CON 3990 EXAM | 201 QUESTIONS AND ANSWERS |
NEW 2026 UPDATE | WITH COMPLETE SOLUTION.
What is the Micro-purhcase threshold for supplies? Answer - $10k
All incentive contracts (schedule or performance) must also include what?
Answer - Cost incentive or constraint
What requires funds to be used only for needs or services in the year of the
appropriations obligation period? Answer - Bona Fide Needs Rule
What contract types can be used for commercial item purchases? Answer - FFP
or FPEPA
What is the Simplified Acquisition Threshold for commercial products and
services? What is it for non-commercial? Answer - $7.5M - commercial $250k
for non-commercial
True or False: The Gov shall use electronic commerce whenever practicable or
cost-effective Answer - True
What is the purpose of a contract file? (4) Answer - Provide background/basis
for decisions
Supporting actions taken
Provide information for reviews and investigations
Furnishing essential facts in the event of a litigation
,Can contract files be combined if appropriate? Answer - Yes
At what level are contract files maintained and why? Answer - Maintained at
the organizational level to ensure
effective documentation of contract actions
accessibility by principal users
minimal establishment of duplicate and working files
safeguarding classified docs
conformance with agency regs
When is a SAP contract file closed out? Answer - When the KO receives
evidence of receipt of property or final payment
When is a FFP (not SAP) contract file closed out? Answer - Should be closed
out within 6 months after date KO receives evidence of physical completion
When should contract files required settlement of indirect cost rates be closed
out? Answer - Within 36 months of the month the KO receives evidence of
physical completion
When should all other (not SAP, FFP, or indirect cost rate) contract files be
closed? Answer - Within 20 months of the month the KO receives evidence of
physical completion
When is a contract considered physically complete? Answer - the KTR has
completed required deliveries and Gov has inspected and accepted the
supplies
,The contractor has performed all services and the Gov has accepted the
services and
all option provisions, if any, have expired
or the Gov gives the KTR notice of termination
What are the steps to close out a contract file? Answer - 1) Contract admin
office is responsible for initiating, reviewing contract fund status, and
deobligating excess funds
2)KO issues a contract completions statement
3) KO files completed statement and signed copy send to admin office
How long are contract documents retained after closeout? Answer - 6 years
after final payment
What does a KO need prior to commencement of negotiations for a sole source
contract, commencement of negotiations for a contract resulting from an
unsolicited proposal, or award without providing for full and open
competition? Answer - Justification and Approval which justifies the actions in
writing, certifies the accuracy and completeness of the justifications and
obtains the approval required
The KO shall not award a sole-source contract for an amount exceeding $25M
unless Answer - they have a signed Justification and Approval
A J&A should include Answer - Description of action being approved
Description of supplies or services required + estimated value
statutory authority permitting other than full and open comp
demonstrate why specific KTR is required (instead of comp)
efforts made to solicit offers from other sources
, determination of fair and reasonable anticipated cost
description of market research conducted
list of sources that expressed interest
statement of how agency may remove comp barriers in the future
KO certification
What are the thresholds for J&A approval Answer - under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
What are the basic elements required for a contract to be legally binding (4)
Answer - mutual assent (valid offer and acceptance)
adequate consideration
capacity
legality
What is implied actual authority? Answer - authority to do what is usual,
customary and necessary to accomplish the action
Implied actual authority differs from express actual authority in that no express
agreement is executed
(e.g., when an individual is assigned a task to accomplish but the minor details
are not spelled out either verbally or in writing, this is an example of implied
actual authority).
What is express actual authority? Answer - is created by explicit language,
either in writing or verbal.
It should be noted that the spoken word is generally as binding as the written
word; however it is sometimes more difficult to prove.
NEW 2026 UPDATE | WITH COMPLETE SOLUTION.
What is the Micro-purhcase threshold for supplies? Answer - $10k
All incentive contracts (schedule or performance) must also include what?
Answer - Cost incentive or constraint
What requires funds to be used only for needs or services in the year of the
appropriations obligation period? Answer - Bona Fide Needs Rule
What contract types can be used for commercial item purchases? Answer - FFP
or FPEPA
What is the Simplified Acquisition Threshold for commercial products and
services? What is it for non-commercial? Answer - $7.5M - commercial $250k
for non-commercial
True or False: The Gov shall use electronic commerce whenever practicable or
cost-effective Answer - True
What is the purpose of a contract file? (4) Answer - Provide background/basis
for decisions
Supporting actions taken
Provide information for reviews and investigations
Furnishing essential facts in the event of a litigation
,Can contract files be combined if appropriate? Answer - Yes
At what level are contract files maintained and why? Answer - Maintained at
the organizational level to ensure
effective documentation of contract actions
accessibility by principal users
minimal establishment of duplicate and working files
safeguarding classified docs
conformance with agency regs
When is a SAP contract file closed out? Answer - When the KO receives
evidence of receipt of property or final payment
When is a FFP (not SAP) contract file closed out? Answer - Should be closed
out within 6 months after date KO receives evidence of physical completion
When should contract files required settlement of indirect cost rates be closed
out? Answer - Within 36 months of the month the KO receives evidence of
physical completion
When should all other (not SAP, FFP, or indirect cost rate) contract files be
closed? Answer - Within 20 months of the month the KO receives evidence of
physical completion
When is a contract considered physically complete? Answer - the KTR has
completed required deliveries and Gov has inspected and accepted the
supplies
,The contractor has performed all services and the Gov has accepted the
services and
all option provisions, if any, have expired
or the Gov gives the KTR notice of termination
What are the steps to close out a contract file? Answer - 1) Contract admin
office is responsible for initiating, reviewing contract fund status, and
deobligating excess funds
2)KO issues a contract completions statement
3) KO files completed statement and signed copy send to admin office
How long are contract documents retained after closeout? Answer - 6 years
after final payment
What does a KO need prior to commencement of negotiations for a sole source
contract, commencement of negotiations for a contract resulting from an
unsolicited proposal, or award without providing for full and open
competition? Answer - Justification and Approval which justifies the actions in
writing, certifies the accuracy and completeness of the justifications and
obtains the approval required
The KO shall not award a sole-source contract for an amount exceeding $25M
unless Answer - they have a signed Justification and Approval
A J&A should include Answer - Description of action being approved
Description of supplies or services required + estimated value
statutory authority permitting other than full and open comp
demonstrate why specific KTR is required (instead of comp)
efforts made to solicit offers from other sources
, determination of fair and reasonable anticipated cost
description of market research conducted
list of sources that expressed interest
statement of how agency may remove comp barriers in the future
KO certification
What are the thresholds for J&A approval Answer - under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
What are the basic elements required for a contract to be legally binding (4)
Answer - mutual assent (valid offer and acceptance)
adequate consideration
capacity
legality
What is implied actual authority? Answer - authority to do what is usual,
customary and necessary to accomplish the action
Implied actual authority differs from express actual authority in that no express
agreement is executed
(e.g., when an individual is assigned a task to accomplish but the minor details
are not spelled out either verbally or in writing, this is an example of implied
actual authority).
What is express actual authority? Answer - is created by explicit language,
either in writing or verbal.
It should be noted that the spoken word is generally as binding as the written
word; however it is sometimes more difficult to prove.
