FAC Socioeconomic Programs & Small Business 2 — Questions and Answers
Question 1: Which federal law requires large business prime contractors to submit subcontracting plans when contract value exceeds certain thresholds?
- Davis-Bacon Act
- Small Business Act Section 8(d) (Correct answer)
- Federal Property and Administrative Services Act
- Competition in Contracting Act
Correct answer: Small Business Act Section 8(d)
Section 8(d) of the Small Business Act requires that large prime contractors submit subcontracting plans with goals for small and small disadvantaged businesses when contract value exceeds applicable thresholds.
Question 2: What is the Individual Subcontracting Report (ISR) used for in federal contracting?
- Reporting contractor past performance ratings
- Tracking a prime contractor's progress toward subcontracting goals (Correct answer)
- Certifying a business's small business status
- Documenting competition for task orders
Correct answer: Tracking a prime contractor's progress toward subcontracting goals
The ISR (SF-294) is submitted semi-annually by prime contractors to report actual subcontracting dollars and progress toward their approved subcontracting plan goals.
Question 3: Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) must be at least what percentage owned and controlled by service-disabled veterans?
- 25%
- 49%
- 51% (Correct answer)
- 75%
Correct answer: 51%
An SDVOSB must be at least 51% unconditionally owned and controlled by one or more service-disabled veterans.
Question 4: Under FAR Part 19, what term describes the process by which a contracting officer reserves an acquisition exclusively for small businesses?
- Sole-source award
- Set-aside (Correct answer)
- Indefinite delivery order
- Blanket purchase agreement
Correct answer: Set-aside
A set-aside reserves an entire acquisition or a portion of it exclusively for small business participation, restricting competition accordingly.
Question 5: Which SBA program certifies small businesses located in HUBZones and requires that at least what percentage of employees reside in a HUBZone?
- 25%
- 35% (Correct answer)
- 51%
- 60%
Correct answer: 35%
To maintain HUBZone certification, a business must ensure that at least 35% of its employees reside in a HUBZone.
Question 6: What database must vendors register in to be eligible to receive federal contracts, and also serves as the primary repository for socioeconomic certifications?
- Federal Procurement Data System (FPDS)
- System for Award Management (SAM.gov) (Correct answer)
- Dynamic Small Business Search (DSBS)
- USA Spending Database
Correct answer: System for Award Management (SAM.gov)
SAM.gov (System for Award Management) is the official registration system contractors must use to be eligible for federal awards and where socioeconomic certifications are verified.
Question 7: What is the purpose of the Mentor-Protégé Program under the SBA's 8(a) Business Development Program?
- To provide direct grants to small businesses
- To allow large businesses to form joint ventures with 8(a) firms for contract awards (Correct answer)
- To reduce competition requirements for sole-source awards
- To establish price preferences for disadvantaged firms
Correct answer: To allow large businesses to form joint ventures with 8(a) firms for contract awards
The SBA Mentor-Protégé Program allows 8(a) participants to form joint ventures with approved mentors (typically large businesses) to compete for federal contracts they could not pursue alone.
FAC Socioeconomic Programs & Small Business 2
Which federal law requires large business prime contractors to submit subcontracting plans when contract value exceeds certain thresholds?