FCC Contract Administration & Compliance 2 — Questions and Answers
Question 1: Under FAR 42.302, which office is primarily responsible for contract administration after award?
- The contracting officer's representative (COR)
- The administrative contracting officer (ACO) (Correct answer)
- The program manager
- The Defense Contract Audit Agency (DCAA)
Correct answer: The administrative contracting officer (ACO)
The administrative contracting officer (ACO) assumes post-award administration responsibilities as delegated under FAR 42.302.
Question 2: A contractor submits an invoice but the COR disputes the percentage of work completed. Under the Prompt Payment Act, what is the maximum number of days the government has to pay a proper invoice?
- 14 days
- 21 days
- 30 days (Correct answer)
- 45 days
Correct answer: 30 days
The Prompt Payment Act generally requires the government to pay proper invoices within 30 days of receipt or acceptance, whichever is later.
Question 3: Which clause requires contractors to maintain records sufficient to reflect all costs claimed under a government contract for a specified period after final payment?
- FAR 52.215-2 (Audit and Records—Negotiation) (Correct answer)
- FAR 52.232-25 (Prompt Payment)
- FAR 52.249-8 (Default)
- FAR 52.203-13 (Contractor Code of Business Ethics)
Correct answer: FAR 52.215-2 (Audit and Records—Negotiation)
FAR 52.215-2 mandates that contractors retain cost records for audit purposes for a defined period, typically three years after final payment.
Question 4: When a contractor discovers a potential overpayment on a cost-reimbursement contract, what is the correct immediate action?
- Wait until the next invoice to offset the amount
- Notify the contracting officer and refund or credit the overpayment (Correct answer)
- Write off the amount as a contract adjustment
- Seek a contract modification to legitimize the payment
Correct answer: Notify the contracting officer and refund or credit the overpayment
Contractors must promptly disclose and return or credit overpayments to avoid False Claims Act exposure.
Question 5: What is the purpose of a contract performance assessment report (CPARS) in federal contracting?
- To document contractor past performance for use in future source selections (Correct answer)
- To authorize contract modifications above the threshold
- To certify contractor compliance with Davis-Bacon wage rates
- To initiate a suspension or debarment proceeding
Correct answer: To document contractor past performance for use in future source selections
CPARS entries document contractor past performance and feed into the government-wide PPIRS database, influencing future award decisions.
Question 6: A subcontractor on a federal construction project is not paying workers the required Davis-Bacon wages. Who bears primary responsibility to the government for this violation?
- The subcontractor alone
- The prime contractor (Correct answer)
- The contracting agency's labor relations officer
- The Department of Labor directly
Correct answer: The prime contractor
The prime contractor is responsible to the government for ensuring that all subcontractors comply with Davis-Bacon wage requirements flowed down in the contract.
Question 7: Under FAR Part 49, if the government terminates a firm-fixed-price contract for convenience, what costs may the contractor generally recover?
- Only profit on work completed before termination
- Allowable costs incurred plus a reasonable profit on work performed (Correct answer)
- The full contract price as if performance were complete
- Only direct labor costs with no overhead or profit
Correct answer: Allowable costs incurred plus a reasonable profit on work performed
A termination for convenience settlement includes allowable costs incurred, a reasonable profit on work performed, and settlement expenses.
FCC Contract Administration & Compliance 2
Under FAR 42.302, which office is primarily responsible for contract administration after award?