ESTUDYR
DAU CONTRACT CERTIFICATION MOST TESTED QUESTIONS
AND ANSWERS GRADED A+ WITH RATIONALES
1. Where in the FAR are contracting officers directed to promote full and open competition?
A. FAR Part 5
B. FAR Part 6
C. FAR Part 7
D. FAR Part 8
ANSWER: B. FAR Part 6
Rationale: FAR Part 6 outlines policies and procedures for promoting full and open competition in
federal contracting.
2. What types of contracts fall under Commercial (products & services)?
A. FFP and FP EPA contracts (T&M as well)
B. Cost-reimbursement contracts
C. Time-and-materials contracts only
D. None of the above
ANSWER: A. FFP and FP EPA contracts (T&M as well)
Rationale: Commercial products and services typically use Firm Fixed Price (FFP), Fixed Price with
Economic Price Adjustment (FP EPA), and Time-and-Materials (T&M) contracts.
3. What is the Micro-Purchase Threshold for supplies?
A. 2,500B.2,500B.10,000
C. 25,000D.25,000D.50,000
**ANSWER:
B. 10,000∗∗∗∗Rationale:∗∗TheMicro−PurchaseThresholdforsuppliesis10,000∗∗∗∗Rationale:∗∗TheMicro−
PurchaseThresholdforsuppliesis10,000, as defined in FAR 2.101.
4. What is the Simplified Acquisition Threshold?
A. 100,000B.100,000B.250,000
C. 500,000D.500,000D.1,000,000
,ESTUDYR
**ANSWER:
B. 250,000∗∗∗∗Rationale:∗∗TheSimplifiedAcquisitionThresholdis250,000∗∗∗∗Rationale:∗∗TheSimplifiedA
cquisitionThresholdis250,000, as defined in FAR 2.101.
5. What is the Simplified Acquisition Procedure (SAP) Commercial Threshold?
A. 5millionB.5millionB.7.5 million
C. 10millionD.10millionD.15 million
**ANSWER:
B. 7.5million∗∗∗∗Rationale:∗∗TheSAPCommercialThresholdis7.5million∗∗∗∗Rationale:∗∗TheSAPCommer
cialThresholdis7.5 million, as outlined in FAR Subpart 13.5.
6. Which of the following is NOT a type of Other than Full and Open Competition?
A. Only one Responsible Source
B. Urgent and Compelling
C. International Agreement
D. Full and Open After Exclusion of Sources
ANSWER: D. Full and Open After Exclusion of Sources
Rationale: Full and Open After Exclusion of Sources is a level of competition, not a type of Other than
Full and Open Competition.
7. Where in the FAR is responsibility covered?
A. FAR Part 6
B. FAR Part 7
C. FAR Part 8
D. FAR Part 9
ANSWER: D. FAR Part 9
Rationale: FAR Part 9 covers contractor qualifications and responsibility.
8. What statute is cited for competition in federal contracting?
A. Federal Acquisition Streamlining Act (FASA)
B. Competition in Contracting Act (CICA)
,ESTUDYR
C. Truth in Negotiations Act (TINA)
D. None of the above
ANSWER: B. Competition in Contracting Act (CICA)
Rationale: CICA, enacted in 1984, is the statute that promotes competition in federal contracting.
9. What is the fee limit for Research and Development (R&D) Cost-Plus-Fixed-Fee (CPFF) contracts?
A. 10%
B. 15%
C. 20%
D. 25%
ANSWER: B. 15%
Rationale: The fee limit for R&D CPFF contracts is 15%.
10. What type of Firm Fixed Price (FFP) contract can have an incentive?
A. FFP with a Performance or Delivery Incentive
B. FFP with Economic Price Adjustment
C. FFP with Cost Reimbursement
D. None of the above
ANSWER: A. FFP with a Performance or Delivery Incentive
Rationale: An FFP contract can include performance or delivery incentives while remaining a Firm Fixed
Price contract.
11. What type of contracts have targets and profit adjustments?
A. Fixed-Price Contracts
B. Cost-Reimbursement Contracts
C. Incentive Contracts
D. Time-and-Materials Contracts
ANSWER: C. Incentive Contracts
Rationale: Incentive contracts include targets and profit adjustments based on performance.
12. How are Indefinite-Delivery contracts defined?
, ESTUDYR
A. By their delivery arrangements
B. By their pricing structures
C. By their performance requirements
D. By their competition levels
ANSWER: A. By their delivery arrangements
Rationale: Indefinite-Delivery contracts are defined by their delivery arrangements, such as definite or
indefinite quantities.
13. What type of contract does the KO decide/determine no other contract type is suitable?
A. Firm Fixed Price (FFP)
B. Cost-Reimbursement
C. Time-and-Materials (T&M)
D. Incentive
ANSWER: C. Time-and-Materials (T&M)
Rationale: T&M contracts are used when no other contract type is suitable, as they provide flexibility for
uncertain requirements.
14. What are the three levels of competition?
A. Full and Open, Full and Open After Exclusion of Sources, and Other than Full and Open
B. Full and Open, Simplified Acquisition, and Sole Source
C. Full and Open, Competitive, and Non-Competitive
D. None of the above
ANSWER: A. Full and Open, Full and Open After Exclusion of Sources, and Other than Full and Open
Rationale: These are the three levels of competition outlined in FAR Part 6.
15. What are the five steps involved when using sealed bidding?
A. Preparation of invitations for bids, publicizing the invitation, submission of bids, evaluation of bids,
and contract award
B. Market research, solicitation, evaluation, negotiation, and award
C. Preparation of proposals, submission of proposals, evaluation of proposals, negotiation, and award
D. None of the above
DAU CONTRACT CERTIFICATION MOST TESTED QUESTIONS
AND ANSWERS GRADED A+ WITH RATIONALES
1. Where in the FAR are contracting officers directed to promote full and open competition?
A. FAR Part 5
B. FAR Part 6
C. FAR Part 7
D. FAR Part 8
ANSWER: B. FAR Part 6
Rationale: FAR Part 6 outlines policies and procedures for promoting full and open competition in
federal contracting.
2. What types of contracts fall under Commercial (products & services)?
A. FFP and FP EPA contracts (T&M as well)
B. Cost-reimbursement contracts
C. Time-and-materials contracts only
D. None of the above
ANSWER: A. FFP and FP EPA contracts (T&M as well)
Rationale: Commercial products and services typically use Firm Fixed Price (FFP), Fixed Price with
Economic Price Adjustment (FP EPA), and Time-and-Materials (T&M) contracts.
3. What is the Micro-Purchase Threshold for supplies?
A. 2,500B.2,500B.10,000
C. 25,000D.25,000D.50,000
**ANSWER:
B. 10,000∗∗∗∗Rationale:∗∗TheMicro−PurchaseThresholdforsuppliesis10,000∗∗∗∗Rationale:∗∗TheMicro−
PurchaseThresholdforsuppliesis10,000, as defined in FAR 2.101.
4. What is the Simplified Acquisition Threshold?
A. 100,000B.100,000B.250,000
C. 500,000D.500,000D.1,000,000
,ESTUDYR
**ANSWER:
B. 250,000∗∗∗∗Rationale:∗∗TheSimplifiedAcquisitionThresholdis250,000∗∗∗∗Rationale:∗∗TheSimplifiedA
cquisitionThresholdis250,000, as defined in FAR 2.101.
5. What is the Simplified Acquisition Procedure (SAP) Commercial Threshold?
A. 5millionB.5millionB.7.5 million
C. 10millionD.10millionD.15 million
**ANSWER:
B. 7.5million∗∗∗∗Rationale:∗∗TheSAPCommercialThresholdis7.5million∗∗∗∗Rationale:∗∗TheSAPCommer
cialThresholdis7.5 million, as outlined in FAR Subpart 13.5.
6. Which of the following is NOT a type of Other than Full and Open Competition?
A. Only one Responsible Source
B. Urgent and Compelling
C. International Agreement
D. Full and Open After Exclusion of Sources
ANSWER: D. Full and Open After Exclusion of Sources
Rationale: Full and Open After Exclusion of Sources is a level of competition, not a type of Other than
Full and Open Competition.
7. Where in the FAR is responsibility covered?
A. FAR Part 6
B. FAR Part 7
C. FAR Part 8
D. FAR Part 9
ANSWER: D. FAR Part 9
Rationale: FAR Part 9 covers contractor qualifications and responsibility.
8. What statute is cited for competition in federal contracting?
A. Federal Acquisition Streamlining Act (FASA)
B. Competition in Contracting Act (CICA)
,ESTUDYR
C. Truth in Negotiations Act (TINA)
D. None of the above
ANSWER: B. Competition in Contracting Act (CICA)
Rationale: CICA, enacted in 1984, is the statute that promotes competition in federal contracting.
9. What is the fee limit for Research and Development (R&D) Cost-Plus-Fixed-Fee (CPFF) contracts?
A. 10%
B. 15%
C. 20%
D. 25%
ANSWER: B. 15%
Rationale: The fee limit for R&D CPFF contracts is 15%.
10. What type of Firm Fixed Price (FFP) contract can have an incentive?
A. FFP with a Performance or Delivery Incentive
B. FFP with Economic Price Adjustment
C. FFP with Cost Reimbursement
D. None of the above
ANSWER: A. FFP with a Performance or Delivery Incentive
Rationale: An FFP contract can include performance or delivery incentives while remaining a Firm Fixed
Price contract.
11. What type of contracts have targets and profit adjustments?
A. Fixed-Price Contracts
B. Cost-Reimbursement Contracts
C. Incentive Contracts
D. Time-and-Materials Contracts
ANSWER: C. Incentive Contracts
Rationale: Incentive contracts include targets and profit adjustments based on performance.
12. How are Indefinite-Delivery contracts defined?
, ESTUDYR
A. By their delivery arrangements
B. By their pricing structures
C. By their performance requirements
D. By their competition levels
ANSWER: A. By their delivery arrangements
Rationale: Indefinite-Delivery contracts are defined by their delivery arrangements, such as definite or
indefinite quantities.
13. What type of contract does the KO decide/determine no other contract type is suitable?
A. Firm Fixed Price (FFP)
B. Cost-Reimbursement
C. Time-and-Materials (T&M)
D. Incentive
ANSWER: C. Time-and-Materials (T&M)
Rationale: T&M contracts are used when no other contract type is suitable, as they provide flexibility for
uncertain requirements.
14. What are the three levels of competition?
A. Full and Open, Full and Open After Exclusion of Sources, and Other than Full and Open
B. Full and Open, Simplified Acquisition, and Sole Source
C. Full and Open, Competitive, and Non-Competitive
D. None of the above
ANSWER: A. Full and Open, Full and Open After Exclusion of Sources, and Other than Full and Open
Rationale: These are the three levels of competition outlined in FAR Part 6.
15. What are the five steps involved when using sealed bidding?
A. Preparation of invitations for bids, publicizing the invitation, submission of bids, evaluation of bids,
and contract award
B. Market research, solicitation, evaluation, negotiation, and award
C. Preparation of proposals, submission of proposals, evaluation of proposals, negotiation, and award
D. None of the above
