CON 3990 EXAM QUESTIONS AND ANSWERS
2025
What is the Micro-purhcase threshold for supplies? - ANSWER $10k
All incentive contracts (schedule or performance) must also include what? - ANSWER Cost incentive or
constraint
What requires funds to be used only for needs or services in the year of the appropriations obligation
period? - ANSWER Bona Fide Needs Rule
What contract types can be used for commercial item purchases? - ANSWER FFP or FPEPA
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
True or False: The Gov shall use electronic commerce whenever practicable or cost-effective - ANSWER
True
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
Can contract files be combined if appropriate? - ANSWER Yes
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
When is a SAP contract file closed out? - ANSWER When the KO receives evidence of receipt of property
or final payment
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
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
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
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
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
How long are contract documents retained after closeout? - ANSWER 6 years after final payment
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
, The KO shall not award a sole-source contract for an amount exceeding $25M unless - ANSWER they
have a signed Justification and Approval
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
What are the thresholds for J&A approval - ANSWER under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
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
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).
2025
What is the Micro-purhcase threshold for supplies? - ANSWER $10k
All incentive contracts (schedule or performance) must also include what? - ANSWER Cost incentive or
constraint
What requires funds to be used only for needs or services in the year of the appropriations obligation
period? - ANSWER Bona Fide Needs Rule
What contract types can be used for commercial item purchases? - ANSWER FFP or FPEPA
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
True or False: The Gov shall use electronic commerce whenever practicable or cost-effective - ANSWER
True
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
Can contract files be combined if appropriate? - ANSWER Yes
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
When is a SAP contract file closed out? - ANSWER When the KO receives evidence of receipt of property
or final payment
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
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
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
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
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
How long are contract documents retained after closeout? - ANSWER 6 years after final payment
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
, The KO shall not award a sole-source contract for an amount exceeding $25M unless - ANSWER they
have a signed Justification and Approval
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
What are the thresholds for J&A approval - ANSWER under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
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
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).
