FAC Socioeconomic Programs & Small Business 3

Question 1

Under the FAR, what is the 'Rule of Two' in the context of small business set-asides?

Accepted Answer

A determination that at least two responsible small businesses are expected to submit offers at fair market price

Answer

A requirement that at least two contracting officers approve any small business award

Answer

A rule that two separate price analyses are required for small business contracts

Answer

A requirement that two socioeconomic categories must be represented on each contract

Question 2

Which socioeconomic certification is specifically for small businesses that are at least 51% owned by economically disadvantaged women?

Accepted Answer

EDWOSB certification

Answer

8(a) certification

Answer

WOSB certification

Answer

HUBZone certification

Question 3

What is the primary purpose of the Small Business Subcontracting Plan required under FAR Subpart 19.7?

Accepted Answer

To establish negotiated goals for awarding subcontracts to small and disadvantaged firms

Answer

To certify the prime contractor's small business status

Answer

To document the contractor's compliance with Davis-Bacon wage requirements

Answer

To report the contractor's annual revenue to the SBA

Question 4

What action can the SBA take against a business that misrepresents its small business status to receive a federal contract?

Accepted Answer

Initiate debarment proceedings and refer for criminal prosecution

Answer

Issue a formal warning letter only

Answer

Refer the case to the contracting officer for price adjustment

Answer

Reduce the contractor's performance evaluation score

Question 5

Under the SBA's affiliation rules, when are two businesses considered 'affiliated' for purposes of determining small business size?

Accepted Answer

When one controls or has the power to control the other, or a third party controls both

Answer

When they share the same NAICS code

Answer

When they are located in the same geographic area

Answer

When they have a prime-subcontractor relationship on one contract

Question 6

Which federal procurement mechanism allows agencies to set aside task or delivery orders under multiple-award contracts specifically for small businesses?

Accepted Answer

Multiple Award Schedule (MAS) set-aside orders

Answer

Blanket Purchase Agreements (BPAs)

Answer

Simplified Acquisition Procedures

Answer

Government-Wide Acquisition Contracts (GWACs)

Question 7

What is the consequence for a large prime contractor that fails to make a good-faith effort to comply with its approved subcontracting plan?

Accepted Answer

Liquidated damages equal to the dollar amount by which the contractor failed to meet its goals

Answer

Contract termination for default only

Answer

A 10% reduction in the contract price

Answer

Mandatory renegotiation of the contract scope