CFCM FAR Regulations 3 — Questions and Answers
Question 1: FAR 16.504(c) places what limitation on the use of indefinite-delivery indefinite-quantity (IDIQ) contracts by a single contractor for advisory and assistance services?
- $10 million lifetime cap
- 5-year maximum ordering period (Correct answer)
- No single IDIQ for advisory services may exceed $112 million
- Agencies must justify any IDIQ exceeding $50 million
Correct answer: 5-year maximum ordering period
FAR 16.504(c) limits the ordering period for single-award IDIQs to 5 years, including any options, absent a specific exception.
Question 2: Under FAR 31.205-6, which of the following employee compensation costs is UNALLOWABLE?
- Reasonable salaries for direct labor
- Bonuses tied to cost reduction achievements on government contracts
- Golden parachute payments triggered by change in contractor ownership (Correct answer)
- Employer contributions to qualified retirement plans
Correct answer: Golden parachute payments triggered by change in contractor ownership
FAR 31.205-6(l) specifically disallows golden parachute payments and other excessive compensation tied to changes in ownership or management.
Question 3: Which FAR clause gives the government the right to terminate a contract for default when the contractor fails to make progress endangering performance?
- FAR 52.249-8 (Default - Fixed-Price Supply and Service) (Correct answer)
- FAR 52.249-1 (Termination for Convenience of the Government)
- FAR 52.249-14 (Excusable Delays)
- FAR 52.212-4 (Contract Terms and Conditions - Commercial Products)
Correct answer: FAR 52.249-8 (Default - Fixed-Price Supply and Service)
FAR 52.249-8 authorizes termination for default, including situations where the contractor fails to make progress so as to endanger performance.
Question 4: FAR 3.502 prohibits gratuities offered to government personnel. What is the potential consequence to a contractor found in violation?
- Mandatory debarment for 3 years
- Contract termination and recovery of twice the value of the gratuity (Correct answer)
- Administrative fine equal to the contract value
- Suspension pending investigation with no further remedy
Correct answer: Contract termination and recovery of twice the value of the gratuity
FAR 3.502-3 allows the government to terminate the contract and recover from the contractor a penalty of not more than three times the value of the gratuity.
Question 5: Under FAR 4.703, contractors must retain records related to a government contract for a minimum of how long after final payment?
- 1 year
- 2 years
- 3 years (Correct answer)
- 5 years
Correct answer: 3 years
FAR 4.703 generally requires contractors to retain records for 3 years after final payment under the contract.
Question 6: Under FAR 15.306(d), which of the following is PROHIBITED during competitive negotiations (discussions)?
- Clarifying an offeror's technical approach
- Allowing offerors to revise their proposals
- Revealing one offeror's price to another offeror (Correct answer)
- Communicating the government's price objective
Correct answer: Revealing one offeror's price to another offeror
FAR 15.306(e) strictly prohibits revealing one offeror's technical solution, price, or other information to another competing offeror during discussions.
Question 7: FAR 9.103 states that to be eligible for a contract award, a prospective contractor must be determined:
- Technically acceptable based solely on past performance ratings
- Responsible, including having adequate financial resources and a satisfactory record of integrity (Correct answer)
- The lowest-priced among all offerors regardless of technical capability
- Pre-approved through the System for Award Management (SAM) for a minimum of 6 months
Correct answer: Responsible, including having adequate financial resources and a satisfactory record of integrity
FAR 9.103 requires contracting officers to determine prospective contractors responsible, encompassing financial resources, ability to perform, and integrity standards.
CFCM FAR Regulations 3
FAR 16.504(c) places what limitation on the use of indefinite-delivery indefinite-quantity (IDIQ) contracts by a single contractor for advisory and assistance services?