FAC Regulatory Compliance & Law 2 — Questions and Answers
Question 1: Which statute establishes the primary legal framework for federal procurement and requires agencies to follow the Federal Acquisition Regulation?
- The Competition in Contracting Act
- The Office of Federal Procurement Policy Act (Correct answer)
- The Federal Property and Administrative Services Act
- The Truth in Negotiations Act
Correct answer: The Office of Federal Procurement Policy Act
The Office of Federal Procurement Policy Act established OFPP and authorized the FAR as the primary regulation governing federal procurement.
Question 2: Under the Anti-Kickback Act of 1986, which of the following actions by a subcontractor employee would constitute a violation?
- Submitting a bid that is higher than competitors
- Providing a gift to a prime contractor employee to influence subcontract award (Correct answer)
- Reporting suspected fraud to the contracting officer
- Requesting a contract modification for additional work
Correct answer: Providing a gift to a prime contractor employee to influence subcontract award
The Anti-Kickback Act prohibits providing or receiving anything of value to improperly obtain or reward favorable treatment in subcontract awards.
Question 3: The Prompt Payment Act requires federal agencies to pay contractors within how many days after receipt of a proper invoice for most commercial items?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
The Prompt Payment Act generally requires payment within 30 days of receipt of a proper invoice or acceptance of goods/services, whichever is later.
Question 4: Which law prohibits federal agencies from entering into contracts with companies that have been debarred or suspended from government contracting?
- The Federal Acquisition Streamlining Act
- FAR Subpart 9.4 implements the requirement under governmentwide SAM exclusions authority (Correct answer)
- The Davis-Bacon Act
- The Service Contract Act
Correct answer: FAR Subpart 9.4 implements the requirement under governmentwide SAM exclusions authority
FAR Subpart 9.4 implements the statutory and regulatory framework for debarment and suspension, and SAM.gov exclusions are legally binding on all agencies.
Question 5: Under the Walsh-Healey Public Contracts Act, wage and safety standards apply to contracts for the manufacture or furnishing of materials exceeding what threshold?
- $2,500 (Correct answer)
- $10,000
- $25,000
- $100,000
Correct answer: $2,500
Walsh-Healey applies to contracts over $2,500 for manufacturing or furnishing materials, supplies, articles, or equipment.
Question 6: The False Claims Act allows private citizens to file qui tam lawsuits on behalf of the government. What percentage of the government's recovery can a successful relator receive?
- 5–10%
- 15–30% (Correct answer)
- 35–50%
- 51–75%
Correct answer: 15–30%
Under the False Claims Act, a qui tam relator may receive between 15% and 30% of the proceeds recovered by the government.
Question 7: Which regulation requires contractors to disclose in writing to the contracting officer whenever they identify a significant overpayment on a government contract?
- FAR 52.203-7 (Anti-Kickback Procedures)
- FAR 52.215-10 (Price Reduction for Defective Certified Cost or Pricing Data)
- FAR 52.203-13 (Contractor Code of Business Ethics and Conduct) (Correct answer)
- FAR 52.242-3 (Penalties for Unallowable Costs)
Correct answer: FAR 52.203-13 (Contractor Code of Business Ethics and Conduct)
FAR 52.203-13 requires contractors to timely disclose credible evidence of overpayments as part of their ethics and compliance program obligations.
FAC Regulatory Compliance & Law 2
Which statute establishes the primary legal framework for federal procurement and requires agencies to follow the Federal Acquisition Regulation?