FAC Risk Assessment & Underwriting 3

Question 1

In federal contracting, 'technical risk' is BEST described as the probability that:

Accepted Answer

The proposed technical approach will fail to meet performance requirements

Answer

Technical risk refers to the likelihood that a contractor's approach or solution will not achieve the required performance or technical specifications.

Question 2

A contracting officer determines that a proposed contract has high cost risk and moderate technical risk. Which contract type is MOST appropriate?

Accepted Answer

Cost-Plus-Incentive-Fee (CPIF)

Answer

CPIF contracts reimburse costs and provide a fee adjustment tied to meeting cost targets, sharing risk between the government and contractor in high-uncertainty environments.

Question 3

Under FAR 9.104-1, a contracting officer must determine that an offeror is 'responsible' before making an award. Which factor is NOT part of the responsibility determination?

Accepted Answer

Lowest evaluated price among all offerors

Answer

Responsibility under FAR 9.104-1 assesses capability and integrity, not whether the offeror submitted the lowest price.

Question 4

Which risk category encompasses the potential for a contractor to use unapproved subcontractors or counterfeit parts in the supply chain?

Accepted Answer

Supply chain risk

Answer

Supply chain risk includes threats from unauthorized subcontractors, counterfeit components, and other vulnerabilities introduced through the procurement supply chain.

Question 5

The government's use of Earned Value Management (EVM) on large contracts PRIMARILY helps manage which type of risk?

Accepted Answer

Schedule and cost performance risk

Answer

EVM integrates scope, schedule, and cost data to provide early warning of schedule slippage and cost overruns, enabling proactive risk management.

(FAC) Federal Acquisition Certification Practice Test

(FAC) Federal Acquisition Certification Practice Test

FAC Risk Assessment & Underwriting 3