Contract Negotiation & Compliance Flashcards

When conducting a post-negotiation lessons learned review, which outcome is MOST valuable for improving future contract negotiations?

Answer: Identifying which negotiation positions succeeded or failed and why

Analyzing which positions succeeded or failed and understanding the reasons builds institutional knowledge that directly improves future negotiation strategies.

A contractor's compliance program reveals that an employee submitted false travel vouchers worth $2,500. Under the False Claims Act, the government could recover:

Answer: Treble damages ($7,500) plus civil penalties per claim

The False Claims Act provides for treble (triple) damages plus civil monetary penalties per false claim submitted to the government.

During contract performance, a contractor identifies a requirement ambiguity that could be interpreted two ways—one far more costly than the other. The contractor should:

Answer: Seek a written contract interpretation from the contracting officer before proceeding

Seeking a written interpretation from the contracting officer before proceeding protects the contractor from performing incorrectly and documents the government's intent.

Under the Buy American Act, a contractor must certify that end products are domestic. A product is considered domestic if:

Answer: The cost of domestic components exceeds 55% of the total cost of all components

The Buy American Act uses a component test where the cost of domestic components must exceed 55% (previously 50%) of total component costs for the end product to qualify.

A capture manager discovers that a competitor submitted a protest challenging the solicitation's evaluation criteria. The BEST strategic response is to:

Answer: Continue proposal development while monitoring the protest outcome for potential solicitation amendments

Continuing proposal development while monitoring the protest allows the capture team to adapt if the solicitation is amended without losing preparation time.

Which small business program requires a prime contractor to submit a subcontracting plan when the contract exceeds the applicable threshold?

Answer: Small Business Subcontracting Program under FAR 19.7

FAR Subpart 19.7 requires large business prime contractors to submit subcontracting plans with goals for small business participation when contracts exceed the applicable dollar threshold.

In negotiating a Cost-Plus-Incentive-Fee (CPIF) contract, the 'share ratio' determines:

Answer: How cost overruns and underruns are split between the government and contractor

The CPIF share ratio specifies the proportion of cost overruns or underruns that each party absorbs, creating a cost-management incentive for the contractor.