AF CONTRACTING OFFICER STUDY ACTUAL
EXAM PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
1. *Source Selection*
2. FAR 1.602-2; 3.104-4; 15.207
3. (2016-05-31)
4. Q: What are the CO's responsibilities in source selection? Answer: 1. Procedures
to safeguard source selection information.
5. 2. Approve access to/release source selection information.
6. 3. Maintain SS evaluation records.
7.
8. ◉ *Source Selection*
9. 2016 DoD Source Selection Manual, 1.4.1.2
10. (2016-05-31)
11.
12. Q: What are the SSA responsibilities? Answer: 1. Proper and efficient conduct of
SS process.
13.
14. 2. Appoint respective chairpersons.
15.
16. 3. Establish SS team and ensure their knowledge of policy/procedure.
17.
18. 4. Ensure pace is event and not schedule driven (realistic SS schedule).
19.
20. ◉ *Financing*
21. FAR 32.106
22. (2016-05-31)
23.
24. Q: Name the different types of government financing in order of their preference
Answer: 1. Private financing (most preferred).
25.
26. 2. Performance based payments.
27.
28. 3. Customary progress payments.
29.
30. 4. Guaranteed loans.
31.
32. 5. Unusual progress payments.
33.
34. 6. Advance payments (least preferred).
35.
36. ◉ *Acquisition Strategy Panel (ASP)*
,37. AFFARS 5307.104-92; AFICA MP 5307.104-92
38. (2016-05-31)
39.
40. Q: Who prepares the ASP minutes, when are they prepared and who approves
them?
41.
42. *AIR FORCE ONLY* Answer: Program manager, CO or Commodity Council
Director prepares following the conclusion of the ASP briefing, and approved by
the ASP chairperson.
43.
44. ◉ *Cost Analysis*
45. FAR 15.404-1 (c)
46. (2016-05-31)
47.
48. Q: What is cost analysis? Answer: Review and evaluation of separate elements
and profit of contractor's proposal. The application of judgment to determine how
well proposed costs represent what the cost of the contract should be assuming
reasonable economy and efficiency. Techniques include verification of cost or
pricing data and evaluation of cost elements; projection of offeror's cost trends
based on current/historical cost/pricing data; audit and negotiated indirect cost,
labor and COM rates.
49.
50. ◉ *IDIQ*
51. FAR 16.504 (a)
52. (2016-05-31)
53.
54. Q: How does the PCO compute the minimum and maximum quantity on an IDIQ
contract? Answer: 1. Minimum-Should be more than a nominal quantity but
should not exceed amount the Government is fairly certain to order.
55.
56. 2. Maximum - A reasonable max should be established by conducting market
research trends on recent contracts for similar supply/svcs, survey of potential
users, other rational basis.
57.
58. ◉ *Estimating Systems*
59. FAR 15.407-5
60. (2016-05-31)
61.
62. Q: Define estimating system and cost reimbursement. Answer: Estimating
system is contractor's policies/procedures/practices for generating estimates.
Includes organizational structure, internal controls, and managerial reviews, work
flow, est methods, techniques, accumulation of historical costs and other
analysis. Cost reimbursement - Contractor's ability to accurately and reliable
estimate costs could lead to cost overruns and increased risk for the
Government.
63.
,64. ◉ *Defective Pricing*
65. FAR 15.407-1
66. (2016-05-31)
67.
68. Q: What are six conditions which must exist to have defective pricing? Answer: 1.
Information fits the definition of cost and pricing data.
69.
70. 2. Accurate data was available to the contractor before the agreement on price.
71.
72. 3. Data was not accurate, current, complete as of date of agreement.
73.
74. 4. Data was not submitted to CO.
75.
76. 5. Government must have relied on the data.
77.
78. 6. An increase in cost as a result of Government reliance on the data.
79.
80. ◉ *Contract Elements*
81. Common Law
82. (2016-05-31)
83.
84. Q: What are the essential elements of a contract? Answer: 1. Offer.
85.
86. 2. Acceptance.
87.
88. 3. Consideration.
89.
90. 4. Lawful purpose.
91.
92. 5. Competency of parties.
93.
94. 6. Certainty of terms.
95.
96. ◉ *Economy Act*
97. 31 U.S.C. 1535; FAR 17.502-2
98. (2016-05-31)
99.
100. Q: Describe the Economy Act Answer: Allows agencies to procure
goods/services from other agencies at cost, a D&F is required. Intra-agency,
activity within the Dod, you may not need D&F, Inter-agency, activity outside DoD
like DOE, D&F signed by General or SES. Economy act does not apply to FSS
acquisitions under FAR 8 or GSA, FPI, and other required sources of supplies.
101.
102. ◉ *Contract Award*
103. FAR 32.703-2
104. (2016-05-31)
, 105.
106. Q: You have just completed a long and complex negotiation for a large
IDIQ contract and are ready to make award. In terms of funding, what must you
ensure before awarding this contract? Answer: Sufficient funds are available to
be obligated for minimum order quantity.
107.
108. ◉ *Funds*
109. DoD Financial Management Regulation, Volume 3, Chapter 10, Appendix
C
110. (2016-05-31)
111.
112. Q: When speaking of funds, what does "Current", "Expired", and
"Cancelled" funds mean? Answer: 1. Current - funds available for obligation.
113. 2. Expired - funds available only for recording, adjusting and liquidating
obligations properly chargeable to the appropriation. Funding in this phase
remains available for 5 years from the year the appropriation expires, regardless
of the appropriation type.
114. 3. Cancelled - funds not available for any purpose.
115.
116. ◉ *Finance*
117. US Code, Title 31, Section 1502(a); DoD Financial Management
Regulation (FMR) 7000.14-R, Volume 11A, Paragraph 020510
118. (2016-05-31)
119.
120. Q: What is the Bona Fide Need rule? Answer: Appropriated funds will be
obligated for effort that is a current, valid (legitimate) need/requirement that
arises during the FY that the funding was appropriated. (i.e. current dollars for
current needs). Current needs typically defined by when agency will use item or
receive service. Can have lead-time exceptions.
121.
122. ◉ *Advocate for Competition*
123. FAR 6.5
124. (2016-05-31)
125.
126. Q: What is the Advocate for Competition? Answer: An employee of a
contracting activity assigned the task of challenging barriers to
competition/promoting full and open competition. 41 USC 418 requires each
executive agency/contracting activity to appoint a competition advocate. Usually
hig-rank employee reporting directly to the heads of their Agency or Activity.
127.
128. ◉ *Cost Reasonableness and Cost Realism*
129. FAR 15.404
130. (2016-05-31)
131.
132. Q: What is the difference between cost realism and cost reasonableness?
Answer: 1. Cost realism - is the cost too low for the contractor to be successful
EXAM PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
1. *Source Selection*
2. FAR 1.602-2; 3.104-4; 15.207
3. (2016-05-31)
4. Q: What are the CO's responsibilities in source selection? Answer: 1. Procedures
to safeguard source selection information.
5. 2. Approve access to/release source selection information.
6. 3. Maintain SS evaluation records.
7.
8. ◉ *Source Selection*
9. 2016 DoD Source Selection Manual, 1.4.1.2
10. (2016-05-31)
11.
12. Q: What are the SSA responsibilities? Answer: 1. Proper and efficient conduct of
SS process.
13.
14. 2. Appoint respective chairpersons.
15.
16. 3. Establish SS team and ensure their knowledge of policy/procedure.
17.
18. 4. Ensure pace is event and not schedule driven (realistic SS schedule).
19.
20. ◉ *Financing*
21. FAR 32.106
22. (2016-05-31)
23.
24. Q: Name the different types of government financing in order of their preference
Answer: 1. Private financing (most preferred).
25.
26. 2. Performance based payments.
27.
28. 3. Customary progress payments.
29.
30. 4. Guaranteed loans.
31.
32. 5. Unusual progress payments.
33.
34. 6. Advance payments (least preferred).
35.
36. ◉ *Acquisition Strategy Panel (ASP)*
,37. AFFARS 5307.104-92; AFICA MP 5307.104-92
38. (2016-05-31)
39.
40. Q: Who prepares the ASP minutes, when are they prepared and who approves
them?
41.
42. *AIR FORCE ONLY* Answer: Program manager, CO or Commodity Council
Director prepares following the conclusion of the ASP briefing, and approved by
the ASP chairperson.
43.
44. ◉ *Cost Analysis*
45. FAR 15.404-1 (c)
46. (2016-05-31)
47.
48. Q: What is cost analysis? Answer: Review and evaluation of separate elements
and profit of contractor's proposal. The application of judgment to determine how
well proposed costs represent what the cost of the contract should be assuming
reasonable economy and efficiency. Techniques include verification of cost or
pricing data and evaluation of cost elements; projection of offeror's cost trends
based on current/historical cost/pricing data; audit and negotiated indirect cost,
labor and COM rates.
49.
50. ◉ *IDIQ*
51. FAR 16.504 (a)
52. (2016-05-31)
53.
54. Q: How does the PCO compute the minimum and maximum quantity on an IDIQ
contract? Answer: 1. Minimum-Should be more than a nominal quantity but
should not exceed amount the Government is fairly certain to order.
55.
56. 2. Maximum - A reasonable max should be established by conducting market
research trends on recent contracts for similar supply/svcs, survey of potential
users, other rational basis.
57.
58. ◉ *Estimating Systems*
59. FAR 15.407-5
60. (2016-05-31)
61.
62. Q: Define estimating system and cost reimbursement. Answer: Estimating
system is contractor's policies/procedures/practices for generating estimates.
Includes organizational structure, internal controls, and managerial reviews, work
flow, est methods, techniques, accumulation of historical costs and other
analysis. Cost reimbursement - Contractor's ability to accurately and reliable
estimate costs could lead to cost overruns and increased risk for the
Government.
63.
,64. ◉ *Defective Pricing*
65. FAR 15.407-1
66. (2016-05-31)
67.
68. Q: What are six conditions which must exist to have defective pricing? Answer: 1.
Information fits the definition of cost and pricing data.
69.
70. 2. Accurate data was available to the contractor before the agreement on price.
71.
72. 3. Data was not accurate, current, complete as of date of agreement.
73.
74. 4. Data was not submitted to CO.
75.
76. 5. Government must have relied on the data.
77.
78. 6. An increase in cost as a result of Government reliance on the data.
79.
80. ◉ *Contract Elements*
81. Common Law
82. (2016-05-31)
83.
84. Q: What are the essential elements of a contract? Answer: 1. Offer.
85.
86. 2. Acceptance.
87.
88. 3. Consideration.
89.
90. 4. Lawful purpose.
91.
92. 5. Competency of parties.
93.
94. 6. Certainty of terms.
95.
96. ◉ *Economy Act*
97. 31 U.S.C. 1535; FAR 17.502-2
98. (2016-05-31)
99.
100. Q: Describe the Economy Act Answer: Allows agencies to procure
goods/services from other agencies at cost, a D&F is required. Intra-agency,
activity within the Dod, you may not need D&F, Inter-agency, activity outside DoD
like DOE, D&F signed by General or SES. Economy act does not apply to FSS
acquisitions under FAR 8 or GSA, FPI, and other required sources of supplies.
101.
102. ◉ *Contract Award*
103. FAR 32.703-2
104. (2016-05-31)
, 105.
106. Q: You have just completed a long and complex negotiation for a large
IDIQ contract and are ready to make award. In terms of funding, what must you
ensure before awarding this contract? Answer: Sufficient funds are available to
be obligated for minimum order quantity.
107.
108. ◉ *Funds*
109. DoD Financial Management Regulation, Volume 3, Chapter 10, Appendix
C
110. (2016-05-31)
111.
112. Q: When speaking of funds, what does "Current", "Expired", and
"Cancelled" funds mean? Answer: 1. Current - funds available for obligation.
113. 2. Expired - funds available only for recording, adjusting and liquidating
obligations properly chargeable to the appropriation. Funding in this phase
remains available for 5 years from the year the appropriation expires, regardless
of the appropriation type.
114. 3. Cancelled - funds not available for any purpose.
115.
116. ◉ *Finance*
117. US Code, Title 31, Section 1502(a); DoD Financial Management
Regulation (FMR) 7000.14-R, Volume 11A, Paragraph 020510
118. (2016-05-31)
119.
120. Q: What is the Bona Fide Need rule? Answer: Appropriated funds will be
obligated for effort that is a current, valid (legitimate) need/requirement that
arises during the FY that the funding was appropriated. (i.e. current dollars for
current needs). Current needs typically defined by when agency will use item or
receive service. Can have lead-time exceptions.
121.
122. ◉ *Advocate for Competition*
123. FAR 6.5
124. (2016-05-31)
125.
126. Q: What is the Advocate for Competition? Answer: An employee of a
contracting activity assigned the task of challenging barriers to
competition/promoting full and open competition. 41 USC 418 requires each
executive agency/contracting activity to appoint a competition advocate. Usually
hig-rank employee reporting directly to the heads of their Agency or Activity.
127.
128. ◉ *Cost Reasonableness and Cost Realism*
129. FAR 15.404
130. (2016-05-31)
131.
132. Q: What is the difference between cost realism and cost reasonableness?
Answer: 1. Cost realism - is the cost too low for the contractor to be successful
