Part 1 Chat GPT FAR Questions Flashcards by Todd Schak

Which of the following is not considered commercial off-the-shelf (COTS) items?
A) An item custom-made to the Government’s specifications
B) A product sold in substantial quantities in the commercial marketplace
C) A product that requires no unique modifications
D) A product generally available to the public

Answer: A) An item custom-made to the Government’s specifications
Reference: FAR 2.101

How well did you know this?

Not at all

Perfectly

What action should be taken if a contractor fails to comply with the Buy American statute?
A) The contractor should be removed from all future contracts
B) The Contracting Officer may terminate the contract for default
C) The contractor should be fined
D) The contract will automatically convert to a foreign procurement

Answer: B) The Contracting Officer may terminate the contract for default
Reference: FAR 25.102

How well did you know this?

Not at all

Perfectly

What is the minimum wage rate requirement for contracts under the Davis-Bacon Act?
A) Federal minimum wage
B) State minimum wage
C) Prevailing wage rates as determined by the Secretary of Labor
D) Union wage rates

Answer: C) Prevailing wage rates as determined by the Secretary of Labor
Reference: FAR 22.403-1

How well did you know this?

Not at all

Perfectly

What is the simplified acquisition threshold for most contracts?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000

nswer: B) $250,000
Reference: FAR 2.101

How well did you know this?

Not at all

Perfectly

Under FAR 2.101, the term “acquisition” refers to:
A) The act of soliciting bids.
B) The purchasing, contracting, and procurement process for goods and services.
C) The process of issuing task orders.
D) The legal transfer of property to the Government.

B) The purchasing, contracting, and procurement process for goods and services.

How well did you know this?

Not at all

Perfectly

FAR 2.101 defines “nondevelopmental item” as:
A) An item developed exclusively for government use.
B) An item that is already available in the commercial marketplace.
C) An item that requires additional research and development before procurement.
D) An item that has been used previously by the government.

B) An item that is already available in the commercial marketplace.

How well did you know this?

Not at all

Perfectly

What does the term “contracting officer” refer to, as defined in FAR 2.101?
A) Any government employee involved in procurement.
B) An individual with the authority to enter into, administer, and terminate contracts.
C) A legal advisor for contract disputes.
D) A project manager responsible for contract oversight.

B) An individual with the authority to enter into, administer, and terminate contracts.

How well did you know this?

Not at all

Perfectly

What is a “delivery order” under FAR 2.101?
A) A purchase agreement between the Government and a contractor for a specific period.
B) An order for supplies or services placed against an established contract.
C) A modification issued to expedite delivery.
D) A contract that allows for open-ended delivery dates.

B) An order for supplies or services placed against an established contract.

How well did you know this?

Not at all

Perfectly

According to FAR 2.101, what is a “task order”?
A) A modification to extend the contract period.
B) An order for services placed against an indefinite-delivery contract.
C) A preliminary agreement before a formal contract.
D) An informal arrangement between a contractor and subcontractor.

B) An order for services placed against an indefinite-delivery contract.

How well did you know this?

Not at all

Perfectly

What is the primary purpose of the System for Award Management (SAM) according to FAR 4.1102?
A) To provide a marketplace for government contracts.
B) To allow contractors to register and report on federal contracts.
C) To assist contractors in preparing contract bids.
D) To issue contract modifications.

B) To allow contractors to register and report on federal contracts.

How well did you know this?

Not at all

Perfectly

According to FAR 4.102, what is required to bind the Government to a contract?
A) A signed invoice.
B) Oral communication from an authorized official.
C) Signature of a duly authorized contracting officer.
D) A purchase order.

C) Signature of a duly authorized contracting officer.

How well did you know this?

Not at all

Perfectly

Which of the following is NOT a purpose of FAR 4.000 as it relates to administrative and information matters?
A) Determining the proper identification of contracts.
B) Managing records retention requirements.
C) Conducting evaluations of contractor performance.
D) Establishing source selection procedures.

D) Establishing source selection procedures.

How well did you know this?

Not at all

Perfectly

FAR 4.804-1 states that the administrative closeout of a contract should begin when:
A) The final payment has been made.
B) The contract is terminated for default.
C) All contract deliverables have been received.
D) The contract is awarded.

C) All contract deliverables have been received.

How well did you know this?

Not at all

Perfectly

Under FAR 4.1201, when must contractors complete and submit representations and certifications through SAM?
A) Before submitting a proposal.
B) After contract award.
C) During the post-award conference.
D) Before the contract modification is issued.

A) Before submitting a proposal.

How well did you know this?

Not at all

Perfectly

What is the purpose of the Contract Action Report (CAR) under FAR 4.604?
A) To document a contractor’s performance.
B) To provide a summary of all actions associated with a particular contract.
C) To report the contract action in the Federal Procurement Data System (FPDS).
D) To track modifications made to the original contract.

C) To report the contract action in the Federal Procurement Data System (FPDS).

How well did you know this?

Not at all

Perfectly

Which part of FAR 4 covers the safeguarding of classified information?
A) FAR 4.102
B) FAR 4.401
C) FAR 4.804
D) FAR 4.1202

B) FAR 4.401

How well did you know this?

Not at all

Perfectly

According to FAR 4.1102, what is the threshold for contractors to be registered in SAM prior to contract award?
A) $25,000
B) $100,000
C) $250,000
D) $500,000

C) $250,000

How well did you know this?

Not at all

Perfectly

Which form is used to document a contract’s completion under FAR 4.804-5?
A) SF 1449
B) DD Form 250
C) SF 1034
D) DD Form 1597

D) DD Form 1597

How well did you know this?

Not at all

Perfectly

Under FAR 4.1801, what does the Unique Entity Identifier (UEI) replace?
A) Data Universal Numbering System (DUNS).
B) Commercial and Government Entity (CAGE) code.
C) Contractor Performance Assessment Reporting System (CPARS) number.
D) Contractor invoice number.

A) Data Universal Numbering System (DUNS).

How well did you know this?

Not at all

Perfectly

What must contracting officers ensure before awarding contracts according to FAR 4.1103?
A) Contractors are registered in SAM.
B) Contractors have submitted certified cost or pricing data.
C) Contractors have completed past performance evaluations.
D) Contractors have been pre-approved by the agency head

A) Contractors are registered in SAM

How well did you know this?

Not at all

Perfectly

Under FAR 4.1901, what is the objective of the Prohibition on Contracting with Inverted Domestic Corporations?
A) To prevent foreign companies from acquiring U.S. contracts.
B) To ensure that companies incorporated outside the U.S. are not awarded contracts.
C) To avoid contracts with U.S. companies that relocate abroad for tax purposes.
D) To increase competition among domestic contractors.

C) To avoid contracts with U.S. companies that relocate abroad for tax purposes.

How well did you know this?

Not at all

Perfectly

What does FAR 4.804-1 recommend for the contract closeout process in terms of time?
A) It should be completed within 6 months after physical completion of the contract.
B) It must begin immediately after final payment is made.
C) It should be delayed until all audits are complete.
D) It must be completed within 12 months.

A) It should be completed within 6 months after physical completion of the contract.

How well did you know this?

Not at all

Perfectly

Under FAR 4.2101, the Basic Safeguarding of Covered Contractor Information Systems clause applies to:
A) Contracts over $1,000,000.
B) Contracts involving classified information.
C) Contracts that require contractors to safeguard unclassified systems.
D) Commercial item contracts only.

C) Contracts that require contractors to safeguard unclassified systems.

How well did you know this?

Not at all

Perfectly

What is the primary role of FPDS (Federal Procurement Data System) as described in FAR 4.6?
A) To store contract documents for public access.
B) To collect, develop, and disseminate procurement data.
C) To assist in evaluating contractor past performance.
D) To facilitate contract payments.

B) To collect, develop, and disseminate procurement data.

How well did you know this?

Not at all

Perfectly

7. FAR 4.1303 prohibits agencies from awarding a contract to any entity unless the entity has a valid: A) Commercial and Government Entity (CAGE) code. B) Small Business Administration certification. C) Past performance rating. D) Unique Entity Identifier (UEI).

D) Unique Entity Identifier (UEI).

18. Under FAR 4.902, contractors are required to submit which of the following? A) Certified payroll records. B) Written progress reports. C) Individual subcontracting reports. D) Taxpayer Identification Number (TIN).

D) Taxpayer Identification Number (TIN).

19. FAR 4.403(c) requires the use of which form for the protection of classified information? A) SF 312 B) SF 33 C) SF 1449 D) DD 250

A) SF 312

20. FAR 4.804 discusses contract closeout procedures. When is a contract considered physically complete? A) When all deliverables have been accepted. B) When the final payment has been made. C) When the contract is officially terminated. D) When the contractor submits a final report.

A) When all deliverables have been accepted.

21. According to FAR 4.703(b), if a contract involves environmental hazards, how long must records be retained? A) 3 years after final payment. B) 5 years after contract completion. C) 10 years after contract completion. D) Until the issue is resolved.

D) Until the issue is resolved.

22. Under FAR 4.1102, when must a contractor be registered in SAM? A) At the time of contract award. B) Prior to submitting an offer. C) Within 30 days of award. D) After contract closeout.

B) Prior to submitting an offer.

23. Which of the following is exempt from the requirements of FAR 4.1102 regarding SAM registration? A) Contracts for commercial items. B) Micro-purchases using the government purchase card. C) Service contracts above the simplified acquisition threshold. D) Research and development contracts.

B) Micro-purchases using the government purchase card.

5. Under FAR 4.804-5, what is the purpose of a contract completion statement?) To verify that all contract requirements have been fulfilled. B) To notify the contractor that payment has been made. C) To request a final audit from the Government. D) To modify the contract for closeout purposes.

A) To verify that all contract requirements have been fulfilled.

26. FAR 4.902(a) mandates the collection of which information from contractors? A) Corporate tax returns. B) Sales receipts. C) Taxpayer Identification Number (TIN). D) Commercial invoice numbers.

C) Taxpayer Identification Number (TIN).

27. What does FAR 4.2104 require to be included in solicitations when the contract involves covered information systems? A) Basic Safeguarding of Covered Contractor Information Systems clause. B) Data management plan. C) Terms of non-disclosure. D) Software security policy.

A) Basic Safeguarding of Covered Contractor Information Systems clause.

28. When can a contracting officer use an agency-specific identifier instead of a Procurement Instrument Identifier (PIID) under FAR 4.1601? A) For simplified acquisition purchases. B) For classified contracts. C) For contracts that do not involve delivery. D) For contracts under $10,000.

B) For classified contracts.

29. What does FAR 4.605 require to be reported to FPDS? A) Contractor past performance data. B) All contract actions over the micro-purchase threshold. C) Classified contracts. D) Only contracts awarded to small businesses.

B) All contract actions over the micro-purchase threshold.

30. FAR 4.604 requires contracting officers to submit a Contract Action Report (CAR) within how many days of contract award? A) 3 days B) 10 days C) 30 days D) 90 days

B) 10 days

31. What system is used to track contracts involving classified information according to FAR 4.402? A) Contractor Performance Assessment Reporting System (CPARS) B) National Industrial Security Program (NISP) C) Federal Procurement Data System (FPDS) D) System for Award Management (SAM)

B) National Industrial Security Program (NISP).

33. What identifier is assigned to each contract by the Federal Government under FAR 4.1603? A) Data Universal Numbering System (DUNS) B) Commercial and Government Entity (CAGE) code C) Procurement Instrument Identifier (PIID) D) Unique Entity Identifier (UEI)

C) Procurement Instrument Identifier (PIID).

5. Under FAR 4.603, what is the purpose of the Federal Procurement Data System (FPDS)? A) To record and report contract actions. B) To ensure contractor compliance with performance measures. C) To track payment records for all contracts. D) To monitor classified information related to government contracts.

A) To record and report contract actions.

36. Under FAR 4.1201, how often must contractors update their representations and certifications in SAM? A) Every 6 months. B) Every year. C) Every 5 years. D) Every time they submit a proposal.

B) Every year.

37. FAR 4.703 addresses the retention of records. What is the primary consideration for determining the retention period for a specific contract? A) The size of the contract award. B) The type of contract and associated risks. C) The contract's performance period. D) Whether the contract is for commercial or non-commercial items.

B) The type of contract and associated risks.

38. What document does FAR 4.804-5 require for contracts under simplified acquisition procedures during closeout? A) A closeout modification. B) A final invoice. C) A contract completion statement. D) A final audit report

C) A contract completion statement.

40. FAR 4.1601 specifies that a Procurement Instrument Identifier (PIID) must be used to: A) Track all procurement actions. B) Replace the need for contractor DUNS numbers. C) Identify performance issues. D) Provide a legal basis for contract termination.

A) Track all procurement actions

41. Which form must be used for a release of claims under FAR 4.804-5? A) SF 30 B) SF 1449 C) SF 1034 D) DD Form 1594

D) DD Form 1594

42. FAR 4.201 requires which of the following to be documented in the contract file? A) The contractor’s proposal. B) The final payment amount. C) A contract performance review. D) The contracting officer’s determination and findings.

D) The contracting officer’s determination and findings.

43. FAR 4.603 requires that agencies report contract actions to FPDS within how many days of award? A) 10 days B) 30 days C) 45 days D) 60 days

A) 10 days

46. What does FAR 4.1202 require regarding representations and certifications submitted in SAM? A) They must be submitted with each offer. B) They must be updated before the contract is closed. C) They are used to establish contractor eligibility. D) They are used for compliance with environmental regulations.

C) They are used to establish contractor eligibility.

49. What must be included in a contractor’s annual update of SAM registration as required by FAR 4.1201? A) Executive compensation report. B) List of previous contract awards. C) Contract performance data. D) Past performance reviews.

A) Executive compensation report.

1. What is the primary purpose of FAR Part 15? A) To establish rules for simplified acquisition procedures. B) To govern sealed bidding procedures. C) To establish policies for contracting by negotiation. D) To regulate micro-purchases.

C) To establish policies for contracting by negotiation.

2. Under FAR 15.201, when are exchanges with industry before receipt of proposals encouraged? A) Only after receipt of proposals. B) Only if no other procurement options are available. C) When it helps clarify requirements and promote competition. D) Never, as it compromises fairness.

C) When it helps clarify requirements and promote competition

4. According to FAR 15.404-1, which of the following methods is NOT used for price analysis? A) Comparison of proposed prices received in response to the solicitation. B) Comparison with independent government cost estimates. C) Evaluation of the contractor’s direct labor hours. D) Comparison of proposed prices with historical prices paid for similar items.

C) Evaluation of the contractor’s direct labor hours.

5. What does FAR 15.306(e) prohibit during discussions with offerors? A) Offering clarifications on ambiguities in the solicitation. B) Favoring one offeror over another. C) Discussing deficiencies in the offeror’s proposal. D) Negotiating on price and technical terms.

B) Favoring one offeror over another.

6. Under FAR 15.404-3, which of the following is the primary purpose of a cost realism analysis? A) To determine if the offeror’s costs are unreasonably high. B) To assess if the costs reflect the offeror’s understanding of the work. C) To ensure the lowest possible cost. D) To compare prices between offerors.

B) To assess if the costs reflect the offeror’s understanding of the work

8. FAR 15.305 emphasizes the importance of evaluating which three factors during source selection? A) Cost, past performance, and quality control. B) Technical capability, cost or price, and past performance. C) Price, small business participation, and technical requirements. D) Contract administration, cost, and schedule.

B) Technical capability, cost or price, and past performance.

10. What is the purpose of the weighted guidelines method discussed in FAR 15.404-4? A) To determine the best offeror based on technical capabilities. B) To analyze price competitiveness between offerors. C) To evaluate past performance. D) To establish profit or fee objectives for negotiations.

D) To establish profit or fee objectives for negotiations.

1. Which of the following is NOT a condition under which certified cost or pricing data is required according to FAR 15.403-4? A) When awarding a contract over the Truthful Cost or Pricing Data threshold. B) When the price is based on adequate price competition. C) When modifying a contract to increase the price by more than the threshold. D) When the price is based on cost analysis.

B) When the price is based on adequate price competition.

12. What action must the Government take under FAR 15.306(d) during discussions with offerors? A) Accept all proposals without negotiation. B) Point out significant weaknesses or deficiencies in the offeror’s proposal. C) Only discuss price-related matters. D) Disclose other offerors’ prices.

B) Point out significant weaknesses or deficiencies in the offeror’s proposal.

4. Under FAR 15.506, after award, the contracting officer must provide unsuccessful offerors with what? A) A detailed evaluation of their technical proposal. B) A copy of the winning proposal. C) A post-award debriefing. D) A letter of intent for future contracts

C) A post-award debriefing

17. What is the purpose of FAR 15.305's evaluation of past performance? A) To verify an offeror's compliance with small business regulations. B) To assess the likelihood of the offeror successfully performing the contract. C) To determine the most cost-effective proposal. D) To establish whether the offeror has adequate facilities.

B) To assess the likelihood of the offeror successfully performing the contract.

19. What is the "competitive range" according to FAR 15.306(c)? A) The number of proposals considered for award. B) The proposals with the lowest prices. C) Proposals that have a reasonable chance of being selected for award. D) Proposals that meet the Government’s technical standards.

C) Proposals that have a reasonable chance of being selected for award.

20. According to FAR 15.404-4, profit should be determined based on: A) The offeror’s direct costs. B) The complexity of the work and the risk to the contractor. C) The offeror’s past performance record. D) The overall cost of the project.

B) The complexity of the work and the risk to the contractor

21. Under FAR 15.305, the best value continuum ranges from: A) Price to technical considerations. B) Lowest price technically acceptable (LPTA) to tradeoffs. C) Cost-plus-fixed-fee to fixed-price contracts. D) Sealed bidding to negotiated procurement.

B) Lowest price technically acceptable (LPTA) to tradeoffs

23. When are discussions mandatory in negotiated procurements under FAR Part 15? A) When all proposals exceed the estimated budget. B) When only one offer is received. C) When the contracting officer establishes a competitive range. D) When the procurement is for commercial items.

C) When the contracting officer establishes a competitive range

24. What does FAR 15.406-1 require the contracting officer to prepare after negotiations are completed? A) A price negotiation memorandum (PNM). B) A contract modification. C) A cost-benefit analysis. D) A contract performance evaluation.

A) A price negotiation memorandum (PNM)

25. FAR 15.403-1 outlines when certified cost or pricing data is NOT required. Which of the following is an exception? A) Contracts awarded through competitive bidding. B) Contracts awarded under sealed bids. C) Contracts based on adequate price competition. D) Contracts exceeding the Truth in Negotiations Act (TINA) threshold.

C) Contracts based on adequate price competition.

8. What is the threshold for requiring certified cost or pricing data according to FAR 15.403-4? A) $500,000 B) $750,000 C) $2 million D) $10 million

C) $2 million.

29. Under FAR 15.404-2, who is responsible for providing a field pricing report? A) The contracting officer. B) The contractor’s pricing team. C) The Defense Contract Audit Agency (DCAA) or another authorized audit organization. D) The offeror’s subcontractors.

C) The Defense Contract Audit Agency (DCAA) or another authorized audit organization.

31. Which of the following is true regarding pre-award debriefings under FAR 15.505? A) They must always be given before an award is made. B) They are optional and at the discretion of the offeror. C) They can be requested by any offeror excluded from the competitive range. D) They are only provided after contract award.

C) They can be requested by any offeror excluded from the competitive range.

33. FAR 15.306 allows for which type of communications with offerors after receipt of proposals but before award? A) Sealed bidding. B) Oral presentations only. C) Discussions and clarifications. D) Post-award audits.

C) Discussions and clarifications

34. What is the purpose of FAR 15.503’s notice of award? A) To provide unsuccessful offerors with feedback on their proposal. B) To notify the contractor that contract performance can begin. C) To establish the terms and conditions of the contract. D) To announce the selected offeror to all participants in the competition.

B) To notify the contractor that contract performance can begin.

35. According to FAR 15.304(c)(3), when can cost or price be the least important factor in an evaluation? A) Never; cost or price is always the most important factor. B) When past performance and technical capability are considered more critical to the Government’s needs. C) Only in cost-reimbursement contracts. D) When the Government is purchasing commercial items.

B) When past performance and technical capability are considered more critical to the Government’s needs.

36. What does FAR 15.308 require the Source Selection Authority (SSA) to provide? A) A contract performance review. B) A performance-based work statement. C) A source selection decision document explaining the rationale for the award. D) A price analysis of the winning proposal

C) A source selection decision document explaining the rationale for the award

37. What is the minimum number of price or cost proposals required under FAR Part 15 to justify adequate price competition? A) One. B) Two. C) Three. D) Five.

B) Two.

38. According to FAR 15.404-1, which of the following is a valid method of determining price reasonableness? A) The offeror’s price is compared to previous offers. B) The offeror’s price is compared to the Independent Government Estimate (IGE). C) The offeror’s price is compared to the lowest proposed price. D) The offeror’s price is compared to industry standards.

B) The offeror’s price is compared to the Independent Government Estimate (IGE)

39. Under FAR 15.506, what is the purpose of a post-award debriefing? A) To help unsuccessful offerors improve future proposals. B) To negotiate new terms for the contract. C) To notify the contractor of the start date. D) To review the contractor’s performance plan.

A) To help unsuccessful offerors improve future proposals.

41. What is the primary difference between FAR 15.101-1 tradeoff process and FAR 15.101-2 lowest price technically acceptable (LPTA)? A) LPTA focuses on tradeoffs between price and technical factors. B) Tradeoff process requires the lowest price to be technically acceptable. C) LPTA selects the lowest price offer that meets minimum technical requirements, while tradeoff considers other factors. D) Tradeoff always selects the highest-priced offer.

C) LPTA selects the lowest price offer that meets minimum technical requirements, while tradeoff considers other factors.

42. Under FAR 15.305(a)(2)(iii), what happens if a contractor does not have relevant past performance? A) It is rated as neutral. B) It is automatically disqualified. C) It must submit additional references. D) It is rated as unsatisfactory.

A) It is rated as neutral.

43. FAR 15.402 requires the Government to do what in regard to price negotiations? A) Pay the lowest possible price. B) Negotiate fair and reasonable prices. C) Ensure the contractor is highly profitable. D) Avoid discussions on price.

B) Negotiate fair and reasonable prices.

44. What must a contracting officer do if certified cost or pricing data is found to be defective after contract award, according to FAR 15.407-1? A) Terminate the contract for default. B) Withhold future payments. C) Adjust the contract price accordingly. D) Report the contractor to legal authorities.

C) Adjust the contract price accordingly

47. What does FAR 15.506(d) specify should be included in a post-award debriefing? A) The names of other offerors. B) The agency’s overall evaluation of the successful offeror. C) A comparison of all offerors’ prices. D) The final price paid by the Government.

B) The agency’s overall evaluation of the successful offeror.

48. What does FAR 15.404-1 outline as an acceptable technique for price analysis? A) Use of a reverse auction. B) Comparison of proposed prices with prices found reasonable on previous purchases. C) Conducting a complete cost analysis. D) Negotiating price after technical evaluations.

B) Comparison of proposed prices with prices found reasonable on previous purchases.

49. What does the term "cost realism" refer to under FAR 15.404-1(d)? A) The actual costs that will be incurred by the contractor. B) The Government’s estimate of a fair price. C) The offeror’s costs reflecting a clear understanding of the requirements. D) The lowest possible costs submitted by an offeror.

C) The offeror’s costs reflecting a clear understanding of the requirements.

50. According to FAR 15.209, what clause must be included in all solicitations and contracts requiring certified cost or pricing data? A) FAR 52.215-10, Price Reduction for Defective Certified Cost or Pricing Data. B) FAR 52.215-8, Order of Precedence. C) FAR 52.215-2, Audit and Records – Negotiation. D) FAR 52.215-20, Requirements for Certified Cost or Pricing Data.

D) FAR 52.215-20, Requirements for Certified Cost or Pricing Data.

1. What is the primary difference between fixed-price and cost-reimbursement contracts under FAR Part 16? A) Fixed-price contracts involve the government reimbursing the contractor for all costs. B) Cost-reimbursement contracts shift most of the risk to the contractor. C) Fixed-price contracts place the risk on the contractor, while cost-reimbursement contracts place most risk on the government. D) Cost-reimbursement contracts do not require performance reports.

C) Fixed-price contracts place the risk on the contractor, while cost-reimbursement contracts place most risk on the government.

2. Which of the following is NOT a fixed-price contract type under FAR Part 16? A) Fixed-price with economic price adjustment B) Cost-plus-fixed-fee C) Fixed-price incentive D) Firm-fixed-price

B) Cost-plus-fixed-fee

3. What is the main characteristic of a firm-fixed-price (FFP) contract under FAR 16.202? A) The contract price is subject to adjustments based on market conditions. B) The contractor is reimbursed for all costs incurred. C) The contract price is not subject to any adjustments based on the contractor’s cost experience. D) The contract requires a detailed cost breakdown for reimbursement.

C) The contract price is not subject to any adjustments based on the contractor’s cost experience.

6. In a cost-plus-award-fee (CPAF) contract, how is the award fee determined? A) It is based on the contractor’s performance as judged by predetermined criteria. B) It is a fixed amount regardless of performance. C) It is adjusted based on the contractor’s costs. D) It is calculated by comparing the contractor’s performance to other contractors.

A) It is based on the contractor’s performance as judged by predetermined criteria.

7. Which of the following is a characteristic of a time-and-materials contract? A) The contractor assumes full responsibility for cost overruns. B) Payment is based on direct labor hours at fixed hourly rates and materials at cost. C) The contract price is subject to a performance incentive. D) It is used for long-term projects with extensive cost estimates.

B) Payment is based on direct labor hours at fixed hourly rates and materials at cost.

9. In which type of contract is the contractor reimbursed for allowable costs and provided an additional fee based on cost control and performance? A) Firm-fixed-price B) Fixed-price incentive C) Cost-plus-award-fee D) Cost-plus-incentive-fee

D) Cost-plus-incentive-fee

10. Under FAR Part 16, when is a cost-reimbursement contract appropriate? A) When the scope of work is well defined and the contractor can control costs. B) When uncertainties in performance do not permit costs to be estimated with sufficient accuracy. C) When the government is trying to transfer most of the risk to the contractor. D) When a firm-fixed-price contract cannot be negotiated.

B) When uncertainties in performance do not permit costs to be estimated with sufficient accuracy.

11. What is a fixed-price with prospective price redetermination contract? A) A contract where prices are adjusted based on actual costs incurred after performance begins. B) A contract with an adjustable price based on economic indices. C) A contract where the final price is determined after contract completion. D) A contract where the price can be redetermined based on market conditions.

A) A contract where prices are adjusted based on actual costs incurred after performance begins.

3. Which contract type offers the highest risk for the government? A) Firm-fixed-price B) Cost-plus-fixed-fee C) Fixed-price incentive D) Time-and-materials

D) Time-and-materials

14. What is the major advantage of a fixed-price incentive contract? A) It limits the contractor’s profit. B) It provides flexibility to adjust price if costs change. C) It encourages cost savings through sharing mechanisms. D) It reduces administrative burden.

C) It encourages cost savings through sharing mechanisms.

5. Under a time-and-materials contract, what is the government’s responsibility? A) To pay a fixed price for all work. B) To reimburse the contractor only for completed work. C) To provide oversight to ensure that labor hours and material costs are reasonable. D) To audit the contractor’s books to determine final cost.

C) To provide oversight to ensure that labor hours and material costs are reasonable.

17. What is the major disadvantage of a cost-plus-award-fee contract? A) It involves subjective judgment in determining the award fee. B) It does not incentivize contractors to control costs. C) It requires constant cost monitoring. D) It limits the contractor’s profit.

A) It involves subjective judgment in determining the award fee.

18. In a fixed-price incentive contract, what is the target cost? A) The maximum price the government will pay. B) The amount at which the contractor will be reimbursed for cost overruns. C) The estimated cost on which the target profit and ceiling price are based. D) The total price after adjustments for incentive payments.

C) The estimated cost on which the target profit and ceiling price are based.

19. What is the ceiling price in a fixed-price incentive contract? A) The minimum amount the contractor can charge the government. B) The maximum amount the government will pay, regardless of actual costs. C) The point at which the contractor begins earning an incentive fee. D) The estimated total contract cost.

B) The maximum amount the government will pay, regardless of actual costs.

20. Under a cost-plus-incentive-fee contract, how is the final fee determined? A) It is fixed at the beginning of the contract. B) It is based on the contractor's total cost of performance. C) It is determined by the government after contract completion. D) It is adjusted based on a formula that takes into account actual cost versus target cost.

D) It is adjusted based on a formula that takes into account actual cost versus target cost

22. What is the primary purpose of using a fixed-ceiling-price contract with retroactive price redetermination? A) To allow for price adjustments based on economic conditions. B) To incentivize contractors for reducing costs. C) To provide flexibility in pricing for short-term research and development contracts. D) To ensure that contractors can recover all allowable costs.

C) To provide flexibility in pricing for short-term research and development contracts.

24. What is the difference between a fixed-price incentive (firm target) and a fixed-price incentive (successive targets) contract? A) The firm target contract sets a single target, while the successive targets contract allows for multiple target adjustments during performance. B) The firm target contract includes a set fee, while the successive targets contract adjusts the fee based on performance. C) The successive targets contract is used only for research and development. D) The firm target contract requires contractor cost-sharing, while the successive targets contract does not.

A) The firm target contract sets a single target, while the successive targets contract allows for multiple target adjustments during performance.

25. In a time-and-materials contract, what is included in the "materials" portion? A) Direct labor costs. B) Overhead costs and profit. C) The actual cost of materials used, including allowable indirect costs and profit. D) A flat fee based on estimated material costs.

C) The actual cost of materials used, including allowable indirect costs and profit

26. Under FAR Part 16, what is a letter contract? A) A contract that provides for payment in advance. B) A type of fixed-price contract. C) A preliminary contract that authorizes the contractor to begin work before terms are finalized. D) A contract requiring formal approval before issuance.

27. What is the main purpose of using indefinite-delivery contracts? A) To limit contract performance to a specific period. B) To provide flexibility in the quantity and timing of deliveries. C) To lock in a fixed price for the entire contract period. D) To allow for contract changes without modifying the original terms.

B) To provide flexibility in the quantity and timing of deliverie

29. What is the purpose of a definite-quantity contract under FAR Part 16? A) To specify a minimum quantity of supplies or services the government will purchase. B) To order a definite quantity of supplies or services for a fixed period, with deliveries scheduled as needed. C) To allow for flexibility in the total quantity of supplies ordered. D) To provide for incremental deliveries based on contractor performance.

B) To order a definite quantity of supplies or services for a fixed period, with deliveries scheduled as needed

31. In an indefinite-quantity contract, what is the government required to do? A) Purchase a specific quantity of supplies or services. B) Issue an order for the minimum quantity specified in the contract. C) Guarantee a minimum amount of profit to the contractor. D) Allow the contractor to set delivery schedules.

B) Issue an order for the minimum quantity specified in the contract.

32. What is the purpose of a basic ordering agreement (BOA) under FAR Part 16? A) To establish fixed prices for the duration of the contract. B) To provide terms and conditions for future contracts. C) To streamline the procurement process by pre-negotiating contract terms. D) To allow for future orders without requiring a binding contrac

C) To streamline the procurement process by pre-negotiating contract terms.

34. What distinguishes a cost-plus-incentive-fee contract from a cost-plus-award-fee contract? A) The incentive fee is fixed in a cost-plus-award-fee contract. B) The award fee is determined by subjective evaluation, while the incentive fee is based on a formula. C) The incentive fee is awarded for superior performance, while the award fee is based on cost control. D) The award fee is fixed at the start of the contract.

B) The award fee is determined by subjective evaluation, while the incentive fee is based on a formula.

35. When should a cost-plus-fixed-fee contract be used? A) When the scope of work is well defined and the contractor can easily estimate costs. B) When uncertainties in performance make it difficult to estimate costs in advance. C) When the government wants to incentivize the contractor to reduce costs. D) When the contractor assumes most of the risk for performance

B) When uncertainties in performance make it difficult to estimate costs in advance

7. What distinguishes a level-of-effort term contract? A) It requires the contractor to deliver a specific quantity of supplies. B) It specifies a minimum number of labor hours without requiring completion of a definite end product. C) It requires the contractor to meet specific performance standards. D) It limits payment to the contractor based on actual materials used.

B) It specifies a minimum number of labor hours without requiring completion of a definite end produc

38. When should a time-and-materials contract be used? A) When the scope of work is clearly defined and costs are predictable. B) When there is uncertainty in the type and amount of labor or materials required. C) When the government wants to incentivize cost savings. D) When the contractor is responsible for providing all materials.

B) When there is uncertainty in the type and amount of labor or materials required.

39. What is a key characteristic of a cost-sharing contract? A) The contractor is reimbursed for all allowable costs. B) Both the government and the contractor share the costs of performance, but the contractor is not reimbursed for all costs. C) The contractor assumes no financial risk. D) The government pays a fixed price regardless of the actual cost.

B) Both the government and the contractor share the costs of performance, but the contractor is not reimbursed for all costs.

42. Which of the following is a characteristic of a fixed-price contract with prospective price redetermination? A) The final contract price is determined at the outset. B) The contract price can be adjusted based on actual costs after performance. C) The contractor is reimbursed for all allowable costs. D) The contractor is required to provide detailed cost reports throughout the performance period.

B) The contract price can be adjusted based on actual costs after performance.

43. When is a cost-plus-award-fee contract most appropriate? A) When the contractor assumes most of the performance risk. B) When the government wants to reward the contractor for superior performance. C) When the contractor's costs are highly predictable. D) When the government cannot define precise performance criteria.

B) When the government wants to reward the contractor for superior performance.

44. In a fixed-price incentive contract, what is the primary motivation for the contractor? A) To minimize performance time. B) To reduce costs in order to share in any cost savings. C) To deliver the minimum quantity of supplies or services. D) To maximize the amount of labor used.

B) To reduce costs in order to share in any cost savings.

47. What is the primary risk to the government in a cost-plus-fixed-fee contract? A) The contractor may not complete the work within the specified time frame. B) The contractor has little incentive to control costs. C) The contractor may not be able to deliver the required materials. D) The contractor assumes most of the financial risk for performance.

B) The contractor has little incentive to control costs.

49. Under a cost-plus-award-fee contract, what determines the amount of the award fee? A) The contractor's ability to complete the work ahead of schedule. B) The contractor's performance as judged against subjective criteria. C) The contractor's ability to control costs. D) The contractor's submission of accurate cost reports.

B) The contractor's performance as judged against subjective criteria.

50. When would a fixed-price incentive contract with successive targets be appropriate? A) When the contractor's costs can be accurately estimated in advance. B) When there is significant uncertainty in the scope of work. C) When the government wants to incentivize cost reductions throughout the performance period. D) When the contractor assumes all performance risk.

C) When the government wants to incentivize cost reductions throughout the performance period.

2. What is a contract modification as defined by FAR Part 43? A) Any agreement to change the delivery schedule. B) Any written change to the terms of a contract. C) Any verbal agreement between the parties. D) Any revision to contract specifications

B) Any written change to the terms of a contract.

. What are the two types of contract modifications under FAR 43.103? A) Unilateral and bilateral B) Cost-plus and firm-fixed C) Time-and-materials and cost-reimbursement D) Fixed-price and incentive

A) Unilateral and bilateral

4. What type of contract modification is signed only by the contracting officer? A) Bilateral modification B) Supplemental agreement C) Unilateral modification D) Cost-reimbursement modification

C) Unilateral modification

5. Which of the following is an example of a unilateral contract modification? A) Change orders B) Mutual agreement for contract changes C) Termination for convenience D) Termination for default

A) Change orders

6. What is a bilateral modification also known as? A) Change order B) Equitable adjustment C) Supplemental agreement D) Forward pricing agreement

C) Supplemental agreement

7. When can a unilateral modification be issued? A) Only with the contractor’s consent B) After mutual agreement has been reached C) Under specific contract clauses, such as the changes clause D) After obtaining approval from the head of the agency

C) Under specific contract clauses, such as the changes clause

8. What does a bilateral modification require? A) Approval from the Office of Management and Budget (OMB) B) The agreement of both the contractor and the contracting officer C) The contractor’s certification of costs D) The signature of the contracting officer only

B) The agreement of both the contractor and the contracting officer

9. What is the primary purpose of the changes clause? A) To allow for contract terminations B) To allow the contractor to adjust prices C) To enable the government to make changes within the general scope of the contract D) To authorize contract financing

C) To enable the government to make changes within the general scope of the contract

10. In a fixed-price contract, what types of changes can be made under the changes clause? A) Changes to contract terms and conditions B) Changes to contract pricing C) Changes to specifications, method of shipment, or place of delivery D) Changes to the period of performance

C) Changes to specifications, method of shipment, or place of delivery

11. Under FAR Part 43, a change order is an example of what type of modification? A) Unilateral modification B) Bilateral modification C) Cost-reimbursement modification D) Administrative modification

A) Unilateral modification

12. What happens when the contractor is entitled to an equitable adjustment following a change order? A) The contractor’s payment schedule is adjusted. B) The contractor’s price and/or delivery schedule may be modified. C) The contractor’s profit is increased. D) The contractor must renegotiate all contract terms.

B) The contractor’s price and/or delivery schedule may be modified.

3. How are most change orders ultimately settled? A) Through unilateral decisions by the contracting officer B) By litigation C) By bilateral agreements between the parties D) By invoking the disputes clause

C) By bilateral agreements between the parties

14. When must a contractor assert a request for equitable adjustment under a change order? A) Within 30 days after the change order is issued B) Within 90 days after contract completion C) Within one year after the contract award D) Before final delivery of goods or services

A) Within 30 days after the change order is issued

15. What type of modification is used to correct administrative errors, such as a typo in the contract? A) Unilateral modification B) Bilateral modification C) Administrative change D) Change order

C) Administrative change

17. What is the purpose of an administrative change? A) To make minor corrections that do not affect the substantive terms of the contract B) To change the performance specifications C) To adjust the contract price D) To modify the contract period

A) To make minor corrections that do not affect the substantive terms of the contract

18. What is the purpose of the Notification of Changes clause in FAR 43.104? A) To ensure the contractor is aware of its right to terminate the contract B) To provide the government notice of any expected changes C) To require the contractor to notify the government of any changes that may affect contract performance D) To allow the contractor to dispute changes unilaterally made by the government

C) To require the contractor to notify the government of any changes that may affect contract performance

19. When can a contracting officer issue a unilateral modification? A) Only for administrative changes B) Only if the contractor is in breach of contract C) For changes authorized by a contract clause D) Whenever they deem it necessary for contract performance

C) For changes authorized by a contract clause

20. When is a bilateral modification required? A) For changes that affect the scope of work or terms of the contract B) For administrative changes C) For change orders authorized by the contract D) For unilateral modifications

A) For changes that affect the scope of work or terms of the contract

22. When may a contracting officer issue a termination for default? A) When the contractor refuses to accept a change order B) When the contractor fails to perform according to the terms of the contract C) When the contractor requests an equitable adjustment D) When the contract price increases

B) When the contractor fails to perform according to the terms of the contract

24. What type of contract modification is used to definitize a letter contract? A) Unilateral modification B) Bilateral modification C) Administrative modification D) Change orde

B) Bilateral modification

26. When is a contractor entitled to an equitable adjustment? A) When the contractor completes work ahead of schedule B) When the government issues a change order that affects the contractor's cost or delivery C) When the government issues a unilateral modification for administrative purposes D) When the contract is terminated for convenience

B) When the government issues a change order that affects the contractor's cost or deliver

28. What clause may be included in contracts to allow for adjustments when changes in wage rates occur? A) Changes clause B) Price adjustment clause C) Wage determination clause D) Equitable adjustment clause

C) Wage determination clause

29. Which of the following is not a reason for a contract modification? A) Changes in government needs B) Contractor's failure to perform C) Contractor’s request for a wage increase D) Changes to delivery schedules

C) Contractor’s request for a wage increase

31. What is required for a contractor to request an equitable adjustment? A) The contractor must submit a certified cost or pricing data. B) The contractor must file a request with the Government Accountability Office (GAO). C) The contractor must assert the request within the time frame specified in the contract. D) The contractor must notify the head of contracting activity (HCA).

C) The contractor must assert the request within the time frame specified in the contract

32. What is the purpose of a modification agreement under FAR Part 43? A) To establish a new contract type B) To adjust the contract terms C) To terminate the contract D) To allow the contractor to dispute the terms

B) To adjust the contract terms

34. Which of the following is not a requirement for issuing a bilateral modification? A) Agreement of both parties B) Completion of a change order C) Mutual assent to the new terms D) Signature of both the contracting officer and contractor

B) Completion of a change order

36. What must be included in a modification? A) The original terms of the contract B) A description of the changes C) The contractor's previous performance record D) The government’s position on the contract

B) A description of the changes

38. Under what conditions may a contracting officer issue a unilateral modification? A) When both parties cannot agree B) When it is permitted by the changes clause C) When the contractor requests an equitable adjustment D) When the contractor fails to perform

B) When it is permitted by the changes clause

39. Which of the following is not required in a unilateral modification? A) Contractor’s signature B) Description of the change C) Contracting officer’s signature D) Reference to the changes clause

A) Contractor’s signature

40. When would a bilateral modification be required instead of a unilateral modification? A) When an administrative change is made B) When the contracting officer wants to issue a change order C) When the modification affects the contract price D) When a change is within the general scope of the contract

C) When the modification affects the contract price

41. What is the contractor's obligation when it receives a change order from the government? A) The contractor must stop work until an equitable adjustment is negotiated. B) The contractor must immediately proceed with the work as directed, pending resolution of any adjustment. C) The contractor can dispute the change before performing. D) The contractor can refuse the change order if it increases costs.

B) The contractor must immediately proceed with the work as directed, pending resolution of any adjustment.

43. What is a common outcome of a supplemental agreement? A) An increase in the scope of work B) Termination for default C) Adjustment of the contract price or delivery schedule D) The contractor’s refusal to complete the contract

C) Adjustment of the contract price or delivery schedule

44. What must be done after a unilateral change order is issued? A) The contractor must stop work and submit a dispute. B) The contracting officer must negotiate an equitable adjustment, if applicable. C) The contractor must resubmit its proposal. D) The head of contracting activity must approve the modification.

B) The contracting officer must negotiate an equitable adjustment, if applicable.

45. Which of the following contract modifications is not issued unilaterally? A) Administrative changes B) Change orders C) Modifications made per the disputes clause D) Supplemental agreements

D) Supplemental agreements

46. What is the contractor's recourse if it disagrees with a change order? A) The contractor may file a claim under the disputes clause. B) The contractor may terminate the contract. C) The contractor may refuse to perform the change. D) The contractor may ask for reconsideration by the GAO.

A) The contractor may file a claim under the disputes clause.

47. What does a change order allow the government to do? A) Terminate the contract without cause B) Unilaterally change the terms within the general scope of the contract C) Make changes to the contract price only D) Amend the contract without the contractor’s knowledge

B) Unilaterally change the terms within the general scope of the contract

48. Which of the following actions is typically considered outside the scope of the original contract? A) Changing delivery schedules B) Adding entirely new work C) Correcting typographical errors D) Modifying payment terms

B) Adding entirely new work

50. What is the most common method for definitizing a letter contract? A) Through unilateral modification B) Through a supplemental agreement C) By termination for convenience D) By issuing a stop-work order

B) Through a supplemental agreement

1. What is the main purpose of FAR Part 52? A) To establish contract financing rules B) To provide clauses and provisions for solicitations and contracts C) To outline government contract types D) To specify procedures for contract terminations

B) To provide clauses and provisions for solicitations and contracts

2. According to FAR 52.101, what is the purpose of the "Prescription" section in FAR clauses? A) It describes how and when the clause should be used. B) It explains the legal authority behind the clause. C) It provides definitions for technical terms. D) It outlines penalties for non-compliance.

A) It describes how and when the clause should be used.

3. How are provisions different from clauses under FAR 52.101? A) Provisions apply after contract award, while clauses apply before award. B) Clauses apply after contract award, while provisions apply before award. C) Clauses are legally binding, but provisions are optional. D) Provisions are only used in fixed-price contracts.

B) Clauses apply after contract award, while provisions apply before award.

7. According to FAR 52.102, what should be done when a clause requires modification to meet the needs of a particular acquisition? A) The clause should not be modified and must be used as written. B) The clause may be modified, but it must retain the original clause number. C) The clause must be rewritten entirely. D) The clause must be approved by the General Counsel before use.

B) The clause may be modified, but it must retain the original clause number.

8. What should be included in the contract when a provision is incorporated by reference, according to FAR 52.102(c)? A) The full text of the provision B) A citation to the FAR clause number only C) A brief description of the provision’s content D) The complete description of its application

B) A citation to the FAR clause number only

9. According to FAR 52.104, what must contracting officers ensure when incorporating provisions or clauses by reference? A) The complete text of the clause must be attached to the contract. B) All provisions or clauses must be explicitly written in the solicitation. C) The full text of referenced provisions or clauses must be available to the contractor. D) The clause must be rewritten in plain language for clarity.

C) The full text of referenced provisions or clauses must be available to the contractor.

10. When are solicitation provisions required to be included in contracts, according to FAR 52.102? A) After contract award B) Before contract award C) When contract disputes arise D) When a fixed-price contract is involved

B) Before contract award

11. How is the Alternate of a clause numbered in FAR Part 52 (e.g., 52.203-6 Alternate I)? A) As a different clause number B) With an “A” at the end of the original clause number C) With the word "Alternate" followed by a Roman numeral D) By adding a decimal to the original clause number

C) With the word "Alternate" followed by a Roman numeral

12. What is the purpose of Alternate clauses in FAR Part 52? A) To provide minor variations to standard clauses based on specific acquisition situations B) To replace the standard clauses when both parties cannot agree C) To allow contractors to add their own terms to government contracts D) To delete certain requirements from the contract

A) To provide minor variations to standard clauses based on specific acquisition situations

15. When a FAR clause has an Alternate I, how should it be used in a contract? A) It should be used instead of the basic clause when prescribed in the FAR. B) It should be used only when the contractor requests it. C) It should be included alongside the basic clause. D) It must never be used in fixed-price contracts.

A) It should be used instead of the basic clause when prescribed in the FAR.

17. What is the basic format for clauses in FAR Part 52, according to FAR 52.101? A) Each clause begins with a title and is followed by the full text and alternates. B) Clauses are organized in paragraph form without titles. C) Clauses are written in shorthand and expanded in appendices. D) Clauses contain definitions and are signed by the contractor.

A) Each clause begins with a title and is followed by the full text and alternates

20. According to FAR 52.102(a), can provisions and clauses be modified? A) Yes, but only with approval from the contractor. B) Yes, when adapting to specific agency needs. C) No, provisions and clauses must be used as written. D) No, only alternates may be used.

B) Yes, when adapting to specific agency needs.

24. What is required for a clause to be legally incorporated by reference in a contract, according to FAR 52.104? A) The full text must be attached to the contract. B) The clause must be cited in the contract, including its title and number. C) The contractor must verbally acknowledge the clause. D) The government must include the clause in the statement of work.

B) The clause must be cited in the contract, including its title and number.

Part 1 Chat GPT FAR Questions Flashcards

Parts 2, 4, 15, 16, 43, 52