AF CONTRACTING OFFICER STUDY 2026
FEDERAL PROCUREMENT ASSESSMENT STUDY
GUIDE COMPLETE QUESTIONS AND ANSWERS
◉ *Contract Award*
FAR 32.703-2
(2016-05-31)
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.
◉ *Funds*
DoD Financial Management Regulation, Volume 3, Chapter 10,
Appendix C
(2016-05-31)
Q: When speaking of funds, what does "Current", "Expired", and
"Cancelled" funds mean? Answer: 1. Current - funds available for
obligation.
,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.
3. Cancelled - funds not available for any purpose.
◉ *Finance*
US Code, Title 31, Section 1502(a); DoD Financial Management
Regulation (FMR) 7000.14-R, Volume 11A, Paragraph 020510
(2016-05-31)
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.
◉ *Advocate for Competition*
FAR 6.5
(2016-05-31)
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.
◉ *Cost Reasonableness and Cost Realism*
FAR 15.404
(2016-05-31)
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 with the contract action. The costs must
be realistic for the work to be performed. Costs must reflect a clear
understanding of the requirements and are consistent with the
various elements of the offeror's technical proposal.
2. Cost reasonableness - Can the price be determined to be fair &
reasonable through one of the methods as outlined in FAR. Price
and/or cost analysis is used to determine reasonableness.
◉ *Cost Reasonableness and Cost Realism*
FAR 15.404
(2016-05-31)
, Q: What is realism? Answer: The analysis of reviewing/evaluating
specific elements to determine if proposed cost is: 1.realistic for
work to be performed, 2. reflects a clear understanding of the effort,
and 3. is consistent with methods of performance /materials.
◉ *Advocate for Competition*
FAR 6.502
(2016-05-31)
Q: What are the duties of the Advocate for Competition? Answer: 1.
Promote full and open competition and challenging barriers to it.
2. Reviewing contracting operations to identify
opportunities/actions necessary to achieve f&o competition and the
conditions that unnecessarily restrict it.
3. Preparing annual reports.
4. Recommending goals and plans for increasing competition.
5. Recommending a system of personal and organizational
accountability - one that motivates individuals to promote
competition and recognizes those who do.
FEDERAL PROCUREMENT ASSESSMENT STUDY
GUIDE COMPLETE QUESTIONS AND ANSWERS
◉ *Contract Award*
FAR 32.703-2
(2016-05-31)
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.
◉ *Funds*
DoD Financial Management Regulation, Volume 3, Chapter 10,
Appendix C
(2016-05-31)
Q: When speaking of funds, what does "Current", "Expired", and
"Cancelled" funds mean? Answer: 1. Current - funds available for
obligation.
,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.
3. Cancelled - funds not available for any purpose.
◉ *Finance*
US Code, Title 31, Section 1502(a); DoD Financial Management
Regulation (FMR) 7000.14-R, Volume 11A, Paragraph 020510
(2016-05-31)
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.
◉ *Advocate for Competition*
FAR 6.5
(2016-05-31)
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.
◉ *Cost Reasonableness and Cost Realism*
FAR 15.404
(2016-05-31)
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 with the contract action. The costs must
be realistic for the work to be performed. Costs must reflect a clear
understanding of the requirements and are consistent with the
various elements of the offeror's technical proposal.
2. Cost reasonableness - Can the price be determined to be fair &
reasonable through one of the methods as outlined in FAR. Price
and/or cost analysis is used to determine reasonableness.
◉ *Cost Reasonableness and Cost Realism*
FAR 15.404
(2016-05-31)
, Q: What is realism? Answer: The analysis of reviewing/evaluating
specific elements to determine if proposed cost is: 1.realistic for
work to be performed, 2. reflects a clear understanding of the effort,
and 3. is consistent with methods of performance /materials.
◉ *Advocate for Competition*
FAR 6.502
(2016-05-31)
Q: What are the duties of the Advocate for Competition? Answer: 1.
Promote full and open competition and challenging barriers to it.
2. Reviewing contracting operations to identify
opportunities/actions necessary to achieve f&o competition and the
conditions that unnecessarily restrict it.
3. Preparing annual reports.
4. Recommending goals and plans for increasing competition.
5. Recommending a system of personal and organizational
accountability - one that motivates individuals to promote
competition and recognizes those who do.
