Contract Law- Midterm

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  1. 1. The preferential procurement treatment is available only to a business which is ___________ owned and operated and not ________in its field of operation and must qualify as a small business under the size standard applicable to the procurement. §8:2.
    independently, dominant
  2. 2. Challenges of established size standards or the size status of particular firms, and challenges of the agency’s selected standard industrial classification may be reviewed solely by the ______. §8:2.
  3. 3. In order to avoid using a small business firm for a contract for supplies or services for more than $3,000 but not exceeding $100,000 the Contracting Officer must determine that there is ____  _________ ___ of obtaining offers from two or more responsible small business concerns that are competitive in terms of market price, quality, and delivery. §8:4.
    no reasonable expectation
  4. 4. A Certificate of Competency is a written certification by the SBA that a particular small business has the _______to perform a specific government contract. §8:6.
  5. 5. It is possible that a Contracting Officer could be legally required to award a contract to a small business concern even though the CO believes the firm is ____ _______ to perform the contract. §8.6.
    not qualified
  6. 6. The 8(a) program permits a small disadvantaged business to obtain a contract award from a federal agency as a ________of the SBA. §8.8.
  7. 7. A small disadvantaged business may participate in the 8(a) program for a maximum of ____ years. §8.8.
  8. 8. Contracts for other than personal services must include a requirement that the contractor _________with small business concerns, small disadvantaged businesses, as well as women-owned small business concerns. §8:9.
  9. 9. Contract bundling can be used to keep small disadvantaged businesses from __________  __________ in government contracts as prime contracts. 8:14.
    participating effectively
  10. 10. Another form of ______  _______ refers to an agency’s consolidation of requirements in a way that restricts competition in contravention of the Competition in Contracting Act. §8:14.
    contract bundling
  11. The CDA broadened the ______  __ ______ that are subject to the disputes process.    §21:2.
    types of claims
  12. The CDA
    sets time limits on the issuance of the Contracting Officer’s ________
    on contractor claims.  §21:2.
  13. The CDA provides contractors with a ______
    of forums for challenging an adverse Contracting Officer’s decision.
  14. The CDA
    gave both the contractor and the government the _____  ___  ______ adverse board or COFC decisions.  §21:2.
    right to appeal
  15. A defect in the contractor’s certification of its claim prevents the board or COFC from taking jurisdiction of the claim.     True or False  21:2
  16. The CDA extended the disputes process beyond those arising under the contract to also include disputes ______  _____ the contract.   21:3.
    relating to
  17. The CDA applies to any express or implied
    contract entered into by an _______  ______of the U.S. for specified procurements.   21:4.
    executive agency
  18. Contracting Officers may decide claims involving suspected fraud under the CDA.  True False  21:5.
  19. A party receiving a disappointing decision from an agency board of contract appeals has ____  ______  to file an appeal with the U.S.  Court of Appeals for the Federal
    Circuit.  21:7.
    120 days
  20. The Contracting Officer has two primary roles in the disputes process;  to ______  _______
    and to _____  _______ on contractor and government claims.   21:8.
    settle disagreements, render decisions
  21. The key powers of the boards of contract appeals are to: (1) ______, _______, and ______ contracts in the case of bid mistakes; and (2) _____ ___  ______of cases involving breach of contract
    theories.   21:9.
    modify, reform or rescind

    decide the merits
  22. The Court of Federal Claims and the boards of contract appeals have essentially ________ jurisdiction with regard to disputes
    involving government contracts. 
  23. An aggrieved party from the Court of Appeals for the Federal Circuit is routinely assured of being able to file an appeal with the U.S. Supreme Court.   True False   21:11.
  24. Under Extraordinary Contractual Relief a contractor is able to receive financial
    or other types of relief, even though the government has no _____  _______
    to grant the relief.  21:13.
    legal obligation
  25. Among the types of _____  ______ under Extraordinary Contractual Relief is authorizing contract amendments without consideration.  21:13(2).
    contractual adjustments
  26. The cost principles articulated in FAR Part 31 provide the primary means for
    determining whether a cost is ______ in federal government
    contracting.  §9:2.
  27. The cost principles are especially important in _______ _______ or ____  ______ type contracts.  §9:2.
    cost reimbursement or incentive fee
  28. The cost principles also play an important role in ____  ____ type contracts by setting ____ on pricing adjustments.  §9:2.
    fixed price

  29. FAR Part 31 contains four sets of cost principles, depending on the type of ______  involved.  §9:3.
  30. The greatest number of contracts into which the government enters is with ______
    organizations, so the principles involving those organizations are the
    most extensive. §9:3.
  31. The first listed factor for determining if a cost is ______ is the ________ of the cost.  §9:4.
    allowable, reasonableness
  32. Under the FAR a cost is reasonable if “in its nature and amount, it does not exceed that which would be incurred by a prudent person in the conduct of ______ business.”  §9:5.
  33. A cost that is not related to a particular cost objective may nevertheless be allowable as necessary to the ______  ______ of the
    business.  §9:6.
    overall operation
  34. The 48 “selected costs” must not only meet the general standards for ______ ,
    they must also meet special criteria. 
    One of these costs may be reasonable and _______ but not be permitted if it fails to meet the additional criteria.     §9:7
    allowability, allocable
  35. The spouse of the contractor’s CEO is a licensed real estate agent.  The contractor includes the real estate agent’s fees @ $400/hour for locating a residence for the essential Project Manager who is being recruited and hired specifically to lead the
    contractor’s implementation of the contract.  The “selected cost” of ____  _______ is most relevant to determining the allowability of charging the
    real estate agent’s fees to the contract. 
    Relocation Cost
  36. The Cost Accounting Standards (CAS) require that the contractor use a specific, prescribed method of computing each different type of cost.  True or False 
    §9:54 (a).
  37. The CAS apply to all types of contracts with the federal government, regardless of how the contract was procured.   True or False  §9:54(b).
  38. According to Feldman, the CAS apply to both defense and non-defense ______
    prime and subcontracts over ______.  §9:55.
    negotiated, $650,000
  39. The Disclosure Statement required by the CAS is a written description of the contractor’s cost accounting ______ and ______.   §9:59.
    practices and procedures
  40. Classen’s “typical” license indicates the licensee is granted authorization to  ________  the software.
  41. In formulating the definition of “Licensee,” the licensee should consider its potential future needs and make sure that the definition is _____ enough to encompass the licensee’s future needs.   
                    P. 22, first full paragraph
  42. If the Licensor is a subsidiary and lacks the significant assets of its parent, the licensee may seek to have the ____ parent guaranty the financial performance of the subsidiary.                         P. 23 (b)
  43. While shrink-wrapped software licenses traditionally have had a ______ term, other software licenses often have a more limited term, i.e. 5 or 10 years.    P. 24, first full
  44. A web-based application is likely to include the right to duplicate and distribute internally the software.

    True or False
  45. A common limitation in a software license is to restrict use of the software to a particular central processing unit, or to a specific number of _____ or ______  ______.                                      p. 27 (d)
    seats or concurrent users
  46. 1. Performance-based payments are the government’s _______ means of contract financing under most negotiated, fixed-price contracts and their use is ______ unless deemed impractical.§10:2
    preferred, required
  47. 3. The FAR provides two separate standard payment clauses, one for fixed-price _____ contracts and another for fixed-price ______ contracts. §10:3.
    supply, construction
  48. 4. The clause for fixed-price supply contracts provides that the government shall pay the contractor “upon the submission of the proper invoices or vouchers” the stipulated prices “for ______  _______ and accepted or ______  ______ and accepted.” §10:3.
    supplies delivered, services rendered
  49. 5. Used by itself the fixed-price payments clause requires that the contractor must finance all of its work and expenses until its first substantial ______ is made and accepted. §10:3.
  50. 6. Partial contract payments are not technically a method of contract financing because they depend on delivery and acceptance of contract items. They can, however, reduce a contractor’s need for financing by providing ______  _______during _______  _________. §10:4.
    interim payments , contract performance
  51. 7. Unless another date is specified in the contact, the government’s due date for making a payment is ____  days after the government ______ a proper invoice for the amount due. §10:7.
    30, receives
  52. 8. Progress payments may be based on either the _____  ______  in performance or on a _______  ___  _____of completion. §10:14.
    costs incurred, percentage or stage
  53. 9. Progress payments are customarily limited to 80% of the “total costs or performing the contract” for ____ businesses and 85% for _____ businesses. §10:16.
    large, small
  54. 10. If a contractor fails to make payments to its subcontractors or suppliers, the Contracting Officer can _____ or _____ progress payments. §10:18.
    suspend, reduce
  55. 11. Advance payments are payments made to the contractor _______ the contractor acquires any materials for or does any work under a contract. §10:19.
  56. The method of contract financing preferred by the government is _______  ______ type of payments. §10:20.
  57. 13. The bases for making performance-based payments may be either specific events (i.e. milestones) or some _______  _______ of performance. §10:21.
    measurable criterion
  58. 14. Government employees are expected to conduct public business in a manner that avoids even the ______ of ethical impropriety. §12:1.
  59. 15. The civil False Claims Act (FCA) permits the government to recover ______  ______ and penalties from someone who submit a false claim to a federal agency. §12:3.
    treble damages
  60. 16. Under the FCA a person acts knowingly if she has actual knowledge of the information or acts in _____  _______ of the truth or falsity of the information. §12:4.
    deliberate ignorance
  61. 17. A claim under the FCA includes any request or demand for ______  ___ ________“made to a contractor, grantee, or other recipient” if the government provides or will reimburse a portion of the money or property requested or demanded. §12:5.
    money or property
  62. 18. The government may recover (1) a _____ of between $5,500 and $11,000, (2) an amount equal to three times the amount of _____ the government sustained because of the false claim, plus (3) the _____ to the government of prosecution. § 12:6.
    fine, damages, costs
  63. 19. Qui tam provisions of the FCA allow private individuals to initiate civil false claims lawsuits on behalf of ______ ____ ___ ________and to keep a share of the government’s recovery. § 12:7.
    themselves and the government
  64. 20. A sergeant plans to bring a qui tam FCA suit against her captain. The FCA permits/does not permit such an action. §12:9.
    does NOT permit
  65. 21. A supervisor plans to bring a similar action against her manager in a private contractor in connection with a government contract. Such an action is permitted/not permitted by the FCA. § 12.9.
  66. 22. In a qui tam FCA action, the _____ initiates the process by filing a complaint in the name of the United States under seal. § 12:10.
  67. The relator must be represented by an _____ to bring a qui tam action. § 12:10.
  68. 24. The criminal provisions of the FCA call for ________ for submission of a false claim to the government knowing that the claim is false. § 12:15.
  69. 25. Although specific intent to defraud is not necessary to make out a criminal claim under the FCA, the government must prove that the defendant _____ the claim was ____, _________or ________. § 12:17.
    knew, false, fictitious or fraudulent
  70. 26. Submission of falsified invoices by a subcontractor to a prime contractor with the knowledge that the prime will____  ____ ____ on to the government constitutes a claim “upon or against” the government.” § 12:18.
    pass the cost
  71. 27. Under defense contracts, the maximum fine under the FCA per contract may not exceed _________. § 12:19.
    $1 million
  72. 28. The False Statements Act is another federal statute available to prosecute the related offenses by contractors of (1) ________of a material fact; (2) _____  _____  ______  or representations and (3) making _____  ______. § 12:21.
    concealment, making false statements, false writings
  73. 29. The Supreme Court has supported ______ interpretations of the FSA, so it is considered available as an alternative charge when more narrow statutes could also be applied. § 12:21.
  74. 30. Yet another prosecution tool is the Major Fraud Act, available to prosecute any scheme to defraud the government or to obtain money or property from the government by _____  ___  ________ pretenses in any procurement of property or services over $1million. § 12:25.
    false or fraudulent
  75. 31. Under the Anti-Kickback Act, the term “kickback” is defined as “any money, fee, commission, credit, gift, gratuity, thing of value or compensation of any kind which is provided, directly or indirectly, to any prime or subcontractor or their employees for the purpose of improperly obtaining or rewarding _______  _______ in connection with a prime contract or in connection with a subcontract relating to a prime contract. § 12:29.
    favorable treatment
  76. 32. The Anti-Kickback Act includes ______, _______ and _________ penalties to address its violations. § 12:30.
    criminal, civil, administrative
  77. 33. Two principal areas are addressed by the Procurement Integrity Act, including improper _____  __ ______ and the improper ______ ___ ______ of procurement information. § 12:34.
    conflicts of interest, disclosure or receipt
  78. 34. Each civilian agency and the Department of Defense have a designated _______  ______, supported by the Department of Justice which has responsibility for enforcing the various procurement integrity statutes mentioned above. § 12:39.
    Inspector General
  79. 35. Among the _______ sanctions available to help enforce the referenced procurement integrity statutes are the following: ______ the contract; requiring the contractor to _____ certain claims it has against the government; and _______ ___ _______ of the contractor from doing business with the government. § 12:41.
    administrative, canceling, forfeit, suspension and debarment
Card Set
Contract Law- Midterm
Midterm- PA 6649
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