Certified Research Administrator Practice Exam

What must be adhered to if a contract is amended to exceed $550,000 after being awarded below that amount?

1. Small business subcontracting plan

2. Review of internal controls

3. Revised Scope of Work

4. All of the above

The correct answer is: Small business subcontracting plan

When a contract is amended to exceed $550,000 after being initially awarded for an amount below that threshold, there are specific compliance requirements that must be adhered to. In this case, the requirement for a small business subcontracting plan becomes necessary, as federal regulations mandate such a plan when the contract value exceeds this dollar amount. This is particularly important to ensure that small businesses have the opportunity to participate in the federal contracting processes. A small business subcontracting plan outlines how the contractor intends to provide subcontracting opportunities to small businesses, ensuring compliance with federal goals for small business participation. Therefore, when an amendment raises the total value of the contract above $550,000, the contractor must implement and adhere to this plan to remain compliant with federal guidelines. Other elements such as reviewing internal controls or revising the scope of work may be relevant depending on the specific circumstances of the contract and the nature of the amendment, but the requirement for a small business subcontracting plan is the direct compliance action triggered by the increase in the contract value over the specified threshold.