Fac-C Certification Exam Notes 6

1. What is the primary difference between a "Responsibility
Determination" and a "Responsiveness Determination"?
A. Responsiveness refers to whether the offer meets the technical
specifications, while responsibility pertains to the offeror’s ability
to perform the contract.
B. Responsibility refers to the offeror's price, while responsiveness
refers to the offeror’s technical approach.
C. Responsiveness refers to the offeror's ability to perform the
contract, while responsibility pertains to price.
D. Responsibility refers to the offeror’s financial stability, while
responsiveness pertains to technical capability.
Answer: A) Responsiveness refers to whether the offer meets the
technical specifications, while responsibility pertains to the
offeror’s ability to perform the contract.
Rationale: Responsiveness is about whether the offer conforms to
the solicitation, while responsibility involves assessing the
offeror’s ability to perform based on factors such as financial
capacity and technical competence.


2. What is the purpose of the "Cost Accounting Standards" (CAS)
in federal contracting?
A. To ensure contractors are paid based on actual costs incurred
during contract performance.

,B. To set out the accounting procedures and standards that
contractors must follow when submitting cost data.
C. To dictate how contractors should report their profits on
federal contracts.
D. To standardize the terms and conditions of federal contracts
for cost-reimbursement arrangements.
Answer: B) To set out the accounting procedures and standards
that contractors must follow when submitting cost data.
Rationale: Cost Accounting Standards (CAS) establish
requirements for how contractors must account for costs and
provide transparency in cost submissions, ensuring consistency
and fairness in pricing for cost-reimbursement contracts.


3. What does the "Anti-Deficiency Act" prohibit in federal
contracting?
A. The government entering into contracts without a valid
appropriation of funds
B. Contractors from increasing the cost of a contract after it is
awarded
C. Government employees from discussing a contract with a
contractor
D. Contractors from subcontracting without prior approval
Answer: A) The government entering into contracts without a
valid appropriation of funds

,Rationale: The Anti-Deficiency Act prohibits federal agencies
from obligating funds that have not been appropriated or
exceeding available funds, ensuring that the government does not
spend beyond its budgeted amounts.


4. Which of the following is the most important factor in
determining a contract's "type" (e.g., fixed-price or cost-
reimbursement)?
A. The contract duration
B. The complexity and uncertainty of the work to be performed
C. The size of the contract
D. The government's budget for the contract
Answer: B) The complexity and uncertainty of the work to be
performed
Rationale: The type of contract is often determined by the level of
risk and uncertainty involved in the work. Fixed-price contracts
are suitable for well-defined work, while cost-reimbursement
contracts are used for work with high uncertainty or complexity.


5. Which of the following is NOT a requirement for a contract to
be awarded under the Federal Acquisition Regulation (FAR)?
A. The contract must be in writing
B. The contract must include specific clauses that protect the
interests of the government

, C. The contract must be signed by the contractor before award
D. The contract must be supported by a valid appropriation of
funds
Answer: C) The contract must be signed by the contractor before
award
Rationale: The contract does not need to be signed by the
contractor before award, as the government contracting officer
can award the contract unilaterally. The contractor will sign after
the award is made.


6. Which of the following is a potential consequence of contractor
non-performance under a federal contract?
A. Immediate termination of the contract without any payment.
B. The government may withhold a portion of the contract
payment.
C. The government must renegotiate the contract terms with the
contractor.
D. The contractor is given a grace period of up to one year to
complete the work.
Answer: B) The government may withhold a portion of the
contract payment.
Rationale: If a contractor fails to perform as specified in the
contract, the government can withhold payment or take other
actions, such as issuing a cure notice or terminating the contract
for default, to ensure compliance.