CFCM FAR Regulations 4 — Questions and Answers
Question 1: Under FAR 32.702, what is the maximum advance payment that may be made to a contractor without specific approval from the head of the agency?
- Any amount with CO approval
- Advances are prohibited unless specifically authorized by statute (Correct answer)
- Up to $150,000 for nonprofit organizations
- Advances up to 15% of contract value
Correct answer: Advances are prohibited unless specifically authorized by statute
FAR 32.702 states that advance payments may be made only when specifically authorized by statute, making statutory authorization a prerequisite.
Question 2: Which FAR subpart establishes the Truth in Negotiations Act (TINA) requirements for certified cost or pricing data?
- FAR Subpart 14.4
- FAR Subpart 15.4 (Correct answer)
- FAR Subpart 16.6
- FAR Subpart 31.2
Correct answer: FAR Subpart 15.4
FAR Subpart 15.4 implements the Truthful Cost or Pricing Data statute (formerly TINA), requiring certified cost or pricing data above the threshold.
Question 3: A contracting officer discovers a contractor is on the Excluded Parties List in SAM. Under FAR 9.405, what action is required?
- The CO may still award if the contracting activity head approves
- The CO must not solicit offers from, award to, or consent to subcontracts with the debarred contractor (Correct answer)
- The CO must request a waiver from the SBA before proceeding
- The CO may award if the contractor files an appeal within 30 days
Correct answer: The CO must not solicit offers from, award to, or consent to subcontracts with the debarred contractor
FAR 9.405(a) prohibits contracting officers from soliciting, awarding to, or consenting to subcontracts with contractors on the excluded parties list absent a compelling reason exception.
Question 4: Under FAR 36.209, a contracting officer awarding a construction contract must include what clause for contracts exceeding $2 million?
- FAR 52.236-7 (Permits and Responsibilities)
- FAR 52.228-15 (Performance and Payment Bonds - Construction) (Correct answer)
- FAR 52.236-21 (Specifications and Drawings for Construction)
- FAR 52.228-5 (Insurance - Work on a Government Installation)
Correct answer: FAR 52.228-15 (Performance and Payment Bonds - Construction)
FAR 52.228-15 requires performance and payment bonds for construction contracts exceeding $150,000, with specific bond amounts mandated by the Miller Act.
Question 5: FAR 17.207 sets out the conditions under which a contracting officer may exercise a contract option. Which of the following is NOT a required condition?
- Funds are available for the option
- The option was synopsized when the original contract was awarded (Correct answer)
- The exercise is within the time period specified in the contract
- It is determined that the option price is fair and reasonable
Correct answer: The option was synopsized when the original contract was awarded
FAR 17.207 does not require re-synopsizing when exercising a previously awarded option, as the option was part of the original competitive acquisition.
Question 6: Under FAR 33.103, before filing a formal claim, a contractor may request what alternative process to resolve a contract dispute?
- Binding arbitration through AAA
- Alternative Dispute Resolution (ADR), such as mediation or mini-trial (Correct answer)
- Inspector General referral for independent review
- Congressional intervention through the GAO
Correct answer: Alternative Dispute Resolution (ADR), such as mediation or mini-trial
FAR 33.103(b) encourages the use of ADR procedures such as mediation, mini-trials, or other techniques before or after a formal claim is filed.
Question 7: Which FAR provision requires offerors to represent whether they are a small business as part of their offer for a small business set-aside?
- FAR 52.204-8 (Annual Representations and Certifications)
- FAR 52.219-1 (Small Business Program Representations) (Correct answer)
- FAR 52.219-14 (Limitations on Subcontracting)
- FAR 52.215-20 (Requirements for Certified Cost or Pricing Data)
Correct answer: FAR 52.219-1 (Small Business Program Representations)
FAR 52.219-1 requires offerors to represent their small business size status as part of the offer for applicable acquisitions.
CFCM FAR Regulations 4
Under FAR 32.702, what is the maximum advance payment that may be made to a contractor without specific approval from the head of the agency?