Contract Law- Midterm

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.

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. 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.

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. 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.

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. A small disadvantaged business may participate in the 8(a) program for a maximum of ____ years. §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. Contract bundling can be used to keep small disadvantaged businesses from __________  __________ in government contracts as prime contracts. 8:14.

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.

The CDA broadened the ______  __ ______ that are subject to the disputes process.    §21:2.

The CDA
sets time limits on the issuance of the Contracting Officer’s ________
on contractor claims.  §21:2.

The CDA provides contractors with a ______
of forums for challenging an adverse Contracting Officer’s decision.

The CDA
gave both the contractor and the government the _____  ___  ______ adverse board or COFC decisions.  §21:2.

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

The CDA extended the disputes process beyond those arising under the contract to also include disputes ______  _____ the contract.   21:3.

The CDA applies to any express or implied
contract entered into by an _______  ______of the U.S. for specified procurements.   21:4.

Contracting Officers may decide claims involving suspected fraud under the CDA.  True False  21:5.

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.

The Contracting Officer has two primary roles in the disputes process;  to ______  _______
and to _____  _______ on contractor and government claims.   21:8.

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.

The Court of Federal Claims and the boards of contract appeals have essentially ________ jurisdiction with regard to disputes
involving government contracts. 
21:10.

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.

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.

Among the types of _____  ______ under Extraordinary Contractual Relief is authorizing contract amendments without consideration.  21:13(2).

The cost principles articulated in FAR Part 31 provide the primary means for
determining whether a cost is ______ in federal government
contracting.  §9:2.

The cost principles are especially important in _______ _______ or ____  ______ type contracts.  §9:2.

The cost principles also play an important role in ____  ____ type contracts by setting ____ on pricing adjustments.  §9:2.

FAR Part 31 contains four sets of cost principles, depending on the type of ______  involved.  §9:3.

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.

The first listed factor for determining if a cost is ______ is the ________ of the cost.  §9:4.

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.

A cost that is not related to a particular cost objective may nevertheless be allowable as necessary to the ______  ______ of the
business.  §9:6.

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

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. 
§9:38.

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).

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).

According to Feldman, the CAS apply to both defense and non-defense ______
prime and subcontracts over ______.  §9:55.

The Disclosure Statement required by the CAS is a written description of the contractor’s cost accounting ______ and ______.   §9:59.

Classen’s “typical” license indicates the licensee is granted authorization to  ________  the software.

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

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)

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
paragraph.

A web-based application is likely to include the right to duplicate and distribute internally the software.

True or False

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)

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

3. The FAR provides two separate standard payment clauses, one for fixed-price _____ contracts and another for fixed-price ______ contracts. §10:3.

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.

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.

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.

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.

8. Progress payments may be based on either the _____  ______  in performance or on a _______  ___  _____of completion. §10:14.

9. Progress payments are customarily limited to 80% of the “total costs or performing the contract” for ____ businesses and 85% for _____ businesses. §10:16.

10. If a contractor fails to make payments to its subcontractors or suppliers, the Contracting Officer can _____ or _____ progress payments. §10:18.

11. Advance payments are payments made to the contractor _______ the contractor acquires any materials for or does any work under a contract. §10:19.

The method of contract financing preferred by the government is _______  ______ type of payments. §10:20.

13. The bases for making performance-based payments may be either specific events (i.e. milestones) or some _______  _______ of performance. §10:21.

14. Government employees are expected to conduct public business in a manner that avoids even the ______ of ethical impropriety. §12:1.

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.

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.

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.

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.

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.

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.

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.

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.

The relator must be represented by an _____ to bring a qui tam action. § 12:10.

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.

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.

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.

27. Under defense contracts, the maximum fine under the FCA per contract may not exceed _________. § 12:19.

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.

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.

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.

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.

32. The Anti-Kickback Act includes ______, _______ and _________ penalties to address its violations. § 12:30.

33. Two principal areas are addressed by the Procurement Integrity Act, including improper _____  __ ______ and the improper ______ ___ ______ of procurement information. § 12:34.

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.

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.