Claims Processing & Investigation Flashcards
7 cards from real FAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Claims Processing & Investigation flashcards as text
Under FAR 52.215-10, Price Reduction for Defective Certified Cost or Pricing Data, when can the government demand a price reduction?
Answer: When the contractor's cost or pricing data was inaccurate, incomplete, or noncurrent at the time of agreement on price
The government may demand a price reduction when the contractor's certified cost or pricing data was inaccurate, incomplete, or noncurrent as of the date of price agreement.
Which Board of Contract Appeals has jurisdiction over non-DOD civilian agency contract disputes?
Answer: Civilian Board of Contract Appeals (CBCA)
The Civilian Board of Contract Appeals (CBCA) has jurisdiction over contract disputes from most non-DOD federal civilian agencies.
A contractor receives a termination for default. The contractor believes the default was excusable due to a supplier's bankruptcy. What should the contractor do first?
Answer: Submit written notice and documentation to the CO arguing the default was excusable
The contractor should immediately submit written notice and supporting documentation to the CO arguing the default was excusable, which could convert it to a termination for convenience.
What is 'accord and satisfaction' in the context of federal contract claims?
Answer: A settlement where both parties agree to accept consideration different from what was originally owed, fully resolving the dispute
Accord and satisfaction occurs when parties agree to accept different consideration than originally owed, fully discharging the original obligation and barring future claims on that matter.
Under the Prompt Payment Act, what happens if the government fails to pay a proper invoice within the required timeframe?
Answer: The government must pay interest automatically without the contractor having to request it
The Prompt Payment Act requires the government to pay interest automatically on late payments without requiring a contractor claim or request.
A contractor submits a claim that includes a request for attorney's fees. Under what circumstance can a contractor recover attorney's fees from the government?
Answer: Under the Equal Access to Justice Act (EAJA), if the government's position was not substantially justified and the contractor qualifies
Under EAJA, eligible contractors (meeting size standards) may recover attorney's fees if the government's position was not substantially justified in litigation.
During a claim investigation, the CO discovers the contractor may have violated the Covenant Against Contingent Fees. What does this covenant prohibit?
Answer: Paying a third party a contingent fee (commission) to solicit or obtain a government contract
The Covenant Against Contingent Fees (FAR 52.203-5) prohibits contractors from employing or retaining anyone to solicit a government contract for a contingent fee, except bona fide employees or agencies.