CONTRACTING OFFICER UNLIMITED
WARRANT BOARD EXAM
230 Revision MCQs | FAR / DFARS / Fiscal Law / Pricing / Contract
Administration
With Correct Answers & Rationale
SECTION A: FAR FUNDAMENTALS & CO
AUTHORITY (Q1–30)
1. What is the primary purpose of the Federal Acquisition Regulation (FAR)?
A) To provide guidance only to Defense agencies B) To codify uniform policies for acquisition
by all executive agencies and ensure the Government meets its needs in an effective, efficient,
and timely manner C) To establish profit rates for Government contractors D) To regulate only
contracts above $10 million
(Correct Answer: B) To codify uniform policies for acquisition by all executive agencies
Rationale: Per FAR 1.101 and 1.102, the FAR is the primary regulation governing federal
acquisition. Its purpose is to deliver best value to the customer while maintaining the public's
trust and fulfilling public policy objectives. It applies to all executive agencies.
2. A Contracting Officer (CO) derives their authority from:
A) Their military rank or civilian pay grade B) A Certificate of Appointment (SF-1402) — a
warrant issued by the Head of the Contracting Activity (HCA) or their designee C) Their
DAWIA/DoD Contracting Professional Certification alone D) Verbal delegation from their
supervisor
(Correct Answer: B) A Certificate of Appointment (SF-1402) — a warrant issued by the
HCA or designee Rationale: Per FAR 1.603-3, a Contracting Officer's authority is derived
solely from a written Certificate of Appointment (warrant) on an SF-1402. Rank, grade,
experience, or supervisory direction do not confer CO authority. An unlimited warrant allows
the CO to enter into, administer, and terminate contracts of any dollar value.
,3. Under FAR 1.602-1, a Contracting Officer has authority to:
A) Award contracts of any value without restriction once warranted B) Enter into, administer,
and terminate contracts only within the limits of their warrant and applicable regulations C)
Delegate their warrant authority to any Government employee they choose D) Override FAR
requirements when they determine it to be in the Government's best interest
(Correct Answer: B) Enter into, administer, and terminate contracts within warrant limits
and applicable regulations Rationale: FAR 1.602-1(a) states COs are authorized to enter into,
administer, or terminate contracts. However, this authority is bound by the warrant's dollar
threshold, applicable statutes, and agency regulations. COs may not act outside their warrant or
ignore mandatory FAR requirements.
4. What is the CO's duty under FAR 1.602-2 regarding the contracting team?
A) To make all acquisition decisions independently without involving the requiring activity B)
To ensure that the requiring activity coordinates with the CO early in the acquisition to identify
requirements, develop acquisition strategies, and ensure compliant actions C) To exclude legal
counsel from routine acquisitions D) To delegate source selection authority to the program
manager in all cases
(Correct Answer: B) To ensure the requiring activity coordinates early to identify
requirements, develop strategies, and ensure compliant actions Rationale: FAR 1.602-2
requires the CO to ensure that the requiring activity participates in the acquisition process, that
a proper statement of work exists, that legal review occurs when required, and that funding is
certified. The CO leads the acquisition team but must coordinate broadly.
5. A "Determination and Finding" (D&F) is defined under FAR 1.701 as:
A) A contractor's certification that costs are accurate and current B) A special form of written
approval by an authorized official required by statute or regulation as a prerequisite to taking
certain contract actions — the "determination" is supported by "findings" of fact or rationale C)
A legal opinion from the Judge Advocate General's office D) A post-award audit finding
requiring corrective action
(Correct Answer: B) A written approval by an authorized official required by statute or
regulation — determination supported by findings Rationale: Per FAR 1.701, a D&F is a
specific regulatory tool — the "determination" is a conclusion or decision and the "findings" are
factual or legal statements supporting it. D&Fs are required for many acquisition actions (e.g.,
use of other than full and open competition, use of T&M contracts, exercise of options).
,6. The Federal Acquisition Team, per FAR 1.102, includes:
A) Only contracting and finance personnel B) All participants in Government acquisition
including contracting, technical, supply, program management, the customers they serve, AND
the contractors providing products and services C) Only Government employees, explicitly
excluding contractors D) Only those with a 1102 series civilian job classification
(Correct Answer: B) All participants in Government acquisition including contracting,
technical, supply, program management, customers, AND contractors Rationale: FAR
1.102(b) and 1.102-3 explicitly state the Acquisition Team consists of all those in Government
acquisition — technical, supply, procurement, program management communities, their
customers, and the contractors providing products and services. This reflects the collaborative
nature of the acquisition process.
7. Which FAR part governs the micro-purchase threshold, the simplified acquisition
threshold (SAT), and other acquisition thresholds?
A) FAR Part 5 B) FAR Part 2 (Definitions) and FAR Part 13 (Simplified Acquisition
Procedures) C) FAR Part 19 (Small Business Programs) D) FAR Part 32 (Contract Financing)
(Correct Answer: B) FAR Part 2 (Definitions) and FAR Part 13 (Simplified Acquisition
Procedures) Rationale: Key thresholds are defined in FAR 2.101: Micro-purchase threshold =
$10,000 (supplies) / $2,500 (services, construction); Simplified Acquisition Threshold (SAT) =
$250,000; the Commercial Items threshold for simplified procedures = $7.5M. FAR Part 13
governs simplified acquisition procedures up to the SAT.
8. Under what circumstances may a CO ratify an unauthorized commitment?
A) Whenever it is in the Government's best interest and the contractor performed the work B)
Only when all of the following conditions are met: supplies/services were received and the
Government received a benefit; the ratifying official has authority to enter into such a contract;
the resulting contract would otherwise be proper; the price is fair and reasonable; funds are
available; the CO recommends payment; and legal concurs C) Never — unauthorized
commitments cannot be ratified under any circumstances D) Only when the unauthorized
commitment was made by a Government employee with at least GS-12 grade
(Correct Answer: B) All conditions met: Government benefit, ratifying official authority,
proper resulting contract, fair price, available funds, CO recommendation, legal
concurrence Rationale: FAR 1.602-3(c) lists the conditions for ratification. Ratification is not
automatic — it requires all conditions to be satisfied. Ratification is the act of approving an
unauthorized commitment after the fact. The ratifying official must have the authority to have
approved the action in the first place.
, 9. What is the primary role of "legal counsel" in the acquisition process per FAR 1.602-2?
A) Legal counsel has no mandatory role — it is optional in all acquisitions B) Legal counsel
advises the CO on legal issues; for actions above certain thresholds, legal review is mandatory
(e.g., AFFARS requires it for all acquisitions) C) Legal counsel only reviews contracts after
award to ensure proper performance D) Legal counsel sets the profit objective for all negotiated
contracts
(Correct Answer: B) Legal counsel advises the CO on legal issues; mandatory legal review
required at certain thresholds and circumstances Rationale: FAR 1.602-2(c) states that the
CO shall request that legal counsel review all solicitations and contracts above specified
thresholds or whenever unusual circumstances exist. AFFARS 5301.170(b)(2) requires COs to
obtain legal advice during all phases of acquisitions. Legal review is a critical safeguard for
complex or high-value actions.
10. A contractor employee approaches a Contracting Officer and offers to provide a
hospitality suite at an upcoming conference. Under FAR Part 3 (Improper Business
Practices), the CO must:
A) Accept if the value is under $25 — the de minimis threshold B) Decline and report the offer
to the appropriate agency official — this constitutes an attempt at improper influence that
violates standards of conduct C) Accept with supervisor approval D) Accept only if the
Government would derive a direct mission benefit
(Correct Answer: B) Decline and report to the appropriate agency official Rationale: FAR
3.101-1 requires that Government business be conducted "in a manner above reproach." FAR
3.104 prohibits actions that give the appearance of impropriety. Accepting gifts, hospitality, or
anything of value from contractors is prohibited by the Standards of Ethical Conduct for
Executive Branch Employees (5 CFR Part 2635). The CO must report such offers.
11. What is "full and open competition" as defined in FAR 6.003?
A) Competition limited to small businesses only B) All responsible sources are permitted to
compete — achieved through sealed bidding or competitive negotiation using the methods in
FAR Part 6 C) Competition among at least three offerors D) Full and open competition is not
required for actions under $10 million
(Correct Answer: B) All responsible sources are permitted to compete — achieved through
sealed bidding or competitive negotiation Rationale: FAR 6.003 defines full and open
competition as when all responsible sources are permitted to submit sealed bids or competitive
WARRANT BOARD EXAM
230 Revision MCQs | FAR / DFARS / Fiscal Law / Pricing / Contract
Administration
With Correct Answers & Rationale
SECTION A: FAR FUNDAMENTALS & CO
AUTHORITY (Q1–30)
1. What is the primary purpose of the Federal Acquisition Regulation (FAR)?
A) To provide guidance only to Defense agencies B) To codify uniform policies for acquisition
by all executive agencies and ensure the Government meets its needs in an effective, efficient,
and timely manner C) To establish profit rates for Government contractors D) To regulate only
contracts above $10 million
(Correct Answer: B) To codify uniform policies for acquisition by all executive agencies
Rationale: Per FAR 1.101 and 1.102, the FAR is the primary regulation governing federal
acquisition. Its purpose is to deliver best value to the customer while maintaining the public's
trust and fulfilling public policy objectives. It applies to all executive agencies.
2. A Contracting Officer (CO) derives their authority from:
A) Their military rank or civilian pay grade B) A Certificate of Appointment (SF-1402) — a
warrant issued by the Head of the Contracting Activity (HCA) or their designee C) Their
DAWIA/DoD Contracting Professional Certification alone D) Verbal delegation from their
supervisor
(Correct Answer: B) A Certificate of Appointment (SF-1402) — a warrant issued by the
HCA or designee Rationale: Per FAR 1.603-3, a Contracting Officer's authority is derived
solely from a written Certificate of Appointment (warrant) on an SF-1402. Rank, grade,
experience, or supervisory direction do not confer CO authority. An unlimited warrant allows
the CO to enter into, administer, and terminate contracts of any dollar value.
,3. Under FAR 1.602-1, a Contracting Officer has authority to:
A) Award contracts of any value without restriction once warranted B) Enter into, administer,
and terminate contracts only within the limits of their warrant and applicable regulations C)
Delegate their warrant authority to any Government employee they choose D) Override FAR
requirements when they determine it to be in the Government's best interest
(Correct Answer: B) Enter into, administer, and terminate contracts within warrant limits
and applicable regulations Rationale: FAR 1.602-1(a) states COs are authorized to enter into,
administer, or terminate contracts. However, this authority is bound by the warrant's dollar
threshold, applicable statutes, and agency regulations. COs may not act outside their warrant or
ignore mandatory FAR requirements.
4. What is the CO's duty under FAR 1.602-2 regarding the contracting team?
A) To make all acquisition decisions independently without involving the requiring activity B)
To ensure that the requiring activity coordinates with the CO early in the acquisition to identify
requirements, develop acquisition strategies, and ensure compliant actions C) To exclude legal
counsel from routine acquisitions D) To delegate source selection authority to the program
manager in all cases
(Correct Answer: B) To ensure the requiring activity coordinates early to identify
requirements, develop strategies, and ensure compliant actions Rationale: FAR 1.602-2
requires the CO to ensure that the requiring activity participates in the acquisition process, that
a proper statement of work exists, that legal review occurs when required, and that funding is
certified. The CO leads the acquisition team but must coordinate broadly.
5. A "Determination and Finding" (D&F) is defined under FAR 1.701 as:
A) A contractor's certification that costs are accurate and current B) A special form of written
approval by an authorized official required by statute or regulation as a prerequisite to taking
certain contract actions — the "determination" is supported by "findings" of fact or rationale C)
A legal opinion from the Judge Advocate General's office D) A post-award audit finding
requiring corrective action
(Correct Answer: B) A written approval by an authorized official required by statute or
regulation — determination supported by findings Rationale: Per FAR 1.701, a D&F is a
specific regulatory tool — the "determination" is a conclusion or decision and the "findings" are
factual or legal statements supporting it. D&Fs are required for many acquisition actions (e.g.,
use of other than full and open competition, use of T&M contracts, exercise of options).
,6. The Federal Acquisition Team, per FAR 1.102, includes:
A) Only contracting and finance personnel B) All participants in Government acquisition
including contracting, technical, supply, program management, the customers they serve, AND
the contractors providing products and services C) Only Government employees, explicitly
excluding contractors D) Only those with a 1102 series civilian job classification
(Correct Answer: B) All participants in Government acquisition including contracting,
technical, supply, program management, customers, AND contractors Rationale: FAR
1.102(b) and 1.102-3 explicitly state the Acquisition Team consists of all those in Government
acquisition — technical, supply, procurement, program management communities, their
customers, and the contractors providing products and services. This reflects the collaborative
nature of the acquisition process.
7. Which FAR part governs the micro-purchase threshold, the simplified acquisition
threshold (SAT), and other acquisition thresholds?
A) FAR Part 5 B) FAR Part 2 (Definitions) and FAR Part 13 (Simplified Acquisition
Procedures) C) FAR Part 19 (Small Business Programs) D) FAR Part 32 (Contract Financing)
(Correct Answer: B) FAR Part 2 (Definitions) and FAR Part 13 (Simplified Acquisition
Procedures) Rationale: Key thresholds are defined in FAR 2.101: Micro-purchase threshold =
$10,000 (supplies) / $2,500 (services, construction); Simplified Acquisition Threshold (SAT) =
$250,000; the Commercial Items threshold for simplified procedures = $7.5M. FAR Part 13
governs simplified acquisition procedures up to the SAT.
8. Under what circumstances may a CO ratify an unauthorized commitment?
A) Whenever it is in the Government's best interest and the contractor performed the work B)
Only when all of the following conditions are met: supplies/services were received and the
Government received a benefit; the ratifying official has authority to enter into such a contract;
the resulting contract would otherwise be proper; the price is fair and reasonable; funds are
available; the CO recommends payment; and legal concurs C) Never — unauthorized
commitments cannot be ratified under any circumstances D) Only when the unauthorized
commitment was made by a Government employee with at least GS-12 grade
(Correct Answer: B) All conditions met: Government benefit, ratifying official authority,
proper resulting contract, fair price, available funds, CO recommendation, legal
concurrence Rationale: FAR 1.602-3(c) lists the conditions for ratification. Ratification is not
automatic — it requires all conditions to be satisfied. Ratification is the act of approving an
unauthorized commitment after the fact. The ratifying official must have the authority to have
approved the action in the first place.
, 9. What is the primary role of "legal counsel" in the acquisition process per FAR 1.602-2?
A) Legal counsel has no mandatory role — it is optional in all acquisitions B) Legal counsel
advises the CO on legal issues; for actions above certain thresholds, legal review is mandatory
(e.g., AFFARS requires it for all acquisitions) C) Legal counsel only reviews contracts after
award to ensure proper performance D) Legal counsel sets the profit objective for all negotiated
contracts
(Correct Answer: B) Legal counsel advises the CO on legal issues; mandatory legal review
required at certain thresholds and circumstances Rationale: FAR 1.602-2(c) states that the
CO shall request that legal counsel review all solicitations and contracts above specified
thresholds or whenever unusual circumstances exist. AFFARS 5301.170(b)(2) requires COs to
obtain legal advice during all phases of acquisitions. Legal review is a critical safeguard for
complex or high-value actions.
10. A contractor employee approaches a Contracting Officer and offers to provide a
hospitality suite at an upcoming conference. Under FAR Part 3 (Improper Business
Practices), the CO must:
A) Accept if the value is under $25 — the de minimis threshold B) Decline and report the offer
to the appropriate agency official — this constitutes an attempt at improper influence that
violates standards of conduct C) Accept with supervisor approval D) Accept only if the
Government would derive a direct mission benefit
(Correct Answer: B) Decline and report to the appropriate agency official Rationale: FAR
3.101-1 requires that Government business be conducted "in a manner above reproach." FAR
3.104 prohibits actions that give the appearance of impropriety. Accepting gifts, hospitality, or
anything of value from contractors is prohibited by the Standards of Ethical Conduct for
Executive Branch Employees (5 CFR Part 2635). The CO must report such offers.
11. What is "full and open competition" as defined in FAR 6.003?
A) Competition limited to small businesses only B) All responsible sources are permitted to
compete — achieved through sealed bidding or competitive negotiation using the methods in
FAR Part 6 C) Competition among at least three offerors D) Full and open competition is not
required for actions under $10 million
(Correct Answer: B) All responsible sources are permitted to compete — achieved through
sealed bidding or competitive negotiation Rationale: FAR 6.003 defines full and open
competition as when all responsible sources are permitted to submit sealed bids or competitive
