CFCM Legal Compliance 5 â Questions and Answers
Question 1: Under the Sarbanes-Oxley Act provisions applicable to federal contractors, which type of contractor personnel have whistleblower protections for disclosing suspected violations of federal securities laws?
- Only publicly traded contractor employees
- All employees of publicly traded companies and their contractors (Correct answer)
- Only government employees assigned as CORs
- Only employees who hold security clearances
Correct answer: All employees of publicly traded companies and their contractors
SOX Section 1107 protects employees of publicly traded companies and their subsidiaries and contractors who report suspected securities fraud.
Question 2: Which FAR clause requires contractors to maintain adequate internal controls over government property and report any loss, damage, or destruction promptly?
- FAR 52.245-1 (Correct answer)
- FAR 52.215-2
- FAR 52.222-54
- FAR 52.249-8
Correct answer: FAR 52.245-1
FAR 52.245-1 (Government Property) establishes contractor responsibilities for controlling, using, maintaining, and reporting on government-furnished and contractor-acquired property.
Question 3: When the government seeks to terminate a contract for default based on a contractor's failure to deliver, the contractor may defend against the default by claiming what legal doctrine?
- Sovereign immunity
- Excusable delay (Correct answer)
- Constructive acceleration
- Commercial impracticability
Correct answer: Excusable delay
Excusable delay under FAR 52.249-8 and 52.249-14 protects contractors from default termination when delays result from unforeseeable causes beyond the contractor's control.
Question 4: The Organizational Conflicts of Interest (OCI) rules under FAR Subpart 9.5 are primarily designed to prevent which type of situation?
- Small business firms from competing against large businesses
- Contractors from simultaneously working for competitors
- Unfair competitive advantage or impaired objectivity due to conflicting roles (Correct answer)
- Contractors from hiring former government employees
Correct answer: Unfair competitive advantage or impaired objectivity due to conflicting roles
OCI rules prevent situations where a contractor's work for the government gives it an unfair advantage in a subsequent competition or impairs its ability to render objective advice.
Question 5: Under the Competition in Contracting Act (CICA), an interested party who wishes to protest the award of a federal contract to GAO must generally file within how many calendar days of the date the protesting party knew or should have known of the basis for protest?
- 7 days
- 10 days
- 15 days (Correct answer)
- 30 days
Correct answer: 15 days
GAO Bid Protest Regulations (4 C.F.R. § 21.2) require protests to be filed no later than 10 calendar days after the basis for protest is known, except protests challenging solicitation terms which must be filed before bid opening.
Question 6: A contractor performing a fixed-price contract encounters differing site conditions that significantly increase costs. Which FAR clause provides a legal basis for an equitable adjustment?
- FAR 52.243-1 (ChangesâFixed-Price)
- FAR 52.236-2 (Differing Site Conditions) (Correct answer)
- FAR 52.249-2 (Termination for Convenience)
- FAR 52.233-1 (Disputes)
Correct answer: FAR 52.236-2 (Differing Site Conditions)
FAR 52.236-2 entitles contractors to an equitable adjustment when they encounter subsurface or latent physical conditions materially different from those indicated in the contract.
Question 7: Under the International Traffic in Arms Regulations (ITAR), a defense contractor that exports technical data to a foreign national employee working in the U.S. facility must generally obtain what?
- An export license from the State Department (Correct answer)
- Approval from the contracting officer
- A technology control plan filed with DCSA
- A commodity jurisdiction determination
Correct answer: An export license from the State Department
Sharing ITAR-controlled technical data with a foreign nationalâeven within the United Statesâconstitutes a deemed export requiring a license from the State Department's Directorate of Defense Trade Controls.
CFCM Legal Compliance 5
Under the Sarbanes-Oxley Act provisions applicable to federal contractors, which type of contractor personnel have whistleblower protections for disclosing suspected violations of federal securities laws?