FAC Risk & Compliance 4

Question 1

Under the Buy American Act, what percentage of component cost must be domestic for an end product to qualify as a domestic end product (non-construction)?

Accepted Answer

At least 55%

Answer

Under FAR 25.101, a manufactured end product qualifies as domestic if the cost of its domestic components exceeds 55% of the total component cost.

Question 2

Which compliance program is designed to ensure that contractor employees report concerns about potential procurement fraud without fear of retaliation?

Accepted Answer

Whistleblower Protection Program under 41 U.S.C. 4712

Answer

41 U.S.C. 4712 prohibits retaliation against contractor employees who disclose information about potential fraud, waste, or abuse on federal contracts.

Question 3

A risk register entry shows a high-probability, high-impact risk with no mitigation strategy assigned. What should the acquisition team do first?

Accepted Answer

Develop a risk mitigation or contingency plan

Answer

High-probability, high-impact risks require immediate development of mitigation strategies or contingency plans rather than acceptance or avoidance.

Question 4

Under FAR 3.502, the maximum civil penalty per violation of the Gratuities clause (FAR 52.203-3) is:

Accepted Answer

$50,000 or the value of the gratuity (whichever is greater)

Answer

FAR 3.502-3 provides that civil penalties for gratuity violations may not exceed $50,000 per violation or the value of the gratuity, whichever is greater.

Question 5

What is the primary risk control mechanism for ensuring a contractor complies with cybersecurity requirements under DFARS 252.204-7012?

Accepted Answer

Contractor self-assessment using NIST SP 800-171 and submission to SPRS

Answer

DFARS 252.204-7012 requires contractors to implement NIST SP 800-171 controls and submit self-assessment scores to the Supplier Performance Risk System (SPRS).

(FAC) Federal Acquisition Certification Practice Test

(FAC) Federal Acquisition Certification Practice Test

FAC Risk & Compliance 4