CON 1100V Unit 5 Exam Prep 2026 | DAU Contracting Certification Practice Questions with Verified Answers & Detailed Rationales

CON 1100V Unit 5 Exam Prep 2026 | DAU
Contracting Certification Practice Questions
with Verified Answers & Detailed Rationales
CON 1100V UNIT 5 EXAM PREP 2026

DAU Contracting Certification Practice Questions with Verified Answers &
Detailed Rationales



DOCUMENT OVERVIEW

• This comprehensive 200-question exam bank is designed to reinforce mastery of
DAU CON 1100V Unit 5 contracting principles, providing realistic practice scenarios
with detailed rationales to deepen understanding of each concept.

• Study this material by reviewing each question carefully, attempting to identify the
correct answer before revealing it, and reading the rationale thoroughly to
understand not only why the correct answer is right but why other options are
incorrect.




QUESTION 1

In a firm-fixed-price (FFP) contract, who bears the greatest risk of cost
overruns?

A) The government

B) The contractor

C) The contract administration office

D) The subcontractors

E) The financial auditor

B) The contractor

Rationale: In firm-fixed-price contracts, the contractor assumes the risk of cost
overruns since the price is fixed regardless of actual costs incurred. The contractor

,receives no adjustment to the contract price if costs exceed the negotiated amount,
placing full financial risk on the contractor. This incentivizes efficiency and cost
control.



QUESTION 2

Which of the following best describes a cost-plus-fixed-fee (CPFF) contract?

A) The contractor receives reimbursement for all allowable costs plus a percentage
fee

B) The contractor receives reimbursement for allowable costs plus a negotiated
fixed fee

C) The fee increases based on the contractor's performance metrics

D) The contractor receives a fixed price regardless of actual costs

E) The government assumes all cost risk with no contractor accountability

B) The contractor receives reimbursement for allowable costs plus a
negotiated fixed fee

Rationale: A CPFF contract provides reimbursement for all reasonable, allowable,
and allocable costs of performance, plus a fixed fee that is established at contract
award and does not vary with actual costs. This structure allows flexibility in scope
while providing the contractor with a predictable profit margin through the fixed
fee component.



QUESTION 3

What is the primary purpose of cost and pricing data in government
contracting?

A) To establish the lowest possible price

B) To justify the reasonableness of contract price and provide a fair and objective
basis for price negotiations

,C) To eliminate all competition among contractors

D) To guarantee contractor profitability

E) To reduce the number of contract modifications

B) To justify the reasonableness of contract price and provide a fair and
objective basis for price negotiations

Rationale: Cost and pricing data are required to establish that a proposed price is
fair and reasonable. This data allows the government to evaluate whether the
contractor's cost estimates are realistic, properly documented, and justified. This
protects the government's interests and ensures taxpayer funds are used
responsibly.



QUESTION 4

When is the Certificate of Current Cost or Pricing Data NOT required?

A) For contracts exceeding $750,000

B) For contracts below the simplified acquisition threshold

C) For all cost-reimbursable contracts

D) When the contractor is a small business

E) For all firm-fixed-price contracts

B) For contracts below the simplified acquisition threshold

Rationale: The Certificate of Current Cost or Pricing Data is not required for
contracts below the simplified acquisition threshold (currently $250,000). This
exemption reduces administrative burden for smaller procurements while
maintaining cost and pricing requirements for larger, more complex contracts
where certified data is critical.



QUESTION 5

, What does a Request for Proposal (RFP) primarily solicit from potential
contractors?

A) A commitment to accept the government's terms without negotiation

B) Technical and cost proposals showing how the contractor will meet the
government's stated needs

C) Proof of financial solvency only

D) Demonstration of past contract performance exclusively

E) Confirmation that the contractor will use government-approved subcontractors

B) Technical and cost proposals showing how the contractor will meet the
government's stated needs

Rationale: An RFP solicits comprehensive proposals including the contractor's
technical approach, management plan, schedule, cost estimates, and other
information necessary for the government to evaluate whether the contractor can
meet the stated requirements. This differs from an Invitation for Bid (IFB), which
solicits only price for a clearly defined requirement.



QUESTION 6

In sealed bidding, which principle is fundamental to maintaining competition?

A) Public opening of bids and announcement of bid amounts

B) Allowing bidders to see other bids before submitting their own

C) Permitting price negotiations after bid opening

D) Allowing late bid submissions if the bidder can justify the delay

E) Giving preference to bids received earliest

A) Public opening of bids and announcement of bid amounts

Rationale: Sealed bidding maintains competition through formal public bid
opening where all bid amounts are announced simultaneously. This transparency
ensures fairness, prevents collusion, and demonstrates to all participants that the