Final Key Cards Round 2

Question 2

______________ products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product or service.

Environmentally Friendly
Environmentally Conscientious
Environmentally Preferable
Environmentally Advantageous
FAR 2.101

Answer 2

Environmentally Preferable

Question 3

Where can executive agencies obtain standard and optional forms?

GSA Forms Library
Acquisition.gov
From the prescribing agency
Via internet search
FAR 53.107

Answer 3

GSA Forms Library

Question 4

Which of the following is correct about the FAR citation 15.506(a)?

15 is the part, 5 is the subpart, 06 is the section, and a is the paragraph.

1 is the part, 5 is the subpart, 506 is the section, and a is the paragraph.

15 is the part, 5 is the subpart, 06 is the paragraph, and a is the sentence.

15 is the part, 50 is the subpart, 6 is the section, and a is the paragraph.
FAR 1.105-2

Answer 4

15 is the part, 5 is the subpart, 06 is the section, and a is the paragraph.

Question 5

he FAR is prepared, issued, and maintained by:

The Executive Office of the President.

The Office of Management and Budget and the General Services Administration.

The National Contract Management Association.

The Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration.
FAR 1.103

Answer 5

The Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration.

Question 6

Who is responsible for printing, publishing, and distributing the Federal Acquisition Regulation?

The DAR Council and CAA Council, jointly

The FAR Secretariat, as authorized by GSA

A FAR Representative authorized by the Secretary of Defense

The Administrator of General Services
FAR 1.201-2

Answer 6

The FAR Secretariat, as authorized by GSA

Question 7

Revisions to the FAR will be prepared and issued through the coordinated action of:

The Defense Logistics Agency and the General Services Administration.

The General Services Administration and the FAR Secretariat.

The Defense Acquisition Regulations Council and the Civilian Acquisition Council.

The FAR Revisions Board and the FAR Secretariat.
FAR 1.201-1

Answer 7

The Defense Acquisition Regulations Council and the Civilian Acquisition Council.

Question 8

distinct six-position code consisting of a combination of alpha and/or numeric characters assigned to identify specific agency offices, units, activities, or organizations by the General Services Administration for civilian agencies and by the Department of Defense for defense agencies is the:

Activity Address Code (AAC)

Procurement Instrument Identification (PIID)Â

Line Item Number

CAGE Code Number
FAR 2.101

Answer 8

Activity Address Code (AAC)

Question 9

Governmentwide point of entry (GPE) means the single point where Government business opportunities greater than ___________, including synopses of proposed contract actions, solicitations, and associated information, can be accessed electronically by the public.
35000
20000
35000
25000
FAR 2.101

Answer 9

25000

Question 10

In the FAR citation “FAR 25.1102(a)(2),” what is referred to by the number 11?
Subsection 25.11
Subpart 25.11
Paragraph 11
Section 11
FAR 1.105-2

Answer 10

Subpart 25.11

Question 11

Where can you make a recommendation for a new form if you are not affiliated with an executive agency?

Government Accountability Office

General Services Administration

the FAR Secretariat

Recommendations are not permitted
FAR 53.108

Answer 11

the FAR Secretariat

Question 12

hen might contracting offices request exceptions to standard forms?
Overprinting forms
Computer generated forms
Special construction and printing forms
Continuation sheets
FAR 53.106

Answer 12

Overprinting forms

Question 13

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering.

What is the Federal Acquisition Regulation?

Answer 13

The Federal Acquisition Regulation (FAR) is a set of instructions written for federal employees conducting
“acquisitions,” or buying goods and services. This acquisition process is also called contracting, procurement, purchasing, or “buying stuff.”
The FAR explains to the government employees
—mostly government contracting officers-what processes to follow when “buying stuff” on behalf of the federal agency. For example, the FAR prescribes which clauses to insert depending on the substance and purpose of a federal contract.

Question 14

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering.

What are the guiding principles of the FAR?

Answer 14

The guiding principles of the FAR are as follows:

Satisfy the federal client in terms of cost, quality, and delivery.

Maximize the use of commercial products and commercial services.

Select contractors with good past performance or the ability to perform.

Promote competition among contractors.

Conduct business with integrity, fairness, and transparency.

Fulfill government policy objectives.

Question 15

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is the most interesting section in the FAR?

Answer 15

The most interesting section is FAR 1.102-5(e), which states the following:
“If a policy or procedure, or a particular strategy or practice, is in the best interest of the Government and is not specifically addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, Government members of the Team should not assume it is prohibited.
Rather, absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority.
Contracting officers should take the lead in encouraging business process innovations and ensuring that business decisions are sound.”

Question 16

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

To whom does the FAR apply?

Answer 16

The FAR applies to federal employees conducting acquisitions, a function otherwise known ascontracting, procurement, purchasing, or “buying stuff.” The FAR is written primarily for contracting officers, who have the authority to sign, modify, administer, and terminate contracts on behalf of the federal government.

Question 17

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

Where can I find the official text of the FAR?

Answer 17

The official, online source of the FAR is www.acquisition.gov, which is maintained by the General Services Administration. However, I must warn you: I have found several errors over the years in this “official” source. For that reason, although www.acquisition.gov is convenient and easy to use, I do not trust it fully.

Another official source for any regulation, including the FAR, is the electronic Code of Federal Regulations,
available online at www.ecfr.gov. Many other websites reproduce the FAR or discuss the FAR. Just remember that the official website for the FAR is www.acquisition.gov and the official website for all regulations, including the FAR, is www.ecfr.gov.

Question 18

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is the Code of Federal Regulations?

Answer 18

The Code of Federal Regulations (CFR) is the organized set of all federal regulations, including the FAR. The CFR is organized by titles and chapter. The FAR is Chapter 1 of Title 48 of the CFR.

Question 19

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

Is there a pattern I can recognize in every single FAR clause in my government contract?

Answer 19

A simple pattern applies to all FAR clauses, telling you the origin and purpose of each FAR clause. Every FAR clause starts with 52 because all FAR clauses are found in FAR Part 52. After the number 52, every FAR clause has a period or dot, then three numbers, then a dash, then more numbers. Pay attention to the first three numbers after the period.

Question 20

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

Why should I pay attention to the first three numbers after the period in the FAR clause?

Answer 20

Of those three numbers, the first will be the number two. That detail is not important. But the second and third numbers tell you something very important about the FAR clause.

Question 21

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What do the second and third numbers indicate?

Answer 21

If the FAR clause starts with 52.219, that clause derives from FAR Part 19, Small Business Programs.
Ignore the 52 and ignore the number two after the period. You are left with 19, which tells you that FAR clause comes from FAR Part 19, Small Business Programs. Another example is a FAR clause that starts with 52.249. Any FAR clause that starts with 52.249 derives from FAR Part 49, Termination of Contracts.

Question 22

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

How should you interpret imperative sentences within the FAR?

Answer 22

If you read an “imperative sentence” in the FAR, or a
sentence that requires action, the general rule is that the contracting officer is responsible for this action.
Unless another person or party is expressly listed as responsible, the contracting officer is responsible by default.

Question 23

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is a deviation?

Answer 23

A deviation occurs when the government breaks the rules of the FAR in any one of several specific ways, such as the following:

Including a contract clause that is inconsistent with
the FAR

Including a solicitation provision that is inconsistent
with the FAR

Failing to include a clause or provision when the FAR requires it
Using unauthorized, “modified” versions of clauses or provisions

Think of a deviation as a limitation of the power of federal agencies, which are supposed to follow the FAR. If the agency starts “home-brewing” its own FAR clauses, this practice diminishes the authority of the FAR system and creates confusion in the government contracting industry.

Question 24

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is a ratification?

Answer 24

A ratification is the formal process whereby an agency
“fixes” an unauthorized commitment using the approval of a federal employee who has the authority to sign the original contract.

Question 25

FAR PART 1, FEDERAL ACQUISITION REGULATIONS SYSTEM

FAR Part 1 provides you the basics of how the Federal Acquisition Regulation works, including its purpose, applicability, arrangement, and numbering

What is a determination and findings (D&F)?

Answer 25

A determination and findings (D&F) is a formal memo in a special format, signed by the appropriate federal employee, who is often the contracting officer. Some actions or decisions require a D&F to document that the contracting officer thoroughly examined and considered the action or decision. In the D&F, the “determination” (conclusion, decision to act) is supported by the “findings” (facts, data, or evidence).

Question 26

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What is the difference between a clause and provision?

Answer 26

Clauses go in the contract. Provisions go in the solicitation. Therefore, we call them contract clauses and solicitation provisions. There may be some overlap, such as when a contract clause is found in both the solicitation and resulting contract, but that overlap is to give every potential contractor notice that the clause will apply. If you see the contract clause in the solicitation, that indicates any resulting contract will also include the clause.

Question 27

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What is the secret code of all FAR clause numbers?

Answer 27

If the FAR clause starts with 52.219, that clause derives from FAR Part 19, Small Business Programs.
Ignore the 52 and ignore the number two after the period. You are left with 19, which tells you that FAR clause comes from FAR Part 19. Another example is a FAR clause that starts with 52.249. Any FAR clause that starts with 52.249 derives from FAR Part 49, Termination of Contracts.

Question 28

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

Why should I care about the FAR Part that corresponds to the FAR clause?

Answer 28

Each FAR clause has specific directions to the contracting officer about when to insert the clause.
This detail helps you understand the purpose of the
FAR clause and gives you negotiating leverage if you want to remove it before signing the contract.

Question 29

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What is a prescription clause?

Answer 29

Every FAR clause has a prescription clause in the beginning of the text of the clause. The prescription clause tells the contracting officer to insert the clause into contracts under certain circumstances.

For example, insert the clause into any contracts for construction greater than $5 million, or insert the clause into any contracts performed overseas.

If the circumstances of your government contract do not match the prescription clause for a FAR clause currently in your contract, try to get the contracting officer to remove the FAR clause. If you find this discrepancy before signing the contract, ask to remove the clause before signature.

Even if you are performing a contract that you signed years ago, you might be able to persuade the contracting officer to remove an inappropriate clause. Your most powerful method of persuasion is to reference the prescription clause and demonstrate that your contract is not applicable.

Question 30

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What does “ALT” or “alternate” signify in the title of a FAR clause?

Answer 30

Some FAR clauses have alternate versions to use for different circumstances, although the substance or topic of each clause remains the same. For example, there are several alternates for the Changes clause for cost-reimbursement contracts. The alternate versions apply depending on whether the contract is for services, supplies, or construction. Yet all versions or alternates are Changes clauses which apply to the cost-reimbursement contracts.

Question 31

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What does the date after the FAR clause mean?

Answer 31

You may notice the FAR clauses in your contract have a date, usually within parentheses, after the number and title. Just as the rest of the FAR is updated constantly, FAR clauses are also frequently updated.
Therefore, the date after the FAR clause refers to the last update to that FAR clause. The date is referred to as the “version” of the FAR clause to distinguish it from earlier or later revisions of the same FAR clause.

Question 32

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

Can the contracting officer update my FAR clauses when exercising the option?

Answer 32

Yes, but by changing the FAR clauses, the government loses its right to exercise the option unilaterally (without your permission). Your company agreed to perform the option period when it signed the contract, but your company did not agree to the updates to the FAR clause. The contracting officer must separate these modifications to retain the right to unilaterally exercise your option.

While the contracting officer can combine the option exercise with other changes, this combination means your company may be entitled to an “equitable adjustment,” meaning money, schedule extensions, or other contractual relief.

Question 33

FAR PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

FAR Part 52 contains all the standard contract clauses and solicitation provisions.

What are the Limitations on Subcontracting clauses?

Answer 33

The Limitations on Subcontracting clauses strictly control how much and to whom you can subcontract work under your prime contract with the government.
For more information, read Part 19, Small Business Programs.

Question 34

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is the Standard Form (SF) 1402?

Answer 34

SF 1402, Certificate of Appointment, is the form for a contracting officer warrant to sign, administer, modify, and terminate contracts. The SF 1402 is referred to as the contracting officer’s “warrant.” You can request a copy of the warrant of your contracting officer to verify the ability to sign your company’s contracts. Learn more about contracting officer warrants in Introductory Chapter 1.

Question 35

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 1449?

Answer 35

SF 1449, Solicitation/Contract/Order for Commercial Items, is the preferred form for solicitationsor purchase orders for commercial products or commercial services. You may encounter the SE 1449 during simplified acquisition procedures of FAR Part 13, or when the government combines the commercial procedures of FAR Part 12 with other contract competition methods.

Question 36

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 18?

Answer 36

SF 18, Request for Quotations, is the form for requesting price quotations.

Question 37

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 30?

Answer 37

SE 30, Amendment of Solicitation/Modification of Contract, is the form for amending the solicitation or modifying your government contract. You can expect to see several modifications using the SF 30 during your contracting career.

Question 38

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is SF 26?

Answer 38

SE 26, Award/Contract, is the form to sign a new contract with your company. Hopefully, you will

Question 39

FAR PART 53, FORMS

FAR Part 53 contains guidance for standard forms used in government contracting

What is the DD 254 form?

Answer 39

You will become familiar with the DD 254 if you perform contracts with security classification requirements. Department of Defense (DD) Form 254 conveys the security requirements for contractors who require access to classified information. You may secret and top secret

Question 40

Governmentwide point of entry (GPE) means the single point where Government business opportunities greater than ___________, including synopses of proposed contract actions, solicitations, and associated information, can be accessed electronically by the public.
35000
20000
35000
25000
FAR 2.101

Answer 40

25000

Question 41

SF 1402 form

Answer 41

SF 1402, Certificate of Appointment, is the form for a contracting officer warrant to sign, administer, modify, and terminate contracts. The SF 1402 is referred to as the contracting officer’s “warrant.” You can request a copy of the warrant of your contracting officer to verify the ability to sign your company’s contracts. Learn more about contracting officer warrants in Introductory Chapter 1.

Question 42

SF 1449 form

Answer 42

SF 1449, Solicitation/Contract/Order for Commercial Items, is the preferred form for solicitationsor purchase orders for commercial products or commercial services. You may encounter the SE 1449 during simplified acquisition procedures of FAR Part 13, or when the government combines the commercial procedures of FAR Part 12 with other contract competition methods.

Question 43

SF 18 form

Answer 43

SF 18, Request for Quotations, is the form for requesting price quotations.

Question 44

SF 30 form

Answer 44

SE 30, Amendment of Solicitation/Modification of Contract, is the form for amending the solicitation or modifying your government contract. You can expect to see several modifications using the SF 30 during your contracting career.

Question 45

SF 26 form

Answer 45

SE 26, Award/Contract, is the form to sign a new contract with your company. Hopefully, you will

Question 46

DD 254 form

Answer 46

You will become familiar with the DD 254 if you perform contracts with security classification requirements. Department of Defense (DD) Form 254 conveys the security requirements for contractors who require access to classified information. You may secret and top secret

Question 47

The statutory limit for fee for experimental, developmental, or research work performed under a cost-plus-Fixed-fee contract is ____ of the contractor’s estimated cost, excluding fee.
15%
6%
10%
25%
FAR 15.404-4

Answer 47

15%

Question 48

Which of the following is not an exception to certified cost or pricing data requirements?
Emergency acquisition

Adequate price competition

Commercial items

Prices set by law or regulation
FAR 15.403-1

Answer 48

Emergency acquisition

Question 49

An offeror may request a post-award debriefing by submitting a written request for debriefing to the Contracting officer to be received within _____ days after receipt of a notice of contract award.
3
7
5
10
FAR 15.506

Answer 49

3

Question 50

A post-award debriefing should ideally occur within ____ days after receipt of the written request for a debriefing by the offeror.
7
3
5
10
FAR 15.506

Answer 50

5

Question 51

The Contracts Dispute Act of 1978 states contractors shall provide certification as specified in FAR 33.
$100,000
$15,000
$65,000
$150,000
FAR 33.207(a)

Answer 51

100,000

Question 52

Within _____ work day(s) of filing a protest with the GAO, a copy must be provided to the contracting officer.
5
1
3
7
FAR 33.104(a)(1)

Answer 52

1

Question 53

When must contracting officers synopsize contract awards?
When contract awards exceed $25,000
When contract awards exceed $15,000
When contract awards exceed $30,000
When contract awards exceed $20,000
FAR 5.3

Answer 53

When contract awards exceed $25,000

Question 54

When should a Contracting Officer publicize a requirement in the GPE though a synopsis?

The Contracting Officer should publicize 1 week prior to solicitation.

The Contracting Officer should publicize 30 days prior to solicitation.

The Contracting Officer should publicize 1 month prior to solicitation.

The Contracting Officer should publicize 15 days prior to solicitation.
FAR 5.203

Answer 54

The Contracting Officer should publicize 15 days prior to solicitation.

Question 55

Imprest Funds are used for cash purchases below what level?
$1,000
$500
$2,500
$750
FAR 13.305

Answer 55

500

Question 56

The Bonds statute requires performance and payment bonds for any construction contract valued in excess of _________?
$150,000
$650,000
$1,000,000
$2000
FAR 28.102-1(a)

Answer 56

$150,000

Question 57

A contractor may assign monies due or to become due under a government order/contract only when the contract value totals _________ or more.
$25,000
$1,000
$100
$500
FAR 32.802

Answer 57

1,000

Question 58

Service Contracts valued in excess of ___________ must contain mandatory provisions regarding minimum wage and fringe benefits, safe and sanitary working conditions, notification to employees of the minimum allowable compensation, and equivalent Federal employee classifications and wage rates.
$2,000
$1,000
$1,500
$2,500
FAR 22.1002-1

Answer 58

2500

Question 59

All contracts subject to 41 U.S.C. chapter 65, (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding _______shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.
$250,000
$2,500
$10,000
$15,000
FAR 22.6

Answer 59

15,000

Question 60

An Independent Government Estimate of construction costs shall be prepared and furnished to the Contracting officer for each proposed contract and contract modification anticipated to exceed:
$100,000
$1,000,000
$150,000
$500,000
FAR 36.203(a)

Answer 60

150,000

Question 61

Micro purchase threasholds

Answer 61

10k everything

2k construction

2.5k services

Question 62

Simplified acquisition threashold

Answer 62

250k except

contingent operation 800k intl 1.5m

humanity 800k 1.5m intl

Question 63

Forms

Answer 63

SF18 request quote
SF30 amendment
SF44 PO
OF336 contingency-

Question 64

Which of the following is not a reason to allocate a cost to a government contract?

It is necessary to the overall operation of the business.

Bona fide need.

It benefits both the contract and other work, and can be distributed to them in a reasonable manner.

It is incurred specifically for the contract.
FAR 31.201-4

Answer 64

Bona fide need.

Question 65

FAR PART 3, IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

FAR Part 3 covers the ethical rules of government contracting, including conflicts of interest.

What can my company do to avoid or mitigate conflicts of interest?

Answer 65

Create a written Code of Business Ethics and Conduct and tailor your documents to comply with government contracting policy. Designate an “ethics official” for your company, who is responsible for all such issues, including fielding questions from your employees.

Provide your employees thorough and regular training about ethics. Train your employees to recognize when the work they perform may “conflict out” your company (may prevent your company from proposing to win an upcoming government contract because of a conflict of interest). If necessary, set up “firewalls” (physical or abstract separations or preventative measures) between your employees who perform onsite support services versus employees who write proposals and develop new business (win contracts). If you do not have a qualified expert on staff, hire an outside consultant to help you with these processes.

Question 66

FAR PART 3, IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

FAR Part 3 covers the ethical rules of government contracting, including conflicts of interest.

Why is the Procurement Integrity Act important for government contractors?

Answer 66

If your pricing, financial, or other proprietary information were released to your competitors, your company would encounter substantial problems.
Your competitors could undercut your pricing or steal your “secret sauce.” For these reasons, the Procurement Integrity Act restricts the government from releasing your proprietary information. In addition to protecting your proprietary information, the
Procurement Integrity Act also protects government source selection sensitive information.

Question 67

FAR PART 3, IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

FAR Part 3 covers the ethical rules of government contracting, including conflicts of interest.

What is the difference between proprietary information versus source selection sensitive information?

Answer 67

Ask yourself who cares more about protecting the information. You can easily distinguish between proprietary information versus source selection sensitive information. Both are protected from improper disclosure by the Procurement Integrity Act. However, controlling proprietary information protects your company. Controlling source selection sensitive information protects the government’s selection process.

For example, the names of government source selection decisionmakers and the draft version of a proposal evaluation are both source selection sensitive. The names and draft provide intimate details about the government’s selection process.
In contrast, your company’s pricing and financial details are proprietary information. Spreading this information will hurt your company.

Question 68

FAR PART 24, PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

FAR Part 24 provides details about Freedom of Information Act (FOIA) requests

How are FOIA requests relevant to government contractors?

Answer 68

You can use FOIA requests to gather business intelligence on your clients and competitors. If there is no easier way to obtain information about your competitors, FOIA can force the government to divulge information about the current or prior contractor as well as the federal contract itself, within certain limitations.

Question 69

FAR PART 31, CONTRACT COST PRINCIPLES AND PROCEDURES

FAR Part 31 provides a long list of allowable and unallowable costs.

What are the three considerations for determining whether a cost can be reimbursed?

Answer 69

To determine if a cost is reimbursable (under a cost-reimbursement contract), you need to evaluate three factors: allowability, allocability, and reasonableness.
Ask these three questions: Is this cost allowable? Is this cost properly allocated (to the contract)? Is this cost reasonable?

Question 70

FAR PART 31, CONTRACT COST PRINCIPLES AND PROCEDURES

FAR Part 31 provides a long list of allowable and unallowable costs.

What is an allowable cost?

Answer 70

Allowability refers to whether that specific cost is explicitly allowed in your contract or in FAR Part 31.
You can find a long list of allowable and unallowable costs in FAR Part 31. For example, entertainment costs like season tickets for the regional sports team are unallowable. For another example, the cost of holding shareholders’ meetings is allowable.

Question 71

FAR PART 31, CONTRACT COST PRINCIPLES AND PROCEDURES

FAR Part 31 provides a long list of allowable and unallowable costs.

What is a reasonable cost?

Answer 71

Determining whether a cost is reasonable is a check
mostly used against ridiculous prices or unnecessary expenses. Determining reasonableness is rather subjective, of course.