CON 202 EXAM 1: CONTRACTING FUNDAMENTALS
QUESTIONS AND ANSWERS 2026
SECTION 1: ACQUISITION PLANNING & MARKET RESEARCH (Questions 1-25)
1. What is the primary purpose of conducting market research in the acquisition planning process?
a) To identify the lowest price available
b) To determine the most suitable contract type
c) To understand the market's capabilities and identify potential sources
d) To justify a sole-source award
Answer: c) To understand the market's capabilities and identify potential sources
Rationale: Market research is a critical first step. Its primary goal is to gather information about the
marketplace to identify what products or services are available, which companies can provide them, and
what the current market conditions are. This informs the entire acquisition strategy. Identifying the
lowest price (a) is a result, not the purpose. Determining contract type (b) is a subsequent step.
Justifying a sole-source award (d) is a possible outcome but not the primary, overarching purpose.
2. An acquisition plan is a comprehensive document that:
a) Is required for every single purchase, regardless of value
b) Details the technical requirements only
c) Serves as a roadmap for the entire acquisition process
,d) Is prepared solely by the contracting officer
Answer: c) Serves as a roadmap for the entire acquisition process
Rationale: The acquisition plan is the strategic roadmap that integrates all the various aspects of a
procurement, including requirements definition, market research, acquisition strategy, contract type,
source selection, and contract administration. It is not required for every purchase (a), especially small
ones. It covers more than just technical requirements (b). While the contracting officer is a key player,
the acquisition plan is a team effort involving program managers, legal, and other stakeholders (d).
3. The "requirements definition" phase of acquisition planning involves:
a) Writing the final contract
b) Developing a clear, complete, and accurate description of the government's needs
c) Selecting the contractor
d) Determining the profit margin for the contractor
Answer: b) Developing a clear, complete, and accurate description of the government's needs
Rationale: Requirements definition is about clearly articulating what the government needs to buy. This
is the foundation of the entire acquisition. A vague or incomplete requirement is a primary cause of
acquisition failure. This happens long before writing the contract (a) or selecting a contractor (c). Profit
margin (d) is determined during the pricing and negotiation phase.
4. A Performance Work Statement (PWS) is best used when:
a) The requirement is simple and off-the-shelf
b) The government wants to specify the "how-to" for the contractor
c) The government wants to focus on outcomes and results
d) The requirement is for a commercial item
Answer: c) The government wants to focus on outcomes and results
,Rationale: A PWS describes the required results in clear, measurable terms. It focuses on what is to be
accomplished, not how to do it. This allows contractors to propose innovative solutions. It is not for
simple, off-the-shelf items (a). Specifying the "how-to" is the purpose of a Statement of Work (SOW) (b).
5. Which of the following is a method of market research?
a) Issuing a Request for Proposal (RFP)
b) Reviewing the System for Award Management (SAM.gov)
c) Conducting a pre-award survey
d) Holding a post-award conference
Answer: b) Reviewing the System for Award Management (SAM.gov)
Rationale: SAM.gov is the official government-wide database for entity registration and is a key tool for
conducting market research to identify potential contractors. Issuing an RFP (a), conducting a pre-award
survey (c), and holding a post-award conference (d) are all part of the acquisition process but occur after
market research is largely complete.
6. A "brand name or equal" specification is used when:
a) Only one specific brand is acceptable
b) The government wants to restrict competition to a single brand
c) The government needs a specific brand's features but will accept an equivalent product
d) The item is a commercial item
Answer: c) The government needs a specific brand's features but will accept an equivalent product
Rationale: "Brand name or equal" allows the government to specify a known brand as a benchmark for
the desired salient characteristics, but it also allows offerors to propose alternative products that meet
or exceed those characteristics. This promotes competition while ensuring the government gets the
functional requirements it needs. A sole-brand specification (a, b) is restrictive and requires justification.
7. An Independent Government Cost Estimate (IGCE) is used to:
, a) Determine the final contract price
b) Establish a basis for evaluating the reasonableness of proposed prices
c) Guarantee the contractor a profit
d) Tell the contractor how much to bid
Answer: b) Establish a basis for evaluating the reasonableness of proposed prices
Rationale: The IGCE is the government's own estimate of what a requirement should cost. It is a critical
tool for the contracting officer to use as a benchmark during the evaluation of proposals to determine if
proposed prices are fair and reasonable. It is not the final price (a), a guarantee of profit (c), or shared
with the contractor (d).
8. The Acquisition Streamlining Act (ASA) of 1994 was designed to:
a) Increase the number of regulations in the acquisition process
b) Simplify and streamline the federal acquisition process
c) Mandate the use of cost-reimbursement contracts
d) Abolish the use of commercial items
Answer: b) Simplify and streamline the federal acquisition process
Rationale: The Federal Acquisition Streamlining Act (FASA) of 1994 was a landmark piece of legislation
aimed at making the government acquisition process more efficient, effective, and less bureaucratic. It
encouraged the use of commercial items, simplified procedures for small purchases, and reduced
paperwork.
9. What is a "salient characteristic" in a specification?
a) A minor feature that is optional
b) A key functional or performance feature that is essential to the government's need
c) A feature that is only available from one manufacturer
d) A cosmetic detail of the product
QUESTIONS AND ANSWERS 2026
SECTION 1: ACQUISITION PLANNING & MARKET RESEARCH (Questions 1-25)
1. What is the primary purpose of conducting market research in the acquisition planning process?
a) To identify the lowest price available
b) To determine the most suitable contract type
c) To understand the market's capabilities and identify potential sources
d) To justify a sole-source award
Answer: c) To understand the market's capabilities and identify potential sources
Rationale: Market research is a critical first step. Its primary goal is to gather information about the
marketplace to identify what products or services are available, which companies can provide them, and
what the current market conditions are. This informs the entire acquisition strategy. Identifying the
lowest price (a) is a result, not the purpose. Determining contract type (b) is a subsequent step.
Justifying a sole-source award (d) is a possible outcome but not the primary, overarching purpose.
2. An acquisition plan is a comprehensive document that:
a) Is required for every single purchase, regardless of value
b) Details the technical requirements only
c) Serves as a roadmap for the entire acquisition process
,d) Is prepared solely by the contracting officer
Answer: c) Serves as a roadmap for the entire acquisition process
Rationale: The acquisition plan is the strategic roadmap that integrates all the various aspects of a
procurement, including requirements definition, market research, acquisition strategy, contract type,
source selection, and contract administration. It is not required for every purchase (a), especially small
ones. It covers more than just technical requirements (b). While the contracting officer is a key player,
the acquisition plan is a team effort involving program managers, legal, and other stakeholders (d).
3. The "requirements definition" phase of acquisition planning involves:
a) Writing the final contract
b) Developing a clear, complete, and accurate description of the government's needs
c) Selecting the contractor
d) Determining the profit margin for the contractor
Answer: b) Developing a clear, complete, and accurate description of the government's needs
Rationale: Requirements definition is about clearly articulating what the government needs to buy. This
is the foundation of the entire acquisition. A vague or incomplete requirement is a primary cause of
acquisition failure. This happens long before writing the contract (a) or selecting a contractor (c). Profit
margin (d) is determined during the pricing and negotiation phase.
4. A Performance Work Statement (PWS) is best used when:
a) The requirement is simple and off-the-shelf
b) The government wants to specify the "how-to" for the contractor
c) The government wants to focus on outcomes and results
d) The requirement is for a commercial item
Answer: c) The government wants to focus on outcomes and results
,Rationale: A PWS describes the required results in clear, measurable terms. It focuses on what is to be
accomplished, not how to do it. This allows contractors to propose innovative solutions. It is not for
simple, off-the-shelf items (a). Specifying the "how-to" is the purpose of a Statement of Work (SOW) (b).
5. Which of the following is a method of market research?
a) Issuing a Request for Proposal (RFP)
b) Reviewing the System for Award Management (SAM.gov)
c) Conducting a pre-award survey
d) Holding a post-award conference
Answer: b) Reviewing the System for Award Management (SAM.gov)
Rationale: SAM.gov is the official government-wide database for entity registration and is a key tool for
conducting market research to identify potential contractors. Issuing an RFP (a), conducting a pre-award
survey (c), and holding a post-award conference (d) are all part of the acquisition process but occur after
market research is largely complete.
6. A "brand name or equal" specification is used when:
a) Only one specific brand is acceptable
b) The government wants to restrict competition to a single brand
c) The government needs a specific brand's features but will accept an equivalent product
d) The item is a commercial item
Answer: c) The government needs a specific brand's features but will accept an equivalent product
Rationale: "Brand name or equal" allows the government to specify a known brand as a benchmark for
the desired salient characteristics, but it also allows offerors to propose alternative products that meet
or exceed those characteristics. This promotes competition while ensuring the government gets the
functional requirements it needs. A sole-brand specification (a, b) is restrictive and requires justification.
7. An Independent Government Cost Estimate (IGCE) is used to:
, a) Determine the final contract price
b) Establish a basis for evaluating the reasonableness of proposed prices
c) Guarantee the contractor a profit
d) Tell the contractor how much to bid
Answer: b) Establish a basis for evaluating the reasonableness of proposed prices
Rationale: The IGCE is the government's own estimate of what a requirement should cost. It is a critical
tool for the contracting officer to use as a benchmark during the evaluation of proposals to determine if
proposed prices are fair and reasonable. It is not the final price (a), a guarantee of profit (c), or shared
with the contractor (d).
8. The Acquisition Streamlining Act (ASA) of 1994 was designed to:
a) Increase the number of regulations in the acquisition process
b) Simplify and streamline the federal acquisition process
c) Mandate the use of cost-reimbursement contracts
d) Abolish the use of commercial items
Answer: b) Simplify and streamline the federal acquisition process
Rationale: The Federal Acquisition Streamlining Act (FASA) of 1994 was a landmark piece of legislation
aimed at making the government acquisition process more efficient, effective, and less bureaucratic. It
encouraged the use of commercial items, simplified procedures for small purchases, and reduced
paperwork.
9. What is a "salient characteristic" in a specification?
a) A minor feature that is optional
b) A key functional or performance feature that is essential to the government's need
c) A feature that is only available from one manufacturer
d) A cosmetic detail of the product
