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.
Read the first 7 Risk Assessment & Underwriting flashcards as text
Which source selection factor is MOST directly linked to managing past performance risk in federal acquisitions?
Answer: Evaluation of the offeror's relevant and recent past performance record
Past performance evaluation predicts the likelihood of successful contract execution based on how well the offeror performed on similar prior contracts.
Under FAR 42.302, Contract Administration functions include monitoring contractor performance. This activity PRIMARILY mitigates which acquisition risk?
Answer: Performance and compliance risk during execution
Contract administration oversight catches deviations from contract requirements early, reducing the risk of poor performance going undetected until close-out.
An agency awards a contract without completing required market research. The primary risk created by this omission is:
Answer: The government may overpay or select a suboptimal contract strategy
Skipping market research leaves the government without knowledge of pricing norms, available vendors, and suitable contract structures, increasing cost and performance risk.
A cybersecurity risk assessment for a federal IT acquisition should PRIMARILY reference which framework to identify and manage information security risks?
Answer: NIST SP 800-53 Security and Privacy Controls
NIST SP 800-53 provides a comprehensive catalog of security and privacy controls that federal agencies use to manage information system risks.
When a contracting officer uses a worst-case cost scenario in risk analysis, this technique is BEST described as:
Answer: Sensitivity analysis using pessimistic estimates
Sensitivity analysis using pessimistic (worst-case) estimates tests how bad outcomes would affect the program if unfavorable conditions occur.
Which of the following represents a 'risk acceptance' strategy in federal acquisition?
Answer: Deciding to proceed with a contract despite known cost uncertainty without additional mitigation
Risk acceptance means the government consciously decides to proceed without taking additional steps to reduce or transfer a known risk.
Under FAR 15.404-1, cost realism analysis is REQUIRED for which type of contract to assess whether proposed costs reflect a clear understanding of the work?
Answer: Cost-reimbursement competitive acquisitions
FAR 15.404-1(d) requires cost realism analysis for cost-reimbursement contracts to ensure proposed costs are realistic for the work to be performed.