CFM CFM - Certified Facility Manager Procurement and Contract Management 2

Question 1

A Key Performance Indicator (KPI) in a facility service contract is BEST described as:

Accepted Answer

A measurable metric used to evaluate vendor performance against contractual obligations

Answer

A clause that automatically renews the contract annually

Answer

A penalty assessed when a vendor misses a deadline

Answer

A schedule of unit prices for additional work orders

Question 2

A Service Level Agreement (SLA) in facility management contracts primarily defines:

Accepted Answer

Expected performance standards and response times for contracted services

Answer

The total dollar value of the contract over its term

Answer

Insurance and indemnification requirements

Answer

Ownership rights to facility management data

Question 3

When a facility manager issues a Request for Proposal (RFP), the primary advantage over an Invitation for Bid is:

Accepted Answer

It allows evaluation of qualifications, approach, and price rather than price alone

Answer

It results in faster contract award timelines

Answer

It eliminates the need for a formal evaluation committee

Answer

It guarantees the lowest possible cost for services

Question 4

In contract administration, 'change order management' is critical because:

Accepted Answer

Changes to scope can affect cost and schedule and must be formally authorized

Answer

Change orders automatically extend the contract term

Answer

Change orders replace the original contract scope entirely

Answer

They are required only for contracts exceeding $1 million

Question 5

A performance bond in a facilities construction or service contract guarantees that:

Accepted Answer

The contractor will complete the project according to contract terms

Answer

The contractor's employees are covered by workers' compensation

Answer

The contractor will pay all subcontractors and suppliers

Answer

The project will be completed under budget

Question 6

Which approach BEST describes competitive sealed bidding in public-sector facility procurement?

Accepted Answer

Bids are publicly opened, and award goes to the lowest responsive, responsible bidder

Answer

Vendors submit proposals and negotiate final pricing with the owner

Answer

A pre-selected vendor pool competes for task orders under an existing agreement

Answer

A single vendor is selected based on unique qualifications and prior relationships

Question 7

A facility manager is reviewing a contract's 'force majeure' clause. This clause is designed to:

Accepted Answer

Excuse non-performance when extraordinary events beyond either party's control occur

Answer

Allow the owner to terminate the contract without penalty at any time

Answer

Set escalation procedures for unresolved disputes

Answer

Define payment schedules for milestone-based contracts