CFCM FAR Regulations 2 — Questions and Answers
Question 1: Under FAR 15.402, the preferred order for establishing contract pricing is:
- Cost analysis, price analysis, value analysis
- Price analysis, cost analysis, then technical analysis (Correct answer)
- Value analysis only for commercial items
- Audit-based pricing for all negotiated contracts
Correct answer: Price analysis, cost analysis, then technical analysis
FAR 15.402 directs contracting officers to use price analysis first; if price analysis alone is insufficient, cost analysis is then required.
Question 2: Which FAR part governs the acquisition of commercial products and commercial services?
- FAR Part 12 (Correct answer)
- FAR Part 13
- FAR Part 15
- FAR Part 16
Correct answer: FAR Part 12
FAR Part 12 establishes policies and procedures unique to the acquisition of commercial products and commercial services.
Question 3: Under FAR 52.222-26, the Equal Opportunity clause is required in contracts exceeding what threshold?
- $2,500
- $10,000 (Correct answer)
- $25,000
- $150,000
Correct answer: $10,000
FAR 52.222-26 requires the Equal Opportunity clause in contracts and subcontracts exceeding $10,000.
Question 4: FAR 19.502-2 requires a small business set-aside when the estimated value of a contract exceeds what amount and there is a reasonable expectation of competitive offers from at least two small businesses?
- $10,000 (Correct answer)
- $150,000
- $250,000
- $500,000
Correct answer: $10,000
FAR 19.502-2 mandates automatic small business set-asides for acquisitions exceeding $10,000 when the Rule of Two is met.
Question 5: Under FAR 22.1003-4, which type of contract is exempt from the Service Contract Labor Standards (formerly Service Contract Act)?
- Contracts for services performed exclusively outside the U.S. (Correct answer)
- Contracts for professional services above $2,500
- Contracts for janitorial services on federal property
- Contracts for IT support services at any dollar value
Correct answer: Contracts for services performed exclusively outside the U.S.
FAR 22.1003-4 exempts contracts for services performed entirely outside the United States from Service Contract Labor Standards coverage.
Question 6: Which FAR clause requires contractors to notify the contracting officer of actual or potential labor disputes that may delay contract performance?
- FAR 52.222-1 (Notice to the Government of Labor Disputes) (Correct answer)
- FAR 52.222-3 (Convict Labor)
- FAR 52.222-21 (Prohibition of Segregated Facilities)
- FAR 52.222-35 (Equal Opportunity for Veterans)
Correct answer: FAR 52.222-1 (Notice to the Government of Labor Disputes)
FAR 52.222-1 requires contractors to notify the contracting officer promptly of any labor dispute that may delay timely contract performance.
Question 7: Under FAR 27.303, what rights does the government receive in inventions made under a contract with a large business contractor?
- Full ownership of all inventions
- A nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention (Correct answer)
- No rights unless the contractor elects not to retain title
- Exclusive rights for 5 years then nonexclusive rights
Correct answer: A nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention
Under the Bayh-Dole Act as implemented in FAR 27.303, the government receives a nonexclusive license while the contractor retains title to inventions.
CFCM FAR Regulations 2
Under FAR 15.402, the preferred order for establishing contract pricing is: