https://www.stuvia.com/user/performance
VA ALTERNATIVE ENERGY SYSTEM CONTRACTING Original
Exam Questions with Answers and Rationales
Section 1: Federal Acquisition Regulations (FAR) Overview
(Questions)
1. What is the primary regulation governing federal
procurement for the Department of Veterans Affairs?
A. Uniform Commercial Code
B. Federal Acquisition Regulation (FAR) and VA Acquisition
Regulation (VAAR)
C. State procurement laws
D. International trade agreements only
Answer: B
Rationale: The FAR is the primary regulation for all
federal executive agencies, and the VAAR supplements
the FAR with agency-specific policies for VA
procurements.
2. Which FAR part specifically addresses acquisition of
commercial products and commercial services?
A. FAR Part 6
B. FAR Part 12
C. FAR Part 15
D. FAR Part 19
Answer: B
,https://www.stuvia.com/user/performance
Rationale: FAR Part 12 prescribes policies for acquiring
commercial products and services, which is frequently
used for alternative energy system purchases like solar
panels and energy services.
3. What is the micro-purchase threshold for federal
acquisitions?
A. $2,500
B. $10,000
C. $25,000
D. $100,000
Answer: B
Rationale: The micro-purchase threshold is generally
$10,000, though it may be higher for certain acquisitions
or under special circumstances. Below this threshold, no
competitive quotes are required.
4. What is the simplified acquisition threshold (SAT)?
A. $25,000
B. $100,000
C. $250,000
D. $500,000
Answer: C
Rationale: The simplified acquisition threshold is
$250,000. Acquisitions at or below this threshold can use
simplified procedures, reducing administrative burden.
,https://www.stuvia.com/user/performance
5. Which contract type places the greatest cost risk on the
contractor?
A. Cost-plus-fixed-fee
B. Time and materials
C. Firm-fixed-price
D. Cost-reimbursement
Answer: C
Rationale: In a firm-fixed-price contract, the contractor
assumes full responsibility for performance costs and
profit or loss. The government pays a set price regardless
of actual costs.
6. Which contract type places the greatest cost risk on the
government?
A. Firm-fixed-price
B. Cost-plus-fixed-fee
C. Fixed-price with economic price adjustment
D. Incentive contract
Answer: B
Rationale: In a cost-reimbursement contract, the
government bears the risk of cost overruns, as it
reimburses allowable incurred costs up to the ceiling.
7. What is the purpose of the "Buy American Act" in federal
contracting?
A. To increase imports
, https://www.stuvia.com/user/performance
B. To give preference to domestic products and
construction materials in federal acquisitions
C. To reduce competition
D. To eliminate trade agreements
Answer: B
Rationale: The Buy American Act requires federal
agencies to purchase domestic end products and
construction materials unless exceptions or waivers
apply, supporting U.S. manufacturing.
8. What is a "Set-Aside" in federal contracting?
A. A contract open to all bidders
B. A contract reserved exclusively for small businesses or
other designated socioeconomic categories
C. A contract for foreign firms only
D. A contract that bypasses competition
Answer: B
Rationale: Set-asides reserve acquisitions for small
businesses, veteran-owned small businesses, women-
owned, HUBZone, or other designated groups to promote
socioeconomic goals.
9. Which small business program is specifically relevant to
the Department of Veterans Affairs?
A. 8(a) Business Development
B. HUBZone
VA ALTERNATIVE ENERGY SYSTEM CONTRACTING Original
Exam Questions with Answers and Rationales
Section 1: Federal Acquisition Regulations (FAR) Overview
(Questions)
1. What is the primary regulation governing federal
procurement for the Department of Veterans Affairs?
A. Uniform Commercial Code
B. Federal Acquisition Regulation (FAR) and VA Acquisition
Regulation (VAAR)
C. State procurement laws
D. International trade agreements only
Answer: B
Rationale: The FAR is the primary regulation for all
federal executive agencies, and the VAAR supplements
the FAR with agency-specific policies for VA
procurements.
2. Which FAR part specifically addresses acquisition of
commercial products and commercial services?
A. FAR Part 6
B. FAR Part 12
C. FAR Part 15
D. FAR Part 19
Answer: B
,https://www.stuvia.com/user/performance
Rationale: FAR Part 12 prescribes policies for acquiring
commercial products and services, which is frequently
used for alternative energy system purchases like solar
panels and energy services.
3. What is the micro-purchase threshold for federal
acquisitions?
A. $2,500
B. $10,000
C. $25,000
D. $100,000
Answer: B
Rationale: The micro-purchase threshold is generally
$10,000, though it may be higher for certain acquisitions
or under special circumstances. Below this threshold, no
competitive quotes are required.
4. What is the simplified acquisition threshold (SAT)?
A. $25,000
B. $100,000
C. $250,000
D. $500,000
Answer: C
Rationale: The simplified acquisition threshold is
$250,000. Acquisitions at or below this threshold can use
simplified procedures, reducing administrative burden.
,https://www.stuvia.com/user/performance
5. Which contract type places the greatest cost risk on the
contractor?
A. Cost-plus-fixed-fee
B. Time and materials
C. Firm-fixed-price
D. Cost-reimbursement
Answer: C
Rationale: In a firm-fixed-price contract, the contractor
assumes full responsibility for performance costs and
profit or loss. The government pays a set price regardless
of actual costs.
6. Which contract type places the greatest cost risk on the
government?
A. Firm-fixed-price
B. Cost-plus-fixed-fee
C. Fixed-price with economic price adjustment
D. Incentive contract
Answer: B
Rationale: In a cost-reimbursement contract, the
government bears the risk of cost overruns, as it
reimburses allowable incurred costs up to the ceiling.
7. What is the purpose of the "Buy American Act" in federal
contracting?
A. To increase imports
, https://www.stuvia.com/user/performance
B. To give preference to domestic products and
construction materials in federal acquisitions
C. To reduce competition
D. To eliminate trade agreements
Answer: B
Rationale: The Buy American Act requires federal
agencies to purchase domestic end products and
construction materials unless exceptions or waivers
apply, supporting U.S. manufacturing.
8. What is a "Set-Aside" in federal contracting?
A. A contract open to all bidders
B. A contract reserved exclusively for small businesses or
other designated socioeconomic categories
C. A contract for foreign firms only
D. A contract that bypasses competition
Answer: B
Rationale: Set-asides reserve acquisitions for small
businesses, veteran-owned small businesses, women-
owned, HUBZone, or other designated groups to promote
socioeconomic goals.
9. Which small business program is specifically relevant to
the Department of Veterans Affairs?
A. 8(a) Business Development
B. HUBZone
