FAC Risk & Compliance 3 — Questions and Answers
Question 1: Which FAR provision requires offerors to represent that they have implemented a written subcontracting plan for contracts expected to exceed $750,000?
- FAR 52.219-9 (Correct answer)
- FAR 52.203-11
- FAR 52.222-26
- FAR 52.215-22
Correct answer: FAR 52.219-9
FAR 52.219-9 (Small Business Subcontracting Plan) requires large business offerors to submit subcontracting plans when contracts exceed $750,000.
Question 2: When performing a risk assessment for a source selection, a contracting officer should assess which combination of risk factors?
- Cost, schedule, and performance risk (Correct answer)
- Legal, political, and environmental risk
- Competitive, financial, and reputational risk
- Technical, operational, and strategic risk
Correct answer: Cost, schedule, and performance risk
FAR source selection risk assessments focus on cost, schedule, and performance risks associated with a contractor's proposed approach.
Question 3: An agency discovers that a contractor used counterfeit electronic parts in a defense system. Which law primarily addresses this compliance violation?
- The Trade Agreements Act
- DFARS 252.246-7007 (Contractor Counterfeit Electronic Part Detection and Avoidance System) (Correct answer)
- The Service Contract Act
- FAR 52.209-6
Correct answer: DFARS 252.246-7007 (Contractor Counterfeit Electronic Part Detection and Avoidance System)
DFARS 252.246-7007 requires contractors to establish systems to detect and avoid counterfeit electronic parts in defense acquisitions.
Question 4: What is the compliance significance of the Organizational Conflicts of Interest (OCI) rules in FAR Subpart 9.5?
- They require all contractors to divest financial interests in competitors
- They prevent situations where a contractor's objectivity may be impaired or it gains an unfair competitive advantage (Correct answer)
- They mandate background checks for all contractor employees
- They prohibit contractors from hiring former government employees
Correct answer: They prevent situations where a contractor's objectivity may be impaired or it gains an unfair competitive advantage
OCI rules in FAR Subpart 9.5 identify and mitigate situations where contractors may be unable to render impartial assistance or gain unfair competitive advantages.
Question 5: A contractor repeatedly fails to meet delivery schedules. The contracting officer issues a cure notice. How long does the contractor typically have to cure the deficiency before the CO may terminate for default?
- 10 days (Correct answer)
- 30 days
- 60 days
- 90 days
Correct answer: 10 days
FAR 49.607 specifies that a cure notice gives the contractor 10 days to cure a condition endangering performance before termination for default.
Question 6: Under the Procurement Integrity Act (41 U.S.C. 2101-2107), what is the prohibition period for former procurement officials regarding certain contractor employment?
- 6 months
- 1 year (Correct answer)
- 2 years
- 5 years
Correct answer: 1 year
The Procurement Integrity Act imposes a one-year cooling-off period before former procurement officials can accept compensation from certain contractors.
Question 7: Which type of audit is most appropriate to assess whether a contractor's accounting system properly segregates direct and indirect costs?
- Performance audit
- Financial statement audit
- Accounting system audit (pre-award survey) (Correct answer)
- Compliance audit under Single Audit Act
Correct answer: Accounting system audit (pre-award survey)
An accounting system audit (pre-award survey) conducted by DCAA evaluates whether a contractor's system can properly accumulate and report costs under government contracts.
FAC Risk & Compliance 3
Which FAR provision requires offerors to represent that they have implemented a written subcontracting plan for contracts expected to exceed $750,000?