CON 1200 U04 DEVELOPING AN EFFECTIVE
CONTRACT STRATEGY 2026/2027 STUDY GUIDE |
VERIFIED QUESTIONS AND ANSWERS WITH
DETAILED RATIONALES | DAU ACQUISITION
EXAM PREP | LATEST UPDATED VERSION
CON 1200 U04 — DEVELOPING AN EFFECTIVE CONTRACT STRATEGY
DAU Acquisition Exam Prep | 2026/2027 | Verified Q&A with EXPERT
RATIONALE
• This study guide contains 200 verified multiple-choice questions with detailed
EXPERT RATIONALE designed to prepare you thoroughly for the CON 1200 U04
DAU acquisition exam covering contract strategy development.
• Use this material by reading each question carefully, selecting your answer before
checking the highlighted correct option, then studying the EXPERT RATIONALE
beneath it to reinforce the concept for exam success.
1. What is the primary purpose of a contract strategy?
A. To minimize the number of contractors on a project
B. To establish the government's negotiation position
C. To document the socioeconomic goals of an acquisition
D. To ensure legal compliance with FAR regulations
E. To provide a roadmap for acquiring goods and services that best meets the
government's needs
Correct Answer: E
EXPERT RATIONALE: A contract strategy serves as a comprehensive roadmap that
guides the acquisition process to best satisfy the government's requirements,
balancing cost, schedule, and performance objectives throughout the lifecycle of
the acquisition.
,2. Which of the following best describes the market research process in
contract strategy development?
A. A one-time activity conducted only at the beginning of the acquisition
B. A process limited to reviewing existing government contracts
C. A method used exclusively to identify small business sources
D. An activity conducted only by contracting officers
E. A continuous process of collecting and analyzing information about the
capabilities available in the marketplace
Correct Answer: E
EXPERT RATIONALE: Market research is an ongoing, continuous process that helps
the government understand what commercial items and services exist in the
marketplace, enabling better acquisition decisions and contract strategy
development.
3. The acquisition plan is best described as:
A. A document used only after contract award
B. A financial projection document prepared by the budget office
C. A document that replaces the statement of work
D. A written plan that documents decisions made during acquisition planning
E. A document prepared exclusively by the program manager
Correct Answer: D
EXPERT RATIONALE: The acquisition plan is a formal written document that
captures all the major decisions made during the acquisition planning phase,
including contracting approach, source selection strategy, and contract type
selection.
,4. Which contract type places the greatest risk on the contractor?
A. Cost-Plus-Fixed-Fee (CPFF)
B. Cost-Plus-Incentive-Fee (CPIF)
C. Cost-Plus-Award-Fee (CPAF)
D. Firm-Fixed-Price (FFP)
E. Time-and-Materials (T&M)
Correct Answer: D
EXPERT RATIONALE: Under a Firm-Fixed-Price contract, the contractor bears
maximum risk because the price is set at the time of award and does not change
regardless of the contractor's actual costs, incentivizing efficient performance.
5. Which contract type places the greatest risk on the government?
A. Firm-Fixed-Price (FFP)
B. Fixed-Price-Incentive (FPI)
C. Cost-Plus-Fixed-Fee (CPFF)
D. Fixed-Price-Award-Fee (FPAF)
E. Indefinite-Delivery Indefinite-Quantity (IDIQ)
Correct Answer: C
EXPERT RATIONALE: Cost-Plus-Fixed-Fee contracts place maximum risk on the
government because the government reimburses all allowable costs regardless of
outcome, with the contractor only at risk for the fixed fee portion.
6. What is the purpose of a Justification and Approval (J&A) document?
A. To approve cost-reimbursement contracts
, B. To document the EXPERT RATIONALE for using a small business set-aside
C. To justify the use of other than full and open competition
D. To approve the contract strategy before solicitation release
E. To document the basis for contract pricing
Correct Answer: C
EXPERT RATIONALE: A J&A is required when the government intends to use other
than full and open competition. It documents the specific authority being used and
justifies why competition is being limited, as required by FAR Part 6.
7. According to the FAR, the preferred method of contracting is:
A. Sole source acquisition
B. Limited competition
C. Full and open competition
D. Set-aside for small businesses
E. Use of existing contract vehicles
Correct Answer: C
EXPERT RATIONALE: FAR Part 6 establishes full and open competition as the
preferred contracting method, ensuring the government receives the best value
through competitive pricing and innovative solutions from all responsible sources.
8. A Performance Work Statement (PWS) differs from a Statement of Work
(SOW) in that a PWS:
A. Is used exclusively for construction contracts
B. Specifies the precise methods the contractor must use
C. Focuses on required outcomes and results rather than how work is
performed
CONTRACT STRATEGY 2026/2027 STUDY GUIDE |
VERIFIED QUESTIONS AND ANSWERS WITH
DETAILED RATIONALES | DAU ACQUISITION
EXAM PREP | LATEST UPDATED VERSION
CON 1200 U04 — DEVELOPING AN EFFECTIVE CONTRACT STRATEGY
DAU Acquisition Exam Prep | 2026/2027 | Verified Q&A with EXPERT
RATIONALE
• This study guide contains 200 verified multiple-choice questions with detailed
EXPERT RATIONALE designed to prepare you thoroughly for the CON 1200 U04
DAU acquisition exam covering contract strategy development.
• Use this material by reading each question carefully, selecting your answer before
checking the highlighted correct option, then studying the EXPERT RATIONALE
beneath it to reinforce the concept for exam success.
1. What is the primary purpose of a contract strategy?
A. To minimize the number of contractors on a project
B. To establish the government's negotiation position
C. To document the socioeconomic goals of an acquisition
D. To ensure legal compliance with FAR regulations
E. To provide a roadmap for acquiring goods and services that best meets the
government's needs
Correct Answer: E
EXPERT RATIONALE: A contract strategy serves as a comprehensive roadmap that
guides the acquisition process to best satisfy the government's requirements,
balancing cost, schedule, and performance objectives throughout the lifecycle of
the acquisition.
,2. Which of the following best describes the market research process in
contract strategy development?
A. A one-time activity conducted only at the beginning of the acquisition
B. A process limited to reviewing existing government contracts
C. A method used exclusively to identify small business sources
D. An activity conducted only by contracting officers
E. A continuous process of collecting and analyzing information about the
capabilities available in the marketplace
Correct Answer: E
EXPERT RATIONALE: Market research is an ongoing, continuous process that helps
the government understand what commercial items and services exist in the
marketplace, enabling better acquisition decisions and contract strategy
development.
3. The acquisition plan is best described as:
A. A document used only after contract award
B. A financial projection document prepared by the budget office
C. A document that replaces the statement of work
D. A written plan that documents decisions made during acquisition planning
E. A document prepared exclusively by the program manager
Correct Answer: D
EXPERT RATIONALE: The acquisition plan is a formal written document that
captures all the major decisions made during the acquisition planning phase,
including contracting approach, source selection strategy, and contract type
selection.
,4. Which contract type places the greatest risk on the contractor?
A. Cost-Plus-Fixed-Fee (CPFF)
B. Cost-Plus-Incentive-Fee (CPIF)
C. Cost-Plus-Award-Fee (CPAF)
D. Firm-Fixed-Price (FFP)
E. Time-and-Materials (T&M)
Correct Answer: D
EXPERT RATIONALE: Under a Firm-Fixed-Price contract, the contractor bears
maximum risk because the price is set at the time of award and does not change
regardless of the contractor's actual costs, incentivizing efficient performance.
5. Which contract type places the greatest risk on the government?
A. Firm-Fixed-Price (FFP)
B. Fixed-Price-Incentive (FPI)
C. Cost-Plus-Fixed-Fee (CPFF)
D. Fixed-Price-Award-Fee (FPAF)
E. Indefinite-Delivery Indefinite-Quantity (IDIQ)
Correct Answer: C
EXPERT RATIONALE: Cost-Plus-Fixed-Fee contracts place maximum risk on the
government because the government reimburses all allowable costs regardless of
outcome, with the contractor only at risk for the fixed fee portion.
6. What is the purpose of a Justification and Approval (J&A) document?
A. To approve cost-reimbursement contracts
, B. To document the EXPERT RATIONALE for using a small business set-aside
C. To justify the use of other than full and open competition
D. To approve the contract strategy before solicitation release
E. To document the basis for contract pricing
Correct Answer: C
EXPERT RATIONALE: A J&A is required when the government intends to use other
than full and open competition. It documents the specific authority being used and
justifies why competition is being limited, as required by FAR Part 6.
7. According to the FAR, the preferred method of contracting is:
A. Sole source acquisition
B. Limited competition
C. Full and open competition
D. Set-aside for small businesses
E. Use of existing contract vehicles
Correct Answer: C
EXPERT RATIONALE: FAR Part 6 establishes full and open competition as the
preferred contracting method, ensuring the government receives the best value
through competitive pricing and innovative solutions from all responsible sources.
8. A Performance Work Statement (PWS) differs from a Statement of Work
(SOW) in that a PWS:
A. Is used exclusively for construction contracts
B. Specifies the precise methods the contractor must use
C. Focuses on required outcomes and results rather than how work is
performed
