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Contracting Principles & Regulations 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 Contracting Principles & Regulations flashcards as text

  1. A contractor submits a request for equitable adjustment (REA) after the government issues a change order. Under FAR 43.204, what must an REA include?

    Answer: A certified claim if over $100,000, with supporting cost and pricing data

    Under the Contract Disputes Act, claims over $100,000 must be certified, and REAs must include adequate supporting data to allow the contracting officer to evaluate the adjustment.

  2. Which of the following is a key characteristic of a Cost-Plus-Incentive-Fee (CPIF) contract?

    Answer: The fee adjusts based on the relationship of final negotiated cost to target cost

    In a CPIF contract, the fee varies based on a formula tied to how actual costs compare to a target cost — lower costs earn higher fees, higher costs reduce the fee.

  3. Under the Federal Acquisition Streamlining Act (FASA), what was a major change to acquisition policy?

    Answer: It raised the simplified acquisition threshold and authorized expanded use of commercial item contracting

    FASA significantly raised the simplified acquisition threshold, encouraged use of commercial item contracting procedures, and reduced regulatory burdens on acquisition.

  4. A contracting officer determines a prospective contractor is 'non-responsible.' What must happen before the contract can be awarded?

    Answer: For small businesses, the matter must be referred to the Small Business Administration (SBA) for a Certificate of Competency (COC)

    FAR 19.602 requires contracting officers to refer small business non-responsibility determinations to the SBA, which can override the decision by issuing a Certificate of Competency.

  5. What is the 'cardinal change' doctrine in federal contract law?

    Answer: A change so significant it falls outside the general scope of the original contract, potentially constituting a new procurement

    The cardinal change doctrine holds that a change so substantial it alters the fundamental nature of the work may be outside the contract's scope and constitute an unauthorized new procurement.

  6. Under FAR Part 30, the Cost Accounting Standards (CAS) apply to negotiated contracts above what threshold?

    Answer: $2,000,000

    CAS coverage applies to negotiated contracts and subcontracts of $2,000,000 or more, though modified CAS coverage applies to contracts between $2M and $50M.

  7. Which of the following scenarios correctly triggers the requirement for a written Justification and Approval (J&A) for other-than-full-and-open competition?

    Answer: An agency awards a sole-source contract citing unique technical capability of a single vendor

    A sole-source award citing unique technical capability invokes FAR 6.302-1 and requires a written J&A approved at the appropriate level before award.