CFCM Ethics, Compliance & Risk Assessment 3 — Questions and Answers
Question 1: Which office is primarily responsible for suspending or debarring contractors from federal contracting due to ethics violations?
- The Office of Inspector General (OIG)
- The Suspension and Debarment Official (SDO) at each agency (Correct answer)
- The Department of Justice
- The Government Accountability Office (GAO)
Correct answer: The Suspension and Debarment Official (SDO) at each agency
Each federal agency has a Suspension and Debarment Official (SDO) who has authority under FAR Subpart 9.4 to impose suspensions and debarments.
Question 2: Under FAR 9.406-2, which of the following is a CAUSE for debarment?
- Submitting a bid that was later found to be non-responsive
- Conviction of fraud or a criminal offense in connection with obtaining a government contract (Correct answer)
- Failing to submit required reports within 30 days of the due date
- Receiving a 'marginal' past performance rating on a single contract
Correct answer: Conviction of fraud or a criminal offense in connection with obtaining a government contract
FAR 9.406-2 lists conviction of fraud or criminal offense in connection with a government contract as a mandatory cause for debarment.
Question 3: What is the maximum period of debarment under FAR 9.406-4 absent extraordinary circumstances?
- 1 year
- 3 years (Correct answer)
- 5 years
- 10 years
Correct answer: 3 years
FAR 9.406-4 states that the period of debarment shall not exceed 3 years, absent exceptional circumstances justifying a longer period.
Question 4: Organizational conflict of interest (OCI) under FAR Subpart 9.5 is primarily concerned with situations where:
- A contractor employs former government officials who worked on the procurement
- A contractor's relationship with the government gives it an unfair competitive advantage or impairs its objectivity (Correct answer)
- Two competing contractors have common ownership
- A contractor performs work in multiple federal agencies simultaneously
Correct answer: A contractor's relationship with the government gives it an unfair competitive advantage or impairs its objectivity
FAR Subpart 9.5 defines OCI as situations where a contractor's ability to render impartial assistance or advice is impaired, or a contractor has an unfair competitive advantage.
Question 5: The 'revolving door' restrictions under 18 U.S.C. § 207 primarily affect:
- Contractors who hire former congressional staff
- Former federal officials communicating with their former agencies on matters they personally participated in (Correct answer)
- Current federal employees seeking employment with contractors
- Contractors submitting proposals within two years of a prior award
Correct answer: Former federal officials communicating with their former agencies on matters they personally participated in
18 U.S.C. § 207 restricts former government officials from communicating with their former agencies on particular matters in which they personally and substantially participated.
Question 6: Under FAR 3.502-2, a contractor employee reports that their supervisor directed them to submit a fraudulent invoice. The employee's best protected course of action is to:
- Refuse to submit the invoice and resign immediately
- Report through the contractor's internal ethics hotline and, if unresolved, to the agency Inspector General (Correct answer)
- Report directly to the contracting officer on the contract
- File a qui tam lawsuit under the False Claims Act immediately
Correct answer: Report through the contractor's internal ethics hotline and, if unresolved, to the agency Inspector General
FAR 52.203-13 requires contractors to have internal reporting mechanisms, and employees should use these first; the agency IG is also a protected reporting channel under whistleblower statutes.
Question 7: Risk mitigation in federal contracting most often involves which of the following techniques for high-risk technical areas?
- Transferring all risk to the contractor through firm-fixed-price contracts
- Conducting market research, requiring performance bonds, and using cost-reimbursement contracts (Correct answer)
- Eliminating the procurement entirely to avoid risk exposure
- Awarding to the lowest price technically acceptable offeror to minimize cost risk
Correct answer: Conducting market research, requiring performance bonds, and using cost-reimbursement contracts
For high-risk technical work, risk mitigation tools include thorough market research, performance/payment bonds, and cost-type contracts that share financial risk with the government.
CFCM Ethics, Compliance & Risk Assessment 3
Which office is primarily responsible for suspending or debarring contractors from federal contracting due to ethics violations?