Risk & Compliance Flashcards

A contractor's forward pricing rate agreement (FPRA) is used primarily to:

Answer: Establish predetermined indirect rates for pricing future contract actions

An FPRA establishes predetermined indirect cost rates agreed upon between the government and contractor for pricing future contracts and modifications.

Under the Service Contract Labor Standards (formerly Service Contract Act), what compliance risk does a contracting officer face when changing a contractor mid-contract?

Answer: The successor contractor must honor the predecessor's collective bargaining agreement wages for a transition period

Under 29 CFR Part 9, a successor contractor generally must pay wages not less than those the predecessor paid under any collective bargaining agreement for a transition period.

Which compliance requirement applies when an agency modifies a contract to add new work that was not within the scope of the original competition?

Answer: The new work must be competed as a new acquisition unless a valid exception applies

Out-of-scope work added by modification can constitute an improper sole-source award, so it must be competed or justified under a valid FAR Part 6 authority.

Which Cost Accounting Standard (CAS) addresses the requirement that contractors use the same cost accounting practices for estimating, accumulating, and reporting costs?

Answer: CAS 401 (Consistency in Estimating, Accumulating, and Reporting Costs)

CAS 401 requires contractors to use consistent cost accounting practices when estimating, accumulating, and reporting the costs of contracts.

An agency awards a contract using other than full and open competition citing urgency (FAR 6.302-2). What post-award compliance action is required?

Answer: The agency must publish a justification and approval (J&A) in SAM.gov within 14 days

FAR 6.305 requires that J&As for other-than-full-and-open competition be posted on SAM.gov within 14 days of contract award.

Under FAR Part 45, what is the primary compliance risk when government-furnished property (GFP) is not properly recorded in the contractor's property management system?

Answer: The government may lose accountability for assets, creating liability for loss, damage, or destruction

Failure to track GFP creates accountability gaps that expose the government to financial liability for lost, damaged, or destroyed property under FAR 52.245-1.

When a contractor identifies a potential Anti-Deficiency Act violation by a government official during contract performance, the most appropriate contractor action is to:

Answer: Notify the contracting officer in writing and seek clarification before proceeding

If a contractor suspects an Anti-Deficiency Act issue (e.g., funding gaps or unauthorized commitments), it should notify the CO in writing and seek guidance to avoid unenforceable contract obligations.