FCC Federal Acquisition Regulations & Policies 3 — Questions and Answers
Question 1: A contracting officer determines that a contractor's proposed price is unreasonably high. Under FAR 15.405, what is the CO's next step?
- Document the finding and negotiate to reach a fair and reasonable price (Correct answer)
- Terminate the negotiation and issue a new solicitation
- Accept the price if the contractor refuses to lower it
- Request an audit from DCAA before continuing negotiations
Correct answer: Document the finding and negotiate to reach a fair and reasonable price
FAR 15.405 directs the CO to document the basis for the price-unreasonableness determination and negotiate a fair and reasonable price before awarding the contract.
Question 2: Which type of contract places the most cost risk on the contractor?
- Firm-Fixed-Price (FFP) (Correct answer)
- Cost-Plus-Fixed-Fee (CPFF)
- Cost-Plus-Incentive-Fee (CPIF)
- Time-and-Materials (T&M)
Correct answer: Firm-Fixed-Price (FFP)
A Firm-Fixed-Price contract requires the contractor to perform at the agreed price regardless of actual costs, placing maximum risk on the contractor.
Question 3: Under FAR Part 9, a contractor that has been debarred is excluded from receiving federal contracts for a period not to exceed:
- 3 years (Correct answer)
- 5 years
- 1 year
- 10 years
Correct answer: 3 years
FAR 9.406-4 states that a period of debarment generally should not exceed three years, though longer periods are permitted in certain circumstances.
Question 4: What FAR subpart requires contracting officers to conduct market research before developing requirements or acquiring supplies and services?
- FAR Subpart 10.001 (Correct answer)
- FAR Subpart 12.101
- FAR Subpart 7.102
- FAR Subpart 15.201
Correct answer: FAR Subpart 10.001
FAR Subpart 10.001 establishes the policy that agencies must conduct market research appropriate to the circumstances before developing new requirements or acquiring supplies and services.
Question 5: Which of the following is a correct description of an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract?
- It provides for an indefinite quantity of supplies or services within a stated range of minimum and maximum quantities during a fixed period (Correct answer)
- It requires the Government to purchase all its requirements for specified items from one contractor
- It provides a fixed price for a definite quantity of supplies regardless of when they are ordered
- It allows the contractor to set quantities based on market conditions during contract performance
Correct answer: It provides for an indefinite quantity of supplies or services within a stated range of minimum and maximum quantities during a fixed period
FAR 16.504 defines an IDIQ contract as one that provides for an indefinite quantity within stated limits during a fixed period, with orders placed for individual requirements.
Question 6: Under the FAR, which acquisition planning document identifies how the Government will obtain supplies or services, including competition strategy and contract type selection?
- Acquisition Plan (AP) (Correct answer)
- Statement of Work (SOW)
- Independent Government Cost Estimate (IGCE)
- Performance Work Statement (PWS)
Correct answer: Acquisition Plan (AP)
FAR 7.105 requires acquisition plans to address competition, contract type, sources, cost, and schedule considerations for significant acquisitions.
Question 7: Under FAR 52.232-25, a contractor is entitled to interest on an overdue payment beginning how many days after the invoice is received?
- 30 days (Correct answer)
- 45 days
- 15 days
- 60 days
Correct answer: 30 days
The Prompt Payment Act and FAR 52.232-25 require agencies to pay interest on amounts due after the 30-day payment due date has passed.
FCC Federal Acquisition Regulations & Policies 3
A contracting officer determines that a contractor's proposed price is unreasonably high.
Under FAR 15.405, what is the CO's next step?