Fraud Detection & Prevention 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 Fraud Detection & Prevention flashcards as text
Which indicator is most likely a red flag for collusive bidding among contractors?
Answer: Winners alternate among the same group of contractors on similar contracts
Bid rotation—where the same group of contractors takes turns winning contracts—is a classic indicator of collusive bidding agreements.
Under the Anti-Kickback Act, which of the following is prohibited?
Answer: Providing a gift to a subcontractor to influence subcontract award
The Anti-Kickback Act prohibits any money, fee, commission, or gift given to influence the award or administration of a subcontract under a prime government contract.
A contractor submits certified cost or pricing data that it knows is inaccurate. This constitutes:
Answer: Defective pricing
Defective pricing occurs when a contractor submits cost or pricing data that is inaccurate, incomplete, or not current, in violation of the Truth in Negotiations Act (TINA).
Which of the following government databases should a CO check to identify contractors who are debarred or suspended?
Answer: System for Award Management (SAM.gov)
SAM.gov (System for Award Management) contains the Exclusions list, which COs must check before awarding contracts to ensure contractors are not debarred or suspended.
When a contractor employee reports suspected fraud internally and is retaliated against, they are protected under:
Answer: Whistleblower protection provisions of the National Defense Authorization Act
The NDAA and related statutes provide whistleblower protections for contractor employees who report fraud, waste, or abuse related to federal contracts.
A contractor charges the cost of an executive's country club membership to a government cost-reimbursement contract. This is best classified as:
Answer: Unallowable cost
FAR 31.201-6 and FAR 31.205-14 identify entertainment costs such as club memberships as unallowable and therefore cannot be charged to government contracts.
What is the primary purpose of the Contractor Responsibility determination before award?
Answer: Verifying the contractor is technically capable and has satisfactory integrity
FAR 9.104-1 requires COs to determine that prospective contractors have satisfactory records of integrity and business ethics, among other standards, before awarding a contract.