CON 216 Legal Considerations in
Contracting Test Questions Fully
Solved.
You have received the final audit on a cost reimbursement contract with Space Technologies,
Inc. The contractor worked on this R&D Contract for 2 years before the money ran out. During
this time interim payments were made to the contractor which included indirect expenses.
When calculating the payments amounts for indirect expenses, you used a rate of 82%. The final
audit calculation shows that actual indirect rates should be 71% for the first year and 69% for
the second year. The audit report indicates that the contractor was overpaid by $497,675 for
indirect expenses. What are you going to do? - Answer Notify Space Technologies about the
overpayment and allow them to submit evidence to support their position on the debt.
You are reviewing the payment records for your contract with Swift Manufacturing Company.
You notice two payments for the same amount, $178,575, which is odd since deliveries under
the contract have been differing quantities. After reviewing the contract, you have cause to
believe that Swift owes money to the Government. You decide to initiate a debt recovery. What
steps should you take? - Answer Provide the demand letter to the Disbursing Officer.
Issue a demand letter for the overpayment.
The Army has a contract with the Right-Way Company. A Right-Way employee tells the Army
contracting officer that the company has been charging the contract with work that is
performed for some its commercial customers. Which agency has responsibility for prosecuting
any resulting criminal action? - Answer The Department of Justice (DOJ)
Contractor XYZ's plant manager directs employees to use Vaseline petroleum jelly as a lubricant
on O-ring gaskets used in an item being manufactured for the government. The contract
specifies certain lubricants that may be used but Vaseline is not one of them. The contractor
then certifies to the government that the item, including the O-rings meets contract
specifications. The items are then tendered for acceptance. What two types of common fraud
have been committed by Contactor XYZ? - Answer False Invoice (False Claims) and Product
Substitution
A former employee of the Space Flight Corp. has filed a lawsuit on behalf of the Government.
He alleges that the company had a secret policy of charging cost overruns incurred on
commercial contracts to their Government cost reimbursement contracts. What statute
authorizes a private individual to bring an action on behalf of the government? - Answer "Qui
tam lawsuits are a type of whistleblower lawsuit that is brought under the False Claims Act"
Contracting Test Questions Fully
Solved.
You have received the final audit on a cost reimbursement contract with Space Technologies,
Inc. The contractor worked on this R&D Contract for 2 years before the money ran out. During
this time interim payments were made to the contractor which included indirect expenses.
When calculating the payments amounts for indirect expenses, you used a rate of 82%. The final
audit calculation shows that actual indirect rates should be 71% for the first year and 69% for
the second year. The audit report indicates that the contractor was overpaid by $497,675 for
indirect expenses. What are you going to do? - Answer Notify Space Technologies about the
overpayment and allow them to submit evidence to support their position on the debt.
You are reviewing the payment records for your contract with Swift Manufacturing Company.
You notice two payments for the same amount, $178,575, which is odd since deliveries under
the contract have been differing quantities. After reviewing the contract, you have cause to
believe that Swift owes money to the Government. You decide to initiate a debt recovery. What
steps should you take? - Answer Provide the demand letter to the Disbursing Officer.
Issue a demand letter for the overpayment.
The Army has a contract with the Right-Way Company. A Right-Way employee tells the Army
contracting officer that the company has been charging the contract with work that is
performed for some its commercial customers. Which agency has responsibility for prosecuting
any resulting criminal action? - Answer The Department of Justice (DOJ)
Contractor XYZ's plant manager directs employees to use Vaseline petroleum jelly as a lubricant
on O-ring gaskets used in an item being manufactured for the government. The contract
specifies certain lubricants that may be used but Vaseline is not one of them. The contractor
then certifies to the government that the item, including the O-rings meets contract
specifications. The items are then tendered for acceptance. What two types of common fraud
have been committed by Contactor XYZ? - Answer False Invoice (False Claims) and Product
Substitution
A former employee of the Space Flight Corp. has filed a lawsuit on behalf of the Government.
He alleges that the company had a secret policy of charging cost overruns incurred on
commercial contracts to their Government cost reimbursement contracts. What statute
authorizes a private individual to bring an action on behalf of the government? - Answer "Qui
tam lawsuits are a type of whistleblower lawsuit that is brought under the False Claims Act"
