Risk & Compliance 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 & Compliance flashcards as text
Under the Buy American Act, what percentage of component cost must be domestic for an end product to qualify as a domestic end product (non-construction)?
Answer: At least 55%
Under FAR 25.101, a manufactured end product qualifies as domestic if the cost of its domestic components exceeds 55% of the total component cost.
Which compliance program is designed to ensure that contractor employees report concerns about potential procurement fraud without fear of retaliation?
Answer: Whistleblower Protection Program under 41 U.S.C. 4712
41 U.S.C. 4712 prohibits retaliation against contractor employees who disclose information about potential fraud, waste, or abuse on federal contracts.
A risk register entry shows a high-probability, high-impact risk with no mitigation strategy assigned. What should the acquisition team do first?
Answer: Develop a risk mitigation or contingency plan
High-probability, high-impact risks require immediate development of mitigation strategies or contingency plans rather than acceptance or avoidance.
Under FAR 3.502, the maximum civil penalty per violation of the Gratuities clause (FAR 52.203-3) is:
Answer: $50,000 or the value of the gratuity (whichever is greater)
FAR 3.502-3 provides that civil penalties for gratuity violations may not exceed $50,000 per violation or the value of the gratuity, whichever is greater.
What is the primary risk control mechanism for ensuring a contractor complies with cybersecurity requirements under DFARS 252.204-7012?
Answer: Contractor self-assessment using NIST SP 800-171 and submission to SPRS
DFARS 252.204-7012 requires contractors to implement NIST SP 800-171 controls and submit self-assessment scores to the Supplier Performance Risk System (SPRS).
When a contracting officer suspects a contractor of defective pricing under the Truth in Negotiations Act (TINA), which action is authorized?
Answer: Request a price reduction equal to the defect plus interest
Under 10 U.S.C. 2306a and 41 U.S.C. 3502, the government may reduce the contract price by the amount of the defect plus simple interest when defective pricing is found.
Which federal regulation establishes the requirement for contractors to maintain adequate internal controls over their estimating systems?
Answer: DFARS 252.215-7002 (Cost Estimating System Requirements)
DFARS 252.215-7002 requires major defense contractors to maintain estimating systems with adequate policies, procedures, and internal controls that produce reliable cost estimates.