CON 3990 Exam 2025 : -Questions and
Answers-NEWLY UPDATED VERSION
What is the Micro-purhcase threshold for supplies? - $10k
All incentive contracts (schedule or performance) must also include what? - Cost
incentive or constraint
What requires funds to be used only for needs or services in the year of the
appropriations obligation period? - Bona Fide Needs Rule
What contract types can be used for commercial item purchases? - FFP or FPEPA
What is the Simplified Acquisition Threshold for commercial products and services?
What is it for non-commercial? - $7.5M - commercial $250k for non-commercial
True or False: The Gov shall use electronic commerce whenever practicable or cost-
effective - True
What is the purpose of a contract file? (4) - 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? - Yes
At what level are contract files maintained and why? - 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? - When the KO receives evidence of
receipt of property or final payment
When is a FFP (not SAP) contract file closed out? - 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? -
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? -
Within 20 months of the month the KO receives evidence of physical completion
When is a contract considered physically complete? - 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? - 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? - 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? - 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 - they have a signed Justification and Approval
A J&A should include - 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 - 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) -
mutual assent (valid offer and acceptance)
adequate consideration
capacity
, legality
What is implied actual authority? - 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).
What is express actual authority? - 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.
What is apparent authority? - 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.
What is consideration? - 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
A contract is not enforceable without - consideration
What is lawful purpose? - A contract is unenforceable if any term is contrary to
public policy / against the law
What is capacity? - the ability to understand and appreciate the terms of the
contract
what is mutual assent? - when each party makes a promise or begins to render
performance
offer placed by one party and acceptance by the other
What is a commercial product? - a product that is used by the general public for
purposes other than governmental purposes or
a product evolved from the above which is not yet available to the market,
or a product like the above, slightly modified for gov use or
a nondevelopmental item
What is a commercial service? - includes installation, maintenance, repair, training if
procured in support of commercial product and/or are provided to the general public
as well
Answers-NEWLY UPDATED VERSION
What is the Micro-purhcase threshold for supplies? - $10k
All incentive contracts (schedule or performance) must also include what? - Cost
incentive or constraint
What requires funds to be used only for needs or services in the year of the
appropriations obligation period? - Bona Fide Needs Rule
What contract types can be used for commercial item purchases? - FFP or FPEPA
What is the Simplified Acquisition Threshold for commercial products and services?
What is it for non-commercial? - $7.5M - commercial $250k for non-commercial
True or False: The Gov shall use electronic commerce whenever practicable or cost-
effective - True
What is the purpose of a contract file? (4) - 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? - Yes
At what level are contract files maintained and why? - 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? - When the KO receives evidence of
receipt of property or final payment
When is a FFP (not SAP) contract file closed out? - 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? -
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? -
Within 20 months of the month the KO receives evidence of physical completion
When is a contract considered physically complete? - 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? - 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? - 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? - 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 - they have a signed Justification and Approval
A J&A should include - 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 - 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) -
mutual assent (valid offer and acceptance)
adequate consideration
capacity
, legality
What is implied actual authority? - 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).
What is express actual authority? - 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.
What is apparent authority? - 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.
What is consideration? - 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
A contract is not enforceable without - consideration
What is lawful purpose? - A contract is unenforceable if any term is contrary to
public policy / against the law
What is capacity? - the ability to understand and appreciate the terms of the
contract
what is mutual assent? - when each party makes a promise or begins to render
performance
offer placed by one party and acceptance by the other
What is a commercial product? - a product that is used by the general public for
purposes other than governmental purposes or
a product evolved from the above which is not yet available to the market,
or a product like the above, slightly modified for gov use or
a nondevelopmental item
What is a commercial service? - includes installation, maintenance, repair, training if
procured in support of commercial product and/or are provided to the general public
as well
