FAC Claims Processing & Investigation 3 — Questions and Answers
Question 1: Under the False Claims Act (FCA), what is the per-claim civil penalty range (as of recent updates)?
- $1,000–$5,000
- $500–$2,500
- Approximately $13,000–$27,000 (Correct answer)
- $50,000–$100,000
Correct answer: Approximately $13,000–$27,000
The FCA civil penalty, adjusted for inflation, is approximately $13,000 to $27,000 per false claim as of recent adjustments.
Question 2: A CO suspects a contractor submitted fraudulent invoices. Which agency is the CO's primary reporting obligation?
- Department of Justice directly
- The contracting agency's Inspector General (Correct answer)
- Defense Contract Audit Agency
- Government Accountability Office
Correct answer: The contracting agency's Inspector General
The CO's primary reporting obligation for suspected fraud is to the agency's Inspector General (IG), who coordinates with DOJ as appropriate.
Question 3: What is a 'qui tam' lawsuit under the False Claims Act?
- A suit filed by the government against a contractor
- A suit filed by a private citizen (relator) on behalf of the government (Correct answer)
- A claim filed by a contractor against a subcontractor
- A cross-claim between two government agencies
Correct answer: A suit filed by a private citizen (relator) on behalf of the government
A qui tam suit allows a private citizen (relator or whistleblower) to file suit on behalf of the government and share in any recovery.
Question 4: Which of the following best describes 'reverse false claims' under the FCA?
- When a contractor denies a government claim for damages
- Knowingly concealing or avoiding an obligation to pay money to the government (Correct answer)
- Submitting a claim with an incorrect DUNS number
- Filing a duplicate invoice for the same work
Correct answer: Knowingly concealing or avoiding an obligation to pay money to the government
Reverse false claims involve knowingly concealing or improperly avoiding an obligation to pay or transmit money or property to the government.
Question 5: The Contractor Business Systems rule requires contractors to have adequate accounting systems. Which agency enforces this requirement primarily for defense contractors?
- GSA Inspector General
- Defense Contract Audit Agency (DCAA) (Correct answer)
- Office of Management and Budget
- Small Business Administration
Correct answer: Defense Contract Audit Agency (DCAA)
DCAA is responsible for auditing and approving contractor accounting systems for defense contractors under the Contractor Business Systems rule.
Question 6: A contractor discovers it has been overpaid by the government. Under the Debt Collection Improvement Act, within how many days must the government send an initial demand letter?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
The government must send an initial demand letter within 30 days of identifying a delinquent debt under the Debt Collection Improvement Act.
Question 7: Which type of government claim does NOT require a CO final decision before the government can collect?
- Claims for liquidated damages
- Claims arising from contract termination settlements
- Overpayment recoupment via offset against current invoices (Correct answer)
- Claims for defective pricing
Correct answer: Overpayment recoupment via offset against current invoices
The government may offset overpayments against amounts currently owed to the contractor without issuing a formal CO final decision first.
FAC Claims Processing & Investigation 3
Under the False Claims Act (FCA), what is the per-claim civil penalty range (as of recent updates)?