CON 3990 Exam | Questions with 100% Verified Answers |
Latest Update 2026/2027
Question: What is the Micro-purhcase threshold for supplies?
Answer: $10k
Question: All incentive contracts (schedule or performance) must also
include what?
Answer: Cost incentive or constraint
Question: What requires funds to be used only for needs or services in
the year of the appropriations obligation period?
Answer: Bona Fide Needs Rule
Question: What contract types can be used for commercial item
purchases?
Answer: FFP or FPEPA
Question: What is the Simplified Acquisition Threshold for commercial
products and services? What is it for non-commercial?
Answer: $7.5M - commercial $250k for non-commercial
Question: True or False: The Gov shall use electronic commerce
whenever practicable or cost-effective
Answer: True
Question: What is the purpose of a contract file? (4)
Answer: Provide background/basis for decisions
Supporting actions taken
Provide information for reviews and investigations
Furnishing essential facts in the event of a litigation
Question: Can contract files be combined if appropriate?
Answer: Yes
Question: At what level are contract files maintained and why?
Answer: Maintained at the organizational level to ensure
effective documentation of contract actions
accessibility by principal users
minimal establishment of duplicate and working files
safeguarding classified docs
conformance with agency regs
Question: When is a SAP contract file closed out?
Answer: When the KO receives evidence of receipt of property or final payment
,Question: When is a FFP (not SAP) contract file closed out?
Answer: Should be closed out within 6 months after date KO receives evidence of physical
completion
Question: When should contract files required settlement of indirect
cost rates be closed out?
Answer: Within 36 months of the month the KO receives evidence of physical completion
Question: When should all other (not SAP, FFP, or indirect cost rate)
contract files be closed?
Answer: Within 20 months of the month the KO receives evidence of physical completion
Question: When is a contract considered physically complete?
Answer: the KTR has completed required deliveries and Gov has inspected and accepted the
supplies
The contractor has performed all services and the Gov has accepted the services and
all option provisions, if any, have expired
or the Gov gives the KTR notice of termination
Question: What are the steps to close out a contract file?
Answer: 1) Contract admin office is responsible for initiating, reviewing contract fund status,
and
deobligating excess funds
2)KO issues a contract completions statement
3) KO files completed statement and signed copy send to admin office
Question: How long are contract documents retained after closeout?
Answer: 6 years after final payment
Question: What does a KO need prior to commencement of
negotiations for a sole source contract, commencement of
negotiations for a contract resulting from an unsolicited
proposal, or award without providing for full and open
competition?
Answer: Justification and Approval which justifies the actions in writing, certifies the accuracy
and
completeness of the justifications and obtains the approval required
Question: The KO shall not award a sole-source contract for an amount
exceeding $25M unless
Answer: they have a signed Justification and Approval
, Question: A J&A should include
Answer: Description of action being approved
Description of supplies or services required + estimated value
statutory authority permitting other than full and open comp
demonstrate why specific KTR is required (instead of comp)
efforts made to solicit offers from other sources
determination of fair and reasonable anticipated cost
description of market research conducted
list of sources that expressed interest
statement of how agency may remove comp barriers in the future
KO certification
Question: What are the thresholds for J&A approval
Answer: under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
Question: What are the basic elements required for a contract to be
legally binding (4)
Answer: mutual assent (valid offer and acceptance)
adequate consideration
capacity
legality
Question: What is implied actual authority?
Answer: authority to do what is usual, customary and necessary to accomplish the action
Implied actual authority differs from express actual authority in that no express
agreement is executed
(e.g., when an individual is assigned a task to accomplish but the minor details are not
spelled out either verbally or in writing, this is an example of implied actual authority).
Question: What is express actual authority?
Answer: is created by explicit language, either in writing or verbal.
It should be noted that the spoken word is generally as binding as the written word;
however it is sometimes more difficult to prove.
Question: What is apparent authority?
Answer: Apparent authority exists when someone reasonably believes an individual has the
authority to act on behalf of the Government, based on his or her conduct, even though
that individual has no actual authority to bind the Government.
Question: What is consideration?
Answer: Something of value that a promisor receives from the promisee in return for his or her
offer.
aka the reason a party would seek to enter into a contract Can be money, action, non
action or property
Latest Update 2026/2027
Question: What is the Micro-purhcase threshold for supplies?
Answer: $10k
Question: All incentive contracts (schedule or performance) must also
include what?
Answer: Cost incentive or constraint
Question: What requires funds to be used only for needs or services in
the year of the appropriations obligation period?
Answer: Bona Fide Needs Rule
Question: What contract types can be used for commercial item
purchases?
Answer: FFP or FPEPA
Question: What is the Simplified Acquisition Threshold for commercial
products and services? What is it for non-commercial?
Answer: $7.5M - commercial $250k for non-commercial
Question: True or False: The Gov shall use electronic commerce
whenever practicable or cost-effective
Answer: True
Question: What is the purpose of a contract file? (4)
Answer: Provide background/basis for decisions
Supporting actions taken
Provide information for reviews and investigations
Furnishing essential facts in the event of a litigation
Question: Can contract files be combined if appropriate?
Answer: Yes
Question: At what level are contract files maintained and why?
Answer: Maintained at the organizational level to ensure
effective documentation of contract actions
accessibility by principal users
minimal establishment of duplicate and working files
safeguarding classified docs
conformance with agency regs
Question: When is a SAP contract file closed out?
Answer: When the KO receives evidence of receipt of property or final payment
,Question: When is a FFP (not SAP) contract file closed out?
Answer: Should be closed out within 6 months after date KO receives evidence of physical
completion
Question: When should contract files required settlement of indirect
cost rates be closed out?
Answer: Within 36 months of the month the KO receives evidence of physical completion
Question: When should all other (not SAP, FFP, or indirect cost rate)
contract files be closed?
Answer: Within 20 months of the month the KO receives evidence of physical completion
Question: When is a contract considered physically complete?
Answer: the KTR has completed required deliveries and Gov has inspected and accepted the
supplies
The contractor has performed all services and the Gov has accepted the services and
all option provisions, if any, have expired
or the Gov gives the KTR notice of termination
Question: What are the steps to close out a contract file?
Answer: 1) Contract admin office is responsible for initiating, reviewing contract fund status,
and
deobligating excess funds
2)KO issues a contract completions statement
3) KO files completed statement and signed copy send to admin office
Question: How long are contract documents retained after closeout?
Answer: 6 years after final payment
Question: What does a KO need prior to commencement of
negotiations for a sole source contract, commencement of
negotiations for a contract resulting from an unsolicited
proposal, or award without providing for full and open
competition?
Answer: Justification and Approval which justifies the actions in writing, certifies the accuracy
and
completeness of the justifications and obtains the approval required
Question: The KO shall not award a sole-source contract for an amount
exceeding $25M unless
Answer: they have a signed Justification and Approval
, Question: A J&A should include
Answer: Description of action being approved
Description of supplies or services required + estimated value
statutory authority permitting other than full and open comp
demonstrate why specific KTR is required (instead of comp)
efforts made to solicit offers from other sources
determination of fair and reasonable anticipated cost
description of market research conducted
list of sources that expressed interest
statement of how agency may remove comp barriers in the future
KO certification
Question: What are the thresholds for J&A approval
Answer: under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
Question: What are the basic elements required for a contract to be
legally binding (4)
Answer: mutual assent (valid offer and acceptance)
adequate consideration
capacity
legality
Question: What is implied actual authority?
Answer: authority to do what is usual, customary and necessary to accomplish the action
Implied actual authority differs from express actual authority in that no express
agreement is executed
(e.g., when an individual is assigned a task to accomplish but the minor details are not
spelled out either verbally or in writing, this is an example of implied actual authority).
Question: What is express actual authority?
Answer: is created by explicit language, either in writing or verbal.
It should be noted that the spoken word is generally as binding as the written word;
however it is sometimes more difficult to prove.
Question: What is apparent authority?
Answer: Apparent authority exists when someone reasonably believes an individual has the
authority to act on behalf of the Government, based on his or her conduct, even though
that individual has no actual authority to bind the Government.
Question: What is consideration?
Answer: Something of value that a promisor receives from the promisee in return for his or her
offer.
aka the reason a party would seek to enter into a contract Can be money, action, non
action or property
