FAC-C Professional Contracting Certification Exam | Complete
Practice Questions, Answers & Detailed Rationales
(2026/2027)
Question 1
According to FAR Part 1, what is the primary objective of the Federal
Acquisition System?
• A. To maximize the profit margins of private sector contractors
• B. To deliver on a timely basis the best value product or service to
the customer, while maintaining the public's trust
• C. To ensure that every small business receives a contract award
regardless of capability
• D. To minimize documentation requirements for all acquisitions
Correct Answer: B. To deliver on a timely basis the best value product
or service to the customer, while maintaining the public's trust
Detailed Rationale: The Federal Acquisition System's primary goal is to
satisfy customer needs for supplies and services in terms of cost,
quality, and timeliness, while carrying out public policy objectives and
maintaining the public's trust.
Question 2
Which of the following describes an "Inherently Governmental
Function" as defined in FAR Part 7?
• A. Providing janitorial services for a federal building
, • B. Providing advice or support services for the agency
• C. A function that is so intimately related to the public interest as
to mandate performance by government employees
• D. Developing computer software for a non-critical system
Correct Answer: C. A function that is so intimately related to the public
interest as to mandate performance by government employees
Detailed Rationale: Inherently governmental functions involve the
exercise of substantial discretion in applying government authority or
making value judgments that should only be performed by federal
employees.
Question 3
When must a Contracting Officer (CO) conduct Market Research per FAR
Part 10?
• A. Only for contracts exceeding the Simplified Acquisition
Threshold (SAT)
• B. Only when the contract is expected to be a sole-source award
• C. Before developing new requirements and before soliciting
offers for acquisitions that could lead to a bundled contract
• D. Only after the solicitation has been posted to SAM.gov
Correct Answer: C. Before developing new requirements and before
soliciting offers for acquisitions that could lead to a bundled contract
Detailed Rationale: Market research is a continuous process. COs must
conduct market research appropriate to the circumstances before
developing new requirements and before soliciting offers.
,Question 4
Which contract type poses the highest risk to the Government?
• A. Firm-Fixed-Price (FFP)
• B. Time-and-Materials (T&M)
• C. Cost-Plus-Fixed-Fee (CPFF)
• D. Fixed-Price with Economic Price Adjustment
Correct Answer: C. Cost-Plus-Fixed-Fee (CPFF)
Detailed Rationale: Cost-reimbursement contracts place the risk of cost
overruns on the Government, whereas FFP contracts place the risk of
performance cost on the contractor.
Question 5
What is the "Rule of Two" in the context of FAR Part 19 (Small Business
Programs)?
• A. The requirement to receive at least two bids from large
businesses before opening to small businesses
• B. The requirement to set aside an acquisition for small business
when there is a reasonable expectation that at least two
responsible small businesses will submit offers at fair market
prices
• C. The requirement that two government employees must sign off
on every sole-source justification
• D. The requirement to offer a contract to two different small
businesses simultaneously
, Correct Answer: B. The requirement to set aside an acquisition for small
business when there is a reasonable expectation that at least two
responsible small businesses will submit offers at fair market prices
Detailed Rationale: If the CO determines there is a reasonable
expectation that at least two small businesses can perform the work at
fair market prices, the acquisition must be set aside for small business.
Question 6
What is the primary purpose of a Justification and Approval (J&A)
document?
• A. To document the process of selecting a contractor for a
competitive bid
• B. To justify the use of other than full and open competition
• C. To obtain approval for a change in the statement of work
• D. To justify the use of a credit card for small purchases
Correct Answer: B. To justify the use of other than full and open
competition
Detailed Rationale: Per FAR Part 6, the Government must generally
promote full and open competition. When it does not, a J&A document
is required to legally justify the departure from full and open
competition.
Question 7
Which of the following is considered "Certified Cost or Pricing Data"?
• A. Market prices for commercial items
Practice Questions, Answers & Detailed Rationales
(2026/2027)
Question 1
According to FAR Part 1, what is the primary objective of the Federal
Acquisition System?
• A. To maximize the profit margins of private sector contractors
• B. To deliver on a timely basis the best value product or service to
the customer, while maintaining the public's trust
• C. To ensure that every small business receives a contract award
regardless of capability
• D. To minimize documentation requirements for all acquisitions
Correct Answer: B. To deliver on a timely basis the best value product
or service to the customer, while maintaining the public's trust
Detailed Rationale: The Federal Acquisition System's primary goal is to
satisfy customer needs for supplies and services in terms of cost,
quality, and timeliness, while carrying out public policy objectives and
maintaining the public's trust.
Question 2
Which of the following describes an "Inherently Governmental
Function" as defined in FAR Part 7?
• A. Providing janitorial services for a federal building
, • B. Providing advice or support services for the agency
• C. A function that is so intimately related to the public interest as
to mandate performance by government employees
• D. Developing computer software for a non-critical system
Correct Answer: C. A function that is so intimately related to the public
interest as to mandate performance by government employees
Detailed Rationale: Inherently governmental functions involve the
exercise of substantial discretion in applying government authority or
making value judgments that should only be performed by federal
employees.
Question 3
When must a Contracting Officer (CO) conduct Market Research per FAR
Part 10?
• A. Only for contracts exceeding the Simplified Acquisition
Threshold (SAT)
• B. Only when the contract is expected to be a sole-source award
• C. Before developing new requirements and before soliciting
offers for acquisitions that could lead to a bundled contract
• D. Only after the solicitation has been posted to SAM.gov
Correct Answer: C. Before developing new requirements and before
soliciting offers for acquisitions that could lead to a bundled contract
Detailed Rationale: Market research is a continuous process. COs must
conduct market research appropriate to the circumstances before
developing new requirements and before soliciting offers.
,Question 4
Which contract type poses the highest risk to the Government?
• A. Firm-Fixed-Price (FFP)
• B. Time-and-Materials (T&M)
• C. Cost-Plus-Fixed-Fee (CPFF)
• D. Fixed-Price with Economic Price Adjustment
Correct Answer: C. Cost-Plus-Fixed-Fee (CPFF)
Detailed Rationale: Cost-reimbursement contracts place the risk of cost
overruns on the Government, whereas FFP contracts place the risk of
performance cost on the contractor.
Question 5
What is the "Rule of Two" in the context of FAR Part 19 (Small Business
Programs)?
• A. The requirement to receive at least two bids from large
businesses before opening to small businesses
• B. The requirement to set aside an acquisition for small business
when there is a reasonable expectation that at least two
responsible small businesses will submit offers at fair market
prices
• C. The requirement that two government employees must sign off
on every sole-source justification
• D. The requirement to offer a contract to two different small
businesses simultaneously
, Correct Answer: B. The requirement to set aside an acquisition for small
business when there is a reasonable expectation that at least two
responsible small businesses will submit offers at fair market prices
Detailed Rationale: If the CO determines there is a reasonable
expectation that at least two small businesses can perform the work at
fair market prices, the acquisition must be set aside for small business.
Question 6
What is the primary purpose of a Justification and Approval (J&A)
document?
• A. To document the process of selecting a contractor for a
competitive bid
• B. To justify the use of other than full and open competition
• C. To obtain approval for a change in the statement of work
• D. To justify the use of a credit card for small purchases
Correct Answer: B. To justify the use of other than full and open
competition
Detailed Rationale: Per FAR Part 6, the Government must generally
promote full and open competition. When it does not, a J&A document
is required to legally justify the departure from full and open
competition.
Question 7
Which of the following is considered "Certified Cost or Pricing Data"?
• A. Market prices for commercial items
