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

The 'Rule of Two' requires that a contracting officer set aside an acquisition for small business when there is a reasonable expectation that at least two responsible small businesses will submit offers at fair market prices.

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

Economically Disadvantaged Women-Owned Small Business (EDWOSB) certification applies to firms at least 51% owned by women who also meet SBA economic disadvantage criteria, allowing them to compete for EDWOSB set-asides.

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

Subcontracting plans establish percentage goals for awarding subcontracts to various small business categories, ensuring large prime contractors provide opportunities to small businesses in their supply chains.

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

Misrepresentation of small business status can result in civil penalties, debarment from federal contracting, and referral to the Department of Justice for potential criminal prosecution.

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

SBA affiliation exists when one concern controls or has the power to control another, or when a third party controls or has the power to control both, which can cause combined sizes to exceed small business standards.

(FAC) Federal Acquisition Certification Practice Test

(FAC) Federal Acquisition Certification Practice Test

FAC Socioeconomic Programs & Small Business 3