Acquisition University Complete Solutions | 60 Questions
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Guaranteed
Domain 1: Federal Acquisition Regulation (FAR) Foundations (10 Questions)
Q1: A Contracting Officer receives a request from a program manager to purchase
specialized radar components. The program manager suggests using a purchase order
because "it's faster than a formal contract." The requirement is estimated at $150,000
and involves technical specifications requiring inspection and acceptance criteria. What
should the Contracting Officer determine?
● A. Issue the purchase order immediately since the program manager has
delegated procurement authority
● B. Use a purchase order because it is always appropriate for supplies under the
simplified acquisition threshold
● C. Determine that a formal contract is required due to the complexity and
inspection requirements [CORRECT]
● D. Proceed with a letter contract since the requirement is urgent
Correct Answer: C
Rationale: Under FAR Part 13 and Part 16, purchase orders (FAR 13.302) are appropriate
for simple, straightforward acquisitions of supplies and services not exceeding the
simplified acquisition threshold (SAT), but they lack the detailed clauses necessary for
complex technical requirements involving inspection and acceptance. The radar
components require specific technical specifications, quality assurance, and
acceptance criteria that necessitate a formal contract vehicle (FAR 16.1). Option A is
incorrect because program managers do not have delegated procurement
,authority—only warranted Contracting Officers may bind the government (FAR 1.602).
Option B is incorrect because purchase orders are limited in their clause applicability
and are unsuitable for complex acquisitions requiring extensive terms and conditions.
Option D is incorrect because letter contracts (FAR 16.603) require a bona fide
emergency or urgent situation where the government's interest demands immediate
performance, and there is insufficient time to negotiate a definitive contract—complexity
alone does not justify a letter contract.
Q2: Under the FAR, what is the primary purpose of the Contract Disputes Act (CDA) of
1978 as implemented in FAR Part 33?
● A. To eliminate all contractor claims against the government
● B. To provide a formal procedure for the resolution of contract disputes through
negotiation, certification, and appeals [CORRECT]
● C. To require contractors to waive their right to file claims as a condition of award
● D. To transfer all contract dispute resolution authority to the Government
Accountability Office (GAO)
Correct Answer: B
Rationale: The Contract Disputes Act (FAR 33.2) establishes a comprehensive
framework for handling contractor claims, requiring certification of claims over
$100,000, encouraging negotiation, and providing for appeals to the Armed Services
Board of Contract Appeals (ASBCA) or the Court of Federal Claims. Option A is incorrect
because the CDA provides a mechanism for claims, not their elimination. Option C is
incorrect because the CDA specifically protects contractors' rights to file claims and
prohibits waiver of CDA rights prior to award. Option D is incorrect because GAO
handles bid protests (FAR 33.1), not contract disputes under the CDA.
Q3: A Contracting Officer is drafting a contract for commercial items under FAR Part 12.
Which statement accurately reflects the regulatory intent of Part 12?
, ● A. Part 12 requires the same level of detail as non-commercial item acquisitions
● B. Part 12 streamlines acquisition procedures by relying on commercial market
practices and reducing unique government requirements [CORRECT]
● C. Part 12 prohibits the use of firm-fixed-price contracts
● D. Part 12 eliminates the requirement for contract clauses entirely
Correct Answer: B
Rationale: FAR Part 12 implements the Federal Acquisition Streamlining Act (FASA) by
tailoring acquisition procedures for commercial items, reducing unique government
requirements, and utilizing commercial specifications and market pricing (FAR 12.002).
This includes streamlined solicitation and evaluation procedures. Option A is incorrect
because Part 12 specifically reduces documentation and procedural burdens. Option C
is incorrect because firm-fixed-price contracts are actually preferred for commercial
items (FAR 12.207). Option D is incorrect because while Part 12 reduces clauses, it
does not eliminate them—specifically required clauses such as those for termination
and changes still apply.
Q4: What is the statutory authority that requires executive agencies to establish and
maintain cost principles for determining costs applicable to contracts with educational
institutions?
● A. Federal Acquisition Regulation Part 31
● B. Cost Accounting Standards (CAS)
● C. Office of Management and Budget Circular A-21 (2 CFR Part 220) [CORRECT]
● D. Truth in Negotiations Act (TINA)
Correct Answer: C
Rationale: OMB Circular A-21 (now codified at 2 CFR Part 220) establishes cost
principles for educational institutions, as referenced in FAR 31.003 and FAR 31.104.
These principles determine allowable costs for contracts and grants with universities.
Option A (FAR Part 31) implements cost principles but does not establish them for
, educational institutions specifically. Option B (CAS) applies to negotiated contracts over
$2 million requiring consistency in cost accounting practices. Option D (TINA) requires
certified cost or pricing data for certain acquisitions but does not establish cost
principles.
Q5: Under FAR 1.602-1, what is the primary limitation on a Contracting Officer's
authority?
● A. The Contracting Officer may only award contracts under $1 million
● B. The Contracting Officer can only bind the government within the scope of their
warrant and applicable law [CORRECT]
● C. The Contracting Officer must obtain legal counsel approval for all contract
modifications
● D. The Contracting Officer cannot delegate any authority to specialists or CORs
Correct Answer: B
Rationale: FAR 1.602-1(b) states that no contract shall be entered into unless the
contracting officer ensures that all requirements of law, executive orders, regulations,
and all other applicable procedures, including clearances and approvals, have been met.
The Contracting Officer's warrant defines their monetary and scope limitations. Option A
is incorrect because warrant limits vary by individual. Option C is incorrect because
legal review is required only for specific actions (e.g., ratifications, terminations for
default). Option D is incorrect because FAR 1.602-2 specifically permits delegation of
authority to Contracting Officer's Representatives (CORs) and specialists.
Q6: Which FAR part provides the policies and procedures for promoting and maintaining
competition in the acquisition process?
● A. FAR Part 6 - Competition Requirements [CORRECT]
● B. FAR Part 8 - Required Sources of Supplies and Services
● C. FAR Part 13 - Simplified Acquisition Procedures