1. Which of the following is the primary regulation governing the federal acquisition process?
A) Uniform Commercial Code (UCC)
B) Federal Acquisition Regulation (FAR)
C) Procurement Integrity Act (PIA)
D) Contract Disputes Act (CDA)
Answer: B) Federal Acquisition Regulation (FAR)
Explanation: The FAR is the primary set of rules governing the acquisition of goods and services by federal agencies. It provides
guidelines on contract formation, administration, and dispute resolution.
2. A legally binding government contract must contain which of the following elements?
A) Offer, acceptance, consideration, and mutual intent
B) Offer, unilateral promise, and signed agreement
C) Government authorization and a bidder’s acceptance
D) An invitation for bid and a contractor’s response
Answer: A) Offer, acceptance, consideration, and mutual intent
Explanation: A valid contract requires these essential elements. In federal procurement, mutual intent ensures all parties agree on the
terms.
3. Under the Federal Acquisition Regulation (FAR), which method is commonly used for sealed bidding?
A) Competitive negotiation
B) Two-step sealed bidding
C) Reverse auction
D) Sole-source procurement
Answer: B) Two-step sealed bidding
Explanation: This method is used when specifications are not clearly defined initially. The first step involves technical proposals,
and the second step includes price bidding.
,4. Which entity has the authority to resolve federal contract award protests?
A) U.S. District Court
B) Government Accountability Office (GAO)
C) The procuring agency’s legal office
D) Department of Commerce
Answer: B) Government Accountability Office (GAO)
Explanation: The GAO handles bid protests regarding alleged violations of procurement laws or regulations.
5. What is the purpose of a “debriefing” after a contract award?
A) To renegotiate contract terms
B) To provide feedback to unsuccessful offerors
C) To publicly disclose all competing bid prices
D) To allow bidders to protest the decision directly
Answer: B) To provide feedback to unsuccessful offerors
Explanation: FAR mandates debriefings to help offerors understand the basis for the contract award and improve future proposals.
6. What is the role of a Contracting Officer (CO) in federal procurement?
A) Ensure contracts comply with the FAR
B) Approve payments for contractors
C) Represent the contractor in disputes
D) Lobby for procurement reforms
Answer: A) Ensure contracts comply with the FAR
Explanation: The CO has the legal authority to bind the government to contracts and ensure compliance with FAR requirements.
7. Under the FAR, a contractor is required to disclose evidence of fraud or violations of law when the contract value exceeds:
,A) $10,000
B) $150,000
C) $500,000
D) $5,000,000
Answer: D) $5,000,000
Explanation: The FAR requires contractors to disclose violations related to fraud, conflicts of interest, or bribery for contracts above
this threshold.
8. Which type of contract is used when costs cannot be estimated with accuracy and includes a negotiated profit?
A) Fixed-price contract
B) Cost-reimbursement contract
C) Indefinite-delivery contract
D) Time-and-materials contract
Answer: B) Cost-reimbursement contract
Explanation: Cost-reimbursement contracts allow for payment of allowable expenses plus a negotiated fee, making them suitable
when costs are uncertain.
9. What must an agency consider before awarding a sole-source contract?
A) Market research justifying lack of competition
B) The contractor’s lobbying history
C) Number of past contracts awarded to the contractor
D) Contractor’s relationship with the agency head
Answer: A) Market research justifying lack of competition
Explanation: Sole-source contracts require justification based on market research proving that only one source can fulfill the
requirement.
10. What is a “cure notice” in government contracting?
, A) A warning that contract performance is at risk
B) An official termination notice
C) A request for a contract extension
D) A final payment approval
Answer: A) A warning that contract performance is at risk
Explanation: A cure notice notifies a contractor of deficiencies and provides an opportunity to correct them before contract
termination.
11. Under the Federal Acquisition Regulation (FAR), which contract type places the most cost risk on the contractor?
A) Time-and-materials contract
B) Cost-reimbursement contract
C) Fixed-price contract
D) Letter contract
Answer: C) Fixed-price contract
Explanation: Fixed-price contracts require the contractor to deliver at the agreed-upon price, regardless of actual costs, placing the
financial risk on them.
12. What is the main purpose of the Competition in Contracting Act (CICA)?
A) To promote full and open competition in government procurement
B) To allow agencies to award contracts without competition
C) To regulate contractor salaries in government contracts
D) To provide exclusive contracting opportunities to small businesses
Answer: A) To promote full and open competition in government procurement
Explanation: CICA ensures that federal contracts are awarded through fair and open competition, reducing favoritism and waste.
A) Uniform Commercial Code (UCC)
B) Federal Acquisition Regulation (FAR)
C) Procurement Integrity Act (PIA)
D) Contract Disputes Act (CDA)
Answer: B) Federal Acquisition Regulation (FAR)
Explanation: The FAR is the primary set of rules governing the acquisition of goods and services by federal agencies. It provides
guidelines on contract formation, administration, and dispute resolution.
2. A legally binding government contract must contain which of the following elements?
A) Offer, acceptance, consideration, and mutual intent
B) Offer, unilateral promise, and signed agreement
C) Government authorization and a bidder’s acceptance
D) An invitation for bid and a contractor’s response
Answer: A) Offer, acceptance, consideration, and mutual intent
Explanation: A valid contract requires these essential elements. In federal procurement, mutual intent ensures all parties agree on the
terms.
3. Under the Federal Acquisition Regulation (FAR), which method is commonly used for sealed bidding?
A) Competitive negotiation
B) Two-step sealed bidding
C) Reverse auction
D) Sole-source procurement
Answer: B) Two-step sealed bidding
Explanation: This method is used when specifications are not clearly defined initially. The first step involves technical proposals,
and the second step includes price bidding.
,4. Which entity has the authority to resolve federal contract award protests?
A) U.S. District Court
B) Government Accountability Office (GAO)
C) The procuring agency’s legal office
D) Department of Commerce
Answer: B) Government Accountability Office (GAO)
Explanation: The GAO handles bid protests regarding alleged violations of procurement laws or regulations.
5. What is the purpose of a “debriefing” after a contract award?
A) To renegotiate contract terms
B) To provide feedback to unsuccessful offerors
C) To publicly disclose all competing bid prices
D) To allow bidders to protest the decision directly
Answer: B) To provide feedback to unsuccessful offerors
Explanation: FAR mandates debriefings to help offerors understand the basis for the contract award and improve future proposals.
6. What is the role of a Contracting Officer (CO) in federal procurement?
A) Ensure contracts comply with the FAR
B) Approve payments for contractors
C) Represent the contractor in disputes
D) Lobby for procurement reforms
Answer: A) Ensure contracts comply with the FAR
Explanation: The CO has the legal authority to bind the government to contracts and ensure compliance with FAR requirements.
7. Under the FAR, a contractor is required to disclose evidence of fraud or violations of law when the contract value exceeds:
,A) $10,000
B) $150,000
C) $500,000
D) $5,000,000
Answer: D) $5,000,000
Explanation: The FAR requires contractors to disclose violations related to fraud, conflicts of interest, or bribery for contracts above
this threshold.
8. Which type of contract is used when costs cannot be estimated with accuracy and includes a negotiated profit?
A) Fixed-price contract
B) Cost-reimbursement contract
C) Indefinite-delivery contract
D) Time-and-materials contract
Answer: B) Cost-reimbursement contract
Explanation: Cost-reimbursement contracts allow for payment of allowable expenses plus a negotiated fee, making them suitable
when costs are uncertain.
9. What must an agency consider before awarding a sole-source contract?
A) Market research justifying lack of competition
B) The contractor’s lobbying history
C) Number of past contracts awarded to the contractor
D) Contractor’s relationship with the agency head
Answer: A) Market research justifying lack of competition
Explanation: Sole-source contracts require justification based on market research proving that only one source can fulfill the
requirement.
10. What is a “cure notice” in government contracting?
, A) A warning that contract performance is at risk
B) An official termination notice
C) A request for a contract extension
D) A final payment approval
Answer: A) A warning that contract performance is at risk
Explanation: A cure notice notifies a contractor of deficiencies and provides an opportunity to correct them before contract
termination.
11. Under the Federal Acquisition Regulation (FAR), which contract type places the most cost risk on the contractor?
A) Time-and-materials contract
B) Cost-reimbursement contract
C) Fixed-price contract
D) Letter contract
Answer: C) Fixed-price contract
Explanation: Fixed-price contracts require the contractor to deliver at the agreed-upon price, regardless of actual costs, placing the
financial risk on them.
12. What is the main purpose of the Competition in Contracting Act (CICA)?
A) To promote full and open competition in government procurement
B) To allow agencies to award contracts without competition
C) To regulate contractor salaries in government contracts
D) To provide exclusive contracting opportunities to small businesses
Answer: A) To promote full and open competition in government procurement
Explanation: CICA ensures that federal contracts are awarded through fair and open competition, reducing favoritism and waste.
