CON 1400V FINAL EXAM NEWEST 2026
| COMPLETE 200 AND CORRECT
1. Which Part of the FAR contains the primary policies for contracting by sealed
bidding?
A) FAR Part 12
B) FAR Part 14
C) FAR Part 15
D) FAR Part 16
Answer: B
Rationale: FAR Part 14 is specifically titled "Sealed Bidding." Part 12 is for
Commercial Items, Part 15 is for Negotiation, and Part 16 covers Contract Types.
2. Under FAR Part 6, what is the overarching government policy regarding
competition?
A) Full and Open Competition (F&OC) shall be pursued to the maximum extent
practicable.
B) Other than Full and Open Competition is preferred for classified contracts.
C) Competition is only required for contracts over the SAT.
D) Sole-source awards are prohibited for all DoD contracts.
Answer: A
Rationale: FAR 6.101 states that F&OC must be pursued to the maximum extent
practicable. OTF&O is the exception, not the rule, and sole-source is allowed only
under specific statutory exceptions (FAR 6.302).
3. Which of the following is a legitimate exception to Full and Open Competition
(FAR 6.302)?
A) The agency prefers a specific brand name.
B) The incumbent contractor has performed well.
,C) Urgency exists and the government's needs cannot be delayed.
D) The contract value is below the micro-purchase threshold.
Answer: C
Rationale: FAR 6.302-2 allows OTF&O when the agency's need is of such unusual
and compelling urgency that delaying for full competition would result in
unacceptable harm. Brand preference and incumbent performance are not valid
exceptions.
4. The DFARS supplements which primary regulation?
A) The GAO Bid Protest rules
B) The Federal Acquisition Regulation (FAR)
C) The Small Business Act
D) The Truth in Negotiations Act
Answer: B
Rationale: The Defense Federal Acquisition Regulation Supplement (DFARS) is the
DoD supplement to the FAR. It does not replace the FAR; it adds specific DoD
requirements.
5. An agency issues a solicitation but receives only one offer. This is known as:
A) A sole-source acquisition
B) An inadequate competition
C) A noncompetitive procurement
D) An exception to fair opportunity
Answer: B
Rationale: This is "Inadequate Competition" (FAR 15.304). It is not a sole-source
acquisition (which is intentionally noncompetitive from the start); it is a failed
competitive procurement.
QUESTIONS 6–20: CONTRACT TYPES (FAR 16)
,6. Which contract type places the greatest degree of cost risk on the contractor?
A) Cost-Plus-Fixed-Fee (CPFF)
B) Cost-Plus-Incentive-Fee (CPIF)
C) Firm-Fixed-Price (FFP)
D) Time-and-Materials (T&M)
Answer: C
Rationale: In an FFP contract, the contractor bears all cost risk and must absorb
any overruns. CPFF and CPIF shift risk to the government; T&M shares risk but is
not as contractor-heavy as FFP.
7. Under a Cost-Plus-Fixed-Fee (CPFF) contract, the fee:
A) Increases if the contractor beats the target cost.
B) Is negotiated at the outset and remains constant regardless of final costs.
C) Is a percentage of the final actual costs.
D) Can never exceed 10% of the estimated cost.
Answer: B
Rationale: The "Fixed Fee" in CPFF is determined at award and does not vary with
actual costs. Profit is not a percentage of costs (which would incentivize overruns).
8. A Cost-Plus-Incentive-Fee (CPIF) contract includes:
A) A target cost, target fee, and a share ratio for cost overruns/underruns.
B) A ceiling price that the contractor cannot exceed.
C) A fixed fee with no adjustment mechanism.
D) A requirement for certified cost or pricing data.
Answer: A
Rationale: CPIF uses a target cost, target fee, minimum and maximum fee, and a
share ratio (e.g., 80/20) to adjust the fee based on final costs compared to target.
A ceiling price is found in FPIF, not CPIF.
, 9. Which contract type is most appropriate when the government has a well-
defined requirement but there is some uncertainty in cost performance, and a
ceiling price is desired?
A) Firm-Fixed-Price (FFP)
B) Cost-Plus-Fixed-Fee (CPFF)
C) Fixed-Price-Incentive-Firm (FPIF)
D) Cost-Plus-Award-Fee (CPAF)
Answer: C
Rationale: FPIF provides a target cost/profit, a share ratio, and a firm ceiling price.
It allows for cost uncertainty while protecting the government from unlimited cost
overruns (unlike CPFF).
10. Time-and-Materials (T&M) contracts are:
A) Preferred for development of new technology.
B) Only authorized when no other contract type is suitable.
C) Subject to the same cost-reimbursement rules as CPFF.
D) Required to have a not-to-exceed ceiling price.
Answer: B
Rationale: FAR 16.601 states T&M contracts are used only when it is not possible
to estimate the extent or duration of work, and no other contract type is suitable.
They do have a ceiling price, but the primary statutory restriction is suitability.
11. Under a Cost-Reimbursement contract, what must the contractor possess to
be eligible?
A) A facility clearance.
B) An approved accounting system.
C) A performance bond.
D) A Small Business certification.
Answer: B
Rationale: Because the government is reimbursing actual costs, FAR 16.301
| COMPLETE 200 AND CORRECT
1. Which Part of the FAR contains the primary policies for contracting by sealed
bidding?
A) FAR Part 12
B) FAR Part 14
C) FAR Part 15
D) FAR Part 16
Answer: B
Rationale: FAR Part 14 is specifically titled "Sealed Bidding." Part 12 is for
Commercial Items, Part 15 is for Negotiation, and Part 16 covers Contract Types.
2. Under FAR Part 6, what is the overarching government policy regarding
competition?
A) Full and Open Competition (F&OC) shall be pursued to the maximum extent
practicable.
B) Other than Full and Open Competition is preferred for classified contracts.
C) Competition is only required for contracts over the SAT.
D) Sole-source awards are prohibited for all DoD contracts.
Answer: A
Rationale: FAR 6.101 states that F&OC must be pursued to the maximum extent
practicable. OTF&O is the exception, not the rule, and sole-source is allowed only
under specific statutory exceptions (FAR 6.302).
3. Which of the following is a legitimate exception to Full and Open Competition
(FAR 6.302)?
A) The agency prefers a specific brand name.
B) The incumbent contractor has performed well.
,C) Urgency exists and the government's needs cannot be delayed.
D) The contract value is below the micro-purchase threshold.
Answer: C
Rationale: FAR 6.302-2 allows OTF&O when the agency's need is of such unusual
and compelling urgency that delaying for full competition would result in
unacceptable harm. Brand preference and incumbent performance are not valid
exceptions.
4. The DFARS supplements which primary regulation?
A) The GAO Bid Protest rules
B) The Federal Acquisition Regulation (FAR)
C) The Small Business Act
D) The Truth in Negotiations Act
Answer: B
Rationale: The Defense Federal Acquisition Regulation Supplement (DFARS) is the
DoD supplement to the FAR. It does not replace the FAR; it adds specific DoD
requirements.
5. An agency issues a solicitation but receives only one offer. This is known as:
A) A sole-source acquisition
B) An inadequate competition
C) A noncompetitive procurement
D) An exception to fair opportunity
Answer: B
Rationale: This is "Inadequate Competition" (FAR 15.304). It is not a sole-source
acquisition (which is intentionally noncompetitive from the start); it is a failed
competitive procurement.
QUESTIONS 6–20: CONTRACT TYPES (FAR 16)
,6. Which contract type places the greatest degree of cost risk on the contractor?
A) Cost-Plus-Fixed-Fee (CPFF)
B) Cost-Plus-Incentive-Fee (CPIF)
C) Firm-Fixed-Price (FFP)
D) Time-and-Materials (T&M)
Answer: C
Rationale: In an FFP contract, the contractor bears all cost risk and must absorb
any overruns. CPFF and CPIF shift risk to the government; T&M shares risk but is
not as contractor-heavy as FFP.
7. Under a Cost-Plus-Fixed-Fee (CPFF) contract, the fee:
A) Increases if the contractor beats the target cost.
B) Is negotiated at the outset and remains constant regardless of final costs.
C) Is a percentage of the final actual costs.
D) Can never exceed 10% of the estimated cost.
Answer: B
Rationale: The "Fixed Fee" in CPFF is determined at award and does not vary with
actual costs. Profit is not a percentage of costs (which would incentivize overruns).
8. A Cost-Plus-Incentive-Fee (CPIF) contract includes:
A) A target cost, target fee, and a share ratio for cost overruns/underruns.
B) A ceiling price that the contractor cannot exceed.
C) A fixed fee with no adjustment mechanism.
D) A requirement for certified cost or pricing data.
Answer: A
Rationale: CPIF uses a target cost, target fee, minimum and maximum fee, and a
share ratio (e.g., 80/20) to adjust the fee based on final costs compared to target.
A ceiling price is found in FPIF, not CPIF.
, 9. Which contract type is most appropriate when the government has a well-
defined requirement but there is some uncertainty in cost performance, and a
ceiling price is desired?
A) Firm-Fixed-Price (FFP)
B) Cost-Plus-Fixed-Fee (CPFF)
C) Fixed-Price-Incentive-Firm (FPIF)
D) Cost-Plus-Award-Fee (CPAF)
Answer: C
Rationale: FPIF provides a target cost/profit, a share ratio, and a firm ceiling price.
It allows for cost uncertainty while protecting the government from unlimited cost
overruns (unlike CPFF).
10. Time-and-Materials (T&M) contracts are:
A) Preferred for development of new technology.
B) Only authorized when no other contract type is suitable.
C) Subject to the same cost-reimbursement rules as CPFF.
D) Required to have a not-to-exceed ceiling price.
Answer: B
Rationale: FAR 16.601 states T&M contracts are used only when it is not possible
to estimate the extent or duration of work, and no other contract type is suitable.
They do have a ceiling price, but the primary statutory restriction is suitability.
11. Under a Cost-Reimbursement contract, what must the contractor possess to
be eligible?
A) A facility clearance.
B) An approved accounting system.
C) A performance bond.
D) A Small Business certification.
Answer: B
Rationale: Because the government is reimbursing actual costs, FAR 16.301
