CFCM Legal Compliance 3 — Questions and Answers
Question 1: The Trade Agreements Act (TAA) restricts the purchase of end products from non-designated countries. Which agency administers the list of designated countries eligible for TAA coverage?
- Department of Commerce
- Office of the United States Trade Representative (Correct answer)
- General Services Administration
- Department of State
Correct answer: Office of the United States Trade Representative
The USTR administers trade agreements that determine which countries qualify as designated countries under the TAA for federal procurement.
Question 2: Under FAR Part 31, which cost is unallowable when incurred in connection with a federal contract?
- Reasonable employee relocation costs
- Costs of preparing and submitting bids
- Entertainment costs for client events (Correct answer)
- Independent research and development costs
Correct answer: Entertainment costs for client events
FAR 31.205-14 makes entertainment costs unallowable, including costs of amusement, diversion, and social activities and related costs.
Question 3: When a contractor submits certified cost or pricing data that is later found to be defective, the government is entitled to a price reduction under which statute?
- Truth in Negotiations Act (TINA) (Correct answer)
- Competition in Contracting Act
- Federal Acquisition Streamlining Act
- Clinger-Cohen Act
Correct answer: Truth in Negotiations Act (TINA)
TINA (now codified at 10 U.S.C. § 3702 and 41 U.S.C. § 3502) requires accurate, complete, and current cost or pricing data and allows price reduction for defective data.
Question 4: Which clause requires contractors to flow down cybersecurity requirements to subcontractors handling Controlled Unclassified Information (CUI)?
- DFARS 252.204-7012 (Correct answer)
- FAR 52.239-1
- DFARS 252.227-7013
- FAR 52.204-21
Correct answer: DFARS 252.204-7012
DFARS 252.204-7012 (Safeguarding Covered Defense Information) requires contractors to flow down cybersecurity requirements to subcontractors processing CUI.
Question 5: A contractor's employee reports suspected fraud to the agency inspector general. Under the National Defense Authorization Act whistleblower provisions, the employee is protected from reprisal for how long after the protected disclosure?
- The protection expires when the contract ends
- Protection applies only during the investigation period
- Protection is indefinite as long as the employee is employed (Correct answer)
- Three years from the date of disclosure
Correct answer: Protection is indefinite as long as the employee is employed
Whistleblower protections under 41 U.S.C. § 4712 are indefinite and prohibit reprisal against contractor employees for protected disclosures throughout their employment.
Question 6: Under the Small Business Act, what is the primary purpose of the certificate of competency (COC) process?
- To certify a small business's socioeconomic status
- To allow SBA to review a contracting officer's finding that a small business is nonresponsible (Correct answer)
- To verify a contractor's past performance record
- To authorize a sole-source award to a small business
Correct answer: To allow SBA to review a contracting officer's finding that a small business is nonresponsible
The COC process allows the SBA to review and override a contracting officer's determination that a small business lacks the capacity or credit to perform a contract.
Question 7: Which provision of the FAR prohibits contractors from disclosing contractor bid or proposal information or source selection information before contract award?
- FAR 3.104-4 (Correct answer)
- FAR 9.105-3
- FAR 15.306
- FAR 14.401
Correct answer: FAR 3.104-4
FAR 3.104-4 implements the Procurement Integrity Act's prohibition on disclosure of contractor bid or proposal information and source selection information.
CFCM Legal Compliance 3
The Trade Agreements Act (TAA) restricts the purchase of end products from non-designated countries.
Which agency administers the list of designated countries eligible for TAA coverage?