Practice Test Geeks(FAC) Federal Acquisition Certification Practice Test
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Socioeconomic Programs & Small Business 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 the FAR, what is the 'Rule of Two' in the context of small business set-asides?

    Answer: A determination that at least two responsible small businesses are expected to submit offers at fair market price

    The 'Rule of Two' requires that a contracting officer set aside an acquisition for small business when there is a reasonable expectation that at least two responsible small businesses will submit offers at fair market prices.

  2. Which socioeconomic certification is specifically for small businesses that are at least 51% owned by economically disadvantaged women?

    Answer: EDWOSB certification

    Economically Disadvantaged Women-Owned Small Business (EDWOSB) certification applies to firms at least 51% owned by women who also meet SBA economic disadvantage criteria, allowing them to compete for EDWOSB set-asides.

  3. What is the primary purpose of the Small Business Subcontracting Plan required under FAR Subpart 19.7?

    Answer: To establish negotiated goals for awarding subcontracts to small and disadvantaged firms

    Subcontracting plans establish percentage goals for awarding subcontracts to various small business categories, ensuring large prime contractors provide opportunities to small businesses in their supply chains.

  4. What action can the SBA take against a business that misrepresents its small business status to receive a federal contract?

    Answer: Initiate debarment proceedings and refer for criminal prosecution

    Misrepresentation of small business status can result in civil penalties, debarment from federal contracting, and referral to the Department of Justice for potential criminal prosecution.

  5. Under the SBA's affiliation rules, when are two businesses considered 'affiliated' for purposes of determining small business size?

    Answer: When one controls or has the power to control the other, or a third party controls both

    SBA affiliation exists when one concern controls or has the power to control another, or when a third party controls or has the power to control both, which can cause combined sizes to exceed small business standards.

  6. Which federal procurement mechanism allows agencies to set aside task or delivery orders under multiple-award contracts specifically for small businesses?

    Answer: Multiple Award Schedule (MAS) set-aside orders

    Under FAR 16.505, contracting officers can set aside task or delivery orders under multiple-award contracts, including MAS contracts, for small businesses without competing the entire contract.

  7. What is the consequence for a large prime contractor that fails to make a good-faith effort to comply with its approved subcontracting plan?

    Answer: Liquidated damages equal to the dollar amount by which the contractor failed to meet its goals

    FAR 52.219-16 provides that a contractor that fails to comply in good faith with its subcontracting plan is liable for liquidated damages in the amount by which it failed to meet each subcontracting goal.