Regulatory Compliance & Law 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 Regulatory Compliance & Law flashcards as text
Under the Federal Acquisition Regulation, which clause requires contractors to flow down certain compliance requirements to their subcontractors?
Answer: FAR 52.244-6 (Subcontracts for Commercial Products and Commercial Services)
FAR 52.244-6 requires prime contractors to include certain FAR clauses in subcontracts for commercial products and services, ensuring flow-down of key compliance requirements.
Which law gives the government the right to audit a contractor's books and records on cost-reimbursement contracts, and is implemented through FAR 52.215-2?
Answer: 10 U.S.C. 2313 / 41 U.S.C. 4706 (Examination of Records)
10 U.S.C. 2313 and 41 U.S.C. 4706 authorize the government to examine contractor records, implemented through the Audit and Records clause at FAR 52.215-2.
The Drug-Free Workplace Act of 1988 requires federal contractors receiving grants or contracts above what threshold to maintain a drug-free workplace policy?
Answer: $25,000
The Drug-Free Workplace Act applies to federal contractors and grantees with contracts or grants of $25,000 or more.
Under the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), federal contractors with contracts of $150,000 or more must take affirmative action to employ and advance which protected veteran categories?
Answer: Disabled veterans, recently separated veterans, active duty wartime or campaign badge veterans, and Armed Forces service medal veterans
VEVRAA as amended protects four categories: disabled veterans, recently separated veterans, active wartime/campaign badge veterans, and Armed Forces service medal veterans.
A contractor is performing work on a classified contract and discovers a security violation. Which regulatory framework governs the contractor's security obligations and reporting requirements?
Answer: FAR Part 4 and the National Industrial Security Program Operating Manual (NISPOM)
FAR Part 4 (Administrative and Information Matters) and the NISPOM govern contractor obligations for protecting classified information and reporting security incidents.
Under FAR 3.502, the Gratuities clause (FAR 52.203-3) allows the government to terminate a contract for default and recover damages if a contractor or its agent offered gratuities to a government employee for what purpose?
Answer: To obtain or retain a contract or favorable contract treatment
FAR 52.203-3 authorizes termination for default and recovery if gratuities were offered to obtain or retain a contract or to secure favorable treatment in contract administration.
Which of the following best describes the legal significance of a 'Limitation of Funds' clause (FAR 52.232-22) in a cost-reimbursement contract?
Answer: It notifies the contractor of the allotted funds and requires notification when 75% is expended, but does not authorize exceeding the limit without government action
FAR 52.232-22 requires the contractor to notify the CO when 75% of funds are expended and prohibits exceeding the allotted amount without written authorization, protecting the government from Anti-Deficiency Act violations.