
Correct answer: Changes to scope can affect cost and schedule and must be formally authorized
Formal change orders document scope modifications, ensuring cost and schedule impacts are agreed upon before work proceeds, preventing disputes.
Question 5: A performance bond in a facilities construction or service contract guarantees that:
- The contractor will complete the project according to contract terms (Correct answer)
- The contractor's employees are covered by workers' compensation
- The contractor will pay all subcontractors and suppliers
- The project will be completed under budget
Correct answer: The contractor will complete the project according to contract terms
A performance bond is issued by a surety and protects the owner if the contractor fails to perform, covering the cost to complete the work.
Question 6: Which approach BEST describes competitive sealed bidding in public-sector facility procurement?
- Bids are publicly opened, and award goes to the lowest responsive, responsible bidder (Correct answer)
- Vendors submit proposals and negotiate final pricing with the owner
- A pre-selected vendor pool competes for task orders under an existing agreement
- A single vendor is selected based on unique qualifications and prior relationships
Correct answer: Bids are publicly opened, and award goes to the lowest responsive, responsible bidder
Competitive sealed bidding requires public bid opening and mandates award to the lowest qualifying bidder to ensure transparency and fairness.
Question 7: A facility manager is reviewing a contract's 'force majeure' clause. This clause is designed to:
- Excuse non-performance when extraordinary events beyond either party's control occur (Correct answer)
- Allow the owner to terminate the contract without penalty at any time
- Set escalation procedures for unresolved disputes
- Define payment schedules for milestone-based contracts
Correct answer: Excuse non-performance when extraordinary events beyond either party's control occur
Force majeure protects both parties from liability for non-performance caused by unforeseeable events such as natural disasters, pandemics, or war.
CFM CFM - Certified Facility Manager Procurement and Contract Management 2
A Key Performance Indicator (KPI) in a facility service contract is BEST described as: