FAC Socioeconomic Programs & Small Business 1 — Questions and Answers
Question 1: What is the government-wide goal for prime contract awards to small businesses as a percentage of total eligible prime contract dollars?
- 20%
- 23% (Correct answer)
- 25%
- 30%
Correct answer: 23%
The government-wide goal for small business prime contract awards is 23% of eligible prime contract dollars, as established by statute.
Question 2: Which small business program is designed to assist firms owned and controlled by socially and economically disadvantaged individuals?
- HUBZone Program
- 8(a) Business Development Program (Correct answer)
- WOSB Program
- SDVOSB Program
Correct answer: 8(a) Business Development Program
The 8(a) Business Development Program, administered by the SBA, assists small businesses owned and controlled by socially and economically disadvantaged individuals.
Question 3: What does HUBZone stand for in the context of federal small business programs?
- High Utilization Business Zone
- Historically Underutilized Business Zone (Correct answer)
- Highly Urbanized Business Zone
- Historically Underfunded Business Zone
Correct answer: Historically Underutilized Business Zone
HUBZone stands for Historically Underutilized Business Zone, a program that encourages economic development in designated geographic areas.
Question 4: Under the Women-Owned Small Business (WOSB) Federal Contract Program, what percentage of the business must be owned and controlled by women?
- At least 25%
- At least 49%
- At least 51% (Correct answer)
- 100%
Correct answer: At least 51%
To qualify as a WOSB, the business must be at least 51% owned and controlled by one or more women who are U.S. citizens.
Question 5: Which entity is primarily responsible for determining size standards for small business programs in federal procurement?
- Office of Management and Budget (OMB)
- General Services Administration (GSA)
- Small Business Administration (SBA) (Correct answer)
- Department of Commerce
Correct answer: Small Business Administration (SBA)
The SBA establishes and maintains size standards that define whether a business qualifies as 'small' for federal contracting purposes.
Question 6: What is the threshold at or below which contracting officers must set aside acquisitions exclusively for small businesses (absent a waiver)?
- $3,500
- $10,000
- $150,000 (Correct answer)
- $250,000
Correct answer: $150,000
FAR 19.502-2 requires that acquisitions between $3,500 and $150,000 be set aside for small business, and acquisitions above $150,000 must be set aside when there is a reasonable expectation of receiving offers from at least two responsible small businesses.
Question 7: When a contracting officer awards a contract under the 8(a) program on a sole-source basis, what is the maximum dollar threshold for non-manufacturing service contracts?
- $4 million
- $7 million (Correct answer)
- $22 million
- $100 million
Correct answer: $7 million
For 8(a) sole-source awards, the threshold is $4 million for most contracts and $7 million for manufacturing contracts; non-manufacturing services follow the $4 million limit.
FAC Socioeconomic Programs & Small Business 1
What is the government-wide goal for prime contract awards to small businesses as a percentage of total eligible prime contract dollars?