Practice Test Geeks(FAC) Federal Acquisition Certification Practice Test
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Risk Assessment & Underwriting 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.

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  1. Under FAR Part 16, which contract type places the MOST financial risk on the government when cost is uncertain?

    Answer: Cost-Plus-Fixed-Fee (CPFF)

    CPFF contracts reimburse all allowable costs plus a fixed fee, so the government bears essentially all cost risk if expenditures exceed estimates.

  2. A contracting officer is assessing risk for a sole-source award. Which factor MOST increases the risk that the award price will be unreasonable?

    Answer: There is no competitive market to benchmark pricing

    Without competition, there is no market pricing signal, making it difficult to establish that the negotiated price is fair and reasonable.

  3. Which risk mitigation tool allows the government to reduce schedule risk by requiring a contractor to identify critical path milestones in advance?

    Answer: Integrated Baseline Review (IBR)

    An IBR assesses whether the contractor's performance measurement baseline is realistic and whether critical path milestones are achievable.

  4. When performing price analysis on a proposed contract action, which technique compares the offered price to prices found in catalog or market data?

    Answer: Comparison with commercial catalog prices

    Comparing proposed prices to established catalog or market prices is a standard price analysis technique under FAR 15.404-1(b).

  5. A performance bond in federal contracting primarily protects the government against which risk?

    Answer: Contractor failure to complete the work as specified

    A performance bond guarantees that the surety will complete the project or pay damages if the contractor fails to fulfill contract requirements.

  6. Under the FAC-C program, risk identification during source selection BEST aligns with which phase of the acquisition process?

    Answer: Pre-award planning

    Risk identification and mitigation strategies should be developed during pre-award planning so they can be incorporated into contract terms and evaluation criteria.

  7. Which document formally records identified risks, their likelihood, potential impact, and planned responses for a federal acquisition?

    Answer: Risk Register

    A Risk Register is the standard tool for capturing, tracking, and managing identified risks throughout an acquisition lifecycle.