Government Procurement Certification Government Procurement Legal & Regulatory Compliance 3

Question 1

Under the Service Contract Labor Standards (formerly Service Contract Act), what documentation must contractors maintain?

Accepted Answer

Wage determinations, payroll records, and fringe benefit records for all covered employees

Answer

Contractors must maintain wage determinations incorporated into the contract, along with payroll and fringe benefit records for all covered service employees for audit purposes.

Question 2

A contractor discovers a $500,000 overcharge on a cost-reimbursement contract. Under FAR 52.243-7, the contractor must notify the contracting officer within how many days?

Accepted Answer

60 days

Answer

FAR 52.243-7 (Notification of Changes) requires contractors to notify the contracting officer within 60 days of discovering an increase or decrease in cost.

Question 3

Which principle governs what a contractor may charge to a government cost-reimbursement contract under FAR Part 31?

Accepted Answer

Cost must be allowable, allocable, and reasonable

Answer

FAR Part 31 establishes that costs charged to government contracts must be allowable (permitted by regulation), allocable (properly assigned to the contract), and reasonable (reflecting what a prudent person would pay).

Question 4

Under the Federal Aquisition Regulation, which type of contract places the greatest financial risk on the contractor?

Accepted Answer

Firm-fixed-price (FFP)

Answer

Firm-fixed-price contracts place maximum risk on the contractor because the contractor receives a set price regardless of actual costs incurred.

Question 5

The False Claims Act imposes penalties on contractors who submit false claims to the government. What is the current civil penalty range per false claim?

Accepted Answer

$13,946 to $27,894 (adjusted for inflation)

Answer

False Claims Act civil penalties are adjusted annually for inflation; as of recent years, penalties range from approximately $13,946 to $27,894 per false claim, plus treble damages.

Government Procurement Certification Practice Test

Government Procurement Certification Practice Test

Government Procurement Certification Government Procurement Legal & Regulatory Compliance 3