FAC Contracting Principles & Regulations 2 — Questions and Answers
Question 1: Which FAR part establishes the policy that acquisition planning must begin as soon as an agency need is identified?
- FAR Part 5
- FAR Part 7 (Correct answer)
- FAR Part 10
- FAR Part 12
Correct answer: FAR Part 7
FAR Part 7 (Acquisition Planning) requires planning to begin as soon as a need is identified to promote competition and prevent unnecessary sole-source awards.
Question 2: Under the FAR, what is the simplified acquisition threshold (SAT) for most acquisitions as of recent regulations?
- $10,000
- $25,000
- $250,000 (Correct answer)
- $750,000
Correct answer: $250,000
The simplified acquisition threshold (SAT) is $250,000 for most acquisitions, allowing use of simplified acquisition procedures below this dollar value.
Question 3: A contracting officer discovers a vendor submitted a false certification during source selection. Which statute primarily addresses this fraud?
- The Truth in Negotiations Act
- The False Claims Act (Correct answer)
- The Anti-Kickback Act
- The Procurement Integrity Act
Correct answer: The False Claims Act
The False Claims Act imposes civil liability on parties who submit fraudulent claims to the government, including false certifications during contracting.
Question 4: What is the primary purpose of the Procurement Integrity Act (PIA)?
- To require cost or pricing data disclosure
- To prohibit bribery of contracting officials
- To restrict disclosure of contractor bid/proposal information and restrict post-employment activities (Correct answer)
- To establish competition requirements for federal contracts
Correct answer: To restrict disclosure of contractor bid/proposal information and restrict post-employment activities
The PIA prohibits disclosure of contractor bid or proposal information and source selection information, and restricts certain post-government employment activities.
Question 5: Which of the following actions is NOT a proper basis for issuing a sole-source contract under FAR Part 6?
- Only one responsible source exists
- Urgency resulting from unforeseeable circumstances
- A contractor offers the lowest possible price (Correct answer)
- Industrial mobilization requires award to a specific source
Correct answer: A contractor offers the lowest possible price
Price alone is never a valid justification for a sole-source award; competition is required unless one of the statutory exceptions in FAR 6.302 applies.
Question 6: Under TINA (Truth in Negotiations Act), at what dollar threshold must contractors submit certified cost or pricing data?
- $100,000
- $250,000
- $750,000 (Correct answer)
- $2,000,000
Correct answer: $750,000
TINA requires submission of certified cost or pricing data for negotiated contracts, modifications, and subcontracts exceeding $750,000, unless an exception applies.
Question 7: The Competition in Contracting Act (CICA) requires agencies to use which method of acquisition to the maximum extent practicable?
- Sole-source awards
- Sealed bidding
- Full and open competition (Correct answer)
- Indefinite delivery contracts
Correct answer: Full and open competition
CICA mandates full and open competition to the maximum extent practicable, ensuring all responsible sources can compete for federal contracts.
FAC Contracting Principles & Regulations 2
Which FAR part establishes the policy that acquisition planning must begin as soon as an agency need is identified?