NCMA Cheat Sheet 2026

The 30 highest-yield NCMA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A contract modification that is signed by both the contractor and the contracting officer is known as a: → Bilateral Modification
2. What is the fundamental policy of the United States Government regarding competition in acquisitions, as stated in FAR Part 6? → To promote and provide for full and open competition.
3. Which of the following is a primary objective of post-award contract monitoring? → Ensuring all parties adhere to the agreed-upon terms and obligations.
4. What is the primary purpose of contract administration in the post-award phase? → To ensure compliance with terms and successful performance
5. What is the purpose of a Contracting Officer's Representative (COR)? → To monitor performance and report to the CO
6. Which of the following is a goal of the pre-solicitation phase? → Refine requirements and identify potential offerors
7. What must a Contracting Officer do before issuing a cure notice? → Document the contractor's performance deficiencies
8. What is the primary difference between a change order and a constructive change? → Change orders are formal; constructive changes are informal
9. Which financial report is required for cost-reimbursement contracts? → SF 1435 (Proposal for Indirect Cost Rates)
10. Price analysis differs from cost analysis primarily in that price analysis: → Examines proposed prices without evaluating their separate underlying cost elements
11. What is a key component of an Acquisition Plan (AP)? → Strategies to promote competition
12. Which cost is typically UNALLOWABLE under FAR Part 31? → Entertainment expenses
13. Which FAR Part governs the acquisition planning process? → FAR Part 7
14. Which of the following contract types places the most cost risk on the contractor? → Firm-Fixed-Price (FFP)
15. In a contract negotiation, a party's Best Alternative to a Negotiated Agreement (BATNA) is best described as: → The course of action a party will take if the current negotiation fails.
16. Which of the following is a required element of a valid contract? → Mutual consideration
17. Which of the following elements must be addressed in a written acquisition plan, as stipulated by FAR 7.105? → Risks, contract type selection, and a statement of need.
18. Which FAR Part primarily governs contract formation procedures? → FAR Part 15
19. What is the purpose of a Provisional Billing Rate (PBR)? → To enable interim payments based on estimated rates
20. What is the purpose of the Contractor Performance Assessment Reporting System (CPARS)? → To evaluate and report on contractor performance
21. When does contract execution typically occur? → When both parties sign the contract
22. Which clause allows the government to terminate a contract for convenience? → FAR 52.249-2
23. Which contract type places the maximum cost risk on the contractor? → Firm-Fixed-Price (FFP)
24. What is the purpose of a Source Selection Plan (SSP)? → To document the evaluation process and criteria
25. What is the threshold for the Simplified Acquisition Threshold (SAT) as of 2023? → $250,000
26. What is the primary feature that distinguishes a Fixed-Price-Incentive-Firm (FPIF) contract from a standard Firm-Fixed-Price (FFP) contract? → FPIF includes a share ratio to divide cost underruns and overruns between the parties
27. Which contract type uses a 'share ratio' to allocate cost underruns and overruns between the government and the contractor? → Cost-Plus-Incentive-Fee (CPIF)
28. What is the primary purpose of Earned Value Management (EVM) in contract financial management? → To track progress and predict final costs
29. Which document is used to formally request proposals from potential contractors? → Request for Proposal (RFP)
30. Which FAR Part governs the allowability of contract costs? → FAR Part 31