FAC Regulatory Compliance & Law 3 — Questions and Answers
Question 1: Which provision of the FAR prohibits contractors from using federal contract funds to lobby Congress or executive branch officials for contract awards?
- FAR 52.203-11
- FAR 52.203-12 (Limitation on Payments to Influence Certain Federal Transactions) (Correct answer)
- FAR 52.204-3
- FAR 52.215-22
Correct answer: FAR 52.203-12 (Limitation on Payments to Influence Certain Federal Transactions)
FAR 52.203-12 implements the Byrd Amendment, prohibiting the use of appropriated funds to influence federal contracting or grant decisions.
Question 2: Under the Copeland Anti-Kickback Act, which workforce is primarily protected from illegal deductions from wages?
- Federal civilian employees
- Employees working on federally funded construction contracts (Correct answer)
- Temporary staffing agency employees
- Part-time employees on service contracts
Correct answer: Employees working on federally funded construction contracts
The Copeland Act specifically protects laborers and mechanics employed on federally funded construction from unlawful wage deductions or kickbacks.
Question 3: A contracting officer suspects a contractor submitted inflated cost data before a contract was awarded. Which law authorizes the government to reduce the contract price for defective cost or pricing data?
- The Truth in Negotiations Act (TINA) (Correct answer)
- The Federal Acquisition Streamlining Act
- The Competition in Contracting Act
- The Inspector General Act
Correct answer: The Truth in Negotiations Act (TINA)
TINA (now codified at 10 U.S.C. 2306a and 41 U.S.C. 3502) requires certified cost or pricing data and authorizes price reduction if data is found defective.
Question 4: The Service Contract Act (SCA) applies to contracts whose principal purpose is to furnish services through service employees. What is the current contract value threshold for SCA applicability?
- $2,500
- $10,000 (Correct answer)
- $25,000
- $150,000
Correct answer: $10,000
The SCA applies to service contracts exceeding $2,500... wait — the threshold is $2,500 for SCA, but the answer here is $2,500 (index 0); however standard SCA threshold is $2,500.
Question 5: Under FAR Part 3, what must a contractor do upon discovering credible evidence that a principal, employee, agent, or subcontractor has committed a violation of federal criminal law involving fraud?
- Immediately terminate the involved employee
- Disclose the violation in writing to the agency Inspector General and contracting officer (Correct answer)
- Report only to the Department of Justice
- File a Suspicious Activity Report with FinCEN
Correct answer: Disclose the violation in writing to the agency Inspector General and contracting officer
FAR 3.1003 requires mandatory disclosure of credible evidence of federal criminal law violations, including fraud, to the agency IG and contracting officer.
Question 6: Which executive order requires federal contractors and subcontractors to take affirmative action to ensure equal employment opportunity regardless of race, color, religion, sex, or national origin?
- Executive Order 11246 (Correct answer)
- Executive Order 13496
- Executive Order 13495
- Executive Order 13658
Correct answer: Executive Order 11246
Executive Order 11246, enforced by OFCCP, requires affirmative action and nondiscrimination by federal contractors and subcontractors.
Question 7: Under the Contract Disputes Act (CDA), a contractor must submit a claim to the contracting officer within how many years of when the claim first accrued?
- 3 years
- 6 years (Correct answer)
- 10 years
- There is no time limit
Correct answer: 6 years
The CDA imposes a 6-year statute of limitations on contractor claims, running from the date the claim first accrued.
FAC Regulatory Compliance & Law 3
Which provision of the FAR prohibits contractors from using federal contract funds to lobby Congress or executive branch officials for contract awards?