NCMA Test # 4
- 1.
Generally, purchases and leases made by the Federal Government are immune from:
- A.
Excise taxes
- B.
State and local taxes
- C.
Federal taxes
- D.
Transportation mobility taxes
Correct Answer
B. State and local taxesExplanation
Purchases and leases made by the Federal Government are immune from state and local taxes because of the principle of federal supremacy. This means that the federal government has the authority to regulate and govern the entire country, and state and local governments cannot impose taxes on federal activities. This immunity helps ensure that the federal government can carry out its functions without interference from state and local tax laws.Rate this question:
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- 2.
Some techniques to promote early exchanges of information prior to receipt of proposals include:
- A.
Industry or small business conferences for preferred vendors
- B.
Private hearings published in the GPE
- C.
Market research, as described in part 17
- D.
One-on-one meetings with potential offerors
Correct Answer
D. One-on-one meetings with potential offerorsExplanation
One-on-one meetings with potential offerors can promote early exchanges of information prior to receipt of proposals. This allows the contracting agency to gather information about the potential offerors' capabilities, experience, and understanding of the requirements. It also provides an opportunity for the potential offerors to ask questions and seek clarification on the requirements. These meetings can help both parties to better understand each other's needs and expectations, leading to more informed and competitive proposals.Rate this question:
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- 3.
In coordination with the cognizant office, the contracting officer shall promptly act to protect the Government against payment of royalties EXCEPT:
- A.
With respect to which the Government does not have a royalty-free license
- B.
At a rate not to exceed the rate at which the Government is licensed
- C.
When the royalties in whole or in part otherwise constitute an improper charge
- D.
When royalties are not in conjunction with a contract not expected to exceed the simplified acquisition threshold.
Correct Answer
C. When the royalties in whole or in part otherwise constitute an improper chargeExplanation
The contracting officer is responsible for protecting the government against payment of royalties that constitute an improper charge. This means that if the royalties, either in whole or in part, are deemed to be an inappropriate or unauthorized expense, the contracting officer should take action to prevent the government from paying them. This could include disputing the charges, negotiating a lower rate, or seeking legal remedies if necessary.Rate this question:
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- 4.
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a contract if the contract specifies payments aggregating _________ or more.
- A.
$ 1,000
- B.
$ 3,000
- C.
$ 100,000
- D.
$ 1,000,000
Correct Answer
A. $ 1,000Explanation
Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a contract if the contract specifies payments aggregating $1,000 or more. This means that if the contract states that the total payments to be made to the contractor will be $1,000 or higher, the contractor has the right to assign those payments to another party. This allows the contractor to transfer their rights to receive the payments to someone else, such as a subcontractor or a lender.Rate this question:
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- 5.
To avoid obsolescence, a modular contract for information technology should, to the maximum extent practicable, be awarded within ______ days after the date on which the solicitation is issued.
- A.
30
- B.
90
- C.
150
- D.
180
Correct Answer
D. 180Explanation
A modular contract for information technology should be awarded within 180 days after the date on which the solicitation is issued in order to avoid obsolescence. This means that the contract should be awarded as soon as possible within this timeframe to ensure that the technology being procured remains relevant and up-to-date. Waiting longer than 180 days may result in the technology becoming outdated and no longer meeting the needs of the organization.Rate this question:
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- 6.
If a contractor fails to notify the contracting officer that one of its employees, during performance of the contract, hired a prostitute to engage in a commercial sex act, the U.S. government cannot do which of the following:
- A.
Require the contractor to remove the employee.
- B.
Suspend contract payments.
- C.
Reduce award fees.
- D.
The government may do all of the above.
Correct Answer
D. The government may do all of the above.Explanation
The correct answer is that the government may do all of the above. If a contractor fails to notify the contracting officer about an employee hiring a prostitute for a commercial sex act during the contract's performance, the government has the authority to take various actions. These actions include requiring the contractor to remove the employee, suspending contract payments, and reducing award fees.Rate this question:
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- 7.
When an EVMS is required, the Government will conduct an:
- A.
Work Breakdown Structure
- B.
Quality Plan
- C.
Integrated Baseline Review
- D.
Program Management Plan
Correct Answer
C. Integrated Baseline ReviewExplanation
The Integrated Baseline Review (IBR) is conducted by the Government when an Earned Value Management System (EVMS) is required. The IBR is a thorough examination of the contractor's EVMS to ensure that it meets the necessary criteria and is capable of providing accurate and reliable cost and schedule performance data. This review helps to establish a baseline for performance measurement and control, and ensures that the EVMS is properly integrated into the overall program management plan.Rate this question:
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- 8.
Contracting officers shall provide property to contractors only when it is clearly demonstrated:
- A.
To be in the contractor’s best interest
- B.
That the overall benefit to the acquisition significantly does not outweigh the increased cost of administration, including ultimate property disposal
- C.
That providing the property does not substantially increase the Government’s assumption of risk
- D.
That Government requirements can otherwise be met
Correct Answer
C. That providing the property does not substantially increase the Government’s assumption of riskExplanation
The correct answer is that providing the property does not substantially increase the Government's assumption of risk. This means that the contracting officers should only provide property to contractors if it does not significantly increase the risk that the government has to bear. The government wants to ensure that they are not taking on unnecessary risks and that the contractors are able to handle the property without putting the government at a greater risk.Rate this question:
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- 9.
If an element of cost is not listed in FAR 31.205, is it allowable?
- A.
Yes
- B.
No
- C.
Yes, if approved by the auditor based upon reasonableness and allocability principles
- D.
Maybe—it’s a contracting officer decision
Correct Answer
D. Maybe—it’s a contracting officer decisionExplanation
The correct answer is Maybe—it’s a contracting officer decision. This means that if an element of cost is not listed in FAR 31.205, whether it is allowable or not will depend on the decision of the contracting officer. The contracting officer will consider factors such as reasonableness and allocability principles to determine if the cost can be approved.Rate this question:
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- 10.
The Drug Free Workplace Act must be included in which of the following?
- A.
A micro-purchase awarded to an individual
- B.
A contract option below the simplified acquisition threshold
- C.
Contracts above the cost and pricing threshold which are performed outside the United States
- D.
All of the above
Correct Answer
A. A micro-purchase awarded to an individualExplanation
The Drug Free Workplace Act must be included in a micro-purchase awarded to an individual because the Act applies to all federal contracts and grants, regardless of the size or type of contract. It requires contractors and grantees to maintain a drug-free workplace by implementing certain policies and procedures, including drug testing for employees. Therefore, even a micro-purchase awarded to an individual would still be subject to the requirements of the Act.Rate this question:
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- 11.
Which of the following are applicable to “commercially-available-off-the- shelf” procurements?
- A.
The components test of the Buy American Act
- B.
The two recovered materials certifications in FAR 23.4
- C.
The Drug Free Workplace Act of 1988
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
None of the options listed are applicable to "commercially-available-off-the-shelf" procurements. The Buy American Act, which requires the use of domestic materials, does not apply to commercially-available off-the-shelf items. Similarly, the two recovered materials certifications in FAR 23.4, which pertain to the use of recycled materials, also do not apply to commercially-available off-the-shelf items. The Drug Free Workplace Act of 1988, which requires federal contractors to maintain a drug-free workplace, is also not applicable to commercially-available off-the-shelf procurements. Therefore, the correct answer is None of the above.Rate this question:
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- 12.
The due date for making an invoice payment is as follows:
- A.
The 30th day after the designated billing office receives a proper invoice from the contractor
- B.
The 30th day after Government acceptance of supplies delivered or services performed
- C.
The later of A & B
- D.
When either A or B have been satisfied
Correct Answer
C. The later of A & BExplanation
The correct answer is "The later of A & B". This means that the due date for making an invoice payment is determined by whichever of the two options, A or B, occurs later. Option A is the 30th day after the designated billing office receives a proper invoice from the contractor, while option B is the 30th day after Government acceptance of supplies delivered or services performed. So, the due date will be the later of these two options.Rate this question:
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- 13.
Annual receipts of a concern which has been in business for ____ or more complete fiscal years means the annual average gross revenue of the concern taken for the last ____ fiscal years.
- A.
1, 2
- B.
3, 5
- C.
3, 3
- D.
5, 5
Correct Answer
C. 3, 3Explanation
Annual receipts of a concern which has been in business for 3 or more complete fiscal years means the annual average gross revenue of the concern taken for the last 3 fiscal years. This means that the concern must have been in business for at least 3 complete fiscal years, and the annual receipts are calculated by taking the average of the gross revenue for those 3 years.Rate this question:
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- 14.
The contracting officer need not submit the notice required by 5.201 when the contracting officer determines that the proposed contract action:
- A.
Is for an amount expected to exceed the simplified acquisition threshold
- B.
Will be made through a means that provides access to the notice of proposed contract action through the GPE
- C.
Does not permit the public to respond to the solicitation electronically
- D.
The proposed contract action is telecommunications services
Correct Answer
B. Will be made through a means that provides access to the notice of proposed contract action through the GPEExplanation
The contracting officer does not need to submit the notice required by 5.201 when the proposed contract action will be made through a means that provides access to the notice of proposed contract action through the GPE. This means that if the contract action can be accessed by the public through the Government Point of Entry (GPE), there is no need for the contracting officer to submit a separate notice. This ensures that the public has the necessary information about the contract action and can respond to it if needed.Rate this question:
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- 15.
When establishing Federal Supply Schedules, _____________is responsible for complying with all applicable statutory and regulatory requirements (a) GSA
- A.
GSA
- B.
Designated agency
- C.
A only
- D.
Both A & B
Correct Answer
D. Both A & BExplanation
Both the GSA (General Services Administration) and the designated agency are responsible for complying with all applicable statutory and regulatory requirements when establishing Federal Supply Schedules. This means that both entities have the responsibility to ensure that all legal and regulatory obligations are met during the process of establishing these schedules.Rate this question:
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- 16.
The threshold for obtaining certified cost or pricing data is
- A.
$ 600,000
- B.
$350,000
- C.
$700,000
- D.
$1,500,000
Correct Answer
C. $700,000Explanation
The threshold for obtaining certified cost or pricing data is $700,000. This means that if the total contract price or modification exceeds $700,000, the contractor is required to submit certified cost or pricing data to the contracting officer. This data includes information about the costs and prices used in developing the contractor's proposal, such as historical cost data, pricing information on similar items, and data on prices in the commercial market. The certification ensures that the data is accurate, complete, and current.Rate this question:
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- 17.
When a contractor is given written notice of a termination, the notice shall state:
- A.
That the contract is being terminated for the convenience of the Government (or for default) under the contract clause authorizing the termination
- B.
The effective date of termination
- C.
The extent of termination
- D.
All the Above
Correct Answer
D. All the AboveExplanation
When a contractor is given written notice of a termination, the notice should include all of the above information. This means that the notice should state whether the contract is being terminated for the convenience of the Government or for default, as authorized by the contract clause. It should also specify the effective date of termination and the extent of termination. Therefore, all of the options listed in the answer are correct and should be included in the notice of termination.Rate this question:
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- 18.
The ________ shall perform CAS administration for all contracts and subcontracts in a business unit even when the contracting officer retains other administration functions.
- A.
Contracting officer
- B.
Program Manager
- C.
ACO
- D.
CFAO
Correct Answer
D. CFAOExplanation
The answer is CFAO because the CFAO (Contracting Officer's Technical Representative) is responsible for CAS (Contract Administration Services) administration for all contracts and subcontracts in a business unit, even if the contracting officer retains other administration functions. The CFAO acts as the liaison between the contracting officer and the contractor, ensuring that all aspects of the contract are properly administered and executed.Rate this question:
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- 19.
A ________ in the possession or control of the Government, submitted in response to a competitive solicitation, shall not be made available to any person under the Freedom of Information Act.
- A.
Design specification
- B.
Cost volume
- C.
Proposal
- D.
Requirements package
Correct Answer
C. ProposalExplanation
A proposal in the possession or control of the Government, submitted in response to a competitive solicitation, shall not be made available to any person under the Freedom of Information Act. This is because a proposal contains sensitive and confidential information that could give competitors an unfair advantage if disclosed.Rate this question:
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- 20.
Which of the following countries does not have a bi-lateral Free Trade Agreement with the U.S.?
- A.
Chile
- B.
Bahrain
- C.
Singapore
- D.
Panama
Correct Answer
D. PanamaExplanation
Panama does not have a bi-lateral Free Trade Agreement with the U.S. This means that there is no specific agreement between the two countries to promote trade and reduce barriers such as tariffs and quotas. While Chile, Bahrain, and Singapore all have bi-lateral Free Trade Agreements with the U.S., Panama does not.Rate this question:
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- 21.
When the price of the undelivered balance of the contract is less than _______, the contract should not normally be terminated for convenience but should be permitted to run to completion.
- A.
$3,000
- B.
$5,000
- C.
$10,000
- D.
$150,000
Correct Answer
B. $5,000Explanation
When the price of the undelivered balance of the contract is less than $5,000, it is not cost-effective to terminate the contract for convenience. Instead, it is more beneficial to allow the contract to continue until completion. This suggests that the cost of terminating the contract and finding an alternative solution would exceed the cost of completing the remaining work under the contract.Rate this question:
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- 22.
Contractors providing commercial items should indemnify the Government against liability of the infringement of
- A.
Data right infringements
- B.
U.S. Patents
- C.
Copyright violations
- D.
McNamara-O’Hara Service Contract Act (SCA) violations
Correct Answer
B. U.S. PatentsExplanation
Contractors providing commercial items should indemnify the Government against liability of the infringement of U.S. Patents. This means that if the contractor's commercial items infringe on any U.S. patents, they are responsible for any legal or financial consequences that may arise from the infringement. By indemnifying the Government, the contractor takes on the liability and protects the Government from any potential lawsuits or claims related to patent infringement.Rate this question:
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- 23.
Applied research means the effort that:
- A.
Normally precedes basic research, but may not be severable from the related basic research
- B.
Attempts to determine, but not exploit, the potential of scientific discoveries or improvements in technology, materials, processes, methods, devices, or techniques
- C.
Attempts to advance the state of the art
- D.
Attempts to use modular contracting to exploit research and development
Correct Answer
C. Attempts to advance the state of the artExplanation
Applied research refers to the type of research that aims to advance the current state of the art. It focuses on using scientific discoveries or improvements in technology, materials, processes, methods, devices, or techniques to push the boundaries of knowledge and practical applications. This type of research builds upon basic research but goes beyond just understanding and explores the potential for further advancements. It does not necessarily involve the exploitation of these discoveries, but rather seeks to expand the current knowledge and capabilities in a particular field.Rate this question:
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- 24.
Non-construction prime contractor with 50 or more employees and a contract of $50,000 or more is required to:
- A.
Provide continuing educations benefits to each full time employee
- B.
Provide onsite childcare
- C.
Offer health care to all employees salaried under $40,000
- D.
Develop an affirmative action program within 120 days of award
Correct Answer
D. Develop an affirmative action program within 120 days of award -
- 25.
The Copeland Act is also known as the:
- A.
Equity contract distribution to discriminated groups
- B.
Act mandating small business access to government contracts
- C.
Labor Law of 1930
- D.
The Anti-Kickback Act
Correct Answer
D. The Anti-Kickback ActExplanation
The Copeland Act is also known as The Anti-Kickback Act. This act prohibits the exchange of money or other incentives in return for referrals or business dealings with the federal government. It aims to prevent corruption and ensure fair competition in government contracts.Rate this question:
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- 26.
The Walsh-Healy Act protects government contractors by establishing a work week of 40 hours, sets minimum wages, and sets child labor standards who contracts exceed:
- A.
$2,500
- B.
$15,000
- C.
$2,500
- D.
$100,000
Correct Answer
B. $15,000Explanation
The correct answer is $15,000. The Walsh-Healy Act protects government contractors by establishing a work week of 40 hours, setting minimum wages, and setting child labor standards for contracts that exceed $15,000. This means that if a government contractor's contract is valued at $15,000 or more, they are entitled to the protections provided by the Walsh-Healy Act.Rate this question:
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- 27.
The Davis-Bacon act is primarily concerned with:
- A.
Forces a cost of living increase with multi year contracts
- B.
Determining if contracts are in violation of the Buy American Act
- C.
Determining wage rates to be paid on federal projects
- D.
Established procedures for identifying and reporting contractor fraud
Correct Answer
C. Determining wage rates to be paid on federal projectsExplanation
The Davis-Bacon Act is a federal law that requires contractors to pay prevailing wages to workers on federal construction projects. It ensures that workers are paid fair wages that are comparable to local wage rates for similar work. The act aims to prevent contractors from undercutting local labor markets by hiring low-wage workers from outside the area. By determining wage rates to be paid on federal projects, the Davis-Bacon Act helps to protect workers and promote fair competition in the construction industry.Rate this question:
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- 28.
The Buy American Act can be waived if:
- A.
The domestic product is more expensive than an identical foreign-source produce by a certain percentage
- B.
The product will be used for contraction
- C.
The product will be used for NASA
- D.
The product is less than $100
Correct Answer
A. The domestic product is more expensive than an identical foreign-source produce by a certain percentageExplanation
The Buy American Act requires that the government give preference to domestic products over foreign products in government procurement. However, there are certain circumstances where this requirement can be waived. One such circumstance is when the domestic product is more expensive than an identical foreign-source product by a certain percentage. This waiver allows the government to choose the cheaper option, even if it is from a foreign source.Rate this question:
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- 29.
Agencies shall perform contract quality assurance, including inspection, at source if:
- A.
Performance at any other place would require economical disassembly or non-destructive testing
- B.
Considerable profit would result from the manufacture and shipment of acceptable supplies, or from the delay in making necessary corrections
- C.
Special required instruments, gauges, or facilities are not available only at source
- D.
Performance at any other place would destroy or require the replacement of costly special packing and packaging
Correct Answer
D. Performance at any other place would destroy or require the replacement of costly special packing and packagingExplanation
Agencies are required to perform contract quality assurance, including inspection, at source if performing it at any other place would result in the destruction or replacement of costly special packing and packaging. This means that if the supplies being inspected cannot be moved without damaging the packaging, the inspection must be done at the source to avoid the need for costly replacements.Rate this question:
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- 30.
As stated in 13.004 Legal Effect of Quotations, when the Government issues an order in response to a supplier’s quotation, it is considered a:
- A.
Binding contract
- B.
Offer
- C.
Unilateral acceptance
- D.
All of the above
Correct Answer
B. OfferExplanation
When the Government issues an order in response to a supplier's quotation, it is considered an offer. This means that the Government is expressing its intention to enter into a contract with the supplier based on the terms and conditions stated in the quotation. The supplier can accept this offer by fulfilling the requirements of the order. Therefore, the correct answer is "Offer."Rate this question:
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- 31.
Agency funding of multi-year contracts shall conform to the policies in OMB Circulars A-11 (Preparation and Submission of Budget Estimates) and A-34 (Instructions on Budget Execution) and other applicable guidance regarding the funding of multi-year contracts
- A.
OMB Circulars A-11
- B.
OMB Exhibit 300
- C.
OMB Exhibit 53
- D.
OMB Circular A-87
Correct Answer
A. OMB Circulars A-11Explanation
The correct answer is OMB Circulars A-11 because it states that agency funding of multi-year contracts should conform to the policies in this circular. This circular provides guidance on the preparation and submission of budget estimates, which includes guidelines on funding multi-year contracts. Therefore, agencies must follow the policies outlined in OMB Circulars A-11 when funding multi-year contracts.Rate this question:
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- 32.
In coordination with the cognizant office, the contracting officer shall promptly act to protect the Government against payment of royalties
- A.
With respect to which the Government has a royalty-free license
- B.
At a rate in excess of the rate at which the Government is licensed
- C.
Both A & B
- D.
Neither A or B
Correct Answer
C. Both A & BExplanation
The correct answer is Both A & B. This means that the contracting officer should promptly act to protect the Government against payment of royalties in two situations. First, when the Government already has a royalty-free license, there should not be any payment of royalties. Second, if the rate at which the Government is being licensed is higher than the rate being charged, the contracting officer should take action to protect the Government from overpayment.Rate this question:
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- 33.
Which of the following are considered inherently governmental functions?
- A.
The control of prosecutions and performance of adjudicatory functions other than those relating to arbitration or other methods of alternative dispute resolution
- B.
The determination of agency policy, such as determining the content and application of regulations, among other things
- C.
The direction and control of intelligence and counter-intelligence operations
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above" because all three options listed are examples of inherently governmental functions. Inherently governmental functions are those activities that must be performed by federal government employees and cannot be delegated to or performed by contractors. These functions involve core government responsibilities such as the control of prosecutions, determination of agency policy, and the direction and control of intelligence and counter-intelligence operations.Rate this question:
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