CON 3990 EXAM 2026/2027 UPDATED MOST TESTED QUESTIONS WITH VERIFIED ANSWERS
GRADED A+ ASSURED SUCCESS
Question 1
What is the standard Micro-purchase threshold for the acquisition of supplies?
A) $2,500
B) $3,500
C) $5,000
D) $10,000
E) $25,000
Correct Answer: D) $10,000
Rationale: Per the provided study materials, the Micro-purchase threshold specifically for
supplies is set at $10,000. This threshold allows for simplified acquisitions without the need
for competitive quotes, provided the price is considered reasonable.
Question 2
If a Contracting Officer is awarding an incentive contract based on technical performance, what
else must be included in the contract?
A) A fixed-price component
B) An award fee board
C) A cost incentive or constraint
D) A liquidated damages clause
E) A technical evaluation panel
Correct Answer: C) A cost incentive or constraint
Rationale: The regulations require that all incentive contracts, whether they are based on
schedule or performance, must also include a cost incentive or a cost constraint to ensure
the contractor manages costs while striving for performance goals.
Question 3
Which fiscal rule requires that funds be used only for needs or services that arise during the
specific year of the appropriation’s obligation period?
A) The Anti-Deficiency Act
B) The Misappropriation Act
C) The Bona Fide Needs Rule
, 2
D) The Prompt Payment Act
E) The Period of Performance Doctrine
Correct Answer: C) The Bona Fide Needs Rule
Rationale: The Bona Fide Needs Rule is a fundamental principle of federal appropriations
law which mandates that a fiscal year's appropriation only be obligated to meet a
legitimate need arising in (or sometimes before) the fiscal year for which the appropriation
was made.
Question 4
When purchasing commercial items, which contract types are authorized for use?
A) Cost-Plus-Fixed-Fee (CPFF) only
B) Firm-Fixed-Price (FFP) or Fixed-Price with Economic Price Adjustment (FPEPA)
C) Time and Materials (T&M) only
D) Any cost-reimbursement contract type
E) Labor-Hour contracts exclusively
Correct Answer: B) Firm-Fixed-Price (FFP) or Fixed-Price with Economic Price Adjustment
(FPEPA)
Rationale: Government policy for commercial items favors contract types that limit risk to
the government. Therefore, FFP or FPEPA are the primary contract types permitted for
the acquisition of commercial products and services.
Question 5
What is the Simplified Acquisition Threshold (SAT) for commercial products and services?
A) $250,000
B) $1,000,000
C) $5,000,000
D) $7,500,000
E) $10,000,000
Correct Answer: D) $7,500,000
Rationale: For commercial items, the Simplified Acquisition Threshold is elevated to $7.5
million to streamline the procurement of items readily available in the commercial
marketplace.
, 3
Question 6
What is the Simplified Acquisition Threshold (SAT) for non-commercial products and services?
A) $10,000
B) $150,000
C) $250,000
D) $500,000
E) $750,000
Correct Answer: C) $250,000
Rationale: For non-commercial items, the standard Simplified Acquisition Threshold is
$250,000. Acquisitions above this amount generally require more formal contracting
procedures.
Question 7
Under what conditions shall the Government use electronic commerce?
A) Only for acquisitions over the SAT
B) Whenever it is practicable or cost-effective
C) Only when required by the Head of the Contracting Activity
D) Never; paper records are the mandatory standard
E) Only for international procurements
Correct Answer: B) Whenever it is practicable or cost-effective
Rationale: Federal policy promotes efficiency and modernization by directing agencies to
use electronic commerce whenever it is practicable or provides a cost-effective benefit to
the procurement process.
Question 8
Which of the following is NOT a primary purpose of a contract file?
A) Provide a background and basis for decisions
B) Support actions taken during the procurement
C) Provide information for reviews and investigations
D) Act as a marketing tool for the contractor
E) Furnish essential facts in the event of litigation
Correct Answer: D) Act as a marketing tool for the contractor
, 4
Rationale: The contract file is an official record intended to document the Government's
actions, decisions, and legal standing. It is not designed to assist a contractor's marketing
efforts.
Question 9
Are contracting officers permitted to combine contract files if appropriate?
A) No, every contract must have a unique physical folder
B) Yes, if it is appropriate for the management of the records
C) Only if the contracts are with the same vendor
D) Only if the contract value is under $10,000
E) Only with written permission from the GAO
Correct Answer: B) Yes, if it is appropriate for the management of the records
Rationale: Contract files can be combined when it makes sense for administrative efficiency
and documentation clarity.
Question 10
At what level are contract files maintained to ensure effective documentation and accessibility?
A) The individual specialist’s personal desk
B) The contractor’s corporate headquarters
C) The organizational level
D) The Pentagon exclusively
E) The National Archives immediately upon award
Correct Answer: C) The organizational level
Rationale: Maintaining files at the organizational level ensures that principal users can
access them, duplicate files are minimized, and classified documents are properly
safeguarded.
Question 11
When is a Simplified Acquisition Procedures (SAP) contract file officially closed out?
A) 6 months after final delivery
B) 20 months after physical completion
C) When the KO receives evidence of receipt of property and final payment
GRADED A+ ASSURED SUCCESS
Question 1
What is the standard Micro-purchase threshold for the acquisition of supplies?
A) $2,500
B) $3,500
C) $5,000
D) $10,000
E) $25,000
Correct Answer: D) $10,000
Rationale: Per the provided study materials, the Micro-purchase threshold specifically for
supplies is set at $10,000. This threshold allows for simplified acquisitions without the need
for competitive quotes, provided the price is considered reasonable.
Question 2
If a Contracting Officer is awarding an incentive contract based on technical performance, what
else must be included in the contract?
A) A fixed-price component
B) An award fee board
C) A cost incentive or constraint
D) A liquidated damages clause
E) A technical evaluation panel
Correct Answer: C) A cost incentive or constraint
Rationale: The regulations require that all incentive contracts, whether they are based on
schedule or performance, must also include a cost incentive or a cost constraint to ensure
the contractor manages costs while striving for performance goals.
Question 3
Which fiscal rule requires that funds be used only for needs or services that arise during the
specific year of the appropriation’s obligation period?
A) The Anti-Deficiency Act
B) The Misappropriation Act
C) The Bona Fide Needs Rule
, 2
D) The Prompt Payment Act
E) The Period of Performance Doctrine
Correct Answer: C) The Bona Fide Needs Rule
Rationale: The Bona Fide Needs Rule is a fundamental principle of federal appropriations
law which mandates that a fiscal year's appropriation only be obligated to meet a
legitimate need arising in (or sometimes before) the fiscal year for which the appropriation
was made.
Question 4
When purchasing commercial items, which contract types are authorized for use?
A) Cost-Plus-Fixed-Fee (CPFF) only
B) Firm-Fixed-Price (FFP) or Fixed-Price with Economic Price Adjustment (FPEPA)
C) Time and Materials (T&M) only
D) Any cost-reimbursement contract type
E) Labor-Hour contracts exclusively
Correct Answer: B) Firm-Fixed-Price (FFP) or Fixed-Price with Economic Price Adjustment
(FPEPA)
Rationale: Government policy for commercial items favors contract types that limit risk to
the government. Therefore, FFP or FPEPA are the primary contract types permitted for
the acquisition of commercial products and services.
Question 5
What is the Simplified Acquisition Threshold (SAT) for commercial products and services?
A) $250,000
B) $1,000,000
C) $5,000,000
D) $7,500,000
E) $10,000,000
Correct Answer: D) $7,500,000
Rationale: For commercial items, the Simplified Acquisition Threshold is elevated to $7.5
million to streamline the procurement of items readily available in the commercial
marketplace.
, 3
Question 6
What is the Simplified Acquisition Threshold (SAT) for non-commercial products and services?
A) $10,000
B) $150,000
C) $250,000
D) $500,000
E) $750,000
Correct Answer: C) $250,000
Rationale: For non-commercial items, the standard Simplified Acquisition Threshold is
$250,000. Acquisitions above this amount generally require more formal contracting
procedures.
Question 7
Under what conditions shall the Government use electronic commerce?
A) Only for acquisitions over the SAT
B) Whenever it is practicable or cost-effective
C) Only when required by the Head of the Contracting Activity
D) Never; paper records are the mandatory standard
E) Only for international procurements
Correct Answer: B) Whenever it is practicable or cost-effective
Rationale: Federal policy promotes efficiency and modernization by directing agencies to
use electronic commerce whenever it is practicable or provides a cost-effective benefit to
the procurement process.
Question 8
Which of the following is NOT a primary purpose of a contract file?
A) Provide a background and basis for decisions
B) Support actions taken during the procurement
C) Provide information for reviews and investigations
D) Act as a marketing tool for the contractor
E) Furnish essential facts in the event of litigation
Correct Answer: D) Act as a marketing tool for the contractor
, 4
Rationale: The contract file is an official record intended to document the Government's
actions, decisions, and legal standing. It is not designed to assist a contractor's marketing
efforts.
Question 9
Are contracting officers permitted to combine contract files if appropriate?
A) No, every contract must have a unique physical folder
B) Yes, if it is appropriate for the management of the records
C) Only if the contracts are with the same vendor
D) Only if the contract value is under $10,000
E) Only with written permission from the GAO
Correct Answer: B) Yes, if it is appropriate for the management of the records
Rationale: Contract files can be combined when it makes sense for administrative efficiency
and documentation clarity.
Question 10
At what level are contract files maintained to ensure effective documentation and accessibility?
A) The individual specialist’s personal desk
B) The contractor’s corporate headquarters
C) The organizational level
D) The Pentagon exclusively
E) The National Archives immediately upon award
Correct Answer: C) The organizational level
Rationale: Maintaining files at the organizational level ensures that principal users can
access them, duplicate files are minimized, and classified documents are properly
safeguarded.
Question 11
When is a Simplified Acquisition Procedures (SAP) contract file officially closed out?
A) 6 months after final delivery
B) 20 months after physical completion
C) When the KO receives evidence of receipt of property and final payment
