FAC Contracting Principles & Regulations

Question 1

What is the primary purpose of the Federal Acquisition Regulation (FAR)?

Accepted Answer

Ensure fairness, transparency, and efficiency

Answer

Limit competition in government contracting

Answer

Reduce oversight on federal contracts

Answer

Encourage sole-source contracts

Question 2

Which type of contract places the most cost risk on the contractor?

Accepted Answer

Fixed-price contract

Answer

Cost-reimbursement contract

Answer

Time-and-materials contract

Answer

Indefinite-delivery contract

Question 3

What is the primary advantage of using competitive bidding in federal contracting?

Accepted Answer

Ensures fair pricing and efficiency

Answer

Reduces competition among contractors

Answer

Eliminates contract oversight

Answer

Allows contractors to set their own prices

Question 4

What is a key requirement under the Small Business Act for federal contracting?

Accepted Answer

Reserve a percentage of contracts for small businesses

Answer

Ensure contracts go only to large corporations

Answer

Reduce small business participation in contracts

Answer

Eliminate competition for small businesses

Question 5

What is the purpose of a Contracting Officer’s warrant?

Accepted Answer

Grants authority to enter into federal contracts

Answer

Limits oversight on contract performance

Answer

Allows unauthorized contract modifications

Answer

Removes the need for contract competition

Question 6

What is the role of the Office of Federal Procurement Policy (OFPP)?

Accepted Answer

Provides guidance for procurement policies

Answer

Eliminates regulatory oversight

Answer

Encourages non-competitive contracting

Answer

Reduces transparency in government spending