Government Procurement Certification Federal Regulations & Compliance 3 — Questions and Answers
Question 1: FAR Subpart 4.7 requires contractors to retain contract-related records for a minimum of how many years after final payment?
- 2 years
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
FAR 4.703 requires contractors to retain records for at least 3 years after final payment on most contracts.
Question 2: Which regulation governs contractor cost accounting practices and disclosure on large negotiated contracts?
- FAR Part 30 / Cost Accounting Standards (CAS) (Correct answer)
- FAR Part 15
- OMB Circular A-123
- DCAA Manual 7640
Correct answer: FAR Part 30 / Cost Accounting Standards (CAS)
FAR Part 30 implements the Cost Accounting Standards (CAS), requiring covered contractors to follow and disclose their accounting practices.
Question 3: Under FAR 52.203-13 (Contractor Code of Business Ethics and Conduct), a contractor must report a 'credible evidence' of a violation within:
- 14 days
- 30 days (Correct answer)
- 60 days
- 90 days
Correct answer: 30 days
FAR 52.203-13(b)(3) requires disclosure of credible evidence of violations within 30 days of the contractor becoming aware.
Question 4: The Procurement Integrity Act prohibits a procurement official from disclosing contractor bid or proposal information. Violations can result in a civil penalty up to:
- $25,000 per violation
- $50,000 per violation
- $100,000 per violation (Correct answer)
- $200,000 per violation
Correct answer: $100,000 per violation
41 U.S.C. 2105 establishes a civil penalty of up to $100,000 per violation of the Procurement Integrity Act.
Question 5: Under FAR Part 19, a 'small business' set-aside is mandatory when the contracting officer determines that award to small business is:
- Possible at any price
- Likely at a fair market price with at least two small businesses expected to bid (Correct answer)
- Guaranteed by agency quota
- Preferred but not required above $1M
Correct answer: Likely at a fair market price with at least two small businesses expected to bid
FAR 19.502-2 mandates set-aside when there is a reasonable expectation of receiving offers from at least two responsible small businesses at fair market price.
Question 6: Which executive agency administers the System for Award Management (SAM.gov) where contractors must be registered?
- SBA
- GSA (Correct answer)
- OMB
- DoD
Correct answer: GSA
The General Services Administration (GSA) administers SAM.gov, the official federal contractor registration database.
Question 7: Under the Service Contract Act (SCA), contractors providing services must pay covered workers at least the:
- Federal minimum wage only
- Prevailing wage and fringe benefits determined by the Department of Labor (Correct answer)
- Union negotiated rate in the contractor's home state
- Rate specified in the contractor's collective bargaining agreement
Correct answer: Prevailing wage and fringe benefits determined by the Department of Labor
The SCA (41 U.S.C. 6701 et seq.) requires payment of prevailing wages and fringe benefits as determined by DOL wage determinations.
Government Procurement Certification Federal Regulations & Compliance 3
FAR Subpart 4.7 requires contractors to retain contract-related records for a minimum of how many years after final payment?