DAU Contracting Certification
Practice Exam
120 Multiple-Choice Questions with Answers and Rationales
1. What is the primary purpose of acquisition planning under FAR Part 7?
A. To determine the winning offeror before solicitation is issued
B. To ensure the Government meets its needs in the most effective,
economical, and timely manner through a coordinated, comprehensive plan
C. To eliminate the need for competition
D. To set the contracting officer's salary
Correct Answer: B
Rationale: FAR Part 7 requires agencies to perform acquisition planning to coordinate
the efforts of all personnel responsible for the acquisition, ensuring the Government's
needs are met in the most effective, economical, and timely manner.
2. Who is generally responsible for leading the development of an Acquisition
Plan (AP) on a complex acquisition?
A. The end user exclusively, with no other involvement
B. An integrated product team led or coordinated by the Program
Manager/requiring activity, with the contracting officer as a key participant
C. Only the small business specialist
D. Congress
Correct Answer: B
Rationale: Acquisition planning is a team effort; typically the program office/requiring
activity leads development with active participation from contracting, legal, small
business, and other functional specialists.
,3. What is the 'Requirements Document' (e.g., a Statement of Work, Statement of
Objectives, or Performance Work Statement) primarily used for?
A. To describe the Government's needs and the work to be performed,
forming the basis for the contract
B. To announce contract award publicly
C. To calculate contractor profit
D. To determine the contracting officer's warrant level
Correct Answer: A
Rationale: The requirements document defines what the Government needs and the
scope of work, serving as the technical foundation from which the solicitation and
eventual contract are built.
4. What is a Performance Work Statement (PWS) primarily focused on?
A. Describing the Government's requirements in terms of measurable
outcomes and performance standards rather than prescriptive methods
B. Listing every step the contractor must take in detailed procedural order
C. Only pricing information
D. Contractor's internal HR policies
Correct Answer: A
Rationale: A PWS describes requirements in terms of results/outcomes and
performance standards, supporting performance-based acquisition, in contrast to a
traditional SOW that may specify detailed methods.
5. What does the acronym 'IGCE' stand for in Government contracting?
A. Independent Government Cost Estimate
B. Internal Government Contract Evaluation
C. Integrated Government Compliance Effort
D. Indirect Government Cost Expense
Correct Answer: A
Rationale: The Independent Government Cost Estimate is the Government's own
estimate of what the contract effort should cost, developed independently of
contractor proposals, used for budgeting and price/cost realism analysis.
,6. What is the purpose of Market Research per FAR Part 10?
A. To determine if there is a technically acceptable commercial or
nondevelopmental item/service available and to identify potential sources and
appropriate acquisition strategies
B. To decide contractor profit margins
C. It is only required for acquisitions above $50 million
D. To finalize the source selection decision
Correct Answer: A
Rationale: FAR Part 10 requires market research to gather information about the
market's ability to meet the requirement, including identifying commercial solutions
and potential sources, to inform acquisition strategy.
7. Under FAR Part 7, an Acquisition Strategy generally should address which of
the following?
A. Only the contract type to be used
B. Competition approach, contract type, milestones, risk, and other key
business and technical considerations for executing the acquisition
C. Only socioeconomic goals
D. Only the funding appropriation
Correct Answer: B
Rationale: An acquisition strategy is a comprehensive, integrated plan addressing
business, technical, and support considerations, including competition, contract type,
and risk management, tailored to the specific acquisition.
8. What is the primary purpose of a Statement of Objectives (SOO)?
A. To provide offerors a summary of top-level Government objectives,
allowing offerors to propose their own solution and performance work
statement
B. To detail every low-level task the contractor must perform
C. To specify the exact contract type
D. To eliminate the need for a Performance Work Statement entirely on every
contract
Correct Answer: A
Rationale: A SOO states broad, top-level Government objectives and allows offerors
the flexibility to develop their own technical approach and, often, their own PWS in
response, encouraging innovation.
, 9. What is 'bundling' in the context of Federal contract requirements?
A. Combining two or more requirements previously provided/performed
under separate smaller contracts into a single solicitation likely unsuitable for
small business participation
B. Grouping contract line items only for invoicing purposes
C. A method used exclusively for sole-source awards
D. Combining multiple contracting officers into one team
Correct Answer: A
Rationale: Bundling consolidates requirements from separate, smaller contracts (often
suitable for small business) into a single larger solicitation, which agencies must
justify and mitigate due to reduced small business opportunities.
10. Why must acquisition planners consider the Government's total cost of
ownership, not just acquisition price, during planning?
A. Total price is legally irrelevant
B. Life-cycle costs (including operations, maintenance, and disposal) can far
exceed initial acquisition cost, so planning should consider the full cost
impact over the item's life
C. Only initial unit price matters for budgeting purposes
D. Life-cycle cost only applies to services contracts, never supplies
Correct Answer: B
Rationale: Sound acquisition planning considers life-cycle costs, since operating,
sustaining, and disposal costs over a system's life often exceed the initial
procurement cost, affecting long-term affordability decisions.
11. Which contract type places the greatest cost risk on the contractor?
A. Cost-plus-fixed-fee
B. Firm-fixed-price (FFP)
C. Cost-plus-award-fee
D. Time-and-materials
Correct Answer: B
Rationale: Under a firm-fixed-price contract, the contractor is paid the agreed-upon
price regardless of actual incurred costs, placing maximum cost risk on the contractor
and minimal risk on the Government.
Practice Exam
120 Multiple-Choice Questions with Answers and Rationales
1. What is the primary purpose of acquisition planning under FAR Part 7?
A. To determine the winning offeror before solicitation is issued
B. To ensure the Government meets its needs in the most effective,
economical, and timely manner through a coordinated, comprehensive plan
C. To eliminate the need for competition
D. To set the contracting officer's salary
Correct Answer: B
Rationale: FAR Part 7 requires agencies to perform acquisition planning to coordinate
the efforts of all personnel responsible for the acquisition, ensuring the Government's
needs are met in the most effective, economical, and timely manner.
2. Who is generally responsible for leading the development of an Acquisition
Plan (AP) on a complex acquisition?
A. The end user exclusively, with no other involvement
B. An integrated product team led or coordinated by the Program
Manager/requiring activity, with the contracting officer as a key participant
C. Only the small business specialist
D. Congress
Correct Answer: B
Rationale: Acquisition planning is a team effort; typically the program office/requiring
activity leads development with active participation from contracting, legal, small
business, and other functional specialists.
,3. What is the 'Requirements Document' (e.g., a Statement of Work, Statement of
Objectives, or Performance Work Statement) primarily used for?
A. To describe the Government's needs and the work to be performed,
forming the basis for the contract
B. To announce contract award publicly
C. To calculate contractor profit
D. To determine the contracting officer's warrant level
Correct Answer: A
Rationale: The requirements document defines what the Government needs and the
scope of work, serving as the technical foundation from which the solicitation and
eventual contract are built.
4. What is a Performance Work Statement (PWS) primarily focused on?
A. Describing the Government's requirements in terms of measurable
outcomes and performance standards rather than prescriptive methods
B. Listing every step the contractor must take in detailed procedural order
C. Only pricing information
D. Contractor's internal HR policies
Correct Answer: A
Rationale: A PWS describes requirements in terms of results/outcomes and
performance standards, supporting performance-based acquisition, in contrast to a
traditional SOW that may specify detailed methods.
5. What does the acronym 'IGCE' stand for in Government contracting?
A. Independent Government Cost Estimate
B. Internal Government Contract Evaluation
C. Integrated Government Compliance Effort
D. Indirect Government Cost Expense
Correct Answer: A
Rationale: The Independent Government Cost Estimate is the Government's own
estimate of what the contract effort should cost, developed independently of
contractor proposals, used for budgeting and price/cost realism analysis.
,6. What is the purpose of Market Research per FAR Part 10?
A. To determine if there is a technically acceptable commercial or
nondevelopmental item/service available and to identify potential sources and
appropriate acquisition strategies
B. To decide contractor profit margins
C. It is only required for acquisitions above $50 million
D. To finalize the source selection decision
Correct Answer: A
Rationale: FAR Part 10 requires market research to gather information about the
market's ability to meet the requirement, including identifying commercial solutions
and potential sources, to inform acquisition strategy.
7. Under FAR Part 7, an Acquisition Strategy generally should address which of
the following?
A. Only the contract type to be used
B. Competition approach, contract type, milestones, risk, and other key
business and technical considerations for executing the acquisition
C. Only socioeconomic goals
D. Only the funding appropriation
Correct Answer: B
Rationale: An acquisition strategy is a comprehensive, integrated plan addressing
business, technical, and support considerations, including competition, contract type,
and risk management, tailored to the specific acquisition.
8. What is the primary purpose of a Statement of Objectives (SOO)?
A. To provide offerors a summary of top-level Government objectives,
allowing offerors to propose their own solution and performance work
statement
B. To detail every low-level task the contractor must perform
C. To specify the exact contract type
D. To eliminate the need for a Performance Work Statement entirely on every
contract
Correct Answer: A
Rationale: A SOO states broad, top-level Government objectives and allows offerors
the flexibility to develop their own technical approach and, often, their own PWS in
response, encouraging innovation.
, 9. What is 'bundling' in the context of Federal contract requirements?
A. Combining two or more requirements previously provided/performed
under separate smaller contracts into a single solicitation likely unsuitable for
small business participation
B. Grouping contract line items only for invoicing purposes
C. A method used exclusively for sole-source awards
D. Combining multiple contracting officers into one team
Correct Answer: A
Rationale: Bundling consolidates requirements from separate, smaller contracts (often
suitable for small business) into a single larger solicitation, which agencies must
justify and mitigate due to reduced small business opportunities.
10. Why must acquisition planners consider the Government's total cost of
ownership, not just acquisition price, during planning?
A. Total price is legally irrelevant
B. Life-cycle costs (including operations, maintenance, and disposal) can far
exceed initial acquisition cost, so planning should consider the full cost
impact over the item's life
C. Only initial unit price matters for budgeting purposes
D. Life-cycle cost only applies to services contracts, never supplies
Correct Answer: B
Rationale: Sound acquisition planning considers life-cycle costs, since operating,
sustaining, and disposal costs over a system's life often exceed the initial
procurement cost, affecting long-term affordability decisions.
11. Which contract type places the greatest cost risk on the contractor?
A. Cost-plus-fixed-fee
B. Firm-fixed-price (FFP)
C. Cost-plus-award-fee
D. Time-and-materials
Correct Answer: B
Rationale: Under a firm-fixed-price contract, the contractor is paid the agreed-upon
price regardless of actual incurred costs, placing maximum cost risk on the contractor
and minimal risk on the Government.
